HomeMy WebLinkAboutCC RES 03-003RESOLUTION NO. 03-3
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM DESERT APPROVING THE AMENDMENT OF A
DISPOSITION AND DEVELOPMENT AGREEMENT WHICH
PROVIDES FOR THE DISPOSITION OF PROPERTY BY THE
PALM DESERT REDEVELOPMENT AGENCY TO INTRAWEST
RESORT OWNERSHIP CORPORATION FOR DEVELOPMENT
PURSUANT TO THE REDEVELOPMENT PLAN FOR PROJECT
AREA NO. 2
THE CITY COUNCIL OF THE CITY OF PALM DESERT HEREBY
FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
Section 1. In order to effectuate the provisions of the
Redevelopment Plan (the "Redevelopment Plan") for Project Area No. 2 (the
"Project Area"), the Palm Desert Redevelopment Agency (the "Agency")
proposes to amend that certain Disposition and Development Agreement dated
as of February 13, 1997 by and between the Agency and Intrawest Resort
Ownership Corporation ("IROC") (as heretofore amended, the "DDA"). On or
about October 12, 1998, IROC assigned its rights and obligations under the DDA
to Resort Ventures, L.P. ("Developer") and by entering into a Second
Amendment to Disposition and Development Agreement (the "Amendment") with
Developer the Agency will (a) agree to amend the amounts and time of payment
of certain access and amenity fees to be paid by the Developer to City, (b) agree
to amend the terms pursuant to which the Developer may acquire certain real
property from the Agency pursuant to an existing option agreement between the
Agency and Developer, and (c) agree to amend the term during which the
Developer will have the exclusive right to sell timeshare units within the Desert
Willow project at the Palm Desert Resort (the "Project").
Section 2. On January 9, 2003, the Agency and the City Council
(the "City Council") of the City of Palm Desert held a duly noticed public hearing
on the approval by the Agency of the proposed Amendment, at which time all
persons desiring to comment on, or ask questions concerning the Amendment
were given the opportunity to do so. Prior to the public hearing, information
concerning the Agency's approval of the proposed Amendment was available for
public inspection in office of the City Clerk in accordance with Health and Safety
Code Section 33433.
Section 3. The Project is located in the Project Area. The
development of the Project will assist in the elimination of blight. The City
Council has previously determined that the Project Area is an area in which the
combination of conditions of blight are so prevalent and so substantial that there
is a reduction of, or lack of, proper utilization of the area to such an extent that it
constitutes a serious physical, social and economic burden on the community
which cannot reasonably be expected to be reversed or alleviated by private
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enterprise or governmental action, or both, without redevelopment. Among other
things, the Project Area contains vacant and underutilized properties, properties
which suffer from depreciated or stagnant property values and impaired
investments, and deteriorated, aged and obsolete buildings. Such conditions
tend to further deterioration and disuse because of the lack of incentive to
landowners and their inability to improve, modernize or rehabilitate their property
while the condition of the neighboring property remains unchanged. In addition,
the Project Area is characterized by the existence of inadequate public
improvements and utilities, which cannot be remedied by private or governmental
action without redevelopment.
The development of the Project will redevelop an underutilized
parcel and will assist in the revitalization of the Project Area and create
employment opportunities for residents of the Project Area. All of the foregoing
will assist in encouraging private sector investment in the Project Area and will
assist in eliminating blighting conditions in the Project Area.
Section 4. The Agency has obtained an evaluation of the value of
the property which is the subject of the Amendment from Real Estate Analysis
Services Co., which has determined that the consideration paid by the Developer
for its acquisition from the Agency, as provided in the DDA and as modified by
the Amendment, is not less than its fair market value at its highest and best use
in accordance with the Redevelopment Plan whereby the highest and best use is
as the site for the Developer's Desert Willow Resort Club as provided in the DDA
and the Amendment.
Section 5. Based upon the foregoing and other information
presented to the City Council, the City Council hereby finds and determines that
(a) the previous sale of property to Developer, and the grant of an option to
purchase property to Developer, by the Agency as provided in the DDA and the
Amendment are consistent with the Agency's implementation plan adopted
pursuant to Health and Safety Code Section 33490 and will assist in the
elimination of blighting conditions inside the Project Area, and (b) the
consideration for the property as provided in the DDA and the Amendment is not
less than its fair market value at its highest and best use in accordance with the
Redevelopment Plan whereby the highest and best use is as the site for the
Developer's Desert Willow Resort Club as provided in the DDA and the
Amendment.
Section 6. The City Council hereby approves the Amendment and
the actions to be taken by the Agency pursuant thereto and hereby authorizes
the Mayor to execute and deliver such documents and agreements on behalf of
the City as are related thereto and necessary or convenient to affect the
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provisions of the Amendment and as the Mayor may approve, in his or her
discretion, as being in the best interests of the City, such approval to be
conclusively evidenced by the execution and delivery thereof.
PASSED, APPROVED and ADOPTED this23rdday of January,
2003, by the following vote to wit:
AYES: CRITES, FERGUSON, KELLY, SPIEGEL, BENSON
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
ATTEST:
o._
Rachelle D. Klassen, City Clerk
4 644,440...,_
can M. Benson, Mayor
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