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HomeMy WebLinkAbout1994-10-27MINUTES REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING THURSDAY, OCTOBER 27, 1994 CIVIC CENTER COUNCIL CHAMBER s s: s s s s s s*** s s** s* s s s s s s s s s s s s s s** s s s I. CALL TO ORDER Chairman Wilson convened the meeting at 4:00 p.m. II. ROLL CALL Present: Member Jean M. Benson Vice Chairman Buford A. Crites Member Richard S. Kelly Member Walter H. Snyder Chairman S. Roy Wilson Also Present: Carlos L. Ortega, Executive Director Bruce A. Altman, City Manager David J. Erwin, City Attorney Sheila R. Gilligan, Agency Secretary Richard J. Folkers, ACM/Director of Public Works Paul Shillcock, ACM/Director of Economic Development Pat Conlon, Director of Building and Safety Paul Gibson, Director of Finance Wayne Ramsey, Acting Director of Code Compliance Phil Drell, Acting Director of Community Development John Wohlmuth, Assistant to the City Manager Ken Weller, Emergency Services Coordinator Lisa Constande, Environmental Conservation Manager III. CONSENT CALENDAR A. MINUTES of the Regular Meeting of the Redevelopment Agency of October 13, 1994. Rec: Approve as presented. MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING OCTOBER 27, 1994 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * B. CLAIMS AND DEMANDS AGAINST THE AGENCY TREASURY - Warrant No. 17. Rec: Approve as presented. C. REQUEST FOR AUTHORIZATION to Retain Urrutia-Prest Architects to do Conceptual Site Plan for Southeast Corner of Portola Avenue and Highway 111 (Contract No. R09170). Rec: By Minute Motion, authorize staff to retain the services of Urrutia-Prest Architects to provide a conceptual site plan for the southeast corner of Portola and Highway 111 and authorize the appropriation of $7, 800.00 plus a contingency of $780.00 for reimbursables from the Agency's Unobligated Reserve. D. REOUEST FOR AUTHORIZATION OF EXPENDITURES for Services Rendered by Rosenow Spevacek Group, Inc. (Contract No. R09180). Rec: By Minute Motion, authorize the expenditure of $25,000 for services rendered by Rosenow Spevacek Group, Inc. for services accomplished in the financial studies in the upcoming bond issue, and appropriate said amount from the Agency's Unobligated Reserve Account. Upon motion by Snyder, second by Benson, the Consent Calendar was approved as presented by unanimous vote of the Agency Board. IV. ORAL COMMUNICATIONS None V. RESOLUTIONS None VI. CONSENT ITEMS HELD OVER None 2 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING OCTOBER 27, 1994 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * VII. NEW BUSINESS A. REQUEST FOR APPROVAL OF AN AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY AND MADISON REALTY PARTNERSHIP (Contract No. C09190). Mr. Ortega reviewed the staff report, noting several changes to the proposed agreement. Member Crites asked if there would be any objection to holding this item until after the City Council considers Public Hearing B. Member Crites moved to continue this item until after the City Council Public Hearing B. Motion was seconded by Kelly and carried by unanimous vote. Following the City Council Public Hearings, Mr. Ortega noted the report in the packets outlining the major points in the agreement. He said there basic agreement on all major issues; however, there was one issue referred to by Mr. William Bone dealing with anti - raiding provisions. Mr. Yrigoyen reviewed the proposed changes to the agreement including the nonraiding provision. He offered to answer any questions. Member Crites expressed concern with the wording of the nonraiding provision and said he would be more comfortable if it were changed to reflect "businesses not located on El Paseo or within one block of El Paseo". He also felt the provision should remain in effect for one year after the center is opened. He asked, assuming that 80% of the center is leased, what number of square feet could be taken from other shops on El Paseo before the center is opened. Mr. Yrigoyen responded that it would be 20,000 square feet. Member Crites asked what was the average size of shops on El Paseo, and Mr. Yrigoyen stated that they were 1,000 to 2,000 square feet. MR. WILLIAM BONE, developer of the project, stated that the revised condition on anti - raiding was acceptable to them. He added that they would be happy to live with the condition that says the greater of 12 months of when the center opens or until 80% of the facility is leased, whichever is later. Upon question by Member Crites, he said they would also agree with his request to change the wording to reflect "businesses not located on El Paseo or within one block of El Paseo'. Member Crites stated that from the time this process was started and the Agency decided to get involved in it, it has been with the idea that El Paseo needed an anchor. He said that when all is said and done, the merchants needed to know that they still might end up with just 167,000 square feet of retail without a major department store as the anchor. He said that once the agreement is signed, as long as the developer is willing to live without the additional 30,000 square feet approved by the City Council in the public hearing, we might not end up with that major anchor store. 3 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING OCTOBER 27, 1994 * * * * * s * * * * * s s * * s * s * s * * * s * * * * * * * * * * * * Mr. Ortega agreed that initially the lure for the Agency's investment was that we would get a major anchor; however, the developer that made the commitment is not the current developer, and we could end up with 167,000 square feet of retail without the major. Member Kelly moved to, by Minute Motion, adopt the agreement conceptually with Madison Realty Partnership, which contains the provisions outlined in the staff report, authorizing the Executive Director to negotiate and execute the final agreement, as amended by staff and the RDA Board, including amendment of the provision relative to attracting businesses to the center to reflect that that provision shall be in effect until 80% of the facility is leased or one year from the date the center is open, whichever is later, and also including the change in wording suggested by Member Crites relative to "businesses not located on El Paseo or within one block of El Paseo". Motion was seconded by Snyder and carried by unanimous vote. B. REQUEST FOR CONSIDERATION OF WESTERN CENTER/CRLA STIPULATION COMPLIANCE PLAN. Mr. Ortega noted the report in the packets and offered to answer any questions. Member Crites stated that it appeared that by doing most of the things indicated in the report, excluding the building of the three -bedroom apartments, we will be either at or in excess of our agreement in all the other areas. Mr. Drell agreed. Member Crites asked what the penalty would be if we were not at the agreement level in just one area. Mr. Drell responded that he felt Western Center initially felt the City would be somewhat uncooperative and, therefore, they took a hard stand. However, he felt when they saw how enthusiastic the City has been in pursuing the December 1995 goals for affordable housing, they will then take a softer position. Member Crites stated that his one comment would be that we not be precipitous in going out to build something in some costly fashion to meet one little piece of our required area when we're at or ahead in everything else and that we look for what we're seeing now -- very good values in the marketplace. He added that if we end up with some excess two -bedroom and four -bedroom units and not enough units, perhaps we could sit down with Western Center and convince them that we are doing what we said we would, and that is to build, maintain, and provide places for low income citizens. He said he felt that was more important than meeting each little piece of a quota down to the "t". Member Crites moved to, by Minute Motion: 1) Authorize staff to order appraisals, prepare agreements, develop a financing program, and enter into negotiations to acquire or otherwise include properties described in the report in the Agency's affordable housing program as required to meet terms of the Western Center/CRLA Stipulation; 2) authorize an appropriation of $10,000 for Account No. 870-4195- 466-3092 from the Special Revenue Low and Moderate Income Housing Fund, unobligated reserves. Motion was seconded by Benson and carried by unanimous vote. 4 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING OCTOBER 27, 1994 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * C. REQUEST FOR APPROVAL OF PORTOLA PALMS MOBILEHOME PARK CONVERSION PROJECT. Mr. Ortega reviewed the staff report and offered to answer any questions. Member Crites expressed concern with the staff report indicating that the current balance of the note is over $1 million, and he asked why the Park's Acquisition Association was not making its payments. Mr. Ortega responded that not as many lots were sold as had been projected. In addition, they were not able to close the State properties, and they had thought they would be able to do so. He stated that a committee had met with the Board of the Park about a month ago and advised that it wished to see the financial records of the Park to determine what course of action would be taken. He said that if it could be anticipated that once all the conversions are completed there will be sufficient revenues to start paying on the note, staff would recommend extending the note; however, if that is not the case, staff could make a recommendation for foreclosure. He added that staff would be coming back with a recommendation following analysis of the books. Member Crites expressed additional concern with the fact that the City is shown on the majority of the loans in a second position behind the State, and he asked whether there would be anything left for the City if the loans were to go bad and the State was to get its money first. Mr. Ortega responded that there were three types of purchases that occurred: 1) people purchased outright and secured private financing; 2) the State provided most of the loan, with the City participating for approximately $1,200 for each lot; 3) the City provided most of the financing directly to the buyer. The loans where the City has a second are the ones where the City's participation is relatively minimal at approximately $1,200 per lot. Member Crites moved to, by Minute Motion, approve as to form and subject to modification the First Amendment (Contract No. R08070) to the original Portola Palms Mobilehome Park Conversion Project Inter -Creditor Agreement which authorizes the Agency to use $22,864 of its Agency funds for various costs related to the escrow closing of the final 28 loans. Motion was seconded by Benson and carried by unanimous vote. D. REQUEST FOR RATIFICATION OF EXPENDITURE OF FUNDS TO PALM DESERT GOLF PARTNERS. Mr. Ortega reviewed the staff report and offered to answer any questions. Member Crites expressed concern with paying up to $15,000 per month to someone who will also be involved with the project as an equity partner and would be receiving a cut from that project. 5 M NUTTS PALM DESERT REDEVELOPMENT AGENCY MEETING OCTOBER 27, 1994 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Mr. Ortega noted that this would only authorize payments up to $200,000 through the end of December, and by that time staff would have worked out a development agreement that would spell out how the developer would be paid from that point on. Member Benson stated she felt the justification submitted by Mr. Rubin for his hours was not sufficient. Mr. Ortega responded that no funds would be released until sufficient justification is received, and he added that a letter to that effect had been sent to Mr. Rubin. Chairman Wilson noted that a lot of the services the City is being billed for are things that could be done at the staff level for a lesser hourly rate, and he asked whether consideration had been given to doing some of that in-house instead of contracting it out. Mr. Ortega responded that there was not sufficient staff available to do these things. Member Snyder stated that although it seemed that it was a considerable amount of money, he felt what was being done was proper. Member Kelly agreed and said he did not think staff had the capability to do what had been done so far and that a lot of negotiation had gone on and was still going on. He felt that staff needed to be directed to monitor and make sure the money is being spent properly. He added that he did not think we could have accomplished what had been done so far and that if this is pulled off we would really have done something spectacular that has not been done anywhere else in the country. Councilman Snyder moved to, by Minute Motion, ratify the expenditure of up to $200,000 in developer's costs to Palm Desert Golf Partners payable over a monthly basis between July 1994 to December 1994. Motion was seconded by Kelly and carried by a 4-1 vote with Member Crites voting NO. NOTE: The following item was listed on an Agenda Addendum and posted 72 hours prior to the Redevelopment Agency meeting. E. REOUEST FOR APPROVAL OF AN ASSIGNMENT AND ASSUMPTION AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY (AGENCY) AND HABITAT FOR HUMANITY OF COACHELLA VALLEY, INC. (HABITAT) ASSIGNING TO AGENCY ALL OF THE RIGHTS AND OBLIGATIONS OF HABITAT TO PURCHASE CERTAIN REAL PROPERTY LOCATED AT 73-957 EL CERCADO, PALM DESERT, CALIFORNIA, AND PROVIDING FOR THE DEVELOPMENT OF A SINGLE-FAMILY HOME ON SAID PROPERTY. Mr. Ortega noted the report from Mr. Drell in the packets as well as a proposed agreement. He offered to answer any questions. 6 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING OCTOBER 27, 1994 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Mr. Drell added that this program was coordinated with the construction of the Target store which would be supplying the materials, labor, and supervision. Member Crites moved to, by Minute Motion, approve and direct the Chairman and Executive Director to execute subject agreements and appropriate $22,500 from the Agency's Special Revenue, Low and Moderate Income Housing Funds, Unobligated Reserve. Motion was seconded by Benson and carried by unanimous vote. VIII. CONTINUED BUSINESS None IX. OLD BUSINESS None X. REPORTS, REMARKS, AND AGENCY BOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR Mr. Ortega noted the Closed Session items listed on the Agenda. B. AGENCY COUNSEL Request for Closed Session: 1. Conference with Legal Counsel - Anticipated Litigation pursuant to Section 54956.9 Initiation of Litigation pursuant to Subdivision (c): Number of potential cases: 2. Conference with Legal Counsel - Anticipated Litigation pursuant to Section 54956.9 Significant exposure to litigation pursuant to Subdivision (b): Number of potential cases: L 3. Conference with Real Property Negotiator pursuant to Section 54956.8 Property: Generally east of Highway 74 in an area known as Suncreek. Negotiating Parties: Agency: Carlos L. Ortega, RDA Executive Director Property Owner: Carl Cardinalli for property owner Westinghouse Desert Communities 7 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING OCTOBER 27, 1994 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * C. CHAIRMAN AND MEMBERS OF THE AGENCY None XI. ADJOURNMENT Upon motion by Crites, second by Benson, and unanimous vote of the Agency Board, Chairman Wilson adjourned the meeting at 8:25 p.m. ATTEST: ./i/ SHEILA R. GILLIGAN, SECRETARY TO THE PALM DESERT REDEVELOPMENT AGENCY 8