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HomeMy WebLinkAbout2001-06-28MINUTES REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING THURSDAY, JUNE 28, 2001 CIVIC CENTER COUNCIL CHAMBER I. CALL TO ORDER Vice Chairman Kelly convened the meeting at 4:00 p.m. II. PLEDGE OF ALLEGIANCE - Member Robert A. Spiegel III. INVOCATION - Vice Chairman Richard S. Kelly IV. ROLL CALL Present: Member Jean M. Benson arrived at 5:11 p.m. Member Buford A. Crites Member Robert A. Spiegel Vice Chairman Richard S. Kelly Excused Absence: Chairman Jim Ferguson Also Present: Carlos L. Ortega, City Manager/RDA Executive Director David J. Erwin, City Attorney Sheila R. Gilligan, ACM for Community Service/City Clerk Richard J. Folkers, ACM for Development Services Homer Croy, Director of Building & Safety Phil Drell, Director of Community Development Paul S. Gibson, Director of Finance/City Treasurer Teresa La Rocca, Director of Housing Martin Pinon, Director of Human Resources Joseph S. Gaugush, Director of Public Works/City Engineer David Yrigoyen, Director of Redevelopment Rachelle D. Klassen, Deputy City Clerk With Agency Board concurrence, Vice Chairman Kelly took up City Council Meeting Agenda Item XII - B. - City Manager Reports at this time. Please see the City Council Meeting Minutes for discussion and action. V. ORAL COMMUNICATIONS MR. ROBERT RICCIARDI, 75-090 St. Charles Place, Suite A, Palm Desert, addressed the Council regarding a project he'd had before the Architectural Review MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 28, 2001 Commission where the landscaping plan was of concern. He asked that if the City Council intended to amend its ordinance for landscaping that it not totally rule out grass and allow a reasonable amount of 25-30%. Secondly, he asked that if water allocation regulations were to be considered, they should be left to the Coachella Valley Water District for adoption and not the City. MR. ROD JOHNSON, 150 Vista Paseo, Palm Desert, asked about the Palms to Pines Center, its depressed state and what, if any, information the City had on its future. Councilman Spiegel stated that he was aware of plans to remodel Palms to Pines East that had been approved; however, he said he would turn Mr. Johnson's questions over to Phil Drell, Director of Community Development. VI. AWARDS, PRESENTATIONS, AND APPOINTMENTS None VII. CONSENT CALENDAR A. MINUTES of the Regular Meeting of the Redevelopment Agency of June 14, 2001, and the Special Joint Meeting of the City Council and Redevelopment Agency of June 8, 2001. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE AGENCY TREASURY - Warrant Nos. 103RDA, 104RDA, 105RDA, 106RDA, 108RDA, 103-Housing, 106-Housing, 108-Housing, and 103HA. Rec: Approve as presented. C. REQUEST FOR RATIFICATION of Additional Expenditures for Traffic Impact Study for 40-Acre Site on 42nd and Merle Avenue (Contract No. R18780). Rec: By Minute Motion, ratify additional expenditures incurred in the amount of $3,013 for additional engineering services in connection with the subject contract with Endo Engineering, Laguna Niguel, California. Upon motion by Spiegel, second by Crites, the Consent Calendar was approved as presented by a 3-0 vote, with Member Benson and Chairman Ferguson ABSENT. 2 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 28, 2001 VIII. CONSENT ITEMS HELD OVER None IX. RESOLUTIONS None X. NEW BUSINESS A. REQUEST FOR AWARD OF CONTRACT FOR REAL ESTATE ANALYSIS CONSULTING (CONTRACT NO. C16282). Mr. Ortega noted the staff report in the packets. Member Crites moved to, by Minute Motion, award the subject contract to REASCO, Palm Desert, California, in an amount not to exceed $60,000 for Fiscal Year 2001/02. Motion was seconded by Spiegel and carried by a 3-0 vote, with Member Benson and Chairman Ferguson ABSENT. B. REQUEST FOR AWARD OF CONTRACT FOR ARCHITECTURAL SERVICES FOR DESIGN OF A 20-UNIT APARTMENT COMPLEX (CONTRACT NO. R19060). Mr. Ortega stated this was part of the Agency's effort to create more housing. Member Spiegel stated that at one time, the City was looking to acquire the land adjacent to this complex, and he asked for the status. Mr. Ortega responded that at this time, staff was not able to negotiate an acceptable price. Upon further question from Member Spiegel relative to the owner of that land cleaning up the property, Housing Manager Teresa LaRocca stated that the land was currently vacant. Although the owner had the land cleaned some time last year, she did not believe it had been done yet this year. Member Spiegel asked why the architectural services were not put out to bid, and Ms. LaRocca responded that staff requested proposals and received two or three. She said a team of staff members analyzed each of the proposals and made the recommendation. Member Spiegel moved to, by Minute Motion: 1) Award the subject contract to Robbins Jorgensen Christopher, San Diego, California, in an amount not to exceed 3 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 28, 2001 $140,675 for a 20-unit apartment complex located at 73610 - 73645 Santa Rosa Way; 2) authorize the Chairman to execute same. Motion was seconded by Crites and carried by a 3-0 vote, with Member Benson and Chairman Ferguson ABSENT. XI. CONTINUED BUSINESS None XII. OLD BUSINESS A. REQUEST FOR APPROPRIATION OF FUNDS FOR LAND PURCHASE. Mr. Ortega noted that this was a housekeeping item. He said the Agency Board had authorized the purchase of the land, and staff was requesting appropriation of the funds in order to balance the books. Member Crites moved to, by Minute Motion, approve an appropriation of $1,020,000 for the purchase of the Shapiro property authorized in October 2000. Motion was seconded by Spiegel and carried by a 3-0 vote, with Member Benson and Chairman Ferguson ABSENT. Member Benson arrived at 5:11 p.m. XIII. PUBLIC HEARINGS A. CONSIDERATION OF THE ADOPTION OF THE CITY MANAGER'S AND EXECUTIVE DIRECTOR'S FINANCIAL PLAN FOR FISCAL YEAR 2001/02 (JOINT CONSIDERATION WITH THE PALM DESERT CITYCOUNCILAND PALM DESERT HOUSING AUTHORITY). Mr. Ortega noted that a Study Session had been held to review the budgets. He said staff was now prepared to present the budgets to the Council/Agency Board/Housing Authority Board for formal adoption. Finance Director Paul Gibson reviewed the following items brought up during Budget Study Session, including Shopper Hopper cost clarifications, Parks and Recreation Intern salary, and proposed schedule on filling positions of Assistant City Manager and Assistant to City Manager. He noted that the Council was provided memorandums that addressed these areas. He said approval of the Budget would include these areas of concern as well. Mr. Gibson noted that each year during the Budget process, there are a number of capital projects approved by Council between the time when the 4 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 28, 2001 Budget book is put together and June 30t. This year, there were several projects that affected the carryover capital projects and/or new projects. In adopting this Budget, the Council/Agency/Authority would be going back to the City Clerk with a revised list of those capital projects. He also noted that with regard to the Salary Table, a number of new positions were being requested. Upon adoption of the Budget, those new positions would be added to the Salary Table. Councilman/Member Crites stated that he felt staff had done an excellent job in terms of preparation of this Budget. Councilman/Member Spiegel added that he had been asked to speak about the City's Budget at a retreat that the Palm Desert Chamber of Commerce was holding this coming weekend. Mayor Pro-TemNice Chairman Kelly declared the public hearing open and invited testimony in FAVOR of or in OPPOSITION to this request. With no testimony offered, he declared the public hearing closed. Councilman/Member Spiegel moved to waive further reading and adopt: 1) City Council Resolution No. 01-78, adopting a program and financial plan for the Fiscal Year July 1, 2001, through June 30, 2002; 2) City Council Resolution No. 01-79, establishing the appropriations limit for the 2001/02 Fiscal Year; 3) Redevelopment Agency Resolution No. 419, adopting a program and financial plan for the Fiscal Year July 1, 2001, through June 30, 2002; 4) Housing Authority Resolution No. HA-15, adopting a program and financial plan for the Fiscal Year July 1, 2001, through June 30, 2002; 5) City Council Resolution No. 01-80, amending Resolution No. 00-73, "Exhibit 'A"' Salary Schedule, Salary Ranges, and Allocated Classifications for the period of July 1, 2001, through June 30, 2002. (Note: This is the preliminary salary table and does not include the new positions or reclassifications that the City Manager will be recommending. These positions will be included in the Salary Schedule, Salary Ranges, and Allocated Classifications upon their approval.) Motion was seconded by Crites and carried by a 4-0 vote, with Mayor/Chairman Ferguson ABSENT. B. REQUEST FOR APPROVAL OF PAYMENT FOR ALL OR PART OF THE COST OF THE INSTALLATION AND CONSTRUCTION OF A PUBLICLY OWNED REGIONAL PARK AND RELATED FACILITIES AND IMPROVEMENTS (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). Mr. Ortega stated that this would allow the Agency to reimburse the City for those expenses that will be incurred in the purchase of the land and improvements for the park discussed earlier in the meeting. 5 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 28, 2001 Mayor Pro-TemNice Chairman Kelly declared the public hearing open and invited testimony in FAVOR of or in OPPOSITION to this request. With no testimony offered, he declared the public hearing closed. Councilman/Member Spiegel moved to waive further reading and adopt: 1) City Council Resolution No. 01-81, approving payment by the Palm Desert Redevelopment Agency for all or part of the cost of the installation and construction of a publicly owned regional park and related facilities and improvements; 2) Redevelopment Agency Resolution No. 420, authorizing payment by the Agency for all or part of the cost of the installation and construction of a publicly owned regional park and related facilities and improvements. Motion was seconded by Crites and carried by a 4-0 vote, with Mayor/Chairman Ferguson ABSENT. C. CONSIDERATION OF LEASE OF PROPERTY BY THE PALM DESERT REDEVELOPMENT AGENCY FROM AND TO FRIENDS OF THE CULTURAL CENTER, INC., FOR OPERATION AND MAINTENANCE OF A PERFORMING ARTS CENTER (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). With Council/Agency Board concurrence, Mayor Pro-TemNice Chairman Kelly continued this matter until 7:00 p.m. because representatives of the McCallum Theatre would be in attendance at that time. The following is a verbatim transcript of this portion of the meeting: Key RSK Mayor Pro-TemNice Chairman Richard S. Kelly CLO City Manager Carlos Ortega DY Dave Yrigoyen RDK Deputy City Clerk Rachelle D. Klassen BAC Councilman/Member Buford A. Crites RAS Councilman/Member Robert A. Spiegel JMB Councilmember/Member Jean M. Benson DJE City Attorney David J. Erwin TG Ted Giatis, CEO of the McCallum Theatre RSK First item is a public hearing on consideration of a lease of property by the Palm Desert Redevelopment Agency from The Friends of the Cultural Center, Inc. CLO Mr. Chairman, we do have a staff report, and we have to make certain announcements for the record. Dave will do so. 6 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 28, 2001 DY In order not to miss any points, I am going to read from a text. This is a joint public hearing of the Agency and the City Council pursuant to Section 33433 of the Health and Safety Code, which has been duly noticed and advertised, providing for consideration of a DDA between the Agency and the McCallum Theatre Foundation, Friends of the Cultural Center, and the College of the Desert. Under the DDA, the project requires the Agency to lease certain building improvements from the Center, lease certain real property on which the improvements are located from the College, sublease the improvements in the property to the Center under a sublease for the operation and maintenance of the cultural and performing arts center for the term expiring March 1, 2049, at a rent of $1 per year, which reflects the fair reuse value at the conditions and restrictions required under the sublease. The Center agrees to use the building and the property to provide performing arts programs to the public, opportunities for youth to learn about and have access to the arts, a facility for college to present high -quality student performances, a training venue for students pursuing careers in technical theater, and a place for special events for the community and civic organizations. The Agency will make a prepaid rent payment in the amount of $5 million to be held in escrow, in an escrow account, for the term of the lease. Amounts on deposit in the account may be withdrawn by the Center on an annual basis during the term of the sublease in an amount equal to the interest contained in the account plus an amount equal to 2.0833% of the lease payment and shall be used only for the continued operations and maintenance of the building and property. Certain conditions will be required to close escrow. By July 31, 2001, the Foundation and the Center agree to have an endowment fund balance of at least $5.1 million in cash and pledges enforceable by law of $6.2 million, exclusive of the amounts paid by the Agency pursuant to the DDA. By July 31, 2001, the following payments have been received and the following debts of the Center have been retired: 1) The Annenberg Foundation has contributed $2.5 million to the Center. The loan due the Berger Foundation in the principal amount of $2.5 million has been paid. The Berger Foundation has contributed $2.5 million to the Center. The loan due to the City in the principal amount of $500,000 has been paid, and the loan due to the Foundation in the principal amount of $450,000 has been paid. The Center shall appoint a member of the City Council to the Board of Directors of the Center with full voting rights. The Foundation shall appoint the City Manager or his designee to the Board of Directors of the Foundation with full voting rights. They shall establish and maintain a reserve account sufficient to pay for the necessary deferred and future repairs in the amount of $100,000. Beginning in the calendar year 2002 and continuing until the termination of the sublease, the Center agrees to either raise sufficient funds or otherwise have funds available to adequately cover future operating shortfalls. The Executive Director...this 7 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 28, 2001 is final...finally, the Executive Director shall have approval of all financing commitments and equity commitments to confirm that there are sufficient commitments to maintain and operate the project. That's the extent of the staff report. If there are any questions, I would be happy to answer them. RSK Any questions? I'm not sure...I need to ask the City Clerk something. I had a blue card here, and I can't remember if it was for this subject or another subject. Somebody must have picked it up. RDK Let me check. RSK It was not a skate blue card. Oh, I know. I remember, it was the Homme Park. RDK Yes. RSK Okay. If it's there, you might get it back for me. BAC Under the previous agreement, if the Theatre is in default or closes or whatever, the College ends up as the recipient. Is that still true? DY No, it would be...this would be a sublease of the Agency and the City to the McCallum Theatre. If they close their doors, it falls back on us, and we have acquired the ground lease from the College. RSK I think the answer to your question...who winds up with it if it was a default and they decided to chuck the whole thing. DY If the McCallum Theatre... RSK If the folks in charge of the McCallum Theatre for some reason or other decide to chuck the whole thing, who would wind up with it? DY We would. They default on their sublease with us. RSK That's the part I don't like. BAC And if we so decided we did not wish to have it, then it goes to the College? DY That would be a question for the College. We would still have a lease with them. We would assume...we would assume the existing ground lease with them. 8 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 28, 2001 BAC But the existing ground lease eventually ends up with the happy prospect of the College... DY That is correct. BAC ...and I want to make sure...is that still true, then? DY We would have to default. We would continue to have the ground lease until the expiration of its term to 2049. BAC But if we so chose... RAS Mr. Yrigoyen, is there any way it can be written so that we would be second and the College would be first if the Theatre went into default? CLO I suggest that the representative of the College explain to you that lease and what the provisions of that lease are because that lease does contain provisions for, in that event, for the proceeds that are left to go to the College. BAC Right. CLO With regard to the money that we're putting in, remember it's only earned on a yearly basis. My understanding of that particular payment that we're making is that in that event, whatever is left of that money comes back to us. RAS But not the property. CLO Well, we still have the sublease of the property. In essence, it's between us and the College to then decide the disposition of the property. BAC But we would have the ability then to hand that right to the College. CLO Yes. BAC Okay, that's what I'm...bottom line, it's still theirs. DY Yes, we will have a ground lease with the College, and here it is, it's yours. BAC Okay. Thank you. RSK Are there questions from Council? 9 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 28, 2001 BAC One other quick one. On page 14 of the DDA, it talks about operation of the project, and it notes that in terms of community events, that a special place for community and civic organizations all at a level substantially equivalent to the Center's existing programs. DY Yes. BAC That sounds as if that's the expectation. At least in my mind, the existing commitments are the minimum expectation. DY And there is an amended ground lease between the College and the McCallum that they have just gotten through negotiating. BAC Right, and 1 don't care if that's the College's business, but in terms of the community, it seems to me that that section should note that the substantially equivalent to the Center's existing programs is the minimum. DY That is correct. BAC This sounds like it's both the minimum and the maximum. JMB Where are you reading from? BAC On page 14, Section 3.3, under V. The Center agrees to provide... JMB 3.3? BAC 3.3, and if you go down... JMB Oh, a place for special events? BAC Right. All at a level substantially equivalent to the Center's existing programs, etc., etc., etc. I don't have a problem with that. I just want to make sure that it's understood that that commitment is the minimum commitment. DY And we can amend the DDA to make sure that that occurs. BAC Okay. Alright. I know that's a small issue, but it just to me should be clarified. RAS Mr. Erwin, have you reviewed this Disposition and Development Agreement? 10 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 28, 2001 DJE No, sir. DY That was done with our attorneys Richards Watson. RAS I understand. Just a question. RSK Any other questions? Does that conclude the staff report? DY That is correct. RSK I'll open the public hearing. Would anyone like to speak to this item? Give your name and address for the record. TG I'm Ted Giatis. I'm the present CEO of the McCallum Theatre for the Performing Arts, 73-000 Fred Waring Drive. Mayor Pro-Tem Kelly, Councilmembers, good evening. In January the McCallum Theatre came and asked you for support to help stabilize the chronic deficit problem, one that has plagued the Theatre since its opening. At that time, you asked City staff to explore ways of helping the McCallum. Also at that time, you asked that the City not be the only one to shoulder this responsibility and asked the Theatre to raise $2 for every $1 of City funding. In addition, there were a number of other criteria to be met by the Theatre to enhance its role as a true community performing arts venue. On behalf of the McCallum Theatre, I am pleased to stand before you and tell you that the McCallum Theatre has either met or is prepared to meet the criteria and has raised over $11 million in cash and pledges, $5 million from two foundations and $6 million directly from the Board of Trustees, thus meeting the financial challenge. I'd like to thank you Councilmembers, the City of Palm Desert, the City Manager Carlos Ortega, and Executive Director David Yrigoyen of the Redevelopment Agency, for your vision and help in bringing us to this juncture. I would also like to thank the Board of Trustees of the College of the Desert and especially Dr. William Kroonen and his staff for assisting with their diligence and cooperation to make this process for us a possibility. And lastly, but not least of all, I'd like to thank the over 325 new Friends of the Center who through our campaign have given in contribution sizes $5 to $1,500 for a total of $48,000 to invest toward the Center, which is truly in my estimation a solid investment in the McCallum Theatre from the local community. On behalf of the McCallum Theatre, I want to thank you for your kind consideration and support of our community theatre. Thank you. RSK Anyone else like to speak? Seeing no one, I'II close the public hearing and ask for Council's direction. 11 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 28, 2001 RAS TG As soon as I put my button on. It's not unique for a city to help a cultural activity that brings tourists to its city. I have an article in front of me from the Los Angeles Times addressing the aquarium in Long Beach. As you know, they had the Queen Mary and they lost the Spruce Goose and they built an aquarium. And I'd like to read just two paragraphs: "The Long Beach Aquarium, a key part of the City's waterfront revival, will not be able to make its $8.5 million bond payment this year unless it can reduce expenses and increase visitors, financial reports revealed Thursday. If the Aquarium of the Pacific cannot meet its obligations, the City of Long Beach has pledged to help the two and a half year old attraction pay the principal and interest on almost $115 million in bonds sold to investors." Secondly, in my opinion, there are three major cultural facilities in our Valley. One is the Museum in Palm Springs, one is The Living Desert, and one is the McCallum Theatre. And to see any of those go under would not only be a detriment to the City of Palm Desert but the entire Valley. That said, the Museum, which I guess is the oldest, has been able to do a pretty good job without the help of the City of Palm Springs in keeping afloat and in growing. They have an annual budget, as I understand, of about $2 million a year. They have an endowment in excess of $9 million. They receive from that endowment about $600,000 a year, and in order to stay afloat, because obviously the fee that you pay to go to the Museum does not pay for the Museum, they're able to raise $1.4 million. And consequently, they grow and they go forward, and they do it by coming to the City of Palm Desert and asking us to help for a major exhibit that they're going to have, etc. The Living Desert sells animals. I don't think you have any animals to sell, but they sell animals, take care of animals, and they do a pretty good job. I am certainly in favor of supporting the $5 million, but I don't want to become an Escondido, and by that I mean the City of Escondido, when they built their Civic Center, they also built a theater much the size of the McCallum adjacent to their Civic Center. And it costs the City of Escondido in excess of $1 million year in and year out from here to eternity to maintain that theater. I would like to be assured in some way that this isn't going to happen at the McCallum, that with this stipend, and it's obviously more than a stipend, with this stipend, the Theatre then will be going in the right direction and won't be coming back every year for major amounts of money. I'm not talking about the summer performances that we help you out with, etc. But you know what I'm talking about, Ted. Would you like to address that? Part of the strategy that we developed, and we looked at this over the last two years, looking at out situation, it seemed to me, and I've been at the Theatre for not quite two years, that the chronic problem was a result of just trying to meet the operating deficits but not enough attention was placed on building endowment. And so the funding plan that we put together had two 12 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 28, 2001 very important pieces, the retirement of the debt and then the building of the endowment. And so we had envisioned over about a three-year period of time of having an initial thrust for the endowment and debt reduction of about $15 million, and over a five-year period $25 million. The hope was to establish a $10 million endowment so that the income coming off of that will take care of the deficits. And the Theatre's had a good history of raising about $1 to $1.5 million a year in unearned income. The shortfall has been about $1 million. We've needed, really, to raise about $2.5 million. What we have planned to do under our current funding vision, if you will, is by the time we eliminate our debt, which is $2.5 million to the Berger Foundation, $500,000 to the City and also paying back our endowment that some years ago had been invaded, we will reduce our sort of carrying costs for that debt by about $400,000/$500,000 a year. Then when we turn around and have a $10 million endowment, which conservatively hopefully will spin off about $600,000, we will then have $1 million in savings over where we are now, which will take the $2.5 million deficit down to a very manageable $1.5 million. So, for me, and I believe the Board as well, the secret really lies in establishing the endowment. So, currently, we have pledges, as I said, from two foundations totaling $5 million, we have $6 million from our Board, that's two pieces, sort of, legs on the stool, and the third piece we're hoping $5 million will be from the City, which will take us to where we need to be. RAS While you're up here, are you planning on any other requests to any of our sister cities? TG Yes, sir. In fact, I and members of my Board, not all but some of them, we have sat down with each of the Councilmembers of the City of Rancho Mirage, we've sat down with several of the Councilmembers over at Indian Wells. And I can't speak for Rancho Mirage, but I will say that Indian Wells said as soon as Palm Desert commits, then they would be willing to talk to us further on this. And I want to stress that in about a year's time, we, I feel, will be able to raise $15 million instead of a three-year period, and I feel confident that the $25 million target or goal could be accomplished in about two to three years from this point. RAS Thank you. I've got one last comment. I happen to be the Council Liaison to the Palm Desert Chamber of Commerce, and I brought this to them at their last meeting and said to them basically what I've said to you this evening. And 100% they endorsed the City supporting the McCallum, particularly the fellow that runs Hacienda de Monterey because he said that this is one his chief marketing ploys is to use the McCallum Theatre. So, that said, that's my comments. 13 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 28, 2001 JMB I might just add in response to what you asked, Bob, also having been the Liaison to the McCallum over the years and kind of the saying goes 'God helps those that help themselves." And that was kind of the philosophy that the Board took when they were raising the money, and a lot of people came forward and said you get this cleaned up and have a clean slate and go forward, there'll be more money coming in. So I think Ted is right in that I think it will grow faster once it's on a clean slate and going forward. RSK What's the Council's pleasure? BAC I would move to approve the staff recommendation with the minor amendment in Section 3.3 of the DDA and also noting that I think from previous discussions that we have a disagreement in terms of whether or not we should have, as a City, voting membership on the actual Board of Directors and the Foundation Board of Directors. I would also, then, move to continue Section 3.1.4 and 3.1.5, just simply having to do with membership, to our meeting in July, but to approve the remainder of the DDA this evening. RAS I would second that. RSK It's been moved and seconded. Would you please vote. RDK The motion carries by unanimous vote, 4-0. BAC Well, I think congratulations are in order to a whole lot of people in this room who now need to go out and get to those second and third jobs you've had to take in order to make your pledges. RSK We appreciate you all being here, but we need to hold up a second while you all are able to leave, not that you're not welcome to stay and participate in the rest of the Council meeting. Note: The action was to waive further reading and adopt: 1) City Council Resolution No. 01-82, approving the lease of property by the Palm Desert Redevelopment Agency from and to Friends of the Cultural Center, Inc., for operation and maintenance of a performing arts center pursuant to the Redevelopment Plan for Project Area No. 1; and 2) Redevelopment Agency Resolution No. 421, approving the lease of property by the Agency from and to Friends of the Cultural Center, Inc., for operation and maintenance of a performing arts center pursuant to the Redevelopment Plan for Project Area No. 1, with minor amendment to Section 3.3 of the DDA and continuance of Sections 3.1.4 and 3.1.5 of same, regarding membership, to the City Council and Agency Board Meetings of July 19, 2001. The motion carried by a 4-0 vote, with Mayor/Chairman Ferguson ABSENT. 14 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 28, 2001 XIV. REPORTS, REMARKS, AND AGENCY BOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR Mr. Ortega asked that a third item be added to the Agenda for Closed Session dealing with real property negotiations. Please see below for a description of that item. B. AGENCY COUNSEL Request for Closed Session: Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: Located north of Frank Sinatra Drive, between Portola Avenue and Cook Street, Palm Desert, CA (AP Ns 653-400-030/032/033/034) Negotiating Parties: Agency: Carlos L. Ortega/City of Palm Desert/Palm Desert Redevelopment Agency Property Owner: American Realty Trust Under Negotiation: x Price x Terms of Payment 2) Property: APN 653-020-062 (Approximately 11.48 acres) Negotiating Parties: Agency: Carlos L. Ortega/City of Palm Desert/Palm Desert Redevelopment Agency Property Owner: A. J. Lazar Under Negotiation: x Price x Terms of Payment Member Crites moved to add the following item to the Closed Session Agenda. Motion was seconded by Spiegel and carried by a 4-0 vote, with Chairman Ferguson ABSENT. 3) Property: APN 632-030-033 Negotiating Parties: Agency: Carlos L. Ortega/Dave Yrigoyen Palm Desert Redevelopment Agency Property Owner: Jackson Delmas, et al. Under Negotiation: x Price x Terms of Payment 15 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 28, 2001 C. CHAIRMAN AND MEMBERS OF THE AGENCY None XV. ADJOURNMENT Member Crites moved to adjourn to Closed Session at 6:01 p.m. Motion was seconded by Spiegel and carried by a 4-0 vote, with Chairman Ferguson ABSENT. Vice Chairman Kelly reconvened the meeting at 7:00 p.m., with no action announced from Closed Session. Upon motion by Spiegel, second by Crites, and unanimous vote of the Redevelopment Agency Board, Vice Chairman Kelly adjourned the meeting at 8:43 p.m. ATTEST: k i 4:).<1 ICHIRD S. KELLY, VICE Sii-(AIRMAN SHEILA R. GILIJb AN, S RETARY TO THE PALM DESERT REDS OPMENT AGENCY 16