1996 Stamko Development - MOU Auto MallMEMORANDUM OF UNDERSTANDING
This Memorandum of Understanding is between the City of La Quinta
("City") and Stamko Development Co. ("Owner") and concerns a potential
Development Agreement for a retail development on the southeast corner of Adams
Street and Highway 1 1 1.
WHEREAS, the City pursuant to its Economic Development Plan ("EDP") and
Capital Improvement Program is interested in assisting economic development in
the City and particularly in assisting in the construction of needed public
improvement infrastructure; and
WHEREAS, the Owner has proposed a project which upon initial review
would meet the City's goals for economic assistance set out in the EDP pursuant to
the conceptual business points attached hereto as Exhibit "A".
The parties acknowledge the following:
(1) This Memorandum of Understanding is not an agreement and is merely
for the purpose of memorializing the current conceptual discussions regarding a
potential Development Agreement between the City and the Owner regarding
development of ninety (90) +/- acres on the southeast corner of Adams Street and
Highway 111.
(2) Prior to any such Development Agreement being considered by the
City Council, an EIR shall be prepared and approved in conjunction with all notices
for the public and public hearing requirements for Development Agreements by the
City Municipal Code and State law.
(3) Both City and Owner understand that funds shall be expended during
the MOU term (for CEQA and planning processing costs or any other costs arising
from participation in the preliminary actions necessary prior to consideration of the
Development Agreement by the City Council) which shall not be recoverable by
either City or Owner in the event that a Development Agreement is never approved.
(4) City and Owner acknowledge that the business points set out in
Exhibit "A" attached hereto and incorporated herein may, after being approved and
incorporated into a Development Agreement, provide a reasonable basis to meet
City economic development and public infrastructure goals as well as provide a
reasonable basis for the Owner to proceed with the sale and development of the
site as a combination general retail/commercial and auto mall.
(5) The term of this MOU is eleven (1 1) months from the date of approval
of acknowledgment by the City Council. It shall expire automatically unless
extended by both City and Owner.
"CIT "
Dated: /a —3—�i
RON PERKINS, Mayor Pro Tern
City of La Quinta, California
tEAT
AUNDRA L. JUHOLA, City Clerk
City of La Quinta, California
APPROVED AS TO FORM:
DAWN C. HONEYWE L, City Attorney
City of La Quinta, California
Dated: /"--2 —3 9
APPROVED BY THE CITY COUNCIL NOVEMBER 19, 1996
11796.3 2
Exhibit "A"
BUSINESS POINTS FOR POTENTIAL "THE CENTRE AT LA QUINTA"
Stamko Responsibilities:
1. Develop a commercial center consisting of:
Phase I up to 5 auto dealer pads; development to commence no later than 1998
Phase II up to 3 auto dealer pads; development to commence no later than 2001
Phase III up to 400,000 sq. ft. of retail, entertainment and restaurant uses in 4 phases over 4
years
beginning in 2001
2. Construct off -site improvements consisting of:
Phase I Hwy 111 - Main Drive (on -site road) west to Adams Street
Hwy 111 /Adams intersection - full intersection improvements per EIR requirements
Adams Street - east side improvements along entire site frontage including center
median
Projected Cost: $ 2,131,100
Phase II Hwy 111 - Main Drive (on -site road) east to east property line
Hwy 111 median - Adams Street to east property line
Projected Cost: $824,550 (to be adjusted by C.P.I. or other agreed index each year to
2001)
3. Forward fund all of the above improvements per development phase. However, if the three pads in
Phase II are purchased without Stamko taking back a trust deed, then Stamko will fund and construct
phase II improvements in conjunction with Phase I improvements.
4. Fund expenses associated with project entitlement and environmental processes.
City Responsibilities:
1. Reimburse Stamko for up to $2,955,550 (as adjusted by C.P.I. for Phase II only for first five years) of
Phase I and Phase II off -site improvements.
2. Reimbursement will be from project generated sales tax revenue.
3. Reimbursements will commence one year after improvements are complete and commercial uses are
open for business.
4. Improvements are constructed in phases, then repayment term and amount will be pro -rated by phase.
5. Reimbursements to be made quarterly over a ten year period.
6. Unpaid balance will accrue interest at 8.5%.
7. City will agree to freeze development fees for all three phases of site development at current fee rates.
8. Reimbursements to be accelerated in the event City receives funds from another source for Hwy 111
median -associated improvements previously funded by Stamko.
11796.3 3