presentation on the development of the springs shopping center
DESCRIPTION
Presentation on the redevelopment of a former dumpsite into a retail centerTRANSCRIPT
City of Palm Springs
Community Redevelopment Agency
Presentation on The Springs Shopping Center Redevelopment
Project
College of the Desert Real Estate Forum
March 28, 2011
The Springs Shopping Center
NE Corner of Gene Autry Trail and Ramon Road in Palm Springs
Anchored by The Home Depot, Marshall’s, Bed Bath & Beyond
Developed by The Charles Company of West Hollywood
Total Site is Approximately 38 +/- acres
Total Gross Leaseable Area is Approximately 400,000 s.f.
Site History
During the 1930’s, the site was outside the City limits of Palm Springs
The Airport did not exist in the current location
The site was used as the Town Dump
Later a wastewater treatment plant was built on the site near Ramon Road
During World War II, the Army had a huge presence in Palm Springs and used the dump as well
Site History
Landfill closed in 1960-1963
City sold the parcel off
In the late 1980’s, the Redevelopment Agency purchased 14 + acres on Ramon for the development of an Auto Center
Auto Center developer owned the northern 23 + acres
A 5’ “spite strip” was owned by a third owner. It was the easternmost 5’ of the site, actually in Cathedral City, and was missed in the earlier sales transactions
Site History
Auto Center never developed but the developer still owned the 23+ acre portion
The development of the Center shifted to an owner in Minnesota, which had control of at least half of the Agency’s 14+ acres
Several proposals for the site were received in the early-mid 1990’s, but the cost of remediating was estimated to be over $20 million
Landfill Remediation
Until the late 1990’s, the landfill remediation that would have been required would have been to remove all of the landfill debris and haul it to another landfill
The closest landfill was Edom Hill north of Cathedral City
Landfill fees would have been between $23 and $30 per ton
There were about 1,000,000 cubic yards of debris to haul away, or about 1,000,000 tons
At an average of 20 tons per truck, it also would have generated 50,000 truck trips
Revised Landfill Remediation Regulations
The EPA and the State determined that the environmental risk of encapsulating the debris was less than hauling it away
New technique would be to move all the debris to the center of the site and cover it with clean dirt
All buildings would be built on clean dirt
The center would be a very large parking lot with no buildings
Remediation would now be possible since the cost no longer exceeded the value of the land
Business Deal
The Charles Company made an offer to purchase the Agency’s 14+ acres in April, 2001
They bought the 23+ acres from the other property owner in 2002
The Agency sold the land to the Developer at fair market value, though they had already prepaid most of the costs through remediation contribution
The value of contaminated land is its “clean” value minus the cost of remediating it
The Agency allowed them to proceed with environmental permitting from the County and the State
Remediation Approval
The State Agency that
needed to provide
approval for the
Remedial Action
Workplan was the
Department of Toxic
Substances Control
Click icon to add picture
Remediation Work Begins
The work of
Cleaning up the Site
began before the
Shopping Center
project was actually
approved by the
City
Click icon to add picture
Remediation Photos
Remediation Photos
Remediation Photos
Remediation Photos
Remediation Details
Remediation Details
Remediation Problems
Remediation Problems
Planning Approvals
Planning Approvals - Elevations
Planning Approvals - Signage
Planning Approvals - Signage
Planning Approvals
Developer needed to complete EIR
Project approved by the Architectural Advisory Board and went to Planning Commission in late 2005; City Council in early 2006
Agency couldn’t convey the land to Developer until Disposition and Development Agreement (DDA) was approved; DDA couldn’t be approved until EIR was ready for certification
Gorundbreaking
Development of Building Pads
Project Construction
Project Construction
Project Construction
Project Construction
Project Construction
Project Construction
Project Construction
Project Construction
Project Construction
Ribbon Cutting – April 2008
Since the Home Depot Opening
Agency has worked with Developer on a number of other tenants and issues – EZ Lube, Marshall’s, Bed Bath & Beyond
Agency has worked with Developer and the bank on the permanent loan for the project
Agency has provided some incentives for retail leasing – especially Bed Bath & Beyond
New project has opened across the street – the Gene Autry Retail Center, with Staples and Smart & Final
New home development stalled, then stopped, then has restarted slowly
Why Was This Important to the Agency?
Developer remediated an ongoing environmental problem – a closed landfill
Developer eliminated a condition that created blight in two cities
Project created jobs
Project will ultimately yield about $1,000,000 per year in sales tax for Palm Springs
New stores correct retail “leakage” -- meaning citizens driving to another community to shop
Contact:
John RaymondDirector of Community & Economic Development
City of Palm Springs
Tel: 760.323.8228
Email: [email protected]
Facebook: Palm Springs Department of Community and Economic Development