City of Indio City Council Minutes July 30, 2003 continued

Mayor Wilson declared the public hearing opened at 7:34 p.m. and requested comments from the public for or against this proposal. There being no comments from the public, Mayor Wilson declared the hearing closed. After discussion it was moved by Councilmember Godfrey, seconded by Councilmember Gilbert and unanimously carried to ADOPT Resolution No. 6670, by title only, to read as follows: RESOLUTION OF THE CITY COUNCIL, OF THE CITY OF INDIO, CALIFORNIA, APPROVING ISSUANCE OF MULTIFAMILY SENIOR HOUSING REVENUE BONDS BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY 5. PUBLIC HEARING: REQUEST BY DEL WEBB CA CORPORATION, AMENDMENT TO DEVELOPMENT AGREEMENT NO. 95-1-7 Mayor Wilson declared the public hearing opened at 7:36 p.m. and requested comments from the public regarding this proposal. J. Luis Lopez, Principal Planner, reported Staff is recommending this matter be continued to the September 17, 2003 City Council meeting. After discussion, it was moved by Mayor Pro-Tem Bethel, seconded by Councilmemer Gilbert 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 DEVELOPMENT AGREEMENT NO. 96-8-10, SPECIFIC PLAN NO. 96-8-7, PROJECT MASTER PLAN NO. 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 time share? Edward Kotkin replied that is correct. Mr. Kotkin stated the Environmental Assessment 96-8-370, Project Master Plan No. 96-8-10 and Development Agreement No. 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 the entitlements previously granted rather than a straight hotel. The impacts are less severe than that of a hotel as the owners will own a membership in a club. They will be obligated to pay Transient Occupancy Tax (TOT) until the end of time. Councilmember Gilbert requested to know if this project will be subject to Quimby fees? Mr. Kotkin replied no it is not as this matter is fixed under the original development agreement.

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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 the City would be receiving TOT from day one. The TOT this will bring in is tremendous over 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 up The number was $0.00 front 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 be recovering some of their costs up front. He stated a financial consultant was hired to make all of the projections. Based on his report he recommends moving forward with the agreement. She requested to know the "worse case" scenario. Mr. Ramirez replied the City would have infrastructure in place and the TOT would have been collected for the first two years. They will pay close to $2 million up front in plan check fees 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 in developing and building hotels. He introduced their A Team which included Scott Bevins 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. He indicated they came in and volunteered to do so. This project will be built by Western Pacific Resorts and financed by Trendwest. At the end of the construction it will be transferred to Worldmark Resort free and clear of debt. This project will start construction 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 will also go far beyond that. The project will return somewhere between 19-20 million dollars over the next twenty years in revenues to the city. The project will not fail, it is free and clear. It is a very high quality project and it is unique to this valley. The design includes the lakes and the swimming pools. Donald Rich, Project Manager, commented they have an aggressive schedule. It includes 19 buildings and 455 units. They expect to start grading in September and they hope to complete the infrastructure of the streets by January, 2004. The initial planning 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. The landscaping will be growing for one year before occupying any of the buildings. By 2006 all units will be completed. Scott Bevins, Trendwest, Project Manager, stated they are happy to be a part of this community. They have been received by the City of Indio with open arms and he thanked the City Council and Staff.

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Mayor Wilson declared the public hearing opened at 8:07 p.m. and requested comments from the public for or against this proposal. There being no comments Mayor Wilson closed the public hearing. Mr. Kotkin commented the initial environmental reviews for Landmark Golf Club are sufficient to cover this project. After discussion, it was moved by Councilmember Godfrey, seconded by Councilmember Fesmire and unanimously carried to APPROVE an amendment to Development Agreement No. 96-8-10 with The Hills Golf Club, LLC and ADOPT Ordinance 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. 968-10 TO ALLOW A 455 UNIT VACATION CLUB LOCATION ON 27.3 ACRES OF VACANT LAND LOCATED ON THE EAST SIDE OF GOLF CENTER PARKWAY, NORTH OF LANDMARK GOLF PARKWAY; WESTERN PACIFIC RESORT DEVELOPMENT AND TRENDWEST RESORTS, INC. It was moved by Mayor Wilson, seconded by Mayor Pro-Tern Bethel and unanimously carried to APPROVE an amendment to Specific Plan No. 96-8-7, RPD4, and ADOPT Ordinance 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 OF GOLF CENTER PARKWAY, NORTH OF LANDMARK GOLF PARKWAY; WESTERN PACIFIC RESORT DEVELOPMENT AND TRENDWEST RESORTS, INC. It was moved by Mayor Pro-Tern Bethel, seconded by Councilmember Gilbert and unanimously carried to APPROVE an amendment to Project Master Plan No. 96-8-10 and 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) TO ALLOW 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 OF LANDMARK GOLF PARKWAY; WESTERN PACIFIC RESORT DEVELOPMENT AND TRENDWEST RESORTS, INC. It was moved by Councilmember Fesmire, seconded by Mayor Pro-Tern Bethel and unanimously carried to APPROVE a Transient Occupancy Tax (TOT) agreement between the City of Indio and Trendwest Resorts, Western Pacific Resorts and World Mark.

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