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2004 01 20 RDA6z# 4 4496& Redevelopment Agency Agendas are Available on the City's Web Page @ www.la-quinta.org REDEVELOPMENT AGENCY ADDENDUM TO THE AGENDA CITY COUNCIL CHAMBERS 78-495 Calle Tampico La Quinta, California 92253 Regular Meeting Tuesday, January 20, 2004 - 2:00 P.M. CONSENT CALENDAR 6. APPROVAL OF AMENDMENT TO AGREEMENT BY AND BETWEEN COACHELLA VALLEY RECREATION AND PARK DISTRICT AND THE LA QUINTA REDEVELOPMENT AGENCY PERTAINING TO THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT AREA NO. 2. ADJOURNMENT Adjourn to a regularly scheduled meeting of the Redevelopment Agency to be held on February 3, 2004 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, June S. Greek, City Clerk of the City of La Quinta, do hereby declare that the foregoing Addendum to the agenda for the La Quinta Redevelopment Agency meeting of Tuesday, January 20, 2004, was posted on the outside entry to the Council Chamber, 78-495 Calle Tampico and on the bulletin board at the La Quinta Chamber of Commerce and at Stater Bros. 78-630 Highway 111, on Friday, January 16, 2004. DATED: January 16, 2004 9�� --'&' �' JUNE S. GREEK, CIVIC, City Clerk City of La Quinta, California Redevelopment Agency Agenda 1 v j 494 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, January 20, 2004 - 2:00 P.M. Beginning Resolution No. RA 2004-001 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 - NONE 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. RECONVENE AT 3:00 P.M. Redevelopment Agency Agenda 1 January 20, 2004 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 JANUARY 6, 2004 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 JANUARY 20, 2004. 2. TRANSMITTAL OF THE TREASURER'S REPORT DATED NOVEMBER 30, 2003. 3. TRANSMITTAL OF REVENUE AND EXPENDITURES REPORT DATED NOVEMBER 30, 2003 AND INVESTMENT SUMMARY REPORT FOR THE QUARTER ENDING DECEMBER 31, 2003. 4. APPROVAL OF AWARD OF CONTRACT TO CONSTRUCT THE SILVERROCK RANCH MASS GRADING IMPROVEMENTS, PROJECT NO. 2002-07B. 5. APPROVAL OF A FIVE-YEAR CONTRACT WITH LA QUINTA PALMS REALTY FOR PROPERTY MANAGEMENT SERVICES RELATED TO THE LA QUINTA RENTAL HOUSING PROGRAM. Redevelopment Agency Agenda 2 January 20, 2004 3 BUSINESS SESSION 1. CONSIDERATION OF 1) ADOPTION OF A RESOLUTION APPROVING A REPORT TO THE CITY COUNCIL AND 2) AUTHORIZATION TO TRANSMIT THE TEXT OF THE AMENDMENT TO THE REDEVELOPMENT PLAN FOR LA QUINTA REDEVELOPMENT PROJECT AREA NO. 2 AND THE REPORT TO THE CITY COUNCIL OF THE CITY OF LA QUINTA. A. RESOLUTION ACTION B. MINUTE ORDER ACTION 2. CONSIDERATION OF AN AGREEMENT FOR PURCHASE AND SALE BETWEEN THE REDEVELOPMENT AGENCY AND THE HAMMER FAMILY TRUST, SHIRLEY HAMMER AND JOE HAMMER, FOR PROPERTY LOCATED AT THE NORTHWEST CORNER OF AVENUE 48 AND DUNE PALMS ROAD (APN: 649-030-034), SUBJECT TO THE COMPLETION OF ENVIRONMENTAL DOCUMENTATION AS REQUIRED BY THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). A. MINUTE ORDER ACTION STUDY SESSION - NONE CHAIR AND BOARD MEMBERS' ITEMS - NONE PUBLIC HEARINGS 1. A JOINT PUBLIC HEARING WITH THE LA QUINTA CITY COUNCIL TO CONSIDER ADOPTION OF A RESOLUTION CERTIFYING A NEGATIVE DECLARATION OF ENVIRONMENTAL IMPACT FOR ENVIRONMENTAL ASSESSMENT 2003-494 ON THE PROPOSED REDEVELOPMENT PLAN AMENDMENTS AND ADOPTION OF AN ORDINANCE AMENDING THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT AREA NO. 2 TO INCREASE THE CUMULATIVE TAX INCREMENT REVENUE LIMIT FROM $400,000,000 TO $1,500,000,000.' A. RESOLUTION ACTION B. TAKE UP ORDINANCE BY TITLE AND NUMBER ONLY AND WAIVE FURTHER READING C. INTRODUCE ORDINANCE ON FIRST READING Redevelopment Agency Agenda 3 January 20, 2004 ADJOURNMENT Adjourn to a regularly scheduled meeting of the Redevelopment Agency to be held on February 3, 2004, 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, June S. Greek, City Clerk of the City of La Quinta, do hereby declare that the foregoing agenda for the La Quinta Redevelopment Agency meeting of Tuesday, January 20, 2004, was posted on the outside entry to the Council Chamber, 78-495 Calle Tampico and on the bulletin board at the La Quinta Chamber of Commerce and at Stater Bros. 78-630 Highway 111, on Friday, January 16, 2004. DATED: January 16, 2004 JUNE S. GREEK, CIVIC, City Clerk City of La Quinta, California Redevelopment Agency Agenda 4 January 20, 2004 C COUNCIL/RDA MEETING DATE: JANUARY 20, 2004 ITEM TITLE: Demand Register Dated January 20, 2004 RECOMMENDATION: It is recommended the Redevelopment Agency Board: AGENDA CATEGORY: BUSINESS SESSION CONSENT CALENDAR STUDY SESSION PUBLIC HEARING Receive and File the Demand Register Dated January 20, 2004 of which $319,405.36 represents Redevelopment Agency Expenditures. PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA L COUNCIL/RDA MEETING DATE: ,January 20, 2004 ITEM TITLE: Transmittal of Treasurer's Report as of November 30, 2003 RECOMMENDATION: It is recommended the Redevelopment Agency Board: Receive and file. AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: PLEASE SEE RELATED BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA COUNCIL/RDA MEETING DATE: January 20, 2004 Transmittal of Revenue and Expenditure Report for November 30, 2003 and Investment Summary Report for the Quarter Ending December 31, 2003 RECOMMENDATION: Receive and File BACKGROUND AND OVERVIEW: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: 3 STUDY SESSION: PUBLIC HEARING: Transmittal of the November 30, 2003 Statement of Revenue and Expenditures and Investment Summary Report for the Quarter Ending December 31, 2003 for the La Quinta Redevelopment Agency. Respectfully submitted, John M. Falconer; Finance Director ro ed for submissio Thomas P. Genovese, Executive Director Attachments 1. Revenue and Expenditures Report, November 30, 2003 2. Investment Summary Report for the Quarter Ending December 31, 2003 ATTACHMENT 1 LA QUINTA REDEVELOPMENT AGENCY REVENUE SUMMARY PROJECT AREA NO, 1: DEBT SERVICE FUND: Tax Inurement Allocated Interest Non Allocated Interest Interst , County Loan Interest Advance Proceeds Transfers In TOTAL DEBT SERVICE CAPITAL IMPROVEMENT FUND - NON-TAXABLE PooledCash Allocated Interest Non Allocated Interest Litigation Settlement Revenue Loan Proceeds Rental Income Transfers In TOTAL CAPITAL IMPROVEMENT CAPITAL IMPROVEMENT FUND - TAXABLE Pooled! Cash Allocated Interest Non Allocated Interest Litigation Settlement Revenue Bond proceeds Rental 'income Transfers In TOTAL CAPITAL IMPROVEMENT LOW/MODERATE TAX FUND: Tax Inurement Allocated Interest Non Allocated Interest Miscellaneous revenue Non Allocated Interest LQRP-Rent Revenue Home Sales Proceeds Sale of Land Sewer Subsidy Reimbursements Rehabilitation Loan Repayments 2nd Trust Deed Repayment Transfer In TOTAL LOWIMOD TAX LOW/MODERATE BOND FUND: Allocated Interest Home Sale Proceeds Non Allocated Interest Transfer In TOTAL LOW/MOD BOND REMAINING BUDGET RECEIVED BUDGET 20,744,336.00 0.05 20,744,335.95 66,000.00 33,346.76 32,653.24 0.00 351.32 (351.32) 0.00 0.00 0.00 967,182.00 0.00 967,182.00 1,731,455.00 1,157,685.83 573,769.17 23,508,973.00 1,191,383.96 22,317,589.04 0.00 24,850.77 (24,850.77) 437,100.00 116,364.63 320,735.37 0.00 0.00 0.00 0.00 0.00 0.00 4,530.00 5,662.00 (1,132.00) 0.00 0.00 0.00 441,630.00 146,877.40 294,752.60 0.00 (26.55) 26.55 0.00 20,282.86 (20,282.86) 0.00 0.00 0.00 26,400,000.00 26,400,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 26,400,000.00 26,420,256.31 (20,256.31) 5,186,084.00 0.04 5,186,083.96 4,400.00 3,398.40 1,001.60 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 341,000.00 156,452.48 184,547.52 150,000.00 215,820.56 (65,820.56) 0.00 0.00 0.00 0.00 57,935.30 (57,935.30) 0.00 1,962.96 (1,962.96) 0.00 17,499.59 (17,499.59) 0.00 0.00 0.00 5,681,484.00 453,069.33 5,228,414.67 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 J 2 LA QUINTA REDEVELOPMENT AGENCY REVENUE SUMMARY PROJECT AREA NO.2: DEBT SERVICE FUND: Tex Increment Allocated Interest Non Allocated Interest Interest Advance Proceeds Transfer In TOTAL DEBT SERVICE CAPITAL IMPROVEMENT FUND: Allocated Interest Non Allocated Interest Developer Agreement Transfers In TOTAL CAPITAL IMPROVEMENT LOW/MODERATE TAX FUND: Tax Increment Allocated Interest Non Allocated Interest Developer funding ERAF Shift - Interest Sale of Land Transfer In TOTAL LOWIMOD TAX LOW/MODERATE BOND! FUND: AAocated Interest Non Allocated Interest Bond proceeds (net) Transfer In TOTAL LOW/MOD BOND REMAINING BUDGET RECEIVED BUDGET 9,723,411.00 0.00 9,723,411.00 0.00 10,832.39 (10,832.39) 0.00 23.83 (23.83) 863,674.00 0.00 863,674.00 3,442,855.00 211,959.68 3,230,895.32 14,029,940.00 222,815.90 13,807,124.10 0.00 6,902.99 (6,902.99) 0.00 4,548.00 (4,548.00) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 11,450.99 (11,450.99) 2,430,853.00 0.00 2,430,853.00 7,400.00 21,372.73 (13,972.73) 20,000.00 0.00 20,000.00 7,054,074.00 0.00 7,054,074.00 0.00 0.00 0.00 0.00 108,570.08 (108,570.08) 0.00 0.00 0.00 9,512,327.00 129,942.81 9,382,384.19 0.00 0.00 0.00 400,000.00 0.00 400,000.00 39,150,000.00 0.00 39,150,000.00 0.00 0.00 0.00 39,550,000.00 0.00 39,550,000.00 10 3 LA QUINTA REDEVELOPMENT AGENCY EXPENDITURE SUMMARY PROJECT AREA NO,1: DEBT SERVICE FUND: CAPITAL IMPROVEMENT FUND: 07/01/2003-11/30/03 BUDGET EXPENDITURES ENCUMBERED SERVICES 394,585.00 4,710.00 0.00 BOND PRINCIPAL 2,208,831.00 2,208,831.00 0.00 BOND INTEREST 8,060,234.27 3,607,794.47 0.00 INTEREST CITY ADVANCE 967,182.00 402,992.50 0.00 PASS THROUGH PAYMENTS 9,959,701.00 352,414.00 0.00 ERAF SHIFT 4,000,000.00 0.00 0.00 TRANSFERS OUT 0.00 0.00 0.00 TOTAL DEBT SERVICE ,5 6,576,741.97 PERSONNEL 4,900.00 2,751.92 0.00 SERVICES 99,619.00 54,510.90 0.00 LAND ACQUISITION 307,300.00 292,410.55 0.00 ASSESSMENT DISTRICT 0.00 0.00 0.00 ADVERTISING -ECONOMIC DEV 16,700.00 2,592.64 0.00 ECONOMIC DEVELOPMENT 187,000.00 33,865.26 0.00 BOND ISSUANCE COSTS 0.00 0.00 0.00 CAPITAL - BUILDING 0.00 0.00 0.00 REIMBURSEMENT TO GEN FUND 1,225,208.00 510,502.50 0.00 TRANSFERS OUT 27,158,772.18_ (14,521,617.62) 0.00 TOTAL CAPITAL IMPROVEMENT 28,999, 0•� CAPITAL IMPROVEMENT FUND/TAXABLE BOND BOND ISSUANCE COSTS 955,821.99 948,390.88 0.00 TRANSFERS OUT 25,444,178.01 15,303,661.26 0.00 TOTAL CAPITAL IMPROVEMENT , LOW/MODERATE TAX FUND: LOWIMODERATE BOND FUND PERSONNEL 4,900.00 2,751.92 0.00 SERVICES 250,497.00 76,789.88 0.00 BUILDING HORIZONS 210,000.00 0.00 0.00 LQ RENTAL PROGRAM 150,000.00 92,908.71 0.00 LQ HOUSING PROGRAM 1,509,196.00 917,956.00 0.00 LOWMOD VILLAGE APARTMENTS 2,350,000.00 0.00 0.00 LQRP - REHABILITATION 500,000.00 0.00 0.00 APT REHABILITATION 350,000.00 0.00 0.00 FORECLOSURE ACQUISITION 0.00 0.00 0.00 REIMBURSEMENT TO GEN FUND 82,595.00 34,414.60 0.00 TRANSFERS OUT 2,398,079.46 1,157,685.83 0.00 TOTAL LOW/MOD TAX2,282,506.94 0.00 PERSONNEL 0.00 0.00 0.00 SERVICES 0.00 0.00 0.00 REIMBURSEMENT TO GEN FUND 0.00 0.00 0.00 HOUSING PROJECTS 0.00 0.00 0.00 TRANSFERS OUT 74,623.00 0.00 0.00 TOTAL LOW/MOD BOND 74,623.00 11 4 LA QUINTA REDEVELOPMENT AGENCY EXPENDITURE SUMMARY PROJECT AREA NO.2: DEBT SERVICE FUND: CAPITAL IMPROVEMENT FUND: LOW/MODERATE TAX FUND: LOWIMODERATE BOND FUND 07/01/2003-11/30/03 BUDGET EXPENDITURES ENCUMBERED SERVICES 229,013.00 3,050.00 0.00 BOND PRINCIPAL 176,169.00 176,169.00 0.00 BOND INTEREST 578,895.00 290,253.18 0.00 INTEREST CITY ADVANCE 957,800.00 399,083.31 0.00 INTEREST - ERAF L/MOD LOAN 0.00 0.00 0.00 PASS THROUGH PAYMENTS 8,227,557.00 0.00 0.00 TRANSFERS OUT 0.00 0.00 TOTAL DEBT SERVICE 10, 0. PERSONNEL 2,900.00 1,665.19 0.00 SERVICES 78,544.00 33,564.56 0.00 ADVERTISING -ECONOMIC DEV 1,396.03 0.00 ECONOMIC DEVELOPMENT ACTIVITY 0.00 0.00 REIMBURSEMENT TO GEN FUND 34,509.00 14,377.90 0.00 TRANSFERS OUT (36,670.14) (27,500.00) 0.00 _ TOTAL CAPITAL IMPROVEMENT 79,282.86 23,503.68 PERSONNEL 2,900.00 1,665.19 0.00 SERVICES 127,171.00 57,606.33 0.00 2nd Trust deeds 150,000.00 0.00 0.00 2nd trust deeds from Centerpointe 2,520,000.00 0.00 0.00 48th and Adams - from Centerpointe 1,423,203.00 0.00 0.00 Low Mod Housing ProjaW47th/Adams Proj 489,592.00 0.00 0.00 48th/Adams Planning 480,000.00 80,000.00 0.00 FORECLOSURE ACQUISITION 150,000.00 0.00 0.00 REIMBURSEMENT TO GEN FUND 71,988.00 29,995.00 0.00 TRANSFERS OUT 9,056,065.99 211,959.68 0.00 TOTAL LOW/MOD TAX 1381,226.20 0.00 2nd TRUST DEEDS LAND BOND ISSUANCE COSTS TRANSFERS OUT TOTAL LOWIMOD BOND 7,000,000.00 0.00 0.00 31,000,000.00 0.00 0.00 1,500,000.00 0.00 0.00 50,000.00 0.00 0.00 39,660,000.00 0.00 0.00 12 ATTACHMENT 2 N co cM M � p Lo � O 04 c04 0 O KNpC�pO'M0LOtito0�ONr00lM Cv>pMr-I�� N 0) V L0 CID N 0 c C) ti� Rom r- ti r- NO�� a- a, MEA J_ §0LO1pN N O 90000 cp CNCOON�00 Q cl V VCL O r >%>%>,>%>>%>t>%>%>, �p0000000000000 �Mzzzzzzzzzzzzz �vvvvv-av'av-vvv mmmmm�vmmmmmmm ��mma�ma�maammma�a�a� Lmmmmmmmmm�mm aamma�a�ma�mma�mma� C C c c C c c c c C c c c 0 0 0 0 0 0 0 0 0 0 0 0 0 9 co a. �) m m ma.000) �v>>n.a. U x m mc�aU�� > >ZZUU xx�ooco cf)0 N m 4Q immv-~OQQcLDaQQaa 0� w CL N�raaCO*4 0)�000) �QWWON�V- 000)0) O�OONNNY c 0)00le-e- N m C' ONN C' ' �m M' ' C C m CNYYm C CmUim CCmm m� C C m C6� C6 m m j N C m m? m CO 7 = m m — m v� vi vi v> �mv)vi » » o C6 13 COUNCIL/RDA MEETING DATE: January 20, 2004 ITEM TITLE: Approval to Award a Contract to Construct the SilverRock Ranch Mass Grading Project, Project No. 2002-07B RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Approve a contract in the amount of $2,665,896, with Wood Bros., Inc. to construct the SilverRock Ranch Mass Grading Project, Project No. 2002-07B. FISCAL IMPLICATIONS: The SilverRock Ranch Improvements are included within the Fiscal Year 2003/2004 Capital Improvement Program (CIP). On October 7, 2003, staff presented the Agency a $10.373 million budget for constructing the first golf course, which included $2,245,000 for earthmoving, clearing/site preparation, erosion control, mobilization, layout, staking, and bonding (i.e., mass grading). Additionally, the October budget included $500,000 for project contingencies. On December 2, 2003, the Agency approved the Plans, Specifications, and Engineer's Estimate (PS&E) of $2,185,000 for mass grading improvements for SilverRock Ranch. The original architect's quantity estimate for grading was subsequently revised by the civil engineer from 1.1 million cubic yards to 1.8 million cubic yards. Additionally, 179,300 cubic yards of over excavation was added to the project in order to complete the hotel pads with this project bringing the total earthwork quantity to 2.0 million cubic yards. The engineer's estimate was therefore revised to $3,308,730. On January 16, 2004, four (4) construction bids were received for the project. Wood Bros., Inc. submitted the lowest responsive bid in the amount of $2,665,896. Based upon the low bid amount, the following is the anticipated project budget: Activity Construction City Administration Contingency TOTAL: Budget $2,665,896 $ 40, 000 $250,000 $2,955,896 Assuming that one-half of the first golf course contingency ($250,000) can be assigned to mass grading, the total amount assigned for mass grading the first golf course is $2,495,000. Upon award of contract, the balance of this project's cost, $460,896, will be assigned to the hotel pad and lake cost from the overall project budget of $44 million. It should be noted that the cost for construction administration is included in the contract for Heinbuch Golf. BACKGROUND AND OVERVIEW: The City Council approved the Fiscal Year 2003/2004 CIP on May 20, 2003. This year's CIP includes the construction of the first phase of the SilverRock Ranch Municipal Golf Course. This step of development consists of mass grading the first golf course, driving range, lakes, maintenance area, and hotel pad to within one-half foot of the final design elevation based on Palmer Golf Course Design's grading plan for the first golf course and GMA International's design for the hotel pad. The contractor will move approximately 2 million cubic yards of earth, creating the golf course features and the hotel site including the hotel lake. As part of the project, the contractor will be required to fence the entire property perimeter with wind screening, stabilize all disturbed areas and provide a full- time dust control monitor in accordance with the City's PM 10 Ordinance. An additional 179,300 cubic yards of over excavation was added to the contract by Addendum No. 1 in order to complete the hotel building pads with this project. On December 2, 2003, the Agency approved the Plans, Specifications, and Engineer's Estimate (PS&E) and authorized staff to advertise the bid of the SilverRock Mass Grading Improvements, Project No. 2002-07B. Wood Bros., Inc. of Lemoore, California, submitted the lowest responsive bid in the amount of $2,665,896, which is 19% below the Engineer's Estimate (Attachment 1). Wood Bros., Inc. has successfully constructed similar sized projects in the San Luis Obispo and Fresno. 2 15 Contingent upon Agency Board approval to award a construction contract on January 20, 2004, the following is the project schedule: City Council Construction Award Construction Period (120 days) Project Acceptance FINDINGS AND ALTERNATIVES: January 20, 2004 February through June 2004 July 2004 The alternatives available to the Agency Board include: 1. Approve a contract in the amount of $2,665,896, with Wood Bros., Inc. to construct the SilverRock Ranch Mass Grading Project, Project No. 2002-0713; or 2. Do not approve a contract in the amount of $2,665,896, with Wood Bros., Inc. to construct the SilverRock Ranch Mass Grading Project, Project No. 2002-0713; or 3. Provide staff with alternative direction. Respectfully submitted, R 61mothy . Jo son, P.E. Public Works Director/City Engineer Approved for submission by: \'I-L , 4 gnse b Thomas P. Genovese, Executive Director Attachments: 1. Mass Grading Bid Comparison 16 3 c O a W m r a� �Eoo C O N O 0 m N tp O c Z ca C7 O` A N d V1 lC0 G ATTACHMENT 1 al 17 Qum& 1.1i OF 9� COUNCIURDA MEETING DATE: January 20, 2004 ITEM TI1LE: Approval of a Five -Year Contract with La Quinta Palms Realty for Property Manager Services Related to the La Quinta Rental Housing Program RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: 5 Approve a five-year contract with La Quinta Palms Realty for property management services related to the single-family rental units in the La Quinta Rental Housing Program, and authorize the Executive Director to execute the required documents. FISCAL IMPLICATIONS: None. Property management costs are paid from rental income. BACKGROUND AND OVERVIEW: In 1995 the Agency purchased 50 single-family homes in the Cove to preserve very low- and low-income affordable housing covenants. The dwellings have been rented to very low- and low-income Section 8 households, with ten homes sold to existing tenants. Property management and maintenance services have been provided through local real estate companies. In 2002, the Agency entered into a 24-month contract with La Quinta Palms Realty for these services. They have done an excellent job with managing and maintaining the units. With their contract slated to expire on February 6, 2004, staff is recommending that the firm be retained to continue management and maintenance, and that the contract term be for five years. A draft contract is attached for review and consideration (Attachment 1). The only modifications from the current contract is establishing a five-year term, and revising the total compensation to reflect the five-year term. La Quinta Palms Realty has not requested any adjustment to the per unit management fee, which will remain at $1 10.00 per unit per month, nor to any other provisions of the existing contract. S:\CITYMGR\STAFF REPORTS ONLY\C 6 LQPALMSPRPTYMGMT.DOC FINDINGS AND ALTERNATIVES: Alternatives available to the Redevelopment Agency Board include: 1. Approve a five-year contract with La Quinta Palms Realty for property management services related to the single-family rental units in the La Quinta Rental Housing Program, and authorize the Executive Director to execute the required documents; or 2. Do not approve a five-year contract with La Quinta Palms Realty for property management services related to the single-family rental units in the La Quinta Rental Housing Program; or 3. Provide staff with alternative direction. Respectfully submitted, Homan munity Development Director Approved for submission by: Thomas P. Genovese, Executive Director Attachment: 1. Contract for Services t, 02 S:\CITYMGR\STAFF REPORTS ONLY\C 6 LOPALMSPRPTYMGMT.DOC 19 AGREEMENT FOR CONTRACT SERVICES [PROPERTY MANAGEMENT. SERVICES] THIS AGREEMENT FOR CONTRACT SERVICES (the "Agreement"), is made and entered into by and between the LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic, organized and existing under the California Community Redevelopment Law (Health & Safety Code § 33000 et seq.) ("Agency"), and LA QUINTA PALMS REALTY, a California Corporation ("Contractor"). The parties hereto agree as follows: 1.0 SERVICES OF CONTRACTOR 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, the Contractor shall provide those services related to residential property management and sales for the Agency, as specified in the "Scope of Services" attached hereto as Exhibit "A-1" 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. 1.2 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 ("City") and any Federal, State or local governmental or quasi -governmental agency of competent jurisdiction. 1.3 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. 1.4 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 investigated the site of the work and fully acquainted itself with the conditions there existing, (c) it has carefully considered how the work should be performed, and (d) 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). 394/015610-0040 1 ' 't.- 03 249433.02 a01/09✓04 °,�,,�' O 1.5 Care of Work. The Contractor shall adopt reasonable methods during the life of the Agreement to furnish continuous protection to the work, and the equipment, materials, papers and other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the work by Agency, except such losses or damages as may be caused by Agency's own negligence. The performance of services by Contractor shall not relieve Contractor from any obligation to correct any incomplete, inaccurate or defective work at no further cost to the Agency, when such inaccuracies are due to the negligence of Contractor. 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 Services (Exhibit "A-1 ") 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. Any addition in compensation not exceeding five percent (5%) of the Contract Sum may be approved by the Contract Officer. Any greater increase must be approved by the Agency Board. 1.7 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in the "Special Requirements" attached hereto as Exhibit "B" and incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit `B" and any other provisions of this Agreement, the provisions of Exhibit "B" shall govern. 2.0 COMPENSATION 2.1 Contract Sum. For the services rendered pursuant to this Agreement, the Contractor shall be compensated in accordance with the "Schedule of Compensation" attached hereto as Exhibit "C" and incorporated herein by this reference, but not exceeding the maximum contract amount over the five (5) year term of the lesser of (i) Two Hundred Sixty-four Thousand Dollars ($264,000) or (ii) One Hundred Ten Dollars ($110) per unit monthly, based on a maximum of forty (40) units ("Contract Sum"), except as provided in Section 1.6. The method of compensation shall be as set forth in the Schedule of Compensation (Exhibit "C"). 2.2 Method of Payment. Any month in which Contractor wishes to receive payment, Contractor shall submit to the Agency no later than the tenth (10th) working day of such month, in the form approved by the Agency's Finance Director, an invoice for services rendered prior to the date of the invoice. Such invoice shall (1) describe in detail the services provided, including time and materials, (2) specify each staff member who has provided services and the number of hours assigned to each such staff member, and (3) 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. Agency will pay Contractor for all expenses stated thereon which are approved by Agency pursuant to this Agreement no later than the last working day of the month. 394/015610-0040 04 249433.02 a01/09/04 2 21 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 period established in the "Schedule of Performance" attached hereto as Exhibit "D" and incorporated herein by this reference. Extensions to the time period specified in the Schedule of Performance may be approved in writing by the Contract Officer. 3.3 Force Majeure. The time period specified in the Schedule of Performance (Exhibit "D") 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 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 Agency, 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 the 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 Section 7.8 of this Agreement, this Agreement shall continue in full force and effect for five (5) years commencing March 1, 2001, or until completion of the services, except as otherwise provided in the Schedule of Performance (Exhibit "D"). 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: a. Bruce Cathcart, or b. James Cathcart It is expressly understood that the experience, knowledge, capability and reputation of the foregoing principals were a substantial inducement for Agency to enter into his Agreement. Therefore, the foregoing principals shall be responsible during the term of this 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 and no other personnel may be assigned to perform the service required hereunder without the express written approval of Agency. 3941015610-0040 V 3 5 249433.02 a01/09/04 22 4.2 Contract Officer. The Contract Officer shall be the Community Development Director or such other person as may be designated by the Executive Director of Agency. 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 Subcontractingor r 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, including any legal services from an individual practitioner or law firm, 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 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 of Agency and shall remain at all times as to Agency a wholly 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. The foregoing is not intended to preclude Contractor from performing the services set forth in Paragraph 5 of Exhibit "A-1." 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. The Agency shall additionally provide Contractor staff assistance and shall take prompt and appropriate action when it will assist in ensuring and timely performance by Contractor hereunder. 394/015610-0040 06 249433.02 a01/09/04 4 23 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 this Agreement, 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 contain a severability of interest clause providing that the coverage shall be primary for losses arising out of Contractor's performance hereunder and neither the Agency or the City of La Quinta (the "City") nor its insurers shall be required to contribute to any such loss. The amount of liability and personal injury insurance required hereunder shall be One Million Dollars ($1,000,000), single limit and per occurrence The Contractor shall also carry automobile liability insurance of $500,000 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 contain a severability of interest clause providing that coverage shall be primary for losses arising out of Contractor's performance hereunder and neither the Agency or City nor its insurers shall be required to contribute to such loss. All insurance required under this Agreement shall be written on an "occurrence" basis rather than a "claims -made" basis, and shall name the Agency and City and their respective officers, officials, employees, agents, and representatives as additional insureds. A certificate(s) evidencing the foregoing insurance coverages meeting the above requirements shall be delivered to and approved by the Agency prior to commencement of the services hereunder. Contractor shall also carry Workers' Compensation Insurance in accordance with State Workers' Compensation laws. If required by the Contract Officer, the Contractor shall procure professional errors and omissions liability insurance in the amount acceptable to the Agency. All insurance required by this 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 from the insurer. 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 and City and their respective officers, officials, employees, agents, representatives, contractors, and subcontractors. 394/015610-0040 249433.02 a01/09/04 07 5 24 5.2 Indemnification. The Contractor shall defend, indemnify and hold harmless the Agency and City and their respective officers, officials, employees, representatives, agents, contractors, and subcontractors, 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), for damage to property (including property owned by the Agency or City) and for errors and omissions committed by Contractor, its officers, anyone directly or indirectly employed by Contractor, any subcontractor, 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, except to the extent of such loss as may be caused by Agency's own active negligence, sole negligence or willful misconduct, or that of its officers, officials, or employees acting in his, her, or their official capacity. 5.3 Remedies. In addition to any other remedies the Agency or City 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 or City may, at their respective sole option: a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement. b. Order the Contractor to stop work under this Agreement and/or withhold any payment(s) which become due to Contractor hereunder until Contractor demonstrates compliance with the requirements hereof. C. Terminate this Agreement. Exercise of any of the above remedies, however, is an alternative to any other remedies the Agency or City 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 persons or property resulting from Contractor's or its subcontractors' performance of work under this Agreement. 394/015610-0040 6 O 8 249433.02 a01/0M4 25 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. Originals of all 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 and shall be delivered to Agency upon the termination of this Agreement or upon the earlier request of the Contract Officer, and Contractor shall have no 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. Contractor may retain copies of such documents for its own use. Contractor shall have an unrestricted right to use the concepts embodied herein. Contractor shall cause all subcontractors to assign to Agency any documents or materials prepared by them, and in the event Contractor fails to secure such assignment, Contractor shall indemnify Agency for all damages suffered thereby. 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 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 internal 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. 394/015610-0040 0906 249433.02 a01/09/04 7 4' 7.2 Defaults. In the event of any default of the terms of this Agreement, the nondefaulting party shall give written notice of default to the party in default, and the party in default shall immediately commence to cure such default and shall prosecute such default to cure within thirty (30) days of receipt of the written notice of default; provided the time period to cure such default may be extended by the nondefaulting party in such party's sole and absolute discretion; provided, however, that if a default by Contractor causes an immediate danger to the health, safety and general welfare, the Agency may take such immediate action as the Agency deems warranted. Nothing herein shall limit Agency's right to terminate this Agreement with or without cause pursuant to Section 7.7. 7.3 Retention of Funds. 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 this Agreement. 7.4 Waiver. No delay or omission in the exercise of any right or remedy of a nondefaulting 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 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 Legal Action. 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 by Agency Prior To Expiration Of Term. The Agency reserves the right to terminate this Agreement at any time, with or without cause, upon written notice to Contractor. 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 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 "C") or such as may be approved by the Contract Officer, except as provided in Section 7.3. 394/015610-OW 10 249433.02 a01/09/04 8 27 7.8 AgencCompletion of Work. If termination by Agency prior to the expiration of the term is due to the failure of the Contractor to fulfill its obligations under this Agreement, Agency may take over the work and prosecute the same to completion by contract or otherwise, and the Contractor shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein provided; provided, however, that (i) the Agency shall first comply with Section 7.2, and (ii) the Agency shall use reasonable efforts to mitigate such damages. Nothing herein shall prevent or preclude Agency from withholding any payments to the Contractor for the purpose of setoff or partial payment of the amounts owed the Agency as provided in Section 7.3. 7.9 Termination by Contractor Prior to Expiration of Term. If Agency is in default and Contractor has complied with Section 7.2, and Agency's default remains uncured within the cure period provided therein, the Contractor may then terminate this Agreement by giving a thirty (30) day written notification to Agency. Contractor shall continue to perform the services required of it by this Agreement during such thirty (30) day period. Contractor shall be entitled to the compensation set forth in this Agreement for such thirty (30) day period. At the end of the thirty (30) day period this Agreement shall be terminated unless Agency has cured the noticed default prior to the end of the thirty (30) day period. Contractor shall be entitled to compensation for services rendered pursuant to this Agreement prior to the date of termination. 7.10 Attorneys' Fees. If either party commences an action against the other party arising out of or in connection with this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs of suit from the losing party. 8.0 AGENCY AND CITY OFFICERS AND EMPLOYEES; NON-DISCRRvUNATION. 8.1 Non -liability of Agency and City Officers and Employees. No officer, official, employee, agent, or representative the Agency or City shall be personally liable to the Contractor, or any successor in interest, in the event of any default or breach by the Agency or City or for any amount which may become due to the Contractor or to its successor, or for breach of any obligation of the terms of this Agreement. 8.2 Conflict of Interest. No officer, official, employee, agent, or representative of the Agency or City 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 affects 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. 394MI5610-0040 1 1. 249433.02 a01/09104 9 28 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, creed, religion, sex, marital status, national. origin, ancestry, or any other impermissible classification in the performance of this Agreement. Contractor shall comply with all applicable wage and labor laws and regulations all laws and regulations pertaining to nondiscrimination in employment. 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 party shall be in writing and delivered by one of the following means to the address shown forth below: (i) by personal delivery during regular business hours; (ii) by United States first class mail, certified, and prepaid; or (iii) by reputable same -day or overnight courier that provides a receipt showing date and time of delivery. Either party may change its address by notifying the other party of the change of address in writing. Notices personally delivered or delivered by courier shall be deemed effective upon receipt. Notices delivered by mail shall be effective as of Noon on the second business day following deposit with the United States Postal Service. To Agency: LA QUINTA REDEVELOPMENT AGENCY 78-495 Calle Tampico La Quinta, California 92253 Attention: Jerry Herman To Contractor: LA QUINTA PALMS REALTY 51-001 Eisenhower Drive La Quinta, California 92253 Attention: Bruce Cathcart or James Cathcart 9.2 Integrated ted 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 Amendment. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing signed by both parties. 9.4 Severability. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability 39"15610-0040 1012 249433.02 a01/09104 29 shall 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. 9.5 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. [end — signature page follows] 13 394/015610-0040 1 1 249433.02 a01/09/04 30 IN WITNESS WHEREOF, the parties have executed this Agreement to be effective upon the latest of the dates set next to the signature of parties. Dated: ATTEST: Agency Secretary APPROVED AS TO FORM: Agency Counsel Dated: 394/015610-0040 249433.02 a01/09/04 LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic M Chairman "AGENCY" LA QUINTA PALMS REALTY, a California Corporation I0 Bruce Cathcart, Broker "CONTRACTOR" 14 12 31 EXH03IT "A-1" SCOPE OF SERVICES Agency hereby retains Contractor to provide all residential property management services required to manage the Agency -owned properties listed on Exhibit A-2; said list may be expanded or reduced at the sole discretion of Agency. The residential property management services shall include, but not be limited to the following: 1. Project Administration • Monthly and annual financial record -keeping and reporting • Rent collection including late charges; miscellaneous tenant charges; and collection efforts on overdue accounts, excluding any costs incurred by Contractor's use of a bonded collection agency which shall be at the expense of the Agency • Creation and implementation of a procedure for the collection of past due rent payments • Vendor and subcontractor contracts. Invoices for payment by the Agency shall be submitted on a monthly basis • Monthly and annual project status reports • Notify tenants and governmental agencies of the change in management service • Market, advertise, and rent all vacant units 2. Coordinate and Comply with Public Housing Authority ("PHA") Regulations for • Obtaining new or replacement Section 8 tenants • Coordinating new tenant leases with the PHA • Reconciling monthly Housing Assistance Payments, including periodic revisions to the monthly amounts • Creation and implementation of a procedure for the collection of past due Housing Assistance Payments • Completing repair of deficiencies resulting from PHA's periodic property inspections 3. Tenant Matters • New tenant screening, including - credit check, personal references, employment verification, etc. • Monthly tenant rent collection, including late fees, if applicable • Pre move -in and move -out property inspections • Eviction process (Agency's Executive Director to provide written direction to commence eviction and approval of selected law firm; the Agency to pay for such expenses) 4. Unit Maintenance • Receiving and processing tenant routine repair requests and emergency repair requests on a 24 hour basis, 7 days per week. If this task is subcontracted, the cost for administration of requests will be paid by the property manager. • Overseeing work provided by maintenance staff or subcontractor • Compliance with PHA periodic inspections Exhibit "A-1" 394/015610-OW Page 1 of 2 249433.02 a01/09/04 g 15 0 4. • Receive repair requests and dispatch repair services in a timely manner • Conduct monthly drive -by inspections and periodic interior and exterior inspections when warranted. 5. Real Estate Sales • As units are vacant and local market conditions dictate, serve as the Agency's sales agent and handle the transactions necessary to sell the individual units to be made available for sale. The commission to be paid as part of this transaction will be no more than 3.0% of the sales price. Selection of available units for sale shall be at the sole and absolute discretion of the Agency. Exhibit "A-1" 39"15610-0040 249433.02 a01/09/04 Page 2 of 2 is 33 "EXHIBIT A-2" - PROPERTY LIST Prop. # Address 1 53-775 Ave. Alvarado 36 53-940 Eisenhower Dr. 2 54-245 Ave. Herrera 37 53-795 Ave. Herrera 3 53-825 Ave. Juarez 38 53-965 Ave. Diaz 4 52-855 Ave. Ramirez 39 52-830 Ave. Martinez 5 54-280 Ave. Madero 40 53-785 Ave. Ramirez 6 53-195 Ave. Alvarado 7 53-365 Eisenhower Dr. 8 53-523 Ave. Martinez 9 53-541 Ave. Martinez 10 52-565 Eisenhower Dr. 11 52-845 Ave. Villa 12 51-805 Ave. Cortez 13 52-635 Ave. Diaz 14 53-105 Ave. Herrera 15 53-275 Ave. Navarro 16 51-395 Ave. Vallejo 17 52-835 Ave. Villa 18 52-195 Ave. Mendoza 19 52-625 Ave. Rubio 20 53-185 Ave. Navarro 21 53-205 Ave. Navarro 22 52-985 Ave. Carranza 23 52-965 Ave. Carranza 24 53-880 Ave. Navarro 25 53-925 Ave. Martinez 26 53-195 Ave. Carranza 27 52-425 Eisenhower Dr. 28 52-225 Ave. Vallejo 29 53-105 Ave. Obregon 30 53-155 Ave. Obregon 31 53-175 Ave. Obregon 32 53-565 Ave. Vallejo 33 54-300 Ave. Velasco 34 52-985 Eisenhower Dr. 35 53-760 Ave. Vallejo 17 3 9433.0 a01/0 Exhibit "A-2" - Page 1 of 1 249433.02 a01/09/04 g SPECIAL REQUIREMENTS The Agency shall not release checks to Contractor or subcontractors that provide services under this Agreement unless or until they receive the necessary required business licenses or workers compensation coverage and provide the required Certificate(s) of Insurance. The Contractor shall utilize the services of subcontractors to perform certain duties under this Agreement. The Contractor will hire those subcontractors that.provide quality services at the lowest possible price. If the expenditure amount in which a subcontractor will be used exceeds $1,000, the Contractor shall obtain three (3) phone bids. If the anticipated expenditures are estimated to exceed $2,000, then three (3) written bids shall be secured. However, should an emergency situation occur that will not provide adequate time for the bid. process to be completed as described above, the Contractor shall select the subcontractor that can best provide the required services. The Contractor shall notify the Agency in any such emergency. IV Exhibit "B" 394MI5610-0040 249433.02 a01/09/04 Page 1 of 1 3 J 10,14:11"JIMM SCHEDULE OF COMPENSATION Subject to services actually rendered, Agency shall compensate Contractor monthly based upon the . following: 1. Contractor shall receive a monthly fee of $110.00 per unit based upon the number of units managed and rented during each month. 2. Repair and maintenance costs incurred by Contractor, or any third party contractor, shall be submitted monthly to Agency for its review and payment directly to the service provider. 3. Extraordinary capital expenditures (excluding carpeting, painting, fixture or appliance replacement, garage door repair or replacement, HVAC repair or replacement, fence repair or replacement, door repair or replacement) in excess of five thousand dollars ($5,000) required on any one unit on a single occasion shall permit the Contractor to assess the Agency, subject to prior Agency review and approval, an additional construction management fee of five percent (5%) based upon the one time capital expenditure cost. 4. Agency shall pay Contractor a three percent (3%) commission on those home sales that Contractor is the procuring cause at the time of the recordation of the grant deed and close of escrow. Agency shall, at its sole discretion, determine which units are available for sale and shall advise Contractor in writing of the availability. 19. Exhibit "C" 394/015610-OW e 1 of 1 Pa 249433.02 a01/09✓04 g 36 SCHEDULE OF PERFORMANCE The Agreement between the Agency and Contractor provides for the following Schedule of Performance: 1. Term of Agreement - Contractor shall provide the stated services for five (5) years commencing upon the execution of the Agreement by Agency and Contractor. Said term is subject to earlier termination pursuant to the Agreement. 2. Contractor shall provide by the fifteenth (15th) day of every month a report showing all revenue and expenses incurred for every unit and a marketing report depicting all advertising, marketing, vacancies, leasing, and maintenance activity for the previous month. 3. Contractor shall provide an annual statement showing the previous year's operation by the fifteenth (15th) day of July during each fiscal year of this Agreement. 4. All maintenance requests including Public Housing Authority (PHA) requirements shall be accomplished in the quickest commercially feasible manner subject to Exhibit "B". 5. Contractor shall prepare for Agency's review and execution all monthly check disbursements and appropriate supporting materials for each disbursement by the tenth (10th) and twenty-fifth (25th) of every month. Contractor shall reconcile all check disbursements by the fifteenth (15th) of every month. Exhibit "D" 20 394/015610-OW Page 1 of 1 249433.02 a01/09/04 g 37 a, OF rt�9 COUNCIL/RDA MEETING DATE: January 20, 2004 ITEM TITLE: Approval of an Amendment to the Agreement by and Between Coachella Valley Recreation and Park District and the La Quinta Redevelopment Agency Pertaining to the Redevelopment Plan for Redevelopment Project No. 2 RECOMMENDATION: BUSINESS SESSION: CONSENT CALENDAR: —�Q STUDY SESSION: PUBLIC HEARING: Conceptually approve and authorize staff to prepare an Amendment to the Agreement by and between Coachella Valley Recreation and Park District and the La Quinta Redevelopment Agency pertaining to the Redevelopment Plan for Redevelopment Project No. 2 pursuant to the terms negotiated with the District. FISCAL IMPLICATIONS: The modifications would result in the annual payment of 25% tax increment revenue generated in La Quinta Redevelopment Project No. 2 by the District's property tax levy to the District. For Fiscal Year 2004-05, staff anticipates that this payment would be in excess of $100,000. BACKGROUND AND OVERVIEW: The Redevelopment Agency is processing an Amendment to the Redevelopment Plan for La Quinta Redevelopment Project No. 2 that increases the existing tax increment limit from $400,000,000 to $1,500,000,000. As part of the Amendment process, the Agency is required to consult with all taxing agencies that receive tax increment revenue form Project Area No. 2 regarding potential fiscal impacts. When Project No. 2 was established in 1989, the Agency entered into a fiscal mitigation agreement with the Coachella Valley Park and Recreation District that authorized the Agency to retain 100% of the tax increment revenue generated by the District's property tax levy. Upon receipt of the Joint Public Hearing notice, the District contacted staff and requested a meeting to review the status of the agreement. Staff met with District representatives on January 16. They indicated that the District desired to amend the agreement to permit the District to receive 25% of the tax increment revenue 3& generated by the District's property tax levy, calculated using the 1988-89 base year value for Project Area No. 2. Further, the Agency would retain 75% of the District share and would be allowed to use this revenue for any redevelopment purpose the Agency elects to fund. Staff believes that this is a fair request and recommends that the Agency Board authorize Agency Legal Counsel to prepare an amendment to the existing agreement that incorporates this concept. In order to preclude the need for the District to preserve their position and include testimony in the Joint Public Hearing Record regarding this matter, staff is further recommending that the Agency Board approve this concept. The revised agreement will be scheduled for Agency Board consideration at the February 3, 2004 meeting. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency Board include: 1. Conceptually approve and authorize staff to prepare an Amendment to the Agreement by and between Coachella Valley Recreation and Park District and the La Quinta Redevelopment Agency pertaining to the Redevelopment Plan for Redevelopment Project No. 2 pursuant to the terms negotiated with the District; or 2. Do not approve and authorize staff to prepare an Amendment to the Agreement by and between Coachella Valley Recreation and Park District and the La Quinta Redevelopment Agency pertaining to the Redevelopment Plan for Redevelopment Project No. 2 pursuant to the terms negotiated with the District.; or 3. Provide staff with alternative direction. Respectfully submitted, H ity Development Director Approved for submission by: c, ,, la-o to. lb w Thomas P. Genovese, Executive Director 39 fZDA 6; 53 �_"- ®4 AMENDMENT NO. 1 TO AGREEMENT BETWEEN THE COACHELLA THIS AMENDMENT NO. 1 TO AGREEMENT ("Amendment No. I') is made and entered into as of January 20, 2004 ("Effective Date") by and between the COACHELLA RECREATION AND PARK DISTRICT ("District") and the LA QUINTA REDEVELOPMENT AGENCY ("Agency"). For other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, District and Agency do hereby agree as follows. 1.0 Subiect of Amendment. On or about June 28, 1989, the District and Agency entered into that certain "Agreement By and Between The Coachella Valley Recreation and Park District And The La Quinta Redevelopment Agency Pertaining To The Redevelopment Plan for Redevelopment Project No. 2" (the "Agreement"). District and Agency agree that the Agreement is a "pass through" agreement entered into prior to January 1, 1994, and that they may amend such Agreement as set forth herein. District and Agency mutually desire to amend the Agreement to implement their mutual goals with respect to the Agreement. 2.0 Amendment. The Agreement is amended as follows: 2.1 Section 1 of the Agreement is amended in part by (a) deleting the definition of "Redevelopment Plan" in subparagraph (g) and replacing it in its entirety, and (b) adding new definitions for "District Segment" and "District Payment" in new subparagraphs (i) and (j), respectively, as follows: (g) "Redevelopment Plan " means the. Redevelopment Plan for the La Quinta Redevelopment Project No. 2 as adopted on May 16, 1989 by Ordinance No. 139, as amended by a technical amendment adopted on December 20, 1994, by Ordinance No. 259, to conform the Plan to the requirements of State law, Assembly Bill 1290, Ch. 942 of Stats. 1993. District acknowledges that the Agency may further amend the Redevelopment Plan on or about February 3, 2004, to increase the number of tax increment dollars the Agency is authorized to receive from Project Area No. 2, and if such further amended is adopted the defined term "Redevelopment Plan " as used herein shall be deemed to include such further amendment. (i) "District Segment" shall mean Twenty -Five Percent (25%) of the District Portion. 6) "District. Payment" shall mean the District Segment less the proportional amount associated with such District Segment the Agency is required to (i) set -aside into special accounts mandated by State law, including but not limited to the Agency's Low and Moderate Income Housing Fund, and (ii) payments, set -asides, or offsets to which the Agency is subject pursuant to State law, including but not limited to the Educational Revenue Augmentation Fund and administrative payments to the State or County with respect to the payment of tax increment. 2.2 Section 2 is deleted and replaced in its entirety as follows: Section 2. District and Agency acknowledge that it is the standard practice for the County of Riverside to pay the Agency its annual tax increment payment in two installments, in January and May. Commencing with the property tax increment payment received by the Agency from 3941015610-0070 /� (� 468847.02 a01/20/04 `# v the County of Riverside in January 2004, and thereafter with respect to such installments for the remainder of the Term, the Agency, within thirty (30) days following the receipt of such installment property tax increment payments from the County, shall pay the District Payment to District based on the property tax increment allocated to and received by the Agency in such installment. District acknowledges and agrees that some or all of the District Payments may be made directly to the District by the County Auditor -Controller or other County office responsible for the administration of tax increment payments, and that such direct payments shall constitute payments by the Agency under this Agreement. Agency's obligation to make the District Payment shall terminate if, prior to the end of the Term, District ceases to be an affected taxing agency within Redevelopment Project No. 2. 3.0 District and Agency Covenants. 3.1 The District agrees and covenants that (i) this Amendment. No. 1 fully and completely resolves and settles any and all issues, disputes, or controversies with respect to the Agency's receipt and use of funds the Agency received under the Agreement as existing on the date of this Amendment No. 1; and (ii) it shall not file or participate in opposition to the Agency in any oral or written opposition to the Agency's proposed amendment to the Redevelopment Plan to increase the number of tax increment dollars the Agency is authorized to receive from Project Area No. 2, which amendment shall be the subject'of a joint public hearing of the Agency and City Council scheduled for January 20, 2004. 3.2 As of the Effective Date of this Amendment No. 1, District, and anyone claiming by, through, or under it, hereby waives and discharges its right to recover from, and fully and irrevocably release the Agency and its officers, officials, members, employees, agents, representatives, attorneys, and any other entities or persons acting in their respective behalves, from any claims, rights, demands, causes of action, damages, losses, costs, or expenses of every kind or nature, including attorney's fees, known or unknown, suspected or unsuspected, fixed or contingent, foreseen or unforeseen, arising out of or in any way related to any amounts Agency may owe to District under the Agreement as existing prior to the effectiveness of this Amendment No. 1, or Agency's use of any or all of the District Portion as set forth in Section 2 of the Agreement as existing prior to the effectiveness of this Amendment No. 1. With respect to the foregoing release and waiver, District is aware of the provisions of Section 1542 of the California Civil Code, which section reads as follows: A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR District hereby expressly, knowingly, and voluntarily waives the provisions of Section 1542 of the California Civil Code and the provisions of any other applicable laws restricting the release of claims which the releasing parties do not know or suspect at the time of the release which, if known, would have materially affected the decision to agree to this release. District Initials 4.0 Effectiveness. This Amendment No. 1 shall automatically be void ab initio and of no force or effect if the proposed amendment to the Redevelopment Plan to Plan to increase the number of tax increment dollars the Agency is authorized to receive from Project Area No. 2, 394/015610-0070 1r 468847.02 a01/20/04 -2- which amendment shall be the subject of a joint public hearing of the Agency and City Council scheduled for January 20, 2004, is not adopted and the Agency formally abandons its proposal to amend the Redevelopment Plan to increase the number of tax increment dollars the Agency is authorized to receive from Project Area No. 2, or in the event the adopted amendment should be set aside, invalidated, or annulled as a result of litigation. 5.0 Entire Amendment; Counterparts; No Other Amendment. This Amendment No. 1 constitutes the complete and final expression and understanding of the District and Agency with respect to the subject matter hereof. This Amendment No. 1 may be executed counterparts, each of which, when this Amendment No. 1 has been signed by both District and Agency, shall be deemed an original. Except as amended by this Amendment No. 1, the Agreement shall remain in full force and effect and the Agreement shall be read and construed as amended only by this Amendment No. 1. IN WITNESS WHEREOF, the District and Agency have executed and entered into this Amendment No. 1 as of the Effective Date. COACHELLA RECREATION AND PARK DISTRICT Lo Its: ATTEST: District Secretary APPROVED AS TO FORM: By: District Counsel LA QUINTA REDEVELOPMENT AGENCY Terry Henderson, Chairperson ATTEST: June S. Greek, Secretary APPROVED AS TO FORM: 394/015610-0070 42 468847.02 a01/20/04 -3- M. Katherine Jenson Agency Counsel 394/015610-0070 4r __ 468847.02 a01/20/04 43 F: � 1GGGI'[�1GV ,c �c p� OF9 COUNCILIRDA MEETING DATE: January 20, 2004 ITEM TITLE: Consideration of Adoption of a Resolution of the La Quinta Redevelopment Agency Approving its Report to City Council and Authorizing Transmittal of the Text of the Amendment to the Redevelopment Plan for La Quinta Redevelopment Project No. 2 and the Report to the City Council of the City of La Quinta RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: N Adopt a Resolution of the Redevelopment Agency approving the Report to City Council and authorizing transmittal of the text of the Amendment to the Redevelopment Plan for La Quinta Redevelopment Project No. 2 and the Report to the City Council of the City of La Quinta. FISCAL IMPLICATIONS: None. BACKGROUND AND OVERVIEW: In July 2003, the Redevelopment Agency directed staff to initiate an Amendment to the Redevelopment Plan for La Quinta Redevelopment Project No. 2 ("Amendment"). The purpose was to increase the limit on the amount of tax increment revenue the Agency may receive from La Quinta Redevelopment Project Area No. 2 ("Project Area No. 2") from $400,000,000 to $1,500,000,000. An analysis of the tax increment receipts and anticipated growth in Project Area No. 2 assessed values indicate that the existing $400,000,000 tax increment limit would be achieved by Fiscal Year 2020- 2021, if property values grow at a rate of 3% per annum. If growth exceeds this amount (historical increases in assessed values have ranged from 10% to 26% per annum), this limit would be achieved sooner. The Redevelopment Plan for Project No. 2 ("Redevelopment Plan") expires in 2029 with the Agency receiving tax increment for indebtedness incurred before that date until 2039. Reaching the tax increment revenue limit prior to the 2039 date would impair the Agency's ability to retire existing Project No. 2 tax allocation bonds and City General Fund loans, limit the initiation of 1 44 new redevelopment initiatives that address blight within Project Area No. 2, and weaken the Agency's efforts to increase and improve the supply of housing affordable to very low, low and moderate income households. The July 2003 Agency action initiated the Amendment process. Subsequently, the Planning Commission has reviewed and approved the Amendment, Agency staff has consulted with affected taxing agencies regarding the potential fiscal impacts resulting from the Amendment, and a community forum was held to review the Amendment with property owners, business owners and residential tenants. The proposed Amendment would modify the language contained in Section (702) Tax Increments of the Redevelopment Plan as follows: The number of dollars of taxes that. may be divided and allocated to the Agency pursuant to Section 33670 of the Redevelopment Law shall not exceed $1,500,000,000 dollars, except by amendment of this Plan. Such limitation is exclusive of: The strikethrough text above would be deleted and a new cumulative limit of $1,500,000,000 would be established. No other modifications to the Redevelopment Plan are being proposed. Attached (Attachment 1) is the Report to the City Council on the Redevelopment Plan Amendment ("Report"). This Report summarizes the reasons for the Amendment, the conditions of blight that remain in Project Area No. 2 that will be addressed by the Amendment, presents the report and recommendations of the Planning Commission, and summarizes the Agency's consultations with affected taxing agencies, property owners and the community. The Redevelopment Law provides that the Agency shall prepare the Report, and transmit the text of the Redevelopment Plan Amendment and the Report to the City Council prior to the public hearing on the Amendment. 2 02 45 FINDINGS AND ALTERNATIVES: The alternatives available to the Agency Board include: 1. Adopt a Resolution of the Redevelopment Agency approving the Report to City Council and authorizing transmittal of the text of the Amendment to the Redevelopment Plan for La Quinta Redevelopment Project No. 2 and the Report to the City Council of the City of La Quinta; or 2. Do not adopt a Resolution of the Redevelopment Agency approving the Report to City Council and authorizing transmittal of the text of the Amendment to the Redevelopment Plan for La Quinta Redevelopment Project No. 2 and the Report to the City Council of the City of La Quinta; or 3. Provide staff with alternative direction. Respectfully submitted, Jer� Herrrian Co munity Development Director Attachments: 1. Report to Council Approved for submission by: -rkz'vv%P. G lou P)p Thomas P. Genovese, Executive Director 3 �- 03 46 RESOLUTION NO. RA A RESOLUTION OF THE LA QUINTA REDEVELOPMENT AGENCY APPROVING THE REPORT TO COUNCIL FOR THE PROPOSED AMENDMENT TO THE REDEVELOPMENT PLAN FOR LA QUINTA REDEVELOPMENT PROJECT NO. 2, AND TRANSMITTING THE TEXT OF THE PROPOSED AMENDMENT AND THE REPORT TO COUNCIL TO THE CITY COUNCIL OF THE CITY OF LA QUINTA REPORT TO COUNCIL WHEREAS, the La Quinta Redevelopment Agency ("Agency") is a public body, corporate and politic, duly created, established, and authorized to transact business and exercise its powers, under and pursuant to the Community Redevelopment Law (Part 1 of Division 24 (commencing with Section 33000) of the Health and Safety Code of the State of California); and WHEREAS, the Redevelopment Plan for La Quinta Redevelopment Project No. 2 ("Redevelopment Plan") was adopted on May 16, 1989 by Ordinance No. 139 of the City of La Quinta ("City"), which established a redevelopment project known and designated as La Quinta Redevelopment Project No. 2 ("Project No. 2"); and WHEREAS, the Redevelopment Plan was amended by a technical amendment thereto by Ordinance No. 259, adopted on December 20, 1994, to conform the Redevelopment Plan to the requirements of State law, Assembly Bill 1290, Ch. 942 of Stats. 1993 ("AB1290 Amendment"); and WHEREAS, the Redevelopment Plan as amended by the AB1290 Amendment is hereinafter referred to as the "Plan;" and WHEREAS, the Plan delineates a redevelopment project area known and designated as "Project Area No. 2;" and WHEREAS, the Agency desires to consider an Amendment to the Plan that increases the limitation on the number of dollars that may be allocated to the Agency from Project No. 2 pursuant to Health and Safety Code Section 33670(b) ("Amendment"),; and WHEREAS, the proposed Amendment would not modify the boundaries of Project Area No. 2 nor any other provision of the Plan other than as set forth in the previous Recital; and G:\WPDOCS\CCReso-COA\RDA Proj 2 Rpt to Council Reso.DOC 04 47 Resolution No. RA 2004- Report to Council — Amendment to Redevelopment Plan Project No. 2 Adopted: January 20, 2004 WHEREAS, pursuant to Sections 33346 and 33356 of the Community Redevelopment Law, before a proposed redevelopment plan amendment is submitted to the legislative body of the community the Redevelopment Agency shall submit the proposed Amendment to the Planning Commission for its report and recommendation; and WHEREAS, on December 9, 2003 the Planning Commission of the City of La Quinta reviewed the Amendment and adopted its report that recommended that the City Council of the City of La Quinta ("City Council") approve the Amendment; and WHEREAS, pursuant to Section 33356 of the Community Redevelopment Law, the Redevelopment Agency is required to submit the proposed Redevelopment Plan Amendment to the legislative body; and WHEREAS, pursuant to Section 33352 and 33356 of the Community Redevelopment Law, every Redevelopment Plan or Amendment to a Redevelopment Plan submitted by a Redevelopment Agency to the legislative body shall be accompanied by a report to the legislative body on the Redevelopment Plan or the Redevelopment Plan Amendment; and WHEREAS, the Agency has caused the Report to City Council on the Amendment to be prepared in accordance with Section 33352 of the Community Redevelopment Law. NOW, THEREFORE, THE LA QUINTA REDEVELOPMENT AGENCY DOES HEREBY RESOLVE, ORDER, AND DETERMINE AS FOLLOWS: Section 1. Each of the above recitals is true and correct and are incorporated herein. Sects 2. The text of the proposed Amendment, in the form attached hereto and incorporated herein as Exhibit A, is hereby transmitted to the City Council for its review and consideration. Section 3. The Report to Council, in the form attached hereto and incorporated herein as Exhibit B, is hereby approved and is hereby transmitted to the City Council for its review in conjunction with its consideration of the proposed Amendment. 05 Resolution No. RA 2004- Report to Council — Amendment to Redevelopment Plan Project No. 2 Adopted: January 20, 2004 PASSED, APPROVED and ADOPTED this 20th day of January 2004, by the following vote: AYES: NOES: ABSTAIN: ABSENT: Terry Henderson, Chair La Quinta Redevelopment Agency ATTEST: JUNE S. GREEK, CIVIC, Agency Secretary La Quinta Redevelopment Agency APPROVED AS TO FORM: M. KATHERINE JENSON, Agency Counsel La Quinta Redevelopment Agency 43 Resolution No. RA 2004- Report to Council — Amendment to Redevelopment Plan Project No. 2 Adopted: January 20, 2004 EXHIBIT A PROPOSED TEXT AMENDMENT TO THE REDEVELOPMENT PLAN Section, (702) Tax Increments of the Redevelopment Plan for the La Quinta Redevelopment Project No. 2 shall be amended as follows: The number of dollars of taxes that may be divided and allocated to the Agency pursuant to Section 33670 of the Redevelopment Law shall not exceed $260-rflillieA detlam $1,500,000,000, except by amendment of this Plan. Note: The strikethrough text would be deleted. 0( 50 EXHIBIT "B" La Quinta Redevelopment Project No. 2 Amendment January 14, 2004 7&495 Calle Tampico a Quinta, Callomia 92253 217 Forth Main Street, Suite 300 Santa, Ana, California 92701-4822 Phone: (714) 541-4585 Fax: (714) 836-1748 E-Mail: info@webrsg.com �1 Introduction...................................................................... Intro-1 Reasons for the Amendment ................................................. A-1 Background.................................................................................................A 1 Reasons for the Amendment.....................................................................A 1 Agency Tax Increment Receipts/Affordable Housing ............................ A 2 A Description of the Physical and Economic Conditions Existing in Project Area No. 2............................................... 0-1 Remaining Blighting Conditions in Project Area No. 2 ..........................B-1 Five -Year Implementation Plan ............................................. C-1 An Explanation of Why the Elimination of Blight and the Redevelopment of the Project Area cannot Reasonably be Expected to be Accomplished by Private Enterprise Acting Alone or by the Legislative Body's Use of Financing Alternatives other than Tax Increment Financing ................ D-1 Method of Financing and Economic Feasibility of the Plan ...E-1 Taxing Agency Agreements...................................................................... E-2 Methodof Relocation..............................................................F-1 An Analysis of the Preliminary Plan ...................................... 6-1 The Report and Recommendations of the Planning Commission........................................................................... H-1 The Report and Recommendations of the Project Area Committee.............................................................................. 1-1 A Statement of Conformance to the General Plan.................J-1 The Mitigated Negative Declaration ...................................... K-1 W 52 Report of the County Fiscal Officer ........................................ L-1 Neighborhood Impact Report ................................................ M-1 Project Area Demographics...................................................................... M-1 Relocation................................................................................................... M-1 Traffic Circulation...................................................................................... M-2 Environmental Ouality............................................................................... M-2 Availability of Community Facilities and Services ................................. M-2 Effect on School Population and Ouality of Education ......................... M-3 Property Taxes and Assessments M-3 Low- and Moderate -Income Housing Programming .............................. M-3 A Summary of the Agency's Consultations with Affected Taxing Entities....................................................................... N-1 10 CADOCUMENTS AND SETTINGS MVVYERU)CAL SEMNGS1TEMPORARY INTERNE? FILMOL.KAREPORTTOCOUNCIL0112MDM 53 Introduction 1 L II IL•,• A • This document is the Report to the City Council ("Report") that describes the reasons for the proposed amendment to the La Quinta Redevelopment Project No. 2 ("Project No. 2"). The La Quinta Redevelopment Agency ("Agency") is processing an amendment to the Redevelopment Plan for the La Quints Redevelopment Project No. 2 ("Redevelopment Plan") to increase the cumulative tax increment limit from $400,000,000 to $1,500,000,000 ("Amendmenf'). The Agency is pursuing the Amendment to insure that there is sufficient financial capacity to: • Continue implementing projects and programs that eliminate blight; • Accommodate repayment of existing bond and other debt obligations; and • Facilitate new affordable housing opportunities. No other changes to the Redevelopment Plan or to the boundaries of the La Quinta Redevelopment Project Area No. 2 ("Project Area No. 2'9 are being proposed by this amendment. This report has been prepared in accordance with the California Community Redevelopment' Law, Health and Safety Code Section 33000 et seq. ("Lave') and presents the following information: SECTION A. Reasons for the Amendment. SECTION B. A Description of the Physical and Economic Conditions Existing in Project Area No. 2. SECTION C. Five -Year Implementation Plan. SECTION D. An Explanation of Why the Elimination of Blight and the Redevelopment of the Project Area cannot Reasonably be Expected to be Accomplished by Private Enterprise Acting Alone or by the Legislative Body's use of Financing Alternatives other than Tax Increment Financing. ROSENOW SPEVACEK GROUP, INC. PAGE INTRO-1 11. 54 REPORT TO THE CITY COUNCIL LA QUINTA REDEVELOPMENT PROJECT NO.2 AMENDMENT SECTION E. Method of Financing and Economic Feasibility of the Plan. SECTION F. The Method of Relocation SECTION G. An Analysis of the Preliminary Plan. SECTION H. The Report and Recommendations of the Planning Commission. SECTION I. Report and Recommendation of the Project Area Committee. SECTION J. A Statement of Conformance to the General Plan. SECTION K. The Mitigated Negative Declaration. SECTION L. Report of the County Fiscal Officer. SECTION M. Neighborhood Impact Report SECTION N. A Summary of the Agency's Consultations with Affected Taxing Entities The Law permits redevelopment agencies to amend redevelopment plans to modify limitations, expand boundaries, add public facility and infrastructure projects, and merge redevelopment project areas to facilitate the elimination of persistent blighting conditions. The Law prescribes a specific process involving preparation of various documents, including this Report, consultation with affected taxing agencies, and participation and input from affected residents, business owners, property owners and other stakeholders. The Amendment is scheduled for consideration by the Agency and City Council at a joint public hearing on January 20, 2004. All Project Area No. 2 property owners, business owners, and affected taxing agencies have been notified of this joint public hearing by mail. 12 ROSENOW SPEVACEK GROUP, INC. PAGE INTRO-2 JJ Section The Redevelopment Plan was adopted in 1989 and subsequently amended in 1994 to incorporate modifications required by AB 1290. 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. The Redevelopment Plan established Project Area No. 2, which entails 3,116 acres of property that is developed with commercial, residential, and institutional uses. Encompassing the northern area of the City, Project Area No. 2 is bounded by Avenue 50 to the south, Fred Waring Drive (Avenue 44) to the north, Washington Street to the west, and Jefferson Street to the east. Property west of Washington Street, north of the prolongation of the future alignment of Avenue 48; property surrounding Point Happy, north of Highway 111 and west of Washington Street; and property easterly of Jefferson Street and north of Highway 111 is also included in Project Area No. 2. When the Redevelopment Plan was adopted, the California Community Law required that a limit be established 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 year's 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 13 ROSENOW SPEVACEK GROUP, INC. PAGE A-1 56 REPORT TO THE CITY COUNCIL LA QUINTA REDEVELOPMENT PROJECT NO.2 AMENDMENT conservative forecasts (3% annual property value growth increases) indicate that the existing $400,000,000 tax increment limit will be achieved by fiscal 2020-21, or earlier if annual growth exceeds 3%. Reaching the tax increment revenue limit impacts the Agency's redevelopment efforts in the following ways: The term of the Redevelopment Plan runs to May 2029; the Agency has an additional 10 years to receive tax increment revenue or until 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 21.3% of annual debt service payments are funded by Project Area No. 2 Housing Fund revenue until fiscal year 2025-26, and the 1998 non -housing bonds of which 100% of annual debt service payments are funded by non -Housing Fund revenue 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 to retire the 1998 Bonds, leaving no funds to repay outstanding General Fund loan obligations due to the City of La Quinta. The Agency's Bond Counsel and Underwriter have determined that new housing bonds that pledge Project Area No. 2 housing fund revenue cannot be issued, given that the Agency would achieve the existing tax increment revenue limit at least 20 years prior to the term of the Redevelopment Plan. This severely impacts the Agency's ability to achieve its affordable housing obligations. Project Area No. 2 has the projected capacity to support an additional $57.0 million of affordable housing bonds during the remaining term of the Redevelopment Plan. When the Redevelopment Plan was adopted, the Agency negotiated taxing agency agreements will all of the taxing agencies that receive tax increment revenue from Project Area No. 2. Through these agreements, the taxing agencies received 71 % of all tax increment revenue generated in Project Area No. 2, with the Agency receiving the remaining 29%. Of this amount, 20% is deposited into the Agency's Housing Fund, and 9% is pledged towards non -housing redevelopment projects. Thus, a majority of ROSENOW SPEVACEK GROUP, INC. PAGE A-2 145 t REPORT TO THE CITY COUNCIL LA QUINTA REDEVELOPMENT PROJECT NO.2 AMENDMENT the tax increment revenue the Agency receives from Project Area No. 2 is pledged towards increasing and improving the supply of affordable housing. Property in Project Area No. 2 is primarily designated for residential uses generating an acute need to secure affordable housing with long-term covenants. Pursuant to the Agency's Second Amended Housing Affordability Compliance Plan, the Agency must secure 636 affordable dwellings by 2029, of which 254 must be affordable to very low-income households. This is based upon the L aw's requirement that at least 15 percent of all privately developed or substantially rehabilitated units in Project Area No. 2 must be affordable to very low, low and moderate - income households, and at least 40 percent of this amount must be affordable to very low-income households. To date, the Agency has secured 420 units of affordable housing in Project Area No. 2, of which 75 are affordable to very low-income households. Since a majority of the tax increment revenue the Agency receives from Project Area No. 2 is pledged towards funding programs and projects that produce affordable dwellings, the constraints imposed by the existing tax increment revenue limit on the issuance of additional housing bonds will impair the Agency's ability to secure these units and achieve its housing mandates. ROSENOW SPEVACEK GROUP, INC. PAGE A-3 15 58 Section JL A Description of the Physical and Economic Conlditions E)dsdng in Project Area No. 2 When Project Area No. 2 was established, the Law provided that pervasive physical and economic blight, and public infrastructure and facility deficiencies, must be present to support establishing a redevelopment project. In conjunction with documenting blight and infrastructure/facility deficiencies, a redevelopment agency had to also demonstrate that both the private sector and the community acting alone did not have the legal or financial capacity to adequately address these conditions. The Law also requires redevelopment agencies to insure that at least 15% of all privately developed or substantially rehabilitated housing units are affordable to very low, low and moderate -income households. Of these, 40% must be affordable to very low-income households. In securing affordable housing, a redevelopment agency must gain covenants to insure that the dwellings remain affordable to the target households for 45 years, for single-family dwellings, and 55 years, for multi -family dwellings. Since Project Area No. 2 was established in 1989, the Agency has embarked on a multifaceted program to address blight, correct infrastructure deficiencies, and produce affordable housing. The following narrative summarizes the blighting conditions present in Project Area No. 2 when it was established, and those conditions that still exist today. This data was compiled from the February 1989 Report to Council for the Proposed La Quinta Redevelopment Project No. 2, interviews with City staff and field surveys conducted by RSG staff in September 2003. The primary purpose for establishing Project Area No. 2 was to assist with funding infrastructure improvements that stimulated private sector investment in commercial, resort and residential development. Both flood control and circulation system deficiencies, and the costs associated with correcting these deficiencies, were cited as major impediments to private ROSENOW SPEVACEK GROUP, INC. PAGE B-1 16 59 REPORT TO THE CITY COUNCIL LA OUINTA REDEVELOPMENT PROJECT NO.2 AMENDMENT sector investment. The City of La Quinta could not adequately fund the required flood control and circulation system improvements since it was a low property tax city (the City receives $0.07 of every $1.00 of property tax revenue paid by Project Area No. 2 property owners), and did not have retail or resort uses that generated sufficient sales and transient occupancy tax revenue. In addition to infrastructure deficiencies, economic development activities in Project Area No. 2 were impacted by parcels subdivided in a manner that limited their development in accordance with the City's General Plan due to either their unusual configuration (to accommodate natural land forms or features) or their small size. The Redevelopment Plan includes $69.8 million of projects to address these deficiencies; $63.4 million in flood control and street system improvement projects and $6.5 million of community development programs (to address irregularly shaped properties). Since 1989, the Agency has funded major infrastructure improvement projects either in conjunction with private developers and landowners, or with the City of La Quinta. To date, approximately 70 percent of these improvements have been implemented, which has improved the economic vitality of Project Area No. 2. This leaves approximately $20.9 million of non -housing improvements that should be addressed to eliminate the remaining infrastructure deficiencies and property configuration impediments. The existing tax increment limit impacts the Agency's ability to fund these improvements. The Law provides that the Agency must insure that 15 percent of all privately developed or substantially rehabilitated units in Project Area No. 2 must be affordable to very low, low and moderate -income households. This mandate must be achieved during the life of the Redevelopment Plan or by 2029. Based upon the projections contained in the Agency's Second Amended Housing Affordability Compliance Plan, the Agency must secure 636 affordable units of which 254 must be affordable to very low-income households. To date, the Agency has secured 420 affordable units in Project Area No. 2, of which 75 are affordable to very low-income households. This leaves the need to secure an additional 37 units affordable to low and moderate -income households, and 179 units affordable to very low-income households. The average Agency per unit investment to secure low and moderate -income units is $106,000, and the average per unit investment to secure very low-income units is $175,000. Using the remaining number of units the Agency must secure and the average per unit cost to obtain each unit by income category, the Agency must invest a total of $35.2 million in today's dollars to secure the required number of affordable units to achieve its affordable housing mandates. The existing tax increment limit impacts the ability to timely achieve these ROSENOW SPEVACEK GROUP, INC. PAGE 6-2; 17 l REPORT TO THE CITY COUNCIL LA QUINTA REDEVELOPMENT PROJECT NO.2 AMENDMENT units because it prohibits the Agency from issuing additional housing bonds in order to underwrite affordable housing development. Project No. 2 has $42.0 million of pending funding obligations it must address (not including interest expense on outstanding bonds and loans) to complete its non -housing redevelopment obligations. These are comprised of: $20.9 million of non -housing redevelopment projects to achieve to Redevelopment Plan's objectives; $10.6 million of outstanding bond debt; and approximately $10.5 million in outstanding loans due to the General Fund of the City of La Quinta. These loans represent advances the City made to fund operations and non -housing redevelopment projects for Project No. 2. With the current $400,000,000 tax increment limit, the Agency will have the capacity to repay the bond debt, but it will not have the capacity to complete the $20.9 million of non -housing redevelopment projects nor retire the City general Fund loans. This is because if the current tax increment limit remain in place, the Agency is forecasted to retain $28.9 million in non -housing tax increment revenue (after payments are made to taxing agencies) by the time the $400,000,000 tax increment limit is achieved in fiscal 2020-21. Remaining non -housing bond debt service payments are projected to total $12.9 million leaving only $16.0 to fund the remaining $20.9 million of redevelopment projects, and retire the $10.5 million of outstanding General Fund debt. 18 ROSENOW SPEVACEK GROUP, INC. PAGE B-3 61 Section MMQ Fhoe-Year Implementation Plan The amended Redevelopment Plan will continue to utilize the existing Five -Year Implementation Plan ("Implementation Plan") to guide redevelopment activities in Project Area No. 2. This Implementation Plan was adopted in July 1999, was updated on May 15, 2002 and remains in effect through June 30, 2004. 19 ROSENOW SPEVACEK GROUP, INC. PAGE C-1 62 Section LJD_ An Explanation of Why the Elimination of Blight and the of the Project Aroa cannot .SaMs-bly be to _be plashed by Pnvate. Enterprise Acts Arne or by the Legislative BodyPs Use oi Financing other than Tax Inurement Financing The primary purpose for establishing Project Area No. 2 was to assist with funding infrastructure improvements that stimulated private sector investment in commercial, resort and residential development. Both flood control and circulation system deficiencies, and the costs associated with correcting these deficiencies, were cited as major impediments to private sector investment. The City of La Quinta could not adequately fund the required flood control and circulation system improvements since it was a low property tax city (the City receives $0.07 of every $1.00 of property tax revenue paid by Project Area No. 2 property owners), and did not have retail or resort uses that generated sufficient sales and transient occupancy tax revenue. In addition to infrastructure deficiencies, economic development activities in Project Area No. 2 were impacted by parcels subdivided in a manner that limited their development in accordance with the City's General Plan due to either their unusual configuration (to accommodate natural land forms or features) or their small size. Since the Redevelopment Plan was adopted, the Agency has worked with property owners and developers to fund some or all of the costs associated with constructing infrastructure improvements. The Agency took this path because property owners and developers demonstrated that without public investment they could not economically build the on -site improvements required for their development proposals and adequately fund off -site infrastructure improvements required to service these developments. In addition, rising housing costs limited the private sectors ability to address the community's affordable housing needs without public investment. Thus, the Agency has aggressively invested Project No. 2 tax increment revenue to generate facilitate affordable housing construction. 20 ROSENOW SPEVACEK GROUP, INC. PAGE D-1 63 REPORT TO THE CITY COUNCIL LA QUINTA REDEVELOPMENT PROJECT NO.2 AMENDMENT The Redevelopment Plan includes $69.8 million of projects to address these deficiencies; $63.4 million in flood control and street system improvement projects and $6.5 million of community development programs (to address irregularly shaped properties). Since 1989, the Agency has funded major infrastructure improvement projects either in conjunction with private developers and landowners, or with the City of La Quinta. To date, approximately 70 percent of these improvements have been implemented, which has improved the economic vitality of Project Area No. 2. This leaves approximately $20.9 million of non -housing improvements that should be addressed to eliminate the remaining infrastructure deficiencies and property configuration impediments: The existing tax increment limit impacts the Agency's ability to fund these improvements. The Law provides that the Agency must insure that 15 percent of all privately developed or substantially rehabilitated units in Project Area No. 2 must be affordable to very low, low and moderate -income households. This mandate must be achieved during the life of the Redevelopment Plan or by 2029. Based upon the projections contained in the Agency's Second Amended Housing Affordability Compliance Plan, the Agency must secure 636 affordable units of which 254 must be affordable to very low-income households. To date, the Agency has secured 420 affordable units in Project Area No. 2, of which 75 are affordable to very low-income households. This leaves the need to secure an additional 37 units affordable to low and moderate -income households, and 179 units affordable to very low-income households. The average Agency per unit investment to secure low and moderate -income units is $106,000, and the average per unit investment to secure very low-income units is $175,000. Using the remaining number of units the Agency must secure and the average per unit cost to obtain each unit by income category, the Agency must invest a total of $35.2 million in today's dollars to secure the required number of affordable units to achieve its affordable housing mandates. The existing tax increment limit impacts the ability to timely achieve these units because it prohibits the Agency from issuing additional housing bonds in order to underwrite affordable housing development. Project No. 2 has $42.0 million of pending funding obligations it must address (not including interest expense on outstanding bonds and loans) to complete its non -housing redevelopment obligations. These are comprised of: $20.9 million of non -housing redevelopment projects to achieve to Redevelopment Plan's objectives; $10.6 million of outstanding bond debt; and approximately $10.5 million in outstanding loans due to the General Fund of the City of La Quinta. These loans represent advances the City made to fund operations and non -housing redevelopment projects for Project No. 2. 21. ROSENOW SPEVACEK GROUP, INC. PAGE D-2 64 REPORT TO THE CITY COUNCIL LA OUINTA REDEVELOPMENT PROJECT NO.2 AMENDMENT With the current $400,000,000 tax increment limit, the Agency will have the capacity to repay the bond debt, but it will not have the capacity to complete the $20.9 million of non -housing redevelopment projects nor retire the City general Fund loans. This is because if the current tax increment limit remains in place, the Agency is forecasted to retain $28.9 million in non -housing tax increment revenue (after payments are made to taxing agencies) by the time the $400,000,000 tax increment limit is achieved in fiscal 2020-21. Remaining non -housing bond debt service payments are projected to total $12.9 million leaving only $16.0 to fund the remaining $20.9 million of redevelopment projects, and retire the $10.5 million of outstanding General Fund debt. 22 ROSENOW SPEVACEK GROUP, INC. PAGE D-3 65 Section Lf�_ Method of Financing and Economic Feasibility of the Plan Redevelopment of the Project Area No. 2 has been and will continue to be financed as follows: ■ Property tax increment; ■ Agency bonds; ■ Financial assistance from the City, State of California and/or Federal Government; and ■ Any other available and appropriate source. Since 1989, the primary means of financing redevelopment and housing activities has been property tax increment revenue, Agency bonds, and City loans. To date, the Agency has received $68.0 million in total tax increment revenue, of which $53.0 million has been paid to taxing agencies and $15.0 million to the Agency. Per the Redevelopment Plan, the revenue the Agency receives and pays to the taxing agencies is included in the cumulative $400.0 million tax increment revenue limit. The Agency has secured $11.2 million in tax allocation bonds ($6.7 million of non -housing bonds and $4.5 million of housing bonds) and approximately $9.57 million of City General Fund loans. The Amendment only modifies the $400,000,000 tax increment limit by increasing this limit to $1,500,000,000. No other provisions of the Redevelopment Plan are being modified. The proposed $1,500,000,000 tax increment limit was derived by preparing revenue projections for the remaining 36 years of the Redevelopment Plan that use a 3 percent per annum growth rate. If the Amendment is adopted, the Agency will fund the remaining housing and non -housing projects through a combination of tax allocation bonds and tax increment revenue. 23 ROSENOW SPEVACEK GROUP, INC. PAGE E-1 VG REPORT TO THE CITY COUNCIL LA QUINTA REDEVELOPMENT PROJECT NO.2 AMENDMENT The Agency currently has agreements with all of the taxing agencies that levy property taxes in Project Area No. 2. All of these payments are based upon gross tax increment revenue; the Agency must fund each taxing agencies share of the Housing Fund deposits (20% of gross tax increment revenue) from other retained tax increment revenue. The pertinent provisions of these agreements are summarized below: County of Riverside The Agency's Cooperation Agreement with the County of Riverside provides for full payment of the tax increment revenue generated by the County General Fund (25.53%), Library District (2.80%), and Fire District (6.02%) property tax levies. Additionally, the Agency is paying the County $2,050,000 over the next 11 years to reimburse the County for tax increment revenue generated by the County's General Fund property tax levy the Agency retained during the initial years of the Redevelopment Plan. Coachella Valley Community College District This agreement provides that the College District shall receive 50% of the tax increment revenue generated by the College District's 7.72% property tax levy. Riverside County Superintendent of Schools This agreement provides that the Superintendent of Schools shall receive 50% of the tax increment revenue generated by the Superintendent of Schools' 4.18% property tax levy. Coachella Valley Water District The agreement provides that the Water District shall receive 100% of the tax increment revenue generated by the Water District's 7.67% property tax levy. Coachella Valley Recreation and Park District The agreement provides that the Agency shall retain 100% of the tax increment revenue generated by the Park District's 2.13% property tax levy. This revenue, however, must be expended on identified park -related capital improvements. Due to the Agency's expenditure to acquire land 24 ROSENOW SPEVACEK GROUP, INC. PAGE E-2 67 REPORT TO THE CITY COUNCIL LA OUINTA REDEVELOPMENT PROJECT NO.2 AMENDMENT acquisition and make park improvements in Project Area No. 2, the Agency is entitled to retain the Park District's tax increment revenue until fiscal year 2003-04. After 2003-04, the Agency anticipates that it will continue to fund park -related projects with the Park District's share of annual tax increment revenue. Desert Sands Unified School District The agreement provides that the Agency shall retain 50% of the tax increment revenue generated by the School District's 37.16% property tax levy. The remaining 50% is paid to the School District. Coachella Valley Mosquito and Vector Control District The agreement provides that the Mosquito and Vector Control District shall receive 100% the tax increment revenue generated by its 1.41 % property tax levy. ROSENOW SPEVACEK GROUP, INC. PAGE E-3 25 68 Section The Agency adopted a Method of Relocation in March 1989 as part of approving the Redevelopment Plan. This document, which has been updated from time to time to conform to changes in State Law, will continue to guide Agency relocation activities in Project Area No. 2. Pursuant to the Law, if the Agency implements a project that results in relocation, no persons will be displaced prior to the provision of decent, safe and sanitary housing. ROSENOW SPEVACEK GROUP, INC. PAGE F-1 26 60 Section An Analysis of the Preliminary Plan The Preliminary Plan for the Amendment was approved by the City of La Quinta Planning Commission ("Planning Commission") on September 9, 2003 and accepted by the Agency on September 16, 2003. The Preliminary Plan described the boundaries of Project Area No. 2 and included general statements of the proposed land uses, layout of principal streets, population densities, building intensities, and building standards. It also addressed how the Amendment would attain the purposes of the Law. It discussed the conformance with the General Plan and generally reviewed potential impacts the Amendment would have on residents and the surrounding neighborhood. The Amendment conforms to the standards and provisions of the Preliminary Plan, as detailed below: • Proiect Area No. 2 Location and Description: This section of the Preliminary Plan describes the boundaries of Project Area No. 2. The Amendment does not propose any changes to these boundaries. • General Statement of Proposed Planning Elements: This section of the Preliminary Plan states that land uses, proposed layouts of principal streets, proposed population densities, proposed building intensities, and proposed building standards shall be subject to and controlled by the General Plan, Zoning Ordinance, and other local codes, as amended from time to time. The Amendment does not propose any changes to population or development densities or land use designations. • Attainment of the Purposes of the Law: This section of the Preliminary Plan describes how the current limit on cumulative tax increment revenue impairs the Agency's ability to address the remaining blighting conditions within Project Area No. 2 and significantly limit the Agency's ability to fund new affordable housing initiatives. Addressing remaining blight and the provision of affordable housing attain the purposes of the Redevelopment Law. 27 ROSENOW SPEVACEK GROUP, INC. PAGE G-1 70 REPORT TO THE CITY COUNCIL LA QUINTA REDEVELOPMENT PROJECT NO.2 AMENDMENT • Conformance to the General Plan: Both the Preliminary Plan and Redevelopment Plan conform to the standards, policies and provisions of the General Plan, as they exist or are hereafter amended. • General Impact of the Proposed Proiect Upon the Residents of the Added Area and Surrounding Neighborhoods: This section of the Preliminary Plan states that by amending the Redevelopment Plan, the Agency will gain additional financial capacity to facilitate additional infrastructure improvements, enhance economic development activities, improve community facilities, and improve existing and provide new affordable housing opportunities. Other impacts associated with the implementation of the Plan have been assessed and analyzed in the Mitigated Negative Declaration on the Redevelopment Plan, included in Section K of this Report, and the Neighborhood Impact Report, incorporated in Section M of this Report. ROSENOW SPEVACEK GROUP, INC. PAGE G-2 W Section -W The Rleport and Rlecommmndations of the Planning Commission On September 9, 2003, the Planning Commission adopted Resolution No. 2003-108 as its report and recommendation on the draft Plan. A copy of the Planning Commission's Report and the Resolution follows this page. 29 ROSENOW SPEVACEK GROUP, INC. PAGE H-1 72 REPORT TO THE CITY COUNCIL LA OUINTA REDEVELOPMENT PROJECT NO.2 AMENDMENT {Replace this page with a copy of the September 9 Planning Commission Resolution approving the Preliminary Plan.} ROSENOW SPEVACEK GROUP, INC. PAGE H-2 30 73 Section Because the Redevelopment Plan does not grant the Agency authority to acquire property by eminent domain, the Amendment does not modify the Redevelopment Plan to establish eminent domain authority, and because the Amendment does not take any other action that would require the formation of a Project Area Committee, the Agency was not required to forma Project Area Committee. 31. ROSENOW SPEVACEK GROUP, INC. PAGE 1-1 74 Section 14 �; I I ii. On September 9, 2003, the Planning Commission adopted Resolution No. 2003-108, determining that the Amendment and implementation activities described therein are in conformity with the General Plan of the City, pursuant to Government Code Section 65402. A copy of the Planning Commission resolution is included in Section H of this Report. ROSENOW SPEVACEK GROUP, INC. PAGE J-1 32 75 Section The Mitigated Negative Dedawation As part of the amendment process, the Agency processed a Mitigated Negative Declaration regarding the environmental impact of the Amendment. A copy follows. ROSENOW SPEVACEK GROUP, INC. PAGE K-1 33 76 . REPORT TO THE CITY COUNCIL LA OUINTA REDEVELOPMENT PROJECT NO.2 AMENDMENT {Replace this page with a copy of the Mitigated Negative Declaration.} 34 ROSENOW SPEVACEK GROUP, INC. PAGE K-2 7 w Section Report of the County Fiscal Officer Because the Amendment does not change the base year assessment roll, this report was not required for the Amendment. 35 ROSENOW SPEVACEK GROUP, INC. PAGE L-1 78 Section The Law requires that the following topics be addressed in the Neighborhood Impact Report: relocation, traffic circulation, environmental quality, availability of community facilities and services, effect on school population and quality of education, property assessments and taxes, and other matters affecting the physical and social quality of the neighborhood. The report must also discuss the impact the Redevelopment Plan will have on low- and moderate -income persons or families in the following areas: the number of dwelling units to be removed or destroyed; the number of persons expected to be displaced; the general location of housing to be rehabilitated or constructed; the number of dwelling units planned for construction or rehabilitation; the projected means of financing the aforementioned dwelling units; and the projected timetable for meeting the Redevelopment Plan's relocation, rehabilitation and replacement housing objectives. Project Area commercial is total land use. No. 2 is primarily developed with residential uses; the secondary use but represents a small percentage of The Redevelopment Plan does incorporate the California Relocation Assistance and Real Property Acquisition Guidelines as the Method of Relocation for Project Area No. 2. Prior to the commencing of property acquisition activity that would cause displacement of either businesses or residents, the Agency will adopt a relocation plan in conformance with State Guidelines. ROSENOW SPEVACEK GROUP, INC. PAGE W 79 REPORT TO THE CITY COUNCIL LA QUINTA REDEVELOPMENT PROJECT NO.2 AMENDMENT When the original Redevelopment Plan was adopted many traffic and circulation problems impacted traffic circulation in Project Area No. 2. The Redevelopment Plan includes numerous improvements to the traffic and circulation system to alleviate the existing deficiencies and provide for improvements that will mitigate future traffic increases resulting from new development. The basic goal of the Redevelopment Plan is to improve the overall environmental quality of Project Area No. 2 by addressing the existence of certain environmental deficiencies. The Redevelopment Plan seeks to remedy the substandard vehicular circulation, and storm drainage systems, utility infrastructure, park and recreation facilities, and other similar public improvements including provisions to fund needed community facilities. The Redevelopment Plan's objectives also direct the Agency's efforts toward providing and expanding housing opportunities for low- and moderate -income households citywide. A Mitigated Negative Declaration was prepared for the Amendment that indicates that the Amendment will not have an adverse effect on the overall environmental quality of Project Area No. 2. Future development will be reviewed by both the City and the Agency to ensure that architectural, landscaping and urban design principals are adhered to and that compatibility in uses is maintained. Additionally, where required, more specific environmental analysis will take place as required by CEQA. The County of Riverside provides police and fire protection services under contract to the City of La Quinta. The County also provides library services. Implementation of the Redevelopment Plan is not expected to adversely impact community facilities or services within the area. The Amendment will not alter the delivery of these services because it does not alter the allocation of property tax payments made to these agencies. 3'7 ROSENOW SPEVACEK GROUP, INC. PAGE M-2 so REPORT TO THE CITY COUNCIL LA QUINTA REDEVELOPMENT PROJECT NO.2 AMENDMENT The Desert Sands School District provides public education services for elementary and high school -aged children. The Coachella Valley Community College District provides post high school education services. The Amendment will not alter the delivery of these services because it does not alter the allocation of property tax payments made to these agencies. The Amendment will not alter the allocation ' pf property tax increment revenue. It will increase the amount of tax increment revenue the Agency may receive from Project Area No. 2, but this will not increase property taxes or impose new or additional assessments. A. Number of Dwelling Units Housing Low- and Moderate -Income Households Expected to be Removed by the Redevelopment Project Redevelopment Plan implementation activities may result in the displacement of low- and moderate -income households will be displaced by Redevelopment Plan implementation activities. The Amendment would provide the Agency with the additional financial capacity to implement projects that lead to the acquisition and redevelopment of mobile home parks in Project Area No. 2. These are older properties that have unsafe and unsanitary conditions. With additional tax increment revenue capacity, the Agency would have the financial capability to acquire these parks and redevelopment them with new residential uses. Since the Agency has the need to secure additional dwellings that are affordable to very low, low and moderate -income households, the Agency intends to replace any displaced dwellings with new dwelling that are affordable to households in the income categories of those displaced. If future specific implementation activities impact housing in Project Area No. 2, the number of units will be identified. This responsibility is set forth in Section 512 of the Redevelopment Plan. As such and in accordance with the Law, whenever dwelling units housing persons and families of low- or moderate -income, are destroyed or removed from the low- and moderate -income housing market as part of a redevelopment project, the Agency shall, within four years of such destruction or removal, rehabilitate, develop or construct, or cause to be rehabilitated, developed or We ROSENOW SPEVACEK GROUP, INC. PAGE M-3 81 REPORT TO THE CITY COUNCIL LA OUINTA REDEVELOPMENT PROJECT NO.2 AMENDMENT constructed, for rental or sale to persons and families of low- or moderate - income an equal number of replacement dwelling units at affordable rents within the City. Pursuant to Section 33413 of the Law, at least 30 percent of all new or rehabilitated dwelling units developed within Project Area No. '2 by the Agency shall be available at affordable costs for persons and families of low- and moderate -income; and of such 30 percent, no less than 50 percent thereof shall be available for and occupied by very low-income households. At least 15 percent of all new or rehabilitated units developed within Project Area No. 2 by public or private entities or persons other than the Agency shall be available at affordable cost for persons and families of low- and moderate -income; and of such 15 percent, not less than 40 percent thereof shall be available for and occupied by low-income households. The percentage requirements set forth in Section 532 of the Redevelopment Plan shall apply independently of the requirements of Section 531 of the Redevelopment Plan and in the aggregate to the supply of housing to be made available pursuant to this Section and not to each individual case of rehabilitation, development or construction of dwelling units. Pursuant to the Law, not less than 20 percent of all taxes which are allocated to the Agency pursuant to subdivision (b) of Section 33670 of the Law and Section 702(2) of the Redevelopment Plan shall be used by the Agency for the purposes of increasing and improving the City's supply of low-, very low- and moderate -income housing available at affordable housing cost, as defined by the Law. All non-residential persons or businesses displaced by the Agency will be assisted in finding other suitable locations and facilities. The Agency shall assist these persons or businesses in the methods set forth in the Agency's Method of Relocation as outlined in the Redevelopment Plan. Additionally, the Agency shall extend reasonable preferences to persons who are engaged in business in Project Area No. 2 to re-enter into business within Project Area No. 2 if they otherwise meet the requirements prescribed by the Redevelopment Plan. B. Number of Persons and Families of Low- and Moderate -Income Expected to be Displaced by the Redevelopment Project None at this time C. General Location of Replacement Low- and Moderate -Income Housing to be Rehabilitated, Developed and Constructed The Agency is bound by the Law to replace within four years, by a variety of means, any low- and moderate -income dwelling units removed by a 39 ROSENOW SPEVACEK GROUP, INC. PAGE M-4 82 REPORT TO THE CITY COUNCIL LA QUINTA REDEVELOPMENT PROJECT NO.2 AMENDMENT project. A commitment to do so is contained in Section 531 of the Redevelopment Plan. Construction of replacement low- and moderate -income housing will be dependent upon land availability, market conditions and availability of funds. The Agency's present intention is to develop a series of mixed income developments throughout Project Area No. 2. D. Number of Dwelling Units Housing Persons of Low- and Moderate -Income Planned for Construction or Rehabilitation Other than Replacement Housing Based upon the projections contained in the Agency's Second Amended Housing Affordability Compliance Plan, the Agency must secure 636 affordable units of which 254 must be affordable to very low-income households. To date, the Agency has secured 420 affordable units in Project Area No. 2, of which 75 are affordable to very low-income households. This leaves the need to secure an additional 37 units affordable to low and moderate -income households, and 179 units affordable to very low-income households. E. Projected Means of Financing Rehabilitation and New Construction of Housing for Low- and Moderate -Income Households The Agency intends to utilize tax increment revenues of not less than 20 percent as provided by Section 33670 of the Law. Agency will also cooperate with the City to pool funds and resources beyond the tax increment set aside funds if it is determined to be necessary by both bodies. F. Projected Timetable for Meeting the Redevelopment Plan's Relocation, Rehabilitation and Replacement Housing Objectives All relocation activities will comply with timeframes established by Title 25, Chapter 6 of the California Administrative Code and Section 33413 of the Health and Safety Code. Further, all replacement housing requirements will be met within the four year time frame established by the Law. PAGE M-5 M MOW ROSENOW SPEVACEK GROUP, INC. A Summary of the Agency Consultations with Affected Twang Entities The Agency currently has agreements with all of the taxing agencies that levy property taxes in Project Area No. 2: • County of Riverside • City of La Quinta • Coachella Valley Community College District • Riverside County Superintendent of Schools • Coachella Valley Water District • Coachella Valley Recreation and Park District • Desert Sands Unified School District • Coachella Valley Mosquito and Vector Control District • Coachella Valley Public Cemetery District • Coachella Valley Resource Conservation District On September 17, 2003, these entities were mailed, via certified mail, the Statement of Preparation of the Redevelopment Plan Amendment. On November 19, 2003, the Preliminary Report and Draft Redevelopment Plan were transmitted via certified mail to the taxing entities. Finally, on December 23, 2003, all taxing agencies were mailed via certified mail the notice of joint public hearing scheduled for January 20, 2004. As a part of each of these transmittals, the Agency offered to consult with the affected taxing entities pursuant to Section 33328 of the Law. To date Agency staff has received inquiries from the Coachella Valley Mosquito and Vector Control District, the Coachella Valley Water District, and the Coachella Valley Park and Recreation District. The Mosquito and Vector Control District representative requested that the District's name be modified to reflect its new charge, to control both vectors and mosquitoes. The Water District requested additional copies of the Preliminary Plan and 41. ROSENOW SPEVACEK GROUP, INC. PAGE N-1 Preliminary Report. Finally, Agency staff is holding discussions with the Park and Recreation District regarding the park and recreation facilities that Agency has, and intends, to fund pursuant to the fiscal mitigation agreement. Since these meetings will occur after this Report has been published, Agency staff will provide additional information regarding these discussions at the January 20, 2004 Joint Public Hearing. ROSENOW SPEVACEK GROUP, INC. PAGE N-2 42 5 OF T1 9w COUNCIL/RDA MEETING DATE: January 20, 2004 ITEM TITLE: Consideration of an Agreement for Purchase and Sale Between the Redevelopment Agency and the Hammer Family Trust, Shirley Hammer, and William J. Hammer, for Property Located at the Northwest Corner of Avenue 48 and Dune Palms Road (APN 649-030- 034), Subject to Completion of Environmental Documentation as Required by the California Environmental Quality Act (CEQA) RECOMMENDATION: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Approve the form of the Agreement for Purchase and Sale subject to the successful completion of the CEQA process, a Phase 1 Hazardous Materials Survey, and a real property appraisal, and the sale of the 2004 Agency Housing Bonds; and appropriate $75,000 from the unappropriated reserves of Agency's Project Area No. 2 Low and Moderate Income Housing Fund to fund costs associated with the initial deposit and commissioning the appraisal, hazardous materials survey and preliminary title report, and subject to further changes and/or modifications as approved by the Executive Director and legal counsel. FISCAL IMPLICATIONS: Purchasing this property will result in the expenditure of $14,505,480 of Low and Moderate Income Housing Bond fund proceeds. Facilitating the development of affordable housing on this property will result in the expenditure of additional Housing Fund revenue; this amount is not known at this time since a project has not been designed. Up to 10 acres of this property could be sold for commercial development which could generate an estimated $6.5 million in land sale income. BACKGROUND AND OVERVIEW: In March 2003, the Agency Board received a presentation regarding the status of the Agency's efforts to secure affordable dwellings with long-term covenants. The California Redevelopment Law provides that the Agency must insure that 15% of all residential dwellings developed, or substantially rehabilitated, in both Redevelopment Project Areas are affordable to very low, low and moderate income households. Of these, 40% must be affordable to very low-income households. The affordable dwellings must have covenants that insure that they remain affordable for 45-years for single-family dwellings and 55 years for multi -family dwellings. Based upon existing and projected residential development in both Project Areas, the Agency must secure 1,927 affordable units by 2040, of which 771 must be affordable to very low-income households. Further, the Law provides that the Agency must insure that 1,672 affordable units are in place by 2040, of which 669 must be affordable to very low- income households. To date, the Agency has secured 894 affordable dwellings comprised of 194 units that are affordable to very low-income households and 700 affordable to low and moderate -income households. At the conclusion of the March 2003 discussions, the Agency Board directed staff to locate property that could be developed with affordable dwellings. One property was the 27.75 acre parcel Attachment 1) owned by the Hammer Family Trust, Shirley Hammer, and William J. Hammer. This property is designated in the General Plan for Medium Density Residential uses with a permitted density of up to 16 units per acre. The site can accommodate multi -family residential development; staff estimates that up to 280 units could be developed on 17.75 acres, leaving 10 acres for commercial uses. If the purchase is consummated, staff recommends that the Agency prepare a development program and solicit development proposals from apartment community builders. This activity would take place in the fall of 2004. Further, staff would actively market up to 10 acres of the site that could accommodate commercial development. Sale proceeds could be used to offset the initial purchase cost of the land used for housing. Finally, staff envisions buffering the single-family homes located in Rancho La Quinta (across Avenue 48) from the multi -family units that may be developed on this site with a multi -acre open area or passive park. Staff initiated discussions with the Hammer Family Trust in the fall of 2003 which surfaced general purchase parameters. These were reviewed with the Agency Board, who directed staff to submit a Letter of Intent in December 2003. The Hammer Family Trust, and Shirley and William Hammer accepted the purchase terms outlined in the Letter of Intent, which were subsequently incorporated into the Purchase and Sale Agreement (Attachment 2. The Agreement facilitates the acquisition of this property for $14,505,480 subject to certain conditions. These include: successfully completing the required environmental review process pursuant to CEQA; completing and accepting a Phase 1, and if needed, a Phase 2 hazardous materials survey; accepting the conditions of title; and the sale and receipt of proceeds from the Agency's 2004 Housing Bonds. The Agreement provides that the Agency will deposit $50,000 in escrow upon execution. This deposit will be refundable and will apply towards the purchase price. 02 F1161b If the Agency Board conditionally approves the Agreement, the next steps will entail: • Initiating and completing CEQA activities. • Commissioning a real property appraisal to confirm the purchase price; in formulating the purchase offer, staff used land sale comparables for like property within the Highway 111 corridor that indicate a 2003 land value range of $8.50 to $16.67 per square foot of land area. • Commissioning a Phase 1 hazardous materials survey to identify any potential environmental hazards. If environmental hazards are. identified, then a Phase 2 survey will be commissioned. • Commissioning a preliminary title report. • Completing activities related to the sale of the Agency's 2004 Housing Bonds. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency Board include: 1. Approve the form of the Agreement for Purchase and Sale subject to the successful completion of the CEQA process, a Phase 1 Hazardous Materials Survey, and a real property appraisal, and the sale of the Agency's 2004 Housing Bonds; and appropriate $75,000 from the unappropriated reserves of Agency's Project No. 2 Low and Moderate Income Housing Fund to fund costs associated with the initial deposit and commissioning the appraisal, hazardous materials survey and preliminary title report; or 2. Do not approve the form of the.Agreement for Purchase and Sale subject to the successful completion of the CEQA process, a Phase 1 Hazardous Materials Survey, and a real property appraisal and the sale of the Agency's 2004 Housing Bonds; nor appropriate $75,000 from the unappropriated reserves of Agency's Project No. 2 Low and Moderate Income Housing Fund to fund costs associated with the initial deposit and commissioning the appraisal, hazardous materials survey and preliminary title report; or 3. Provide staff with alternative direction. Respectfully submitted, CJerrHerm n, munity Development Director 03 Approved for submission by: Thomas P. Genovese, Executive Director Attachments: 1. Location map 2. Purchase and Sale Agreement 04 ATTACHMENT #1 0 �1111son Ul11111111113111111111 �r�r��nr,sa�g�at3r:�,r�r!ral �r, a �ar��aNr�at�r�ea o n O � O I� 0 O p O � m o Y.f a I I ,L. I.ro.lw � .LL C] AGREEMENT FOR PURCHASE AND SALE AND ESCROW INSTRUCTIONS BY AND BETWEEN (i) SHIRLEY A. HAMMER AND WILLIAM JOSEPH HAMMER, JR., AS TRUSTEES OF THE BYPASS TRUST HELD PURSUANT TO THE PROVISIONS OF THE WILL OF JOSEPH W. HAMMER, DECEASED, AS TO AN UNDIVIDED NINE AND 4643/10,000 PERCENT (9.4643%) INTERESTS TO SHIRLEY A. HAMMER AND WILLIAM JOSEPH HAMMER, JR., AS TRUSTEES OF THE MARITAL DEDUCTION TRUST A HELD PURSUANT TO THE PROVISIONS OF WILL OF SAID DECEDENT, AS TO AN UNDIVIDED SIX AND 3672/10,000 PERCENT (6.3672%) INTEREST; AND TO SHIRLEY A. HAMMER AND WILLIAM JOSEPH HAMMER, JR., AS TRUSTEES OF THE MARITAL DEDUCTION TRUST B HELD PURSUANT TO THE PROVISIONS OF THE WILL OF JOSEPH W. HAMMER, DECEASED, AS TO AN UNDIVIDED THIRTY-TWO AND 4055110,000 PERCENT (32.4055%) INTEREST, (ii) WILLIAM J. HAMMER, A SINGLE MAN, [ ], and (iii) SHIRLEY A. HAMMER, A [ ] (JOINTLY, SEVERALLY, AND COLLECTIVELY, SELLER") AND LA QUINTA REDEVELOPMENT AGENCY (6BUYER") 06 882/015610-0047 Q 466341.02 a01/16/04 V TABLE OF CONTENTS Page 1. PURCHASE PRICE.........................................................................................................2 1.1 Amount.................................................................................................................2 1.2 Payment of Purchase Price....................................................................................2 2. DUE DILIGENCE.......................................................................................................... 2 2.1 Title/Survey...........................................................................................................2 2.2 Environmental Condition...........................:.......................................................... 4 2.3 Environmental Documentation...........................................................................6 2.4 Estoppel Certificate.............................................................................................6 3. ESCROW..........................................................................................................................6 3.1 Opening of Escrow...............................................................................................6 3.2 Escrow Instructions...............................................................................................6 4. CLOSE OF ESCROW......................................................................................................7 4.1 Close of Escrow; Closing Date............................................................................. 7 4.2 Recordation; Release of Funds and Documents...................................................7 5. DELIVERY OF DOCUMENTS REQUIRED FROM BUYER AND SELLER.............7 5.1 Buyer's Obligations..............................................................................................7 5.2 Seller's Obligations...............................................................................................7 6. TITLE INSURANCE POLICY........................................................................................ 8 6.1 Title Policy............................................................................................................8 6.2 Payment for Title Policy....................................................................................... 8 7. REAL PROPERTY TAXES............................................................................................. 8 8. CONDITIONS PRECEDENT TO CLOSING................................................................. 8 8.1 Conditions Precedent to Buyer's Obligations.......................................................8 8.2 Conditions Precedent to Seller's Obligations.......................................................9 9. POSSESSION................................................................................................................10 10. ALLOCATION OF COSTS...........................................................................................10 10.1 Buyer's Costs......................................................................................................10 10.2 Seller's Costs.......................................................................................................10 11. INDEMNIFICATION.....................................................................................................10 12. CONDEMNATION........................................................................................................11 13. RIGHT TO EXCHANGE.............................................................................................11 14. MISCELLANEOUS.......................................................................................................12 14.1 Assignment.........................................................................................................12 882/015610-W47 466341.02 e01/16/04 _1_ Page 14.2 Attorney's Fees...................................................................................................12 14.3 Notices................................................................................................................12 14.4 Fair Meaning.......................................................................................................13 14.5 Headings.............................................................................................................13 14.6 Choice of Laws; Litigation Matters....................................................................13 14.7 Nonliability of Buyer Officials...........................................................................13 14.8 Gender; Number..................................................................................................13 14.9 Survival...............................................................................................................13 14.10 Time of Essence..................................................................................................13 14.11 Waiver or Modification.......................................................................................13 14.12 Broker's/Consulting Fees....................................................................................14 14.13 Duplicate Originals.............................................................................................14 14.14 Severability.........................................................................................................14 14.15 Exhibits...............................................................................................................14 14.16 Covenants of Seller.............................................................................................14 14.17 Corporate Authority............................................................................................15 14.18 Covenant Against Discrimination.......................................................................15 14.19 Entire Agreement; Amendment..........................................................................15 EXHIBITS Exhibit A Legal Description of the Property Exhibit B Form of Grant Deed Exhibit C Form of Affidavit of Non -Foreign Entity Exhibit D Rental Agreement 882/015610-0047 466341.02 a01/16104 08 93 DRAFT AGREEMENT FOR PURCHASE AND SALE AND ESCROW INSTRUCTIONS THIS AGREEMENT FOR PURCHASE AND SALE AND ESCROW INSTRUCTIONS ("Agreement") is made and entered into as of , 2004 ("Effective Date") by and between (i) SHIRLEY A. HAMMER AND WILLIAM JOSEPH HAMMER, JR., AS TRUSTEES OF THE BYPASS TRUST HELD PURSUANT TO THE PROVISIONS OF THE WILL OF JOSEPH W. HAMMER, DECEASED, AS TO AN UNDIVIDED NINE AND 4643/10,000 PERCENT (9.4643%) INTERESTS TO SHIRLEY A. HAMMER AND WILLIAM JOSEPH HAMMER, JR., AS TRUSTEES OF THE MARITAL DEDUCTION TRUST A HELD PURSUANT TO THE PROVISIONS OF WILL OF SAID DECEDENT, AS TO AN UNDIVIDED SIX AND 3672/10,000 PERCENT (6.3672%) INTEREST; AND TO SHIRLEY A. HAMMER AND WILLIAM JOSEPH HAMMER, JR., AS TRUSTEES OF THE MARITAL DEDUCTION TRUST B HELD PURSUANT TO THE PROVISIONS OF THE WILL OF JOSEPH W. HAMMER, DECEASED, AS TO AN UNDIVIDED THIRTY-TWO AND 4055/10,000 PERCENT (32.4055%) INTEREST, (ii) WILLIAM J. HAMMER, A SINGLE MAN, [ 1, and (iii) SHIRLEY A. HAMMER, A [ ] (jointly, severally, and collectively, the "Seller"), and the LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic ("Buyer"). As hereinafter used in this Agreement, the term "Buyer" shall mean Buyer and/or Buyer's nominee. RECITALS: A. Seller is the owner of that certain unimproved real property located northwest of the intersection of Avenue 48 and Dune Palms Road in the City of La Quinta ("City"), County of Riverside, State of California, more particularly described in the legal description attached hereto as Exhibit "A" ("Property"). B. Buyer has the authority to exercise the power of eminent domain to acquire real property in the La Quinta Redevelopment Project Area No. 2. In the event Seller had determined not to sell the Property to Buyer, Buyer's staff would have recommended to the Board of Directors of Buyer that Buyer, after providing notice to Seller and holding a hearing as required by applicable law, consider adopting a resolution of necessity and thereafter commencing proceedings to acquire the Property by the exercise of its power of eminent domain. C. Buyer desires to purchase the Property from Seller and Seller desires to sell the Property to Buyer, on the terms and conditions set forth herein. AGREEMENT: NOW, THEREFORE, in consideration of the foregoing recitals and mutual covenants herein contained, the parties hereto agree as follows: J. 09 882/015610-0047 466341.02 a01/16/04 94 DRAFT 1. PURCHASE PRICE. 1.1 Amount. Subject to the terms of this Agreement, Buyer hereby agrees to purchase the Property from Seller and Seller agrees to sell the Property to Buyer, for the purchase price of Twelve Dollars ($12.00) per gross square foot of land area, less any land area that is dedicated, granted, or otherwise transferred by the Seller prior to the "Close of Escrow" (as that term is defined in Section 4.1 (the "Purchase Price"). The Purchase Price is approximately Fourteen Million Five Hundred Five Thousand Four Hundred Eighty Dollars ($14,505,480). The exact amount of the Purchase Price will be determined upon Buyer's commission of a boundary survey (the "Boundary Survey") to determine the exact land area of the Property, and a property appraisal, to ascertain the value of the Property, all as further discussed in Section 2.1 hereof. 1.2 Payment of Purchase Price. The Purchase Price shall be paid in accordance with the following: 1.2.1 Within five (5) days after the "Opening of Escrow," Buyer shall deposit with "Escrow Holder" (as those terms are defined in Section 3.1) in "Good Funds" (as used in this Agreement, the term "Good Funds" shall mean a confirmed wire transfer of immediately available funds, cashier's or certified check drawn on or issued by the office of a financial institution located in Riverside County, or cash) the sum of Fifty Thousand Dollars ($50,000) as a good faith deposit (the "Deposit"). In the event the "Escrow" (as that term is defined in Section 3.1) closes, Escrow Holder shall apply the Deposit towards the Purchase Price. In the event the Escrow is terminated and fails to close, for any reason other than Buyer's default of the terms hereof, Escrow Holder shall promptly, but no later than five (5) days after said termination, refund to Buyer the Deposit. 1.2.2 On or before 5:00 p.m. on the business day preceding the "Closing Date" (as that term is defined in Section 4.1) or such earlier time as required by Escrow Holder in order to close Escrow on the Closing Date, Buyer shall deposit with Escrow Holder in Good Funds the Purchase Price, less the Deposit, and such additional funds as may be required to meet Buyer's portion of the closing costs as hereinafter provided. 2. DUE DILIGENCE. As used herein, the term "Due Diligence Period" shall refer to a period of time to expire upon the date that is ninety (90) days after the Effective Date. Buyer's obligation to consummate the transactions contemplated by this Agreement is subject to and conditioned upon Buyer's approval, deemed approval or waiver of the right to approve of the following contingencies set forth in this Section 2 (collectively, the "Contingencies"): 2.1 Title/Survey. Seller shall deliver to Buyer, within ten (10) days after the Effective Date of this Agreement, a preliminary title report prepared by First American Title Company (the "Title Company"), dated nor more than thirty (30) days earlier than the Effective Date describing the state of title of the Property together with copies of all underlying documents (collectively the "Preliminary Title Report"). Buyer may, at its sole cost and expense, obtain a current survey of the Property (the "Survey"), provided it does so within thirty (30) days after the Effective Date. Notwithstanding anything herein to the contrary, Seller shall be obligated to remove all monetary encumbrances against the Property excluding non -delinquent real property 882/O15610-ON7 _2_ - ! " 1 O 4MU1.02 ao1/16l04 95 DRAFT taxes and assessments. Buyer shall notify Seller in writing of any objections Buyer may have to title exceptions contained in the Preliminary Title Report or matters shown on the Survey no later than the date which is thirty (30) days after the later of (i) Buyer's receipt of the Preliminary Title Report or (ii) Buyer's receipt of the Survey within the time period set forth above ("Buyer's Objection Notice"). Buyer's approval or disapproval of the matters set forth in the Preliminary Title Report and the Survey may be granted or withheld in Buyer's sole and absolute discretion. Buyer's failure to provide Seller with a Buyer's Objection Notice within said period shall constitute Buyer's approval of all exceptions to title shown on the Preliminary Title Report and all matters shown on the Survey. Seller shall have a period of fifteen (15) days after receipt of Buyer's Objection Notice in which to deliver written notice to Buyer ("Seller's Notice") of Seller's election to either (i) agree to remove the objectionable items on the Preliminary Title Report or Survey prior to the "Close of Escrow" (as that term is defined in Section 4.1), or (ii) decline to remove any such title exceptions or Survey matters and terminate the Escrow and the obligations of Buyer and Seller to purchase and sell the Property under this Agreement. Seller's failure to provide Buyer with Seller's Notice within said period shall constitute Seller's election not to remove the objectionable items on the Preliminary Title Report or the Survey. If Seller is deemed to have elected not to remove the objectionable items on the Preliminary Title Report or Survey, or if Seller notifies Buyer of its election to terminate rather than remove the objectionable items on the Preliminary Title Report or Survey, Buyer shall have the right, by written notice delivered to Seller within five (5) days after (i) Buyer's receipt of Seller's Notice, or (ii) the date Seller is deemed to have elected not to remove the objectionable items on the Preliminary Title Report or Survey, as applicable, to agree to accept the Property subject to the objectionable items, in which event Seller's election, or Seller's deemed election, to terminate shall be of no effect, and Buyer shall take title at the Close of Escrow subject to such objectionable items without any adjustment to or credit against the Purchase Price. All exceptions to title shown on the Preliminary Title Report, other than those which Seller may agree to remove pursuant to this Section 2.1, shall be deemed to have been approved by Buyer unless Seller is notified otherwise in writing. Upon the issuance of any amendment or supplement to the Preliminary Title Report which adds additional exceptions, including any survey exceptions, the foregoing right of review and approval shall also apply to said amendment or supplement; provided, however, that Buyer's initial period of review and approval or disapproval of any such additional exceptions shall be limited to fifteen (15) days following receipt of notice of such additional exceptions. The process set forth above for Buyer's review and Seller's response shall apply to any review and response with respect to any amendment or supplement to the Preliminary Title Report, and the Closing shall be extended for such period as is necessary to allow for that review and response process to be completed. Within fifteen (15) days after the Effective Date, Buyer shall commission the Boundary Survey, which Boundary Survey shall be completed within thirty (30) days thereafter. Within fifteen (15) days after Buyer receives the completed Boundary Survey, Buyer shall calculate the amount of the Purchase Price, based upon the Boundary Survey. Within fifteen (15) days after Buyer's calculation of the Purchase Price, Buyer shall (i) provide Seller a copy of the Boundary Survey, along with Buyer's calculation of the amount of the Purchase Price, and (ii) commission an appraisal, to determine whether the Purchase Price represents the actual value of the Property (the "Appraisal"). Within ten (10) days after Buyer receives the completed M34� 02 a°°1� -3->> 1 1. 96 DRAFT Appraisal, Buyer shall provide Seller with a copy of the Appraisal. If the Appraisal indicates that the value of the Property is less than the Purchase Price, Seller shall have an opportunity to reduce the Purchase Price accordingly. In that event, all further references herein to the "Purchase Price" shall mean such reduced amount. If Seller elects not to reduce the Purchase Price to reflect the value set forth in the Appraisal, this Agreement shall automatically terminate, and neither party shall have any further liability hereunder. 2.2 Environmental Condition. Buyer shall have access to the Property, as described in this Section 2.2, in order to permit Buyer or its directors, engineers, analysts, officers, employees, agents, contractors, representatives, attorneys or advisors (collectively, the "Buyer Representatives") to investigate the Property. 2.2.1 During the Due Diligence Period, Seller shall permit Buyer and Buyer Representatives, at the sole cost and expense of Buyer, to conduct physical inspections of the Property, including the site work, soil, subsurface soils, drainage, seismic and other geological and topographical matters, location of asbestos, toxic substances, hazardous materials or wastes, if any, and any other investigations as Buyer deems prudent with respect to the physical condition of the Property in order to determine the Property's suitability for Buyer's intended development. In no event shall Buyer conduct any intrusive testing procedures on the Property without the prior written consent of Seller, which consent shall not be unreasonably withheld. Such investigations may be made by Buyer and/or Buyer Representatives during any normal business hours. Seller shall cooperate to assist Buyer in completing such inspections and special investigations at no cost or expense to Seller. Such inspections and investigations shall be conducted only upon no less than twenty-four (24) hours' notice to Seller and shall be conducted at such times and in such a manner as to minimize any disruption to the Property. Seller shall have the right, but not the obligation, to accompany Buyer during such investigations and/or inspections. 2.2.2 As a condition to any such entry, Buyer shall (i) conduct all work or studies in a diligent, expeditious and safe manner and not allow any dangerous or hazardous conditions to occur on the Property during or after such investigation; (ii) comply with all applicable laws and governmental regulations; (iii) keep the Property free and clear of all materialmen's liens, lis pendens and other liens arising out of the entry and work performed under this paragraph; (iv) maintain or assure maintenance of workers' compensation insurance (or state approved self-insurance) on all persons entering the property in the amounts required by the State of California; (v) provide to Seller prior to initial entry a certificate of insurance evidencing that Buyer and/or the persons entering the Property have procured and has in effect an all-risk public liability insurance policy meeting the following requirements: (1) the insurance shall be written on a per occurrence and not claims -made basis; (2) the amount of insurance shall be a combined single limit of not less than Two Million Dollars ($2,000,000.00) with a deductible or self -insured retention amount of not more than One Hundred Thousand Dollars ($100,000); (3) the policy shall name or be endorsed to Seller and Seller's officers, employees, agents, and representatives (collectively, "Seller & Seller Personnel") as additional insureds; (4) the insurance shall not contain any special limitations on the scope of protection afforded to Seller & Seller Personnel; (5) the policy shall not be canceled by the insurer or Buyer unless there is a minimum of thirty (30) days prior written notice to Seller; (6) the insurer shall waive subrogation rights against the Seller & Seller Personnel; and (7) the insurance shall 88MI5610-0047 1 466341.02 a01/16M -4- l-' 1 97 DRAFT be primary insurance and not contributory with any insurance any of Seller & Seller Personnel may have; and (8) the insurance shall apply separately to each insured against whom a claim is made or suit is brought, except with respect to the limits of the insurer's liability; and (vi) following Buyer's entry, repair any and all damage to the Property caused by such inspections or investigations in a timely manner. 2.2.3 Buyer shall promptly pay and discharge all demands for payment relating to Buyer's entry on and investigation of the Property and take all other steps to avoid the assertion of claims of lien against the Property. In the event a claim of lien is recorded by reason of Buyer's entry on the Property, Buyer, within twenty (20) days of such recordation, shall either (i) record or deliver a surety bond sufficient to release such claim or lien in accordance with applicable law; or (ii) provide Seller with such other assurance as Seller may require for the payment of the claim or lien. Seller may elect to record and post notices of non -responsibility from time to time on and about the Property. 2.2.4 Prior to expiration of the Due Diligence Period, Buyer shall notify Seller in writing ("Buyer's Property Objection Notice") of any objections Buyer may have to any physical or environmental conditions of the Property (the "Disapproved Property Matters"). Buyer's approval or disapproval of the physical and environmental conditions of the Property may be granted or withheld in Buyer's sole and absolute discretion. Buyer's failure to provide Seller with a Buyer's Property Objection Notice shall constitute Buyer's approval of the condition of the Property. Seller shall have a period of fifteen (15) days after receipt of Buyer's Property Objection Notice in which to deliver written notice to Buyer ("Seller's Response") of Seller's election to either (i) agree to remove the Disapproved Property Matters prior to the Close of Escrow, or (ii) decline to remove the Disapproved Property Matters and terminate Escrow and the obligations of Buyer and Seller to purchase and sell the Property under this Agreement. Seller's failure to provide Buyer with Seller's Response within said period shall constitute Seller's election not to remove the Disapproved Property Matters prior to the Close of Escrow. If Seller is deemed to have elected not to remove the Disapproved Property Matters, or if Seller notifies Buyer of its election to terminate rather than remove the Disapproved Property Matters, Buyer shall have the right, by written notice delivered to Seller within five (5) days after (i) Buyer's receipt of Seller's Response, or (ii) the date Seller is deemed to have elected not to remove the Disapproved Property Matters, as applicable, to agree to accept the Property subject to the Disapproved Property Matters, in which event Seller's election, or deemed election, to terminate shall be of no effect, and Buyer shall take title at the Close of Escrow subject to such Disapproved Property Matters without any adjustment to or credit against the Purchase Price. Buyer's inspections and investigations of the Property shall be conducted upon the terms and conditions set forth in this Agreement. In the event Buyer's inspections and investigations reveal the presence of "Hazardous Materials" (as that term is defined in Section 11 herein) that require remediation, Seller shall have the right but not the obligation to hire its own independent soils consultants to confirm the presence of such Hazardous Materials and the necessity of such remediation. The retention of, and confirmation by, such soils consultants shall occur, if at all, within thirty (30) days after the date on which Buyer has notified Seller of the presence of Hazardous Materials on the Property. If remediation is necessary the following shall apply: If the estimate of Buyer (or Buyer's consultants), as may be confirmed by Seller pursuant to its right, but not its obligation, to hire its 8821015610-0047 466341.02 e01/16104 -5- 13 DRAFT own independent soils consultants, of the cost of remediation is not more than Twenty -Five Thousand Dollars ($25,000) ("Maximum Amount"), Seller, at no expense to Buyer, shall cause the remediation work to be performed and completed subject to all applicable laws and regulations. If the estimated cost for the remediation is greater than the Maximum Amount, Seller shall have the option to cause the remediation work to be performed and completed, subject to all applicable laws and regulations, or to terminate this Agreement. Any remediation work performed hereunder shall be completed prior to the Close of Escrow. 2.3 Environmental Documentation. During the Due Diligence Period, Buyer shall prepare and circulate, as required, all documentation necessary to evaluate the potential environmental impacts of Buyer's acquisition of the Property (the "Environmental Documentation"), in accordance with the requirements of the California Environmental Quality Act (California Public Resources Code Section 21000 et seq. ("CEQA"); provided, however, that if Buyer diligently prepares and commences circulation, as required, of the Environmental Documentation, and additional time beyond the Due Diligence Period is necessary for completion thereof, the Due Diligence Period shall be automatically extended until Buyer completes, with continued due diligence, the same. 2.4 Estoppel Certificate. Within fifteen (15) days after the Effective Date, and upon Buyer's request, at any time prior to the "Close of Escrow" (as that term is defined in Section 4.1, Seller shall execute and deliver to Buyer an estoppel letter certifying that the rental agreement attached hereto and incorporated herein as Exhibit "D" (the "Rental Agreement") is in effect, that no amendments or revisions to the terms thereof have been made, and that no default or breach exists thereunder. Subsequent to the initial estoppel letter to be provided to Buyer within the time set forth above, Seller shall provide any estoppel letter requested by Buyer within fifteen (15) days following receipt from Buyer of a request therefor. 3. ESCROW. 3.1 Opening of Escrow. Closing of the sale of the Property shall take place through an escrow ("Escrow") to be established within three (3) business days after the Effective Date with First American Escrow Company at its office located at 44901 Village Court, Ste. A, Palm Desert, CA 92260 ("Escrow Holder"). The opening of the Escrow (the "Opening of Escrow") shall be deemed to be the date that a fully executed copy of this Agreement is delivered to the Escrow Holder. Escrow Holder is instructed to notify Buyer and Seller in writing of the date of the Opening of Escrow. 3.2 Escrow Instructions. This Agreement, once deposited in Escrow, shall constitute the joint escrow instructions of Buyer and Seller to Escrow Holder. Additionally, if Escrow Holder so requires, Buyer and Seller agree to execute the form of escrow instructions that Escrow Holder customarily requires in real property escrows administered by it. In the event of any conflict or inconsistency between Escrow Holder's standard instructions and the provisions of this Agreement, the provisions of this Agreement shall supersede and be controlling. 882/015610-0047 14 466341.02 a01/16/04 -6- f DRAFT 4. CLOSE OF ESCROW. 4.1 Close of Escrow; Closing Date. Provided that all of the conditions of this Agreement precedent to the "Close of Escrow" (as hereinafter defined) have been satisfied (or waived by the appropriate party) prior to or on the Closing Date, the Closing of this transaction for the sale and purchase of the Property shall take place on the date which is five (5) days after the date on which all of "Buyer's Conditions to Closing" and all of "Seller's Conditions to Closing" (as those terms are defined in Section 8) have been satisfied (or waived by the appropriate party); provided, however, in no event shall the Closing occur, if at all, later than the date which is one hundred sixty (160) days after the Effective Date ("Closing Date"). The terms "Close of Escrow" and the "Closing" are used herein to mean the time Seller's grant deed conveying fee title to the Property to Buyer is recorded in the Official Records of the Office of the County Recorder of Riverside ("Official Records"). If Escrow is not in a condition to close by the Closing Date, either party not then in default hereunder may, upon five (5) days advance written notice to the other party and Escrow Holder, elect to terminate this Agreement and the Escrow. No such termination shall release either party then in default from liability for such default. If neither party so elects to terminate this Agreement and the Escrow, Escrow Holder shall close the Escrow as soon as possible. 4.2 Recordation; Release of Funds and Documents. 4.2.1 Escrow Holder is directed, on the Closing Date, to record in the Official Records, the following documents in the order listed: (i) the grant deed in the form of the attached Exhibit "B" transferring title to the Property to Buyer ("Grant Deed"); and (ii) such other and further documents as may be directed jointly by Buyer and Seller. 4.2.2 Upon the Closing, Escrow Holder shall deliver (i) the Purchase Price, less any of Seller's closing costs, to Seller, and (ii) conformed copies of all recorded documents to both Buyer and Seller. 5. DELIVERY OF DOCUMENTS REOUIRED FROM BUYER AND SELLER. 5.1 Buyer's Obligations. Buyer agrees that on or before 5:00 p.m. of the last business day immediately preceding the Closing Date, Buyer shall deposit or cause to be deposited with Escrow Holder the following: (a) the Purchase Price, less the Deposit; and (b) any and all additional funds, instruments or other documents required from Buyer (executed and acknowledged where appropriate) as may be reasonably necessary in order for the Escrow Holder to comply with the terms of this Agreement. 5.2 Seller's Obligations. Seller agrees that on or before 5:00 p.m. of the last business day immediately preceding the Closing Date, Seller shall deposit or cause to be deposited with Escrow Holder each of the following: (a) the executed and acknowledged Grant Deed; 15 882/015610-0047 466341.02 a01/16/04 -7- 100 DRAFT (b) a Certificate of Non -Foreign Status (the "Non -Foreign Affidavit") executed and acknowledged by Seller in the form attached hereto as Exhibit "C"; and (c) all other funds, items, and instruments required from Seller (executed and acknowledged where appropriate) as may be reasonably necessary in order for Escrow Holder to comply with the provisions of this Agreement. 6. TITLE INSURANCE POLICY. 6.1 Title Policy. At the Closing Date, the Title Company, as insurer, shall issue a CLTA owner's standard coverage policy of title insurance ("Title Policy"), in favor of Buyer, as insured, with liability in the amount of the Purchase Price, subject to the following: (a) non -delinquent real property taxes and assessments; (b) title exceptions approved or deemed approved by Buyer pursuant to Section 2.1 above; (c) title exceptions, if any, resulting from Buyer's entry onto the Property pursuant to the provisions of Section 2.2 above; (d) any other exceptions approved by Buyer; and (e) the standard printed conditions and exceptions contained in the CLTA standard coverage owner's policy of title insurance regularly issued by the Title Company. 6.2 Payment for Title Policy. Seller shall be responsible for the charges for the Title Policy with coverage up to the amount of the Purchase Price. Buyer shall pay the cost for any additional coverage or endorsements it requests. Buyer may, at its election, request a CLTA extended policy of title insurance. Buyer shall pay the difference for the charges between the premium for the extended coverage title policy and the premium for the standard coverage title policy that Seller is responsible for hereunder. Buyer shall also pay for the CLTA survey, if applicable. 7. REAL PROPERTY TAXES. Upon Buyer's acquisition of fee title to the Property, the Property will be exempt from the payment of property taxes and assessments due to Buyer's status as a public agency. Seller shall be responsible for paying for all property taxes or assessments assessed against the Property after the Closing for any period prior to the Closing. 8. CONDITIONS PRECEDENT TO CLOSING. 8.1 Conditions Precedent to Buyer's Obligations. The obligations of Buyer under this Agreement to purchase the Property and close the Escrow shall be subject to the satisfaction or signed written waiver by Buyer of each and all of the following conditions precedent (collectively "Buyer's Conditions to Closing"): (a) Buyer shall have approved the condition of the Property, in accordance with Section 2.2 hereof; 882/015610-0047 16 466341.02 a01/16/04 -8- 101 DRAFT (b) on the Closing Date, the Title Company shall be irrevocably committed to issue the Title Policy pursuant to Section 6 above insuring fee title to the Property as being vested in Buyer; (c) Escrow Holder holds all instruments and funds required for the Closing and will deliver to Buyer the instruments and funds, if any, accruing to Buyer pursuant to this Agreement; (d) except as otherwise permitted by this Agreement, all representations and warranties by the Seller in this Agreement shall be true on and as of the Closing Date as though made at that time and all covenants of Seller pursuant to this Agreement shall have been fulfilled by the Closing Date; (e) Buyer shall have sold, and received the proceeds from, Buyer's 2004 Housing Tax Allocation Bonds; (f) Buyer shall have completed preparation and circulation of the Environmental Documentation; and (g) Seller is not in material default of any term or condition of this Agreement. In the event that any of Buyer's Conditions to Closing are not satisfied, deemed satisfied, or waived in a writing signed by Buyer prior to the expiration of the applicable period for satisfaction or waiver, Buyer may terminate this Agreement. 8.2 Conditions Precedent to Seller's Obligations. The obligations of Seller under this Agreement shall be subject to the satisfaction or signed written waiver by Seller of each and all of the following conditions precedent ("Seller's Conditions to Closing"): (a) Escrow Holder holds the Purchase Price and all other instruments and funds required for the Closing and will deliver to Seller the instruments and funds, including but not limited to the Purchase Price (less Seller's closing costs) accruing to Seller pursuant to this Agreement; (b) except as otherwise permitted by this Agreement, all representations and warranties by the Buyer in this Agreement shall be true on and as of the Closing Date as though made at that time and all covenants of Buyer pursuant to this Agreement shall have been fulfilled by the Closing Date; (c) Buyer is not in material default of any term or condition of this Agreement. In the event that any of Seller's Conditions to Closing are not satisfied, deemed satisfied, or waived in a writing signed by Seller prior to the expiration of the applicable period for satisfaction or waiver, Seller may terminate this Agreement. 88MI5610-0047 o j 17 466341.02 e01/16104 -9- 1 ,n1 1 V 2 DRAFT 9. POSSESSION. Possession of the Property shall be delivered by Seller to Buyer on the Closing Date. 10. ALLOCATION OF COSTS. 10.1 Buyer's Costs. Buyer shall pay the following costs: (a) fifty percent (50%) of Escrow Holder's escrow fee; (b) Buyer's own attorney's fees incurred in connection with this Agreement and the transactions contemplated hereby; (c) fifty percent (50%) of all the charges for recording the Grant Deed, if any; (d) the premium difference between the ALTA extended policy of title insurance and the ALTA standard coverage policy of title insurance if Buyer requests an extended policy; and (e) any additional title insurance coverages Seller is not required to pay for plus any title endorsements requested by Buyer. 10.2 Seller's Costs. Seller shall pay: (a) fifty percent (50%) of the Escrow Holder's escrow fee; (b) Seller's own attorney's fees in connection with this Agreement and the transactions contemplated hereby; MI (d) and (e) this Agreement. Any documentary transfer taxes associated with the conveyance; fifty percent (50%) of all the charges for recording the Grant Deed, if any; the premium for the Title Policy that Seller is required to pay pursuant to 11. INDEMNIFICATION. Seller agrees to indemnify, defend and hold Buyer harmless from and against any claim, action, suit, proceeding, loss, cost, damage, liability, deficiency, fine, penalty, punitive damage, or expense (including, without limitation, attorneys' fees), resulting from, arising out of, or based upon (i) the presence, release, use, generation, discharge, storage or disposal of any "Hazardous Materials" (as that term is defined below) on, under, in or about, or the transportation of any such Hazardous Materials to or from, the Property which occurred prior to the Closing, or (ii) the violation, or alleged violation, of any statute, ordinance, order, rule, regulation, permit, judgment or license relating to the use, generation, release, discharge, storage, disposal or transportation of Hazardous Materials on, under, in or about to or from, the Property which occurred prior to the Closing. This indemnity shall include, without limitation, any damage, liability, fine, penalty, cost or expense arising from or out of any claim, action, suit or proceeding for personal injury (including sickness, disease or death), tangible or intangible 882M15610-W47 466341.02 e01/16/04 -10- 18103 DRAFT property damage, compensation for lost wages, business income, profits or other economic loss, damage to the natural resource or the environment, nuisance, contamination, leak, spill, release or other adverse effect on the environment (any of the above, a "Claim") to the extent resulting from, arising out of, or based upon any matter set forth in subclauses (i) and (ii) hereinabove. At the request of the Seller, the Buyer shall cooperate with and assist the Seller in its defense of any such claim, action, suit, proceeding, loss, cost, damage, liability, deficiency, fine, penalty, punitive damage, or expense; provided that the Buyer shall not be obligated to incur any expense in connection with such cooperation or assistance. Seller's obligation to indemnify, defend and hold Buyer harmless under this Section 11 shall not apply to any Claim resulting from, arising out of or based upon any inspection or investigation of the Property by Buyer Representatives pursuant to Section 2.2 hereof, and Buyer agrees to indemnify, defend and hold Seller harmless from any such Claim in the same manner and to the same extent that Seller is required to indemnify, defend and hold Buyer harmless under the provisions of this Section 11. For purposes of this Agreement, the term "Hazardous Materials" means any substance, material, or waste which is, or becomes, regulated by any local governmental authority, the State of California, or the United States Government, including, but not limited to, any material or substance which is (i) defined as a "hazardous waste," "extremely hazardous waste," or "restricted hazardous waste" under Section 25115, 25117 or 25122.7, or listed pursuant to Section 25140 of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law), (ii) defined as a "hazardous substance" under Section 25316 of the California Health and Safety Code, Division 20, Chapter 6.8 (Carpenter -Presley -Tanner Hazardous Substance Account Act), (iii) defined as a "hazardous material," "hazardous substance," or "hazardous waste" under Section 25501 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory), (iv) defined as a "hazardous substance" under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances), (v) petroleum, (vi) friable asbestos, (vii) polychlorinated byphenyls, (viii) methyl tertiary butyl ether, (ix) listed under Article 9 or defined as "hazardous" or "extremely hazardous" pursuant to Article 11 of Title 22 of the California Administrative Code, Division 4, Chapter 20, (x) designated as "hazardous substances" pursuant to Section 311 of the Clean Water Act (33 U.S.C. §1317), (xi) defined as a "hazardous waste" pursuant to Section 1004 of the Resource Conservation and Recovery Act, 42 U.S.C. §6901 et seq.(42 U.S.C. §6903) or (xii) defined as "hazardous substances" pursuant to Section 101 of the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. §9601 et seq. 12. CONDEMNATION. In the event that, prior to the Close of Escrow, any governmental entity shall commence any proceedings of or leading to eminent domain or similar type proceedings to take all or any portion of the Property, Buyer or Seller shall promptly meet and confer in good faith to evaluate the effect of such action on the purposes of this Agreement and following such meeting either Buyer or Seller may terminate this Agreement. 13. RIGHT TO EXCHANGE. Seller may desire to complete this transaction as a part of a tax -deferred exchange within the meaning of Section 1031 of the Internal Revenue Code of 1986, as amended. Buyer agrees in each such event to cooperate with Seller in order to effectuate such an exchange or exchanges. Buyer's agreement to cooperate to effect any such exchange or exchanges shall not require Buyer to incur any cost, expense or liability or acquire 88MI5610-0047 i (� 466341.02a01/16/04 -11- 1 J 104 DRAFT title to any property as a consequence of such cooperation. In no event shall any such exchange transaction delay the Close of Escrow as contemplated in this Agreement. In so cooperating in any exchange transaction arranged hereunder, Buyer shall in no event be responsible for, or in any way warrant, the tax consequences of the exchange transaction. 14. MISCELLANEOUS. 14.1 Assignment._ This Agreement shall be binding upon and shall inure to the benefit of Buyer and Seller and their respective heirs, personal representatives, successors and assigns. Neither party to this Agreement may assign this Agreement or any interest or right hereunder or under the Escrow without the prior written consent and approval of the other party, which consent and approval may be withheld in the sole and absolute discretion of either party; provided, however, that Buyer may assign this Agreement to the City of La Quinta without Seller's consent. No provision of this Agreement is intended nor shall in any way be construed to benefit any party not a signatory hereto or to create a third party beneficiary relationship; provided, however, that notwithstanding the foregoing, the City shall be an express third party beneficiary with respect to the indemnities and other matters set forth in this Agreement which specifically and expressly run to the City's benefit. 14.2 Attorney's Fees. In the event of any action between Buyer and Seller seeking enforcement of any of the terms and conditions to this Agreement or the Escrow or otherwise in connection with the Property, the prevailing party in such action shall be awarded, in addition to damages, injunctive or other relief, its reasonable costs and expenses, including without limitation its expert witness fees and reasonable attorney's fees. 14.3 Notices. All notices under this Agreement shall be effective upon personal delivery, via facsimile so long as the sender receives confirmation of successful transmission from the sending machine, or three (3) business days after deposit in the United States mail, registered or certified, postage fully prepaid and addressed to the respective parties as set forth below or as to such other address as the parties may from time to time designate in writing: To Seller: Joe Hammer P.O. Box 278 Palm Desert, CA 92261 and Shirley A. Hammer Copy to: Schlecht, Shevlin & Shoenberger 801 East Tahquitz Canyon Way, Suite 100 Palm Springs, CA 92262 Attn: Daniel Johnson, Esq. Facsimile No. (760) 323-1758 88MI5610-0047 ; l 20 466341.02 a01/16/04 -12- 105 DRAFT To Buyer: La Quinta Redevelopment Agency 78-495 Calle Tampico La Quinta, CA 92253 Attn: Executive Director Facsimile No.: (760) 777-7107 Copy to: Rutan & Tucker, LLP 611 Anton Boulevard, Suite 1400 Costa Mesa, California 92628-1950 Attn: M. Katherine Jenson, Esq. Facsimile No.: (714) 546-9035 14.4 Fair Meaning. This Agreement shall be construed according to its fair meaning and as if prepared by both parties hereto. 14.5 Headings. The headings at the beginning of each numbered Section of this Agreement are solely for the convenience of the parties hereto and are not a part of this Agreement. 14.6 Choice of Laws; Litigation Matters. This Agreement shall be governed by the internal laws of the State of California and any question arising hereunder shall be construed or determined according to such law. The Municipal and Superior Courts of the State of California in and for the County of Riverside, or such other appropriate court in such county, shall have exclusive jurisdiction of any litigation between the parties concerning this Agreement. Service of process on Buyer shall be made in accordance with California law. Service of process on Seller shall be made in any manner permitted by California law and shall be effective whether served inside or outside California. 14.7 Nonliabilit off Buyer Officials. No officer, official, member, employee, agent, or representatives of Buyer shall be liable for any amounts due hereunder, and no judgment or execution thereon entered in any action hereon shall be personally enforced against any such officer, official, member, employee, agent, or representative. 14.8 Gender, Number. As used in this Agreement, masculine, feminine, and neuter gender and the singular or plural number shall be deemed to include the others wherever and whenever the context so dictates. 14.9 Survival. This Agreement and all covenants to be performed after the Closing, and, except as otherwise set forth herein, all representations and warranties contained herein, shall survive the Closing Date and shall remain a binding contract between the parties hereto. 14.10 Time of Essence. Time is of the essence of this Agreement and of each and every term and provision hereof, it being understood that the parties hereto have specifically negotiated the dates for the completion of each obligation herein. 14.11 Waiver or Modification. A waiver of a provision hereof, or modification of any provision herein contained, shall be effective only if said waiver or modification is in writing, 88MI5610-0047 21_ 466341.02 e01/16104 -13- 1OG DRAFT and signed by both Buyer and Seller. No waiver of any breach or default by any party hereto shall be considered to be a waiver of any breach or default unless expressly provided herein or in the waiver. 14.12 Broker's/Consulting Fees. Seller and Buyer represent and warrant to the other that neither Buyer nor Seller has employed any real estate broker to represent its interest in this transaction. Each party agrees to indemnify and hold the other free and harmless from and against any and all liability, loss, cost, or expense (including court costs and reasonable attorney's fees) in any manner connected with a claim asserted by any individual or entity for any broker's commission in connection with the conveyance of the Property arising out of agreements by the indemnifying party to pay any commission. Seller acknowledges that Seller, collectively, will pay William J. Hammer a six percent (6%) consulting fee in connection with this transaction (the "Consulting Fee"). Seller agrees to indemnity and hold Buyer harmless from and against any and all liability, loss, cost, or expense (including court costs and reasonable attorneys' fees) in any manner connected with a claim asserted by any individual or entity related to the Consulting Fee. 14.13 Duplicate Originals. This Agreement may be executed in any number of duplicate originals, all of which shall be of equal legal force and effect. 14.14 Severability. If any term, covenant or condition of this Agreement or the application thereof to any person, entity, or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term, covenant, or condition to persons, entities, or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby and each term, covenant or condition of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 14.15 Exhibits. The following exhibits are attached hereto and incorporated herein by this reference: Exhibit "A" Legal Description of Property Exhibit "B" Grant Deed Exhibit "C" Non -Foreign Affidavit 14.16 Covenants of Seller. Seller agrees that during the period between the Effective Date of this Agreement and the Closing Date: (a) Seller shall maintain the Property in not less than the state of repair as that existing on the Effective Date (excepting ordinary wear and tear); (b) Seller shall not convey, grant, lease, assign, mortgage, hypothecate, encumber, or otherwise transfer (on or off record) the Property or any interest therein; (c) Seller shall not alter the physical condition of the Property or introduce or release, or permit the introduction or release, of any Hazardous Material in, from, under, or on the Property; 882/015610-0047 466341.02 e01/16(04 -14- 22 107 DRAFT (d) Prior to Closing, Seller shall maintain Seller's existing insurance on the Property. 14.17 Corporate Authority. The person(s) executing this Agreement on behalf of each of the parties hereto represent and warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement such party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other agreement to which such party is bound. 14.18 Covenant Against Discrimination. Seller covenants that in its performance of this Agreement it shall not discriminate against any person or group of persons on account of any impermissible classification including but not limited to race, color, creed, gender, religion, marital status, national origin, or ancestry. 14.19 Entire Agreement; Amendment. Except as set forth above, this Agreement and the exhibits incorporated herein contain the entire agreement of Buyer and Seller with respect to the matters contained herein, and no prior agreement or understanding pertaining to any such matter shall be effective for any purpose. No provisions of this Agreement may be amended or modified in any manner whatsoever except by an agreement in writing signed by duly authorized officers or representatives of each of the parties hereto. 8821015610-0047 466341.02 a01/16/04 [SIGNATURES ON NEXT PAGE] -15- 23 108 DRAFT IN WITNESS WHEREOF, Buyer and Seller each hereby represents that it has read this Agreement, understands it, and hereby executes this Agreement to be effective as of the day and year first written above. Date: , 2004 882/015610-0047 466341.02 a01116104 "Seller" (i) SHIRLEY A. HAMMER AND WILLIAM JOSEPH HAMMER, JR., AS TRUSTEES OF THE BYPASS TRUST HELD PURSUANT TO THE PROVISIONS OF THE WILL OF JOSEPH W. HAMMER, DECEASED, AS TO AN UNDIVIDED NINE AND 4643/10,000 PERCENT (9.4643%) INTERESTS TO SHIRLEY A. HAMMER AND WILLIAM JOSEPH HAMMER, JR., AS TRUSTEES OF THE MARITAL DEDUCTION TRUST A HELD PURSUANT TO THE PROVISIONS OF WILL OF SAID DECEDENT, AS TO AN UNDIVIDED SIX AND 3672/10,000 PERCENT (6.3672%) INTEREST; AND TO SHIRLEY A. HAMMER AND WILLIAM JOSEPH HAMMER, JR., AS TRUSTEES OF THE MARITAL DEDUCTION TRUST B HELD PURSUANT TO THE PROVISIONS OF THE WILL OF JOSEPH W. HAMMER, DECEASED, AS TO AN UNDIVIDED THIRTY-TWO AND 4055/10,000 PERCENT (32.4055%) INTEREST, (ii) WILLIAM J. HAMMER, A SINGLE MAN, f 1, and (iii) SHIRLEY A. HAMMER, A ( 1 By: Shirley A. Hammer, as Trustee of the Bypass Trust Held Pursuant to the Provisions of the Will of Joseph W. Hammer, Deceased, as to an Undivided Nine and 4643/10,000 Percent (9.4643%) Interest -16- 24 10- 1 t �V tW 1 Date: , 2004 By: William Joseph Hammer, Jr., as Trustee of the Bypass Trust Held Pursuant to the Provisions of the Will of Joseph W. Hammer, Deceased, as to an Undivided Nine and 4643/10,000 Percent (9.4643%) Interest [SIGNATURES CONTINUED ON NEXT PAGE] Date: , 2004 Date: 2004 Date: , 2004 Date: , 2004 8821015610-0047 466341.02 a01/16/04 By: Shirley A. Hammer, as Trustee of the Marital Deduction Trust A Held Pursuant to the Provisions of the Will of Said Decedent, as to an Undivided Six and 3672/10,000 Percent (6.3672%) Interest By: William Joseph Hammer, Jr., as Trustee of the Marital Deduction Trust A Held Pursuant to the Provisions of the Will of Said Decedent, as to an Undivided Six and 3672/10,000 Percent (6.3672%) Interest By: Shirley A. Hammer, as Trustee of the Marital Deduction Trust B Held Pursuant to the Provisions of the Will of Joseph W. Hammer, Deceased, as to an Undivided Thirty - Two and 4055/10,000 Percent (32.4055%) Interest By: William Joseph Hammer, Jr., as Trustee of the Marital Deduction Trust B Held Pursuant to the Provisions of the Will of Joseph W. Hammer, Deceased, as to an Undivided Thirty -Two and 4055/10,000 Percent (32.4055%) Interest [SIGNATURES CONTINUED ON NEXT PAGE] -17- 25 110 DRAFT "Buyer" LA Q=A REDEVELOPMENT AGENCY, a public body, corporate and politic Date: , 2004 BY: Agency Chair ATTEST: June Greek, Agency Secretary APPROVED AS TO FORM: RUTAN & TUCKER, LLP By: M. Katherine Jenson, Agency Counsel agrees to act as Escrow Holder in accordance with the terms of this Agreement. By: Date: , 2004 Name: Its: [END OF SIGNATURES] 88=15610-W47 2 6 466341.M a01/16/04 -18- ill DRAFT EXHIBIT "A" LEGAL DESCRIPTION OF PROPERTY The land situated in the City of La Quinta, in the County of Riverside, State of California, described as follows: PARCEL L The Easterly 330.00 feet of the Northeast quarter of the southwest quarter of Section 29, Township 5 South, Range 7 East, San Bernardino meridian, as shown by United States Government Survey approved July 15, 1856. Except the Easterly 30.00 feet, as granted to the County of Riverside for road purposes by Deed recorded April 9, 1952, in Book 1358, Page 240 of Official Records. Also except a right of way over the Southerly 30.00 feet for public road and utility purposes, as reserved in Deed from Anastacio M. Chavez and wife, recorded June 3, 1949 in Book 1081, Page 313 of Official Records. Also except that portion as granted to the State of California by Deed recorded November 7, 1967, as Instrument No. 97902. PARCEL 2: The Easterly 660.00 feet of the Southeast quarter of the Southwest quarter of Section 29, Township 5 South, Range 7 East, San Bernardino Base and Meridian, as shown by United States Government Survey approved July 15, 1856. Except the Easterly 30.00 feet as granted to the County of Riverside for road purposes by Deed recorded April 9, 1952 in Book 1368, Page 240 of Official Records. Also except a right of way over the Northerly 30.00 feet for public road and utility purposes, as reserved in Deed from Ruby L. Snider, recorded June 3, 1949 in Book 1081, Page 347 of Official Records. APN NO.: 649-030-034 8821015610-0047 466341.02 a01/16/04 2'7 112 DRAFT EXHIBIT "B" FORM OF GRANT DEED [SEE FOLLOWING PAGES] 882/015610-0047 466341.02 a01/16/04 C e 113 DRAFT RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: LA QUINTA REDEVELOPMENT AGENCY 78-495 Calle Tampico La Quinta, CA 92253 Attn: Executive Director SPACE ABOVE THIS LINE FOR RECORDER'S USE (Exempt from Recordation Fee per Gov. Code § 27383) GRANT DEED FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, (i) SHIRLEY A. HAMMER AND WILLIAM JOSEPH HAMMER, JR., AS TRUSTEES OF THE BYPASS TRUST HELD PURSUANT TO THE PROVISIONS OF THE WILL OF JOSEPH W. HAMN ER, DECEASED, AS TO AN UNDIVIDED NINE AND 4643/10,000 PERCENT (9.4643%) INTERESTS TO SHIRLEY A. HAMMER AND WILLIAM JOSEPH HAMMER, JR., AS TRUSTEES OF THE MARITAL DEDUCTION TRUST A HELD PURSUANT TO THE PROVISIONS OF WILL OF SAID DECEDENT, AS TO AN UNDIVIDED SIX AND 3672/10,000 PERCENT (6.3672%) INTEREST; AND TO SHIRLEY A. HAMMER AND WILLIAM JOSEPH HAMMER, JR., AS TRUSTEES OF THE MARITAL DEDUCTION TRUST B HELD PURSUANT TO THE PROVISIONS OF THE WILL OF JOSEPH W. HAMMER, DECEASED, AS TO AN UNDIVIDED THIRTY-TWO AND 4055/10,000 PERCENT (32.4055%) INTEREST, (ii) WILLIAM J. HAMMER, A SINGLE MAN, 1, and (iii) SHIRLEY A. HAMMER, A f 1 (jointly, severally, and collectively, the "Grantor"), hereby grants to the LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic, organized and existing under the California Community Redevelopment Law (Health & Safety Code Section 33000 et seq.) ("Grantee"), that certain real property ("Property") located in the City of La Quinta, County of Riverside, State of California; described in the legal description attached hereto as Attachment No. 1 and incorporated herein by this reference, subject to all matters of record, and further subject to the following: 29 4M3 1 .02 a0l/ 114 466341.02 a01/16/04 -1- DRAFT Date: , 2004 Date: 2004 "Seller" (i) SHIRLEY A. HAMMER AND WILLIAM JOSEPH HAMMER, JR., AS TRUSTEES OF THE BYPASS TRUST HELD PURSUANT TO THE PROVISIONS OF THE WILL OF JOSEPH W. HAMMER, DECEASED, AS TO AN UNDIVIDED NINE AND 4643/10,000 PERCENT (9.4643%) INTERESTS TO SHIRLEY A. HAMMER AND WILLIAM JOSEPH HAMMER, JR., AS TRUSTEES OF THE MARITAL DEDUCTION TRUST A HELD PURSUANT TO THE PROVISIONS OF WILL OF SAID DECEDENT, AS TO AN UNDIVIDED SIX AND 3672/10,000 PERCENT (6.3672%) INTEREST; AND TO SHIRLEY A. HAMMIER AND WILLIAM JOSEPH HAMMER, JR., AS TRUSTEES OF THE MARITAL DEDUCTION TRUST B HELD PURSUANT TO THE PROVISIONS OF THE WILL OF JOSEPH W. HAMMER, DECEASED, AS TO AN UNDIVIDED THIRTY-TWO AND 4055/10,000 PERCENT (32.4055%) INTEREST, (ii) WILLIAM J. HAMMER, A SINGLE MAN, [ 1, and (iii) SHIRLEY A. HAMMER, A [ 1 By: Shirley A. Hammer, as Trustee of the Bypass Trust Held Pursuant to the Provisions of the Will of Joseph W. Hammer, Deceased, as to an Undivided Nine and 4643/10,000 Percent (9.4643%) Interest By: William Joseph Hammer, Jr., as Trustee of the Bypass Trust Held Pursuant to the Provisions of the Will of Joseph W. Hammer, Deceased, as to an Undivided Nine and 4643/10,000 Percent (9.4643%) Interest [SIGNATURES CONTINUED ON NEXT PAGE] 882M15610-W47 2- { O 466341.02 a01/16/04 -V 11 DRAFT Date: Date: 2004 By: Shirley A. Hammer, as Trustee of the Marital Deduction Trust A Held Pursuant to the Provisions of the Will of Said Decedent, as to an Undivided Six and 3672/10,000 Percent (6.3672%) Interest 2004 By: William Joseph Hammer, Jr., as Trustee of the Marital Deduction Trust A Held Pursuant to the Provisions of the Will of Said Decedent, as to an Undivided Six and 3672/10,000 Percent (6.3672%) Interest Date: , 2004 Date: 882/015610-0047 466341.02 a01/16104 2004 By: Shirley A. Hammer, as Trustee of the Marital Deduction Trust B Held Pursuant to the Provisions of the Will of Joseph W. Hammer, Deceased, as to an Undivided Thirty - Two and 4055/10,000 Percent (32.4055%) Interest By: William Joseph Hammer, Jr., as Trustee of the Marital Deduction Trust B Held Pursuant to the Provisions of the Will of Joseph W. Hammer, Deceased, as to an Undivided Thirty -Two and 4055/10,000 Percent (32.4055%) Interest [SIGNATURES CONTINUED ON NEXT PAGE] -3- 31. 116 DRAFT "Grantee" LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic Date: , 2004 By: ATTEST: June Greek, Agency Secretary APPROVED AS TO FORM: RUTAN & TUCKER, LLP as M. Katherine Jenson, Agency Counsel 882/015610-0047 466341.02 e01/16/04 -4- Agency Chair 32 117 DRAFT STATE OF CALIFORNIA ) ) ss COUNTY OF RIVERSIDE On , before me, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. Notary Public [SEAL] STATE OF CALIFORNIA ) ) ss COUNTY OF RIVERSIDE ) On , before me, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. Notary Public [SEAL] aszroueio-ONE _5_ 33 4M3«.02a01„� 118 DRAFT STATE OF CALIFORNIA ) ) ss COUNTY OF RIVERSIDE On , before me, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. Notary Public [SEAL] 88M15610-0047 34 46&U1.02 a01116/04 -6- 119 DRAFT ATTACHMENT NO. 1 LEGAL DESCRIPTION OF PROPERTY The land situated in the City of La Quinta, in the County of Riverside, State of California, described as follows: PARCEL L The Easterly 330.00 feet of the Northeast quarter of the southwest quarter of Section 29, Township 5 South, Range 7 East, San Bernardino meridian, as shown by United States Government Survey approved July 15, 1856. Except the Easterly 30.00 feet, as granted to the County of Riverside for road purposes by Deed recorded April 9, 1952, in Book 1358, Page 240 of Official Records. Also except a right of way over the Southerly 30.00 feet for public road and utility purposes, as reserved in Deed from Anastacio M. Chavez and wife, recorded June 3, 1949 in Book 1081, Page 313 of Official Records. Also except that portion as granted to the State of California by Deed recorded November 7, 1967, as Instrument No. 97902. PARCEL 2: The Easterly 660.00 feet of the Southeast quarter of the Southwest quarter of Section 29, Township 5 South, Range 7 East, San Bernardino Base and Meridian, as shown by United States Government Survey approved July 15, 1856. Except the Easterly 30.00 feet as granted to the County of Riverside for road purposes by Deed recorded April 9, 1952 in Book 1368, Page 240 of Official Records. Also except a right of way over the Northerly 30.00 feet for public road and utility purposes, as reserved in Deed from Ruby L. Snider, recorded June 3, 1949 in Book 1081, Page 347 of Official Records. APN NO.: 649-030-034 35 4663O1 .02 a01 1 Attachment 1 to Grant Deed 466341.02 e01/16/04 DRAFT AFFIDAVIT OF NON -FOREIGN ENTITY TO: LA QUINTA REDEVELOPMENT AGENCY ("Buyer") The Internal Revenue Code of 1954 ("Code") (26 U.S.C. Sections 1445, 7701) provides that a transferee of a U.S. real property interest must withhold tax if the transferor is a foreign person. To inform the transferee that withholding of tax is not required upon transfer of that certain U.S. real property interest described in Exhibit "A" to the Agreement for Purchase and Sale and Escrow Instructions dated , 2004, and incorporated herein by reference ("Property"), that the undersigned ("Seller") hereby certifies the following: 1. Seller is not a foreign corporation, foreign partnership, foreign trust or foreign estate (as those terms are defined in the Internal Revenue Code and Income Tax Regulations); and 2. The U.S. taxpayer identification number for Seller is ; and 3. The address for mailing purposes of Seller is: and 4. Seller understands that this certification may be disclosed to the Internal Revenue Service by Buyer and that any false statement contained herein could be punished by fine, imprisonment, or both. Under penalties of perjury, I declare that I have examined this Certification and to the best of my knowledge and belief, it is true, correct, and complete, and I further declare that I have authority to sign this document on behalf of Seller. [SIGNATURE PAGE FOLLOWS] 882/015610-0047 36 466341.02 a01/16/04 121 r971.1wi Date: "Seller" (i) SHIRLEY A. HAMMER AND WILLIAM JOSEPH HAMMER, JR., AS TRUSTEES OF THE BYPASS TRUST HELD PURSUANT TO THE PROVISIONS OF THE WILL OF JOSEPH W. HAMMER, DECEASED, AS TO AN UNDIVIDED NINE AND 4643/10,000 PERCENT (9.4643%) INTERESTS TO SHIRLEY A. HAMMER AND WILLIAM JOSEPH HAMMER, JR., AS TRUSTEES OF THE MARITAL DEDUCTION TRUST A HELD PURSUANT TO THE PROVISIONS OF WILL OF SAID DECEDENT, AS TO AN UNDIVIDED SIX AND 3672/10,000 PERCENT (6.3672%) INTEREST; AND TO SHIRLEY A. HAMMER AND WILLIAM JOSEPH HAMMER, JR., AS TRUSTEES OF THE MARITAL DEDUCTION TRUST B HELD PURSUANT TO THE PROVISIONS OF THE WILL OF JOSEPH W. HAMMER, DECEASED, AS TO AN UNDIVIDED THIRTY-TWO AND 4055/10,000 PERCENT (32.4055%) INTEREST, (ii) WILLIAM J. HAMMER, A SINGLE MAN, ( ], and (iii) SHIRLEY A. HAMMER, A [ 1 2004 By: Date: , 2004 Shirley A. Hammer, as Trustee of the Bypass Trust Held Pursuant to the Provisions of the Will of Joseph W. Hammer, Deceased, as to an Undivided Nine and 4643/10,000 Percent (9.4643%) Interest By: William Joseph Hammer, Jr., as Trustee of the Bypass Trust Held Pursuant to the Provisions of the Will of Joseph W. Hammer, Deceased, as to an Undivided Nine and 4643/10,000 Percent (9.4643%) Interest [SIGNATURES CONTINUED ON NEXT PAGE] 37 122 DRAFT Date: _'2004 Date: , 2004 Date: , 2004 Date: , 2004 By: Shirley A. Hammer, as Trustee of the Marital Deduction Trust A Held Pursuant to the Provisions of the Will of Said Decedent, as to an Undivided Six and 3672/10,000 Percent (6.3672%) Interest By: William Joseph Hammer, Jr., as Trustee of the Marital Deduction Trust A Held Pursuant to the Provisions of the Will of Said Decedent, as to an Undivided Six and 3672/10,000 Percent (6.3672%) Interest By: Shirley A. Hammer, as Trustee of the Marital Deduction Trust B Held Pursuant to the Provisions of the Will of Joseph W. Hammer, Deceased, as to an Undivided Thirty - Two and 4055/10,000 Percent (32.4055%) Interest By: William Joseph Hammer, Jr., as Trustee of the Marital Deduction Trust B Held Pursuant to the Provisions of the Will of Joseph W. Hammer, Deceased, as to an Undivided Thirty -Two and 4055/10,000 Percent (32.4055%) Interest 123 DRAFT EXHIBIT "D" RENTAL AGREEMENT ISEE FOLLOWING PAGE] 39 124 OF T9 COUNCIL/RDA MEETING DATE: January 20, 2004 ITEM TITLE: A Joint Public Hearing between the City Council of the City of La Quinta and the La Quinta Redevelopment Agency to Consider Adoption of a Resolution Certifying a Negative Declaration of Environmental Impact for Environmental Assessment 2003-494 on the Proposed Redevelopment Plan Amendments, and Adoption of an Ordinance Amending the Redevelopment Plan for La Quinta Redevelopment Project No, 2 to Increase the Cumulative Tax Increment Revenue Limit From $400,000,000 to $1,500,000,000 RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: 1. Open the Joint Public Hearing of the City Council and Redevelopment Agency Board, receive a staff presentation, and public testimony both for and against the Amendment to the Redevelopment Plan for La Quinta Redevelopment Project No. 2 and the Negative Declaration; 2. Close the Joint Public Hearing after all testimony has been presented. 3. If written objections have been submitted, continue all actions on the Redevelopment Plan Amendment until February 3, 2004 so Agency staff can prepare written responses to the written objections pursuant to the Redevelopment Law; or 4. If no written objections are received, consider the following actions: a. Adopt a Resolution of the City Council of the City of La Quinta approving the Negative Declaration for the Amendment to the Redevelopment Plan for La Quinta Redevelopment Project No. 2; and b. Adopt a Resolution of the Redevelopment Agency approving the Amendment to the Redevelopment Plan for La Quinta Redevelopment Project No. 2 and recommend to the City Council approval of said Amendment; and 1 125 C. Move to take up Ordinance No. _ by title and number only and waive further reading. Move to introduce Ordinance No. _ on first reading to amend the Redevelopment Plan for Project Area No. 2 to increase the cumulative tax increment revenue limit from $400,000,000 to $1,500,000,000. FISCAL IMPLICATIONS: The Amendment to the Redevelopment Plan for La Quinta Redevelopment Project No. 2 ("Amendment") increases the tax increment revenue limit from $400,000,000 to $1,500,000,000. This would enable the Agency to collect additional property tax increment revenue from La Quinta Redevelopment Project Area No. 2 ("Project Area No. 2"). This action does not increase property taxes or impose property assessments. Instead, it extends the current allocation of property tax revenue within Project Area No. 2 until the Redevelopment Plan expires in 2039. BACKGROUND AND OVERVIEW: In July 2003, the Redevelopment Agency directed staff to initiate the Amendment. The purpose was to increase the limit on the amount of tax increment revenue the Agency may receive from La Quinta Redevelopment Project Area No. 2 from $400,000,000 to $1,500,000,000. An analysis of the tax increment receipts and anticipated growth in Project Area No. 2 assessed values indicate that the existing $400,000,000 tax increment limit would be achieved by Fiscal Year 2020-2021, if property values grow at a rate of 3% per annum. If growth exceeds this amount (historical increases in assessed values have ranged from 10% to 26% per annum), this limit would be achieved sooner. The Redevelopment Plan for Project Area No. 2 ("Redevelopment Plan") expires in 2029 with the Agency receiving tax increment for indebtedness incurred before that date until 2039. Reaching the tax increment revenue limit prior to the 2039 date would impair the Agency's ability to retire existing tax allocation bonds and City General Fund loans, limit the initiation of new redevelopment initiatives that address blight within Project Area No. 2, and weaken the Agency's efforts to increase and improve the supply of housing affordable to very low, low and moderate income households. Reaching the tax increment revenue limit would impact the Agency's redevelopment efforts in the following ways: • The term of the Redevelopment Plan runs to May 2029 with the Agency able to receive tax increment for indebtedness incurred prior to that date until May 2039. If the Agency projects that the tax increment limit will be reached before the May 2039 date, the Agency must cease all non -housing redevelopment activities in Project Area No. 2, including repaying outstanding General Fund loans. z 02 126 • Project Area No. 2 has two outstanding bond debt obligations: the 1995 Housing Bonds of which 21 .3% of annual debt service payments are funded by Project Area No. 2 Housing Fund revenue until Fiscal Year 2025-26, and the 1998 non -housing bonds of which 100% of annual debt service payments are funded by non -Housing Fund revenue 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 to retire the 1998 Bonds, leaving no funds to repay outstanding General Fund loan obligations due to the City of La Quinta. • The Agency's Bond Counsel and Underwriter have determined that new housing bonds that pledge Project Area No. 2 housing fund revenue cannot be issued, given that the Agency would achieve the existing tax increment revenue limit at least 20 years prior to the term of the Redevelopment Plan. This severely impacts the Agency's ability to achieve 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. The July 2003 Agency action initiated the Redevelopment Plan Amendment process. Subsequently, the Planning Commission has reviewed and approved the Redevelopment Plan Amendment, Agency staff has consulted with affected taxing agencies regarding the potential fiscal impacts resulting from the Redevelopment Plan Amendment, and a community forum was held to review the Amendment with property owners, business owners and residential tenants. The proposed Amendment would modify the language contained in Section (702) Tax Increments of the Redevelopment Plan as follows: The number of dollars of taxes that may be divided and allocated to the Agency pursuant to Section 33670 of the Redevelopment Law shall not exceed $269 Milli $1,500,000,000 dollars, except by amendment of this Plan. Such limitation is exclusive of: - 03 127 The strikethrough text above would be deleted and a new cumulative limit of $1,500,000,000 would be established. No other modifications to the Redevelopment Plan are being proposed. Environmental Assessment Environmental Assessment 2003-494 has been completed. A Negative Declaration was prepared and circulated for the Plan Amendment. To date, no comments have been received. Staff is recommending the Agency Board certify the Negative Declaration of environmental impact for Environmental Assessment 2003-494. Agency Report to the City Council Attached is the Report to Council on the Redevelopment Plan Amendment (Attachment 1). This Report summarizes the reasons for the. Amendment, the conditions of blight that remain in Project Area No. 2 that will be addressed by the Amendment, presents the report and recommendations of the Planning Commission, and summarizes the Agency's consultations with affected taxing agencies, property owners and the community. The California Redevelopment Law provides that the Agency shall prepare the Report, and transmit the text of the Redevelopment Plan Amendment and the Report to the City Council prior to the public hearing on the Redevelopment Plan Amendment. Joint Public Hearing Pursuant to the Redevelopment Law, a public hearing must be held to receive testimony both for and against a Redevelopment Plan Amendment, prior to having the City Council and Redevelopment Agency Board consider the Amendment. On December 2, 2003, both the City Council and the Agency Board authorized staff to establish January 20, 2004 as the date for a joint public hearing of the City Council and Agency Board. A Notice of Public Hearing was transmitted, via first class mail, to all property and business owners, and residential owners and tenants within Project Area No. 2. Further, public hearing notices were transmitted via certified mail return receipt requested, to the eight taxing agencies that receive property tax increment revenue from Project Area No. 2. Finally, the joint public hearing notice was published in the Desert Sun once a week for four consecutive weeks beginning the week of December 22, 2003 and ending the week of January 12, 2004. On January 7, 2004, staff held a community forum where 20 residents and property owners within Project Area No. 2 attended (notice for this meeting was included in the Public Hearing Notice). The forum was designed to detail the reasons for the Amendment and answer questions. No significant issues were raised by those in attendance. The Redevelopment Law provides that the City Council and Agency may only consider action on the Amendment after any written objections to the Amendment are answered in writing. If written objections are submitted prior to, or during, the joint 4' 04 128 public hearing, then staff recommends that all actions be continued until February 3, 2004 so that staff and legal counsel may develop written responses. If no written objections are submitted, then staff recommends that the Agency Board and City Council consider the recommended actions. Ordinance The Ordinance that is before the City Council amends the Redevelopment Plan to increase the tax increment limit from $400,000,000 to $1,500,000,000. This would implement the financial provisions required to continue funding housing and non - housing redevelopment projects and retire outstanding bond and General Fund loan obligations. Per the Redevelopment Law, redevelopment plans are amended through ordinances considered by the legislative body of the community that established the Redevelopment Agency. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency Board include: 1. Conduct the Joint Public Hearing and after all testimony has been presented, close the Joint Public Hearing and if written objections have been submitted continue all actions on the Redevelopment Plan Amendment until February 3, 2004; or 2. Conduct the Joint Public Hearing and after all testimony has been presented, close the Joint Public Hearing and if no written objections are received consider the following actions: and a. Adopt a Resolution of the City Council of the City of La Quinta approving the Negative Declaration for the Amendment to the Redevelopment Plan for La Quinta Redevelopment Project No. 2; and b. Adopt a Resolution of the Redevelopment Agency approving the Amendment to the Redevelopment Plan for La Quinta Redevelopment Project No. 2 and recommend to the City Council of the City of La Quinta approval of said Amendment; and C. Move to take up Ordinance No. _ by title and number only and waive further reading. Move to introduce Ordinance No. _ on first reading to amend the Redevelopment Plan for Project Area No. 2 to increase the cumulative tax increment revenue limit from $400,000,000 to $1,500,000,000; or 3. Provide staff with alternative direction. J 05 129 Respectfully submitted, ry He an C mmunity Development Director Approved for submission by: Thomas P. Genovese, Executive Director Attachments: 1. Report to the City Council _-106 6 130 RESOLUTION NO. 2004 — A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA CERTIFYING A NEGATIVE DECLARATION OF ENVIRONMENTAL IMPACT PREPARED FOR THE AMENDMENT TO REDEVELOPMENT AREA NO. 2 CASE NO.: ENVIRONMENTAL ASSESSMENT 2003-494 PROJECT SPONSOR: LA QUNTA REDEVELOPMENT AGENCY WHEREAS, the City Council of the City of La Quinta, California, did on the 20' day of January, 2004 hold a duly noticed public hearing to consider Environmental Assessment 2003-494 to amend Redevelopment Area No. 2 for the purpose of increasing the limit on the cumulative tax increment revenue within Redevelopment Area No. 2, said area being located in the northerly section of the City, generally bounded by the City limits on the north, east and west and by 50" Avenue on the south. WHEREAS, said Environmental Assessment has been prepared in compliance with the requirements of "the Rules to Implement the California Environmental Quality Act of 1970; as amended (Resolution 83-68 adopted by the La Quinta City Council) in that the Community Development Department has prepared an Initial Study (EA 2003-494) and has determined that the proposed project would not have a significant adverse impact on the environment and therefore, a Negative Declaration of environmental impact should be filed; and, WHEREAS, a Notice of Intent to adopt the Negative Declaration in compliance with Pubic Resources Code (PRC) § 21092 was mailed by the City to the County Clerk of the County of Riverside and was recorded on December 11, 2003; and WHEREAS, upon hearing and considering all testimony and arguments, if any, of all interested persons desiring to be heard, said City Council did make the following findings to justify certification of said Environmental Assessment: 1. The proposed project will not be detrimental to the health, safety, or general welfare of the community either indirectly, or directly, in that no significant impacts were identified by Environmental Assessment 2003-489. 2. The proposed project will not have a potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife population to drop below self sustaining levels, threaten to eliminate a plant or animal community, reduce the number or restrict the range of rare or endangered plants or animals or eliminate important examples of the major periods of California history or prehistory in that the project area is largely urbanized. O f31 City Council Resolution No. 2004-_ Environmental Assessment 2003-494 Amendment to Redevelopment Area No.2 Adopted: January 20, 2004 3. There is no evidence before the City Council that the proposed project will have the potential for an adverse effect on wildlife resources or the habitat on which the wildlife depends. 4. The proposed project does not have the potential to achieve short-term environmental goals, to the disadvantage of long-term environmental goals, as no significant effect on environmental factors have been identified by the Environmental Assessment. 5. The proposed project will not result in impacts which are individually limited or cumulatively considerable when considering planned or proposed development in the immediate vicinity, as development patterns in the area will not be significantly affected by the proposed project in that no change to existing land uses is involved. 6. The proposed project will not have environmental effect that will adversely affect the human population, either directly or indirectly, in that the Environmental Assessment did not identify any significant impacts which would affect human health, risk potential or public services. 7. There is no substantial evidence in light of the entire record that the project may have a significant effect on the environment. 8. The City Council has considered Environmental Assessment 2003-494 and said Assessment reflects the independent judgment of the City. 9. The City has, on the basis of substantial evidence, rebutted the presumption of adverse effect set forth in 14 CAL Code Regulations 753.5(d). 10. The location and custodian of the City Council records relating to this project is the Community Development Department located at 78-495 Calle Tampico, La Quinta, California, 92553. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows: 1. That the above recitations are true and correct and constitute the findings of the City Council, for this Environmental Assessment. 2. That it does hereby certify Environmental Assessment 2003-494 for the reasons set forth in this resolution and as stated in the Environmental City Council Resolution No. 2004-_ Environmental Assessment 2003-494 Amendment to Redevelopment Area No.2 Adopted: January 20, 2004 Assessment Checklist on file in the Community Development Department and attached hereto. 3. That Environmental Assessment 2003-494 reflects the independent judgment of the City. PASSED, APPROVED AND ADOPTED at a regular meeting of the La Quinta City Council held this 20`h day of January, 2004, by the following vote, to wit; AYES: NOES: ABSENT: ABSTAIN: Don Adolph, Mayor City of La Quinta, California ATTEST: JUNE S. GREEK, City Clerk City of La Quinta, California APPROVED AS TO FORM: M. KATHERINE JENSON, City Attorney City of La Quinta, California n9 133 Environmental Checklist Form 1. Project Title: Amendment to Redevelopment Area No. 2 (EA 2003 -494) 2. Lead Agency Name and Address: City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 3. Contact Person and Phone Number: Jerry Herman, Director Community Development Department City of La Quinta 4. Project Location: Located in the northerly section of the City, bounded by Fred Waring Drive on the north, the City limits on the east and west and by Avenue 50 on the south. Areas north of Fred Waring Drive are excluded from the Project as are areas south and west of Washington Street from Avenue 48 to Avenue 50, within the City of La Quinta, County of Riverside. See Exhibit No. 1. 5. Project Sponsor's Name and Address: City of La Quinta Redevelopment Agency 78-495 Calle Tampico La Quinta, CA 92253 6. General Plan Designation: Low Density Residential predominates in the northern section of the project area, with commercial designations adjacent to the Highway 111 corridor. Pockets of park and other community designations are found through out the project area. It is bisected by the Whitewater River (designated W on the General Plan). 7. Zoning: Low Density Residential in the north with commercial uses designated for properties along the Highway 111 Corridor. Description of project: (Describe the whole action involved, including but not limited to later phases of the project, and any secondary, support, or off -site features necessary for its implementation. Attach additional sheets if necessary.) The City of La Quinta Redevelopment Agency ("Agency") proposes an amendment to Redevelopment Area No. 2 for the sole purpose of increasing the limit on the cumulative tax increment revenue from $400,000,000 to $1,500,000,000. This increase is being proposed in order to continue with projects and programs that eliminate blight, to fund affordable housing programs and projects, and to accommodate repayment of existing bond and other debt obligations. No additional programs or projects are being proposed as part of the amendment. The programs and projects to be undertaken are as described in the previously adopted plan for Redevelopment Area No. 2. Implementation of any future project, as that term is defined by CEQA, will be subject to its own CEQA clearance. 10 1/14/2004 -1- 1 % 4 Specifically, the Redevelopment Plan for Project Area No. 2 was adopted in 1989 and subsequently amended in 1994. Since that time, the Agency has been implementing programs identified in that plan. Raising the funding limit as is proposed in this amendment will facilitate the continuation of the programs contained in the adopted plan. The area in question is generally the northern third of the City of La Quinta, and totals approximately 3,100 acres in size. Land uses include residential, commercial and institutional. Exhibit No. 1 depicts the boundaries of Project Area No. 2. 9. Surrounding land uses and setting: Briefly describe the project's surroundings: North: Unincorporated vacant, residential and golf course uses (Bermuda Dunes) South: Low density residential and golf course uses West: City of Indian Wells - institutional and residential uses; Santa Rosa and San Jacinto Mountains National Monument East: City of Indio - vacant and residential uses 10. Other public agencies whose approval is required (e.g., permits, financing approval, or participation agreement.) None. 11. 1/14/2004 -2- 135 ENVIRONMENTAL FACTORS POTENTIALLY AFFECTED: The environmental factors checked below would be potentially affected by this project, involving at least one impact that is a "Potentially Significant Impact" as indicated by the checklist on the following pages. Aesthetics Biological Resources Hazards & Hazardous Materials Mineral Resources Public Services Utilities / Service Systems Agriculture Resources Cultural Resources Hydrology / Water Quality Noise Recreation Air Quality Geology /Soils Land Use / Planning Population / Housing Transportation/Traffic Mandatory Findings of Significance DETERIVIINATION: (To be completed by the Lead Agency) On the basis of this initial evaluation: X I find that the proposed project COULD NOT have a significant effect on the environment, and a NEGATIVE DECLARATION will be prepared. I find that although the proposed project could have a significant effect on the environment, there will not be a significant effect in this case because revisions in the project have been made by or agreed to by the project proponent. A MITIGATED NEGATIVE DECLARATION will be prepared. I find.that the proposed project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT is required. I find that the proposed project MAY have a "potentially significant impact" or "potentially significant unless mitigated" impact on the environment, but at least one effect 1) has been adequately analyzed in an earlier document pursuant to applicable legal standards, and 2) has been addressed by mitigation measures based on the earlier analysis as described on attached sheets. An ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the effects that remain to be addressed. I find that although the proposed project could have a significant effect on the environment, because all potentially significant effects (a) have been analyzed adequately in an earlier EIR or NEGATIVE DECLARATION pursuant to applicable standards, and (b) have been avoided or mitigated pursuant to that earlier EIR or NEGATIVE DECLARATION, including revisions or mitigation measures that are impose upon the prop ed project, nothing further is required. December 2, 2003 nature Date 1/14/2004 -3- EVALUATION OF ENVIRONMENTAL IMPACTS: 1) A brief explanation is required for all answers except "No Impact" answers that are adequately supported by the information sources a lead agency cites in the parentheses following each question. A "No Impact" answer is adequately supported if the referenced information sources show that the impact simply does not apply to projects like the one involved (e.g., the project falls outside a fault rupture zone). A "No Impact" answer should be explained where it is based on project -specific factors as well as general standards (e.g., the project will not expose sensitive receptors to pollutants, based on a project -specific screening analysis). 2) All answers must take account of the whole action involved, including off -site as well as on -site, cumulative as well as project -level, indirect as well as direct, and construction as well as operational impacts. 3) Once the lead agency has determined that a particular physical impact may occur, then the checklist answers must indicate whether the impact is potentially significant, less than significant with mitigation, or less than significant. "Potentially Significant Impact" is appropriate if there is substantial evidence that an effect may be significant. If there are one or more 'Potentially Significant Impact" entries when the determination is made, an EIR is required. 4) "Negative Declaration: Less Than Significant With Mitigation Incorporated" applies where the incorporation of mitigation measures has reduced an effect from "Potentially Significant Impact" to a "Less Than Significant Impact." The lead agency must describe the mitigation measures, and briefly explain how they reduce the effect to a less than significant level (mitigation measures from Section XVH, "Earlier Analyses," may be cross-referenced). 5) Earlier analyses may be used where, pursuant to the tiering, program EIR, or other CEQA process, an effect has been adequately analyzed in an earlier EIR or negative declaration. Section 15063(c)(3)(D). In this case, a brief discussion should identify the following: a) Earlier Analysis Used. Identify and state where they are available for review. b) Impacts Adequately Addressed. Identify which effects from the above checklist were within the scope of and adequately analyzed in an earlier document pursuant to applicable legal standards, and state whether such effects were addressed by mitigation measures based on the earlier analysis. c) Mitigation Measures. For effects that are "Less than Significant with Mitigation Measures Incorporated," describe the mitigation measures which were incorporated or refined from the earlier document and the extent to which they address site -specific conditions for the project. 6) Lead agencies are encouraged to incorporate into the checklist references to information sources for potential impacts (e.g., general plans, zoning ordinances). Reference to a previously prepared or outside document should, where appropriate, include a reference to the page or pages where the statement is substantiated. 7) Supporting Information Sources: A source list should be attached, and other sources used or individuals contacted should be cited in the discussion. 13 1/14/2004 -4 1� 8) This is only a suggested form, and lead agencies are free to use different formats; however, lead agencies should normally address the questions from this checklist that are relevant to a project's environmental effects in whatever format is selected. 9) The explanation of each issue should identify: a) the significance criteria or threshold, if any, used to evaluate each question; and b) the mitigation measure identified, if any, to reduce the impact to less than significance Potentially Less Than Less Than No Significant Significant w/ Significant Impact Impact Mitigation Impact I. AESTHETICS -- Would the project: a) Have a substantial adverse effect on a X scenic vista? (General Plan Exhibit 3.6) b) Substantially damage scenic resources, including, but not limited to, trees, rock X outcroppings, and historic buildings within a state scenic highway? (Project Description Materials) c) Substantially degrade the existing visual character or quality of the site and X its surroundings? (Project Description Materials) d) Create a new source of substantial light or glare which would adversely X affect day or nighttime views in the area? (Project Description Materials) I. a)- d) Approval of the proposed amendment will, in and of itself, have no impacts on aesthetics. 1/14/2004 -5- Potentially Less Than Less Than No Significant Significant w/ Significant Impact Impact Mitigation Impact II. AGRICULTURE RESOURCES: Would theproject: a) Convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland), as shown on the maps prepared pursuant to the Farmland X Mapping and Monitoring Program of the California Resources Agency, to non- agricultural use? (General Plan EIR p. III- 22 ff.) b) Conflict with existing zoning for agricultural use, or a Williamson Act X contract? (Zoning Map) c) Involve other changes in the existing environment which, due to their location or nature, could result in conversion of X Farmland, to non-agricultural use? (General Plan EIR p. III-22 ff.) II. a)-c) The project area is largely urbanized and contains no agricultural uses. There are no Williamson Act contracts that affect the project site. The proposed project will have no impact on agricultural resources. Potentially Less Than Less Than No Significant Significant w/ Significant Impact Impact Mitigation Impact III. AIR QUALITY: Would the project: a) Conflict with or obstruct implementation of the applicable air X quality plan? (SCAQMD CEQA Handbook) b) Violate any air quality standard or contribute substantially to an existing or X projected air quality violation? (SCAQMD CEQA Handbook) 15 1/14/2004 -6- 1 v 9 c) Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is non - attainment under an applicable federal or state ambient air quality standard (including releasing emissions which X exceed quantitative thresholds for ozone precursors)? (SCAQMD CEQA Handbook, 2002 PM10 Plan for the Coachella Valley) d) Expose sensitive receptors to substantial pollutant concentrations? X (Project Description Materials, Aerial Photo) e) Create objectionable odors affecting a substantial number of people? (Project X Description Materials) III a) —e) Approval of the proposed amendment will, in and of itself, have no impacts on air quality. Potentially Less Than Less Than No Significant Significant w/ Significant Impact Impact Mitigation Impact IV. BIOLOGICAL RESOURCES -- Would the ro'ect: a) Have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensitive, or special status X species in local or regional plans, policies, or regulations, or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? (General Plan MEA, p. 74 ff.) b) Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or X regional plans, policies, regulations or by the California Department of Fish and Game or US Fish and Wildlife Service? (General Plan MEA, p. 74 ff.) 1/14/2004 -7- 16 140 c) Have a substantial adverse effect on federally protected wetlands as defined by Section 404 of the Clean Water Act (including, but not limited to, marsh, X vernal pool, coastal, etc.) through direct removal, filling, hydrological interruption, or other means? (General Plan MEA, p. 74 ff.) d) Interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native resident or migratory X wildlife corridors, or impede the use of native wildlife nursery sites? (General Plan MEA, p. 74 ff.) e) Conflict with any local policies or ordinances protecting biological resources, such as a tree preservation X policy or ordinance? (General Plan MEA, p. 74 ff.) f) Conflict with the provisions of an adopted Habitat Conservation Plan, Natural Community Conservation Plan, X or other approved local, regional, or state habitat conservation plan? (General Plan MEA, p. 74 ff.) IV. a)-f) The project area includes recommended survey areas for the Coachella Valley Giant Sand Treader Cricket, the Flat -tailed Horned Lizard, the Palm Springs Ground Squirrel, and the Palm Springs Pocket Mouse. It is located within the fee mitigation area for the Fringe -Toed Lizard. In addition, rugged terrain on the western fringes of the project area are identified as critical habitat for the Peninsular Bighorn Sheep. However, approval of the proposed amendment will, in and of itself, have no impacts on biological resources. Potentially Less Than Less Than No Significant Significant w/ Significant Impact Impact Mitigation Impact V. CULTURAL RESOURCES — Would the roject: a) Cause a substantial adverse change in the significance of a historical resource X as defined in Government Code Sec 15064.5 (General Plan MEA, p. 123 ff.) 1/14/2004 -8- 141 b) Cause a substantial adverse change in the significance of an archaeological X resource pursuant to Sec 15064.5? (General Plan MEA, p. 123 ff.) c) Directly or indirectly destroy a unique paleontological resource or site or unique X geologic feature? (General Plan Exhibit 6.8) d) Disturb any human remains, including those interred outside of formal X cemeteries? V. a) - d) Although the project area has been identified as an area of low paleontologic sensitivity, the City of La Quinta has been identified as having one of the most dense concentrations of archaeological sites in California. General Plan policies and City ordinances ensure that appropriate surveys are conducted prior to development occurring. However, approval of the proposed amendment will, in and of itself, have no impacts on cultural resources. Potentially Less Than Less Than No Significant Significant w/ Significant Impact Impact Mitigation Impact VI. GEOLOGY AND SOILS — Would the project: a) Expose people or structures to potential substantial adverse effects, X including the risk of loss, injury, or death involving: i) Rupture of a known earthquake fault, as delineated on the most recent Alquist- Priolo Earthquake Fault Zoning Map X issued by the State Geologist for the area or based on other substantial evidence of a known fault? (General Plan MEA Exhibit 6.2) ii) Strong seismic ground shaking? X (General Plan MEA Exhibit 6.2) 18 1/14/2004 -9- 142 iii) Seismic -related ground failure, including liquefaction? (General Plan X Exhibit 8.2) iv) Landslides? (General Plan Exhibit 8.3) X b) Result in substantial soil erosion or X the loss of topsoil? (General Plan Exhibit 8.4) c) Be located on a geological unit or soil that unstable, or that would become unstable as a result of the project, and X potentially result in on- or off -site landslides, lateral spreading, subsidence, liquefaction or collapse? (General Plan Exhibit 8.3) d) Be located on expansive soil, as defined in Table 18-1-B of the Uniform X Building Code (1994), creating substantial risks to life or property? (General Plan Exhibit 8.1) e) Have soils incapable of adequately supporting the use of septic tanks or alternative waste water disposal systems where sewers are not available for the X disposal of waste water? (General Plan Exhibit 8.1) VI. a)-e) The project area is located approximately 3 — 6 miles from the San Andreas Fault and is subject to seismic events, as is all of Southern California. Most of the project area is identified as a potential area of liquefaction hazard, although the western fringes of rugged terrain are an exception. Nevertheless, approval of the proposed amendment will, in and of itself, have no impacts on geology and soils. Potentially Significant Impact Less Than Significant w/ Mitigation Less Than Significant Impact No Impact VII. HAZARDS AND HAZARDOUS MATERIALS --Would the project: a) Create a significant hazard to the public or the environment through the X routine transport, use, or disposal of hazardous materials? (Project Description Materials) 1/14/2004 -10- ' jJ 1914 3 b) Create a significant hazard to the public or the environment through reasonably foreseeable upset and X accident conditions involving the release of hazardous materials into the environment? (Project Description Materials) c) Emit hazardous emissions or handle hazardous or acutely hazardous X materials, substances, or waste within one -quarter mile of an existing or proposed school? (Project Description Materials) d) Be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government Code X Section 65962.5 and, as a result, would it create a significant hazard to the public or the environment? (DTSC List) e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a X public airport or public use airport, would the project result in a safety hazard for people residing or working in the project area? (General Plan land use map) f) For a project within the vicinity of a private airstrip, would the project result in a safety hazard for people residing or X working in the project area? (General Plan land use map) g) Impair implementation of or physically interfere with an adopted X emergency response plan or emergency evacuation plan? (General Plan MEA p. 95 ff) h) Expose people or structures to a significant risk of loss, injury or death involving wildland fires, including where X wildlands are adjacent to urbanized areas or where residences are intermixed with wildlands? (General Plan land use map) 1/14/2004 -11- .20 144 VII. a)— h) Approval of the proposed amendment will, in and of itself, have no impacts on hazards and hazardous materials. Furthermore, the project site is not within the vicinity of an airport or airstrip. Potentially Less Than Less Than No Significant Significant w/ Significant Impact Impact Mitigation Impact VIII. HYDROLOGY AND WATER QUALITY -- Would theproject: a) Violate any water quality standards or X waste discharge requirements? (General Plan MEA, p. 92ff) b) Substantially deplete groundwater supplies or interfere substantially with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level (e.g., the production rate of X pre-existing nearby wells would drop to a level which would not support existing land uses or planned uses for which permits have been granted)? (General Plan MEA, p. 92ff)) c) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the X course of a stream or river, in a manner which would result in substantial erosion or siltation on- or off -site? d) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the X course of a stream or river, or substantially increase the rate or amount of surface runoff in a manner which would result in flooding on- or off -site? e) Create or contribute runoff water which would exceed the capacity of X existing or planned stormwater drainage systems or provide substantial additional sources of polluted runoff? 1/14/2004 -12- 21 4.5 f) Place housing within a 100-year flood hazard area as mapped on a federal Flood Hazard Boundary or Flood Insurance X Rate Map or other flood hazard delineation map? (General Plan MEA Exhibit 6.6) g) Place within a 100-year flood hazard area structures which would impede or X redirect flood flows? (General Plan MEA Exhibit 6.6) VIII. a)- g) The Whitewater River sub -basin is actively managed by the Coachella Valley Water District. City policies and ordinances aid in this management effort. The Whitewater River serves as a major segment of the regional flood control system and is identified as being in the 100-500 year flood plain. Certain segments of the project area adjacent to it are identified with in the 500 year flood zone. The bulk of the project area is not identified as being in a flood hazard zone. However, approval of the proposed amendment will, in and of itself, have no impacts on hydrology and water quality. Potentially Less Than Less Than No Significant Significant w/ Significant Impact Impact Mitigation Impact IX. LAND USE AND PLANNING - Would the project: a) Physically divide an established X community? (Project Description Materials) b) Conflict with any applicable land use plan, policy, or regulation of an agency with jurisdiction over the project (including, but not limited to the general X plan, specific plan, local coastal program, or zoning ordinance) adopted for the purpose of avoiding or mitigating an environmental effect? (General Plan Land Use Element) c) Conflict with any applicable habitat conservation plan or natural community X conservation plan? (Master Environmental Assessment p. 74 ff.) 1/14/2W4 -13- ` U 2446 IX. a)-c) The adopted Redevelopment Plan for Project Area No. 2 is consistent with, and helps to implement the City's General Plan and its zoning regulations. The proposed amendment makes no change in this relationship Approval of the proposed amendment will, in and of itself, have no impacts on land use and planning. Potentially Less Than Less Than No Significant Significant w/ Significant Impact Impact Mitigation Impact X. MINERAL RESOURCES — Would the project: a) Result in the loss of availability of a known mineral resource that would be of X value to the region and the residents of the state? (General Plan MEA, p. 72 ff.) b) Result in the loss of availability of a locally -important mineral resource X recovery site delineated on a local general plan, specific plan or other land useplan? (General Plan MEA, p. 72 ff.) X. a) - b) Nearly all of the project area is identified as being in the MRZ 1 zone indicating that no significant mineral deposits are present or that there is little likelihood of their presence. A small segment of the project area is designated as MRZ 3, indicating that it contains mineral deposits, but their significance cannot be evaluated from available data. However, most of the MRZ 3 area is within the Santa Rosa and San Jacinto Mountains National Monument. Accordingly, approval of the proposed amendment will, in and of itself, have no impacts on mineral resources. Potentially Significant Impact Less Than Significant w/ Mitigation Less Than Significant Impact No Impact XI. NOISE - Would the project result in: a) Exposure of persons to or generation of noise levels in excess of standards established in the local general plan or X noise ordinance, or applicable standards of other agencies? (General Plan MEA, P. 111 ff.) 23 1,14/2W4 -14- 147 b) Exposure of persons to or generation of excessive groundborne vibration or X groundborne noise levels? (Project Description Materials) c) A substantial permanent increase in ambient noise levels in the project X vicinity above levels existing without the project? (Project Description Materials) d) A substantial temporary or periodic increase in ambient noise levels in the X project vicinity above levels existing without the project? (General Plan land use map) e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, X would the project expose people residing or working in the project area to excessive noise levels? (General Plan land use map) f) For a project within the vicinity of a private airstrip, would the project expose people residing or working in the project area to excessive noise levels? (General X Plan land use map) XI. a)-d Approval of the proposed amendment will, in and of itself, have no impacts on noise. e)-f) The project site is not within the vicinity of an airport or airstrip. Potentially Significant Impact Less Than Significant w/ Mitigation Less Than Significant Impact No Impact XII. POPULATION AND HOUSING n Would the project: a) Induce substantial population growth in an area, either directly (for example, by proposing new homes and businesses) X or indirectly (for example, through extension of roads or other infrastructure)? (General Plan, p. 9 ff.) 1/14/2004 -15- � ` ' 14 8 b) Displace substantial numbers of existing housing, necessitating the X construction of replacement housing elsewhere? (General Plan, p. 9 ff., Project Description Materials) c) Displace substantial numbers of people, necessitating the construction of X replacement housing elsewhere? (General Plan, p. 9 ff., Project Description Materials) XII. a)-c) The adopted Redevelopment Plan for Project Area No. 2 addresses housing issues and programs. The proposed amendment makes no changes in those programs. However, approval of the proposed amendment will, in and of itself, have no impacts on population and housing. Potentially Less Than Less Than No Significant Significant w/ Significant Impact Impact Mitigation Impact XIII. PUBLIC SERVICES a) Would the project result in substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities, need for new or physically altered governmental facilities, the construction of which could X cause significant environmental impacts, in order to maintain acceptable service ratios, response times or other performance objectives for any of the public services: Fire protection? (General Plan MEA, p. 57) X Police protection? (General Plan MEA, p. 57) X Schools? (General Plan MEA, p. 52 ff.) X Parks? (General Plan; Recreation and Parks X Master Plan) Other public facilities? (General Plan MEA, X p. 46 ff.) 25 1/14/2W4 -16- 149 XIII. The adopted Redevelopment Plan for Project Area No. 2 addresses several infrastructure issues and programs. The proposed amendment makes no changes in those programs. However, approval of the proposed amendment will, in and of itself, have no impacts on public services. Potentially Less Than Less Than No Significant Significant w/ Significant Impact Impact Mitigation Impact XIV. RECREATION -- a) Would the project increase the use of existing neighborhood and regional parks or other recreational facilities such that X substantial physical deterioration of the facility would occur or be accelerated? (Project Description Materials) b) Does the project include recreational facilities or require the construction or X expansion of recreational facilities which might have an adverse physical effect on the environment? (Project Description Materials) XIV. a) - b) Approval of the proposed amendment will, in and of itself, have no impacts on recreation. Potentially Significant Impact Less Than Significant w/ Mitigation Less Than Significant Impact No Impact XV. TRANSPORTATION/TRAFFIC -- Would the project: a) Cause an increase in traffic which is substantial in relation to the existing traffic load and capacity of the street system (i.e., result in a substantial increase in either the number of vehicle X trips, the volume to capacity ratio on roads, or congestion at intersections)? (General Plan MEA, P. 27ff.) 26 1/14/2004 -17- 150 b) Exceed, either individually or cumulatively, a level of service standard X established by the county congestion management agency for designated roads or highways? (General Plan MEA, p. 27 ff.) c) Result in a change in air traffic patterns, including either an increase in X traffic levels or a change in location that results in substantial safety risks? (No air traffic involved in project) d) Substantially increase hazards due to a design feature (e.g., sharp curves or dangerous intersections) or incompatible uses (e.g., farm equipment)? (Project X Description Materials) e) Result in inadequate emergency X access? (Project Description Materials) f) Result in inadequate parking capacity? X (Project.Description Materials) g) Conflict with adopted policies, plans, or programs supporting alternative X transportation (e.g., bus turnouts, bicycle racks)? (Project Description Materials) XV. a)-g) The adopted Redevelopment Plan for Project Area No. 2 addresses several transportation issues and programs. The proposed amendment makes no changes in those programs. Accordingly, approval of the proposed amendment will, in and of itself, have no impacts on transportation or traffic. Potentially Significant Impact Less Than Significant w/ Mitigation Less Than Significant Impact No Impact XVI. UTILITIES AND SERVICE X SYSTEMS B Would the project: a) Exceed wastewater treatment requirements of the applicable Regional X Water Quality Control Board? (General Plan MEA, p. 58 ff.) �- 1/14/2004 -18- 2'7 i b) Require or result in the construction of new water or wastewater treatment facilities or expansion of existing X facilities, the construction of which could cause significant environmental effects? (General Plan MEA, p. 58 ff.) c) Require or result in the construction of new storm water drainage facilities or expansion of existing facilities, the X construction of which could cause significant environmental effects? (General Plan MEA, p. 58 ff.) d) Have sufficient water supplies available to serve the project from existing entitlements and resources, or X are new or expanded entitlements needed? (General Plan MEA, p. 58 ff.) e) Result in a determination by the wastewater treatment provider which serves or may serve the project that it has X adequate capacity to serve the project's projected demand in addition to the provider's existing commitments? (General Plan MEA, p. 58 ff.) f) Be served by a landfill with sufficient permitted capacity to accommodate the X project's solid waste disposal needs? (General Plan MEA, p. 58 ff.) g) Comply with federal, state, and local statutes and regulations related to solid X waste? (General Plan MEA, p. 58 ff.) XVI. a)-g) ) The adopted Redevelopment Plan for Project Area No. 2 addresses several wastewater and stormwater projects and programs. The proposed amendment makes no changes in those programs. Accordingly, approval of the proposed amendment will, in and of itself, have no impacts on utilities and service systems. W 1/14/2004 -19- .- 1-�2 Potentially Less Than Less Than No Significant Significant w/ Significant Impact Impact Mitigation Impact XVII. MANDATORY FINDINGS OF SIGNIFICANCE -- a) Does the project have the potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self- sustaining levels, threaten to eliminate a X plant or animal community, reduce the number or restrict the range of a rare or endangered plant or animal or eliminate important examples of the major periods of California history or prehistory? b) Does the project have the potential to X achieve short-term, to the disadvantage of long-term environmental goals? c) Does the project have impacts that are individually'limited, but cumulatively considerable? ("Cumulatively considerable" means that the incremental X effects of a project are considerable when viewed in connection with the effects of past projects, the effects of other current projects, and the effects of probable future projects)? d) Does the project have environmental effects which will cause substantial X adverse effects on human beings, either directly or indirectly? XVII. a) The project area has been largely developed for many years and contains very limited potential habitat for fish or wildlife. Approval of the proposed project will not degrade the quality of habitat in the area. Nor will the project have any impact on cultural resources. XVII. b) The project is consistent with the long term goals of the General Plan. Given the relationship between the General Plan and the Redevelopment Plan, the proposed project will help further a variety of General Plan Goals and Policies. There is no potential for the project to achieve short term goals to the disadvantage of long term goals. 29 1/14/2004 -20- 1 �) XVII. c) The impacts associated with the project are not cumulatively considerable. XVII. d) No impacts have been identified that are substantially adverse to human beings. XVIII. EARLIER ANALYSES. Earlier analyses may be used where, pursuant to the tiering, program EIR, or other CEQA process, one or more effects have been adequately analyzed in an earlier EIR or negative declaration. Section 15063(c)(3)(D). In this case a discussion should identify the following on attached sheets: a) Earlier analyses used. Identify earlier analyses and state where they are available for review. None b) Impacts adequately addressed. Identify which effects from the above checklist were within the scope of and adequately analyzed in an earlier document pursuant to applicable legal standards, and state whether such effects were addressed by mitigation measures based on the earlier analysis. Not applicable. c) Mitigation measures. For effects that are "Less than Significant with Mitigation Incorporated," describe the mitigation measures which were incorporated or refined from the earlier document and the extent to which they address site -specific conditions for the project. Not applicable. Sources of Information: City of La Quinta Comprehensive General Plan, adopted March 20, 2002 City of La Quinta Master Environmental Assessment, adopted March 20, 2002. City of La Quinta Comprehensive General Plan Draft EIR, July 2001 Redevelopment Plan for the La Quinta Project Area No. 2 30 1/14/2004 -21- 154 RESOLUTION NO. RA A RESOLUTION OF THE LA QUINTA REDEVELOPMENT AGENCY APPROVING THE AMENDMENT TO THE REDEVELOPMENT PLAN FOR LA QUINTA REDEVELOPMENT PROJECT NO. 2 REDEVELOPMENT PROJECT NO. 2 WHEREAS, the La Quinta Redevelopment Agency ("Agency"), is a public body, corporate and politic, duly created, established, and authorized to transact business and exercise its powers under and pursuant to the Community Redevelopment Law, Part 1 of Division 24, commencing with Section 33000 of the Health and Safety Code of the State of California ("CRL"); and WHEREAS, the Redevelopment Plan for La Quinta Redevelopment Project No. 2 ("Redevelopment Plan") was adopted on May 16, 1989 by Ordinance No. 139 of the City of La Quinta ("City"), which established a redevelopment project known and designated as La Quinta Redevelopment Project No. 2 ("Project No. 2"); and WHEREAS, the Redevelopment Plan was amended by a technical amendment thereto by Ordinance No. 259, adopted on December 20, 1994, to conform the Redevelopment Plan to the requirements of State law, Assembly Bill 1290, Ch. 942 of Stats. 1993 ("AB1 290 Amendment"); and WHEREAS, the Redevelopment Plan as amended by the AB1 290 Amendment is hereinafter referred to as the "Plan;" and WHEREAS, the Plan delineates a redevelopment project area known and designated as "Project Area No. 2;" and WHEREAS, the Agency has undertaken an amendment to the Plan that increases the limitation on the number of dollars that may be allocated to the Agency from Project No. 2 pursuant to Health and Safety Code Section 33670(b) ("Amendment"); and WHEREAS, the proposed Amendment would not modify the boundaries of Project Area No. 2 nor any other provision of the Plan other than as set forth in the previous Recital; and -5 5 Resolution No. RA 2004- Redevelopment Project No. 2 Amendment Adopted January 20, 2004 WHEREAS, the City Council has received from the Agency the proposed Amendment, a copy of which is on file with the City Clerk, together with the Report of -the Agency prepared pursuant to Section 33352 and Section 33457.1 of the CRL (the "Report to City Council"), which includes a description and discussion of the proposed Amendment; and WHEREAS, the City Council and the Agency held a joint public hearing on January 20, 2004, concerning the adoption of the proposed Amendment; and WHEREAS, notice of the joint public hearing was duly and regularly published as required by the CRL and a copy of said notice and affidavit of publication are on file with the City Clerk of the City and Secretary of the Agency; and WHEREAS, copies of the notice of the joint public hearing were mailed by first-class mail to all residents and businesses in Project Area No. 2 at least thirty (30) days prior to the joint public hearing; and WHEREAS, the Agency has considered the Report to City Council for the Amendment, and has provided an opportunity for all persons to be heard, and has received and considered all evidence and testimony presented for or against any and all aspects of the Amendment; and WHEREAS, pursuant to Health and Safety Code Section 33357, after the close of the joint public hearing the Agency may proceed to approve the Amendment prior to action on the Amendment by the City Council. NOW, THEREFORE, THE LA QUINTA REDEVELOPMENT AGENCY DOES HEREBY RESOLVE, ORDER, AND DETERMINE AS FOLLOWS: Section 1. Each of the above recitals is true and correct and are incorporated herein. Section 2. The Agency hereby approves the Amendment and the Agency recommends that the City Council of the City of La Quinta adopt an ordinance approving the Amendment and designating the Redevelopment Plan as amended by the Amendment as the official Redevelopment Plan for La Quinta Redevelopment Project No. 2. GAWPD0CS\CCReso-00A\RDA Proj2Arnd1-04.D0C 3t) 15 6 Resolution No. RA 2004- Redevelopment Project No. 2 Amendment Adopted January 20, 2004 PASSED, APPROVED, and ADOPTED this 20th day of January 2004, by the following vote: AYES: NOES: ABSTAIN: ABSENT: Terry Henderson, Chair La Quinta Redevelopment Agency ATTEST: JUNE S. GREEK, CMC, Agency Secretary La Quinta Redevelopment Agency APPROVED AS TO FORM: M. KATHERWE JENSON, Agency Counsel La Quinta Redevelopment Agency GAWPD0CS\CCReso-00A\RDA Proj2Amd1-04.D0C 15 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING AND ADOPTING AN AMENDMENT TO THE REDEVELOPMENT PLAN FOR LA QUINTA REDEVELOPMENT PROJECT NO. 2 WHEREAS, the City Council of the City of La Quinta (the "City" or "City Council" as appropriate) approved and adopted the Redevelopment Plan for La Quinta Redevelopment Project No. 2 on May 16, 1989 by Ordinance No. 139, as amended by a technical amendment adopted on December 20, 1994, by Ordinance No. 259, to conform the Plan to the requirements of State law, Assembly Bill 1290, Ch. 942 of Stats. 1993 (collectively, the "Plan"); and WHEREAS, the Plan delineates the boundaries of the redevelopment project for Project No. 2 ("Project Area No. 2"); and WHEREAS, the La Quinta Redevelopment Agency (the "Agency") has initiated proceedings to adopt a proposed amendment to the Plan, the purpose of which Amendment is to increase the number of tax increment dollars which may be allocated to the Agency under the Plan pursuant to Health & Safety Code Section 33679(b) (the "Amendment"); and WHEREAS, the California Community Redevelopment Law (the "CRL") (California Health and Safety Code Section 33000 et seq.) permits the adoption of amendments to redevelopment plans; and WHEREAS, the City Council has received from the Agency the proposed Amendment, a copy of which is on file with the City Clerk, together with the Report of the Agency prepared pursuant to Section 33352 and Section 33457.1 of the CRL (the "Report to City Council"), which includes a description and discussion of the proposed Amendment; and WHEREAS, the Agency has prepared a Negative Declaration for the Amendment in compliance with the California Environmental Quality Act and the City Council has approved such document; and WHEREAS, the Planning Commission of the City of La Quinta has submitted to the City Council its certification that the proposed Amendment conforms to the La Quinta General Plan; and 34 G:\WPDOCS\Ordinances\Proj 2 Plan Amendmentl-04.DOC Ordinance No. Redevelopment Plan Amendment Redevelopment Project No. 2 WHEREAS, the City Council and the Agency held a joint public hearing on January 20, 2004, concerning the adoption of the proposed Amendment; and WHEREAS, notice of the joint public hearing was duly and regularly published as required by the CRIL and a copy of said notice and affidavit of publication are on file with the City Clerk of the City and Secretary of the Agency; and WHEREAS, copies of the notice of the joint public hearing were mailed by first-class mail to all residents and businesses in Project Area No. 2 at least thirty (30) days prior to the joint public hearing; and WHEREAS, Section 33457.1 of the CRL, provides that to the extent warranted by the proposed Amendment, this Ordinance shall contain the findings required by Section 33367 of the CRL; and WHEREAS, the City Council has considered the Report to City Council for the Amendment, and has provided an opportunity for all persons to be heard, and has received and considered all evidence and testimony presented for or against any and all aspects of the Amendment. THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, DOES ORDAIN AS FOLLOWS: SECTION 1. The purpose and intent of the City Council with respect to Amendment is to increase from $400,000,000 to $1,500,000,000 the total number of tax increment dollars which may be allocated from Project Area No. 2 under the Plan to the Agency pursuant to Health and Safety Code Section 33670(b), in order to allow the Agency to undertake and implement projects to continue alleviating blight in the Project Area No. 2 as set forth in the Report to City Council, including but not limited to new affordable housing opportunities so the Agency may meet its affordable housing requirements under the CRIL and the Agency's adopted Second Amended Housing Affordability Compliance Plan. SECTION 2. The City Council hereby finds and determines, based on the evidence in the record, including, but not limited to, the Report to City Council, and all documents referenced therein: a. The finding that the Project Area No. 2 is a blighted area, the redevelopment of which is necessary to effectuate the purposes of the Community Redevelopment Law, was made in Ordinance No. 139 G:\WPDOCS\Ordinances\Proj 2 Plan Amendment 1 -04. DOC 2 Ordinance No. Redevelopment Plan Amendment Redevelopment Project No. 2 when the Plan was originally adopted. The City Council finds and determines that W such finding and determination set forth in Ordinance No. 2776 is final and conclusive, (ii) the Amendment does not add territory to the Project Area No. 2 or make any other revisions to the Plan that affects this previously -made finding and determination, (iii) such previously made finding and determination remains valid and effective, (iv) no further finding or determination concerning the blight finding set forth in Ordinance No. 139 is required for the Amendment, and (v) as set fort in the record, including but not limited to the Report to Council, significant blight remains in Project Area No. 2 and such blight cannot be eliminated without the establishment of additional debt and the increase in the number of dollars to be allocated to the Agency. b. The proposed Amendment will allow continued redevelopment to occur within Project Area No. 2 in conformity with the CRIL and in the interests ofthe public health, safety and welfare. This finding is based in part, as set fort in the record including but not limited to the Report to Council, upon the fact that the Amendment will enable the Agency to fund additional projects to address blighting conditions that remain including but not limited to project to improve, increase, and preserve affordable housing opportunities to enable the Agency to meet its affordable housing obligations under the CRIL and the Agency's adopted Second Amended Affordability Housing Compliance Plan. C. The finding that the carrying out of the Plan is economically sound and feasible was made in Ordinance No. 139 when the Plan was originally adopted and the City Council finds and determines that (i) such finding and determination set forth in Ordinance No. 139 is final and conclusive, (ii) the Amendment does not add territory to the Project Area No. 2 or make any other revisions to the Plan that affects this previously -made finding and determination, and (iii) such previously made finding and determination remains valid and effective. The Plan as amended by the Amendment is economically sound and feasible in that, as set fort in the record, including but not limited to the Report to Council, increasing the number of dollars to be allocated to the Agency under the Plan pursuant to Health and Safety Code Section 33670(b) will enable the Agency to undertake and implement projects to address the remaining blight in Project Area No. 2 including but not limited to improving, increasing, and preserving affordable housing opportunities to enable the Agency to meet its affordable housing obligations under G:\WPDOCS\Ordinances\Proj 2 Plan Arnendment'l-04MOC 36 160 Ordinance No. Redevelopmen�_P_Ian Amendment Redevelopment Project No. 2 the CRIL and the Agency's adopted Second Amended Affordability Housing Compliance Plan. d. The Amendment conforms to the La Quinta General Plan including, but not limited to, the Housing Element thereof, which substantially complies with the requirements of Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code. This finding is based in part on the finding of the Planning Commission of the City La Quinta that the Amendment conforms to the La Quinta General Plan. e. The carrying out of the Plan as amended by the Amendment, will promote the public peace, health, safety, and welfare of the City of La Quinta and will effectuate the purposes and policies of the CRL. This finding is based in part, as set fort in the record, including but not limited to the Report to Council, on the fact that the Amendment will benefit Project Area No. 2 by continuing to provide the Agency with the necessary financial resources to correct conditions of blight including but not limited to improving, increasing, and preserving affordable housing opportunities to enable the Agency to meet its affordable housing obligations under the CRL and the Agency's adopted Second Amended Affordability Housing Compliance Plan. f. The City Council, in Ordinance No. 139, found and determined that the condemnation of real property, to the extent provided for in the Plan, is necessary to the execution of the Plan, and adequate provisions have been made for payment for property to be acquired as provided by law. The City Council finds and determines that (i) such finding and determination set forth in Ordinance No. 139 is final and conclusive, 00 the Amendment does not add territory to the Project Area No. 2, alter or amend any provision concerning the condemnation of real property, or make any other revisions to the Plan that affects this previously -made finding and determination, (iii) such previously made finding and determination remains valid and effective, and Ov) no further finding or determination concerning the foregoing required for the Amendment. 9. The City Council, in Ordinance No. 139, found and determined that the Agency adopted a feasible method and plan for the relocation of families and persons displaced from Project Area No. 2, if the Plan should result in the temporary or permanent displacement of any G:\WPDOCS\Ordinances\Proj 2 Plan Arnendment'l-04MOC 37 4 161 Ordinance No. Redevelopment Plan Amendment Redevelopment Project No. 2 occupants of housing facilities in Project Area No. 2. The City Council finds and determines that (i) such finding and determination set forth in Ordinance No. 139 is final and conclusive; (ii) the Amendment does not add territory to Project Area No. 2 or make any other revisions to the Plan that affect this previously -made finding and determination, (iii) such previously -made finding and determination remains valid and effective, and (iv) no further finding or determination concerning the foregoing is required for the Amendment. h. The City Council, in Ordinance No. 139, found and determined that there are or are being provided in Project Area No. 2, or in other areas not generally less desirable in regard to public utilities and public and commercial facilities, and at rents or prices within the financial means of the families and persons displaced from Project Area No. 2, if any, decent safe, and sanitary dwellings equal in number to the number of and available to the displaced families and persons and reasonably accessible to their places of employment. The City Council finds and determines that (i) such finding and determination set forth in Ordinance No. 139 is final and conclusive; (ii) the Amendment does not add territory to Project Area No. 2 or make any other revisions to the Plan that affect this previously -made finding and determination, (iii) such previously -made finding and determination remains valid and effective, and (iv) no further finding or determination concerning the foregoing is required for the Amendment. L The City Council, in Ordinance No. 139, found and determined that families and persons shall not be displaced prior to the adoption of a relocation plan pursuant to California Health and Safety Code Sections 33411 and 33411. 1, and dwelling units housing persons and families of low or moderate income, if any, shall not be removed or destroyed prior to the adoption of a replacement housing plan as statutorily required pursuant to California Health and Safety Code Sections 33334.5, 33413, and 33413.5, to the extent required thereunder. The City Council finds and determines that (i) such finding and determination set forth in Ordinance No. 139 is final and conclusive; 00 the Amendment does not add territory to Project Area No,. 2 or make any other revisions to the Plan that affect this previously -made finding and determination, (iii) such previously -made finding and determination remains valid and effective, and (iv) no further finding or determination concerning the foregoing is required for the Amendment. 38 G:\WPDOCS\Ordinances\Proj 2 Plan Amendmentl-04.DOC 5 162 Ordinance No. Redevelopment Plan Amendment Redevelopment Project No. 2 j. The finding that all noncontiguous areas of Project Area No,. 2 are either blighted or necessary for effective redevelopment and are not included for the purpose of obtaining the allocation of taxes from Project Area No. 2 pursuant to Health and Safety Code Section 33670, was not made in Ordinance No. 139 as there are no non- contiguous areas of Project Area No. 2. The City Council finds and determines that (i) the Amendment does not add territory to Project Area No. 2 or make any other revisions to the Plan that affect the boundaries of Project Area No. 2 and thus no further finding or determination concerning the foregoing is required for the Amendment. k. The City Council, in Ordinance No. 139, found and determined that the inclusion of any lands, buildings, or improvements which are not detrimental to the public health, safety, or welfare is necessary for effective redevelopment of Project Area No. 2 and that any area included is necessary for effective redevelopment and is not included for the purpose of obtaining the allocation of tax increment revenues from Project Area No. 2 pursuant to Health and Safety Code Section 33670 without other substantial justification for its inclusion. The City Council finds and determines that (i) such finding and determination set forth in Ordinance No. 139 is final and conclusive; (ii) the Amendment does not add territory to Project Area No. 2 or make any other revisions to the Plan that affect this previously -made finding and determination, (iii) such previously -made finding and determination remains valid and effective, and (iv) no further finding or determination concerning the foregoing is required for the Amendment. 1. The City Council, in Ordinance No. 139, found and determined that the elimination of blight and the redevelopment of Project Area No. 2 could not be reasonably expected to be accomplished by private enterprise acting alone without the aid and assistance of the Agency. The City Council finds and determines that W such finding and determination set forth in Ordinance No. 139 is final and conclusive; 00 the Amendment does not add territory to Project Area No,. 2 or make any other revisions to the Plan that affect this previously -made finding and determination, (iii) such previously -made finding and determination remains valid and effective, and (iv) no further finding or determination concerning the foregoing is required for the Amendment. The City Council further finds and determines that, as set fort in the record, including but not limited to the Report to Council, the elimination of the remaining blight in Project Area No. 2 including but G:\WPDOCS\Ordinances\Proj 2 Plan Amendmentl-04.DOC 39 6 163 Ordinance No. Redevelopment Plan Amendment Redevelopment Project No. 2 not limited to improving, increasing, and preserving affordable housing opportunities to enable the Agency to meet its affordable housing obligations under the CRL and the Agency's adopted Second Amended Affordability Housing Compliance Plan, could not be reasonably expected to be accomplished by private enterprise acting alone without the aid and assistance of the Agency, and that the increase in the number of dollars to be allocated to the Agency under the Plan pursuant to Health and Safety Code Section 33670(b) is necessary to enable the Agency to provide such aid and assistance. M. The City Council, in Ordinance No. 139, found and determined that the Project Area No. 2 was predominantly urbanized as defined by the CRL. The City Council finds and determines that (i) such finding and determination set forth in Ordinance No. 139 is final and conclusive; 00 the Amendment does not add territory to Project Area No. 2 or make any other revisions to the Plan that affect this previously -made finding and determination or require a re -determination as to the urbanization of Project Area No. 2, (iii) such previously -made finding and determination remains valid and effective, and (iv) no further finding or determination concerning the foregoing is required for the Amendment. n. The limitation on the number of dollars to be allocated to the Agency under the Amendment are reasonably related to the proposed projects to be implemented in Project Area No. 2 and/or benefiting Project Area No,. 2 under the CRL, and to the ability of the Agency to eliminate remaining blight within Project Area No. 2, in that, as set fort in the record, including but not limited to the Report to Council, the Amendment is necessary to implement projects to continue efforts to alleviate blighting conditions, including but not limited to, improving, increasing, and preserving affordable housing opportunities to enable the Agency to meet its affordable housing obligations under the CRL and the Agency's adopted Second Amended Affordability Housing Compliance Plan. 0. The time limitations set forth in the Plan conform to the requirements of the CRL pursuant to Ordinance No. 259 adopted on December 20, 1994. The Amendment does not amend or affect any time limitation set forth in the Plan. 40 GAWPI)OMOrdinancesTroj 2 Plan Arnendment'l-04DOC 164 Ordinance No. Redevelopment Plan Amendment Redevelopment Project No. 2 SECTION 3. The City Council, in Ordinance No. 139, declared that it was satisfied that permanent housing facilities will be available within three (3) years from the time residential occupants of Project Area No. 2 are displaced, if any, and that pending the development of the facilities there will be available to the displaced housing occupants, if any, adequate temporary dwelling facilities at rents comparable to those in the City at the time of their displacement. The City Council finds and determines that (i) such finding and determination set forth in Ordinance No. 139 is final and conclusive; (ii) the Amendment does not add territory to Project Area No. 2 or make any other revisions to the Plan that affect this previously -made finding and determination, (iii) such previously made finding and determination remains valid and effective, and (iv) no further finding or determination concerning the foregoing is required for the Amendment. SECTION 4. In order to implement and facilitate the effectuation of the Plan, as amended by the Amendment as hereby approved, the City Council hereby (a) restates its pledge of cooperation in helping to carry out the Plan, (b) restates its request that the various officials, departments, boards and agencies of the City having administrative responsibilities in Project Area No. 2 likewise cooperate to such end and exercise their respective functions and powers in a manner consistent with the redevelopment of Project Area No. 2, (c) reaffirms that it stands ready to consider and take appropriate action upon proposals and measures designed to effectuate the Plan, and (d) re -declares its intention to undertake and complete any proceeding necessary to be carried out by the City under the provisions of the Plan, as amended. SECTION 5. The Amendment is incorporated herein by this reference, and the Plan, as amended by the Amendment, is hereby approved as, and declared to be, the official Redevelopment Plan for the La Quinta Redevelopment Project No. 2. SECTION 6. The City Clerk is hereby directed to send a certified copy of this Ordinance to the Agency, whereupon the Agency is vested with the responsibility for carrying out the Plan, as amended. SECTION 7. The City Clerk is hereby directed to record with the Riverside County Recorder a statement that the Amendment has been approved in conformity with the CRL. SECTION 8. The City Clerk is hereby directed to transmit a copy of the statement to be recorded pursuant to Section 7 of this Ordinance to such other parties as may be directed by the Agency. GAWPIDOMOrdinancesTroj 2 Plan Amendmentl-04.DOC 41, 8 165 Ordinance No. Redevelopment Plan Amendment Redevelopment Project No. 2 SECTION 9. This Ordinance shall be in full force and effect thirty (30) days from and after the date of final passage. SECTION 10. If any part of this Ordinance, or Amendment which it approves, is held to be invalid for any reason, such decision shall not affect the validity of the remaining portion of this Ordinance or of this Amendment, and the City Council hereby declares it would have passed the remainder of this Ordinance or approved the remainder of the Amendment if such invalid portion thereof had been deleted. SECTION 11. The City Clerk shall certify to the passage of this Ordinance and shall cause the same to be published as required by law. PASSED, APPROVED and ADOPTED this day of 2004, by the following vote: AYES: NOES: ABSENT: ABSTAIN: DONALD ADOLPH, Mayor City of La Quinta, California ATTEST: JUNE S. GREEK, City Clerk City of La Quinta, California APPROVED AS TO FORM: M. KATHERINE JENSON , City Attorney City of La Quinta, California G:\WPDOCS\Ordinances\Proj 2 Plan Amendment 1 -04. DOC 42 9 166 ATTACHMENT #1 La Quinta Redevelopment Project No. 2 Amendment elk I L January 14,2004 Z 7 -P P-- f V' F V%27 re N A", 1 7e ', TA's 78-4k% Calle Tampico La Quinta, Caffibmia 92253 Roseriow Spwacek Group, Inc. 217 North Main Street, Suite 300 Santa Ana, California 92701-4822 Phone: (714) 541-4585 Fax: (714) 836-1748 E-Mail: info@webrsg.com U 7 Introduction ...................................................................... Intro-1 Reasons for the Amendment ................................................. A-1 Background................................................................................................. A-1 Reasons for the Amendment ..................................................................... A-1 Agency Tax Increment Receipts/Affordable Housing ............................ A-2 A Description of the Physical and Economic Conditions Existing In Project Area No. 2 ............................................... B-1 Remaining Blighting Conditions in Project Area No. 2 .......................... B-1 Five -Year Implementation Plan .............. i .............................. C-1 An Explanation of Why the Elimination of Blight and the Redevelopment of the Project Area cannot Reasonably be Expected to be Accomplished by Private Enterprise Acting Alone or by the Legislative Body's Use of Financing Alternatives other than Tax Increment Financing ................ D-1 Method of Financing and Economic Feasibility of the Plan ... E-1 Taxing Agency Agreements ...................................................................... E-2 Methodof Relocation .............................................................. F-1 An Analysis of the Preliminary Plan ...................................... G-1 The Report and Recommendations of the Planning Commission ........................................................................... H-1 The Report and Recommendations of the Project Area Committee .............................................................................. 1-1 A Statement of Conformance to the General Plan ................. J-1 The Mitigated Negative Declaration ...................................... K-1 44 168 Report of the County Fiscal Officer ........................................ L-1 Neighborhood Impact Report ................................................ M-1 Project Area Demographics ...................................................................... M-1 Relocation................................................................................................... M-1 TrafficCirculation ...................................................................................... M-2 EnvironmentalQuality ........................................................................... i ... M-2 Availability of Community Facilities and Services ................................. M-2 Effect on School Population and Quality of Education ......................... M-3 Property Taxes and Assessments ........................................................... M-3 Low- and Moderate -income Housing Programming .............................. M-3 A Summary of the Agency's Consultations with Affected Taxing Entities ....................................................................... N-1 G-.\WPDOCSOWUMENT"DAPRO,2RF17000tJNCILDOC 47) 169 Introduction This document is the Report to the City Council ("Report') that describes the reasons for the proposed amendment to the La Quinta Redevelopment Project No. 2 ("Project No. 2"). The La Quinta Redevelopment Agency ("Agency") is processing an amendment to the Redevelopment Plan for the La Quinta Redevelopment Project No. 2 ("Redevelopment Plan") to increase the cumulative tax increment limit from $400,000,000 to $1,500,000,000 ("Amendment'). The Agency is pursuing the Amendment to insure that there is sufficient financial capacity to: 0 Continue implementing projects and programs that eliminate blight; Accommodate repayment of existing bond and other debt obligations; and 0 Facilitate new affordable housing opportunities. No other changes to the Redevelopment Plan or to the boundaries of the La Quinta Redevelopment Project Area No. 2 ("Project Area No. 2) are being proposed by this amendment. This report has been prepared in accordance with the California Community Redevelopment Law, Health and Safety Code Section 33000 gt seq. ("Law") and presents the following information: SECTION A. Reasons for the Amendment. SECTION B. A Description of the Physical and Economic Conditions Existing in Project Area No. 2. SECTION C. Five -Year Implementation Plan. SECTION D. An Explanation of Why the Elimination of Blight and the Redevelopment of the Project Area cannot Reasonably be Expected to be Accomplished by Private Enterprise Acting Alone or by the Legislative Bodys use of Financing Alternatives other than Tax Increment Financing. ROSENOW SPEVACEK GROUP, INC. PAGE INTRO-1 46 170 REPORT TO THE CITY COUNCIL LA QUINTA REDEVELOPMENT PROJECT NO. 2 AMENDMENT SECTION E. Method of Financing and Economic Feasibility of the Plan. SECTION F. The Method of Relocation SECTION G. An Analysis of the Preliminary Plan. SECTION H. The Report and Recommendations of the Planning Commission. SECTION 1. Report and Recommendation of the Project Area Committee. SECTION J. A Statement of Conformance to the General Plan. SECTION K. The Mitigated Negative Declaration. SECTION L. Report of the County Fiscal Officer. SECTION M. Neighborhood Impact Report SECTION N. A Summary of the Agency's Consultations with Affected Taxing Entities The Law permits redevelopment agencies to amend redevelopment plans to modify limitations, expand boundaries, add public facility and infrastructure projects, and merge redevelopment project areas to facilitate the elimination of persistent blighting conditions. The Law prescribes a specific process involving preparation of various documents, including this Report, consultation with affected taxing agencies, and participation and input from affected residents, business owners, property owners and other stakeholders. The Amendment is scheduled for consideration by the Agency and City Council at a joint public hearing on January 20, 2004. All Project Area No. 2 property owners, business owners, and affected taxing agencies have been notified of this joint public hearing by mail. ROSENOW SPEVACEK GROUP, INC. PAGE INTRO-2 47 171 Section -A] I ��*] �*'A A: 77—AT ',A 7 7 1 �, a The Redevelopment Plan was adopted in 1989 and subsequently amended in 1994 to incorporate modifications required by AB 1290. 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. The Redevelopment Plan established Project Area No. 2, which entails 3,116 acres of property that is developed with commercial, residential, and institutional uses. Encompassing the northern area of the City, Project Area No. 2 is bounded by Avenue 50 to the south, Fred Waring Drive (Avenue 44) to the north, Washington Street to the west, and Jefferson Street to the east. Property west of Washington Street, north of the prolongation of the future alignment of Avenue 48; property surrounding Point Happy, north of Highway 111 and west of Washington Street; and property easterly of Jefferson Street and north of Highway 111 is also included in Project Area No. 2. When the Redevelopment Plan was adopted, the California Community Law required that a limit be established 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 year's 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 ROSENOW SPEVACEK GROUP, INC. PAGE A-1 IM 172 REPORT TO THE CITY COUNCIL LA QUINTA REDEVELOPMENT PROJECT NO. 2 AMENDMENT conservative forecasts (3% annual property value growth increases) indicate that the existing $400,000,000 tax increment limit will be achieved by fiscal 2020-21, or earlier if annual growth exceeds 3%. Reaching the tax increment revenue limit impacts the Agencys redevelopment efforts in the following ways: The term of the Redevelopment Plan runs to May 2029; the Agency has an additional 10 years to receive tax increment revenue or until 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 21.3% of annual debt service payments are funded by Project Area No. 2 Housing Fund revenue until fiscal year 2025-26, and the 1998 non -housing bonds of which 100% of annual debt service payments are funded by non -Housing Fund revenue 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 to retire the 1998 Bonds, leaving no funds to repay outstanding General Fund loan obligations due to the City of La Quinta. The Agency's Bond Counsel and Underwriter have determined that new housing bonds that pledge Project Area No. 2 housing fund revenue cannot be issued, given that the Agency would achieve the existing tax increment revenue limit at least 20 years prior to the term of the Redevelopment Plan. This severely impacts the Agency's ability to achieve its affordable housing obligations. Project Area No. 2 has the projected capacity to support an additional $57.0 million of affordable housing bonds during the remaining term of the Redevelopment Plan. When the Redevelopment Plan was adopted, the Agency negotiated taxing agency agreements will all of the taxing agencies that receive tax increment revenue from Project Area No. 2. Through these agreements, the taxing agencies received 71 % of all tax increment revenue generated in Project Area No. 2, with the Agency receiving the remaining 29%. Of this amount, 20% is deposited into the Agency's Housing Fund, and 9% is pledged towards non -housing redevelopment projects. Thus, a majority of 49 ROSENOW SPEVACEK GROUP, INC. PAGE A-2 173 REPORT TO THE CITY COUNCIL LA QUINTA REDEVELOPMENT PROJECT NO. 2 AMENDMENT the tax increment revenue the Agency receives from Project Area No. 2 is pledged towards increasing and improving the supply of affordable housing. Property in Project Area No. 2 is primarily designated for residential uses generating an acute need to secure affordable housing with long-term covenants. Pursuant to the Agency's Second Amended Housing Affordability Compliance Plan, the Agency must secure 636 affordable dwellings by 2029, of which 254 must be affordable to very low-income households. This is based upon the Laws requirement that at least 15 percent of all privately developed or substantially rehabilitated units in Project Area No. 2 must be affordable to very low, low and moderate - income households, and at least 40 percent of this amount must be affordable to very low-income households. To date, the Agency has secured 420 units of affordable housing in Project Area No. 2, of which 75 are affordable to very low-income households. Since a majority of the tax increment revenue the Agency receives from Project Area No. 2 is pledged towards funding programs and projects that produce affordable dwellings, the constraints imposed by the existing tax increment revenue limit on the issuance of additional housing bonds will impair the Agency's ability to secure these units and achieve its housing mandates. ROSENOW SPEVACEK GROUP, INC. PAGE A-3 50 174 Section B____� A.Description of the Physical and Economic CondWons Existing in 9 -2- Area Noi 2 When Project Area No. 2 was established, the Law provided that pervasive physical and economic blight, and public infrastructure and facility deficiencies, must be present to support establishing a redevelopment project. In conjunction with documenting blight and infrastructure/facility deficiencies, a redevelopment agency had to also demonstrate that both the private sector and the community acting alone did not have the legal or financial capacity to adequately address these conditions. The Law also requires redevelopment agencies to insure that at least 15% of all privately developed or substantially rehabilitated housing units are affordable to very low, low and moderate -income households. Of these, 40% must be affordable to very low-income households. In securing affordable housing, a redevelopment agency must gain covenants to insure that the dwellings remain affordable to the target households for 45 years, for single-family dwellings, and 55 years, for multi -family dwellings. Since Project Area No. 2 was established in 1989, the Agency has embarked on a multifaceted program to address blight, correct infrastructure deficiencies, and produce affordable housing. The following narrative summarizes the blighting conditions present in Project Area No. 2 when it was established, and those conditions that still exist today. This data was compiled from the February 1989 Report to Council for the Proposed La Quinta Redevelopment Project No. 2, interviews with City staff and field surveys conducted by RSG staff in September 2003. The primary purpose for establishing Project Area No. 2 was to assist with funding infrastructure improvements that stimulated private sector investment in commercial, resort and residential development. Both flood control and circulation system deficiencies, and the costs associated with correcting these deficiencies, were cited as major impediments to private ROSENOW SPEVACEK GROUP, INC. PAGE B-1 5 1. 175 REPORT TO THE CITY COUNCIL LA QUINTA REDEVELOPMENT PROJECT NO. 2 AMENDMENT sector investment. The City of La Quinta could not adequately fund the required flood control and circulation system improvements since it was a low property tax city (the City receives $0.07 of every $1.00 of property tax revenue paid by Project Area No. 2 property owners), and did not have retail or resort uses that generated sufficient sales and transient occupancy tax revenue. In addition to infrastructure deficiencies, economic development activities in Project Area No. 2 were impacted by parcels subdivided in a manner that limited their development in accordance with the Citys General Plan due to either their unusual configuration (to accommodate natural land forms or features) or their small size. The Redevelopment Plan includes $69.8 million of projects to address these deficiencies; $63.4 million in flood control and street system improvement projects and $6.5 million of community development programs (to address irregularly shaped properties). Since 1989, the Agency has funded major infrastructure improvement projects either in conjunction with private developers and landowners, or with the City of La Quinta. To date, approximately 70 percent of these improvements have been implemented, which has improved the economic vitality of Project Area No. 2. This leaves approximately $20.9 million of non -housing improvements that should be addressed to eliminate the remaining infrastructure deficiencies and property configuration impediments. The existing tax increment limit impacts the Agency's ability to fund these improvements. The Law provides that the Agency must insure that 15 percent of all privately developed or substantially rehabilitated units in Project Area No. 2 must be affordable to very low, low and moderate -income households. This mandate must be achieved during the life of the Redevelopment Plan or by 2029. Based upon the projections contained in the Agency's Second Amended Housing Affordability Compliance Plan, the Agency must secure 636 affordable units of which 254 must be affordable to very low-income households. To date, the Agency has secured 420 affordable units in Project Area No. 2, of which 75 are affordable to very low-income households. This leaves the need to secure an additional 37 units affordable to low and moderate -income households, and 179 units affordable to very low-income households. The average Agency per unit investment to secure low and moderate -income units is $106,000, and the average per unit investment to secure very low-income units is $175,000. Using the remaining number of units the Agency must secure and the average per unit cost to obtain each unit by income category, the Agency must invest a total of $35.2 million in today's dollars to secure the required number of affordable units to achieve its affordable housing mandates. The existing tax increment limit impacts the ability to timely achieve these ROSENOW SPEVACEK GROUP, INC. PAGE B-2 5 92 176 REPORT TO THE CITY COUNCIL LA QUINTA REDEVELOPMENT PROJECT NO. 2 AMENDMENT units because it prohibits the Agency from issuing additional housing bonds in order to underwrite affordable housing development. Project No. 2 has $42.0 million of pending funding obligations it must address (not including interest expense on outstanding bonds and loans) to complete its non -housing redevelopment obligations. These are comprised of: $20.9 million of non -housing redevelopment projects to achieve to Redevelopment Plan's objectives; $10.6 million of outstanding bond debt; and approximately $10.5 million in outstanding loans due to the General Fund of the City of La Quinta. These loans represent advances the City made to fund operations and non -housing redevelopment projects for Project No. 2. With the current $400,000,000 tax increment limit, the Agency will have the capacity to repay the bond debt, but it will not have the capacity to complete the $20.9 million of non -housing redevelopment projects nor retire the City general Fund loans. This is because if the current tax increment limit remain in place, the Agency is forecasted to retain $28.9 million in non -housing tax increment revenue (after payments are made to taxing agencies) by the time the $400,000,000 tax increment limit is achieved in fiscal 2020-21. Remaining non -housing bond debt service payments are projected to total $12.9 million leaving only $16.0 to fund the remaining $20.9 million of redevelopment projects, and retire the $10.5 million of outstanding General Fund debt. ROSENOW SPEVACEK GROUP, INC. PAGE B-3 53 177 Section C Fbire-Year Implernentalumon Plan The amended Redevelopment Plan will continue to utilize the existing Five -Year Implementation Plan ("Implementation Plan") to guide redevelopment activities in Project Area No. 2. This Implementation Plan was adopted in July 1999, was updated on May 15, 2002 and remains in effect through June 30, 2004. 9 51 ROSENOW SPEVACEK GROUP, INC. PAGE C-1 178 Section D_ An EW MFhy the Elimination of 0-- Might and the op—ment Of the PW I" Area cannot E_Wnably be EApe__`__d to be nVal - E Acti5 AccompAshed by Pt Alone or by the -Legimative Body% Use Financing natives other than Tax In- ement F! 0 ng The primary purpose for establishing Project Area No. 2 was to assist with funding infrastructure improvements that stimulated private sector investment in commercial, resort and residential development. Both flood control and circulation system deficiencies, and the costs associated with correcting these deficiencies, were cited as major impediments to private sector investment. The City of La Quinta could not adequately fund the required flood control and circulation system improvements since it was a low property tax city (the City receives $0.07 of every $1.00 of property tax revenue paid by Project Area No. 2 property owners), and did not have retail or resort uses that generated sufficient sales and transient occupancy tax revenue. In addition to infrastructure deficiencies, economic development activities in Project Area No. 2 were impacted by parcels subdivided in a manner that limited their development in accordance with the City's General Plan due to either their unusual configuration (to accommodate natural land forms or features) or their small size. Since the Redevelopment Plan was adopted, the Agency has worked with property owners and developers to fund some or all of the costs associated with constructing infrastructure improvements. The Agency took this path because property owners and developers demonstrated that without public investment they could not economically build the on -site improvements required for their development proposals and adequately fund off -site infrastructure improvements required to service these developments. In addition, rising housing costs limited the private sectors ability to address the community's affordable housing needs without public investment. Thus, the Agency has aggressively invested Project No. 2 tax increment revenue to generate facilitate affordable housing construction. 57) ROSENOW SPEVACEK GROUP, INC. PAGE D-1 179 REPORT TO THE CITY COUNCIL LA QUINTA REDEVELOPMENT PROJECT NO. 2 AMENDMENT The Redevelopment Plan includes $69.8 million of projects to address these deficiencies; $63.4 million in flood control and street system improvement projects and $6.5 million of community development programs (to address irregularly shaped properties). Since 1989, the Agency has funded major infrastructure improvement projects either in conjunction with private developers and landowners, or with the City of La Quinta. To date, approximately 70 percent of these improvements have been implemented, which has improved the economic vitality of Project Area No. 2. This leaves approximately $20.9 million of non -housing improvements that should be addressed to eliminate the remaining infrastructure deficiencies and property configuration impediments. The existing tax increment limit impacts the Agencys ability to fund these improvements. The Law provides that the Agency must insure that 15 percent of all privately developed or substantially rehabilitated units in Project Area No. 2 must be affordable to very low, low and moderate -income households. This mandate must be achieved during the life of the Redevelopment Plan or by 2029. Based upon the projections contained in the Agency's Second Amended Housing Affordability Compliance Plan, the Agency must secure 636 affordable units of which 254 must be affordable to very low-income households. To date, the Agency has secured 420 affordable units in Project Area No. 2, of which 75 are affordable to very low-income households. This leaves the need to secure an additional 37 units affordable to low and moderate -income households, and 179 units affordable to very low-income households. The average Agency per unit investment to secure low and moderate -income units is $106,000, and the average per unit investment to secure very low-income units is $175,000. Using the remaining number of units the Agency must secure and the average per unit cost to obtain each unit by income category, the Agency must invest a total of $35.2 million in today's dollars to secure the required number of affordable units to achieve its affordable housing mandates. The existing tax increment limit impacts the ability to timely achieve these units because it prohibits the Agency from issuing additional housing bonds in order to underwrite affordable housing development. Project No. 2 has $42.0 million of pending funding obligations it must address (not including interest expense on outstanding bonds and loans) to complete its non -housing redevelopment obligations. These are comprised of: $20.9 million of non -housing redevelopment projects to achieve to Redevelopment Plan's objectives; $10.6 million of outstanding bond debt; and approximately $10.5 million in outstanding loans due to the General Fund of the City of La Quinta. These loans represent advances the City made to fund operations and non -housing redevelopment projects for Project No. 2. ROSENOW SPEVACEK GROUP, INC. PAGE D-2 180 REPORT TO THE CITY COUNCIL LA QUINTA REDEVELOPMENT PROJECT NO. 2 AMENDMENT With the current $400,000,000 tax increment limit, the Agency will have the capacity to repay the bond debt, but it will not have the capacity to complete the $20.9 million of non -housing redevelopment projects nor retire the City general Fund loans. This is because if the current tax increment limit remains in place, the Agency is forecasted to retain $28.9 million in non -housing tax increment revenue (after payments are made to taxing agencies) by the time the $400,000,000 tax increment limit is achieved in fiscal 2020-21. Remaining non -housing bond debt service payments are projected to total $12.9 million leaving only $16.0 to fund the remaining $20.9 million of redevelopment projects, and retire the $10.5 million of outstanding General Fund debt. ROSENOW SPEVACEK GROUP, INC. PAGE D-3 57 181 Section Medwd of Financing and Econornic Feasibility of the Plan Redevelopment of the Project Area No. 2 has been and will continue to be financed as follows: • Property tax increment; • Agency bonds; • Financial assistance from the City, State of California and/or Federal Government; and • Any other available and appropriate source. Since 1989, the primary means of financing redevelopment and housing activities has been property tax increment revenue, Agency bonds, and City loans. To date, the Agency has received $68.0 million in total tax increment revenue, of which $53.0 million has been paid to taxing agencies and $15.0 million to the Agency. Per the Redevelopment Plan, the revenue the Agency receives and pays to the taxing agencies is included in the cumulative $400.0 million tax increment revenue limit. The Agency has secured $11.2 million in tax allocation bonds ($6.7 million of non -housing bonds and $4.5 million of housing bonds) and approximately $9.57 million of City General Fund loans. The Amendment only modifies the $400,000,000 tax increment limit by increasing this limit to $1,500,000,000. No other provisions of the Redevelopment Plan are being modified. The proposed $1,500,000,000 tax increment limit was derived by preparing revenue projections for the remaining 36 years of the Redevelopment Plan that use a 3 percent per annum growth rate. If the Amendment is adopted, the Agency will fund the remaining housing and non -housing projects through a combination of tax allocation bonds and tax increment revenue. ROSENOW SPEVACEK GROUP, INC. PAGE E-1 58 182 REPORT TO THE CITY COUNCIL LA QUINTA REDEVELOPMENT PROJECT NO. 2 AMENDMENT The Agency currently has agreements with all of the taxing agencies that levy property taxes in Project Area No. 2. All of these payments are based upon gross tax increment revenue; the Agency must fund each taxing agencies share of the Housing Fund deposits (20% of gross tax increment revenue) from other retained tax increment revenue. The pertinent provisions of these agreements are summarized below: County of Rilverside The Agencys Cooperation Agreement with the County of Riverside provides for full payment of the tax increment revenue generated by the County General Fund (25.53%), Library District (2.80%), and Fire District (6.02%) property tax levies. Additionally, the Agency is paying the County $2,050,000 over the next 11 years to reimburse the County for tax increment revenue generated by the County's General Fund property tax levy the Agency retained during the initial years of the Redevelopment Plan. Coachella Valley Community College District This agreement provides that the College District shall receive 50% of the tax increment revenue generated by the College District's 7.72% property tax levy. RiversMe County Superintendent of Schools This agreement provides that the Superintendent of Schools shall receive 50% of the tax increment revenue generated by the Superintendent of Schools'4.18% property tax levy. Coachella Valley Watw Dllstrlict The agreement provides that the Water District shall receive 100% of the tax increment revenue generated by the Water District's 7.67% property tax levy. Coachella Valley I --- and Park D66ict The agreement provides that the Agency shall retain 100% of the tax increment revenue generated by the Park District's 2.13% property tax levy. This revenue, however, must be expended on identified park -related capital improvements. Due to the Agency's expenditure to acquire land ROSENOW SPEVACEK GROUP, INC. PAGE E-2 59 183 REPORT TO THE CITY COUNCIL LA QUINTA REDEVELOPMENT PROJECT NO. 2 AMENDMENT acquisition and make park improvements in Project Area No. 2, the Agency is entitled to retain the Park District's tax increment revenue until fiscal year 2003-04. After 2003-04, the Agency anticipates that it will continue to fund park -related projects with the Park District's share of annual tax increment revenue. Desert Sands Unlifiled School DLstftt The agreement provides that the Agency shall retain 50% of the tax increment revenue generated by the School District's 37.16% property tax levy. The remaining 50% is paid to the School District. Coachella Valley Mosquito and Vector Control District The agreement provides that the Mosquito and Vector Control District shall receive 100% the tax increment revenue generated by its 1.41 % property tax levy. 60 ROSENOW SPEVACEK GROUP, INC. PAGE E-3 1 84 Sect"' F JA 77: 707 re 1 07 7771 The Agency adopted a Method of Relocation in March 1989 as part of approving the Redevelopment Plan. This document, which has been updated from time to time to conform to changes in State Law, will continue to guide Agency relocation activities in Project Area No. 2. Pursuant to the Law, if the Agency implements a project that results in relocation, no persons will be displaced prior to the provision of decent, safe and sanitary housing. 61, ROSENOW SPEVACEK GROUP, INC. PAGE F-1 18 pa, Sect'on G Pm AmlysLs of the Pmliminary Plan The Preliminary Plan for the Amendment was approved by the City of La Quinta Planning Commission ("Planning Commission") on September 9, 2003 and accepted by the Agency on September 16, 2003. The Preliminary Plan described the boundaries of Project Area No. 2 and included general statements of the proposed land uses, layout of principal streets, population densities, building intensities, and building standards. It also addressed how the Amendment would attain the purposes of the Law. It discussed the conformance with the General Plan and generally reviewed potential impacts the Amendment would have on residents and the surrounding neighborhood. The Amendment conforms to the standards and provisions of the Preliminary Plan, as detailed below: Pro'ect Area No. 2 Location and Description: This section of the Preliminary Plan describes the boundaries of Project Area No. 2. The Amendment does not propose any changes to these boundaries. General Statement of Proposed Planning Elements: This section of the Preliminary Plan states that land uses, proposed layouts of principal streets, proposed population densities, proposed building intensities, and proposed building standards shall be subject to and controlled by the General Plan, Zoning Ordinance, and other local codes, as amended from time to time. The Amendment does not propose any changes to population or development densities or land use designations. Attainment of the Pur2oses of the Law: This section of the Preliminary Plan describes how the current limit on cumulative tax increment revenue impairs the Agencys ability to address the remaining blighting conditions within Project Area No. 2 and significantly limit the Agency's ability to fund new affordable housing,initiatives. Addressing remaining blight and the provision of affordable housing attain the purposes of the Redevelopment Law. ROSENOW SPEVACEK GROUP, INC. PAGE G-1 62 EMMOM Lluej REPORT TO THE CITY COUNCIL LA QUINTA REDEVELOPMENT PROJECT NO. 2 AMENDMENT Conformance to the General Plan: Both the Preliminary Plan and Redevelopment Plan conform to the standards, policies and provisions of the General Plan, as they exist or are hereafter amended. General Imr)act of the Proposed Proeect Upon the Residents of the Added Area and Surrounding Neighborhoods: This section of the Preliminary Plan states that by amending the Redevelopment Plan, the Agency will gain additional financial capacity to facilitate additional infrastructure improvements, enhance economic development activities, improve community facilities, and improve existing and provide new affordable housing opportunities. Other impacts associated with the implementation of the Plan have been assessed and analyzed in the Mitigated Negative Declaration on the Redevelopment Plan, included in Section K of this Report, and the Neighborhood Impact Report, incorporated in Section M of this Report. ROSENOW SPEVACEK GROUP, INC. PAGE G-2 63 1S 7 Sed'on H The n - ' and R- X-M-110 ons of the Planning Commission On September 9, 2003, the Planning Commission adopted Resolution No. ,2003-108 as its report and recommendation on the draft Plan. A copy of the Planning Commission's Report and the Resolution follows this page. ROSENOW SPEVACEK GROUP, INC. PAGE H-1 REPORT TO THE CITY COUNCIL LA QUINTA REDEVELOPMENT PROJECT NO. 2 AMENDMENT {Replace this page with a copy of the September 9 Planning Commission Resolution approving the Preliminary Planj 65 ROSENOW SPEVACEK GROUP, INC. PAGE H-2 Sect", & 01M 0 The C RIC Mun ons of the M-2- ff- Area Committee Because the Redevelopment Plan does not grant the Agency authority to acquire property by eminent domain, the Amendment does not modify the Redevelopment Plan to establish eminent domain authority, and because the Amendment does not take any other action that would require the formation of a Project Area Committee, the Agency was not required to form a Project Area Committee. ROSENOW SPEVACEK GROUP, INC. PAGE 1-1 190 Section i On September 9, 2003, the Planning Commission adopted Resolution No. 2003-108, determining that the Amendment and implementation activities described therein are in conformity with the General Plan of the City, pursuant to Government Code Section 65402. A copy of the Planning Commission resolution is included in Section H of this Report. ROSENOW SPEVACEK GROUP, INC. PAGE J-1 67 191 Section LK- .&a- - The Midgated New-adve Dedaration As part of the amendment process, the Agency processed a Mitigated Negative Declaration regarding the environmental impact of the Amendment. A copy follows. ROSENOW SPEVACEK GROUP, INC. PAGE K-1 IT 192 REPORT TO THE CITY COUNCIL LA QUINTA REDEVELOPMENT PROJECT NO. 2 AMENDMENT {Replace this page with a copy of the Mitigated Negative Declaration.1 M, ROSENOW SPEVACEK GROUP, INC. PAGE K-2 193 Section L Because the Amendment does not change the base year assessment roll, this report was not required for the Amendment. ROSENOW SPEVACEK GROUP, INC. PAGE L-1 70 194 Sect", M M-7 I Lei a I A I I's The Law requires that the following topics be addressed in the Neighborhood Impact Report: relocation, traffic circulation, environmental quality, availability of community facilities and services, effect on school population and quality of education, property assessments and taxes, and other matters affecting the physical and social quality of the neighborhood. The report must also discuss the impact the Redevelopment Plan will have on low- and moderate -income persons or families in the following areas: the number of dwelling units to be removed or destroyed; the number of persons expected to be displaced; the general location of housing to be rehabilitated or constructed; the number of dwelling units planned for construction or rehabilitation; the projected means of financing the aforementioned dwelling units; and the projected timetable for meeting the Redevelopment Plan's relocation, rehabilitation and replacement housing objectives. Project Area commercial is total land use. No. 2 is primarily developed with residential uses; the secondary use but represents a small percentage of The Redevelopment Plan does incorporate the ' California Relocation Assistance and Real Property Acquisition Guidelines as the Method of Relocation for Project Area No. 2. Prior to the commencing of property acquisition activity that would cause displacement of either businesses or residents, the Agency will adopt a relocation plan in conformance with State Guidelines. ROSENOW SPEVACEK GROUP, INC. PAGE M-1 71. 195 REPORT TO THE CITY COUNCIL LA QUINTA REDEVELOPMENT PROJECT NO. 2 AMENDMENT When the original Redevelopment Plan was adopted many traffic and circulation problems impacted traffic circulation in Project Area No. 2. The Redevelopment Plan includes numerous improvements to the traffic and circulation system to alleviate the existing deficiencies and provide for improvements that will mitigate future traffic increases resulting from new development. The basic goal of the Redevelopment Plan is to improve the overall environmental quality of Project Area No. 2 by addressing the existence of certain environmental deficiencies. The Redevelopment Plan seeks to remedy the substandard vehicular circulation, and storm drainage systems, utility infrastructure, park and recreation facilities, and other similar public improvements including provisions to fund needed community facilities. The Redevelopment Plan's objectives also direct the Agency's efforts toward providing and expanding housing opportunities for low- and moderate -income households citywide. A Mitigated Negative Declaration was prepared for the Amendment that indicates that the Amendment will not have an adverse effect on the overall environmental quality of Project Area No. 2. Future development will be reviewed by both the City and the Agency to ensure that architectural, landscaping and urban design principals are adhered to and that compatibility in uses is maintained. Additionally, where required, more specific environmental analysis will take place as required by CEQA. The County of Riverside provides police and fire protection services under contract to the City of La Quinta. The County also provides library services. Implementation of the Redevelopment Plan is not expected to adversely impact community facilities or services within the area. The Amendment will not alter the delivery of these services because it does not alter the allocation of property tax payments made to these agencies. 72 ROSENOW SPEVACEK GROUP, INC. PAGE M-2 11MI REPORT TO THE CITY COUNCIL LA QUINTA REDEVELOPMENT PROJECT NO. 2 AMENDMENT The Desert Sands School District provides public education services for elementary and high school -aged children. The Coachella Valley Community College District provides post high school education services. The Amendment will not alter the delivery of these services because it does not alter the allocation of property tax payments made to these agencies. The Amendment will not alter the allocation pf property tax increment revenue. It will increase the amount of tax increment revenue the Agency may receive from Project Area No. 2, but this will not increase property taxes or impose new or additional assessments. A. Number of Dwelling Units Housing Low- and Moderate -income Households Expected to be Removed by the Redevelopment Project Redevelopment Plan implementation activities may result in the displacement of low- and moderate -income households will be displaced by Redevelopment Plan implementation activities. The Amendment would provide the Agency with the additional financial capacity to implement projects that lead to the acquisition and redevelopment of mobile home parks in Project Area No. 2. These are older properties that have unsafe and unsanitary conditions. With additional tax increment revenue capacity, the Agency would have the financial capability to acquire these parks and redevelopment them with new residential uses. Since the Agency has the need to secure additional dwellings that are affordable to very low, low and moderate -income households, the Agency intends to replace any displaced dwellings with new dwelling that are affordable to households in the income categories of those displaced. If future specific implementation activities impact housing in Project Area No. 2, the number of units will be identified. This responsibility is set forth in Section 512 of the Redevelopment Plan. As such and in accordance with the Law, whenever dwelling units housing persons and families of low- or moderate -income, are destroyed or removed from the low- and moderate -income housing market as part of a redevelopment project, the Agency shall, within four years of such destruction or removal, rehabilitate, develop or construct, or cause to be rehabilitated, developed or 73 ROSENOW SPEVACEK GROUP, INC. PAGE M-3 197 REPORT TO THE CITY COUNCIL LA QUINTA REDEVELOPMENT PROJECT NO. 2 AMENDMENT constructed, for rental or sale to persons and families of low- or moderate - income an equal number of replacement dwelling units at affordable rents within the City. Pursuant to Section 33413 of the Law, at least 30 percent of all new or rehabilitated dwelling units developed within Project Area No. 2 by the Agency shall be available at affordable costs for persons and families of low- and moderate -income; and of such 30 percent, no less than 50 percent thereof shall be available for and occupied by very low-income households. At least 15 percent of all new or rehabilitated units developed within Project Area No. 2 by public or private entities or persons other than the Agency shall be available at affordable cost for persons and families of low- and moderate -income; and of such 15 percent, not less than 40 percent thereof shall be available for and occupied by low-income households. The percentage requirements set forth in Section 532 of the Redevelopment Plan shall apply independently of the requirements of Section 531 of the Redevelopment Plan and in the aggregate to the supply of housing to be made available pursuant to this Section and not to each individual case of rehabilitation, development or construction of dwelling units. Pursuant to the Law, not less than 20 percent of all taxes which are allocated to the Agency pursuant to subdivision (b) of Section 33670 of the Law and Section 702(2) of the Redevelopment Plan shall be used by the Agency for the purposes of increasing and improving the Citys supply of low-, very low- and moderate -income housing available at affordable housing cost, as defined by the Law. All non-residential persons or businesses displaced by the Agency will be assisted in finding other suitable locations and facilities. The Agency shall assist these persons or businesses in the methods set forth in the Agency's Method of Relocation as outlined in the Redevelopment Plan. Additionally, the Agency shall extend reasonable preferences to persons who are engaged in business in Project Area No. 2 to re-enter into business within Project Area No. 2 if they otherwise meet the requirements prescribed by the Redevelopment Plan. B. Number of Persons and Families of Low- and Moderate -income Expected to be Displaced by the Redevelopment Project None at this time C. General Location of Replacement Low- and Moderate -Income Housing to be Rehabilitated, Developed and Constructed The Agency is bound by the Law to replace within four years, by a variety of means, any low- and moderate -income dwelling units removed by a 74 ROSENOW SPEVACEIK GROUP, INC. PAGE M-4 198 REPORT TO THE CITY COUNCIL LA QUINTA REDEVELOPMENT PROJECT NO. 2 AMENDMENT project. A commitment to do so is contained in Section 531 of the Redevelopment Plan. Construction of replacement low- and moderate -income housing will be dependent upon land availability, market conditions and availability of funds. The Agency's present intention is to develop a series of mixed income developments throughout Project Area No. 2. D. Number of Dwelling Units Housing Persons of Low- and Moderate -income Planned for Construction or Rehabilitation Other than Replacement Housing Based upon the projections contained in the Agency's Second Amended Housing Affordability Compliance Plan, the Agency must secure 636 affordable units of which 254 must be affordable to very low-income households. To date, the Agency has secured 420 affordable units in Project Area No. 2, of which 75 are affordable to very low-income households. This leaves the need to secure an additional 37 units affordable to low- and moderate -income households, and 179 units affordable to very low-income households. E. Projected Means of Financing Rehabilitation and New Construction of Housing for Low- and Moderate -income Households The Agency intends to utilize tax increment revenues of not less than 20 percent as provided by Section 33670 of the Law. Agency will also cooperate with the City to pool funds and resources beyond the tax increment set aside funds if it is determined to be necessary by both bodies. F. Projected Timetable for Meeting the Redevelopment Plan's Relocation, Rehabilitation and Replacement Housing Objectives All relocation activities will comply with timeframes established by Title 25, Chapter 6 of the California Administrative Code and Section 33413 of the Health and Safety Code. Further, all replacement housing requirements will be met within the four year time frame established by the Law. 75 ROSENOW SPEVACEK GROUP, INC. PAGE M-5 .19 9 Section —N— I T AIA i I 17-") 1 L ----I 9� (---1$ 0 11 1 0 --� I I q 10 9 The Agency currently has agreements with all of the taxing agencies that levy property taxes in Project Area No. 2: • County of Riverside • City of La Quinta • Coachella Valley Community College District • Riverside County Superintendent of Schools • Coachella Valley Water District • Coachella Valley Recreation and Park District • Desert Sands Unified School District • Coachella Valley Mosquito and Vector Control District • Coachella Valley Public Cemetery District • Coachella Valley Resource Conservation District On September 17, 2003, these entities were mailed, via certified mail, the Statement of Preparation of the Redevelopment Plan Amendment. On November 19, 2003, the Preliminary Report and Draft Redevelopment Plan were transmitted via certified mail to the taxing entities. Finally, on December 23, 2003, all taxing agencies were mailed via certified mail the notice of joint public hearing scheduled for January 20, 2004. As a part of each of these transmittals, the Agency offered to consult with the affected taxing entities pursuant to Section 33328 of the Law. To date Agency staff has received inquiries from the Coachella Valley Mosquito and Vector Control District, the Coachella Valley Water District, and the Coachella Valley Park and Recreation District. The Mosquito and Vector Control District representative requested that the District's name be modified to reflect its new charge, to control both vectors and mosquitoes. The Water District requested additional copies of the Preliminary Plan and ROSENOW SPEVACEK GROUP, INC. PAGE N-1 76 0 Preliminary Report. Finally, Agency staff is holding discussions with the Park and Recreation District regarding the park and recreation facilities that Agency has, and intends, to fund pursuant to the fiscal mitigation agreement. Since these meetings will occur after this Report has been published, Agency staff will provide additional information regarding these discussions at the January 20, 2004 Joint Public Hearing. 77 ROSENOW SPEVACEK GROUP, INC. PAGE N-2 201