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HomeMy WebLinkAbout00132C - PA6B14 RENAISSANCE HOTEL PARTNERSHIP PATEL HOTEL OPA Renaissance Hotel Partnership aka Patel Hotel , owner particir agr, NPC proj , PA#6 AGREEMENT #132 COMMUNITY REDEVELOPMENT AGENCY Resolution 347, 7-3-85 OF THE CITY OF PALM SPRINGS -- OWNER PARTICIPATION AGREEMENT THIS AGREEMENT, made and entered into this 31st day of July 1985, by and between the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS (hereinafter referred to as the "Agency") and Renaissance Hotel Part- nership (hereinafter referred to as the "Participant") whose General Partners are Chuni Patel , Renaissance Hotel , Inc. (Nanu Patel and Ganesh Patel ) , Environetics (Ronald Semler) and Michael Donner. This agreement is entered into with reference to the following facts: (a) The North Palm Canyon Redevelopment Project Area, has been selected and designated as an area which required development in the interest of the Health, Safety and General Welfare of the City of Palm Springs and the State of California and in accordance with Section 33000 through 33600 of the California Health and Safety Code. (b) The Redevelopment Plan for the North Palm Canyon Project Area was prepared and approved by the Agency. On October 19, 1984, the Plan was adopted by the Palm Springs City Council upon the passage of Ordinance 1227, following a joint Public Hearing of the Agency and the City Council . (c) The parties hereto recognize and agree that the Redevelopment Plan is a plan for the improvement of real properties within the project area and for the prevention of further blight therein. (d) The Redevelopment Plan provides for the participation of owners of parcels of property therein, if the owners of such property agree to participate in the redevelopment in conformity with the Plan by enter- ing into an agreement with the Agency to effectuate improvement of such property. (e) The Participant has acquired Parcel 507-021-001 (Patel ) , is in escrow on Parcel 507-021-002, (Parcel 8) and has requested the Agency to use its powers of eminent domain on Parcel 507-021-003 (Parcel 7) in order to assemble a reasonable parcel for the development of a 105 room hotel with subsurface parking. The parcels are described herein and are located in Block 14 of the North Palm Canyon Redevelopment Project Area. (f) Successful redevelopment of the total Project Area would benefit the Participant' s property by the elimination of old and nonconforming commercial and residential buildings and by the replacement thereof with modern, well planned, attractively designed building and related improvements. NOW, THEREFORE, the Agency and the Participant (for the consideration and under the conditions herein set forth) for the benefit of themselves, do understand and agree for themselves and their assigns, successors and future owners of said real property and of all owners of real property in the Project Area as follows: I. PARTIES TO THE AGREEMENT A. The Agency The Agency is a public body, corporate and politic, exercising govern- mental functions and powers and organized and existing under the Community Redevelopment Law of the State of California. The office of the Agency is located as part of the City of Palm Springs, at 3200 E. Tahquitz-McCallum Way, Palm Springs, California 92262. B. The Participant The Participant, operates under the name of National Capital Development Corporation, with offices at 7254 Foothill Boulevard, Tujunga, CA 91042, telephone (818)352-4417. The Participant may bring into this Agreement, a partner or partners who shall be named in an addendum to this agreement, pursuant to which said partners shall be fully bound to the terms and obliga- tions hereof. II. PROPERTY DESCRIPTION Patel Parcel : (507-021-001) DESCRIPTION: In the State of California, County of Riverside, City of Palm Springs, described as follows: The northerly 264 feet of the northwest quarter of the northwest quarter of the northwest quarter of the northwest quarter of Section 11, Township 4 South, Range 4 East, San Bernardino Base and Meridian, as shown by United States Government Survey. Said property is also shown on record of survey on file in Book 5, Page 42 of Records of Survey, Records of Riverside County, California. Parcel 8: (507-021-002) DESCRIPTION: In the State of California, County of Riverside, City of Palm Springs, described as follows: Lot 8 of Palm Springs Estates No. 5, in the City of Palm Springs, County of Riverside, State of California, as shown by map on file in Book 18, Page 91 of Maps, Records of Riverside County, California. Parcel 7: (507-021-003) DESCRIPTION In the State of California, County of Riverside, City of Palm Springs, described as follows: Lot 7 of Palm Springs Estates No. 5, as shown by map on file in Book 18, Page 91 of Maps, Records of Riverside County. III. USE OF THE PROPERTY: COVENANTS AND RESTRICTIONS Participant covenants and agrees for itself, its successors, its assigns and every successor in interest to the property or any part thereof, that: A. Participant, such successors and assigns, shall devote the property to uses specified in the Redevelopment Plan, as it now exists or is hereafter amended consistent with the provisions of this agreement. B. There shall be no discrimination against or segregation of any person, or group of persons, on account of race, sex, color, religion, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the property, nor shall the Participant itself nor any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the property. C. Participant agrees to submit copies of its schematic and preliminary plans and drawings to the Agency, for review and approval pursuant to the Redevelopment Plan and at such appropriate time as to give the Agency reason- able time to approve or disapprove such plans and drawings. Reasons must be stated for disapproval and if disapproved, the parties shall work cooperatively to attain a mutually agreeable solution. Approval of the plans y ff -2- by the Architectural Advisory Committee of the Palm Springs Planning Commis- sion, acting as the Design Review Board, will be required prior to Agency review and approval . D. The provisions of this agreement do not limit the right of obligees of Participant to foreclose or otherwise enforce any mortgage, deed of trust or other encumbrance upon the property, or the right of obligees to pursue any remedies for the enforcement of any pledge or lien upon the property; provided, that in the event of a foreclosure sale under any such mortgage, deed of trust, or other lien or encumbrance, or sale pursuant to any power of sale contained in any such mortgage or deed of trust, the purchaser or purchasers and their successors and assigns, and such Property, shall be and shall continue to be subject to all the conditions, restrictions and covenants herein provided for. IV. TERMS AND CONDITIONS OF THE AGREEMENT A. Assignment and Sale The Participant may transfer or sell the property consistent with the Redevelopment Plan and City ordinances but may not assign this Agreement to a third party without the approval of the Agency, and provided that such purchaser shall be bound in writing by all of the terms and conditions of this Agreement, and upon such transfer, Participant shall be relieved of any further responsibility under this Agreement with respect to such trans- ferred property. Participant shall promptly notify the Agency of any proposed transfer or sale of the property and shall advise any prospective purchaser or transferee of the terms of this Agreement. B. Description of Development The Participant agrees to develop a 105 room quality hotel , subsurface parking to satisfy at least 90% of the required parking, a tennis court and landscaping. The development shall satisfy the requirements of the zoning ordinance except as specifically provided for in this agreement. The term "quality" for purposes of this agreement shall mean an average room rate of $100.00 per day; and a minimum room size of 350 square feet. C. Guarantee of Minimum Property Tax Revenue The Agency, in order to guarantee sufficient revenue to justify partici- pance in this development, requires Participant to guarantee a minimum property tax income of $75,000 per year to commence upon the Participant's receipt of the first full property tax assessment by the County of Riverside. Said amounts to be computed after yearly tax rolls have been equalized and payments to coincide with the bi-yearly payment of property taxes prior to the delinquency dates for the payment of County taxes. Said guarantee to be for a period of eight years from the date of first full due bill . The $75,000 was computed on the basis of $13,042 presently being collected on the three parcels and an estimated $61,785 to be added to property tax revenue after completion of the project. D. Partial Reimbursement for Parcel The Agency agrees to reimburse Participant $135,000 of the cost of Parcel 8 when construction of the project begins, as evidenced by the issuance of building permits and commencement of grading. E. Time of Performance The Participant agrees to begin construction by calendar year 1988. In the event construction is not commenced by July of 1989, the Agency shall have the right to acquire the total site and plans at Participant's cost. F. Acquisition of Parcel 7 The Participant agrees to provide the required sum of money as determined by the court should the Agency utilize its powers of eminent domain and obtain an Order for Prejudgment Possession on Parcel 7. In the event the court -3- awards a higher amount than the Agency's appraisal , ($115,000) , the Agency agrees to pay $41,621 toward the cost of the property up to $146,733 and any additional amount of the award above $146,733 shall be provided equally by the Agency and the participant. Court and legal costs shall also be shared equally by the Agency and the participant. The Participant agrees to provide the Agency' s portion of said costs. The Agency agrees to repay said funds within a period of eight (8) years of the issuance by the City's Building and Safety Department of a Certificate of Occupancy. The Agency's obligation to repay said funds to participant shall be evidenced by a promissory note, executed by Agency in favor of participant bearing interest at a rate of 12% per annum. G. Provision of Offsite Improvements The Agency agrees, to the extent feasible after the payment of its share of costs attributable to parcels 7 and 8 above, to utilize its share of pro- ceeds from property taxes generated by this project for the first ten years after the first full assessment to be applied to costs of offsite improvements. H. Termination by Agency The Agency reserves the right to terminate this agreement if Participant fails to commence physical construction of this hotel development on Parcels 1, 7 and 8 by December 31, 1988, or fails to perform any other obligation under this agreement. The Participant agrees, should this provision be exer- cised, to reimburse Agency for all lawful expenditures including Agency' s participation in land costs, legal fees and any other expenditures by the Agency toward this development, together with interest at 12% per annum. I. Termination by Participant Participant shall have the right to terminate his obligations under this agreement at any time prior to the date when Participant commences con- struction, provided however, that Agency shall be reimbursed for any legal fees or court costs, damages or appraisal fees. J. Supplemental Agreements Within ninety (90) days from the date of this Agreement, and based on Participant's approved preliminary plans for the property, the Agency and Participant shall enter into supplemental agreements as necessary to implement this agreement. Said supplemental agreements shall be consistent with the terms of this agreement and include: (a) Any additional partners under the agreement as "Participant" up to the above date (b) The terms of the guarantee of minimum property tax revenues and Agency' s remedies thereunder (c) The terms of the loans to be provided to the Agency by the Partici- pant (d) The type and extent, if any, of offsite improvements to be provided by the Agency (e) Such other matters as necessary to implement this agreement. If such supplemental agreements are not entered into within said ninety (90) day period, subject to such extensions as may be mutually agreed to by the parties, then either party for a period of thirty (30) days thereafter may terminate this agreement upon written notice to the other. V. GENERAL PROVISIONS A. Agency Employees, Members No member, official , or employee of the Agency shall have any personal interest, direct or indirect, in this agreement, nor shall any such member, official , or employee participate in any decision relating to the agreement, which affects his personal interests or the interests of any corporation, -4- partnership, or association in which he is, directly or indirectly, interested. No member, official , or employee of the Agency shall be personally liable to Participant or any successor in interest in the event of any default or breach by the Agency or for any amount which may become due to Participant or successor or any obligations under the terms of this agreement. B. Right to Enter The employees and agents of the Agency shall , at all reasonable times, have access to the property for the purposes of making such inspections, surveys and examinations of the same as may be reasonable and necessary in the performance of its obligations to carry out the redevelopment in accordance with the Redevelopment Plan. C. Acquisition by Other Public Agency Upon the acquisition of the property by any other governmental entity, the Agency may, in its sole discretion, terminate this Agreement and all obligations and duties of the parties hereunder. O. Time is of the Essence Time is the essence hereof; provided, however, that any time limitation set forth herein may be extended by the Agency, in its sole discretion, upon the receipt of written request therefore from Participant. E. Binding Effect of Agreement This agreement shall be binding upon and shall inure to the benefit of the parties hereto, their legal representatives, successors and assigns. This agreement shall likewise be binding upon and obligate the property and the successors in interest, owner or owners thereof, and all of the tenants, lessees, sublessees and occupants of such property. This Agency and the Participant have executed this agreement on the date first above written. Date: gy Participanntt,Renaissance Hotel , Inc. Attest: General Partner, Jurc0la President By: Assistant Secretary Chairman / " Community ReL6 elopment Agency City of Palm Springs, California COMMUNITY REDEVELOPMENT AGENCY CONTENTS APPROVED: p� APPROVED AS TO FORM: Redevelopment Director By City At rney Date t� STATE OF CALIFORNIA�� — — COUNTY N, NTY 0 ^ll�i z On this before me—��day of �P� ,,"',',.; 011"I'AL sf:AL '° the undersigned mm�a�: LAURI LIGp1 V f I.` worAny,n rHlq 1�V U Notary public in in the tl i � Vr3ucc" a �iveesio rric�iri�lA`' - ,�-;� and for said Slate, personally yg,��y-- gf f;mt{ GcIssrow Ezp couvrdoeu Y aPPeared n��Va�aawu'awb . ..,» ;. (or proved Ill�� to me on the basis of satisfactor execute subscribed to the Y evidence personall Within instru to be the Y known to me j r� ment,and acknowled son'` whose _ I'r ged to name WITNESS my hand and me that officials Nlry ACKNOW seat, M1!� LEOGMENi—General_ _©1982 WOLC0775,INC Walcolls 233CA—qev 5 82lasseZI L Notary Public M in said �VI JJ �d for V� �d�u State E X H I B I T A j VISTA CHINO 5141 � I h V I T �,505- /GG -a0/ PATEL I 307-0t/•CVZ C 26 3o b ro 4 I I /i290' N 507- 02/- 00 i ' 1 BARTHOLOMEW V j I Ih 7 � 11307-a2J-0o3 C I 34 ' • •7 77 77V -7 I 7. J W III � oil G 25 30 \ I I I a5-it6-Oa4 III .90 I I r0a' II /rP"J9' 4 � N N - %ao 75 `� /00' I — P/ I•J9 � - 4 81 5 I zP 507-010/- 007 I 507- 92/-009 R_ R' Ba.69 ' i /00' I /oo ' I 92.49 2O• Emool�UC—IN CA1 _ALA--R sos- /�oG -007 T Z0• of � - z5' 90 ° 41 0 42 ail 43 �� 44 ^ 43 2p °0 Sal-c24-a0i IS07-�p24-002 ( 6 /07.E /05 — J _ _ /05 /115 /0s /Tg 5v• /3d 6.5 _ 30 0�3/-00/ Sol"03/-dp2 s05-/15Z -00Z s05-/6'0-oor— ti3 I STEVENS RE] v r59 ' 'aB�' ��•/// 33 /25' /!5` //5 ' 3a5 /Sr-dam' Say /BZ -Ofg '0 50 g5 In 7 4 �' v 33 '^ •o /0 � 9 �� h �n 6ca-/Qr .505 Z505-/,6-0/9 Lb 10 05 5o7-a3t-O// S07-032-00 0T-o3 _Sal-od2-ap4 0 /5' _ EXHIBIT A