2005-05-31 Letter from Genovese to Genesis Hotel Dev.70
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P.O. Box 1504
LA QUINTA, CALIFORNIA 92247-1504
kit 78-495 CALLE TAMPICO
LA QUINTA, CALIFORNIA 92253
May 31, 2005
Francis A. Wong - Chairman/CEO
Genesis Hotel Development LLC
76890 Sandpiper Drive
Indian Wells, CA 92210
RE: DDA and DA Amendments — Initial Deposit Agreement
Dear Mr. Wong:
(760) 7 7 7 - 7 0 0 0
FAX (760) 777-7101
1
i
CP Development La Quinta, LLC ("CP Development") has requested that the City of
La Quinta ("City") and the La Quinta Redevelopment Agency ("Agency") consider
entering negotiations to make certain amendments to the existing Disposition and
Development Agreement ("DDA") and the Development Agreement ("DA") with CP
Development ("Amendments").
The City and Agency will commence to take the steps necessary, at CP
Development's sole expense, not including in-house City/Agency staff time, so that
the City and Agency will be able to consider the Amendments and determine
whether or not they wish to approve either or both of them. CP Development has
indicated that it is prepared to reimburse the City and Agency for all costs
associated with the City's and the Agency's consideration of the Amendments,
except for in-house staff time. The costs would include Rutan & Tucker's time,
RSG's time, and any other third -party cost items. For example, the expenses
relating to the noticing of any public hearings would be borne by CP Development.
This letter serves as an "Initial Deposit Agreement" by and between CP
Development, the City and Agency.
To assist the City and Agency in undertaking their consideration of whether or not
to approve the Amendments, CP Development agrees to provide the City and
Agency with an initial deposit in the amount of $25,000 ("Initial Deposit"). The
Initial Deposit shall be deposited with the City, to the attention of the Finance
Director, on or before the Effective Date of this Initial Deposit Agreement. The
Effective Date shall be the date that CP Development returns a signed copy of its
acceptance of the Initial Deposit Agreement to the Agency.
The Initial Deposit shall be used to reimburse the City and Agency for all costs
incurred by the City and/or Agency in the negotiation, revision, consideration and
processing of the Amendments. CP Development shall be responsible for
replenishing the deposit to the $25,000 level within ten (10) days of the City or
Agency's request for replenishment. The costs which will be reimbursed from the
account are all of the costs incurred by the City or Agency relating to the
Amendments except for in-house staff time.
It is anticipated that the Amendments will be presented to the City and Agency for
consideration and potential action in the future. CP Development, the City and
Agency understand that the City and Agency is each reserving the right to exercise
discretion as to all matters over which the City and Agency are, by law, entitled or
required to exercise discretion. By executing this Initial Deposit Agreement, the
City and Agency are not committing or agreeing to undertake any activity requiring
the subsequent discretion of the City or Agency, or any department of the City or
Agency. City and Agency execution of this Initial Deposit Agreement is merely an
agreement to allow the necessary work to be completed, at CP Development's
expense, to bring the Amendments forward for City and Agency consideration.
Nothing in this Initial Deposit Agreement shall be deemed to constitute a
commitment by the City or Agency to approve the Amendments, or a prejudgment
of the matters required to be considered as part of the decision whether or not to
approve the Amendments.
Please document CP Development's concurrence with these terms and limitations
by signing below and returning the originally executed letter to me, along with the
Initial Deposit. Once we have received the executed letter and Initial Deposit, we
will instruct Rutan & Tucker and RSG to review the items you sent to us last week.
Sincerely,
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Thomas P. Genovese,
City Manager, City of La Quinta
Executive Director, La Quinta Redevelopment Agency
APPROVED AS TO FORM BY:
AI iso LeMoine-B vleputy Attorney
City of La Quinta
La Quinta Redevelopment Agency
ACCEPTANCE OF INITIAL DEPOSIT AGREEMENT:
CP DEV PMEN UIN LC
By:
Date: (v - ,lam • OS
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