HomeMy WebLinkAboutCC RES 97-015C fa � �
RESOLUTION NO. 97-15
A RESOLUTION OF THE CITY COUNCII. OF THE CITY OF PALM DESERT,
CALIFORNIA, APPROVIl�IG THE FORMATION OF THE PALM DESERT
RECREATIONAL FACII.ITIES CORPORATION, APPROVIl�TG A LEASE
AGREEMENT BETWEEN THE CTTY OF PALM DESERT AND THE PALM DESERT
RECREATIONAL FACILTTIES CORPURATION FOR THE CLUBHOUSE AT THE
DESERT WILLOW GOLF COURSE, APPROVING AN ASSIGNMENT BY THE PALM
DESERT REDEVELOPMENT AGENCY OF THE MANAGEMENT AGREEMENT
WITH KEMPER SPORTS MANAGEMENT, AND APPROVING AN AMENDMENT TO
THE MANAGEMENT AGREEMENT WITH KEMPER SPORTS MANAGEMENT
ASSIGNING TO THE PALM DESERT RECREATIONAL FACILITIES
CORPORATION THE CITY'S RIGHTS AND OBLIGATIONS CONCERNING THE
MANAGEMENT AND OPERATION OF THE RESTAURANT PORTION OF THE
CLUBHOUSE AT THE DESERT WILLOW GOLF COURSE
;- .
A. The Palm Desert Redevelopment Agency and the City of Palm Desert have approved
the transfer, among other things, to the City of Palm Desert of the Desert Willow Golf Course and
the associated clubhouse. Upon such transfer, the City shall become the owner of the Desert Willow
Golf Course.
B. The Palm Desert Redevelopment Agency is a party to a Management Agreement daied
as of October 21, 1996, with Kemper Sports Management, Inc. (the "Management Ageement"),
concerning the operation of the Desert Willow Golf Course, including the golf clubhouse (the
"Clubhouse") and the restaurant that is a part of the Clubhouse.
C. As part of such transfer, it is necessary for the Agency and the City to enter into an
assignment agreement concerning the Management Agreement.
D. It is the intent of the City to sell alcoholic beverages from the Clubhouse at the Desert
Willow Golf Course. However, state law does not permit a city to receive a license to sell alcoholic
beverages. State law also requires the licensee of an alcoholic beverage license to be a lessee or
concessionaire with exclusive control over the entire facility from which alcoholic beverages will be
sold. In order for Kemper to be the licensee, Kemper would have to be the lessee or concessionaire
with exclusive control over the Clubhouse restaurant. However, the Internal Revenue Code and its
appGcable regulations and procedures do not permit a public entity to lease to a private party facilities
constructed with the proceeds of a tax exempt bond financing, and, therefore, it is not practical for
Kemper to become a lessee or concessionaire of the Clubhouse restaurant. Therefore, it is necessary
for the City to forn► a non-proSt public benefit corporation under the control of the City to lease the
Clubhouse restaurant from the City and for such corporation to apply for a license to sell alcoholic
beverages.
RESOLUTION NO. 97-ia
E. The following documents have been presented to the City Council: (i) Articles of
Incorporation for the Palm Desert Recreational Facilities Corporation; (ii) an Assignment and
Assumption Agreement between the Palm Desert Redevelopment Agency and the City of Palm
Desert concerning the proposed assignment of the Management Agreement; (iii) a Lease Agreement
between the City of Palm Desert and the Palm Desert Recreational Facilities Corporation covering
the restaurant portion of the Clubhouse at the Desert Willow Golf Course; and (iv) a First
Amendment to Management Agreement, assigning to the Palm Desert Recreational Facilities
Corporation the City's rights and obligations concerning the management and operation of the
restaurant portion of the Clubhouse at the Desert Willow Golf Course.
NOW, T�REFORE, the City Council of the City of Palm Desert, California, hereby finds,
determines, resolves, and orders:
Section l. The City Council hereby approves the formation of the Palm Desert
Recreational Facilities Corporation and the Articles of Incorporation thereof in the form presented
to City Council.
Section 2. The City Council hereby authorizes the expenditures of such funds reasonably
necessary to form the Palm Desert Recreational Facilities Corporation and reasonably necessary to
the obligations of the Palm Desert Recreational Facilities Corporation as set forth in the Management
Ageement, including its working capital requirements.
Section 3. The City Council hereby authorizes and appoints the following persons to
serve as the directors of the Palm Desert Recreational Facilities Corporation:
Mayor of the City of Palm Desert
Mayor Pro Tem of the City of Palm Desert
City Manager of the City of Palm Desert
Section 4. The City Council hereby finds that the proposed lease of the restaurant
portion of the Clubhouse at the Desert Willow Golf Course is categorically exempt from the
California Environmental Quality Act ("CEQA") on the grounds that such lease will have no
significant impact on the environment, in that it will constitute the continuation of the same
operation as previously approved in the Final Environmental Impact Report for the Section Four
North Sphere Project (the "EIR"). The City certified the EIR by Resolution No. 94-119,
"Resolution of the City Council of the City of Palm Desert, California, Certifying, an
Environmental Impact Report for a Proposed Section Four Site Plan Bounded by Frank Sinatra
Drive on the North, Cook Street on the East, Country Club Drive on the South, and Portola
Avenue on the West."
Section 5. The City Council hereby approves (i) the Assignment and Assumption
Agreement between the Palm Desert Redevelopment Agency and the City of Palm Desert
concerning the Management Agreement with Kemper Sports Management, (ii} the Lease
Agreement between the City of Palm Desert and the Palm Desert Recreational Facilities
Corporation covering the restaurant portion of the Clubhouse at the Desert Willow Golf Course,
�
,� RESOLUTION NO. 9'1-15
-�
and (iii) the First Amendment to Management Agreement concerning the assignment to the Palm
Desert Recreational Facilities Corporation of the City's rights and obligations of the management
and operation of the restaurant portion of the Clubhouse at the Desert Willow Golf Course, all of
the foregoing being in the form presented to the City Council, subject to such changes and
modifications as may be recommended by the City Manager, and the Mayor or the Mayor's
designee is authorized to execute all documents necessary to implement the same.
PASSED, APPROVED, and ADOPTED by the City Council of the City of Palm Desert,
this � day of Februarv, �, by the following vote, to wit:
AYES: Benson, Snyder, Spiegel, Kelly
NOES: None
ABSENT: Crites
ABSTAIN: None
ATTEST:
.
� ���,1.,(,i � �-��-�
MARY P. G ES, DEPUTY CITY CLERK
CITY OF PAL DESERT, CALIFOItNIA
KELLY, MAYOR
3