October 29, 2003 Je.pdf Trendwest Escrow

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CUTYOFINDO AGENDACity CouncilOctober29,003SPECIALMEETING50PM)UBLICCOMMENTADJOURNINGTO

SPECIALCLOSEDSESSION60PM)PECIALSESSIONPUBLICCOMMENT:PleasenotepubliccommenttotakeplaceintheCityHallConferenceroomat100CivicCenterMall,ndio.CLOSEDSESSION:TheCityCouncilshallconveneinclosedsession,oconsiderthefollowingmatters:

ConferencewithLaborNegotiatorspursuanttoGovernmentCodeSection54957.6egardingPoliceCommandUnit (PCU),ndioPoliceOfficersAssociation (POA)ndLaborers'nternationalUnionofNorthAmerica (LIUNA)ConferencewithLegalCounsel- xistinglitigationpursuanttoGovernmentCodeSection54956.9aCityofIndiovs.ndioVenturePartners,CaseNo.NC034294ConferencewithLegalCounselpursuanttoGovernmentCode,Section54956.9 c nitiationoflitigation (1aseConferencewithLegalCounselpursuanttoGovernmentCode,Section54956.9bnticipatedlitigation, ignificantexposuretolitigation (3)asesDiscussionofpersonnelmatterpursuanttoGovernmentCodeSection54957:PublicEmployeeDiscipline/Dismssal/eease)ases

REGULARSESSION 60PMPleasenoteregularsessionwilltakeplaceintheCouncilChambersCalltoOrderandROLLCALL:

PledgeofAllegianceREPORTONACTIONTAKENINCLOSEDSESSION

CITYOF INDIO

MayorMichaelWilsonMayorProTemJacquelineBethelCouncilmemberMelanieFesmreCouncilmemberGeneGilbertCouncilmemberBenGodfrey

CtyedevelopmentAgencyAgendasareavailableontheweb www.ndio.og

PUBLICCOMMENTThisisth et imesetasidefo rpubl icc o m m e n t onanymatternotappearingontheagenda.Ifouwish tospeak, leasecompletea "equesttospeak"ormand im i tyourcomments tofiveminutes (ormsareocatedintheo b b yoftheCouncilChamber).leasewatchthetimingdeviceonthepodium.


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CityofIndioCityCouncilAgendaOctober29,003continued1.ConsiderapprovinganamendmenttotheTransientOccupancyTaxAgreementapprovedonJuly30,003bytheCityofIndioastoTrendwestResorts,WesternPacificResortsandWorldMarkwhichprovidesforarebateofaportionoftheTOTcollectedbytheoperationofaVacationCub(udycosta,Redeveopment/conomcDevelopmentDirector)ResolutionAction2 Considerawardingacontracttotheowestresponsiblebidderforthealleyre

onstructionprojectandJacksonStreetimprovementsnorthofAvenue42AmirModarressi,nterimPublicWorksDrecto/Ctyngineer)MinuteActionADJOURN

T h eIndioCityCouncilChamberishandicappedaccessible.Ifpecialequipmentisneeded,ortheheatingimpaired, leasecalltheCityClerk'sffice. ersonswithdisabilitiescanreceivethisagendainanalternativeformatandshouldcalltheCityClerk'sfficeat863437otification48hourspriortoameetingwillenabletheCitytomakereasonablearrangementstoensureaccessibilitytothemeeting (28CFR35023504DATitle11).

DECLARATIONOFPOSTING1,CynthiaHernandez,DeputyCityClerkoftheCityofIndio,California,doherebydeclarethattheforegoingagendafortheSpecialClosedSessionandCityCouncilmeetingofOctober29,003waspostedontheoutsideentrytotheCouncilChamber, 50CivicCenter allonOctober23,203CyflaHernandezDeutyCityClerk,CMC

NEXTREGULARCITYCOUNCILMEETINGNOVEMBER5,003

AT60PMPUBLICNOTICE

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TO: MayorandCouncilTHRU T om Ramirez,CityManagerFROM: R u d yAcosta, conom icDevelopmentDirectorJerryCarter, inanceDirectorS u s a nE illiams,CommunityDevelopmentServices/ c 0Bui ld ingandSafetyDirectorBY EdwardZ.otkin,CityAttorneyDATE: October29,003SUBJECT: Consideration to Approve b y Resolution a Transient OccupancyTaxTOT)greement.

APPLICANT: WorldMark,heClub,TrendwestResorts,nc.,WesternPacificResortDevelopment78 -060CaIIeEstadoLaQuinta,CA92253

PROPERTYOWNER: Applicant

propertyinescrow seebelow)PROJECTLOCATION: EastsideofGolfCenter

Parkway,NorthofLandmarkGolfParkway.

CITYOFINDIOAGENDAREPORT

October29,003

ITEM.NO.


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CITYCOUNCILSPECIALMEETING OCTOBER 2003Page2of3SUMMARY:

LBHillsGolf,LCisthepresentownerofthesite. Itsescrowastotheapplicant'spurchaseofhe site is scheduledtoclosewithin the nextfoty-gh (8)hours,contingentupontheCityCouncil'sonsiderationandapprovaloftheTOTAgreement.OnJune25,003thePlanningCommissionapprovedaDesignReviewapplicationDR 0359or the construction of a 455-unit Vacation Club and residentialdevelopmenton273cresofvacantlandwithintheLandmarkGolfClub. OnJuly30,2003 the City passed ordinances approving a First Amendment to DevelopmentAgreement 96-80nd amending Specific Plan 96-87nd Project Master Plan96-80InlightofthenatureoftheproposedVacationClubresortthatwilloccupythesite,omaketheprojectfinanciallyfeasible, ndbasedupontherequirementsoftheCodeofIndio, the applicant subsequently proposed a Transient Occupancy Tax (TOT)Agreementwiththe Cityofndio. TheAgreementasproposed and approvedinconceptbythisCouncilonJuly30,003providedforasharingoftheTOTrevenuetobegeneratedbytheproject.Exhibit A to this report contains the C i t y 'savorable financial analysis of thisAgreement. StaffhasworkeddiligentlyincooperationwiththeapplicanttoarriveattheprecisemutuallybeneficialtermsandconditionscontainedintheAgreementthatisattachedandncorporatedintheresolutionattachedheretoasExhibitBTheoriginalfailedhotelprojectthathadbeenapprovedforthesitealongwithitspotentialenvironmental impactswerethesubjectofanEnvironmentalAssessment96-870 adopted by the City Council on December 18, 1996. After review andassessment; staffhas determned thatthere are nonewoadditional significantenvironm enta l impactswhichwillresultfromthechangeintheprojectassociatedwiththe Vacation Club and residential development and that in fact, any significantenvironm enta l impactsassociatedwiththeoriginalhotelprojectmaybediminishedviathesubstitutionofaVacationClubandresidentialdevelopmentforahotel. StaffhasecomnendedatEnvironmental-Aentshouldbeconfirmedintakingtheactionrecommendedherein.Attachedtothisstaffreport, leasefindthefollowingdocuments:EXHIBITA ComprehensiveFinancialAnalysis,LeonardR.Wok, inancialAdvisortoth eCityofIndioandPresidentofRea lEstateAnalysis ServicesCom p any (REASCO)EXHIBITB Draf tRecommendedResolutionApprovingtheTOTAgreementinthisMatter (ncorporatingTOTAgreementasExhibitAthereto)


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CITYCOUNCILSPECIALMEETING OCTOBER29,003Page3of3

RecommendedActions

GiventhepositivefinancialimplicationsoftheproposedTOTAgreement,nlightofthefindings reflected inthedraftresolut ion inthismatter, ndbaseduponanyinform ationthattheMayorandCouncilmayelicituponconsiderat ionofthismatteratthisSpecia lMeeting,staffrecommendsthattheCounci lapprovetheTOTAgreem entbypass ing,approv ingandadoptingthedraftresolutionattachedhereto asExhibitB.


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IBITBRESOLUTIONNO.

RESOLUTION OF THE CITY COUNCIL, OF THE CITY OF INDIO,CALIFORNIA,APPROVINGARANSIENTOCCUPANCYTAXAGREEMENTWHEREAS,heCityofIndio ("Cty )ndLBHillsGolf,LChaveentered

into a FirstAmendmenttoDevelopmentAgreement96-0 (the "mendedDevelopmentAgreement")orthe developmentofa455ntacation ClubVacationClub")na273creparceloflandwithintheCity;ndWHEREAS, on July30, 2003 the City passed ordinances amendingSpecific Plan 96-87roject Master Plan 96-80(the " ConformingEntitlements")ndtheAmendedDevelopmentAgreementinordertoconformprioragreementsandentitlementstotheproposedVacationClubinlieuofthepreviously-pprovedesorthotel;ndWHEREAS,heoriginalhotelprojectalongwithitspotentialenvironmentalimpac tswasthesubjectofanEnvironm enta lAssessment96-870doptedbytheCityCouncilonDecember18,996 (he "nvironmentalAssessment");ndWHEREAS,afterreviewandassessment;staffhasdeterminedthattherearenoneworadditionalsignificantenvironmentalimpactswhichwillresultfromthechangeintheprojectassociatedwiththisAmendedDevelopm entAgreem entand the Conforming Entitlements, that infact,anysignificantenvironmentalimpactsassociatedwiththisprojectmaybediminishedviathesubstitutionofaVacationClubforahotel,andthattheEnvironmentalAssessmentshouldbe

confirmedintakingthisaction; ndWHEREAS,nordertomakethisprojectfinanciallyfeasibleatthistime,TrendwesthasrequestedthattheCitysharethetransientoccupancytaxthatwillbecollectedfromthosewhooccupyandusetheVacationClub; ndWHEREAS,heCityhasdeterminedthatsuchsharing,onthetermsandconditionssetoutintheTransientOccupancyTaxAgreement, ttachedheretoasExhibitAandincorporatedbyreferenceherein,sinthebestinterestoftheCityinordertogeneratetaxrevenue, timulateresortdevelopment,andcreatejobsandbusinesswithintheCity.


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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF INDIO,CALIFORNIA,DOESHEREBYRESOLVEASFOLLOWS:1. The Recitals setforth abovearetrueand correctand constitutethe

findingsoftheCityCouncilregardingthisagreement.2TheTransientOccupancyTaxAgreementinExhibitAsapprovedinsubstantiallytheformsetforththerein,withsuchrevisions, mendmentsandcompletionsasshallbeapprovedbytheCityManager, EconomcDevelopmentDirectorandFinanceDirector,withtheadviceoftheCityAttorney,suchapprovaltobeconclusivelyevidencedbytheexecution,

upondeliverybytheCityManagertotheMayorfortheMayor'signature.3This Resolution and the approval of the Transient Occupancy Tax

Agreementshallbeeffectiveimmediately.PASSED,APPRO VED,andADOPTED this29dayofO ctober2003, y

thefollowingvote:

ATTEST:

AYES:NOES:

CYNTHIAHERNANDEZDEPUTYCITYCLERK, MC

MICHAELH ILSON,MAYOR


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T NSIENTOCCUPANCYTAXAGREEMENTCityofIndio,California

TH ISTRANS1H,NTCCUPANCYTAXAGREEMENT ("greement")ismadeandenteredintoasofhis dayof 2003,byandbetweenTRENDWESTRES ORT S , NC.,nO regoncorporation ("rendwest"),or ldMark,T heClub,aCalifornianonprofitmu t ua l bene f i tcorporationwhich ownsandoperatesresorts marketed byTrendwest ("WorldMark"),ESTERNPACIFICR E S O R TDEVELOPMENT,aCalifornia generalpartnership ("WesternPacific"),ndTHECITYO FINDIO,ACalifornia munic i pa lcorporation ("Cty ).rendwest,Wor ldMark,WesternPacificand theCitym ayhereinafterbereferredtoindiv idual lyas "Party"orcollectivelyasthe "Parties."

RECITALS:

A Trendwestand WesternPacifica re developing,orintends todevelop,avacationc lub resort (he "Project")nthatcertain27.3creparceloflandidentifiedasParcel2inExhibitAttachedheretoanddemarcated onthesitem apattachedheretoasExhib i tBand madeapar tofthisAgreement (he "Property").B. TrendwestandWesternPacifichaveenteredinto awrittencontractfordevelopmenta nd constructionofth eProjectpu rsuanttowhichTrendwest isth eownerandWesternPacificisthedeveloperandgeneralcontractor.C. Trendwestisavacationsalesa nd m arket ingcompanywhichacquiresresortssuchastheProjectandthereafter transfers thoseresortstoWorldMarkinreturnformarketablevacationcredits ("acationCredits")hich authorizeth e ownerthereoftooccupyandu seuni tswithintheProjectforl im i tedperiodsoft imebased uponth en u m b e rofvacationcreditspurchased.D WorldMark isanassociationwhosemembershavepurchasedvacationcreditsfromTrendwesta l lowingthosememb ersto occupyanduseanyofth eresortsownedandoperatedbyWorldMark.WorldMark's embers payannua lmaintenanceassessments ("Dues")oWorldMarkbased uponthenumberofVacationCreditsowned.E Uponcomplet ionoftheconstructionoftheProject, rendwest.willconveyunitsintheProjecttoWorldMarkforthe useandbenefitofWorldMark'sembersinthemannerdescribedab ove (eferenced individual ly asaUntoinheaggregateasthe "Units").

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F. AllPartiesunderstanda nd agreethatpursuan ttoIndioMunic i pa lCode 347,heCityimposesaTransientO ccup ancyTax ("TOT )nhotelsandvacationclubresortssimilartotheProject.G. T h eCityh asdeterm inedthattheProjectwillprovideap u b l i cbenefitasitwillencourage tour ism andcontribute totheeconomicdevelopmentofth e

City,hasapp roved theProjectDesignReviewonJune25,003, ndh a sm odif ied pre-existing landuseentit lements fortheProperty toconformtosaidentitlem entstoh eProjectonJuly30,003 (heapprova lofsaid DesignReviewand m odi ficat ionofsaidentitlementsreferenced intheaggregateas the "Approvals").NOW, HEREFORE,nconsiderationoftherecitals,ovenants,agreements and stipulations containedherein, ndotherva luab leconsideration thereceiptand suff iciencyofwhichareherebyacknowledged, hePartiesdoagreeasfollows:

AGREEMENT

1. Construction and Use of Project. Trendwest and WesternPacific(eferredo col lectivelyasthe "onstructionParties")agreetoonstructtheProjectonthePropertyinnotmorethanthree (3)hasesinamannerconsistentwiththeApprovals.

a) T h eProjectascompletedwillconsistofuptoam a x i m u moffourhundredandfifty-ive (55)nits,onstructionofsametobecompleted within aperiodofno-o

xceedeighty-our (4)onths following theissuanceofthefirstCitybu i ld ingpe rm i tfortheProject (he "ConstructionPeriod").b) Notwi thstanding thelength oftheConstructionPeriod,Trendwestand WesternPacificcovenantthatconstructionofth efirstphaseofth eprojectincorporatingnotlessthantwo hundred a ndtwentygh (28)nits ("hase

I"),togetherwithallProjectof-temprovementsandtheontenfrastructurerelatedtoPhaseI,nclud ingbutnotlimitedtoroadways andparkingareas,utilities,Projectrecreationalamenities andcommonfacilities,etc. (he "haseIm p rovem ents ")willb ecompletedwithinaper iodofnottoexceedthirty-x(6)onths fol lowingtheissuanceofthefirstCitybuildingpermitfortheProject.

c) IntheeventthatTrendwestoritsdesigneeseekstoalteritsdesignorconstructionp l ansaftertheCity'suildingdepartmenthasactua l l yissued ape rm i tinamannerwhichwouldrequire theCitytoagainreviewthatpermitand/omodi fyitspermitapprova l resul t inginasi tuat ioninwhichtheCitywouldtypical lychargeforthecostsincurred forthataddit ionalreview a nd approvaland/onspections,Trendwestshallberesponsib leforpayingsuchadditionalcostsinadditiontothecostssetforthinSection8 (b,elow.

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d) T h elifeofanyandeach Trendwestpermit, otwithstandingthetimingofTrendwest's aymentof "lanReviewFees" ssetforthbelowinSection8a),hallnotcommenceuntilsuch timeastheCity'su i ld ingdepartmentactua l ly issuesthepermitp u r su an ttoitsreviewanda pp r o va lprocess.e) Trendwest agrees to convey Units in the Project to

WorldMark.WorldMarkagrees toacceptandoperatetheUnitsinaccordancewiththete rmsofthisAgreem entandtheApprovals.2. Appl icat ion ofhe Code. The City hereby represents andWorldMarkhereby acknowledges thatthe Code ofndio (the "Code")ets forthWorldMark's bl igationtopayTOTandanyapp l icab lesubsequentu sefeeeviedbyth eCityinplaceorinsteadofheTOT. TheProjectisa "Hotel"ndWorldMarkisanOperator"sdefinedinCodeSection34.6nd thereforesha l lbesubjecttotheCity'sUniformTransientO c c u p a nc y TaxOrdinance.

Wor ldMarkherebyundertakesandacceptsthatTOTpayments totheCityshallbedeterminedbymultiplyingtheRentasdefinedhereinattributabletoeachUnitoccupied duringanygivenreportingperiodbytheTOTratesetforthinh eCode. TheUnitswillremainsubjecttopa y m e n toftheTOTuntilsuchtimeastheCodeiseitherrepealedoramendedsuchthattheUnitsarenolongeroperated asaacationc luborothertypeoftransientoccupancyusesub jec ttotheCode. xcept asotherwisespecif ical ly set forth in this Agreement, WorldMark and Trendwest, inc lud ing allsuccessorsa nd assignsthereof,greetobeboundbytheprovisionsoftheCodedealingwithTOTandanyapp l icab lesubsequentu sefeeeviedbytheCityinp lace orinsteadofthe TOT, including without limitation, those Code sections pertaining to annualregistrationcertificates, enaltiesfordel inquentpayments,efunds, andviolations.npayinganysubsequentusefeeapp l icab letotheUnitsundertheCode,hecalculations ofRentsetforthhereinshallgoverninthes a m emannerasfortheTOT.

3. RentsandTOTCalculation. T h edailyrent ("Rent )nwhichth eTOTrateistobeinitiallyappliedshallbeequaltotheamountoftheDuesassociatedwiththen u mb e rofVacat ionCreditsrequiredforaone (1eeks tayatthatpart icu larUnitdividedbyseven (7).heVacationCreditrequi rem ents setforthbelowinSection5a nd theDuesstructuresetforthinSection6,elowwillbeusedtocalculatetheRentfortheinitialyearofoccupancyofaUnit.

Rent commencing on the first day ofeach successive yearthereaftersha l lbecalculatedbyadjust ingtheb a s erentstructurethenineffectbyth eamountofhencreaseinheannualConsumerPriceIndexforallurban consumerspub l ishedbytheBureauofLaborStat ist ics,UnitedStatesDepartmentofLaborforth eStateofCali fornia,LosAngees/versde/angeountyCaliforniaRegion, overtheindexforthenextprecedingyear.TheTOTpayabletotheCitysha l lbedetermined b ymult ip lyingthedailyRentattr ibutabletoeachUnitoccupiedduring anygivenreportingperiodbytheTOTratesetforthintheCode.

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4. Vacation Credit Allocation. Each member will be entitled tooccupythefollowingtypesofunitsforoneweekforeachspecif iednumberofVacat ionCreditsowned:

VacationCredits Peak-High/Loweason UnitTy pe700/500 Studio900/700 1Bedroom11000900 2Bedroom130001000 3Bedroom180006000 3BedroomPenthouse5. Dues Structure. WorldMarkmembersarechargedDuesb asedu p o nthen u m b e rofVacationCreditsowned bythem e m b e r .Duesaresub jecttochangefromtim-toimytheWorldMarkboardofdirectors.SincethedatetheProjectwillfirstbeoccupiedandtheDu e sstructure,whichwillbeineffectatthattimea re uncertain,th ePart iesagreethattheDuestobeutilizedincalculat ingtheRentforthefirstyearofoccupancyshallbeasfollows:VacationCredits Dues50 0 $ 274501to700 357701to10,00 44010,01o12,00 52312,01o1500 6061501o17,00 68917,01o20,00 772

6. Ex amp leofPaymentofRentCalculation. asedupontheVacat ionCreditsownedandtheDuesstructuresetforthinParagraphs4and5,heRentfor astud ioUnitPeak-gheasonduringtheinitialyearofoccupancywouldbe $510,calculatedasfollows:700VacationCreditsperweekequa ls $3570erweekinDues,dividedby7days,whichequa ls $510ernightinRent.Rentequivalencyfortheunittypesattheserateswouldbeasfollows:

Peak-HghoweasonStudio $ 51009.41Bedroom 6286102Bedroom 74712.63Bedroom 86.57413BedroomPenthouse 110298.3

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IfTrendwestorWorldMark,ncludinganysuccessors orassignsofeitherofthem,ubsequent ly rentsaUnittothegeneralpublicfor a "pernight"eeorcharge, hefullamoun tofsuchrentsha l lbesubjecttotheTOTprovisionsofth eCode.34.41:

7. WorldMarkReturntotheCity. AsrequiredbyCodeSection

a) WorldMark, on o before the last day ofhe monthfollowingthecloseofeach calendarquarter,oratthecloseof anyshorterreportingperiodwhichmaybeestablished bytheCity'saxAdministrator"asdefinedinSection34.6oftheCode,hallm a k eareturntosa idTaxAdm inistrator, onformsprovidedbyh im orher,ofth etotalRentand th eamountsofta xcollectedfortransientoccup ancies (aReturn").b) AtthetimeWorldMarkfilesitsReturn,WorldMarksha l lremitthefullamountofthetaxcollectedtotheTaxAdministrator.c)The Tax Administrator may establish shorterreportingperiods forWorldMarkifheorsh edeemsitnecessaryinordertonsurecollectionofth etaxandheorsh emayrequirefurtherinformationinWorldIVIark's eturn.d) WorldMarkReturns and payments are dueimmed ia te l yu p o ncessationofbusiness fora nyreason.e) WorldMarkshallholdallTOTcollectedinrustfortheaccountoftheCityuntilp a y m en t thereofismadetotheTaxAdministrator.f)h is Section7isnotintended,andsha l lnotbeconstrued,toexpandWorldMark's egalobl igations totheCitybeyond thosesetforthintheCode.

8. Obligations. Inconsiderationoftheconstructionandoperat ionofth eProjectbyWesternPacific, rendwestand WorldMarkrespectively, nd theCity'sfaci l i tationofsaidconstructionandoperat ionviathisAgreem ent ,heParties agreeasfollows:a) As aconditionprecedenttoCity'serform anceof anyobl igat ionpursuanttothisAgreement,Trendwestsha l l p repayanyandallCitysiteplanreview, u i ld ingpermit, lancheck, ndotherfeesinconjunctionwiththeconstructionoftheentireProject (ereinafterreferredto as "PlanReviewFees"). hisconditionprecedentwillrequireprepaymentofonehu ndredp ercent (100%fthePlanReviewFeescorrespondingtoallProjectUnitsandfacilitiestobeconstructed, egardlessofphasing. Trendwestshallm a k ethisprepaymentinfullon orbeforeDecemb er31,004.TheamountofhePlanReviewFeesshallbe assetforthinthefeeschedu leinp laceduringNovember2002.

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b) O t h e rthanassetforthinSection1 (c,bove,nonew oaddit ionalfeesbeyond thePlanReviewFeeswillbeimposedontheProject. Thisl imitationdoesnota p p l ytoresidentialdevelopmentofth ePropertybeyond th eProject.c) City shall make certain payments funded pursuant toSection8 (e)elowtoTrendwestand, ssetforthinSection8 (f)elowtoWesternPacific,duringtheperiodcommencingonthessuancedateofhelastcertificateofoccupancyassociatedwithPhaseI (he "nitiationDate"),ndendingontheenthanniversaryofhessuance ofthelastcertificateofoccupancyintheproject (heTerminat ionDate").ntheaggregate,hepaymentsdetailedinthisSection8 (c) ()throu gh (3nclusiveare referencedhereinas the "rendwestPayment.nth eaggregate,th epaymentsdetai led inthisSection8 (c) ()hrough (7)nclusive arereferencedhereina sthe "rendwestDifferencePayment." TheTrendwestPaymentandtheTrendwestDifferencePaymentshallbemadeasfollows:

1) O norbefore30days fromtheInitiationDate,heCitywillpayTrendwestasu m equa ltoaproratedportionof $200,000.2) O norbeforeth eendofth e12monthfollowingth eInitiationDate,heCitywillpayTrendwestasu m equa lto aproratedportionof100,003) O norbeforeth eendofth e24month followingth eInitiationDate,heCitywillpayTrendwestas u m e q u a lto aproratedportionof558,500.4) EachoftheTrendwestPayment installmentsdescribedabovesha l lbeprorated basedupontheratioofUnitswithacertificateofoccupancyattheendofthePhaseIothem a x i m u m n u m b e rofUnits,orwhichTrendwestpurchasedperm i tspursuanttoSection8()b ove (eg,frendwest secues283certificatesofoccupancybytheendofPhaseI [62.2%f45 5Units],itywill payTrendwest: (A) $

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4400 [$200,0062.2%norbefore30days fromth eInitiationDate, (B) $22,00 [$100,0062.2%norbeforetheen dofthe12monthfollowingtheInitiationDate, nd (C $47,87 [$580062.2%norbeforetheendofthe24month followingth eInitiationDate) .5heTrendwestDifferencePaymentequals threem il lionfivehundredfifty-ghhousandfivehundreddollars ($ 5800)inusth eTrendwestPayment. CityshallpayTrendwest56%ftheTrendwestDifferencePaymentonorbeforethirty (30)a ys aftertheissuancedateofthelastcert if icateofoccupancyassociatedwithth eProject'sas tphase (he "astPhaseConclusionDate").6)itysha l lpayTrendwest28%ftheTrendwestDifferencePayment onorbeforeth eendofth e12month followingth eLastP h a s eConclusionDate.

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7)ityshallpayTrendwest16%ftheTrendwestD i f f e r e n c e Paymentonorbeforeth eendofth e24month followingth eLastP h a s eConclusionDate. 8)heParties intenda nd agreethatthesu m ofth eTrendwestPaymentplustheTrendwestDifferencePaymentsha l linalleventsbeequa ltothreemillionfivehundredfifty-ghhousand fivehundred dol lars ($58,500).d) IntheeventthatCityfundsarerequiredtoake anyinstal lmentoftheTrendwestPaymentortheTrendwestDifferencePaym ent,i..,nypaymentspecified inSection8 (c (hrough (3)nclus iveand/o (5)hrough (7)inclu sive ("nstallmentFunds"),renotavai lab leasspecifiedinSection8 (e)elow onthedatetheins ta l lm entisdue,CityshallpaysuchInsta l lm entF u n d stoTrendwestwithinthirty (30)aysofthedatewhentheInstallmentFundsbecomeava i lab le ascalculatedbyCity'sirectorofFinanceinhisorherreasonab lediscretion.

e) CityshallmaketheIncentivePayments andtheWesternPacificPayments exclusively fromrevenuescollected fromtheTOTpaymentscollectedpursuanttohisAgreementandtheCode. City'

saymentinullofhencentivePaymentsshallbeaconditionprecedenttotheWesternPacificPayments. ThisconditionprecedentshallapplyregardlessofpaymentofanyportionoftheIncentivePaymentsm o r ethantwentyour (4)onthsaftertheLastPhaseConclus ionDate. However,oth eextenttheTOTrevenuesdonotcompletelyf und theIncentivePaymentsobl igat ion,Cityshall,otheextentpermittedbytheCode, sePlanReviewFeestomaketheIncentivePayments. ExceptasprovidedinthisSect ion8 (e,oportionoftheIncentivePaymentsshallbepaidfromCityGenera lFundmonies.f)fter its payment in full of all installments of theTrendwestPaymentandtheTrendwestDifferencePaym ent (eferenced collectively asthe "ncentive Payments")romfundsavai lab lepursuanttoSection8 (e)bove,CitywillretainallTOTrevenuereceived fromtheProject,untilthepointintimewhen45%fth eaggregateTOTrevenuereceivedbytheCityexceedsthetotalamountoftheIncentivePayments,i..,hreemllionfive hundred fifty-ghhousand five hundred dollars358,500 he "WesternPacificTriggerDate"). ftertheWesternPacificTriggerDa te, nd throughoutthefirstyearthereafter (he " esternPacificTriggerYear"),it ywillpaytoWesternPacif icthedifferencebetween45%ftheaggregateT O T revenuereceivedbytheCitya nd thetotala mou n toftheIncentivePaym ents,i..,hreem ill ionfive hundred fifty-ight thousand five hundred dollars ($358,500.n all yearssubsequenttotheWesternPacificTriggerYearcontinuinguntiltheTerminationDate,theCitywillpaytoWesternPacific45%fheannualTOT revenuereceivedbytheCity. TheCitypayments toWesternPacificduringtheWesternPacificTriggerYearandthereafterarecollectivelyreferenced hereinasthe "WesternPacificPayments."

g) Subjectto Sections8(hnd 11 (g)elow, rendwestanticipates, asedonitsoccupancyhistoryatotherresorts,hatthePropertywillenjoyoccupancyaveraging75%rmorefromthedateofthei ssuanceofthefinalcertificateof7


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occupancythroughthetenthanniversarythereafter. Ontheearlierofthedatefive (5yearsaftertheLastPh aseConclusionDateorDecember31,012, (he "OTReviewDate"),itywillcalculatewhethertheaggregateTOTrevenuecollectedfromth eProjectthe "nitialTOTRevenue")qualsorexceedsfourmillionthreehundredthousanddol lars ($4

0000 (he "nitialTOTProjection").IfontheTOTReviewDate,heInitialTOTRevenueisessthantheInitialTOTProjectionandTrendwes thasreceivedth e IncentivePaym ents, rendwestsha l lwithinsixty (60)aysoftheTOTReviewDatethe "TOTRefundPeriod")efundandpayCityinfullthedifferencebetweentheInitialTOTRevenueandtheInitialTOTProjection (he "OTRefund").TheTOTRefundPeriodm aybeshortenedorextendedbym u t u a lwrittenconsentofTrendwestandCity.InexecutingthisAgreem ent, rendwestuncondit ional lyguaranteesitspaymenttoCityofth eTOTRefundifircumstancesdescribed inthisSection8 (g) (partfrom occupancynotaveraging75%morefromhedateofhessuanceofhefinalcertificateofoccupancy through thetenthanniversarythereafter) rise.

h) IntheeventthatTrendwest determines thatcom p letionoftheProjectisnolongereconomical lyviable, rendwestmayterm inatetheProject'sconstruction. IfnoportionoftheProjectisconstructed,hisAgreem entsha l lbenullandvoidandofnoforceoreffect. However,nthatevent,otheextentTrendwesthasnotalreadypaidtheCityforsuchcos tsatthetimeitterminatestheProject, rendwest sha l lreimburseCityforactualcostsincurredasaconsequenceofCity'sonsiderationofa llm at tersrelatedtotheApprovalsandthisAgreement. IntheeventthatTrendwestonlyconstructsPhaseIonsistingofapproximatelytwohundredandeighty-hee (83)nitsoranyportionthereof,hen (AheCitysha l lbeentitled tokeep allPlanReview Fees tob epaidbyTrendwestpursuanttothisAgreem ent; (B)rendwestsha l lnotbeentit led toreceivea ny installmentsofth eTrendwestDifferencePaymentsetforthinSection8 (c)above;and (CheamountofTrendwest's uaranteeoftheTOTRefund assetforthinsection8 (g)hallbereduced from $43illionto $28illion.9. Indem nification.Tothefullestextentp erm i ttedbylaw,hePartiesshal lreimburse,ndemnify,andholdtheotherPartiesandtheiragents, mployees, ff icers,electedofficials, nddirectors, harmlessfromandagainstallclaims, amages,osses,fines, enalt ies,udgments, wardsandexpenses,ncludingbutnotlimitedtoreasonableattorney'seesforcounselacceptabletotheindemnifiedParty, risingoutof orresultingfromtheindem nifyingParty'sreachofthisAgreementortheindem nifyingParty'snegligenceorintentionalm iscondu ct (ncludinganybreach,egligence orintentionalmisconductbyindependentcontractorshiredbyth e indemnifyingParty).

Trendwestfurthershallindemnify,holdharmless ,andpayallcosts forthedefenseofth eCity,ncludingfeesand costsforspecialcounseltobeselectedbytheCity,egarding anyactionby any memberohevacationclub resort challengingthevalidity ofhisAgreem ent,orassertingthatpersonalinjury, amages,ustcompensat ion, estitut ion,judicia lorequi tab lereliefdu etopersonalorpropertyrights arisesb y reasonofhetermsof oreffectsarisingfromthisAgreem ent. Citymaymakeallreasonab ledecisionswithrespecttoitsrepresentationinanylegalmatter.8


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10. AlternativeDisputeResolution. Ifadisputearises betweenCityand Trendwest WorldMark and Western Pacific ( collectively "Developer" for thisSection10only)egardingthemaking, ormation,nterpretation,orperformanceofthisAgreem ent,CityandDeveloperagreetoadheretothed i spu teresolut ionprotocol asdelineatedandexp la inedherein.a) NEGOTIATION: CityandDeveloperwillmakeagoodfaithefforttoresolveanyclaimori s sueastothisAgreement,hroughnegotiation.b) MEDIATION: IfCityandDevelopercannotresolvesuchaclaimori ssue astoth isAgreem ent,hroughnegotiation, henthatclaimori s sueshallbethesub jectofmediation, dm inisteredbyamediator.c) LITIGATION (Limted):CityorDevelopermaypursueanactionatlaworinequity,withrespecttoaclaimori ssueastothisAgreem ent,hath asbeensubjecttomediation,onlyasspecifiedbelow.Anymediatorad m inister ingp roceedingspursuanttothisAgreementshallbeselectedfromtheoster oftheLos Angeles, Californiaofficeohe AmericanArbitrationAssociation, hereinafter "heAAA,"ndmustbedeemedacceptab lebyallinvolvedParties. Mediat ionpursuanttothisAgreem entsha l lbeconductedpursuanttotheAAA'sCommercial Dispu te Resolution Procedures ( Including Mediation and ArbitrationRules)"as amended and effective on Ju ly 1, 2002, o alternatively, such AAACommercia lMediationand/orbitrationRulesasmaysupercede. TheAAAOp t i o n a lRulesforEmergencyMeasuresofProtectionsha l l a pp l ytoproceedingspursuan ttoh isAgreem ent.Nomediator(sha l lhavethepowertom a k ea nyaward inconsistentwith,orcontrarytothetermsandprovis ionsofthisAgreem ent. Awrittensettlementexecuted bythePart iesatm ediationm a ybeenteredinanycourthavingjurisdiction astoheissueastothisAgreement, inquestion. ThecostsandexpensesofanyPartythatini t iateslitigationtoenforcesuchawrittensettlement,ncludingbutnotlimitedtofullreasonableattorney'seesofaprevai l ingPartyidentifiedassuch inthewrittensett lem ent,shallb eborneandpaidbytheParty(es)hodonotpreva i ltherein. Thesubmissiontomediationofanymatterp u r s u a n ttothisSectionisherebym a d eacondition precedenttotheinstitutionofanyactionatlaworinequityastoany issueastothis Agreem ent.NoPartysha l linstituteanactionatlaworinequity,withrespectto anymattersubjecttomediat ionpu rsuanttothisSection10untilafterthecomplet ionofmediat ion.

DeveloperInitialsTrendwest)

DeveloperInitialsWorldMark)

DeveloperInitialsWesternPacific)

CityInitials

9


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11. Miscellaneous.a) HeadingsandCaptions. T h eheadingsandcapt ionsinh isAgreementareforconvenienceonlyandsha l lnotbereferredtointheinterpretationofthisAgreement.b) Definitions. Wh enusedinthisAgreement,hefollowingtermsshallhavethemeaningsetforthherein:

1) Occupancy",orthep u r p o s eofcalculat ingTOT,shal lmean, ssetforthintheCode, nytwenty-our (4)ourperiodinwhichaunitisoccupiedbyanovernightguest, xc lud ingoccupancyformaintenanceorresortbus iness.2) Rent for the purpose of calcu lat ing transitoccupancytaxforeachnightaUnitisoccupied sha l lrefertothea m o u n tofdailyrent asset forthandcalculated inparagraphs34,, 6above withoutregard tothetimingoramou n tofmonies actuallypaidtoWorldMarkbyitsm e m be r sforDues orotherwise.c) Waiver.ThefailureofanyPartytoexerciseanyright opowergivenitereunderortoinsistuponstrictcomp l iancewiththetermsofhisAgreementsha l lnotconstituteawaiveroft ha tParty'sighttodemandexactcompliancewiththetermshereofWaiverbyaPartyofanypar t icu lardefaultbytheothershallnotaffectorimpairitsrightswithrespecttoanysubsequentdefau l tsofth e sameorofadifferentkind; orshallanydelayoromiss ionbyaPartytoexercise anyrightsarisingfromanydefau l taffectori m p a i ritsrighta stosuch defau l tora nyfuturedefau l t .

d) Severance. Shou ldanypartofthisAgreem entbedeclaredinvalid orunenforceableforanyreason, itshallbeadjustedratherthanvoided, ifpossible,tochievethententofheParties. Ifsuchpartisdeterminedtobenvalidand/onenforceableanyremainderofsuchprovision,andoftheentireAgreem ent, ha l lremaininfullforceandeffect.

e) GoverningLaw.hisAgreementshallbeconstruedunderthelawsofheStateofCalifornia.f)ttorneys'Fees.Ifegalactioniscommenced toenforce ortodeclareth eeffectofanyprovisionofthisAgreem ent,h eprevailingParty (asdetermined bythecourt)ha l lbeentitled toanawardofreasonableattorney'seesandcosts incurredattrial, nappea l ,onpetitionforreview,orinany relatedbankruptcymatter.APartysha l la l sobeentitled toreasonableattorney'seesandcosts incurredtoenforceorcollectajudgmentoraward.g) ForceMajeureandUncontrollableEvents. IntheeventthatanactofGod,astrike,aockout,abortrouble, ninabi l i tyto procurematerials,afailureofpower,ariot,ninsurrection,awar,oranotherreasonoflikenature,notthefault owithinTrendwest 's

easonablecontrol (a isruption")esultsinTrendwest ' ncapacitytoconstructtheProjectatall,henthisAgreem entsha l lbenullandvoidandofnoforce10


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oreffect.ntheeventthataDisruptionimpac ts thisProjectandTrendwestonlyh as thecapaci tytoconstructPhaseIorapartthereof,hentheCityshallbeentitledtokeepallPlanReviewFeespaidbyTrendwestpursuanttothisAgreementandTrendwestshallnotb eentitledtoreceiveanyinsta l lmentsoftheTrendwestDifferencePaymentsetforthinSections8 (c)bove.Furthermore,hea m o u n tofTrendwest's uaranteeoftheTOTRefundassetforthinsection8 (g)hallbereducedfrom $43illionto $28illion.h) EntireAgreement.ThisAgreementcontainstheentireagreement betweentheParties.Anyandallverba lorwrittenagreementsm a d epriortothedateofthisAgreem entaresuperseded bythisAgreem entandshallhavenofurthereffect.Nomodificationorchangetothete rmsofthisAgreem entwillbebindingonaPartyunless inwritingandsignedbyanauthor ized representativeofthatParty.i)odification. Th isAgreementmaynotbemodifiedexceptbywritteninstrumentexecutedbytheParties. Totheextent,hatanydisagreementregarding thesem ant icsorformatofthisAgreementmayariseamongthePartieswithrespecttoanynononetaryissue,hePart ies understand andagreethatCity'sity

Managerwill negotiateonthe City'sehalfwiththeotherPartyinvolved inhedisagreementtowardm u t u a l l yacceptab leclarifyingamendmentstothisAgreem ent.j)ounterparts. This Agreem ent may be executed incounterparts,eachofwhichshallbedeemedanoriginalbutallofwhichtakentogethersha l lconstituteoneandthes a m eAgreement.k)Authorization. ThepersonsexecutingthisAgreementonbeha l fofthePart iesherebywarrantthattheyhavetheauthorityandaredulyauthor izedand aredulyauthor izedtoexecutethisAgreem entonbeha l fofthePartytheypurporttorepresentandcanbindthatPartytothisAgreement.1) CityDisclosure. T h eCity'salculat ionsastoanyamountsreferenced inthisAgreement (he "CityCalculations")ha l lbereflected inp u b l i c recordsm ainta inedbyCityinaccordwithapplicableCalifornialaw. UponproperrequestofTrendwestforrecordsreflectingCityCalcu la t ions,Cityshallcomplywithapp l icab leCalifornialawastotherecords'production. Inallevents,withinfifteen (15)aysofaTrendwestrequestfordataastoCityCalculations,heCityshallmakebesteffortstoc o m p l ywithsucharequest.

THISSPACEINTENTIONALLYLEFTBLANK


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m) Recitals. Therecitalssetforthabovearetrueandaccurateand incorporatedhereinbythisreference.

Title:

WORLDMARK,THECLUB,aCalifornia ATTEST:NonprofitMutualBenefitCorporation

INWITNESSWHEREOF,hisTrans ientO ccu p ancyTaxAgreem enthas beenexecutedasofthedayandyearfirstabovewritten.TRENDWESTRESORTS,NC., CITYOFINDIO,aCaliforniaa nOregonCorporation MunicipalCorporationBy: By: MichaelHilson,Mayor

By: By:Cynthia Hernandez ,Title: Depu tyCityClerk

WESTERNPACIFICRESORTDEVELOPMENT,aCaliforniaGeneralPartnershipBy: WilliamEwank,r.,artner Bv. EdwardZ.otkin,CityAttorney

12


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fIriiC8

Background


MeetingofOctober29,003

Honorab leMayorandM e m b e rsofCityCouncilO:THRU:

FROM:

DATE: October21,003SUBJECT: AwardofBidforAlleyReconstruct ionProjectandJacksonStreetImprovementsNorthofAvenue42

TomRamirez,CityManagerirModarressi,nterimDirectorofPublicWorks CityEngineer

Summary.ThisprojectinvolvesreonstructionofthealleysindowntownIndioand re-constructionofasegmentofJacksonStreetimmediatelynorthofAvenue42ontheeast side ofhe centerline. Bids will beopened onOctober 27, 2003,subsequenttothedateofwritingthestaffreport. BidsresultswillbepresentedtotheCouncilattheOctober29,003Councilmeeting.

The project scope involvesreonstruction ofhe existing alleyways in thedowntowncoreareaandstreetimprovementsontheeastsideofthecenterlineofJackson StreetfromAvenue42totheShadowHillsDevelopment tract. Re-construct ionwillinvolvepulverizationoftheexistingasphaltpavement,eusingpulverizeda s p h a l tforthebasecourseandconstructionofnewasphaltpavementoverthebasecourse. The schedulecalls forconstructionohe downtownalleywaystobecompletedbyDecember1,003.TheJacksonStreetsegmentm u s tbecom p letedbyDecember19,003.Sincebidswillbeopensubsequenttowritingthisreport, taffwillprepareasupp lementa lreportwiththebidsresu l ts fortheOctober29,003councilmeeting.

ITEM NO.2


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AgendaReportAwardofBidforAlleyRe- onstructionProjectandJacksonStreetImprovementsNorthofAvenue42Page2

FinancialConsiderations

Fundingforthisprojectwillbederived fromCIFRoadand BridgeFun ds .StaffRecommendation

T h a ttheCityCounci lreviewa nd award thebidtotheowestresponsibleb idder,pendingtheou tcomeofthebidresultsschedu led tobeopenedat10M onOctober27,003.


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SpecialCityCouncilMeeting 50pWCORPORATEL 1930

NOTICEOFSPECIALCLOSEDSESSIONANDCITYCOUNCILMEETINGNOTICEISHEREBYGIVENinaccordancewithGovernmentCodeSection54956.3thattheCityCouncilofheCityofndiowillholdaSpecialCityCouncil Meeting,includingaClosedSession,onWednesday,October29,003at50pmntheCityHallConferenceRoomat100CivicCenterMall,ndio. ThebusinesstoberansactedordiscussedathisSpecialCityCouncilMeetingandClosedSessionisdescribedherein.

PUBLICCOMMENTThis isth e t imesetasideforpub l iccomment, anopportunityformembersofthepublictodirectlyaddressthelegislativebodyconcerninganyitemthathasbeendescribedinthisnotice.Ifouwishtospeak, leasecompletearequesttospeak"ormandlimityourcommentstofiveminutes (ormswillbeavailableat45ptthecounterinCityHall).AftertheconclusionofthePUBLICCOMMENTsession,heCityCouncilwillADJOURNtoconveneinClosedSessiontoconsiderthefollowingmatters:6 ConferencewithLaborNegotiatorspursuanttoGovernmentCodeSection54957.6

regardingPoliceCommandUnit (PCU),ndioPoliceOfficersAssociation (POA)ndLaborers' nternationalUnionofNorthAmerica (LIUNA)ConferencewithLegalCounsel existinglitigationpursuanttoGovernmentCodeSection54956.9a:ityofIndiovs.ndioVenturePartners,CaseNo.NC034294;ConferencewithLegalCounselpursuanttoGovernmentCode,Section54956.9c:initiationoflitigation ( 1aseConferencewithLegalCounselpursuanttoGovernmentCodeSection54956.9banticipatedlitigation, ignificantexposuretolitigation, hree (3)asesDiscussionofpersonnelmatterpursuanttoGovernmentCodeSection54957: ublicEmployeeDscpnesmssaeease)ases

AftertheconclusionoftheClosedSession,heCityCouncilwillADJOURNbacktoandtherebycontinuetheSpecialCityCouncilMeetingat60p,ntheCouncilChambers,150CivicCenterMali,ndio,odiscussthefollowingmatters:1.ConsiderapprovinganamendmenttotheTransientOccupancyTaxAgreement

approvedonJuly30,003bytheCityofIndioastoTrendwestResorts,WesternPacificResortsandWorldMarkwhichprovidesforasharingoftheTOTrevenuecollectedbytheoperationofaVacationClubCITY01--;N)000 (EPDICCENTERMAT p (N,DRAwFip1788 wpm, 92202

DEPARTMENTTELEPHONENUMBERS,ALLIN7REPACODECityClerk.865437 CityMager342-580 EconomicDeveopmn/edevooprnent342-541Finance342560 nre3470 HumanResources342540iiCityHa.iiax34243556

Poiice347522Fax347317Engineering342-530 CityYiercl347eniorCenter347111


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2ConsiderawardingacontracttothelowestresponsiblebidderforthealleyreonstructionprojectandJacksonStreetimprovementsnorthofAvenue42

DATE: October23,003CITYOFINDIO

C THIAHERNANDEZDEPUTYCITYCLERK,CMC

CynthiaHernandez,DeputyCityClerkoftheCityofIndio,California,doherebydeclarethattheforegoingNoticefortheCityCounc i lClosedSessionandSpecialMeetingofOctober29,003waspostedontheoutsideentrytotheCouncilChamber, 50CivicCenterMallonOctober23, 003.4e

Cyn HernandezDeputyCityClerk, MC

DeclarationofPosting


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TO: MayorandCouncilTHRU: TomRamirez,CityManager


October29,003

FROM: RudyAcosta,EconomicDevelopmentDirectorJerryCarter, inanceDirectorSusanE. i l l iams,CommunityDevelopment Services/c/tBuildingandSafetyDirector

BY: EdwardZ.otkin,CityAttorney 6244DATE: October29,003SUBJECT: Consideration to Approve by Resolution a Transient OccupancyTaxTOT)greement.

APPLICANT: WorldMark,heClub,TrendwestResorts,nc.,WesternPacificResortDevelopment7860alleEstadoLaQuinta,CA92253

PROPERTYOWNER: Applicant

propertyinescrow seebelow)

PROJECTLOCATION: EastsideofGolfCenter

Parkway,NorthofLandmarkGolfParkway.

Ave43

Ave44

ITEM NO.


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CITYCOUNCILSPECIALMEETING OCTOBER2003Page2of3

SUMMARY:

LBHillsGolf,LCishepresentownerofthesite. Itsescrowastotheapplicant'spurchase ofthesite is scheduled to closewithin the nextfoty-gh (8)hours,contingentupontheCityCouncil'sonsiderationandapprovaloftheTOTAgreement.

OnJune25,003thePlanningCommissionapprovedaDesignReviewapplicationDR 0359or the construction of a 455-unit Vacation Club and residentialdevelopmenton273cresofvacantlandwithintheLandmarkGolfClub. OnJuly30,2003 the City passed ordinances approving a First Amendment to DevelopmentAgreement 96-80nd amending Specific Plan 96-87nd Project Master Plan96-80InlightofthenatureoftheproposedVacationClubresortthatwilloccupythesite,omaketheprojectfinanciallyfeasible, ndbasedupontherequirementsoftheCodeofIndio, the applicant subsequently proposed a Transient Occupancy Tax (TOT)Agreementwiththe Cityofndio. TheAgreementas proposed and approved inconceptbythisCouncilonJuly30,003providedforasharingoftheTOTrevenuetobegeneratedbytheproject.Exhibit A to this report contains the C i t y 'savorable financial analysis of thisAgreement. StaffhasworkeddiligentlyincooperationwiththeapplicanttoarriveattheprecisemutuallybeneficialtermsandconditionscontainedintheAgreementthatisattachedandncorporatedintheresolutionattachedheretoasExhibitBTheoriginalfailedhotelprojectthathadbeenapprovedforthesitealongwithitspotentialenvironmentalimpactswerethesubjectofanEnvironmentalAssessment96-870 adopted by the City Council on December 18, 1996. After review andassessment; staff has determned thatthere are no newoadditional significantenvironmentalimpactswhichwillresultfromthechangeintheprojectassociatedwiththe Vacation Club and residential development and that in fact, any significantenvironm enta l impactsassociatedwiththeoriginalhotelprojectmaybediminishedviathesubstitutionofaVacationClubandresidentialdevelopmentforahotel. Staffhasre0m m ended-ane s-fiidingha-nvionm e Asse m61qshouldbeconfirmedintakingtheactionrecommendedherein.Attachedtothisstaffreport, leasefindthefollowingdocuments:EXHIBITA ComprehensiveFinancialAnalysis, eonardRWolk, inancialAdvisortotheCityofIndioandPresidentofRealEstateAnalysisServicesC om p a n y (REASCO)EXHIBITB DraftRecommendedResolutionApprovingtheTOTAgreementinthisMatter (ncorporatingTOTAgreementasExhibitAthereto)


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CITYCOUNCILSPECIALMEETING OCTOBER29,003Page3of3

RecommendedActions

GiventhepositivefinancialimplicationsoftheproposedTOTAgreement,nlightofthefindingsreflectedinthedraftresolutioninthismatter, ndbaseduponanyinformationthattheMayorandCouncilmayelicituponconsiderationofthismatteratthisSpecialMeeting,staffrecommendsthattheCouncilapprovetheTOTAgreementbypassing,approvingandadoptingthedraftresolutionattachedheretoasExhibitB.


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IBITBRESOLUTIONNO.

RESOLUTION OF THE CITY COUNCIL, OF THE CITY OF INDIO,CALIFORNIA,APPROVINGARANSIENTOCCUPANCYTAXAGREEMENTWHEREAS,heCityofIndio ("Cty )ndLBHillsGolf,LChaveentered

into a FirstAmendmenttoDevelopmentAgreement96-0 (the "mendedDevelopmentAgreement")orthedevelopmentofa455ntacation ClubVacationClub")na273creparceloflandwithintheCity;ndWHEREAS, on July 30, 2003 the City passed ordinances amendingSpecific Plan 96-87roject Master Plan 96-80(he " ConformingEntitlements")ndtheAmendedDevelopmentAgreementinordertoconformprioragreementsandentitlementstotheproposedVacationClubinlieuofthepreviously-pprovedesorthotel;ndWHEREAS,heoriginalhotelprojectalongwithitspotentialenvironmental

impactswasthesubjectofanEnvironmentalAssessment96870doptedbytheCityCouncilonDecember18,996 (he "nvironmentalAssessment");ndWHEREAS,afterreviewandassessment; taffhasdeterminedthattherearenoneworadditionalsignificantenvironmentalimpactswhichwillresultfromthechangeintheprojectassociatedwiththisAmendedDevelopmentAgreementandtheConforming Entitlements, thatinact, anysignificantenvironmentalimpactsassociatedwiththisprojectmaybediminishedviathesubstitutionofaVacationClubforahotel,andthattheEnvironmentalAssessmentshouldbe

confirmedintakingthisaction;ndWHEREAS,nordertomakethisprojectfinanciallyfeasibleatthistime,TrendwesthasrequestedthattheCitysharethetransientoccupancytaxthatwillbecollectedfromthosewhooccupyandusetheVacationClub;ndWHEREAS,heCityhasdeterminedthatsuchsharing,onthetermsandconditionssetoutintheTransientOccupancyTaxAgreement, ttachedheretoasExhibitAandincorporatedbyreferenceherein,sinthebestinterestoftheCityinordertogeneratetaxrevenue, timulateresortdevelopment,andcreatejobsandbusinesswithintheCity.


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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF INDIO,CALIFORNIA,DOESHEREBYRESOLVEASFOLLOWS:1. The Recitals setforth abovearerue and correctand constitutethe

findingsoftheCityCouncilregardingthisagreement.2TheTransientOccupancyTaxAgreementinExhibitAsapprovedinsubstantiallytheformsetforththerein,withsuchrevisions, mendmentsandcompletionsasshallbeapprovedbytheCityManager, Economc

DevelopmentDirectorandFinanceDirector,withtheadviceoftheCityAttorney, uchapprovaltobeconclusivelyevidencedbytheexecution,upondeliverybytheCityManagertotheMayorfortheMayor'signature.3This Resolution and the approval of the Transient Occupancy Tax

Agreementshallbeeffectiveimmediately.PASSED,APPRO VED,andADOPTED this29dayofOctober2003, y

thefollowingvote:

ATTEST:

AYES:NOES:

CYNTHIAHERNANDEZDEPUTYCITYCLERK,CMC

MICHAELH ILSON,MAYOR


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ExhibitATo Resolution


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T 1 NSIENTOCCUPANCYTAXAGREEMENTCityofIndio,California

THISTRANSIENTOCCUPANCYTAXAGREEMENT ("greement")ismadeandenteredintoasofhis dayof 2003,byandbetweenTRENDWESTRESORTS,NC.,nOregoncorporation ("rendwest"),orldMark,TheClub,aCalifornianonprofitmutualbenefitcorporationwhichownsandoperatesresortsmarketed byT rendw est ("WorldMark"),ESTERNPACIFICR E S O R TDEVELOPMENT,aCaliforniageneralp artnership ("WesternPacific"),ndTHECITYO FINDIO,ACaliforniam un ic i pa lcorporation (Cty ).rendwest,WorldMark,WesternPacificandtheCitymayhereinafterbereferredtoindividuallyas "Party"rcollectivelyasthe "Parties."

RECITALS:

A TrendwestandWesternPacificaredeveloping,orintendstodevelop,avacationclubresort (he "Project")nthatcertain273creparcelofandidentified a sParcel2nExhibitAattachedheretoanddemarcatedonthesitem apattachedheretoasExhibitBandm a d eapartofthisAgreem ent (he "Property").

B. TrendwestandWesternPacifichaveenteredintoawrittencontractfordevelopmentandconstructionoftheProjectpursuanttowhichTrendwestistheownerandWesternPacificisthedeveloperandgeneralcontractor.

C. Trendwestisavacationsalesandmarketingc o m pa n ywhichacquiresresortssuchastheProjectandthereaftertransfersthoseresortstoWorldMarkinreturnformarketab levacationcredits ("acationCredits")hichauthorizetheownerthereoftooccupyanduseunitswithintheProjectforlimitedperiodsoftimebaseduponthenumberofvacationcreditspu rchased .D WorldMarkisanassociat ionwhosem e m b e r shavepurchasedvacationcredits fromTrendwestallowingthosem e m be r stooccupyanduseanyofth eresortsownedandoperated byWorldMark.WorldMark's emberspayannualmaintenanceassessm ents ("Dues )oWorldMarkbaseduponthen u m b e rofVacat ionCreditsowned.E UponcompletionoftheconstructionoftheProject,Trendwest.willconveyunitsintheProjecttoWorldMarkfortheuseandbenefitofWorldMark'smembers inthemannerdescribed above (eferencedindividuallyasa "Unt rintheaggregateasthe "Units").

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F. Al arties understandandagreethatpu r s ua n ttoIndioMunic ipa lCode 347,heCityimposesaTrans ientO ccu p ancyTax ("TOT )nhotelsandvacat ionclubresortssimilartotheProject.G. T h eCityh a sdeterm ined thattheProjectwillprovideap u b l i cbenefi tasitwillencouragetourismandcontributetotheeconom icdeve lopmentofth e

City, asapproved theProjectDesignReviewonJune25,003, ndh asmodifiedpre-exist inglanduseent it lem ents forthePropertytoconformtosaidenti tlem entstotheProjectonJuly30,003 (heapprova lofsaid DesignReviewandmodificationofsaident it lem entsreferenced intheaggregateasthe "Approvals").NOW, HEREFORE,nconsiderat ionoftherecitals, ovenants,agreementsa nd st ipu lat ions containedherein, ndothervaluableconsideration thereceiptand sufficiencyofwhichareherebyacknowledged,hePartiesdoagreeasfollows:

AGREEMENT

1. Construction and Use of Project. Trendwest and WesternPacific(eferredo collectivelyasthe "onstructionParties")agreetoonstructtheProjectonthePropertyinnotmorethanthree (3)hasesinamannerconsistentwiththeApprovals.

a) T h eProjectascomple tedwillconsistofuptoam a x i m u moffourhundredandfifty-ive (55)nits, onstruct ionofs a m etobecom p leted withinaperiodofno-oxceedeghyour (4)onths followingtheissuanceofthefirstCitybu i l d ingpermitfortheProject (he "onstructionPeriod").b) Notwi thstanding the lengthofheConstructionPeriod,TrendwestandWesternPacificcovenant thatconstructionofthefirstp haseoftheprojectincorporat ing notlessthantwo hundred andtwenty-gh (28)nits ("PhaseI"),togetherwithallProjectof-itemprovementsandtheontenfrastructurerelatedto

PhaseI,ncludingbutnotlimitedtooadwaysandparkingareas, utilities,Projectrecreational amenit iesandc o m m o nfacilities,etc. (he "haseImprovements")willb ecomp letedwithinaperiodofnottoexceedthrtysx(6)onthsfollowingtheissuanceofthefirstCitybuildingpermitfortheProject.c) IntheeventthatTrendwestoritsdesigneeseekstoalteritsdesignorconstruct ionplansaftertheCity'suildingdepar tmenthasactuallyissueda

permitinamannerwhichwouldrequiretheCitytoagainreviewthatpermitandomodifyitspermitapprovalresultinginasituationinwhichtheCitywouldtypicallychargeforthecostsincurred forthataddi t ionalreviewandapp rova land/onspections,Trendwestshallberespons ib leforpayingsuchadditionalcostsinadditiontothecostssetforthinSection8 (b,elow.

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d) T h elifeofanyandeach Trendwestpermit, otwithstandingthetimingofTrendwest's aymentof "lanReviewFees"ssetforthbelowinSection8a),hallnotcommenceuntilsuchtimeastheCity'suildingdepar tmentactuallyissuesthepermitp u r su an ttoitsreviewandapprova lprocess.e) Trendwest agrees to convey Units in the Project to

WorldMark.WorldMarkagreestoacceptandoperatetheUnitsinaccordancewiththetermsofthisAgreementandtheApprovals.2 Application ofhe Code. The City hereby represents and

WorldMark hereby acknowledges that the Code ofndio (the "Code")ets forthWorldMark's

bligationtopayTOTandanyapp l i cab lesubsequentusefeeleviedbyth eCityinplaceorinsteadofheTOT. TheProjectisa otel"ndWorldMarkisanOperator"sdefinedinCodeSection34.6ndthereforesha l lbesub jec ttotheCity'sUniformTransientOccupancyTaxOrdinance.WorldMarkherebyundertakes andaccepts thatTOTp aymen tsto

theCityshallbedeterminedbymultiplyingtheRentasdefinedhereinattributabletoeachUnitoccupiedduringanygivenreportingperiodbytheTOTratesetforthintheCode. TheUnitswillremainsubjecttopaymentoftheTOTuntilsuchtimeastheCodeiseitherrepealedoramendedsuchthattheUnitsarenolongeroperatedasavacationcluborothertypeoftransientoccupancyusesubjecttotheCode.Exceptasotherwisespecif ical ly set forth in this Agreement, WorldMark and Trendwest, including allsuccessorsandassignsthereof, greetobeboundbytheprovis ionsoftheCodedeal ingwithTOTandanyapp l i cab lesubsequentusefeeleviedbytheCityinplaceorinsteadofthe TOT, inc lud ing without limitation, those Code sections pertaining to annualregistrationcertificates, enaltiesfordelinquentpayments,efunds, andviolations.npay inganysubsequen tusefeeapp l i cab le totheUnitsundertheCode,hecalcu lat ionsofRentsetforthhereinshallgoverninthes a m emannerasfortheTOT.

3. RentsandTOTCalculation. Thedailyrent ("Rent )nwhichtheTOTrateistobeinitiallyappliedshallbeequaltotheamountoftheDuesassociatedwiththen u m b e rofVacationCreditsrequiredforaone (1eekstayatthatpart icu larUnitdividedbyseven (7).heVacationCreditrequi rem entssetforthbelowinSection5andtheDuesstructuresetforthinSection6,elowwillbeusedtocalculatetheRentfortheinitialyearofoccupancyofaUnit.

Rent comm encing on the first day of each successive yearthereaftershallbecalculatedbyadjus t ingthebaserentstructurethenineffectbyth eamountofhencreaseinheannualConsumerPriceIndexfoallurbanconsumerspub l i shedbytheBureauofLaborStatistics,UnitedSta tesDepar tm entofLaborfortheStateofCalifornia,LosAngees/versde/angeountyCaliforniaRegion,overtheindexforthenextprecedingyear.TheTOTpayab letotheCityshallbedeterm inedbymul t ip ly ing thedailyRentat t r i butab letoeachUnitoccupiedduringanygivenreportingperiodbytheTOTratesetforthintheCode.

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4. Vacation Credit Allocation. Each member will be entitled tooccupythefollowingtypesofunitsforoneweekforeachspecifiednumberofVacationCreditsowned:

VacationCredits Peak-Hghoweason UnitType5 Dues Structure. WorldMarkmembersarechargedDues basedu p o nthenumberofVacationCreditsownedbythemember.Duesaresub jec ttochangefromtim-toimytheWorldMarkboardofdirectors.SincethedatetheProjectwillfirstbeoccup ied andtheDuesstructure,whichwillbeineffectatthattimeareuncertain,th ePart iesagreethattheDuestobeutilizedincalcu lat ingtheRentforthefirstyearofoccupancyshallbeasfollows:

700/500900/70011000900130001000180006000VacationCredits50 0501to700701to10,0010,01o12,0012,01o15001501o17,0017,01o20,00

Peak-Hghoweason

Studio1Bedroom2Bedroom3Bedroom3BedroomPenthouse

Dues

274357440523606689772

6. ExampleofPaymentofRentCalculation.BasedCreditsownedandtheDuesstructuresetforthinParagraphs4nds t ud ioUnitPeak-gheasonduringtheinitialyearofoccupancycalculatedasfollows:700VacationCreditsperweekequa l s $35700dividedby7days,whichequa l s $510ernightinRent.Rentequ iva lencyfortheunittypesattheserateswouldbeasfollows:

Studio $ 5109.41Bedroom 62.86102Bedroom 74712.63Bedroom 86.57413BedroomPenthouse 110298.3

upontheVacation5,heRentforawouldbe $510,perweekinDues,

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IfTrendwestorWorldMark,ncludinganysuccessorsorassignsofeitherofthem,ubsequent l yrentsaUnittothegeneralpublicfora "ernight"eeorcharge,hefullamountofsuchrentshallbesubjecttotheTOTprovisionsoftheCode.

34.41:7. WorldMarkReturntoheCity. AsrequiredbyCodeSection

a) WorldMark, on o before the last day ofhe monthfollowingthecloseofeachcalendarquarter,oratthecloseofanyshorterreportingperiodwhichmaybeestab l ished bytheCity'saxAdministrator" sdefinedinSection34.36ftheCode,hallmakeareturntosaidTaxAdministrator,onformsprovidedbyhimorher,ofthetotalRentandtheamou n t softaxcol lectedfortransientoccu p ancies (aReturn").

b) AtthetimeWorldMarkfilesitsReturn,WorldMarkshallremitthefullamountofhetaxcollectedtoheTaxAdmnistrator.c)The Tax Admnistrator may establish shorter reportingper iodsforWorldMarkifheorshed e e msitecessaryinordertoinsurecollectionofth etaxandheorshemayrequirefurtherinformationinWorldMark's eturn.

d) WorldMarkReturns andpaymentsaredueimmed ia te l yuponcessat ionofbus inessforanyreason.

e) WorldMarkshallholdalTOTcollectedinrustfortheaccountoftheCityuntilpaymentthereofismadetotheTaxAdministrator.f)hisSection7isnotintended,andshallnotbeconstrued,toexpandWorldMark's egalobligationstotheCitybeyondthosesetforthintheCode.8. Obligations. Inconsiderat ionoftheconstructionandoperationof

theProjectbyWesternPacific, rendwestandWorldMarkrespectively,andtheCity'sfacilitationofsaidconstructionandoperationviathisAgreement,hePartiesagreeasfollows:

a) As aconditionprecedentto City'serformanceofanyobl igat ionpursuanttothisAgreement,TrendwestshallprepayanyandallCitysiteplanreview,buildingpermit, lancheck, ndotherfeesinconjunctionwiththeconstructionoftheentireProject (ereinafterreferredtoas "PlanReviewFees"). hisconditionprecedentwillrequireprepaymentofonehundredpercent (100%fthePlanReviewFeescorrespondingtoallProjectUnitsandfacilitiestobeconstructed,egardlessofphasing. Trendwes tshallmakethisprepaymentinfullonorbeforeDecember31,004.TheamountofthePlanReviewFeesshallbeassetforthinthefeeschedu leinp laceduringNovember2002.

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b) OtherthanassetforthinSection1 (c),bove,noneworaddi t ional feesbeyondthePlanReviewFeeswillbemposedontheProject. Thisl im itat iondoesnota p p l ytoresidentialdevelopmentofthePropertybeyondtheProject.c)City shall make certain payments funded pursuant toSection8 (e)elowtoTrendwes tand, ssetforthinSection8 (f)elowtoWesternPacific, duringtheperiodcommencingonthessuancedateofhelastcertificateofoccupancyassociatedwithPhaseI (he "nitiationDate"),ndendingonthetenthanniversaryofhei ssuanceofhelastcertificateofccupancyintheproject (theT erm inat ionDate").ntheaggregate, hepaymentsdetai led inthisSection8 (c (through (3nclusivearereferenced hereinas the "rendwestPayment."ntheaggregate,th epayments detai led inthisSection8 (c) ()hrough (7)nclus ivearereferencedhereina sthe "rendwestDifferencePayment." TheTrendwestPaymentandtheTrendwestDifferencePaymentshallbemadeasfollows:

1) Onorbefore30daysfromtheInitiationDate,heCitywillpayTrendwestasumequaltoaprorated portionof $200,000.2) O norbeforeth eendofth e12month followingth eInit iat ionDate,heCitywillpayTrendwestasu m equa ltoaproratedportionof100,003) O norbeforeth eendofth e24month followingth eInitiationDate,heCitywillpayTrendwestas u m e q u a ltoaproratedportionof558,500.4) EachoftheTrendwestPaymentins ta l lm ents

describedaboveshallbeproratedbasedupontheratioofUnitswithacertificateofoccupancyattheendofthePhaseIothem a x i m u m n u m b e rofUnits,orwhichTrendwestpurchasedperm i tspu rsuanttoSection8(ab ove (eg,frendwestsecures283certificatesofoccupancybytheendofPhaseI [62.2%f45 5Units],itywill payTrendwest: (A $14400 [$200,0062.2%norbefore30days fromth eInitiationDate, (B) $22,00 [$100,0062.2%norbeforetheendofthe12month followingtheInitiationDate, nd (C $47,87 [$580062.2%norbeforetheendofth e24month followingth eInitiationDate).5)heTrendwestDifferencePaymentequa ls threem i ll ionfivehundredfifty-ghhousand fivehundreddol lars ($ 5800i nus theTrendwestPayment. CityshallpayTrendwest56%ftheTrendwestDifferencePaymentonorbeforethirty (30)aysafterthei ssuancedateofthelastcertificateofoccupancyassociatedwithth eProject'sastphase (he "astPhaseConclusionDate").6)ityshallpayTrendwest28%ftheTrendwestDifferencePaymentonorbeforeth eendofth e12month followingth eLastP h a s eConclusionDate.

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7)ityshallpayTrendwest16%ftheTrendwestDifferencePaymentonorbeforetheendofth e24month followingth eLastP h a s eConclusionDate. 8)hePartiesintendandagreethatthesumofth eTrendwestP a y m en tplustheTrendwestDifferenceP a y m en tshallinalleventsbeequaltothreemillionfivehundredfifty-ghhousand fivehundred dollars ($58,500).d) Inhe eventthatCityfundsarerequiredtoake anyinsta l lmentoftheTrendwestPaymentortheTrendwestDifferencePayment,i.,nypaymentspecifiedinSection8 (c) (1hrough (3)nclusiveando (5hrough (7)inclusive ("nstallmentFunds"),renotava i lab leasspecifiedinSection8 (e)elowonthedatetheinstallmentisdue,CityshallpaysuchInstallmentFundstoTrendwestwithinthirty (30)aysofthedatewhentheInstallmentFundsbecomeavailableascalculatedbyCity'sirectorofFinanceinhisorherreasonab lediscretion.

e) CityshallmaketheIncentivePaymentsandtheWesternPacificPaymentsexclusivelyfromrevenuescollectedfromtheTOTpaymentscollectedpursuanttohisAgreementandtheCode. City'saymentinullofheIncentivePaymentsshallbeaconditionprecedenttotheWesternPacificPayments. ThisconditionprecedentshallapplyregardlessofpaymentofanyportionoftheIncentivePaymentsm o r ethantwentyour (4)onthsaftertheLastPhaseConclus ionDate. However,otheextenttheTOTrevenuesdonotcompletelyfundtheIncentivePaym entsobligation,Cityshall,toheextentpermittedbytheCode, sePlanReviewFeestomaketheIncentivePayments. ExceptasprovidedinthisSection8 (e,oportionoftheIncentivePaymentsshallbepaidfromCityGeneralFundmonies.

After its payment in full of all installments of theTrendwestPaymentandtheTrendwes tDifferencePaym ent (eferencedcollectivelyasthe "ncentivePayments")romfundsava i lab lep u r su an ttoSection8 (e)bove,CitywillretainallTOTrevenuereceivedfromtheProject,untilthepointintimewhen45%fth eaggregateTOTrevenuereceivedbytheCityexceeds thetotalamountoftheIncentivePayments,i..,hree mllionfive hundredfifty-gh thousand five hundred dollars358,500 he "WesternPacificTriggerDate"). ftertheWesternPacificTriggerDate, ndthroughoutthefirstyearthereafter (he "WesternPacificTriggerYear"),itywillpaytoWesternPacificthedifferencebetween45%ftheaggregateTOTrevenuereceivedbytheCityandthetotalamountoftheIncentivePayments,i.,hreemillionfive hundred fifty-ight thousand five hundred dollars ($358,500.n all yearssubsequenttotheWesternPacificTriggerYearcontinuinguntiltheTerminationDate,theCitywillpaytoWesternPacific45%ftheannualTOTrevenuereceivedbytheCity. T heCitypaymentstoWesternPacif icduringtheWesternPacif icTriggerYearandthereafterarecollectivelyreferencedhereinasthe "WesternPacificPayments."

g) Subjectto Sections8(hnd 11 (g)elow, rendwestanticipates, asedonitsoccupancyhistoryatotherresorts,hatthePropertywillenjoyoccupancyaveraging75%rmorefromthedateofthei ssuanceofthefinalcertificateof7


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occupancy throughthetenthanniversarythereafter. Ontheearlierofthedatefive (5yearsaftertheLastPh a s eConclusionDateorDe c e m be r31,012, (he "OTReviewDate"),itywillca lcu la tewhethertheaggregateTOTrevenuecol lected fromtheProjectthe "nitialTOTRevenue")qualsoexceedsfourmillionthreehundredthousanddol lars ($4 0000 (he "nitialTOTProjection").IfontheTOTReviewDate,heInitialTOTRevenueisessthantheInitialTOTProjectionandTrendwesthasreceivedtheIncentivePa ym ents, rendwestshallwithinsixty (60)aysoftheTOTReviewDatethe "TOTRefundPeriod")efundandpayCityinfullthedifferencebetweentheInitialTOTRevenueandtheInitialTOTProjection (he "OTRefund").TheTOTRefundPeriodmaybeshortenedorextendedbymutualwrittenconsentofTrendwestandCity.Inexecut ingthisAgreement, rendwestuncondi t ional lyguaranteesitspaymenttoCityoftheTOTRefundifi rcumstancesdescribed inthisSection8 (g) (partfromoccupancynotaveraging75%morefromhedateofhessuanceofhefinalcertificateofoccupancythroughthetenthanniversary thereafter) rise.

h) IntheeventthatTrendwes tdetermines thatcompletionoftheProjectisnolongereconom ical lyviable, rendwestmayterminatetheProject'sconstruction. IfnoportionoftheProjectisconstructed,hisAgreementshallbenullandvoidandofnoforceoreffect. However,nthatevent,otheextentTrendwesthasnotalreadypaidtheCityforsuchcostsatthetimeiterminates theProject, rendwestsha l lre imburseCityforactualcostsincurredasaconsequenceofCity'sonsiderationofallm at tersrelatedtotheApprovalsandthisAgreement. IntheeventthatTrendwestonlyconstructsPhaseIonsistingofapprox imate lytwohundreda ndeghyhee (83)nitsoranyportionthereof,hen (AheCityshallbeentitledtokeepallPlanReviewFeestob epaidbyTrendwes tpu rsuanttothisAgreement; (B)rendwestshallnotbeentitledtoreceiveanyinsta l lmentsoftheTrendwestDifferencePaymentsetforthinSection8 (c)above;and (CheamountofTrendwest's uaranteeoftheTOTRefundassetforthinsect ion8 (g)hallbereducedfrom $43illionto $28illion.9. Indemnification.Tothefullestextentpermittedbylaw,hePartiessha l lre imburse,ndemnify,andholdtheotherPart iesandtheiragents, mployees ,officers,electedofficials, nddirectors, harmlessfromandagainstallclaims, amages ,osses,fines, enalties,udgments, wardsandexpenses,ncludingbutnotlimitedtoreasonableattorney'see s forcounselacceptabletotheindem nifiedParty, risingoutoforresult ingfromtheindem nifyingParty'sreachofthisAgreem entortheindem nifyingParty'snegligenceorintentionalmisconduct (ncludinganybreach, egligenceorintentionalmisconductbyindependentcontractorshiredbytheindem nifyingParty).Trendwestfurthershallindemnify,holdharm less ,andpayallcostsforthedefenseofth eCity,ncludingfeesandcosts forspecialcounseltobeselectedbytheCity,egarding anyactionby any member ofthevacationclub resort challengingthevalidity ofhisAgreement,oassertingthatpersonalinjury, damages,ustcompensation,estitution,j ud ic ia lorequi tab lereliefd u etopersonalorproper tyrightsarisesbyreasonofthetermsof, reffectsarisingfromthisAgreement. Citymaymakeallreasonabledecisionswithrespecttoitsrepresentat ioninanylegalmatter.

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10. AlternativeDisputeResolution. IfadisputearisesbetweenCityand Trendwest WorldMark and Western Pacific ( collectively "Developer" for thisSection10only)egardingthemaking,ormation,nterpretation,orperformanceofth isAgreement,CityandDeveloperagreetoadheretothedisputeresolutionprotocolasdel ineatedandexp la inedherein.a) NEGOTIATION: CityandDeveloperwillmakeagoodfaithefforttoresolveanyclaimorissueastothisAgreement,hroughnegotiation.b) MEDIATION: IfCityandDevelopercannotresolvesuchaclaimorissueastothisAgreement,hroughnegotiation,henthatclaimorissueshallbethesubjectofmediation, dm inistered byamediator.c) LITIGATION (Limted):CityorDevelopermaypursueanactionatlaworinequity,withrespecttoalaimorissueastothisAgreement,hathasbeensubjecttomediation,onlyasspecifiedbelow.AnymediatoradministeringproceedingspursuanttothisAgreementshallbeselectedfromtheosteroheLos Angeles, California officeohe AmericanArbitrationAssociation,hereinafter "theAAA,ndmustbedeemedacceptablebyallinvolvedParties. Mediat ionpu r s ua n ttothisAgreem entshallbeconducted pu r s ua n ttotheAAA'sCommercial Dispu te Resolution Procedures ( Including Mediation and ArbitrationRules)"as amended and effective on Ju ly 1, 2002, or alternatively, such AAACommercialMediationandorbitrationRulesasmaysupercede. TheAAAOptionalRulesforEmergencyMeasuresofProtectionshallapplytoproceedingspursuanttothisAgreement.Nomediator(s hallhavethepowertomakeanyawardnconsistentwith, rcontrarytothetermsandprovisionsofthisAgreement. Awrittenset tlem entexecutedbythePartiesatmediationmaybeenteredinanycourthavingjurisdictionastotheissueastothisAgreement, inquestion. ThecostsandexpensesofanyPartythatinitiateslitigationtoenforcesuchawrittensettlement,ncludingbutnotlimitedtofullreasonableattorney'seesofaprevailingPartyidentifiedassuchinthewrittensettlement, hallb eborneandpaidbytheParty(es)hodonotprevailtherein. ThesubmissiontomediationofanymatterpursuanttohisSectionisherebymadeaonditionprecedenttoheinstitutionofanyactionatlaworinequityastoanyi ssueastothisAgreement.NoPartyshallinstituteanactionatawoinquity, withrespectto anymattersubjecttomediationpursuanttothisSection10untilafterthecompletionofmediation.

DeveloperInitialsTrendwest)

DeveloperInitialsWorldMark)

DeveloperInitialsWesternPacific)

CityInitials

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11. Miscellaneous.

a) HeadingsandCaptions. T h eheadingsandcapt ions inthisAgreementareforconvenienceonlyandshallnotbereferred tointheinterpretationofthisAgreement.b) Definitions. WhenusedinthisAgreement,hefollowingterm sshallhavethemean ingsetforthherein:

1) Occupancy",orthepurposeofcalculatingTOT,sha l lmean,assetforthintheCode, nytwentyour (4)ourperiodinwhichaunitisoccupied byanovernightguest, xcludingoccupancyform aintenanceorresortbus iness .2) Rent for the purpose of calculat ing transitoccupancy taxforeachnightaUnitisoccupiedshallrefertotheamountofdailyrentassetforthandcalculatedinpa ragraphs34,, 6above withoutregardtothetimingora m o u n tofmoniesactuallypaidtoWorldMarkbyitsm e m b e r sforDuesorotherwise.

c) Waiver.ThefailureofanyPartytoexerciseanyrightorpowergivenitereunderortoinsistuponstrictcompliancewiththetermsofhisAgreem entshallnotconstituteawaiverofthatParty'sighttodemandexactcompl iancewiththetermshereofWaiverbyaPartyofanyparticulardefaultbytheothershallnotaffectorimpairitsrightswithrespecttoanysubsequen tdefaultsofthesameorofadifferentkind; orshallanydelayoromiss ionbyaPartytoexerciseanyrightsarisingfromanydefaultaffectorimpairitsrightastosuchdefaultoranyfuturedefault.

d) Severance. Shou ldanypartofthisAgreem entbedeclaredinvalid orunenforceableforanyreason, it shallbe adjusted ratherthanvoided,fpossible,oachievethententofheParties. Ifsuchpartisdeterminedtobenvalidand/onenforceableanyremainderofsuchprovision, ndoftheentireAgreement, ha l lremaininullforceandeffect.

e) GoverningLaw.hisAgreementshallbeconstruedunderthelawsofheStateofCalifornia.f)ttorneys'Fees.Ifegalactioniscommenced toenforceortodeclaretheeffectofanyprovis ionofthisAgreem ent,heprevai l ingParty (asdeterminedbythecourt)ha l lbeentit ledtoanawardofreasonableattorney'sees andcosts incurredattrial, nappeal,onpetitionforreview,orinanyrelatedbankruptcymatter.APartyshallalsobeentitledtoreasonableattorney' eesandcosts incurredtoenforceorcollectajudgmentoraward.g) ForceMajeureandUncontrollableEvents. IntheeventthatanactofGod,astrike,aockout,abortrouble, ninabilitytoprocurem ateria ls, afailureofpower,ariot,ninsurrection,awar,oranotherreasonoflikenature,notthefaultorwith inTrendwest'seasonablecontrol (a isruption")esul ts inTrendwest' ncapacitytoconstructtheProjectatall,henthisAgreem entshallbenullandvoidandofnoforce

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oreffect.ntheeventthataDisruptioni mp ac t s thisProjectandTrendwestonlyhasthecapaci tytoconstructPhaseIorapartthereof,hentheCityshallbeentitledtokeepallPlanReviewFeespaidbyTrendwestpursuanttothisAgreementandTrendwestshallnotb eentitledtoreceiveanyinsta l lm entsoftheTrendwestDifferencePaymentsetforthinSections8 (c)bove.Furthermore,heamountofTrendwest's uaranteeoftheTOTRefundassetforthinsection8 (g)hallbereduced from $43illionto $28illion.h) EntireAgreement.ThisAgreementcontainstheentireagreementbe tweentheParties.Anyandallverbalorwrittenagreem entsmadepriorto

thedateofthisAgreementaresupersededbythisAgreementandshallhavenofurthereffect.NomodificationorchangetothetermsofthisAgreementwillbebindingonaPartyun lessinwritingandsignedbyanauthorizedrepresentat iveofthatParty.i)odification. ThisAgreem entmaynotbemodifiedexceptbywritteninstrumentexecutedbytheParties. Totheextentthatanydisagreem entregarding thesemanticsorformatofthisAgreementmayariseamongthePartieswithrespecttoanynononetaryissue,hePartiesunders tandandagreethatCity'sityManagerwillnegotiate onthe C i t y 'sehalfwthhe otherPartyinvolved inhedisagreement towardmutuallyaccep tab leclarifyingamendments tothisAgreement.

Counterparts. This Agreement may be executed incounterparts,eachofwhichshallbedeemed anoriginalbutallofwhichtakentogethersha l lconstituteoneandthes a m eAgreement.k)Authorization. ThepersonsexecutingthisAgreementonbehalfofthePartiesherebywarrantthattheyhavetheauthorityandaredulyauthor i zedand aredulyauthor izedtoexecute thisAgreem entonbehalfofthePartytheypurporttorepresentandcanbindthatPartytothisAgreement.

CityDisclosure. T h eCity'salculat ionsastoanyamoun tsreferencedinthisAgreem ent (he "CityCalculations")hallbereflected inpublicrecordsm ain ta inedbyCityinaccordwithapplicableCalifornialaw. UponproperrequestofTrendwestforrecordsreflectingCityCalculations,Cityshallcomplywithapp l icab leCalifornialawastotherecords'production. Inallevents,withinfifteen (15)aysofaTrendwestrequestfordataastoCityCalculations,heCityshallmakebesteffortstocomplywithsucharequest.

THISSPACEINTENTIONALLYLEFTBLANK

1 1


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m) Recitals. Therecitalssetforthabovearetrueandaccurateand incorporatedhereinbythisreference.INWITNESSWHEREOF,hisTransientOc c upa n c yTaxAgreem enthasbeenexecutedasofthedayandyearfirstabovewritten.

TRENDWESTRESORTS,NC., CITYOFINDIO,aCaliforniaanOregonCorporat ion Mun ic i pa lCorporat ionBy: By:

MichaelH ilson,MayorTitle:

WORLDMARK,THECLUB,aCalifornia ATTEST:NonprofitMutualBenefitCorporationBy: By:

CynthiaHernandez,Title: DeputyCityClerkWESTERNPACIFICRESORTDEVELOPMENT,aCaliforniaGenera lPartnershipBy:

WilliamEwank,Sr.,artner

By:EdwardZ.otkin,CityAttorney

12


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CTYOFINDOr..

HonorableMayorandMembersofCityCouncilO:THRU:

FROM: AmirModarressi,nterimDirectorofPublicWorks CityEngineerDATE: October21,003SUBJECT: AwardofBidforAlleyReconstructionProjectandJacksonStreetImp rovements NorthofAvenue42

Background

TomRamirez,CityManager

CITYOFNDIOAGENDAREPORT

MeetingofOctober29,003

SummaryThisprojectinvolvesreonstructionofhealleysinowntownIndioandre-constructionofasegmentofJacksonStreetimmediatelynorthofAvenue42onthe east side ofhe centerline. Bids will be opened on October 27,2003,subsequen ttothedateofwritingthestaffreport. BidsresultswillbepresentedtotheCouncilattheOctober29,003Councilmeeting.

The project scope involvesreonstruction ofhe existing alleyways in thedowntowncoreareaandstreetimprovementsontheeastsideofthecenterlineofJackson StreetfromAvenue42tothe ShadowHillsDevelopment tract. Re-constructionwillinvolvepulverizationoftheexistingasphaltpavement,eusingpulverizedasphaltforthebasecourseandconstructionofnewasphaltpav e me n toverthebase couse. Theschedule calls forconstruction ofhe downtownalleywaystobecompletedbyDecember1,003. heJacksonStreetsegmentmustbecompletedbyDecember19,003.Sincebidswillbeopensubsequenttowritingthisreport, staffwillprepareasupp lementa l reportwiththebidsresultsfortheOctober29,003councilmeeting.

ITEM NO


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AgendaReportAwardofBidforAlleyRonstructionProjectandJacksonStreetImprovementsNorthofAvenue42Page2

FinancialConsiderations

Fund ingforthisprojectwillbederivedfromCIFRoadandBridgeFunds.StaffRecommendation

ThattheCityCouncilreviewandawardthebidtothelowestresponsiblebidder,pendingtheoutcomeofthebidresultsscheduledtobeopenedat10M onOctober27,003.


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Date:October23003CITYOFINDIO ze.c7CY THIAHERNANDEZDeputyCityClerk, MC

C hiaHernandezeputyCityClerk,CMC

2

MCORPORAT 1 0 I931

NOTICE OFJOINTCITYCOUNCLLANNNGOMMISSION

STUDYSESSIONNOTICEISHEREBYGIVENtheIndioCityCouncilandthePlanningCommissionwillmeetJointly inaStudySessiononOctober29,2003at60pntheCouncilChambers,ocatedat150CivicCenterMall,ndio,odiscussthefollowingmatters:

MixedUseSpecificPlan (300),ighway111corridorandotherzoningdistrictsregardingvariouslandusesZoningOrdinanceandpoliciesregardinglandscapingAlleywaysFutureHighway111Improvements/eneediansInfrastructureAssessmentDistricts

DeclarationofPostingI,ynthiaHernandez,DeputyCityClerkoftheCityofIndio,California,doherebydeclarethattheforegoingNoticefortheJointCityCounc /annngommissionStudySessionofOctober29,003waspostedontheoutsideentrytotheCouncilChamber, 50CivicfnterMallonOctober23003.CITYOFINDIO2100CIVICCENTERMALL P, AVAJER1788 LINNA92202

DEIPARTMENT TELEPH oNENU BFRSLLiN760AIREACODECityClerk865437iCityManager342580 EconomicDeveopmn/edeveoprnent342541Finance3425600Fre347756i UmanResources342540 CityHailFax342556

Police347522ax347317EiEnginetering342-530 CitVYard3474058 SerCenter347111


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CTYOFINDIO

STAFFREPORTCityufiIndioJointCityCouncilandPlanningCommission

StudySessionofOctober29,003

ProposedAmendmenttotheMixedUsedSpecificPlan (300)ndotherzoningdistrictsregardingvariouslanduses

APPLICANT: CityofIndioPROJECTLOCATION: Highway111 Corridor.CityofIndioGenera lPlan2020PlanningSub -areaNo.PROJECTDESCRIPTION: Init iateamendmentoftheMixedUseSpecificPlan (300)oproh ib i tmed ica lofficesandplacesofworshipinMUSP -300andinitiate

amendments regarding various land uses in other zonesth roughoutthecity.


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MUSP300mendmentCITYCOUNCILANDPLANNINGCOMMISSIONJOINTSESSION OCTOBER29,003

PROJECTSUMMARY:

Thepurposeofthisstudysessionistoreviewtherequirem entsoftheMUSP-00nds o m e landuseswithinthecity,nclud ingoffices, hriftshopsandplacesofworship.thasbeensuggested thattheCityofIndioupdatetheMUSP-00rovisionsrelativetomedica lofficeusesandplacesofworship.tisthecontentionoftheCitystaffthattheseusesarenotakinwiththevisionforthisimportantentrycorridorintotheCity.heintentionofthisstudysessionistoreceiveinputfromtheCityCouncil, taffandthepublic to assist in the draft of an Ordinance for consideration b y the PlanningC ommiss iontoregulate "lacesofworship" nd "medicaloffices"ntheMUSP300.O neal ternat ivefortheproposedordinance wouldbetoamendthespecificplantexttorequirethat placesofworship" nd "medicaloffices"hallbeprohibitedintheMUSP300.naddition,heCommunityDeve lopmentDirectorhasrequested theseland usesbeexaminedinotherzoningdistrictsthroughoutthecity.PROCESS:

INITIATION:ThePlanningCommissionmayinitiateproceedingbymotionandthenholdpublichearingsandmakeaecommendation.TheCityCouncilmayinitiatetheproceedingsbymotionandthensubmitthemattertothePlanningCommissionforpublichearings.TheCommunityDevelopmentDepartmentshallmakeaeviewoftheproposa landshallprepareareportthereonwhichshallbesubmittedtothePlanningCommiss ion priortothepublichearing.ACTIONBYTHEPLANNING COMMISSION:Within21daysofthepublichearing,hePlanningCommissionshallmakeaspecificfindingsastowhetherthetextamendmentisconsistentwiththeobjectivesofthistitleandtheadoptedgeneralplan, ndshallrecommend thatthep rop osa lbeadopted, doptedinm odi fied form,orrejected.ACTION BYTHECITYCOUNCIL:TheCityCouncilshallholdatleastonepublichearingontheproposalwithin40daysafterreceiptofthe reportofhe PlanningCommssion.The hearing shall besetand notice given as prescribed in Chapter159.05hrough159.09.ithin21daysfol lowingtheclosingofthepublichearing,h eCounci lshallmakeaspecificfindingsastowhetherthechangeisconsistentwiththeobject ivesofthistitle.ftheCouncilfindsthatthechangeisconsistent,tshallintroduceanordinanceamendingthespecificplantext.ftheCouncilfindstheproposalisnotconsistent,tshalldenytheapplicationorrejecttheproposal.TheCouncilshallnotmodifyaecisionofthePlanningCommiss ion recommendingadoptionofhetextamendmentuntilithasrequestedandconsideredaeportoftheCommissiononthemodification,unlessthem odi ficat ionhadbeenconsideredbythePlanningCommiss iondur ingitspublichearingonthematter.FailureoftheCommi ss i ontoreportwithin40daysafterreceiptoftheCouncilrequestshallbedeemedconcurrence.

Page2


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MUSP300mendmentCITYCOUNCILANDPLANNINGCOMMISSIONJOINTSESSION OCTOBER29,003

ANALYSIS:The proposedspecificplan amendmentwould establish land useprohibitionsandregulationsandw o u l dhaveani m p a c tonexist ingmed ica lofficesandp lacesofworshipwh ichwillbecome "egalnononformng"sesandwillthereforebeimitedintheirabilityto expand o relocate in the MUSP-300area. The proposed specific p l anam e n dm e n twouldprovidetheCityanopportunitytoreviewforapproval, ondit ionalapprovalodisapprovalofheselanduses.ThecurrentlandusestandardfortheMUSP300anbefoundonAttachmentATheCityofIndiozoningordinanceprovidesopportunitiesfor "medicaloffices"oocatein the Neighborhood Commercial ( NC),Community Commercial ( CC),RegionalCom m ercia l (RC,owntownCom m erc ia l (DC)ndCommerc ia lOffice (CO)istricts.Places of worship are permitted in Regional Commercial (RC) and DowntownCom m erce (DC)istricts.Acomp le telistofzoningdistrictsthatpermit,onditionallypermitandprohibittheseusesarelistedunderAttachmentB.AFFECTEDPROJECTS:

There are currently three (3) roposed projects that would be affected b y anamendmenttothe MUSP-300 Site plans and elevationsforthese projects areincludedinAttachmentCValleyChildren'sedicalCenter;oconstructa1131sq.ft.rofessionalofficesformed ica luses;ocatedonsouthwestcornerHwy1 1 1andShie ldsRoad. pp l icant

hassubmittedprojectforDesignReview.IndioMedicalCenter;oconstructa99,46quarefeettobeusedasaegionalmedical facilitywith surgical limted service hospital, medical office, medicalsu p p o r toffice,estaurant,andaflowershop.ThisfacilitywouldbelocatedonH w y111, eastofJefferson Street.Applicantwasnformed ofproposedchangesonDevelopm entReviewCommitteeandhasnotsubmittedplans.John MegayAssociateshas proposedaentativeparcelmaptoccommodatefuturemixed-seevelop m entonthesouthsideofHwy111, etweenMadisonMonroeStreets.Theapp l i can thasproposedamed i ca lofficecom p onent.

AroTf1Ke.A-1. Initiationofanam e n dm e n t totheMUSP-00olimitorprohibitoffice,medicaloffice,placesofworshiporsimilarlanduses.2 Initiation ofanordinanceamendingthe variouszonesprohibiting, restrictingorcondit ional lypermittingoffice,medicalofficeandplacesofworshiporsimilarlanduses.

Page3


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MUSP -300AmendmentCITYCOUNCILANDPLANNINGCOMMISSIONJOINTSESSION O C T O B E R29,003

3Actionto limitprojectsduringthe interimwhilethestudiesand requiredpublichearingsareunderway.

CC.CurtisPickeringRobertBonneyPaulAmesJunGo.CarlCoxJohnMegayArthurPlattMorrisPlattSteveSabotta

Respectfullysubmitted:

GilPradoAssistantPlanner

Reviewedby:

SusanElliamsCommunityDevelopmentServices/Bui ld ing SafetyDirectorApprovedby:

TomRamezCityManager

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