HomeMy WebLinkAbout0213C - BENEQUITY PROPERTIES - PS MALL OPA Benequity Propprties, Ltd
Partnership - Elements of
ELEMENTS OF AGREEMENT Owner Particip Agr PS Mall
AGREEMENT #213
R621, 6-21-89
The Community Redevelopment Agency of the City of Palm Springs, hereinafter
referred to as the "Agency" , the City of Palm Springs, hereinafter referred
to as the "City" , and Benequity Properties, a California limited partnership,
hereinafter referred to as the "Participant" , hereby agree to the following
elements of agreement:
1. The Agency and City shall provide financial assistance to Benequity
Properties from the property tax increment accruing to the Agency and
the sales tax increment accruing to the City from the Palm Springs Mall
for a period of up to ten years commencing January 1, 1990. In order
to provide for a nine percent return on investment in the first year
of stabilized occupancy, based on the current proforma there is a capital
shortfall to the developer of $1,396,000. This shortfall will be
reimbursed to Benequity under the following formula:
Property Tax Increment From Total Mall (100% of amount over
base year of 1988-89 accruing to Agency) + Sales Tax Increment
(100% of amount over base year of 1988 up to $100,000; 50%
of amount over $100,000) = Annual Payment to Benequity.
Annual payments shall continue until the capital shortfall
is repaid, up to a maximum of ten annual payments.
2. The Agency shall provide financial assistance to Buffums through Benequity
in the amount of $300,000, to cover excess costs related to demolition,
correction of deferred code items, job training, and related opening
expenses. The Agency shall provide a payment of $150,000 on January 1,
1990, and a payment of $150,000 on July 1, 1990.
3. The Agency shall work with Benequity Properties and Buffums to expedite
any City approvals necessary to complete the proposed improvements to
the Palm Springs Mall property and structures.
4. Benequity Properties shall enter into a lease with Buffums for the vacant
Walker Scott department store. Said lease agreement shall provide to
Buffums incentives totalling at least $2,346,500. Said incentives may
be in the form of free rent, construction allowances, mall improvements
required by Buffums, and other expenses directly related to the opening
of the Buffums store.
5. Participant shall provide for the repainting of portions of the accent
colors on the exterior of the Palm Springs Mall to create a more subdued
color scheme for the facility.
6. Such agreement shall not affect the future obligation of Benequity or
its tenants or Benequity's successors and assigns or their tenants to
pay such property taxes as may be assessed on the Palm Springs Mall
pursuant to California law. Nor shall such agreement be deemed to confer
a benefit on anyone who is not a party thereto.
These elements shall form the basis for a formal Participation Agreement.
ATTEST: COMMUNITY REDEVELOPMENT AGENCY
( CITY OF PALM SPRINGS, "CALI.FORNIA
By
�Ass'istant Secretary Chalrmah— '
ATTEST: CITY OF ��,M SPRINGS, CALIFORNIA
City Clerk 1 City Manager
REVIEWED AND APPROVED: 4Cg F %y
BENEQUITY PROPERTIES,
C liforn+ � mited partnership
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