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HomeMy WebLinkAbout1992-10-30NIENIUTES SPECIAL \ EETLNG OF THE PALM DESERT CITY COUNCIL MEETLNG AND ITS REDEVELOPNtENT AGENCY FRIDAY, OCTOBER 30, 1992 *** * * * i i i * i$ i i i * i i * * i * * i * i i i i * * i i* i* t I. CALL TO ORDER Deputy City Clerk Mary Frazier convened the meeting at 1:30 p.m. and immediately recessed :: to 1:45 p.m. due to the lack of a quorum. She reconvened the meeting at 1:45 p.m. and recesses, it to 2:15 p.m. due to the lack of a quorum. MlavorChairman 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 Mayor, Chairman Richard S. Kelly Excused Absence: Councilman, Member Buford A. Crites Also Present: Brace 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 BCSL\-ESS A. (i)CONSIDERATION by the City and the Agency of modifications of Exclusive Planning i .d Negotiating Agreement (the "Negotiating Agreement") dated July 29. 1992. between the Agency, the City. and Cook Partners Limited Partnership, and the Citv's and Ater.:%'s consent to an assignment thereof to CT Golf, Inc.: (ii) Consideration of a proposal by Cane: - 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 Agent;. and Carver Management Corporation, as buyer. and Gemini Development Partnership H. 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 Pauah: 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: MINUTES SPECIAL MlEETLNG OF THE PALM DESERT CITY COUNCIL AND ITS REDEVELOPMENT AGENCY OCTOBER 30, 1992 * * * * * * * * * * s * * s * * * * * * * * * * * * s* * * * * * * * * * Key: CLO Carlos Ortega, ACM'Executive Director of the Redevelopment Agency RSK Richard S. Kelly, Mayor/Chairman Jy1B Jean M. Benson, Mayor Pro-Tern/Vice Chairman BC Bill Career, Developer BAA Bruce A. Altman, City Manager RAD Ramon A. Diaz. ACM/Director of Community Development \NHS Walter H. Snyder. Councilman/Member SR\ti S. Roy Wilson, Councilman/Member SRG Sheila R. Gilligan, City Clerk/Agency Secretary CLO Mr. Chairman and Mayor, I'm going to give you the short and sweet explanation. Then if you have any questions, we'll go into a long explanation. We apologize 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 yesterday did all the agreements come together. Some time ago the City and the Agency authorized us to go and work out a purchase of a 40-acre piece of property that would be a joint venture with Carver. Subsequent to that. we sent him a letter agreement which outlined the terms under which we would be willing to execute that joint purchase. An important provision of at agreement was that we would work on a development a--eement for the property and, if after a certain time we 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 his interest to us. This is a letter agreement which is a two page document. Another thing we did subsequent to that is that we executed with Carver an exclusive planning and negotiating agreement which involved this property plus other property in the North Sphere including that property that is owned by the Agency and the City. There are four requests before you today. One of them, which is the essence, and that is Carver has secured the loan from the Bernice Bishop Estate and amongst a set of conditions under which the loan was made to Carver was that the Agency and the City agree that in case there was a default by Carver in the negotiation of this exclusive planning and negotiating agreement and we could not come to terms. that the Bishop Estate, if you will, we recognize them as substituting for Caner and that they could execute the provision of them selling the land to us because I understand that the terms of the loan are also that they would have a trust deed to the property and would be able to foreclose on Carver's interest. This is the agreement that you see under a law corporation of Tuttle and Taylor. Basically, that agreement recites the previous three agreements that 1 have alluded to. and the short end of it is that we agree to give the Bishop Estate the same nghts that we have given to Carver. Now, in the agreement, however. they talk about them assuming the '1L`LTES SPECIAL MEETING OF THE PALM DESERT CITY COUNCIL ANT) ITS REDEVELOPMENT AGENCY OCTOBER 30. 1992 ► i * * $ $ * * • S $ * S $ * * * $ * * $ * * * * * * * * * • * • s * * a s interest of CT Golf. In the other prior agreements CT Golf is not a partner or is not an ageric:. that is recognized by those agreements: therefore, in order for us to execute this agreement. �e also have to recognize CT golf. Basically, I understand CT Golf stands for Carver Thrall. a ..c Carver is transferring all of its rights under the previous three agreements to CT Golf. We have looked, that is the Executive Management staff has looked. at the conditions under whiC:t :h,e 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 authorize :he execution of all four agreements. RSK Questions? 1MB You said it wasn't in the first agreement that we looked at and that CT Golf has been added. %hat is the reason? CLO I think that question should be answered by Bill Carver as to what has happened with the :ranste . RSK You might as welt 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 tie property encumbered with a deed of trust but that we personally guarantee the loan. So m` partner. Larry, Carver Management Corporation is in a lot of different things. So we 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 attorneys 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 any 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 I have been working with different ways to structure this so that we can have a publicly operated golf course, either, well, we're trying to do 36 holes opposed to just the t8. 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\UTES SPECIAL MEETING OF THE PALM DESERT CITY COUNCIL .AND ITS REDEVELOPMENT AGENCY OCTOBER 30, 1992 * * * * * * * * * * * * * s * * * * * s * s * * * * * * * * s * s s * s * * RSK The exclusive tight is... BAA Well, what they've asked for is to amend the agreement so the exclusive right will go 180 days from the close of this escrow. We haven't really started the clock because. number one. we hadn't closed the escrow. he didn't get the money in. but he's paid for the escrow extension. Number two. upon this approval, he has to deposit the S150.000 with us, which is the good faith money to commence the clock. With that, we'll have the EIR and the planning. Is that right, Carlos? CLO Yes. and to answer your question more directly, is we don't have an agreement with Carver at this time on the specifics. What we do have is we have a six-month exclusive negotiating agreement. if you will, in which Carver will do several things. One, he will put a financial package together. Two. he will do an EIR. Three, he will submit whatever planning issues need to be submitted before the City Council. And four, we will negotiate the specifics of who's going to own the property, how the golf courses are going to be managed, who's going to have what say-so throughout the whole process. All of those things will be negotiated within the six month period. RSK You're going to do all that in six months? CLO That is the goal because we don't want as a City/Agency being able to forego other development opportunities for a long period of time. and the agreement basically provides that in those six months Carver 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 way and we go our way and he exercises the option of selling us the rest of that 40 acres. RSK Now, my understanding is that the commercial part of this development is in the process and already gone through the Planning Commission. RAD Yes. Mr. Mayor and Members of the Council. the development plan and the change of zone for the Cook and Country Club corner has already gone to the Planning Commission and will be before the Council very shortly. RSK It was my understanding that the whole thing would go together because...what's the zone change connected with that? RAD The change of zone that is connected with the development actually involves a rather small par, of the overall development. RSK What is the zone change? RAD The change of zone, I believe, and Mr. Carver can correct me if I'm wrong, 1 think it's about what, ten or twelve acres. \IL\I TES SPECIAL MEETING OF THE PALM DESERT CIT\ COUNCIL AND ITS REDEVELOPMENT AGENCY' OCTOBER 30. 199: * * * * * * * * * * * * * $ * * * * * * * * * * * * * * * * * * * * * $ * ■ BC No. it's fire. Five acres from RPIO to CP10. RAD From Planned Residential, 10 units per acre, to Community Commercial or Planned PC'. community commercial. Because the comer of Country Club and Cook, the 25 acres a: the northwest corner, is already zoned Planned Community Commercial 2. PC2. and for :heir development to proceed as presented. they needed an additional five acres for parking and :nat. So overall the change of zone actually involves tine acres, but it is part and parcel of :his development and during the hearing process before you, they will demonstrate how the paricula,r 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 you see `ou 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 rant there), then we have 60 acres that goes up to that. So this includes all the City's land a:.d three other ownerships. (Discussion away from the microphones) CLO Yes, furthermore, during this exclusive negotiating period, i.e. the 180 days. one of t e:: 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 proper:} is not necessary. They already own that property. RSK You had a question? \tiHS Just a real quick one. In our original agreement we had that Carver could buy it or we could 5u,, 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. SIB And the whole project on that corner still has to come to the Council some time. TLO 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 E[R, Planning Commission, City Council. 5 \1ENL TES SPECIAL \IEETENG OF THE PALM DESERT CITY COUNCIL AND ITS REDEVELOPMENT AGENCY OCTOBER 30, 1992 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * SIM I would move the four recommended actions. \VHS Second. RSK But I am assuming that is staffs recommendation here. It's been moved and seconded that ue approve staffs recommendation. Would you indicate your pleasure by noting? SRG Motion carries by unanimous vote. CLO Mr. Mayor/Chairman, I just have one more request, basically, now that you have taken this action. is that you direct the appropriate Agency and City staff to execute a Certificate of Acceptance. You officially ha.e to accept it, the ownership of the Agency and City, and authorizing staff to execute any final escrow documents. \VHS So moved. SRW Second. RSK Would you indicate your pleasure by voting. SRG Motion carries by unanimous vote. IV. ADJOL RNMENT Upon motion by Snyder, second by Wilson, and unanimous vote of the Council!Redevelopment .Agenc\ Board, Mayor. Chairman Kelly adjourned the meeting at 2:47 p.m. r RICHARD S. KELLY. MIAYOR,CHAIRNAAN .ATTEST: SHEIL.A R. GILLIGAN. CITY CLERK, AGENCY SECRETARY C1TY OF PALM DESERT, CALIFORNIA PALN1 DESERT REDEVELOPMENT AGENCY