Presentation on the redevelopment of a former dumpsite into a retail center

1. City of Palm SpringsCommunity Redevelopment Agency Presentation on The Springs Shopping Center Redevelopment Project College of the Desert Real Estate Forum March 28, 2011

2. 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.

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. Remediation Approval The State Agency that needed to provide approval for the Remedial Action Workplan was the Department of Toxic Substances Control

10. Remediation Work Begins The work of Cleaning up the Site began before the Shopping Center project was actually approved by the City

11. Remediation Photos

12. Remediation Photos

13. Remediation Photos

14. Remediation Photos

15. Remediation Details

16. Remediation Details

17. Remediation Problems

18. Remediation Problems

19. Planning Approvals

20. Planning Approvals - Elevations

21. Planning Approvals - Signage

22. Planning Approvals - Signage

23. 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

24. Gorundbreaking

25. Development of Building Pads

26. Project Construction

27. Project Construction

28. Project Construction

29. Project Construction

30. Project Construction

31. Project Construction

32. Project Construction

33. Project Construction

34. Project Construction

35. Ribbon Cutting – April 2008

36. 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

37. 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

38. Contact: John Raymond Director of Community & Economic Development City of Palm Springs Tel: 760.323.8228 Email: John.Raymond@palmspringsca.gov Facebook: Palm Springs Department of Community and Economic Development