HomeMy WebLinkAbout3/17/2004 - STAFF REPORTS (2) 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
if `0160 am CA.J
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 HI S. AYMO J
Di ctor Comm and Economic Development
APPROVE
x cutive ii� 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
Page 1 of 1
Denise Blotter
---- -------
From: Learnold24@aol.com
Sent: Tuesday, March 16, 2004 10:51 PM
To: chrisM@ci.palm-springs.ca.us; ginnyf@ci.palm-springs.ca.us; micaelm@ci.palm-springs.ca.us;
rono@ci.palm-springs.ca.us; stevep@ci.palm-springs.ca.us
Cc: davidr@ci.palm-springs.ca.us; cityclerk@ci.palm-springs.ca.us; Casacody@aol.com
Subject: Winter House Preservation
Honorable Councilmembers:
On each of my yearly visits to Palm Springs over the past ten years, I have been a very satisfied guest at Casa
Cody Country Inn. I wish to urge the City Council to reconsider your plan to purchase the property known as
the Winter House at 141 South Cahuilla. Please allow the owners of Casa Cody to go ahead with their plans to
purchase this property and to integrate it with their bed and breakfast operation. I can think of no better use of
this property in downtown Palm Springs. I am impressed with the management of Casa Cody and feel that
they have a deep interest in maintaining the charming and historic atmosphere of this area. Under their
ownership the property will quickly become a vibrant part of the community and will generate more revenue for
the city.
Thank you for your consideration.
Sincerely,
Eleanor Arnold
1000 .
C Ina
3/17/2004
Denise Blotter
From: MLCP - Bob Helbling [rhelbling@mlcp.com]
Sent: Monday, March 15, 2004 10:10 PM
To: chrisM@ci.palm-springs.ca.us; ginnyt@ci.palm-springs.ca.us; michaelm@ci.palm-
springs.ca.us; rono@ci.palm-springs.ca.us; stevep@ci.palm-springs.ca.us; stevep@ci.palm-
springs.ca.us
Cc: davidr@ci.palm-springs.ca.us; cityclerk@ci.palm-springs.ca.us
Subject: Winters Property historic Tennis Club neighborhood
To all addressed and copied.
In regards to the Wednesday, March 17th meeting agenda regarding the
historic Winters property. As owners and residents of property in the
historical Tennis Club area, we whish to make our joint opinion known to •i,'/i'ys §,.,�',r'�°
each and all of you addressed. _w
As visitors for many years to Palm Springs, and after sampling many of
the wonderful and not-so-wonderful "Historical Inns" in the area, we
became loyal and frequent visitors of Casa Cody, surely one of the most
beautifully maintained and restored old properties in the area. As a
result of our frequent visits and extended stays at the Cody, we
purchased a home in the Historical Tennis Club area, on South Patencio
Road, on one of the original horse ranch lots sub divided in 1942. We
are in the process of developing plans to completely refurbish and
improve the site. We also purchased a second home in Little Tuscany, on
Chino Canyon Road, next to the Elvis Presley house. Now, it seems, both
of these wonderful areas have become threatened by "progress" .
When we heard that the old Winters property had gone into escrow and
would be added to the Casa Cody, we were so happy to see the property
would be in the hands of owners sensitive to the history and culture of
this very unique and precious area of our city. Then, to our dismay, we
read about the proposed Wessman involvement and proposed acquisition by
the City of Palm Springs of the site and WE WERE AND STILL ARE APPALLED
at what we read. Please, please do not go down that path. The seller
and buyer had agreed to a sale, and the buyer is known for his
sensitivity to historic property and his business success, aka revenues
to the City. Let them be, please. Stay out of this deal and put the
City's revenues and efforts to better use.
No, the Winters property is not architecturally demanding, nor do people
come here specifically to see it. But that does not diminish it as an
essential part of a greater whole which comprises our historical
district, a district which we should go to great lengths to preserve.
Do as we have done so many times. Go spend a night at the old adobe at
Casa Cody, and then ask yourself if we would have been better off if the
owners had sold it to John Wessman to develop. Go to Peabody's for an
early morning curbside coffee, and look across at the old Oasis
property. Look at that elegant little campanile and take time to listen
to it play a one of its tunes for passers-by. Try to imagine what the
Oasis store fronts would be like if they had been preserved in their
1940s style, rather than having been neutralized with ho-hum 70s
storefronts. Then, more importantly, open one of the many books which
show the old Oasis and try to imagine what it would be like if it was
still there, and how many people would come here just to see it. Do any
of you know how many people go to Palos Verdes Peninsula each year just
to see his glass chapel? And, if you still have a little time before
rushing off to work, get a refill and go cruise Palapas before it too
gets bulldozed in the name of "progress" . '
Our city needs to keep increasing its revenue stream, we all get that.
But that will not be done by building big ugly bridges to nowhere, nor
will it be done by destroying the very essence of what is our .,, o
uniqueness. As one of my Tennis Club neighbors, who also recently moved
here from a beach town, said to me the other morning, "Palm Springs
Rocks" . Yes it does. And we need to keep it that way. Do it right.
We can grow and still be sensitive.
Let Frank and Casa Cody do what they do so well, preserve and
flourish! ! ! ! ! The city will gain the revenues, the property will
continue to attract tourists, quality tourists, and we will all win. Do
you think he would have torn down the Oasis, or put those hideous
apartments and condos at the gateway to the Araby cove? I think not.
Thank you for your hard work. These kinds of neighborhood issues are
what must drive you all crazy, but with our current growth frenzy you
may have more lasting impact on this town than all those who passed
before you combined. Be wise, we are counting on you.
Sincerely,
Bob and Judy Helbling
430 S. Patencio Road
Palm Springs
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Robert J. Helbling
MLCP - Multi-Link Communications Products
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Remit/Ship. .2420 West Carson Street #110, Torrance, CA 90501
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Message t�Uf Page 1 of 1
�. %� war.a,�. S
a
Denise Blotter
o
From: Jeff Benedict [benedict@peoplepc.com]
Sent: Monday, March 15, 2004 9:37 PM
'To: 'Steve Pougnet'; 'Chris Mills'; 'City Clerk'; 'David Ready'; 'Ginny Foat; 'Mike McCullough'; 'Ron Oden'
Subject: Winters' Property
Dear Members of the Council,
In my opinion the city of Palm Springs has no business getting involved in running a private business such as a
4 unit boutique hotel.
The city should focus on what its mission has been and still is which is to meet the needs of the people who
reside there and pay their salaries.
The needs for an additional hotel will be meet by whomever purchases the property and chooses to put there
money at risk. We, the people of Palm Springs do not wish to gamble with our tax dollars on the possibility that
that city of Palm Springs can profitably run a small boutique hotel. Stick with prudently running the city
efficiently first. I currently see many proposed fee increases on the agenda and don't think you ought to dabble
in owning and managing an inn.
Please,just concentrate on the scope of work you currently have as representatives of our city.
Thank you and keep pushing forward.
Sincerely,
Jeff Benedict
nR
3/16/2004
FROM CASK 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
Palms Springs City Council
3200 E Tahquitx Way
Palm Springs, CA 92262
Dear Council Members:
Re: Winters property, 141 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 adjacent to their property on 141 South Cahuilla, We are assured that the
Owners of the Casa Cody will preserve the historical integrity and original architecture of
the home in that period oftirne.
Please allow Frank Tyson and Therese Hayes to complete the oscrow in the purchase of
that property.
Respectfully,
Lisa and Joe Luisi
r& ftw
FROM CRSR CODY COUNTRY INN
PHONE NO. : 760 325 0610
Mar. 17 2004 01:20PM P2
Page 1 o]' [
Sub]: Emaiting: Palm Mayor.eml
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Date; 3/17/04 2.52.24 AM pacific Standard Time
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Sent from the Internet,(De#ails
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Wednesday,Marc[, 1-7,2004 America Online: -1bereseHayes
FROM CRSR CODY COUNTRY INN PHONE NO. : 780 325 8610 Mar. 17 2004 01:21PM P3
710 N Patencio
Palm Springs,CA 92262
March 15, 2004
Palms Springs City Council
3200 E Tahgnitz Way
Palm Springs,CA 92262
Dear Council Members:
Be: Winters properly,141 South Cahuilla
I own a home that was built in the 1920°s,located north of the Casa Cody Bed and
Break&n Country Lin.
I support Frank Tyson and Therese Hayes, owners of the Casa Cody,in purchasing
the historical home adjoining their property on 141 South CahuMa. 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.
Please allow Frank Tyson and Therese Hayes to complete the escrow in the
purchase of that property.
Respectfully,
Carol Searioni
r
FROM CRSR CODY COUNTRY INN PHONE NO. : 760 325 8610 Mar. 17 2004 01:21PM P4
A wity yomo
C'
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v^F4l'Fes'
March 12, 2004
DR.JAMES MELTON
5 P E A K 6 P / A U T H O K
Therese Hayes
Casa Cody Hotel
1240 Monte Vista
Palm Springs, C.A.92262
Dear Therese,
Please accept this letter as my sincerc,cxpression to invest your best efforts at the city
council meeting in securing the residence adjacent to your buildings as a part of your
charming, 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, l personally feel that allowing the city to
purchase the Property may result in the eventuality of a transfer of ownership to other
interested parties who, unlike the Casa Cody proprierors, may shift the focus of the
current residence to a more eommerci31 and financially rewarding direction.
1 know from our conversations, and fiom 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. In 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 does not fall prey to the common, the standard, and the fast-
dollar investors.
Patin 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. ��
Best re ands, �' ^ �
1 az
'NBC
CkLon
YHE MEL70f�[ CORPOteAT10N
P.Q. FIgX 2o30 PALM SPRINGS, CALIFORNIA 92263 in foC�Cho Ilene elomdrrow,com
760 323-4204 SOO 635-8661 FAX 760 320-6090 www,Challeng®tomorrow. nm
FROM CASH CODY COUNTRY INN PHONE ENO. /: 760 325 8613 7 cdd4 LM6 17 2P0047 04:11PM P1
Mar 1r-HA5E MANNA`I"TEN MORTGAGE ltri[EMORAND11M
To; Ft1tiK�XSEI4
FROM., TYM'_�ICGUIRE
"JECT: YALV SPA VOS PURCHASE
DATE: 03/17/04
PAGES: 2
Nu. lysea,ynut loan approval for die ptopexty at 141 South Gab,ailla Palm Spaugs CA Wm
be espiting 4/15/2004. The o4, nal ApptoT- iv" extended im Febraary and ran nor- be
extended past thg 4/15/2004 exp=tim date.
I am confident that you will qualify for a new log44 l can't assuCe you that the pxograul and
rate that you are cutteady apptovad for WM be avuilable is you have to apply for a new loan,
please do
do/what
you can to dooe U:ds loaa by 4/15,/2004.
Tin. McGuire
I�
/n'
FROM CRSR CODY COUNTRY INN PHONE NO. : 760 325 8610 Mar. 17 2004 04: 11PM P2
PaSC ibLdub/a5,' Mar 17 2004 p. 0"
'i CHASE
CONDITION.6L APPROVAL LETTER
RESIDENTIAL FIRST MORTGAGL LOAN
Dato; 12/17/03 Loan Number; 1237048598
Prank 7 Tyscn
15012 Del Gado Dr
Sherman Oa'In.CA 91403
Dear Frnok T Tysen
Thank you far considering Chase for jyour current fiimancuig rteeds, We arc pleased to iufcxaza you t;iat we arc able to
issue a conditional approval("Approval")for;l,olir reaidmtial first uiortsagc application in the amount of S 3 1$000 for a
Chase Agency 10/1ClZ ARM, 30 year ttM based upon the subjeot proper:- being your secort orrte. This
Approy—al is aubjeot tag t e termns an condition, set foa in this letter and on the stacked Conditions p all?e_
Please note that your credit kiss been reviewed at an assuxted interest rate of 5.625"in. You are not guaranteed dais interest.
rate. if this is a variable rate product, tkze interest rate identified is an initi rate and subject to Periodic changes If yos
have elected to lock in your rate and points; please refer to your Look-In ,Agreement and any addemdum for specific
terms.
This Agprovat will expire on 0245r'2004; hawcver, it may be extemded at Chase's sole discretion. If an extension is
granted, it ma, be necessat'y to update or re-avaluate some or all of the credit infomRtion origin ally reviewed which may
result in additional fees. Extension of this Approval will not extvnd your, Loots--In,4greezneat,and your rates and points
may change,
in order to obtain a Commnitment from C.mas::, the conditions bsicd on teas le-ter and ar:the attached Conditions-pace
must be met to Chase's satisfaction. A{",ominitment will only be issued of"the application has bezn fully processed
and all inforanation and docwrwatation snbini,ited has been verified- If Chase approves your filly processed and verified
rnottgage request,you will be protndad with a Comtuiut:ent,wlmioh will superseda this Approval.
If there is significant change in your Fr3ianot.al or credit condition or in any o1ber information rovidod 0 us, Chase
reserves the right to cancel this Approval. `17 its Approi'al is subject to compliance with all federal,stzte, and local lairs,
rules and regulatioms and the execution of all doeannentation required by Chase, It is Chase's policy not to make
high-cost ioans. Thor fote,this Approval is sebj cot to Chase's determination that the loan is not a high-cost loan.
Again,thank you for yyoour confidence in Chase to provide yroar mortgage f'inancimig. We look forward to receiving the
documentation and inf�miation requested on t ae attached Conditions page and completing your mortgage transaction in a
professional and personal matzoer-
Simccra r!
Chad Manhattan
72608 El Pathan Mortgage Corporal on
72608 El Pasco 44W
Pam Desert,CA 92260 a4440
egad i ApFae j•va. if5e3-i.alteoit Page I of 2
C/S.l (1a/03)0nplom 7/raj �/� I
,
To: Mayor Oden & City County Members2
City Hall, Palm Springs
Date: 3/17/04
Dear Mayor Oden and distinguished Council Members,
We are writing with regard to the property at 141 South Cahuilla known as the Winter
House.
We have learrit recently, from outraged friends and Palm Springs residents, that the
City, having first refusal on the property, intends to borrow money to buy it and then
sell it to another developer, notwithstanding the fact that the property's owner, Mrs.
Winter, has been in negotiations with the owners of the property adjacent to hers,
Casa Cody, for some time.
We understand that Mrs. Winter would like Casa Cody to have the property if the City
does not intend to keep it for the citizens of Palm Springs because she believes they
will be the only ones who will keep it as it is.
As taxpayers of this city, we do not believe that taxpayers' money (borrowed at that!)
should be used to enter into real estate transactions. Surely, when Mrs. Winter gave
first refusal to the City many years ago, the intent was for it to be kept for the citizens of
Palm Springs and not for the business of real estate transactions: the city not being in
the business, nor should it be. We would guess that, if the City does not intend to buy
the property and keep it, it would lose its first refusal rights.
Secondly, the City should not favor one taxpayer over another taxpayer. If the City
does not have any practical use for property, it should not interfere with Mrs. Winter's
pending sale of it.
The first two reasons we have given for opposing the transaction, important as they
may be because justice is involved, do not overshadow our third reason, We have
seen the integrity of the owners of Casa Cody in the renovation of the properties they
already own. They have kept their hotel in character with Palm Springs' aesthetic and
its history. Palm Springs still stands out from the rest of the valley but, in recent times,
we have seen too many "developments", some involving the City that, for money, is
chipping away at the City's soul.
- 2 -
We urge you not to interfere with Mrs. Winter's sale of the property.
Yours sincerely,
Palms Springs Residents and Homeowners
Adrienne Albert
Albert Dexter
Ann Chesler
Arlene Straza
Elliot Bernstein
Dee Dee Bernstein
Delia Raskov
Don Goodman
Elaine Land-Dexter
George Straza
James Fisher
Jean McKig
Jennifer Futterman
Johanna Schenke
Judy Bernstein
Laurel Futterman
Lila Blane
Lilliane Shuman
Linda Christian
Lisa Bernstein
Mary March
Nathan Shuman
Omar Hadadou
Peter Campoy
Pola Stein
Rosalie Markley
Sally Goodman
Sergio Arenas
Sol & Jeanne Messing
Silvie lacino
Steve Jensen
Suzanne de Val[
Walter Futterman
- 3 -
Celeste Encell, Valley Resident & Ex-Palms Springs Resident
Frequent Visitors to Palm Springs
Calliopi Ash, Los Angeles CA, ex valley home\
wner
Dennis & Trish Fullerton, Mountain View, CA
Eve Woidtke, Valley Center CA
Heather Huxley, Oakland , CA
Jasmine Fuentes, Arlington, CA
Joyce & Al Teie, Placerville, CA
Lillibet Dewey, Oakland, CA
Mariana McCallum, Paris, France, ex PS homeowner
Melba & Dwaine Carlson, Grand Forks, ND
Trudi Teie, Walnut Creek, CA
Russell & Barbara Mancini, Clyde, NC
Denise Blotter
From: MLCP -Bob Helbling [rhelbling@mlcp.com]
Sent: Monday, March 15, 2004 10:10 PM
To: chrisM@ci.palm-springs.ca.us; ginnyf@ci.palm-springs.ca.us; michaelm@ci.palm-
springs.ca.us; rono@ci.palm-springs.ca.us; stevep@ci.palm-springs.ca.us; stevep@ci.palm-
springs.ca.us
Cc: davidr@ci.palm-springs.ca.us; cityclerk@ci.palm-springs.ca.us
Subject: Winters Property historic Tennis Club neighborhood
nll�,017-yyrG�01�A
To all addressed and copied.In regards to the Wednesday, March 17th meeting agenda regarding the historic Winters property. As owners and residents of property in thehistorical Tennis Club area, we whish to make our joint opinion known to
each and all of you addressed.
As visitors for many years to Palm Springs, and after sampling many of
the wonderful and not-so-wonderful "Historical Inns" in the area, we
became loyal and frequent visitors of Casa Cody, surely one of the most
beautifully maintained and restored old properties in the area. As a
result of our frequent visits and extended stays at the Cody, we
purchased a home in the Historical Tennis Club area, on South Patencio
Road, on one of the original horse ranch lots sub divided in 1942 . We
are in the process of developing plans to completely refurbish and
improve the site. We also purchased a second home in Little Tuscany, on
Chino Canyon Road, next to the Elvis Presley house. Now, it seems, both
of these wonderful areas have become threatened by "progress" .
When we heard that the old Winters property had gone into escrow and
would be added to the Casa Cody, we were so happy to see the property
would be in the hands of owners sensitive to the history and culture of
this very unique and precious area of our city. Then, to our dismay, we
read about the proposed Wessman involvement and proposed acquisition by
the City of Palm Springs of the site and WE WERE AND STILL ARE APPALLED
at what we read. Please, please do not go down that path. The seller
and buyer had agreed to a sale, and the buyer is known for his
sensitivity to historic property and his business success, aka revenues
to the City. Let them be, please. Stay out of this deal and put the
City's revenues and efforts to better use.
No, the Winters property is not architecturally demanding, nor do people
come here specifically to see it. But that does not diminish it as an
essential part of a greater whole which comprises our historical
district, a district which we should go to great lengths to preserve.
Do as we have done so many times. Go spend a night at the old adobe at
Casa Cody, and then ask yourself if we would have been better off if the
owners had sold it to John Wessman to develop. Go to Peabody's for an
early morning curbside coffee, and look across at the old Oasis
property. Look at that elegant little campanile and take time to listen
to it play a one of its tunes for passers-by. Try to imagine what the
Oasis store fronts would be like if they had been preserved in their
1940s style, rather than having been neutralized with ho-hum 70s
storefronts. Then, more importantly, open one of the many books which
show the old oasis and try to imagine what it would be like if it was
still there, and how many people would come here just to see it. Do any
of you know how many people go to Palos Verdes Peninsula each year just
to see his glass chapel? And, if you still have a little time before
rushing off to work, get a refill and go cruise PAlapas before it too
gets bulldozed in the name of "progress" . <'
Our city needs to keep increasing its revenue stream, we all get that.
But that will not be done by building big ugly bridges to nowhere, nor
n.,
will it be done by destroying the very essence of what is our �
t
uniqueness. As one of my Tennis Club neighbors, who also recently moved
here from a beach town, said to me the other morning, "Palm Springs
Rocks" . Yes it does. And we need to keep it that way. Do it right.
We can grow and still be sensitive.
Let Frank and Casa Cody do what they do so well, preserve and
flourish! ! ! ! ! The city will gain the revenues, the property will
continue to attract tourists, quality tourists, and we will all win. Do
you think he would have torn down the Oasis, or put those hideous
apartments and condos at the gateway to the Araby cove? I think not.
Thank you for your hard work. These kinds of neighborhood issues are
what must drive you all crazy, but with our current growth frenzy you
may have more lasting impact on this town than all those who passed
before you combined. Be wise, we are counting on you.
Sincerely,
Bob and Judy Helbling
430 S. Patencio Road
Palm Springs
------------------------------------—----—------
Robert J. Helbling
MLCP - Multi-Link Communications Products
WAN/ LAN Equipment:
ADC-Kentrox Adtran Ascend Bay Networks Carrier Access Corp.
Cascade Cisco / StrataCom Larscom Micom Motorola N.E.T.
Newbridge Nortel Networks Paradyne Racal 3Com / US Robotics
Verilink & others
tel. . . . . . . . .800 TO MULTI (800 866 8584) , ext. 113
tel. . . . . . . . .+1 310 320 1451
fax. . . . . . . . .+1 310 320 1551
email. . . . . . <mailto:rhelbling@mlcp.com>
URL. . . . . . . . <http://www.mlcp.com>
Remit/Ship. .2420 West Carson Street #110, Torrance, CA 90501
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Message Q)PLM gp Page 1 of 1
0 llA� 16 2004 m
Denise Blotter _ _ _ RFCc-t°ED
From: Jeff Benedict[benedict@peoplepc.com]
Sent: Monday, March 15, 2004 9:37 PM
'To: 'Steve Poggnet'; 'Chris Mills; 'City Clerk'; 'David Ready'; 'Ginny Foat'; 'Mike McCullough'; 'Ron Oden'
Subject: Winters' Property
Dear Members of the Council,
In my opinion the city of Palm Springs has no business getting involved in running a private business such as a
4 unit boutique hotel.
The city should focus on what its mission has been and still is which is to meet the needs of the people who
reside there and pay their salaries.
The needs for an additional hotel will be meet by whomever purchases the property and chooses to put there
money at risk. We,the people of Palm Springs do not wish to gamble with our tax dollars on the possibility that
that city of Palm Springs can profitably run a small boutique hotel. Stick with prudently running the city
efficiently first. I currently see many proposed fee increases on the agenda and don't think you ought to dabble
in owning and managing an inn.
Please,just concentrate on the scope of work you currently have as representatives of our city.
Thank you and keep pushing forward.
Sincerely,
Jeff Benedict
i
u
3/16/2004
Page 1 of 1
Denise Blotter
From: Learnold24@aol.com
Sent: Tuesday, March 16, 2004 10:51 PM
To: chrisM@ci.palm-springs.ca.us; ginnyf@ci.palm-springs.ca.us; micaelm@ci.palm-springs.ca.us;
rono@ci.palm-springs.ca.us; stevep@ci.palm-springs.ca.us
Cc: davidr@ci.palm-springs.ca.us; cityclerk@ci.palm-springs.ca.us; Casacody@aol.com
Subject: Winter House Preservation
Honorable Councilmembers:
On each of my yearly visits to Palm Springs over the past ten years, I have been a very satisfied guest at Casa
Cody Country Inn. I wish to urge the City Council to reconsider your plan to purchase the property known as
the Winter House at 141 South Cahuilla. Please allow the owners of Casa Cody to go ahead with their plans to
purchase this property and to integrate it with their bed and breakfast operation. I can think of no better use of
this property in downtown Palm Springs. I am impressed with the management of Casa Cody and feel that
they have a deep interest in maintaining the charming and historic atmosphere of this area. Under their
ownership the property will quickly become a vibrant part of the community and will generate more revenue for
the city.
Thank you for your consideration.
Sincerely,
Eleanor Arnold
C cam, 0""
3/17/2004
Page 1 of 1
tt ra1'.r14i`�; z
Denise Blotter
From: Learnold24@aol.com <<
Sent: Tuesday, March 16, 2004 10:51 PM `
To: chrisM@ci.palm-springs.ca.us; ginnyf@ci.palm-springs.ca.us; micaelm@ci.palm-springs.ca.us;
rono@ci.palm-springs.ca.us; stevep@ci.palm-springs.ca.us
Cc: davidr@ci.palm-springs.ca.us; cityclerk@ci.palm-springs.ca.us; Casacody@aol.com
Subject: Winter House Preservation
Honorable Councilmembers:
On each of my yearly visits to Palm Springs over the past ten years, I have been a very satisfied guest at Casa
Cody Country Inn. I wish to urge the City Council to reconsider your plan to purchase the property known as
the Winter House at 141 South Cahuilla. Please allow the owners of Casa Cody to go ahead with their plans to
purchase this property and to integrate it with their bed and breakfast operation. I can think of no better use of
this property in downtown Palm Springs. I am impressed with the management of Casa Cody and feel that
they have a deep interest in maintaining the charming and historic atmosphere of this area. Under their
ownership the property will quickly become a vibrant part of the community and will generate more revenue for
the city.
Thank you for your consideration.
Sincerely,
Eleanor Arnold
_ Gtm�
3/17/2004
0
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March 17, 2004 a^ F
Mr . Mayor and Members of the Council
We (HTCNO) who live in the historic epi-center of Palm Springs believe
we share a common objective with our city leaders to preserve and enhance our
appeal as a destination for visitors, commerce and residents. We believe this
appeal is grounded in our friendly and approachable "Village" atmosphere.
We believe that when options exist, development should be led by the
Private Sector, particularly small businesses and individual homeowners. The
distinctiveness and appeal of Palm Springs is overwhelmingly due to the efforts
of this sector; and it remains our best hope for our joint future... for in addition to
the preservation of our appeal, such an approach is of great advantage to the
financial health of the city.
Finally, We believe that at NO time should our City Government exercise
it's bully power over the private sector, or to pre-empt the private sector, or to
unnecessarily raise barriers and costs to the private sector.
On the basis of these principles, we are dismayed at the city's interference
with private development of the Winter's property and urge reconsideration of this
misguided attempt to favor government action and ownership over the private
sector. It is an inappropriate use of public funds, and pits the city against its own
residents and taxpayers. We have need for your leadership in so many areas where
private solutions have not yet emerged. It makes no sense to interrupt the private
sector and the growth of our tax base.
��, 111W1
Marshall Roath
President, The Historic Tennis Club Neighborhood Organization
C`
Mr. Mayor and council members,
Mrs Winter fought the Redevelopment Agency in the 1980s and saved a large portion of the
Tennis 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 turn 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 1 and we had
financing as well as a work crew lined 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 Inn 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. 1 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
175 S. Cahuihla, €
Palm Springs,Ca. 92262 `I
(760)320-9346 ,A=t"`�
^`1,1
To: Mayor Oden & City County Members
City Hall, Palm Springs
Date: 3/17104
Dear Mayor Oden and distinguished Council Members,
We are writing with regard to the property at 141 South Cahuilla known as the Winter
House.
We have learnt recently, from outraged friends and Palm Springs residents, that the
City, having first refusal on the property, intends to borrow money to buy it and then
sell it to another developer, notwithstanding the fact that the property's owner, Mrs.
Winter, has been in negotiations with the owners of the property adjacent to hers,
Casa Cody, for some time.
We understand that Mrs. Winter would like Casa Cody to have the property if the City
does not intend to keep it for the citizens of Palm Springs because she believes they
will be the only ones who will keep it as it is.
As taxpayers of this city, we do not believe that taxpayers' money (borrowed at that!)
should be used to enter into real estate transactions. Surely, when Mrs. Winter gave
first refusal to the City many years ago, the intent was for it to be kept for the citizens of
Palm Springs and not for the business of real estate transactions: the city not being in
the business, nor should it be. We would guess that, if the City does not intend to buy
the property and keep it, it would lose its first refusal rights.
Secondly, the City should not favor one taxpayer over another taxpayer. If the City
does not have any practical use for property, it should not interfere with Mrs. Winter's
pending sale of it.
The first two reasons we have given for opposing the transaction, important as they
may be because justice is involved, do not overshadow our third reason. We have
seen the integrity of the owners of Casa Cody in the renovation of the properties they
already own. They have kept their hotel in character with Palm Springs' aesthetic and
its history. Palm Springs still stands out from the rest of the valley but, in recent times,
we have seen too many "developments", some involving the City that, for money, is
chipping away at the City's soul.
- 2 -
We urge you not to interfere with Mrs. Winter's sale of the property.
Yours sincerely,
Palms Springs Residents and Homeowners
Adrienne Albert
Albert Dexter
Ann Chesler
Arlene Straza
Elliot Bernstein
Dee Dee Bernstein
Delia Raskov
Don Goodman
Elaine Land-Dexter
George Straza
James Fisher
Jean McKig
Jennifer Futterman
Johanna Schenke
Judy Bernstein
Laurel Futterman
Lila Blane
Lilliane Shuman
Linda Christian
Lisa Bernstein
Mary March
Nathan Shuman
Omar Hadadou
Peter Campoy
Pola Stein
Rosalie Markley
Sally Goodman
Sergio Arenas
Sol & Jeanne Messing
Silvie lacino
Steve Jensen
Suzanne de Vall
Walter Futterman
- 3 -
Celeste Encell, Valley Resident & Ex-Palms Springs Resident
Frequent Visitors to Palm Springs
Calliopi Ash, Los Angeles CA, ex valley home\
wner
Dennis & Trish Fullerton, Mountain View, CA
Eve Woidtke, Valley Center CA
Heather Huxley, Oakland , CA
Jasmine Fuentes, Arlington, CA
Joyce & Al Teie, Placerville, CA
Lillibet Dewey, Oakland, CA
Mariana McCallum, Paris, France, ex PS homeowner
Melba & Dwaine Carlson, Grand Forks, ND
Trudi Teie, Walnut Creek, CA
Russell & Barbara Mancini, Clyde, NC
RESOLUTION NO.
OF THE COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF PALM SPRINGS, CALIFORNIA,
APPROVING AN AMENDMENT TO ASSIGN BUYERS
INTEREST IN 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.
yam
c (a
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 Amendment to Assign Buyers Interest in an escrow with Frances
Winter for the purchase of a property at 141 South Cahuilla Road for
$425,000, 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
Amendment to Assign Buyers Interest or other related agreements.
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
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 Executives Director n
REVIEWED &APPROVED C MW r/rZ now