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2005 02 01 RDA Minutes LA QUINTA REDEVELOPMENT AGENCY MINUTES FEBRUARY 1, 2005 A regular meeting of the La Quinta Redevelopment Agency was called to order by Chairman Osborne. PRESENT: Board Members Adolph, Henderson, Perkins, Sniff, Chairman Osborne ABSENT: None PUBLIC COMMENT - None CLOSED SESSION 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 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 7:00 p.m. 7:00 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). PUBLIC COMMENT - None CONFIRMATION OF AGENDA - Confirmed Redevelopment Agency Minutes 2 February 1, 2005 APPROVAL OF MINUTES MOTION - It was moved by Board Members Sniff/Henderson to approve the Redevelopment Agency Minutes of January 18, 2005 as submitted. Motion carried unanimously. CONSENT CALENDAR 1. APPROVAL OF DEMAND REGISTER DATED FEBRUARY 1, 2005. 2. APPROVAL OF CONTRACT CHANGE ORDER NO.1 AND CHANGE ORDER NO.2 FOR PROJECT NO. 2002-07F, SilverRock RESORT ON- AND OFF-SITE STREET, WATER, AND SEWER IMPROVEMENTS. MOTION - It was moved by Board Members Sniff/Adolph to approve the·,Consent Calendar as recommended. Motion carried unanirllously. BUSINESS SESSION - None STUDY SESSION 1 . DISCUSSION OF ECONOMIC ANALYSIS REPORT REGARDING SilverRock RESORT DEVELOPMENT OPTIONS. Assistant Executive Director Weiss presented the staff report. . Gene Krekorian, of Economic Research Associates, gave an overview "of the Economic ,Analysis Report for a second golf course, permanent clubhouse, and practice center/golf academy. He indicated the practice center component is a cutting-edge proposal submitted by Rob Mottram. Board Member Adolph stated he understood the facility would be constructed by Mr. Mottram, not the City. Mr. Krekorian stated Mr. Mottram has suggested the private sector would play a significant role in providing capital for some of the facilities but it may not include improvements of the Tee Line, addition of three practice \holes, parking, etc. He indicated half of the $3-4 million amount would likely come from the private sector. Redevelopment Agency Minutes ~ February 1, 2005 Board Member Adolph commented on the benefit of having an indoor training/practice facility during the summer and evenings, and expressed interest in it as long as it's built by the private sector. Mr. Krekorian stated the facility would be one of the top three or four of its kind in the country. Board Member Henderson noted the Agency is looking at a financial analysis, not a specific proposal. Board Member Adolph commented on the importance of moving forward with the SilverRock project, and inquired about a reference in the staff report regarding an executive course. Mr. Weiss confirmed there has been some discussion about additional practice holes adjacent to the driving range that would be designed to accommodate parking during the Bob Hope Chrysler Classic. Board Member Henderson stated she agrees the project needs to continue moving forward but noted the negotiations will take some time to complete. She feels it's important to gain experience from the first golf course before starting the second course and the permanent clubhouse. She feels the practice center could happen any time, depending on the level of participation. Board Member Perkins stated he agrees with moving forward but feels that will depend somewhat on getting a hotel on board. Mr. Krekorian stated he feels the City has made impressive progress on an extraordinary product in a short period of time. In response to Board Member Sniff, Mr. Krekorian stated, he is reluctant to suggest moving forward with the second course and permanent clubhouse until a hotel agreement is secured. Board Member Adolph pointed out the project has other components, such as the boutique hotel, commercial area, and casitas. Mr. Krekorian agreed, and noted the project is in position to consider proposals on practice facilities. Board Member Sniff stated he feels a hotel developer might find it more valuable and impressive if other assets on the project are moving forward. He indicated he believes two hotels are needed, in addition Redevelopment Agency Minutes 4 February 1, 2005 to a boutique hotel, to have ultimate success in the project. He senses some delay and negativity in the report, and agrees there are other components of the project that can move forward. He feels a larger base will draw larger hotels. He commented on how cost increases due to delays and saturation of the market could affect the success of the project, and stated he isn't sure a conservative approach is appropriate. He supports encouraging proposals for a practice facility, and stated he doesn't feel it makes sense for the project to become semi-dormant. Chairman Osborne noted some funding for the permanent clubhouse exists but it will be important to work closely with the developer on its design. He stated he feels the analysis provides some guidelines on how to move forward in the future. Board Member Henderson stated she feels the three issues Mr. Krekorian addressed in the analysis is what was requested, and she anticipates staff will continue moving forward with the hotel, casitas, boutique hotel, and commercial area. She feels the Agency will be more comfortable doing the second golf course after some security and stability is established with the first one, and after getting some input from potential developers. She noted the hotel site might need some modification and moving forward with other facilities could affect the ability to do that. She stated she doesn't have a problem doing an RFP for a practice facility as long as the Agency has some idea of what its commitment will be. Board Member Adolph commented on the need for compatibility in the architectural design of the hotel, boutique hotel, commercial, and clubhouse, and asked if a design concept would be put together by the developer. Mr. Weiss stated the developer would like to' explore some preliminary discussions, such as consideration to locate the permanent clubhouse close to the hotel for economy in construction costs and access. Staff has left the door open as to entertaining any suggestions the perspective developer might have. He agreed some decisions on the project could minimize future flexibility, and referenced potential hotel developers inquiring about project constraints, including the contract with the golf course operator. He noted they may want to have some influence on the hiring of the teaching professional. He suggested getting input from the perspective hotel developer before moving forward with any of the alternatives. -------.-....--- -_.~- Redevelopment Agency Minutes February 1, 2005 \ Board Member Adolph agreed, and asked if the hotels expect to provide input on the design criteria. Mr. Weiss stated they have indicated an interest in the architectural style and ambiance of the entire project, and are impressed with what has been done. Board Member Henderson noted the Agency has adopted suggestions for architectural style, color, and various materials to be used. Mr. Weiss stated the people staff has talked to indicated they would like to be a part of making sure quality is maintained and that there is some type of consistency. Board Member Adolph stated he understands the situation but doesn't want it to be a stumbling block for moving forward. Mr. Weiss noted there will be certain requirements for both parties if the City enters an exclusive negotiation agreement with a hotel developer. The hotel developer may have an interest in the City defining a plan for development and want to know how the components will be financed and what commitments the City is willing to make. He anticipates some intense discussions over the next 150 days to put together a program and development in order to negotiate how the project is going to move forward with any developer. In response to Board Member Adolph, Mr. Weiss confirmed Mr. Mottram has indicated a need to know whether or not the City is going to allow him the opportunity to develop his plan on this project. Board Member Adolph suggested giving it serious consideration if the Agency is interested in working with Mr.Mottram in the near future. Board Member Henderson referenced the need to take it out to bid if there are other qualified firms. CHAIR AND BOARD MEMBERS' ITEMS - None PUBLIC HEARINGS - None Redevelopment Agency Minutes 6 ADJOURNMENT February 1, 2005 There being no further business, it was moved by Board Members Sniff/Henderson to adjourn. Motion carried unanimously. Respectfully submitted, JUNE S. GREEK, Secretary ~ City of La Quinta, California