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HomeMy WebLinkAbout1980-06-05MINUTES ADJOURNED CITY COUNCIL MEETING THURSDAY, JUNE 5, 1980 GEORGE WASHINGTON SCHOOL I. CALL TO ORDER Due to a delay in setting up the audio system, Mayor Wilson called the Adjourned Meeting of the Palm Desert City Council to order at 7:20 p.m. on Thursday, June 5, 1980, in the Multi -Purpose Room of George Washington School. II. PLEDGE OF ALLEGIANCE - Mayor Pro-Tempore James E. McPherson III. INVOCATION - Councilman Alexis D. Newbrander IV. ROLL CALL Present: Mayor Pro-Tem James E. McPherson Councilman Alexis D. Newbrander Councilman Romeo S. Puluqi Coulcilman Walter H. Snyder Mayor S. Roy Wilson Also Present: Martin J. Bouman, City Manager David J. Erwin, City Attorney Paul A. Williams, Director of Environmental Services L. Clyde Beebe, Director of Public Works Paul E. Byers, Director of Finance V. PUBLIC HEARINGS A. REQUEST FOR CONSIDERATION OF RESOLUTION NO. 80-58 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, SETTING FORTH A FUNDING AND TIMING PROGRAM TO MEET THE REQUIRED CONDITIONS FOR THE DEVELOPMENT OF A REGIONAL SHOPPING CENTER AS PROVIDED IN RESOLUTIONS 79-124 AND 79-125 (Continued from the Regular City Council Meeting of May 8, 1980, and Set for Public Hearing). Mayor Wilson stated that the Palm Desert Town Center was approved by the City Council in October, 1979, conditional on a certain number of off -site improvements to be made by the City through a grant and loan from the Federal Government. The City is no longer funding these off -site improvements. The purpose of this Hearing is to review the proposed alternative funding methods and to also seek public input relative to the Center. He called on Mr. Bouman for the Staff report. Mr. Bouman stated that on October 25, 1979, the Council had adopted Resolution No. 79-125 which announced findings and certified a final EIR for the Palm Desert Town Center. On that same day, the Council adopted Resolution No. 79-125 which made a finding and issued a statement of overriding conditions pursuant to CEQA and approved a development plan for a regional shopping center, a Conditional Use Permit for a parking lot and fire station and preliminary design review. In Resolution 79-125, there were a series of conditions 'placed upon both the applicant and the City involving the Federal UDAG Grant. Since the UDAG Grant has been withdrawn by the County of Riverside, the City was placed in a position of seeking alternative funding and realigning certain responsi- bilities. June 5, 1980 Page 1 MINUTES ADJOURNED MEETING OF THE CITY COUNCIL * n :C * * * V n iC is * r. n r. r. is * is * i'C r. r. * i. is r. r. n n * n V. PUBLIC HEARINGS (Continued) A. RESOLUTION NO. 80-58 (Continued) Mr. Bouman reviewed Exhibit "A" of proposed Resolution No. 80-58 with the Council and audience. He itemized the responsibilities of the applicant which totaled $5,345,000, the responsibilities of the Redevelopment Agency which totaled $1,500,000, the responsibilities of the City or Army Corps of Engineers which total $3,220,000, and the responsibilities of future developers which totaled $450,000. Mr. Bouman then called on Mr. Paul Williams, Director of Environmental Services, who reviewed the sequence of events of the property starting in 1975 when a K-Mart was proposed through the present shopping center. Mayor Wilson asked for an explanation of how much of the UDGA Grant was a grant and how much of it was a loan. Mr. Bouman responded that the total amount of the Grant was about $7 Million and of that amount, about $3 Million was to be repaid as a loan. That was for the purpose of constructing low to middle income housing, and that loan would have required repayment to the County of Riverside from tax increment monies raised from the Center. It was estimated that repayment would have required about 5 years. Mayor Wilson declared the Public Hearing open and advised the audience that Council would ask the applicant for his presentation and then receive 45 minutes of input in FAVOR of the request with 45 minutes then in OPPOSITION to the request. This procedure would alternate until everyone had spoken who so desired to do so. MR. ERNEST HAHN addressed the Council and first explained that the recent merger his company had entered into would have no effect on the proposed center. He pledged that they would continue with the same moral and physical commitment to the residents and the City as before. He stated that the Hahn Company is committed to top rate stores who will also be contributing their share to the development of the Center. He stressed the importance of department stores in the area in order to attract the shoppers to our area. This type of merchandising does not exist and would enhance the attractive- ness of El Paseo and other local merchants. They would also service the families in the area with more moderate priced merchandise. He concluded by stating that they have been delayed 7 months and need to start late in the fall or early spring. Councilman Puluqi questioned the impact of the satelite stores on the already existing stores in the area. Mr. Hahn responded that per a census taken two weeks prior to the meeting, 971,000 sq. ft. of retail now exists on El Paseo. Some are occupied; some are incomplete. The regional shopping center would include two stores offering full spectrum merchandise, two better dress stores as com- pared to the 37 already located in Palm Desert, and then stores that are franchised such as Judy's, the Wet Seal, etc. He stated that El Paseo is not a Rodeo Drive and that their stores would com- pliment those existing on El Paseo now. Mayor Wilson asked Mr. Bouman to report on the correspondence received relative to this issue. Mr. Bouman reported the following correspondence: - 2 letters of opposition from businesses. - 1 letter of opposition from an individual. - 77 letters in support from businesses. - 19 letters of support from individuals. - 122 names on a Petition of Support. - Statement of support from the Planning Commission. - Letter of support from the Palm Desert Property Owners Association - Letter of comment from the California Rural Legal Assistance. June 5, 1980 --� Page 2 MINUTES ADJOURNED CITY COUNCIL —ETING * * * * * * * * * * * iV * is is .. :C * V. PUBLIC HEARINGS (Continued) A. RESOLUTION NO. 80-58 (Continued) Mayor Wilson called for input in FAVOR of the project, and the following individuals spoke: Mr. William Tennison, President of the Palm Desert Property Owners Association, 73-833 El Paseo, Palm Desert, on behalf of his board of directors and representing over 800 residents in the City. Mr. Bill Plenk, Chapman College, 43-220 Tennessee Avenue, Palm Desert. Mrs. Florence Hafer, 74-319 De Anza Way, Palm Desert. Mr. George Williams, Rural Legal Assistance, 1030 6th Street, Coachella, California, stating that this would bring new jobs and especially training for the youth in our area. Mrs. Peg Cash, 73-338 Highway 111, Palm Desert Mrs. Phyllis Jackson, 45-151 San Luis Rey, Palm Desert Mr. Don McNeilly, Cove Community Information Center, 74-004 Highway 111, Palm Desert, on behalf on many local charitable organizations in the area. Mrs. Anne Carpenter, 44-522 San Jose, Palm Desert, California Mr. Jim Walsh, 44-431 San Pascual, Palm Desert, as past presi- dent of the Chamber of Commerce and as a resident. - Mr. Clifford Larson, 74-150 Velardo Road, Palm Desert. - Mr. Harold Housley, 79-508 Bermuda Dunes Drive, Bermuda Dunes, on behalf of the Family YMCA. - Mrs. Lois Haskell, 72-825 Willow Street, Palm Desert. - Mr. Marvin Eisen, 73-437 Tamarisk Street, Palm Desert. Mayor Wilson advised that the 45 minute time limit had expired and invited input in OPPOSITION to the request. Mr. James McLaughlin, 73-896 El Paseo, Palm Desert, stated that he spoke for himself and not all of the merchants on El Paseo as had been erroneously reported in some the of newspapers. He read an editorial from that evening's Desert Sun which stated that more information should be sought be sought before the center was approved. He advised that he and some of the other merchants had employed a consultant to study the feasi- bility of the center and the impact it would have on existing business, and this consultant would present his findings at this hearing. He also opposed the center in that it would bring heavy traffic, air pollution, and other adverse effects to the community. Mr. Peter M. Mlynaryk, Harold Davidson & Associates, Inc. gave a lengthy presentation of his research on the impact of the Hahn Center. In his estimation, the impact of the center was undefined at this point in his study in that it would take more time. He felt that the unmet retail sales in the Coachella Valley could be satisfied by: - construction of a regional shopping center. - new strip stores. - or filling existing vacant retail space. However, he pointed out that the most appropriate combination for meeting this need is unknown at this time and could not be established without further study. = June 22, 1980 Ppap 3 MINUTES ADJOURNED CITY COUNCIL MEETING n n * ...Cn .. ir: irC :: ir'. is i� * ir: ir: ir: irC :: ir: ir: ir: irC * irC * irC* * ir: 'r * n 'r: '�� iC "r: ..i... .. V. PUBLIC HEARINGS (Continued) A. RESOLUTION NO. 80-58 (Continued) The following other individuals spoke against the request: Mr. Hank Stokes, 73-750 El Paseo, Palm Desert. Mr. Boyd Cowden, El Paseo, Palm Desert. Mr. Chuck Paul, Tri-Cities Business Association, 73-460 Highway 111, Palm Desert, requesting a 90-day continuance for further study. Mr. Larry Elder, 74-075 Setting Sun Trail, Palm Desert. Mayor Wilson called a 10 minute recess at 9:50 p.m. He reconvened the meeting at 10:00 p.m. and asked for further input in FAVOR of the request. The following individuals spoke: - Mr. Roland Sweet, 73-535 Pinyon, Palm Desert. - Mrs. Peg Cash, 73-381 Highway 111, Palm Desert - Mr. Ron Arslin, May Company representative, stating that his firm would never have committed to moving into this center without an extensive market survey and a completed one. - Mrs. Lauren D. Wilcox, 43-151 Buttonwood, Palm Desert. - Mr. Ben C. Pickell, Jr., 74-814 Tampico Dr., Palm Desert. - Mr. Bob McGuire, 44-099 Agua, Palm Desert, Ca. Mayor Wilson asked for further OPPOSITION to the request, and the following was offered: - Mr. Roger Bailey, 74-034 San Marino, Palm Desert. - Mr. Frederick Thon, speaking not necessarily against the center but addressing the concern they would keep their promises after the merger. - Mrs. Patty Cowden, 73-640 El Paseo, Palm Desert. With no further input being offered, Mayor Wilson declared the Public Hearing closed. Councilman Puluqi commended Mr. Hahn for a tremendous job. However, he was concerned in that he felt that the people would have to spend more to keep up the center than it would bring in. He also expressed concern about the expenditure for the fire station and the needed street improvements as well as the 850 employees the center would bring in without low cost housing being provided. He concluded by stating that the matter should be presented to the voters as a referendum, and he would not take the responsibility for the adverse effects of this project. Councilman Snyder stated that his background was in business, and free enterprise was primary. He stated that he was very familiar with the project as he had been the Chairman of the Planning Com- mission when it was first reviewed.. He stated that he had reviewed every aspect of the project from every standpoint and had even visited other projects. He had talked to as many people in the City as possible to obtain their views. He said that one of the responsibilities of his accepting his position on the Council was to attempt to be responsive to the people. He had met with the El Paseo merchants and felt that many of the things they said June 5, 1980 _Page 4 MINUTES ADJOURNED CITY COUNCIL MEETING V. PUBLIC HEARINGS (Continued) A. RESOLUTION NO. 80-58 (Continued) were true, just as those that Mr. Hahn said were true. It is a most difficult decision to make. It will shape where we are going. However, something is going to go in that area. It is not feasible that a choice piece of property like this is going to stand vacant. We cannot stop people from building on their own property. He concluded by stating that he had searched his soul and he could not justify holding up this project any further. Mayor Pro-Tem McPherson stated that he had been part of this since the very beginning, and he had sat through all of the hearings. He stated that Mr. Stokes' comment about the City's subsidizing the center concerned him in that the City is not giving Mr. Hahn anything. He pointed out that Mr. Cowden had talked about the quality of life here, but we all moved here because it was a nice place to live. However, we are no longer a little town of 7,000 people. We are going to con- tinue to grow. We talk about this center over and over again, but the issue before the Council at this meeting is who pays for the $10 Million of improvements. The center has been approved. He stated that he would vote yes. Councilman Newbrander stated that on October 25th, when the Council had approved the project, she had said she loved the small town - - it was beautiful. But the building and expan- sion came, and it was inevitable, and we are going to have more of it. We are right at the crossroad here, right in the middle of the desert. We have a chance to have a good center, and this is the time to make it. Mayor Wilson stated that the City is not subsidizing this center. It is no different than the drainage project being constructed presently by the Agency or the $1/2 Million being invested in parking lot improvements on El Paseo by the Agency. Mr. Hahn is putting in all the drainage and parking. If you are going to talk subsidy, it is the other way around. He pointed out that there had been a total of six studies on the center, one of which was completed on May 27th as a result of the City of Indio's concern of the economic impact of the center in the Valley. That report is as updated as you can get. The study showed that some where in the Valley a center is going to be built. Just one Where it goes is really up to this Council. There are others approved at Bob Hope and Ramon. He stated that he had lived in two communities where shopping centers did not build in the downtown area, and the downtown died and the satelite commercial around it moved out to where the centers were. The Council has to look at it from regional' impact and realize the fact that a center will be built. He stated that other cities such as Glendale, Torrance and' Long Beach had been checked where centers had been built. The downtown area in Glendale was helped in that the center was built nearby. In Torrance and Long Beach the downtown areas were hurt as the centers were built away from them. He felt that if the City delayed this center and allowed another to get in, there would be a decline in the economic conditions in the existing businesses in our City. Right now we have satelite shops to set off the shopping center, and he believed that this decision was very important'. Enough studies had been done. With reference to Councilman Puluqi's suggestion for a referendum, he pointed out that Palm Desert is the only City in this State that has had a referendum on their General Plan and one of those issues was this property and its zoning. The people voted in favor of it 3-1. Councilman Newbrander moved and Mayor Pro-Tem McPherson seconded to June 5, 1980 =Page 5 MINUTES ADJOURNED CITY COUNCIL MEETING V. PUBLIC HEARINGS (Continued) A. RESOLUTION NO. 80-58 (Continued) waive further reading and adopt Resolution No. 80-58. Motion carried on the following vote: AYES: NOES: ABSENT: ABSTAIN: McPherson, Newbrander, Snyder and Wilson None None Puluqi VI. ORAL COMMUNICATIONS VII. VIII. None REPORTS AND REMARKS A. CITY MANAGER None B. CITY ATTORNEY None C. MAYOR AND MEMBERS OF THE CITY COUNCIL None ADJOURNMENT Mayor Pro-Tem McPherson moved and Mayor Wilson seconded to the meeting. Motion carried unanimously. Mayor Wilson adjourned meeting at 10:55 p.m. ATTEST: SHEILA R. GILL'IGAN, CI7' CLERK CITY OF PALM DESERT, LeALIFORNIA S . JROY WII�SON, MAYOR 7 adjourn the June 5, 1980 Page 6