Loading...
HomeMy WebLinkAboutRes 07-1, 07-2, 537 and 538 R11813 Aquisition Child Care Centers CITY OF PALM DESERT/PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: APPROVAL OF RESOLUTION N0. 537 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF PALM DESERT APPROVING PAYMENT BY THE AGENCY FOR THE COST OF THE ACQUISITION AND DEVELOPMENT OF PROPERTY AT 44-911 CABRILLO AVENUE FOR A CHILDCARE CENTER, AND AUTHORIZE THE EXECUTION OF A CONVEYANCE AGREEMENT AND ASSIGNMENT AND ASSUMPTION OF LEASES WITH THE CITY OF PALM DESERT RELATED TO SAID PROPERTY APPROVAL OF RESOLUTION NO. 07- 1 OF THE CITY OF PALM DESERT CONSENTING TO PAYMENT BY THE REDEVELOPMENT AGENCY OF THE CITY OF PALM DESERT FOR THE COST OF THE ACQUISITION AND DEVELOPMENT OF PROPERTY AT 44-911 CABRILLO AVENUE FOR A CHILDCARE CENTER, AND AUTHORIZE THE EXECUTION OF A CONVEYANCE AGREEMENT AND ASSIGNMENT AND ASSUMPTION OF LEASES WITH THE REDEVELOPMENT AGENCY RELATED TO SAID PROPERTY APPROVAL OF RESOLUTION NO. 538 OF THE REDEVELOPMENT AGENCY OF THE CITY OF PALM DESERT APPROVING PAYMENT BY THE AGENCY FOR THE COST OF THE ACQUISITION AND DEVELOPMENT OF PROPERTY AT 75-433 ORANGE BLOSSOM LANE FOR A CHILDCARE CENTER, AND AUTHORIZE THE EXECUTION OF A CONVEYANCE AGREEMENT AND ASSIGNMENT AND ASSUMPTION OF LEASES WITH THE CITY OF PALM DESERT RELATED TO SAID PROPERTY APPROVAL OF RESOLUTION NO. 07- 2 OF THE CITY OF PALM DESERT CONSENTING TO PAYMENT BY THE REDEVELOPMENT AGENCY OF THE CITY OF PALM DESERT FOR THE COST OF THE ACQUISITION AND DEVELOPMENT OF PROPERTY AT 75-433 ORANGE BLOSSOM LANE FOR A CHILDCARE CENTER, AND AUTHORIZE THE EXECUTION OF A CONVEYANCE AGREEMENT AND ASSIGNMENT AND ASSUMPTION OF LEASES WITH THE REDEVELOPMENT AGENCY RELATED TO SAID PROPERTY APPROVAL OF SECOND AMENDMENT TO LEASE BETWEEN THE CITY OF PALM DESERT AND THE YMCA FOR A LONG-TERM LEASE OF THE CHILDCARE CENTER LOCATED AT 75-433 ORANGE BLOSSOM LANE, KNOWN AS THE JEAN M. BENSON CHILD CARE CENTER (cot�rxncT No. R11813) Staff Report Public Hearing and Conveyance of Jean Benson Childcare Center and Wallaroo Page 2 of 4 January 11, 2007 SUBMITTED BY: CATHERINE WALKER, SENIOR MANAGEMENT ANALYST DATE: JANUARY 11, 2007 CONTENTS: 1. CITY COUNCIL RESOULTIONS NOS. 07- 1 AND 07- 2 2. PALM DESERT REDEVELOPMENT AGENCY RESOULTIONS NOS. 537 AND 538 3. SECOND AMENDMENT TO LEASE BETWEEN THE CITY OF PALM DESERT AND FAMILY YMCA OF THE DESERT. (R11813) 4. CONTRACT NO. C26ioo FOR THE CONVEYANCE OF 44-911 CABRILLO AVENUE BETWEEN THE CITY OF PALM DESERT AND THE PALM DESERT REDEVELOPMENT AGENCY 5. CONTRACT NO. �6110 FOR THE CONVEYANCE OF 75-433 ORANGE BLOSSOM LANE BETWEEN THE CITY OF PALM DESERT AND THE PALM DESERT REDEVLOPMENT AGENCY Recommendation: 1. That the City Council and Agency Board, by Minute Motion: a) Open the joint public hearing and accept public testimony on the on the conveyance of property located at 75-433 Orange Blossom Lane and 44-911 Cabrillo Avenue from the Palm Desert Redevelopment Agency to the City of Palm Desert; close public hearing; b) Waive further reading and adopt, City Resolution No.0�-1 and No. 07-2 and Agency Resolution No.537 and NO. 538 make findings in accordance with Health and Safety Code Section 33431 and Sections 33445 and 33679 for the conveyance of property located at 44-911 Cabrillo Avenue, Palm Desert, CA and 75-433 Orange Blossom Lane, Palm Desert, CA, from the Palm Desert Redevelopment Agency to the City of Palm Desert, for the purposes of childcare/early education facilities. 2) By Minute Motion, that the City Council: a) Approve Contract No. c26ioo conveying the property located at 44-911 Cabrillo Avenue, the City of Palm Desert Early Childhood Education Center in conjunction with Desert Sands Unified School G:�RDA�Maria HuM�W PDATA�WALKER�staff reports\Statt Aeport for the Public Heannp and Conveyance of Jean Benson and Wallaioo.doc Staff Report Public Hearing and Conveyance of Jean Benson Childcare Center and Wallaroo Page 3 of 4 January 11, 2007 District, from the Palm Desert Redevelopment Agency to the City of Palm Desert. b) Approve Contract No. c26i10 conveying the property located at 75-433 Orange Blossom Lane, Palm Desert, CA, the Jean M. Benson Child Care Center, from the Palm Desert Redevelopment Agency to the City of Palm Desert. c) Approve Second Amendment to Lease extending the lease of the property located at 75-433 Orange Blossom Lane, the Jean Benson Child Care Center. (co�tract xo, xiisi3) 3) By Minute Motion, that the Agency Board: d) Approve Contract No. c26ioo conveying the property located at 44-911 Cabrillo Avenue, the City of Palm Desert Early Childhood Education Center in conjunction with Desert Sands Unified School District, from the Palm Desert Redevelopment Agency to the City of Palm Desert. e) Approve Contract No. c26iio conveying the property located at 75-433 Orange Blossom Lane, Palm Desert, CA, and the Jean M. Benson Child Care Center, from the Palm Desert Redevelopment Agency to the City of Palm Desert. Executive Summarv: According to Community Redevelopment Law, the Redevelopment Agency is authorized to convey property to the City of Palm Desert provided it holds a public hearing under Health and Safety Code 33431. The Agency proposes to convey two properties to the City of Palm Desert, one located at 44-911 Cabrillo Ave., Palm Desert, and the other at 75-433 Orange Blossom Lane, Palm Desert. Both faciltites are currently used for childcare/education centers, with 44-911 Cabrillo leased to Desert Sands Unified School District and 75-433 Orange Blossom Land leased to Family YMCA of the Desert ("the YMCA"}. The Agency is conveying both the properties and the lease agreements to the City of Palm Desert, which includes a newly amended and extended lease agreement with the YMCA for childcare services at the Jean M. Benson Child Care Center. Discussion: The facility known as the Jean M. Benson Child Care Center, located at 75-433 Orange Blossom Lane, Palm Desert, CA, was built in conjunction with the Desert Rose project, and is currently operated as a childcare facility by the YMCA. On December 13, 2001, G:\RDA\Maria Hunt\WPDATA\WALKER�staff reDorts\Staff Report for the Public Hearing and Conveyance of Jean Benson antl Wallaroo.doc Staff Report Public Hearing and Conveyance of Jean Benson Childcare Center and Wailaroo Page 4 of 4 January 11, 2007 the Palm Desert Redevelopment Agency entered into a lease agreement with the Family YMCA, and this agreement expired on December 13, 2006. A thirty-day day extension was approved at the December 14, 2006 Agency Board meeting for services to continue while a long-term lease agreement was negotiated with the Agency. The amended long-term lease agreement has been attached for approval, extending the YMCA's lease for a period of five years. The facility currently known as the City of Palm Desert Early Childhood Education Center, in conjunction with Desert Sands Unified School District (previously known as the Wallaroo Childcare Center) located at 44-911 Cabrillo Avenue, Palm Desert, CA, was acquired by the Agency in a dilapidated and abandoned state. The Agency rehabilitated the property to meet Health and Safety Codes and entered into an agreement with Desert Sands Unified School District to utilize the property for an early childhood education center on July 14, 2005. The lease between the Agency and the School District is still viable, and will be assumed by the City of Palm Desert. Having taken the above components into consideration, staff recommends that the City Council and Agency Board jointly hold a public hearing regarding the conveyance of properties and lease agreements for 44-911 Cabrillo Avenue, Palm Desert, CA 92260 (lease agreement with Desert Sands Unified School District), and 75-433 Orange Blossom Lane Palm Desert, CA 92260 (lease with YMCA). Following the conclusion of the public hearing, staff recommends that the Council/Agency Board approve: Resolutions Nos. 0�-1 0�-2 537 53s • Contracts No.c2gioo and c26iio , , , , for the conveyance of property and assumption of leases; and the Second Amendment to Lease for the long-term lease with the YMCA for services rendered at the Jean M. Benson Child Care Center (contract No. Riisi3). Submitted by: Department Head: �� Catheri Walker ave Yri n Senior Management Analyst Directo RedevelopmenUHousing Approval: --�/� �/1 .,✓ �� Justi McCarthy, ACM Redevelopmen Paul S. Gibson, Director of Finance Carlos L. Ortega, City Manager/ Executive Director G:�ADA\Mana Hunt\WPDATA\WALKER�staB reports\StaB Report for the Public Heanng and Conveyance of Jean Benson and Walleroo.doC CITY OF PALM DESERT NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that on January 11, 2007, at 4:00 p.m. (or as soon as practical thereafter) in the City Council Chambers located at 73-510 Fred Waring Drive, Palm Desert, California 92260, a public hearing will be held before the City Council of the City of Palm Desert. At this public hearing, the City Council wil� receive public comment and testimony concerning payment by the Palm Desert Redevelopment Agency for the acquisition and development of a childcare facility located at 44 911 Cabrillo Avenue, Palm Desert, California 92260 in Project Area No. 1, as amended, of the Agency. The childcare facility will be conveyed to and thereafter owned by the City. The estimated cost of the acquisition and development of the childcare facility is $950,000. A copy of the summary report required by California Health and Safety Code Section 33679 is available for public inspection and copying at the office of the City Clerk, located at 73-510 Fred Waring Drive, Palm Desert, California 92260. All interested persons are invited to attend and provide testimony and comments to the City Council concerning the proposed payment. You are hereby advised that should you desire to legally challenge any action taken by the City or the Agency with respect to the payment, you may be limited to raising only those issues and objections which you or someone else raised at or prior to the time of the public hearing. Dated: December 20, 2006 RAC ELLE D. KLASSEN, TY CLERK CITY OF PALM DESERT, CALIFORNIA [Published twice, once each during two successive weeks before January 11, 2007.] NOTICE OF PUBLIC HEARING.Wallaroo Legal Notice - PH O1/1 1/07 - 4491 1 Cabrillo Ave. - Wallaroo Page I of 1 Martinez, Gloria From: Moelier, Charlene [CMOELLER@palmspri.gannett.com] Sent: Wednesday, December 20, 2006 4:02 PM To: Martinez, Gloria Subject: RE: Lega1 Notice -PH 01/11/07 -44911 Cabrillo Ave. -Wallaroo Ad recieved and will publish on date(s) requested. Charlene Moeller Public Notice Customer Service Rep. (7601?7&4578,Fax(760)778-4731 Mon-Fri 8:00-5:00 pm. DeSert Sur1 IegalsC�thedesertsun.com $Desert Post Weekly dpwlegalsC�thedesertsun.com The Vatley's#1 Source in News S Advertising! -----Original Message----- From: gmartinez@ci.palm-desert.ca.us [mailto:gmartinez@ci.palm-desert.ca.us] Sent: Wednesday, December 20, 2006 3:50 PM To: charlene.moeller@desertsun.com Cc: mhunt@ci.palm-desert.ca.us; blongman@ci.palm-desert.ca.us; cwalker@ci.palm-desert.ca.us Subject: Legal Notice - PH 01/li/07 - 44911 Cabrillo Ave. - Wallaroo PLEASE PUBLISH THE FOLLOWING: PUBL/C HEAR/NG Acquisition and Development of a Childcare Facility Located at 44-911 Cabrillo Avenue ($950,000). TWO TIMES IN THE DESERT SUN Thursday, December 28,2006 and Thursday,January 4,2007 «PH 011107-44911 Cabrillo Avenue.doc» Thank you,Charlene 9K. C'jCoria 9Kartinez 73-510 Fred Waring Drive Palm Desert, CaVifornia 92260 (760) 346-Obl 1 Ext. 354 gmartinez@ci.palm-deserf.ca.us 12/20/2006 CITY OF PALM DESERT NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that on January 11, 2007, at 4:00 p.m. (or as soon as practical thereafter) in the City Council Chambers located at 73-510 Fred Waring Drive, Palm Desert, California 92260, a public hearing will be held before the City Council of the City of Palm Desert. At this public hearing, the City Council will receive public comment and testimony concerning payment by the Palm Desert Redevelapment Agency for the acquisition and development of a childcare facility located at 75433 Orange Blossom Lane, Palm Desert, California 92260 in Project Area No. 1, as amended, of the Agency. The childcare facility will be conveyed to and thereafter owned by the City. The estimated cost of the acquisition and development of the chifdcare facility is $772,874. A copy of the summary report required by California Health and Safety Code Section 33679 is available for public inspection and copying at the office of the City Clerk, located at 73-510 Fred Waring Drive, Palm Desert, California 92260. All interested persons are invited to attend and provide testimony and comments to the City Council concerning the proposed payment. You are hereby advised that should you desire to {egally challenge any action taken by the City or the Agency with respect to the payment, you may be limited to raising only those issues and objections which you or someone else raised at or prior to the time of the public hearing. Dated: December 20, 2006 S RA HELLE D. LA EN, ITY CLER CITY OF PALM DESERT, CALIFORNIA Legal Notice - PH O1/1 1/07 - 75433 Orange Blossom Ln - Jean Benson Page 1 of 1 Martinez, Gloria From: Moeller, Charlene [CMOELLER@palmspri.gannett.com] Sent: Wednesday, December 20, 2006 4:02 PM To: Martinez, Gloria Subject: RE: Legal Notice - PH 01/11/07 -75433 Orange Blossom Ln -Jean Benson Ad recieved and will publish on date(s) requested. Charlene Moeller Public Notice Customer Service Rep. (760)778-4578,Fa�c(760)778-4731 Mon-Fri 8:00-5:00 pm. DeSel't SUt1 IeQalsQthedesertsun.com 8� DeSert POSt Weekly dpwlegalsCa?thedesertsun.com The Valley's#1 Source in News �Advertising! -----Original Message----- From: gmartinez@ci.palm-desert.ca.us [mailto:gmartinez@ci.palm-desert.ca.us] Sent: Wednesday, December 20, 2006 3:56 PM To: charlene.moeller@desertsun.com Cc: mhunt@ci.palm-desert.ca.us; blongman@ci.palm-desert.ca.us; cwalker@ci.palm-desert.ca.us Subject: Legal Notice - PH 01/11/07 - 75433 Orange Blossom Ln -Jean Benson PLEASE PUBLISH THE FOLLOWING: PUBLIC HEAR/NG Acquisition and Development of a Childcare Facility Located at 75-433 Orange Blossom Lane ($772,874) TWO TIMES I N_THE DESERT SUN Thursday, December 28, 2006 and Thursday, January 4, 2007 «PH 011107 -75433 Orange Blossom Ln.doc» Thank you, Charlene!! 9K. GCoria JKartinez 73-510 Fred Waring Drive Palm Desert, California 92260 (760) 346-Obl 1 Ext. 354 gmarfinez@ci.palm-desert.ca.us 12/20/2006 RESOLUTION NO, 537 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF PALM DESERT APPROVING PAYMENT BY THE AGENCY FOR THE COST OF THE ACQUISITION AND DEVELOPMENT OF PROPERTY AT 44-911 CABRILLO AVENUE FOR A CHILDCARE CENTER, AND AUTHORIZING EXECUTION OF A CONVEYANCE AGREEMENT AND ASSIGNMENT AND ASSUMPTION OF LEASES WITH THE CITY OF PALM DESERT RELATED TO SAID PROPERTY. THE REDEVELOPMENT AGENCY OF THE CITY OF PALM DESERT HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS: Section 1. The Redevelopment Agency of the City of Palm Desert (the "Agency") has previously paid the costs of the acquisition and development of certain property located at 44-911 Cabrillo Avenue, Palm Desert, CA (the "Property") for use as a childcare facility (the "Facility"). The Agency wishes to convey the Facility to the City of Palm Desert (the "City"), after which the City will own the Facility. Due to the transfer of ownership of the Facility to the City, the Agency is complying with California Health and Safety Code Sections 33445 and 33679 of the Community Redevelopment Law. The subject property is located in the City of Palm Desert and within Redevelopment Project Area No. 1 (the "Project Area"). The City Council has previously determined that the Project Area is an area in which the combination of conditions of blight is so prevalent and so substantial that it causes 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 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 deteriorated, aged and obsolete buildings. In addition, the Project Area is characterized by the existence of inadequate public improvements and public facilities, including inadequate social service facilities which cannot be remedied by private or governmental action without redevelopment. The Property previously was a vacant, dilapidated and outmoded childcare facility, which the Agency caused to be rehabilitated. The acquisition and development of the Property thereby assists in the elimination of conditions of blight within the Project Area that are caused by underutilized property, which in turn assists in eliminating a factor that prevents or substantially hinders the economically viable use of land and encourages private -sector investment in the Project Area. In addition, the Facility helps residents of the Project Area with children who need to work, encourages business expansion and aids the effort to revitalize the Project Area, as well as providing safe childcare and early childhood educational opportunities for children in the Project Area. As a result, the Facility contributes to an improved business climate by assuring local employers that they will have employees available, and thus assists in eliminating conditions of economic blight within the Project Area. Section 2. The acquisition and development of the Facility are not within the City's budget. No moneys of the City are available to pay for the cost of such acquisition and development. Traditional methods of financing such as the issuance of general obligation bonds RESOLUTION NO. 537 are unavailable as a practical matter because of the extraordinary majority voter approval requirements of two-thirds of the electorate. Assessment financing or special tax financing could overburden benefiting properties with assessments or special taxes and, in addition, special taxes require a two-thirds vote and assessments are subject to a majority protest. Section 3. The Agency has published and made available the summary report required by Section 33670 on the Facility, a copy of which is attached hereto as Exhibit A, and held a duly noticed public hearing on the use of tax increment funds for the Facility on January 11, 2007. Section 4. The Agency hereby finds and determines that based upon the foregoing and other information presented to the Agency: (i) the Facility is of benefit to the Project Area and the immediate neighborhood in which the Faculty is located; (ii) no other reasonable means of financing the Facility is available to the community; and (iii) the payment of funds for the cost of such acquisition will assist in the elimination of one or more blighting conditions inside the Project Area and is consistent with the Agency's implementation plan and the goals and objectives of such plan adopted pursuant to Health and Safety Code Section 33490. Section 5. The Agency hereby approves of the use of Agency funds for the cost of the acquisition and development of the Facility. Section 6. The Agency hereby approves that certain Conveyance Agreement between the Agency and the City related to the transfer of the Faculty (the "Conveyance Agreement") and that certain Assignment and Assumption of Leases between the Agency and the City (the "Assignment"), and authorizes the Executive Director of the Agency to execute the Conveyance Agreement and Assignment on behalf of the Agency and to take any and all other steps necessary to implement the Conveyance Agreement and Assignment. PASSED, APPROVED and ADOPTED this 11 th day of January 2007 by the following vote, to wit: AYES: NOES: ABSENTS: ABSTAINS: Richard S. Kelly, Chairman Attest: Rachelle D. Klassen, Secretary 2 G:\RDA\Beth Longman\Staff Reports\Walker\RDA Res Appr Pmt (Wallaroo)011107.DOC RESOLUTION NO. 07- 1 A RESOLUTION OF THE CITY OF PALM DESERT CONSENTING TO PAYMENT BY THE REDEVELOPMENT AGENCY OF THE CITY OF PALM DESERT FOR THE COST OF THE ACQUISITION AND DEVELOPMENT OF PROPERTY AT 44911 CABRILLO AVENUE FOR A CHILDCARE CENTER, AND AUTHORIZING EXECUTION OF A CONVEYANCE AGREEMENT AND ASSIGNMENT AND ASSUMPTION OF LEASES WITH THE REDEVELOPMENT AGENCY RELATED TO SAID PROPERTY. THE CITY COUNCIL OF THE CITY OF PALM DESERT HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS: Section 1. The Redevelopment Agency of the City of Palm Desert (the "Agency") has previously paid the costs of the acquisition and development of certain property located at 44911 Cabrillo Avenue, Palm Desert, CA (the "Property") for use as a childcare facility (the "Facility"). The Agency wishes to convey the Facility to the City of Palm Desert (the "City"), after which the City will own the Facility. Due to the transfer of ownership of the Facility to the City, the City is complying with California Health and Safety Code Sections 33445 and 33679 of the Community Redevelopment Law. The subject property is located in the City of Palm Desert and within Redevelopment Project Area No. 1 (the "Project Area"). The City Council has previously determined that the Project Area is an area in which the combination of conditions of blight is so prevalent and so substantial that it causes 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 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 deteriorated, aged and obsolete buildings. In addition, the Project Area is characterized by the existence of inadequate public improvements and public facilities, including inadequate social services facilities which cannot be remedied by private or governmental action without redevelopment. The Property previously was a vacant, dilapidated and outmoded childcare facility, which the Agency caused to be rehabilitated. The acquisition and development of the Property thereby assists in the elimination of conditions of blight within the Project Area that are caused by underutilized property, which in turn assists in eliminating a factor that prevents or substantially hinders the economically viable use of land and encourages private -sector investment in the Project Area. In addition, the Facility helps residents of the Project Area with children who need to work, encourages business expansion and aids the effort to revitalize the Project Area, as well as providing safe childcare and early childhood educational opportunities for children in the Project Area. As a result, the Facility contributes to an improved business climate by assuring local employers that they will have employees available, and thus assists in eliminating conditions of economic blight within the Project Area. Section 2. The acquisition and development of the Facility are not within the City's budget. No moneys of the City are available to pay for the cost of such acquisition and RESOLUTION NO. 07-1 development. Traditional methods of financing such as the issuance of general obligation bonds are unavailable as a practical matter because of the extraordinary majority voter approval requirements of two-thirds of the electorate. Assessment financing or special tax financing could overburden benefiting properties with assessments or special taxes and, in addition, special taxes require a two-thirds vote and assessments are subject to a majority protest. Section 3. The Agency has published and made available the summary report required by Section 33670 on the Facility, a copy of which is attached hereto as Exhibit A, and the City Council held a duly noticed public hearing on the use of tax increment funds for the Facility on January 11, 2007. Section 4. The City Council hereby finds and determines that based upon the foregoing and other information presented to the City: (i) the Facility is of benefit to the Project Area and the immediate neighborhood in which the Faculty is located; (ii) no other reasonable means of financing the Facility is available to the community; and (iii) the payment of funds for the cost of such acquisition will assist in the elimination of one or more blighting conditions inside the Project Area and is consistent with the Agency's implementation plan and the goals and objectives of such plan adopted pursuant to Health and Safety Code Section 33490. Section 5. The City Council hereby consents to the use of Agency funds for the cost of the acquisition and development of the Facility. Section 6. The City Council hereby approves that certain Conveyance Agreement between the Agency and the City related to the transfer of the Faculty (the "Conveyance Agreement") and that certain Assignment and Assumption of Leases between the Agency and the City (the "Assignment"), and authorizes the City Manager to execute the Conveyance Agreement and Assignment on behalf of the City and to take any and all other steps necessary to implement the Conveyance Agreement and Assignment. PASSED, APPROVED and ADOPTED this I lth day of January 2007 by the following vote, to wit: AYES: NOES: ABSENTS: ABSTAINS: Richard S. Kelly, Mayor Attest: Rachelle D. Klassen, City Clerk 2 G:\RDA\Beth Longman\Staff Reports\Walker\City Res Approving Pmt (Wallaroo) 01 1 107.DOC RESOLUTION NO. 538 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF PALM DESERT APPROVING PAYMENT BY THE AGENCY FOR THE COST OF THE ACQUISITION AND DEVELOPMENT OF PROPERTY AT 75433 ORANGE BLOSSOM LANE FOR A CHILDCARE CENTER, AND AUTHORIZING EXECUTION OF A CONVEYANCE AGREEMENT AND ASSIGNMENT AND ASSUMPTION OF LEASES WITH THE CITY OF PALM DESERT RELATED TO SAID PROPERTY. THE REDEVELOPMENT AGENCY OF THE CITY OF PALM DESERT HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS: Section 1. The Redevelopment Agency of the City of Palm Desert (the "Agency") has previously paid the costs of the acquisition and development of certain property located at 75433 Orange Blossom Lane, Palm Desert, CA (the "Property") for use as a childcare facility (the "Facility"). The Agency wishes to convey the Facility to the City of Palm Desert (the "City"), after which the City will own the Facility. Due to the transfer of ownership of the Facility to the City, the Agency is complying with California Health and Safety Code Sections 33445 and 33679 of the Community Redevelopment Law. The subject property is located in the City of Palm Desert and within Redevelopment Project Area No. 1 (the "Project Area"). The City Council has previously determined that the Project Area is an area in which the combination of conditions of blight is so prevalent and so substantial that it causes 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 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 deteriorated, aged, and obsolete buildings. In addition, the Project Area is characterized by the existence of inadequate public improvements and public facilities, including inadequate social service facilities which cannot be remedied by private or governmental action without redevelopment. The Property previously was a vacant, underutilized site. The acquisition and development of the Property thereby assists in the elimination of conditions of blight within the Project Area that are caused by underutilized property, which in turn assists in eliminating a factor that prevents or substantially hinders the economically viable use of land and encourages private -sector investment in the Project Area. In addition, the Facility helps residents of the Project Area with children who need to work, encourages business expansion and aids the effort to revitalize the Project Area, as well as providing safe childcare and early childhood educational opportunities for children in the Project Area. As a result, the Facility contributes to an improved business climate by assuring local employers that they will have employees available, and thus assists in eliminating conditions of economic blight within the Project Area. Section 2. The acquisition and development of the Facility are not within the City's budget. No moneys of the City are available to pay for the cost of such acquisition and RESOLUTION NO. 538 development. Traditional methods of financing such as the issuance of general obligation bonds are unavailable as a practical matter because of the extraordinary majority voter approval requirements of two-thirds of the electorate. Assessment financing or special tax financing could overburden benefiting properties with assessments or special taxes and, in addition, special taxes require a two-thirds vote and assessments are subject to a majority protest. Section 3. The Agency has published and made available the summary report required by Section 33670 on the Facility, a copy of which is attached hereto as Exhibit A, and held a duly noticed public hearing on the use of tax increment funds for the Facility on January 11, 2007. Section 4. The Agency hereby finds and determines that based upon the foregoing and other information presented to the Agency: (i) the Facility is of benefit to the Project Area and the immediate neighborhood in which the Faculty is located; (ii) no other reasonable means of financing the Facility is available to the community; and (iii) the payment of funds for the cost of such acquisition will assist in the elimination of one or more blighting conditions inside the Project Area and is consistent with the Agency's implementation plan and the goals and objectives of such plan adopted pursuant to Health and Safety Code Section 33490. Section 5. The Agency hereby approves of the use of Agency funds for the cost of the acquisition and development of the Facility. Section 6. The Agency hereby approves that certain Conveyance Agreement between the Agency and the City related to the transfer of the Faculty (the "Conveyance Agreement") and that certain Assignment and Assumption of Leases between the Agency and the City (the "Assignment"), and authorizes the Executive Director of the Agency to execute the Conveyance Agreement and Assignment on behalf of the Agency and to take any and all other steps necessary to implement the Conveyance Agreement and Assignment. PASSED, APPROVED and ADOPTED this 1 day of January 2007 by following vote, to wit: AYES: NOES: ABSENTS: ABSTAINS: Richard S. Kelly, Chairman Attest: Rachelle D. Klassen, Secretary 2 G:',RDA\Beth Longman\Staff Reports\Walker\RDA Res Appr Pmt (Benson) OI 1107.DOC RESOLUTION NO. 07- 2 A RESOLUTION OF THE CITY OF PALM DESERT CONSENTING TO PAYMENT BY THE REDEVELOPMENT AGENCY OF THE CITY OF PALM DESERT FOR THE COST OF THE ACQUISITION AND DEVELOPMENT OF PROPERTY AT 75433 ORANGE BLOSSOM LANE FOR A CHILDCARE CENTER, AND AUTHORIZING EXECUTION OF A CONVEYANCE AGREEMENT AND ASSIGNMENT AND ASSUMPTION OF LEASES WITH THE REDEVELOPMENT AGENCY RELATED TO SAID PROPERTY. THE CITY COUNCIL OF THE CITY OF PALM DESERT HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS: Section 1. The Redevelopment Agency of the City of Palm Desert (the "Agency") has previously paid the costs of the acquisition and development of certain property located at 75433 Orange Blossom Lane, Palm Desert, CA (the "Property") for use as a childcare facility (the "Facility"). The Agency wishes to convey the Facility to the City of Palm Desert (the "City"), after which the City will own the Facility. Due to the transfer of ownership of the Facility to the City, the City is complying with California Health and Safety Code Sections 33445 and 33679 of the Community Redevelopment Law. The subject property is located in the City of Palm Desert and within Redevelopment Project Area No. 1 (the "Project Area"). The City Council has previously determined that the Project Area is an area in which the combination of conditions of blight is so prevalent and so substantial that it causes 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 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 deteriorated, aged, and obsolete buildings. In addition, the Project Area is characterized by the existence of inadequate public improvements and public facilities, including inadequate social services facilities which cannot be remedied by private or governmental action without redevelopment. The Property previously was a vacant, underutilized site. The acquisition and development of the Property thereby assists in the elimination of conditions of blight within the Project Area that are caused by underutilized property, which in turn assists in eliminating a factor that prevents or substantially hinders the economically viable use of land and encourages private -sector investment in the Project Area. In addition, the Facility helps residents of the Project Area with children who need to work, encourages business expansion and aids the effort to revitalize the Project Area, as well as providing safe childcare and early childhood educational opportunities for children in the Project Area. As a result, the Facility contributes to an improved business climate by assuring local employers that they will have employees available, and thus assists in eliminating conditions of economic blight within the Project Area. Section 2. The acquisition and development of the Facility are not within the City's budget. No moneys of the City are available to pay for the cost of such acquisition and RESOLUTION NO. 07-2 development. Traditional methods of financing such as the issuance of general obligation bonds are unavailable as a practical matter because of the extraordinary majority voter approval requirements of two-thirds of the electorate. Assessment financing or special tax financing could overburden benefiting properties with assessments or special taxes and, in addition, special taxes require a two-thirds vote and assessments are subject to a majority protest. Section 3. The Agency has published and made available the summary report required by Section 33670 on the Facility, a copy of which is attached hereto as Exhibit A, and the City Council held a duly noticed public hearing on the use of tax increment funds for the Facility on January 11, 2007. Section 4. The City Council hereby finds and determines that based upon the foregoing and other information presented to the City: (i) the Facility is of benefit to the Project Area and the immediate neighborhood in which the Faculty is located; (ii) no other reasonable means of financing the Facility is available to the community; and (iii) the payment of funds for the cost of such acquisition will assist in the elimination of one or more blighting conditions inside the Project Area and is consistent with the Agency's implementation plan and the goals and objectives of such plan adopted pursuant to Health and Safety Code Section 33490. Section 5. The City Council hereby consents to the use of Agency funds for the cost of the acquisition and development of the Facility. Section 6. The City Council hereby approves that certain Conveyance Agreement between the Agency and the City related to the transfer of the Faculty (the "Conveyance Agreement") and that certain Assignment and Assumption of Leases between the Agency and the City (the "Assignment"), and authorizes the City Manager to execute the Conveyance Agreement and Assignment on behalf of the City and to take any and all other steps necessary to implement the Conveyance Agreement and Assignment. PASSED, APPROVED and ADOPTED this 11th day of January 2007, by the following vote, to wit: AYES: NOES: ABSENTS: ABSTAINS: Richard S. Kelly, Mayor Attest: Rachelle D. Klassen, City Clerk 2 G:\RDA\Beth Longman\Staff Reports\Walkcr\City Res Approving Pmt (Benson) 011 I07.DOC CONTRACT NO. R11813 SECOND AMENDMENT TO LEASE This SECOND AMENDMENT TO LEASE ("Amendment") is made this 11th day of January, 2007, by and between the CITY OF PALM DESERT, a California municipal corporation ("Landlord"), as successor -in -interest to the PALM DESERT REDEVELOPMENT AGENCY, a public body, corporate and politic ("PDRA") and THE FAMILY YMCA OF THE DESERT, a California nonprofit corporation ("Tenant"). RECITALS A. PDRA and Tenant entered into that certain Lease dated December 13, 2001, as amended (the "Lease"), whereby Tenant has leased that certain property more particularly shown on Exhibit "A" to the Lease. B. Landlord has succeeded to the interest of PDRA by assignment of the Lease, and Landlord and Tenant wish to amend the Lease to modify the terms of the Lease in accordance with the provisions of this Amendment. NOW, THEREFORE, in consideration of the facts contained in the Recitals above, the mutual covenants and conditions below, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant amend the Lease as follows: AMENDMENT 1. Section 1.4 of the Lease is hereby deleted in its entirety and replaced with the following: "The "Term" of the Lease shall commence on the date that this Amendment has been executed (the "Term Commencement Date") and shall end five (5) years thereafter." 2. In the event of a conflict between the terms of the Lease and the terms of this Amendment, the terms of this Amendment shall be controlling. Any other terms, covenants and conditions of the Lease remain in full force and effect. In addition, except as otherwise stated in this Amendment, all initially capitalized terms will have the same respective defined meaning stated in the Lease. 3. This Amendment may be executed in several counterparts, each of which shall be deemed an original, and all of such counterparts together shall constitute one and the same instrument. 4. All other terms and conditions of the Lease shall remain in full force and affect. P6402-0001 \942484v 1.doc CONTRACT NO. R11813 IN WITNESS WHEREOF, Landlord and Tenant have caused this Amendment to Lease to be executed by each party's duly authorized representative effective as of the date first above written. LANDLORD: CITY OF PALM DESERT, a California municipal corporation By: Name: Richard S. Kelly Title: Mayor ATTEST: Rachelle D. Klassen, Secretary TENANT: THE FAMILY YMCA OF THE DESERT, a California nonprofit corporation By: Name: Its: 2 P6402-0001\942484v1.doc CONTRACT N0. C26100 CONVEYANCE AGREEMENT 44 911 CABRILLO AVENUE PALM DESERT CA, 92260 THIS CONVEYANCE AGREEMENT (this "Agreement") is made and entered into as of January 11, 2007, by and between the CITY OF PALM DESERT, a California municipal corporation ("Buyer"), and the PALM DESERT REDEVELOPMENT AGENCY, a public body, corporate and politic ("Seller"), with respect to the following: RECITALS: Seller is the owner of certain improved real property, and all improvements and buildings located thereon, and located in the City of Palm Desert, County of Riverside, State of California, as more particularly described in Exhibit A attached hereto (the "Property"). By this Agreement, Seller is agreeing to sell the Property to Buyer and Buyer is agreeing to buy the Property from Seller in accordance with the terms hereof. AGREEMENT: NOW, THEREFORE, the parties hereto do hereby agree as follows: 1. Conveyance. The transfer of the Property contemplated hereby(the "Closing") shall occur on or before January 1 l, 2007 (the "Closing Date"). 2. Price. The price is One Dollar($1.00) (the "Price"). 3. Execution of Documents. On or prior to the Closing Date, (i) Seller agrees to execute and deliver to Buyer a duly executed and acknowledged grant deed in the form attached hereto as Exhibit B (the "Grant Deed") and (ii) Seller and Buyer each agree to execute and deliver to the other an assignment of lease agreement in the form attached hereto as Exhibit C (the "AssignmenY'). 4. Authorization to Record. After delivery of the Grant Deed and Assignment, Buyer shall cause the Grant Deed to be recorded in the Official Records of Riverside County, California. 5. Costs and Prorations. Each party will pay its own fees, costs and expenses incurred in connection with this Agreement and the Closing. Any non-delinquent real estate taxes and other assessments or impositions against the Property shall be pro-rated as of the Closing on the basis of a 365-day year. 6. AS-IS, WHERE-IS. Prior to the Closing, Buyer shall conduct all tests, studies and/or investigations with respect to the Property as Buyer deems appropriate. Buyer shall rely solely upon its own tests, studies and/or investigations of the Property in purchasing the same and shall not rely in any way upon any representations, statements, agreements, warranties, studies, reports, descriptions, guidelines or other information or material furnished by Seller or its representatives, whether oral or written, express or implied, of any nature whatsoever regarding any of the foregoing matters. Buyer represents and warrants that it is acquiring the PG402-0001\92 8885 v 1.doc CONTRACT N0. C26100 Property"AS IS, WHERE IS"without representation by Seller, and that no patent or latent condition affecting the Property in any way, whether or not known or discoverable or hereafter discovered, shall affect Buyer's obligations contained in this Agreement, nor shall any such condition give rise to any right of damages, rescission or otherwise against Seller. 7. Default. In the event of a breach or default under this Agreement by either party, the non-defaulting party shall have the right to terminate this Agreement by delivering notice thereof to the defaulting party. Such termination by a non-defaulting party shall be without prejudice to the non-defaulting party's rights and remedies against the defaulting party at law or equity. 8. Notices. Except as otherwise required by law, any notice, request, direction, demand, consent, waiver, approval or other communication reyuired or permitted to be given hereunder shall not be effective unless it is given in writing and shall be delivered (a) in person, (b) by certified mail, postage prepaid, return receipt requested, or(c) by a commercial overnight courier that guarantees next day delivery and provides a receipt, and addressed to the parties at the addresses stated below, or at such other address as either party may hereafter notify the other in writing as aforementioned If to Buyer: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260 Attention.: City Manager If to Seller: Palm Desert Redevelopment Agency 73-510 Fred Waring Drive Palm Desert, California 92260 Attention.: Service of any such notice or other communications so made shall be deemed effective on the day of actual delivery(whether accepted or refused) as shown by the addressee's return receipt if by certified mail, and as confirmed by the courier service if by courier; provided, however, that if such actual delivery occurs after 5:00 p.m. (local time where received) or on a non business day, then such notice or demand so made shall be deemed effective on the first business day following the day of actual delivery. No communications via facsimile or electronic mail shall be effective to give any notice, request, direction, demand, consent, waiver, approval or other communications hereunder. 9. Amendments. Any amendments to this Agreement shall be effective only when duly executed by Seller and Buyer. 10. Counterparts. This Agreement may be executed in counterparts, each of which, when taken together, shall constitute one original of this Agreement. 11. Time is of the Essence. The parties agree that time is of the essence with respect to each provision hereof. 2 PG402-0001`9288SSvl.doc CONTRACT N0. C26100 12. Entire A�reement. This Agreement, including all exhibits attached hereto, integrates all of the terms and conditions pertaining to the Closing, and supersedes all negotiations or previous agreements between the parties with respect thereto. 13. Severabilitv. Invalidation of any of the provisions hereof by judgment or court order shall in no way affect any of the other provisions hereof, and the latter shall remain in full force and effect. 14. No Third Part�Beneficiary Ri ts. This Agreement is entered into for the sole benefit of Seller and Buyer and no other parties are intended to be direct or incidental beneficiaries of this Agreement, and no third party shall have any right in, under or to this Agreement. 15. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 16. Further pocuments. Each party will, as often as it shall be requested by the other party, execute, acknowledge and deliver such other documents and perform such other acts as may reasonably be necessary in order to consummate the Closing and otherwise carry out the intent and purpose of this Agreement. [This Space Intentionally Left Blank; Signature On The Next Page] 3 P6402-0001��.92A885�I.doc CONTRACT N0. C26100 IN WITNESS WHEREOF, the parties have caused this Conveyance Agreement to be executed as of the date first above written. BUYER: CITY OF PALM DESERT, a California municipal corporation By: Name: Richard S. Kell Its: Ma or ATTEST: Rachelle D. Klassen, City Clerk SELLER: PALM DESERT REDEVELOPMENT AGENCY, a public body, corporate and politic By: Name: Richard S. Kellv Its: Chairman ATTEST: Rachelle D. Klassen, Secretary 4 P6402-0001\928885v 1.doc CONTRACT N0. C26100 EXHIBIT A LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN AS THE "LAND" IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF RIVERSIDE, CITY OF PALM DESERT, AND IS MORE PARTICULARLY DESCRIBED AS FOLLOWS: LOTS 10 AND 11 IN BLOCK "C"OF PALMA VILLAGE, UNIT NO. 6, IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS SHOWN BY MAP ON FILE ]N BOOK 20, PAGE(S) 81, 82 AND 83 1NCLUSIVE OF MAPS, RECORDS OF RIVERSIDE COLJNTY, CALIFORNIA. EXCEPTING FROM LOT 1 l, THAT PORTION GRANTED TO THE COUNTY OF RIVERSIDE BY DEED RECORDED MAY 11, 1966 AS 1NSTRUMENT NO. 49650 OF OFFICIAL RECORDS. Exhibit A 1 I'G402-0001`:928885��1.doc CONTRACT N0. C26100 EXHIBIT B RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: Palm Desert Redevelopment Agency 73-510 Fred Waring Drive Palm Desert, California 92260 Attention.: APN: [Space Above For Recorder's Use Only] Recording Fee: Exempt pursuant to California Government Code Section 27383 Documentary Transfer Tax: Exempt pursuant to California Revenue & Taxation Code Section 11922 GRANT DEED FOR VALUE RECEIVED, the PALM DESERT REDEVELOPMENT AGENCY, a public body, corporate and politic, hereby GRANTS to the CITY OF PALM DESERT, a California municipal corporation, all of its right, title and interest in and to that certain real property situated in the City of Palm Desert, County of Riverside, State of California, more particularly described on Exhibit A attached hereto; SUBJECT TO all easements, covenants, conditions, restrictions, rights of way, reservations and all other matters of record. [This Space Intentionally Left Blank; Signature On The Next Page] Exhibit B 1 P6402-0001�92R885v1.doc CONTRACT N0. C26100 IN WITNESS WHEREOF, the undersigned has executed this Grant Deed as of , 2007. PALM DESERT REDEVELOPMENT AGENCY, a public body, corporate and politic By: Name: Richard S. Kell Its: Chairman ATTEST: Rachelle D. Klassen, Secretary Exhibit B 2 P6402-0001\928885v1.doc CONTRACT N0. C26100 STATE OF CALIFORNIA ) ) COUNTY OF RIVERSIDE ) On , 2007, before me, , a Notary Public in and for the State of California, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence)to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument, the person, or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. Notary Public in and for the State of California (SEAL) Exhibit B 3 PGa02-0O01�qzs88�v I.doc CONTRACT NO. C26100 CERTIFICATE OF ACCEPTANCE (California Government Code Section 27281) This is to certify that the interest in real property conveyed by that certain Grant Deed dated as of , 2007, from the Palm Desert Redevelopment Agency, a public body, corporate and politic, to the City of Palm Desert, a California municipal corporation, is hereby accepted by the undersigned officer on behalf of the City Of Palm Desert pursuant to the authority conferred by Resolution No. of the City Council of the City of Palm Desert adopted on , 2007, and the grantee consents to the recordation thereof by its duly authorized officer. Dated as of: , 2007. Richard S. Kelly, Mayor ATTEST: Rachelle D. Klassen, City Clerk Exhibit B 4 P6402-0001\928885v1.doc CONTRACT NO. C26100 STATE OF CALIFORNIA ) ) COUNTY OF RIVERSIDE ) On , 2007, before me, , a Notary Public in and for the State of California, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument, the person, or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. Notary Public in and for the State of California (SEAL) Exhibit B 5 P6402-0001`.92888Svl.doc CONTRACT NO. C26100 EXHIBIT A TO GRANT DEED LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN AS THE "LAND" IS SITUATED iN THE STATE OF CALIFORNIA, COUNTY OF RIVERSIDE, CITY OF PALM DESERT, AND IS MORE PARTICULARLY DESCRIBED AS FOLLOWS: LOTS 10 AND 11 IN BLOCK "C" OF PALMA VILLAGE, UNIT NO. 6, IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS SHOWN BY MAP ON FILE IN BOOK 20, PAGE(S) 81, 82 AND 83 INCLUSIVE OF MAPS, RECORDS OF RIVERSIDE COLINTY, CALIFORNIA. EXCEPTING FROM LOT l l, THAT PORTION GRANTED TO THE COUNTY OF RIVERSIDE BY DEED RECORDED MAY 11, 1966 AS INSTRUMENT NO. 49650 OF OFFICIAL RECORDS. Exhibit B 6 P�,aoz-000��,��z88as�i.d�� CONTRACT NO. C26100 EXHIBIT C ASSIGNMENT AND ASSUMPTION OF LEASES This Assignment and Assumption of Leases (this "AssignmenY') dated as of January 11, 2007 (the "Effective Date") is entered into by and between CITY OF PALM DESERT, a California municipal corporation ("Assignee"), and PALM DESERT REDEVELOPMENT AGENCY, a public body, corporate and politic ("Assignor"). WITNESSETH WHEREAS, Assignor is the lessor or landlord under that certain lease agreement identified on Exhibit A attached hereto (the "Lease") executed with respect to that certain real property located in the City of Palm Desert, California (the"Property") as more fully described in Exhibit B attached hereto; WHEREAS, Assignor, as Seller, and Assignee, as Buyer, have entered into that certain Conveyance Agreement dated as of January 11, 2007 (the "Conveyance Agreement") conveying the Property(as defined in the Conveyance Agreement); and WHEREAS, Assignor desires to assign its interest as lessor or landlord in the Lease to Assignee, and Assignee desires to accept the assignment thereof; Now, THEREFORE, in consideration of the promises and conditions contained herein, the parties hereby agree as follows: 1. Effective as of the Effective Date (as defined below), Assignor hereby assigns to Assignee all of its right, title and interest in and to the Lease. 2. Effective as of the Effective Date, Assignee hereby assumes all of the Assignor's obligations under the Lease. 3. This Assignment shall be binding on and inure to the benefit of the parties hereto, their heirs, executors, administrators, successors in interest and assigns. 4. This Assignment shall be governed by and construed in accordance with the laws of the State of California. 5. This Assignment is delivered pursuant to the Conveyance Agreement. 6. This Assignment may be executed in counterparts, each of which, when taken together, shall constitute one original of this Assignment. Exhibit C 1 P(402-0001`.928885��l.doc CONTRACT NO. C26100 IN WITNESS WHEREOF, Assignor and Assignee have executed this Assignment the day and year first above written. Assignor: PALM DESERT REDEVELOPMENT AGENCY, a public body, corporate and politic By: Name: Richard S. Kelly Title: Chairman Attest: Rachelle D. Klassen, Secretary Assignee: CITY OF PALM DESERT, a California municipal corporation By: Name: Richard S. Kelly Title: Mavor Exhibit C 2 P6402-0001\928885v l.doc CONTRACT NO. C26100 EXHIBIT A to Assignment of Leases Lease Agreement between Palm Desert Redevelopment Agency and Desert Sands School District dated as of July 14, 2005. Exhibit C 3 Pt�aoz-uooi��2saH�.-i do� CONTRACT N0. C26100 EXHIBIT B to Assignment of Leases Legal Description Of The Property THE LAND REFERRED TO HEREIN AS THE "LAND" IS SITUATED IN THE STATE OF CALIFORN[A, COLJNTY OF RIVERSIDE, CITY OF PALM DESERT, AND IS MORE PARTICULARLY DESCRIBED AS FOLLOWS: LOTS 10 AND 11 IN BLOCK"C" OF PALMA VILLAGE, UNIT NO. 6, IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS SHOWN BY MAP ON FILE IN BOOK 20, PAGE(S) 81, 82 AND 83 INCLUSIVE OF MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. EXCEPTING FROM LOT 11, THAT PORTION GRANTED TO THE COUNTY OF RIVERSIDE BY DEED RECORDED MAY 11, 1966 AS 1NSTRUMENT NO. 49650 OF OFFICIAL RECORDS. Exhibit C 4 PG402-0001;9285RS�I.doc CONTRACT N0. C26110 CONVEYANCE AGREEMENT 75433 ORANGE BLOSSOM LANE PALM DESERT, CA 92260 THIS CONVEYANCE AGREEMENT (this "Agreement") is made and entered into as of January 1 l, 2007, by and between the CITY OF PALM DESERT, a California municipal corporation ("Buyer"), and the PALM DESERT REDEVELOPMENT AGENCY, a public body, corporate and politic ("Seller"), with respect to the following: RECITALS: Seller is the owner of certain improved real property, and all improvements and buildings located thereon, and located in the City of Palm Desert, County of Riverside, State of California, as more particularly described in Exhibit A attached hereto (the "Property"). By this Agreement, Seller is agreeing to sell the Property to Buyer and Buyer is agreeing to buy the Property from Seller in accordance with the terms hereof. AGREEMENT: NOW, THEREFORE, the parties hereto do hereby agree as follows: 1. Convevance. The transfer of the Property contemplated hereby (the "Closing") shall occur on or before January 1 l, 2007 (the"Closing Date"}. 2. Price. The price is One Dollar($1.00) (the "Price"). 3. Execution of Documents. On or prior to the Closing Date, (i) Seller agrees to execute and deliver to Buyer a duly executed and acknowledged grant deed in the form attached hereto as Exhibit B (the"Grant Deed") and (ii) Seller and Buyer each agree to execute and deliver to the other an assignment of lease agreement in the form attached hereto as Exhibit C (the"Assignment"). 4. Authorization to Record. After delivery of the Grant Deed and Assigrunent, Buyer shall cause the Grant Deed to be recorded in the Official Records of Riverside County, California. 5. Costs and Prorations. Each party will pay its own fees, costs and expenses incurred in connection with this Agreement and the Closing. Any non-delinquent real estate taxes and other assessments or impositions against the Property shall be pro-rated as of the Closing on the basis of a 365-day year. 6. AS-IS, WHERE-IS. Prior to the Closing, Buyer shall conduct all tests, studies and/or investigations with respect to the Property as Buyer deems appropriate. Buyer shall rely solely upon its own tests, studies and/or investigations of the Property in purchasing the same and shall not rely in any way upon any representations, statements, agreements, wananties, studies, reports, descriptions, guidelines or other information or material furnished by Seller or its representatives, whether oral or written, express or implied, of any nature whatsoever regarding any of the foregoing matters. Buyer represents and warrants that it is acquiring the P6402-0041`.928843v 1.doc CONTRACT NO. C26110 Property"AS IS, WHERE IS" without representation by Seller, and that no patent or latent condition affecting the Property in any way, whether or not known or discoverable or hereafter discovered, shall affect Buyer's obligations contained in this Agreement, nor shall any such condition give rise to any right of damages, rescission or otherwise against Seller. 7. Default. In the event of a breach or default under this Agreement by either party, the non-defaulting party shall have the right to terminate this Agreement by delivering notice thereof to the defaulting party. Such termination by a non-defaulting party shall be without prejudice to the non-defaulting party's rights and remedies against the defaulting party at law or equity. 8. Notices. Except as otherwise required by law, any notice, request, direction, demand, consent, waiver, approval or other communication required or permitted to be given hereunder shall not be effective unless it is given in writing and shall be delivered (a) in person, (b) by certified mail, postage prepaid, return receipt requested, or (c) by a commercial overnight courier that guarantees next day delivery and provides a receipt, and addressed to the parties at the addresses stated below, or at such other address as either party may hereafter notify the other in writing as aforementioned lf to Buyer: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260 Attention.: City Manager If to Seller: Palm Desert Redevelopment Agency 73-510 Fred Waring Drive Palm Desert, California 922b0 Attention.: Service of any such notice or other communications so made shall be deemed effective on the day of actual delivery(whether accepted or refused) as shown by the addressee's return receipt if by certified mail, and as confirmed by the courier service if by courier; provided, however, that if such actual delivery occurs after 5:00 p.m. (local time where received)or on a non business day, then such notice or demand so made shall be deemed effective on the first business day following the day of actual delivery. No communications via facsimile or electronic mail shall be effective to give any notice, request, direction, demand, consent, waiver, approval or other communications hereunder. 9. Amendments. Any amendments to this Agreement shall be effective only when duly executed by Seller and Buyer. 10. Counterparts. This Agreement may be executed in counterparts, each of which, when taken together, shall constitute one original of this Agreement. 11. Time is of the Essence. The parties agree that time is of the essence with respect to each provision hereof. 2 PG402-0001'�928843v1.doc CONTRACT NO. C26110 12. Entire A�reement. This Agreement, including all exhibits attached hereto, integrates all of the terms and conditions pertaining to the Closing, and supersedes all negotiations or previous agreements between the parlies with respect thereto. 13. Severabilitv. Invalidation of any of the provisions hereof by judgment or court order shall in no way affect any of the other provisions hereof, and the latter shall remain in full force and effect. 14. No Third Party Beneficiary Rights. This Agreement is entered into for the sole benefit of Seller and Buyer and no other parties are intended to be direct or incidental beneficiaries of this Agreement, and no third party shall have any right in, under or to this Agreement. 15. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 16. Further pocuments. Each party will, as often as it shall be requested by the other party, execute, acknowledge and deliver such other documents and perform such other acts as may reasonably be necessary in order to consummate the Closing and otherwise carry out tlle intent and purpose of this Agreement. [This Space Intentionally Left Blank; Signature On The Next Page] 3 PG4pz-OOOi:�)28843�1.doc CONTRACT NO. C26110 IN WITNESS WHEREOF, the parties have caused this Conveyance Agreement to be executed as of the date first above written. BUYER: CITY OF PALM DESERT, a California municipal corporation By: Name: Richard S. Kellv Its: Mayor ATTEST: Rachelle D. Klassen, City Clerk SELLER: PALM DESERT REDEVELOPMENT AGENCY, a public body, corporate and politic By: Name: Richard S. Kellv Its: Chairman ATTEST: Rachelle D. Klassen, Secretary 4 P6402-0001\928843v I.doc CONTRACT NO. C26110 EXHIBIT A LEGAL DESCRIPTION That certain real property situated in the City of Palm Desert, County of Riverside, State of California, described as follows: LOT 164 OF TRACT MAP NO. 27546, IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED 1N BOOK 249 OF MAPS, PAGES 63 THROUGH 68, 1NCLUSIVE, RECORDS OF SAID COUNTY. Exhibit A 1 Y6402-0001\928843v1.doc CONTRACT N0. C26110 EXHIBIT B RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: Palm Desert Redevelopment Agency 73-510 Fred Waring Drive Palm Desert, California 92260 Attention.: APN: [Space Above For Recorder's Use OnlyJ Recording Fee: Exempt pursuant to California Government Code Section 27383 Documentary Transfer Tax: Exempt pursuant to California Revenue & Taxation Code Section 11922 GRANT DEED FOR VALUE RECEIVED, the PALM DESERT REDEVELOPMENT AGENCY, a public body, corporate and politic, hereby GRANTS to the CITY OF PALM DESERT, a California municipal corporation, all of its right, title and interest in and to that certain real property situated in the City of Palm Desert, County of Riverside, State of California, more particularly described on Exhibit A attached hereto; SUBJECT TO all easements, covenants, conditions, restrictions, rights of way, reservations and all other matters of record. [This Space Intentionally Left Blank; Signature On The Next Page] Exhibit B 1 P6402-0001`�,92R843v l.doc CONTRACT N0. C26110 IN WITNESS WHEREOF, the undersigned has executed this Grant Deed as of , 2007. PALM DESERT REDEVELOPMENT AGENCY, a public body, corporate and politic By: Name: Richard S. Kelly Its: Chairman ATTEST: Rachelle D. Klassen, Secretary Exhibit B 2 P6402-0001\928843v1.doc CONTRACT NO. C26110 STATE OF CALIFORNIA ) ) COUNTY OF RIVERSIDE ) On , 2007, before me, , a Notary Public in and for the State of California, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument, the person, or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. Notary Public in and for the State of California (SEAL) Exhibit B 3 PG402-00(1 I'928843v I.doc � CONTRACT NO. C26110 CERTIFICATE OF ACCEPTANCE (California Government Code Section 27281) This is to certify that the interest in real property conveyed by that certain Grant Deed dated as of _ , 2007, from the Palm Desert Redevelopment Agency, a public body, corporate and politic, to the City Of Palm Desert, a California municipal corporation, is hereby accepted by the undersigned officer on behalf of the City Of Palm Desert pursuant to the authority conferred by Resolution No. of the City Council of the City Of Palm Desert adopted on , 2007, and the grantee consents to the recordation thereof by its duly authorized officer. Dated as of: , 2007. Richard S. Kelly, Mayor ATTEST: Rachelle D. Klassen, City Clerk Exhibit B 4 P6402-0001\928843v1.doc CONTRACT NO. C26110 STATE OF CALIFORNIA ) ) COUNTY OF RIVERSIDE ) On , 2007, before me, , a Notary Public in and for the State of California, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument, the person, or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. Notary Public in and for the State of California (SEAL) Exhibit B 5 P6402-OOQ{`928843v1.doc CONTRACT NO. C26110 EXHIBIT A TO GRANT DEED LEGAL DESCRIPTION That certain real property situated in the City of Palm Desert, County of Riverside, State of California, described as follows: LOT 164 OF TRACT MAP NO. 27546, IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 249 OF MAPS, PAGES 63 THROUGH 68, INCLUSIVE, RECORDS OF SAID COUNTY. Exhibit B 6 PG402-0001'�928843v1.doc CONTRACT NO. C26110 EXHIBIT C ASSIGNMENT AND ASSUMPTION OF LEASES This Assignment and Assumption of Leases (this"Assignment") dated as of January 11, 2007 (the"Effective Date") is entered into by and between CITY OF PALM DESERT, a California municipal corporation ("Assignee"), and PALM DESERT REDEVELOPMENT AGENCY, a public body, corporate and politic ("Assignor"). WITNESSETH WHEREAS, Assignor is the lessor or landlord under that certain lease agreement identified on Exhibit A attached hereto (the "Lease") executed with respect to that certain real property located in the City of Palm Desert, California(the "Property") as more fully described in Exhibit B attached hereto; WHEREAS, Assignor, as Se{ler, and Assignee, as Buyer, have entered into that certain Conveyance Agreement dated as of January 11, 2007 (the "Conveyance Agreement") conveying the Property(as defined in the Conveyance Agreement); and WHEREAS, Assignor desires to assign its interest as lessor or landlord in thc Lease to Assignee, and Assignee desires to accept the assignment thereof; Now, THEREFORE, in consideration of the promises and conditions contained herein, . the parties hereby agree as follows: 1. Effective as of the Effective Date (as defined below), Assignor hereby assigns to Assignee all of its right, title and interest in and to the Lease. 2. Effective as of the Effective Date, Assignee hereby assumes all of the Assignor's obligations under the Lease. 3. This Assignment shall be binding on and inure to the benefit of the parties hereto, their heirs, executors, administrators, successors in interest and assigns. 4. This Assignment shall be governed by and construed in accordance with the laws of the State of California. 5. This Assignment is delivered pursuant to the Conveyance Agreement. 6. This Assignment may be executed in counterparts, each of which, when taken together, shall constitute one original of this Assignment. Exhibit C 1 P6402-0001\928843 v l.doc CONTRACT NO. C26110 [N WITNESS WHEREOF, Assignor and Assignee have executed this Assignment the day and year first above written. Assignor: PALM DESERT REDEVELOPMENT AGENCY, a public body, corporate and politic By: Name: Richard S. Kellv Title: Chairman Attest: Rachelle D. Klassen, Secretary Assignee: CITY OF PALM DESERT, a California municipal corporation By: Name: Richard S. Kellv Title: Mavor Exhibit C 2 PG402-0001\928843 v 1.doc CONTRACT N0. C26110 EXHIBIT A to Assignment of Leases Lease Agreement (First Extension) between the Palm Desert Redevelopment Agency and the YMCA Family of the Desert dated as of December l 3, 2001. Exhibit C 3 ���ao2-000i;��zssa��t.do� CONTRACT NO. C26110 EXHIBIT B to Assignment of Leases Legal Description Of The Property That certain real property situated in the City of Palm Desert, County of Riverside, State of California, described as follows: LOT 164 OF TRACT MAP NO. 27546, IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 249 OF MAPS, PAGES 63 THROUGH 68, INCLUSIVE, RECORDS OF SAID COLTNTY. Exhibit C 4 P�,ao2-000 i�,��zxsa3�-i.d�>�