HomeMy WebLinkAboutVilla Portofino - 1st Amnd Park Dvlpmnt Fees AgmtSTAFF REPORT
CITY OF PALM DESERT
PUBLIC WORKS DEPARTMENT
MEETING DATE: December 13, 2018
PREPARED BY: Christina Canales, Engineering Assistant
REQUEST: Approve First Amendment to the Park Development Fees
Agreement for the Villa Portofino Project
Recommendation
By Minute Motion, approve the First Amendment to the Park Development
Fees Agreement.
Strategic Plan
This item is not addressed in the Strategic Plan, General Plan, or City Manager Work
Plan.
Background Analysis
On February 25, 1999, the City Council approved Ordinance No. 907 for a Senior Housing
Development Agreement, a General Plan Amendment, a Change of Zone, and Precise
Plan 98-21, for a Health and Wellness Resort known as Villa Portofino. The project
consisted of: a 161-bed skilled nursing facility; a 150-bed assisted living facility; 288 villa
units; and 182 casita units.
On October 11, 2012, the City Council approved a modification to this approval. The Park
Development Fees Agreement was submitted and approved as part of this modification.
This agreement outlined the amount of Park Fees each developer would be obligated to
pay for their lot. The Park Fee was waived for Lot 3 because it was designated as skilled
nursing.
On July 17, 2018, the Planning Commission approved Resolution No. 2725 allowing the
applicant to modify the original entitlements for Lot 3 from a 161-unit skilled nursing facility
to a 161-unit active adult community. All other development standards including building
height, setbacks, and parking will remain as originally entitled. The change in use from
skilled nursing to active adult triggered an amendment to the Park Development Fees
Agreement. This agreement has been amended to require that Avenida Partners, LLC
pay Park Fees in the amount of $143,396.19.
December 13, 2018 — Staff Report
Approve the First Amendment to the Park Development Fees Agreement
Page 2 of 2
Fiscal Analysis
This action will provide $143,396.19 in park fees for the City.
LEGAL REVIEW DEPT. REVIEW
wt-
Robert W. Hargreaves Tom Garcia, P.E.
City Attorney Director of Public Works
APPLICANT:
ATTACHMENTS:
FINANCIAL
REVIEW
Director of Finance
Avenida Partners Development Group
130 Newport Center Drive, Ste. 220
Newport Beach, CA 92660
Agreement
Vicinity Map
CITY MANAGER
Lauri Aylaian
City Manager
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260
Attn: City Clerk
SPACE ABOVE THIS LINE FOR RECORDER'S USE
No Recording Fee Pursuant to Gov. Code § 27383
FIRST AMENDMENT TO PARK DEVELOPMENT FEES AGREEMENT
FOR THE VILLA PORTOFINO PROJECT
This First Amendment to the Park Development Fees Agreement ("First Amendment") is
entered into and effective on the date it is recorded with the Riverside County Recorder
("Effective Date") by and between (i) the CITY OF PALM DESERT, a California charter city
("City"), and Avenida Partners Development Group, LLC, a Delaware limited liability company
("Avenida Partners Development Group"). Avenida Partners Development Group is sometimes
individually referred to as "Owner" herein. Owner and City are sometimes hereinafter
collectively referred to as "Parties" and individually as "Party."
RECITALS
A. On June 19, 2013, the City of Palm Desert and various Owners entered into a Park
Development Fees Agreement ("Original Agreement") for the Villa Portofino Project.
B. Owner is the successor in interest to one of the Parties to the Original Agreement and
owns that certain real property located in the City of Palm Desert, California, which is more fully
depicted in Exhibit "A" attached hereto and incorporated herein by reference (the "Property").
C. To fulfill its Quimby Act requirements for its portion of the Villa Portofino Project, as
specified in this First Amendment, Owner desires, and City agrees, to amend the Original
Agreement as follows. This First Amendment shall only apply to Owner, and all other terms of
the Original Agreement shall remain the same.
NOW, THEREFORE, in consideration of the foregoing recitals and the mutual
covenants contained in this First Amendment, the Parties agree to amend the Original Agreement
as follows:
1. Payment.
(a) Subsequent to January 1, 2016, the QAF per unit shall be recalculated
based on the formula provided in Palm Desert Municipal Code section 26.48.060.
(b) If the use is changed in any of the Lots, the QAF shall be recalculated to
reflect the appropriate QAF for the new use; provided, however, that if only the
dwelling unit count is modified for a given Lot the QAF for each dwelling unit on
such Lot following such modification shall be determined by multiplying the
amount of the QAF for a dwelling unit on such Lot immediately prior to such
modification by a fraction where the numerator is the prior dwelling unit count for
such Lot and the denominator is the revised dwelling unit count for such Lot.
(c) The Project will include one hundred sixty-one (161) independent living
units. Although the Original Agreement provides that skilled nursing units on Lot
3 are not subject to the QAF obligation, the 161 independent living units proposed
for Lot 3 are subject to the QAF. Based on the current calculation and unit count,
the total amount of QAF owed for the 161 independent living units on Lot 3 in the
Project is $143,396.19 in accordance with the current Palm Desert Municipal
Code section 26.48.060. The QAF shall be due and payable on a per unit basis
prior to issuance of a grading permit.
2. Recordation of First Amendment. This First Amendment and any amendment or
cancellation thereof shall be recorded with the Riverside County Recorder within the period
required by Government Code Section 65868.5.
3. Amendments. Except as specifically amended in the this First Amendment, all
other terms of the Original Agreement remain the same
4. Notices. Any notice required or permitted to be given hereunder to either party
shall be in writing and shall be given by personal delivery, by depositing such notice in the
United States Mail, certified, with return receipt requested and postage pre -paid, addressed to the
Parties at the addresses specified in this Section, by express delivery or by facsimile
transmission. Either party may, by notice to the other party, specify a different address for notice
purposes. If any notice or other document is given by personal delivery, it shall be deemed
effectively served or delivered upon actual delivery. If any notice or other document is sent by
certified mail, the same shall be deemed effectively served or delivered there (3) business days
following the deposit of such notice in the United States mail in the manner set forth above. If
any notice or other document is sent by express delivery, it shall be deemed effectively served or
delivered upon receipt, as documented by the records of the express delivery company. If any
notice or other document is sent by facsimile transmission, it shall be deemed effectively served
or delivered as of the date and time indicated on the facsimile confirmation sheet, so long as the
sending party follows such delivery by a hard copy sent via any of the other three methods. The
addresses for notice are as follows:
If to City:
THE CITY OF PALM DESERT
Palm Desert Civic Center
73-510 Fred Waring Drive
Palm Desert, CA 92260
Attn: City Manager
Telephone: (760) 346-0611
2
Facsimile: (760) 340-0574
With Copy to:
BEST BEST & KRIEGER LLP
74-760 Highway 111, Suite 200
Indian Wells, CA 92210
Attn: Robert Hargreaves, Esq.
Telephone: (760) 568-2611
Facsimile: (760) 340-6698
AVENIDA PARTNERS DEVELOPMENT GROUP, LLC
130 Newport Center Drive, Suite 220
Newport Beach, CA 92660
Attn: Peter Belcher
Telephone: (949) 386-7302
(Signatures follow on next page)
SIGNATURE PAGE OF CITY TO
PARK DEVELOPMENT FEE AGREEMENT FOR THE VILLA PORTOFINO PROJECT
ATTEST:
By:
Rachelle D. Klassen, City Clerk
APPROVED AS L GAL FORM:
LLP
4
CITY:
CITY OF PALM DESERT
a California charter city
By:
Its:
SIGNATURE PAGE OF OWNER TO FIRST AMENDMENT TO
PARK DEVELOPMENT FEE AGREEMENT FOR THE VILLA PORTOFINO PROJECT
Avenida Part rs Devel oent Group, LLC
A Delawge ite lily Company
NaName:
am e.0
Title: .>irie f
72500.0079I131576496.1
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A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document
to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California
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ANNE MANSOUR
Commission # 2115355
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I certify under PENALTY OF PERJURY under the
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WITNESS my hand and official seal.
Signature
Signature o Notary Public
OPTIONAL
Completing this information can deter alteration of the document or
fraudulent reattachment of this form to an unintended document.
Description of Attached Document
Title or Type of Document:�-
Document Date:_______"
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Signer(s) Other Than Named Above:
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EXHIBIT "A"
MAP OF PROPERTY
[attached behind this cover page]
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— Circulation Network
City Boundary
— Streets
❑ Parcels (11/2018)
1 4,803
Notes
CITY OF PALM
DESERT