HomeMy WebLinkAboutAmendment to DDA T.Bartlett Portola x Hwy 111 INTEROFFICE MEMORANDUM
PALM DESERT REDEVELOPMENT AGENCY
DATE: AUGUST 26, 1999
TO: EXECUTIVE DIRECTOR. HONORABLE CHAIRMAN AND MEMBERS OF
THE REDEVELOPMENT AGENCY
FROM: DENNIS M. COLEMAN, REDEVELOPMENT FINANCE MANAGER
SUBJECT: AMENDMENT OF THE BARTLETT DISPOSITION AND DEVELOPMENT
AGREEMENT (DDA) AND GRANT DEED
Recommendation:
That the Agency Board, by minute motion, authorizes the Chairman, or his designee, to
execute changes to the Bartlett Disposition and Development Agreement (DDA) and Grant
Deed for the property purchased on the southeast corner of Highway 111 and Portola.
Background:
On January 14, 1999, the Agency Board approved the sale of property, and a DDA to Mr.
Timothy Bartlett for the property at the southeast corner of Highway 111 and Portola. On
June 26, 1999, the sale of such property was completed and Mr. Bartlett now owns the
property.
One of the conditions of the sale of this property was that its development and uses are
restricted to retail golf and/or sporting good sales and other ancillary uses. The executed
DDA and Grant Deed both contained this language in Section 5.1.1 (Primary Use) of the
DDA and Section 3 of the Grant Deed. These sections also contain language that gives
the Agency the right to approve any other uses other than retail golf and sporting goods.
Mr. Bartlett has informed the Agency (correspondence attached) that such language
interferes with his ability to secure construction financing. Mr. Bartlett met with members
of Staff and asked for a change in this language that would both retain City/Agency control
of the land use and allow Mr. Bartlett to secure construction financing. The following
language is being proposed to accomplish this:
"Retail commercial uses having a required parking ratio of one stall per two
hundred fifty square feet of gross floor area, or less, shall be permitted to
replace any vacated use. The City of Palm Desert shall have the right to
review all new tenants to determine compliance with this section. The City
of Palm Desert may, at its sole discretion, prohibit amusement and theater
establishments, gas or service stations, grocery stores, hospitals, hotels,
industrial uses, liquor stores, mortuary, offices, outdoor sales, public utility
installations, personal services, residential uses, restaurants, and wholesale
assembly, production and storage businesses."
Staff feels that this language would give the City/Agency sufficient control of any changes
in land uses, and Mr. Bartlett feels that this will allow him to secure construction financing.
Staff believes that this change will facilitate the developer's ability to complete this project
that the City/Agency desires on this property. Staff is therefor recommending that the
Agency Board approve the stated language and have the Chairman or his designee
execute the changes in both the DDA and the Grant Deed.
REVIEWED AND CONCUR:
Dennis M. Coleman &((-
'
Redevelopment Finance Manager Executive Director
DMC:mh
Attachment (as noted)
Developer: 1 t u- o -
Tim Bartlett BY RDA
73-382 Salt Cedar St.
Palm Desert, CA 92260 ON
VERIFIED BY
Original on file with City CI 's Office
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COMMERCIAL BROKERAGE
REAL ESTATE DEVELOPMENT
ASSET AND CAPITAL MANAGEMENT O
BARTLETT
COMMERCIAL
July 15, 1999
Carlos L. Ortega, Executive Director
Palm Desert Redevelopment Agency
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
Re: SEC Portola & Highway 111
Dear Mr. Ortega:
I have just discovered that the restrictions placed in the Grant Deed (Page 3, Section 3) and the
DDA (Page 20, Item 5.1.1) regarding the use specifically "Grantee ... shall use the
improvements only for retail golf and/or sporting goods sales and any other uses expressly
permitted by the Grantor" prohibits me from securing financing. Although I have a ten year
lease with Nevada Bob's Golf & Tennis there is no absolute assurance that they will remain as
a tenant for ten years let alone thirty years. Since there are only four major golf & tennis
retailers in the entire Valley this restriction significantly limits the potential to release the
property and certainly impacts lease rate negotiations, since this restriction is made public. I
simply can not gain financing to build the Project with this restriction.
I have conferred with Phil Drell to determine which language would be appropriate to insure that
the City has the control it desires while allowing me the opportunity to develop the Project.
Please consider replacing the language underlined above in both the Grant Deed and the DDA
with the following:
"retail commercial uses having a required parking ratio of one stall per two hundred fifty square
feet of gross floor area, or less, shall be permitted to replace any vacated use. The City of Palm
Desert shall have the right to review all new tenant's to determine compliance with this section.
The City of Palm Desert may, at its sole discretion, prohibit amusement and theater
establishments, gas or service stations, grocery stores, hospitals, hotels, industrial uses, liquor
stores, mortuary, offices, outdoor sales public utility installations, personal services, residential
uses, restaurants, and wholesale assembly, production and storage businesses."
Thank you for your attention to this matter, I anxiously await your response.
Sincerely,
Bartlett Commercial
a California corporation
By: Timothy 'Bartlett, President
73-382 Salt Cedar Street, Palm Desert, CA 92260 PHONE: 760.776.4141 FAX: 760.779.0714