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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