1996 03 05 RDAd_3'< #4?%'4(ia?
Redevelopment Agency
Agenda
CITY COUNCIL CHAMBER
78495 Call. Tampico
La Quinta, California 92253
Regular Meeting
March 5, 1996 3:00 P.M.
CALL TO ORDER
a. Roll Call Beginning Rca. No. 2
CONFIRMATION OF AGENDA
APPROVAL OF MINUTES
a. Approval of Minutes of February 20, 1996.
PUBLIC COMMENT
This is the time set aside fof public comment on any matter not scheduled for a public hearing. Rease
complete a request to speak" form and limit your comments to three minutes.
Please watch the timing device on the podium.
BUSINESS SESSION None
CONSENT CALENDAR
1. APPROVAL OF DEMAND REGISTER DATED MARCH 5, 1996.
2. ACCEPTANCE OF ASSESSMENT SEWER HOOK-UP FEE SUBSIDY PROGRAM PROJECT 95-09
AND AUTHORIZATION FOR CITY CLERK TO RECORD NOTICE OF COMPLETION.
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d_3'<DEPARTMENT REPORTS
CHAIR AND BOARD MEMBERS' ITEMS
PUBLIC HEARINGS
JOINT PUBLIC HEARING WITH THE CITY OF LA QUINTA
1. APPROVAL OF A FIRST AMENDMENT TO THE FIRST AMENDED AND RESTATED
DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE LA QUINTA
REDEVELOPMENT AGENCY AND E.G. WILLIAMS DEVELOPMENT CORPORATION.
A) RESOLUTION ACTION.
CLOSED SESSION
Note: Persons identified as negotiating parties where the City is considering acquisition of their
property are not invited into the Closed Session meeting.
1. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR PURSUANT TO
GOVERNMENT CODE SECTION 54956.8 CONCERNING POTENTIAL ACQUISITION AND/OR
DISPOSITION OF PROPERTY, INCLUDING TERMS AND CONDITIONS, LOCATED AT THE
SOUTHWEST CORNER OF DUNE PALMS ROAD AND HIGHWAY 111. PROPERTY OWNER
NEGOTIATOR: LEE AND ASSOCIATES.
ADJOURNMENT
000004"
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d_3'< DECLARATION OF POSTING
I, Saundra L. Juhola, Secretary of the La Quinta Redevelopment Agency, do hereby declare that the
foregoing agenda for the Redevelopment Agency Meeting of March 5, 1996 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, March 1,1996.
UNDRA L. JUH Secretary
La Quinta Redevelopment Agency
PUBLIC NOTICE
The La Quinta City Council Chamber is handicapped accessible. If special equipment is needed for the
hearing impaired. please call the City CIerk?s Office at 777-7025. 24-hours in advance of the meeting
and accommodations will be made.
Page 3
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*
OF
AGENDA CATEGORY:
BUSINESS SESSION
COUNCIL/RDA MEETING DATE: MARCH 5, 1996
CONSENT CALENDAR
ITEM TITLE:
STUDY SESSION
Demand Reg?Register Dated March 5, 1996 PUBLIC HEARING
RECOMMENDATION: Approve Demaud Register Dated March 5, 1996
BACKGROUND:
Prepaid Warrauts:
24326 24332) 3,S57.04
24333 2434S? 70,989.97
24349 24357) 360,861.68
24358) 710.00
Wire Transfers 1,102,682.11
PIR 13302-13378) 69,997.62
PIR Tax Transfers) 21,448.37 CITY DEMANDS $887,585.94
Payable Warrants:
234359 24462 775,482.91 RDA DEMANDS 1,518,443.76
$2,406,029.70 $2,406,029.70
FISCAL IMPLICATIONS:
Demand of Cash RDA $1,518,443.76
000004
Joh Ni Falconer, Finance Director
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d_3'.< cP4OF
AGENDA CATEGORY:
BUSINESS SESSION:
COUNCILIRDA MEETING DATE: March 5,1996 CONSENT CALENDAR:
ITEM TITLE: STUDY SESSION:
Acceptance of Assessment/Sewer Hook-Up Fee Subsidy Program PUBLIC REARING:
Project 95-09 and Authorization for City Clerk to Record Notice of
Completion
RECOMMENDATION:
Accept Project 95-09 and instruct the City Clerk to tile a Notice of Completion with the County
Recorder.
FISCAL IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
All work for Project 95-09 Low Mod Sewer Hook Up) has been completed in accordance with the
specifications.
FINDINGS AND ALTERNATIVES:
All work has been completed to specifications, there is no alternative but to accept the project.
TomHartung
Director of Building & Safety
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AGENDA CATEGORY:
OF? BUSINESS SESSION:
COUNCILIRDA MEETING DATE: March 5, 1996 CONSENT CALENDAR:
ITEM TIThE: STUDY SESSION:
Public Hearing on a Resolution of the Redevelopment PUBLTC HEARING:
Agency approving a First Amendment to the First Restated
and Amended Disposition and Development Agreement by
and between the Redevelopment Agency and E.G. Williams
Development Corporation
RECOMMENDATION:
Adopt Agency Resolution approving the First Amendment to the First Restated and Amended
Disposition and Development Agreement Attachrnent 1) by and between the City of La Quinta and
E. G. Williams Development Corporation.
FISCAL IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
On July 5, 1994, the Agency and E.G. Williams Development Company Developer") entered
into a Disposition and Development Agreement Initial DDA") that provided for Agency fmancial
assistance to facilitate the construction of 60 single-family homes, 91 multifamily apartments, and
a 5-acre flood control detention basin. The single-family dwellings were to be sold at affordable
housing costs to very low, low, and moderate income owner-occupied households, and the
multifamily units were to be rented, at affordable housing costs, to very low and low income senior
citizen households. To facilitate the sale and rental of these units at affordable costs, the Agency
provided a total of $4,531,430 in financial assistance; this assistance was in the form of
conveyance of 25.23 acres of property valued at $877,016 for the price of $1.00, and the provision
of $3,654,414 in financial assistance to construct both on- and off-site infrastructure improvements
and a flood control detention basin. All of these improvements were required to facilitate project
development. In return, the developer agreed to rent all 91 multifamily units for a 30-year period
at rents affordable to very low and low income senior households, and sell the 60 single-family
homes at sales prices that would be affordable to 10 very low income households, 10 low income
households, and 40 moderate income households. In order to facilitate the sale of 60 single-family
homes, the Agency's financial assistance, as allocated to the single-family homes, would be
converted to silent second trust deed mortgages that would fund the difference between an
affordable first trust deed mortgage and market sales prices. The silent second trust deeds also
included 30-year covenants to insure subsequent unit sales at prices affordable to very low, low,
and moderate income households.
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d_3'0< In September, 1994, the Initial DDA was amended to accommodate certain provisions in order for
the Developer to secure tax credit financing for the multifamily component. This amendment was
entitled the First Restated and Amended Disposition and Development Agreement."
Current Request
On January 2, 1996, Agency staff received a verbal request from the Developer to remove up to
fifteen moderate income housing units of the 40 moderate income units) from the Agency's
affordable housing program, and sell these units on a nonrestricted basis. The Developer stated
that current market conditions are inhibiting the sales of moderate income units to qualified
households. The unit prices are in a range that is competitive with other single-family
developments within the vicinity that offer aggressive home buyer incentives, but do not require
the imposition of 30-year affordability covenants. As such, the sales pace for the minirnally
assisted $1,000 per unit) moderate income units is slow, and the project's construction lender,
First Interstate Bank, desires increased sales activity. Noneligible moderate income home buyers
have expressed interest in purchasing these units these home buyers are noneligible because their
incomes exceed $51,950 a year), and the Developer would like to capture these sales and move
the unsold units, thus alleviating the lender's concerns.
In order to facilitate the Developer's request, the following modifications were negotiated; these
modifications are contained in the First Restated and Amended Disposition and Development
Agreement Amended DDA") and are summarized as follows:
* Release of up to 15 unitS from affordability covenants
The Amended DDA provides that up to 15 of the 40 units designated for moderate income
home buyers may be sold to households whose incomes exceed the moderate income
criteria as established by State law) or $51,950 a year. These units Market Rate Units")
would be sold at a higher price than the covenant restricted units, and 30-year affordability
covenants would not be imposed.
* Increased sales price for market rate units
The Market Rate Units would feature a higher sales price than the remaining covenant
restricted units. This would provide funds to reimburse the Agency for the Agency's
contribution to the land cost related to these units. The Amended DDA provides that the
new sales price for these Market Rate Units would be as follows:
ModelA $112,990
ModelB $117,990
ModelC $121,990
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d_3'1< * Agency reimbursement of land cost for Market Rate Units and funding of additional low
income units
The Developer would pay the Agency $6,500 per unit of the increased sales price for the
Market Rate Units. The Amended DDA provides that the Agency may dedicate these
monies to fund additional second trust deed mortgages for low income home buyers. Thus,
up to three of the remaining 25 moderate income units may be sold to low income
households.
FINDINGS AND ALTERNATIVES:
Options available to the Agency:
Approving the Amended DDA provides additional flexibility for the Developer to sell up to 4%
of the single-family homes at market prices. This would generate additional cash flow that would
improve the Developer's position with the construction lender, and ensure stable project funding.
Further, it would provide for an additional mix of households within the project, thus ensuring
better diversity within the neighborhood. Alternatives to the recommended action would be:
1. Approve the request as recommended, or
2. Deny the request, thus forcing the Developer to comply to existing project requirements.
ommunit Development Director
Attachments
Summary Report on the First Amendment to the First Restated and Amended Disposition and
Development Agreement
2. First Amendment to the First Restated and Amended Disposition and Development Agreement
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