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2004 05 18 RDA Minutes LA QUINT A REDEVELOPMENT AGENCY - MINUTES MAY 18,2004 A regular meeting of the La Quinta Redevelopment Agency was called to order by Chairperson Henderson. PRESENT: Board Adolph, Osborne, Perkins, Sniff, Chairperson Henderson ABSENT: None PUBLIC COMMENT - None . CLOSED SESSION 1. Conference with Agency's real property negotiator, Mark Weiss, pursuant'to Government Code Section 54956.8 concerning potential terms and conditions of acquisition and/or disposition of a portion of 525:f: acres located at the southwest corner of Avenue 52 and ~ Jefferson Street.. Property Owner/Negotiator: Rob Shumacher. } 2. Conference with Agency's legal counsel pursuant to Government Code Section 54956.9(c), initiation of litigation (one matter). ;3. Conference with Agency's real property negotiator, Mark Weiss, pursuant to Governme~t Code Section 54956.8 concerning potential terms and conditions of acquisition and/or disposition of a portion of 525:f: acres located at the southwest corner of Avenue 52 and Jefferson Street. Property Owner/Negotiator: Matthew Hladek. Redevelopment Agency recessed to Closed Session to and until the hour of 3:00 p.m. 3:00 P.M. PUBLIC COMMENT - None ,...--.. CONFIRMATION OF AGENDA - Confirmed Redevelopment Agency Minutes 2 May 18, 2004 APPROVAL OF MINUTES MOTION - It was moved by Board Members Osborne/Adolph to approve the Redevelopment Agency Minutes of April 21, 2004 as submitted. Motion carried unanimously. MOTION - It was moved by Board Members Perkins/Adolph to approve the Redevelopment Agency Minutes of May 4, 2004 as submitted. Motion carried unanimously. CONSENT CALENDAR 1 . APPROVAL OF DEMAND REGISTER DATED MAY 18, 2004. 2. TRANSMITTAL OF TREASURER'S REPORT DATED MARCH 31, 2004. 3. TRANSMITTAL OF REVENUE & EXPENDITURES REPORT DATED MARCH 31, 2004. 4. APPROVAL OF A RESOLUTION ADOPTING THE FISCAL YEAR 2004/2005 CAPITAL BUDGET AND MAKING CERTAIN FINDINGS PURSUANT TO HEALTH AND SAFETY CODE 33445(a). (RESOLUTION NO. RA 2004-008) MOTION - It was moved by Board Members Adolph/Perkins to approve the Consent Calendar as recommended and with Item No.4 being approved by RESOLUTION NO. RA 2004-008. Motion carried unanimously. It was noted that a number of residents from the Vista Dunes Mobile Home Park were in the audience, and Planning Manager Orci stated the residents would like to address some concerns. He suggested the possibility of scheduling a separate meeting for this matter. Redevelopment Consultant Spevacek advised a list of 1 2 questions was received from a resident this morning but staff is not aware of why the residents are present at this time. Chairperson Henderson asked if the group had a spokesperson. Avi Lasman, 47-935 Via Firenze, indicated he would translate for the residents and would like to go over the 1 2 questions. - --- .-- .---- Redevelopment Agency Minutes. 3 May 18, 2004 - In response to Board Member Sniff, Mr. Spevacek stated most of the 69 settlement agreements submitted to date have been rejected and will be reviewed individually. He indicated he is not in a position to begin addressing the problems at this time but is willing to meet with the individuals. Mr. Lasman encouraged the Agency to listen to both sides. He acknowledged new units will probably be more than what the residents currently pay, and indicated'they only want a fair answer. Board Member Sniff suggested scheduling a time for Mr. Spevacek to meet with the residents within the next several days and scheduling a special meeting of the Agency if necessary. In response to an unidentified person in the audience, Mr. Spevacek stated the remaining 35 settlement agreements will be delivered next week~ Mr. Lasman explained in Spanish to the audience that Mr. Spevacek would review their concerns and schedule a meeting with them, and if needed, the Agency will schedule a special meeting to address the concerns. ,-- Board Member Adolph requested staff provide the Agency with a list of the residents' concerns. BUSINESS SESSION 1 . CONSIDERATION OF AN AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH THE KEITH COMPANIES (TKC) FOR CIVIL ENGINEERING SERVICES FOR SIL VERROCK RESORT. Assistant Executive Director Weiss presented the staff report. In response to Board Member Osborne, Development Coordinator Stephenson explained the Avenue 52 water and sewer line extension was not part of the original contract because of the uncertainty of the location of the maintenance building. In response to Board Member Adolph, Mr. Stephenson confirmed the $178,000 will be taken from the contingency budget, which is currently about $4.4 million. - Board Member Adolph voiced concern about dipping too much into the contingency fund. Redevelopment Agency Minutes 4 May 18, 2004 Mr. Stephenson stated staff has tried to include all anticipated costs in the amendment. Chairperson Henderson noted the contingency fund is there for additional costs but agrees it should be watched carefully. MOTION - It was moved by Board Members Sniff/Adolph to approve an amendment to the Professional Services Agreement with The Keith Companies (TKC) to provide additional civil engineering services in an amount not to exceed $178,079, and authorize the Executive Director to execute the amendment. Motion carried unanimously. 2. CONSIDERATION OF AN AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH PACIFIC ADVANCED ENGINEERING SERVICES INC. (PACE) FOR WATER RESOURCES DESIGN SERVICES FOR SIL VERROCK RESORT. Development Coordinator Stephenson presented the staff report. In response to Board Member Osborne, Assistant Executive Director Weiss stated the Executive Director's authorization up to $100,000 is for specific construction contracts only. Board Member Osborne asked why lake level monitoring was not included in the original contract. Public Works Director Jonasson explained the need wasn't anticipated until after Civic Center Campus lake overflowed. Mark Krebs, of Pacific Advanced Civil Engineering (PACE), advised the original design included monitoring only for the irrigation lake, and the amendment provides for all of the lakes. He indicated monitoring all lakes is not typical but also not a bad idea. In response to Board Member Sniff, Mr. Krebs confirmed pressure lines will be used to keep the lakes at a constant level. MOTION - It was moved by Board Members Sniff/Adolph to approve an amendment to the Professional Services Agreement with Pacific Advanced Engineering Services, Inc. (PACE) for additional services in an amount not to exceed $83,250, and authorize the Executive Director to execute the amendment. Motion carried unanimously. --.- ----- -~---- --~. - - - -.- -. - ..- --.- Redevelopment Agency Minutes 5 May 18, 2004 r-- 3. CONSIDERATION OF ENTERING INTO A JOINT POWERS AGREEMENT WITH CV AG TO CREATE A COACHELLA VALLEY HOME PURCHASE FINANCING AUTHORITY. Planning Manager Orci presented the staff report. In response to Board Member Adolph, John Wohlmuth, Executive Director of CV AG, stated five cities, Palm Desert, Blythe, Coachella, Desert Hot Springs, and Cathedral City, have conceptually endorsed the agreement, which will have to be amended to reflect any changes made by the participating jurisdictions. The cities of Rancho Mirage and Indio have voted against the JPA, and the County is waiting to see if they will be doing it on their own if CV AG doesn't. . In response to Board Member Osborne, Mr. Wohlmuth stated the program will not increase the members' funding requirements, and most of the administrative responsibilities will be under contract. CV AG' s administrative functions will consist of managing the consortium and contracts, and administering the loan committee, and in exchange, will receive a percentage of the consortium deposits. He confirmed there will be no cost to La Quinta. - In response to Board Member Sniff, Mr. Wohlmuth stated the banks will fund the program and fund CV AG to administer the program. The one percent of deposits to the consortium will fund the contracts. Participating jurisdictions will receive the program as a member of the JPA at no additional cost. Any increase in contributions by the members would require a 100% vote by the members, and if there are defaults for assessments to the members, the JPA folds and the bank takes over the consortium. Board Member Sniff stated he doesn't feel it makes sense for CV AG to be involved with the program, and asked if the by-laws have already been written. Mr. Wohlmuth confirmed the by-laws have been drafted but will ultimately be approved by the participating jurisdictions. He indicated he is not sure the banks will deposit the $2.35 million if only five jurisdictions participate in the program because it limits the potential applicants in the program. He noted the Executive Committee, who voted 9-3 in favor of presenting the program to the cities, will make - the final decision. At this time, the City is being asked only to consider endorsement of the program. Redevelopment Agency Minutes 6 May 18, 2004 In response to Board Member Perkins, Mr. Wohlmuth stated a JPA can be formed with only two members. However, the banks have indicated they will take the program elsewhere if there IS an insufficient number of cities with housing stock to participate in the program. In response to Board Member Sniff, Mr. Wohlmuth stated the program IS based on the Riverside County median household Income of $45,000 to $65,000, which qualifies residents for homes ranging from $180,000 to $280,000. Chairperson Henderson stated she views the program as an opportunity to make additional funds available to residents but she doesn't like JPAs. She feels the program may be better received if structured around another type of entity. She noted the program will somewhat have a life of its own because the JPA is mostly staff and paper-work driven and the money comes from the bank. Mr. Wohlmuth explained formation of the JPA is being considered in order to protect the member jurisdictions and CV AG from liability. He suggested any concerns by the Council regarding ratification of future amendments be indicated if the City is interested in participating in the JPA. He confirmed Rancho Alliance has indicated the program will happen with or without CV AG but noted the CRA credits the banks are required to invest back into the community will go outside the Valley. Chairperson Henderson stated she has heard CV AG views the program as the ability to raise revenue instead of increasing dues. Mr. Wohlmuth noted CV AG's dues have not been increased in 14 years, nor is there any plan to increase dues this year. He indicated CV AG looks at all available funding in an attempt to maintain the current dues. Chairperson Henderson commented on the effect of Sun Line thinking "outside the box," and stated she is uncomfortable with doing a jPA for this program. MOTION - It was moved by Board Members Sniff/Adolph not to enter into a Joint Powers Agreement with CV AG to create a Coachella Valley Home Purchase Financing Authority. - - -~._------ --. - Redevelopment Agency Minutes. 7 May 18, 2004 Chairperson Henderson asked if there might be any consensus of r-- support if the program happened without a JPA. Board Member Sniff noted that would be a separate issue. Board Member Perkins stated he doesn't support JPAs but is willing to give CV AG an opportunity to address the concerns discussed today. Motion carried unanimously. Motion - It was moved by Board Member Perkins and Chairperson Henderson to voice support to consider another proposal if CV AG comes up with a program under a restructured JPA. Board Member Osborne noted La Quinta already has a housing program, and questioned making CV AG responsible for another city that may not have a housing program. After a brief discussion, the motion was withdrawn. - The Agency recessed to and until 7:00 p.m. 7:00 P.M. The Agency concurred to take up Study Session Item No.1 at this time. STUDY SESSION 1 . DISCUSSION OF THE LA QUINT A ARTS FOUNDATION REQUEST FOR USE OF THE SIL VERROCK RESORT PROPERTY OR OTHER LOCATIONS FOR THE ARTS FESTIVAL. .Assistant Executive Director Weiss presented the staff report. Board Member Osborne stated he looks forward to making the SilverRock Resort property available to the Arts Foundation once all of the phases are determined. He desires to keep the Arts Festival in La Quinta and supports their request to use the Civic Center Campus for the 2005 Arts Festival. - Board Member Sniff stated he also wishes to keep the Arts Festival in La Quinta, and spoke in support of Option 2 for future long-term use Redevelopment Agency Minutes 8 May 18, 2004 of the SilverRock Resort property. For the short-term, he suggested using the La Ouinta Park at Westward Ho Drive and Adams Street. He expressed the following concerns about using the Civic Center Campus: the effect on the Senior Center and church organization that leases the Senior Center on Sundays; Civic Center parking lots are used by employees and visitors to City Hall; use of Village Parking Lot would cause parking problems for businesses in the area; and logistical problems related to turning off the geyser and sprinkler system, and providing adequate water and power access. Board Member Adolph stated he also. feels the La Ouinta Park is a better alternative because of parking issues. However, he feels the best solution is to grade and seed the area discussed at SilverRock while the equipment and irrigation are on site. He noted other organizations, such as the Arts Alliance, could use the site for events. In response to Chairperson Henderson, Community Services Director Horvitz advised the La Ouinta Park is used by approximately 1 ,000 children for soccer at the time of the Arts Festival event. She noted additional concerns are: the restriction against amplified sound; restriction against security lighting after 10:00 p.m.; parking; and closure of the park to the community. Board Member Adolph indicated he doesn't have a problem asking the soccer league to find alternative fields for the two days but prefers the SilverRock site. Chairperson Henderson noted there will be issues to deal with on any of the sites but she feels the Arts Festival is one of the best uses to have on the Civic Center Campus ~ She understands there is some thought about reducing the event to three days and four evenings. Kathleen Hughes, Events Manager of La Quinta Arts Foundation, confirmed the event will start Thursday evening and go through Sunday. She believes having the Arts Festival at the Civic Center Campus will provide an opportunity to showcase the Campus. She stated the local businesses support the idea and feel it will be a great way to make the community aware of the different restaurants and businesses. She indicated the Arts Foundation will try to rent vacant lots for parking as well as utilize SilverRock as a shuttle parking area. Board Member Adolph commented on the sensitivity of the areas around the lake, and asked how they would mitigate and not destroy it. --~-_.- -- ~- - .-. .. --.- -- - - ------- Redevelopment Agency Minutes 9 May 18, 2004 r-- Ms. Hughes stated they would be responsible for returning the park to its prior condition before the event. Board Member Adolph voiced liability concerns about having tents close to the water. In response to Chairperson Henderson, Ms. 'Hughes confirmed she met with Senior Center representatives and has blocked off the area they requested. She noted the Senior Center is a safe area for finance. Board Member Adolph asked if the area would be fenced for security, and Ms. Hughes responded, "Yes." In response to Board Member Perkins, Ms. Horvitz noted the Senior Center is rented by a church on Sunday. Council Member Perkins questioned it looking good to have the event held at SilverRock with heavy. equipment and a half-finished project, and noted it may be the place to hold the event in 2006. Regarding the La Quinta Park, he noted the City had a difficult time working out - acceptable uses there with the surrounding neighborhood because of lighting, traffic, and parking issues. He suggested the possibility of closing half the street around City Hall and using it for angle parking if the event is held at the Civic Center Campus. He feels the time period in question is conducive to getting damaged grass to return, and that the event would be an ideal way to draw people to the Village. He believes the Campus was designed for events like the Arts Festival, and feels it's the best location. Board Member Adolph noted the golf course and driving range at SilverRock will be completed before the March 2005 Arts Festival. He doesn't object to having the Arts Festival at the Civic Center Campus if the various issues can be resolved but feels it would be easier to do at SilverRock. He noted the "bottom line" is the Council wants the Arts Festival to stay in La Quinta. Christine Salamone, Executive Director of the La Quinta Arts Foundation, stated their objective is to remain in La Quinta. She comment~d on the importance of knowing, as soon as possible, where the 2005 Arts Festival will be held. She added they hope to announce - the closing on their property within the next few weeks. Redevelopment Agency Minutes 10 May 18, 2004 Board Member Osborne reiterated his support for using the Civic Center Campus for next year's event. Board Member Sniff continued to have significant concerns about using the Campus such as: the temporary fencing, turning off the geyser; major clean-up problem after the event is over; parking; City Hall access for public and employees; and the effect on Senior Center activities. He supports using the SilverRock property, and doesn't want to approve something that will delay a long-term solution, which he believes is using the SilverRock property. He noted the Civic Center Campus is intended to be a passive area, not a park. He further noted people will be displaced at either location, the La Ouinta Park or the Senior Center. Chairperson Henderson noted the displacement at City Hall and the Senior Center would only be for one day, and at the La Ouinta Park it would be both Saturday and Sunday. As for the geyser, she noted it could be left on if there's no wind. She supported trying to resolve the issues related to the Civic Center Campus site and having this come back as a business item. Ms. Hughes stated they need to know where the 2005 event will be held in time to mail artist applications in July. After a brief discussion, there was consensus to direct staff to bring this item back on the June 1, 2004 Council agenda. Board Member Sniff stated he would like to continue consideration of the SilverRock site. Chairperson Henderson noted use of the SilverRock property would require an expenditure of $1 25,000 to prepare the site in addition to maintenance costs. She feels the time to consider that site is when the master plan is completed. She recommended, in the interim, that the Arts Foundation continue working with staff on the various issues. --~. _.~_..~ ~ -, _.- - --- Redevelopment Agency Minutes 11 May 1 8, 2004 BUSINESS SESSION. . . . . . . . . . . . continued ".--- r-' .- -4.". CONSIDERATION OF AUTHORIZATIO'N FOR THE'.. EXECUTIVE . DIRECTOR TO CURE DEFAULTS ON SENIOR LOANS FOR AFFORDABLE HOUSING UNITS AND THE APPROPRIATION OF $500,000 FROM THE UNALLOCATED RESERVES OF THE AGENCY'S LOW AND MODERATE-INCOME HOUSING FUND AND PROVIDE STAFF WITH DIRECTION REGARDING CHANGES TO THE SECOND TRUST DEED PROGRAM. Redevelopment Consultant Spevacek presented the staff report. In response to Board Member Sniff, Mr. Spevacek stated the City receives an average of four to five notices of default each year. He explained senior loans are loans in the first trust deed position. . In response to Board Member Osborne, Mr. Spevacek advised if current homeowners in the second trust deed program are unable to sell their property to another moderate-income household and the Agency. opts not to purchase the unit at an affordable housing cost and resell it, the homeowner can sell the unit and share the - appreciation with the Agency on a declining basis. However, starting with the Avenue 48' and Adams Street project, homeowners are not given the option to sell and share the appreciation. The reason for that is due to a change in the law that now requires the Agency to replace the affordable unit within four years. As for the Agency's rights if the owner sells the property, he indicated staff IS recommending Option 3. Board Member Osborne asked about the options related to the Agency's rights to cure defaults. Agency Counsel Jenson stated Option 1 , which provides a subordination agreement and increases the Agency's rights, is easier to obtain. Option 2, which does not provide a subordination agreement and is intended to be more protective of the Agency's rights, could result in less people qualifying and the Agency having to give a subordination agreement anyway. She recommended Option 1. Mr. Spevacek noted housing price increases have reduced the number of people applying for the second trust deed program because the - second trust deed loan amount is not great enough to attract buyers. He noted if the current trend - continues, the amount of the second trust deed required to make the home affordable will overshadow the Redevelopment Agency Minutes 12 May 18, 2004 amount of the first trust deed loan. He indicated that in 1995, the City focused on single family residential as its affordable housing component and with the multi-family component being senior housing. Currently, the City has about 460 second trust deeds and another 159 to be added with upcoming projects but the City will need to start looking more toward the multi-family component. MOTION - It was moved by Board Members Sniff/Adolph to: 1) authorize the Executive Director to cure defaults on senior loans for affordable housing units that have Agency Second Trust Deed Loans to preserve Agency affordability covenants; 2) appropriate $500,000 from the Unallocated Fund Reserves from the respective Project Area No.1 and Project Area No.2 Low Mod-Income Housing Funds for the purpose of curing loan defaults; and 3) select Option 3 regarding the Agency's rights if the owner sells the property and Option 1 relating to the Agency's rights to cure defaults.. Motion carried with Board Member Perkins ABSENT (he momentarily left the dais). 5. CONSIDERATION OF AN APPROPRIATION OF UP TO $240,000 FROM PROJECT AREA NO.1 LOW MOD-INCOME HOUSING FUND TO ACQUIRE A SINGLE FAMILY HOME LOCATED AT 51-675 AVENIDA VALLEJO. There were no changes to the staff report as submitted and on file in the City Clerk's Office. MOTION - It was moved by Board Members Osborne/Sniff to approve the acquisition of the property located at 51-675 Avenida Vallejo, appropriate $240,000 to acquire and rehabilitate the property, and authorize the Executive Director to sell the property to another moderate-income household. In response to Board Member Adolph, Mr. Spevacek stated rehabilitation of the property is expected to cost between $10,000 to $15,000, based on prior rehabilitations. Motion carried unanimously. ---- -- -- -. - -- Redevelopment Agency Minutes 13 May 18, 2004 STUDY SESSION. . . . . . . . . . . . continued ,-- , . \ 2. DISCUSSION"AND REVIEW" OF THE SITE AND'DWELLING"PlANSFOR . THE VISTA DUNES DEVELOPMENT. Redevelopment Consultant Spevacek presented the staff report. John McMillan and Eric Naslan, Studio E Architects, reviewed site and elevation plans for the site. Mr. McMillan stated the design team looked at custom manufactured units at $ gO/square foot, off-the-shelf manufactured units at $55/square foot, and stick-built units at $80/square foot. He noted the proposed elevations are for stick-built units. In response to Board Member Sniff, Mr. McMillan stated the roofs slope slightly behind parapet walls. In response to Board Member Osborne, Mr. Naslan explained thermal chimneys are an ancient passive cooling device used in hot-dry climates. .-- In response to Board Member Adolph, Mr. Naslan confirmed the buildings have porticos but no roof overhangs. He referenced a senior housing project they built in Indian Wells that uses a lot of the same principles and won national and international design awards Chairperson Henderson stated she would like to incorporate some of the new technology, such as in paint, that is available to dissipate or reflect heat. In response to Board Member Adolph, Mr. Naslan confirmed the walls would be stucco. Board Member Sniff stated he does not like the aesthetics of the buildings, including the flat roofs and lack of overhangs. He also doesn't feel the units are tailored to the desert climate. Mr. Naslan encouraged the Agency to visit the Indian Wells project to get a better perception of the design. Chairperson Henderson indicated that she would visit the project. - In response to Board Member Osborne, Mr. Spevacek stated the number of one-bedroom units in the project is partially based on the demand in the rental market. Additionally, the number of larger units Redevelopment Agency Minutes 14 May 18, 2004 is limited because of retention requirements and availability of space for the units and parking spaces. Staff is recommending the stick- built units over manufactured units to avoid duplicating housing that resembles the current mobile home housing and the stigma of providing cheap units. Board Member Osborne voiced concern that the energy-efficiency and modernization of the units may not be understood by some but rather viewed as block units to save money. He indicated he would look at the project in Indian Wells. . Mr. Spevacek noted the La Ouinta Resort has overhangs but the buildings are flat-walled with parapet roofs and some of the units reflect the architectural style shown here. He suggested taking a look at those units also for a perception of the design. Board Member Adolph stated he would look at the two projects. He noted the units are small but meet the requirements. Board Member Sniff stated he would like to see more two-bedroom units, and noted they are only 85 square feet more than a one- bedroom unit. Mr. Spevacek stated staff can explore the option but noted it would require more parking spaces as well. He confirmed the units will have central heat and air conditioning. Mr. Naslam stated the Indian Wells project utilizes thermal chimneys, evaporative coolers, and air conditioning. Mr. Spevacek suggested continuing this item to allow the Agency Members to visit the Indian Wells project. He indicated staff can explore the additional two-bedroom units if the Agency desires. In response to Board Member Sniff, Mr. Naslan indicated each of the Indian Wells units are 720 square-foot, one-bedroom senior units. Chairperson Henderson noted this item will be brought back at a future meeting. CHAIR AND BOARD MEMBERS' ITEMS - None Redevelopment Agency Minutes 15 May 18, 2004 PUBLIC HEARINGS - None - , ,. The Redevelopment Agency recessed to Closed Session as delineated on Page 1. The Redevelopment Agency meeting reconvened with no decisions being made in Closed Session which require reporting pursuant to Section 54957.1 of the Government Code (Brown Act). ADJOURNMENT . There being no further business the meeting was adjourned. Respectfully submitted, ~ c-- Jd. ~ JUNE S. GREEK, Secretary - City of La Quinta, California , ~