HomeMy WebLinkAboutRelease Security - 73655 El PaseoCITY OF PALM DESERT
PUBLIC WORKS DEPARTMENT
STAFF REPORT
REQUEST: RELEASE SECURITY FOR THE PREMIER CENTRE
SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works
APPLICANT: El Paseo Premier Centre
5900 Wilshire Blvd., #400
Los Angeles, CA 90036
City National Bank
555 South Flower Street, 24th Floor
Los Angeles, CA 90071
LETTER OF
CREDIT: 101028.OD.5851
DATE: September 13, 2012
CONTENTS: Letter of Credit
Agreement
Vicinity Map
Recommendation
By Minute Motion, release security for the Premier Centre.
Background
The Premier Centre is located at 73-655 El Paseo, between Larkspur and San Luis
Rey. In 2008, the owners of the Premier Centre began remodeling the interior of their
building. They also removed a portion of the sidewalk and began installing concrete
pavers in front of the building. A Public Works Inspector noticed the work in the public
right of way and stopped the installation.
The Public Works Department requested that the developer submit a bond and
agreement for the cost of the work in the right-of-way. Part of the agreement was for the
developer to make the sidewalk ADA accessible. El Paseo Premier Centre submitted a
bond for $100,000 and signed an improvement agreement to complete the work by
Staff Report
Release Security for the Premier Centre
September 13, 2012
Page 2 of 2
August 31, 2009. The City granted three extensions to this agreement. Due to the state
of the economy the developer could not finish the project by the previous deadlines.
In 2012, the developer submitted plans of the sidewalk for review. After reviewing the
plans the Director of Public Works determined that ADA accessibility could not be met in
this area and that the developer could leave the sidewalk as it is today.
Fiscal Analysis
There is no fiscal impact associated with this action.
Prepared By: Departmmeryt Dead:
(✓M4 n il-� . -
Christina Canales, Assistant Engineer Mark a nwood, P
Directof df Public W
, Z611 L- '
13161 S. Gibson, Director of Finance
Approval:
0/d/a��7
John M. Wohlmuth, City Manager
CITY COUNCILACTION
APPROVED �- DENTED
RECEIVED OTHER
MEETING DATE -00
AYES: 8eA5,2n. I-lo-l-,q; "", 1 21 e
NOES:�
ABSENT: t'l� V
ABSTAIN:
VERIFIED BY:
Original on File with City Clerk's Of Lce
CITY
NATIONALB p N International Deportment
44.. 66 ■■ A''i�7�"MrW.
555 Soulh Flower Street, 241h Fbar las Angeles, CA 90071
The way up.- T (213) 673.8640 F (2131673-8649 SWIFT CINAUS6l
ISSUE DATE: DECEMBER 31, 2008
PAGE 1 OF 2
IRREVOCABLE STANDBY LETTER OF CREDIT NUMBER 081231.OD,5212
BENEFICIARY: CITY OF PALM DESERT
73-510 FRED WARING DR.
PALM DESET, CA 92260
APPLICANT: EL PASEO PREMIER CENTRE,
A CALIFORNIA LIMITED PARTNERSHIP
5900 WILSHIRE BLVD. # 400
LOS ANGELES, CA 90036
AMOUNT: USD100, 00000
ONE HUNDRED THOUSAND AND 00/100 U.S. DOLLARS
EXPIRY DATE: OCTOBER 1, 2009 AT CITY NATIONAL BANK, INTERNATIONAL
DEPARTMENT, LOS ANGELES, CALIFORNIA
LADIES/GENTLEMEN:
WE HEREBY ESTABLISH OUR IRREVOCABLE STANDBY LETTER OF CREDIT
NUMBER 081231.OD,5212, IN THE AMOUNT OF ONE HUNDRED THOUSAND
AND 00/100 U.S. DOLLARS (USD100,000.00) IN FAVOR OF CITY OF
PALM DESERT AND ISSUED AT THE REQUEST OF EL PASEO PREMIER CENTRE,
A CALIFORNIA LIMITED PARTNERSHIP PURSUANT TO THE IMPROVEMENT
AGREEMENT WITH THE CITY OF PALM DESERT.
THIS LETTER OF CREDIT IS AVAILABLE TO BENEFICIARY AGAINST
BENEFICIARY'S DRAFT(S) DRAWN AT SIGHT ON CITY NATIONAL BANK,
INTERNATIONAL DEPARTMENT, LOS ANGELES, CALIFORNIA WHEN ACCOMPANIED
BY THE FOLLOWING;
1. THIS ORIGINAL LETTER OF CREDIT AND AMENDMENTS, IF ANY.
2. BENEFICIARY'S WRITTEN STATEMENT, SIGNED AND DATED BY (THE
CITY MANAGER OR CITY ENGINEER, CERTIFYING THAT:
"CITY OF PALM DESERT CERTIFIES THAT THERE HAS BEEN A FAILURE OF
EL PASEO PREMIER CENTRE, A CALIFORNIA LIMITED PARTNERSHIP, THE
PRINCIPAL, TO FAITHFULLY PERFORM ITS INPROVEMENT AGREEMENT WITH
THE CITY OF PALM DESERT IN REGARD TO THE REPLACEMENT OF THE
PORTION OF SIDEWALK IN FRONT OF SUITES G, H, J AND K AT BUILDING
LOCATED AT 73-655 EL PASEO, PALM DESERT, CA 92260 AND THAT THE
AMOUNT OF THE DRAFT ACCOMPANYING THIS STATEMENT IS NOW DUE AND
PAYABLE. THEREFORE WE ARE DRAWING THE AMOUNT OF (INSERT AMOUNT)
UNDER CITY NATIONAL BANK STANDBY LETTER OF CREDIT NUMBER
081231.OD.5212)11.
SPECIAL CONDITIONS:
1. PARTIAL DRAWINGS ARE ALLOWED.
2. MULTIPLE DRAWINGS ARE ALLOWED.
EACH DRAFT MUST STATE "DRAWN UNDER STANDBY LETTER OF CREDIT NO.
081231.OD.5212 OF CITY NATIONAL BANK, LOS ANGELES, CALIFORNIA,"
/Pernber FDIC
a a
CITYNATIONAL BANK Infernoouch Fnal lower Street,
■ i i�► S55 Savd� Flower Street, 24rh floor, Los Angeles, CA 90071
The way up' ti. T (213) 673.8640 F (2131673.8649 SWIFT CINAUS61.
PAGE 2 OF 2
IRREVOCABLE STANDBY LETTER OF CREDIT NUMBER 081231.OD.5212
WE HEREBY ENGAGE WITH YOU THAT ALL DRAFTS DRAWN UNDER AND IN
COMPLIANCE WITH THE TERMS AND CONDITIONS OF THIS CREDIT SHALL BE
DULY HONORED IF PRESENTED FOR PAYMENT AT THE OFFICE OF CITY NATIONAL
BANK, INTERNATIONAL DEPARTMENT, 555 SOUTH FLOWER STREET, 24TH FLOOR,
LOS ANGELES, CALIFORNIA 90071.
EXCEPT SO FAR AS OTHERWISE EXPRESSLY STATED, THIS CREDIT IS
ISSUED SUBJECT TO THE INTERNATIONAL STANDBY PRACTICES 1998
("ISP98"), INTERNATIONAL CHAMBER OF COMMERCE PUBLICATION NO. 590.
AUTHORIZED IGNATURE
JOSIE PARE ES
ASSISTANT VICE PRESIDENT
AUTH RIZ SIGN
MUNIR KARKAR
ASSISTANT VICE PRESIDENT
Member FDIC
CITY NATIONAL BANK
The way up.-
10/06/11
CITY OF PALM DESERT
73-510 FRED WARING DR.
PALM DESERT, CALIFORNIA 92260
LETTER OF CREDIT NUMBER:
AMENDMENT:
APPLICANT:
SIR OR MADAM:
101028.OD.5851
1
EL PASEO PREMIER CENTRE
WE HEREBY AMEND OUR IRREVOCABLE STANDBY LETTER OF CREDIT DATED NOVEMBER
19, 2010 ISSUED IN YOUR FAVOR AS FOLLOWS:
1. NEW DATE OF EXPIRY: OCTOBER 31, 2012.
ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED.
THIS AMENDMENT FORMS AN INTEGRAL PART OF THE ORIGINAL LETTER OF CREDIT
AND MUST BE ATTACHED THERETO.
IF YOU HAVE ANY QUESTIONS, PLEASE CALL US AT (213) 673-8640.
SINCERELY,
AUTHORI L'D SIGNATURE AUTH IZED S ,,NATURE
PAGE 1
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RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:
The City of Palm Desert
A municipal corporation of the
State of California
73510 Fred Waring Drive
Palm Desert, CA 92260
IMPROVEMENT AGREEMENT
This Improvement Agreement (this "Agreement") is made and entered into this
day of September, 2008, by and between EL PASEO PREMIER CENTRE, A
CALIFORNIA LIMITED PARTNERSHIP ("Owner"), and THE CITY OF PALM
DESERT, a municipal corporation of the State of California (the "City"), with reference
to the following:
RECITALS
A. Owner owns certain improved real property located in Palm Desert,
Riverside County, California, commonly known as 73-655 El Paseo, and more
particularly described on Exhibit "A" attached hereto (the "Property").
B. In connection with the remodel of the facade of a portion of the Property,
Owner removed a portion of the public sidewalk area located in front of Suites G, H, J
and K of the Property (the "Removed Sidewalk Area").
C. The City has prevented Owner from re -pouring the portion of the sidewalk
within the Removed Sidewalk Area using the existing sidewalk design because doing so
may not meet certain requirements of the American Disabilities Act (the "ADA") and/or
existing municipal Code requirements of the City (the "City Code").
D. Notwithstanding its concerns, the City is willing to allow Owner to re -
pour the sidewalk within the Removed Sidewalk Area using the existing sidewalk design
on a temporary basis, subject to providing certain security and meeting certain
requirements as set forth in this Agreement.
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AGREEMENT
NOW, THEREFORE, it is agreed by and between the parties hereto as follows:
1. Owner may cause its contractors to immediately re -pour the sidewalk
within the Removed Sidewalk Area using the design and standards that existed prior to
the removal of such sidewalk.
2. Owner shall, at its sole cost and expense, promptly undertake a review of
the requirements of the ADA and the City Code for the purpose of confirming whether
the existing design of the sidewalks in the Removed Sidewalk Area conforms to the
requirements of the ADA and the City Code and, if it does not so conform, redesigning
the existing sidewalk within or about the Removed Sidewalk Area in a manner that will
comply with the requirements of the ADA and the City Code. The determination of
whether the existing design of the Removed Sidewalk Area complies with ADA or needs
to be re -designed shall be made by the City in the exercise of its good faith discretion.
3. Any desi gns and plans to replace the portion of the sidewalk located
within the Removed Sidewalk Area, including the replacement of portions of the
sidewalk located in the transition areas adjacent to the Removed Sidewalk Area, as
applicable, shall be completed and submitted to the City for its review and approval by no
later than June 30, 2009.
4. Any construction work required to replace the sidewalk within the
Removed Sidewalk Area in order to comply with the requirements of the ADA and City
Code, as described in paragraph 3 above, shall be commenced and completed within the
period commencing on July 5, 2009 and ending on August 31, 2009. All such work shall
be performed at Owner's sole cost and expense and shall be consistent with the design
and plans approved by the City.
5. Owner shall at all times guarantee Owner's performance of its obligations
set forth in this Agreement by furnishing to the City a Stand -By Letter of Credit, in a
form approved by the City and issued by City National Bank or another financial
institution acceptable to the City, in the amount of One Hundred Thousand and no/100
Dollars ($100,000.00) (the "Letter of Credit"). The Letter of Credit required by this
Agreement shall be kept on file with the City Clerk. The Letter of Credit required by this
Agreement shall be released by the City to Owner upon occurrence of either of the
following:
(a) The City's determination that the existing sidewalk design, as re -poured
pursuant to paragraph ] above, complies with the ADA and City Code; or
(b) The City's approval and acceptance of the new replacement sidewalk
installed by Owner pursuant to paragraph 4 above, as required by this Agreement.
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6. Owner shall replace or repair, or have replaced or repaired, as the case
may be, all public improvements and/or public utility facilities which are destroyed or
damaged as a result of any construction work done by or on behalf of Owner under this
Agreement.
7. In the event Owner fails to perform any obligation hereunder, and the City
gives at least twenty (20) days written notice of such failure, Owner shall forthwith
complete the performance of such obligation. If, despite such notice, the obligation
continues to be unfulfilled, the City shall be authorized to complete the performance in
any manner it deems proper and in the best interest of the public, and shall deduct the
cost and expense incurred by the City in securing the performance of the obligation
hereunder, including over -head costs, from the security provided herein. In the event
Owner's failure is due to causes beyond its control, such as strikes, acts of God, and the
like, and gives notice of those delays to the attention of the City prior to the serving by
the City of the notice of non-performance, such time limit shall be extended by the same
amount of time as caused by the actual delay. The right of the City to draw upon and
utilize the security provided in this Agreement is in addition to and not in lieu of any
other remedies available at law or in equity to the City for a breach or breaches of
Owner's obligations under this Agreement.
8. Neither Owner nor any of Owner's agents, contractors or subcontractors
are or shall be considered to be agents of the City in connection with the performance of
Owner's obligations under this Agreement.
9. All of Owner's obligations under this Agreement are and shall remain the
personal obligations of Owner notwithstanding a transfer of all or any part of the
Property, and Owner shall not be entitled to assign its obligations under this Agreement
to any transferee of all or any part of the Property or to any third party without the
express written consent of the City.
10. This Agreement constitutes the entire agreement of the parties with respect
to the subject matter hereof. All modifications, amendments or waivers of the terms of
this Agreement must be in writing and signed by appropriate representatives of the
parties.
11. This Agreement shall be interpreted in accordance with the laws of the
State of California.
12. In the event that suit or arbitration is brought to enforce the terms of this
Agreement, the prevailing party shall be entitled to litigation costs and reasonable
attorney's fees.
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IN WITNESS WHEREOF, this Agreement is executed by the parties as of the
date first written above.
OWNER:
EL PASEO PREMIER CENTRE,
A CALIFORNIA LIMITED PARTNERSHIP
By: FFP/Premier, LLC,
a California limited liability company
Its: General Partn r
By:
Its:
CITY:
THE CITY OF PALM DESERT,
a municipal corporation
of the State of California
Its:
APPROVED AS TO FORM:
r
David E n
City Attorney
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Exhibit "A"
Legal Description
Of The Property
LOT 1 IN BLOCK Q OF PALM DESERT UNIT NO. 1, AS PER MAP RECORDED IN
BOOK 21, PAGES 50 THROUGH 54 INCLUSIVE OF MAPS, RIVERSIDE COUNTY
RECORDS.
EXCEPT THAT PORTION LYING SOUTHERLY OF THE FOLLOWING
DESCRIBED LINE:
BEGINNING AT THE SOUTHWEST CORNER OF SAID LOT:
THENCE NORTH 890
44'
35"
EAST, 62.11 FEET TO THE TRUE POINT OF
BEGINNING;
THENCE NORTH 660
04'
55"
EAST, 96.85 FEET;
THENCE NORTH 730
15'
25"
EAST, 36.83 FEET;
THENCE SOUTH 130
49'
41"
EAST,19.88 FEET;
THENCE SOUTH 120
31'
53"
WEST, 30.76 FEET.
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ACKNOWLEDGMENT
State of California
County of S _ On 2(Jb q�,�
before me, _L" " — � tui V61G A a a
Notary Public, personally appeared Fred Fern, Mdiagei of F /Premie , LLC, a
California limited liability company, General Partner for EL PASEO PREMIER
CENTRE, A CALIFORNIA LIMITED PARTNERSHIP who 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 executed the same in his authorized capacity,
and that by his signature on the instrument the person, or the entity upon behalf of which
the person acted, executed the instrument.
I certify under PENALTY OF PERJURY un r e 1 s-jA1heWeo C 'f 'a
that the foregoing paragraph is true and correct. R
WITNESS my hand and official seal. �0'" trotaay y Wftsm taneue - *Wmcnd�
Los ARPIN Cft*
MY Comm.
Signature
ACKNOWLEDGMENT
State of California
County of
On before me, , a
Notary Public, personally appeared , of the
THE CITY OF PALM DESERT, a municipal corporation of the State of California, who
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.
I certify under PENALTY OF PERJURY under the laws of the State of California
that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature
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PREMIER CENTRE 73-655 EL PASEO
Legend
--- Circulation Network
L City Boundary
Streets
❑ Parcels (1/2012)
1: 1,330
Notes