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

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Presentation On the Development of The Springs Shopping Center

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