CC Resolution 2003-118 RESOLUTION NO. 2003-118
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LA QUINTA APPROVING A REVISED DISPOSITION AND
DEVELOPMENT AGREEMENT BETWEEN THE LA QUINTA
REDEVELOPMENT AGENCY AND CP DEVELOPMENT LA
QUINTA, LLC FOR THE PROPERTY LOCATED AT THE
SOUTHEAST CORNER OF WASHINGTON STREET AND
MILES AVENUE
WHEREAS, the La Quinta Redevelopment Agency ("Agency") is a public
body, corporate and politic, organized and existing under the California Community
Redevelopment Law (Health & Safety Code Section 33000 et seq;) ("CRL"); and
WHEREAS, pursuant to the CRL, the City Council of the City of La Quinta
("City" or "City Council", as applicable) approved and adopted the Redevelopment Plan
("Redevelopment Plan") for Project Area No. 2 ("Project Area"), on November 29,
1983, by Ordinance No. 43, and amended the Redevelopment Plan on December 20,
1994, by Ordinance No. 258; and
-'- ~WHEREAS, the Agency staff previously negotiated a Disposition and
Development Agreement ("Original Agreement") with Center Point Development, LLC,
a California limited liability company ("Original Developer"), pursuant to which the
Agency would convey to the Developer, either all at once ("Option A"), or in phases
("Option B"), certain real property located within the Project Area (the "Property") for
Seven Million Fifty-Four Thousand Seventy-Four Dollars ($7,054,074) for the Original
Developer's subsequent development thereon of a commercial project containing a
medical office/clinic, a boutique hotel, a mid-price suites hotel, a resort-style
condominium/casitas development, two sit-down restaurants, and two single-family
residential developments, with forty of the single-family homes restricted for sale to
moderate-income buyers at an affordable housing cost, all as more particularly
described in the Original Agreement (collectively, the "Project':); and
WHEREAS, the Original Agreement provided that Agency could reacquire
any undeveloped portion of the Property then owned by the Original Developer in the
event the Original Developer failed to commence construction of any particular phase
of the Project within certain specified time frames,, interrupted construction of a
particular phase of the Project for a specified period of time, or transferred a particular
phase of the Project in violation of the Original Agreement, all as more particularly
described in the Original Agreement; and
Resolution No. 2003-118
Disposition and Development Agreement
CP Development La Quinta, LLC
Adopted: December 2, 2003
Page 2
WHEREAS, in accordance with Health and Safety Code Section 33433
the Agency prepared a Summary Report to consider the Agency's proposed sale of the
Property as set forth in the Original Agreement, the Agency Board and the City
Council, on June 3, 2003, conducted a noticed joint public hearing with respect to the
Original Agreement, and the Agency Board and the City Council, in connection with
their respective approvals of the Original Agreement made certain findings and
determinations as set forth in City Council Resolution No. 2003-036 and La Quinta
Redevelopment Agency Resolution No. 2003-09; and
WHEREAS, prior to execution of the Original Agreement, the Original
Developer requested certain changes thereto, including (i) changing the developer
entity from the Original Developer to CP Development La Quinta, LLC, a California
limited liability company ("Proposed Developer"), (ii) revising the landscaping
obligations of the Proposed Developer to account for the possibility that the City does
not obtain certain landscaping grants, (iii) revising the Site Plan attached to the Original
Agreement and the individual parcel prices set forth therein to reflect the landscaping
changes and certain other changes necessitated by the proposed installation of a well-
site for the Project, which changes resulted in an increase in the purchase price of
Fifty-Five Thousand Five Hundred Sixty Dollars ($55,560), and (iv) revising the
insurance requirements for the Proposed Developer; and
WHEREAS, a revised Summary Report for the revised Disposition and
Development Agreement (the "Revised Agreement") has been prepared and the joint
public hearing has been duly noticed and conducted in accordance with applicable
requirements of law; and
WHEREAS, the City Council and the Redevelopment Agency have
considered all the information and evidence set forth in the revised Summary Report
presented by the City/Agency staff and presented by persons wishing to appear and be
heard concerning the impact of the Revised Agreement on the Project Area and the
City of La Quinta as a whole; and
WHEREAS, the Revised Agreement is in accordance with the
Redevelopment Plan and is of benefit to the Project Area and the City of La Quinta;
and
WHEREAS, the City Council hereby determines that the Agency's sale of
the Property pursuant to the Revised Agreement is necessary to effectuate the
purposes of the Redevelopment Plan;
Resolution No. 2003-118
Disposition end Development Agreement
CP Development La Quinte, LLC
Adopted: December 2, 2003
Page 3
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF LA QUINTA AS FOLLOWS:
1. That the above recitals are true and correct and incorporated herein.
2. That the City Council of the City of La Quinta hereby resolves as follows:
A. The Revised Agreement effectuates the purposes of the Community
Redevelopment Law (Health & Safety Code Section 33000 et seq.) and
of the Redevelopment Plan and is in the best intereSts of the citizens of
the City of La Quinta.
B. The Agency's sale of the Property will eliminate blight and is consistent
with the Agency's Five-Year Implementation Plan, based on the findings
and conclusions of the revised Summary Report, which is incorporated
herein.
C. The Agency's sale of the Property will eliminate blight in that it will
facilitate the development of affordable housing.
D. The consideration the Proposed Developer will pay for the Property is not
less than the fair market value of the Property at its highest and best use
in accordance with the Redevelopment Plan, based on the findings and
conclusions of the revised Summary Report.
3. The Revised Agreement, a copy of which is on file with the Agency Secretary,
is hereby approved. The City Council consents to the Acjency's authorization
and direction to its Executive Director and Agency Counsel to make final
modifications to the Revised Agreement that are consistent with the substantive
terms of the Revised Agreement approved hereby, and to thereafter sign the
Revised Agreement on behalf of the Agency.
4. The City Council consents to the Agency's authorization and direction to its
Executive Director to (i) sign such other and further documents, including but
not limited to subordination agreements and escrow instructions that require the
Agency's signature, and (ii) take such other and further actions, as may be
necessary and proper to carry out the terms of the Revised Agreement.
Resolution No. 2003-118
Dispo.ition end Development Agreement
CP Development La Quinte, LLC
Adopted: December 2, 2003
Page 4
PASSED, APPROVED, and ADOPTED at a regular meeting of the City
Council of the City of La Quinta held this 2nd day of December, 2003, by the
following vote:
AYES: Council Members Henderson, Osborne, Perkins, Sniff, Mayor Adolph
NOES: None
ABSENT: None
ABSTAIN: None ~//~ . '
DON~ ~ADOLP~
City of La Quinta, California
ATTEST: "1
JUNE-8~. GREEK, CMC, C,'-~7-Clerk
City of La Quinta, California
(City Seal)
APPROVED AS TO FORM:
I~1. K/ATHERIIUE JENSON,/~ty Attorn'~
City of La. Quinta, Califo~ia