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HomeMy WebLinkAboutMinutes - Citizens Advisory Committee Project Area 4 11/15/2010PALM DESERT REDEVELOPMENT AGENCY CITIZENS' ADVISORY COMMITTEE FOR PROJECT AREA NO. 4 MINUTES NOVEMBER 15, 2010 CALL TO ORDER Chairman Benford convened the meeting at 3:05 p.m. II. ROLL CALL Present: Fred Benford, Chairman Roberta Grubb, Vice Chair Terry Archer, Member Jane Daugherty, Member Phyllis Harkins, Member Kelly Litecky, Member Douglas Luhring, Member Absent: Russ Campbell, Member Ron Crisp, Member Staff Present: Lauri Aylaian, Director of Community Development Mark Greenwood, Director of Public Works Shawn Kilpatrick, Code Compliance Officer Justin McCarthy, ACM for Redevelopment Pedro Rodriguez, Senior Code Officer Catherine Walker, Senior Management Analy t \\ B`f tym h - J Guests: Jean Benson, Councilmember Steven Orr, City Attorney Robert Spiegel, Councilmember Mari Schmidt, Planning Commissioner Sgt. Misty Reynolds, Sheriff's Department ORAL COMMUNICATIONS OIL 2- IC,---?C// VERIFIED BYw�1��%�a Original on file will-; City CicrWs 01fion Chairman Benford communicated that the homeowner' association for the new housing development that was built around the club blocked off a portion of the entry way at Colorado and Tennessee. They were told that the streets are privately owned and were going CITIZENS' ADVISORY COMMITTEE FOR PROJECT AREA NO. 4 MINUTES NOVEMBER 15, 2010 to be blocked off due to speeding traffic. He said that there was someone standing out there with a golf club and a huge sign that displayed, "Private Property — Do Not Enter." The guy also told him that the City had given them approval to block off the entry at Colorado. Councilmember Spiegel asked Mr. McCarthy if he knew anything about it. He replied no. Ms. Aylaian commented that there were a couple of developments in town that were asking if they could close down their streets because people speeding through them. She had not heard that there was a problem at this location, and asked Mr. Greenwood if had heard anything. Mr. Greenwood responded that he had heard that there was an issue at Colorado Street. He confirmed that those streets are in fact private, but nobody in the Public Works Department told them that they could close the streets. Public Works might have told them that there is a procedure they would have to go through. Chairman Benford mentioned that someone called the City, and the City came by and took the sign down. Mr. Greenwood also mentioned that the police were called. Member Harkins stated that the Esperanza homeowners' which is the group of homes being referred to, hold their quarterly association meetings at the Palm Desert Country Club building because they do not have a common area building to use. She commented that she spoke to the homeowners' association manager, and he told her that they had applied to the Planning Commission to add gates. Member Harkins asked Ms. Schmidt if she has seen anything. She replied no. Ms. Aylaian stated that the streets are private; they own and control those streets. Ms. Schmidt asked Ms. Aylaian if they have come in to talk to the Planning Department. Ms. Aylaian responded that they might have spoken with the Planners at the counter; there is no application. Member Archer voiced that he has a concern at Hovley and Washington Street with people being allowed to turn left out of the Girda\Monica Loredo\Word\PA No. 4\Minutes\2010\Minutes 11-15-10.docx 2 CITIZENS' ADVISORY COMMITTEE FOR PROJECT AREA NO. 4 MINUTES NOVEMBER 15, 2010 Albertson's Shopping Center even though there is a double yellow line. People are turning into the turn lanes that are going the opposite direction or blocking traffic that are causing near accidents. He mentioned that on the County/Bermuda Dunes side, they added an island divider to prevent that from happening at the Ralph's Shopping Center. Member Archer requested if something could be addressed on that matter. Mr. Greenwood stated that they are working on a short-term solution with the recent slurry seal. They are adjusting the turn pockets to try to facilitate the left turns because it is important for that shopping center to have access. He mentioned that City staff talked to the owner of the center, and he was absolutely adamant that it would be a project killer for him to lose the left turn in and out access so they are doing the best they can to maintain that access. He agreed there are concerns at that location. History shows that there are more close calls than accidents. Mr. Greenwood noted that the intersection on the Bermuda Dunes side went through a series of changes. Mr. Greenwood asked if anyone would mind if he put together a report for the next meeting. Member Archer responded that he would like a report. Vice Chair Grubb mentioned a concern with the intersection of Frank Sinatra and Gerald Ford. Mr. Greenwood stated that a traffic signal is being installed. Member Harkins commented that she had mentioned this concern in the past and is a point of reference again. She stated the concern with exiting and making left turns out of Woodhaven to go north on Washington. She understands that Woodhaven would have to say they want it, but at some point in time that intersection should be addressed. Chairman Benford communicated that he has received several complaints about speeding in certain areas, and inquired if the City is open to speed bumps. Councilmember Spiegel responded that the City is not open to speed bumps. GArda\Monica Loredo\Word\PA No. 4\Minutes\2010\Minutes 11-15-10.docx 3 CITIZENS' ADVISORY COMMITTEE FOR PROJECT AREA NO. 4 MINUTES NOVEMBER 15, 2010 IV. CONSENT CALENDAR A. APPROVAL OF THE MINUTES OF THE CITIZENS' ADVISORY COMMITTEE FOR PROJECT AREA NO. 4 MEETING OF OCTOBER 18, 2010. Minutes of the meeting from October 18, 2010, were unanimously approved as submitted and carried by a 7-0 vote with Members Campbell and Crisp ABSENT. V. UNFINISHED BUSINESS None V1. NEW BUSINESS None VII. CONTINUED BUSINESS None Vill. OLD BUSINESS None IX. INFORMATIONAL ITEMS A. UPDATE: PALM DESERT COUNTRY CLUB UNDERGROUNDING (Catherine Walker, Senior Management Analyst) Ms. Walker reported that staff is going to schedule one more informational forum now that more people from the community are back from the summer. She mentioned that one of the questions that came up in the forums was the permit fees that would be attached to the panel upgrade, which majority of the homes would need to handle the additional amperage. She noted that there is a permit fee associated with the upgrade. In response, staff is taking an action for City Council consideration to waive the permit fees associated with the panels. Member Harkins inquired if there was a date for the next forum. Ms. Walker replied no. GArda\Monica Loredo\Word\PA No. 4\Minutes\2010\Minutes 11-15-10.docx 4 CITIZENS' ADVISORY COMMITTEE FOR PROJECT AREA NO. 4 MINUTES NOVEMBER 15, 2010 B. UPDATE: PALM DESERT COUNTRY CLUB GOLF COURSE (Shawn Kilpatrick, Code Compliance Officer and Catherine Walker, Senior Management Analyst) Mr. Kilpatrick reported that staff is still doing their regular inspections and presented pictures of current conditions of the golf course. Chairman Benford inquired if the greens are being mowed. Mr. Kilpatrick responded that everything was mowed. They are not edging as much as they used to; maintenance is very minimal. Councilmember Spiegel asked if anyone is playing golf. Member Daugherty replied that there are some people hitting balls, and she has seen people playing golf along with people walking their dogs. Member Daugherty mentioned that a ball went onto her patio and could have hit her window. Mr. Kilpatrick stated that the Sheriff's Department attempted to get a letter of trespass from the bank, but there seems to be some reluctance to accept responsibility for trespassers on the course. Ms. Ruth De George, 76-797 California Drive, asked what happens if a tree branch falls on her property. Mr. Kilpatrick responded to give him a call. Member Harkins inquired if there was any explanation for the electricity being turned off. Mr. Kilpatrick answered that the electricity was turned back on, but it was due to non-payment. Mr. McCarthy introduced Mr. Steven Orr, City Attorney, who is monitoring the bankruptcy case. Mr. Orr reported that the bankruptcy was dismissed at the end of September for lack of participation by Mr. Case, Mr. Kosmont, and Mr. Cho, and for the failure to pay fees and failure to appear at creditor meetings. It was a punitive action by the Bankruptcy Court to dismiss, which took place on September 28. The order was signed and issued shortly before Halloween. No appeal was taken by Palm Desert Country Club Development, LLC (PDCC) during the 14-day period, which means the dismissal is final. PDCC are now fair game for lawsuits, liens, and other things. He communicated that Wilshire Bank has been the one responsible for maintaining the course. They are attempting to preserve the asset. It has $4 to $6 million invested in terms of loans for the property. The bank wants everyone to know that they are spending thousands of dollars for maintenance, and trying to keep water and power GArda\Monica Loredo\Word\PA No. 4\Minutes\2010\Minutes 11-15-10.docx 5 CITIZENS' ADVISORY COMMITTEE FOR PROJECT AREA NO. 4 MINUTES NOVEMBER 15, 2010 bills current. Mr. Orr stated that the bank is close to selling the note to someone who sent a representative to an HOA meeting. The sale has not been completed, which is the note that the bank has with the developer. He explained that would put whoever bought the note into the position of being the first trustee lender who could then exert pressure on the PDCC owners to give a deed in lieu of foreclosure. He stated that the bank filed a Notice of Default, which is the process that starts a trustee sale. It was filed on August 16, which 90 days runs from that date to this Wednesday. He stated that the attorney for the bank told him that if the deal does not close with Mr. Eddy Awada, that the bank intends to foreclose on Wednesday by credit bidding its note at a sale. Based on the August 16 filing of a Notice of Default, the foreclosure could not take place. He gathers that the bank is running out of patience with PDCC, and the bank may come to own the property in mid December. He said that the fact that the bank has filed a Notice of Default back in August, it brings it within the scope of the City's excellent abandoned property statute. So the City has the bank on the hook for maintenance and they know that. He noted that the owner has been non -responsive to the City getting a letter of trespass to allow the Sheriff's to go on the property. Mr. Case, Mr. Cho, and Mr. Kosmont seem to be unavailable. Mr. Orr also reported that the bank continues being active in managing the property. They have it legal in terms so it is not a public nuisance. Ms. Schmidt asked if someone was injured on the grounds today, who is liable. Mr. Orr responded that the person could sue the owner of the property, which is PDCC. Mr. McCarthy inquired if there was a lawsuit, would they be precedent to the other claims or would they be subordinate. Mr. Orr replied that they would be subordinate. Councilmember Spiegel asked if the bank is actively trying to sell the property. Mr. Orr answered that the attorney for the bank told him that they are active. Vice Chair Grubb asked who PDCC Development, LLC is. Mr. Orr responded that is the name of the company that owns the property. Councilmember Spiegel inquired if the bank could sell the property without their approval. Mr. Orr answered that the bank could sell the note without approval. Member Daugherty asked if Mr. Cho has assets. Mr. Orr explained that from an investor or developer standpoint of having an LLC (Limited GArda\Monica Loredo\Word\PA No. 4\Minutes\2010\Minutes 11-15-10.docx 6 CITIZENS' ADVISORY COMMITTEE FOR PROJECT AREA NO. 4 MINUTES NOVEMBER 15, 2010 Liability Company) is that the liability of the members is limited to the amount of money that they have in the LLC, which means you cannot go after them personally. He said that you could go after the golf course, but it has significant liens on it. Ms. Schmidt asked how much the notes are. Mr. Orr responded that he believes they are between $4 and $5 million total. Member Harkins stated that in earlier motions, the City had requested that the books and records do not be destroyed and it was ordered in the bankruptcy dismissal. She asked where the books are located. Mr. Orr answered that according the bankruptcy attorneys' the books and records are located in the PDCC Clubhouse office. He noted that the City has not taken steps to gain access to the records, but they are under court order not to destroy them. Member Harkins inquired if the City will be taking any action. Mr. Orr replied that he did not know. X. REPORTS AND REMARKS A. COMMITTEE CHAIRPERSON/MEMBERS B. AGENCY BOARD LIAISONS C. PLANNING COMMISSION LIAISON D. STAFF XI. ADJOURNMENT Upon a unanimous motion by the Project Area No. 4 Committee, the meeting was adjourned at 3:35 p.m. Monica Loredo, Recording Secretary G:\rda\Monica Loredo\Word\PA No. 4\Minutes\2010\Minutes 11-15-10.docx 7