2003 07 22 RDAefr# 4 4 adja
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, July 22, 2003 - 2:00 P.M.
Beginning Resolution No. RA 2003-12
CALL TO ORDER
Roll Call:
Agency Board Members: Adolph, Osborne, Perkins, Sniff, and Chairperson Henderson
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.
CLOSED SESSION
NOTE: Time permitting, the Redevelopment Agency Board may conduct Closed Session
discussions during the dinner recess. In addition, persons identified as negotiating parties
are not invited into the Closed Session meeting when the Agency is considering acquisition
of real property.
1. CONFERENCE WITH AGENCY'S LEGAL COUNSEL REGARDING INITIATION OF
LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54945.9(c) — (ONE
MATTER)
RECONVENE AT 3:00 P.M.
Redevelopment Agency Agenda 1 July 22, 2003
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.
CONFIRMATION OF AGENDA
APPROVAL OF MINUTES
1. APPROVAL OF MINUTES OF JULY 1, 2003
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 DATED JULY 15, 2003.
2. TRANSMITTAL OF TREASURER'S REPORT DATED MAY 31, 2003.
3. TRANSMITTAL OF REVENUE AND EXPENDITURE REPORTS DATED MAY 31, 2003
AND INVESTMENT SUMMARY REPORT FOR THE QUARTER ENDING JUNE 30,
2003.
4. APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT WITH PALMER COURSE
DESIGN COMPANY FOR GOLF COURSE ARCHITECTURAL DESIGN SERVICES.
BUSINESS SESSION
1. CONSIDERATION OF: (1) A RESOLUTION APPROVING THE FISCAL YEAR
2003/2004 LA QUINTA REDEVELOPMENT AGENCY BUDGET; AND (2) A
RESOLUTION DETERMINING THE PLANNING AND ADMINISTRATION EXPENSES
TO BE FUNDED IN FISCAL YEAR 2003/2004.
A. RESOLUTION ACTION(S)
Redevelopment Agency Agenda 2 July 22, 2003
2. CONSIDERATION OF A RESOLUTION MAKING CERTAIN FINDINGS PURSUANT TO
HEALTH & SAFETY CODE SECTION 33445(a) AND AUTHORIZING THE
EXPENDITURE OF FUNDS FOR THE AVENIDA LA FONDA STREET ENHANCEMENT
PROJECT.
A. RESOLUTION ACTION
3. CONSIDERATION OF AN AMENDMENT TO THE LA QUINTA REDEVELOPMENT
PROJECT AREA NO. 2 REDEVELOPMENT PLAN TO INCREASE THE TAX
INCREMENT REVENUE LIMIT AND AN APPROPRIATION OF UP TO $50,000.
A. MINUTE ORDER ACTION
STUDY SESSION - NONE
CHAIR AND BOARD MEMBERS' ITEMS — NONE
PUBLIC HEARINGS
1. JOINT PUBLIC HEARING BETWEEN THE CITY COUNCIL AND THE
REDEVELOPMENT AGENCY TO APPROVE AN AGREEMENT TO SELL REAL
PROPERTY LOCATED AT 52-665 AVENIDA RAMIREZ BY AND BETWEEN CHRISTIN
JOHNSON AND THE LA QUINTA REDEVELOPMENT AGENCY, AND
AUTHORIZATION FOR THE EXECUTIVE DIRECTOR TO EXECUTE THE NECESSARY
DOCUMENTS.
A. MINUTE ORDER ACTION
2. JOINT PUBLIC HEARING BETWEEN THE CITY COUNCIL AND THE
REDEVELOPMENT AGENCY TO APPROVE AN AGREEMENT TO SELL REAL
PROPERTY LOCATED AT 53-275 AVENIDA RAMIREZ BY 'AND BETWEEN
GRACIELA CANTU AND THE LA QUINTA REDEVELOPMENT AGENCY, AND
AUTHORIZATION FOR THE EXECUTIVE DIRECTOR TO EXECUTE THE NECESSARY
DOCUMENTS.
A. MINUTE ORDER ACTION
Redevelopment Agency Agenda 3 July 22, 2003
ADJOURNMENT
Adjourn to a regularly scheduled meeting of the Redevelopment Agency to be held on
August 5, 2003, commencing with closed session at 2:00 p.m. and open session at 3:00
p.m. in the City Council Chambers, 78-495 Calle Tampico, La Quinta, CA 92253.
DECLARATION OF POSTING
I, Phyllis Manley, Deputy City Clerk of the City of La Quinta, do hereby declare that the
foregoing agenda for the La Quinta Redevelopment Agency meeting of Tuesday, July 22,
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 1 1 1, on Friday, July 18, 2003.
DATED: JULY 18, 2003
PHYLLIS MANLEY, Deputy City Clerk
City of La Quinta, California
Redevelopment Agency Agenda 4 July 22, 2003
Iv`o %R"Mw4� AGENDA CATEGORY:
w5
OF ,9
BUSINESS SESSION
COUNCIL/RDA MEETING DATE: JULY 15, 2003
CONSENT CALENDAR
ITEM TITLE:
Demand Register Dated July 15, 2003
RECOMMENDATION:
It is recommended the Redevelopment Agency Board:
STUDY SESSION
PUBLIC HEARING
Receive and File the Demand Register Dated July 15, 2003 of which $2,996,600.64
represents Redevelopment Agency Expenditures.
PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA
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G� OF9ti AGENDA CATEGORY:
COUNCIL/RDA MEETING DATE: ,July 22, 2003
Transmittal of Treasurer's Report
dated May 31, 2003
RECOMMENDATION:
It is recommended the La Quinta Redevelopment Agency:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Receive and File the Treasurer's Report dated May 31, 2003.
PLEASE SEE BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA
6
COUNCIL/RDA MEETING DATE: ,July 22, 2003
Transmittal of Revenue and
Expenditure Reports dated
May 31, 2003 and Investment
Summary Report for the Quarter
Ending June 30, 2003
RECOMMENDATION:
Receive and File
BACKGROUND AND OVERVIEW:
AGENDA CATEGORY:
BUSINESS SESSION: CONSENT CALENDAR: 2 2
STUDY SESSION:
PUBLIC HEARING:
Transmittal of the May 31, 2003 Statement of Revenue and Expenditures for the La
Quinta Redevelopment Agency and Investment Summary Report for the Quarter Ending
June 30, 2003.
Respectfully submitted,
ohn M. FalcbnerJ Finance Director
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachments 1: Revenue and Expenditures Report, May 31, 2003
2: Investment Summary for the Quarter Ending June 30, 2003
7
ATTACHMENT 1
LA QUINTA REDEVELOPMENT AGENCY
REMAINING
%
REVENUE SUMMARY
BUDGET
RECEIVED
BUDGET
RECEIVED
PROJECT AREA NO. 1:
DEBT SERVICE FUND:
Tax Increment
20,140,132.00
20,648,203.33
(508,071.33)
102.520%
Allocated Interest
0.00
87,045.44
(87,045.44)
0.000%
Non Allocated Interest
0.00
9,618.38
(9,618.38)
0.000%
Interst - County Loan
0.00
0.00
0.00
0.000%
Interest Advance Proceeds
595,757.00
0.00
595,757.00
0.000%
Transfers In
1,738,783.00
1,738,782.66
0.34
100.000%
TOTAL DEBT SERVICE
22,474,672.00
22,483,649.81
(8,977.81)
100.040%
CAPITAL IMPROVEMENT FUND:
Pooled Cash Allocated Interest
0.00
7,732.56
(7,732.56)
0.000%
Non Allocated Interest
125,000.00
527,529.19
(402,529.19)
422.020%
Litigation Settlement Revenue
0.00
55,789.22
(55,789.22)
0.000%
Loan Proceeds
0.00
0.00
0.00
0.000%
Rental Income
41,500.00
37,559.20
3,940.80
90.500%
Transfers In
6,000,000.00
6,000,000.00
0.00
100.000%
TOTAL CAPITAL IMPROVEMENT
6,166,500.00
6,628,610.17
(462,110.17)
107.490%
LOW/MODERATE TAX FUND:
Tax Increment
5,035,033.00
5,162,050.83
(127,017.83)
102.520%
Allocated Interest
200,000.00
18,348.10
181,651.90
9.170%
Non Allocated Interest
0.00
0.00
0.00
0.000%
Miscellaneous revenue
0.00
0.00
0.00
0.000%
Non Allocated Interest
0.00
0.00
0.00
0.000%
LQRP-Rent Revenue
341,000.00
344,885.77
(3,885.77)
101.140%
Home Sales Proceeds
150,000.00
0.00
150,000.00
0.000%
Sale of Land
0.00
0.00
0.00
0.000%
Sewer Subsidy Reimbursements
0.00
79,687.72
(79,687.72)
0.000%
Rehabilitation Loan Repayments
0.00
208,796.58
(208,796.58)
0.000%
Transfer In
1,825,000.00
0.00
1,825,000.00
0.000%
TOTAL LOW/MOD TAX
7,551,033.00
5,813,769.00
1,737,264.00
76.990%
LOW/MODERATE BOND FUND:
Allocated Interest
0.00
0.00
0.00
0.000%
Home Sale Proceeds
0.00
0.00
0.00
0.000%
Non Allocated Interest
0.00
11,931.97
(11,931.97)
0.000%
Transfer In
0.00
0.00
0.00
0.000%
TOTAL LOW/MOD BOND
0.00
11,931.97
(11,931.97)
0.000%
2
LA QUINTA REDEVELOPMENT AGENCY 07/01/2002 - 5/31/03
REMAINING
EXPENDITURE SUMMARY
BUDGET
EXPENDITURES
ENCUMBERED
BUDGET
PROJECT AREA NO. 1:
DEBT SERVICE FUND:
SERVICES
586,870.00
314,816.96
0.00
272,053.04
BOND PRINCIPAL
1,567,022.00
1,567,788.00
0.00
(766.00)
BOND INTEREST
6,991,075.00
6,993,437.12
0.00
(2,362.12)
INTEREST CITY ADVANCE
595,757.00
449,860.59
0.00
145,896.41
PASS THROUGH PAYMENTS
9,649,709.00
9,353,335.27
0.00
296,373.73
ERAF SHIFT
723,550.00
723,518.00
0.00
32.00
TRANSFERS OUT
6,000,000.00
6,000,000.00
0.00
0.00
TOTAL DEBT SERVICE
2 ,11 ,983.
25,4 2,755.94
0.00
71 7.06
CAPITAL IMPROVEMENT FUND:
PERSONNEL
4,900.00
6,930.99
0.00
(2,030.99)
SERVICES
214,379.00
153,403.82
0.00
60,975.18
LAND ACQUISITION
0.00
0.00
0.00
0.00
ASSESSMENT DISTRICT
0.00
0.00
0.00
0.00
ADVERTISING -ECONOMIC DEV
16,700.00
16,700.14
0.00
(0.14)
ECONOMIC DEVELOPMENT
552,682.00
238,386.09
0.00
314,295.91
BOND ISSUANCE COSTS
199,880.00
18,315.66
0.00
181,564.34
CAPITAL - BUILDING
0.00
0.00
0.00
0.00
REIMBURSEMENT TO GEN FUND
1,086,106.00
995,597.24
0.00
90,508.76
TRANSFERS OUT
9,359,859.77
1,987,487.34
0.00
7,372,372.43
TOTAL CAPITAL IMPROVEMENT
11,434,506.77
3,416,821.28
0.00
8,017,585.49
LOW/MODERATE TAX FUND:
PERSONNEL
SERVICES
BUILDING HORIZONS
LQ RENTAL PROGRAM
LQ HOUSING PROGRAM
LOWMOD VILLAGE APARTMENTS
APARTMENT REHABILITATION
FORECLOSURE ACQUISITION
REIMBURSEMENT TO GEN FUND
TRANSFERS OUT
TOTAL LOW/MOD TAX
LOW/MODERATE BOND FUND
PERSONNEL
SERVICES
REIMBURSEMENT TO GEN FUND
HOUSING PROJECTS
TRANSFERS OUT
TOTAL LOW/MOD BOND
4,900.00
6,930.99
0.00
(2,030.99)
239,315.00
212,061.66
0.00
27,253.34
210,000.00
172,700.00
0.00
37,300.00
329,000.00
598,210.88
0.00
(269,210.88)
2,500,000.00
1,944,994.00
0.00
555,006.00
3,000,000.00
0.00
0.00
3,000,000.00
626,000.00
0.00
0.00
626,000.00
430,000.00
0.00
0.00
430,000.00
206,485.00
189,277.77
0.00
17,207.23
3,953,426.00
3,263,190.57
0.00
690,235.43
11,499,126.00
61387,365.87
0.00
,111,760.13
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.0
19
3
LA QUINTA REDEVELOPMENT AGENCY
REMAINING
%
REVENUE SUMMARY
BUDGET
RECEIVED
BUDGET
RECEIVED
PROJECT AREA NO.2:
DEBT SERVICE FUND:
Tax Increment
9,440,205.00
9,692,984.21
(252,779.21)
102.680%
Allocated Interest
0.00
24,536.44
(24,536.44)
0.000%
Non Allocated Interest
0.00
559.01
(559.01)
0.000%
Interest Advance Proceeds
863,674.00
0.00
863,674.00
0.000%
Transfer In
338,895.00
338,895.00
0.00
100.000%
TOTAL DEBT SERVICE
10,642,774.00
10,056,974.66
585,799.34
94.500%
CAPITAL IMPROVEMENT FUND:
Allocated Interest
0.00
37,996.35
(37,996.35)
0.000%
Non Allocated Interest
20,000.00
5,315.18
14,684.82
26.580%
Developer Agreement
0.00
0.00
0.00
0.000%
Transfers In
1,100,000.00
1,100,000.00
0.00
100.000%
TOTAL CAPITAL IMPROVEMENT
1,120,000.00
1,143,311.53
(23,311.53)
102.080%
LOW/MODERATE TAX FUND:
Tax Increment
2,360,051.00
2,423,246.05
(63,195.05)
102.680%
Allocated Interest
20,700.00
58,950.40
(38,250.40)
284.780%
Non Allocated Interest
0.00
0.00
0.00
0.000%
ERAF Shift - Interest
17,507.00
17,507.00
0.00
100.000%
Sale of Land
801,358.00
0.00
801,358.00
0.000%
Transfer In
16,964.00
0.00
16,964.00
0.000%
TOTAL LOW/MOD TAX
3,216,580.00
2,499,703.45
716,876.55
77.710%
LOW/MODERATE BOND FUND:
Allocated Interest
0.00
0.00
0.00
0.000%
Non Allocated Interest
0.00
2,897.08
(2,897.08)
0.000%
Transfer In
0.00
0.00
0.00
0.000%
TOTAL LOW/MOD BOND
0.00
2,897.08
(2,897.08)
0.000%
4
LA QUINTA REDEVELOPMENT AGENCY 07/01/2002 - 5/31/03 REMAINING
EXPENDITURE SUMMARY BUDGET EXPENDITURES ENCUMBERED BUDGET
PROJECT AREA NO.2:
DEBT SERVICE FUND:
0 00 11 232 56
SERVICES
BOND PRINCIPAL
161,020.00
172,978.00
149,787.44
248,496.40
0.00
I
(75,518.40)
BOND INTEREST
586,665.00
508,016.95
0.00
_ 78,648.05
INTEREST CITY ADVANCE
863,674.00
789,997.60
0.00
73,676.40
INTEREST - ERAF UMOD LOAN
17,507.00
17,507.00
0.00
0.00
PASS THROUGH PAYMENTS
7,995,475.00
5,886,282.46
0.00
2,109,192.54
TRANSFERS OUT
TOTAL DEBT SERVICE
1,100,000.00
1,100,000.00
0.00
0.00
10, 7,31
8,700,087.85
0.00
2,197, 2 Tf.15
CAPITAL IMPROVEMENT FUND:
PERSONNEL
2,900.00
4,194.02
0.00
(1,294.02)
SERVICES
158,774.00
86,625.09
0.00
72,148.91
ADVERTISING -ECONOMIC DEV
33,300.00
33,299.88
0.00
0.12
ECONOMIC DEVELOPMENT ACTIVITY
93,425.00
15,400.00
19,870.00
58,155.00
REIMBURSEMENT TO GEN FUND
34,111.00
31,268.60
0.00
2,842.40
TRANSFERS OUT
(245,583 14)
(231,928.00)
0.00
(13,655.14
TOTAL CAPITAL IMPROVEMENT
76,926.86
(61, 40.41)
19,870.00
8,1 7.27
LOW/MODERATE TAX FUND:
00
1 294 02)
PERSONNEL
SERVICES
2,900.00
197,049.00
-+,194.02
164,826.05
0.
0.00
( ,
32,222.95
SEWER SUBSIDIES
0.00
0.00
0.00
LQ RENTAL PROGRAM
500,000.00
132,880.00
0.00
367,120.00
ADAMS 48TH PLANNING
850,000.00
370,000.00
0.00
480,000.00
LOW MOD HOUSING PROJECTS
247,296.00
0.00
0.00
247,296.00
FORECLOSURE ACQUISITION
15,000.00
0.00
0.00
15,000.00
REIMBURSEMENT TO GEN FUND
71,298.00
65,356.39
0.00
5,941.61
TRANSFERS OUT
4,448,586.69
585,752.70
0.00
0.00
3,862,833.99
5,009,12T53
TOTAL LOW/MOD TAX
6,3 ,129.6
1,323,009.16
LOW/MODERATE BOND FUND
PERSONNEL
SERVICES
REIMBURSEMENT TO GEN FUND
TRANSFERS OUT
TOTAL LOW/MOD BOND
0.00 0.00 0.00
0.00 0.00 0.00
0.00 0.00 0.00
2,375,928 46 2,378,825.09 0.00 (2,896.63)
2,375, 8.46- ,3�5.09 0.00 (2,896.63)
1.1
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COUNCIL/RDA MEETING DATE: July 22, 2003
ITEM TITLE: Approval of a Professional Services
Agreement with Palmer Course Design Company for
Golf Course Architectural Design Services
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: Z/
STUDY SESSION:
PUBLIC HEARING:
Approve a professional services agreement (Attachment 1) with Palmer Course Design
Company for Golf Course Architectural Design Services.
FISCAL IMPLICATIONS:
The contract, including irrigation design services and subcontractor services for
landscape architecture and agronomy, is for an amount not to exceed $1 million plus
an allowance of $50,000 for reimbursable expenses.
The City's Capital Improvement Program includes a project entitled Municipal Golf
Course — Phase I, including $2.5 million for contractual services related to planning,
engineering and property management services. Approximately $400,000 has been
allocated for planning services, to -date; $100,000 for development coordinator
services; and approximately $500,000 will be required for engineering and other
miscellaneous services. Accordingly, sufficient funds (i.e., approximately $1.5 million)
remain in this account for golf course architectural and other project related expenses.
BACKGROUND AND OVERVIEW:
The Redevelopment Agency authorized distribution of a Request for Proposals for Golf
Course Architectural Services in March, 2003. Thirty-eight proposals were received
and reviewed by the Agency's Consultant Selection Committee. The Agency
interviewed four firms on May 30, 2003 and subsequently authorized staff to
negotiate a contract with Palmer Course Design Company (PCDC).
Agency staff entered into negotiations with PCDC with the intent of grouping certain
tasks under the golf architect's scope of services. This strategy reflected Agency
direction given to staff at its regular meeting of May 20, 2003. Accordingly, the
1_ 1
attached contract incorporates a scope of services for several tasks within the golf
envelope beyond PCDC's original proposed scope, to include:
• Irrigation plan (PCDC staff);
• Landscape architecture (Pinnacle sub consultant);
• Golf cart path routing (PCDC staff);
• Agronomy (Terry Buchen sub consultant); and
• Lakes Design (Pinnacle)
These additional services, with an estimated value in excess of $150,000, have been
included in the contract with no increase to PCDC's proposed fee.
The contract has been reviewed by the Agency's management staff, including the
Assistant Executive Director, Public Works Director, and Community Development
Director, and the Agency's Economic/Redevelopment Consultant (Frank Spevacek),
Development Coordinator (Roy Stephenson),and legal counsel (Kathy Jenson). The
contract has been written with parallel indemnification provisions for negligence (i.e.,
each entity indemnifying the other for negligence) with joint limitations on liability
(based upon paid and unpaid contract balances).
The contract includes provisions for three phases:
I. Master Planning
II. Preparation of Golf Course Construction Documents
III. Inspection of Golf Course Construction
The Routing Plan will be prepared during Phase I. Agency review and approval of the
Routing Plan will be required before beginning Phase II.
FINDINGS AND ALTERNATIVES:
The alternatives available to the City Council include:
1 . Approve a professional services agreement with Palmer Course Design Company
for Golf Course Architectural Design Services and authorize the Executive
Director to execute same; or
2. Do not approve the professional services agreement; or
3. Provide staff with alternative direction.
14
Respectfully submitted,
Mark Weiss, Assistant City Manager
Approved for submission by:
Thomas P. Genovese, City Manager
Attachments: 1. Professional Services Agreement
3
15
ATTACHMENT 1
PROFESSIONAL SERVICES AGREEMENT
This AGREEMENT FOR PROFESSIONAL SERVICES ("Agreement"), dated August 1,
2003, is made and entered into by and among the LA QUINTA REDEVELOPMENT AGENCY
("Agency" or "Owner"), and PALMER COURSE DESIGN COMPANY ("Contractor" or
"PCDC"). The parties hereto agree as follows:
1.0 SERVICES OF CONTRACTOR
1.1 Scope of Services. In compliance with all terms and conditions of the
Agreement, the Contractor shall provide those services related to golf course architectural services of
new 18 hole golf course, as specified in the "Scope of Services" attached hereto as Exhibit "A" and
incorporated herein by this reference (the "services" or "work"). Contractor warrants that all
services will be performed in a competent, professional and satisfactory manner in accordance with
the standards prevalent in the industry for such services. Services will be provided to the Agency.
1.2 Contractor's Proposal. The Scope of Services shall include the Contractor's
proposal or bid, which shall be incorporated herein by this reference as though fully set forth herein.
In the event of any inconsistency between the terms of such proposal and this Agreement, the terms
of this Agreement shall govern.
1.3 Compliance with Law. All services rendered hereunder shall be provided in
accordance with all ordinances, resolutions, statutes, rules, regulations and laws of the City of La
Quinta, the Agency, and any and all Federal, State or local governmental agency of competent
jurisdiction. Agency shall advise Contractor of any such ordinances, resolutions, statutes, rules,
regulations and laws that may be unique to the city of La Quinta.
1.4 Licenses, Permits, Fees, and Assessments. Contractor shall obtain at its sole
cost and expense such licenses, permits and approvals as may be required by law for the performance
of the services required by this Agreement. Contractor shall have the sole obligation to pay for any
fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and
arise from or are necessary for the performance of the services required by this Agreement. Agency
shall assist Contractor in securing any such permits required by this Agreement.
1.5 Familiarity with Work. By executing this Agreement, Contractor warrants that
(a) it has thoroughly investigated and considered the work to be performed, (b) it has carefully
considered how the work should be performed, and (c) it fully understands the facilities, difficulties
and restrictions attending performance of the work under this Agreement. Should the Contractor
discover any latent or unknown conditions materially differing from those inherent in the work or as
represented by the Agency, it shall immediately inform Agency of such fact and shall not proceed
except at Contractor's risk until written instructions are received from the Contract Officer (as
defined in Section 4.2 hereof).
1.6 Additional Services. In accordance with the terms and conditions of this
Agreement, the Contractor shall perform services in addition to those specified in the Scope of
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Services, (Exhibit "A") when directed in writing to do so by the Contract Officer, provided that
Contractor shall not be required to perform any additional services without compensation.
2.0 COMPENSATION
2.1 Contract Sum. For the services rendered pursuant to the Agreement, the
Contractor shall be compensated in accordance with the "Schedule of Compensation" attached hereto
as Exhibit `B" and incorporated herein by this reference. The Contractor shall be compensated in an
amount not exceeding One -Million Dollars ($1,000,000.00) (the "Contract Sum"). In addition to the
Contract Sum set forth above, the Agency agrees to reimburse PCDC, up to the cap set forth below,
for all necessary travel (including business class air or its equivalent if travel is by private plane),
lodging, meals, and incidental expenses (collectively, "Expenses") incurred by PCDC and sub-
contractors (landscape architect and agronomist) in connection with the performance of it services
hereunder promptly upon submission by PCDC of an itemized invoice therefore. The Agency
acknowledges that at least two PCDC personnel (or three if Palmer is traveling) may be required for
any trip. Compensation may include reimbursement for actual and necessary expenditures for
reproduction costs, transportation expenses, telephone expense, and similar costs and expenses when
and if specified in the Schedule of Compensation (Exhibit `B"). Total expenses not to exceed
$50,000.00. It is anticipated that PCDC personnel will have to attend between 4-6 meetings with
Agency Board. If more meetings are required, or Agency requests additional travel other than what
is currently contemplated, Agency and PCDC will discuss such additional services in good faith and
Agency recognizes that PCDC will request that any additional travel expenditures be paid by
Agency.
2.2 Method of Payment. The timing of payments shall be upon completion of
Phases as set forth in the Schedule of Compensation. The initial payment of $150,000 shall be made
by August 1, 2003, upon execution of the Agreement. For subsequent payments, Contractor shall
submit to the Agency, in the form approved by the Contract Officer, an invoice for services rendered
at the completion of the phases of work as specified in the Schedule of Compensation. Such invoice
shall (1) describe in detail the services provided, including the phase completed, and (2) indicate the
total expenditures to date. Such invoice shall contain a certification by a principal member of
Contractor specifying that the payment requested is for work performed in accordance with the terms
of this Agreement. The Agency will pay Contractor for all expenses stated thereon which are
approved by the Agency pursuant to this Agreement within 30 days.
3.0 PERFORMANCE SCHEDULE
3.1 Time of Essence. Time is of the essence in the performance of this Agreement.
3.2 Schedule of Performance. All services rendered pursuant to this Agreement
shall be performed diligently and within the time periods provided for performance within the Scope
of Services (Exhibit "A") of this Agreement.
3.3 Force Majeure. All time periods specified for performance of the services
rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable
causes beyond the control and without the fault or negligence of the Contractor, including, but not
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restricted to, acts of God or of the public enemy, fires, earthquakes, floods, epidemic, quarantine
restrictions, riots, strikes, freight embargos, acts of any governmental agency other than City, and
unusually severe weather, if the Contractor shall within ten (10) days of the commencement of such
delay notify the Contracting Officer in writing of the causes of the delay. The Contracting Officer
shall ascertain the facts and the extent of delay and extend the time for performing their services for
the period of the forced delay when and if in his judgment such delay is justified, and the Contracting
Officer's determination shall be final and conclusive upon the parties to this Agreement.
3.4 Term. Unless earlier terminated in accordance with Sections 7.7 and 7.8 of this
Agreement, this Agreement shall continue in full force and effect for two (2) years, from the date of
the execution of this Agreement.
4.0 COORDINATION OF WORK
4.1 Representative of Contractor. The following principals of Contractor are
hereby designated as being the principals and representatives of Contractor authorized to act in its
behalf with respect to the work specified herein and make all decisions in connection therewith:
1. Erik T. Larsen
2. Cory Williams, Project Coordinator
3. Arnold D. Palmer (solely as specified in Scope of Service and all
contract will be with Erik Larsen or Cory Williams)
It is expressly understood that the experience, knowledge, capability and reputation of the
foregoing principals were considered by Agency in entering into this Agreement. Therefore, the
foregoing principals shall be responsible during the term of the Agreement for directing all
activities of Contractor and devoting sufficient time to personally supervise the services
hereunder. The foregoing principals may not be changed by Contractor without the express
written approval of Agency, such approval not to be unreasonably withheld.
4.2 Contract Officer. The Contract Officer shall be the Assistant Executive Director
or such other person as may be designated by the Executive Director of the Agency. The Contract
Officer has been authorized to act on behalf of the Agency for the purposes of this Agreement. It
shall be the Contractor's responsibility to assure that the Contract Officer is kept informed of the
progress of the performance of the services and the Contractor shall refer any decisions which must
be made by Agency to the Contract Officer. Unless otherwise specified herein, any approval of
Agency required hereunder shall mean the approval of the Contract Officer.
4.3 Prohibition Against Subcontracting or Assignment. The experience,
knowledge, capability and reputation of Contractor, its principals and employees were a substantial
inducement for the Agency to enter into this Agreement. Therefore, Contractor shall not contract
with any other entity to perform in whole or in part the services required hereunder without the
express written approval of the Agency. In addition, neither this Agreement nor any interest herein
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may be assigned or transferred, voluntarily or by operation of law, without the prior written approval
of Agency.
4.4 Independent Contractor. Neither the Agency nor any of its employees shall
have any control over the manner, mode or means by which Contractor, its agents or employees,
perform the services required herein, except as otherwise set forth. Contractor shall perform all
services required herein as an independent contractor with only such obligations as are consistent
with that role. Contractor shall not at any time or in any manner represent that it or any of its agents
or employees are agents or employees of Agency.
4.5 Agency Cooperation. The Agency shall provide Contractor with any plans,
publications, reports, statistics, records or other data or information pertinent to services to be
performed hereunder which are reasonably available to the Agency.
5.0 INSURANCE INDEMNIFICATION AND BONDS
5.1 Insurance. The Contractor shall procure and maintain, at its cost, and submit
concurrently with its execution of the Agreement, public liability and property damage insurance
against all claims for injuries against persons or damages to property resulting from Contractor's acts
or omissions rising out of or related to Contractor's performance under this Agreement. The
insurance policy shall be primary for losses arising out of Contractor's performance hereunder and
neither the City nor its insurers shall be required to contribute to any such loss. A certificate
evidencing the foregoing and naming the Agency and its officers and employees as additional
insured shall be delivered to and approved by the Agency prior to commencement of the services
hereunder. The amount of insurance required hereunder shall be determined by the Contract Sum in
accordance with the following table:
Contract Sum Coverage (personal injury/property damage)
Less than $50,000 $100,000 per individual; $300,000 per occurrence
$50,0004300,000 $250,000 per individual; $500,000 per occurrence
Over $300,000 $500,000 per individual; $1,000,000 per occurrence
The Contractor shall also carry automobile liability insurance of $1,000,000 per accident
against all claims for injuries against persons or damages to property arising out of the use of any
automobile by the Contractor, its officers, any directly or indirectly employed by the Contractor, any
subcontractor, and agents or anyone for whose acts any of them may be liable, arising directly or
indirectly out of or related to Contractor's performance under this Agreement. The term
"automobile" includes, but is not limited to, a land motor vehicle, trailer or semi -trailer designed for
travel on public roads. The automobile insurance policy shall be primary for losses arising out of
Contractor's performance hereunder and neither the Agency nor its insurers shall be required to
contribute to such loss. A certificate evidencing the foregoing and naming the Agency and its
officers and employees as additional insured shall be delivered to and approved by the Agency prior
to commencement of the services hereunder.
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Contractor shall also carry Workers Compensation Insurance in accordance with State
Workers Compensation laws.
The Contractor shall procure professional errors and omissions liability insurance in the
amount of FIVE MILLION DOLLARS ($5,000,000.00).
All insurance required by the Section shall be kept in effect during the term of this
Agreement and shall not be cancelable without thirty (30) days written notice of proposed
cancellation to Agency. The procuring of such insurance or the delivery of policies or certificates
evidencing the same shall not be construed as a limitation of Contractor's obligation to indemnify the
Agency, its officers, employees, contractors, subcontractors or agents.
5.2 Indemnification. The Contractor shall defend, indemnify and hold harmless the
Agency, the City, their officers, officials, employees, representatives and agents ("Agency
Indemnitees") from and against any and all actions, suits, proceedings, claims, demands, losses,
costs, and expenses, including legal costs and attorneys' fees, for injury to or death of person(s)
and/or for damage to property (including property owned by the Agency) to the extent caused solely
by the negligence or willful misconduct of Contractor, its officers, anyone employed by Contractor,
any subcontractor of Contractor, Contractor's agents or anyone for whose acts Contractor may be
liable.
In the event the Agency Indemnitees are made a party to any action, lawsuit, or other
adversarial proceeding in any way involving claims for which they are indemnified pursuant to the
preceding paragraph, then Contractor shall provide a defense to the Agency Indemnitees, or at the
Agency's option, reimburse the Agency Indemnitees their reasonable costs of defense, including
reasonable attorney's fees, incurred in defense of such claim. In addition, Contractor shall be
obligated to promptly pay any final judgment or portion thereof rendered against the Agency
Indemnitees arising out of claims for which they are indemnified pursuant to the preceding
paragraph.
The Agency shall defend, indemnify and hold harmless the PCDC, its officers, principal,
employees, representatives and agents ("PCDC Indemnitees") from and against any and all actions,
suits, proceedings, claims, demands, losses, costs, and expenses, including legal costs and attorneys'
fees, for injury to or death of person(s) and/or for damage to property to the extent caused solely by
the negligence or willful misconduct of the Agency, its officers, anyone employed by the Agency, the
Agency's agents or anyone for whose acts Agency may be liable.
In the event the PCDC Indemnitees are made a party to any action, lawsuit, or other
adversarial proceeding in any way involving claims for which they are indemnified pursuant to the
preceding paragraph, then Agency shall provide a defense to the PCDC Indemnitees, or at the
PCDC's option, reimburse the PCDC Indemnitees their reasonable costs of defense, including
reasonable attorney's fees, incurred in defense of such claim. In addition, the Agency shall be
obligated to promptly pay any final judgment or portion thereof rendered against the PCDC
Indemnitees arising out claims for which they are indemnified pursuant to the preceding paragraph.
LD-AF/cdc/52967mc 8
5.3 Remedies. In addition to any other remedies the Agency may have if Contractor
fails to provide or maintain any insurance policies or policy endorsements to the extent and within
the time herein required, the Agency, at its sole option:
1. Obtain such insurance and deduct and retain the amount of the
premiums for such insurance from any sums due under this
Agreement.
2. Order the Contractor to stop work under this Agreement and/or
withhold any payments(s) which become due to Contractor hereunder
until Contractor demonstrates compliance with the requirements
hereof.
3. Terminate the Agreement.
Exercise of any of the above remedies, however, is an alternative to any other remedies the Agency
may have and are not the exclusive remedies for Contractor's failure to maintain or secure
appropriate policies or endorsements. Nothing herein contained shall be construed as limiting in any
way the extent to which Contractor may be held responsible for payments of damages to person or
property resulting from Contractor's or its subcontractors' performance of work under this
Agreement.
6.0 RECORDS AND REPORTS
6.1 Reports. Contractor shall periodically prepare and submit to the Contract Officer
such reports concerning the performance of the services required by this Agreement as the Contract
Officer shall require.
6.2 Records. Contractor shall keep such books and records as shall be necessary to
perform the services required by this Agreement and enable the Contract Officer to evaluate the cost
and the performance of such services. Books and records pertaining to costs shall be kept and
prepared in accordance with generally accepted accounting principles. The Contract Officer shall
have full and free access to such books and records at all reasonable times, including the right to
inspect, copy, audit and make records and transcripts from such records.
6.3 Ownership of Documents. Provided that the Agency is in compliance with the
terms of this Agreement and PCDC has been paid the fees set forth in this Agreement through the
Phase II stage, originals of all plans, drawings, specifications, reports, records, documents, and other
materials, whether in hard copy or electronic form, which are prepared by Contractor, its employees,
subcontractors and agents in the performance of this Agreement, shall be the property of Agency
both during and after the term of this Contract. All such materials shall be delivered to Agency upon
the termination of this Agreement or upon the earlier request of the Contract Officer, and Contractor
shall have not claim for further employment or additional compensation as a result of the exercise by
Agency of its full rights of ownership of the documents and materials hereunder if PCDC has
received the fee due under this Agreement through the Phase H stage. Contractor may retain copies
of such documents for its files. Contractor shall ensure all subcontractors to assign Agency any
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documents or materials prepared by them, and in the event Contractor fails to secure such
assignment.
6.4 Release of Documents. The drawings, specifications, reports, records,
documents and other materials prepared by Contractor in the performance of services under this
Agreement shall not be released publicly without the prior written approval of the Contract Officer or
as required by law. Contractor shall not disclose to any other private entity or person any
information regarding the activities of the City or Agency, except as required by law or as authorized
by the Agency.
7.0 ENFORCEMENT OF AGREEMENT
7.1 California Law. This Agreement shall be construed and interpreted both as to
validity and to performance of the parties in accordance with the laws of the State of California.
Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement
shall be instituted in the Superior Court of the County of Riverside, State of California, or any other
appropriate court in such county, and Contractor covenants and agrees to submit to the personal
jurisdiction of such court in the event of such action.
7.2 Disputes. In the event of any dispute arising under this Agreement, the injured
party shall notify the injuring party in writing of its contentions by submitting a claim therefor. The
injured party shall continue performing its obligation hereunder so long as the injuring party
commences to cure such default within ten (10) days of service of such notice and completes the cure
of such default within forty-five (45) days after service of the notice, or such longer period as maybe
permitted by the Contract Officer; provided that if the default is an immediate danger to the health,
safety and general welfare, the Agency may take such immediate action as the Agency deems
warranted. Compliance with the provisions of this Section shall be a condition precedent to
termination of the Agreement for cause and to any legal action, and such compliance shall not be a
waiver of any party's right to take legal action in the event that the dispute is not cured, provided that
nothing herein shall limit Agency's right to terminate this Agreement without cause pursuant to
Section 7.8.
7.3 Retention of Funds. (a) Agency may withhold from any monies payable to
Contractor sufficient funds to compensate Agency for any losses, costs, liabilities or damages it
reasonably believes were suffered by Agency due to the default of Contractor in the performance of
the services required by the Agreement.
(b) PCDC may withhold any reports or other materials if it reasonably believes it has any
losses, costs, liabilities or damages that were suffered by PCDC due to the default of Agency in the
performance of its obligations required by this Agreement.
7.4 Waiver. No delay or omission in the exercise of any right or remedy of a non -
defaulting party on any default shall impair such right or remedy or be construed as a waiver.
Agency's consent or approval of any act by Contractor requiring Agency's consent or approval shall
not be deemed to waive or render unnecessary Agency's consent to or approval of any subsequent act
LD-AF/cdc/52967mc 10
of Contractor. Any waiver by either party of any default must be in writing and shall not be a waiver
of any other default concerning the same or any other provision of this Agreement.
7.5 Rights and Remedies are Cumulative. Except with respect to rights and
remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties
are cumulative and the exercise by either party of one or more of such rights or remedies shall not
preclude the exercise by it, at the same or different times, of any other rights or remedies for the
same default or any other default by the other party.
7.6 Mediation; Legal Actions. Except as provided herein, no civil action with
respect to any dispute, claim or controversy arising out of or relating to this Agreement may be
commenced until the matter has been submitted to JAMS, or its successor, for mediation. The
mediation of JAMS shall be conducted at the JAMS location located closest to the City of La Quinta
unless otherwise agreed by the parties. Either party may commence mediation by providing to
JAMS and the other party a written request for mediation, setting forth the subject of the dispute and
the relief requested. The parties will cooperate with JAMS and with one another in selecting a
mediator from JAMS' panel of neutrals, and in scheduling the mediation proceedings. The parties
covenant that they will participate in the mediation in good faith, and that they will share equally in
its costs. All offers, promises, conduct and statements, whether oral or written, made in the course of
the mediation by any of the parties, their agents, employees, experts and attorneys, and by the
mediator and any JAMS employees, are confidential, privileged and inadmissible for any purpose,
including impeachment, in any litigation or other proceeding involving the parties, provided that
evidence that is otherwise admissible or discoverable shall not be rendered inadmissible or non -
discoverable as a result of its use in the mediation. Either party may seek equitable relief prior to the
mediation to preserve the status quo pending the completion of that process. Except for such an
action to obtain equitable relief, neither party may commence a civil action with respect to the
matters submitted to mediation until after the completion of the initial mediation session, or 45 days
after the date of filing the written request for mediation, whichever occurs first. Mediation may
continue after the commencement of a civil action, if the parties so desire. The provisions of this
clause may be enforced by any Court of competent jurisdiction, and the party seeking enforcement
shall be entitled to an award of all costs, fees and expenses, including attorneys fees, to be paid by
the party against whom enforcement is ordered. After satisfying this mediation requirement, in
addition to any other rights or remedies, either party may take legal action, at law or at equity, to
cure, correct or remedy any default, to recover damages for any default, to compel specific
performance of this Agreement, to obtain injunctive relief, or to obtain any other remedy consistent
with the purposes of this Agreement.
7.7 Termination Prior to Expiration of Term. This Section shall govern any
termination of this Agreement, except as specifically provided in the following Section 7.8 for
termination for cause. The Agency reserves the right to terminate this Agreement at any time, with
or without cause, upon thirty (30) days' written notice to Contractor. However, if the Agency
terminates this Agreement and subsequently plans to proceed with the construction of the PCDC
designed Golf Course, the Agency agrees to provide PCDC with the first opportunity to resume the
and complete the work set forth in Scope of Services. Upon receipt of any notice of termination,
Contractor shall immediately cease all services hereunder except such as may be specifically
approved by the Contract Officer. Contractor shall be entitled to compensation for all services
LD-AF/cdc/52967mc 11
rendered prior to receipt of the notice of termination and for any services authorized by the Contract
Officer thereafter in accordance with the Schedule of Compensation (Exhibit "B") or such as maybe
approved by the Contract Officer, except as provided in Section 7.3. This Agreement may be
terminated by Contractor upon written notice to the Agency should the Agency fail to perform in
accordance with this Agreement after having been given written notice of such failure and forty-five
(45) days in which to cure such failure.
7.8 Termination for Default of Contractor. If termination is due to the failure of
the Contractor to fulfill its obligation under this Agreement, City may, after compliance with the
provision of Section 7.2, take over the work and prosecute the same to completion by contract or
otherwise.
7.9 Limitation on Liability. With the exception of the obligations to provide
insurance and indemnification set forth in Sections 5.1 and 5.2 above, the parties agree to the
following limitations upon any award for monetary damages as to each other: (1) In no event shall
Contractor be entitled to any monetary judgment against the Agency in excess of unpaid portion of
the Contract Sum; (2) In no event shall the Agency be entitled to any monetary judgment against
Contractor in excess of the portion of the Contract Sum paid to date by the Agency to the Contractor.
This section shall not create any entitlement to a damage award. Instead, it shall place a cap on any
such award that either of the parties would otherwise be entitled to received.
7.10 Assignment. The rights of the Agency to the services of PCDC as described
hereunder (including but not limited to the right to use Arnold Palmer Identification) cannot be
transferred or assigned to another without the prior written consent of PCDC, which consent shall
not be unreasonably withheld. PCDC acknowledges that the Agency may wish to transfer the Golf
Course and the associates rights under this Agreement to the City of La Quinta. PCDC hereby
consents to such transfer hereby grants its consent to such a transfer provided that the City complies
with the terms and conditions of the Agreement.
8.0 CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION
8.1 Non -liability of City Officers and Employees. No officer or employee of the
Agency shall be personally liable to the Contractor, or any successor in interest, in the event of any
default or breach by the Agency of for any amount which may become due to the Contractor or to its
successor, or for breach of any obligation of the terms of the Agreement.
8.2 Conflict of Interest. No officer or employee of the Agency shall have any
personal interest, direct or indirect, in this Agreement nor shall any such officer or employee
participate in any decision relating to the Agreement which effects his personal interest or the interest
of any corporation, partnership or association in which he is, directly or indirectly, interested, in
violation of any State statute or regulation. The Contractor warrants that it has not paid or given and
will not pay or give any third party any money or other consideration for obtaining this Agreement.
8.3 Covenant Against Discrimination. Contractor covenants that, by and for itself,
its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no
discrimination against or segregation of, any person or group of persons on account of race, color,
LD-AF/cdc/52967mc 12
creed, religion, sex, marital status, national origin, disability or ancestry in the performance of the
Agreement. Contractor shall take affirmative action to insure that applicants are employed and that
employees are treated during employment without regard to their race, color, creed, religion, sex,
marital status, national origin, physical disability, mental disability, medical condition, age or
ancestry.
9.0 MISCELLANEOUS PROVISIONS
9.1 Notice. Any notice, demand, request, consent, approval, communication either
party desires or is required to give to the other parties or any other person shall be in writing and
either served personally or sent by prepaid, first-class mail to the address set forth below. Either
party may change its address by notifying the other party of the change of address in writing. Notice
shall be deemed communicated forty-eight (48) hours from the time of mailing if mailed as provided
in this Section 9.1.
To Agency: LA QUINTA REDEVELOPMENT AGENCY
78-495 Calle Tampico
La Quinta, California 92253
Attention: Mark Weiss
Assistant Executive Director
To Contractor: PALMER COURSE DESIGN COMPANY
572 Ponte Vedra Blvd.
Ponte Vedra Beach, Florida 32082
Attention: Erik Larsen
Vice President, Managing Director, Senior Golf
Course Architect
9.2 Integrated Agreement. This Agreement contains all of the agreements of the
parties and all previous understandings, negotiations and agreements are integrated into and
superseded by this Agreement.
9.3 No Partnership or Joint Venture. The Agreement does not constitute and shall
not be construed as constituting a partnership or joint venture between the Agency and PCDC or
Palmer. Neither party shall have ay right to obligate or bind the other in any manner whatsoever,
and, except as expressly provided herein, nothing herein contained shall give, or is intended to give,
any rights of any kind to any third person.
9.4 Amendment. This Agreement may be amended at any time by the mutual
consent of the parties by an instrument in writing signed by all parties. This writing constitutes the
entire agreement between the parties hereto with respect to the subject matter hereof and may not be
changed or modified except by a writing signed by the party or parties to be charged thereby.
9.5 Severability. In the event that any or more of the phrases, sentences, clauses,
paragraphs, or sections contained in the Agreement shall be declared invalid or unenforceable by a
valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceable shall
LD-AF/cdc/52967mc 13
not effect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement
which are hereby declared as severable and shall be interpreted to carry out the intent of the parties
hereunder.
9.6 Authority. The persons executing this Agreement on behalf of the parties hereto
warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by
so executing this Agreement the parties hereto are formally bound to the provisions of this
Agreement.
9.7 Construction. This Agreement is the result of negotiations between the parties
and has been jointly drafted by both parties. It shall be so construed in its interpretation and
application.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates stated
below.
Dated:
ATTEST:
June S. Greek, Agency Secretary
APPROVED AS TO FORM:
M. Katherine Jenson, Agency Counsel
Dated:
LA QUINTA REDEVELOPMENT AGENCY
Thomas P. Genovese
EXECUTIVE DIRECTOR
AGENCY
By: Palmer Course Design Company
Name:
Arnold D. Palmer
CONTRACTOR
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LD-AF/cdc/52967mc 14
EXHIBIT A
SCOPE OF SERVICES
1. ENGAGEMENT OF PCDC
The Agency hereby engages PCDC, and PCDC agrees, to provide golf course architectural and
design services in connection with Golf Course as hereinafter set forth. PCDC will provide the
services of technically proficient and experienced personnel qualified as golf course architects who
work with Arnold Palmer ("Palmer"). PCDC has heretofore introduced to the Agency its
representatives who, along with Palmer and other PCDC representatives, will perform such golf
course architectural services. The Agency hereby represents that the Agency is the sole beneficial
owner of and has good, valid, marketable, and insurable title to the property on which Golf Course
will be built.
2. ARCHITECTURAL AND DESIGN SERVICES
Prior to commencement of Phase I, the Agency shall provide PCDC with the following as they
become available:
(a) access to the property on which Golf Course is to be constructed;
(b) such topographical maps and plats (on computer disk and in reproducible mylar form
as specified on Exhibit 1 attached hereto) in an appropriate scale as maybe necessary
in PCDC's sole discretion to accomplish the design work in connection with Golf
Course;
(c) complete historical, archaeological, and environmental survey of sensitive areas
along with all utilities, existing roads, et cetera, showing design constraints;
(d) the legal description of the property on which Golf Course is to be constructed;
(e) Golf Course and related amenities construction budget; and
(f) if completed, marketing studies indicating suggested development/amenity concepts
that relate to Golf Course.
Upon receipt of the necessary information, and subject to the Agency performing its obligations
hereunder, PCDC agrees to perform Golf Course architectural services in three phases: Phase I —
Golf Course Routing Plan, Phase H — Construction documents, and Phase III - Inspection of Golf
Course construction. The services are set forth as follows:
PHASE I —Master Planning
PCDC shall visit and analyze the proposed Golf Course property. PCDC shall consult with the
Agency and the Agency's representatives (i.e. engineers, planners, clubhouse architects, and
surveyors), in the preparation of a golf course routing plan (the "Routing Plan"). The Contract
LD-AF/cdc/52967mc 15
Officer may provide PCDC with the name and address of a representative of a tournament consultant
(the "Tournament Consultant"). If the Contract Officer provides PCDC with such a name and
address, PCDC will also consult with the Tournament Representative for purposes of obtaining input
regarding the possible tournament use of the Golf Course. Golf Course Routing Plan will include
site location for clubhouse, practice facilities, location of golf holes, and related amenities as maybe
reasonably requested by the Agency.
During Phase I, the Agency shall provide PCDC:
(a) specific source, quality and quantity of water for Golf Course irrigation purposes;
(PCDC will provide water testing).
(b) schematic site plans for clubhouse and maintenance.
PCDC shall prepare and provide to the Contract Officer the Preliminary Routing Plan. PCDC shall
provide a copy of the Preliminary Routing Plan to the Tournament Consultant. PCDC shall obtain
and consider the comments and recommendations of the Tournament Consultant and make
recommendations to the Contract Officer regarding thereto.
PCDC will coordinate with Agency staff in coordinating a presentation relating to the Preliminary
Routing Plan to the Agency Board, during which presentation it will receive input from the Agency
Board and interested member of the public.
Upon the Agency's written acceptance of the Preliminary Routing Plan, PCDC will prepare the final
routing plan (the "Final Routing Plan") and provide a colored rendering of said Final Routing Plan to
the Agency.
PCDC agrees that provided that the Agency has supplied the information required and provided its
written acceptance of the Preliminary Routing Plan by , Phase I will commence on
or before August 1, 2003, and will be completed on or before September 30, 2003.
Prior to the commencement of Phase 11, the Agency shall provide PCDC:
(a) written approval of the Final Routing Plan (Phase I);
(b) when completed, environmental impact surveys, permits, or other documentation
from local, state, and federal authorities;
(c) a survey of Golf Course center lines, Golf Course corridors, proposed road right-of-
ways and restricted easements as specified by PCDC;
(d) if requested, test drilling for the development of subterranean data and soil analysis
with respect to Golf Course; and
(e) any special governmental or environmental requirements for the irrigation system and
for sewage and waste disposal and utilities which may affect the irrigation design
must be furnished to PCDC prior to commencement of the irrigation design;
LD-AF/cdc/52967mc 16
otherwise the Agency will be responsible for additional design fees as a result of any
additional design services that may be required.
PHASE II — Preparation of Golf Course Construction Documents
Subject to the completion of Phase I, PCDC shall prepare such of the following as are required and
necessary for the construction of Golf Course. The plans to be prepared will be determined after
consultation between PCDC and Owner and may consist of -
(a) construction plans for features for the 18 holes of Golf Course to include golf course
drainage, tees, fairways, roughs, greens, mounds, swales, bunkers, lakes, ponds,
lagoons, and any other feature as may be mutually decided by PCDC and Owner and
excluding all buildings and structures (sketches and/or field instruction will also be
given during construction); and prior to completion of the construction plans, Owner
shall provide grading cut and fill calculations; Drawings are all at 1 "=100' and
suitable for public bidding, with the exception of greens details at 1"=30'.
(b) specifications, instructions, and construction documents for construction work on the
18 holes of Golf Course;
(c) The Agency is responsible for obtaining the services of consultants or specialists
when such services are required by governmental regulations, or as mutually agreed
upon by PCDC and the Agency. Such consultants or specialists may include, among
others, soil, civil, hydrologist or other engineers, archaeologists, et cetera. The
Agency shall furnish any laboratory tests, inspection or reports needed to obtain any
permits. PCDC shall be responsible for providing the general layout, design and
detailed specifications for an eighteen (18) hole irrigation system, including pump
station. The Agency is responsible for obtaining permits necessary to construct Golf
Course.
(d) schematic grassing and/or seeding plan, as approved by agronomy services included
herein.
(e) landscape architectural services: work includes attending design meetings, plan
review and preparation of working drawings, water feature biddable plans, landscape
irrigation plans at 1"-100", bid coordination, assistance in plant procurement and
installation supervision.
For the purposes of this Agreement, grading plans and other provided plans and specifications do not
include:
(a) design of the following related Golf Course facilities: pro shop; clubhouse;
maintenance buildings; rain shelters; course restrooms; storm drainage system, and/or
structures; bridges; dams; location or construction details; retaining walls; and other
structures and facilities requiring plans; or
LD-AF/cdc/52967mc 17
(b) any civil engineering or vertical construction plans required for the Golf Course
itself.
In no event is PCDC required to provide civil engineering or vertical construction services or advice
with respect to the Golf Course or its related facilities.
During and prior to completion of Phase II, the Agency shall provide PCDC:
(a) all engineering for mass grading and drainage, and cut and fill calculations, and
(b) all surveying required for Golf Course construction work.
PCDC agrees that provided the Agency provides the required information, Phase II will commence
on or before October 1, 2003, and will be completed on or before December 31, 2003.
PHASE III — Inspection of Golf Course Construction
Subject to the completion of Phase II, PCDC will assist the Agency and its contractors during all
phases of the actual construction of Golf Course. Services to be provided by PCDC are as follows:
(a) assistance in the qualification and selection of the contractor or contractors for the 18
holes of Golf Course;
(b) assistance in the evaluation and administration of all construction contracts for the 18
holes of Golf Course. Owner shall provide PCDC with copies of all agreements;
(c) assistance with construction scheduling and programming for the 18 holes of Golf
Course;
(d) monitoring of all phases of the 18 holes of Golf Course construction work when and
as deemed necessary by PCDC;
(e) landscape architectural feature review (see (e) ofPhase II), rain, and comfort stations,
water fountains, and similar amenities; and
(f) agronomic services work including: site analysis, facility and program development,
sod selection and installation inspection (after architect approval of all contour
grading and prior to grassing of each hole), grow -in control, and inspection.
(g) assistance in selection of golf course operators.
The Agency currently anticipates that Phase III will commence on or before January 1, 2004, and
will be completed on or before December 31, 2005. However, the Agency cannot guarantee that the
construction of the Golf Course will occur within that time frame. Should the construction occur in a
time frame other than what is currently anticipated, PCDC's provision of the Phase III services will
be subject to its availability. The parties agree to use their best effort to coordinate the Phase III
work in the event that it occurs after December 31, 2005. In no event shall the Agency be required to
pay for the Phase III services if the services are not provided by PCDC. Agency agrees that 30
LD-AF/cdc/52967mc 18
assuming PCDC is available to provide the Phase III service, no other third party will provide Phase
III services. In the event the Phase III serves are not provided by the PCDC, Owner will not have the
right to represent that the Golf Course was designed by PCDC and by Palmer unless PCDC agrees
otherwise.
3. POST CONSTRUCTION ASSISTANCE
For purposes hereof, the completion of Golf Course is herein defined as the completion of grassing
of Golf Course. For a period commencing upon the completion of Golf Course and continuing until
such time as Golf Course is opened for play, but no later than one year after completion of Golf
Course, PCDC will reasonably assist Owner with post construction inspections during grow -in
period, maintenance inspections and playability inspections by members of PCDC's staff.
Scheduling of said visits shall be mutually agreed upon by PCDC and Owner and travel expenses for
all such post construction visits will be subject to reimbursement by Owner in accordance with
Section 2.1.
4. CONSTRUCTION OF COURSE
If Owner elects to construct the Golf Course utilizing the plans that PCDC has prepared, it shall
construct Golf Course substantially in accordance with the plans, specifications, and instructions
prepared by PCDC. Owner will not change or modify the design and construction plans and
specifications prepared by PCDC without prior approval by PCDC. Owner agrees to provide
competent construction personnel to properly interpret all Golf Course plans, sketches, and field
instructions provided by PCDC. At Owner's request, PCDC can assist Owner, at Owner's cost, in
locating competent personnel if deemed necessary. If any material change is made in the
construction of Golf Course without the approval of PCDC with respect to design concept, in the
reasonable judgment of PCDC, PCDC shall have the right to terminate Owner's right to represent
that Golf Course was designed by PCDC and by Palmer. However, prior to exercising this right,
PCDC must first undertake the right to cure process outlined in Section 7.2 for disputes. Owner and
PCDC shall work in good faith to resolve any such dispute and utilize their best efforts to avoid such
termination.
As each phase of Golf Course construction (as defined in PCDC's specifications) is completed and
within sixty (60) days of the final completion of construction of Golf Course, Owner will, for
PCDC's information purposes only, supply to PCDC an itemization of the construction costs of Golf
Course on forms to be provided to Owner by PCDC.
5. ADDITIONAL SERVICES
Owner understands that the fee for services set forth in the schedule of additional services
("Additional Services") are not included as part of the Design Fees. If any of these or other
Additional Services are requested by Owner, a separate fee for such services will be negotiated and
agreed to in writing by the parties at the time of Owner's request.
LD-AF/cdc/52967mc 19
Schedule of Additional Services
(a) Revisions to previously completed drawings, specifications or other documents
which are the responsibility of PCDC to accomplish changes not initiated by PCDC
(for the purpose of this Agreement the term "revision" means a re-routing caused by
changes to the Final Routing Plan, re -design of grading plans, re -design of irrigation
plans, and additions to any previously completed drawings of PCDC as a result of
Owner's failure to furnish PCDC with all required data as outlined in Section 2
hereunder) or any other design changes that are initiated by Owner that require
revisions to previously completed plans — minor modifications and revisions will be
completed at no extra charge;
(b) providing financial feasibility or other special studies;
(c) preparing documents or drawings for alternate bids requested by Owner and, in
connection therewith, preparing bid analysis, preparing and reviewing architect and
contractor contracts;
(d) providing special analyses of Owner's needs, and/or architectural and drafting
services, such as material required for brochures, renderings, and other publications;
(e) providing any services to Owner after completion of Golf Course, except as expressly
provided herein; and
(f) providing services as a witness in connection with any public hearing, arbitration
proceedings, or court proceedings.
6. APPEARANCES OF PALMER
As part of the services to be performed by PCDC hereunder, PCDC agrees that Palmer will be
personally involved with the design concept of the Golf Course. In addition, Palmer will also be
personally involved with the formal announcement of PCDC's involvement with Golf Course,
develop and evaluate the strategic playability of design, personally assist in the filming of
promotional video and other advertising materials concerning Golf Course, conduct a construction
inspection of Golf Course when and if deemed necessary by PCDC, and play a 9-hole exhibition as
the formal opening of Golf Course. All requests will be answered in a timely manner by PCDC. A
total of two (2) visits by Palmer are covered in this Agreement.
Such dates will be upon mutual agreement between Owner and PCDC. The exact time of such
services shall be scheduled by mutual agreement of the parties and shall take into account Palmer's
tournament, practice, travel, exhibition, and rest schedules. All expenses of Palmer incurred in
connection with such appearances or visits shall be deemed to be expenses of PCDC to be
reimbursed pursuant to Section 2.1 of the Agreement.
LD-AF/cdc/52967mc 20
7. USE OF ARNOLD PALMER IDENTIFICATION
The term "Arnold Palmer Identification" shall mean the name "Arnold Palmer" and certain pictures
of Palmer which are pre -approved for use by PCDC from time to time. Owner may use Arnold
Palmer Identification in connection with advertisement and promotion of Golf Course (and not in
connection with merchandise sales or sales of interests in real estate or securities) only in the manner
and only to the extent herein permitted:
(a) except as provided in subparagraphs (e) and (f), no use of Arnold Palmer
Identification may be made by Owner or any of its representatives or agents unless
and until such use has been approved by PCDC;
(b) no use of Arnold Palmer Identification may be made by Owner or any of its
representatives or agents while Owner is in default hereunder or in breach of any
provision hereof;
(c) no picture of Palmer may be used, in, on or in connection with any item for sale or
resale;
(d) all material for approval shall be sent to PCDC marked to the attention of Mr. Ed
Seay. PCDC agrees that any material submitted hereunder will not be unreasonably
disapproved and that PCDC's response will be provided within 10 business days. If
no response is received within that time period, the request will be deemed approved;
(e) Arnold Palmer Identification may be used in connection with advertising and
promoting that Golf Course was designed by PCDC and by Palmer. No pre -approval
shall be required for such use. PCDC acknowledges that Golf Course may be
operated in conjunction with other elements of a project (such as, for example, a real
estate development or a hotel). In its materials relating to the other elements of the
project, Owner shall have the right to reference the Golf Course and utilize the
Arnold Palmer Identification only in reference to the Golf Course itself. Owner
acknowledges that Arnold Palmer Identification maybe used only in connection with
the Golf Course itself and may not be used in such a manner as to suggest an
association between PCDC or Palmer and any elements of Owner's project other than
Golf Course itself, or for purposes of retailing or wholesaling merchandise or selling
interests in real estate or securities. Owner shall provide copies of materials prepared
and distributed pursuant to this paragraph to PCDC. If Owner is using The Arnold
Palmer Identification incorrectly PCDC will notify Owner within 10 business days
and Owner agrees to correct such usage and will destroy and remove materials with
the incorrect usage;
(f) subject to the foregoing and without the need for any further approval, PCDC agrees
that Owner shall have the right to include in all advertising and promotional
publications in connection with Golf Course (such as advertisements, brochures,
scorecards, leaflets, mail -out information) the legend "[NAME OF GOLF COURSE,
an Arnold Palmer Signature Course] was designed and created by Palmer Course
33
LD-AF/cdc/52967mc 21
Design Company" and Owner shall have the right to use the Arnold Palmer Umbrella
Logo associated with PCDC as set forth in Exhibit 2 ("Logo"), in association with
this legend. Owner shall provide copies of materials prepared and distributed
pursuant to this paragraph to PCDC. If Owner is using such legend and logo
incorrectly, PCDC will notify Owner within 10 business days and Owner agrees to
correct such usage and will destroy and remove all materials with the incorrect usage.
(g) Owner may continue to use Arnold Palmer Identification in the manner provided
herein after the termination of this Agreement if the Golf Course is completed in
accordance with Section 4 of the Scope of Services, and maintained in a satisfactory
manner to PCDC as of such date of use. If Golf Course is not constructed
substantially in accordance with the plans prepared by PCDC as outlined in Section 4
of the Scope of Services, or if any substantial change is subsequently made in Golf
Course without the approval of PCDC, or if Owner has not maintained Golf Course
to a standard for other PCDC public course designs, the Owner shall forfeit its rights
to (i) advertise and promote that Golf Course was designed by PCDC or Palmer, or
(ii) make any use whatsoever of the Arnold Palmer Identification. However, prior to
seeking such forfeiture, PCDC will provide Owner with notice of the unsatisfactory
condition of the golf course and the steps that Owner must undertake to cure such
conditions. If Owner is unable to cure such unsatisfactory conditions within 6
months, Owner shall forfeit the rights set forth above. Furthermore, it is agreed that
the parties will follow the process outlined in Section 7.2 for disputes. Owner and
PCDC shall work in good faith to resolve any such dispute and utilize their best
efforts to avoid such forfeiture.
The parties hereto recognize that a breach of any of the covenants and agreements contained in this
Agreement relating to the right to use, and the limitations on the use of, the Arnold Palmer
Identification will cause irreparable harm to the injured party and that monetary damages alone will
not be sufficient to cure any resultant harm to the injured party. Therefore, the parties hereto agree
that in the event of any actual or threatened breach by Owner or PCDC, of any of the covenants and
agreements contained herein relative to the licensing or use of the Arnold Palmer Identification, the
injured party shall be entitled, in addition to such other rights and remedies which may be available
to such party or parties at law or in equity, to injunctive relief against any such actual or threatened
breach without being required to show actual damages or post any bond or other security.
PCDC may use Owner's name, the name of Golf Course, the name of the project and the fact that the
Golf Course is a Palmer- or PCDC- designed golf course, as well as photographs and videotapes of
the Golf Course and related facilities, in any brochures or other marketing materials used by PCDC
in its business.
LD-AF/cdc/52967mc 22
Palmer Course CompanyDesi ng
POST OFFICE BOX 1639 572 PONTE VEDRA BOULEVARD TELEPHONE 904-285-3960
PONTE VEDRA BEACH, FLORIDA 32004 PONTE VEDRA BEACH, FLORIDA 32082 TELEFAX 904-285-2119
ARNOLD D. PALMER, President
ED WAY, Executive Vice President
Chief Operating Officer
HARRISON MINCHEW, Vice President
ERIK LARSEN, Vice President Aril 10, 2003
VICTORIA MARTZ, Vice President p
KEVIN BENEDICT, Vice President
La Quinta Redevelopment Agency.
P. 0. Box 1504
La Quinta, CA 92253
Re: Request for Proposals — The Ranch
Ladies and Gentlemen:
Thank you for the opportunity to provide the La Quinta Redevelopment Agency with information on our
services and an indication of our interest in being considered as the Golf Course Architect.
Palmer Course Design Company is a complete worldwide golf course architectural organization. Our
company is built on the foundation of traditional excellence that Arnold Palmer has demonstrated
throughout his life and career.
Our contact person for the remainder of the selection process will be:
Erik Larsen
Vice President/Managing Director
Palmer Course Design Company
572 Ponte Vedra Boulevard
Ponte Vedra Beach, FL 32082
Phone: 904-285-3960 Fax: 904-285-2119
Email: erik@palmerdesign.com
Palmer Course Design Company is familiar with and completely comfortable with the goals and
services requested. The La Quinta Redevelopment Agency's desired goals and services are almost
identical to our company's design philosophy. The staff of the Palmer Course Design Company will
provide all golf course architectural services.
Please find enclosed in this Work Proposal, our Statement of Qualifications, Project Understanding
and Approach, Scope of Services, and Schedule Requirements, as well as a separate Cost
Proposal.
We look forward to working again in La Quinta and thank the La Quinta Redevelopment Agency for
this opportunity.
http://www.palmordesign.com • email: palmercourse@palmerdesign.com
P.O. Box 52 • Youngstown, Pennsylvania 16696 • 724/537-7751
9000 Bay Hill Boulevard • Orlando, Florida 32819 • 407/876-3944
1360 East 9th Street, Suite 100 • Cleveland, Ohio 44114 • 216/522-1200
Erik T. Larsen
V �
American Society of 23
Golf Couwse Architects
Statement of Qualifications
Palmer Course Design Company has five members of the American Society of Golf
Course Architects on staff as well as two additional qualified and experienced Golf
Course Architects. Upon selection as the Golf Course Architect for The Ranch, Palmer
Course Design Company will select the staff architect best suited for the project and
assign a Project Coordinator.
Golf Course Architects
Ed Seay — Executive Vice President, Chief Operating Officer, and Director of
Design. Mr. Seay graduated from the University of Florida, is a commissioned
officer of the United States Marine Corps, and is a registered Landscape
Architect. He is a past president of the American Society of Golf Course
Architects, a member of the American Society of Landscape Architects, and sits
on the Recreational Development Council of the Urban Land Institute as well as
the Board of Advisors for the World Golf Hall of Fame. Ed has participated in
the design, construction, and promotion of more than 350 golf courses worldwide
with more than 200 designed with Arnold Palmer.
Harrison Minchew - Vice President, Director of Design Services, and Senior
Golf Course Architect. Mr. Minchew received his degree in Landscape
Architecture from the University of Georgia. He is a regular member of the
American Society of Golf Course Architects, the American Society of Landscape
architects, and the Urban Land Institute. Since joining Palmer Course Design
Company in 1982, Harrison has been involved in the design of more than 100
completed golf courses worldwide. As Vice President and Director of Design
Services, Harrison is completely involved in all phases of the design of every
project from conception through completion.
Erik Larsen - Vice President, Managing Director, and Senior Golf Course
Architect. Mr. Larsen received his degree in Landscape/Horticulture from North
Carolina State University. He is a regular member of the American Society of
Golf Course Architects, the American Society of Landscape Architects, a full
member of he Urban Land Institute, and a registered landscape architect. Since
joining Palmer Course Design Company in 1983, Erik has been involved in the
design of more than 100 completed golf courses worldwide. As Vice President
and Managing Director, Erik oversees the company's present operations and
helps guide its future direction. As Senior Golf Course Architect he is completely
involved in all aspects of each project from contract negotiation to construction
completion.
Palmer Course Design Company - 24
Victoria Martz - Vice President, Golf Course Architect, and Director of
Environmental Design. Mrs. Martz majored in Landscape Architecture at the
University of Kentucky and is an associate member of the American Society of
Golf Course Architects. She is also a member of the Urban Land Institute,
American Society of Landscape Architects, Florida Native Plant Society, and the
Executive Women's Golf Association. Since joining Palmer Course Design
Company in 1985, Mrs. Martz has been involved in the design of more than 40
completed golf courses worldwide. As Vice President and Golf Course Architect,
she is completely involved in all aspects of project design and coordination. This
involvement begins with project conception and continues through completion of
construction. As Director of Environmental Design, Mrs. Martz coordinates and
assists the owner's consultant in preparing a comprehensive environmental site
assessment. This includes wetland management, permitting, native grass and
plant selection and evaluation of wildlife habitat.
Kevin Benedict - Vice President, Golf Course Architect, and Director of
Marketing. Mr. Benedict received his bachelor's degree in Graphic Design from
Wichita State University and is an Associate Member of the American Society of
Golf Course Architects. Since joining Palmer Course Design Company in 1986,
Kevin has been involved in the design of more than 40 completed courses
worldwide. As Vice President and Golf Course Architect, his responsibilities
include all aspects of design from project conception, construction drawings and
documents, as well as supervision of construction through completion of the
project.
Greg Stang - Golf Course Architect. Mr. Stang received his degree in
Engineering from the University of Florida. With his engineering background, he
is extensively involved with residential and commercial land planning, drainage
design, and environmental permitting. Since joining Palmer Course Design
Company in 1989, Greg has been involved in the design of more than 30
completed courses worldwide. As golf course architect, he is responsible for all
aspects of design from project conception through completion of the project.
Ray Wiltse — Golf Course Architect. Mr. Wiltse obtained his certification in
Electrical Engineering from Columbus Technical Institute. He also attended
Delta College and received certificates in Horticultural. Maintenance and
Landscape Design. Ray was employed for twenty years as a planning manager
and worked with other design firms as a planner and designer of destination
resorts. Since joining Palmer Course Design Company in 1990, Ray has been
involved in the design of more than 30 completed courses worldwide. He also
works extensively with remodeling of existing courses. As a golf course architect,
he is responsible for all aspects of project design and coordination.
Palmer Course Design Company - 25
Project Coordinators
Kory Williams — Golf Course Architect and Project Coordinator. Mr. Williams
received his degree in Business Administration from the University of Alabama.
With a background in business management and civil engineering Mr. Williams
brings extensive world wide architectural experience, as well as sound project
management skills. Since joining Palmer Course Design Company in 1988, Kory
has been involved in the design of more than 25 completed courses worldwide.
As a project architect and project coordinator, Kory is involved in the project from
conception through construction.
Eric Wiltse — Project Coordinator and Director of Information Technologies. Mr.
Wiltse joined Palmer Course Design Company in 1989 as an assistant to the
design staff, leading to his current position. As Director of Information
Technologies, Eric is responsible for all aspects of the office computer system.
He also assists with the generation of plans and construction documents utilizing
the CAD (computer aided design) system. As a project coordinator, Eric is
involved in the project from conception through construction.
Ron Howell — Project Coordinator. Mr. Howell received his bachelor's degree in
Consumer Science and a minor in Urban Planning from Florida State University.
He also received an associate of arts degree in Architecture / Engineering from
Florida Community College of Jacksonville. Since joining Palmer Course Design
Company in 1998, using his background in land development, civil engineering,
and golf course construction and maintenance, Ron is extensively involved in
project development and design. As a project coordinator, he is involved in the
project from conception through construction. Using the CAD (computer aided
design) system he also generates plans and construction documents.
Thad Layton — Project Coordinator. Mr. Layton received his bachelor's degree
in Landscape Architecture from Mississippi State University, graduating Magna
Cum Laude. While at Mississippi State he took related coursework in Turfgrass
Management, Soils, Plant Materials I & II, Golf Course Architecture I, and Design
of the Golf Environment. He has also spent time working in the field for several
golf course construction companies gaining valuable experience. After fulfilling
all requirements, Mr. Layton recently became a Registered Landscape Architect.
Thad has worked Palmer Course Design Company as a summer intern since
1997 and joined the company as a full time employee in February 2000. As a
project coordinator, Thad is involved in the project from conception through
construction. He is also responsible for the production and coordination of
drawings using the CAD (computer aided design) system.
Palmer Course Design Company 26
Palmer Course Design Company reviews each two -man team's work through an in-
house critique process. Two non -project architects are assigned to each project to
review safety, function, beauty, and playability of the golf course. All documents and
designs are reviewed at key times throughout the design process, particularly during
master planning and grading plans.
Palmer Course Design Company has been involved in the planning, design, and
construction of more than 250 golf courses around the world, including 37 states and
twenty-one countries. A list of several golf courses that have a similar scope of services
to The Ranch are listed below.
Area Courses
The Tradition Golf Club
Indian Ridge CC
PGA West -Palmer Private
Mountain View
Municipal Courses
City of Olathe Kansas
The Den at Fox Creek
City of Bloomington, IL
Spencer T. Olin Community GC
Alton, IL
Stonewall Jackson Lake GC
Tazwell, WV
Resort Courses
David Chapman
Bill Bone
KSL Development
Shannon Lichliter
Kevin Corbitt
Keith Rich
Sally Cadmus
J. Rudy Henley
Fours Seasons Resort Aviara
Rick Ransburg
San Diego, CA
Stonewall Jackson Lake
Rudy Henley
Golf Resort, Tazwell, WV
Mauna Kea Resort
Adi Kohler
Hapuna Course, Kohala,
HI
Turtle Bay Resort
Mike Honma
Links Course, Oahu, HI
Peninsula Papagayo
Xavier Urbina
Four Seasons Resort, Costa
Rica
Running Y Resort
Dick Wendt
Klamath Falls, OR
Mountain Star Resort
Dick Wendt
Roslyn, WA
(760) 564-3355
(877) 933-2663
(760) 564-7111
(760) 771-6076
(913) 971-6628
(309) 823-4260
(618) 465-3111
(304) 347-7520
(760) 603-7520
(304) 347-7520
(808) 293-8574
+506-670-0200
(541) 885-3119
(541) 885-3119
Palmer Course Design Company
27
Palmer Course Design Company is proud to have designed many outstanding golf
courses that have been selected to host a variety of PGA TOUR, Champions TOUR
(formerly PGA SENIOR), LPGA TOUR, and European TOUR events as well as many
U.S. Amateur, Regional, State, and local tournaments. A partial list includes the
following:
Courses Hosting Tournaments
Kildare Hotel & Country Club Straffan, County Kildare, Ireland
2006 Ryder Cup; 1995-1997 European Open
Bay Hill Club and Lodge * Orlando, FL
1978-2003 Bay Hill Invitational
Palmer Private — PGA West La Quinta, CA
1991-2003 Bob Hope Desert Classic
Hiddenbrooke Country Club Vallejo, CA
2001 LPGA Mitsubishi World Championship, 2000 Samsung World
Championship of Women `s Golf;
Atlanta Athletic Club * Duluth, GA
2002 U.S. Junior Amateur Championship, 2001 PGA Championship
Empire Lakes Golf Course Rancho Cucamonga, CA
2001 Pepsi Open
Northview Golf & Country Club Surrey, British Columbia, Canada
1999 and 2000 Air Canada Championship, 1996-1999 Greater Vancouver Open
General Course - PGA National Palm Beach Gardens, FL
1999 PGA SENIORS Championship
Links at Turtle Bay Resort Oahu, Hawaii
2001 Challenge at Kuilima
The Woodlands Woodlands, TX
1999 Shell Houston Open, 1999 AGJA Taylor Made (Junior)
Sporting Club Berlin Bad Saarow, Germany
1999 German Open
Spencer T Olin Community GC Alton, IL
1999 U.S. Amateur Public Links Championship
Orchard Golf & Country Club Dasmarinas, Cavite, Philippines
1996 Johnnie Walker Classic
* Remodeled by PCDC
Palmer Course Design Company - 28
Project Understanding and Approach
We understand the goals of the Agency with regard to the golf course and the orderly
application of the desired services necessary to achieve that end. We further
understand this is a resort project inclusive of hotel, development, circulation,
recreation, and infrastructure. This is the first phase of a multi -use project. The La
Quinta Redevelopment Agency, a public entity, is the owner. The Agency's
representative is Mark Weiss. Gil Martinez and GMA International, is developing a
master plan and program for the project. Civil Engineering, a key element of the design
team, has not been named. Enclosed please find our Planning, Design, and
Construction Checklist, which explains step-by-step how we approach each project. It
identifies a checklist of tasks all inclusive of your desired services and who is to perform
them and when, from design through construction. We propose adopting this outline or
something similar as the team approach to this project.
Our design intention is the same as the La Quinta Redevelopment Agency. The Ranch
will be special and have its own fascinating character. Visually exciting, fun, and
tournament ready will be its defining elements. The Ranch will offer great light and
color, vivid contrast of water and rock, perfect growing conditions for turf, and a feeling
of its own. Your "must see" definition can include must play.
For the golf course to be great, it must meet your goals. We will pay close attention to
its uniqueness, compatibility, sensitivity, and friendliness with regard to the local ecology
and people. Our signature design traits are subtle. The land, you as owners,
environmentalists, and engineering, et al tell us what to do. We put the pieces together.
It's like putting a puzzle together without the picture on the box. The golf course will be
beautiful, special, and in harmony with your vision for The Ranch.
Palmer Course Design Company is prepared to aid in contractor selection through a
public bid process. Under the public bid scenario, a minimum of three bids is usually
required. Bid openings may be private or public. Contractors will need to be bondable,
insured to a specific amount, and licensed to work in California. We are accustomed to
providing tabulation sheets bids to help determine comparable and favorable bids.
Discussion between owner and architect is helpful prior to discussions with contractors.
Experience, availability, schedule, key employees, sub -contractors, equipment, and cost
(among other items) should determine the winning bidder. Selection would be a public
announcement. Contractor, owner, and golf course architect will sign payment draws
before payment is made. Draw requests will likely be made monthly and based on a
daily progress log kept by owner and contractor. Changes from contract will require
change orders signed by owner, contractor, and golf course architect and should require
accompanying shop drawings. Prevailing minimum wage will apply to all construction
work performed. There are many ways to select contractors. We will aid in any
method used by the Agency.
41,
Palmer Course Design Company - 29
Scope of Services
The attached Planning, Design and Construction Checklist outlines all tasks, sub tasks,
and specific deliverables that will be provided. All golf course designs are completed in
AutoCAD 2000 and electronically filed and archived.
Palmer Course Design Company has 34 active projects that are under agreement.
Seventeen are currently under construction with 11 of those located in the U. S. and six
overseas. Seventeen active projects are in planning (14-USA, 3-INTL). On average,
Palmer Course Design Company grand opens seven courses each year, with ten
courses being grand opened in 2002. In 2003, we anticipate the grand opening of six
18-hole golf courses and a Signature practice facility. Over the past ten years, Palmer
Course Design Company has averaged more than 40 active projects each year and we
are currently experiencing a normal workload.
Our process of servicing our client's needs has been refined for more than 30 years.
We feel that along with the quality of our courses and the Palmer name, the service we
provide is our biggest asset. This is best illustrated by the fact that most of our work is
from repeat customers. Our two -man teams and checklist formula allow us to efficiently
and effectively manage our current workload and we look forward to the opportunity to
include The Ranch on our list of Active Projects. The Ranch project would be given the
same completely satisfying service provided to all others. You and your project are
important. We handle it that way.
`t 4
Palmer Course Design Company 30
Schedule Requirements
Palmer Course Design Company will be ready to begin work on June 2, 2003.
Palmer Course Design Company has completed the design and construction bidding
activities several times in a six-month term. With the preliminary planning complete,
master planning should take one month. Preparation of construction documents should
take four months. Construction bidding should take one month.
We understand and accept the schedule of meetings proposed.
4 `3
Palmer Course Design Company - 31
Palmer Course Design Company
Planning, Design and Construction Checklist
4/7/2003
Golf Course Lead Architect
PHASE I
The Ranch Erik Larsen
Step Level
Description Due Date Completed
Is
Date
Complete
A 0
SEND LETTER OF QUALITY ASSURANCE FOR DISCUSSION
A 1
Safety
A 2
Function
A 3
Style
A 4
Playability
A 5
Restrictions
B 0
SEND CURRENT CAD TOPO SPEC TO OWNER
C 0
REVIEW AND APPROVE TOPO
C 1
Contour
C 2
Quality
C 3
Existing Vegetation
C 4
Utilities
C 5
Environmental
C 6
Historical
C 7
Other Restrictions
D 0
SITE REVIEW AND ANALYSIS
D 1
Topo Accuracy
D 2
Restrictions
D 3
Prevailing Wind
D 4
Water Source
D 5
Water Quality
D 6
Soils
D 7
Vegetation
D 8
Wildlife
E 0
ENGINEER - OWNER - ARCH MEET ON SITE TO DEFINE:
E 1
Design Team
E 2
Restrictions
E 3
Development Requirement
E 4
Engineer Requirement
44
6:08:19PM
Planning, Design and Construction Checklist
32
Planning, Design and Construction Checklist
4/7/2003
Golf Course Lead Architect
PHASE I The Ranch Erik Larsen
Stye L- Description Due Date Completed Is
Date Complete
E
5
Others Requirement
E
6
Construction Methods
F
0
PRELIMINARY LAND PLAN WITH TEAM
G
0
DESIGN FEEDBACK & APPROVAL BY:
G
1
Owner
G
2
PCDC
G
3
Design Team
H
0
SITE STAKING
H
1
Center Line and Clearing
H
2
Property Line
H
3
Delineated Enviornmental Area
H
4
Other Site Restrictions
I
0
WALK CENTER LINES
J
0
FINAL GOLF COURSE ROUTING & MASTER LAND PLAN
K
0
PCDC REVIEW
L
0
OWNER AND DESIGN TEAM APPROVAL
M
0
PRELIMINARY COURSE CONST. COST ESTIMATES
N
0
OBTAIN 100' PLATTED MASTER PLAN ON DISK FROM ENG
O
0
COLOR RENDERING
Cl j
6:08:19PM Planning, Design and Construction Checklist 33
Planning, Design and Construction Checklist
4/7/2003
PHASE II
Golf Course
The Ranch
Step Level Description
Lead Architect
0 PREPARE BASE SHEETS FROM ENGS. PLATTED MASTER PL
0 MEET W/OWNERS AND DESIGN MEMBERS TO DISCUSS:
1 Schedule
2 Facilitation of Plans
3 Permit Issues
4 Engineer - Architect Co-operation
5 Master Drainage Incl. Lake Elevations
6 Development and Road Elevations
7 Special Site Restrictions/Opportunities
0 PCDC PLANNNING
1 Strategy
2 Playability
3 Preliminary Grading
0 ENGINEER REVIEW
1 Cut and Fill Calculations from Engineer
2 Master Drainage Review from Engineer
3 Enviornmental Restriction Review by Eng.
4 Grading Tie in to Development
0 MODIFICATION TO GRADING PLAN PER ENG. COMMENTS
0 TEAM REVIEW
1 Owner Approval
2 Engineer Approval
3 Others Approval
0 SEND TO DALE WITH IRRIGATION LINE FOR DESIGN
0 WINCHESTER - OWNER IRRIGATION MEETING
0 PREPARE REMAINING CONSTRUCTION DRAWINGS
1 Clearing
2 Grassing
3 Landscape
4 Greens
5 Reduce Layout
6 Cover Sheet
7 Details
8 Irrigation
0 SPECIFICATIONS
Erik Larsen
Due Date Completed Is
Date Complete
6:08:19PM Planning, Design and Construction Checklist 34
PHASE II
Planning, Design and Construction Checklist
4/7/2003
Golf Course Lead Architect
The Ranch
Step Level Description
J 1 Quantities
J 2 Specifics to Job
J 3 Bid Documents
K 0 REFINE COST ESTIMATE
Erik Larsen
Due Date Completed Is
Date Complete
47
6:08:19PM Planning, Design and Construction Checklist 35
Planning, Design and Construction Checklist
4/7/2003
Golf Course Lead Architect
PHASE III The Ranch Erik Larsen
Stye Level Description Due Date Completed Is
Date Complete
0 MEET WITH OWNERS
1 Schedule
2 Budget
3 Method of Construction
4 Bid/Negotiate Particulars
0 INVITATION TO CONSTRUCTIONBID VS. NEGOTIATE
0 SEND PLANS & SPECS TO CONTRACTORS
0 PRE -BID MEETING
0 BID DUE DATE - RECEIVE BIDS
0 ARCHITECT AND OWNERS BID REVIEW
0 CONTRACTOR SELECTION
0 PRE-CONST. CONFERENCE W/SELECTED CONTRACTOR
0 CONSTRUCTION:
1 Surveying and Staking
2 Marking of Trees and Clearing
3 PCDC Approval
4 Major Earthwork
5 Rough Shaping
6 PCDC Approval
7 Greens and Tees Construction & Bunker
8 PCDC Approval
9 Irrigation
10 Speciality Items
11 Finish Grading and Seedbed Preparation
12 PCDC Appr.-Mark Bunkers -Grassing Lines
13 Grassing/Seeding
14 PCDC Approval
15 Maturation
16 PCDC Approval
0 ARNOLD PALMER - GROUND BREAKING
0 ARNOLD PALMER - OPENING
4�
6:08:19PM Planning, Design and Construction Checklist 36
Exhibit 1
TOPOGRAPHICAL INFORMATION REQUIRED FOR
MASTER PLANNING AND CONSTRUCTION DESIGN PURPOSES
COMPUTER DISK FORM AND MYLAR FORM REQUIRE
STATED ITEMS A-G BELOW, IF APPLICABLE
1. COMPUTER DISK FORM: AUTOCAD VERSION 14, AUTOCAD
DRAWING (.DWG) FILES ON IBM FORMATTED 3-1/2" DISKETTES, COMPACT
DISK, IOMEGA 100 ZIP DISKS, E-MAIL, OR FILE TRANSFER PROTOCOL
2. MYLAR FORM
A. SCALE - 1" = 200'
B. NORTH ARROW
C. CONTOUR INTERVAL - 2' (EXCEPT IN SEVERE AREAS 30%+)
D. INDICATION OF ALL PROPERTY BOUNDARIES OR LIMITATIONS THAT
WILL RESTRICT GOLF COURSE LAYOUT OR DEVELOPMENT
E. INDICATION OF ALL EXISTING SITE FEATURES TO INCLUDE:
1. RIVERS
2. ROADS
3. STREAMS
4. CREEKS
5. FENCE LINES
6. TREE LINES
7. BUILDINGS
8. UNDERGROUND UTILITIES: SEWER - GAS - ELECTRIC -
TELEPHONE - WATER - ET CETERA
9. RIGHTS -OF -WAY
10. EASEMENTS
41,
LD-AF/cdc/52967mc -1- 37
11. ROCK OUTCROPPINGS
12. LAKES
F. ENVIRONMENTAL, HISTORICAL, AND ARCHAEOLOGICAL
JURISDICTIONAL AREAS (E.G., WETLANDS)
G. NO TITLE BLOCK
LD-AF/cdc/52967mc -2- 38
EXHIBIT 2
1�
,I eo°Id Palmerd �ea�
almer _ .,/
39
EXHIBIT B
SCHEDULE OF COMPENSATION
ARCHITECTURAL AND DESIGN FEES
The allocation of the architectural and design fees (the "Design Fees") is as follows:
PCDC: $850,000.00
Landscape architecture: $125,000.00
Agronomic Services: $ 25,000.00
Payment schedule set forth in the following schedule:
Schedule of Patents_
Date of Payment Amount of Payment
August 1, 2003 (execution of agreement) US $15000.00
Completion of Phase I (Sept. 30, 03) US $150,000.00
Complete grading plans (Oct 31, 03) US $200,000.00
Completion of Phase II (Dec 31, 03) US $200,000.00
Complete 50% Phase III (est. Apr 30, 04) US $15000.00
Complete 100% of Phase III (est. Aug 31, 04) US $150,000.00
All payments due and payable to PCDC shall be paid free of deductions such as banking charges.
Any sales, use or other taxes (other than income taxes) imposed upon PCDC in connection with the
Design Fees will be paid by Owner.
Owner acknowledges and agrees that all costs incurred by Owner in connection with the planning
and construction of Golf Course and its related facilities shall be for the account of Owner and
Owner shall be solely responsible therefore.
INTEREST
Any amount due and unpaid hereunder will bear interest at the rate of one and one-half percent (1-
1/2%) per month or at the maximum rate of permitted by law, whichever is less.
LD-AF/cdc/52967mc 40
EXHIBIT C
Sub Contractors
TB
Terry Buchen
Golf Agronomy International
Williamsburg, Virginia
Ron Gregory
Pinnacle Design Company
Palm Desert, California
4
Ali
119/015610-0065 41
410992.09 a07/17/03
T4tif 4 ZA
COUNCIL/RDA MEETING DATE: .July 22, 2003
Consideration of a (1) Resolution
Approving the Fiscal Year 2003-2004
La Quinta Redevelopment Agency Budget
And a (2) Resolution Determining the Planning
And Administration Expenses to be Funded
In Fiscal Year 2003-04
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Adopt a Resolution of the City Council approving the Fiscal Year 2003-2004 City of La
Quinta Redevelopment Agency Budget and determining the planning and administration
expenses to be funded in Fiscal Year 2003-04.
See City Council Staff Report
RESOLUTION NO. RA 2003-
A RESOLUTION OF THE LA QUINTA REDEVELOPMENT AGENCY
APPROVING A BUDGET FOR FISCAL YEAR 2003-2004
WHEREAS, each year the La Quinta Redevelopment Agency adopts a Budget for
Revenues and Expenditures for the upcoming Fiscal Year; and
WHEREAS, the La Quinta Redevelopment Agency desires to make provisions for
a level of services commensurate with the needs of the City; and
WHEREAS, the La Quinta Redevelopment Agency has reviewed said budget and
has had several public meetings to receive public input; and
WHEREAS, the La Quinta Redevelopment Agency has, after due deliberation and
consideration, made such amendments in the proposed budget as it considers
desirable; and
NOW, THEREFORE, BE IT RESOLVED by the La Quinta Redevelopment Agency
to adopt, as follows:
SECTION 1. The Fiscal Year 2003-2004 Budget which is on file with the La
Quinta Redevelopment Agency Secretary, is hereby approved.
SECTION 2. Continuing Appropriations which remain unspent and were
authorized by Council in Fiscal Year 2002-03, are approved in the Fiscal Year
2003/2004 Budget in an amount not to exceed $659,196 ( Attachment 1).
SECTION 3. Encumbrances for Fiscal Year 2002-03 for committed
appropriations are approved in the Fiscal Year 2003-04 budget in an amount not to
exceed $3,539,296 (Attachment 1).
SECTION 4. Budget adjustment procedures are approved as follows:
A. Additional appropriations and the transfer of cash or
unappropriated fund balance from one fund to another shall be
made only upon Redevelopment Agency approval.
B. Transfers of budgeted appropriations between divisions or capital
projects shall be made only upon Redevelopment Agency approval.
C. Transfers of budgeted appropriations between accounts within a
division or capital project may be made with the approval of the
Executive Director or his designee.
2
D. Prior year budget continuing Appropriations and Encumbrances for
unexpended capital project appropriations remaining from
uncompleted prior year capital projects shall be made with
Executive Director approval. These carry-over appropriations are
for prior year Redevelopment Agency approved capital projects and
shall not exceed the approved project budget.
SECTION 4. The Executive Director shall render a monthly report to the La
Quinta Redevelopment Agency Board on the status of Agency operations as it relates
to the approved budget and any amendments thereto.
PASSED, APPROVED AND ADOPTED this 22"d day of July, 2003, by the following
vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
TERRY HENDERSON, Chair
La Quinta Redevelopment Agency
ATTEST:
JUNE GREEK, Agency Secretary
La Quinta Redevelopment Agency
APPROVED AS TO FORM:
KATHY JENSON, Agency Counsel
La Quinta Redevelopment Agency
K
ATTACHMENT 1
La Quinta Redevelopment Agency
Fiscal Year 2002/03 Continuing Appropriations/Encumbrances -Note 1 08-Jul-03
As presented in Budget Documents
Department
Account
Description
Continuing
Appropriation
Encumbrances
Total
RDA
Redevelopment Agency
245-903-684-000
Apartment Rehabilitation
350,000
350,000
350,000
246-906-684-000
47th/Adams Project
247,296
247,296
247,296
246-906-685-000
48th/Adams Planning
480,000
480,000
480,000
405-902-692-000
Ranch Planning/ Development
100,000
100,000
100,000
405-902-692-000
Commercial Property Improvement Prog
12,000
12,000
12,000
245-903-683-676
Rental Program 2nd Trust Deeds
659,196
659,196
659,196
245-903-676-000
Low/Mod Village Apartments
2,350,000
2,350,000
2,350,000
Subtotal - Redevelopment Agency
659,196
3,539,296
4,198,492
4,198,492
Note 1 - The appropriations and encumbrances listed will be adjusted to reflect actual expenditures as of June 30, 2003
4
RESOLUTION NO. RA 2003 -
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF
THE CITY OF LA QUINTA DETERMINING THAT THE
PLANNING AND ADMINISTRATION EXPENSES TO BE
FUNDED IN FISCAL YEAR 2003-04 BY THE LOW AND
MODERATE INCOME HOUSING FUND ARE NECESSARY
FOR THE PRODUCTION, IMPROVEMENT AND/OR
PRESERVATION OF AFFORDABLE HOUSING FOR LOW
AND MODERATE INCOME HOUSEHOLDS
WHEREAS, the City Council of the City of La Quinta has heretofore adopted the
Redevelopment Plan for Project Area 1 on December 29, 1983 by Ordinance
No. 43; and
WHEREAS, the City Council of the City of La Quinta has heretofore adopted the
Redevelopment Plan for the Project Area 2 on May 16, 1989 by Ordinance No.
139 and
WHEREAS, pursuant to Section 33334.2(a) of the California Community
Redevelopment Law (Health and Safety Code Section 33000 et seq.) not less
than 20% of all taxes which are allocated to the Agency shall be set aside by
the Agency in a Low and Moderate Income Housing Fund and used by the
Agency for the purpose of increasing, improving and preserving the
community's supply of low- and moderate income -housing available at
affordable housing costs to people and families of low -and moderate income,
and
WHEREAS, pursuant to Section 33334.3 (d) of the California Community
Redevelopment Law (Health and Safety Code Section 33000 et seq.) it is the
intent of the California State Legislature that the amount of money spent for
planning and general administration from the Low and Moderate Income Housing
Fund not be disproportionate to the amount actually spent for the cost of
production;
NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City
of La Quinta as follows:
9
1. The Agency hereby determines that it is necessary to allocate $540,051 of
the estimated $48,235,550 2003-04 Affordable Housing Budget for the
planning and administrative expenses necessary for the production,
improvement, and or preservation of low -and moderate -income housing
during the 2003-04 fiscal year.
2. That the City Clerk shall certify to the passage and adoption of this
resolution and enter it into, the book of original resolutions.
PASSED, APPROVED and ADOPTED this 22nd day of July 2003, by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
TERRY HENDERSON, Chair
La Quinta Redevelopment Agency
ATTEST:
JUNE S. GREEK, Authority Secretary
La Quinta Redevelopment Agency
(Authority Seal)
APPROVED AS TO FORM:
M. KATHERINE JENSON, Agency Counsel
La Quinta Redevelopment Agency
LOIJ • /;
V /
FM OF IK�
AGENDA CATEGORY:
COUNCIL/RDA MEETING DATE: J u ly 2 2, 2 0 0 3
ITEM TITLE: Consideration of a Resolution Making
Findings Pursuant to Health and Safety Code Section
33445(a)and Authorizing the Expenditure of Funds for
the Avenida La Fonda Street Enhancement Project
RECOMMENDATION:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Q.
Adopt a Resolution of the La Quinta Redevelopment Agency making findings pursuant
to Health and Safety Code Section 33445(a), and authorizing the expenditure of funds
for the Avenida La Fonda Street Enhancement Project.
FISCAL IMPLICATIONS:
The project is included within the Fiscal Year 2002/2003 Capital Improvement
Program (CIP). The following represents the approved project budget:
Expense Category
City Administration
Engineering
Construction
Inspection/Testing/Survey
Less Prior Expenditures (As of May 12, 2003)
TOTA L AVA I LA BLE:
Budget Amount
$ 37,619.00
$ 75,238.00
$610,516.00
$ 56,428.00
($ 76,884.67)
$702,916.33
Contractor bids for this project were received on July 21, 2003 at 10:00 a.m. The
Public Works Director will provide a supplemental report identifying the low bidder and
low bid amount during the meeting. Based upon the engineer's estimated construction
costs, the following represents the probable construction budget:
S:\CityMgr\STAFF REPORTS ONLY\BS1 1 -RDA.doc
Activity
City Administration
Construction
Inspection/Testing/Survey
Design (Balance to Complete)
Contingency
Budget
Amount
$
37,619.00
$ 568,000.00
$
56,428.00
$
10, 000.00
$
30,869.33
TOTAL: $702,916.33
Upon completion of the final plans and specifications, the engineer's estimate for the
proposed City installed improvements increased from $393,383 to $568,000, an
amount of $174,617. If the Engineer's Estimate is accurate, an additional
appropriation may be necessary to fund the proposed improvements to be installed by
the developer. Staff will address this matter upon receipt of the contractor bids.
BACKGROUND AND OVERVIEW:
The City Council approved the Fiscal Year 2002/2003 CIP on July 161 2002. This
year's CIP includes the installation of the La Fonda Street Enhancements, Project No.
2002-05.
A prototypical theme has been established for the Village Commercial District. The
prototypical theme was used to construct the street amenities on Calle Estado. Last
year the City installed the prototypical street improvements on Avenida La Fonda,
which included underground electrical conduit for 19 future light poles.
On September 17, 2002, the City Council approved a Professional Services Agreement
(PSA) with RGA Landscape Architects to prepare the plans, specifications, and
engineer's estimate (PS&E) for installing the Avenida La Fonda Street Enhancements,
Project No. 2002-05.
The scope of the Consultant's work requires using the prototypical street design
concepts to prepare the hardscape, landscape, irrigation, and electrical plans necessary
to construct the Avenida La Fonda Street Enhancements. The improvements include
landscaping within the median island and parkways, retrofitting of the existing
temporary electrical system, placing decorative pavers on walkways, and installing
artistic water features at both entries to the street.
On November 5, 2003, the City Council approved two artistic water features for the
east and west entrances to Avenida La Fonda.
On May 20, 2003, the City Council approved the PS&E and authorized staff to
advertise the Avenida La Fonda Street Enhancements subject to the approval of the
finalized plans by the City Engineer.
S:\CityMgr\STAFF REPORTS ONLY\BS1 1 -RDA.doc 2
The project was advertised on Friday, June 29, 2003. Bids were opened on July 21,
2003. The Public Works Director will provide a supplemental report during the City
Council meeting summarizing the results of the bid opening, including the lowest
bidder and bid amount.
The following project schedule is anticipated:
Construction Award July 22, 2003
Construction August 1, 2003 — September 30, 2003
Acceptance of Improvements October 2003
Pursuant to Health and Safety Code Section 33445, the Agency Board must make
certain findings in order to use Agency Funding for this project. Those findings can
be made and are set forth in the attached Resolution.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Redevelopment Agency Board include:
1. Adopt a Resolution of the La Quinta Redevelopment Agency making findings
pursuant to Health and Safety Code Section 33445(a) and authorizing the
expenditure of funds for the Avenida La Fonda Street Enhancement Project; or
2. Do not approve a Resolution of the La Quinta Redevelopment Agency making
findings pursuant to Health and Safety Code Section 33445(a) and
authorizing the expenditure of funds for the Avenida La Fonda Street
Enhancement Project; or
3. Provide staff with alternative direction.
Respectfully submitted,
Timothy -
Public W
onasson, P.E.
Director/City Engineer
Approved for submission by:
Thomas P. Genovese, Executive Director
S:\CityMgr\STAFF REPORTS ONLY\BS1 1 -RDA.doc 3
RESOLUTION NO. RA 2003-
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF
THE CITY OF LA QUINTA MAKING CERTAIN FINDINGS
PURSUANT TO HEALTH AND SAFETY CODE SECTION
33445(a) AND AUTHORIZING THE EXPENDITURE OF
FUNDS FOR THE AVENIDA LA FONDA STREET
ENHANCEMENTS
WHEREAS, on the 6th day of May, 2003, the La Quinta City Council (the
"City Council") approved the 2003-2004 Economic Development Plan which includes
implementation policies supporting enhancement of the Village commercial area; and
WHEREAS, the Avenida La Fonda Street Enhancements will be located in La
Quinta Redevelopment Project Area No. 1 (the "Project Area") and will help to attain the
aforementioned objective; and
WHEREAS, the need for the improvement to La Fonda Street was
documented as one of the conditions of blight that justified the formation of the Project
Area, as cited in the October 1983 Report to the La Quinta City Council on the Proposed
Redevelopment Plan for La Quinta Redevelopment No. 1; and
WHEREAS, Section 518 of the Redevelopment Plan for La Quinta
Redevelopment Project No. 1, as amended by Amendment No. 1, authorizes the Agency to
undertake the funding of the Avenida La Fonda Street Enhancements; and
WHEREAS, the construction of the Avenida La Fonda Street Enhancements
would afford the Agency the opportunity to address some of the aforementioned conditions
of blight; and
WHEREAS, there is inadequate funding within the City's General Fund or
from other sources to construct the Avenida La Fonda Street Enhancements; and
WHEREAS, it would be in the best interest of the public to construct the
Avenida La Fonda Street Enhancements.
NOW, THEREFORE, BE IT RESOLVED, by the La Quinta Redevelopment
Agency as follows:
SECTION 1. The above recitations are true and correct and are adopted as
the findings of the Agency Board.
SECTION 2. The Agency Board hereby authorizes Agency funding to be
utilized for the Avenida La Fonda Street Enhancements.
119/015610-0048
414213.01 a07/11/03
4
Resolution RA 2003-
La Fonda Street Enhancements
Adopted: July 22, 2003
Page 2
SECTION 3. Pursuant to Health and Safety Code Section 33445(a), the
Agency finds and determines that:
A. The construction of the Avenida La Fonda Street Enhancements is of benefit to the
Project Area and to the immediate neighborhood in which the Avenida La Fonda
Street is located.
B. No other reasonable means of financing the improvements are available to the
community.
C. The Avenida La Fonda Street Enhancements will assist in the elimination of one or
more blighting conditions inside the Project Area, including need for improvement to
the infrastructure within the Village commercial area, and is consistent with the
Agency's implementation plan adopted pursuant to Section 33490.
PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta
Redevelopment Agency held on this 22th day of July, 2003, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
TERRY HENDERSON, Chair
La Quinta Redevelopment Agency
ATTEST:
JUNE S. GREEK, CMC, Agency Secretary
La Quinta Redevelopment Agency
119/015610-0048
414213.01 a07/11/03
5
Resolution RA 2003-
La Fonda Street Enhancements
Adopted: July 22, 2003
Page 3
APPROVED AS TO FORM:
M. KATHERINE JENSON, Agency Counsel
La Quinta Redevelopment Agency, California
119/015610-0048
414213.01 a07/11/03
0
COUNCIL/RDA MEETING DATE: J u ly 2 2, 2 0 0 3
ITEM TITLE: Consideration of an Amendment to
the La Quinta Redevelopment Project Area No. 2
Redevelopment Plan to Increase the Tax
Increment Revenue Limit and an Appropriation of
up to $50,000
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION: J
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Direct staff to proceed with the Project Area No. 2 Redevelopment Plan amendment to
increase the tax increment limit, and authorize an appropriation of up to $50,000.
FISCAL IMPLICATIONS:
Processing the Redevelopment Plan amendment will cost up to $50,000 in combined
redevelopment consultant, legal counsel, environmental consultant and public hearing
notice advertising expenses. The $50,000 will be allocated from the unexpended fund
balance in Project Area No. 2 debt service fund.
CHARTER CITY IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
In March 2003, the Agency Board reviewed an affordable housing strategy that
identified new housing initiatives that move the Agency towards achieving its
affordable housing production mandate. One recommendation contained in the
strategy entailed issuing new housing bonds (secured by Project Area No. 1 and
Project Area No. 2 Housing Fund revenue) to underwrite land acquisition and
affordable housing development activities. As the Agency's Bond Team (Rutan &
Tucker, Wedbush Morgan Securities, Stradling, Yocca, Carlson and Rauth, City Staff
and RSG) reviewed the capacity to issue additional housing bonds, they identified the
fact that the $400,000,000 limit on the amount of tax increment revenue the Agency
may receive from Project Area No. 2 precludes them from issuing new housing bonds.
In order to address this circumstance, the Bond Team recommends that the Project No.
2 Redevelopment Plan be amended to increase the tax increment limit.
In 1989 the La Quinta Redevelopment Agency adopted La Quinta Redevelopment
Project Area No. 2, which generally encompasses properties between Washington
Street and Jefferson Street, from Avenue 50 to the north City limits. The purpose for
this redevelopment project was to stimulate economic development through primarily
funding street and drainage improvements, and to assist the City of La Quinta with
achieving its housing mandates through funding affordable housing projects and
programs. When Project Area No. 2 was established, the California Community
Redevelopment Law required that a limit be included on the total amount of tax
increment revenue the Agency may receive from Project Area No. 2. Financial
projections were prepared that assumed average annual property value growth of 5%
during the 50-year term of the Redevelopment Plan. Based upon these projections, a
$400,000,000 tax increment revenue limit was established.
During the initial years annual property value growth in Project Area No. 2 was at or
below 5%. During the latter half of the 1990s and through this fiscal year, annual
growth has exceeded 10%, with some years' annual growth being in excess of 26%.
This has accelerated the amount of tax increment revenue the Agency has received
from Project Area No. 2 and conservative forecasts (3% annual property value growth
increases) indicate that the adjusted tax increment limit will be achieved by 2020, or
earlier if annual growth exceeds 3%.
Reaching the tax increment limit impacts Project Area No. 2 in three ways, as follows:
• The term of the Redevelopment Plan runs to May 2039. If the tax increment
limit is reached before then the Agency must cease all non -housing
redevelopment activities in Project Area No. 2, including repaying
outstanding General Fund loans.
• Project Area No. 2 has two outstanding bond debt obligations: the 1995
Housing Bonds of which it is scheduled to fund 21.3% of annual debt
service payments until Fiscal Year 2025-26, and the 1998 non -housing
bonds of which it is scheduled to fund 100% of annual debt service
payments until 2033. These bonds must be repaid and if the tax increment
limit is not increased, then the Agency must establish a sinking fund starting
in 2014 to retire these bonds. All non -housing revenue would be
encumbered for this purpose leaving no funds to repay City General Fund
loan obligations.
• The Agency cannot issue new housing bonds that pledge Project Area No. 2
housing fund revenue. This would severely impair the Agency's ability to
meet its affordable housing obligations. Project Area No. 2 has the
projected capacity to support an additional $ 57.0 million of housing bonds
during the remaining term of the Redevelopment Plan.
2
Amending the Redevelopment Plan would entail a 3 to 5 month process wherein Staff,
legal counsel and RSG would prepare various documents that support increasing the
tax increment limit to $1.5 billion. Staff is not recommending any other changes to
the Redevelopment Plan. The rationale for this increase is to have sufficient financial
capacity to pay existing non -housing bond and outstanding City General Fund loan
obligations, and to insure that there is sufficient financial capacity to achieve the
Agency's affordable housing mandates. Discussions would be held with the taxing
agencies that receive tax increment revenue from Project Area No. 2. The Agency has
fiscal mitigation agreements with all of the taxing agencies wherein a majority or all of
their revenue is paid to them. Given these existing agreements, the amendment would
have little or no impact on these agencies. Finally, a public hearing would be held to
consider the ordinance that amends the Redevelopment Plan. All property owners
within the 3,1 16-acre Project Area would receive a public hearing notice. Measures
would be taken to inform the public well in advance of the public hearing as to the
nature of the amendment and the fact that it would have no impact on their property
or their taxes.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency Board include:
1. Direct staff to proceed with the Project Area No. 2 Redevelopment Plan
amendment to increase the tax increment limit and authorize an
appropriation of up to $50,000; or
2. Do not proceed with the amendment or the appropriation; or
3. Provide staff with alternative direction.
Respectfully submitted,
JerrI HermakIC-6—mmunity Development Director
J Approved for submission by:
Thomas P. Genovese, Executive Director
3
�0i, �.
I
OF T�ti9
COUNCIL/RDA MEETING DATE: July 22, 2003
ITEM TITLE: A Joint Public Hearing Between the City
Council and Redevelopment Agency to Approve an
Agreement to Sell Real Property Located at 52-665 Avenida
Ramirez By and Between Christin Johnson and the La
Quinta Redevelopment Agency and Authorization for the
Executive Director to Execute the Necessary Documents
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Approve the Agreement to sell the property at 52-665 Avenida Ramirez by and
between Christin Johnson and the La Quinta Redevelopment Agency maintaining an
affordable housing unit in Project Area No. 1 for a purchase price of $130,000 and
authorize the Executive Director to execute the necessary documents to complete the
property sale.
FISCAL IMPLICATIONS:
The Agreement would result in the following fiscal impacts:
Resale Proceeds
From the purchase price of $130,000, the Agency will receive approximately $53,000
in cash proceeds from this transaction generated by the buyer's down payment of
$3,900, plus the $56,000 financed from the first trust deed less closing costs of
approximately 6,900. The Agency's remaining $70,100 financial investment will be
converted into a silent second trust deed in favor of the Agency.
Property Rehabilitation Costs
None. All property rehabilitation costs have been funded by rent revenue.
BACKGROUND AND OVERVIEW:
In August, 1995, the Agency acquired 50 single-family homes, as a result of the
bankruptcy of Coachella Valley Land, to protect the Agency's investment in the
71)
homes, to prevent a pending foreclosure action, and to maintain the units as very low-
income rental units. The Agency cost to acquire the 50 housing units averaged
$86,500 per unit.
On February 17, 1998, the Agency authorized the sale of up to two (2) units per year
and directed staff to sell the units first to qualified existing tenants, and second to
other eligible very low-income households. The proposed sale is the tenth (10t') unit
to be sold; eight (8) of these units were sold to existing tenants.
Property Resale
The sale transaction would be structured as other Agency affordable housing projects,
wherein the existing Agency -funded silent second trust deed would cover the
difference between the market sales price and an affordable first trust deed mortgage.
The proposed purchaser is not an existing tenant, however this property was a vacant
unit and the buyer qualifies in the very low-income category. If this sale is authorized,
the unit will be sold for the market value of $130,000, with the buyer funding a 3%
down payment and a private lender originating an $56,000 first trust deed mortgage
(the maximum loan the homebuyer can obtain). The Agency would convert $70,100
of its equity in the property into a silent second trust deed loan.
Prior to the sale, this unit will have been substantially rehabilitated and therefore, can
be counted toward the Agency's inclusionary housing requirement. A Summary Report
is attached (Attachment 1) as required by State Law.
FINDINGS AND ALTERNATIVES:
Alternatives available to the Redevelopment Agency include:
1. Approve the Agreement to sell the property at 52-665 Avenida Ramirez by and
between Christin Johnson and the La Quinta Redevelopment Agency
maintaining an affordable housing unit in Project Area No. 1 for a purchase price
of $130,000 and authorize the Executive Director to execute the necessary
documents to complete the property sale; or
2. Deny the request to sell this property and maintain it as a very low-income
rental unit; or
3. Provide staff with an alternative direction.
Respectfully submitted by:
y'4-lekman, Community Development Director
71.
2
Approved for submission by:
y+a.-►ate-o
Thomas P. Genovese, Executive Director
Attachment: 1. Summary Report
laquinta\lghp\rental housing\PH4 RDA.doc 3
SUMMARY REPORT
FOR THE PROPOSED SALE AGREEMENT
BETWEEN THE
LA QUINTA REDEVELOPMENT AGENCY
AND
CHRISTIN JOHNSON
July 22, 2003
INTRODUCTION
This document is the Summary Report ("Report") for the proposed sale between
the La Quinta Redevelopment Agency ("Agency") and Christin Johnson ("Buyer").
The purpose of the Sale Agreement ( "Agreement") is to facilitate the sale by the
Agency of a single-family dwelling to the Buyer.
This Report has been prepared pursuant to Section 33433 of the California Health
and Safety Code ("California Community Redevelopment Law") and presents the
following:
• A summary of the proposed transaction.
• The cost of the sale to the Agency.
• The estimated value of the interest to be conveyed, determined at the highest
and best uses permitted by the Agency's Redevelopment Plan.
• The estimated value to be conveyed, determined by the use and with the
conditions, covenants, and development costs required by the Agreement.
• An explanation of why the sale, pursuant to the Agreement, will assist in the
elimination of blight.
SUBJECT PROPERTY
The Subject Property ("Property") is a vacant 3-bedroom, 2-bath single-family
dwelling located at 52-665 Avenida Ramirez within La Quinta Redevelopment
Project Area No. 1 .
THE TRANSACTIONS PROVIDED FOR BY THE AGREEMENT
The Agreement will facilitate the sale of the Property to the Buyer, who will occupy
the dwelling. The sales price of $130,000, which is fair market value for the
property, will be funded through a combination of the Buyer's down payment of
$3,900, $56,000 financed through the first trust deed mortgage, and $70,100 of
the Agency's equity in the Property will be converted into a silent second trust
4
deed loan. This second trust deed will include covenants to insure that the
Property will remain affordable to a very low-income family for a minimum of 45
years.
The monies required to fund the Agency's second trust deed were expended in
August, 1995, when the Agency purchased this unit in order to secure its
investment in the unit through an Affordable Housing Agreement with Coachella
Valley Land. A portion of these purchase monies will be repaid to the Agency
through the Buyer's down payment and first trust deed mortgage; the remaining
funds will stay in place to fund the Agency's second trust deed mortgage and
closing cost contribution. The Agency will receive approximately $53,000 from
this transaction.
History of Property
This Property is currently a part of the Agency Rental Property Purchase Program.
In May, 1998, the Agency offered these properties first to the existing tenants for
purchase and secondly to other qualified very low-income households. This
property was vacated by the previous tenant and the Buyer subsequently expressed
an interest in purchasing the unit. Recently, the Buyer was approved by Total
Financial Group for a mortgage up to the amount of $56,000. The Buyer qualifies
as a very low-income household.
The Cost of the Sale to the Agency
The Agency will have a total of approximately $1 19,000 invested in its ownership
of the Property through its cost to purchase the unit, to remedy deferred
maintenance items which existed at the time of purchase, and to qualify the unit as
substantially rehabilitated. The sales contract with the Buyer provides for a
purchase price of $130,000. Under this proposed transaction, the Agency's
investment will be treated as follows:
Agency Purchase Price: $ 86,500
Total Cost to Qualify Unit as Substantially
Rehabilitated (funded from rent revenue): $ 32,500
Total Agency Investment: $1 19,000
Buyer Down Payment: $ 3,900
Buyer First Trust Deed Monies Paid to Agency: $ 56,000
Agency Affordable Housing Second
Trust Deed: $ 70,100
Total Purchase Price: $130,000
Unfunded Agency Investment: $ 0
74
Iaquinta\Ighp\rental housing\PH4 Summ Rpt.doc 1� 5
Estimated Value of the Interest to be Conveyed, Determined at the Highest and
Best Uses Permitted by the Agency's Redevelopment Plan
The Redevelopment Plan for La Quinta Redevelopment Project No. 1 provides that
the Property shall be used for low -density residential development. The subject
property has not yet been appraised, however, the real property appraisal provided
in conjunction with the sale of 53-275 Avenida Vallejo authorized by the Agency on
May 20, 2003 indicated a current fair market value of $130,000 for this property.
Estimated Value of the Interest to be Conveyed, Determined at the Use With the
Conditions, Covenants, and Development Costs Required by the Agreement
The Agreement provides that the Property will be sold at the current market value
of $130,000, which reflects the fair market value.
Explanation of Why the Sale of the Property Pursuant to the Agreement will Assist
in the Elimination of Blight
The Agreement provides for the sale of the Property and the recordation of
affordability covenants that will insure its continued affordability to a very low-
income household for 45 years. In conjunction with the sale, the unit will be
substantially rehabilitated with long-term capital improvements, thereby extending
the life of the unit and improving its appearance. Thus, the transaction will insure
the continued affordability of a substantially rehabilitated single-family dwelling to a
very low-income household.
6
laquinta\Ighp\rental housing\PH4 Summ Rpt.doc
ti
OFT9
COUNCIL/RDA MEETING DATE: July 22, 2003
ITEM TITLE: A Joint Public Hearing Between the City
Council and Redevelopment Agency to Approve an
Agreement to Sell Real Property Located at 53-275
Avenida Ramirez By and Between Graciela Cantu and the
La Quinta Redevelopment Agency and Authorize the
Executive Director to Execute the Necessary Documents
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING: cam..
Approve the Agreement to sell the property located at 53-275 Avenida Ramirez by
and between Graciela Cantu and the La Quinta Redevelopment Agency maintaining
an affordable housing unit in Project Area No. 1 for a purchase price of $130,000
and authorize the Executive Director to execute the necessary documents to
complete the property sale.
FISCAL IMPLICATIONS:
The Agreement would result in the following fiscal impacts:
Resale Proceeds
From the purchase price of $130,000, the Agency will receive approximately
$85,300 in cash proceeds from this transaction generated by the buyer's down
payment of $3,900, plus the $88,300 financed from the first trust deed less
closing costs of approximately $6,900. The Agency's remaining $40,300 financial
investment ($37,800 base second trust deed loan plus $2,500 in buyer closing
cost assistance) will be converted into a silent second trust deed in favor of the
Agency.
Property Rehabilitation Costs
None. All property rehabilitation costs have been funded by rent revenue.
7 6
BACKGROUND AND OVERVIEW:
In August, 1995, the Agency acquired 50 single-family homes, as a result of the
bankruptcy of Coachella Valley Land, to protect the Agency's investment in the
homes, to prevent a pending foreclosure action, and to maintain the units as very
low-income rental units. The Agency cost to acquire the 50 housing units averaged
$86,500 per unit.
On February 171 1998, the Agency authorized the sale of up to two (2) units per
year and directed staff to sell the units first to qualified existing tenants, and
second to other eligible very low-income households. Because many of the tenants
are now receiving work training as a requirement of their state and county
assistance, their economic situation is improving. The proposed sale is the ninth
(9`h) unit to be sold; eight (8) of these units were sold to existing tenants.
Property Resale
The sale transaction would be structured as other Agency affordable housing
projects, wherein the existing Agency -funded silent second trust deed would cover
the difference between the market sales price and an affordable first trust deed
mortgage. The proposed purchaser now qualifies in the low-income category. If
this sale is authorized, the unit will be sold for the market value of $130,000, with
the buyer funding a 3% down payment and a private lender originating an $88,300
first trust deed mortgage (the maximum loan the homebuyer can obtain). The
Agency would convert $40,300 of its equity in the property into a silent second
trust deed loan. This amount represents purchase assistance of $37,800 and
$2,500 in buyer closing cost assistance.
Prior to the sale, this unit will have been substantially rehabilitated and therefore,
can be counted toward the Agency's inclusionary housing requirement. A
Summary Report is attached (Attachment 1) as required by State Law.
FINDINGS AND ALTERNATIVES:
Alternatives available to the Redevelopment Agency include:
1. Approve the Agreement to sell the property located at 53-275 Avenida
Ramirez by and between Graciela Cantu and the La Quinta Redevelopment
Agency maintaining an affordable housing unit in Project Area No. 1 for a
purchase price of $130,000 and authorize the Executive Director to execute
the necessary documents to complete the property sale; or
2. Deny the request to sell this property and maintain it as a very low-income
rental unit; or
7 '/
2
3. Provide staff with an alternative direction.
Respectfully submitted by:
rman3Community Development Director
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachment: 1. Summary Report
78
laquinta\Ighp\rental housing\PH3 RDA.doc 3
SUMMARY REPORT
FOR THE PROPOSED SALE AGREEMENT
BETWEEN THE
LA QUINTA REDEVELOPMENT AGENCY
AND
GRACIELA CANTU
July 22, 2003
INTRODUCTION
This document is the Summary Report ("'Report") for the proposed sale between
the La Quinta Redevelopment Agency ("Agency") and Graciela Cantu ("Buyer").
The purpose of the Sale Agreement ( "Agreement") is to facilitate the sale by the
Agency of a single-family dwelling to the Buyer.
This Report has been prepared pursuant to Section 33433 of the California Health
and Safety Code ("California Community Redevelopment Law") and presents the
following:
• A summary of the proposed transaction.
• The cost of the sale to the Agency.
• The estimated value of the interest to be conveyed, determined at the highest
and best uses permitted by the Agency's Redevelopment Plan.
• The estimated value to be conveyed, determined by the use and with the
conditions, covenants, and development costs required by the Agreement.
• An explanation of why the sale, pursuant to the Agreement, will assist in the
elimination of blight.
SUBJECT PROPERTY
The Subject Property ("Property") is a 3-bedroom, 2-bath single-family dwelling
located at 53-275 Avenida Ramirez within La Quinta Redevelopment Project Area
No. 1 .
THE TRANSACTIONS PROVIDED FOR BY THE AGREEMENT
The Agreement will facilitate the sale of the Property to the Buyer, who will
continue to occupy the dwelling. The sales price of $130,000, which is fair market
value for the property, will be funded through a combination of the Buyer's down
payment of $3,900, $88,300 financed through the first trust deed mortgage, and
$40,300 of the Agency's equity in the Property will be converted into a silent
second trust deed loan. The second trust deed of $40,300 includes $2,500 of
buyer closing cost assistance. This second trust deed will include covenants to
insure that the Property will remain affordable to a low-income family for a
minimum of 45 years.
The monies required to fund the Agency's second trust deed were expended in
August, 1995, when the Agency purchased this unit in order to secure its
investment in the unit through an Affordable Housing Agreement with Coachella
Valley Land. A portion of these purchase monies will be repaid to the Agency
through the Buyer's down payment and first trust deed mortgage; the remaining
funds will stay in place to fund the Agency's second trust deed mortgage and
closing cost contribution. The Agency will receive approximately $85,300 from
this transaction.
History of Property
This Property is currently a part of the Agency Rental Property Purchase Program.
In May 1998, the Agency offered this property to the tenant for purchase and the
Buyer subsequently expressed an interest in purchasing the unit. Recently, the
Buyer, was approved by Full Spectrum Lending for a mortgage up to the amount of
$88,300. The Buyer is an existing tenant who now qualifies as a low-income
household.
The Cost of the Sale to the Agency
The Agency will have a total of approximately $1 19,000 invested in its ownership
of the Property through its cost to purchase the unit, to remedy deferred
maintenance items which existed at the time of purchase, and to qualify the unit as
substantially rehabilitated. The sales contract with the Buyer provides for a
purchase price of $130,000. Under this proposed transaction, the Agency's
investment will be treated as follows:
Agency Purchase Price: $ 86,500
Total Cost to Qualify Unit as Substantially
Rehabilitated (funded from rent revenue): $ 32,500
Total Agency Investment: $1 19,000
Buyer Down Payment: $ 3,900
Buyer First Trust Deed Monies Paid to Agency: $ 88,300
Agency Affordable Housing Second
Trust Deed: $ 37,800
Total Purchase Price: $130,000
* plus $2,500 in buyer closing cost assistance for a total Agency loan of $40,300
Unfunded Agency Investment: $ 0
0
laquinta\lghp\rental housingTH3 Summ Rpt.doc 2 5
Estimated Value of the Interest to be Conveyed, Determined at the Highest and
Best Uses Permitted by the Agency's Redevelopment Plan
The Redevelopment Plan for La Quinta Redevelopment Project No. 1 provides that
the Property shall be used for low -density residential development. The subject
property has not yet been appraised; however, the real property appraisal provided
in conjunction with the sale of 53-275 Avenida Vallejo authorized by the Agency on
May 20, 2003 indicated a current fair market value of $130,000 for this property.
Estimated Value of the Interest to be Conveyed, Determined at the Use With the
Conditions, Covenants, and Development Costs Required by the Agreement
The Agreement provides that the Property will be sold at the current market value
of $130,000, which reflects the fair market value.
Explanation of Why the Sale of the Property Pursuant to the Agreement will Assist
in the Elimination of Blight
The Agreement provides for the sale of the Property and the recordation of
affordability covenants that will insure its continued affordability to a low-income
household for 45 years. In conjunction with the sale, the unit will be substantially
rehabilitated with long term capital improvements, thereby extending the life of the
unit and improving its appearance. Thus, the transaction will insure the continued
affordability of a substantially rehabilitated single-family dwelling to a low-income
household.
1aquinta\1ghp\renta1 housing\PH3 Summ Rpt.doc 3 6