1990 04 03 RDAing -> 10_ ZijZ/Zjj"*AA('kIiuZ.
REDEVELOPMENT AGENCY
AGENDA
CITY COUNCIL CHAMBERS
78-105 Calle Estado
La Quinta, California 92253
RegulaZ Meeting
April 3, 1990 7:00 Z.M.
CALL TO ORDER
Beginning Res. No. 90-3
a. Roll Call
HEARINGS
BUSINESS SESSION
1. Adoption of Resolution of the Board of Directors of the La
Quinta RedeveZopment Agency Authorizing the Issuance of Tax
Allocation Refunding Bonds of the Agency In a Principal
Amount Not to Exceed Twenty Million Dollars $20,000,000)
To Refund Certain Obligati0Z5 of the Agency and Approving
an Escrow AgreemeZZ
a) Resoluti0n Action. Z Z
CONSENT ITEMS
1. Approval of Minutes of March 14 and March Z 990.
CLOSED SESSION
a. Discussion of Litigati0Z
a. City of Indiollndio Case No. 57496
ADJOURNMENT
DECLARATION OF POSTING
I, Saundra L. Juhola, Secretary of the La Quinta Redevelopment
Agency do hereby declare that the foregoing agendZ for the
RedevelopmeZZ Agency Meeting of April 3, 1990 was posted on the
outside entry to the Council Chamber, 78-i0Z Caije Estado and on
the bulletin board at the La Quinta Post Office on Friday, Zarch
30, 1990.
aZd: Marffl/h30;90.
SAUNDRA L. JUHOZ Secretary
La Quinta RedeveloDment AaenZZ
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ing -> 10_ CITY COUNCIL CHAMBERS
78-105 Calle Estado
La Quinta, California 92253
Regular Meeting
March 20, 1990 7:00 P.M.
CALL TO ORDER Beginning Res. No. 90-3
a. Roll Call
HEARINGS
BUSINESS SESSION
1. Adoption of Resolution of the Board of Directors of the La
Quinta Redevelopment Agency Authorizing the Issuance of Tax
Allocation Refunding Bonds of the Agency in a Principal
Amount Not to Exceed Twenty Million Dollars $20,000,000)
To Refund Certain Obligations of the Agency and Approving
an Escrow Agreement.
a) Resolution Action.
CONSENT ITEMS
1. Approval of Minutes of March 14 and March 20, 1990.
CLOSED SESSION
a. Discussion of Litigation
a. City of Indio/Indio Case No. 57496
ADJOURNMENT
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 April 3, 1990 was posted on the
outside entry to the Council Chamber, 78-105 Calle Estado and on
the bulletin board at the La Quinta Post Office on Friday, March
30, 1990.
March 30 990.
JUHOZSecretary
La Quinta Redevelopment Agency
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LA QUINTA REDEVELOPMENT AGENCY
MINUTES
MARCH 20, 1990
Meeting of the La Quinta Redevelopment Agency was called to order
by Chairman Pena.
PRESENT: Mr. Bohnenberger Mr. Rushworth, Mr. Sniff, Chairman Pena
ABSENT: Mrs. Bosworth
PUBLIC HEARINGS
BUSINESS SESSION
1. CONSIDERATION OF FUNDING REQUEST FOR EMERGENCY SHELTER FROM
THE COUNTY OF RIVERSIDE HOUSING AUTHORITY.
Mr. Kiedrowski advised that there is a question as to whether
or not this is a legal expenditure of Low-Moderate Set-Aside
Funds and suggested that if it is approved, that it be so
with assurance from County Legal Counsel that it is
appropriate.
The Agency's Legal Counsel, Ms. Brady concurred that it is a
decision County Legal Counsel should make.
Council concurred that the matter should be set aside until
we have clear direction as to the legality.
MOTION It was moved by Mr. Bohnenberger, seconded by Mr.
Sniff that this matter be tabled. Motion carried
unanimously. MINUTE ORDER NO. RA9O-8.
2. CONSIDERATION OF RE-HOUSING PLAN FOR THE DEMOLITION OR
DISPLACEMENT OF LOW AND MODERATE INCOME HOUSING WITHIN THE
REDEVELOPMENT PROJECT AREA.
Mr. Kiedrowski advised that there have been projects that may
require relocation of tenants prior to acquisition, Such as
the apartment complex the Agency is looking at for the
Nicholson Project and the four unit complex currently under
abatement on Washington Street. If the tenants require
relocation, this will allow staff to hire a specialist on an
as-needed basis to provide those services.
MOTION It was moved by Mr. Sniff, seconded by Mr.
Bohnenberger that the Agency authorize staff to retain a
tenant relocation specialist to assist with relocation
activities on an as-needed basis. Motion carried
unanimously. MINUTE ORDER NO. RA9O-9.
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ing -> 10_Redevelopment Agency 2 March 20, 1990
MiZutes
WRITTEN COMMUNICATIONS
CONSENT CALENDAR
1. APPROVAL OF MINUTES OF MARCH 6, 1990.
MOTION It was moved by Mr. Bohnenberger, seconded by Mr.
Sniff that the Consent Calendar be approved as submitted.
Motion carried unanimously. MINUTE ORDER NO. RDA 90-10.
The Board adjourned to Closed Session to discuss litigation
Indio vs La Quinta Redevelopment Agency pursuant to Government
Code Section 54956.9 and Section 54956.8 to discuss City of La
Quinta versus Burkett and real property negotiations concerning
the parcel located near Adams and Westward Ho and seven lots in
escrow pending, Lots 7, 8,9, 10, 11, 12, & 13 and property owned
by Griswold adjacent to the Post Office and to give legal
direction to the Council in personnel matters.
There being no further business, the meeting was adjourned.
RZec tively subZedZ
Z
SAUNDRA L. JUHOLk; Secretary
La Quinta Redevelopment Agency
C;
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78-105 ESTADO LA QUINTA, CALIFORNIA 92253 Z619) 564-2246
FAX 619) 564-5617
MINUTE ORDER
OF
LA QUINTA REDEVELOPMENT AGENCY
I, SAUNDRA L. JUHOLA, Secretary of the La Quinta Redevelopment
Agency, do hereby certify that the following motion was duly
made by the La Quinta Redevelopment Agency on April 3, 1990:
MOTION It was moved by Mr. Sniff, seconded by Mr. Bohnenberger
that the Settlement Agreement and Release between the La Quinta
Estate and Coachella Valley Water District be approved.
MOTION CARRIED UNANIMOUSLY.
MINUTE ORDER NO. RA 90-12.
1/
U;IZ; L. JUHOL etary
La Quinta Redevelopment Agency
2
MAILING ADDRZSS P.O. BOX 1bZO4 LA QUINTA, CALIFORNIA 92253
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COACHELLA VALLEY WATER DISTRICT
POST OFFICE BOX 1O58Z COACHELLA, CALIFORNIA 92236. TELEPHONE 619)3982651
DIRECTORS OZFZCERS
TELLISCODEKAS. PRESIDENT THOMAS E. LEVY, GENERAL MANAGER.CHIEF ENGINEER
RAYMOND R. RUMMONDS, VICE PRESIDENT 9ZRNARDINE SUTTON, SECRETARY
JOHN P. POWELL KEITH H. A,NSWORTH. ASS,STANT GENERAL MANAGER
DOROTHY M. NICHOLS April 11, 1990 REDWINE AND SHERRZLL. ATTORNEYS
THEODORE J. FISH
File: 0121.3198
Ron Kiedrowski, Executive Director
La Quinta Redevelopment Agency
Post Office Box 1504
La Quinta, California 92253
Dear Mr. Kiedrowski:
Subject: La Quinta Storniwater Project, Phase II
In 1985, the Coachella Valley Water District District) filed condemnation
actions against La Quinta Estates in order to obtain the property needed for the
La Quinta Stormwater Project, Phase II. Enclosed is a drawing showing the
property.
The District completed construction on this property as part of the La Quinta
Flood Control Project, Phase II, in 1987. The condemnation case was tried in
1988 with a verdict of $2.5 million plus attorneys and appraisal fees of
approximately $168,000 plus interest. The total for the judgment as of
December 31, 1989, is $3,568,702. After review of the trial record, the
District believes that the judge erred in many of his rulings and the District
appealed. The attorneys for the District have filed the appellate brief and are
waiting for La Quinta Estates to file their reply. It is anticipated that the
appeal will be heard in 1990.
For trial purposes, the property is appraised on its condition in June 1985. At
that time, the property consisted of 419 acres of undeveloped land without flood
protection and zoned for one unit per 20 acres. The basic argument in the trial
is whether the property had a reasonable probability of being rezoned for
residential development at a higher density than the one unit per 20 acres and
the cost of providing flood protection to the property. The District's
appraiser, using one unit per 20 acres, placed a value on the property of
$850,000. The appraiser for La Quinta Estates believed that 142 acres would be
rezoned and reached a value of $4,825,267. The verdict was $2.5 million.
Assuming the District is successful in its appeal, the case would be sent back
to the trial court with a different judge to hear it. The cost of the new trial
would be $100,000 to $200,000 for the District and a similar amount for
La Quinta Estates. Assuming a verdict in the District's favor, La Quinta
Estates would appeal that. In the event that the appellate court does not rule
TRUE CONSERVATION
USE WATER WISELY
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in the District's favor, the District would appeal the case to the California
Supreme Court. As a result of the cost and time involved in the legal battle,
Bill Hannon representing La Quinta Estates met with the Redevelopment Agency
Agency) and the District to see if a settlement could be reached. Mr, Hannon
agreed to accept $3 million for all costs including land, attorneys fees,
interest and appraisal fees. Enclosed is a copy of the settlement agreement.
This proposal is to compromise and settle an existing litigation and is not to
be used as evidence in this or any other case,
In reviewing this settlement, we believe that it is fair to both parties. While
Redwine and Sherrill, the District's legal counsel, believes the chances of
winning the appeal and reversal are excellent, the Agency and the District must
consider the risk.
In trying to evaluate the risk associated with our options and to compute the
expected value of our actions relative to this case, we have developed six
expected value tables. These tables attempt to determine the risk to the Agency
and the District from different judgements at different probabilities. Based on
this approach as shown on Table 1, an optimistic approach would result in an
expected cost of $3.12 million and a pessimistic view would result in expected
cost of $5.48 million. As a result, the settlement of $3 million appears to be
fair and in the best interest of the District and the Agency.
In reviewing the funds available, the Agency as of April 1, 1990, has $3,480,000
on deposit with the District or with the court, deducting the $500,000
settlement with the Burns Foundation, the Agency has almost all of the funds
needed for the settlement.
In summary, we believe based on our experience that the chances of getting a
verdict that would result in a total cost for the La Quinta Estates property
currently in litigation of less than $3 million including interest, attorneys
fees and District cost are low. Therefore, we are recommending the above
settlement to our board of directors and to the Agency which is providing the
funds for this property. We would appreciate early consideration of this
settlement proposal by the Agency so that we can avoid incurring additional
legal costs.
If you have any questions or need additional information, please call me.
Yours very truly,
Tom Levy
General Manager-Chief neer
TEL:il/l
Enclosures/as
cc: Justin McCarthy with enclosures)
Redwine and Sherrill
COAGHELLA ZA[LEY WATER DISTRICT 2
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