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HomeMy WebLinkAboutSR - R19820A - Palms to Pines East - American InvstmntPALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: 1) ACCEPTANCE OF PROPOSED CURE OF DEFAULT FOR PALMS TO PINES EAST, DEVELOPER AMERICAN INVESTMENT, LLC (CONTRACT NO. R19820A) 2) AUTHORIZE FINAL DISBURSEMENT OF FUNDING IN ACCORDANCE WITH PARAMETERS SET FORTH IN THE CONTRACT. SUBMITTED BY: CATHERINE WALKER, SENIOR MANAGEMENT ANALYST DEVELOPER: AMERICAN INVESTMENT GROUP 301 FOREST AVENUE, SECOND FLOOR LAGUNA BEACH, CA 92651 DATE: JANUARY 10, 2008 Recommendation: By Minute Motion, that the Agency Board: 1. Accept the proposed cure for default for the Palms to Pines East Development; and 2. Authorize the final disbursement of funding in accordance with Contract No. R19820A and all relevant amendments. Funds are available in Account No. 850-4435-464-4001. Executive Summarv: As of December 21, 2007, the scope of work for the Palms to Pines East development has been completed. All necessary building approvals have been obtained for the balance of the project, and all inspections are complete. American Investment is currently in default of the Owner Participation Agreement, as per Section 2.2.3. American Investment failed to meet the deadline for completion, October 30, 2007, as established in the Fourth Amendment approved by the Agency Board on May 24, 2007. A formal notification of default was issued and received on November 2, 2007. Agency action is necessary to accept the cure of default given that the project is complete, and authorize the disbursement of funding as per the Agreement. Discussion: The Palms to Pines East project has been completed as of December 21, 2007, all necessary building approvals and inspections have been accomplished, and the project as a whole is available for occupancy. American Investment LLC failed to meet the October 31, 2007 final Staff Report Contract No. R19820A (American Investment LLC) Page 2 of 2 January 10, 2008 deadline for completion, outlined in the Fourth Amendment, which was approved by the Agency Board on May 24, 2007. American Investment was issued a formal default notice as per section 2.2.3 of the Owner Participation Agreement, and failed to present a cure for default, until recently. Agency Board action is necessary to approve the proposed cure for default, which is essentially the completion of the scope of work as established in Contract R19820A. This will effectively reinstate the Owner Participation Agreement. If the cure for default is accepted by the Agency Board, then final disbursement of funding for American Investment, LLC can be processed. Due to the current default of the project no payments have been made on Building No.5. Disbursement of the funding is contingent upon providing all necessary items established in Section 3.1 Aaencv Consideration, as set forth in the Second Amendment to the Owner Participation Agreement. These necessary items for disbursement are inclusive of the following: lien waivers, contract/architect certifications. Payment shall only be requested for hard costs, and retainage in the amount of 10% shall be held until the Certificate of Completion for the applicable improvements has been filed with the Agency and contractual timelines have been accomplished. • Amount held for Building No. 5 $599,746.67 • Amount held for retention on project $155,807.33 Staff recommends the acknowledgement that the cure for default is effective, and final disbursements of funding can be processed as per the Owner Participation Agreement. n� Submitted By: Department Head: (} 0� n < Catherine Walker DavejYrigoye Cr-pp Senior Management Analyst Director of R evelopment/Housing >- 04 i 9 �- m h m Approv Pau . ibs r ifector of Finance4 LU 0 0 u. c f n A✓ cc 0) O> 0 ustirj Mc arth§, ACM Redevelopment Carlos L. Ortega, Exec lie Director * By Minute Motion: 1) Accepted the prori6sed cure for default for the Palms to Pines East Development; 2) authorized final disbursement of funding in accordance with Contract No. R19820A and all relevant amendments, less withholding 125X of the value of the Stop Notice filed by Shelby Framing and received January 10, 2008, subject to its review and approval. 5-0 G.\rda\Cathy Walker\Word Data\STAFF REPORTS\Staff for Palms to Pines East doc.doc 2008-Jan-10 09:18 PM Shelby Framing 9518947740 1/7 • 4544 11 Professional Woodworking over 28 years! License #667658 4 MV { [.-. i, `S OFFICE P''�Lfl DESERT, CA 238114dWbO ARC SW19T110--391 AfurriM4 C4 92562 Office (951) 600 8163 Fax (951) 894 7740 E-Mail - Kevh9,@v1te1byfi-inning corn To: Carlos L. Ortega / RDA Executive Director From: Kevin Eachus Fam 760-341-6372 Pages: 7 Phone: Date: 01/10/03 Re: Item XI Old Business CC: Q Urgent © For Review p Please Comment 0 Please Reply 0 Please Recycle Dear Carlos L. Ortega, This fax is for tonight's board meeting regarding Item XI Old Business. Please distribute to the board members prior to tonight's scheduled meeting. Thank you, Kevin Eachus Shelby Framing 2008-Jan-10 09:18 PM Shelby Framing 9518947740 2/7 S EL.'Y FRAMING The Honorable Jcan A Benson — Chabperson Redevelopment Agency — City of PaIm Desert 73510 bred Waring Drive Palm Desert, Ca 92260 23811 Washington Ave., Sulfe 110-391 MURROA, CA 92662 P. 951-600-8163 F. 951.894.7740 January 10, 2008 via fax (760) 340-0574 via fax (760) 341-6372 Dear Chairperson Benson, I am writing to express my concern and interest regarding item Xl, Old Business posted on the agenda:Tor tonight's Redevelopment Agency meeting. We (Shelby Framing) have provided rough framing labor, material and equipment to American Investment, LLC, for their Palms to Pines project through our contract dated 12-22-05 with the general contractor Shellman Enterprises for phase II. We are owed over $18,000 for work that was completed over one year ago. We have tried numerous tunes over the last several months to work with Mr. Alec Glasser, managing partner for American Investment, LLC, to no avail.1 have attached a stop notice on this project for your convenience. 1 am hoping that you can help us. We are a small subcontTactor and just want to get paid what is owed to us. Should you have any questions, please feel free to contact me on my cell phone at (951) 906-5175. 'lliank you for your time aiad consideration, . r� Sincerely,. �.'." - .. Gary R. McKinsey r w• C.O.U. r °7 Shelby Framing 5F3 rr, 2008-Jan-10 09:18 PM Shelby Framing 9518947740 3/7 S E L BPI/ FRAMING The Honorable Robert A. Spiegel — Vice Chairperson Redevelopment Agency — City of Palm Desert 73510 Fred Waring Drive Palm Desert, Ca 92260 23811 Washington Ave., Suite 110-391 MURRIEI'A, CA 92562 P.951-600-9163 F. 951.894.7740 January 10, 2008 via .fax (760) 340-0574 via fax (760) 341-6372 Dear Vice Chairpersons Spiegel, 1 am writing to express my concern and interest regarding item XI. Old Bu6jncss posted on the agenda for tonight's Redevelopment Agency meeting. We (Shelby Framing) have provided rough framing labor, material and equipment to American investment, LLC, for their Palms to Pines project through our contract dated 12-22-05 with the general contractor Shellman Enterprises for phase H. We are owed over $18,000 for work that was completed over one year ago. We have tried numerous times over the last several months to work with Mr. Alec Glasser, managing partner for American Investment, LLC, to no avail. I have attached a stop notice on this project for your convenience. I am hoping that you can help us. We are a small subcontractor and just want to get paid what is owed to us. Should you have any questions, please !'eel free to contact me on my cell phone at (951) 906-5175. Thank you for your time and consideration, Sincerely, Gary R. McKinsey C.O.O. Shelby Framing 2008-Jan-10 09:18 PM Shelby Framing 9518947740 4/7 err•, `'�',..�.. EL' FRAMING The Honorable Jim Ferguson — Board Member at large Redevelopment Agency — City of Palm Desert 73510 Fred Waring Drive Palm Desert, Ca 92260 23811 Washington Ave., Suite 110-391 MURRIETA, CA 92562 P.951-600-8163 F, 951.8941/40 January 10, 2008 via fax (760) 340-0574 via fax (760) 341-6372 Dear Board Member at Large Ferguson, I am writing to express my concern and interest regarding item XI. Old Business posted on the agenda for tonight's Redevelopment Agency meeting, We (Shelby Framing) have provided rough framing labor, material and equipment to American Investment, LLC, for their Palms to Pines project through our contract dated 12-22-05 with the general contractor Shellman Enterprises for phase II. We are owed over $18,000 for work that was completed over one year ago. We have tried numerous times over the last several months to work with Mr. Alec Glasser, managing partner for American Investment, LLC, to no avail. I have attached a stop notice on this project for your convenience. I ain hoping that you can help us. We are a small subcontractor and just want to get paid what is owed to us. Should you have any questions, please feel free to mitaet me on my cell phone at (951) 906-5175. Thank you for your time and consideration, Sincerely, Crary R. McKinsey C.O.O. Shelby Frarning 2008-Jan-10 09:19 PM Shelby Framing 9518947740 5/7 S-h-ELL31 FRAMING 23811 Washington Avo., Suite 110-391 MURRUA, CA 92662 P. 951-600-8163 R 951.894.7 740 The Honorable Cindy Finerty Board Member at Large January 10, 2008 Redevelopment Agency — City of Palm Desert via 1' x (760) 340-0574 73 510 Fred Waring Drive via fax (760) 341-6372 Palm Desert, (:a 92260 Dear Board Member at Large Finerty, I am writing to express my conccm and interest regarding item X1. Old Business posted on the agenda for tonight's Redeveloprnenit Agency meeting. We (Shelby framing) have provided rough fraining labor, material and equipment to American Investment, LI.,C, for their Palms to Pines project through our contract dated 12-22-05 with the general contractor Shellwaat Enterprises for phase H. We are owed over $18,000 for work that was completed over one year ago. We, have tried numerous times over the last several months to work with Mr. Alec Glasser, managing partner for Americw-1 Investme.ut, LLC, to no avail. I have attached a stop notice on this project for your convenience. I am hoping that you can help us. We are a small subcontractor and just want to get paid what is owed to us. Should you have any questions, please feel free to contact me on my cell phone at (951) 906-5175, Thmik you for your time and consideration, Sincerely, Gar R. McKinsey Y C.O.O. Shelby Framing 2008-Jan-10 09:19 PM Shelby Framing 9518947740 6/7 ELD FRAMING 23811 Washington Ave., Suite 110-391 MURRIFTA, CA 92562 P.951-600-8163 F. 951.894,7740 The Honorable Richard S. Kelly — Board Member at Large January 10, 2008 Redevelopment Agency — City ofPalm Desert via fax (760) 340-0574 735I0 %red Waring Drive via fax (760) 341-6372 Palm Desert, Ca 92260 Dear Board Member at 'Large Kelly, I am writing to express my concern and interest regarding item NJ. Old Business posted on the agenda for tonight's Redevelopment Agency meeting. We (Shelby framing) have provided rough framing labor, material and equipment to American Investment, LLC, for their Psalms to Pines project through our contract dated 12-22-05 with the general contractor Shellman Enterprises for phase II. We are owed over $18,0001163• work that was eoi„pleted over one year ago. We have tried rnunerous times over dle last several months to woi,k with Mr. Alec Glasser, managing partner for American Investment, LLC, to no avail, I have attached a stop notice on this project for your convenience. I am hoping that you can help us. We are a small subcontractor and just want to get paid what is owed to us. Should you have any questions, please feel free to contact me on my cell phone at (951) 906-5175. Thal..* you for your time and consideration, Sincerely, Gary R. McKinsey C.U.U. Shelby Framing 2008-Jan-10 09:19 PM Shelby Framing 9518947740 7/7 Y CLERK'S OFFICE STOP NOTICE PtiLH DFSI_R r*, CA LEGAL. NOTICE TO WITHHOLD CONSTRUCTION FURM 10 PM 1: 37 (Public or Private Work) (Per California Civil Code Section 3103) To: American Investment Group Prnj"t: Palms Desert Site Rehab & Blda 2 (NAML UI' OWNER. PUBLIC BODY OR CONSTRUCTION FUND IIOLULR) (NAME) 312 Broadwav, Ste. 204 72885 Hiahwav 111 (ADDRESS IF TO A DANK UR $AV/I.0AN. USE ADDRESS OF BRANCH HOLDING FUNDS) 0001,100 Laguna Beach, Ca 92651 Palm Desert. Ca 92660 (CI rY. SI'A I L ANU LW) (CITY, STATE AND ZIP) TAKE NOTICE THAT Brian Todd Morales dba Shelbv Framing (NAME OF THE PERSON OR FIRM CLAIMING H ir. $10, NOTICE. LICENSED CONTRACTORS MUST USE THE NAME UNDER WI IICU CON I Na1;'I OR'$ LICENSE Is ISSUED) whose address is 23811 Washinaton Ave. Ste C110-391, Murrieta. Ca 92562 (ADDRESS OF PERSON OR FIRM CLAIMING STOP NOTICE) has performed labor and furnished materials for a work of improvement described as follows. rough wood framing at Palm Desert Site Rehab & Bldq 2 (Palms to Pines) 72885 Hiahwav 111, Palm Desert, Ca 92660 (NAME ANI) LOCATION OF PROJECT WHERE WORK OR MATERIALS WERE FURNISHED) The labor and materials furnished by clairant are of the following general kind: rough framing labor, mntf:rial and enuinment (KIND OF LABOR, SERVICES, EQUIPMENT. OR MATERIALS FURNISHED OR AGREED TO BE FURNISHED UY CLAIMANT') The labor and materials were furnished to or for the following party: Shellman Construction, Inc 6680 Van Buren Blvd.- Riversid e. C;1 92.503 (NAML UI' lilt PARI Y WIIO OROCRI.0 11'11. WORK Ott MA'I'rl4IAl4) Total value of the whole amount of labor and materials agreed to be furnished is: $155.795.00 The, value of the labor and materials furnished to date is :.......... . ....... $156.795.00 Claimant has been paid the sum of; ......................... . . . . . . . . . . s 138,600.00 And there is due, owing and unpaid the sum of :. . ....... . ... . ... . ........ g 18,195.00 You are required to set aside sufficient funds to satisfy this claim with interest, court costs and reasonable costs of litigation, as provided by law. You are also notified that claimant claims an equitable lien against any construction funds for this project which are in your hands, FIRM NAME: Brian Todd Morales dba Shelbu Framing By. VERIFICATION I, the undersigned, say: I am th-- Agent of the claimant ('PRESIDENT OF,"MANAGEROF."APARTNER OF.—OWIEA Or,-•A*ENf V):: C-N.) named in the foregoing Stop Notice; I have read said Stop Notice and know the contents thereof; the same is true of my own knowledge. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Executed on January 10 . 2008 at Murrieta California (DATE THIS D=V.FNTWrk. 1l(QIP114 AMEOFCITYAND STATEWHERETHIS DOCUMeNTW0881GNE0) (PER80NAL SICNATURF OF THR INOIVIOI)AL WI10 W SWLAHING'1'I-Al TFIE CONTENTS OFSTOP NOTICE ARE TRUE) REQUEST FOR NOTICE OF ELECTION (Private Works Only) (Per California Civil Code Section 3159, 3161, or 3162) If an election Is made not to withhold funds pursuant to this stop notice by reason of a payment bond having been recorded in accordance with Sections 3256 or 3162, please send notice of such election and a copy of the bond within 30 days of such election in the enclosed preaddressed stamped envelope. This information must be provided by you under Civil Code Sections 3159, $161, or 316?,,, Signed: //•./% y� — _ _ — (Olekewr! nrR»! Frrrjt,y» >;yl(�q,j(tpgpn GCmpetl ERvebpCl BEFORE YOU USE TI IIS FORM, FILL IN ALL BLANKS, AND MAKE WHATEVER CHANGES ARE APPROPRIATE AND WCESSARY TO YOUR PARTICULAR TRANSACTION. 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