HomeMy WebLinkAboutSR - C18170 - Negotiate w/ Sunrise Desert Partners re: Toscana CCREQUEST:
CITY OF PALM DESERT
PUBLIC WORKS DEPARTMENT
STAFF REPORT
Authorize Staff to Negotiate 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: February 26, 2009
CONTENTS: Reimbursement Agreement No. C18170
Letter Requesting Extension of Agreement
Recommendation:
Authorize staff to negotiate an amendment to the reimbursement agreement with
Sunrise Desert Partners, requiring interest be brought current while extending
payment of the principal for a period of two years.
Background:
On August 24, 2000, the City of Palm Desert entered into an agreement with Sunrise
Desert Partners, developer of the Toscana Country Club, providing for reimbursement
to the City for costs related to the installation of certain street improvements on Hovley
Lane East. Under the terms of the agreement, the principal loan amount ($689,585.90)
plus interest ($124,125.46) are now due (a total of $813,711.36).
Upon receipt of an invoice issued by the Public Works Department, the developer
requested an extension of the loan for two years at six percent annual interest (letter of
request attached).
On February 11, 2009 the Acting City Manager and staff met with a representative of
Sunrise Desert Partners to discuss available options. As a result of this meeting, it is
recommended that Council authorize staff to negotiate an amendment to
Staff Report
Consider Amended Reimbursement Agreement Sunrise Desert Partners
Page 2 of 2
February 26, 2009
Reimbursement Agreement No. C18170 with Sunrise Desert Partners, extending the
term of that agreement by two years at an interest rate of six percent per annum, and
requiring that Sunrise Desert Partners bring the interest payment current and remit
quarterly interest payments thereafter for the life of the loan. Should Council grant this
request, staff will bring the amended agreement to Council for approval at a later date.
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.
Prepared By:
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Debra Lee
Management Analyst
Approval:
aul Gibson
Finance Director
McCarthy
City Mana
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Department H
Mark Greenwood, P.E.
Director of Public Works
Homer Croy
ACM for Deve
ent Services
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APPROVED DENIED
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