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HomeMy WebLinkAbout2/6/2002 - STAFF REPORTS MINUTES OF CITY OF PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY DECEMBER 19, 2001 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, December 19, 2001, 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 Mills, Oden, Reller-Spurgin, and Chairman Kleindienst Absent: None REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in accordance with Agency procedures on December 14, 2001. REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION (All Entities) - See items on Page 5 of agenda this date. PUBLIC COMMENTS: Steve Sims, 255 El Cielo, stated that the owner of Desert Shadows has stated that no assistance is needed to complete the expansion of the project and added that the developer should be allowed to pay for its own development in total. Frank Tysen, 175 S. Cahuilla, questioned why the Agency is eager to give the Desert Shadows project money; that there are conflicts of interest with the project; that the developer has stated no Agency assistance is needed; that any assistance by the Agency should be based on need, not on who one knows; that the Biltmore and Spanish Inn are projects that need assistance; that those projects should be helped; and that there has been a denial of due process regarding the proposed pedestrian bridge. Agency Counsel clarified that the overall Desert Shadows expansion does include a pedestrian bridge; and that the due process comments was related to that issue. Steve Payne, 1533 Chaparral, stated that there was a comment inferring he had stated he did not need any funding assistance from the Agency to complete the Desert Shadows expansion project; that in fact, the comment was that the project would happen, but infrastructure would be sacrificed; that the offsite improvements are what the Agency assistance is for; that those improvements benefit not only the project, but the entire community; that the history of Owner Participation Agreements between Desert Shadows and the Agency is a success story; that all assistance has been paid back in one-half of the allotted time; that the proposed area for development has sat blighted for the past 40 years; that direction was given by the Agency to come up with an outstanding project; that the direction has been followed; and that the plans have been highly publicized. Hormee Ramie, 640 N. Indian Ave, stated that the City is seeking an order to demolish the property; that assistance has been requested from the City, but has not been forthcoming; that calls have been made to the City Manager, but not returned; that this building was once one of the most beautiful buildings in the City; that with renovation the same effect can be achieved; that famous people stayed at the Spanish Inn; that the building should be restored; that the only reason the City is seeking the demolition order is to give the property to someone else and requested additional time be given to allow the renovation to take place. APPROVAL OF MINUTES: It was moved by Oden, seconded by Reller-Spurgin and unanimously carried, Mills abstaining on October 24, 2001 that the Minutes of October 24 and December 5, 2001 be approved. PUBLIC HEARING: None LEGISLATIVE ITEMS: A. DESERT SHADOWS III LIMITED PARNERSHIP OPA Recommendation: That the Agency approve an Owner Participation Agreement with Desert Shadows III Limited Partnership for the development of seventeen hotel condominiums located at the northeast corner of Indian Canyon Drive and Stevens Road. MA#1. A434C. Agency Member Mills stated conflict of interest due to business. Director of Redevelopment reviewed the staff report and added that it is the gap in financing that triggers the assistance of the Agency, not a windfall to the project. Agency Counsel stated that previously an issue was raised regarding the need for financial assistance; that the staff report at that time did not indicate the additional information regarding the finding that there was a financing gap; that the need has been determined; that the reports do address the finding; that the matter of bridge approval is not a part of the findings; that the project as a whole is being approved; that the separate design of the bridge was addressed by the Planning Commission; that typically the Agency would not review the design, but could do so if desired. Chairman questioned if Agency desired to review the bridge design. Agency consensus was negative. Agency Member Oden questioned the timing of the additional findings and the location of the requested improvements. Agency Counsel stated that subsequent dialogue has been held with the developer; that the information is now complete and does address the issues; that it has been determined even with Agency assistance, the full financial gap is not closed; and that the assistance would be used for off-site improvements in the right-of-way. Agency Member Oden questioned what financial assistance is based on. Agency Counsel stated that need is based on an adequate economic return; that the need is not based on personal assets; that with the Agency assistance the project can move forward, and if within targeted areas in the Implementation Plan, then the assistance can be warranted. Agency Member Oden stated that while persons have come forward saying that this particular developer does not need the assistance, nor want the assistance, the assistance has been requested; that this area has not had anyone wanting to invest in it for years; that the assistance the Agency is considering is for public improvements, that is, improvements that enhance the whole community; that this developer has made an investment in our community; that the community is full of need, but a determination is being made on a balance of what has been done in the past; that the City is tourist friendly; that this is an opportunity to see something better than a blighted block of land; and that it would be good for the citizens to assist the Agency with positive suggestions. Resolution 1156 as recommended was presented; after which, it was moved by Oden, seconded by Mills and unanimously carried, Mills abstain, that R1156 be adopted. B. PS APARTMENTS, LLC OPA Recommendation: That the Agency approve an Owner Participation Agreement with PS Apartments LLC, for the rehabilitation of a 16-unit apartment complex located at 555 & 585 East Cottonwood Road and 556 & 594 East Chuckwalla Road. MA#1. A435C. Redevelopment Director reviewed the staff report. Agency Member Oden stated that this is a part of the Recapture Our Neighborhoods Program; that this area has had alot of focus; that improvements have been done; that the area looks better; and that this will improve the affordable housing stock. Chairman stated that the City targeted this area some years ago for rehabilitation; that blighted areas have been cleaned up; that assistance has been offered to property owners to bring the properties up to Code; that this is a viable alternative for the developer and a good benefit to the Community. Resolution 1157 as recommended was presented; after which, it was moved by Oden, seconded by Reller-Spurgin, and unanimously carried, that R1157 be adopted. C. COACHELLA VALLEY HOUSING COALITION OPA AMENDMENT#1 Recommendation: That the Agency approve Amendment #1 to Owner Participation Agreement with Coachella Valley Housing Coalition for the construction of nine single family homes located in the Cottonwood/Chuckwalla neighborhood. A394C. Director of Redevelopment reviewed the staff report. Redevelopment Agency stated that this property is in the same neighborhood as the previous action; that the area has changed for the better significantly and added that this will be a crowning housing program for the area. Chairman stated that the work in the neighborhood is appreciated, but in this case there is concern with the design of the project. Resolution 1158 as recommended was presented; after which, it was moved by Oden, seconded by Mills and carried by the following vote, that R1158 be adopted. AYES: Members Mills, Oden and Reller-Spurgin. NO: Chairman Kleindienst ABSENT: None. D. 600-690 N. INDIAN CANYON DRIVE - SPANISH INN Recommendation: That the Agency approve a contract with Dozier Appraisal Company for appraisal services to determine "as is" market value for the Spanish Inn property located at 600-690 North Indian Canyon Drive for$5,500. A436C. Executive Director stated that the property needs to be turned around; that the property needs to be remodeled and if the current owner could do so that would be fine, but in order to take the next step of the abatement process the recommendation does need approval. Agency Member Reller-Spurgin stated that the best alternative is rehabilitation not demolition. Agency member Oden concurred with Agency Member Reller-Spurgin and added there have been numerous complaints from the Community regarding the blighted condition. Redevelopment Director stated that the property has been vacant for years; that there have been nuisance problems that the property has attracted; that recently some of the nuisances have been abated; that the plans for rehabilitation have been worked on for the past month to correct problems, but that the property remains blighted. Agency Member Oden questioned how long the property has been blighted. Director of Planning & Building stated that this property has been a repeated Code violator for may years; that City funds have been spent to secure the property; that time has been allowed to get the property rehabilitated; that the legal process of demolition has been started and that last week an application for rehabilitation was submitted to the Department of Planning & Building by the property owner. Agency Counsel stated there is no question that the property is blighted; that the property is not useful and the potential level of deterioration is significant; that it is beyond the property owners resources to correct, or enough time to do the corrections; that the findings of blight, however are a side issue; that this issue is to explore the process for the Agency to acquire the property and to find a developer to rehabilitate the property; that in order for the Agency to proceed an appraisal needs to be done and that is the recommendation for approval. Resolution 1159 as recommended was presented; after which, it was moved by Reller-Spurgin, seconded by Mills and unanimously carried, that R1159 be adopted. E. NEIGHBORHOOD REVITALIZATION PROGRAM Recommendation: That the Agency approve Amendment #2 to A400C with R.M. Dennis to perform as construction superintendent of the Neighborhood Revitalization Program for$38,000. Total contract $163,000. Executive Director reviewed the staff report. Agency Member requested a report addressing the number of applicants that have dropped the program, the reason why, and recommend any possible modifications to the program. Executive Director stated a report would be given to the Agency. Resolution 1160 as recommended was presented; after which, it was moved by Reller-Spurgin, seconded by Oden and unanimously carried, that R1160 be adopted. F. PLAZA THEATER SIGNAGE LEASE PLAZA THEATER LEASE AMENDMENT #2 That the Agency approve a lease agreement with John Wessman, Trustee of the Wessman Family Trust for three Plaza Theater signs located in the Courtyard and approve Amendment #2 to A270C with the Partnership of the Performing Arts to sublease the area for signage. A437C. Assistant City Manager reviewed the staff report and the location of the three signs. Resolution 1161 as recommended was presented; after which, it was moved by Reller-Spurgin, seconded by Oden and unanimously carried, that R1161 be adopted. ADJOURNMENT There being no further business Chairman declared the meeting adjourned. PATRICIA A. SANDERS Assistant Secretary