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2003 03 18 RDA Minutes LA QUINTA REDEVELOPMENT AGENCY MINUTES MARCH 18, 2003 A regular meeting of the La Quinta Redevelopment Agency was called to order by Chairperson Henderson. PRESENT: Board Members Adolph, Osborne, Perkins, Sniff, Chairperson Henderson ABSENT: None PUBLIC COMMENT - None CLOSED SESSION Council Member Perkins and the City Manager did not participate in Item No. I due to potential conflicts of interest. 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 northwest of the Washington Street and Avenue 48 intersection (APN 643-090-024). Property owner/negotiator: Christi Salamone, La Quinta Arts Foundation. 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 southeast of the Miles Avenue and Washington intersection and north of the Whitewater Channel (APN's 604-040-012/013 AND 604-040-022/023). Property Owner/Negotiator: Richard Oliphant, California Intelligent Communities, LLS. 3. Conference with Agency's real property negotiator, Jerry Herman pursuant to Government Code Section 54956.8 concerning acquisition and/or disposition of real property located north of Miles Avenue and east of Adams Street; south of Westward Ho Drive and west of Roadrunner Lane; east of Dune Palms Road immediately north of the Whitewater Channel; northwest of the intersection of Dune Palms Road and Avenue 48; and south of Avenue 52 and west of Monroe Street (APNs: 604-032-022; 649-030-034; 649-040-007; 649-040-014; 767- 200-002,003,004, 005,006, 007, 0.08,009,010; 767-200-004; 764-240- 002, 003, 004, 005; 764-290-001,002; 772-270-016; 773-072-005,014, 020; 773-077-013, 014. Property Owner(s)/Negotiator(s); Sheila Weldon, Joe Hammer, 4 West Construction, Dune Palms Mobile Estates, NRI La Ouinta Land LLC, Bernard Debonne, Coral Option I LLC, Bruce and Marilyn Throckmorton Trustee, Richard Varge, Donald and Julie Parker, and Audrey Ostrowsky. (See Agency Counsel's announcement on Page 15 for corrections/additions to this item.) Redevelopment Agency Minutes 2 March 18, 2003 The Agency recessed to Closed Session to and until the hour of 3:00 pm. 3:00 P.M. PUBLIC COMMENT - None CONFIRMATION OF AGENDA - Confirmed APPROVAL OF MINUTES MOTION - It was moved by Board Members Sniff/Adolph to approve the Minutes of March 4, 2003, as submitted. Motion carried unanimously. CONSENT CALENDAR 1. APPROVAL OF DEMAND REGISTER DATED MARCH 18, 2003. 2. TRANSMITTAL OF TREASURER'S REPORT FOR JANUARY 31, 2003. 3. TRANSMITTAL OF REVENUE & EXPENDITURES REPORT FOR JANUARY 31, 2003. MOTION - It was moved by Board Members Sniff/Adolph to approve the Consent Calendar as recommended. Motion carried unanimously. BUSINESS SESSION 1. CONSIDERATION OF THE CONCEPTUAL RESORT MASTER PLAN FOR THE RANCH. Assistant Executive Director Weiss presented the staff report. Gil Martinez, of GMA International, reviewed the revised conceptual master plan and outlined the changes. Board Member Adolph stated he has several questions and comments that he would like the consultant to consider and respond to at a later time. He asked how much space is between the fairways, and noted good quality golf courses Redevelopment Agency Minutes 3 March 18, 2003 ~ do not have fairways parallel to each other. He stated he doesn't feel there is enough space behind the greens on the mountain course for sponsors during tournaments. He asked if the yardage figures on both courses are from the black tees, and stated he feels .anything less than 400 yards on a Par 4 is ridiculous. He asked if tunnels would be used to cross under the streets within the golf courses. He noted maintenance facilities need parking for employees, and suggested the facilities be located off of Avenue 54 for easy access and maybe making a deal with KSL for some of their vacant space. He feels the special use area should be expanded for junior golf, and the junior golf area proposed in this concept should be utilized for future needs of the two golf courses. He doesn't favor having a big area for junior golf. He also doesn't feel a playground and soccer fields are necessary, and suggested they remain as passive areas. He commented on the need for restroom facilities and an emergency phone system on the golf courses, and stated he feels the multi-use trails should be restricted to the perimeter and not go through the golf courses. He voiced concern about someone getting hit, and noted golfers would not appreciate people walking through the golf course area. He suggested the existing trees be utilized instead of removing them, especially those along the canal and Avenue 52 and at the Kennedy ranch. He referenced the fairways _.- along Avenue 52 and Jefferson Street, and suggested they be angled away from the streets to avoid hitting into traffic. He asked about the acreage of each course, and noted at least 200 acres is needed to provide a good course. He feels the depth of the driving range should be at least 300 yards, and asked if the roads interconnect from the hotel and the clubhouse. He believes the master plan is first class but, due to the costs, feels it's time to be realistic, and noted the developer of the hotel will have his own thoughts about what the hotel will be. He asked what the plan is for the casitas, and suggested the possibility of partnering with the developer. He concluded by saying he would like to see a cost analysis on a monthly basis as to what is being spent and where it is going. He doesn't want to spend thousands of dollars to come up with a plan. Chairperson Henderson noted staff may have to address some of the questions instead of the consultant. Board Member Perkins stated he looks forward to hearing the responses to Board Member Adolph's questions and comments. He asked about the number of rooms in each hotel, and commented on the need for sufficient space for the hotels to expand. He has questions about the parking, and feels a road along the hillside would be a mistake and detract from the beauty of the site. He stated he also wishes to keep an eye on the costs. Redevelopment Agency Minutes 4 March 18, 2003 Board Member Osborne asked why the large range (25,000 to 125,000 square feet) in the retail area. He stated he would like to have more information on the water source and any water-recycling plan. He also has concerns about multi- use trails being within the golf course area, and is not sure a public park is needed in the project. He is not sure about having a road along the hillside, and noted the tournament course should be a challenging course. He likes the idea of a bi-monthly cost analysis, and wants to see a budget developed and maintained because there are too many numbers out there at the present time. He also asked about a list of potential names for the project. The Agency concurred to recess and continue this item at 7:00 p.m. 7:00 P.M. The Agency reconvened and continued with Business Item No. 1. Board Member Sniff voiced concern about the Agency Members' limited opportunities to offer meaningful comments on this project. He also expressed dissatisfaction that his idea for a road next to the mountains has been presented with a huge list of disadvantages and little or no effort to find an advantage. He questioned the cost of the road, which he expected to be two lanes, and the idea that a road would be incompatible with golf. He asked how money can be made on public discount golf when the costs are basically the same whether it's 'a tournament course or not. He thought the original rational was to have significant income from hotels but he doesn't see long-term planning being addressed in the concept master plan. He stated he understood the course was supposed to be for the public and is not sure what has happened to the discount golf. Mr. Weiss stated the staff report includes an analysis by ERA that looks at the revenue potentials of the golf course, and the analysis assumes that public play would be available for La Quinta residents at $45 per round and $135 per round for non-residents. He noted the fees at Desert Willow in Palm Desert are $45 for residents and $165 for non-residents. Board Member Sniff asked how public discount golf will be balanced with hotel visitor golf, and who would be bumped if there are a lot of resident golfers. He noted there's no point in doing the project if it doesn't make money for the City. Mr. Weiss stated the issue of how to assign available playing time will have to be addressed by the Agency but noted hotel play will be needed to make the golf courses profitable. Redevelopment Agency Minutes 5 March 18, 2003 Board Member Sniff asked iif residents would have equal access to the tournament course. Mr. Weiss stated each of the golf course architects will probably address that issue differently. He recently attended a conference where a number of golf course architects talked about how a course can be designed to be challenging to tournament professionals and still allow all classes of golfers to play. He stated a tournament course is not an essential component but it does have value because golfers like to play on a course where celebrities and professionals have played. He noted there is potential for being able to charge more to play on a course with prestige. Board Member Sniff voiced concern about there being a conflict regarding who will have priority in playing. He noted there is no provision for clustering of multiple hotels on the site, and doesn't feel the plan is projecting long-term. He also voiced concern about an over-proliferation of water in the plan. Mr. Martinez stated there are variables within the plan ranging from a 6-acre lake to a 20-acre lake. '- .... Board Member Sniff commented on evaporation of water from lakes, and the potential for future water shortages. He questioned the proposed concept allowing for phasing, and stated he would like to see a practical layout for significant and functional phasing of the project. He stated he also agrees with the need to keep a close eye on the costs. He commented on the need for flexible parking during tournaments, and restrooms for the golf courses. He would like to know if the project will be superior to any in the area and at an affordable cost. He asked what unique concepts and creativity elevate this project above and beyond the competition in the area, and what is it going to cost. He believes this is a one time shot, and is concerned what will happen if it doesn't pay. He voiced concern that the process hasn't got down to business points at an earlier time. He wants to know what the project is going to cost, if the City can afford it, and what the City can expect to derive in revenues from the project. He feels by producing one functional golf course complex with hotel locations, the City could postpone spending any additional money for 2 to 5 years if necessary. He has some problems with the process and the result, and feels the proposed concept has major flaws. He also asked why his suggested name for the project was not included in the staff report. Chairperson Henderson thanked the consultant for addressing many of the issues discussed at the previous meeting, and stated she felt everyone had been given a significant opportunity to participate. She feels the project has potential for being superior to others in the Valley by using the water theory and perhaps Redevelopment Agency Minutes 6 March 18, 2003 having a few tees designed into the toe of the slope. She stated she could support the water use as long as it is supported by CVWD. She agreed the trail system should not go through the project, and feels it should be in the mountain area, as high as allowed, with maybe one trail to the community center. As for the budget, she stated she would not be comfortable having this discussion had there not already been a layout for how this project is going to be financed with some sense of the revenue return. She doesn't have a problem with the information coming back again, and suggested it be put in booklet form for Agency Members to refer to. She agreed with phasing the project, and suggested the possibility of an overlay in the concept. She doesn't feel she needs to know how the hotel and retail areas will be financed because they will be built by a developer when the market is ready. She understood the hotel and retail areas are flexible areas, and that there is land area for up to four hotels. She is not sure four hotels will ever be needed but definitely sees space for three hotels over the next 10 years. She agrees with putting the maintenance facility on Avenue 54, and doesn't support the northeast corner being a park site. She wasn't sure about putting the junior golf near the Dave Pelz School, and has heard some question as to whether or not a nine-hole junior golf course is even needed. She feels the water, trail system, and potential retail site for the resort hotels will help the project be successful. As for public play versus hotel play on the golf courses, she noted one of the Arizona resorts rotates the course use on a daily basis. She would like to see the Plan page regarding Retention, Irrigation, Lakes, Water, and Drainage Systems refi:~ed and put in laminate plastic and made available to the public. Mr. Martinez stated they plan to place it on the web site. Chairperson Henderson stated she doesn't support having a road at the base of the mountain, and feels the trail system should go in and out of that area. She feels it's critical to push for the maximum use possible out of the side of the mountain for the trail system. Board Member Perkins spoke regarding the water concerns, and stated he understood the idea is to take the water presently running around the area and redirect it through the area. He doesn't feel a 25-acre lake is very big, and doesn't have a problem with what has been proposed. He feels water is what will make this golf course different from the others. He doesn't have a problem with the water use if CVWD doesn't have a problem with it, and referred to the large lake in Indio that was approved by the water company. He also doesn't feel evaporation will be any greater than routine use of water in that area. He believes it's important for the project to have a top tournament course, and would like to see a second course for average golfers. As for the name, he stated he doesn't like the three mentioned in the staff report nor the one Redevelopment Agency Minutes 7 March 18, 2003 7-- ~ previously suggested by Board Member Sniff. He feels the Agency should work together to fine tune the concept. Board Member Adolph agreed with fine tuning the concept, and commented on how tee times are resolved at PGA West. He doesn't feel that issue will be a problem. As for tournament course versus public course, he stated the only difference between them is placement of the tees. He referenced the possibility of partnering with a developer, such as Wells Marvin, on the casitas, and noted one way to get a return on the investment, along with TOT, is to sell the casitas. He feels what the consultant has done up to this time is fine. Board Member Sniff explained what he was referring to is the monetary difference in producing a tournament course versus a public course. Chairperson Henderson noted the City will have to consider a deluxe course if it wants one that is above the others. Mr. Martinez proceeded to respond to Agency questions and/or comments. In regard to parallel fairways and lengthening of tee boxes, he stated the golf course architect will address those issues in the design of the golf courses. He stated some of the holes can be moved to provide more room for sponsors. He feels 180 acres for each golf course is enough land to create a beautiful, tournament-quality course, and have room set aside for tournament-type activity. As for road crossings, he suggested a tunnel at the entrance and an at-grade crossing near the special use area. He reviewed the three maintenance facility site options, and stated some of the golf course operators they have talked to indicated a preference for the Avenue 52 site because it is centrally located. He noted one disadvantage to that location is the driveway being on the "S" curve at Avenue 52. Board Member Adolph commented on the speed of traffic in that area, and noted it would have to be a right-in, right-out movement. Mr. Martinez agreed Avenue 54 may be a better location, and that the only drawback is that it is not centrally located. As for expanding the Dave Pelz School into the special use area for junior golf, Mr. Martinez stated the concern would be in putting a Iow-generating revenue use next to a great piece of property. He commented on the need to place the best land use on the best property to generate a higher revenue. He stated the ---- special use area can be utilized for a world-class spa with spa villas, hotel, residence club, etc. Redevelopment Agency Minutes 8 March 18, 2003 Board Member Adolph pointed out the Dave Pelz School is on a year-to-year lease, and that junior golf could be utilized in the special use area during that lease time and until a higher-generating use is available. Mr. Martinez agreed junior golf would be a good interim use of the area, and noted a long-term use could be a hotel. Regarding using the park site at Avenue 52 as a passive area, he agreed the area could be used for event parking, the Arts Festival, and other cultural events that generate revenue for the City. He advised the restroom issue would be addressed once the golf course architect is involved. He agreed the multi-use trails should be along the perimeter except for maybe a loop through the special use area. The issue of existing trees, he feels would be better addressed during the landscape plan of the project. He agreed with angling the golf holes away from Avenue 52 and Jefferson Street and is sure the golf course architect will address that. He stated the tournament course is 185 acres net (approximately 205 acres gross), and the oasis course is 165 acres net, sharing the driving range, clubhouse, and parking with the tournament course. He stated the intent for Phase I is to build the road from Avenue 52 to the temporary clubhouse, the mountain course, and the driving range. The depth of the driving range is 350 yards. He stated the two- lane road connecting the clubhouse and hotel has been changed to a one-lane road for use by maintenance, fire trucks, and golf carts. The change was made to keep people from using the connecting street as a shortcut, and will provide more exclusive access to the clubhouse and to the hotel. It will also reduce the road costs. He stated the emergency phone system issue will be addressed later in the process. Regarding cost considerations, he stated their firm usually takes a quick pass at the overall costs and revenue of the entire project, which is based on certain assumptions, and although that is not part of their scope, they are willing to help on that process. As for hotel design, he stated that would be addressed during discussion of the theme and character of the project. He noted once the theme is defined, the design criteria articulates the theme. He commented that there are a lot of things that can be done with the casitas areas, such as villas or residence clubs with smaller areas being more exclusive and of greater value than larger areas. That also is not part of their contract but they are willing to share what they have learned in this area. He stated they have talked to hotel and retail people about the project. One retail company that is investing approximately $50 million in other retail villages throughout the United States, Canada, and Europe, is interested in this project and has indicated that they rarely consider a 75,000 sq. ft. retail area and deal usually with 85,000 to 1 25,000 sq. ft. As for the budget, he stated their firm is within the budget and timing agreed to in their contract. He commented on the need to have a vision then determine how to create that vision, with the first step being the template. He spoke about the need to create a "hook" that will bring people to the resort more than once and cause them to tell their friends. He Redevelopment Agency Minutes 9 March 18, 2003 stated the proposed concept includes a conference hotel and a condo hotel but there are options on the site for a total of five hotels -- the proposed conference hotel and condo hotel sites, the special use area, the village commercial area, and a hotel on top of the village commercial area. He agrees with not having a road along the hillside, mainly due to liability concerns. As for wasting money on studies, he prefers the Agency conditionally approve the concept and be ready to work with the golf course architect so the money can be spent building the project instead of doing more studies. He stated the EIR approval covers a 25,000 sq. ft. retail and the concept plan is for 85,000 to 125,000, which is the square footage formula used by retail investors to create a "hook." He noted a certain critical mass is needed to be successful. As for the water issue, he stated they will try to get something in writing from CVWD but don't expect to because CVWD is in the process of adopting a new water- use policy. He agreed the tournament course should be challenging and was confident the golf course architect will make that happen. Regarding concerns about the process and lack of time for input, he pointed out their firm did not design the process, and added that they normally take one to two years to complete this type of process but have been hired by the City to do it in six months. He asked Mr. Bergh to respond to the question about the cost of a road along the hillside. Chris Bergh, of MDS Consulting, stated the cost was based on a four-lane road similar to the other roads within the project but includes a bridge crossing over the canal, which is where the main costs come from. Mr. Martinez agreed the road should only be two lanes, which would reduce the cost. He stated the issue of how to make money with discount golf is not part of their scope of work. As for the public aspect of the project, he noted that depends on what the Agency wants, i.e. large park, small park, temporary park, more trails or less trails. He noted a pocket park is proposed in the resort retail area, and could be a place for the public and hotel guests to listen to classical music and watch the sunset or walk through art shows. He suggested giving some consideration to seeking independent advice on how other municipalities have established public versus hotel use of the golf courses. He explained the purpose behind not clustering the hotels is so each hotel would have a "front-row" view of the mountain and not be blocked by an adjacent hotel. In commenting on water evaporation, he stated grass evaporates at .65 and water evaporates at 1.1 and in order to have green grass, there seems to be a tendency to over-water, resulting in the evaporation numbers being the same. .--- Chairperson Henderson noted that is in contradiction to the material received from Mr. Bergh, which states efforts in technology have been made in irrigating golf courses to be more conservative. Redevelopment Agency Minutes 10 March 18, 2003 Mr. Bergh clarified the over-watering is done mostly by homeowner associations. Mr. Martinez stated there is technology that utilizes satellite signals to control golf course irrigation systems. He stated they will provide a phasing plan, and go over the flexible parking issue in more detail. They will also create a list of what they feel will make this project superior to others. As for the concern about what happens if the project isn't done correctly the first time, he referenced a project in Laguna Nigel, and commented on the need to make five- star decisions in order to create a five-star experience. He stated their firm will create the master plan, and if they do it right, he feels the "market" will be standing in line to make a deal with the City. He agrees with pushing into the mountain for maximum use, yet giving consideration to the sensitivity of the issue. Carol Ackerman, of GMA International, referenced the possibility of having another meeting for more specific discussions about the names, the look, the color, the feel of the logo, and what the template for the architectural interpretations might be for the project. She commented on the water issue, and referenced the amount of water used in PGA West. Chairperson Henderson stated she believes the Agency understands the value of water in the project but noted there are issues to overcome because the mind set is different today than it was 20 years ago. Ms. Ackerman reviewed proposed names and Iogos, and apologized to Board Member Sniff for failing to include his suggestion of "La Quinta Las Vistas Golf Development." She then reviewed proposed Iogos and various elements from the four potential themes - Colonial California, Desert Pueblo Southwest, Natural Materials, and Desert Indian Southwest Pueblo. She advised public input on the themes so far indicate support for Colonial California and Natural Materials. She presented Iogos with the following names: La Hacienda de La Quinta, Hacienda de La Quinta, Estrellita a La Quinta, La Vita La Quinta, and Villagio. She stated they will have architectural backup for three to five names at the next presentation. Chairperson Henderson stated she doesn't care for Hacienda. Board Member Sniff stated he will forward some logo ideas to Ms. Ackerman. Board Member Adolph noted most golf courses/country clubs have very short names. Redevelopment Agency Minutes 11 March 18, 2003 Board Member Adolph stated he believes a lot of his concerns will be handled through the golf course architect. He feels the Agency should decide whether or not they wish to include a road along the mountain, and stated he doesn't support it. Board Member Perkins agreed. Board Member Osborne concurred, and stated he would like to have a more in- depth report on water usage. He wants to know if the canal will provide enough water, and where the water will come from if there is a water shortage with the Colorado River. He would also like to know what the plan is for recycling the golf course water. Chairperson Henderson noted most of the wells will be off-site, and the lakes will be canal water. She stated she doesn't like the idea of an open road along the mountain and feels the area should be reserved for trails. Board Member Sniff stated he feels everyone's opinion has been affected by the road not being properly characterized. He stated his proposal was for a very unobtrusive road along the base of the mountain, and if the project doesn't include it, it probably won't include him. He likes the configuration shown where the road goes along the toe of the slope - it begins at Avenue 52 and ends at Avenue 54. Board Member Adolph commented on the potential for the road being used as a shortcut by residents. Board Member Sniff noted the use could be restricted with gates. He voiced caution about water usage, and stated he agrees with getting more information on it. He stated he could not voice support for the concept as it now stands. Regarding the water issue, Chairperson Henderson stated she feels the Agency is looking more for a comfort level that they are not being derelict on the issue. She feels all members of the Agency will struggle with the water use if there are significant outstanding issues. Mr. Weiss advised the concept will be revised per the Agency's comments, and brought back, tentatively, on April 15 for final concept approval. He added the staff report will also include some discussion on implementation. Redevelopment Agency Minutes 12 March 18, 2003 2. CONSIDERATION OF A REQUEST FOR PROPOSALS (RFP) FOR GOLF COURSE ARCHITECTURAL SERVICES AND APPOINTMENT OF A CONSULTANT SELECTION COMMITTEE. Executive Director Weiss presented the staff report. In response to Chairperson Henderson, Mr. Weiss stated consideration to award a contract for Development Coordinator is tentatively scheduled for April 15, and the Development Coordinator is expected to be on board by May 2 to participate in this consultant selection process. He added, at the same time, staff is looking to initiate some engineering and physical improvement infrastructure to deliver perimeter improvements to the site and maybe some hydrology studies. He emphasized the importance of keeping a tight schedule to meet the December start date and next year's growing season. He stated the intent is to try to deliver a golf course within 18 months, instead of the five to seven years it has taken other cities. In response to Board Member Perkins, Mr. Weiss stated the City has received nine proposals for Development Coordinator. He noted the idea is for that person and/or firm to have been involved with the construction end of golf courses for public agencies. He added there is a stipulation in the RFP that prohibits the Development Coordinator from having any other compensated role in the project. Board Member Osborne questioned how a golf course architect is going to design a golf course if the City hasn't determined how much it wants to spend on a golf course. Mr. Weiss stated he has been told the average cost to construct a golf course is $5.4 million. The City has received an estimate from Chapman Development, that includes a 20-acre lake, of approximately $10 million. He added the preliminary concept budget of $21.5 million for Phase I includes one golf course, the large lake, commercial development pads, the driving range, and funds for a temporary clubhouse at the Ahmanson Ranch building. He stated the golf course architect costs, which range from less than $200,000 to over $2 million, have not been included. That cost, he noted, varies due to quality of architectural services and the name of the architect, which also relates to the amount that can be charged for play and the real estate value. He stated once four architects have been selected, the Agency may want to consider having a financing firm help analyze the value of each architect's name being attached to the project. Redevelopment Agency Minutes 13 March 18, 2003 Frank Spevacek, consultant with RSG, noted one of the recommendations made during mid-year budget review was to set aside approximately $20 million for golf course construction. It was additionally noted at that time, that the Agency has the capacity to issue another $10 million in bonds, and can put housing money in property that can be used for affordable housing but also generate some of the well sites that are required by CVWD. He stated' the analysis prepared last year when the Agency considered purchasing the property, included maintenance costs for two golf courses, and the expected revenue. He noted the Agency has approximately $60 million in tax increment revenue from Project Area No. 1, and if it is not encumbered for purposes such as this, the Agency will lose it. He further noted the debt service to pay for the land and the construction is not being handled by income from the golf course but rather by tax increment revenue generated by Project Area No. 1. In response to Board Member Perkins, Mr. Weiss confirmed the top three or four architects will be interviewed by the Agency. Board Member Osborne asked staff to provide a report on the total cost of the project, including the land and consultant services. He noted a private club in Indian Wells is rebuilding their golf course for $1 8 million. He suoported having the top three to five architects interviewed by the Agency. Board Member Sniff commented on the current, tenuous economic conditions, and asked if the Agency's bonding capacity would be significantly affected if there is a significant deflation in property value, to which Mr. Spevacek responded, "yes." Board Member Sniff voiced concern about "running to the edge." Mr. Spevacek advised staff proposes keeping a sufficient cushion, and noted with the current State budget uncertainty, the bond underwriters and bond insurers will not allow the Agency to "run to the edge." Board Member Sniff stated he would feel uncomfortable if the Agency continues indebting itself and goes deeper into the margin. Board Member Adolph stated he also has financial concerns but noted the construction costs will be dealt with at a later time. In regard to the value of an architect's name, he noted a well-known architect costs a lot of money and that sometimes the quality of the course may not be as good as one that is ---- designed by a lesS-known architect, such as the situation at The Hideaway. As for the Consultant Selection Committee, he supports having someone from the Agency on the committee that is knowledgeable about golf courses. He Redevelopment Agency Minutes 14 March 18, 2003 commented on the need to move forward as soon as possible to meet the 18- month time frame. Chairperson Henderson noted further bonding will not be needed until Phase II, and she asked if the current debt is insured. Mr. Spevacek advised out of $138 million outstanding debt in Project Area Nos. 1 and 2, the majority of it is Project Area No. 1 and that debt is insured. He added the Project No. 2 bonds are not insured. He stated revenue projections are based on a 3% growth rate and, historically, the Project Areas have been growing at a 10-20% rate. Additionally, it is the Agency's policy to keep close to $1 million annually available in cash that is not bonded against to provide sufficient cash flow to meet bond debt service payments, plus $1 million left over to make payments on staff time or pay-as-you-go projects. Chairperson Henderson commented that she feels it's critical for the Development Coordinator to be a part of this Consultant Selection Committee. MOTION -It was moved by Board Members Perkins/Osborne to authorize the distribution of an RFP for Golf Course Architectural Services for Phase I of The Ranch, and appoint a Consultant Selection Committee as recommended by staff. Board Member Sniff spoke in support of having one or two Agency Members on the Consultant Selection Committee. Chairperson Henderson noted the Agency will be interviewing the top three or four architects. Board Member Sniff noted additional input from Agency Members could result in a slightly different group to interview. Board Member Perkins stated he prefers the top candidates being presented before the full Board without individual Agency Members having been involved with the Committee's recommendation. He feels Agency Members would have to disqualify themselves from voting if they participated in the recommendation. Board Member Adolph disagreed but stated he would support the motion. Motion carried with Board Member Sniff voting NO. STUDY SESSION - None .Redevelopment Agency Minutes 15 March 18, 2003 ,,, CHAIR AND BOARD MEMBERS' ITEMS - None PUBLIC HEARINGS - None The Agency Counsel announced Board Member Perkins and the City Manager did not participate in Closed Session Item No. 1 because they both own homes within Laguna de la Paz. She also announced the following changes to Closed Session Item No. 3: 1) APN 773-072-005 and property owners Bruce and Marilyn Throckmorton should be deleted as that property was not part of the discussion; and 2) these additional geographic locations pertaining to listed APNs were omitted in error (north side of Frances Hack Park between Eisenhower Drive and Avenida Villa; northwest corner of Avenue 52 and Madison Street; northeast corner of Avenue 60 and Monroe Street; southeast corner of Avenue 60 and Monroe Street; and southwest corner of Avenue 52 and Monroe Street). The Agency recessed to Closed Session as delineated on Page I and corrected above. The Agency meeting reconvened with no decisions being made in Closed Session which require reporting pursuant to Section 54957.1 of the Government Code (Brown Act). ADJOURNMENT There being no further business the meeting was adjourned. Respectfully submitted, JUNE S. GREEK, Agency Secretary La Quinta Redevelopment Agency