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HomeMy WebLinkAboutRes OB-150 (2)RESOLUTION NO. OB -150 A RESOLUTION OF THE OVERSIGHT BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY, RECEIVING AND FILING MINUTES OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETINGS OF JULY 14 AND JULY 28, 2016 RECITALS: A. Pursuant to Health and Safety Code Section 34179(3), all actions taken by the Oversight Board of the Successor Agency to the Palm Desert Redevelopment Agency (the "Oversight Board") shall be adopted by resolution. B. There has been presented to this Oversight Board for approval, receiving and filing of Minutes of the Successor Agency to the Palm Desert Redevelopment Agency Meetings of July 14 and July 28, 2016. NOW, THEREFORE, THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS: Section 1. The above recitals are true and correct and are a substantive part of this Resolution. Section 2. The Oversight Board hereby approves receiving and filing Minutes of the Successor Agency to the Palm Desert Redevelopment Agency Meetings of July 14 and July 28, 2016, which are made a part hereof and attached hereto as "Exhibit 'A'." Section 3. The staff of the Successor Agency is hereby directed to provide the State Department of Finance ("DOF") written notice and information regarding the action taken by the Oversight Board in Section 2 of this Resolution. Such notice and information shall be provided by electronic means and in a manner of DOF's choosing. Section 4. The officers of the Oversight Board and staff of the Successor Agency are hereby authorized and directed, jointly and severally, to do any and all things that they may deem necessary or advisable to effectuate this Resolution. PASSED, APPROVED, AND ADOPTED this day of , 2016. AYES: NOES: ABSENT: ABSTAIN: ATTEST: RACHELLE D. KLASSEN, SECRETARY OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY ROBERT A. SPIEGEL, CHAIR (5 -c ELknaxr cn RAJLAE CPI - BY OVERSIGHT BOARD ON VERIFIED BY Original on file with City Clerk's 0ffice RESOLUTION NO. OB - 150 EXHIBIT A SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING MINUTES July 14, 2016 July 28, 2016 2 RESOLUTION NO. OB-150 MINUTES REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY THURSDAY, JULY 14, 2016 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. * Please refer to the agenda and minutes of the Special City Council Meeting of Thursday, July 14, 2016, convening at 2:00 p.m. in order to conduct an expanded Closed Session. The Special Meeting was adjourned at 3:43 p.m. and the Regular Meeting was immediately convened at 4:00 p.m. II. ROLL CALL Present: Vice Chair Jan C. Harnik Director Sabby Jonathan Director Van G. Tanner Director Susan Marie Weber Chair Robert A. Spiegel Also Present: Justin McCarthy, Interim Executive Director Robert W. Hargreaves, City Attorney Rudy P. Acosta, Assistant City Manager Rachelle D. Klassen, Secretary Russell Grance, Director of Building & Safety Janet M. Moore, Director of Finance & Housing/City Treasurer Lori Carney, Director of Human Resources Frankie Riddle, Director of Special Programs Mark Greenwood, Director of Public Works Frankie Riddle, Director of Special Programs Stephen Y. Aryan, Risk Manager DanTalbot, Division Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Grace L. Mendoza, Deputy City Clerk RESOLUTION NO. OB-150 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING III. ADJOURN TO CLOSED SESSION Request for Closed Session: None IV. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. None V. AWARDS, PRESENTATIONS, AND APPOINTMENTS None VI. CONSENT CALENDAR J U LY 14, 2016 A. MINUTES of the June 30, 2016, Adjourned Regular Meeting of the Board of Directors of the Successor Agency to the Palm Desert Redevelopment Agency. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST SUCCESSOR AGENCY TREASURY - Warrants Dated 6/24/2016 and 6/30/2016. Rec: Approve as presented. C. COMPLIANCE ANALYSIS AND INVESTMENT REPORTS for May 2016 (Joint Consideration with the Palm Desert City Council). Rec: Receive and file. Upon a motion by Tanner, second by Weber, and 5-0 vote of the Board of Directors of the Successor Agency (AYES: Harnik, Jonathan, Tanner, Weber, and Spiegel: NOES: None), the Consent Calendar was approved as presented. VII. CONSENT ITEMS HELD OVER None VIII. RESOLUTIONS None 2 RESOLUTION NO. OB-150 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING JULY 14, 2016 IX. NEW BUSINESS None X. CONTINUED BUSINESS None XI. OLD BUSINESS None XII. PUBLIC HEARINGS None XIII. REPORTS, REMARKS, SUCCESSOR AGENCY BOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR None B. SUCCESSOR AGENCY COUNSEL None C. CHAIR AND MEMBERS OF THE SUCCESSOR AGENCY None XIV. ADJOURNMENT With Successor Agency Board concurrence, Chair Spiegel adjourned the meeting at 5:10 p.m. ATTEST: RAG iELLE KLASSEN, SEC ETARY SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY /?0 ROBERT A. SPI' GEL ( HAIR 3 RESOLUTION NO. OB - 150 [THIS PAGE LEFT INTENTIONALLY BLANK.] RESOLUTION NO. OB-150 MINUTES REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY THURSDAY, JULY 28, 2016 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Chair Spiegel convened the meeting at 3:00 p.m. II. ROLL CALL Present: Vice Chair Jan C. Harnik Director Sabby Jonathan Director Van G. Tanner Director Susan Marie Weber Chair Robert A. Spiegel Also Present: Justin McCarthy, Interim Executive Director Robert W. Hargreaves, City Attorney Rudy P. Acosta, Assistant City Manager Rachelle D. Klassen, Secretary Russell Grance, Director of Building & Safety Ryan Stendell, Director of Community Development Martin Alvarez, Director of Economic Development J. Luis Espinoza, Assistant Finance Director Lori Carney, Director of Human Resources Mark Greenwood, Director of Public Works Frankie Riddle, Director of Special Programs John Cortez, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Dan Talbot, Division Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Anthony Baur, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Department Grace L. Mendoza, Deputy City Clerk III. ADJOURN TO CLOSED SESSION Request for Closed Session: RESOLUTION NO. OB-150 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING J U LY 28, 2016 A. Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: 128-Acre Site, Located South of Gerald Ford Drive and East of Portola Avenue (APNs 694-300-001, -002, -005, -014, -015 / 694-310-002, -003, -006) Negotiating Parties: Agency: Justin McCarthy/Rudy P. Acosta/Martin Alvarez/ Successor Agency to the Palm Desert Redevelopment Agency Property Owner: Successor Agency to the Palm Desert Redevelopment Agency Under Negotiation: x Price x Terms of Payment With Successor Agency Board concurrence, Chair Spiegel adjourned the meeting to Closed Session of the City Council and Successor Agency at 3:03 p.m. He reconvened the meeting at 4:00 p.m. IV. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. None V. AWARDS, PRESENTATIONS, AND APPOINTMENTS None VI. CONSENT CALENDAR A. MINUTES of the July 14, 2016, Regular Meeting of the Board of Directors of the Successor Agency to the Palm Desert Redevelopment Agency. Upon a motion by Tanner, second by Weber, and 5-0 vote of the Board of Directors of the Successor Agency (AYES: Harnik, Jonathan, Tanner, Weber, and Spiegel: NOES: None), the Consent Calendar was approved as presented. VII. CONSENT ITEMS HELD OVER None 2 RESOLUTION NO. OB-150 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING VIII. RESOLUTIONS None IX. NEW BUSINESS JULY 28, 2016 A. REQUEST FOR AUTHORIZATION, TO ENTER INTO AN EXCLUSIVE NEGOTIATION AGREEMENT (ENA) AND NEGOTIATE A PURCHASE AND SALE AGREEMENT (PSA) WITH LEWIS LAND DEVELOPERS, LLC, TO SELL THE SUCCESSOR AGENCY -OWNED PROPERTY KNOWN AS THE 128-ACRE SITE LOCATED GENERALLY SOUTH OF GERALD FORD DRIVE AND WEST OF PORTOLA AVENUE. Mr. Alvarez provided a brief synopsis of where staff is with the 128-acre site owned by the Successor Agency. The property is located south of Gerald Ford Drive and west of Portola Avenue, which consist of 128.9 acres. It has been designated in the Long Range Property Management Plan (LRPMP) to be disposed through a disposition process with the taxing entities receiving the proceeds of the sale. The staff report outlines the history and steps taken to move the disposition of this property forward. In the summer of 2015, staff started out with a Request for Qualifications and Proposals (RFQ/P) and sought to bring in a developer that would be able to acquire the site, entitle it, and master plans it, which was a big component for this large piece of property. Staff went through a process to seek the qualifications and proposals and received seven responses through an evaluation process that was identified in the criteria that was outlined in the RFQ/P. Staff put together a team of staff members from Public Works, Planning, Economic Development, and the consultant who is currently working on the City's General Plan. After the evaluation of the proposals, staff ranked them and selected four potential developers. In the end, there were only three, because one respectfully declined to move forward. The three remaining developers were interviewed and given an opportunity to provide a presentation based on land use, circulation, qualifications, and integration of affordable housing, which is a large component of this property that requires 10 acres to be set aside for future affordable housing. At the conclusion of the evaluation process, Lewis Operating Corp was selected; the company is well qualified and they had large master plans in other parts of California. After that process was secured, staff moved forward into negotiating an Exclusive Negotiation Agreement (ENA). During that process, which started in the fall of 2015 and led into the spring of this year, they started negotiations on how to best address the affordable housing requirements. The City's General Plan has a requirement that 10 acres is designed for affordable housing, and it's identified in the north western part of this property, which is adjacent to the Sheriff's Station. At that point, staff wanted to include a requirement that they actually build a portion of the units as part of the master plan. Staff is also negotiating a Housing Mitigation Fee that will then be applicable 3 RESOLUTION NO. OB-150 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING J U LY 28, 2016 for future development of the units. After evaluating the requirements and meeting with the developer numerous times, staff found there is a significant gap in trying to finance that affordable housing component. Staff explored other strategies, tax credits, etc., that could potentially offset the gap. However, this particular property does not qualify for any high ranking tax credit due to lack of nearby amenities such as parks, schools, transportation, and jobs. Staff evaluated the price and market value and determined that the City's affordable housing requirement would devalue the property from $13 million to roughly $6- or 7 million, so staff hit the reset button. The team along with input from the City Manager, decided to remove the housing requirement of construction on the onset, but still require the developer to set a master plan of the entire community with the ten acres of affordable housing, and just making it a straightforward land transaction at fair market value of $13,085,000. This is the value that has been established and will be included in the Purchase and Sale Agreement before the Council today. Staff recommended approval of the proposed Exclusive Negotiation Agreement, which is a five -month process, but the majority of the work has been done as the site has already been appraised. Once this approval is in place, the developer will have a due diligence period by which they can inspect the site and review any issues. During that five -month window, staff will go to the Oversight Board and Department of Finance (DOF) to secure their final approvals of the disposition at fair market value. Chair Spiegel stated that on projects this large where there are so many people on the committee, he asked if it would be appropriate to have Council representation as well. Mr. Alvarez answered yes if that was the desire of the Council Chair Spiegel said going forward he would like to see that happen with any large projects coming up. Mr. Alvarez replied there will be an opportunity for a Councilmember to be on the team with potential future developments, such as with the 178-acre site, which is also controlled by the Successor Agency. Director Tanner asked when did staff anticipate a master plan from Lewis Operating Corp for this property. Mr. Alvarez explained that if the proposed ENA is approved, the next step is to go to the Oversight Board on August 1, then submit it to the DOF, which is about a 30-day process. At that time, Lewis Operating Corp can start preparing their master plan and prepare to do a submittal for the entitlement process. Director Tanner asked if the master plan was conditional on the approval of the ENA. 4 RESOLUTION NO. OB-150 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING JULY 28, 2016 Mr. Alvarez responded that the developer made it conditional in order to secure an answer, in that they would have control of the property so that they can make a deposit and move forward with their plans. Director Jonathan praised Mr. Alvarez for doing a great job on this big project, stating it was a meaningful one to the community. He said the City has a vision for this property that will move the Strategic Plan forward, but he wondered if Council will know what the project will look like prior to Lewis Operating Corp buying or controlling the property. Mr. Alvarez answered yes, stating the ENA provides the City to do its disclosures, and once it's passed the ENA, the developer can move forward with the property acquisition, the deposit, and finalize the purchase agreement, which then gets entered into escrow. The developer then has a window to go through the Planning Department and entitlement process. He said the Council will have an opportunity to weigh in on design, circulation, etc., before the close of escrow. Director Tanner moved to, by Minute Motion, authorize Executive Director to: 1) Execute an ENA with Lewis Land Developers, LLC, to negotiate sale of the Successor Agency -owned property known as the 128-acre Property (APN 694-300-001, -002, -005, -014, -015 / 694-310-002, -003, 006) located south of Gerald Ford Drive and west of Portola Avenue (Contract No. SA35570); 2) make non -substantive changes and execute a PSA with Lewis Land Developers, LLC, at fair market value for sale of the Successor Agency -owned property known as the 128-acre Property (APN 694-300-001, -002, -005, -014, -015 / 694-310-002, -003, -006) after approval has been received from the Oversight Board and State Department of Finance (Contract No. SA35570A). Motion was seconded by Jonathan and carried by a 5-0 vote (AYES: Harnik, Jonathan, Tanner, Weber, and Spiegel: NOES: None). X. CONTINUED BUSINESS None XI. OLD BUSINESS None XII. PUBLIC HEARINGS None XIII. REPORTS, REMARKS, SUCCESSOR AGENCY BOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR None 5 RESOLUTION NO. OB-150 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING B. SUCCESSOR AGENCY COUNSEL None C. CHAIR AND MEMBERS OF THE SUCCESSOR AGENCY None XIV. ADJOURNMENT JULY 28, 2016 With Successor Agency Board concurrence, Chair Spiegel adjourned the meeting at 5:37p.m. ATTEST: c/A .Gtra- Aifi,A-ezi) ` ROBERT A. SPIECL, 417Ktf HE LE D. KLASSEN, CR TARYTh SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY 6