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2004 07 06 RDA Minutes LA QUINT A REDEVELOPMENT AGENCY í MINUTES JULY 6,2004 . A regular meeting of the La Quinta Redevelopment Agency was called to order by Chairperson Henderson. PRESENT: Board Members Adolph, Osborne, Perkins, Sniff, Chairperson Henderson ABSENT: None PUBLIC COMMENT - None CLOSED SESSION 1 . . Conference with Agency's legal counsel pursuant to Government Çode Section 54956.9(c), initiation of litigation (two matters). 2. Conference with Agency's real property negotiator, Mark Weiss, ,..- pursuant to Government Code Section 54956.8 concerning potential I terms and conditions of acquisition and/or disposition of real property known as Parcels 1, 2, and 3 of Parcel Map 29909 located at the northwest corner of Calle Tampico and Desert Club Drive. Property Owner/Negotiators: Santa Rosa Plaza, LLC and Bison Hotel Group, LLC - Dan Brown. Redevelopment Agency recessed to Closed Session to and until the hour of 3:00 p.m. 3:00 P.M. The Redevelopment Agency reconvened. PUBLIC COMMENT - None CONFIRMATION OF AGENDA - Confirmed - I ! . ------ - -.. --- ____n______--------------- -------- __n_--___- Redevelopment Agency Minutes 2 July 6, 2004 APPROVAL OF MINUTES MOTION - It was moved by Board Members Sniff/Adolph to approve the Redevelopment Agency Minutes of June 15, 2004 as submitted. Motion carried unanimously. MOTION - It was moved by Board Members Sniff/Adolph to approve the Redevelopment Agency Minutes of June 18, 2004 as submitted. Motion carried unanimously. CONSENT CALENDAR Board Member Osborne requested Item No.2 be pulled for discussion and separate action. 1. APPROVAL OF DEMAND REGISTER DATED JULY 6, 2004. 2. APPROVAL OF THE PLANS, SPECIFICATIONS, AND ENGINEER'S ESTIMATE, AND AUTHORIZATION TO BID THE SIL VERROCK RESORT ON AND OFFSITE STREET, WATER, AND SEWER IMPROVEMENTS, PROJECT NO. 2002-07F. 3. AUTHORIZATION TO ALLOCATE REDEVELOPMENT AGENCY PROJECT AREA NO.2 FUNDS FOR THE SIMON DRIVE AND WASHINGTON STREET TRAFFIC SIGNAL IMPROVEMENTS. MOTION - It was moved by Board Members Sniff/Adolph to approve the Consent Calendar as recommended and amended with the exception of Item No.2. Board Member Perkins referenced the need to be consistent in the spelling of SilverRock. Motion carried unanimously. Item No.2: In response to Board Member Osborne, Public Works Director Jonasson stated the plans include: Avenue 52 street-widening improvements; a water line extension from The Tradition to Cetrino; paving and dry utilities within the clubhouse entry road to the location of the permanent clubhouse; and Avenue 54 street widening to the north side with some utilities and a cul-de-sac east of the canal. ~ -- -- -- -- __n -- Redevelopment Agency Minutes 3 July 6, 2004 r Board Member Adolph referenced the need for the Agency to have ¡ time to review plans in the future before approving them. . A brief discussion ensued regarding the spelling of SilverRock, and City Clerk Greek advised lower and uppercase letters will be used on future agendas. MOTION - It was moved by Board Members Osborne/Sniff to approve Consent Item No.2, approving the plans, specifications, and engineer's estimate, and authorize staff to advertise the bid of the SilverRock Resort On and Offsite Street, Water, and Sewer Improvements, Project No. 2002-07F. Motion carried unanimously. BUSINESS SESSION - None STUDY SESSION - None r CHAIR AND BOARD MEMBERS' ITEMS . 1 . DISCUSSION REGARDING AHMANSON RANCH AS A TEMPORARY CLUBHOUSE. Board Member Adolph referenced a letter from landmark dated in January 2004 regarding what they viewed as positives and negatives of using the Ahmanson Ranch as a temporary clubhouse. He stated he feels the Agency's decision may have been different if they had read the information contained in the letter. He feels this is a joint venture, and landmark should have confidence in the facilities they will have to operate. He commented on the need for staff and landmark to resolve any problems that may exist between them, and for the Agency to get all the information needed to operate this project because too much has been invested to have it fall apart because due diligence has not been done. Chairperson Henderson noted the agenda item is a discussion about the Ahmanson Ranch and temporary clubhouse, and items at this -level are generally recommended to come back on a future agenda for r-- discussion if that's the Agency's desire. ! I . --------------------- ---- ____n____-_---- --------- --------- --un______n-- Redevelopment Agency Minutes 4 July 6, 2004 Board Member Perkins commented on the Agency's responsibility for making decisions on this project, and the need for everyone involved to get along because it's probably the biggest investment the City will ever make. He doesn't object to constructive criticism but once the . Agency makes a decision, he feels it should be accepted. Board Member Adolph stated he has often said, "When the horse is dead, you get off." Board Member Osborne noted the Agency will be dealing with a lot of issues during the next six months to finalize SilverRock, and he is extremely impressed at how well staff and all the professionals have stayed on track with this project to this point. He feels the next six months are going to be trying, and wants to make sure all the best ideas are brought forward and hammered out as to which the Agency feels is best then move on. Chairperson Henderson noted the Agency has made a decision about the temporary clubhouse and it has gone out to bid. Board Member Sniff commented on the need to have an orderly process wherein to make decisions and not to have items surface after the fact. He referenced the importance of having maximum confidence in staff dealing with these issues, and some mechanism by which these items can be brought to the Agency should they be deemed necessary in a timely way. He stated he would like to have assurance that any major difference of opinion of major importance would be brought to the Agency. Otherwise, if it's after the fact or relatively minor, he feels it has no particular value. Chairperson Henderson stated she feels the City has hired one of the finest management companies in the Coachella Valley and that they will be able to make this project work for a year under probably trying circumstances. She referenced the possibility of doing a design/build co.ntract on the permanent clubhouse to get it operational by January 2006. She understands there's been some discussion about the possibility of bringing in a portable kitchen that would allow the stovetop that is needed to get a liquor license. She noted the decision to use the Ahmanson facility has gone down the road quite a way with modifications to roads, golf course, etc. She is not sure, at this point, she would recommend bringing this back in two weeks for further discussion because the project needs to stay on track. -- _n- - -- ~ Redevelopment Agency Minutes' 5 July 6, 2004 Board Member Sniff commented on the importance of providing a I good first impression, and stated he feels a kitchen and/or liquor . ! license should be considered if it could provide a significant first . impression. Chairperson Henderson agreed, and noted that is being looked at. Board Member Perkins stated he has great respect for City staff and the consultants hired to run this project. He agrees first impressions -- are important, and that the ability to get a liquor license should be considered. Board Member Adolph noted a decision has been made to utilize the Ahmanson Ranch and what needs to be done is incorporate as many of the good ideas as possible into that facility. He doesn't want to do anything that would hold up completion of the first golf course because the City needs to have revenues coming in. Chairperson Henderson noted the discussion has gone into more depth than it should have, and it's her understanding that the Agency is not recommending it come back on a future agenda. ~ . I City Manager Genovese stated staff will continue providing updates in . the weekly Items of Interest as to any research into kitchen facilities, etc. He added the issue of first impressions will be covered under consideration of the brand promise, which will be on the next agenda. Andy Vossler, of landmark Golf Company, requested to speak. Chairperson Henderson informed him that he could provide comment . under Public Comment at 7:00 p.m. or make a brief statement at this time. Mr. Vossler stated he is disturbed by some of the things he heard today and in the press after the last Council meeting. He said they lost one job and are unsure about another because of that press. In wishing to clarify some things, he stated they brought up the temporary clubhouse issue more than once but were told not to discuss it anymore after they began the process of pursuing the management contract. They were also told their input on issues should go through the Assistant City Manager, therefore, they gave - him the letter referenced by Board Member Adolph and didn't know if the Agency ever saw it. They were also told they are now a team member and were not to have one-on-one conversations with Council -----~~,--,~--~--------~--__,---un- --------- -u' --- -- -- ----- -- -- Redevelopment Agency Minutes 6 July 6, 2004 Members. He indicated they were between frustrated and hand-tied in trying to accomplish a job and to get a job. They were also told it was not acceptable for them to speak at the closed session hearings. He voiced concern about speeding up completion of the permanent clubhouse. It would allow moving out of the Ahmanson facility but would create an economic situation that he feels no operator would be able to work out from under. He believes until there are sufficient rounds of golf on 36 holes, a permanent clubhouse would be a drain, and they don't want to be responsible for it. He indicated they provided a copy of the referenced letter to the Agency because they felt the Agency had not seen it and that they should see it. He agreed with Board Member Perkins that things need to get worked out or somebody probably should leave. He feels the Ahmanson facility is a band-aid, and that moving out of it into the permanent clubhouse would be a band-aid. He stated they will do the best they can in the Ahmanson facility but feels it won't be what the Agency expects. He doesn't feel bringing in tents, trailers, and semi-trucks is the image the Agency wants. He feels they have been hindered, harassed, badgered, and agitated to a point that it's very difficult to see how they can do what they are here to do without tarnishing their image and reputation a lot more than they want to. He doesn't believe they can sell advanced play of quantity and quality with a less-than-five- star, band-aid approach because group contacts will not risk their jobs booking an outing here. He noted that will delay group play, convention play, and outing play until the group contacts feel comfortable booking here. He stated landmark doesn't want to be the one to leave but rather to stay here and do a good job. He feels they've put 110% into this project, and they want to remain a part of it. He indicated every member of their team, except him, at some point has suggested leaving the project. He believes an opportunity exists to provide a temporary clubhouse for four or five years, and that the Ahmanson facility can't do that. He doesn't believe 1 8 holes of golf can carry a full-blown clubhouse that is landscaped, and everything associated with it. Board Member Adolph noted the permanent clubhouse is in Phase II, and the second golf course is in Phase III, which means there will be a p.eriod of time when there will only be 18 holes after the clubhouse is built. Mr. Vossler commented on the possibility of the current phasing plan not being correct and the original budget not proving to be a very good budget. He views some other things done in the initial early planning as a result of lack of experience. He noted Desert Willow Redevelopment Agency Minutes 7 July 6, 2004 didn't build a permanent clubhouse until a year of operation after the r- second golf course was built in order not to get in an upside down ! situation; they had some problems due to the economy and some . plantings but the second golf course bailed them out. He feels long- range planning is a direction to follow but should be monitored and revised to do what is best. He indicated there are third parties available that could help the Agency better analyze, than what has been done, the causes, economics, and effects of where the project is headed. In response to Board Member Adolph, Mr. Vossler confirmed his experience tells him the second golf course should be built before getting involved with the permanent clubhouse and other amenities. He noted the La Quinta Hotel, the Citrus, PGA West, and the Hideaway.all started in temporary clubhouses. Chairperson Henderson commented on the number of modifications already made to the phases and the likelihood of future modifications. She noted this item is not on the agenda for discussion, and that staff is not participating in the discussion, which is seldom allowed under. Public Comments. ,..- Judy Vossler, of landmark Golf Company, stated she is sorry they had to get out of order to have a two-way exchange with the Agency. She stated it's frustrating to watch the Agency make expensive, critical decisions without having all the information, and they would like to help provide ~hat information during the decision process. She added it's her understanding that the Ahmanson Ranch and temporary clubhouse is on the agenda for discussion. Chairperson Henderson explained the purpose of having the item on the agenda is to determine if the Agency wants it to come back on a future agenda for discussion. Ms. Vossler stated it appears that the conversation will not be. forwarded, and that there will not be a format for Council, staff, and the golf operator to have an in-depth, open exchange about something that is so critical to the City's future and to landmark's future. She noted more time was spent in branding sessions than has been spent talking about the Ahmanson house, which is equally important. ~ Board Member Sniff stated he believes it's time to have some type of i meeting to seek clarification and a renewed sense of direction. He . questioned having an early opening with only a very incomplete ~-~~~-~~------------- m ____n__- Redevelopment Agency Minutes 8 July 6, 2004 project being the best way to go. He sees nothing wrong with having a mid-course discussion to see if any modifications are needed, and suggested putting this on a future agenda as a study session item. In response to Chairperson Henderson, Mr. Genovese stated he respectfully disagrees with some of the comments made by the consultant but will provide that to the consultant and Agency under separate cover. He noted a lot of the programs in place and the decisions made by the Agency were provided by topnotch consultants selected by the Agency, including GMA and Palmer Design Group, and those consultants have not indicated the Agency is moving in the wrong direction, which is partly why he respectfully disagrees with the operator. He requested clarification on what issues should be brought back in a study session so the various professionals involved in this project can be present to provide input. Chairperson Henderson concurred with having the consultants present. Board Member Sniff noted a number of things have taken place and are done. He wished to have a current status on the direction the project is going in regard to significant items, such as the Ahmanson clubhouse and things of that nature. He doesn't want to redo the whole project. Board Member Osborne agreed. Board Member Adolph stated not the golf course for sure. Board Member Sniff agreed, and noted it's already underway. Chairperson Henderson pointed out the Ahmanson facility is also underway, and that significant amount of money has been spent rerouting the golf course and making modifications to use the facility. Board Member Sniff suggested dealing with the current status and the direction the project is going over the next 1 8 months to determine if any modifications are needed. He referenced the possibility of dealing with certain items like the kitchen or liquor license in order to provide a good first impression. Mr. Genovese stated the current status and direction over the next 18 months is provided in the Items of Interest, and can be provided in written form for a study session, as well as an update on the phasing. He commented on the difficult timelines of the project, and the need ~ --- Redevelopment Agency Minutes 9 July 6,,2004 to get certain contracts let. He stated he has the utmost confidence r in the team assembled for this project, and is confident the project is I going to get done. . Board Member Adolph stated he feels Mr. Vossler made a good point about the rounds of play needing to be there, and suggested looking at what effect it would have to move forward with the second golf course. Mr. Genovese stated staff can provide information on the complexities . of the issue but not any answers in such a short time period. He noted staff already provided some economic research regarding when the second golf course would come on line and the complexities of having 36 versus 18 holes. Board Member Adolph stated he understands the need to move forward with the hotel and commercial areas because they will provide the revenues needed to maintain the golf course but he feels the golf will be a key issue in bringing them in. He feels the bottom line is providing a public golf course for La Quinta residents. r Board Member Osborne requested a discussion about the Ahmanson ; house be includåd in the study session. ¡ I > Board Members Sniff and Adolph concurred. The Redevelopment Agency recessed to closed session as delineated on Page 1 to and until 7:00 p.m. 7:00 P.M PUBLIC HEARINGS 1 . JOINT PUBLIC HEARING BETWEEN THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY TO APPROVE AN AGREEMENT TO SELL REAL PROPERTY LOCATED AT 53-185 A VENIDA NAVARRO BY AND BETWEEN THE lA QUINT A REDEVELOPMENT AGENCY AND RUTH TORRES. ,.--- , Redevelopment Consultant Spevacek presented the staff report. ~_._n__~__~---~--_n~- - -------- Redevelopment Agency Minutes 10 July 6, 2004 In response to Board Member Adolph, Mr. Spevacek confirmed the City has $1 27,000 invested in the house and IS selling it for $165,000, which is the market value reflective of the affordability covenants on the property. He noted without the covenants, the property would probably sell for $200,000 to $220,000. He further noted the profit from the sale will go into the housing fund to develop additional affordable housing units. The Chairperson declared the PUBLIC HEARING OPEN at 8:37 p.m. There being no requests, the Chairperson declared the PUBLIC HEARING CLOSED at 8:37 p.m. MOTION - It was moved by Board Members Sniff/Adolph to approve an Agreement to sell real property located at 53-1 85 A venida Navarro to Ruth Torres for a purchase price of $165,000, and to authorize the Executive Director to execute the necessary documents to complete the property sale. Motion carried unanimously. MINUTE ORDER NO. 2004-86. The Redevelopment Agency recessed to Closed Session as delineated on Page 1. The Redevelopment Agency reconvened. Agency Counsel Jenson announced the Agency Board has voted to authorize the Agency Counsel to initiate litigation regarding Closed Session Item No.1. The motion was made by Board Member Osborne and seconded by Board Member Adolph and passed unanimously. Once the litigation is filed in court, the complaint will be available in the City Clerk's Office. ADJOURNMENT There being no further business the meeting was adjourned. Respectfully submitted, -~--Ø.~ JUNE S. GREEK, Secretary Gity of la Quinta, California ;"": "'!P"".-,- .