HomeMy WebLinkAboutAmended Timelines - Owner Participation Agrmnt - American Investment Palms to Pines East LLCPALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: APPROVE AMENDED TIMELINES TO THE OWNER PARTICIPATION
AGREEMENT WITH AMERICAN INVESTMENT PALMS TO PINES
EAST LLC
FROM: DAVE YRIGOYEN. DIRECTOR OF REDEVELOPMENT
DATE: JULY 8, 2004
Recommendation:
By Minute Motion, that the Agency Board approve Amended Timelines for
improvements to the property pursuant to the Owner Participation Agreement
between the Agency and American Investment Palms to Pines East LLC, and
authorize the Chairman to execute the Agreement incorporating the changes.
Executive Summarv:
The proposed amendment to the Owner Participation Agreement will allow American
Investment Palms to Pines East LLC an extension of their completion date from December 31,
2004 to March 14, 2005.
Discussion:
On February 26, 2004, the Agency Board approved an Owner Participation Agreement
("Agreement") that superseded an earlier Amended and Restated Owner Participation
Agreement between the Agency and American Investment Palms to Pines East LLC, dated
February 28, 2002 ("OPA"), and that would provide assistance to American Investment Palms to
Pines East LLC in the renovation of the Palms to Pines East Shopping Center. The Agreement
was entered into by the Agency to acknowledge a delay in the construction process caused by
the amount of time the tenants took to sign the Public Parking Easement Agreement.
All parties have now signed the Public Parking Easement Agreement. However, negotiations
for the subordination agreement signatures, which must be received with the Easement
Agreement and the painting of Staples have presented additional delays. The Developer is
seeking an additional time extension to March 14, 2005 for the completion of construction, with
a (Holiday Season) moratorium in construction from November 15, 2004 through January 15,
2005, to accommodate leasing agreements with current tenants.
Additional delays were incurred in the need to have Staples' approval to repaint the Staples
building, as well as an easement necessary between Staples and the developer for a fire exit
behind Big 5. We have received Staples' approval and the easement document necessary for
the Certificate of Occupancy on the Staples Building. The Developer was obligated to have the
Staples Building repainted by May 30, 2004. However, that time completion became
unattainable. He is currently repainting the Staples building at his own expense (hoping that he
will receive the extension), and will complete the process by August 1, 2004.
Staff Report
Approve Amended Timelines to OPA with American Investment Palms to Pines East LLC
Page 2 of 2
July 8, 2004
The facade improvements for the Big 5 building are currently underway and will be completed
within sixty days. The facade enhancement for the Rite Aid building will commence upon
signature and recordation of the final Subordination Agreement. Site work improvements will be
spilt into three Phases, and commence with the recordation of the final Subordination
Agreement. Phase I will be the parking area fronting Hwy 111 and closest to the Staples
Building. Phase II is adjacent to the east and will complete almost all of the parking areas
fronting Hwy 111. Phase III will complete any additional parking fronting Hwy 111 and continue
to the southerly portions facing El Paseo. The Site work for these phases is identified in
Exhibits F and G of the Owner Participation Agreement. It is the Developer's intention to have
all site work fronting Hwy 111 completed prior to November 15, 2004.
The specific time extensions requested are as follows:
• Commencement of Construction Improvements — Change Commencement Date
from June 1, 2004 to July 15, 2004
• Exterior Painting of Staples — Change Completion Date from May 30, 2003 to a
Start date of June 29, 2004 with a Completion Date of August 1, 2004
• Agency Conditions Precedent as outlined in Section 3.2 of the OPA — Change
completion date from August 28, 2004 to September 30, 2004
• Delay in construction (Holiday Season) from November 11, 2004 through
January 15, 2005
• Completion of construction — March 14, 2005
Staff would recommend that the Board approve the Amended Timeline incorporating the above -
described modifications to the Agreement, and authorize Agency Counsel to prepare a
corresponding amendment to the Agreement, and thereby facilitate the completion of the
project.
Submitted by: A proval:
Dave Yri Xiti McCarthyDirect Redevelopment Redevelopmen
mh 601
Carlos L. Ort a
Executive Director
G:\RDA\Cathy Walker\Word Data\STAFF REPORTS\Staff Report Palms to Pines 2004.doc