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Presentation On the Development of The Springs Shopping Center
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Presentation On the Development of The Springs Shopping Center


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

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

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  • 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
    Facebook: Palm Springs Department of Community and Economic Development