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HomeMy WebLinkAbout1992-10-30Ntrsi-TES SPECIAL MEETLNG OF THE PALM DESERT CITY COUNCIL NIEETLNG AND ITS REDEVELOPMENT AGENCY FRIDAY, OCTOBER 30, 1992 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * I. CALL TO ORDER Deputy City Clerk Mary Frazier convened the meeting at 1:30 p.m. and immediately recessed It to 1:45 p.m. due to the lack of a quorum. She reconvened the meeting at 1:45 p.m. and recessed it to 2:15 p.m. due to the lack of a quorum. MayorChairman Kelly reconvened the meeting at 2:15 p.m. II. ROLL CALL Present: Mayor Pro-Tem/Vice Chairman Jean M. Benson Councilman/Member Walter H. Snyder Councilman, Member S. Roy Wilson Nfa,or, Chairman Richard S. Kelly Excused Absence: Councilman/Member Buford .A. Crites Also Present: Bruce A. Altman, City Manager David J. Erwin, City Attorney Sheila R. Gilligan, City Clerk/Agency Secretary Ramon A. Diaz, ACM/Director of Community Development Carlos L. Ortega, ACM/Executive Director of the Redevelopment Agency III. OLD BUSINESS 1. (i)CONSIDERATION by the City and the Agency of modifications of Exclusive PlanninJ af.d Negotiating Agreement (the "Negotiating Agreement") dated July 29, 1992, between Agency, the City, and Cook Partners Limited Partnership, and the City's and Aizer,,:‘.'s consent to an assignment thereof to CT Golf, Inc.; (ii) Consideration of a proposal by Caner Management Corporation to assign to CT Golf, Inc., its rights under a Purchase and Sale Agreement (the "Purchase and Sale Agreement") dated June 26, 1992, between the Agenc.2, and Carver Management Corporation, as buyer. and Gemini Development Partnership U. as seller; (iii) Consideration of a proposal by Carver Management Corporation to assign to CT Golf, Inc., its rights under a letter agreement (the "Letter Agreement") dated June 26, 1992. between the Agency and Carver Management Corporation; (iv) Consideration of a proposal for the Agency to consent to a collateral assignment of said Negotiating Agreement, Purchase and Sale Agreement, and Letter Agreement to the Trustees of the Estate of Bernise Pauahi Bishop; (v) to take any and all appropriate actions related to the foregoing. The following is a verbatim transcript of this portion of the meeting: � I I\ L- TES �PECI_-�L �IEETLIG OF THE P.�L:�1 DESERT CITY COL�CIL .a\D ITS REDE�'ELOP'�1E.tiT AGEtiCY OCTOBER 30, 199? * # * * * � Y * i * f * * # i # * * * �k * * * f t * * i * * # * * t Y * * * �l'\': CLO RSk J�1B BC B.�.� R.� D �'��HS S R�'�� SRG Carlos Ortega, AC'�i; Executive Director of the Redevelopment Agencv Richard S. Kelly, hia}�or%Chairman Jean '�i. Benson, hlavor Pro-Tem;'�'ice Chairman Bill Can�er, De��eloper Bruce A. Altman, City I�lanager Ramon A. Diaz, ACM!Director of Community Development �'alter H. Snvder, Councilman%l�iember S. Roy V�'ilson, Councilman/hsember Sheila R. Gilligan, City Clerk/Agency Secretary CLO ?�1r. Chairman and Mayor, I'm going to gi��e you the short and sweet explanation. Then if vou ha��e any questions, we'll go into a long explanation. We apoiogize for calling this meeting at this time; however, as of late yesterday Mr. Carver was still submitting some paperwork to the escrow folks that are handling the transaction, and only }�esterday did all the agreements come toQether. Some time ago the City and the .4gency authorized us to go and work out a purchase of a�0-acre piece of property that would be a joint venture with Carver. Subsequent to that w�e sent him a letter agreement which outlined the terms under which we would be w�illing to execute that ioint purchase. An imporcant pro��ision or' at agreement was that we would work on a de��elopment ��-eement for the property and, if after a certain time ��e could not come to an agreement, that he had the option of either buying our interest from the property or he had the option of selling h:s interest to us. This is a letter agre�ment which is a two page document. Another thing we did subsequent to that is that we executed with Carver an exclusi��e p]anning and negotiating agreement which involved this property plus other propeny in the tiorth Sphere including that propert}� that is owned by the Agency and the City. There are four requests before vou toda��. One of them, which is the essence, and that is Car��er has secured the loan from the Bernice Bishop Estate and amongst a set of conditions under whic5 t!-,: loan w•as made to Car��er w•as that the .�gencv and the Cit�� agree that in case there ��as a default by Carver in the ne�otiation of this erclusive pinnning and neeotiatino a�reement and µe could not come to terms, that the Bishop Estate, if vou w�ill, w�e recognize th�m 2s substitutino ;or Car��er and that they could execute the provision of them sellin� the land to us because I unders:an� that the terms of the loan are also that thev would ha��e a trust deed to the propert�� and w�ou;d be able to foreclose on Carver's interest. This is the aereement that vou see under a law� cor�oration of Tuttle and Ta}�lor. Basicallv, that agreement recites the pre��ious three agreements that I ha��e alluded to. and the short end of it is that we agree to gi�e the Bishop Estate the same nehts tha: �e r�a��e given to Car�er. Now, in the agreement, however, thev talk about them assuming the ..... - � MLNLTES SPECIAL MEETLNG OF THE PALM DESERT CITY COUNCIL AND ITS REDEVELOPMENT AGENCY OCTOBER 30, 199: * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * interest of CT Golf. In the other prior agreements CT Golf is not a partner or is not an az,enc•: that is recognized by those agreements; therefore. in order for us to execute this aureement. also have to recognize CT golf. Basically, I understand CT Golf stands for Carver Thrall. and Carver is transferring all of its rights under the previous three agreements to CT Goif. We ha\.e looked, that is the Executive Management staff has looked, at the conditions under whicn :he Bishop Estate has agreed to make the loan to Carver Corporation to buy, which is one-half of he property, and we feel that we would not have any problems with what is being requested. Agency attorneys have looked at all four agreements, and there have been some negotiations or, some of the specific wording. At this time, we are prepared to recommend that you authorze the execution of all four agreements. RSK Questions? JMB You said it wasn't in the first agreement that we looked at and that CT Golf has been added. What is the reason? CLO I think that question should be answered by Bill Carver as to what has happened with the :rans;-e:.. RSK You might as well take the podium there and stay there... BC Bill Carver. The reason for this is that the Bishop Estate has asked not only that we have the property encumbered with a deed of trust but that we personally guarantee the loan, So TA partner. Larry, Carver Management Corporation is in a lot of different things. So ‘Olf e wanted a brand new clean corporation that had no other interest except for this piece of property so that we could be guaranteed just this one piece of business rather than a lot of different companies or a lot of different things the company is in. It was just a cleaner way for us to do it and have our attornes have everybody be happy about it. RSK Where do we stand on this whole agreement and I'm not sure the rest of the Council is anv more up than I am on what kind of actual financial plan we're going to be coming up with here when we get through? BC Well, the one thing that we're asking for is that the six-month negotiating time commences as of the close of escrow, which we now believe will be Monday. The funds are all in and so forth. so we think that that's the proper time for the six months negotiating period to start. We have been talking with staff, and Ihave been working with different ways to structure this so that Vf e can have a publicly operated golf course, either, well, we're trying to do 36 holes opposed to just the 18. And, toward that end, we haven't really had a lot of discussions on how it's going to be structured. So the structuring is what's going to be the subject of all of our negotiations. 3 �1L�t�TE.S SPECI_�L '�IEETL'�G OF THE PAL'�'I DESERT C1T�' COL:\CIL .a\D ITS REDE�'ELOP'�1E.tiT AGEICY OCTOBER 30, 1992 * : * s * : s s s * s s s s s * s * * * * � s * * * * * s * s * s s s : s s RSk The exclusive right is... B,�.� V�'ell, what thev'��e asked for is to amend the agreement so the exclusive right w�i11 go 180 da�•s from the close of this escrow�. Vl�'e haven't reallv started the clock because, number one, w�e hadn': closed the escrow, he didn't get the mone�� in, but he's paid for the escrow extension. tiumbe� tw•o, upon this approval, he has to deposit the 5150.000 with us, which is the good faith mone� to commence the clock. V�'ith that, we'll have the E1R and the plannino. Is that right, Carlos`' CLO �'es, and to answer vour question more directly, is we don't have an agreement with Car��er at this time on the specifics. What we do have is we have a six-month exclusi�e negotiating agreement, if vou will, in which Carver will do severa] thin�s. One, he will put a financial pac)age to�ether. Two, he u•ill do an EIR. Three, he w�ill submit whatever planning issues need to be submitted before the City Council. And four, w�e will negotiate the specifics oi w�ho's going to oµ�n the propem•, how the golf courses are going to be managed, who's eoing to have �hat sa�-so throughout the whole process. All of those things ��ill be negotiated within the six month period. RSI� l'ou're going to do a11 that in six months? CLO That is the goal because we don't w�ant as a City/Agency being able to forego other development opponunicies for a long period of time, and the agreement basically provides that in those six months Can�er is supposed to do all those things and if he doesn't do them or if we can't come to a satisfactory agreement within those six months, then he goes his wa}� and u�e go our wati and he exercises the option of sellina us the rest of that 40 acres. RS� tiow�, my understanding is that the commercial part of this development is in the process and already gone through the Planning Commission. R.�D �'es, �Tr. !�4ayor and h4embers of the Council, the de�elopment plan and the change of zone for the Cook and Country Club corner has alread�� gone to the Plannine Commission and ��ill be before the Council very� shortly. � � 2Sk It �•as my understanding that the whole thing would go toeether because...w�hat's the zone crar.�e connected � ith that? R.�D The change of zone that is connected � ith the de� elopment actuall`� im�ol��es a rather sma�l pa.^ of the o��erall de��elopment. RS�; `'�"hat is the zone chanee'? R.�D The change of zone, I believe, and Mr. Can�er can correct me if I'm wrong, I think it's abou; �hat, ten or twel��e acres. 0 NILNLIES SPECIAL NLEETLNG OF THE PALM DESERT CITY COUNCIL AND ITS REDEVELOPMENT AGENCY OCTOBER 30. 1992 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BC !Co. its fie. Five acres from RPIO to CP10. RAD From Planned Residential, 10 units per acre, to Community Commercial or Planned PC". community commercial. Because the corner of Country Club and Cook, the :5 acres a: the northwest corner, is already zoned Planned Community Commercial 2. PC2. and for :her development to proceed as presented. they needed an additional five acres for parking and that. So overall the change of zone actually involves five acres, but it is part and parcel of this development and during the hearing process before you, they will demonstrate how the paricular development plan fits in to the overall plan for the entire Section 4. BC I've got the beginning of a land plan here that I'd like to show you. That would help vou see hou, the shopping center fits into the whole thing. This is a plan that takes up, we had 60 acres back of our property. so with the Morielli property which we are acquiring to the west of our proper. (you can point that out) and then acquiring another 20 acres to the north of that (which is rght there), then we have 60 acres that goes up to that. So this includes all the City's land ar.d three other ownerships. (Discussion away from the microphones) CLO Yes, furthermore, during this exclusive negotiating period. i.e. the 180 days, one of their requirements is that they go and seek to require the remainder of the property. RAD But in terms of the development that will be before you and the change of zone, additional propert is not necessary. They already own that property. RSK You had a question? \VHS Just a real quick one. In our original agreement we had that Carver could buy it or we could b v it. Does that still remain? CLO That still remains. \VHS In other words, he'd have to buy out our half or we'd buy out his half. CLO That is correct. 'MB And the whole project on that corner still has to come to the Council some time. :LO That is correct. His 40 acres has yet to come before the Council. The whole project still has to go through the whole process of EIR, Planning commission, City Council. 5 �IL\t TFS SPECI_�L '�tEETL'�G OF THE PAL�1 DESERT CITY COL�CIL :�\D ITS REDEVELOP:�1E.tiT AGEtiCY OCTOBER 30, 1992 :** s* s s s s s s s s s* s�:*** s* s s s s*: s s s s: s� s: SR��� I w�ould move the four recommended actions. �'�'HS Second. RSh But I am assuming that is staffs recommendation here. It's been mo��ed and seconded that we appro��e staffs recommendation. W'ould vou indicate your pleasure by �otin�'' SRG I�'Iotion carries bv unanimous vote. CLO Mr. Mayor/Chairman, I just have one more request, basically, now that you ha��e tal:en this action, is that you direct the appropriate Agency and City staff to execute a Certificate of Acceptance. 1'ou officiallv ha. e to accept it, the ownership of the Agency and City, and authorizing staff to exerute anv final escrow documents. ��'HS So mo��ed. SR�'�' Second. RS� V�'ould you indicate vour pleasure by voting. SRG ?�lotion carries bv unanimous vote. I�'. .�DJOtR\:11E.1'T Upon motion b�� Snyder, second by V�'ilson, and unanimous �ote of the Council'Rede��elopment .��enC� BOard, hiayor;Chairman Kelly adjourned the meeting at �:�7 p,m. .��I'TEST: , -� - . , i� � �. ,I � RICH:�RD S. KELL�', ?�kAYOR'CH.4IR?� AN � - . , < , v. SHEIL.� R. GRIIGAN. CITY CLERK, AGENC�� SECRET.�R�' CIT1' OF P.ALM DESERT, C:ALIFORNIA P.�L�1 DESERT REDE�'ELOPMENT AGENC�' � C