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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 PRELIMINARY MINUTES DRAFT SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 8, 2015 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 2 PRELIMINARY MINUTES 1�:7_\ �1 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 3 PRELIMINARY MINUTES DRAFT SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 8, 2015 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 4 PRELIMINARY MINUTES DRAFT SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 8, 2015 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. � PRELIMINARY MINUTES DRAFT SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 8, 2015 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. 0 PRELIMINARY MINUTES DRAFT SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 8, 2015 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). tl PRELIMINARY MINUTES DRAFT 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 0