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 \\
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Guests:
Jean Benson, Councilmember
Steven Orr, City Attorney
Robert Spiegel, Councilmember
Mari Schmidt, Planning Commissioner
Sgt. Misty Reynolds, Sheriff's Department
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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
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CITIZENS' ADVISORY COMMITTEE FOR PROJECT AREA NO. 4
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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.
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CITIZENS' ADVISORY COMMITTEE FOR PROJECT AREA NO. 4
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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.
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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
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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
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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
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