2003 03 04 RDA Redevelopment Agency Agendas are
available on the City's Web Page
@ www. la-quinta, org
Redevelopment Agency
Agenda
CITY COUNCIL CHAMBERS
78-495 Calle Tampico
La Quinta, California 92253
Regular Meeting
Tuesday, March 4, 2003 - 2:00 P.M.
Beginning Res. No. RA 2003-06
I. CALL TO ORDER
Roll Call:
Agency Board Members: Adolph, Osborne, Perkins, Sniff, Chairperson Henderson
II. PUBLIC COMMENT
At this time, members of the public may address the Redevelopment Agency on any matter not
listed on the agenda. Please complete a "request to speak" form and limit your comments to
three minutes. Please watch the timing device on the podium.
III. CLOSED SESSION
NOTE: Time permitting, the Redevelopment Agency Board may conduct Closed Session
discussions during the dinner recess. In addition, when the Agency is considering acquisition
of property, persons identified as negotiating parties are not invited into the Closed Session
Meeting.
1. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR, MARK WEISS,
PURSUANT TO GOVERNMENT CODE SECTION 54956.8 CONCERNING POTENTIAL
TERMS AND CONDITIONS OF ACQUISITION AND/OR DISPOSITION OF REAL PROPERTY
LOCATED SOUTHEAST OF THE MILES AVENUE AND WASHINGTON STREET
INTERSECTION AND NORTH OF THE WHITEWATER CHANNEL (AP NUMBERS 604-
040-012/013 and 604-040-022/023). PROPERTY OWNER/NEGOTIATOR: RICHARD
OLIPHANT, CALIFORNIA INTELLIGENT COMMUNITIES, LLC.
Redevelopment Agency Agenda March 4, 2003
2. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR, MARK WEISS,
PURSUANT TO GOVERNMENT CODE SECTION 54956.8 CONCERNING POTENTIAL
TERMS AND CONDITIONS OF ACQUISITION AND/OR DISPOSITION OF REAL PROPERTY
LOCATED SOUTH OF AVENUE 52, WEST OF THE COACHELLA BRANCH OF THE ALL
AMERICAN CANAL (AP NUMBERS 770-260-017, 772-290-006, 772-310-002 AND
003). PROPERTY OWNER/NEGOTIATOR: CHEVIS HOSEA, KSL DESERT RESORTS, INC.
3. CONFERENCE WITH THE AGENCY'S REAL PROPERTY NEGOTIATOR, JERRY HERMAN,
PURSUANT TO GOVERNMENT CODE SECTION 54956.8 CONCERNING POTENTIAL
TERMS AND CONDITIONS OF ACQUISITION AND/OR DISPOSITION OF REAL PROPERTY
LOCATED AT THE SOUTHWEST CORNER OF HIGHWAY 111 AND WASHINGTON
STREET (AP NUMBERS 604-050-005 AND 016). PROPERTY OWNER/NEGOTIATOR:
M/H REALTY PARTNERS II, LP.
RECONVENE AT 3:00 PM
IV. PUBLIC COMMENT
At this time members of the public may address the Agency Board on items that appear within
the Consent Calendar or matters that are not listed on the agenda. Please complete a "request
to speak" form and limit your comments to three minutes. When you are called to speak,
please come forward and state your name for the record. Please watch the timing device on
the podium.
For all Agency Business Session matters or Public Hearings on the agenda, a completed
"request to speak" form should be filed with the City Clerk prior to the Agency beginning
consideration of that item.
V. CONFIRMATION OF AGENDA
VI, APPROVAL OF MINUTES
1. APPROVAL OF MINUTES OF FEBRUARY 18, 2003.
VII. CONSENT CALENDAR
Note: Consent Calendar items are considered to be routine in nature and will be approved by
one motion.
1. APPROVAL OF DEMAND REGISTER FOR MARCH 4, 2003.
Redevelopment Agency Agenda Page 2 March 4, 2003
VIII. BUSINESS SESSION
1. CONSIDERATION OF AN APPROPRIATION OF UP TO $220,000 FROM PROJECT AREA
NO. 1 LOW/MOD INCOME HOUSING FUND TO ACQUIRE A SINGLE FAMILY HOME
LOCATED AT 53-625 AVENIDA NAVARRO.
A. MINUTE ORDER ACTION
2. CONSIDERATION OF AN APPROPRIATION OF UP TO $60,000 FROM PROJECT AREA
NO. 1 LOW/MOD INCOME HOUSING FUND TO ACQUIRE A SINGLE FAMILY HOME
LOCATED AT 52-125 AVENIDA RUBIO.
A. MINUTE ORDER ACTION
IX. STUDY SESSION - None
X. CHAIR AND BOARD MEMBERS' ITEMS
Xl. PUBLIC HEARINGS - None
XII. ADJOURNMENT
Adjourn to a regularly scheduled meeting of the Redevelopment Agency to be held on March
18, 2003, commencing with closed session at 2:00 p.m. and open session at the conclusion
of the 3:00 p.m. City Council business session in the City Council Chambers, 78-495 Calle
Tampico, La Quinta, CA 92253.
DECLARATION OF POSTING
I, June S. Greek, City Clerk of the City of La Quinta, do hereby declare that the foregoing agenda for
the La Quinta Redevelopment Agency meeting of Tuesday, March 4, 2003, 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 and at Stater Bros. 78-630 Highway 111, on Friday, February 28, 2003.
DATED: February 28, 2003
J~.NE/ S. GREEK, CMC, Ci~k '
City of La Quinta, California
Redevelopment Agency Agenda Page 3 March 4, 2003
AGENDA CATEGORY:
BUSINESS SESSION
COUNCIL/RDA MEETING DATE: MARCH 4, 2003
CONSENT CALENDAR /
ITEM TITLE:
STUDY SESSION
Demand Register Dated March 4, 2003 PUBLIC HEARING
RECOMMENDATION:
It is recommended the Redevelopment Agency Board:
Receive and File the Demand Register Dated March 4, 2003 of which $408,514.30
represents Redevelopment Agency Expenditures.
PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA
AGENDA CATEGORY:
BUSINESS SESSION: /
COUNCIL/RDA MEETING DATE: March 4, 2003
CONSENT CALENDAR:
ITEM TITLE: STUDY SESSION:
Consideration of an Appropriation of Up to
$220,000 from Project Area No. 1 Low Mod PUBLIC HEARING:
Income Housing Fund to Acquire a Single Family :
Home Located at 53-625 Avenida Navarro
RECOMMENDATION:
Approve the acquisition of the property located at 53-625 Avenida Navarro (the
"Property"), authorize the Executive Director to appropriate the funds necessary to
acquire, rehabilitate, and resell the Property to another Iow income household and
authorize Rosenow Spevacek Group ("RSG") to act on the Agency's behalf at the sale.
FISCAL IMPLICATIONS:
To purchase this Property at the Trustee's Sale will require an expenditure from the
Project Area No. 1 Low Mod Housing Fund in an amount not to exceed $220,000.
Legal fees, rehabilitation costs and resale expenses are not expected to exceed
$35,000 of this amount.
BACKGROUND AND OVERVIEW:
Staff has been advised that on March 28, 2003 a single family home located at 53-
625 Avenida Navarro will be sold at a Trustee's foreclosure sale. This house was sold
to the current owner in October, 2000 with a second trust deed amount of $50,000
provided to a Iow income household as part of the La Quinta Housing Program. The
current outstanding loan balance of the first trust deed including foreclosure costs is
anticipated to be approximately $80,000. This figure plus the second trust deed of
950,000 represents total encumbrances of 9130,000 against the property.
The additional 955,000 is being requested in the event other bidders are present who
may bid the price over the total encumbrances because the market value of properties
in the Cove area has increased significantly in recent months. This home was built in
2000 and comps of recent sales of properties of a similar age and size indicate a
market value of approximately 9180,000. The encumbrances of 9130,000 plus the
G:\WPDOCS\CC Stf Rpts\53-625 ave navarro acq.doc
$55,000 excess provides RSG the ability to bid up to $185,000, but only if conditions
at the Trustee's Sale warrant. Based on the 2002 affordable housing cost allowances
which are still in effect, the Agency can anticipate the ability to resell this property to
another Iow income household who would assume the existing second trust loan for
approximately 8150,000, of which the Agency's total out of pocket cost would be
approximately 8115,000 (pay off of the first trust deed of 880,000 plus 835,000 in
rehabilitation and resale costs).
In order to protect the Agency's second trust deed investment of 850,000 and
maintain the affordability covenant, the Agency would have to purchase the Property
at the Trustee's foreclosure sale. The Property is subject to public bid and will be sold
to the highest bidder. If the Agency does not elect to purchase the Property, then the
Iow income affordability covenant would be extinguished. If the Agency is not the
successful bidder, any amount less than 8130,000 being offered for the Property will
cause a loss of the Agency's second trust deed and a loss of a qualifying unit for its
inclusionary housing requirement. Upon acquisition of the Property, RSG will
coordinate with the Agency attorney to evict the occupants.
FINDINGS AND ALTERNATIVES:
1. Approve the acquisition of the property located at 53-625 Avenida Navarre,
authorize the Executive Director to appropriate the funds necessary to acquire,
rehabilitate, and resell the Property to another Iow income household and
authorize Rosenow Spevacek Group ("RSG") to act on the Agency's behalf at
the sale; or
2. Deny the recommendation and provide staff with alternative direction.
Respectfully submitted,
ry He/rman
mmunity Development Director
Approved for submission by:
Thomas P. Genovese, Executive Director
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BUSINESS SESSION:
COUNCIL/RDA MEETING DATE: March 4, 2003
CONSENT CALENDAR:
ITEM TITLE: STUDY SESSION:
Consideration of an Appropriation of Up to
$60,000 from Project Area No. 1 Low Mod PUBLIC HEARING:
Income Housing Fund to Acquire a Single Family
Home Located at 52-125 Avenida Rubio
RECOMMENDATION:
Approve the acquisition of the property located at 52-125 Avenida Rubio (the
"Property"), authorize the Executive Director to appropriate the funds necessary to
acquire, rehabilitate, and resell the Property to another Iow income household and
authorize Rosenow Spevacek Group ("RSG") to act on the Agency's behalf at the sale.
FISCAL IMPLICATIONS:
To purchase this Property at the Trustee's Sale will require an expenditure from the
Project Area No. 1 Low Mod Housing Fund in an amount not to exceed $210,000.
Legal fees, rehabilitation costs and resale expenses are not expected to exceed
$35,000 of this amount. Staff previously appropriated $150,000 for a foreclosure
sale where the Agency was unsuccessful in bidding on a Iow-mod house. These funds
will be used first leaving a remaining amount to appropriate of $60,000.
BACKGROUND AND OVERVIEW:
Staff has been advised that on March 11, 2003, a single family home located at 52-
125 Avenida Rubio will be sold at a Trustee's foreclosure sale. This house was sold
to the present owner in August, 1997 with a second trust deed amount of $32,820
provided to a Iow income household as part of the La Quinta Housing Program. The
current outstanding loan balance of the first trust deed including foreclosure costs is
anticipated to be approximately $68,000. This figure plus the second trust deed of
$32,820 represents total encumbrances of $100,820 against the property.
The additional $74,180 is being requested in the event other bidders are present who
may bid the price over the total encumbrances because the market value of properties
in the Cove area has increased significantly in recent months. This home was built in
1979 and comps of recent sales of properties of a similar age and size indicate a
market value of approximately $170,000. The encumbrances of $100,820 plus the
G:\WPDOCS\CC Stf Rpts\52-125 ave rubio acq.doc 7
$74,180 excess provides RSG the ability to bid up to $175,000, but only if conditions
at the Trustee's Sale warrant. Based on the 2002 affordable housing cost
allowances, which are still in effect, the Agency can anticipate the ability to resell this
property to another Iow income household who would assume the existing second
trust deed loan for approximately $135,000, of which the Agency's total out of
pocket cost would be approximately $103,000 (pay off of the first trust deed of
$68,000 plus $35,000 in rehabilitation and resale costs).
In order to protect the Agency's second trust deed investment of $32,820 and
maintain the affordability covenant, the Agency would have to purchase the Property
at the Trustee's foreclosure sale. The Property is subject to public bid and will be sold
to the highest bidder. If the Agency does not elect to purchase the Property, then the
Iow income affordability covenant would be extinguished. If the Agency is not the
successful bidder, any amount less than $100,820 being-offered for the Property will
cause a loss of the Agency's second trust deed and a loss of a qualifying unit for its
inclusionary housing requirement. Upon acquisition of the Property, RSG will
coordinate with the Agency attorney to evict the occupants.
FINDINGS AND ALTERNATIVES:
Alternatives available to the Redevelopment Agency Board include:
1. Approve the acquisition of the property located at 52-125 Avenida Rubio (the
"Property"), authorize the Executive Director to appropriate the funds necessary
to acquire, rehabilitate, and resell the Property to another Iow income household
and authorize Rosenow Spevacek Group ("RSG') to act on the Agency's behalf
at the sale; or
2. Deny the recommendation and provide staff with alternative direction.
Respectfully submitted,
y Her~a~
munity Development Director
Approved for submission by:
Thomas P. Genovese, Executive Director
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