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Home My WebLink AboutPrelim - RDA - 07/14/2011PRELIMINARY MINUTES DRAFT t v i REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING THURSDAY, JULY 14, 2011 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Vice Chairman Spiegel convened the meeting at 3:00 p.m. II. ROLL CALL Present: Absent: Member Cindy Finerty Chairman Jean M. Benson Member Jan C. Harnik Member William R. Kroonen Vice Chairman Robert A. Spiegel Also Present: John M. Wohlmuth, City Manager/RDA Executive Director David J. Erwin, City Attorney Justin McCarthy, ACM for Redevelopment Stephen Y. Aryan, Assistant to the City Manager Rachelle D. Klassen, City Clerk Russell Grance, Director of Building & Safety Lauri Aylaian, Director of Community Development Janet M. Moore, Director of Housing Mark Greenwood, Director of Public Works Frankie Riddle, Director of Special Programs J. Luis Espinoza, Assistant Finance Director Steve Brooker, Fire Marshal, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Andrew Shouse, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept. Grace L. Mendoza, Deputy City Clerk III. ADJOURN TO CLOSED SESSION Request for Closed Session: Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: PRELIMINARY MINUTES DRAFT PALM DESERT REDEVELOPMENT AGENCY MEETING JULY 14, 2011 1) Property: APNs 624-440-012, 624-440-017, 624-441-007, 624-431-029, 624-430-006, 624-431-011, 624-431-016, 624-430-018, and 624-440-006 Negotiating Parties: Agency: Justin McCarthy/Janet Moore/ Palm Desert Redevelopment Agency Property Owner: Palm Desert Redevelopment Agency Under Negotiation: x Price x Terms of Payment 2) Property: APNs 634-242-019, 634-061-038, 634-241-042, and 634-062-028 Negotiating Parties: Agency: Justin McCarthy/Janet Moore/ Palm Desert Redevelopment Agency Property Owner: Palm Desert Redevelopment Agency Under Negotiation: x Price x Terms of Payment Conference with Legal Counsel regarding existing litigation pursuant to Government Code Section 54956.9(a): a) Ruhnau, Ruhnau, Clarke & Associates v. City of Palm Desert/ Palm Desert Redevelopment Agency, Riverside County Superior Court, Case No. INC 10008463 Conference with Legal Counsel regarding potential to initiate litigation pursuant to Government Code Section 54956.9(c): Number of potential cases: 1 Mr. Erwin asked forthe Agency Board's consideration of adding two items to today's agenda for Closed Session: 1) Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: Property: APN 622-020-089 Negotiating Parties: Agency: John M. Wohlmuth/Justin McCarthy/Cityof Palm Desert/ Palm Desert Redevelopment Agency/ Palm Desert Housing Authority Property Owner: DesertArc Under Negotiation: x Price x Terms of Payment 2 PRELIMINARY MINUTES DRAFT PALM DESERT REDEVELOPMENT AGENCY MEETING JULY 14, 2011 2) Conference with Legal Counsel regarding existing litigation pursuant to Government Code Section 54956.9(a): City of Palm Desert/Palm Desert Redevelopment Agency v. GHA Enterprises, Riverside County Superior Court, Case No. INC 10007782 Upon a motion by Kroonen, second by Finerty, and 4-0 vote of the Agency Board, with Benson ABSENT, the two aforementioned Closed Session items were added to the agenda. With Agency Board concurrence, Vice Chairman Spiegel adjourned the meeting to Closed Session at 3:01 p.m. He reconvened the meeting at 4:05 p.m. With Agency Board concurrence, Vice Chairman Spiegel called for a recess of the meeting at 7:10 p.m. He reconvened the meeting at 7:47 p.m. IV. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. None V. AWARDS, PRESENTATIONS, AND APPOINTMENTS None VI. CONSENT CALENDAR A. MINUTES of the Regular Redevelopment Agency Meeting of June 23, 2011. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE AGENCY TREASURY - Warrant Nos. 260RDA, 262RDA, 266RDA, 269RDA, 260-Housing, 263-Housing, 267-Housing, 269-Housing, and 268HA. Rec: Approve as presented. C. CITIZENS' ADVISORY COMMITTEE FOR PROJECT AREA NO.4 Minutes for the Meeting of April 18, 2011. Rec: Receive and file. 3 PRELIMINARY MINUTES DRAFT PALM DESERT REDEVELOPMENT AGENCY MEETING JULY 14, 2011 D. REPORT Pursuant to Section 33433(c) of the California Health and Safety Code. Rec: Receive and file. E. REQUEST FOR ACCEPTANCE OF WORK for Contract No. R30200 — Deconstruction of Sagecrest Apartments at 73-775 Santa Rosa Way and Deconstruction of 73-805 Santa Rosa Way(Vizion's West, Inc., Winchester, CA) (Joint Consideration with the Palm Desert City Council). Rec: By Minute Motion, accept the work as complete and authorize the City Clerk to file a Notice of Completion for the subject project. Upon a motion by Finerty, second by Kroonen, and 4-0 vote of the Agency Board, with Benson ABSENT, the Consent Calendar was approved as presented. VII. CONSENT ITEMS HELD OVER ,Z= Vill. RESOLUTIONS A. RESOLUTION NO. 587 - A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY, APPROVING THE REPLACEMENT HOUSING PLAN FOR ADOBE VILLAS APARTMENTS, 45-330 OCOTILLO DRIVE, PALM DESERT. Ms. Moore requested this item be continued to a date uncertain, because Legal Counsel had given staff concern with respect to the current Redevelopment legislation, and staff is not sure when this item can be brought back. Responding to question, she said the apartments are all vacant and some occupants were transferred into the City's own properties. Member Finerty moved to, by Minute Motion, continue this item to a date uncertain. Motion was seconded by Kroonen and carried by a 4-0 vote, with Benson ABSENT. 2 -J PRELIMINARY MINUTES DRAFT PALM DESERT REDEVELOPMENT AGENCY MEETING JULY 14, 2011 IX. NEW BUSINESS A. REQUEST FOR AUTHORIZATION TO ACQUIRE PROPERTY LOCATED IN FALCON CREST AND KNOWN AS APN 624-430-016 (74506 FALCON LANE), IF NECESSARY, IN ANTICIPATION OF EXPIRATION OF THE FIRST RIGHT -OF -REFUSAL PERIOD, IN THE EVENT THE AGENCY IS ALLOWED TO CONTINUE SUCH OPERATIONS (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). Ms. Moore stated this was a request for authorization to acquire property in the event the City/Agency received some legislative relief from litigation or otherwise in order to continue to operate. The owner notified the City of its intent to sell, and they were informed the City was in a holding pattern. However, in the interim, staff would like to have the approval to move forward in the event it can. Mayor Pro Tem/Vice Chairman Spiegel explained to the audience that staff was alluding to the possibility of losing Redevelopment funding, as would be all cities in California, based on what is being proposed in Sacramento. Councilmember/Member Finerty moved to, by Minute Motion: 1) Authorize acquisition of the subject property for the purposes of retaining affordability covenants and resale, if necessary, in anticipation of expiration of the 45-day First Right -of -Refusal Period in amount pursuant to the Affordable Agreement (approximately $245,952 [to be increased by reasonable closing costs and commissions]), in the event the Agency is allowed to continue such actions either by judicial "stay" or adoption of an Agency "Continuance Ordinance"; 2) approve Agency Silent Second and City BEGIN Third Trust Deeds in amounts necessary to secure an affordable housing cost pursuant to Redevelopment Law for either a direct sale or Agency resale from Housing Set -aside Fund and BEGIN Program monies; 3) authorize the Director of Finance to draw monies from the relative funds to facilitate the transaction; 4) authorize the Executive Director or his designee to execute any documents necessary to facilitate this transaction — funds are available in Acquisition Rehab and Resale Account No. 870-4492-464-4001, BEGIN Program Fund Account No. 214-4494-464-3901, and Homebuyer Assistance Account No. 870-4699-464-4001. Motion was seconded by Harnik and carried by a 4-0 vote, with Benson ABSENT. B. REQUEST FOR AUTHORIZATION. TO ACQUIRE PROPERTY LOCATED IN DESERT ROSE AND KNOWN AS APN 634-061-028 (43-990 BLUEBERRY LANE), IF NECESSARY, IN ANTICIPATION OF EXPIRATION OF THE FIRST RIGHT -OF -REFUSAL PERIOD, IN THE EVENT THE AGENCY IS ALLOWED TO CONTINUE SUCH OPERATIONS. Ms. Moore stated this was one of the properties where the property owner notified the Agency, prior to the Governor signing the budget, that they wished to sell. Staff would like authorization in the event the City can 5 PRELIMINARY MINUTES DRAFT PALM DESERT REDEVELOPMENT AGENCY MEETING JULY 14, 2011 continue operating while the Council is on summer break to acquire this property. Staff has attempted to sell directly, but the waiting list is limited at this time. She said there are not many people qualifying for these homes, but if someone walked in, staff would like to really work with them to do something straight across the board directly from the seller to the buyer. Member Finerty moved to, by Minute Motion: 1) Authorize acquisition of the subject property for the purposes of retaining affordability covenants and resale, if necessary, in anticipation of expiration of the 60-day First Right -of -Refusal Period, in amount pursuant to the Affordable Agreement (approximately $127,130 [to be increased by reasonable closing costs and commissions]), in the event the Agency is allowed to continue such actions either by judicial "stay" or adoption of an Agency "Continuance Ordinance"; 2) approve a Silent Second Trust Deed in an amount necessary to secure an affordable housing cost pursuant to Redevelopment Lawforeither a direct sale orAgency resale from Housing Set -aside Fund monies; 3) authorize the Director of Finance to draw monies from the relative funds to facilitate the transaction; 4) authorize the Executive Director or his designee to execute any documents necessary to facilitate this transaction — funds are available in Acquisition Rehab and Resale Account No. 870-4492-464-4001 and Homebuyer Assistance Account No. 870-4699-464-4001. Motion was seconded by Kroonen and carried by a 4-0 vote, with Benson ABSENT. C. REQUEST FOR AUTHORIZATION FOR THE EXECUTIVE DIRECTOR TO INITIATE ACQUISITIONS IN THE DEVELOPMENTS OF FALCON CREST AND DESERT ROSE, IN THE EVENT THE AGENCY IS ALLOWED TO CONTINUE SUCH OPERATIONS, FOR THE PERIOD OF JULY 1, 2011, THROUGH AUGUST 25, 2011, IN ANTICIPATION OF EXPIRATION OF THE FIRST RIGHT -OF -REFUSAL PERIOD ON SAID PROPERTIES. Ms. Moore stated this request is for authorization to allow Executive Director to at least commence acquisitions in the event it could. She said there are tight time frames during the summer, some are 45-days, which if not acted upon quickly, a property can actually be sold in the open market. She said staff will bring back anything that comes up during that time for ratification by the Agency Board at the August 25, 2011, meeting. Member Finerty moved to, by Minute Motion, authorize the Executive Director to: 1) Initiate acquisitions in the developments of Falcon Crest and Desert Rose, in the event the Agency is allowed to continue such actions either by judicial "stay" or adoption of an Agency "Continuance Ordinance," from July 1, 2011, through August 25, 2011, in anticipation of expiration of the First Right -of -Refusal Period on said properties; 2) execute any documents necessary to initiate the acquisitions. Motion was seconded by Kroonen and carried by a 4-0 vote, with Benson ABSENT. 0 PRELIMINARY MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING X. CONTINUED BUSINESS None XI. OLD BUSINESS None XII. PUBLIC HEARINGS None DRAFT JULY 14, 2011 XIII. REPORTS, REMARKS, AND AGENCY BOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR None B. AGENCY COUNSEL None C. CHAIRMAN AND MEMBERS OF THE AGENCY None XIV. ADJOURNMENT` On a motion by Finerty, second by Kroonen, and 4-0 vote of the Agency Board, with Benson ABSENT, Vice Chairman Spiegel adjourned the meeting at 8:23 p.m. ATTEST: ROBERT A. SPIEGEL, VICE CHAIRMAN RACHELLE D. KLASSEN, SECRETARY PALM DESERT REDEVELOPMENT AGENCY i 7