HomeMy WebLinkAbout3/24/2004 - STAFF REPORTS (5) 'kfa cfe
DATE: MARCH--17,2004--
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 owner to 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
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 alance. The note would be payable to the
City from tax increment of the project area or from the resale of the property.
JqHlq S. YMO
Dine for Comm and Economic Development
APPROVE
x utive i for
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.
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 12004.
AYES:
NOES:
ABSENT:
ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF PALM SPRINGS, CALIFORNIA
By
Assistant Secretary Chairman
REVIEWED & APPROVED AS TO FORM
x
c) 242;�i
March 24, 2004
Liberty Escrow, Inc.
901 East Tahquitz Canyon Way
Suite A-101
Palm Springs, CA 92262
Attention: Melvina Schaefer
RE: Escrow 11923-MS Sale of 141 South Cahuilla Road by Frances Winter to Frank
Tysen and Therese Hayes
Ladies and Gentlemen:
It has been brought to our attention by legal counsel that the Cominunity
Redevelopment Agency of the City of Palm Springs ("Agency") and the City Council of
the City of Palm Springs("City") have acted improperly and without authority in
purporting to exercise a right of first refusal to buy the property at 141 South Cahuilla
Road which is the subject of the above referenced sale escrow, rendering the purported
exercise void and of no legal force or effect.
We are advised that the Agency's purported notice of intention to exercise the
right of first refusal was sent to the seller without an Agency vote having been taken in
open session, so no valid and authorized notice of exercise was sent within the required
30 days after notice of our intended purchase on December 27, 2003 which has clear
public interest implications. Indeed, the Agency has yet to formally vote on the matter.
Moreover, the purported exercise fails to set forth the Agency's agreement to
comply with all of the terms and conditions of the pending sale escrow, not only
regarding the preservation issues, but also the date by which escrow must close.
Further, such an Agency vote would constitute an exercise of discretion within the
provisions of the California Environmental Quality Act ("CEQA'), requiring prior
compliance with the applicable CEQA requirements. Neither the proposed resolution nor
the information publicly available indicates that the Agency has even attempted to
comply.
Because of the Agency's failure to act timely to properly exercise the right of first
refusal, the non-compliance of the purported exercise with the terms of the right of first
refusal, the Agency's failure to comply with CEQA and several additional reasons,
including the Agency's failure to set forth the scope of the development project for which
Caen Cody Caanm/Inn
v7;South Cahuilla Road
PalmrSpjings,Cablomiao2a61
y6o-310-9346
76o3z58610 Fax _ n A
the purchase is intended and failure to collect any data on the impact of such a
development on the neighborhood and community at large, the right of refusal action is
invalid and of no legal force or effect.
The seller and we are obligated under the teens of the escrow to proceed to close
within 60 days after the 30-day notice period within which the Agency might have
properly exercised its right of fast refusal has terminated. Therefore, we are making a
demand upon the seller and escrow to proceed to close the escrow by March 26, as we are
prepared to do, so that we may comply with the conditions stipulated in our escrow.
Sincerely,
Fr Ink Tyson
Threse Hayes
Frances Winter
c/o Larry Meyer, Attorney at law
Community Redevelopment Agency of the
City of Palm Springs
c/o John Raymond, Director
Palm Springs Department of Economic Development,
City of Palm Springs
c/o David Ready, City Manager
Liberty Escrow re Escrow 11923-MS(Winter property)3-23-04 2
_
Wessman Plaza ��� _ � ��— i i Temecula WesT
Palm Springs EDEVELDPKiIENTCOMi ANY - The Center
Promenade
Plaza Mercado - Canyon Plaza -
Canyon Plaza North and South Business Park
Shopping Centers Plaza del Sol TahgwTz Mesa Villas
Date Pah» Square RUbldOnk Plaza ,,,Dy VVV
- Indio Plaza
Plaza las Flores - Chad[ House Restaurant TahquiLz Square
Rancho San Pablo - Plaza ai SuiuISO Baristo Plaza
March 24, 2004
City of Palm Springs HAND DELIVERED
P.O. Box 2743
Palm,Springs, 92.263
Attention: David Aleshire, City Attorney
John Raymond, Redevelopment Director
Re: Winters Property
141 South Cahuilla Road
Dear David and John:
As we have discussed, I am very interested in acquiring the Winters' property and
would like to enter into a Disposition and Development Agreement to do so. In consonance with
that, a description and timeline for the proposed project follows.
The addition of the Winters' property to the land that I already own at the corner of
Tahquitz Canyon Way and Cahuilla is essential for the development of a boutique hotel. Without the
Winters' property,the setback requirements would not allow such development. In that case, I would
develop the property into a small condominium complex.
I am planning a high-end boutique hotel that would cater to the affluent lifestyle
which would in tam help drive the improvement and the quality of local retail stores and restaurants.
The architecture will be contemporary, urban style with the use of block, steel and other natural
materials. The height and mass of the hotel would be determined by the City Planning Commission.
We are anticipating 30-40 rooms but the final number of rooms would be the maximum'allowed by
City Code through a Planned Development District. Amenities would be those typical of a boutique
hotel: outstanding rooms with,W Hotel quality furnishings and beds, a pool with spa, a workout/gym
room, and if space permits, a small restaurant. There would be no meeting or convention rooms so
300 S. PALM CANYON DRIVE PALM SPRINGS, CA 92262 - PHONE (760) 325-3050 FAX (760) 325-5848
the hotel would utilize the Convention Center facilities as needed.
The hotel will be of the caliber of a W Hotel but on a smaller scale, such as the Hotel
Healdsburg in the Valley of the Moon adjacent to the Sonoma Valley region of Northern California
or The Inn at the Market in Seattle or the Camelback Gardens Hotel in Telluride. We project a daily
rate in the $200-$300 rack rate range.
The Winters' property will be germane to the hotel's success since it will give a buffer
to the low-rise single-story buildings of Casa Cody,and,allow us to build up to the property line of
our existing property. One of our problems is that the existing house is only 3 feet from our property
line with the overhang being only 1.5 feet. It will provide open and amenity space to the overall
project. The Winters' building could possible house the restaurant and outdoor eating area of the
hotel as well as the pool area and other amenities.
To purchase the Winters' property, I would pay the City an amount that would cover
all costs that the City incurred in its purchase. Therefore3 the City would be fully reimbursed for all
cash outlay. The purchase would be covered by the DDA.
We would expect that the cost of this project would one $150,000-175,000 per key.
With the current information available to us at this time,we would not be asking for any subsidies
from the City of Palm Springs.
Timing is always a major element in a DDA. For the development of this boutique
hotel, I propose the following timeline:
Conceptual Planning with Architect 6 Months
Preliminary Architectural Drawings
(Ready for City Submittal) 6 Months
Architectural and PDD Approvals 6 Months
Final Architectural Construction Drawings _ 6 Months
Building Department Review 3 Months
Financing 3 Months
Construction 12 Months
Thank you in advance for your consideration in this matter. Should you have any
questions or comments,please do not hesitate to contact me.
Sincerely,
John Wessman
JW:mh
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FROM CASA CODY COUNTRY INN PHONE NO. : 760 325 8610 Mar. 17 2004 01:20PM P1
696 Via Monte Vista
Palm Springs, CA 92262
March 16, 2004
Palm Springs City Council
3200 E Tahquitz Way
Palm Springs,CA 92262
Dear Council Members-
Re: Winters property, I41 South Cahuilla
We are neighbors north of the Casa Cody Bed and Breakfast Country Inn_ Our home was
built in the 1920's.
We support Frank Tyson and Therese Hayes, owners of the Casa Cody,in purchasing the
historical home adjaocut to their property on 141 South Cahuilla, We arc assured that the
Owners of the Casa Cody will preserve the historical integrity and original architecture of
the home in that period of tinge.
Please allow Frank Tyson and Therese Hayes to complete the escrow in the purchase of
that property.
Respectfully,
Lisa and Joe Luisi
FROM CRSR CODY COUNTRY INN
PHONE NO. : 760 325 8610
Mar. 17 2004 01:20PM P2
Page i of
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Date: 3/17104 2.5224 AM Pacific Standard lime
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Wednesday, March 17,2004 America Online' Theresel4ayes
FROM CRSR CODY COUNTRY INN PHONE N0. : 760 325 0610 Mar. 17 2004 01:21PM P3
710 N Patencio
Palm Springs,CA 92262
March 15, 2004
Palms Springs City Council
3200 E Tahquitz Way
Palm Springs,CA 92262
Dear Council Members:
Ile: Winters property,141 South Cahuilla
I own a home that was built in the 19201s,located north of the Casa Cody Bed and
Breakfaa Country Inn.
I support Frank Tyson and Therese Hayes,owners of the Casa Cody,in purchasing
the historical home adjoining their property on 141 South Cahuilla. I am assured
that the Owners of the Casa Cody will preserve the historical integrity and original
architecture of the home in that period of time.
Pies"allow Frank Tyson and Therese Hayes to complete the escrow in the
purchase of that property.
Respectfully,
Carol Searioni
!0C
CAA7 ..�
FROM CRSR CODY COUNTRY INN PHONE NO. 760 325 8610 Mar. 17 2004 01:21PM P4
rTA
March 12, 2004
DR.JAMES MELTON
P C A K E R / A U T I-I0 R
Therese Hayes
Casa Cody Hotel
1240 Monte Vista
Palm Springs, CA. 92262
Dear Therese,
Please accept this letter as my sincere,expression to invest your best efforts at the city
council meeting in securing the residence adjacent to your buildings as a part of your
charniing, restful and "Old Palm Springs" Casa Cody hotel,
My feelings stem from the general tone of the Historic Tennis Club area and the strong
feeling of the residents and business owners within to keep the history intact. As a
resident in the area for more than 25 years, 1 personally feel that allowing the city to
purchase the property may result in the eventuality of a transfer oCownership to other
interested parties who, unlike the Casa Cody proprietors, may shift the focus of the
current residence to a more commercial and financially rewarding direction.
l know from our conversations, and from your personal history and dedication to retain
an "Old Palm Springs" flavor in your hotel, (one example is the restoration of the
"adobe,") that the remodeling under your direction would bring the building back to its
original state and in the future may even be dedicated as an historical site.
Palm Springs deserves to have its history retained, Enough of the"Mock Old World" has
already slipped in and the treasures of the past are becoming very few, hi my business
travels as a speaker, it is obvious to me as it is so many others that the reputation of Palm
Springs lives strongly in the minds and hearts of people worldwide. We must do all that
we can to insure that this city clots not fall prey to the common,the standard, and the fast-
dollar investors.
Palm Springs has a life of its own. It has given so much of itself to the world and it
continues to define the parameters of the grand,rich and abundant lifestyle that so many
aspire to achieve. To place the reputation of Palm Springs in jeopardy would be a
travesty.
$est re�ands�� .,/ 11 k(
Jatng(C�/SE.'tv�el�oti
THE MELTON CORpORa-r1ON
P.Q. BOX 2030 PALM SPRINGS, CALIFORNIA 92263 iry{o�Chnllcngelom6rrow.com
740 323-4204 800 635-8661 FAX 760 320-6090 www,Cho lIengetomorrow.com
FROM CRSA CODY COUNTRY INN PHONE NO. : 76O 325 8610 � O�4 `Ma6r. 17 200P. 04 04: 11PM P1
CHASE MANIIATTEN MORTGAGE ME].g0RANDUM
TO: PRP 4K�19EI
FROM. Thvr'_qcGUMB
"JECT: PAI-V SPAPgGsS PURCI9AM
DATE: 03/r/04
PAGES 2
Mx. Tyeep,pour loan approval fc.: the ptopext7 at 141 South Cahuilla,Palm Spbngs CA will
be "Titita$ 4/13/2004. The ottipixw Al7ptocai ivas extended in Febntary and can cor be
extended past tha 4/15/2.004 eF.p=tiarl date.
I am cnrLadent that you will qualify for n new looLTL l can't assure you that the program and
ntte rhat you a1:e cuxxeady apptovsd£ot wM be available if you have to apply for a vcw loan.
Please ddo what
tyyou can to dose tl:df loan by 4/15/2004.
Tina McGuire
Cam-
FROM CRSR CODY COUNTRY INN PHONE NO. : 760 325 8610 Mar. 17 2004 04: 11PM P2
ra,�� lautseras,� Ma 17 �00d 1:3�25 P. 0-1
i CHASE
CONDITIONO L APPROVAL LETTER
RMILENTIAL FIRST MORTG Ct LOAN
Date: 12/17/03 Loan Number: 1237048598
Frank 7 Tysm
15012 Del Ledo Dr
Sherman Oaks,CA 914m
Dear Frank T Tysen
Thank you, for cousidcriag Chase for your current Bnancing needs, We arc pleased to iufom you f sat we axe able to
issue a oonditional approval ("Approva")for yotiix residtatial first murappe application m Th(e amount of $318 000 for a
Chase Agency 2 10/1 LIBOR ARM, 30 year w1'm, based upon the sub3det property being your second This
kmraval is subject to the terms anil condition 1 set farth iu this letter and on tha attached Conditions page_
Please note that your credit bas been reviewed at an assumed jnterest rats of 5.6250A. You site not suarauuteed tliis interest
rate. If this is a variable rate product, the interest rate identified is an iriiti rite and subject to p Tiodie change. If you
have elected to lock in y-cur rate and points, please refer to your Look-ln ,Agreement and any addendum for specific
terms.
This Approval will expire on 0245/2094; hrwever, it may be extemded at Chase's sole clisoretim- If an extension is
granted, it may be neces'sav to update or re-evaluate some or all of the credit infomariou origitally reviewed which may
rosult m additional fees. Exteusiora of this Approval will not axten.d your. LQcl,-in Agreement,end your rates and points
mey change,
in order to obtain a Coma itaient from i Chas::, the conditions listed on tl s le-icx and on the attached Conditions page
must be met to Chase's satisfaction. A Conuuatment will only be issued after the application has been &Uy processed
and all information and dumnentatiom snbmi Ited has been verified. If Chase approves your hilly processed and verified
mortgage request,you will be providad with a Commi ment,wlaich will superseda this.Approval.
If there is sigmificant change in your Fananei al or credit condition or in any other information orovided to us, Chase
reserves the 7k01 to cancel this Approval. This Approyal is subject to compliance with all fedcraf,state, and local lmrs,
rules and regulations end the execution of ;ill doop 1tE11tiort required by Chase, It is Chase's policy not to make
bigh•cost loans. Thutrfore,this Approval is srbjeel to Chase's determination that the loan is not a high-cost loam.
Again,thank you for yy000r conffid=ce in Chase to provide your mortgage financing. We look forwa;-d to receiving the
documcrntation and infoxination requested on t.ae attaehcd Conditions page and completing your mortgage transaction an a
professional and personal mamter.
Siaicere r
Chase ElManhattan Mortgage Corporation
El 72608 Pasco
Palm Desert,CA 92260
Coud¢iw i Approval�Uuverir'kd�LbAb oft Page I of 2
CALM (10/03)orplam 05)
�N/r e) 41
Mr. Mayor and council members,
Mrs Winter fought the Redevelopment Agency in the 1990s and saved a large portion of the
Terris Club area which has now become famous for it's small hotels and relaxed properties.
For the past several years she has turned down offers from developers. Wanting to preserve the
character and grounds of one of the few original 1930s house left, she feels that the Casa Cody is
the most qualified buyer.
We have painstakingly restored a tuna of the Cent. Adobe trying to keep it as authentic as possible
And we have similar plans for this property. Left untouched for many years it needs sensitive
restoration( it has no heat/no AC). We were due to close escrow on February I and we had
financing as well as a work crew fined up. The City would now start to collect room tax.
The Winter House may not be an architectural masterpiece but it is an original Spanish, an
example of a Palm Springs getaway before pools, fast food chains and shopping centers.
Would not we be better off with the original Desert Irm rather than the Fashion Plaza which has
become an expensive embarrassment. We would now have charming boutiques in downtown
Palm Springs and revenues from shopping.
Once a historic building changes character it is gone and gone for ever. So many have been lost to
date that it would be criminal to loose another.
The Casa Cody is popular because it has spacious grounds and a low key relaxed atmosphere
While we refer many guests to other hotels, the room rate requested is always under $200.
A boutique hotel at a busy corner, facing a parking lot with a dense 2 story urbane construction
has little chance of success. I would not invest in it.
When did the city go into the business of Real Estate and speculation? Taking a property from
one owner to benefit another seems to be a questionable practice.
We do not intend to resell this house but to use it as an integral part of the Casa Cody Inn for our
guests as well as making it available for public functions. It is about making Palm Springs a
better place to live .
Mrs Winter wants us to preserve this house. The city and neighborhood would benefit and we
intend one way or other to continue her legacy and insure that the house, including interiors as
well as the grounds are to be maintained and promptly restored to their original condition and
style. Adding a pool would alter the character of the grounds and be in violation of escrow
instructions.
Therese Hayes •,
Co-owner,The Casa Cody Inn B&B (7
175 S. Calruilla, �
e
Palm Springs,Ca. 92262
(760)320-9346 ! �
rN
h
Question to: Mayor Oden and Members of the Council
My name is Johanna Schenke, I'm a long-time Palm Springs resident.
Last week we were told that, as the result of a closed-session discussion, this
measure would have passed 3 to 2, had it been put to a vote.
As one of the signatories of a letter read , I came to the council meeting fDr
presevation, for 'ustice, and for non-governmental interference with matters
concerning private citizens.
I went away with only questions: a lot of whys.
So, if the result is preconcluded, I will not petition, but will ask the questions.
And I would like everyone here who has questions, to ask them of you, so that we
can have a clear view of what is going on.
It seemed the 3-2 decision was made only for economical reasons: that Mr.
Wesman would generate revenue with 30 rooms and Casa Cody only 5.
But why not decide to have your cake and eat it too?
Did you think that Mr. Wesman, if he could not build his 30 rooms at this site,
would not build his 30 rooms or 10 times 30-rooms, for that matter, elsewhere?
Why take from Casa Cody their 9l way of adding 4 or 5 rooms to the revenue
they are already generating for the city?
Why isn't 35 rooms better than 5 or 30?
Why was the council willing to vote for the measure when it seems that, at the
time of the closed session and even at the time of the meeting, the city had not
even had a concrete proposal from Mr. Wesman?
Why was the matter discussed in closed session?
I would hope the reason (though not a good one) was because a long evening
was anticipated last week due to another justice issue being on the agenda.
I say not a good reason because you don't save time at the expense of even only
one citizen.
- 2 -
Why did no one speak for the measure last week? Isn't there anyone out there
who thinks what you plan to do is the right thing?
Why did Mr. Wesman not speak, or send someone. He doesn't care? Too small
an issue for him? Or is it because the result was preconcluded?
And why are you willing to risk litigation, walk into a can of worms. Is it really
worth it?
Besides, are the citizens of Palm Springs not more more important than the
money? Why is the city playing reverse Robin Hood? Why break Mrs. Winter's
heart?
If there are good reasons, we would like to hear them. There is growing public
sentiment as people become aware of this matter: and it is not restricted to
people who live in the area concerned. So, why not take it to the people for a
vote?
In closing, I would like to emphasize this is not only about preservation or justice.
Like the marriage issue, it involves ALL of us. It would set precedence for
govenment intervention into private affairs.
I am joined by the other signatories to the letter read last week. Will the council
please answer these questions before voting on this matter.
Thank you.
March 24, 2004
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
C
Director
REVIEWED &APPROVED P=(2 000 C