HomeMy WebLinkAboutC16920A CA1 Landscape Agreement at Westfield ShoppingtownCITY OF PALM DESERT
STAFF REPORT
REQUEST: REVIEW AND APPROVE THE PROPOSED AMENDMENTS TO
THE LANDSCAPE AGREEMENT (CONTRACT NO. C16920-A)
WITH WESTFIELD TO REFLECT A CHANGE IN PLAN TO THE
REDEVELOPMENT OF WESTFIELD SHOPPINGTOWN PALM
DESERT
SUBMITTED BY: RUTH ANN MOORE, ECONOMIC DEVELOPMENT MANAGER
DEVELOPER: WESTFIELD CORPORTAION
11601 WILSHIRE BLVD., 12T" FLOOR
LOS ANGELES, CA 90025-1748
DATE: FEBRUARY 23, 2006
CONTENTS: MAP OF LANDSCAPE PHASING
LANDSCAPE AGREEMENT AMENDMENT
Recommendation:
By Minute Motion, approve the proposed amendment to the Landscape
Agreement (Contract No. C16920-A) with Westfield Corporation to reflect
the change in plan to the redevelopment of Westfield Shoppingtown Palm
Desert.
Executive Summarv:
Westfield has requested extending their performance schedule for Phases III and IV (as
shown in blue on the landscape phasing map) of the existing Landscape Agreement
while negotiating with various department stores for the locations to be vacated by
Macy's move to the Robinson's-May building. Staff recommends an extension on
Phases III and IV through February 28, 2008, provided Westfield delivers to the City
evidence of the success of those negotiations throughout an agreed upon timeline.
Discussion:
As part of the existing redevelopment of Westfield Shoppingtown Palm Desert, the City
created a Landscape Agreement that requires Westfield Corp. to re -landscape the
various parking areas in four phases. Phases I and II had been completed per the
agreement when Federated Stores, Inc., the parent company of Macy's, announced
they would purchase Robinson's-May Co.
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Staff Report
Amendment to Landscape Agreement (Contract C16920A) with Westfield
Page 2 of 2
February 23, 2006
With the subsequent purchase and closing of the Robinson's-May location at Westfield
Palm Desert, Macy's will move their women's and men's division into the Robinson's-
May location and will vacate the entire northern Macy's building and the second floor of
the southern Macy's building.
Westfield has requested an extension on the completion of Phases III and IV to the
Landscape Agreement while they negotiate with various major department stores to
take over the vacating Macy's locations. Completed negotiations will more than likely
include either renovation or expansion of the department stores. Rather than install
new plant materials that may then need to be removed because of construction,
Westfield would like to extend the completion of Phases III and IV until negotiations
have been completed.
Staff recommends an extension for performing the work on Phases III and IV to
February 28, 2008, provided the following conditions are met:
Prior to August 28, 2006, an executed letter of intent with a major department
store to occupy the northern Macy's building location or a replacement building
constructed in the general area be provided to the City of Palm Desert; and
2. Prior to April 30, 2007, an executed contract committing a major department
store to occupy the northern Macy's building location or a replacement building
constructed in that general area be provided to the City of Palm Desert.
Should Westfield satisfy the above conditions, the City and Westfield shall negotiate an
extension of the completion dates for Phases III and IV to reasonably conform to the
construction and/or occupancy schedule for the new major department store.
Should Westfield be unable to perform, they would have ten months to complete
Phases III and IV of the Landscape Agreement.
Submit by:
AuAnn Mcdore
Economic Development Manager
Approval:
David Yr gore
Director of eev,
Carlos L. Olga
City Manager
lopment & Housing
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FIRST AMENDMENT TO LANDSCAPE AGREEMENT
This First Amendment to Landscape Agreement ("Amendment") dated as of 23rd
day of February, 2006 (the "Effective Date") is entered into by and between the CITY
OF PALM DESERT, a Municipal corporation (the "City") and WESTFIELD
CORPORATION, INC., a Delaware corporation ("Developer"), as agent for WEA Palm
Desert LP, A Delaware limited partnership, as successor in interest to WEA Palm
Desert LLC, a Delaware limited liability company. The City and the Developer agree as
follows.
RECITALS
1. Effective April 15, 2004, Developer and City entered into Agreement
regarding Developer's obligation to make certain landscape improvements at the
Westfield Town Center in Palm Desert, California. As indicated below, certain
obligations under the Agreement have been completed and other obligations remain to
be completed. The parties desire to amend the Agreement's Schedule of Performance
for Phase 3 and 4 as described herein.
FOR AND IN CONSIDERATION OF MUTUAL COVENANTS AND CONDITIONS
HEREIN SET FORTH, the City and Developer hereby agree as follows:
effect.
1. Except as amended herein below, the Agreement remains in full force and
2. The parties acknowledge that Phases 1 and 2 of the Schedule of
Performance have been completed to the satisfaction of the City.
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3. The parties hereby amend the Schedule of Performance to supercede
Exhibit B and to provide that Phases 3 and 4 shall be completed by February 28, 2008,
unless Developer delivers to the City:
(a) Prior to August 28, 2006, an executed letter of intent with a major
department store to occupy the northern Macy's building location or a replacement
building constructed in that general area; and
(b) Prior to April 30, 2007, an executed contract committing a major
department store to occupy the northern Macy's building location or a replacement
building constructed in that general area.
4. If Developer satisfies conditions 2(a) and 2(b) above, the City and
Developer shall negotiate in good faith an extension of the completion dates for Phases
3 and 4 to reasonably conform to the construction and/or occupancy schedule for the
new major department store.
5. Prior to February 28, 2006, Developer shall extend to March 28, 2008 the
bonds for Phases 3 and 4 as required by Section IV of the Agreement.
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IN WITNESS WHEREOF, the parties hereto have entered into this First
Amendment of Landscape Agreement as of the day and year first above written.
"City"
CITY OF PALM DESERT, a
municipal corporation
M
Jim Ferguson, Mayor
ATTEST:
M
Rachelle D. Klassen, City Clerk
APPROVED AS TO FORM:
City Attorney
David J. Erwin
"Developer"
WEA PALM DESERT LP, a
Delaware limited partnership
By: Westfield America GP LLC, a
Delaware limited liability
company, its general partner
By: Westfield America Limited
Partnership, a Delaware
limited partnership, its sole
member
By: Westfield America, Inc., a
Missouri corporation, its
general partner
as
Roy A. Packer, Assistant
Secretary
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