HomeMy WebLinkAbout4/7/2004 - STAFF REPORTS (4) A3`x!iL. 7, '�Icoy
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DATE: MARGHT17;200*--
TO: COMMUNITY REDEVELOPMENT AGENCY AND CITY COUNCIL
FROM: DIRECTOR OF COMMUNITY AND ECONOMIC DEVELOPMENT
APPROVAL OF AN ESCROW FOR PURCHASE AND SALE WITH FRANCES WINTER OF
BEVERLY HILLS, CALIFORNIA, FOR A SINGLE FAMILY RESIDENCE AT 141 SOUTH
CAHUILLA ROAD FOR $425,000, SUBJECT TO CERTAIN RESTRICTIONS, AND APPROVAL
OF A LOAN FROM THE CITY TO THE AGENCY TO COMPLETE THE SALE TO FACILITATE
THE DEVELOPMENT OF A BOUTIQUE HOTEL
RECOMMENDATION:
It is recommended that (1) the Agency approve an escrow to approve the purchase of a
property at 141 South Cahuilla Road in Palm Springs, from Frances Winter of Beverly Hills
for the amount of$425,000; and, (2) that the City Council approve a loan from the City to
the Agency for the purchase price, for the purpose of facilitating the development of a
boutique hotel.
SUMMARY:
At the time the Agency was creating the Oasis (Tennis Club) Project Area in 1983-84, Mr.
and Mrs. Winter brought suit against the Agency to ensure that their home would never be
acquired through condemnation. A Settlement Agreement dated May 4, 1988 reached
with the Winters prevented the Agency from ever pursuing eminent domain while the
Winters owned the property, but gave the Agency a right of first refusal to purchase if they
received an offer and chose to sell. Mrs. Winter received an offer in December, 2003 and
considered selling, but was required to give the Agency 30 days to respond. On January
26, 2004 the Agency replied in writing that it was exercising its option to acquire the
property by matching the offer that had been accepted. In addition to the purchase price,
the Agency had to agree to certain non-financial provisions related to not destroying or
altering the building, and applying for permanent historic preservation status for the
building. The purpose of acquiring the property is to help facilitate the development of a
boutique hotel on the adjacent vacant parcel to the north.
BACKGROUND:
When the Oasis redevelopment project area was created in 1983-84, the Winters sued
the Agency to ensure that their home would never be acquired through condemnation.
They were concerned the Agency intended to clear all the properties on their block for a
major development, since some of the adjacent properties had been razed by the
abatement process. A Settlement Agreement dated May 4, 1988 with the Winters
prevented the Agency from pursuing eminent domain while they owned the property, but
gave the Agency a right of first refusal if they received an offer and chose to sell.
The adjacent property ownerto the north,Wessman Development Company, had inquired
about Agency assistance in acquiring the Winter property in 2000, but was informed about
the terms of the Settlement Agreement. He continued to express interest in the property
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over the past few years while he has planned a boutique hotel on the vacant property, and
asked to be informed if the Agency ever had the ability to purchase the property.
Mrs. Winter did receive an offer in December, 2003 from the adjacent property owners,
Frank Tysen and Therese Hayes, owners of Casa Cody B & B at 175 South Cahuilla. Mr.
Tysen desired to use the Winter property to expand the inn, giving it additional rooms and
more outdoor event space. Under the terms of the Agreement, if Mrs. Winter received
from any third party a proposal in writing to purchase the property which she is prepared
to accept, she shall provide Notice to the Agency and the Agency"shall have a right of first
refusal for a period of thirty (30) days after the receipt of Frances Winter's Notice in which
to notify Frances Winter in writing whether it agrees to purchase the Property for the same
price and on the same terms and conditions as the offer made by the third party." Her
attorney did so in a letter to the Executive Director dated December 27, 2003.
At its January 21, 2004 meeting, the Agency voted to exercise its option with Frances
Winter and purchase the property at the same price and on the same terms and conditions
as provided in the third party offer. On January 26th the Agency replied in writing that it
was exercising its option to acquire the property by matching the offer that had been
accepted. The offer stated the Agency was prepared to open an escrow and close on the
property within 60 days of the escrow opening. In addition to the purchase price, the
Agency must agree to certain non-financial provisions related to not destroying or altering
the building, and applying for permanent historic preservation status for the building.
The action before the Agency is to approve an escrow with Mrs Winter. In addition, the
City would approve a loan to the Agency the $425,000 to close the sale. The primary
source of those funds is the$350,000 remaining in the City's Economic Development Fund
(001-1220), established by the sale of land to Burnett Development in 2003, (the fund
originally had $465,000), and $75,000 in fund Palance. The note would be payable to the
City from tax increment of the project area or from the resale of the property.
J HN S. YMO
Di ctor Comm ' and Economic Development
APPROVE
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ATTACHMENTS:
1. Agency Resolution
2. Escrow Agreement
3. Loan Agreement
4. Agency Resolution Accepting Loan
5. City Resolution Approving Loan
6. City Budget Resolution
RESOLUTION NO.
OF THE COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF PALM SPRINGS, CALIFORNIA,
APPROVING AN ESCROW WITH FRANCES WINTER
OF BEVERLY HILLS, CALIFORNIA, TO PURCHASE A
PROPERTY AT 141 SOUTH CAHUILLA DRIVE FOR
$425,000, WITH CERTAIN RESTRICTIONS ON THE
FUTURE DEVELOPMENT OF THE STRUCTURE FOR
THE PURPOSE OF FACILITATING THE
DEVELOPMENT OF A BOUTIQUE HOTEL
WHEREAS, Frances Winter is the owner of that certain real property located in the City
of Palm Springs, County of Riverside, State of California, consisting of a single family
home on approximately 15,246 square feet and more particularly described in attached
Exhibit A ("Winter Property"); and
WHEREAS, the Community redevelopment agency of the City of Palm Springs, California
("Agency")is constituted under the Community Redevelopment Law(California Health and
Safety Code Section 33000 et. seq.) to carry out the purpose as the redevelopment
agency in the City of Palm Springs ("City"); and
WHEREAS, Section 33430 of the Community Redevelopment Law allows that an agency
may, "for purposes of redevelopment, sell, lease, for a period not to exceed 99 years,
exchange, subdivide, transfer, assign, pledge, encumber by mortgage, deed of trust, or
otherwise, or otherwise dispose of any real or personal property or any interest in
property;" and
WHEREAS, on May 4, 1988, the Community Redevelopment Agency entered into a
Settlement Agreement with Frances Winter ("Owner") related to eminent domain of a
property at 141 South Cahuilla Road whereby if Owner received from any third party a
proposal in writing to purchase the property which Owner is prepared to accept, Owner
shall provide Notice to the Agency and the Agency shall have a right of first refusal for a
period of thirty (30) days after the receipt of Owner's Notice in which to notify Owner in
writing whether it agrees to purchase the Property for the same price and on the same
terms and conditions as the offer made by the third party; and
WHEREAS, Owner gave Notice of intent to sell on December 27, 2003, and on January
26 the Agency replied in writing that it was exercising its option to acquire the property by
matching the offer that had been accepted.
WHEREAS, the third party offer contained provisions such that the Buyer must agree to
certain non-financial conditions related to not destroying or significantly altering the
building, and applying for permanent historic preservation status for the building.
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WHEREAS, the Agency is acquiring the property to facilitate the development of a
boutique hotel, which meets the purposes of the Amended and Restated Redevelopment
Plan for Merged Area #1.
NOW THEREFORE BE IT RESOLVED by the Community Redevelopment Agency of the
City of Palm Springs, that:
SECTION 1. The purchase of a property at 141 South Cahuilla Road for$425,000 from
Frances Winter of Beverly Hills, California, subject to certain restrictions
related to not destroying or significantly altering the building and applying
for permanent historic preservation status for the building, is hereby
approved.
SECTION 2. The Executive Director or his designee is hereby authorized to execute all
contracts, deeds, declarations, or other documents related to the purchase
and sale, escrow, or Amendment to Assign Buyers Interest or other related
agreements in a form acceptable to Agency Counsel.
ADOPTED this day of 2004.
AYES:
NOES:
ABSENT:
ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF PALM SPRINGS, CALIFORNIA
By
Assistant Secretary Chairman
REVIEWED & APPROVED AS TO FORM
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RESOLUTION NO.
OF THE COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF PALM SPRINGS,
CALIFORNIA, ACCEPTING A LOAN FROM THE
CITY OF PALM SPRINGS AND APPROVING THE
"FINANCING AGREEMENT AND PROMISSORY
NOTE" IN THE AMOUNT OF FOUR HUNDRED
TWENTY FIVE THOUSAND DOLLARS ($425,000)
FOR THE PURCHASE OF A PROPERTY AT 141
SOUTH CAHUILLA ROAD, MERGED AREA#1
WHEREAS, the Community Redevelopment Agency of the City of Palm Springs, California
("Agency") is constituted under the Community Redevelopment Law(California Health and Safety
code Section 33000 et. seq.) to carry out the purpose as the redevelopment agency in the City
of Palm Springs ("City"); and
WHEREAS, on May 4, 1988, the Community Redevelopment Agency entered into a Settlement
Agreement with Frances Winter ("Owner") related to eminent domain of a property at 141 South
Cahuilla Road; and
WHEREAS, pursuant to California Health and Safety Code Sections 33132 and 33601, the
Agency is authorized to borrow money from other public agencies to fulfill its obligations; and
WHEREAS, the Agency has executed a "Financing Agreement and Promissory Note" in the
amount of FOUR HUNDRED TWENTY FIVE THOUSAND DOLLARS ($425,000); and
NOW, THEREFORE, BE IT RESOLVED by the Community Redevelopment Agency of the City
of Palm Springs that a loan for FOUR HUNDRED TWENTY FIVE THOUSAND DOLLARS
($425,000) from the City of Palm Springs to the Community Redevelopment Agency to acquire
the property at 141 South Cahuilla Road from Owner is hereby accepted in the form of an
"Agreement and Promissory Note," and be repayable from the ultimate resale of the property or
tax increment accrued from Merged Project Area #1.
ADOPTED this day of , 2004.
AYES:
NOES:
ABSENT:
ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF PALM SPRINGS, CALIFORNIA
By
Assistant Secretary Executive Director e
REVIEWED &APPROVED na=6z +6 c