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HomeMy WebLinkAbout00343C - CROCKER SETTLEMENT OPA CANYON DEVELOPMENT Jeremy Crocker - Co-Trustee Francis & Rosalie Crocker Trs Settlement Agr-Canyon Develop AGREEMENT #343C - City A3449 Motion, 11-2-94 SETTLEMENT AGREEMENT This agreement is between Jeremy Crocker, individually and as Co-Trustee of the Francis F. and Rosalie W. Crocker Trust (the "Plaintiff") ; and the Community Redevelopment Agency of the City of Palm Springs (the "Agency") , the City of Palm Springs (the "City") , and Canyon Development, a California General Partnership, real party in interest, ("Canyon Development") . RECITALS 1 . Plaintiff commenced an action pursuant to the Community Redevelopment Law (Health and Safety Code, sections 33500, et seq. ) , and the California Planning and Zoning Law (Government Code, sections 65000, et sea. ) challenging the validity of the Redevelopment Plan for the Canyon Redevelopment Project in the City of Palm Springs which was approved by the Agency and approved and adopted by the City Council of the City of Palm Springs by ordinance No. 1388 , on July 19, 1991; and further challenging the adequacy of the City' s General Plan upon which the Canyon Park Resort & Spa Specific Plan and the Redevelopment Plan were based. The action also sought injunctive and declaratory relief and Plaintiff stated in his complaint that the action was brought in order to prevent an illegal diversion of property taxes by the Agency and City to Canyon Development. 2 . The action is presently pending before the Superior Court of the State of California, for the County of Riverside, entitled: Jeremy Crocker etc. vs. Community 6 940908 C1310-01002 sas 0362935 0 C ra-b- 4- Redevelopment Agency Of The City Of Palm Springs ; et al. , case no. Indio 65118 , consolidated under Sierra Club etc. , et al. v. All Persons Interested In The Matter Of The Redevelopment Plan For Canyon Redevelopment Project etc. , et al . , case no. Indio 64715 MF (the "Action") . 3 . Plaintiff states that it is and was Plaintiff ' s intent in commencing the Action to prevent the Agency and City from assuming financial responsibility for the Project and thus protect the taxpayers and citizens of Palm Springs. 4 . The Agency, City and Canyon Development have entered into an agreement entitled: "Owner Participation Agreement" to effectuate the Redevelopment Plan for the Project. A copy of the Owner Participation Agreement is attached hereto as Exhibit 1 and incorporated by reference herein. All terms not otherwise defined herein, shall have the meanings ascribed thereto in the Owner Participation Agreement. 5. Plaintiff has reviewed the Owner Participation Agreement and believes that the Owner Participation Agreement contains provisions which reflect the practical limitations of financial assistance which can be achieved to protect the taxpayers and citizens of Palm Springs. 6. The Owner Participation Agreement contains restrictions on the nature and extent of the financial assistance to be provided by the Agency and City to Canyon Development, including: A. That any and all financial assistance provided by the Agency and City is required to be utilized solely 940908 C1310-01002 sas 0362935 0 - 2 - for the costs relating to the public improvements such as streets, gutters, sewers, storm drainage, sidewalks, trails, landscaping, etc. as such public infrastructure is required by the Codes of the City, the Specific Plan, the Planned Development District, the Redevelopment Plan, any final subdivision map and the Development Agreement. B. That except for transient occupancy taxes paid with respect to the Project, no general funds of the City are to be committed to assist the Project. That any and all financial assistance provided for such public improvement costs is solely from tax increment and transient occupancy taxes generated by the Site and the Project, and that the aggregate maximum amount of such financial assistance to be provided by the Agency and City will not exceed the sum of Three Hundred Million Dollars ($300, 000, 000. 00) . C. That any bonds are required to be secured solely by the levy of special assessments and special taxes levied on the Site and the Project (State law provides that in the event of default in payment of principal or interest on special assessment or special tax bonds, the real property is subject to foreclosure) , and/or tax increment, transient occupancy tax, and developer fees generated by the Site and the Project. That except for transient occupancy taxes paid with respect to the Project, the City will not pledge any general funds nor pledge its full faith and credit to support or secure such bonds. C. 940908 C1310-01002 sas 0362935 0 - 3 - D. That all low and moderate income housing funds resulting from the Project Area will be in the sole control and possession of the City although Canyon Development will be credited for such sums against its obligations. E. Property tax increment shall be limited to that which is remaining after deductions for amounts required to be set aside for low and moderate income housing, amounts paid to taxing agencies pursuant to pass through agreements, and amounts paid to the State of California pursuant to Health & Safety Code, section 33680 et sea. which property tax increment, pursuant to Health & Safety Code, section 33670, is solely allocated in accordance with Health & Safety Code, section 33670 from property within the Project Area which is developed, owned or leased by Canyon Development, which property currently constitutes approximately 70-730 of the Project Area. F. Additionally, the source of financial assistance which is transient occupancy taxes is limited to fifty percent (500) of the transient occupancy tax paid to the Agency or City from the transient occupancy tax generated by the hotel to be constructed as part of the Project. TERMS OF AGREEMENT The parties to this agreement in consideration of the mutual covenants and agreements to be performed as set forth below, agree as follows: 7 . Plaintiff agrees to file a request for dismissal with prejudice as to all of his causes of action in the Action. 940908 C1310-01002 sas 0362935 0 - 4 - Plaintiff on the one hand, and the Agency, the City, and Canyon Development on the other hand, do hereby forever and fully release each other, as well as their respective agents, employees, representatives, partners, shareholders, directors, officers, attorneys, successors and assigns, of and from any and all sums of money, accounts, claims, causes of action, demands, actions, controversies, whatsoever, of whatever kind or nature, known or unknown, suspected or unsuspected, arising at any time, which Plaintiff now owns, holds, has or claims to own, hold or have, arising out of or related to the Redevelopment Plan, or the Owner Participation Agreement. This release does not extend to the obligations of this Agreement. Further, this release does not extend nor is it intended to extend to any sums of money, accounts, claims, causes of action, demands, actions, or controversies, whatsoever, whether or not it arises out of or is related to the Redevelopment Plan or the Owner Participation Agreement, including but not limited to plaintiff' s rights as an individual, citizen or taxpayer, to challenge any future actions by the City, Agency, or Canyon Development in modifying the Redevelopment Plan or Owner Participation Agreement. 8 . Notwithstanding any provision of law to the contrary, the Owner Participation Agreement shall not be modified in any manner which increases the amount of the financial assistance referred to in paragraphs 6A through 6F, inclusive, in the Recitals above. Nothing herein is intended to prevent the Agency, the City and Canyon Development from modifying the owner cm-6 - 7 940908 C1310-01002 sas 0362935 0 - 5 - Participation Agreement, if such modification does not increase the amount of the financial assistance referred to in paragraphs 6A through 6F, inclusive. 9 . The City and Agency shall not approve nor execute any other agreement with Canyon Development or any successor in interest to Canyon Development which increases the amount of the financial assistance referred to in paragraphs 6A through 6F, inclusive. 10. Canyon Development shall pay to Plaintiff and his attorneys, Greenwald, Hoffman & Meyer, the sum of Seventy Two Thousand Dollars ($72 , 000 . 00) for legal fees and expenses, and such payment shall be made forthwith upon execution of this Agreement. 11. Nothing herein shall be deemed to alter or waive any remedy or cause of action Plaintiff may have for breach of this Agreement, including without limitation, injunctive relief, except as otherwise provided in paragraph 7 . 12 . In the event that any party hereto shall institute any action or proceeding to enforce or interpret any of the provisions of this Agreement including the payment of attorneys fees, the prevailing party in such action or proceeding shall be entitled to recover all of its costs and expenses incurred in the action or proceeding, including, but not limited to reasonable attorneys ' fees and court costs, as awarded by a court. 13 . The terms of this agreement shall be binding upon the parties to this agreement, and their successors in interest and assigns. 940908 C1310-01002 sas 0362935 0 - 6 - 14 . Jeremy Crocker hereby warrants he has full authority as a Co-Trustee of the Francis F. and Rosalie W. Crocker Trust to enter into this Settlement Agreement on its behalf. Dated: October 1994 Jeremy Crocker, Individually, and as Co-Trustee of the Francis F. and Rosalie W. Crocker Trust Dated: October 1994 COMMUNITY REDEVELOPMENT AGENCY i,f„ .�, 1'n Fl� 1;r •n -rsr By: .L' Vice-Chairman ATTE T: �— Assistant Secretary A Dated: October �� , 1994 CITY OF PALM SPRINGS By: Mayor pro t m �: R r ii ATTEST: _ v City Clerk Dated: ¢e ober / �, 1994 CANYON DEVELOPMENT, a California General Partnership By: Name Title �jo Name 3�ltle F r ti� 940908 C1310-01002 sas 0362935 0 — 7 — 14 . Jeremy Crocker hereby warrants he has full authority as a Co-Trustee of the Francis F. and Rosalie W. Crocker Trust to enter into this Settlement Agreement on its behalf. �� Dated: October 6��gg,U , 1994 Jeremy Crocker, Individually, and as Co-Trustee of the Francis F. and Rosalie W. Crocker Trust Dated: October 1994 COMMUNITY REDEVELOPMENT AGENCY By: Name Title By: Name Title Dated: October 1994 CITY OF PALM SPRINGS By: Name Title By: Name Title Dated: October 1994 CANYON DEVELOPMENT, a California General Partnership By: Name Title By: Name Title 940908 C1310-01002 sas 0362935 0 — 7 — CANYON DEVELOPMENT WELLS FARGO BANK 5726 2850 S.PALM CANYON DRIVE PALM SPRINGS,CA 92263 PALM SPRINGS,CA 92264 16-24n220-BRANCH 642 11/22/94 PAYTOTHE Greenwald ,Hoff man&Meyer & Jeremy Crocker **72 ,000 .00 ORDER OF $ Seventy-Two Thousand and 00/100**************************************** DOLLARS Greenwald ,Hoffman&Meyer 500 N . Brand Blvd . Suite 920 Glendale , CA . 91203-1904 Settlement Crocker Lawsuit MEMO 11100572611' 1: i22000247i:0642 06B36511 "