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HomeMy WebLinkAbout1999-01-14MINUTES REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING THURSDAY, JANUARY 14, 1999 CIVIC CENTER COUNCIL CHAMBER * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * I. CALL TO ORDER Chairman Spiegel convened the meeting at 4:00 p.m. H. ROLL CALL Present: Member Jean M. Benson Vice Chairman Buford A. Crites Member Jim Ferguson Member Richard S. Kelly Chairman Robert A. Spiegel Also Present: Ramon A. Diaz, City Manager David J. Erwin, City Attorney Sheila R. Gilligan, Director of Community Affairs/City Clerk Carlos L. Ortega, RDA Executive Director John M. Wohlmuth, ACM/Director of Administrative Services Patrick Conlon, Director of Building & Safety Phil Drell, Director of Community Development Paul S. Gibson, Director of Finance/City Treasurer Gregg Holtz, Engineering Manager Teresa LaRocca, RDA Housing Manager Rachelle D. Klassen, Deputy City Clerk III. CONSENT CALENDAR A. MINUTES of the Regular Meetings of the Redevelopment Agency of December 10 and December 24, 1998. Rec: Approve as presented. MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 14, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * B. CLAIMS AND DEMANDS AGAINST THE AGENCY TREASURY - Warrant Nos. 29RDA, 30RDA, 31RDA, 32RDA, 33RDA, 31DR, 32DR, 30PDHA, 31PDHA, and 32PDHA. Rec: Approve as presented. C. PORTFOLIO MASTER SUMMARY for the Period Ending November 30, 1998. Rec: Receive and file. Upon a motion by Ferguson, second by Spiegel, and unanimous vote of the Redevelopment Agency Board, the Consent Calendar was approved as presented. IV. CONSENT ITEMS HELD OVER None V. RESOLUTIONS None VI. NEW BUSINESS A. REQUEST FOR AUTHORIZATION TO PURCHASE PROPERTY KNOWN AS ASSESSOR'S PARCEL NUMBER (APN) 627-222-043-6. Member Kelly moved to, by Minute Motion, authorize staff to negotiate the purchase of property known as APN 627-222-043-6 from the County of Riverside Treasurer/Tax Collector for an amount not to exceed $55,259.15 and appropriate same from the Agency's Unobligated Funds. Motion was seconded by Crites and carried by unanimous vote. VII. CONTINUED BUSINESS None VHI. OLD BUSINESS None IX. REPORTS, REMARKS, AND AGENCY BOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR Mr. Ortega noted the item for Closed Session consideration. 2 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 14, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * B. AGENCY COUNSEL Request for Closed Session: Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: Land located in Section 4 - Desert Willow Negotiating Parties: Agency: Carlos L. Ortega/Dave Yrigoyen Property Owner: Palm Desert Redevelopment Agency Under Negotiation: Price Terms of Payment C. CHAIRMAN AND MEMBERS OF THE AGENCY Upon motion by Crites, second by Ferguson, and unanimous vote of the Agency Board, Chairman Spiegel adjourned the meeting to Closed Session at 5:12 p.m. He reconvened the meeting at 7:02 p.m. X. AWARDS, PRESENTATIONS, AND APPOINTMENTS None XI. PUBLIC HEARINGS A. REOUEST FOR APPROVAL OF DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE PALM DESERT REDEVELOPMENT AGENCY AND TIMOTHY BARTLETT AND THE SUMMARY REPORT (JOINT PUBLIC HEARING WITH THE PALM DESERT CITY COUNCIL). Mr. Dennis Coleman, RDA Finance Manager, explained that the proposed sale price of the property was $174,857, or $5.99 per square foot, which was considered to be the highest price given the use of the property with the conditions to be imposed on the buyer, Timothy Bartlett. He stated that the property would be the site of a 4,500 square foot Nevada Bob's store, with Mr. Bartlett entering into ten year lease with Leisurequip. He noted that the main conditions imposed would be public improvements: 1) Building of at least 24 additional parking spaces beyond the requirement for the retail development to be used for public parking; 2) landscaping sufficient for a park -like setting; 3) construction of a bus shelter on the property adjacent to Highway 111, with the developer responsible for the maintenance of improvements and for providing a public parking easement to the City for public use of the 24 additional spaces. Additionally, as a part of the conditions of the agreement, he said the City would have the right to approve any new tenants should Nevada Bob's choose not to renew the lease. He pointed out that the subject project had not yet been before the Architectural Review Commission (ARC), nor the Art In Public Places Commission (AIPP), and that the project required approval either 3 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 14, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * of the Planning Director, if found to be in substantial compliance with the previously approved — site plan, or it would require Planning Commission approval. Upon question by Councilman/Member Kelly whether the tenant would maintain the bus shelter, Mr. Coleman said he was unsure whether the developer had imposed this condition on the tenant, but the developer was responsible for maintaining the bus shelter. Councilman Kelly was pleased to hear this since it meant there would not have to be advertising to pay for its maintenance. Mayor Pro-Tempore/Vice Chairman Crites asked how much the Agency initially paid for the property. Mr. Ortega responded that with the existing bank building on it, the cost was just over $800,000, or $29.71 per square foot, approximately 16 years ago. Mr. Coleman noted that when purchased, the property was the site of a bank building which had since been demolished. He added that part of the property was utilized to make room for right- hand turn improvements, and part of the consideration when arriving at the $5.99 per square foot price was the fact that the developer had to construct the additional 24 spaces, landscaping, and bus shelter with 30 years of maintenance, costs all taken at a net present value. Mayor Pro-Tempore/Vice Chairman Crites expressed his concern that a developer was always required to landscape a project. Mr. Coleman responded that it was not always a development requirement to provide more landscaping than the standard. Mayor Pro-Tempore/Vice Chairman Crites added that the putting green was a business issue, not landscaping. He further questioned how staff would know that the proposed landscaping was more than ARC required when it had not yet received this consideration. Mr. Coleman deferred this response to Mr. Bartlett. Councilman/Member Ferguson asked whether the developer placed the park on the corner for business reasons, or because the City encouraged it as a benefit to the City. Mr. Coleman replied he understood the City encouraged it for the setting, realizing that it couldn't hurt the retail aspect. Mr. Coleman added he understood the developer was utilizing real grass instead of artificial turf. Upon question by Mayor Pro-Tempore/Vice Chairman Crites as to why the Iand should beisold instead of acquiring a tenant, Mr. Ortega said that after analyzing the situation, the fait use value and the ultimate price, even if it was leased at a high percentage (10%), it resulted in some $17,000 worth of lease payments per year. He said staff felt that even if acceptable to the developer, the effort to set up an accounting mechanism and other such details to collect this amount would cost more than selling the property outright. Mayor Pro-Tempore/Vice Chairman Crites stated he felt uncomfortable considering such a project without its first being considered by the appropriate commissions (i.e. Planning 4 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 14, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *, * Commission, ARC, and AIPP). He said if approved by the Council/Agency Board, the project would probably not receive a negative response from the aforementioned bodies. He requested staff keep this in mind for future such issues. Councilman/Member Ferguson recalled that this issue was brought to Council for conceptual approval last August, or before, to which the Council said it would entertain such a proposal; and he felt the same conceptual approval was being requested at this meeting for a park, a bus shelter, dedicated public parking, and a very small retail use. However, he said now it was again before the Council without the approval of any other City entity. Mr. Drell responded that while the subject plans had just been revealed to staff, a very similar plan with a conditional use permit had been approved two or three years ago. Councilman/Member Kelly added he felt there was some indication that if the subject type of project was approved, the City would be asked whether it would sell. Mayor/Chairman Spiegel declared the public hearing men for testimony regarding the matter. MR. TIMOTHY BARTLETT, 73-382 Salt Cedar, Palm Desert, addressed the timing issue, admitting it was unfair that the project had not obtained ARC approval prior to Council/Agency Board consideration. He stated that his architect, Frank Urrutia, had been unable to work on —` the project for the last month, which affected its submittal to the appropriate bodies that he would have normally done. He felt that both Mr. Urrutia and his landscape designer, Mr. Wayne Conner, were well respected by City officials and had provided a plan worthy of approval, pointing out that he still intended to obtain formal ARC approval. He noted that he had been attempting to work something on this property for seven years, restaurant tenants and other uses of even higher intensity generating more income, but he was under the impression that the City wanted a low impact, low traffic use, a park -like setting, and additional parking, which this project delivered. He felt this project represented the essence of Palm Desert-- golf, retail, and a country club setting. Regarding the putting green and its relation to a business decision, he stated it wasn't, adding that if landscaping was preferred, he was more than happy to do so based upon the serious maintenance involved with a putting green. He noted that the project would contain 79 trees, representing 47% of the site, and desert -oriented plants-- a slice of Desert Willow on a Palm Desert commercial corner. Upon question from Mayor/Chairman Spiegel regarding why the project didn't first go before the Planning Commission, Mr. Drell stated there was already an approved conditional use permit on the property for a 3,900 square foot restaurant. He added the approval was considered still to be valid without further Planning Commission approval, as long as the site plan submitted was substantially similar to the previous approval; therefore, the issue was not a land use issue but a design issue. Mayor Pro-Tempore/Vice Chairman Crites accepted the explanation; however, he suggested that if the project was placed on the next Planning Commission agenda for its review, his 5 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 14, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * comfort level would be raised. He felt that since this represented the City doing business with itself, it called for a higher standard. The Council/Agency Board concurred. Councilman/Member Ferguson noted that the City was the initial applicant for the conditional use permit. Upon question by Councilmember/Member Benson regarding the location of parking and its relation to the adjacent alley, Mr. Bartlett responded that he was dedicating four feet of land to the City for alley widening, in addition to the previously approved improvement project for it. He added that Circle K was also planning a remodeling job, similar to that which they completed on their Thousand Palms store. Mayor/Chairman Spiegel declared the public hearing closed. Councilman/Member Kelly asked for clarification whether the approval being sought was for that of selling the property with the project as planned subject to receiving appropriate approvals after the sale. Mr. Erwin noted a condition of the agreement specified the project was subject to other approvals, Architectural Review Commission, Planning Commission, Art In Public Places Commission, as well as the City Council/Agency Board. Councilman/Member Kelly expressed his pleasure with the project designed by Mr. Bartlett, including the putting green, bus shelter, and extra parking, turning the corner into a real asset. He said that while he had favored holding onto the property and utilizing it half for parking, half for a park, he understood that in this case it was more practical to sell. Councilmember/Member Benson echoed these sentiments and praised the project's uniqueness. Councilman/Member Ferguson concurred, noting his satisfaction with the developer's proposal to widen the alley and felt confident the necessary approvals would be obtained for the project. Mayor Pro-Tempore/Vice Chairman Crites said he appreciated the desert landscaping and the project's overall design, concurring with Councilman/Member Kelly that he too originally wanted to keep the property. Mayor/Chairman Spiegel felt the current site was an eyesore which did not reflect well on the City, and he would be glad to see a project of this caliber there. Councilman/Member Kelly moved to: 1) Waive further reading and adopt City Council Resolution No 99-6, approving the sale by the Palm Desert Redevelopment Agency to Timothy Bartlett of approximately 0.67 acres of real property on the southeast corner of Portola Avenue and Highway 111; and 2) waive further reading and adopt Redevelopment Agency Board adopt Resolution No. 366, approving the sale to Timothy Bartlett of approximately 0.67 acres of real property on the southeast corner of Portola Avenue and Highway 111. Motion was seconded by Crites and carried by unanimous vote. XII. ORAL COMMUNICATIONS None 6 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 14, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * XIII. ADJOURNMENT Upon a motion by Ferguson, second by Benson and unanimous vote of the City Council, Mayor Spiegel adjourned the meeting at 7:44 p.m. ATTEST: /SHEILA R. IGAN, S RETARY TO THE PALM DESERT REDEV�•PMENT AGENCY ROBERT A. SPIE6CIAIRMAN 7