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HomeMy WebLinkAboutRes OB-171 (2)RESOLUTION NO. OB - 171 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 DECEMBER 14, 2017, JANUARY 11, JANUARY 25, FEBRUARY 8, AND FEBRUARY 22, 2018 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 December 14, 2017, January 11, January 25, February 8, and February 22, 2018. 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 December 14, 2017, January 11, January 25, February 8, and February 22, 2018, 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 , 2018. AYES: NOES: ABSENT: ABSTAIN: ATTEST: SUSAN MARIE WEBER, CHAIR ff II ('{'-D, Qj t o, J ov‘astf"an , t)Yt (San BY OVERSIGHT BOARD ABSENT) ON__�-�' - c`7 `a-,— q-stDt'R OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY Original on file with City Clerk's ce FIED B RACHELLE D. KLASSEN, SECRETARY VERI 1� RESOLUTION NO. OB - 171 EXHIBIT A SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING MINUTES December 14, 2017 January 11, 2018 January 25, 2018 February 8, 2018 February 22, 2018 2 RESOLUTION NO. OB-171 MINUTES REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY THURSDAY, DECEMBER 14, 2017 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Chair Harnik convened the meeting at 3:02 p.m. II. ROLL CALL Present: Vice Chair Sabby Jonathan Director Kathleen Kelly Director Gina Nestande Director Susan Marie Weber Chair Jan C. Harnik Also Present: Lauri Aylaian, Executive Director Robert W. Hargreaves, City Attorney Grace L. Rocha, Acting Secretary Lori Carney, Director of Administrative Services Russell Grance, Director of ;Building & Safety Ryan Stendell, Director of Community Development Martin Alvarez, Director of Economic Development Janet M. Moore, Director of Finance/City Treasurer Mark Greenwood, Director of Public Works Frankie Riddle, Director of Special Programs Stephen Y. Aryan, Risk Manager John Cortez, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Lt. Coby Webb, Asst. Chief, Palm Desert Police/Riverside Co. Sheriffs Dept. M. Gloria Sanchez, Acting Deputy City Clerk III. ADJOURN TO CLOSED SESSION Request for Closed Session: RESOLUTION NO. OB-171 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING A. Conference with Section 54956.8: 1) Property: Negotiating Agency: DECEMBER 14, 2017 Real Property Negotiator pursuant to Government Code Desert Willow Lot Pads - APNs 620-450-011, -018, -020, -021; 620-370-002, -004, -017, -018, -020, -033, -043; 620-400-008, -010, -025, -026 Parties: Lauri Aylaian/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 Harnik adjourned the meeting to Closed Session of the City Council, Successor Agency, and Housing Authority Board at 3:04 p.m. She reconvened the meeting at 4:02 p.m. IV. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. Mr. Hargreaves reported that direction was given, but no reportable action was taken. V. AWARDS, PRESENTATIONS, AND APPOINTMENTS None NOTE: Under Section VIII - Awards and Presentations of today's City Council Meeting, the annual Mayoral Rotation occurred, with Sabby Jonathan being appointed as Mayor for the City of Palm Desert and Susan Marie Weber as Mayor Pro Tem (Chair and Vice Chair of the Successor Agency, respectively). VI. CONSENT CALENDAR A. MINUTES of the November 9 and November 23, 2017, Regular Meetings and of the November 16, 2017, Adjourned Regular Meeting of the Board of Directors of the Successor Agency to the Palm Desert Redevelopment Agency. Rec: Approve as presented. 2 RESOLUTION NO. OB-171 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING DECEMBER 14, 2017 B. CLAIMS AND DEMANDS AGAINST SUCCESSOR AGENCY TREASURY - Warrants Dated 11/9/2017, 11/17/2017, and 12/1/2017. Rec: Approve as presented. C. REQUEST FOR APPROVAL of Amendment No. 2 to Contract with Richards, Watson & Gershon for Legal Services for the Successor Agency to the Palm Desert Redevelopment Agency, Palm Desert Housing Authority, and City of Palm Desert (Contract No. SA28881) (Joint Consideration with the Palm Desert City Council and the Palm Desert Housing Authority). Rec: By Minute Motion, approve Amendment No. 2 to subject contract with Richards, Watson & Gershon, Los Angeles, California, for the Successor Agency to the Palm Desert Redevelopment Agency, Palm Desert Housing Authority, and City of Palm Desert through June 30, 2018. Upon motion by Weber, second by Harnik, and 5-0 vote of the Board of Directors of the Successor Agency (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None), the Consent Calendar was approved as presented. VII. CONSENT ITEMS HELD OVER None VIII. RESOLUTIONS None IX. NEW BUSINESS None X. CONTINUED BUSINESS None Xl. OLD BUSINESS None y. XII. PUBLIC HEARINGS None 3 RESOLUTION NO. OB-171 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING DECEMBER 14, 2017 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 concurrence, Chair Jonathan adjourned the meeting at 10:03 p.m. ATTEST: SABBY _A eze-c., ieo-eALD GRACE L. ROCHA, ACTING SECRETARY SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY ONA HAN, CHAIR 4 RESOLUTION NO. OB-171 MINUTES REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY THURSDAY, JANUARY 11, 2018 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Chair Jonathan convened the meeting 3:04 p.m. II. ROLL CALL Present: Director Jan C. Harnik Director Kathleen Kelly Director Gina Nestande Vice Chair Susan Marie Weber Chair Sabby Jonathan Also Present: Lauri Aylaian, Executive Director Robert W. Hargreaves, City Attorney Rachelle D. Klassen, Secretary Lori Carney, Director of Administrative Services Russell Grance, Director of Building & Safety Ryan Stendell, Director of Community Development Martin Alvarez, Director of Economic Development Janet M. Moore, Director of Finance/City Treasurer Tim Jonasson, Interim Director of Public Works Frankie Riddle, Director of Special Programs Bo Chen, City Engineer Stephen Y. Aryan, Risk Manager Dan Talbot, Deputy Chief, County Fire Department/Cal Fire Jason Huskey, Chief, Palm Desert Police/Riverside Co. Sheriff's Department Lt. Matt Martello, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept. Grace L. Rocha, Deputy City Clerk RESOLUTION NO. OB-171 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING III. ADJOURN TO CLOSED SESSION Request for Closed Session: None JANUARY 11, 2018 With Successor Agency concurrence, Chair Jonathan adjourned the meeting to Closed Session of the City Council at 3:05 p.m. He reconvened the meeting at 4:01 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 December 14 and December 28, 2017, Regular Meetings 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 12/8/2017, 12/15/2017 - 2, and 12/22/2017. Rec: Approve as presented. C. REQUEST FOR AUTHORIZATION for Executive Director to Convey Lot 81 of Tract Map 19074-1 (APN 622-250-008) from the Successor Agency to the Palm Desert Redevelopment Agency to the City of Palm Desert (Joint Consideration with the Palm Desert City Council). Rec: 1) Waive further reading and adopt the following, approving conveyance of Lot 81 of Tract Map 19074-1 (APN 622-250-008) from the Successor Agency to the Palm Desert Redevelopment Agency to the City of Palm Desert by Quitclaim Deed via: a) Successor Agency Resolution No. SA -RDA 067; b) City Council Resolution No. 2018 - 01. 2 RESOLUTION NO. OB-171 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 11, 2018 2) By Minute Motion, authorize the Executive Director to execute the Quitclaim Deed on behalf of the Successor Agency and the Mayor to accept the conveyance by Quitclaim Deed on behalf of the City. Upon motion by Harnik, second by Weber, and 5-0 vote of the Board of Directors of the Successor Agency (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None), the Consent Calendar was approved as presented. VII. CONSENT ITEMS HELD OVER None VIII. RESOLUTIONS A. RESOLUTION NO. SA -RDA 068 - A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY, APPROVING PROPOSED ADMINISTRATIVE BUDGETS FOR THE SIX-MONTH FISCAL PERIODS FROM JULY 1, 2018, THROUGH DECEMBER 31, 2018, AND FROM JANUARY 1, 2019, THROUGH JUNE 30, 2019, AND TAKING CERTAIN RELATED ACTIONS. Senior Management Analyst Veronica Tapia stated the Successor Agency to the Palm Desert Redevelopment is required to request funding annually, and the Administrative Budget has a maximum of 3% of the prior year of the prior year Redevelopment Property Tax Trust Fund (RPTTF), and staff is requesting the maximum for the 2018-2019 year. This request will go before the Oversight Board on January 22, 2018. This will be the last Administrative Budget that goes to the Palm Desert Oversight Board. Vice Chair moved to waive further reading and adopt Resolution No. SA -RDA 068. Motion was seconded by Weber and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). B. RESOLUTION NO. SA -RDA 069 - A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY, APPROVING A RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS) FOR THE FISCAL PERIOD FROM JULY 1, 2018, THROUGH JUNE 30, 2019, PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177, AND TAKING CERTAIN RELATED ACTIONS. Senior Management Analyst Veronica Tapia reported the Successor Agency to the Palm Desert Redevelopment Agency is required to request approval of it's Recognized Obligation Payment Schedule (ROPS) for the next year. She said expenses are condensed now to long-term debt, the City loan, the CAFER, and other auxiliary expenses. The CAFER loan will almost be paid off with this next 3 RESOLUTION NO. OB-171 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 11, 2018 payment cycle, which means the City loan will begin to be paid in 2019-2020. This item will go before the Oversight Board on January 22, 2018, but before it goes to the Board, she will make a minor change to the report, in that she will list the City's loan, the principal amount only and add the accrued interest. It doesn't change the request, it's just an overall number adjustment. Director Harnik moved to waive further reading and adopt Resolution No. SA -RDA 069. Motion was seconded by Weber and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). IX. NEW BUSINESS None X. CONTINUED BUSINESS None XI. OLD BUSINESS None XII. PUBLIC HEARINGS A. REQUEST FOR APPROVAL OF LANDMARK DESIGNATION FOR 73697 SANTA ROSA WAY (APN 627-102-024) (THE MILES BATES HOUSE) AS A LOCAL HISTORIC LANDMARK, Case No. CRPC 17-01(Successor Agency to the Palm Desert Redevelopment Agency, Applicant) (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). Mayor Pro TemNice Chair Weber recused herself from this item, stating she was on the Board of the Historical Society of Palm Desert, and they have been working on this issue as well and left the Council Chamber. Mr. Grance stated the proposed Resolution is consideration for Historic Landmark Designation for the Miles C. Bates House located at 73697 Santa Rosa Way, which was designed by Walter S. White. Mr. White was an American modernist architect in industrial design who worked in the Coachella Valley in the 1950's. Walter S. White is considered by many to be Palm Desert's architect, having designed more than 65 structures here, many of which are still in existence. He is considered for his influence in early Palm Desert for his innovative roofing and window systems. Although Mr. White patented the innovative roof system that alternated the use of wooden dowels with complementary biconcave elements to achieve the unique wave shape, the Bates house is believed to be the only home 4 RESOLUTION NO. OB-171 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 11, 2018 in existence that used this system. Additionally, it appears that Mr. White considered the siting of the home in relation to the Santa Rosa Mountains in the distance, as the rolling roofline follows the profile of those southern mountains. It was important to note that the proposed landmark designation is for the Miles C. Bates residence only and not the apartments located in the rear. With the approval of the Landmark Designation, it comes with both benefits and restrictions. The benefits would be that the future owner would be eligible to participate in the Mills Act Program, which affords the owner some savings on property tax, and those savings are earmarked for the preservation efforts that are monitored on an annual basis. The restrictions are that any future owner would need to apply for a Certificate of Appropriateness if they anticipate any alterations or additions to the exterior of the building. In conclusion, he said the Miles C. Bates house is eligible for Landmark Designation by meeting the following criteria of the Palm Desert Municipal Code Section 29.40.010 C, D, and F. Subsection C embodies distinctive characteristics, or is one of the few remaining examples of style, type, period or method of construction or possesses high artistic value; subsection D represents the work of a master builder, designer or architect; and subsection F represents distinctive examples of community planning or significant development patterns, including those associated with different eras of settlement and growth, agriculture, or transportation. He offered to answer questions. Councilmember/Director Kelly asked if the Landmark Designation applied to the two rooms that were added to the main structure in 1973. Mr. Grance replied it would, because staff didn't want the exterior of the building altered in any way, but on the provision that if a future owner wishes to remove them, the City would support it wholeheartedly to gain restoration. Mayor/Chair Jonathan pointed out that the other consequence of the Landmark Designation is that it prohibits a future owner from demolishing the property. Mr. Grance agreed, but they could file to do so, however, they would have to remove the designation first. Removal of the designation would be a process that's outlined in the City's Ordinance, which requires going before the Historical Preservation Committee in a public hearing, and the Committee will make a recommendation that is forwarded to the City Council at another public hearing for its consideration. Mayor/Chair Jonathan noted staff forwarded an email to the City Council from Poppy Woody, who is the daughter of Walter S. White, the architect, in support of the Landmark Designation. Councilmember/Director Harnik asked about the next step if the Resolution is approved, because at Shadow Mountain it shows that it's a landmark. 5 RESOLUTION NO. OB-171 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 11, 2018 Mr. Grance replied the City will follow the same process as it has with the others, in that it would mount a plaque on the residence at a predetermined location selected by staff and Committee. Mayor/Chair Jonathan declared the public hearing open and invited public testimony FAVORING or OPPOSING the matter. MS. MERILEE COLTON, Secretary to the Board of the Historical Society of Palm Desert, urged the City Council to approve the proposed Resolution, stating they strongly believe this is a very important landmark to the City. She added that Walter S. White built more than 50+ buildings in Palm Desert that included a few commercial buildings, adding that not all would qualify for this activity, but that it enabled the Committee to recognize Mr. White as Palm Desert's architect, not only in the 1950's but also in the 1940's. MR. WAYNE LONGMAN, a Palm Desert resident for 17 years and a local real estate broker, stated he and his partner Ralph Haverkate have specialized in Mid- century Modern for 14 years, so this matter was of special interest to him. The point he wished to bring forward is that the property rights of the future owner are not inhibited by the designation. If for some reason, a person should find that there is a higher use of the property, it meets the City's requirement, and the economic situation they find themselves in, is unattainable, they will probably apply for demolition of the property and the City is the last hope of resort for preserving the property. Legally, he wasn't sure what types of conditions would established for the City to deny it. He congratulated the City, staff, the committees, and Kim Housken for her efforts, in that it took 15 years to establish this item on the agenda, including Mr. Volker Welter from University of California, Santa Barbara (UCSB), who has identified Walter S. White as home grown Palm Desert Mid- century Modern Architect of the first rank. What needs to be done, in his view, is for the buyer to be aware of the costs and obligations of owning a historic property, and he didn't believe that work had been done to the extent needed. For example, a real estate investor has access to the appraisal, which identifies it as a rental property, and it suggests that with minimal repairs to make the home habitable, the City will allow it with a question. Once it's done, the owner can say that for economical reason he wasn't aware of the costs of rehabilitation or aware the City was going to apply code compliance issues, etc., which are not covered in an appraisal. He suggested the property be given an appraisal as a historic property by an expert in the field who will identify the current value of the property as such, including the repairs and upgrades that it will require. With this kind of information, and perhaps a report, it would update the current appraisal, providing real costs of bringing this property to bear. It would make purchasers more aware of the costs and obligations, and the City won't be faced with a claim that it was sold without the knowledge of what the problems are with the property. Additionally, it will give those visitors coming to Palm Desert for Modernism Week a good appreciation of what they are looking at, stating there will be thousands of people 6 RESOLUTION NO. OB-171 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 11, 2018 visiting the house, because people are extremely interested in Walter S. White. However, with the information provided and with the timing of the auction, there is no time to investigate it, and these people could be very good buyers. With no further public testimony offered, Mayor/Chair Jonathan declared the public hearing closed. Councilmember/Director Harnik moved to waive further reading and adopt Resolution No. 2018 - 04, reaffirming action of the Cultural Resources Preservation Committee, designating 73697 Santa Rosa Way, Assessor's Parcel No. 627-102-024, with Landmark Designation, in accordance with Palm Desert Municipal Code Section 29.40.010. Motion was seconded by Kelly and carried by a 4-0 vote (AYES: Harnik, Kelly, Nestande, and Jonathan; NOES: None; ABSENT: Weber). 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, Ch r J�u athan ad ourned the meeting at 5:31 p.m. ATTEST: RA HELLE D. KLASSENJSECRETARY SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY SAB:Y\JONATHAN, CHAIR 7 RESOLUTION NO. OB - 171 [THIS PAGE LEFT INTENTIONALLY BLANK.] RESOLUTION NO. OB-171 MINUTES REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY THURSDAY, JANUARY 25, 2018 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Chair Jonathan convened the meeting at 3:00 p.m. II. ROLL CALL Present: Director Jan C. Harnik Director Kathleen Kelly Director Gina Nestande Vice Chair Susan Marie Weber Chair Sabby Jonathan Also Present: Lauri Aylaian, Executive Director Carlos Campos, Assistant City Attorney Rachelle D. Klassen, Secretary Lori Carney, Director of Administrative Services Russell Grance, Director of Building & Safety Ryan Stendell, Director of Community Development Martin Alvarez, Director of Economic Development Janet M. Moore, Director of Finance/City Treasurer Tim Jonasson, Interim Director of Public Works Frankie Riddle, Director of Special Programs Bo Chen, City Engineer Stephen Y. Aryan, Risk Manager Lt. Matt Martello, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept. Grace L. Rocha, Deputy City Clerk III. ADJOURN TO CLOSED SESSION Reauest for Closed Session: None RESOLUTION NO. OB-171 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 25, 2018 With Successor Agency Board concurrence, Chair Jonathan adjourned the meeting to Closed Session of the City Council at 3:00 p.m. He reconvened the meeting at 4:06 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 January 11, 2018, 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 - Warrant Dated 1/5/2018. Rec: Approve as presented. Upon motion by Weber, second by Kelly, and 5-0 vote of the Board of Directors of the Successor Agency (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None), the Consent Calendar was approved as presented. VII. CONSENT ITEMS HELD OVER None VIII. RESOLUTIONS None IX. NEW BUSINESS None X. CONTINUED BUSINESS None 2 RESOLUTION NO. OB-171 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 25, 2018 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. ORAL COMMUNICATIONS - C None XV. ADJOURNMENT With Successor Agency Board concurrence, Chair Jonathan adjourned the meeting at 5:00 p.m. ATTEST: Q ) SAS iONATHAN, CHAIR • t RA ELLE D. KLASSEN, S' CRETARY SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY 3 RESOLUTION NO. OB - 171 [THIS PAGE LEFT INTENTIONALLY BLANK.] RESOLUTION NO. OB-171 MINUTES REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY THURSDAY, FEBRUARY 8, 2018 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Chair Jonathan convened the meeting at 3:04 p.m. II. ROLL CALL Present: Director Jan C. Harnik Director Kathleen Kelly Director Gina Nestande Vice Chair Susan Marie Weber Chair Sabby Jonathan Also Present: Lauri Aylaian, Executive Director Robert W. Hargreaves, City Attorney Rachelle D. Klassen, Secretary Lori Carney, Director of Administrative Services Russell Grance, Director of Building & Safety Ryan Stendell, Director of Community Development Martin Alvarez, Director of Economic Development Janet M. Moore, Director of Finance/City Treasurer Tim Jonasson, Interim Director of Public Works Frankie Riddle, Director of Special Programs Stephen Y. Aryan, Risk Manager John Cortez, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Lt. Matt Martello, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept. Grace L. Rocha, Deputy City Clerk RESOLUTION NO. OB-171 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING III. ADJOURN TO CLOSED SESSION Reauest for Closed Session: FEBRUARY 8, 2018 A. Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: Desert Willow Lot Pads - APNs 620-400-008 and 620-400-010 (Lot B); APNs 620-450-012, 620-450-013, and 620-450-014 (Lot C) Negotiating Parties: Agency: Lauri Aylaian/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 Jonathan adjourned the meeting to Closed Session of the City Council and Successor Agency at 3:06 p.m. He reconvened the meeting at 4:03 p.m. IV. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. Mr. Hargreaves reported the Successor Agency approved by unanimous vote an Exclusive Negotiating Agreement (ENA) with FS Ventures, LLC, for a potential surf park on one of the Desert Willow lot pads, and the agreement will be available to the public by tomorrow morning. V. AWARDS, PRESENTATIONS, AND APPOINTMENTS None VI. CONSENT CALENDAR A. MINUTES of the January 25, 2018, Regular Meeting of the Board of Directors of the Successor Agency to the Palm Desert Redevelopment Agency. Rec: Approve as presented. 2 RESOLUTION NO. OB-171 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING FEBRUARY 8, 2018 B. CLAIMS AND DEMANDS AGAINST SUCCESSOR AGENCY TREASURY - Warrants Dated 1/12/2018, 1/19/2018, 1/26/2018. Rec: Approve as presented. Upon motion by Kelly, second by Harnik, and 5-0 vote of the Board of Directors of the Successor Agency (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None), the Consent Calendar was approved as presented. VII. CONSENT ITEMS HELD OVER None VIII. RESOLUTIONS None 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 3 RESOLUTION NO. OB-171 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING C. CHAIR AND MEMBERS OF THE SUCCESSOR AGENCY None XIV. ADJOURNMENT With Successor Agency Board concurrence, Chair Jo ATTEST: RAC FiLL KLAS N, SE.itETARY SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY FEBRUARY 8, 2018 n adjourned the meeting at 4:55 p.m. SABE1Y ONATHAN, CHAIR 4 RESOLUTION NO. OB-171 MINUTES REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY THURSDAY, FEBRUARY 22, 2018 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Chair Jonathan convened the meeting at 3:05 p.m. II. ROLL CALL Present: Director Jan C. Harnik Director Kathleen Kelly Director Gina Nestande Vice Chair Susan Marie Weber Chair Sabby Jonathan Also Present: Lauri Aylaian, Executive Director Robert W. Hargreaves, City Attorney Rachelle D. Klassen, Secretary Lori Carney, Director of Administrative Services Russell Grance, Director of Building & Safety Ryan Stendell, Director of Community Development Martin Alvarez, Director of Economic Development Janet M. Moore, Director of Finance/City Treasurer Tim Jonasson, Interim Director of Public Works Frankie Riddle, Director of Special Programs Stephen Y. Aryan, Risk Manager John Cortez, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Lt. Matt Martello, Asst. Chief, Palm Desert Police/Riverside Co. Sheriffs Dept. Grace L. Rocha, Deputy City Clerk RESOLUTION NO. OB-171 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING IV. RECONVENE REGULAR MEETING - 4:00 P.M. FEBRUARY 22, 2018 A. REPORT ON ACTION FROM CLOSED SESSION. None With Successor Agency Board concurrence, Chair Jonathan adjourned the meeting to Closed Session of the City Council at 3:06 p.m. He reconvened the meeting at 4:10 p.m. V. AWARDS, PRESENTATIONS, AND APPOINTMENTS None VI. CONSENT CALENDAR A. MINUTES of the February 8, 2018, 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 1/31/2018, 2/2/2018, and 2/9/2018. Rec: Approve as presented. Upon motion by Harnik, second by Kelly, and 5-0 vote of the Board of Directors of the Successor Agency (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None), the Consent Calendar was approved as presented. VII. CONSENT ITEMS HELD OVER None VIII. RESOLUTIONS None 2 RESOLUTION NO. OB-171 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING IX. NEW BUSINESS FEBRUARY 22, 2018 A. REQUEST FOR AUTHORIZATION OF THE IMPLEMENTATION OF A PROPERTY DISPOSITION STRATEGY FOR THE DESERT WILLOW LOT PADS OWNED BY THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY (SARDA) (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). Mr. Alvarez displayed a map of the Desert Willow lot pads owned by the Successor Agency to the Redevelopment Agency, and the lot pads are identified as A, B, C, and D. He said staff is tasked with the disposition of these parcels by getting them out to market and maximize the returns for the taxing entities. The City of Palm Desert is a taxing entity, so the City will retain about 3% of the proceeds. In conjunction with moving forward with the sale of these properties, staff is providing the City and Successor Agency a recommendation on a disposition strategy. The strategy outlined in the staff report identifies each parcel and its strengths and opportunities to attract specific targeted markets. He will provide a brief overview of the targeted uses and strategy for disposition of each parcel as follows: Parcel A: This parcel is outlined in red on the map. It's 16.86 acres and designated as resort/entertainment in the General Plan; the zoning is Planned Residential. This is a premier resort residential parcel and is located in close proximity to the clubhouse and has access to the circle on Desert Willow Drive. This is good opportunity to seek a developer that will provide additional resort residential use, which includes timeshares, fractional ownership, and vacation ownership that could be managed through a property manager. Staff is recommending going out for Request for Proposal (RFP) to seek the targeted land use he just described. Parcel B: This parcel is located south of the clubhouse and south of the overflow parking lot, and it's 13.72 acres. In his opinion, this is a premier lot that affords an opportunity to attract a boutique hotel with some branded villas. This lot is the highest elevated pad, which has 360 degree views around the entire lot. He noted Lot B and C are currently in an Exclusive Negotiating Agreement (ENA) with a developer that is seeking to establish a wave pool and hospitality project. Within the next two months, the developer will choose one of the two Tots. If Lot B is not chosen, staff will strongly recommend looking for a developer for a boutique hotel and branded villas through a RFP process. Parcels C and D: These lots are unique, in that the two lots split at the Mountain View Golf Course Hole No. 5. Again, Lot C is currently in an ENA, and if the developer does not choose this lot, staff's recommendation is to look at keeping Lots C and D together. Staff will seek to bring a resort/residential component to these lots. The benefit of C and D, in terms of opportunities, is to tie Lots C/D to E, in that if you have a residential component there, it will certainly serve commercial uses that are 3 RESOLUTION NO. OB-171 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING FEBRUARY 22, 2018 potentially on Lot E, and you have proximity to other shopping amenities that currently exists. Parcel E: Lot E is the key focal point of the staff report, because it's commercially zoned. It is 11.5 acres and the property has a driveway that bisects at the northern end of the lot that leads into the Ralph's Shopping Center. Staff recommends that the City Council invest in the purchase of this property to retain control and then seek a developer that is geared toward an entertainment/restaurant anchored facility. Retail is currently a soft market, so staff recommends the City seek a developer that will be focused on entertainment or music oriented uses, a small high -end theater, a branded brew house, unique experiential restaurants, cafes, dessert shops, or a unique experiential retail. The other component of this parcel is that the City has the opportunity of bond funds that are currently in place from the former Redevelopment Agency that can be used for infrastructure and parking, which would benefit the entire region. In combination of having control of the parcel, the City can secure a RFP and put it out to market and attempt to attract some of the uses mentioned. One possibility for utilizing existing former RDA bond funds is to facilitate a parking structure that would be underground. It could be designed to structurally hold a platform that would support commercial use on top, which would be a benefit to the region and a potential developer. In conclusion, he recommended approval of the proposed property disposition strategy and the City purchasing Lot E from the Successor Agency, and look for opportunities to develop that site through a RFP process. He offered to answer questions. Councilmember/Director Nestande commented that Lot B would be a better choice for the wave pool, so that Lots C and D can be kept together to be tied in with Lot E. She also wondered if there was anything that could be done at this point, since it was currently in an ENA. Mr. Alvarez replied he was reluctant to share his opinion, because he was waiting for all the information to come back from the developer, stating they are the ones doing the due diligence and analyzing their best options for that use. He added that he wasn't an expert on wave pools, but certainly both lots have their positives and challenges. As mentioned previously, Lot B is a premier lot for a hospitality project, but there will be challenges on both lots, because of the access and proximity to the other uses. Councilmember/Director Nestande inquired if there was a time expiration for the use of the Redevelopment funds for the purchase of a property. Mr. Alvarez explained that funds for the purchase of the property would have to come from General Fund Reserves. With respect to the bond funds, he deferred to Ms. Moore to answer the question. 4 RESOLUTION NO. OB-171 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING FEBRUARY 22, 2018 Ms. Moore noted that bond funds could be used if the City decided to do any improvements with respect to public parking, but as far as acquiring the property, the funds would have to come from the General Fund. Mayor/Chair Jonathan asked for the definition of Resort Residential Project as it relates to pads C and D. Mr. Alvarez said Resort Residential Project could be a combination of timeshares or villas, and fractional ownership is similar or the same thing, it's just the way they are managed. However, you could have a combination of the three, including a community where you have vacation homes that are privately owned but managed through a property manager, similar to a homeowners association. Further responding, he said it would not exclude hotels. Mayor/Chair Jonathan inquired about what will happen to SA -RDA and these properties after June 30, 2018. Mr. Alvarez stated the local Oversight Board goes away and the City will then report to the Riverside County Oversight Board (RCOB). The City will have representation on that board from the City Council, including one staff member, but items and requests will have to be taken to the RCOB. Responding to question, he said the Successor Agency will still own and manage the properties, but it will lose some control, in terms of knowing some of the Oversight Board members here locally. Mayor/Chair Jonathan stated these Tots mean a great deal to the future of Palm Desert, so to what extent was the City losing control and what can it do about it. Mr. Alvarez replied the City will still have land -use control through the existing General Plan and zoning regulations, and that process will still go through the City. The only control it would be losing is that when it decides to sell, the property value will be established through an appraised value and staff will need to seek approval for it from the County Board that may or may not have knowledge of the local market or the goals the City is trying to achieve. Mayor/Chair Jonathan commented that the mechanism that exists today where Council has a say as to what happens on those pads, he questioned if that ability will continue once the City has to go through RCOB. Mr. Alvarez replied that Council will have that ability in context of what is allowed under the current zoning regulations. Mayor/Chair Jonathan said he continues to be concerned about traffic circulation, ingress and egress, and what it would do to the quality of that development. On Desert Willow Drive there are five of these parcels attached to it and that's 75 acres of development, which is too much for that one drive even if it went to two lanes on each side. He said he wasn't including parcel G, because it will have its own direct 5 RESOLUTION NO. OB-171 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING FEBRUARY 22, 2018 access. He encouraged staff to address this issue and have options in mind as development starts occurring. For example, there are possibilities for developing additional access off of Cook Street and Portola Avenue, and it may take some creativity. He believed there were possibilities for grading additional traffic circulation, ingress and egress, and he wouldn't want to lose that opportunity by not planning for it ahead of time. Mr. Alvarez agreed, stating staff will definitely keep that in mind. He said the Planning Department will look at it as well, especially the first project. Staff will look at the entire strategic plan and look at potential uses and traffic demands that will be generated. Interim Director of Public Works Tim Jonasson explained he would need to look at the Environment Impact Report (EIR) of the project, which would have included a traffic study, and he would need to be comfortable with whatever is being proposed. He added that he would be looking at the impacts and usuage to avoid problems with circulation, because that would be something that Public Works will be focused on. Councilmember/Director Kelly said she took Mr. Jonasson's comment to be that the City doesn't want to just minimally meet the needs, because of the importance of this destination as a resort. She believed the phrase used at one point when discussing this issue, is that it wants to achieve "Desert Chill" and not "LA Stress." She greatly supports his encouragement to explore solutions that assure the City is doing more than is minimally necessary to foot traffic. Councilmember/Director Nestande moved to, by Minute Motion: 1) Authorize staff to implement a property disposition strategy for the Desert Willow Lot Pads as outlined on Exhibit "A" of the accompanying staff report; 2) authorize SARDA Executive Director/City Manager to execute a Purchase and Sale Agreement (PSA) to sell SARDA-owned Desert Willow Lot Pad E to the City of Palm Desert for the appraised value of $2,670,000 after receiving approval from the Oversight Board and the State Department of Finance; 3) appropriate $2,670,000 plus related closing costs from the Unobligated General Fund Reserves. Motion was seconded by Weber and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). Councilmember/Director Kelly added she was very excited to see this on the agenda, because it struck her as the best response to the concerns Mayor/Chair Jonathan raised about moving it along while the City has maximum opportunity to influence outcomes. Mayor/Chair Jonathan commented there were high-level items on the agenda with the City Goals, Economic Development Plan, and the Desert Willow pads, adding that Council was addressing important policy issues that certainly shape the community's future 6 RESOLUTION NO. OB-171 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING FEBRUARY 22, 2018 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 concurren, cam,, Chair Jonathan -adjourned the meeting at 5:54 p.m. \ SABBYJ NATHAN, CHAIR ATTEST: RACHELLE D. KLASSEN;'SECRETARY SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY 7 RESOLUTION NO. OB - 171 [THIS PAGE LEFT INTENTIONALLY BLANK.]