CFD2004-3 Timeshare TOT December2003x

8/13/2019 CFD2004-3 Timeshare TOT December2003x

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City of IndioCity Council MinutesJuly 30 2003 continued

Mayor Wilson declared the public hearing opened at 7:34 p.m. and requestedcomments from the public for or against this proposal. There being no comments fromthe public, Mayor Wilson declared the hearing closed.

After discussion it was moved by Councilmember Godfrey, seconded by CouncilmemberGilbert and unanimously carried to ADOPT Resolution No. 6670, by title only, to read asfollows:

RESOLUTION OF THE CITY COUNCIL, OF THE CITY OF INDIO, CALIFORNIA,APPROVING ISSUANCE OF MULTIFAMILY SENIOR HOUSING REVENUE BONDSBY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY

5. PUBLIC HEARING: REQUEST BY DEL WEBB CA CORPORATION, AMENDMENTTO DEVELOPMENT AGREEMENT NO. 95-1-7

Mayor Wilson declared the public hearing opened at 7:36 p.m. and requestedcomments from the public regarding this proposal.

J. Luis Lopez, Principal Planner, reported Staff is recommending this matter becontinued to the September 17, 2003 City Council meeting.

After discussion, it was moved by Mayor Pro-Tem Bethel, seconded by CouncilmemerGilbert and unanimously carried to CONTINUE the public hearing to September 17,2003, City Council meeting.

6. PUBLIC HEARING: THE HILLS GOLF CLUB, LLC AMENDMENT TO DEVELOPMENTAGREEMENT NO. 96-8-10, SPECIFIC PLAN NO. 96-8-7, PROJECT MASTER PLANNO. 96-8-10 AND ENTERING INTO A TRANSIENT OCCUPANCY TAX AGREEMENT

Mayor Wilson requested to know if this project is a vacation club resort and not a timeshare? Edward Kotkin replied that is correct. Mr. Kotkin stated the EnvironmentalAssessment 96-8-370, Project Master Plan No. 96-8-10 and Development AgreementNo. 96-8-10 still remain valid as the basis for the City Council action on this matter. Mr.Lopez replied that is correct.

Councilmember Gilbert commented it looks like a great project and asked if the 455

rooms are permissive? Mr. Kotkin replied this would be confirming the language of theentitlements previously granted rather than a straight hotel. The impacts are lesssevere than that of a hotel as the owners will own a membership in a club. They will beobligated to pay Transient Occupan cy Tax TOT ) until the end of time.

Councilmemb er Gilbert requested to know if this project will be s ubject to Quimby fees?Mr. Kotkin replied no it is not as this matter is fixed under the original developmentagreement.


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Councilmember Fesmire requested to know what amount this project is subsidized for?Mr. Kotkin replied it is not subsidized at all. Jerry Carter, Finance Director, stated theCity would be receiving TOT from day one. The TOT this will bring in is tremendousover a twenty year period. Tom Ramirez, City Manager, commented it is all covered by

the revenues of $15 million over the project in ten years. The money we are putting upfront in sharing we will clearly exceed by at least six times.

Councilmember Fesmire requested to know what the advantage is to the applicant? Mr.Ramirez replied they will make some infrastructure improvements. They will berecovering some of their costs up front. He stated a financial consultant was hired tomake all of the projections. Based on his report he recommends moving forward withthe agreement. he requested to know the worse case scenario. Mr. Ramirezreplied the City would have infrastructure in place and the TOT would have beencollected for the first two years. They will pay close to $2 million up front in plan checkfees alone. We have collected this up front on paper and have protected the City well.

Bill Swank, Senior, hotel developer for over 45 years, commented on their experience indeveloping and building hotels. He introduced their A Team which included ScottBevins of Trendwest, Donald Rich, Project Manager, Bill Swank Jr. Project Manager,and John Small, Site Development Manager/Engineer.

Mr. Swank stated a timeshare club is not required to pay transient occupancy tax. Heindicated they came in and volunteered to do so. This project will be built by WesternPacific Resorts and financed by Trendwest. At the end of the construction it will betransferred to Worldmark Resort free and clear of debt. This project will startconstruction as soon as they can pull a grading permit. He stated based on 75%occupancy this project will generate the revenues that Mr. Ramirez indicated but it willalso go far beyond that. The project will return somewhere between 19-20 milliondollars over the next twenty years in revenues to the city. The project will not fail, it isfree and clear. It is a very high quality project and it is unique to this valley. The designincludes the lakes and the swimming pools.

Donald Rich, Project Manager, commented they have an aggressive schedule. Itincludes 19 buildings and 455 units. They expect to start grading in September andthey hope to complete the infrastructure of the streets by January, 2004. The initialplanning includes building all the streets and all the perimeter landscaping and the

proper dust control measures. The streets will have the first cross of asphalt in. Thelandscaping will be growing for one year before occupying any of the buildings. By2006 all units will be completed.

Scott Bevins, Trendwest, Project Manager, stated they are happy to be a part of thiscommunity. They have been received by the City of Indio with open arms and hethanked the C ity Council and Staff.

The number was $0.00


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Mayor Wilson declared the public hearing opened at 8:07 p.m. and requestedcomments from the public for or against this proposal. There being no commentsMayor Wilson closed the public hearing.

Mr. Kotkin commented the initial environmental reviews for Landmark Golf Club aresufficient to cover this project.

After discussion, it was moved by Councilmember Godfrey, seconded byCouncilmember Fesmire and unanimously carried to APPROVE an amendment toDevelopment Agreement No. 96-8-10 with The Hills Golf Club, LLC and ADOPTOrdinance No. 1347, by title only, as first reading, to read as follows:

ORDINANCE OF THE CITY COUNCIL, OF THE CITY OF INDIO, CALIFORNIA,APPROVING THE FIRST AMENDMENT TO DEVELOPMENT AGREEMENT NO. 96-

8-10 TO ALLOW A 455 UNIT VACATION CLUB LOCATION ON 27.3 ACRES OFVACANT LAND LOCATED ON THE EAST SIDE OF GOLF CENTER PARKWAY,NORTH OF LANDMARK GOLF PARKWAY; WESTERN PACIFIC RESORTDEVELOPMENT AND TRENDWEST RESORTS, INC.

It was moved by Mayor Wilson, seconded by Mayor Pro-Tern Bethel and unanimouslycarried to APPROVE an amendment to Specific Plan No. 96-8-7, RPD4, and ADOPTOrdinance No. 1348, by title only, as first reading, to read as follows:

ORDINANCE OF THE CITY COUNCIL, OF THE CITY OF INDIO, CALIFORNIA,APPROVING A SPECIFIC PLAN AMENDEMENT (SP 96-8-7) TO ALLOW A 455 UNIT

VACATION CLUB LOCATION FOR PROPERTY LOCATED ON EAST SIDE OFGOLF CENTER PARKWAY, NORTH OF LANDMARK GOLF PARKWAY; WESTERNPACIFIC RESORT DEVELOPMENT AND TRENDWEST RESORTS, INC.

It was moved by Mayor Pro-Tern Bethel, seconded by Councilmember Gilbert andunanimously carried to PPROVE an amendment to Project Master Plan No. 96-8-10and ADOPT Ordinance No. 1349, by title only, as first reading, to read as follows:

ORDINANCE OF THE CITY COUNCIL, OF THE CITY OF INDIO, CALIFORNIA,APPROVING AN AMENDMENT TO PROJECT MASTER PLAN (PMP 96-8-10) TOALLOW A 455 UNIT VACATION r: ,1.1IB LOCATION ON 27.3 ACRES OF VACANT

LAND LOCATED ON THE EAST SIDE OF GOLF CENTER PARKWAY, NORTH OFLANDMARK GOLF PARKWAY; WESTERN PACIFIC RESORT DEVELOPMENT ANDTRENDWEST RESORTS, INC.

It was moved b y Councilmemb er Fesmire, seconded by Mayor Pro-Tern Bethel andunanimou sly carried to APPROVE a Transient Occupancy Tax TOT) agreementbetween the C ity of Indio and Trendwes t Resorts, Western Pacific Resorts and W orldMark.

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CFD2004-3 Timeshare TOT December2003x