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2004 07 20 RDA Minutes LA QUINT A REDEVELOPMENT AGENCY ,.- MINUTES JULY 20, 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 SES$ION 1. Conference with Agency's real property negotiator, Mark Weiss, pursuant to Government Code Section 54956.8 concerning potential terms and conditions of acquisition and/or disposition of real property located at the northwest corner of Avenue 48 and Dune Palms Road -- (APN: 649-030-034). . Property Owner/Negotiator:. Jim Menton. 2. Conference with Agency's real property negotiator, Mark Weiss, pursuant to Government Code Section 54956.8 concerning potential terms and conditions of acquisition and/or disposition of real property. located southeast of the Miles Avenue and Washington Street intersection and north of the Whitewater Channel (APNs: 604-040- 012/013 and 604-040-022/023). Property. Owner/Negotiator: Richard :Oliphant, CP Development La Quinta, LLC.. The Redevelopment Agency recessed to Closed Session to and until the hour of 3:00 p.m. 3:00 P.M. The Redevelopment Agency meeting reconvened with no decisions being made in Closed Session which require reporting pursuant to Section 54957.1 of the Government Code (Brown Act). ~ . . Redevelopment Agency Minutes 2 July 20, 2004 The Redevelopment Agency concurred to take up Study Session Item No.1 at this time. STUDY SESSION 1. DISCUSSION OF SilverRock RESORT PROJECT STATUS. Assistant Executive Director Weiss gave a brief overview of the project's history, and invited each consultant to give a brief presentation on their involvement and status with the project. Frank Spevacek, of Rosenow Spevacek Group, indicated his role includes assisting with bond financing, property acquisition, market analysis, and putting packages together for hotel developers. Gene Krekorian, of Economic Research Associates, stated the market and financial feasibility study they conducted in 2002 indicated golf course' revenues would not be sufficient in the beginning to support the maintenance of two golf courses. In response to Board Member . Adolph, he stated he believes purchasing the property was a good ~ .., 'investment. He also beneves the feasibility for a second golf course is three to six years away, and that it would be too risky to have two golf courses at this time. Chairperson Henderson stated she feels the City has laid claim to the Valley's next big resort when market conditions are ready. Gil Martinez, of GMA International, indicated their roles include: translating the Agency's goals and objectives into a master plan; compiling information on the' site; making presentations to local . . ;; community groups and the Agency; reviewing engineering and water . . i usage; and looking at design concepts for the road entries and the temporary clubhouse. Eric Larsen, of Palmer Course Design, commented on the ease of the well-organized process, and the quality of the course. He read a letter from Arnold Palmer regarding the project and the cooperation of staff. '.. He.stated he feels staff's sense of urgency and expediency has been remarkable. In response to Board Member Sniff, he stated this golf course is different because it stands alone without housing, and is a true tournament course for all levels of play. It also has the best set up for spectator viewing. In response to Board Member Osborne, he indicated he would like to see permanent power to the pump station, and the CVWD easement along the canal more in play instead of a - .- --- - ~ . - --- -- - - - ------ - - - Redevelopment Agency Minutes 3 July 20, 2004 ,t;' "')';';:¡~"'.ii<¡¡'¡"t'~. ""'-~' ..lm'."'."'T.'~r..,'.",.. ~".~.1t.' ,'. '.r.', ~ '. '" . ';, " ': service road for the canal. He encouraged pursuit of the land across - , the canal from the 1 5th green, and cautioned against cutting corners on maintaining the aesthetics of the desert areas. Roy Stephenson, of. Berryman & Henigar, stated his role as development coordinator has been to prepare. the RFPs for various consultants and contractors, and to help the project stay on schedule and in budget. His job is almost complete and he is confident the project will be completed and ready for operation. .in January. Mark Krebs, of PACE, reviewed his firm's role in designing the lakes and water features for the project. In response to Board Member.. Adolph, he stated they have used, bio-filtration, aeration, wetland planters, recirculation, and irrigation to assure aeration of the water. , ' , . Board Member Sniff commented on the difficulty. of. cleaning the canal water. " . Dan Ruiz and Doug Franklin, of The Keith Companies, indicated their . , role has been to design the infrastructure, sew.er system, and roads, and to prepare the mass grading for the golf. course based on the - Palmer design. In response to Board Member Adolph, Mr. Ruizstated . the Jefferson Street drainage will be taken back on site during Phase 2. In response to Board Member Sniff, Mr. Franklin confirmed the entire 525-acre parcel has been graded. . Jack Gallagher, of The Dahlin Group, stated they are the architectural firm for the temporary clubhouse, maintenance building, pump station and restrooms. They also prepared a feasibility study and design imagery for the golf resort. He indicated the main challenge has been the tight time schedule, and credited staff for k.eeping things on track. In response to Board Member Osborne, he stated the Ahmanson . Ranch House has been designed with the intent to convert it into a multi-purpose conference center in the future. Rob Parker, of Pinnacle Design, reviewed their role in implementing the design concepts for the temporary clubhouse, entry ways, maintenance building, perimeter parkway and landscaping. In .' response to Chairperson Henderson, he confirmed design alternates are included in the bid process, and water-efficiency landscaping will be used in the project. ,.- ! Gary Heinbuch and John Przybyszewski, of Heinbuch Golf, stated their role has been to take the plans from all of the contractors and make Redevelopment Agency Minutes 4 July 20, 2004 sure they stay on schedule. Mr. Heinbuch stated he feels this is the best project they have ever worked on because of the quick decisions being made, and added the project is known as "a city doing things right," because the project is on schedule and in budget. He indicated . the mass grading is 96% complete, and the grass will all be done by October. Mr. Przybyszewski reviewed some before-and-after photos. Stephen Williams and Bruce Nilsson, of McMurray Inc, stated they have assisted In marketing the golf course from the initial groundbreaking to future advertisements. They have been involved with naming the project, merchandising, media kits, development of a logo, brand promise articulation, and developing! a hoteliers kit. Johnny Potts and Andy Vossler, of Landmark Golf Company, stated : they have hired a golf course superintendent, submitted an annual plan, initial recommendations for tee time prices' and policies, attended. ,. branding sessions, and are preparing a golf operations marketing plan to discuss with McMurry. They've also worked on the logo and slgnage, and started a formal interview process to make a recommendation for a general manager/head golf professional. They have prepared an employee handbook and food and beverage analysis, researched merchandise needs for the project, opening and liquor license opportunities, and have spent time looking at the temporary clubhouse facility. Mr. Potts added they have reviewed bids for the golf course equipment and are ready to present. them to staff. Mr. Vossler noted Landmark participated in more than one of the RFP processes before determining they were best. qualified for the management position. Mr. Weiss noted numerous other individuals, including staff, have. , been involved with the project. . , A discussion ensued as to which issues should be discussed and which consultants/team members should be available when this item continues later in the evening. Board Member Perkins stated it's important for everyone to understand when the Agency makes a decision, it is final, and he- ; ., doesn't want anyone trying to argue with them. I . Chairperson Henderson stated she doesn'1 want to get into micro- managing the project. - ----- - ----- - --- Redevelopment Agency Minutes 5 ¡ i. July 20,2004 . , ,":, ""'ij":'\, ,,~,!,!; ':. "'",, ;) ,j.":'," 1"",'1" "i¡¡",i;",..."r,"'.I:.f¡~,. ,',~:~:.' '1",.,.,.,1"¡~" Board Member Osborne agreed, and referenced the need to finalize - . some Issues and move on. Board Member Adolph sta~ed he appreciates the update but feels the . intent of the study session was to resolve certain issues. Chairperson Henderson noted at the last meeting the Agency asked staff to come back with a comprehensive status report on the project. City Manager Genovese asked for clarification as to whether or not the Agency wants to discuss the Avenue 52 tunnel, and Mr. Weiss referenced a list of issues on Page 62 o,f the staff report. Board Member Sniff asked if any of those Issues would be forthcoming in the natural progression of decisions." City Manager Genovese indicated~hey would but noted staff resources and monies are being s.pent on the pro.gression of some of these issues, such as the tunnel. If the Agency. desires to change any of the directions outlined on Page 62, those issues should be dealt with. - Board Member Adolph stated he feels staff has been given direction , on the tunnel and it should not be discussed at this time. Chairperson Henderson noted the Agency has also given direction on the Ahmanson Ranch House but it seems to remain an open issue. She is still in support of using the Ahmanson Ranch House as a temporary club~ouse. . Board Member Sniff suggested focusing on the, Landmark issues that ;. " . surfaced as of July 12th. Council concurred. There was also consensus to request the following consulting firms to be in attendance when the study session ,continues, along with any , . . other consultants staff feels is necessary or that want to attend: Berryman & Henigar (Development Coordiné;)tor) Landmark Golf. Company (Golf Course Management), The Dahlin Group (Building " . Architect), Economic Research Associates (Golf Market Analysis), and GMA International (Land Use Planning). - , The Redevelopment Agency recessed to 7:00 p.m. Redevelopment Agency Minutes 6 July 20, 2004 7:00 P.M. STUDY SESSION. . . . . . . . . . . continued 1. DISCUSSION OF SilverRock RESORT PROJECT STATUS. (continued) Mr. Weiss gave a brief overview on the discussions about potential use of the Ahmanson Ranch House, and noted when the Agency made the decision to utilize it as a temporary clubhouse, staff proceeded to move forward in that direction. When Landmark was hired as the golf course manager in January, they suggested using modulars for the temporary clubhouse but agreed to help implement the Agency's decision. The issue resurfaced during discussions of the business plan, and when staff requested a cost benefit analysis for the modular alternative, landmark indicated they would do it for a fee, as well as supervising installation of modular facilities for a fee. He 'pointed out award of a contract for the temporary clubhouse will be , on the next agenda. If the Agency decides to have a full-cost benefit analysis prepared, it could take some time, and the Agency may want : to retain a firm without a vested interest in implementing the choice. He ,noted funds have already been invested in the building, and if the building is not used as a temporary clubhouse, it will still need to be secured and landscaped. Additional considerations related to using modulars, include the parking lot, architectural façades, and roofing. Modulars are a viable option but will take time to design and the golf course is scheduled to open in January. He referenced The Dahlin Group being hired SIX months ago to prepare an analysis and architectural design for the temporary clubhouse, and noted the project can go down that road again if the Agency wants. He stated . .. an alternative might be to make this part of Landmark's contract if deemed appropriate by legal counsel. , In response to Chairperson Henderson, Mr. Weiss confirmed the Dahlin' " Group contract included architectural design of either the Ahmanson Ranch House or modulars, whichever the Agency decided to use. He deferred to legal counsel as to whether or not the Agency would still be bound by that agreement, and noted the firm may request additional compensation if asked to change directions at this point. He agrees the Ahmanson Ranch House location is not perfect but noted it will be used for something else once a permanent clubhouse is built. He confirmed some accommodations were made for the Ahmanson Ranch House in the golf course design with respect to moving golfers to the driving range, and some consideration continues to be given as to the best way to handle the 8th hole. He stated the ----- -- -- ------- --- ~-- - --- .-- - - ------------ .. Redevelopment Agency Minutes \,,'";~ltt;~\.øí'~f-i, l July 20, 2004 entry road was designed with the idea of the Ahmanson Ranch House --- being used as the temporary clubhouse and converted to another use in the future. He noted money has not been budgeted for doing both the Ahmanson Ranch House and modulars, so a funding source will need to' be looked at in terms of taxable money versus non-taxable monies. / Board Member Sniff stated he doesn't want to change anything already underway unless there is some significant overriding reason for it. Board Member Adolph stated he would like to have been aware of Landmark's list of pros and cons earlier, and would like to know how the good ideas can be incorporated into the Ahmanson Ranch House. Mr. Weiss noted Landmark has been working with the architect on : these issues, and significant progress has been made along those lines. He noted the full kitchen idea was addressed after a modular. vendor contacted staff and indicated ~n 8 by 20-foot modular' could be architecturally treated to be used as an adjunct to the Ahmanson Ranch House and provide a full liquor license. . r-- Board, Member Perkins stated he understood the' Agency decided to pursue the Ahmanson Ranch House because it was there and had historical value. He also understood staff was given direction to explore the use of modulars for a full kitchen in order to obtain a full liquor license. Board Member Sniff spoke in support of adding a modular to the . Ahmanson Ranch House if it will provide an enhanced first impression experience. \. : Board Member Osborne stated he would like to hear Landmark's concerns about using the Ahmanson Ranch House and any other items on the list that might create a major concern with the other consultants. He believes the current process of going through staff has worked well and will continue to do so. Chairperson Henderson stated she feels the project would have been easier without the Ahmanson Ranch House. She noted the Agency wanted to protect the historical ranch but from what she has heard., - there is no historical significance in the building. Redevelopment Agency Minutes 8 July 20, 2004 Board Member Perkins stated he believes the Agency's impression of the historical value is what counts. Chairperson Henderson noted it would cost money to make the Ahmanson Ranch House presentable as any building on the golf course. She indicated she was aware of Landmark's concerns since earlier this year and understands them but believes some of it comes down to a desire to walk into the best there is at the very beginning and not have some challenges. Mr. Vossler stated they are not proposing that the City not rehabilitate the Ahmanson Ranch House. He explained the temporary clubhouse issue resurfaced during the budget process because of the continuing push for budget cuts and discussions about how to generate more revenue. They have looked at ways to increase revenues because they believe an annual average golf rate of $85 is "pushing the envelope." He believes the drawbacks are no retail sales opportunity, limited food and beverage, no liquor license, and no pre-booking to group coordinators because they won't risk their jobs coming to an incomplete facility. He feels there are ways to make the things they need to deal with work, and budget is part of it. He believes this is a first-class project except for the temporary clubhouse because of its location and surroundings, and that any experienced golf operator would come to the same conclusion after viewing the site. He commented on the unpleasant experience of golfers having to drive 700 yards to the first tee or driving range during 38-degree weather. Mr. Vossler went on to say he feels Landmark's approach to the project is somewhat different from the other consultants because landmark has a lot invested in La Quinta and will still be here after the project is built. He believes when people comment about things that , , should have been done differently, they will forget Palmer, Heinbuch, and Weitz, and say Landmark did it, which is one of the reasons they have not easily walked away from this issue. He stated they will do the best they can to meet the budget they submitted but noted it's going to be uphill with the Ahmanson Ranch House. He invited the other consultants to give their opinion after listening to staff and landmark's comments because he believes they will agree the Ahmanson Ranch House is not where a temporary facility will best serve the project. In regard to their offer to do something for a fee, he . noted. Landmark does not get paid for what they are doing because that is the deal they 111ade. However, he feels they are doing a lot more than what they agreed to do. He also noted their proposal for a fee was an hourly rate, not-to-exceed price, and the City could have , -- -. Redevelopment Agency Minutes ~.....,.",."c.,""""",..9".!~',:."","':"",',"~.,','"'..';', ~~u July 20,2004 .-'" t.l,&fd! ~:!'td<,l!" ..'~', ,,¡ ¡Ift"~,, . .¡H~, quit using them at any time. He distributed material with rough cost r-- estimates for installing a modular temporary clubhouse, and indicated, they believe about $340,000 in parking lot and landscaping costs . would be retrievable. Chairperson Henderson noted the majority of the Agency has indicated this evening they want to stay with the Ahmanson Ranch. Mr. Vossler asked the Agency to take a look at what they have prepared because he feels the operator will end up taking the brunt of this. He also distributed site plans and photos of where they believe the temporary clubhouse would better serve the golfers. He feè1s:::" , inconveniencing the promotional side of the golf industry and the golfers will cause the City to suffer. He stated he will do his part to, ," .' back up whatever decision the Agency makes on the clubhouse, and when budgets are not being met and variances are being written, he will not say "I told you so." They want the project to be the be~t :it ,; can be but don't know how to get there in the Ahmanson Ranch House. He doesn't feel it will achieve the numbers that an Arnold Palmer golf course design deserves, nor that it will position SilverRock\ ~>:' ~ .. . in the strongest position to compete with Desert. Willow. They will - help but it won't be easy from a facility that is not built to please, attract, and serve the golfers. . Board Member Adolph referenced his experience playing on new golf courses with temporary facilities, and stated he has never held the use of temporary facilities against the golf course. He expects most of the golfers the first two years will be local people, and that it's the hotels and casitas that will make the golf course financially viable. He agrees the temporary clubhouse will be inconvenient but ,believes most people, ii' ,"j: ' '.' will understand that it's temporary. He stated he feels too much time and money has elapsed to make major changes, at this time unless I,! . they can show a way to balance the sheet if what has been done already is thrown away. He also commented on ,the need to get the ;, golf course open no later than February. , Mr. Vossler stated he believes the numbers presented tonight will. show that it. can work, especially when increased revenues are " '.' . . factored in. He also believes the timing for the temporary facility they envision can be made. He believes golf in the Desert has become ':. ',',,: . more competitive, and he expects the golf course to get a lot of - people here one time and very little group business, which is where the big money is. He feels maximum food and beverage, merchandise sales, and group play are needed to overcome the average golf rate, Redevelopment Agency Minutes 10 July 20, 2004' and voiced concern about golfers purchasing merchandise in a pro shöp that has insufficient room to display available sizes. Board Member Perkins questioned what the arguing is about since the Agency has decided to go with the Ahmanson Ranch House. Chairperson Henderson noted Council Member Osborne requested Landmark's input. Mr. Genovese referenced a statement by Mr. Vossler regarding Landmark's investment in the project and how they will be here after the other consultants are gone. He noted there are a number of topnotch professionals with great reputations working on this project, and Mr. Arnold Palmer lives just around the corner from it. He added he doubts SilverRock means anything more to Landmark than it does to the rest of the professionals working on this project. . , - Board Member Sniff stated he agrees somewhat with landmark's comments but feels the Agency has to stay with its decision and add amenities to the building that will maximize the initial first impression. Mr. Gallagher noted his feasibility study for the temporary clubhouse . was limited in nature but feels it was clear the Agency wanted to know if there were any deal breakers against using the Ahmanson Ranch House as a temporary golf facility. He noted some of the things mentioned today are included in a list of assumptions in the feasibility study. Chairperson Henderson noted the feasibility study is clear about there being some real challenges in staying with the Ahmanson Ranch House. rJlr. Gallagher suggested renderings of the permanent clubhouse be used in advertisements to let people know that the Ahmanson Ranch House is only temporary. Board Member Sniff suggested the possibility of using two modulars with the Ahmanson Ranch House - one for the kitchen and bar area and the other for a pr.o shop. Mr. Weiss referenced the possibility of using a modular for the office space required by the operator. He noted the operator is already moving modular facilities on site to work as a temporary construction trailer. - --- --- m_~- _. . ~ Redevelopment Agency Minutes '. ,.1,1, '. > July 20, 2004 . )'i~'hX::i'ìi:'~r'; Board Member Adolph commented on the importance of making sure. - : whatever is done doesn't look like a hodge-podge of buildings. , Mr. Weiss agreed, and noted a modular kitchen would probably be located between the Ahmanson Ranch House, rocks, and restroom5. He suggested the possibility of locating a modular for office space in the parking lot or somewhere else on the property because it would not have to be attached to the Ahmanson Ranch House. Board Member Adolph suggested the architect take a look at it in order to accommodate what is needed without destroying what is already there. In response to Board Member Adolph, Mr. Weiss confirmed the current pool area can be converted to a putting green or be used for a patio area. . He referenced a sloping grass area between the 8th tee that may have potential uses. In response to Chairperson Henderson, Mr. Weiss stated if the Agency is satisfied with the process used to date, most of the other things on the list have been resolved. - Robert Cox stated he feels trying to rehab the Ahmanson Ranch House is chasing bad money with good, that the report indicates it's not a feasible project. Mr. Potts stated he raised some of the issues listed on Page 62 because he felt he had a right to voice his concerns. He also indicated there were other issues not on the list that have been productive to the project. ! Board Member Adolph commented on the importance of working together as a team and having' input from the consultants. Board Member Sniff referenced the need to devise a way for the . consultants' ideas or suggestions to be transmitted to the Agency in a timely manner. . " In response to Chairperson Henderson, Mr. Genovese stated he would be greatly concerned if staff is supposed to figure out which particular consultant, at which particular time, says what particula~ thing, that - might be of interest to bring forward to the Agency. He commented on the difficulty of getting anything done if city government was operated that way. He advised he relies on the department director's 1- Redevelopment Agency Minutes 12 July 20, 2004 expertise in general and their knowledge of the practices of the consultants that have been hired. He noted the same thing is done with bridge designs, hiring law enforcement officers, and building fire stations. He stated he would be very concerned about staff being in the difficult position of deciphering which is a major issue and which is a minor issue, and which should come to the Agency Board. Board Member Sniff noted the consultants always have the opportunity to speak under public comment. The Redevelopment Agency recessed to the City Council meeting. The Redevelopment Agency reconvened. PUBLIC COMMENT - None , . CONFIRMATION OF AGENDA - Confirmed APPROVAL OF MINUTES MOTION - It was moved by Board Members Sniff/Adolph to approve the Redevelopment Agency Minutes of July 6, 2004 as submitted. Motion carried unanimously. CONSENT CALENDAR 1. APPROVAL OF DEMAND REGISTER DATED JULY 20, 2004. \ ." 2. TRANSMITTAL OF TREASURER'S REPORT DATED MAY 31, 2004. 3. TRANSMITTAL OF REVENUE & EXPENDITURES REPORT DATED MAY 31, 2004, AND INVESTMENT SUMMARY REPORT FOR THE QUARTER ENDING JUNE 30,2004. . MOTIOr\J - It vvas moved by Board Members Sniff/Adolph to approve the Consent Calendar as recommended. Motion carried unanimously. - -~ --- ~ ~- - -- .. - - -.«--.. . Redevelopment Agency Minutes 13 July 20, 2004 BUSINESS SESSION ~ 1. CONSIDERATION OF: 1) A RESOLUTION APPROVING THE FISCAL . YEAR 2004/2005 LA QUINT A REDEVELOPMENT AGENCY BUDGET; . AND 2) A RESOLUTION DETERMINING THE PLANNING AND ADMINISTRATION EXPENSES TO BE FUNDED IN FISCAL YEAR 2004/2005. There were no changes to the staff report as submitted and on file in the City Clerk's Office. RESOLUTION NO. RA 2004-012 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF LA QUINT A, CALIFORNIA, APPROVING A BUDGET FOR FISCAL YEAR 2004/2005. . It was moved by Board Members Sniff/Adolph to adopt Resolution No. . RA .2004-01 2 as submitted. Motion carried unanimously. RESOLUTION NO. RA 2004-013 ~ A RESOLUTION OF THE REDEVELOPMENT AGENCY, OF THE CITY OF , LA QUINT A, CALIFORNIA, DETERMINING THAT THE PLANNING AND ADMINISTRATION EXPENSES TO BE FUNDED IN FISCAL YEAR 2004/2005 BY THE LOW AND MODERATE INCOME HOUSING FUND ARE NECESSARY FOR THE PRODUCTION, IMPROVEMENT AND/OR . PRESERVATION OF AFFORDABLE HOUSING FOR LOW AND MODERATE INCOME HOUSEHOLDS. It was moved by Board Members Adolph/Sniff to adopt Resolution No. RA 2004-01 3 as submitted. Motion carried unanimously. '. CHAIR AND BOARD MEMBERS' ITEMS - None PUBLIC HEARINGS - None ~ . Redevelopment Agency Minutes 14 July 20, 2004 ADJOURNMENT There being no further business, it was moved by Board Members Sniff/Adolph to adjourn. Motion carried unanimously. Respectfully submitted, JUNE S. GREEK, Secretary City of La Quinta, California - -~ - ----- -