HomeMy WebLinkAboutPrelim - SA-RDA - 01-08-2015DRAFT
PRELIMINARY MINUTES
REGULAR MEETING OF THE
BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY
TO THE PALM DESERT REDEVELOPMENT AGENCY
THURSDAY, JANUARY 8, 2015
CIVIC CENTER COUNCIL CHAMBER
73510 FRED WARING DRIVE, PALM DESERT, CA 92260
I. CALL TO ORDER - 3:00 P.M.
Chair Weber convened the meeting at 3:01 p.m.
I1. ROLL CALL
Present:
Director Jan C. Harnik
Director Sabby Jonathan
Vice Chair Robert A. Spiegel
Director Van G. Tanner
Chair Susan Marie Weber
Also Present:
John M. Wohlmuth, Executive Director
David J. Erwin, City Attorney
Rudy P. Acosta, Assistant City Manager
Rachelle D. Klassen, Secretary
Russell Grance, Director of Building & Safety
Lauri Aylaian, Director of Community Development
Martin Alvarez, Director of Economic Development
Paul S. Gibson, Director of Finance
Janet M. Moore, Director of Housing
Mark Greenwood, Director of Public Works
Frankie Riddle, Director of Special Programs
Stephen Y. Aryan, Risk Manager
Bill Sullivan, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Department
Grace L. Mendoza, Deputy City Clerk
III. ADJOURN TO CLOSED SESSION
Request for Closed Session:
None
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With Successor Agency Board concurrence, Chair Weber adjourned the meeting to
Closed Session of the City Council and Housing Authority at 3:02 p.m. She reconvened
the meeting at 4:01 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 December 11 and December 25, 2014, Regular Meetings of the
Board of Directors of the Successor Agency to the Palm Desert Redevelopment
Agency.
Rec: Approve as presented.
B. CLAIMS AND DEMANDS AGAINST SUCCESSOR AGENCY TREASURY -
Warrant Nos. 138SA, 144SA, 146SA, and 152SA.
Rec: Approve as presented.
Upon a motion by Spiegel, second by Tanner, and 5-0 vote of the Board of Directors of
the Successor Agency (AYES: Harnik, Jonathan, Spiegel, Tanner, and Weber; NOES: None),
the Consent Calendar was approved as presented.
VII. CONSENT ITEMS HELD OVER
None
VIII. RESOLUTIONS
None
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SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 8, 2015
IX. NEW BUSINESS
A. REQUEST FOR APPROVAL OF A DISPOSITION AND DEVELOPMENT
AGREEMENT, AUTHORIZING THE TRANSFER OF APPROXIMATELY 113
ACRES, KNOWN AS A.P.N. 694-200-001 AND PORTION OF
A.P.N. 694-160-003, FROM THE SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY TO THE TRUSTEES OF THE
CALIFORNIA STATE UNIVERSITY, PURSUANT TO THE LONG-RANGE
PROPERTY MANAGEMENT PLAN (JOINT CONSIDERATION WITH THE
PALM DESERT CITY COUNCIL).
Mr. Alvarez stated the City and former Redevelopment Agency, which is now the
SuccessorAgency, and Cal State San Bernardino has a long-standing relationship
bythe establishment of Cal State University San Bemardino, Palm Desert Campus
at the corner of Cook Street and Frank Sinatra Drive. Staff has been working with
Cal State to develop a Disposition and Development Agreement that would allow
for the transfer of the remainder land owned by the Successor Agency to Cal
State. What has transpired over the years is that in 2001 the former
Redevelopment Agency transferred 55 acres to Cal State to develop Cal State
University San Bernardino, Palm Desert Campus. To date, five buildings have
been built and enrollment has grown to 1,100 students. With the Dissolution of
Redevelopment, the SuccessorAgency now has to dispose those assets that were
owned by the former Redevelopment Agency, one of which is now up for
discussion and also listed on the Long-Range Property Management Plan
(LRPMP); this asset has been approved to be transferred to Cal State as the
remainder land. Additionally, there is 2.67 acres near Gerald Ford Drive that has
been identified with the ability to transfer to the City for a future fire station, which
has also been approved by the Department of Finance (DOF). Additionally, 20
acres are identified as UC Regents, which has already been transferred to
University of California, Riverside for the Palm Desert Campus. The item before
the Council this evening is a Disposition and Development Agreement that will
allow the transfer of the remainder land to Cal State San Bernardino, which is
identified in green in the map attached to the staff report. He said Cal State San
Bernardino is in the process of a Master Plan, which will include the proposed
acreage that will allow them to expand the University at a future date. The
proposed Agreement includes the following provisions that give the City some
ability and control: 1) CSU agrees that it shall use the Reserve Property strictly for
educational purposes; 2) CSU agrees the words "Palm Desert" will be used on this
campus for future name identification; 3) CSU shall not convey or sell the property
without written consent from the Successor Agency and the City; 4) CSU will
provide the City the opportunity to review future buildings, facility, and master
planning along with other access points that will come about as part of the Master
Plan process; 5) CSU shall provide the City with the opportunity to review
landscaping so that there is consistency with sustainable principals and local water
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conservation efforts; 6) CSU will continue to work cooperatively with regional
educational partners to advance higher learning opportunities in the Coachella
Valley. He said staff has worked diligently with Cal State and both Legal Counsels
to develop the proposed Agreement. He introduced members of Cal State that
were present as follows: Dr. Douglas Freer, Vice President for Administration and
Finance; Dr. Sharon Brown-Welty, Dean of Cal State-San Bernardino, Palm
Desert Campus; Dr. John Welty, President Emeritus, CSU-Fresno, and CSU
Trustee Professor; and Mr. Hamid Azhand, Director of Capital Planning.
Mayor Pro TemNice Chair Spiegel stated he wants staff to ensure the City didn't
end up with a Kentucky Fried Chicken (KFC) restaurant out there, which was his
main concern.
Mr. Alvarez replied there is language in the Agreement that allows Cal State to
have food vendors and food restaurants for students just like a normal campus,
but not a stand-alone facility that would be privately operated.
Mayor Pro Tem/Vice Chair Spiegel asked if Cal State was still working on a
dormitory. Cal State representatives indicated they were.
Councilmember/Director Harnik commented she was happy to see this moving
along.
Councilman/Director Jonathan said staff eluded that the property is to be used as
an educational institution, however, Section 3.1 of the Agreement limits that
condition to 25 years. He questioned what happens afterthe 25 years and would
the City lose its control allowing the State to do what it wants.
Mr. Alvarez agreed it was a provision that potentially could allow it to happen,
stating the 25-year limit is language used in previous agreements. However, once
the land is transferred, the City is holding them to use the property for educational
purposes, but after 25 years the Successor Agency has gone away and those
provisions fade off into the distance. He said it was a good question and it can be
discussed with Cal State as well.
Councilman/Director Jonathan stated 25 years often seems like a long time, but
it feels like iYs been 25 years since a few on the Council started the satellite
campus at the College of the Desert grounds in trailers. Therefore, the 25-year
provision concerned him because Cal State may not build out the whole thing and
use part of the land to have a storage yard, etc. He has seen other agreements
where there is a condition that if the use is something other than educational,
ownership of the property reverts back to the City. Additionally, in Section 3.2 the
word "Palm Desert" is required to appear in the name of the campus in some way,
shape, or form. However, he had the pleasure of ineeting with Dr. Welty, who
gave him the understanding that it was not an easy thing to just say it will be so
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because it wasn't that simple. He said the provision is soft in that there is an
exception that states, "unless a different name is designated beyond CSU's
control," and for what the City has given to this campus, including this land, he
hoped that unconditionallythe words "Palm Desert" will appear in the name of this
campus.
Councilmember/Director Hamik agreed, stating the language between Section 3.1
and Section 3.2 conflicted. She asked if the word "shall" can be included in both
sections.
Councilman/DirectorJonathan suggested omitting the sentence that states "un/ess
a different name is designated," under Section 3.2. He said maybe
representatives from CSU may address this, but his preference was to not have
a 25-year limit on the educational use, and if a limit needed to be included, the
Agreement needs to indicate ownership reverts back to the City if it's ever used
for something other than educational purposes.
MayoNChair Weber and Councilmember/Director Hamik questioned if the
language of the 25-year limit needed to be included in the agreement.
Mr. Alvarez replied the 25-year limit language has been used in previous
agreement in terms of life of agreements, specifically Disposition and
Development Agreements (DDA). He agreed to bring the matter up and discuss
it with Cal State.
DR. DOUGLAS FREER, Vice President forAdministration & Finance at Cal State,
San Bernardino, explained that Cal State's restrictions would also prevent them
from turning some portion of the property over for some other use besides
education. He said their agreement under its own Trustees required them to use
the property for educational purposes for a period beyond 25 years, as long as it
was still within the control of the University.
Councilman/Director Jonathan stated that elimination of the 25-year provision in
Section 3.1 should then not pose an issue.
DR. FREER replied he didn't have an answer for sure, stating he would have to
finish the consultation on the matter with their counsel. However, he reiterated Cal
State is held to the same type of agreement that once they take the land for
educational purposes, they have to commit to using it for that purpose.
Councilman/DirectorJonathan expressed concem that current players may not be
around 25 years from now, and if the State wanted a waste station on 20 of those
acres, they could do it after 25 years.
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Councilmember/Director Harnik asked if the language on the 25-year limit had
anything to do with the State or Successor Agency.
Mr. Alvarez answered no, stating it was just language used in previous
agreements.
DR. FREER said Cal State University is prepared to accept the name "Palm
Desert" as the recommendation, but in all the naming of its campuses there is
always the overwrite that can come from the Governor. However, Cal State has
to reasonably assume that once the Board of Trustees has adopted the name,
that's the recommendation going forward.
Mayor/Chair Weber asked for further clarification in that the Governor could
change the name of the campus once the property is transferred.
DR. FREER said he didn't know for certain, but he would assume, if the campus
was ever to be designated as an independent CSU campus, the conversation
would be in front of the whole board about the naming of the campus.
Councilmember/Director Harnik noted there was also the potential it could be
named CSU-Coachetla Valley, but she would certainly like to have the name "Palm
Desert" included.
DR. FREER said it was Cal State's intention to reiterate the importance of the
Palm Desert name, and they plan to include it in this Agreement, and he saw no
reason why someone would change it at some future date.
Councilman/Director Tanner inquired about Cal State University Code 89046,
which states "Ca/ State may lease or license the operation of retail, commercial,
restaurant and service uses as defined by CSU's mission," asking if alcohol can
be on the campus at this point.
DR. FREER replied there was that possibility. He said most of their campuses
have an overwhelming percentage of students that are not even 21 years of age,
but most of their campuses have a small venue, obviously under significant
control. The examples' one sees at a campus is never a stand-alone fast-food
practice, but there is a food court, student union, or an athletic venue in the form
of food stands as part of the general operations of the University.
Mayor/Chair Weber shared that when she was at Cal State University in San
Bernardino, there was alcohol served in the student union, asking if that meant
there will be alcohol at the Palm Desert campus.
Councilman/Director Tanner commented it was allowed under Cal State's Code.
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DR. FREER said there could be, but they haven't made any determination of the
kind of venues that would be in any of the future buildings.
Councilman/Director Tanner pointed out alcohol is being sold right across the
street from the campus.
Mayor Pro TemNice Chair Spiegel said the only real question was on the 25-year
limit on the use of the property, but if the language can be changed to state 50
years, it may make everyone happy.
Councilmember/Director Harnik inquired about Cal State's limit on the use of the
property, stating that Dr. Freer had eluded it was longer.
DR. FREER said their assumption is similar to other land acquisitions for any CSU
campus that once CSU accepts property for that purpose, he has never seen a
situation where portions of land ends up being used for another purpose. In many
cases, the campus grows to the point where it will need additional property at
some future date.
Mayor Pro Tem/Vice Chair Spiegel noted the Agreement didn't allow Cal State to
use it fo� any other purpose.
The Council/Board discussed the motion and agreed to striking language from
Section 3.1 relating to the 25-year limit, and Section 3.2 in reference to the naming
of the campus.
DR. FREER stated he and Dr. Brown-Welty were fine with what is being proposed,
but they obviously had to run the details with their legal counsel before it went to
the Board of Trustees at the end of the month.
Councilmember Harnik moved to, waive further reading ar►d adopt Resolution Nos. 2015 -
04 and SA-RDA 040, approving the subject Disposition and Development Agreement and
related actions, with DDA amended, as follows: Section No. 3.1 - Use of Reserve Property -
with the first sentence to read "CSU agrees that it shall use the Reserve Property only for
educationa/ purposes as part of CSU mission and for no other purpose whatsoever,
exceptas provided in this DDA,"striking the phrase, "
„
Section 3.2 - Name - Subsection (ii) to read, "ifa separate campus of the CSU is built upon
the Reserve Property, that the name of the CSU Campus shall be `California State
University, Palm Desert'.'; striking the phrase, "...
> »
, •
Motion was seconded by Jonathan and it carried by a 5-0 vote (AYES: Harnik, Jonathan,
Spiegel, Tanner, and Weber; NOES: None).
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SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 8, 2015
X. CONTINUED BUSINESS
None
XI. OLD BUSINESS
None
XII. PUBLIC HEARINGS
None
XIII. REPORTS, REMARKS, SUCCESSORAGENCY BOARD ITEMS REQUIRING ACTION
A. EXECUTIVE DIRECTOR
None
B. SUCCESSOR AGENCY COUNSEL
None
C. CHAIR AND MEMBERS OF THE SUCCESSOR AGENCY
None
XIV. ADJOURNMENT
On a motion by Spiegel, second by Weber, and unanimous consent of the Successor
Agency Board> Chair Weber adjourned the meeting at 7:48 p.m.
SUSAN MARIE WEBER, CHAIR
ATTEST:
RACHELLE D. KLASSEN, SECRETARY
SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY
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