The URL can be used to link to this page

Home My WebLink About12/18/2002 - STAFF REPORTS (3) DATE: DECEMBER 18, 2002 TO: COMMUNITY REDEVELOPMENT AGENCY FROM: DIRECTOR OF COMMUNITY & ECONOMIC DEVELOPMENT APPROVAL OF A AMENDMENT NO. 1 TO AN EXCLUSIVE AGREEMENT TO NEGOTIATE WITH GEIGER, LLC OF BEVERLY HILLS, CALIFORNIA ON AN AGENCY- OWNED PARCEL AT THE CORNER OF GENE AUTRY TRAIL AND RAMON ROAD RECOMMENDATION: It is recommended that the Agency approve Amendment No. 1 to an Exclusive Agreement to Negotiate with Geiger, LLC on Agency- and privately-owned parcels of+ 38 acres at the corner of Gene Autry Trail and Ramon Road, extending the Agreement for twelve months from the expiration of the Original Agreement. BACKGROUND: In February, 2002 the Agency entered an Agreement with Geiger, LLC on the Agency-owned parcel at the corner of Gene Autry Trail and Ramon Road, commonly known as the dumpsite parcel. Geiger had an option period that allowed it to conduct environmental assessments, negotiate with the adjacent property owner, and design and market the project to tenants. Geiger has been successful gaining tenant interest in the site and is close to having an approved remediation plan for the site. The company hired a remediation engineer, The Source Group, to prepare and submit the remediation plan. The County Local Enforcement Agency has given the plan tentative approval but has referred the plan to the State Department of Toxic Substances Control (DTSC) for further review and approval. DTSC is in the final review stages. Geiger has also entered an option agreement with the adjacent property owner, effective until September, 2003. During that time Geiger will take the project through the entitlement process, and has submitted a site plan to Planning for review and approval. However, the Initial Study may identify the need for an Environmental Impact Report (EIR) based on the traffic demand of a new center and the remediation process itself. Geiger did prepare a packet, including a preliminary site plan, for the International Council of Shopping Centers conference in Palm Springs in September to begin to market the property. Tenant interest was very good. In order to avoid providing Agency financial assistance to the project, the Agency must construct the deal so that the Developer pays a fair market price for the land as if it were clean, less the actual remediation costs that they've expended. Staff has contracted for an appraisal of the site, including the Agency parcel and the adjacent private parcels. A Draft DDA has begun to be prepared, though the DDA cannot be approved until the project is ready to receive its CEQA certification, either the approval of a Negative Declaration or an EIR. Geiger had asked for an Exclusive Agreement to Negotiate for a period of up to 180 days, during which it would complete the market study and the preliminary remediation engineering, as well as commence the process of obtaining entitlements for a project. The company met all of the milestones of that Agreement, which would have expired in September. 01614 6 Staff is recommending, based on the significant progress made by the Developer, that the Agency extend the Agreement for an additional twelve months from the expiration of the Original Agreement. Given the dates of the original Agreement, that would be approximately September, 2003. By that point, the Developer should be through the entitlement process and will have executed its option with the adjacent property owner. JOH S. AYMON R dev opment Dikqt6r APPROVED Executive Director,— ATTACHMENTS: 1. Resolution 2. Agreement to Negotiate CPA �a- FIRST AMENDMENT TO EXCLUSIVE AGREEMENT TO NEGOTIATE THIS FIRST AMENDMENT TO EXCLUSIVE AGREEMENT TO NEGOTIATE ("Amendment') is entered into this day of , 2002 (the "Effective Date") by and between the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, a public body, corporate and politic, ("Agency") whose offices are located at P.O. Box 2743, 3200 East Tahquitz Canyon Way, Palm Springs, California 92263 and Geiger, LLC whose offices are located at 9171 Wilshire Boulevard, Penthouse, Beverly Hills, California 90210 ('Developer"). RECITALS A. On February 6, 2002, the Agency approved that certain Exclusive Agreement to Negotiate ("Original Agreement') with Developer pursuant to which Agency and Developer agreed to work mutually on the development of a retail shopping center at the northeast corner of Ramon Road and Gene Autry Trail in Palm Springs, as more particularly described therein. B. The Developer has performed on all the major terms of the Original Agreement, including preparing a remedial action plan for the site and submitting such plan to the Local Enforcement Agency for approval, obtaining site control of the adjacent property, preparing and submitting a site plan for review and approval by the City, and developing strong tenant interest in the site. C. Agency and Developer desire to amend the terms of the Original Agreement as more particularly described herein. D. Any capitalized terms not defined herein shall have the meanings ascribed to them in the Original Agreement. The Original Agreement, as modified by this Amendment, is hereinafter referred to as the "Agreement." NOW, THEREFORE, the parties hereto agree as follows: SECTION 2. PERIOD OF NEGOTIATIONS. The period of negotiation shall be one year from the expiration date of the Original Agreement, and this Agreement shall terminate after the expiration of such period unless extended as follows: A. For sixty (60) days if an agreement has been prepared by the Agency and executed by the Developer, and has been submitted to the Agency but has not yet been approved by the Agency Board; or B. For thirty (30) days if the major business terms have been agreed to and the Executive Director determines that further negotiations are likely to result in a written agreement; or C. By mutual agreement of the parties. Developer understands and acknowledges that if negotiations culminate in an agreement, such agreement shall be effective only after and if the agreement has been considered and approved by the Agency Board after public hearing thereon as required by law. IN WITNESS WHEREOF the Agency and Participant have executed this Agreement as of the date first written above. "AGENCY" ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, a public body, corporate and politic By: By. Assistant Secretary Executive Director APPROVED AS TO FORM: BURKE, WILLIAMS & SORENSEN, LLP By: Agency Counsel "DEVELOPER" RESOLUTION NO. OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING AMENDMENT NO. 1 TO AN EXCLUSIVE AGREEMENT TO NEGOTIATE WITH GEIGER, LLC OF BEVERLY HILLS, CALIFORNIA FOR THE PURCHASE AND DEVELOPMENT OF A REDEVELOPMENT- AGENCY-OWNED PARCEL AND A PRIVATELY OWNED PARCEL IN MERGED PROJECT AREA #1 (FORMERLY THE RAMON- BOGIE REDEVELOPMENT PROJECT AREA) WHEREAS the Community Redevelopment Agency does own a parcel of land of approximately 14 acres in Merged Project Area #1, formerly known as the Ramon-Bogie Project Area; and WHEREAS the Agency desires to sell the parcel to a developer that can return the land to productive use and facilitate additional development in the area around the site, including the generation of sales tax for the City of Palm Springs, and WHEREAS Geiger, LLC of Beverly Hills, has determined that the development of the site may be practical; and WHEREAS Geiger, LLC has requested the Agency to enter into an Exclusive Agreement to Negotiate for a period of six months on the parcel while they begin the process of site planning and while the remediation design is done; and WHEREAS, Geiger has performed under the terms of the Original Agreement, and has asked for an additional twelve (12) months to complete the remediation permitting and the land use entitlement process. NOW THEREFORE BE IT RESOLVED by the Community Redevelopment Agency of the City of Palm Springs, that the Amendment No. 1 to an Exxclusive Agreement to Negotiate between the Agency and Geiger, LLC is hereby approved. ADOPTED this day of 12002. AYES: NOES: ABSENT: ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA By Assistant Secretary Chairman REVIEWED &APPROVED AS TO FORM