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HomeMy WebLinkAbout1993-10-14MINUTES REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING THURSDAY, OCTOBER 14, 1993 CIVIC r c� 1 Li( COUNCIL CHAMBER * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * I. CALL TO ORDER Chairman Benson convened the meeting at 8:25 p.m. H. ROLL CALL Present: Member Buford A. Crites Member Richard S. Kelly Member Walter H. Snyder Vice Chairman S. Roy Wilson Chairman Jean M. Benson Also Present: Carlos L. Ortega, ACM/Director of Redevelopment Agency Bruce A. Altman City Manager David J. Erwin, City Attorney Sheila R. Gilligan, Agency Secretary Ramon A. Diaz, ACM/Director of Community Development Richard J. Folkers, ACM/Director of Public Works Paul Shillcock, ACM/Director of Economic Development Dave Millheim, Director of Human Resources Agnes Flor, Acting Director of Finance John Wohlmuth, Assistant to the City Manager III. CONSENT CALENDAR A. MINUTES of the Adjourned City Council/Redevelopment Agency Meeting of December 21, 1992, and the Regular Meeting of the Redevelopment Agency of September 23, 1993. Rec: Approve as presented. MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING OCTOBER 14, 1993 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *"* * B. CLAIMS AND DEMANDS AQAINST THE AGENCY TREASURY - Warrant Nos. 9, 10, 12 and 13. Rec: Approve as presented. C. PRELIMINARY SCHEDULE OF INVESTMENTS as of September 30, 1993. Rec: Receive and file. D. REQUEST FOR RELEASE of Improvement Securities - Tract 27546 (Sterling Partners, Inc., Applicant). Rec: By Minute Motion, authorize the release of improvement securities associated with Tract 27546. E. REOUEST FOR APPROVAL of Grant of Easement to Southern California Edison (SCE) Along San Pablo Avenue - Civic Center Park Phase III). Rec: By Minute Motion, authorize the Chairman, on behalf of the Palm Desert Redevelopment Agency Board, to execute a Grant of Easement for SCE along the Pablo Avenue extension to Magnesia Falls Drive. F. REQUEST FOR APPROVAL, of Grant of Easement to Southern California Edison (SCE) Across Redevelopment Agency -Owned Parcels within the Civic Center Park Phase III. Rec: By Minute Motion, authorize the Chairman, on behalf of the Palm Desert Redevelopment Agency Board, to execute a Grant of Easement for SCE across Redevelopment Agency -owned parcels within the Civic Center Park. G. REQUEST FOR gPPROVAL of Grant of Easement to Coachella Valley Water District (CVWD) Across Redevelopment Agency -Owned Parcels within the Civic Center Park Phase III. Rec: By Minute Motion, authorize the Chairman, on behalf of the Palm Desert Redevelopment Agency, to execute a Grant of Easement for CVWD across Redevelopment Agency -owned parcels within the Civic Center Park. H. REOUEST FOR APPROVAL to Utilize Services of Richard Caplan & Associates (Contract No. R07980) in the Analysis of Section 4 Development. Rec: By Minute Motion, authorize staff to utilize the services of Richard Caplan & Associates (Contract No. R07980) in the analysis of Section 4 development and appropriate an amount not to exceed $10,000 from the Agency's unobligated reserve for that process. 2 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING OCTOBER 14, 1993 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * I. REOUEST FOR AUTHORIZATION to Advertise and Ca11 for Bids for the Las Palmas and Highway 111 Utility Undergrounding Project (Contract No. R07990). Rec: By Minute Motion, authorize the Redevelopment Agency to advertise and call for bids regarding the Las Palmas and Highway 111 utility undergrounding project. J. REOUEST FOR APPROVAL of Partial Notice of Completion for Signage Engraving Program (Contract No. R06960). Rec: By Minute Motion, authorize the Secretary of the Palm Desert Redevelopment Agency Board to file a partial notice of completion for the subject project. Upon motion by Kelly, second by Crites, the Consent Calendar was approved as presented by unanimous vote of the Agency. IV. ORAL COMMUNICATIONS None V. RESOLUTIONS None VI. CONSENT ITEMS HELD OVER None VII. NEW BUSINESS None VIII. CONTINUED BUSINESS None 3 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING OCTOBER 14, 1993 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * IX. OLD BUSINESS A. REOUEST FOR CONSIDERATION OF AGREEMENT REGARDING ANNEXATION WITH THE COUNTY OF RIVERSIDE, REDEVELOPMENT AGENCY OF THE COUNTY OF RIVERSIDE, CITY OF PALM DESERT, AND THE PALM DESERT REDEVELOPMENT AGENCY RELATIVE TO PALM DESERT ANNEXATION NO. 29. Mr. Ortega reviewed the staff report and offered to answer any questions. Member Crites moved to, by Minute Motion, approve Contract No. C07720 between the City of Palm Desert, the Palm Desert Redevelopment Agency, the County of Riverside, and the Redevelopment Agency of the County of Riverside, and authorize the Chairman to execute same. Motion was seconded by Kelly and carried by unanimous vote. B. REOUEST FOR APPROVAL OF CONSULTANT COST FOR SECTION 4 DEVELOPMENT. Mr. Ortega reviewed the staff report and recommendation. Upon question by Chairman Benson, Mr. Ortega explained that with regard to the Put Option, there was a provision in the exclusive right that if we could not agree on the project, the Bishop estate could offer their half of the property to us, and we would purchase it with interest. That agreement expired May 5, 1993, and our contention has been that while we may still agree to buy it from them, the interest stops accruing as of May 5th. He said this would recognize that the Put Option is still valid, with the proviso that we are not responsible to pay interest past May 5, 1993. Member Kelly moved to, by Minute Motion: 1) Authorize staff to continue working with consultants providing design and planning for Section 4 development and appropriate $398,117 from the Agency's unobligated reserve for that cost; 2) authorize the extension of the Put Option held by the Bishop Estate regarding the land acquisition in Section 4 to December 3, 1993, with the provision that the Agency is not responsible for interest in such transaction as of May 5, 1993. Upon question by Mr. Altman, Mr. Ortega stated that the Governor had just recently signed litigation wherein we will not be able to do this project unless we enter into the agreement by the end of the year. This is because the legislation does provide that if you have started these types of projects, as long as you enter into an agreement by the end of the year, you will be allowed to proceed. Mr. Altman suggested that the motion be to authorize the recommendation contingent upon someone else besides Member Kelly joining staff to go over the numbers in total and make sure it's in line with what the Agency is trying to do. Chairman Benson seconded the motion by Member Kelly. 4 IvDNUTES PALM DESERT REDEVELOPMENT AGENCY MEETING OCTOBER 14, 1993 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Member Kelly noted that this is an opportunity to create income for the City for the future that the State of California cannot take away from us in the future. He said that if we do not take advantage of this before January 1, 1994, the opportunity will be gone. In addition, this is an opportunity to develop Section 4 the way we want it to be. Chairman Benson called for the vote. Motion carried by a 4-0-1 vote, with Member Wilson ABSTAINING. X. REPORTS, REMARKS, AND AGENCY BOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR 1. Palm Desert Chamber of Commerce Mr. Ortega stated that the Palm Desert Chamber of Commerce had requested consideration of the remodel of the Visitor Center. Member Crites moved to add this item to the Agenda for discussion. Motion was seconded by Kelly and carried by unanimous vote. Mr. Ortega stated that the request was that the Agency Board authorize the Chamber of Commerce to do some internal remodeling; the reason the Chamber is making this request is because it cannot make any changes without first obtaining Agency approval. He noted that the proposal from the members indicated the remodeling would be done with donated labor, and they requested that the Agency, therefore, pay for the materials. The specific recommendation is that the Agency Board authorize reimbursing the Chamber of Commerce for the cost of materials only as long as there is an agreement between the Agency and the Chamber that requires going through certain bidding procedures for that material. He said the amount to be authorized would not exceed $26,000. Member Crites pointed out that they would not be remodeling the Chamber offices; the work of remodeling was to be in the portion of the building used as the City's Visitor Information office. Chairman Benson expressed concern that we might be getting into the same situation as we had at the fire station where regular labor was not used. Mr. Ortega responded that he would be working with legal counsel to make sure we do not have that type of problem. He said that is why the Agency would pay for materials only, with the provision that they would still comply with State law and the City's provisions regarding the bidding of materials. 5 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING OCTOBER 14, 1993 * * * * * s * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Member Kelly moved to, by Minute Motion, approve the reimbursement to the Palm Desert Chamber of Commerce for the cost of materials only to remodel the Visitor Information Center portion of the Chamber in an amount not to exceed $26,000, subject to an agreement between the Agency and the Chamber that requires going through certain bidding procedures for said material. Motion was seconded by Crites and carried by unanimous vote. B. AGENCY COUNSEL Mr. Erwin requested a Closed Session at the appropriate time pursuant to Government Code Section 54956.9(a), pending litigation (Palm Desert Greens v. City of Palm Desert; City of Palm Desert v. Refco and Iowa Trust), and Section 54956.8, Real Property Transactions (Acquisition of property on Country Club Drive currently owned by Western Community Developers). C. CHAIRMAN AND MEMBERS OF THE AGENCY Member Wilson stated that some time ago the Agency entered into a process to allow the residents of Portola Palms Mobilehome Park to purchase their property. He said he thought it was complete; however, he had received an inquiry from a person who lives in this park who wants to be a property owner and indicated the process seems to be hung up. He asked for a progress report. Mr. Ortega responded that the State and the Agency agreed to participate in the acquisition of the park, with both agencies helping to fund those spaces that would be acquired by low and moderate income persons. He said it would basically be a loan so the low and moderate income persons could acquire it, and we would institute the same payback requirements instituted with the self-help program, that if they sold it we would have first right of refusal and if they sold it at a profit we would get some of the profits. He said that out of the 142 spaces, the Agency and State have funded 43, with 99 spaces that needed to be acquired by the tenants themselves. He stated that at this time, they only have 47 tenants ready to acquire their property, leaving 42 spaces that still have not decided whether to acquire. He said they had gone to a private lender to help them with the balance; they took a loan of approximately $3 million, which was up the first of October. He said the lender could have technically foreclosed on the park; however, through staffs intervention, the lender had decided to extend the loan if we participate in the solution to the problem. He noted the State had also basically said it would put in as much money as it can, but that still would not solve the problem. He said staff would be bringing back to the Agency a program by which we can assist those people, and the Agency may end up owning some of the lots as a result of this process, which could then be used .as part of our low and moderate income housing space rental program. He added that the attorneys for the Agency and the lender were currently working on the documents that will bring this forth. 6 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING OCTOBER 14, 1993 « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « XL ADJOURNMENT Member Wilson moved to adjourn to Closed Session at 8:40 p.m. pursuant to Government Code Section 54956.9(a), pending litigation (Palm Desert Greens v. City of Palm Desert; City of Palm Desert v. Refco and Iowa Trust), and Section 54956.8, Real Property Transactions (Acquisition of property on Country Club Drive currently owned by Western Community Developers). Motion was seconded by Kelly and carried by unanimous vote. ATTEST: 1 �/ . tihi tti, -1.(7,e4et, SHEILA R GILLIGAN, SECRETARY TO THE PALM DESERT REDEVELOPMENT T AGENCY ,AFT M. BENSON, CHAIRMAN 7