2003 10 07 RDA Minutes LA QUINTA REDEVELOPMENT AGENCY
MINUTES
OCTOBER 7, 2003
A regular meeting of the La Quinta Redevelopment Agency was called to
order by Chairperson Henderson.
PRESENT: Board Members Adolph, Osborne, Perkins, Sniff, Chairperson
Henderson
ABSENT: None
PUBLIC COMMENT - None
CLOSED SESSION
1. Conference with Agency's real property negotiator, Jerry Herman,
pursuant to Government Code Section 54956.8 concerning potential
terms and conditions of acquisition and/or disposition of real property
located at 78-990 Miles Avenue. Property Owner/Negotiator: Sheila
Weldon.
2. Conference with Agency's real property negotiator, Mark Weiss,
pursuant to Government Code Section 54956.8 concerning potential
terms and conditions of acquisition and/or disposition of a portion of
525+ acres located at the southwest corner of Avenue 52 and
Jefferson Street. Property Owner/Negotiator: Hope Desert Classic.
3. Conference with Agency's real property negotiator, Mark Weiss,
pursuant to Government Code Section 54956.8 concerning potential
terms and conditions of acquisition and/or disposition of a portion of
525± acres located at the southwest corner of Avenue 52 and
Jefferson Street. Property Owner/Negotiator: International Golf
Museum.
4. Conference with Agency's real property negotiator, Mark Weiss,
pursuant to Government Code Section 54956.8 concerning potential
terms and Conditions of acquisition and/or disposition of real property
located west of the All American Canal adjacent to the Santa Rosa
Mountains. Property Owner/Negotiator: Larry Lichliter, KSL.
Redevelopment Agency recessed to Closed Session to and until the hour of
,__ 3:00 p'.m.
Redevelopment Agency Minutes 2 October 7, 2003
3:00 P.M.
STUDY SESSION
1. DISCUSSION REGARDING CONCEPTUAL GRADING AND DRAINAGE
PLAN AND PROJECT ENTRY CONCEPT PLANS FOR SILVERROCK
RANCH.
Assistant Executive Director Weiss presented the staff report.
Gil Martinez, of GMA International, indicated Pace Engineering has
completed the water management plan and will be submitting it to
staff in a few days. The consultant team has tentatively scheduled
meetings with CVWD to talk about edge treatments and canal
crossings and to receive some type of certification on the report. In
reviewing the conceptual grading plan, he stated the objective
elevation for the main hotel pad is 28 feet, with the canal elevation of
approximately 20 feet being used as a baseline.
Board Member Sniff asked about the distance between the main hotel
pad and the mountain. He also noted there are multiple hotel sites.
Mr. Martinez stated the distance is approximately 500 feet. He went
on to say the clubhouse pad will also be at approximately 28 feet. He
then reviewed three alternatives for the Avenue 52 entry, with three
options for Alternative /fA. He noted all of the scenarios have water,
which will be used for irrigation uses as well as aesthetics. He added
the existing retention basin can possibly be moved to this location,
doubled in size, and made to look like a water feature.
In response to Board Member Osborne, Mr. Martinez confirmed the
conceptual grading plan will be a starting point for Palmer Course
Design to uSe in developing their own grading plan.
In response to Board Member Adolph, Mr. Weiss stated the City
should receive a copy of the grading plans along with three-
dimensional elevations, which he will ask if they can provide on a
picture graph.
Mr. Martinez noted the curb style will need to be discussed at some
point, and suggested the possibility of using 4-inch, rolled curbs to
provide a more rural look. He then used overlays to show the possible
Redevelopment Agency Minutes 3 October 7, 2003
use of statues in the entry area, and a textured roadway to provide
~ ' the feel of going over a bridge.
Board Member Adolph suggested ending the pedestrian walkway at
the curb in the oval design for Alternative #A, and asked if the intent
is to pursue divided roadways inside the project.
Mr. Martinez replied 'the roads will probably not be divided past the
entry zones. In reviewing entry Alternative #B, he noted the road is
closer to the golfers, which may make it the weakest of the concepts.
He then reviewed Alternative #C, a straight-in entry with a small
roundabout before the gate, and referenced possible monument sign
locations.
Board Member Adolph noted the intersection will be signalized, and
the monument signs should be located so as not to be blocked by
traffic signal poles.
Mr. Martinez reviewed a potential spectator drop off area, and stated
they will be discussing it with Palmer Course Design to see how' it
could fit into the routing plan. He also advised of the need to develop
.-- a boundary for the project limits of the perimeter landscaping.
Chairperson Henderson noted it may be possible to eliminate
Alternative #B.
Board Member Perkins stated he envisioned major rock formations in
the entry areas.
Board Member Osborne asked if Board Member Sniff's entry sketch
had been incorporated into any of the alternatives.
Mr. Martinez noted his sketch was for the Jefferson Street entry but
the roundabout movements were incorporated into the Avenue 52
entry concepts. He felt the sketch would fit in with Alternative #C.
Board Member Osborne stated he likes Alternative #C, and noted it
utilizes the least amount of land.
Board Member Sniff stated his drawing had a significant emphasis on
multiple things - a sense of mountains, palm trees, and a multi-level
entrance way with a sense of latitude and openness.
Redevelopment Agency Minutes 4 October 7, 2003
In response to Chairperson Henderson, Mr. Martinez confirmed he
understood Board Member Sniff's sketch was suggested for Jefferson
Street.
Board Member Sniff noted although the Avenue 52 entrance was to
be the lesser of the two entrances, it was intended they be of a
compatible design.
Mr. Martinez noted Alternative #C has a roundabout past the entry
with waterfalls on each side, and is similar to Board Member Sniff's
sketch. He stated they are looking more at the structural part of the
entry at this time, and will get more into the character of the design
later on.
Board Member Adolph stated he likes Alternative #A, and feels any of
the options can be massaged to work. In looking at the lushness of
the entry concept, he questioned how 50% of it would not be
irrigated.
Mr. Martinez explained the percentage includes pavement and the lake
area.
Board Member Adolph stated he's not totally in favor of having a
roundabout because of the safety factor and the amount of land they
consume, except for an elongated roundabout. He agrees with having
an entry that ties the entrance and mountains together, and voiced
concern about the cost of bridges.
Board Member Perkins stated he doesn't like Alternative #B very much
but it does alleviate a traffic problem. He likes the option with bridges
but agrees with looking at the cost factor. He voiced concern that a
roundabout could be a traffic problem during tournaments if someone
decides to use it to make a u-turn. He feels the entry should have
large boulders to go along with the project name, and stated he won't
support any of the concepts if they utilize stamped concrete because
it looks too commercial.
In response to Chairperson Henderson, Mr. Martinez confirmed
Alternative #C consumes the least amount of real estate. He stated
Palmer Course Design needs to know which entry alternative the
Agency supports in order to finalize their grading plans.
Chairperson Henderson stated she supports any of the Alternative #A
options but feels it's important that the selected design include
Redevelopment Agency Minutes 5 October 7, 2003
boulders. She noted from the beginning the Agency has used words
like "important, bold, critical, front door, and needs to make a
statement" in reference to this project. She feels it's important to
stay on line with the project, and if that includes a bridge that is
somewhat over the budget, it should be done because that is all part
of what this project is about. She feels the oval roundabout concept
is close to Board Member Sniff's sketch.
Board Member Osborne noted Alternative #C separates the vehicles
from the golfers. He asked if Alternative #A can be revised to reduce
the amount of land used, as well as the visual and noise impact of
vehicles on the golf course.
Mr. Martinez stated Palmer Course Design will create some berming
and protection at the tee boxes and greens, and the waterfalls will
create "white noise." At this point, Palmer Course Design needs to
know how much room they have for the golf course.
Chairperson Henderson noted there appears to be a consensus for
Alternative #A
--- Board Member Sniff commented that the roundabout in his sketch was
a minor component of his proposal.
Chairperson Henderson stated she feels that option is still open for
Jefferson Street, and that the two entries can be tied together by
virtue of the other elements involved.
The Redevelopment Agency recessed to and until 7:00 p.m.
7:00 P.M.
PUBLIC COMMENT - None
CONFIRMATION OF AGENDA - Confirmed
Redevelopment Agency Minutes 6 October 7, 2003
APPROVAL OF MINUTES
MOTION - It was moved by Board Members Sniff/Adolph to approve the
Redevelopment Agency Minutes of September 16, 2003 as submitted.
Motion carried unanimously.
CONSENT CALENDAR
1. APPROVAL OF DEMAND REGISTER DATED OCTOBER 7, 2003.
MOTION - It was moved by Board Members Adolph/Perkins to
approve the Consent Calendar as recommended. Motion carried
unanimously.
BUSINESS SESSION
1. CONSIDERATION OF REVISED BUDGET AND PHASING PLAN AND
APPROPRIATION OF FUNDS FOR DEVELOPMENT OF SILVERROCK
RANCH.
Assistant Executive Director Weiss and Consultant Frank Spevacek
presented the staff report.
In response to Board Member Sniff, Mr. Spevacek stated there will be
approximately $3.5 million remaining in tax exempt funds after the
proposed appropriation. Approximately $18 million will be needed for
the second golf course and final roadway improvements, and for that
the Agency will need to look at a combination of land sales designated
for private purposes and sale of additional bonds if necessary.
In response to Board Member Osborne, Mr. Spevacek stated what is
currently proposed is for 50% of the construction costs for the
permanent clubhouse to be paid with tax exempt monies and 50%
with taxable funds. Under IRS regulations, the Agency can use up to
10% of tax exempt bond proceeds for a private purpose, which is $6
million to $8 million. He stated $8 million is budgeted to construct the
clubhouse and 9664,000 is budgeted for design costs.
Board Member Adolph asked when the Agency can anticipate getting
some of these monies back.
Redevelopment Agency Minutes 7 October 7, 2003
Mr. Spevacek stated since debt service will not have to be paid from
the operational revenues for the first golf course, it is projected that
the City will generate approximately $700,000 annually, after
expenses. This will come from the green fees for the first golf course
at a $45 green fee for residents and $100 for non-residents. There is
also potential income from land sales if the City should elect to sell
land instead of leasing it for the hotel, retail, and casitas uses.
Additionally, the hotel and casitas units are expected to generate $4
million to $5 million annually in revenue at build-out, which is
estimated to be about a 5 to 8-year window. He stated the project
will receive sales tax revenue from the retail space. He noted the City
is. able to do this project because it is investing tax increment revenue
that is not required for capital improvements nor other economic
development activities. The goal is to encumber the Agency, which
can pay off the investment over the next 30 years, to generate a
revenue source for the General Fund. He indicated on one hand the
City is making a massive investment and on the other hand the City
has a unique and historic moment to be able to-get the tax increment
revenue and invest it in something beyond the normal capital
improvement program.
In response to Chairperson Henderson, Mr. Spevacek confirmed the
tax increment money would go to the County if the Agency did not
incur debt to capture it. He added the bonds sold to date are based
on actual revenue received and not projected revenue.
Board Member Adolph stated he knows of a developer who is
interested in the casitas part of the project. He asked if anything is
being done to nurture this type of interest, and how long before
revenue is expected to start being received.
Mr. Spevacek indicated revenue should start coming in during FY
2005/2006 if the golf course opens in 2005.
Board Member Sniff commented that he is not very comfortable
talking about spending a lot of money with very little sense of
certainty. He noted this is a significant additional expenditure of
funds, and asked how much financial tolerance does the City have
should there be a financial collapse.
Mr. Spevacek stated the expectation is to break ground on the golf
course in January 2004, complete it within 12-18 months, and open it
between January and June 2005. Marketing of the hotel, retail, and
casitas properties will start next year. He stated the many inquiries
Redevelopment Agency Minutes 8 October 7, 2003
into the project are waiting to see what the final design is for the
Palmer Course, as well as the final aspects of the master planning
effort. The City has some control of its destiny as far as getting the
first golf course built, and the sites prepared for development. As for
bond security, they are secured by the tax increment that is in
Redevelopment Project Area No. 1, and the taxable bond issue as
well. The tax exempt bonds that have been issued for the project, are
insured, and if the payments cannot be made the bond insurance
companies make the payments. The more the project materializes and
something tangible is seen, the City is in a better position to decide
who it wants to have here. He stated it's trying to balance on one
hand getting things going to get a faster return on our investment but
not "court" ourselves too soon. Once the course is built and the pads
are in place, the Agency will have developable property to sit on,
market, or sell right away. This is a major investment but he feels he
can safely say revenue will be coming in from the golf course, and the
Agency will have DDA proposals to consider within the next five
years. He noted when land values dropped in the early 1990s, the
Agency withstood the problems at that time without having to default
on its bonds and, in this case, would still have a good real estate
asset. He is optimistic but is also not basing this on "blue sky"
projections.
Executive Director Genovese asked Mr. Spevacek to expound briefly
on the project's consistency with the Economic Development Plan and
the market analysis which was done before starting this endeavor.
Mr. Spevacek stated while considering these options over the last six
years, staff has talked to hoteliers who wanted to know what golf
packages could be offered, and the City did not have any. He noted
the combination of a market study done in 1999, a market analysis
completed again this year, and a third study on this particular golf
proposal last year, all indicate a demand for golf at this site and
additional hotel and resort sites, based on tourist demand, population
growth in Southern California, and in "baby boomers" looking for
resort options for retirement.
MOTION - It was moved by Board Members Osborne/Perkins to
approve constructing certain Phase lB and Phase 2 on- and off-site
infrastructure improvements, the village lake and the permanent
clubhouse as part of the Phase I golf course improvements, and
appropriate 925,444,178 in Series 2003 Taxable Bond proceeds.
Redevelopment Agency Minutes 9 October 7, 2003
Board Member Adolph stated he feels it is important to be concerned
when committing the City to this much money.
Board Member Sniff commented on the need to be fully cognizant of
the risks involved, and urged a sense of caution. He stated this
basically exhausts our funds, and additional funds will have to be
sought to complete the project without reasonable certainty as to
when it will start developing significant revenue.
Chairperson Henderson noted this does not affect the City's General
Fund Reserves, and that the Agency would not have the $25 million
had it not authorized a bond sale for this particular use.
Board Member Sniff stated he was referencing the bond funds set
aside for this particular project and not the General Fund.
In response to Board Member Sniff, Mr. Spevacek stated with this
appropriation, the Agency will have $3.5 million of what has been
allocated to this project.
Motion carried unanimously.
2. CONSIDERATION OF INTERVIEW SCHEDULE FOR BUILDING
ARCHITECTURAL SERVICES FOR SILVERROCK RANCH.
Assistant Executive Director Weiss presented the staff report.
After a brief discussion, the Agency concurred to schedule a special
meeting on October 16, 2003 at 10:00 a.m. to interview the
architectural firms, subject to the firms' availability on that date.
No formal action was taken.
3. CONSIDERATION OF A RESOLUTION OF THE REDEVELOPMENT
AGENCY MAKING CERTAIN FINDINGS PURSUANT TO HEALTH AND
SAFETY CODE SECTION 33445(a) AND AUTHORIZING THE
EXPENDITURE OF FUNDS TO PURCHASE REAL PROPERTY LOCATED
AT THE SOUTHEAST CORNER OF WESTWARD HO DRIVE AND DUNE
PALMS ROAD AND MAKING WELL SITE IMPROVEMENT RELATED TO
,~. __ COACHELLA VALLEY WATER DISTRICT WELL SITE REQUIREMENTS
PERTAINING TO THE DEVELOPMENT OF SILVERROCK RANCH.
Redevelopment Agency Minutes 10 October 7, 2003
Board Member Osborne abstained from participating on this item due
to a potential conflict of interest and left the dais.
There were no changes to the staff report as submitted and on file in
the City Clerk's Office.
RESOLUTION NO. RA 2003-17
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF
LA QUINTA, CALIFORNIA, APPROVING THE PURCHASE AND
IMPROVEMENT OF CERTAIN PROPERTY TO BE USED AS A
COACHELLA VALLEY WATER DISTRICT WELL SITE.
It was moved by Board Members Sniff/Adolph to adopt Resolution No.
RA 2003-17 as submitted. Motion carried with Board Member
Osborne ABSENT.
CHAIR AND BOARD MEMBERS' ITEMS - None
PUBLIC HEARINGS - None
The Redevelopment Agency recessed to Closed Session as delineated on
Page 1.
The Redevelopment Agency meeting reconvened with no decisions being
made in Closed Session which require reporting pursuant to Section 54957.1
of the Government Code (Brown Act).
ADJOURNMENT
There being no further business the meeting was adjourned.
Respectfully submitted,
JUNE S. GREEK, Secretary
City of La Quinta, California