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HomeMy WebLinkAbout1/1/1997 - CRA MINUTES QJ � MINUTES OF COMMUNITY REDEVELOPMENT AGENCY CITY OF PALM SPRINGS JANUARY 15, 1997 The regular meeting of the Community Redevelopment Agency of the City of Palm Springs, California, of Wednesday, January 15, 1997, 7 p.m., was adjourned by the Acting Assistant ' Secretary due to lack of a quorum, to Wednesday, January 22, 1997, at 7 p.m., in the Council Chamber, preceded by a Closed Session at 5:30 p.m. (Note: The City Council met in session with the Council Cabinet on this date,) ROLL CALL: Present: None Absent: Members Barnes, Hodges, Oden, Spurgin, & Mayor Klcindienst +. JUDITH SUMICH Assistant Secretary 06O MINUTES OF COMMUNITY REDEVELOPMENT AGENCY CITY OF PALM'SPRINGS JANUARY 22, 1997 Art Adjourned Regular Meeting of the Community Redevelopment Agency, of the City of Palm Springs, California, was called to order by Chairman Meindienst', in the Council Chamber, 3200 Tahqui(z Canyon Way, on Wednesday, January 22, 1997, at 6:00 p.m., at which time, the City Attorney announced items to be discussed in Closed Session, and at 7:00 p.m., the meeting was convened in open session. ROLL CALL: Present: Agency Members Barnes, Hodges, Oden, Spurgin and Chairman Kleindienst Absent: None REPORT OF POSTING OF AGENDA: City Cleric reported that the agenda was posted in accordance with Council procedures on January 17, 1997. REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION (All Entities) - See items on Page 4 of agenda this date. APPROVAL OF MINUTES: It was moved by Barnes, seconded by Oden, slid unanimously carried, that the Minutes of December 4, 12 and 18, 1997, be approved; Barnes and Spurgin abstain on December 4, 1997, and subject to typographical correction for the;minutes of December 18. PUBLIC COMMENTS: a) Continents concerning Item 1: Dick Sroda, resident, stated that the report implies that if cash is needed, the loan will be sold to (124- another city agency, which he considered a serious mistake. 068) b) Comments on matters not related to an agenda item: Frederick McCarey Ebeling, resident, commented concerning a response he received from the Attorney General, regarding Andreas Street Vacation, that the AG could not look into his complaint because it did not have the budget to do so, and that he go to the P.S. Police Department, since the AG only investigates those actions which come from a law enforcement agency; and that he found that response alarming, because he Felt the police supported the gambling initiative, and was looking forward to more jobs because of it. LEGISLATIVE ACTION: 1. PAI - MONTE VISTA HOTEL LOAN TRANSFER TO PLAZA THEATER FUND Recommendation: That the Agency assign revenue from the repayment of the Monte Vista Hotel loan to the Plaza Theater Fund (1/921). Director of Finance/Treasurer stated that the action is an accounting measure; that there was a transfer of accumulated funds from the Plaza Theater Fund when the Agency purchased the Monte (124- Vita Hotel; that this entry is to try to put back into the fund and keep a separate accounting as 068) much as possible, to accumulate funds to purchase the theater when the option deadline comes due. In response to question, he stated that the proceeds from the Fire Station parcel have gone (124- into the fund already; and that the entry, in effect, establishes an accounts receivable for the 037) theater fund, and not just an accounts receivable of the Agency, per se; and that the Monte Vista loan payments and interest are being collected, and are current. Resolution 1014, as recommended, was presented; after which, it was moved by Hodges, seconded by Barnes, and unanimously carried, that R1014 be adopted. ADJOURNMENT There being no further business, Chairman declared the meeting adjourned. JUDITH SUMICFI Assistant Secretary 061 MINUTES OF COMMUNITY REDEVELOPMENT AGENCY CITY OF PALM SPRINGS MARCH 19, 1997 A Regular Meeting of the Community Redevelopment Agency, of die City of Palm Springs, ' California, was called to order by Chairman Meindienst, in the Council Chamber, 3200 Tahquitz Canyon Way, on Wednesday, Match 19, 1997, at 5:30 p.m., at which time, the City Attorney announced items to be discussed in Closed Session, and at 7:00 p.m., the meeting was convened in open session. ROLL CALL: Present: Agency Members Barnes, Hodges, Oden, Spurghi and Chairman Kleindienst Absent: None REPORT OF POSTING OF AGENDA: City Clerk repotted that the agenda was posted in accordance with Council procedures on March 14, 1997. REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION (All Entities) -See items on Page 4 of agenda this date. APPROVAL OF MINUTES: It was moved by Barnes, seconded by Oden, and unanimously carried, that the Minutes of January 15 and 22, 1997, be approved. PUBLIC COMMENTS: a) Don Franck, resident, commented regarding a closed session item(former Bullocks ' site), and stated that he felt Mr. Crocker and others would like to see the library remain a library; that the Public Arts Commission is considering a wall at the property, and he did not think there is any parking problem, and it should be retained as it is. b) Darrell Meeks questioned how the Council could discuss the "Weidsorn" matter in closed session, when it was not posted on the Closed Session agenda, and he would like an answer at sometime. LEGISLATIVE ACTION: 1. SELF-HELP HOUSING - CVHC Recommendation: That the Agency approve an amendment to the OPA with the CV Housing Coalitions, concerning the self-help housing program at Desert Highland-Gateway. Housing & CDBG Coordinator reported that of the 20 homes proposed to be built under the program, 11 have been completed; that all 20 lots were acquired; and the homes were (124- built with sweat equity - including 7 by single-parents - and that the escrows are ready to 056) close; that CVHC found it difficult to find qualified households to join the program, and the State (HCD) has subsequently recaptured the funds remaining of those originally allocated for the project; that the recommendation is to amend the OPA to reduce the number from 20 to 11, and CVHC will 'transfer title of 3 lots which were originally acquired by the Agency for use in Please II of(he programs, and the Agency will cancel the promissory note secured in the amount of$250,000, and agree to pay CVHC the balance of all sums owing under the technical assistant grant. She noted that the amendment also includes an increase subsidy of $12,940 to one of the participants because of extreme hardship and reduced earning power, for which there will be a third trust deed. CRA Minutes 3-19-97, Page 2 1. SELF-HELP HOUSING (Continued) In response to Agency questions, she stated that the technical assistance full payment is recommmended because of the amount of time and effort by CVHC to try to fulfill the program. Agency Member Hodges expressed disappointment that there were not 20 home built, and she understood the obstacle which arose; that she did not like: to see the loss of the grant funds because nine participants could not be found, and she would want to look again at the program if it is to be considered again. Agency Member Oden stated that the level of interest in the program says a lot, and he was disappointed in the way it was handled, and there was more that could have been done; that he was happy with what did transpire, and would like to know what future plans CVHC has to address these problems. Agency Member Spurgin staled that she did not like the idea of having to pay, and not get the true advantage of the program; and that the Agency now has three lots in its property inventory. Executive Director stated that the neighborhood had asked the City to move ahead with removal of neglected properties, and to convert them into useful proposes; and from that standpoint, die original objective has been achieved. Agency Member Oden agreed, and added that the City needs to look at how people are qualified for these programs. Chairman stated that over all he was pleased with the program, in particular, as a result of the Council's tour of the area and its discussion with the neighborhood; that sweat equity is a major task, and he commended those who, accomplished it, noting that number of single- parents, and that the program gave eleven families the opportunity they would not otherwise have had to own a home; and that the program looks for a special individual who has the ability, time, and commitment to build fire homes, as well as qualified financially. He hoped the Agency would favorably consider a similar program if it it comes forward again. Resolution 1015, as recommended, was presented; after which, it was moved by Barnes, seconded by Oden, and unanimously carried that R1015 be adopted. ADJOURNMENT There being no further business, Chairman declared the meeting adjourned. / JUDITH SUMICH Assistant Secretary 063 MINUTES OF COMMUNITY REDEVELOPMENT AGENCY CITY OF PALM SPRINGS JUNE 18, 1997 A Regular Meeting of the Community Redevelopment Agency, of the City of Palm Springs, California, was called to order by Chairman Kleindienst, in the Council Chamber, 3200 Tahquitz Canyon Way, on Wednesday, June 18, 1997, at 5:30 p.m., at which time, the City Attorney announced items to be discussed in Closed Session, and at 7:00 p.m., the meeting was convened in open session. ROLL CALL: Present: Agency Members Barnes, Hodges, Oden, Spurgin and Chairman Kleindienst Absent: None REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in accordance with Council procedures on June 13, 1997. REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION (All Entities) -See items on Page 7 of agenda this date. APPROVAL OF MINUTES It was moved by Oden, seconded by Barnes, and unanimously carried, that the Minutes of March 19, 1997 be approved. PUBLIC HEARINGS: 1. PAI - PLAZA MERCADO ' Conduct hearing, and consider amending the DDA with John Wessman dba Wessman Development Co., (A309C), to transfer a portion of Agency-owned property to Wessman, to approve a subdivision map or lot line adjustment to effectuate such transfer, to modify the CC&Rs, and to modify the original Scope of Development and Schedule of Performance for the Project; CC&Rs also address several parking issues related to the Plaza de Las Flores project. Hodges abstain. City Attorney reported that the agreement was originally approved in 1992, and the Agency purchased the property to develop a parking structure with residential housing on top of it, (124- behind the building to be built on Palm Canyon Drive by Mr. Wessman; that subsequently, 093) and after more financial study, the residential portion could not be made to work; that in looking at the parking study, it was found that parking structure was not financially feasible at this time; and that the agreement was renegotiated to make changes in the project. Director of Planning & Building displayed plans showing the scale and layout of the project, noting that it will be similar in architecture to the Plaza across the street, and to the Plaza de las Flores in materials. Agency Member Hodges stated that she would abstain due to a client relationship with her employer. City Attorney added that one of the compromises to get the eulnanced architecture and movement of the building along the street frontage was that it was necessary to create more depth for the building, which would also be an advantage in drawing a major and more nationally known tenant; that the additional value of the property is about $75,000, at $25 per square foot, provided to Mr. Wessman in exchange for the greater depth and architectural treatment; that the Agency will still have to build a parking structure, but is not limited to matching his level which otherwise would have been a $168,000 cost to the Agency; that there is an access easement along the back for the public and the trash area; that regarding the parking, there is not a big change, but it was important to understand that the current spaces being utilized will be gone as a result of the construction, and there will be 150 after it is completed; that Mr. Wessman was to have gotten 100 spaces at 50% of the normal rate, if pay for parking is instituted, but it would not be built immediately, therefore, surface parking will have to suffice for both parties; that there is not enough of it CRA Minutes 6-18-97, Page 2 to give Mr. Wessman 100 spaces exclusively; that it may become necessary to begin looking at dealing with parking on a comprehensive basis, as parking shortages occur; that the Agency has the right to reconstruct tlue surface parking, go to bid, or have Mr. Wessman do it and pay hum the additional cost for doing so, which will be an Agency option. Chairman declared the hearing open. ' Frank Tysen, 175 S. Cahuilla Road, stated lie represented small hotels who are opposed to the parking structure at anytime; that other people have also expressed support of their position; that a newspaper poll showed that 83% of those who responded oppose a parking structure; that he would like a clear answer as to what obligation the City has under the agreement, and whether it must build the parking structure. Abdul Montablan (7) New Palm hum, stated that a parking structure belongs in a big city, not Palm Springs, and should be 3-4 block off of the main street; that Palm Canyon Drive is world famous, and he questioned why it should be placed on that street; that beauty, peace and charm should be projected, or people will stay away and not shop; and that the area could be used for a park in recognition of famous people. Al Rosenblatt, dba Iris' in the Desert Fashion Plaza, stated that the DFP has 1200 spaces, of which he felt only 150 are used, and they could be used; that lie questioned how many more vacant stores there can be, and that a major chain is leaving the DFP. Darrell Meeks, resident, questioned who will pay the cost of the Subdivision Map, or for the transfer of tie land; that he did not believe there is any parking problem downtown and will not be in the next ten years; that if there is an obligation to build the structure, he considered it a sham on the part of the Agency; and he questioned if the agreement binds a future Council to having to build the structure. There were no further appearances, and the hearing was closed. City Attorney stated that there is nothing in the agreement that could be used to require the Agency to build the parking structure; that it is at the discretion of the City and the Agency to go forward, and solely its decision to do so; that if it is not built, there is nothing which can be done by Mr. Wessman to force that to happen; that under the Plaza de las Flores agreement, there was all obligation for parking, and an advantage in this agreement is that as long as the surface parking remains, there can be no chin trade to that obligation; and if the Agency did proceed with the parking structure, the agreement includes what the obligations are under that circumstance. Chairman noted that the DFP parking spaces are privately held, and not under the jurisdiction of the City or the Agency. Member Barnes stated that he felt the project will be one of die nicest downtown; that the cormnent that more retail space should not be added when retail is leaving the DPP is not a fair comparison, nor are they in the same market; and that the proposed project is a sound one, and one which makes sense for the downtown. Resolution 1016 as recommended, was presented; after which, it was moved by Barnes, seconded by Oden, and unanimously carried, Hodges abstaining, that R1016 be adopted. 2.. 1997-98 CRA BUDGET Conduct hearing, and consider Res ------- adopting the budget for the Agency for 1997-98. To be rescheduled, and continued to July 2, 1997. PUBLIC COMMENTS: Q G `t CRA Minutes 6-18-97, Page 3 a) Cotmnents concerning Item 2: Dick Sroda, resident, stated that 80% of the Agency's budget is already committed, and there should be a breakdown of the capital and administration budget amounts. ' Darrell Meeks, resident, stated that the public hearing should have been opened, and since that did not happen, it should be renoticed, and he questioned if there was (124- tune in which to approve the budget by whatever deadline was in place; that there is 113) only a net of$1 million for community development and he questioned how much of it is for administration, and how much for development; that he questioned if the Agency had any funds owing from the Canyon Project, which he understood was in federal bankruptcy court. b) Cotmnents concerning Item 1: Don Frank stated he opposes the Wessman project; that he felt people were to have been notified 30 days in advance; did not agree with Mr. Barnes; that Mr. (124- Wesstnan was given $2 million for 80,000 square feet at $20, plus an additional 093) amount for demolition of the Bullocks building, and that he has benefited by more than$2 million; that he felt the property belongs to the people and they should have a say in what happens to it. c) Comments on matters not related to an agenda item: Tom Suitt stated that [he recovery from the economic depression has been very slow, but many positive things have happened in the City, e.g., the work with Nortel and the UC system; that the P.S. Economic Development Corporation last week unanimously endorsed the extension of the utility tax until the City is able to move out of the financial situation that it is in; that the City does not need to be in a position of laying off City staff and affect what the larger cotmnunity bas worked diligently on to attract business and to sell the quality of life in Palm Springs, which could destroy those collective efforts. LEGISLATIVE ITEMS: 3. PA1139 - LAS CASUELAS - OPA Recommendation: That the Agency approve an Owner Participation Agreement between the Agency, the City and Richard & Patricia Service regarding expansion of the Las Casuelas Terraza Restaurant at 222 S. Palm Canyon Drive, A373C. City Attorney stated that the economy affected the owner's plans to proceed, although this (124- proposal has been under consideration since 1990. 014) Director of Planning & Building displayed plans, noting that the improvement will result in mainly outdoor dining. He explained that the land wade will result in the current driveway transferring to the Services. City Attorney explained that the various transfers of parcels will result in a payment by the Services to the Agency of $107,000, and in return the Agency to the City, a payment of $62,540 for the difference value of the parcels traded; that the prior agreements for the Las ' Casuelas Project have been consolidated into the subject agreement and one set of CC&Rs; that regarding in-lieu parking fee, 16 spaces are needed and that will be paid over ten years, but reduced in the event the in-lieu fee per se is reduced; and that the agreement does not contain anything regarding the public art fee, and that matter will be referred to the Public Arts Commission for recotmnendation it deems appropriate. Resolution 1017 as recommended, was presented; after which, it was moved by Hodges, seconded by Oden, and unanimously carried, that R1017 be adopted. EGG CRA Minutes 6-18-97, Page 4 4. PA1B - LAND EXCHANGE Recommendation: That the Agency approve a Purchase Agreement between the Agency and Karen & Vincent Pirozzi concerning an exchange of parcels for properties between North Pahn Canyon and Belardo, and Alejo and Amado, Agency property at 395 N. Palm Canyon, A374C. ' City Attorney reported that the proposal provides for the Agency-owned parcel fronting Palm Canyon Drive be traded for the Pirozzi parcel to the west, which has a minor value (I24- difference of $6,000-12,000, but will be or equivalent value; that there is not a frilly 007) designed project, but the owner needs to be able to show potential tenants or developers that he has a developable parcel with frontage on Palm Canyon Drive; that Covenant will be recorded to provide that when development comes forward, it must go through the full City process and parking dealt with, along with other building provisions. Director of Planning & Building stated that parking will fit on the 50-ft frontage, and standard stalls provided, although there may be a foot differential. Resolution 1018 as recotmmended, was presented; after which, it was moved by Oden, seconded by Barnes, and unanimously carried, that R1018 be adopted. ADJOURN There being no further business, the Chairman declared the meeting adjourned. t—�JUDITH SUMICH Assistant Secretary Ohl MINUTES OF COMMUNITY REDEVELOPMENT AGENCY CITY OF PALM SPRINGS JULY 2, 1997 A Regular Meeting of the Community Redevelopment Agency, of the City of Palm Springs, California, was called to order by Chairman Kleindienst, in the Council Chamber, 3200 Tahquitz Canyon Way, on Wednesday, July 2, 1997, at 5:30 p.m., at which time, the City Attorney announced items to be discussed in Closed Session, and at 7:00 p.m., the meeting was convened in open session. ROLL CALL: Present: Agency Members Barnes, Hodges, Oden, Spurgin and Chairman Kleindienst Absent: None REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in accordance with Council procedures on June 27, 1997. REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION (All Entities) - See items on Page 5 of agenda this date. PUBLIC HEARINGS: 1 1997-98 CRA BUDGET Conduct hearing and consider adopting the budget for the Agency for 1997-98. Director of Economic Development reported that the Agency's budget, which funds operations and debt service, has been before it since the budget was before the City (124- ' Council. 113) City Treasurer explained that the Agency must have debt in order to receive tax increment, which is usually in the form of loans, either from the General Fund or other Project Areas, which are carried into the future until the Project Area is terminated. Chairman declared the hearing open; there were no appearances, and the hearing was closed. Resolution 1019 as recommended, was presented; after which, it was moved by Hodges, seconded by Barnes, and unanimously carried, that Rt019 be adopted. PUBLIC COMMENTS: - None LEGISLATIVE ACTION: 2 Res 1020 approving budgets for P.S. Unified School District, C.O.D., and the Riverside County Supt. of Schools for Projects Areas 8 & 9 for fiscal year 1996-97, pursuant to cooperative agreements, was presented; after which, it was moved by (124- Hodges, seconded by Spurgin, and unanimously carried, Oden abstaining relative to 066) C.O.D., that R1020 be adopted. . Oden Abstain re COD (124- ADJOURNMENT 098) ' There being no further business, the Chairman declared the meeting adjourned. � I -J�UDITH SUMICH Assistant Secretary MINUTES OF COMMUNITY REDEVELOPMENT AGENCY CITY OF PALM SPRINGS JULY 16, 1997 A Regular Meeting of the Community Redevelopment Agency, of the City of Palm Springs, California, was called to order by Chairman Kleindienst, in the Council Chamber, 3200 Talrquitz Canyon Way, on Wednesday, July 16, 1997 at 5:30 p.m., at which time, the City Attorney ' announced items to be discussed in Closed Session, and at 7:00 p.m., the meeting was convened in open session. ROLL CALL: Present: Agency Members Barnes, Hodges, Oden, Spurgin and Chairman Kleindienst Absent: None REPORT POSTING OF AGENDA: Assistant City Clerk report that the agenda was posted in accordance with Agency procedures on July 11, 1997. REPORT OF CITY ATTORNEY ON MATTER DISCUSSED IN CLOSED SESSION (All Entities) - See items on Page 6 of agenda this date. PUBLIC HEARINGS: 1. PA9B-134 - VISTA CHINO SENIOR HOUSING, INC. Recommendation: That the Agency conduct hearing, and consider approving a Disposition &Development Agreement for a 52-unit affordable senior housing project on the south side of Vista Chino, west of Sunrise (adjacent to the Vista Serena; and related to option agreement to Cooperative Services, Inc., to purchase 2.72 of Agency owned property for said complex). A376C. Agency Member Hodges abstained due to proximity of her residence. Executive Director stated that this project would compliment the existing Vista Serena, and he recommended approval. CDBG/Housing Specialists reviewed the staff report and added that the proposed project (124_ can charge rent equal to thirty percent of income; that the rent is affordable; and that the 091) housing is needed in the Community. Chairman declared the hearing open. Jim Jones, stated that he supports the City government, but that on this issue he is opposed; that there are people who do need help, but that existing buildings should be rehabilitated, rather than building new ones; that the financial figures do not add up; that the units are small, about 638 square feet a unit; that the cost is $124 dollars a square foot; that the developer is wanting too much; that based on the figures used, his own apartments would be worth around $9 million; that the entire project, in his opinion, is a total waste of taxpayer money; that the process is flawed; and that if the project is approved, the result will be more vacant properties throughout the City. Fred Ebeling, 2460 Tuscan Road, concurred with the previous speaker; and added that the local government is being run by special interests. Darrell Meeks, concurred with Mr. Jones and added that, across the street from the proposed project, there are vacant buildings; that a new market was allowed to be built before a new tenant was provided for the area being vacated; and that the vacated building is still empty; that the approval of this project will create empty houses in the area; and that the funds should be used to rehabilitate existing housing to be sold. Agency Minutes 7-16-97, Page 2 John Sharley, stated that the program is difficult to understand; that the competition for funds is fierce; that out of thirty applications, only seven were awarded; that the HUD 202 program demands proof must be shown the housing is needed; that there was no marketing outreach, yet there was a waiting list established before the housing is complete; that the cost per unit is less than $60,000; that the land costs include fully improved land, and architectural costs; that the project is long term; that it is for affordable, senior housing; and that there is a need in the Community. ' Liz Brown, Villa Serena, stated that low income seniors need housing; and that being low income does not make one a derelict. June Hollister, Vista Serena, stated that her residence is one of the nicest around; that her rent is $232 a month; that she has a limited income; and she requested Agency approval of the proposed project. There being no further appearances, Chairman declared the hearing closed. In answer to questions by Agency, CDBG\Housing Specialist stated that the subsidy was for offske improvements such as sewer, water, and the like; and that the appraisal of the land included the fully improved site. Agency Member Spurgin stated that her concern for the seniors is well known; that the comments by Mr. Jones were understandable; that the City should use its funds to rehabilitate existing buildings; that she is not in favor of creating vacancies; and that the Vista Serena complex is wonderful, but that she favors fixing up what the City already has. In answer to questions by Agency, CDBG\Housing Specialist stated that there are only two complexes that offer this type of subsidy; that through housing funds, rehabilitation funding is available; that sliding scale rent is based entirely on income, and that a clear need is recognized in the City; that there are a limited number of existing units that would qualify for this type of rehabilitation; that the management style is that the residents are the managers; and that the participation creates a family-like atmosphere. Executive Director stated that future processing of this type of request will include reviewing existing stock for possible rehabilitation's; and that this particular project was part of an overall platy that was set in action several years ago. Chairman Kleindienst stated that this is a phasing of a existing project; that the Agency is committing to the next phase of the project, not to a new idea; that one of the goals of the Council is to recapture of neighborhoods, and adherence to that commitment is needed; that this project is a self-management style; that there are common areas; that the rent is based on a sliding scale according to income; that the project being considered is a proven product; and that commendation should be given to Cooperative Services. Resolution 1021, was presented, after which; it was moved by Oden, seconded by Barnes, and unanimously carried, Hodges abstaining, that R1021 be adopted. PUBLIC COMMENTS: a) Comments on matters concerning item 1. Jim Jones, stated that the approval of Item Nl was a waste of taxpayer money; and that the funds would have been better spent on rehabilitation of existing housing (124- stock. 091) Fred Ebeling, concurred with Mr. Jones. Ric Service, highlighted the benefits of the passage of Measure H, Rent Control, and added that the highest percentage of voters in the history of Palm Springs, turned out for the measure; and added that the Council should support senior needs. Agency Minutes 7-16-97, Page 3 Darrell Meeks, resident, stated that the approval of Vista Chino Senior Housing project was not automatic; that the reason for the public hearing was to give notice for the public to make comment. Myra Goldwater, stated that not all seniors are independent; and she expressed appreciation to the Council for its diligent work and the care for all of those in the Community. B) Comments on matters not on the agenda I Don Frank stated that the downtown is in need of revamping; that City Hall has been remodeled; and drat the Council should study the Smoke Tree Center and apply its success to the downtown. AGENCY COMMENTS: None LEGISLATIVE ACTION: 2. REPAYMENT AND RELENDING OF CRA LOANS Recommendation: That the Agency approve loan repayments and new loans (at 6% interest) from the General Fund, effective June 30, 1997. Director of Finance & Treasurer reviewed the staff report, no further report was given. Resolutions 1022 through 1029 approving loan repayments and new loans (at 6% interest) from the General Fund, effective June 30, 1997, for the CBD, Oasis, Highland-Gateway (124- and City-wide Project Areas Nos. 1, 5, 7 and 9, respectively were presented, after which; 113) it was moved by Hodges, seconded by Oden, and unanimously carried that R1022 - 1028 be adopted. 3 REVOLVING LOAN PROGRAM: (Note: Although listed on the Agency agenda for discussion, the loan policy was a City Council policy; and direction will be for future Council action.) Mayor requested that the City re-evaluate the revolving loan program for owner-tenant improvements. City Manager reviewed the staff report and added that there has been only one "bad" loan; that the program was phased out; and that the Mayor expressed a desire to reinstate the program. In answer to questions by Council, Director of Finance & Treasurer stated that previous loans were for improvements in the downtown area, and within the CBD project boundaries. Mayor Kleindienst stated that the program was successful; that that it focused on facades and signage; and that the loans were secured. City Manager staled that if the Council desired to reinstate the program, the same process could be used. Councilmember Hodges questioned where the funding would come from; and added that this should be considered in next years budget',process. Mayor stated that reserve funds could be considered. Councilmembers Hodges and Spurgin disagreed. Agency Minutes 7-16-97, Page 4 Councilmember Barnes stated that the previous program was great and it was a good opportunity to help the Uptown; that the focus of the Council has been to try to place money back in the reserves, and he was hesitant to use them; that he favors the program, but it would be best to find the funding from another source. City Manager stated that staff has been diligent in protecting the reserves; that if the majority of the Council wished to proceed with the program, staff will explore ways to ' fund it. It was the consensus of the Council that the City Manager explore possible funding sources, and to reschedule this matter, for discussion. REPORTS: (Received by City Clerk, new Planning Commissioner financial disclosures required by State Law relative to the Agency Project Areas - for information only; no action required. ADJOURNMENT: There being no further business, Chairman declared the meeting adjourned. JUDITH SUMICH Assistant Secretary By: PATRICIA A. SANDERS Acting Assistant Secretary 1 072 MINUTES OF COMMUNITY REDEVELOPMENT AGENCY CITY OF PALM SPRINGS JULY 30, 1997 Au Adjourned Regular Meeting of the Community Redevelopment Agency, of the City of Palm Springs, California, was called to order by Chairman Kleindienst, in Studio B, City Hall, 3200 Tahquitz Canyon Way, on Wednesday, July 30, 1997, at 5:30 p.m.., at which time, the City Attorney announced items to be discussed hi Closed Session, and at 7:00 p.m., the meeting was convened in open session. ROLL CALL: Present: Agency .Members Barnes, Hodges, Oden, Spurgin and Chairman Kleindienst Absent: None REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in accordance with Council procedures on July 25, 1997. REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION (All Entities) -See items on Page 6 of agenda this date. APPROVAL OF MINUTES: It was moved by Oden, seconded by Hodges, and unanimously carried, that the Minutes of June 18 and July 2, 1997, be approved, subject to typographical error corrections. PUBLIC COMMENTS: a) Comments on matters not related to an agenda item: The following persons spoke in support of Dave's Jewelry & Loan, operated by Galdys McMillan, complimenting the quality of her business, the safety of having the store downtown, the need for it in the community, and urging the Agency's support in allowing her to stay at her location in an Agency-owned building at a fair and equitable rent, or other location in the downtown area; similarity of other jewelry and antique trinkets being sold downtown, with only the "loan" aspect being the difference: Sue Cote, resident. Gary and Stacy Botroff (?) residents. Nancy Rosenquist, resident. (124- Mr. Owens. 073) Rodelle Hensaw. Arlene Spring Ray Pascal, 611 S. Palm Canyon Drive, stated if Ms. McMillan cannot stay at her current location, she was welcomed at the Sun Center; and he read a letter from Sam Pascal urging approval, noting that the use has parking in the front, does not impede traffic, and brings people to downtown. Jim Jones stated that this type of business is a necessary business, i.e., with the Casino nearby. Darrell Meeks, resident, stated that her business previously was located across the street for nearly fifty years, and she only moved because the Tribal Council tools over the property for the Casino use. 073 CRA Minutes 7-30-97, Page 2 Gladys McMillan stated that she was given a two year lease, and the City was to study the issue, but that has not occurred; that her rent was $500 more than any other rental rate on Indian Canyon Drive; ' that site received a letter offering a one year extension of the lease, but at a $2500 rent increase; that she felt unfairly treated, and slated that her business has been in town for 55 years; that Joy Meredith, Main Street, told her she wanted the business to stay; that the Mayor told her he did not want pawn shops in the CBD, and suggested rather that she change her occupation; that she has a legitimate business, governed by the State, the Department of Justice, and State Codes, and it is cleanly operated and she has a right to operate; and that she would like to stay at her location, and be treated fairly and equitably. Agency Member Hodges requested that this matter be placed on an agenda in September. AGENCY COMMENTS: None LEGISLATIVE ACTION: (124- 1. Res 1029 approving continuing appropriations from 96-97 into 97-98 F/Y, 113) was presented; after which, it was moved by Oden, seconded by Hodges, and unanimously carried, that R1029 be adopted. ' There being no further business, Chairman declared the meeting adjourned. �'—/JUDITH SUMICH' Assistant Secretary 1 7 i MINUTES OF COMMUNITY REDEVELOPMENT AGENCY CITY OF PALM SPRINGS SEPTEMBER 3, 1997 A Regular Meeting of the Community Redevelopment Agency of the City of Palm Springs, California, was called to order by Chairman Kleindienst, in the Council Chamber, 3200 Tahquitz Canyon Way, on Wednesday, September 3, 1997, at 5:30 p.m., at which time the City Attorney announced items to be discussed in Closed Session, and at 7:00 p.m., the meeting was convened in open session. ROLL CALL: Present: Agency Members Barnes, Hodges, Oden, Spurgin and Chairman Kleindienst Absent: None The Meeting was opened with a Salute to the Flag, and invocation by Reverend LeVeta Dillman, Chapel on the Way. REPORT POSTING OF AGENDA: Assistant City Clerk reported that the agenda was posted in accordance with Agency procedures on August 29, 1997. REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION (All Entities) - See items page 6 of agenda this date. APPROVAL OF MINUTES: It was moved by Barnes, seconded by Hodges, and unanimously carried, that the Minutes of July 16 & 30, 1997 be approved. PUBLIC COMMENTS : a) Comments on matters concerning item 1. John Wessman, 1550 South Palm Canyon, stated that the agreement with the City concerning Mercado Plaza is for 12 months; that the start date should have been by September 1; that the bids for demolition are out; that the fencing of the project should be up by September 15, 1997; that the engineer has finalized the site plans; (124- that the plans will need to be processed by City Hall; that normally the process 093) does take three weeks; that building plan check process normally takes another 45 days; that the actual scheduled start date is in October, 1997; that the maximum completion date is nine months; that one tourism season will be affected; but that if the project is started by November, 1997, the completion date should be by September, 1998. Tracy Heller, JIeusso Gallery, stated that he is in favor of the project; that the downtown is composed of small businesses and that the disruption must be kept at a minimum; that the project will take 12 months to complete; that during this period sidewalks will be removed, parking lots blocked off, and earth moved; that fencing will surround the area and that all this is happening during the height of the season; and that the small businessman relies on Council protection against such disruptions. John McDonald, 189 Palm Canyon, expressed dissatisfaction that the Council would allow disruption of the downtown area during the height of the season; and questioned the process to allow this to happen. b) Comments on matters concerning item 2. Mark Temple, 1010 Andreas, spoke in support of Dave's Jewelry and Loan; and (124- added that the business helps those'in need. 073) 075 Agency Minutes 9-3-97, Page 2 Gladys McMillan, 699 Indian Trail, expressed appreciation for all the support and encouragement she has received from the citizens and customers of Palm Springs; and added that this business is her life; that for 20 years Dave's Jewelry has served the rich and the poor; that the business has always been located within a 5 block radius of where it is located now; that the Ordinance that the Council passed deliberately hurts her business; that site pays more rent than anyone else in the area; that she does not want to move; that the problem was created by zoning laws; ' that there has been a violation of her 1st, 5th and 14th Constitutional Amendments; and requested the Council consider equity and fairness when considering the lease. Rodell Henshaw, no address given, questioned on what basis pawn shop locations were considered; and added that pawn shops help the police; that there should be freedom of choice for the location of businesses; that there was a 2 year lease agreed to by Ms. McMillan and the City; that the lease should be extended for 5 years at the same rate of rent; that Ms. McMillan has suffered a great deal of stress; and that an alternative could be to allow her to purchase the building. Sue Cote, spoke in favor of allowing Dave's Jewelry and Loan remain in the same location for an additional 5 years at the same rate of rent. Linda Sroda, resident, stated that some of the comments made at previous meetings (124- were offensive; and expressed hope that the lease situation can be worked out. 073) Bette Tuminello, resident, stated that raising the rent over $400 a month is indecent; that the store should be grandfathered in; and that a lease option could be offered with all rent applying to the purchase price. Dick Sroda stated that when the lease was entered into it was specific for two years; that there was no option to renew; that at the time of approval, the business had no where to go; that the agreement was that the Ms. McMillan would look for another place to locate; that if the City is willing to extend the lease, the renter can either pay the price or find another place to rent. Doug Bottchalk, read memo from Director of Planning and Building related to zoning for pawn shops; and added that a possible alternative had been located north of the present location. AGENCY COMMENTS: None LEGISLATIVE ACTION: 1. PLAZA MERCADO Recommendation: That the Agency approve an agreement with Sanborn A/E Inc., for $13,400 for the preparation of design and construction documents for Agency-owned (124- parking lot adjacent to Plaza Mercado. A377C. 093) Agency Member Hodges abstained due to client interest. Downtown Development Center Director reviewed the staff report. City Attorney stated that the negotiations with Wessman had been based on starting construction during the summer months; that the project would take 9 - 12 months; that the conclusion was that one season would be affected; that the goal was to limit the negative impact to no more than one season; and that when the public hearing was held that was the concept given. 076 Agency Minutes 9-3-97, Page 3 In answer to questions, by Agency, Director of Downtown Development stated that the fence is in the right-of-way; that there will be a 10-foot clearance for a walkway; that there are regulations that must be complied with; that there will be art work displayed on the fencing; that construction was to have started by September 1, 1997, so that the bulk would be out of the way by the Film Festival; that Mr. Wessman has assured staff that the project will be completed by September, 1998; that the most disruptive: work will be done away from the right-of-way; that the construction stages the first tier of parking along Belardo to remain open until the last 60 days; that the parking will remain open as long as possible; that the fencing site is being kept to a minimum for safety reasons; that discussions have been held with surrounding merchants; that the project should be opened by this time next year; and that there may be some tenant improvements still being worked on, but no more disruption to the downtown area. John Wessman, stated that there have been no problems with city staff in processing of permits and the like; that the project architect had quit and a delay was experienced in finding new people and bringing them up to speed; that it would have been better to start the project in June, but that did not happen; that the sidewalk will be affected in February and March of 1998; and that with the continued cooperation by the City, the project will be complete by next July or August. Executive Director recommended approval. Resolution 1030 as recommended, was presented; after which, it was moved by Barnes, seconded by Spurgin and unanimously carried, Hodges abstaining, that R1030 be adopted. 2. PA1133 - DAVE'S JEWELRY LEASE: Executive Director stated that zoning is a process government uses for the orderly establislunent of districts or zones in which compatible uses are performed; that the Central Business District, CBD, prohibits pawn shops, that in fact, the zone has always prohibited (124- the use; and reviewed the staff report in detail. 073) 1 Agency Member Odell questioned who was responsible to find a new location and why was the use not permitted on North Pahn Canyon. Executive Director stated that the responsibility was Ms. McMillan's; that the lease was approved for a period of two years, with no option for extensions; that the city has continued to try to assist with relocation suggestions; but that the problem with locating on North Palm Canyon is the zone does not permit the use. Agency Member Hodges stated that it was her request the matter be placed on the agenda; that the lease does expire at the end of the month; that the lease was originally approved due to the fact that Ms. McMillan lost her previous lease abruptly; that Ms. McMillan has looked at areas that have the proper zoning for pawn shops, but that those areas are not desirable; that most are industrial types of area; that Ramon Road is zoned for allowance, but that traffic is too high and fast; that in order to allow Ms. McMillan access to areas that she wants, the zoning ordinance needs to be reviewed; that from a personal standpoint she has no problem with restudy of the zoning for pawn shops; that the downtown may be an area for possible use; that in the meantime this situation does have to be addressed; that the proposal from the City is to extend the lease for one year at a higher rate; that it may be that the Agency could extend the lease for one year at the current rate; that it is not the choice of the Agency to force a move of the business, but due to circumstances; and that there is a need for this type of business in the Community and that she would like to see it stay. Agency Member Barnes stated the business,was located across the street for several years and questioned whether the use there was in conformance with the ordinance. 077 Agency Minutes 9-3-97, Page 4 Executive Director stated that the east side of Indian Canyon, at that time, was a permitted use; but since that time, the zoning ordinance was modified and pawn shops would be a nonconforming use; that the Agency has several options, uphold the lease, offer an extension of the lease at $1.25 square foot; or extend the lease for a limited time at the current rate of rent. ' Agency Member Barnes stated that while he would like to give the business some additional time to relocate, it must be made clear that it is not possible to remain the in current location. Chairman Kleindienst stated that personally, he would not like to have pawn shops located in the CBD area; that Ms. McMillan came to the Agency two years ago for assistance; that the City honored the request for help and leased a space for two years with the clear understanding that the lease would not be extended; that he is not in favor of increasing the rent, nor in modifying the CBD zone; that the ordinance must be enforced; that the entire Zoning Ordinance was reviewed in 1994; that it was Ms. McMillan's responsibility to find a suitable location. Agency Member Spurgin concurred with the Chairman. It was moved by Oden, seconded by Hodges and carried the following vote that the Motion (124- to extend the lease for 6 months at the current rate of rent be approved. 07 3) AYES: Barnes, Hodges and Oden NO: Spurgin and Kleindienst Agency Member Hodges stated that if it was the Agency's desire, staff could be directed to review the C-2 zone as well as other zones to determine viable alternatives for pawn shops. ' Agency Member Spurgin questioned whether there would be any legal ramifications. Agency Counsel stated that the existing zone does not permit pawn shops; that entering into a lease for a pawn shop that is in a iron-use area is a violation; that the non-conforming use was permitted under the urgency Ordinance; that it does continue to be non-conforming as long as the lease is continued; that the City can violate its own laws; that it is possible that another pawn shop could sue over the situation; that as decision makers, each case is considered individually; that there is concern for the issue; that the legal defense would rest that the City went through the planning process; that time was spent reviewing public concerns; but that there are now new members on the Planning Commission; and that recommendations to the Agency could be different. Agency Member Barnes stated that he does not support a change in zoning but does agree with the time extension. It was moved by Agency Member Hodges to refer the issue back to the Planning Department and Planning Commission to review additional areas to accommodate pawn shops; motion died due to lack of second. ADJOURNMENT There being no further action, Chairman declared the meeting adjourned. ' Judith Sumich Assistant Secretary 9 By: PATRICIA A. SANDERS Acting Assistant Secretary 078 MINUTES OF COMMUNITY REDEVELOPMENT AGENCY CITY OF PALM SPRINGS OCTOBER 8, 1997 A Special Meeting of the Cormmunity Redevelopment Agency of the City of Palm Springs, California, was called to order by Chairman Kleindienst, in Studio B, City Hall, 3200 Tahquitz Canyon Way, on Wednesday, October 8, 1997 at 6:45 p.m. ROLL CALL: Present: Agency Members Barnes, Hodges, Oden, Spurgin, and Chairman Kleindienst Absent: None PUBLIC COMMENTS: None LEGISLATIVE ACTION: 1. CVHC AFFORDABLE HOUSING Consideration of granting funds to the Coachella Valley Housing Coalition for acquisition and rehabilitation of affordable housing in the Cottonwood-Chuck-Walla area, subject to satisfying certain conditions. Director of Economic Development stated that the Council previously received a report from the CVHC as to projects in the Cottonwood-Chuckwalla area; that it applied for giants through HUD, and has acquired properties in that area and other parts of the City, and proceeded to complete the program as it was outlined at that time; that it will seek $1 million in funding, $480,000 to be matched by the City to acquire properties for rehabilitation as well as to offer loans to private owners to rehabilitate properties in that area; and that the matching funds are available in the Housing Fund, and if there are no grant funds received, there is no obligation for the City to proceed, but further dialogue and options could be considered. In response to question by Council, the Director stated that three lots are currently in escrow, for a total of$6,000, and if die purchase is not consummated, there would be some forfeit of those fiords. City Attorney pointed out that there is no contractual agreement yet with CVHC, and it was encouraged to proceed with the grant, and if it is the Council's understanding that the $6,000 represents City funds at risk, that would be a part of the provisions in the written agreement. The Director stated that the $6,000 is part of the CDBG allocation to the CVHC for this year, for it to pursue the program, and a fully- detailed program will be coming back to the Council. No dissension was expressed to die point raised by the City Attorney. Res 1031, approving granting Housing Funds up to $480,000 subject to Housing & Community Development Grant, and a development agreement, was presented; after which, it was moved by Hodges, seconded by Oden, and carried by the following vote, that R1031 be adopted: AYES: Barnes, Hodges, Oden and Spurgin NO: Kleindienst ABSENT: None ADJOURN There being no further business at 7 p.m., the Chairman declared the meeting adjourned. JUDITH SUMICH Assistant Secretary MINUTES OF COMMUNITY REDEVELOPMENT AGENCY CITY OF PALM SPRINGS NOVEMBER 5, 1997 A Regular Meeting of the Cormmunity Redevelopment Agency, of the City of Palm Springs, California, was called to order by Chairman Kleindienst, in the Council Chamber, 3200 Tahquitz ' Canyon Way, on Wednesday, November 5, 1997, at 5:30 p.m., at which time, the City Attorney announced items to be discussed in Closed Session, and at 7:00 p.m., the meeting was convened in open session. ROLL CALL: Present: Agency Members Barnes, Hodges, Oden, Spurgin and Chairman Kleindienst Absent: None REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in accordance with Council procedures on October 31, 1997. REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION (All Entities) -See items on Page 6 of agenda this date. APPROVAL OF MINUTES: It was moved by Oden, seconded by Barnes, and unanimously carried, that die minutes of September 3, October 8, 1997 be approved. PUBLIC HEARINGS: 1. PAIB8 - PLAZA MERCADO Conduct hearing on consideration of second amendment to the Disposition & Development Agreement with John Wessman, dba Wessman Development Company, regarding the Schedule of Performance and penalties for untimely completion of the project, A309C. Member Hodges stated she would abstain, since Mr. Wessman is a client of her employer. Downtown Development Director reviewed his report, and noted that the amendment (124- includes liquidated damages, which would commence 30 days after the fallure to complete 093) on time. Chairman declared the hearing open. The following persons spoke in opposition to the project: Linda Johnson stated she thought the project was unnecessary; and contended that other merchants are required to provide parking, but not Mr. Wessman; that she did not consider him to have had a very good track record in terms of successful projects, which have viable tenants who remain in business. Darrell Meeks questioned why 6-8 parking spaces must now be lost if the project is still going to be completed late, and why the buses cannot be parked there; and added that within the past week, curbs have been painted red on Talrquitz, without public action by the Council. Fred Ebeling supported cotmnents by Mr. Meeks; and expressed opinion that Mr. Wessman receives favorable treatment from the Council, and he would like to see the money being spent go to a better use, for those who are trying to do business in Palm Springs. There were no further appearances, and the hearing was closed. CRA Minutes 11-5-97, Page 2 City Attorney stated that the Agency entered into an agreement five years ago in order to facilitate this project, and the only issue before it at this time relates to the commencement date in the original agreement (September 11 1997) and failure to do so would mean waiting until May 1 the following year; that Mr. Wessman is prepared to do that, but would also be willing to proceed now. He stated that the original concept under the agreement was that the Agency did not want the project to disrupt die downtown for more than one season; that in trade for starting later than September 1, Mr. Wessman agrees to finish by the original completion date, and to pay liquidated damages thereafter; and that there are no liquidated damages in the original agreement. Member Spurgin noted that if there were any liquidated damages, those proceeds would go toward beautifying downtown. Chairman stated that he favors the project, likes the architecture, and the quality of the design; that he was concerned about shifting the time, which may jeopardize two seasons, and he has concerns for the downtown merchants; that the liquidated damages are substantial, but there is a 30-day grace period before they are applied after the deadline, thus the completion could extend beyond the original completion; and there must be fairness and equity to the people who live in Palm Springs. Res 1032 as recommended, was presented; after which, it was moved by Barnes, seconded by Oden, and carried by the following vote, that R1032 be adopted: AYES: Barnes, Oden and Spurgin NO: Kleindienst ABSENT: None ABSTAIN: Hodges PUBLIC COMMENTS: a) Comments regarding Item 2: Dick Sroda, resident, stated that the City has written off over $400,000 in,loans because of defaults, and it is only one of three cities to loan tax dollars to businesses; and that if the (124- loan is too risky for lenders, it is too risky for tax dollars. 115) Bob Slettedalil stated that he desires to locate his storage business at the now vacated building. b) Comments on matters not related to an agenda item: Darrell Meeks, resident, offered congratulations on the passage of Measure HH; that volunteers who worked in opposition to the measure, spent no more than $62.75 in doing so; and that if it is on the ballot again in two years, he will be back again to oppose it. Phil Tedesco, resident on Vereda Sur, cornnented at the last Council meeting, and submitted a petition signed by neighbors requesting that the street improvements be removed and another solution be found for water drainage (See 129-001). AGENCY COMMENTS: None LEGISLATIVE ACTION: 2. PA71323 - SLETTEDA14L dba ALL VALLEY DOCUMENT STORAGE: Consideration of Res -_ approve a loan guaranty agreement for the rehabilitation of a cormnercial building (formerly Lumbermein's Ace Hardware) at 3455 N. Indian Canyon (124- Drive, A_. 115) CRA Minutes ' 11-5-97, Page 3 Executive Director stated that this item was brought forward to begin to recognize that vacant property is Dot helpful in the effort to recapture neighborhoods; that further discussion is needed whether the applicants contract with JFK Hospital for records storage can be assigned as security for a loan. Economic Development Coordinator stated that Mr. Slettedalnl is ahead of his profonma projections; that the CVC would be contacted to make the loan, with the Agency providing guarantee; that the Agency last business loan was at a 50% guarantee; that this is a good project, and if the deal does not go through, the building will be dark. Executive Director slated that no action was being requested, but input from the Agency, to be included in further dialogue with staff and the applicant. Member Spurgin stated that she was empathetic about having an empty building, and with the passage of the utility tax, the public expects the Council to have fiscal responsibility, and she would not vote on an issue where there is no guarantee, and where the City or (124- taxpayer would be at risk. 115) Member Oden stated that the small businesses and hotels requested a meeting to discuss the difficulty of securing funding in this area; and the Inland Empire Corporation was established to provide such assistance; that this businessman has been in Palm Springs for 20 years, and is now in transition from one type to another; that there are some things which are being worked on, and if those can be resolved, it will assist in keeping a business in Palm Springs; and that the amount is not exorbitant, and the applicant has a proven track record. In answer to questions by the Agency, the Economic Development Coordinator stated that the business will employ six people; and that the default would be for the complete default, and not a monthly payment, with the worse case being $37,500. City Attorney stated that the redevelopment law was amended to permit loans for business and industrial facilities, restricted for capital haprovements type activities; that the law does not prescribe the types of conditions or security to be required. Member Hodges agreed with Ms. Spurgin, and stated she has reservations about this subject, however, considers it a good project, and that she would reserve her judgment until the final recommendation is presented, but she did not like unsecured loans. Chairman urged that a way be found that the Agency can support this effort. No specific action was taken. ADJOURNMENT There being no further business, the Chairman declared the meeting adjourned. ✓ JUDITI-I SUMICH Assistant Secretary 1 MINUTES OF COMMUNITY REDEVELOPMENT AGENCY CITY OF PALM SPRINGS DECEMBER 3, 1997 A Regular Meeting of the Community Redevelopment Agency, of the City of Palm Springs, California, was called to order by Chairman Kleindienst, in the Council Chamber, 3200 Talrquitz Canyon Way, on Wednesday, December 3, 1997, at 5:30 p.m., at which time, the City Attorney ' announced items to be discussed in Closed Session, and at 7:00 p.m., the meeting was convened in open session. ROLL CALL: Present: Agency Members Barnes, Hodges, Oden, Spurgin and Chairman Kleindienst Absent: None REPORT POSTING OF AGENDA: Acting Assistant Secretary reported that the agenda was posted in accordance with Agency procedures on November 28, 1997. REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION (All Entities) - See items on Page 5 of agenda this date. APPROVAL OF MINUTES: It was moved by Barnes, seconded by Odell, and unanimously carried that the Minutes of November 5, 1997 be approved. PUBLIC COMMENTS: a) Dick Sroda, Palm Springs, questioned the validity of paying Riverside County Housing Authority $350,000; and added there are many questions that need to be answered regarding this item. b) Darrell Meeks, Palm Springs, stated that the materials concerning this matter are confusing; that the Office of Management and Budget did not review the matter; that the division was established to review all budgetary matters; that item 7 was likewise not reviewed; and recommended the matter be continued to allow Office of Management and Budget review;. AGENCY COMMENTS/ANNOUNCEMENTS: None LEGISLATIVE ACTION: 1. HOUSING AUTHORITY OF THE COUNTY OF RIVERSIDE: Recommendation: That the Agency approve settlement agreement of the Agency's obligation under the 1988 Revenue Bond Issue, Series A; and amend the budget to appropriate $350,000 therefore. Director of Economic Development stated that the Housing Authority issued $99 million of tax-exempt bonds to be used to finance the acquisition of low-moderate income rental (12h- lnulti-family housing units; that 17 units were purchased in Palm Springs; that three cities 056) did participate in the bond issuance; that the net operating income from the projects purchased is insufficient to pay the debt service; that approval of the agreement will allow the Agency to make a lump sutra payment of$350,000 to the Authority in order to dcfease a portion of the bonds; that the $350,000 will represent the Agency's cash-out value of its obligation on the bond issue; that approval,will also terminate the pledge agreement previously entered into by the Agency; that the units will be sold by the Authority to a private or public agency; that the Authority has agreed that should any funds remain from the sale, the excess will be returned to the Agency; that over the life of the bond issue, the amount the Agency actually owes is $385,000; that the approval will provide a savings to the Agency; that if the units do not sell, there is no further obligation to the Agency; that there are sufficient funds available to cover the proposal; that there is an actual net gain; that the resolution should be revised to reflect the year 2018, rather than 2003; and that normally the Office of Budget and Management does not review tax bond issues; and recommended he approval. Executive Director stated that Office of Budget and Management will review these matters in the future. Resolution 1033 approving an agreement and terminating the pledge agreement, and Resolution 1034 amending the budget for $350,000 were presented; after which, it was moved by Barnes, seconded by Oden, and unanimously carried that R1033 and 1034 be adopted. ADJOURNMENT There being no further business, Chairman declared the meeting adjourned. JUDITH SUMICH Assistant Secretary CA9A. SANDERS Acting Assistant Secretary l Y" MINUTES OF COMMUNITY REDEVELOPMENT AGENCY CITY OF PALM SPRINGS DECEMBER 17, 1997 A Regular Meeting of the Community Redevelopment Agency of the City of Palm Springs, California, was called to order by Chairman Kleindienst, in the Council Chamber, 3200 Talrqui(z Canyon Way, on Wednesday, December 17, 1997, at 5:30 p.m., at which time, the City Attorney announced items to be discussed in Closed Session, and at 7:00 p.m., the meeting was convened in open session. ROLL CALL: Present: Agency Members Barnes, Hodges, Oden, Reller-Spurgin, and Chairman Kleindienst Absent: None REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in accordance with Council procedures on December 12, 1997 REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION (All Entities) - See items on Page 4 of agenda this date. PUBLIC COMMENTS: a) Dick Sroda, resident, spoke in opposition to Item 3, and stated it uses taxpayer money. b) Reggie Hall, resident, stated that the loan was issued last November, and every payment has been made; that he is trying to make a better life for himself and his family; that he has worked on this project since 1993; that lie owns the property; and that he needs a little help, not a handout. AGENCY MEMBER COMMENTS: None LEGISLATIVE ACTION: 1. PA71323 - HALL- LOAN GUARANTY Res 1035 approving Amendment No. 1 to OPA with Reginald 'T. Hall and Mollie M. Gray- Hall for a cormnercial rehabilitation project, and a direct loan of $15,000 through the (124_ Commercial Property Improvement Prograun to facilitate the completion of the project, 111) A368C. Executive Director reviewed the memorandum of the Director of Economic Development, and noted that the loan guaranty was made in 1996 for cormnercial hoprovement that was expected to bring all buildings into a rentable condition, including the diner; that there was concern in 1996 that the $40,000 might not be enough to cover the improvements, and no seismic work was expected, which was later discovered to be necessary; that he recommended the direct loan, and changing the schedule of performance in the OPA to reflect a revised construction schedule; that there will be a third trust deed; that the developer has made significant investment, and lie believes it will be successful; that all requirements have been met to date, and he has not been tardy in anyway; and that there are no General Funds involved. Member Oden stated that when the Council toured the area, a big concern was the need for jobs, and this project addresses that concern, as well as the Recapturing Neighborhoods goal; and the purpose of the Inland Economic Development Program is to lend a hand to those who are nearly "loanable". In response to question by the Agency, the Economic Development Coordinator stated that Building D is a small building which abuts the parking lot, and this phase has been worked on since August, 1997; that in order to stay within the budgeted amount of dollars available, the recommendation was to not finish it, rather to seal it off, and to complete it once there are tenants in place, and to fund that through those revenues; and that the profonna to finish it originally was $35,000. He also stated that the biggest cost increase CRA Minutes 12-17-97, Page 2 relates to seismic work which was not anticipated; that the owner indicates he has tenants interested in the property, and the City staff has a core of potential tenants; that there is the potential for immediate profit; that the owner (faunily) will operate the diner; and that it is important that outside leases be adequate enough to cover the debt. He stated that the trust deeds could be combined, however, the second was related to tare loan guaranty, and this third trust deed is related to a direct loan, and it might be possible to default on one, and still retain the other. Resolution 1035, as recommended, was presented; after which, it was moved by Hodges, seconded by Oden, and unanimously carried, that R1035 be adopted. ADJOURNMENT There being no further business the Chairman declared the meeting adjourned. JUD"IT H SUM Assistant Secretary