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1992 06 04 CC MinutesN LA QUINTA CITY COUNCIL MINUTES JUNE 4, 1992 Adjourned meeting of the La Quinta City Council was called to order at 7:00 P.M. by Mayor Pena. PRESENT: Council Members Bohnenberger, Sniff, Mayor Pena ABSENT: Council Members Franklin, Rushworth MOTION It was moved by Council Members Sniff/Bohnenberger that Council Members Franklin and Rushworth be excused. Motion carried unanimously. BUSINESS SESSION 1. PRESENTATION BY THE TUCKER COMPANIES REGARDING PROPOSED MALL ON THE SOUTH SIDE OF HIGHWAY 111 KNOWN AS LA QUINTA CANYON CENTER. Mayor Pena introduced Mr. Ken Tucker, president of The Tucker Companies to present an overview of the proposed mall on the south side of Highway ill known as La Quinta Canyon Center. Mr. Ken Tucker, advised that his Company whose primary business is shopping centers, is based in Northbrook, Illinois. They plan to develop, own and manage the mall being proposed on about 160 acres located on the south side of Highway 111 between Adams and Dune Palms. They currently have the property under option. The first thing he wished to address was the matter of the Indio Fashion Mall. He advised that he spent six months trying to put a deal together there and was unable to do so. His Company has had many calls from tenants asking him to find them a new home because of the antiquated facilities. At the time he began development of this proposal, he went to the Indio officials to let them know what he was doing. This proposed mall consists of five anchor tenants and about 105 stores on two levels. Four of the proposed anchors are Sears, Gottchalks, Harris' and Penneys. Sears currently has about 50,000 sq. ft. in Indio and will have between 110,000 and 150,000 sq. ft. in this mall and Gottchalks is needing 110,000 sq. ft. There will be one other anchor, which is yet unnamed. The complex will also include a 35,000 sq. ft. movie theater and a food court with ten tenants plus 15,000 sq. ft. for other restaurants. There will also be a family entertainment center. BIB] 01-29-96-U01 04:44:27PM-U01 CCMIN-U02 06-U02 04-U02 1992-U02 NCity Council Minutes 2 June 4, 1992 The proposed architecture is extremely upbeat using a lot of landscaping and water treatments. They are proposing a ground-breaking in 1993 with an opening 14 months later. Phase II of the development proposes a 400,000 sq. ft. power center. There are no tenants at the present time, but some examples of the types of tenants they will be looking for are: Target, T. J. Max, Marshalls and Toys R Us. The power center will share the wing road with the mall. He then reviewed the off-site improvements being proposed and advised that the final EIR is currently on his desk for review. This proposed mall will result in $2 million in sales tax to the City annually and 1,000 jobs in addition to 600-800 construction jobs. What they're going to be needing from the City is zoning, plan approval, a Disposition and Development Agreement or an Owner/participation Agreement, public bond assistance, off- site improvements, issuance of building permits and occupancy permits. Mr. Tucker then fielded questions from the audience. Are the satellites committed? The theater is committed. At the ICSC Conference in LaS Vegas, about 40 stores indicated an interest in lease space. The Limited indicated a desire to lease 25,000 sq. ft. Have you ever completed a project of this magnitude west of the Rockies? Yes he has two shopping centers west of the Rockies and five in the Chicago area. What kind of restaurants are you looking at? specialty and better dining. Carlos O'Murphys and Hamburger Hamlet both have indicated an interest. Why are you not looking at stores like Neiman Marcus? Because it would only divide the market with Palm Desert El Paseo and the Town Center. Their market studies indicate that with the housing prices, median income, etc. of this area, that the tenant mix they are proposing, best Suits the market. BIB] 01-29-96-U01 04:44:27PM-U01 CCMIN-U02 06-U02 04-U02 1992-U02 NCity Council Minutes 3 June 4, 1992 He noted that 86% of Sears sales comes from the Palm Springs area. Mr. Tucker then reviewed the history of shopping center in the country and discussed the philosophy and dynamics of having a shopping center in the community. He advised that 2% of the RTC portfolio consist of shopping centers, which indicates their stability. peter Murray, President of the La Quinta Chamber of Commerce advised that the Chamber supports the proposed project, noting that it could act as a catalyst for other development in La Quinta. Is the proposed parking adequate? They are proposing five spaces per 1,000 sq. ft. of leasable space. The farthest parking space from the center is 300?. Is the family entertainment center about the size of the skating rink in the Town Center? No it will be the equivalent of an eight-screen theater complex. What effect will this mall have on Indio Fashion Mall? The Jndio Fashion Mall site was too small the site would have had to be expanded to the west, thereby necessitating the abandonment of Rubidoux and acquisition of the apartments, which the owner is unwilling to sell. There are 16 families that would have to be relocated if it was condemned. He added that the Indio Fashion Mall is currently tied up in litigation. What is the maximum height of the center? Between 48 52'. Mr. Tucker then presented colored renderings. Will the topography affect the building height? The entire 160 acres will be master-graded. BIB] 01-29-96-U01 04:44:27PM-U01 CCMIN-U02 06-U02 04-U02 1992-U02 NCity CoUflCjl Minutes 4 June 4, 1992 The presentation being concluded and there being no further questions, the meeting was adjourned Re?pectful1y submitted, SAUNDRAL. JUHOLA, City Clerk City of La Quinta, California BIB] 01-29-96-U01 04:44:27PM-U01 CCMIN-U02 06-U02 04-U02 1992-U02