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HomeMy WebLinkAboutInformational Item - C16920 Westfield Final PaymentCITY OF PALM DESERT/ PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: INFORMATIONAL ITEM — WESTFIELD FINAL PAYMENT SUBMITTED BY: CATHERINE WALKER, SENIOR MANAGEMENT ANALYST DATE: AUGUST 26, 2004 Background: Pursuant to the December 9, 1999 Agreement between the City of Palm Desert and the Westfield Corporation, the City purchased a parking easement in the amount of approximately $10 million. Westfield has been paid according to the payment schedule outlined in the Agreement, with retainage held in the amount of $1,424,892.80. The City is releasing this final retainage payment, but withholding a portion until the items described below have been accomplished. Discussion: On July 21, 2004 staff met with Chris DeBolt, Director of Development for the Westfield Corporation, to discuss those obligations as outlined in the Agreement that have not yet been accomplished. The Monterey median, bus shelter, and Art in Public Places fees were determined to be the responsibility of the Wesffield Corporation as per the Agreement between the City of Palm Desert and Westfield. It was agreed that the total cost plus twenty-five percent of the above -mentioned projects would be withheld from the City's final payment of $1,424,892.80 to the Wesffield Corporation. Upon completion of these tasks, the money will be reimbursed to Wesffield as follows: 1) Art In Public Places fees in the amount of $46,021.85. 2) Monterey median/North Entrance Westfield ShoppingTown in the amount of $40,000. The work to be done is as follows: removal of delineators on Monterey Avenue, landscape of the median, removal of gutter and curb, irrigation, new curbing and asphalt. The Monterey Avenue improvements were identified in the Traffic Impact Study for the expansion of the Palm Desert Town Center. The mitigation measures identified in the project Traffic Impact Study, as approved by the Department of Public Works, are considered as project conditions of approval as per item No. 8 of Resolution No. 98-102. Public Works staff is proposing to perform this work as part of other improvements taking place along this section of Monterey. Staff Report Westfield Final Payment August 26, 2004 Page 2 of 2 3) The Bus Bay Project with an estimated cost of $357,068. This cost is comprised of earthwork, demolition, construction of curb, gutter, and sidewalk, landscaping, signage, shelters (3) and utilities. The construction of the bus bay is the responsibility of the Westfield Corporation as per the Agreement. Staff will retain funds in the amount of $553,862.31 from the final payment of $1,424,892.80. This report is provided for your information only; no action is required. Submitted by: Catherine Walker, CW:nmo Approval: Approval: McCarthy, ACM C evelopment Carlos L. Ortega, City Manager Paul S. Gibson, Director of Finance G:IRDAWiamh Ortega\Wpdata\CathylStaff Reports\Westfield Final Payment 082604.doc