City Council
MEETING DATE: 5/27/2015
TITLE:
Title
Purchase and Performance Agreement with VERANO RECOVERY, LLC
End
FROM:
Charlie McClendon, City Manager
RECOMMENDATION:
Recommendation
Staff recommends that the City Council approve a Purchase and Performance Agreement by and between the CITY OF CATHEDRAL CITY and VERANO RECOVERY, LLC.
Body
BACKGROUND:
On January 14, 1998, the City adopted Ordinance No. 471 approving Specific Plan 97-55, dated December 5, 1997, establishing land use and development standards for approximately 303 acres in the Rio Vista area. The original development known as Rio Vista Village was approved for 1,362 homes. Over the years since its approval only 137 homes were ever built. Although certain streets and other improvements were completed in Rio Vista Village, many improvements contemplated by the Specific Plan and the Tract have not been completed including the Club House, streets, alleys, curbs, gutters, sidewalks, streetlights, backbone infrastructure, water and drainage improvements, and "dry utilities"; repairs on certain streets are necessary; the fence along the perimeter of the Specific Plan is in a state of disrepair; and blown sand has accumulated on the property located in the Specific Plan.
A Community Facilities District was established for the area (CFD 2000-01) and $20 million in debt was authorized to be issued by the CFD for public improvements in the area. Of the debt authorized, approximately $12.2 million in debt was actually issued and $11 million in outstanding debt remains.
Over the ensuing years, due to developer defaults, the great recession and other factors, much of the total assessments due from property owners to the CFD went unpaid and ultimately the City, on behalf of the CFD, foreclosed on many of the parcels in the CFD. Others went into bankruptcy and subsequently became available for acquisition.
Verano Recovery LLC (the property owner) has acquired much of the p...
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