1995 09 19 RDAd_/ffl
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IQeJeue?pment
eTL(La
CITY COUNCIL CHAMBER
78495 Calle Tampico
La Quinta, California 92253
Regular Meeting
September 19, 1995 3:00 P.M.
CAlL 0 ORDER
a. Roll Call Beginning Res. No.95-14
CONFTRMA'IION OF AGENDA
APPROVAL OF MINU'IES
a. Approval of Minutes of August 1, August 15, & September 5, 1995
PUBUC COMMENT
This is ke U,,? Sd ailde for public CO--I' ON afly IMiUC"' ii- sch???for a public hewing. PIeas coinp?
a ftquest to fonu and Uu?? your co--I'S to three
BUS[NESS SESSION
1 CONSIDERATION OF A HOUSING AGREEMENT WITH THE BUILDING HORIZONS/BOYS &
GIRLS CLUB FOR THE CONSTRUCTION OF TWO HOMES.
A) MINUTE ORDER ACTION.
2. TRANSMITTAL OF TREASURER'S REPORTS DATED JUNE 30, 1995 & JULY 31, 1995.
A) MINUTE ORDER ACTION.
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d_/ CONSENT CAINDAR
Note: Consent Items are consilered to be wutine in na'n? and wW be appro?ed by one motion.
1. APPROVAL OF DEMAND REGISTER DATED AUGUST 15, SEPTEMBER 5, & SEPTEMBER 19,
1995
DEPARIMENT REPORTS
1 TRANSMITTAL OF REVENUE & EXPENDITURES REPORT DATED JULY 31,1995.
CHAIR AND BOARD MEMBERS' ImMS
ClOSED SESSION
Note: PeTsons identifi?ed as negotiating parties where the City is considering acquisition of their property are not
invited into the Closed Session meeting.
A. CONFERENCE WITH REAL PROPERTY NEGOTIATOR MR. ThOMAS BIENEK PURSUANT TO
GOVERNMENT CODE SECTION 54956.8 INSTRUCTING THE NEGOTIATOR CONCERNING
CONCEPT, TERMS, SITE PLANNING FOR THE PROPERTY LOCATED AT THE NORTHEAST
CORNER OF ADAMS STREET AND 48TH AVENUE.
B. CONFERENCE WITH REAL PROPERTY NEGOTIATOR PURSUANT TO GOVERNMENT CODE
SECTION 54956.8 REGARDING THE SALE OF AGENCY OWNED PROPERTY LOCATED AT 53-
880 VILLA.
C. CONFERENCE WITH REAL PROPERTY NEGOTIATOR MR. CARLOS VIGON PURSUANT TO
GOVERNMENT CODE SECTION 54956.8 INSTRUCTING THE NEGOTIATOR CONCERNING
PROPERTY ACQUISITION FOR THE PROPERTY LOCATED AT THE SOUTHEAST CORNER OF
CALLE TAMPICO AND EISENHOWER DRIVE.
D. CONFERENCE WITH REAL PROPERTY NEGOTIATOR CONCERNING PROPERTY LOCATED AT
53-165 AND 53-185 EISENHOWER DRIVE, PURSUANT TO GOVERNMENT CODE SECTION
54956.8 INSTRUCTING THE NEGOTIATOR CONCERNING AN AMENDMENT TO THE DDA.
NEGOTIATOR: BOYS & GIRLS CLUB/BUILDING HORIZONS.
E. CONFERENCE WITH REAL PROPERTY NEGOTIATOR CONCERNING THE SALE OF REAL
PROPERTY LOCATED AT THE NORTHWEST CORNER OF 48TH AVENUE AND DUNE PALMS
ROAD. NEGOTIATOR: DESERT SANDS UNIFIED SCHOOL DISTRICT. INSTRUCTING THE
NEGOTIATOR CONCERNING PRICE, TERMS OF PAYMENT FOR THE ACQUISITION OF THE
PROPERTY PURSUANT TO GOVERNMENT CODE SECTION 54956.8.
F. CONFERENCE WITH REAL PROPERTY NEGOTIATOR CONCERNING PROPERTY LOCATED ON
CALLE TAMPICO, WEST OF WASHINGTON STREET, PURSUANT TO GOVERNMENT CODE
SECTION 54956.8 INSTRUCTING THE NEGOTIATOR CONCERNING AN AMENDMENT TO THE
DDA NEGOTIATOR: E.G. WILLIAMS DEVELOPMENT COMPANY.
AIMOURNMENT
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d_/ DECLARATION OF PO?IlNG
I, SAUNDRA L 3UHOLA, Secretary of the La Quinta Redevelopment Agency, do hereby declare that the
foregoing agenda for the Redevelopment Agency Meeting of September 19, 1995 was posted on the outside
entry to the Council Chamber, 78-495 Calle Tampico and on the bulletin board at the La Quinta Chamber
of Commerce on Friday, September 15, 1995.
La Quinta Redevelopment Agency
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AGENDA CATEGORY:
OF BUSINESS SESSION:
COUNCILIRDA MEETING DATE: September 19, 1995 CONSENT CALENDAR:
IThM TITLE: STUDY SESSION:
Consideration of an Affordable Housing Agreement By and PUBLIC HEARING:
Between the Boys and Girls Club/Building Horizons Program and
the Redevelopment Agency for the construction of two houses
RECOMMENDATION:
Approve the Affordable Housing Agreement concept and authorize the Executive Director to
execute the necessary documents consistent with the terms as noted below.
FISCAL IMPLICATIONS:
The program outlined in the Agreement will require an initial expenditure of up to $210,000 in the
form of financing for the acquisition and construction of two single family residential units; the
Agreement, however, provides that the Agency shall be repaid at the close of escrow when the two
single-family dwellings are sold. The source of these funds will be the Agency's low and moderate
income housing fund. The Agency would also be providing a Second Trust Deed loan to eligible low
and moderate income buyers.
BACKGROUND AND OVERVIEW:
In August of 1994, the Agency Board approved a pilot project involving the Boys and Girls
Club/Building Horizons program wherein junior and senior year high school students participated
in the design and construction of two single family homes. Agency participation involved the
acquisition of two lots in the Cove, and the provision of additional monies in the form of a zero-
interest construction loan to fund program administration and construction costs. A total of $2 0,000
was expended on the pilot project. The result was the construction of two single-family homes that
will be subsequently sold at affordable housing costs, and will feature long-term covenants to ensure
their continued affordability for 30 years. When the units are sold, the Agency will be repaid the
difference between the $210,000 and the amount needed to assist a low or moderate income home
buyer. The assistance could be as much as $40,000 per unit. The assistance will be structured as a
silent Second Trust Deed loan.
Building Horizons has contracted with the Desert Sands Unified School District to continue this
program during the coming school year. Students have already enrolled for this class, and Building
Horizons is anxious to receive Agency authorization and funding to proceed with the project for this
year. In order to accommodate Building Horizons' schedule, staff proceeded to develop the attached
Affordable Housing Agreement for Agency consideration.
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d_/The Agreement provides that the Agency Will loan up to $210,000 to Building Horizons to fund
property acquisition and subsequent construction activities. Through the Agreement, Building
Horizons is charged with the following responsibilities:
* To identify and acquire two single-family lots in the Cove.
* To construct two single-family dwellings consisting of 1,200 square feet or more in size, and
in conformance with all City planning and development standards.
* To sell the homes, at affordable housing costs, to low and/or moderate income households,
and to ensure that affordability covenants are recorded for each unit to insure that the units
will remain affordable to the designated households for a minimum of 30 years.
* When the units are sold, the financing provided by the Agency shall be repaid and the Agency
will provide a second trust deed, or other affordable housing assistance to the home buyer,
up to a maximum amount of $40,000 per unit to insure the units are affordable.
Agency assistance would be structured as a zero-interest acquisition and construction loan with funds
provided directly to escrow for the acquisition and upon submittal of invoices by Building Horizons,
and subsequent verification of identified expenditures by Agency staff for the construction portion
of the financing.
FINDINGS AND ALTERNATIVES:
The Agreement provides for the continuation of the Building Horizons student home design and
construction program. Purther, the Agreement will cause the construction of two new dwellings
that will be sold at affordable housing costs to low or moderate income households, and feature
30-year affordability covenants. The latter activity will contribute to the Agency's housing
production needs and reduce the Agency's housing production deficit.
A policy question does need to be considered, however, when reviewing the Agreement. When
the pilot project was adopted, the Agency Board established a policy that no additional funds would
be allocated to the Building Horizons program until the dwellings constructed pursuant to the pilot
project were sold. The Agency's expressed intention was to use the monies repaid from the sale
of the pilot project dwellings to fund subsequent program activities. The two existing dwellings
have not yet been sold due to the difficulties in selling moderately priced single-family dwellings
which have the affordability covenants in today's housing market. Market prices have dropped
to a level that units affordable to moderate income households now compete with market rate units
that feature favorable financing and builder incentive programs. Building Horizons has requested
that the Agency modify the existing program to provide a broader market appeal and, thus,
facilitate the rapid sale of these units. If the Agency agrees to the requested modifications, then
these units may be sold in short order, thus providing a turnover of previously allocated Building
Horizons program monies to lund the activities contemplated by this Agreement.
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d_/Alternatives available to the Council are as follows:
1. Approve the Agreement as recommended.
2. Delay approval of the Agreement until the pilot project homes are sold and pilot project
lunds are repaid.
Attachment:
1. The Affordable Housing Agreement will be distributed by 3:00 P.M.
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d_/Q 1
AGENDA CATEGORY:
4OF?? BUSINESS SESSION:
COUNCILIRDA MEETING DATE: September 19,1995 CONSENT CALENDAR:
ITEM TIThE: STUDY SESSION:
PUBLIC HEARING:
Transmittal of Treasurer's Report
asofjune30andjuly3l, 1995
RECOMMENDATION:
Receive and File.
BACKGROUND AND OVERVIEW:
Transmittal of Treasurer's Report dated June 30 and July 31, 1995 for the La Quinta Redevelopment
Agency.
The Treasurer's Report has been presented in a new format based upon comments from the
Investment Advisory Board review of other city reports, and Staff input.
FINDINGS AND ALTERNATIVES:
I certily that this report accurately reflects all pooled investments and is in compliance with
California Government Code Section 53645 as arnended 1/1/86; and is in conformity with City Code
3.08.010 to 3.08.070 Investment of Money and Funds.
I hereby certit?r that sufficient investment liquidity and anticipated revenues are available to meet
ne ont estimated xpe ditures.
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d_/\ M E M 0 RAN D UM AGEM)A CATEGORY:
DUSINESS SESSION
COUNCIJRDA MEETING DATE: SEPTEMBER 19,1995 CONSENT CALENDAR
ITEM TITLE: STUDY SESSION
PUBLIC IPEARING
Demand Register Dated September 19 1995
RECOMMENDATION: Approve Demand Register Dated September 19, 1995
WACK?GRQ?ND:
Prepaid WaiTants:
22661 22677 5,327.14
22675- 2269O? 394,927.09 CITY DEMAM)S 743,172.S3
PIR I2337-12403? 59,496.15
P/1? TaN Tran?fe:s', 19,415?95
PIR l2404-l2467? 61,252.35
PIR Tax Tiansfcrs 20,114.16
Payable WalTants: RDA DEMANDS 15,153.59
22691 22795 200,523.55
$761,356.72 76 1,356.72
FISCAL IMPLICATIONS:
Demand of Cash RDA $Th?5?3.89
j Falconer Frnan?e Dii ector
000092
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if
AGENDA CATEGORY:
BUSINESS SESSION:
COUNCILIRDA MEETING DATE: September 19,1995 CONSENT CALENDAR:
ITEM TIThE: STUDY SESSION:
PUBLIC REARING:
Transmittal of Revenue and I
Expenditures Report dated July 31, 1995
RECOMMENDATION:
Receive and File
BACKGROUND AND OVERVIEW:
Transmittal of the July 31, 1995 Statement of Revenue and Expenditures for the La Quinta
Redevelopment Agency.
000212
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