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HomeMy WebLinkAbout1999-03-11MINUTES REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING THURSDAY, MARCH 11, 1999 CIVIC Lrr 4 ILK COUNCIL CHAMBER * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * I. CALL TO ORDER Chairman Spiegel convened the meeting at 4:02 p.m. H. ROLL CALL Present: Member Jean M. Benson Vice Chairman Buford A. Crites arrived at 7:00 p.m. 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 Richard Folkers, ACM/Director of Public Works Phil Drell, Director of Community Development Paul S. Gibson, Director of Finance Rachelle D. Klassen, Deputy City Clerk III. CONSENT CALENDAR A. MINUTES of the Regular Meeting of the Redevelopment Agency of February 25, 1999, and the Adjourned Joint Meetings of the City Council/Redevelopment Agency of February 25, and February 26, 1999. Rec: Approve as presented. MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING MARCH 11,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * B. CLAIMS ANI1DEMANDS AGAINST THE AGENCY TREASURY - Warrant Nos. 41RDA, _ 42RDA, 41DR, 42DR, and 41PDHA. Rec: Approve as presented. C. PORTFOLIO MASTER SUMMARY for the Period Ending January 31, 1999. Rec: Receive and file. Upon a motion by Member Benson, second by Member Kelly, and 4-0 vote of the Redevelopment Agency Board with Vice Chairman Crites ABSENT, the Consent Calendar was approved as presented. IV. CONSENT ITEMS HELD OVER None V. RESOLUTIONS None VI. NEW BUSINESS A. REQUEST FOR APPROVAL OF MINIMUM IMPROVEMENT CERTIFICATE OF COMPLIANCE - MADISON REALTY PARTNERSHIP. Mr. Ortega stated the subject request involved the parking structure at the Gardens on El Paseo and the Agency's payment for the easement. Chairman Spiegel stated he understood that the upper level of the garage was not high enough to receive merchandise. Mr. David Yrigoyen, Redevelopment Agency Manager, stated a meeting was held Friday to review all the concerns and conditions with regards to Madison Realty. He added that Mr. Pat Conlon also attended that meeting with a list of concerns over the parking structure and entryway. He further added that Mr. Conlon was satisfied, after speaking with the representatives of Madison Realty, that those issues would be resolved, and consequently, Mr. Conlon signed off on the approval. Chairman Spiegel stated that Vice Chairman Crites had concerns for landscaping issues regarding planting around the upper level, drabness of the lower level, and concern for the turn that needed to be made as a person drove to the upper level. He added that without a mirror, someone would be broadsided on that turn. Mr. Yrigoyen stated the planning issues should be deferred to Mr. Drell, but the other the issues which were raised by Mr. Conlon were being attended to and finalized. 2 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING MARCH 11,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * — Member Ferguson asked why a Certificate of Compliance would be issued if Madison had not yet complied. Mr. Yrigoyen responded that essentially, the Certificate of Compliance was for minimum improvements as outlined in the Development and Disposition Agreement (DDA). The DDA identified improvements as constructing a structure of no less than 100,000 square feet, a 30,000 square foot Saks and parking, including an additional 200 parking spaces, noting that improvements were in accordance with the scope of the DDA. Member Ferguson stated the last time this was brought before the Agency Board, the Executive Director stated the Agency had contractual provisions that could be utilized to assure that the landscaping, turn radiuses, and other such items be addressed. He inquired what provisions were available to the Agency after a Certificate of Compliance was approved to assure compliance. Mr. Yrigoyen responded the results of the meeting held on Friday were that a meeting would be held by the Agency Board at the site so it could review the improvements and landscaping that had been installed by Madison Realty. Additionally, he said a request would be made of Madison to issue a check to the Agency in the amount of $75,000. Member Benson asked if the Certificate would release the $5,000,000 held by the Agency. Mr. Yrigoyen responded that it would be one factor towards the release, but did not release the money. He added they would also need a subordination provision from all the lenders on ._ the site, which Madison was still working on at this time. Member Ferguson stated that these concerns had been raised several times. He inquired if one person could give a short answer as to what contractual or legal leverage the Agency had to make sure Madison took care of the landscaping, the turn radiuses, etc., as mentioned by Chairman Spiegel. Mr. Ortega responded that Madison had assured Mr. Conlon that everything would be taken care of, as requested, except for the landscaping. He further added that the Agency Board previously stated that if a deposit was made by Madison to assure that the landscaping would be done, the $5,000,000 would not be held. Mr. Ortega stated that at the meeting last Saturday with Madison Realty, they were told the matter would be brought before the Agency Board today, and the $75,000 should be received by the Agency. He added that at present, a check had not been received, and he, therefore, recommended no action be taken. Member Ferguson moved to, by Minute Motion, take no action. Motion died for a lack of a second. Chairman Spiegel suggested that on the condition that the $75,000 check was received, the Agency approve the Certificate of Compliance. Member Ferguson stated he would like to get a written staff report on the contractual legal leverage to obtain compliance by Madison for the improvements requested, adding that the $75,000 would be for landscaping. Chairman Spiegel stated that although the money would be held for landscaping, he felt Madison Realty made a huge investment in the City and that the money should be released, less the $75,000. 3 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING MARCH 11,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Member Kelly stated that besides the landscaping, the other items were not costly and would be easily corrected. He added that the only problem he could foresee was the plants on top of the trellises and felt landscaping around the perimeter was a matter of personal taste— he thought it was better than most of what the City had done in other areas. He further added that the City should not criticize others, especially when it had not given the plants a chance to grow. Member Ferguson stated that it was $5,000,000 of the City's money, the City's parking structure, and it should be built to the way the Agency Board believed suitable to set a model for others. He added he was not criticizing Madison Realty, but the Agency Board had been told on numerous occasions by Madison that the work would be completed. He further added that he wanted to know the legal abilities to get the parking structure completed the way the Agency wanted to see it. Member Ferguson stated that things like this became incidental, but only if the Agency had that leverage. Chairman Spiegel stated he felt $75,000 was plenty of leverage. Member Benson suggested that when the check was received the Certificate would be signed, but not until. Mr. Ortega stated the only item to be turned in by Madison was the amount of $75,000 for landscaping. He said when the meeting ended, everything had been signed off on, including the list of corrections set out by the Building & Safety Department had set out. He further added that he had hoped the check would be received by now, but since it wasn't, the Agency Board could approve the Certificate of Compliance subject to the $75,000 deposit being made by Madison. Member Kelly moved to, by Minute Motion, approve the Certificate of Compliance, subject to a $75,000 deposit made by Madison Realty to the Agency Board. Motion died for a lack of a second. Member Ferguson stated that a motion had been made and seconded. Member Benson inquired as to whether that would include Member Ferguson's suggestion of a list of what would be done. Chairman Spiegel stated Member Ferguson's motion was to deny until the check was in hand. Member Ferguson responded that it was to continue the matter until the next Redevelopment Agency Meeting in order to receive a staff report on the legal ability to enforce the goals and objectives, and then approve it at that time. Member Ferguson moved to, by Minute Motion, continue the matter until March 25, 1999, and direct staff to submit a staff report with the Agency's legal ability to enforce the goals and objectives the Agency Board agreed upon. Motion was seconded by Member Benson and carried by a 3-1 vote with Chairman Spiegel voting NO and Vice Chairman Crites ABSENT. 4 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING MARCH 11, 1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * B. REQUEST FOR AUTHORIZATION FOR REDEVELOPMENT AGENCY EXECUTIVE DIRECTOR TO EXECUTE A RELEASE TO RIVERSIDE COUNTY FOR DAMAGE CAUSED TO AGENCY PROPERTY LOCATED AT 73-600 CATALINA WAY (CATALINA GARDENS). Member Benson moved to, by Minute Motion, authorize the Executive Director's execution of the release to Riverside County. Motion was seconded by Member Kelly and carried by a 4-0 vote with Vice Chairman Crites ABSENT. VII. CONTINUED BUSINESS A. REQUEST FOR APPROVAL, OF EXPENDITURES FOR LONG-TERM REMEDIES FOR WIND DAMAGE TO MOUNTAIN VIEW COURSE OF THE DESERT WILLOW GOLF RESORT (Continued from the meetings of January 28, February 11, and February 25, 1999). Member Ferguson moved to, by Minute Motion, continue the item to the meeting of March 25, 1999. Motion was seconded by Member Kelly and carried by a 4-0 vote with Vice Chairman Crites ABSENT. VIII. OLD BUSINESS — None IR. REPORTS, REMARKS, AND AGENCY BOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR Mr. Ortega reminded the Board to adjourn this meeting to an Adjourned Joint Meeting of the City Council/RDA Friday, March 12, 1999, at 8:30 a.m. for the purpose of discussing yivy:.rtn transactions. He also noted the items listed for Closed Session consideration at this meeting. B. AGENCY COUNSEL Mr. Erwin asked that the following item be added to Closed Session: Conference with Real Property Negotiator pursuant to Section 54956.8: 3) Property: 77-777 Country Club Drive Negotiating Parties: Agency: Carlos L. Ortega/Palm Desert Redevelopment Agency Property Owner: Associated Estates Realty Corporation Under Negotiation: L Price x Terms of Payment 5 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING MARCH 11,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Member Benson moved to, by Minute Motion, add the subject Closed Session consideration to the agenda. Motion was seconded by Member Kelly and carried by a 4-0 vote with Vice Chairman Crites ABSENT. Request for Closed Session: Conference with Real Property Negotiator pursuant to Section 54956.8: 1) Property: Land located in Section 4 - Desert Willow Negotiating Parties: Agency: Carlos L. Ortega/Palm Desert Redevelopment Agency Property Owner: Palm Desert Redevelopment Agency Under Negotiation: _IL Price x Terms of Payment 2) Property: Northeast Corner of Cook Street and Frank Sinatra Drive Negotiating Parties: Agency: Carlos L. Ortega/Palm Desert Redevelopment Agency Property Owner: Palm Desert Redevelopment Agency Under Negotiation: Price Terms of Payment Conference with Legal Counsel regarding existing litigation pursuant to Government Code Section 54956.9(a): a) City of Orange, et al. v. Alabama Treasury Advisory Program, et al., Los Angeles Superior Court Case No. BC106461. b) Stull v. Bank of America NT&SA, et al, Superior Court of the State of California, City and County of San Francisco, Case No. 968-484. C. CHAIRMAN AND MEMBERS OF THE AGENCY None Upon a motion by Member Kelly, second by Chairman Spiegel, and 4-0 vote of the Redevelopment Agency Board with Vice Chairman Crites ABSENT, Chairman Spiegel adjourned the meeting to Closed Session at 5:28 p.m. Vice Chairman Crites reconvened the meeting at 7:01 p.m. X. AWARDS, PRESENTATIONS, AND APPOINTMENTS None 6 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING MARCH 11,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * XI. PUBLIC HEARINGS None XH. ORAL COMMUNICATIONS DR. JAMES DE BOER, 73-010 El Paseo, Suite 1A, Palm Desert, addressed the City Council/Redevelopment Agency Board, stating he had been a Palm Desert resident for 14 years and that he operated Spine Institute of the Desert. He noted he'd been very philanthropically involved in the community throughout the years, a member of Palm Desert Rotary, active with Palm Desert High School, serving as team doctor for five years when the school first opened and starting kids' anti -drug programs. He said he had a great love for the community and had become very concerned about its preparation for the Year 2000 (Y2K) situation, which he had been studying intently since June 1998. Dr. de Boer said he had seen other cities begin to take a position on the problem with regard to education. He recommended the Palm Desert City Council form a Y2K task force to bring together key components of media-- printed, television, and radio-- and community opinion leaders to educate the public about the potential problems, but with some good common sense preparation, many of them could be mitigated. He felt the problem was quite complicated— at first glance it didn't appear so, but further investigation presented a unique situation. His major concern was the public's reaction to the problem, not just what would actually happen because of Y2K. He realized this was not a forum for discussion, just one to communicate his concerns, but he offered to answer any questions. Member Ferguson responded to Dr. de Boer's concerns, stating that several meetings ago the City formed a Technology Committee. He stated the Committee's first task would be to develop a public awareness program to inform residents where they could obtain information through the Internet about their software programs, hardware, chip sets, bios, how patches and upgrades could be obtained-- basically, how the public could perform a self -assessment in their own homes and businesses and to somewhat realistically debunk some of the inflated claims about what would happen while at the same time not minimizing legitimate concerns. He stated that the City was accepting applications for that committee and asked Dr. de Boer to apply if he was interested, or if he could recommend someone to serve in that capacity. DR. DE BOER replied he would be happy to assist. Member Benson commented that the City's Risk Manager had been working on the issue for quite a few months. Further, she stated that she and Mrs. Gilligan just returned from the National League of Cities Conference held in Washington, DC, where they obtained additional information on Y2K at the seminars there which they planned to put to good use in Palm Desert. DR. DE BOER noted that the issues he found discussed at a public level were the areas already addressed— handling of software issues at the business level and functions of utilities. He cautioned that the further one delved into the problem, one would see a fair potential for more than just a 7 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING MARCH 11,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * "hiccup" in the road. Therefore, he felt since the City of Palm Desert was considered a leader in the Coachella Valley, it should form a group which endorsed FEMA's position that every individual needed to be prepared with some extra food, water, and having their finances in order, it would go a long way towards the community's ability to get through such an interruption in basic services. Member Ferguson added that the Cove Commission, which he and Councilman Kelly served on and consisted of the Cities of Rancho Mirage, Indian Wells, and Palm Desert, initially formed a focus group to investigate Y2K, deferring to Palm Desert's Technology Committee Report. He expected that as was done with utility deregulation, a report of the findings would be issued to all three communities. Additionally, he said they discussed contacting the major banks, utilities, and telephone companies to let them know what the City had done individually by upgrading its mainframe computer system and the compliance checks put into place. He reiterated the City's interest in Dr. de Boer's participation on its Technology Committee. DR. DE BOER said that while he was very busy, he was very concerned about the issue and was getting together a group of people who would facilitate the process. He added they had launched a web site that should be up within a week, and he'd been requested to be interviewed by the media about the problem. Vice Chairman Crites commented that one of the potential benefits of the Y2K issue would be to remind citizens, especially in this area where earthquakes occurred, that a level of disaster preparedness should already be commonly practiced. He acknowledged the fact that this issue had some other ramifications of finance, etc., that weren't local, but global in scale if even the tiniest "hiccup" occurred at the turn of the millennium, and felt Dr. de Boer's point was well taken. He then directed Dr. de Boer to the City Clerk for providing his information for the committee. Mrs. Gilligan added to Member Benson's comments about information obtained at the National League of Cities Conference, stating that it would not only be December 31 at midnight, but that 2000 was a leap year with a February 29 date and whether or not computers would recognize the 366 days of 2000 rather than 365. 8 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING MARCH 11,1999 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * XIII. ADJOURNMENT Upon a motion by Member Ferguson, second by Member Benson, and 4-0 vote of the Redevelopment Agency Board with Chairman Spiegel ABSENT, Vice Chairman Crites adjourned the meeting at 7:22 p.m. to 8:30 a.m. Friday, March 12, 1999, for a Joint Meeting of the City Council/Redevelopment Agency for the purpose of conducting a 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: a Price Terms of Payment SHEILA R. GTL1 GAN, SARY TO THE PALM DESERT REDEVEL AGENCY 9