HomeMy WebLinkAboutC18171 - AMND - St Imprvmnts Associated w/Toscana CC Dvlpmnt Contract No. C18171
CITY OF PALM DESERT
PUBLIC WORKS DEPARTMENT
STAFF REPORT
REQUEST: Approve an Amendment to the Reimbursement Agreement with
Sunrise Desert Partners for Street Improvements Associated with
the Toscana Country Club Development
SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works
APPLICANT: Sunrise Desert Partners
Attn: Phillip K. Smith, Jr.
Attn: Nancy Hayes
300 Eagle Dance Circle
Palm Desert, CA 92211
DATE: April 9, 2009
CONTENTS: Amendment to Agreement C18170
Letter Requesting Extension of Agreement
Reimbursement Agreement No. C18170
Recommendation:
By Minute Motion:
1. Approve an amendment to Reimbursement Agreement C18170
with Sunrise Desert Partners, requiring interest on the loan be
brought current through March 31, 2009, and extending payment of
the principal for a period of two years at an interest rate of six
percent per annum; and
2. Authorize the Mayor to execute the amendment.
Background:
On February 26, 2009, the City Council authorized staff to negotiate an amendment to
Reimbursement Agreement No. C18170 with Sunrise Desert Partners, developer of the
Toscana Country Club. The original agreement provided for reimbursement to the City
for costs related to the installation of certain street improvements on Hovley Lane East.
Under the terms of the original agreement, the principal loan amount ($689,585.90) plus
interest ($124,125.46) became due on February 1, 2009.
Under the provisions of the amendment to the agreement that was negotiated by staff
and drafted by the City Attorney, Sunrise Desert Partners will bring the interest current
Staff Report
Approve Amended Reimbursement Agreement Sunrise Desert Partners
Page 2 of 2
April 9, 2009
on the loan through March 31, 2009, and will make interest payments on the calendar
quarter for the life of the loan thereafter. Reimbursement of the principal will be
continued to February 1, 2011. The principal will continue to accrue interest at the rate
of six percent per annum.
Fiscal Impact: Approval of the request as received will delay the City's receipt of
the principal amount of $689,585.90, but will garner a six percent per annum return on
the investment.
Therefore, staff recommends that City Council approve an amendment to the
reimbursement agreement with Sunrise Desert Partners for street improvements
associated with the Toscana Country Club development and authorize the Mayor to
execute the amendment.
Prepared By: Department Head:
,��fti ��'
Debra Lee Mark Gree wood, P.E.
Management Analyst Director of Public Works
1
App oval: !
, 1�
��
r �,,'
.. ..`��//�-�ii!,.r- �
Paul Gibson Homer Croy
Finance Director ACM for D .16pment Services
CITY COUNCILA�ON
APPROVED DFNTFD
. Wohlmuth itECEIVED OTHER
C� Manager
MEET, G D " •
AYES: � 1" `1 � � '�' �
idni NOES:
ABSENT: `�%
ABSTAIN: -
VERIFIED BY:
Original on Fite with City k's Office
Contract No. C18171
REIMBURSEMENT AGREEMENT AMENDMENT
This Amendment to Reimbursement Agreement is made this day of
, 2009, between the City of Palm Desert as a Municipal Corparation("City"),
and Sunrise Desert Partners, a California Limited Partnership ("Developer").
A. WHEREAS, the parties hereto have heretofore entered into a Reimbursement
Agreement dated August 24, 2000 relating to the development by the developer of two golf
courses and approximately 650 homes, in the City of Indian Wells.
B. WHEREAS, the northerly boundary abuts Hovley Lane East, and the north half
of Hovley Lane East is located in the City of Palm Desert, and has been fully improved, the
south half which is not improved is located in the City of Indian Wells.
C. WHEREAS, the Developer is heretofore required to reimburse the City of Palm
Desert for expenditures for street improvements on Hovley Lane East. Such expenditures are
due to be reimbursed on or before February l, 2009.
Now therefore, the City and Developer agree as follows:
1. The payment date for the reimbursement of such expenses shall be and the same
is hereby continued to February 1, 2011, said costs which are in the amount of$689,585.90
shall continue to accrue interest at the rate of 6%per annum.
2. Developer shall bring the interest payment current through March 31, 2009 in
the amount of$130,813.50. Quarterly interest payments thereafter in arrears shall be made by
Developer commencing July 1, 2009 and continuing quarterly thereafter until said Principal and
accrued interest is paid in full.
RMBUS�DERWIN\306563.1 1
Contract No. C18171
3. Other than above set forth, all of the terms, conditions and obligations of said
Agreement heretofore referred to be and the same are hereby continued in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
date first above written.
CITY OF PALM DESERT, SUNRISE DESERT PARTNERS,
a Municipal corporation, a California Limited Partnership,
managing member,
By SDP Gen Par,
a Delaware corporation,
General Partner
By:
Robert A. Spiegel
Mayor
By
ATTEST:
By
Rachelle D. Klassen
City Clerk
APPROVED AS TO FORM:
By
David J. Erwin
City Attorney
RMBUS�DERWIN\306563.1 2
"�:z
Sl..11. V�.1��
coNrr- ANY
January 14, 2009
Ms. Debra Lee
City of Palin I)esert
73-510 Fred Waring Drive
Palin Desert, CA 92260
RE: Reimbursement Agreement—Hovley Street Improvements
Dear Ms. L,ee:
We have received your letter of January 6, 2009 requesting payment of the
principal and interest due under the Reimbursement Agreeinent dated August 24,
2000 for the Hovley street improvements. Given the current economic cliinate,
we respectfully request a two-year extension to make this payinent, under the
current terins of 6% annual interest.
Thank you for your consideration.
Sincerely,
/ .
���� �
Phillip K. Smit , Jr.
President
300 Engle Dnnce Crrcle,Pnlnr Desert,Cr+lifornrrr 92211,Telepho��e(7G0) 772-7227,FAX(760) 772-7288
Bi�ilder of Americn's Firiest Cou��h���Cli�b Connrriinities
t:" Contract No. C18170
REIMBURSEMENT AGREEMENT
This Reitnbursement Agreement is made this24�h day of August 2000, between the City
of Paim Desert, a Municipal Corporation ("City"}, and Sunrise Desert Partners, a Caiifornia
Limited Partnerslaip ("Developer").
RECITALS
A. WHEREAS, Developer is the owner of real property in the City of Indian Wells
(the "Real Property") on which Developer proposes to build a master-planned residential golf
course community wit�� two golf courses and approximately 650 homes (the "Project"). The
Real Property is described in Exhibit A attached hereto.
B. WHEREAS, the northerly boundary of the Real Property abuts Hovley Lane East.
The north hatf of Hovley Lane East is located in the City of Aalm Desert and has been fully
improved (except for partions of a future median). The south haif of Hovley Lane East, which is
not improved, is Iocated in the City of Indian Wells.
�
C. WHEREAS, Developer will be required as a condition of approval of the Project
to improve the south l�alf of Hovley Lane East. However, based on Developer's phasing plan,
such improvements would not occur for several years. City has expressed an intexest in
accelerating the improvement of the south half of Hoviey Lane East, and Developer is willing to
do so, on the terms and conditions herein set forth.
D. WHEREAS, Developer has caused plans for the improvement of the south half of
Hovley Lane East, along with those portions of the median located in the north half, to be
prepared(the"Plans"). The Plans,which are described in Exhibit B attached hereto,have been
appraved by City and by the Gity of Indian Wells.
E. WHEREAS, Developer has dedicated the portion of'Che Real Property included in
the future right-of-way for Hovley Lane East to the City of Indian Wells and the City of Indian
Wells has accepted such dedication. .
F. WHEREAS, based on the forgoing recitals, the parties desire to enter into this
Reimbursement Agreement.
NOW,THEREFORE, City and Develaper hereby agree as follows:
, 1. Developer shall construct and install the improvements to the soufih half of
Hovley Lane East in accordance with the Plans ("South Half Improv�ments"). Developer shall
also construct and install the portions of the median located in the nortil half of Hovley Lane East
in aceordance with the PIans ("North Haif Iniprovements"). Developer shall enter into a contract
with a qualified contractor to perfonn. the worlc, and such contract shall be subject to City's
reasonable prior approvat. The contractor shall post performance and labor and material bonds
in favor of City and the City of Indian Wells in form and substance reasonably acceptable to
City {and to the City of Indian Wells.) Developer shall diligentiy pursue sucl� constniction and
instailation to completion.
i Contract No. C1$170
2. (a) City shall reimburse Daveloper for the actuat cost of the preparation of the Plans
and for the actual construction costs of the South Half Tmprovements. Such reimbursement shall
be made to Developer as the work progresses, no m.ore frequently than once each month, based
on requests for payment made by Developer to City. Each request for payment shaIl be
accompanied by appropriate invoices from the contractor and evidence of payment thereof by
Developer, #ogether with appropriate mechanics lien releases. The tota� amount reimbursed to
Developer in accordance with this Paragraph 2 (a) is referred to as the "Total Costs." The date
of the final payment by City to Developer hereunder zs refened to as the"Final 1'ayment Date."
(b) The parties acknowledge that the actual construction costs of the North Half
Improvements will be reimbursed to Developer by City from (i) funds curzently held by City on
account of Community Facilities District No. 91-1 {Indian Ridge), and (ii) funds previously
deposited by the developers of other adjacent projects.
(c) The parties acknowledge that certain related improvements will not be coznpleted
at this time,but will be completed in the future in accordance with the conditions of approvat for
the Project. Such future improvements include:
{i) Final pavement cap on the south half of Hovley Lane East;
(ii) Median landscaping;
(iii) SidewaIk along south side of Hovley Lane East; and
(iv) Landscaping along south side of Hovley Lane East.
3. Developer shall reimburse City for an amount equal to the Total Costs, plus
interest, as set forth in this paragraph. The To�al Costs shall not bear interest for a period of two
years aftear the Pinal Payment Date. Thereafter, beginning two years aftez the Final Paynnent
Date, the Total Costs shall accrue interest at the rate of sax percent (6%) per annum. Developer
shall make such reimbursement ta City on the earlier of khe following dates:
a. Five years after the Final Payment Date; or
b. The date of completion (evidenced by a Certificate of Occupancy issued
by the City of Indian Wells) of fhe 500`h horne in the Project.
4. This Agreement shall be binding upon and inure to the benefit of the parties and
their respective successors and assigns. In the event legal action is necessary to enforce this
Agreement, the prevailing party shall be entitled to recover reasonaUle attorney's fees and costs,
in addition to any other relief to which it may be entitled.
� Contract No. C18170
IN WITNESS WHEREO�,the parties hereto have executed#his Agreement as of the date
first above written.
CITY OF PALM DESERT, SUNRISE DESERT PARTNERS,
a Mu��ic' on a California Limited Partnershig, managing
member
By:SDP Gen Par,
By: a Delaware cor�oratian,
General Partner
�„T-� . � . �,
� '��
' i %` � � � � � �L
����-�' By: �►-�--, -�-,.
✓�heila R. Gilligan, '-ty Clerk Phillip K. Smi ,Jr.,President
City of Palm Desert, CaliForni
APPROVED AS TO CONTENT
Richa d J. FoI e , P.E.
Assistant City Manager/
Public Works Directar
APPR{�VED AS TO FORM
Da �d J. in,
City Attorney
CA0..9�ORn11�1 �l�.L-PIJ�iPOSE ACK�1011VL.EDCtlAE�!'f
��'��.,!`,�K`n'4T�".2';>T"`.c'!'F"�'.r"f':.�!;�.^�.M,c!`F'CS,��:.c',�..^<^.��;:l�2-<,s��^,�'t�`h.,�i;i�t^.r�-,r�!';�_{,�::.-r,�=�.^.,c'�"'.<—r>r�f'fY� t,�:�'i�(`,�-'c'�;�;vi���:,:'�-��
y�.
�� I�
State of Califomia �,
�� � ss. �,
�.� County of __I���1 �c's f orco �,
�, �
�;
�" ;:�
�' On ���ru,oc-�,��before me, ��g.c y/ �eYa�c�e. it/o�c�� ���r G �
r�
<�! Dat Name and Title of O�cer(e.g„"Jane oe,Natary Publi ') ��
� personally appeared �h+ �1 :' ,0 LC • � fJ� 1 ��j,'. ,��- , �;
a Name(s)of Signer(s)
��� �)I
,'�� �personally known fo me �>
� ❑ proved to me on the basis of satisfactory ��
� evidence �
<� to be the persan{s�j� whose name(sj is/a�e �
'fij ` subscribed to the within instrument and �>
��� acknowledged to me that he/sf�el�ey executed ��
CHFRYt D£VORE fhE same in his/�iair authorized
� Commis�ion#�2aolse X capacity(+e�, and that by hisff�eN�ir �
Z Notcxy Public-Califomia � signature(sj on the instrument the person(s�, or ;
' Z Riverslde County the entit upon behalf of which the person�) '
s� 1�M��'''��`�"'���'� acted, exec d the instr nt. y
r1
�
� ESS y ha n officia eal.
�
� �:
Place Notary Scal ABove 'gna e of Notary Public
� �>
h OPTIONAL �
��I Though the infamation below is nof required by Jaw,it may prove valuable to persons relying on the documeni �
;�5 and could prevent fraudulent removal and reaitachment of this form to another document. (�'
<'I ���
��! Description of Attached D cument
Title or Type of Document: � � Q ir r. rI'7¢ � �
i 7�
� Document Date:_�c.�C�S'L o�����O c> Number o P ges: � >
� � �, �;
i
� Signer(s)Other Than IVamed Above: "�
h
�; Capacity(iesj Claimed by Signer ?
� Signer's Name: _�f'7 i �1 i,o �• ti����'� . - :•- �
� O lnd3vidual �ro�or�numa nere ��'
; � Corporate Officer—Title{s}: I��eS i e�¢il L� �
��� 0 Partner—�Limited O Generai >
❑ Attorney in Fact �
�j � Trustee
�� ❑ Guardian or Conservator �r
O Other: ��?
<�+ F�
:r� �
<>;
�! Signer Is Representing: SL,"n c�,S� ��a.s�.c~ 'L�' '�/)a.c-S ;�
>
<� �;
jc�v�a�s��V�-.l`_"/.,'�5.��.�'�!�..�i�.�'��„r�{,�..t„c�,�cr�i;:�-.._�'`V..�v'�G"..-'�'�L.�Ti��`�;`�C:�C`?'v'.�'��,`'e:�,Ti:�'�4;�"�`y'7�t,���`G,��o .r,;`�'.�'
�1987 National Notary Association•9350 De Sotp Avo.,P.O.Box 2402•Chatsworth,CA 91313-2402 Prod.No.590T Reorder Call Toll-Free t-800-876-6827
Contract No. C1$17d
EXHIBlT "A"
REAL PROPERTY
THE WEST HALF OF SECTl4N 14 AND THE EAST HALF OF SECTION 15,
TOWNSHIP 5 SOUTH, RANGE 6 EAST, SAN BERNARDINO MERfDlAN,
COUNTY QF RIVERSiDE, STATE 4F CALIFORNIA.
Contract No. C18170
EXHtBIT "B"
HOVLEY LANE lMPROVEMENT PLANS
STREET IMPROVEMENT PI,ANS (SHEETS 1 THROUGH 'IO) PREPARED BY
RICK ENGINEERING C�MPANY AND LABELLED:
HOVLEY LANE EAST
STREET 1MPROVEMENT PLAN
CtTY OF INDIAN WELLS AND
CITY �F PALM DESERT
STREET SIGNING AND STR[P1NG PLANS (SHEETS 1 THROUGH 9)
PREPARED BY RICK ENGINEERING C�MPANY AND LABELLED:
HOVLEY LANE EAST
SIGNING AND STRIPING PLAN
ClTY OF 1NDIAN WELLS AND
ClTY OF PALM DESERT