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1995 10 17 RDAd_0gC', OF A?ecleueLpment M?enc? CITY COUNCIL CIIAMBER 78-495 Calle Tampico La Quinta, C?illfornia 92253 Regular Meeting October 17, 1995, 3:00 P.M. CAll 10 ORDER a. Roll Call Beginning Res. No.95-15 CONFUIMATION OF AGENDA APPROVAL OF a. Approval of Minutes of October 3, 1995 PUBUC COMMENT ThLi Li tile tinie Sd azide for lic cow-ton fly imuerliot sche?d for a public II-uLg. Pleuse comp? 4 zww foriii and iniapour Cow-mt: three rnbiu?u. BUSINESS SESSION TRANSMITTAL OF TREASURER'S REPORT DATED AUGUST 31, 1995. A) MINUTE ORDER ACTION. OOO1 BIB] 06-24-1999-U01 12:40:08PM-U01 ADMIN-U01 RDA-U02 10-U02 17-U02 1995-U02 d_0g CONSENT CAINDAR 1 APPROVAL OF DEMAND REGISTER DATED OCTOBER 17, 1995. 2 ADOPTION OF RESOLUTION AUTHORIZING THE TRANSFER OF PROPERTY LOCATED AT THE NORTHWEST CORNER OF 48TH AVENUE AND JEFFERSON STREET FROM THE REDEVELOPMENT AGENCY PROJECT AREA #2 FUND TO REDEVELOPMENT AGENCY PROJECT #2 LOW-MOD FUND. DEPARIMENT REPORTS 1 TRANSMITTAL OF REVENUE AND EXPENDITURES REPORT DATED AUGUST 31, 1995. CHAIR AND BOARD ME??ERS' nl?MS PUBLIC HEARINGS JOINT PUBUC HEARINGS BETWEEN THE LA OUINTA REDEVELOPMENT AGENCY BOARD ANDT'HE LA OUINTA CITY COUNCIL 1 AMENDMENT TO THE DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE LA QUINTA REDEVELOPMENT AGENCY AND THE BOYS AND GIRLS CLUB OF COACHELLA VALLEY/BUILDING HORIZONS PROGRAM. A) RESOLUTION ACTION. 2. DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE CITY OF LA QUINTA AND DESERT SANDS UNIFIED SCHOOL DISTRICT FOR THE SALE OF APPROXIMATELY 25 ACRES AT THE NORTHEAST CORNER OF 48TH AVENUE AND DUNE PALMS ROAD. A) RESOLUTION ACTION. CLOSED SESSION None ADJOURNMENT 000002 BIB] 06-24-1999-U01 12:40:08PM-U01 ADMIN-U01 RDA-U02 10-U02 17-U02 1995-U02 d_0g DECLARMION OF PO?I1NG I, SAUNDRA L. JUHOLA, Secretary of the La Quinta Redevelopment Agency, do hereby declare that the foregoing agenda for the Redevelopment Agency Meeting of October 17,1995 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, October 13, 1995. D?.Oth 13, 19 RA L. 3UHOL Secretary La Quinta Redevelopment Agency PUBUC N(YIICE The La Quinta City Coundl Chamber is handicapped accessible. If special equipment is needed for the hearing impaired, please the City Clerk's Office at 777-7025, 24-hours in advance of the meeting and accomodations will be made. 000003 BIB] 06-24-1999-U01 12:40:08PM-U01 ADMIN-U01 RDA-U02 10-U02 17-U02 1995-U02 d_0g AGENDA CATEGORY: C?4 OF BUSINESS SESSION: COUNCILIRDA MEETING DATE: October 17,1995 CONSENT CALENDAR: ITEM TITLE: STUDY SESSION: PUBLIC REARING: Transmittal of Treasurer?s Report as ofAugust 31, 1995 RECOMMENDATION: Receive and file and make this item a part of the consent calendar in fliture agendas. BACKGROUND AND OVERVIEW: Transmittal of Treasurer's Report dated August 31, 1995 for the La Quinta Redevelopment Agency. Staff has recently modified the format in conjunction with the Investment Advisory Board. Staff requests that fliture Treasurers Report be a consent calendar item. FINDINGS AND ALTERNATIVES: I certif? that this report accurately reflects all pooled investments and is in compliance with California Government Code Section 53645 as arnended 14/86; and is in conformity with City Code 3.08.010 to 3.08.070 Investment of Money and Funds. I hereby certify that sufficient investment liquidity and anticipated revenues are available to meet next month's estimated expenditures. 000004 BIB] 06-24-1999-U01 12:40:08PM-U01 ADMIN-U01 RDA-U02 10-U02 17-U02 1995-U02 ing -> 10)B- NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 19 ing -> 10)B- NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 19 ing -> 10)B- NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 19 d_0g L? rOF?? MEMORANDUM AGENDA CATEGORY: BUSINESS SESSION COUNCILIRDA MEETING DATE: OCTOBER 17, 1995 CONSENT CALENDAR ITEM TITLE: STUDY SESSION Demand Register Dated October 17, 1995 PUBLIC HEARING RECOMMENDATION: Approve Demand Register Dated October 17, 1995. BACKGROUND: Prepaid Warrants: 22930 22975 9,243.26 22976 46,131.19 22977 22987 69,387.22 P(R 2532-12602 61,596.95 PIR Tax Transfers 20,262.84 CITY DEMANDS $390,746.47 Payable Warrants: 22988 23098 227,582.27 RDA DEMANDS 43,457.26 $434,203.73 $434,203.73 FISCAL IMPLICATIONS: Demand of Cash RDA $43,457.26 Jo n M. Falconer, Finance Director 000003 BIB] 06-24-1999-U01 12:40:08PM-U01 ADMIN-U01 RDA-U02 10-U02 17-U02 1995-U02 ing -> 10)B- NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 19 ing -> 10)B- NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 19 ing -> 10)B- NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 19 ing -> 10)B- NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 19 ing -> 10)B - NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 19 ing -> 10)B- NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 19 ing -> 10)B- NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 19 ing -> 10)B- NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 19 ing -> 10)B- NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 19 ing -> 10)B- NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 19 ing -> 10)B- NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 19 ing -> 10)B- NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 19 ing -> 10)B- NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 19 ing -> 10)B- NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 19 ing -> 10)B- NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 19 ing -> 10)B- NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 19 ing -> 10)B- NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 19 ing -> 10)B- NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 19 ing -> 10)B- NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 19 ing -> 10)B- NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 19 ing -> 10)B- NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 19 ing -> 10)B - NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 1 ing -> 10)B!- NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 1 ing -> 10)B"- NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 19 ing -> 10)B#- NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 19 ing -> 10)B$- NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 19 ing -> 10)B%- NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 19 ing -> 10)B&- NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 19 ing -> 10)B'- NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 19 ing -> 10)B(- NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 19 ing -> 10)B)- NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 19 ing -> 10)B*- NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 19 ing -> 10)B+- NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 19 ing -> 10)B,- NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 19 ing -> 10)B-- NOTEXTPAGE BIB] 05-14-1999-U01 10:08:22AM-U01 ADMIN-U01 RDA-U02 10-U02 18-U02 19 ing -> 10$ NOTEXTPAGE BIB] 04-13-1999-U01 11:17:26AM-U01 ADMIN-U01 RDA-U02 10-U02 19-U02 1993- ing -> 10$ NOTEXTPAGE BIB] 04-13-1999-U01 11:17:26AM-U01 ADMIN-U01 RDA-U02 10-U02 19-U02 1993- ing -> 10$ NOTEXTPAGE BIB] 04-13-1999-U01 11:17:26AM-U01 ADMIN-U01 RDA-U02 10-U02 19-U02 1993- ing -> 10$ NOTEXTPAGE BIB] 04-13-1999-U01 11:17:26AM-U01 ADMIN-U01 RDA-U02 10-U02 19-U02 1993- ing -> 10$ NOTEXTPAGE BIB] 04-13-1999-U01 11:17:26AM-U01 ADMIN-U01 RDA-U02 10-U02 19-U02 1993- d_01g2?ffl 0% #4?a,(iaj AGENDA CATEGORY: C?4 OF BUSINESS SESSION: COUNCILIRDA MEETING DATE: October 17, 1995 CONSENT CALENDAR: ITEM ThE: STUDY SESSION: Adoption of Agency Resolution authorizing the transfer of property located at the northwest corner of 48th Avenue and PUBLIC HEARING: Jefferson Street from the Redevelopment Agency Project Area #2 Fund to Redevelopment Agency Project #2 Low- Mod Fund. RECOMMENDATION: Approve Agency Resolution authorizing the transfer of certain real property from La Quinta Redevelopment Project No.2 Redevelopment Fund to the Low and Moderate Income Rousing Fund. FISCAL IMPLICATIONS: This transaction will result in the transfer of $1,986,090 of nonbond affordable housing funds from the Project No.2 Low and Moderate Income Housing Fund to the Project No.2 Redevelopment Fund. As a result of this transfer, the Low and Moderate Income Housing Fund will purchase the 39.96-acre parcel for subsequent development with affordable housing. BACKGROUND AND OVERVIEW: In May, 1991, the Agency purchased two parcels of property within La Quinta Project No.2. One parcel was designated for the future development of an Administrative Center by Desert Sands Unified School District; that parcel was located at the intersection of Jefferson Street and 48th Avenue. A second parcel, located at the future intersection of Dune Palms Road and 48th Avenue, was designated for affordable housing. Subsequent to property acquisition, the Agency, in 1994, elected to designate the Dune Palms Road parcel as the location for the District Administrative Center; the Jeffersonl48th Avenue parcel was then under consideration for commercial development. The commercial development proposal was subsequently abandoned, and the Agency now desires to develop the Jeffersonl48th Avenue parcel with affordable housing. In order to facilitate affordable housing development and reimburse the Project No. 2 Redevelopment Fund for property acquisition expenses, the affached resolution will authorize the interfund transfer of the property and flinds between the Project No.2 Redevelopment Fund and Low and Moderate Income Housing Funds. This transfer of interest is accomplished as a fund transfer due to the fact that legal title to the property will not change since each fund is a fund of the same CCJH.007 OOO4? BIB] 06-24-1999-U01 12:40:08PM-U01 ADMIN-U01 RDA-U02 10-U02 17-U02 1995-U02 d_02glegal entity i.e., the La Quinta Redevelopment Agency. In consideration for the 39.96-acre parcel, the Project No.2 Low and Moderate Income Housing Fund will transfer $1,986,090 to the Redevelopment Fund to reimburse the Fund for property acquisition costs. This amount is based upon the per-square-foot acquisition price of $1.41 the Agency initially paid for the parcel when purchased in 1991. Review of 1995 market sales data for comparable properties indicates that this is ajust value for this property. FINDINGS AND ALTERNATIVES: Agency approval of a Disposition and Development Agreement between the Agency, Desert Sands Unified School District, and Desert Sands School Building Corporation will result in the sale of the Dune Palms Road parcel to the District for development as an Administrative Center. This transaction will eliminate the possibility of utilizing the Dune Palms Road parcel for affordable housing. In order to continue the Agency's efforts to meet state-mandated affordable housing requirements, the Jefferson/48th Avenue parcel is an ideal site for the development of the affordable housing units proposed for the Dune Palms Road parcel. This transaction will formally transfer the property to the Project No.2 Low and Moderate Income Housing Fund, and reimburse the Project No.2 Redevelopment Fund for property acquisition expenses. As a result of this transaction, the Redevelopment Project Area No.2 Capital Projects Fund will obtain funds in the amount of $1,986,000 from the Project Area No.2 Low and Moderate Income Housing Fund. These flinds may be utilized for various Capital Improvement Projects as contained in the Redevelopment Plan), economic development purposes, or repayment of debt owed to the City General Fund. Staff will address the use of these funds at a future meeting and the 1996/97 Five-Year Capital Improvement Program discussions. The alternative to this transaction would be to not adopt the resolution and designate the Jefferson/48th Avenue parcel for nonhousing uses. This transaction would result in the following: * Delay the construction of improvements to 48th Avenue by eliminating the primary purpose for funding these improvements with low and moderate income housing funds. * Reduce the amount of undeveloped property that may accommodate affordable housing development. * Delay the reimbursement of the Project No.2 Redevelopment Fund for costs incurred with the acquisition of the Jefferson/Avenue 48 site. The alternatives available to the Council are as follows: 1. Adopt the Agency Resolution as proposed; 2. Deny the request: 000050 BIB] 06-24-1999-U01 12:40:08PM-U01 ADMIN-U01 RDA-U02 10-U02 17-U02 1995-U02 ing -> 12 NOTEXTPAGE BIB] 03-10-1999-U01 10:50:04AM-U01 ADMIN-U01 RDA-U02 10-U02 20-U02 1992- ing -> 12 NOTEXTPAGE BIB] 03-10-1999-U01 10:50:04AM-U01 ADMIN-U01 RDA-U02 10-U02 20-U02 1992- ing -> 12 NOTEXTPAGE BIB] 03-10-1999-U01 10:50:04AM-U01 ADMIN-U01 RDA-U02 10-U02 20-U02 1992- ing -> 12 NOTEXTPAGE BIB] 03-10-1999-U01 10:50:04AM-U01 ADMIN-U01 RDA-U02 10-U02 20-U02 1992- ing -> 12 NOTEXTPAGE BIB] 03-10-1999-U01 10:50:04AM-U01 ADMIN-U01 RDA-U02 10-U02 20-U02 1992- d_08g A'OF?;? AGENDA CATEGORY: BUSINESS SESSION: COUNCILIRDA MEETING DATE: October 17,1995 CONSENT CALENDAR: ITEM TIThE: STUDY SESSION: PUBLIC REARING: Transmittal of Revenue and Expenditures Report dated August 31, 1995 RECOMMENDATION: Receive and File BACKGROUND AND OVERVIEW: Transmittal of the August 31, 1995 Statement of Revenue and Expenditures for the La Quinta Redevelopment Agency. 00005or' BIB] 06-24-1999-U01 12:40:08PM-U01 ADMIN-U01 RDA-U02 10-U02 17-U02 1995-U02 ing -> 12 NOTEXTPAGE BIB] 03-10-1999-U01 10:50:04AM-U01 ADMIN-U01 RDA-U02 10-U02 20-U02 1992- ing -> 12 NOTEXTPAGE BIB] 03-10-1999-U01 10:50:04AM-U01 ADMIN-U01 RDA-U02 10-U02 20-U02 1992- d_0;g 0 SESSION: 4'?Th? AGENDA CATEGORY: 4OF?? COUNCILIRDA MEETING DATE: October 17, 1995 CONSENT CALENDAR: ITEM TIThE: STUDY SESSION: A Joint Public Hearing between the La QLunta City Council PUBLIC HEARING: and the Redevelopment Agency on an Amendment to the Disposition and Development Agreement between the City of La Quinta and the Boys and Girls Club of the Coachella Valley/Building Horizons Program RECOMMENDATION: Adopt Agency Resolution approving the Second Amendment to the Disposition and Development Agreement by and between the Agency and Boys and Girls Club of Coachella Valley/Building Horizons Program and authorize the Agency Chairman to sign the Amendment. FISCAL IMPLICATIONS: The Second Amendment provides that the Agency may be repaid a maximum of $150,000 of Agency financial assistance that was used for affordable housing development. This compares to the total repayment of $190,000 as provided by the initial Disposition and Development Agreement DDA"), and $170,000 as provided by the First Amendment to said DDA. The reduced repayment amount is a result of increasing the Second Trust Deed assistance, as provided by the Second Amendment, to $30,000 per unit. This increase would afford the opportunity for low income households to purchase the two dwellings. The flinds have been previously allocated. BACKGROUND AND OVERVIEW: On September 30, 1994, the Agency and Building Horizons eveloper") entered into a DDA that established a contractual obligation to facilitate the financing and construction of a two-unit, single- family residential development to be sold at affordable housing costs to moderate income households. Subsequent to its execution, the DDA was amended in July, 1995, to modify certain provisions which afforded the Developer greater flexibility when selling the units. However, changing market conditions has resulted in the inability of the Developer to market these units to moderate income households. As such, the Developer petitioned the Agency to reconsider some of the constraints and provide additional flexibility for the sale of these units. Provisions of the Second Amendment. Modifications embodied in the Second Amendment are detailed in the Report on the Second Amendment which is featured as Attachment 1 to this report. In summary, the modifications proposed by the Second Amendment are as follows: 000059 BIB] 06-24-1999-U01 12:40:08PM-U01 ADMIN-U01 RDA-U02 10-U02 17-U02 1995-U02 d_0<g* Permit the sale of the residential units to low and moderate income households, which provide that the units can be sold to households earning 61% to 20% of the median income of Riverside County. * Eliminate the 3% down payment requirement and afford potential home buyers the ability to secure 100% lender financing. * Increase the Second Trust Deed loan amounts from $20,000 per unit to $30,000 per unit; under the DDA, the Agency converts some of the initial affordable housing assistance into silent Second Trust Deeds which finance the difference between affordable housing costs and affordable First Trust Deed mortgages), and the purchase cost. Discussions involving Agency staff and the Developer indicate that with these modifications, the Developer will be able to secure buyers for these two homes. Public Hearin? Requirement. The pr(?ject was approved through a Disposition and Development Agreement which is required by the California Community Redevelopment Law since Agency- owned property, purchased with tax increment revenue, was to be sold. As a result, any subsequent amendments to the DDA require that the same procedure involved in adopting the original DDA be adhered to. As such, a joint public hearing is required, which was noticed once a week for two consecutive weeks on October 3rd and October 10th. Further, the modifications to the DDA and an accompanying report that summarized said modifications were available at the public counter in the La Quinta Community Development Department since October 3rd. FINDINGS AND ALTERNATIVES: Approving the DDA will provide the Developer greater flexibility in selling these homes, thus increasing the community's supply of covenant restricted affordable housing; the sale will also result in the partial repayment of Agency financial assistance that was originally paid to facilitate property acquisition and construction activities. Tf the Agency was to elect to not approve the DDA, then the Developer would have a limited ability to sell the units, and potentially would default on the Agreement. Alternatives available to the Agency are as follows: 1. Adopt Agency Resolution approving the Amendment to the Disposition and Development Agreement as recommended and authorize the Agency Chairman to sign the Agreement; 2. Adopt Agency Resolution approving the Amendment to the Disposition and Development Agreement with flirther recommendations; 3. Deny the Agreement. erty He a Community Development Director Attachment: 1. Second Amendment on the Disposition and Development Agreement 0 0 OO 0 an,. BIB] 06-24-1999-U01 12:40:08PM-U01 ADMIN-U01 RDA-U02 10-U02 17-U02 1995-U02 ing -> 12 NOTEXTPAGE BIB] 03-10-1999-U01 10:50:04AM-U01 ADMIN-U01 RDA-U02 10-U02 20-U02 1992- ing -> 12 NOTEXTPAGE BIB] 03-10-1999-U01 10:50:04AM-U01 ADMIN-U01 RDA-U02 10-U02 20-U02 1992- ing -> 12 NOTEXTPAGE BIB] 03-10-1999-U01 10:50:04AM-U01 ADMIN-U01 RDA-U02 10-U02 20-U02 199 ing -> 12 NOTEXTPAGE BIB] 03-10-1999-U01 10:50:04AM-U01 ADMIN-U01 RDA-U02 10-U02 20-U02 1992- ing -> 12 NOTEXTPAGE BIB] 03-10-1999-U01 10:50:04AM-U01 ADMIN-U01 RDA-U02 10-U02 20-U02 1992- d_0Bg 7 GP4OF AGENDA CATEGORY: BUSINESS SESSION: COUNCILIRDA MEETING DATE: October 17, 1995 CONSENT CALENDAR: ITEM TIThE: STUDY SESSION: A Joint Public Hearing with the City Council and the PUBLIC HEARING: Redevelopment Agency regarding the Disposition and Development Agreement between the Agency, Desert Sands Unified School District, and Desert Sands School Building Corporation for the sale of approximately 25 acres at the northeast corner of 48th Avenue and Dui? Palms Road RECOMMENDATION: Adopt Agency Resolution approving and authorizing the execution of the Disposition and Development Agreement between the Agency, Desert Sands Unified School District, and Desert Sands School Building Corporation, the allocation of funds, and authorizing the Agency Chairman to sign the Disposition and Development Agreement. FISCAL IMPACT: The Disposition and Development Agreement DDA") provides that the District will pay the Agency $1.2 million in cash to purchase a 25.89 gross acres of property; further, the DDA provides that the District will fund an additional $994,000 of improvements to Dune Palms Road. Finally, the DDA commits the Agency to expending up to $3.6 million in Project No.2 low and moderate income housing funds to underwrite the construction of improvements to 48th Avenue. The net outlay of additional Agency funds resulting from the DDA is $1,410,000. An allocation of $3.6 million will be committed to the construction of 48th Avenue improvements from the Project No. 1 and No.2 low and moderate income housing fund. BACKGROUND AND OVERVIEW: Synopsis of the Disposition and Development Agreement. The DDA provides for the following: * That the Agency will sell 25.89 acres to the District for a cash price of $1.2 million. * That the District will construct improvements to Dune Palms Road from the future alignment of 48th Avenue north to Highway 111. * That the Agency will construct improvements to 48th Avenue from Adams Street east to Jefferson Street. * An Implementation Agreement that would result in the disbursement of the District's percentage share of tax increment per year for the next 34 years which the District would use to fund some of the costs associated with constructing the District Administrative Center. The Agency/District OOOO6? BIB] 06-24-1999-U01 12:40:08PM-U01 ADMIN-U01 RDA-U02 10-U02 17-U02 1995-U02 d_0Cg Cooperation Agreement, dated July 5, 1989, provides that the District shall receive up to 50% of the tax increment revenue generated by the District's property tax levy in Project Area No.2 to fund District facilities and improvements. This Implementation Agreement fulfills provisions of said Cooperation Agreement. Public Hearin? Requirement. The California Redevelopment Law requires that the Agency convene ajoint public hearing, with the City Council, to receive community input when property purchased with tax increment revenue is subsequently sold. The notice of this joint public hearing was published once a week for two consecutive weeks on October 3rd and October 10th) in the Desert Sun. Further, copies of both the DDA Attachment 1) and a Summary Report Attachment 2) were available at the Community Development Department's public counter on October 3rd. Both the Surmnary Report and DDA were subsequently revised on October 9th to reflect the addition of the Desert Sands School Building Corporation as a third party to the DDA. The District requested that the Building Corporation be added because it will assume the responsibility of constructing the Administrative Center and infrastructure improvements for the District. Project Description. The project involves the sale of 25.89 acres of property to the District, upon which a 164,000 square foot Administration and Educational Services Center will be constructed. The center will include the District's administrative, maintenance, operation, transportation, warehouse, and nutritional service facilities, and the District's bus storage yard, day care center, and Board meeting room. A minimum of 500 District employees would be located in this facility. The project was the subject of both Planning Commission and City Council consideration pursuant to Public Use Permit 95-016. In addition to the Administrative Center, the DDA also provides that the District will construct improvements to I)une Palms Road from State Highway 111 south to the future alignment of 48th Avenue. Said improvements shall include utility and drainage facilities, and roadway improvements including traffic signals at the Dune Palms Road/Highway 111 intersection. Finally, the DDA provides that the Agency shall improve 48th Avenue from Adams Street east to Jefferson Street. Said improvements will include roadway, utility, drainage, and landscaping improvements. The 48th Avenue improvements will not only provide secondary access to the Administrative Center, but will also provide primary access to two Agency-owned properties that are contiguous to 48th Avenue. Both Dune Palms Road and 48th Avenue improvements are listed as public infrastructure projects in the Redevelopment Plan for La Quinta Redevelopment Project No.2. Historv of the Site/Project. The site was one of two parcels of property that were acquired by the Agency in May, 1991. One parcel was contiguous to the future alignment of Dune Palms Road Dune Palms Road Parcel"), and the second was located northwest of the intersection of Jefferson Street and 48th Avenue Jeffersonl48th Avenue Parcel"). The Agency's original intent in purchasing these parcels was to. * Develop the Dune Palms Road Parce? with affordable housing, and * Develop the larger Jefferson/48th Avenue Parcel with both the District Administrative Center and commercial uses. CCJH.002 2 OOOO??? BIB] 06-24-1999-U01 12:40:08PM-U01 ADMIN-U01 RDA-U02 10-U02 17-U02 1995-U02 d_0DgFINDINGS AND ALTERNATIVES: Approving the DDA will provide for the following: * the sale of Agency-owned property to the District for the construction of new public facilities that will serve both the City of La Quinta and the region as a whole. Further, locating these facilities in La Quinta will relocate over 500 jobs to La Quinta, resulting in increased demand for commercial and other support services that could be met by local businesses. * the construction of needed road, utility, and flood control improvements to both Dune Palms Road and 48th Avenue; currently, both streets are paper right-of-ways that do not feature any improvements. Both of these roadways are listed as public improvement projects to be addressed through redevelopment in the Project No.2 Redevelopment Plan, and are needed arterials in order to provide access to both the administrative center and the 90 acres of vacant property that the Agency desires to develop with affordable housing. * the means to fund the aforementioned improvements through tax increment revenue. The Implementation Agreement embodied within the DDA provides that the District may access tax increment revenue, as afforded by the 1989 Agency/District Cooperation Agreement to construct needed District facilities. Through both correspondence and discussions, District representatives have provided factual data that indicates that the District has no other means through which to fund these improvements other than tax increment revenue. Further, Agency expenditures to construct 48th Avenue improvements will assist in the development of affordable housing on adjacent Agency-owned properties. To date, the Agency has assisted affordable housing development through funding necessary off-site infrastructure improvements, thus reducing cost burdens and affording lower home purchase prices. * the Agreement will implement provisions of the Agency's 1994 Five-Year Implementation Plan that provide for the development of these two sites with housing and public uses. The housing activities that the DDA will facilitate are identified in the Housing Compliance Plan section of the Agency's Five-Year Implementation Plan. If the DDA is approved by the Agency and City Council, then staff proposes to subsequently bring forward amendments to the Five-Year Implementation Plan to specifically identify the projects that will be funded through the DDA. Analysis indicates that the only alternative to adopting the DDA is not to adopt it. This would put the Agency on record as to not desiring to sell the property to the District, and would eliminate the option of the District constructing the Administrative Center within the City of La Quinta. Further, the means to construct improvements to Dune Palms Road would be significantly reduced, and would most likely obligate the Agency to solely fund these improvements in the future. Finally, 48th Avenue improvements will initiate the first step of developing Agency-owned properties contiguous to this street; 48th Avenue will provide access to these properties, and will reduce the costs associated with affordable housing development. CCJH.002 3 BIB] 06-24-1999-U01 12:40:08PM-U01 ADMIN-U01 RDA-U02 10-U02 17-U02 1995-U02 d_0EgThe options available to the Agency are as follows: 1. Adopt the Agency Resolution as proposed; 2. Deny the request. err Herman, ommunity Development Director Attachments: 1. Disposition and Development Agreement 2. 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