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Home My WebLink About0625 MINUTES ADJOURNED JOINT MEETING OF THE PALM DESERT CITY COUNCIL AND THE PALM DESERT PLANNING COMMISSION THURSDAY, JUNE 25 , 1992 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * I. CALL TO ORDER Mayor Kelly convened the City Council meeting at 3:00 p.m. Chairman Whitlock convened the Planning Commission meeting at 3:00 p.m. �► II. ROLL CALL Councilmembers Present: Mayor Pro-Tempore Jean M. Benson Councilman Buford A. Crites Councilman Walter H. Snyder Councilman S. Roy Wilson Mayor Richard S. Kelly Planning, Commissioners Present: Commissioner Robert Downs Commissioner Sabby Jonathan Vice Chairman James Richards Commissioner Robert Spiegel Chairperson Carol Whitlock Also Present: Bruce A. Altman, City Manager David J. Erwin, City Attorney Sheila R. Gilligan, City Clerk/Public Information Officer Ramon A. Diaz, ACM/Director of Community Development/Planning ,�, Phil Drell, Senior Planner MINUTES ADJOURNED JOINT MEETING OF THE PALM DESERT CITY COUNCIL AND THE PALM DESERT PLANNING COMMISSION JUNE 25, 1992 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * No IH. PUBLIC HEARINGS A. REQUEST FOR CONSIDERATION OF A DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE CITY OF PALM DESERT (CITY) AND WILLIAMS DEVELOPMENT CORPORATION (DEVELOPER) CONCERNING THE SALE BY THE CITY OF THREE ACRES TO THE DEVELOPER FOR THE PURPOSE OF FACILITATING THE CONSTRUCTION OF A PREVIOUSLY APPROVED AFFORDABLE 72-UNIT SENIOR HOUSING APARTMENT PROJECT (PP/CUP 89-18) LOCATED ON THE NORTH SIDE OF CATALINA WAY WEST OF THE JOSLYN COVE SENIOR CENTER, 73-600 CATALINA WAY (WILLIAMS DEVELOPMENT CORPORATION, APPLICANT). Mr. Drell reviewed the staff report, noting that the plans were substantially the same as the conditional use permit originally approved. He said the previous developer, Cable and Rylee, had not been able to obtain financing for this project, and one of the considerations in choosing the new developer was the fact that Williams Development Corporation had demonstrated the ability to finance large residential projects. He said the basic terms of the development agreement were modeled after the recently approved Sterling agreement for another project. He noted that this was land owned by the City and purchased with developer rr fees several years ago. He said conveyance of the land was contingent on the developer finishing working drawings and was concurrent with the funding of the construction loan. He said the project could be completed by March. The main time constraint was the Housing Authority permit financing, which would eventually purchase the project, must be spent by June of 1993 or those bonds must be redeemed, thus the reason for this adjourned meeting. He added that the City would have ownership of the plans with this agreement and would be able to find a new developer if for some reason Williams Development is unable to perform. Upon question by Chairman Whitlock as to why staff is modeling the Williams Development agreement after the Sterling Properties agreement instead of the one for Cable and Rylee, Mr. Drell responded that the Cable and Rylee agreement had been done three or four years ago and had some large holes in it in terms of our ability to enforce quick performance. It also did not confer on the City ownership of the plans. The Sterling agreement was a similar deal, with conveyance of land to do a project to ultimately be sold to the Housing Authority. He said staff worked very hard on the agreement with the Redevelopment Attorney to provide the greatest degree of protection and assurance that the project is built and to give us the ability to quickly find someone to build it if the developer is unable to perform. 2 MINUTES ADJOURNED JOINT MEETING OF THE PALM DESERT CITY COUNCIL AND THE PALM DESERT PLANNING COMMISSION JUNE 25, 1992 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * r.. Upon question by Commissioner Jonathan, Mr. Drell responded that the bonds mentioned were Housing Authority bonds. He said the developer had an agreement with the Housing Authority to purchase the project once it is completed, and it will become part of our subsidy program. He added that the purchase with the Housing Authority only covers the construction costs; the developer is not getting paid for the land. Commissioner Spiegel asked whether any other developers had shown an interest in developing this project. Mr. Drell responded that four developers had submitted proposals; the Williams proposal was the lowest price and the best design. He added that the price on this design was lower than the original Cable and Rylee project. He noted that one other developer had expressed a general interest in the past was inadvertently not informed of this project but that staff was making sure he would included in notification of any future projects. Councilman Snyder asked what the cost of the land was and whether this project would be part of our contribution to low-cost housing and if this was something we should be getting returned to us so we can go out and do other things like this. Mr. Drell said this will be a substantial portion of our subsidy for this housing. As a result, our monthly subsidy payments to the tenants will be substantially lower than they would normally have been if the land was included; therefore, we will have additional subsidies to pay for other units. Mayor Kelly declared the public hearing open and invited testimony in FAVOR of or OPPOSED to this project. Mr. Erwin noted that the Planning Commission public hearing was also Dpen. MRS. BETTY WILLIAMS, Williams Development Corporation, offered to answer any questions. With no further testimony offered, Mayor Kelly declared the public hearing closed. Mr. Erwin noted that the Planning Commission public hearing was also closed and that it should take action first and make a recommendation to Council if it chose to do so. Commissioner Richards stated he felt one of the greatest, darkest secrets in this community was the Housing Authority money -- who is it, where is it, where is it coming from, and when can we or can't we do something. He said he did not like to see a deal where we have to have a special hearing or we will lose money. He said probably the biggest secret he knew of in this City was how much money we owe, who we owe it to, when are certain things supposed to be done, what are certain things that we have to do, etc. He added that he hoped 3 .r MINUTES ADJOURNED JOINT MEETING OF THE PALM DESERT CITY COUNCIL AND THE PALM DESERT PLANNING COMMISSION JUNE 25, 1992 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * this was not something that would happen on a continual basis. He asked if staff could prepare some type of report on this. Councilman Wilson said he understood this as direction to staff to prepare a report to the Planning Commission and City Council spelling all of this out. He said we had talked about it a lot, but a report would be good to have in hand. Upon question by Commissioner Jonathan as to whether the City Attorney had reviewed the agreement, Mr. Erwin responded that his office had prepared the agreement. Commissioner Jonathan stated he was a little uncomfortable voting on this matter at this time because he had not had a chance to read the agreement. Commissioner Downs responded that all the Commission was doing was setting down a time frame. He added that part of the language was also to specify that if the developer does not come through, the City can go ahead with another developer to build the project. Commissioner Downs moved to adopt the findings. Motion was seconded by Commissioner Spiegel and carried by unanimous vote. �I+ Commissioner Downs moved to adopt Planning Commission Resolution No. 1576, recommending to the City Council approval of the Disposition and Development Agreement. Motion was seconded by Commissioner Spiegel and carried by unanimous vote. Councilman Crites moved to: 1) Waive further reading and adopt Ordinance No. 686, approving the Disposition and Development Agreement Exhibit "A", 2) waive further reading and pass Ordinance No. 687 to second reading, approving the Disposition and Development Agreement Exhibit "A". Motion was seconded by Wilson and carried by unanimous vote. IV. ORAL COMMUNICATIONS None 4 rr MINUTES ADJOURNED JOINT MEETING OF THE PALM DESERT CITY COUNCIL AND THE PALM DESERT PLANNING COMMISSION JUNE 25, 1992 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * V. ADJOURNMENT Upon motion by Downs, second by Spiegel, and unanimous vote of the Planning Commission, Chairperson Whitlock adjourned the Planning Commission meeting at 3:30 p.m. Upon motion by Crites, second by Benson, and unanimous vote of the City Council, Mayor Kelly adjourned the Council meeting at 3:30 p.m. ch CAROL WHITLOCK, CHAIRPERSON ATTEST: RAMON A. DIAZ, SECRETARY TO 4E r... PALM DESERT PLANNING COMMIS ION Rt'HARD' S. KIffLLY, MAYOR ATTEST: n SHEILA R. GILLI N, CITY CL CITY OF PALM DESERT, CXL&ORNIA 5