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2004 07 20 RDAeaf 4449ha Redevelopment Agency Agendas are Available on the City's Web Page @ www.la-quinta.org REDEVELOPMENT AGENCY" AGENDA CITY COUNCIL CHAMBERS 78-495 Calle Tampico La Quinta, California 92253 Regular Meeting Tuesday, July 20, 2004 - 2:00 P.M. Beginning Resolution No: RA 2004-12 CALL TO ORDER Roll Call: Agency Board Members: Adolph, Osborne, Perkins, Sniff, and Chairperson Henderson PUBLIC COMMENT At this time, members of the public may address the Redevelopment Agency on any matter not listed on the agenda. Please complete a "request to speak" form and limit your comments to three minutes. Please watch the timing device on the podium. CLOSED SESSION NOTE: Time permitting the Redevelopment Agency Board may conduct Closed Session discussions during the dinner recess. In addition, persons identified as negotiating parties are not invited into the Closed Session meeting when the Agency is considering acquisition of real property. 1. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR, MARK WEISS, PURSUANT TO GOVERNMENT CODE SECTION 54956.8 CONCERNING POTENTIAL TERMS AND CONDITIONS OF ACQUISITION AND/OR DISPOSITION OF REAL PROPERTY LOCATED AT THE NORTHWEST CORNER OF AVENUE 48 AND DUNE PALMS ROAD (APN 649-030-034). PROPERTY OWNER/NEGOTIATOR: JIM MENTON. f^ Jul 20, 2004 Redevelopment Agency Agenda 1 y 3 2. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR, MARK WEISS, PURSUANT TO GOVERNMENT CODE SECTION 54956.8 CONCERNING POTENTIAL TERMS AND CONDITIONS OF ACQUISITION AND/OR DISPOSITION OF REAL PROPERTY LOCATED SOUTHEAST OF THE MILES AVENUE AND WASHINGTON STREET INTERSECTION AND NORTH OF THE WHITEWATER CHANNEL (APNs 604- 040-012/013 AND 604-040-022/023). PROPERTY OWNER/NEGOTIATOR: RICHARD OLIPHANT, CP DEVELOPMENT LA QUINTA, LLC. RECONVENE AT 3:00 P.M. PUBLIC COMMENT At this time members of the public may address the Agency Board on items that appear within the Consent Calendar or matters that are not listed on the agenda. Please complete a "request to speak" form and limit your comments to three minutes. When you are called to speak, please come forward and state your name for the record. Please watch the timing device on the podium. For all Agency Business Session matters or Public Hearings on the agenda, a completed "request to speak" form should be filed with the City Clerk prior to the Agency beginning consideration of that item. CONFIRMATION OF AGENDA APPROVAL OF MINUTES 1. APPROVAL OF MINUTES OF JULY 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 JULY 20, 2004. 2. TRANSMITTAL OF TREASURER'S REPORT DATED MAY 31, 2004. 3. TRANSMITTAL OF REVENUE AND EXPENDITURES REPORT DATED MAY 31, 2004, AND INVESTMENT SUMMARY REPORT FOR THE QUARTER ENDING JUNE 30, 2004. Redevelopment Agency Agenda 2 July 20, 2004 BUSINESS SESSION 1 . CONSIDERATION OF: 1) A RESOLUTION APPROVING THE FISCAL YEAR 2004/2005 LA QUINTA REDEVELOPMENT AGENCY BUDGET; AND 2) A RESOLUTION DETERMINING THE PLANNING AND ADMINISTRATION EXPENSES TO BE FUNDED IN FISCAL YEAR 2004/2005. A. RESOLUTION ACTION(S) STUDY SESSION 1. DISCUSSION OF SilverRock RESORT PROJECT STATUS. CHAIR AND BOARD MEMBERS' ITEMS PUBLIC HEARINGS - NONE ADJOURNMENT Adjourn to a regularly scheduled meeting of the Redevelopment Agency to be held on August 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, July 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 1 1 1, July 16, 2004 DATED: JULY 16, 2004 -'>y- ..- (6 JUNE S. GREEK, CMC, City Clerk City of La Quinta, California Redevelopment Agency Agenda 3 July 20, 2004 l•�' COUNCIL/RDA MEETING DATE: JULY 20, 2004 ITEM TITLE: Demand Register Dated July 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 July 20, 2004 of which $6,086,937.74 represents Redevelopment Agency Expenditures. PLEASE SEE CONSENT CALENDAR ITEM NUMBER I ON CITY COUNCIL AGENDA COUNCIL/RDA MEETING DATE: ,July 20, 2004 ITEM TITLE: Transmittal of Treasurer's Report dated May 31, 2004 RECOMMENDATION: It is recommended the La Quinta Redevelopment Agency: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Receive and File the Treasurer's Report dated May 31, 2004. PLEASE SEE BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA 0 J COUNCIL/RDA MEETING DATE: July 20, 2004 Transmittal of Revenue and Expenditure Reports dated May 31, 2004 and Investment Summary Report for the Quarter Ending June 30, 2004 RECOMMENDATION: Receive and File BACKGROUND AND OVERVIEW: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Transmittal of the May 31, 2004 Statement of Revenue and Expenditures for the La Quinta Redevelopment Agency and Investment Summary Report for the Quarter Ending June 30, 2004. Respectfully submitted, Jgfin M. Falconer, Finance Director Approved for submission by: Thomas P. Genovese, Executive Director Attachments 1: Revenue and Expenditures Report, May 31, 2004 2: Investment Summary for the Quarter Ending June 30, 2004 ATTACHMENT 1 LA QUINTA REDEVELOPMENT AGENCY REVENUE SUMMARY PROJECT AREA NO.1: DEBT SERVICE FUND: Tax Increment Allocated Interest Non Allocated Interest Interst - County Loan Interest Advance Proceeds Transfers In TOTAL DEBT SERVICE CAPITAL IMPROVEMENT FUND - NON-TAXABLE Pooled Cash 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 Increment 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 REMAINING % BUDGET RECEIVED BUDGET RECEIVED 23,134,787.00 23,485,965.06 (351,178.06) 101.520% 66,000.00 109,096.29 (43,096.29) 165.300% 0.00 784.49 (784.49) 0.000% 0.00 0.00 0.00 0.000% 967,182.00 0.00 967,182.00 0.000% 1,731,455.00 1,731,455.00 0.00 100.000% 25,899,424.00 25,327,300.84 572,123.16 97.790% 0.00 191,923.83 (191,923.83) 0.000% 437,100.00 277,263.72 159,836.28 63.430% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0.000% 4,530.00 6,794.40 (2,264.40) 149.990% 0.00 0.00 0.00 0.000% 441,630.00 475,981.95 (34,351.95) 107.780% 0.00 (262.86) 262.86 0.000% 0.00 63,876.44 (63,876.44) 0.000% 0.00 0.00 0.00 0.000% 26,400,000.00 26,400,000.00 0.00 100.000% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0.000% 26,400,000.00 26,463,613.58 (63,613.58) 100.240% 5,783,697.00 5,871,491.32 (87,794.32) 101.520% 4,400.00 5,967.74 (1,567.74) 135.630% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0.000% 341,000.00 337,735.48 3,264.52 99.040% 150,000.00 215,820.56 (65,820.56) 143.880% 0.00 0.00 0.00 0.000% 0.00 135,298.12 (135,298.12) 0.000% 0.00 4,315.36 (4,315.36) 0.000% 0.00 396,047.58 (396,047.58) 0.000% 0.00 0.00 0.00 0.000% 6,279,097.00 6,966,676.16 (687,579.16) 110.950% LOWIMODERATE BOND FUND: Allocated Interest 0.00 0.00 0.00 0.000% Home Sale Proceeds 0.00 0.00 0.00 0.000% Non Allocated Interest 0.00 0.00 0.00 0.000% Transfer In 0.00 0.00 0.00 0.000% TOTAL LOWIMOD BOND 0.00 0.00 0.00 0.000% Co 7 2 LA QUINTA REDEVELOPMENT AGENCY 0710112003.5/31104 REMAINING EXPENDITURE SUMMARY BUDGET EXPENDITURES ENCUMBERED BUDGET PROJECT AREA NO, 1• DEBT SERVICE FUND: SERVICES 394,585.00 367,939.61 0.00 26,645.39 BOND PRINCIPAL 2,208,831.00 2,208,831.00 0.00 0.00 BOND INTEREST 8,060,234.00 8,060,234.64 0.00 (0.64) INTEREST CITY ADVANCE 967,182.00 886,583.50 0.00 80,598.50 PASS THROUGH PAYMENTS 11,011,803.00 10,679,745.46 0.00 332,057.64 ERAF SHIFT 1,467,995.00 1,467,995.00 0.00 0.00 TRANSFERS OUT 0.00 0.00 0.00 0.00 TOTAL DEBT SERVICE 24,110, .00 23,671,329.21 0.00 439,300.79 CAPITAL IMPROVEMENT FUND: PERSONNEL 4,900.00 9,459.99 0.00 (4,559.99) SERVICES 99,619.00 124,946.89 0.00 (25,327.89) LAND ACQUISITION 307,300.00 292,410.55 0.00 14,889.45 ASSESSMENT DISTRICT 0.00 0.00 0.00 0.00 ADVERTISING -ECONOMIC DEV 16,700.00 31,108.05 0.00 (14,408.05) ECONOMIC DEVELOPMENT 187,000.00 136,451.52 0.00 50,548.48 BOND ISSUMCE COSTS 0.00 0.00 0.00 0.00 CAPITAL - BUILDING 0.00 0.00 0.00 0.00 REIMBURSEMENT TO GEN FUND 1,225,208.00 1,123,105.50 0.00 102,102.50 TRANSFERS OUT 27,628,079.00 10,442,299.80 0.00 38,070,378.80 TOTAL CAPITAL IMPROVEMENT 29, ,806. 4,81 38,1 3,6 . CAPITAL IMPROVEMENT FUNDITAXABLE BOND BOND ISSUANCE COSTS 955,822.00 949,968.12 0.00 5,853.88 TRANSFERS OUT 25,444,178.00 17,030,783.29 0.00 8,413,394.71 TOTAL CAPITAL IMPROVEMENT 26,400,000.00 17, 0,7 1.41 0.00 8,419,2485 LOW/MODERATE TAX FUND: PERSONNEL 4,900.00 9,459.99 0.00 (4,559.99) SERVICES 250,497.00 226,003.74 0.00 24,493.26 BUILDING HORIZONS 210,000.00 0.00 0.00 210,000.00 LQ RENTAL PROGRAM 150,000.00 177,597.40 0.00 (27,597.40) LQ HOUSING PROGRAM 1,759,196.00 1,140,956.00 0.00 618,240.00 LOWMOD VILLAGE APARTMENTS 2,350,000.00 0.00 0.00 2,350,000.00 LQRP - REHABILITATION 426,411.00 0.00 0.00 426,411.00 APT REHABILITATION 350,000.00 0.00 0.00 350,000.00 FORECLOSURE ACQUISITION 460,000.00 220,000.00 0.00 240,000.00 REIMBURSEMENT TO GEN FUND 82,595.00 75,712.12 0.00 6,882.88 TRANSFERS OUT 3,898,079.00 3,898,080.00 0.00 (1.00) TOTAL LOWIMOD TAX - 9,941,678.00 5,74 , 09.2 0.00 4,193,868.75 LOW/MODERATE BOND FUND PERSONNEL 0.00 0.00 0.00 0.00 SERVICES 0.00 0.00 0.00 0.00 REIMBURSEMENT TO GEN FUND 0.00 0.00 0.00 0.00 HOUSING PROJECTS 0.00 0.00 0.00 0.00 TRANSFERS OUT 74,623.00 74,623.00 0.00 0.00 TOTAL LOW/MOD BOND 74,623.00 74,623.00 0.00 0.00 01 g 3 LA QUINTA REDEVELOPMENT AGENCY REVENUE SUMMARY PROJECT AREA NO.2: DEBT SERVICE FUND: Tax 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 LOWIMODERATE TAX FUND: Tax Increment Allocated Interest Non Allocated Interest Developer funding Vista Dunes MHP Rental Rev 2nd Trust Deed Repayment ERAF Shift - Interest Sale of Land Transfer In TOTAL LOWIMOD TAX LOW/MODERATE BOND FUND: Allocated Interest Non Allocated Interest Bond proceeds (net) Transfer In TOTAL LOWIMOD BOND REMAINING % BUDGET RECEIVED BUDGET RECEIVED 11,485,062.00 11,751,674.95 (266,612.95) 102.320% 0.00 39,790.25 (39,790.25) 0.000% 0.00 34.73 (34.73) 0.000% 863,674.00 0.00 863,674.00 0.000% 3,442,855.00 337,984.00 3,104,871.00 9.820% 15,791,591.00 12,129,483.93 3,662,107.07 76.810% 0.00 17,936.90 (17,936.90) 0.000% 0.00 18,457.33 (18,457.33) 0.000% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0.000% 0.00 36,394.23 (36,394.231 0.000% 2,871,265.00 2,937,918.74 (66,653.74) 102.320% 27,400.00 71,370.40 (43,970.40) 260.480% 0.00 0.00 0.00 0.000% 7,054,074.00 622,304.65 6,431,769.35 8.820% 0.00 22,604.98 (22,604.98) 0.000% 0.00 94,952.59 (94,952.59) 0.000% 0.00 0.00 0.00 0.000% 0.00 108,570.08 (108,570.08) 0.000% 0.00 0.00 0.00 0.000% 9,952,739,00 3,857,721.44 6,095,017.56 38.760% 0.00 0.00 0.00 0.000% 400,000.00 0.00 400,000.00 0.000% 39,150,000.00 0.00 39,150,000.00 0.000% 0.00 0.00 0.00 0.000% 39,550,000.00 0.00 39,550,000.00 0.000% 4 LA QUINTA REDEVELOPMENT AGENCY 07/0112003 - 5131104 REMAINING EXPENDITURE SUMMARY NO, 2: BUDGET EXPENDITURES ENCUMBERED BUDGET PROJECT AREA DEBT SERVICE FUND: SERVICES 229,013.00 168,983.92 0.00 60,029.08 BOND PRINCIPAL 176,169.00 176,169.00 0.00 0.00 BOND INTEREST 578,895.00 578,894.14 0.00 0.86 INTEREST CITY ADVANCE 957,800.00 877,983.33 0.00 79,816.67 INTEREST - ERAF UMOD LOAN 0.00 0.00 0.00 0.00 PASS THROUGH PAYMENTS 9,779,225.00 7,331,123.49 0.00 2,448,101.51 TRANSFERS OUT 0.00 0.00 0.00 0.00 TOTAL DEBT SERVICE 11,721,1 2. 9,133,1 .88 0.00 2,537,W.12 CAPITAL IMPROVEMENT FUND: PERSONNEL 2,900.00 5,723.45 0.00 (2,823.45) SERVICES 78,544.00 99,319.64 0.00 (20,775.64) ADVERTISING -ECONOMIC DEV 0.00 10,921.63 0.00 (10,921.63) ECONOMIC DEVELOPMENT ACTIVITY 0.00 5,702.81 0.00 (5,702.81) REIMBURSEMENT TO GEN FUND 34,509.00 31,631.38 0.00 2,877.62 TRANSFERS OUT (36,670.00) (53,237.01) 0.00 16,567.01 TOTAL CAPITAL IMPROVEMENT 79,233.00 100,061.90 0.00 (20,778.90) LOWIMODERATE TAX FUND: PERSONNEL 2,900.00 5,724.39 0.00 (2,824.39) SERVICES 127,171.00 183,238.31 0.00 (56,067.31) 2ND TRUST DEEDS 400,000.00 (27,469.00) 0.00 427,469.00 2ND TRUST DEEDS FROM CENTERPOINTE 2,520,000.00 0.00 0.00 2,520,000.00 48TH AND ADAMS - FROM CENTERPOINTE 1,423,203.00 0.00 0.00 1,423,203.00 LOW MOD HOUSING PROJECT/47TH/ADAMS PROJ 533,943.00 0.00 0.00 533,943.00 48TH/ADAMS PLANNING 480,000.00 280,000.00 0.00 200,000.00 FORECLOSURE ACQUISITION 150,000.00 0.00 0.00 150,000.00 REIMBURSEMENT TO GEN FUND 71,968.00 65,989.00 0.00 51999.00 TRANSFERS OUT 10,131,066.00 3,437,062.23 0.00 6,694,013.77 TOTAL LOWIMOD TAX 15,840, 71. 3,944,534-93 0.00 11, 95, .07 LOW/MODERATE BOND FUND 2nd TRUST DEEDS 7,000,000.00 0.00 0.00 7,000,000.00 LAND 31,000,000.00 0.00 0.00 31,000,000.00 BOND ISSUANCE COSTS 1,500,000.00 0.00 0.00 1,500,000.00 TRANSFERS OUT 50,000.00 0.00 0.00 50,000.00 TOTAL LOW/MOD BOND 39,550, .00 0.00 0.00 39,550,000.00 `l l o 5 ATTACHMENT 2 V 0N McM ti co ti co N �tir-V-MMO�N04v- ti O) L w CG N ti mLq N co co ch c0 m Or M O� N N co O w ti~ M V o) ~ Lo ft ti ON SG 7 0 co NpOpM ti cO N00 MmWN O W O to w Cp tiN �� c690 � o A >. >. >+ >► >. A >% A m m m c�N�3c3'c3'C�cS'cS'c3'c3'cS"c 2 aazzzzzzzzzz c m mmcococacvcococvcocow c m m m m m m m m m m c c c c c c c c c c 0 0 0 0 0 0 0 0 0 0 CO a) ZU 0 0 0 0 �n.a °'ac>�av>> 0 0coov>> C E...e-a Xe-Qe-0cocoa0 N � ao ��oaoaooaa mNr.aNw-I Mixes C M0<0: co co pp mMNONO 1 , O)O OYM$ 1 N N COO) Y SOON mY CCCYmmYY CmNYm Im cc0 M M coC6 ccOcnmcnm»mm C6=i Cm::i0=iC6 C6 m co > > > > rC C,il OF �� COUNCIL/RDA MEETING DATE: J u ly 2 0, 2 0 04 ITEM TITLE: Consideration of a (1) Resolution Approving the Fiscal Year 2004-2005 La Quinta Redevelopment Agency Budget and a (2) Resolution Determining the Planning and Administration Expenses to be Funded in Fiscal Year 2004-05 RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Adopt a Resolution of the La Quinta Redevelopment Agency approving the Fiscal Year 2004-2005 City of La Quinta Redevelopment Agency Budget and determining the planning and administration expenses to be funded in Fiscal Year 2004-05. See City Council Staff Report �' 12 RESOLUTION NO. RA 2004- A RESOLUTION OF THE LA QUINTA REDEVELOPMENT AGENCY APPROVING A BUDGET FOR FISCAL YEAR 2004-2005 WHEREAS, each year the La Quinta Redevelopment Agency adopts a Budget for Revenues and Expenditures for the upcoming Fiscal Year; and WHEREAS, the La Quinta Redevelopment Agency desires. to make provisions for a level of services commensurate with the needs of the City; and WHEREAS, the La Quinta Redevelopment Agency has reviewed said budget and has had several public meetings to receive public input; and WHEREAS, the La Quinta Redevelopment Agency has, after due deliberation and consideration, made such amendments in the proposed budget as it considers desirable; and NOW, THEREFORE, BE IT RESOLVED by the La Quinta Redevelopment Agency to adopt, as follows: SECTION 1. The Fiscal Year 2004-2005 Budget which is on file with the La Quinta Redevelopment Agency Secretary, is hereby approved. SECTION 2. Continuing Appropriations which remain unspent and were authorized by Council in Fiscal Year 2003-04, are approved in the Fiscal Year 2004/2005 Budget in an amount not to exceed $66,075,550 (Attachment 1). SECTION 3. Encumbrances for Fiscal Year 2003-04 for committed appropriations are approved in the Fiscal Year 2004-05 budget in an amount not to exceed $ 883, 943 (Attachment 1) . SECTION 4. Budget adjustment procedures are approved as follows: A. Additional appropriations and the transfer of cash or unappropriated fund balance from one fund to another shall be made only upon Redevelopment Agency approval. B. Transfers of budgeted appropriations between divisions or capital projects shall be made only upon Redevelopment Agency approval. 013 2 Resolution No. RA 2004- Budget - FY 2004/2005 Adopted: July 20, 2004 Page 2 C. Transfers of budgeted appropriations between accounts within a division or capital project may be made with the approval of the Executive Director or his designee. D. Prior year budget continuing Appropriations and Encumbrances for unexpended capital project appropriations remaining from uncompleted prior year capital projects shall be made with Executive Director approval. These carry-over appropriations are for prior year Redevelopment Agency approved capital projects and shall not exceed the approved project budget. SECTION 5. The Executive Director shall render .a monthly report to the La Quinta Redevelopment Agency Board on the .status of Agency operations as it relates to the approved budget and any amendments thereto. PASSED, APPROVED and ADOPTED by the La Quinta Redevelopment Agency at a regular meeting held on this 20th day of July, 2004, by the following vote: AYES: NOES: ABSENT: ABSTAIN: TERRY HENDERSON, Chair La Quinta Redevelopment Agency ATTEST: JUNE S. GREEK, CMC, Agency Secretary La Quinta Redevelopment Agency (Seal) 0l4 3 Resolution No. RA 2004- Budget - FY 2004/2005 Adopted: July 20, 2004 Page 3 APPROVED AS TO FORM: M. KATHERINE JENSON, Agency Counsel La Quinta Redevelopment Agency . 015 4 ATTACHMENT 1 City of La Quinta Redevelopment Agency Fiscal Year 2003/04 Continuing Appropriations/Encumbrances -Note 1 15,iul-04 As Dresented in Budget Documents Department Account Description Continuing Appropriation Encumbrances Total Redevelopment Agency 245-9001-703-51.43 LQRP 2nd Trust Deed 518,240 518,240 245-9001-703-51.42 LQRP Rehabilitation 500,000 500,000 245.9001-703-51.46 Apartment Rehabiliation 350,000 350,000 245.9001-703-51.11 Low Mod Village Apartments 400,000 400,000 246-9002-703-51.62 47th Adams Project 533,943 533,943 246-9002-703-51.45 48th & Adams Centerpoint 1,429,203 1,429,203 246-9002-703-51.44 2nd Trust Deed Centerpoint 2,520,000 2,520,000 246-9001-703-95.10 Transfer to Debt Service PA 2 Centerpoint 3,104,871 3,104,871 248-9002-702-74.01 Low Mod Bond Fund proceeds 57,603,236 57,603,236 Subtotal - Redevelopment Aaency 66 075,550 1 883,943 166 959 493 Note 1 - The appropriations and encumbrances listed will be adjusted to reflect actual expenditures as of June 30, 2004 Note 2 - These appropriations (') will be funded contingent upon the receipt of $7,054,074 in developer funds. C..i16 RESOLUTION NO. RA 2004- A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF LA QUINTA DETERMINING THAT THE PLANNING AND ADMINISTRATION EXPENSES TO BE FUNDED IN FISCAL YEAR 2004-05 BY THE LOW AND MODERATE INCOME HOUSING FUND ARE NECESSARY FOR' THE PRODUCTION, IMPROVEMENT AND/OR PRESERVATION OF AFFORDABLE. HOUSING FOR LOW AND MODERATE INCOME HOUSEHOLDS WHEREAS, the City Council of the City of La Quinta has heretofore adopted the Redevelopment Plan for Project Area 1 on December 29, 1983 by Ordinance No. 43; and WHEREAS, the City Council of the City of La Quinta has heretofore adopted the Redevelopment Plan for the Project Area 2 on May 16, 1989 by Ordinance No. 139 and WHEREAS, pursuant to Section 33334.2(a) of the California Community Redevelopment Law (Health and Safety Code Section 33000 et seq.) not less than 20% of all taxes which are allocated to the Agency shall be set aside by the Agency in a Low and Moderate Income Housing Fund and used by the Agency for the purpose of increasing, improving and preserving the community's supply of low- and moderate income -housing available at affordable housing costs to people and families of low -and moderate income; and WHEREAS, pursuant to Section 33334.3 (d) of the California Community Redevelopment Law (Health and Safety Code Section 33000 et seq.) it is the intent of the California State Legislature that the amount of money spent for planning and general administration from the Low and Moderate Income Housing Fund not be disproportionate to the amount actually spent for the cost of production; NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of La Quinta as follows: 1. The Agency hereby determines that it is necessary to allocate $1,001,544 of the estimated $9,150,088 2004-05 Affordable Housing Budget for the planning and administrative expenses necessary for the production, improvement, and or preservation of low -and moderate -income housing during the 2004-05 fiscal year. 1'7 N. Resolution No. RA 2004- Planning & Administrative Expenses FY 2004/2005 Adopted: July 20, 2004 Page 2 2. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions. PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta Redevelopment Agency held on this 20"d day of July 2004, by the following vote: AYES: NOES: ABSENT: ABSTAIN: TERRY HENDERSON, Chair La Quinta Redevelopment Agency ATTEST: JUNE S. GREEK, CMC, Authority Secretary La Quinta Redevelopment Agency (Authority Seal) APPROVED AS TO FORM: M. KATHERINE JENSON, Agency Counsel La Quinta Redevelopment Agency !1$ 7 t ;.,KnWMA IOU w OF T9 COUNCIL/RDA MEETING DATE: July 20, 2004 ITEM TITLE: Discussion of SilverRock Resort Project Status RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: That the Redevelopment Agency review the progress and status of the SilverRock Resort Project. FISCAL IMPLICATIONS: The Redevelopment Agency has appropriated $90.4 million towards SilverRock Resort including land acquisition, the golf course, temporary clubhouse, permanent clubhouse, village lake, and other related on and off -site improvements. Additional expenses as of yet not funded include development of the second golf course and park/civic uses site. The Agency anticipates that the project will, once developed, generate ongoing annual City revenue from golf play, sales and transient occupancy taxes. The Rosenow Spevacek Group, in April of 2002, projected net annual income to the City of $3.2 million from two golf courses and 750 hotel rooms. Additional revenue from land sales, retail sales taxes, and/or additional hotel rooms are anticipated in the future. BACKGROUND AND OVERVIEW: Landmark Golf Management ("Landmark") representatives Andy and Judy Vossler appeared before the Redevelopment Agency on July 6, 2004 and voiced certain dissatisfactions, concerns and frustrations in activities and processes associated with development of the SilverRock Resort Golf Course. The Redevelopment Agency Board, in response to Landmark's comments, asked that staff provide a status report on the SilverRock Project. Additionally, Agency Members indicated an interest in being advised of other issues raised by Landmark including comments specific to the Ahmanson Ranch House as a temporary clubhouse. Accordingly, this report will 0 19 attempt to revisit the project's conception and evolution; touch upon the role of key consultants and contractors in creating and implementing the plan; address Landmark's activities specific to the temporary clubhouse issue; and offer some thoughts on future project process. I. History Robert Charles Lesser & Co. (RCL) completed a market evaluation of future real estate development opportunities in La Quinta in October of 1995 under the direction of the Rosenow Spevacek Group (1995). This study, serving as the foundation for the City's first Economic Development Plan adopted in 1996, concluded that there would be demand for one new resort hotel and four new public golf courses in the Coachella Valley in the next five to ten years. Additionally, the report concluded that La Quinta was properly located and situated to compete for these new resort opportunities. The City reviewed and updated its Economic Development Plan each year subsequent to 1996. Periodically during that time, the market analysis was revisited and updated (i.e., Sedway Group in 1999 and Design Workshop in 2003). These studies were supplemented by a golf -specific market analysis completed by Economics Research Associates in June 2002. As a result of the aforementioned market studies and economic development interests, the Redevelopment Agency considered and pursued various property options. In January of 2002, Agency staff contacted KSL Recreation, Inc., regarding the disposition of KSL's Ranch property. After much discussion, KSL offered to sell 525 acres to the Agency. Agency staff negotiated purchase terms on behalf of the Agency, conducted appropriate environmental review of project alternatives, utilized the aforementioned economic studies, secured financing, and worked with the Agency to enter into an acquisition option agreement in April 2002, followed by actual property acquisition in June 2002. On July 2, 2002, the Agency authorized staff to prepare a Request for Proposal (RFP) for land use planning services. Distribution of the actual RFP was granted on August 6 of that year and was the first step in formulating a specific project development team for what was to become SilverRock Resort. Twenty-two planning firms responded with proposals to assist the Agency in land planning efforts for the project. After extensive interviews, GMA International was chosen by the Agency in October 2002 and embarked with the Agency upon a public land use planning process for the entire 525 acres. After numerous workshops, public meetings and public debate, the Agency approved a Conceptual Master Plan for the project on May 6, 2003. r�qo 2 Below, the Agency will find a summary of key consultants that have been retained since that time to assist the Agency in Phase I project implementation. The quality of the project site, the land plan, a sound fiscal plan and, staff believes, the perception of a well -managed City, contributed to the buzz, excitement and consultant response realized with each RFP. Today, a little more than a year after plan approval, mass grading operations have moved over 2,000,000 yards of dirt, the first golf course has been designed, and shaping is nearing completion. Lakes are being filled, grass is being grown, and support facilities are being built. Desert Classic Charities has endorsed the project design by designating the Tournament Course as a home to the Bob Hope Chrysler Classic. Numerous hotel and casitas developers have indicated support for the project design and exhibited interest in being selected as project developers. The project success exhibited to -date has not been without challenge. The process and project has been subject to much public debate and scrutiny. The Agency has considered, and reconsidered, the very organizational structure by which this project, and indeed, the entire City are managed (see May 2003 Study Session Report, Attachment 1). The Agency has, however, with the help of the project team outlined below, created a venue that is destined to become the premiere resort destination in the Coachella Valley. We are proud to re -introduce the following SilverRock Project team: II. Consultants and Contractors Firm Role # Proposals Retained Rosenow Spevacek Group Econ Development N/A 3/94 Frank Spevacek, Principal & Redevelopment For nearly 25 years, RSG has provided community development, economic development, redevelopment, and housing consultation to local governments throughout California. Frank Spevacek is one of the founding partners of RSG. Economics Research Associates Golf Market (Under RSG 4/02 Gene Krekorian, Sr. Vice President Analysis Contract) ERA, founded in 1958, is an international consulting firm specializing in economic analysis for the entertainment and leisure industry, real estate development, public policy analysis, tourism, and economic development. ERA conducts 25-30 golf consulting assignments annually, representing over 70 California public agencies. ERA has completed 20 golf market, financial, and valuation assignments for Coachella v21 3 Valley projects including Desert Willow, Landmark Golf Club, PGA West, The Reserve, Ironwood, Monterey Country Club, and Mesquite. ERA recently worked with the City of Indian Wells to develop a golf strategy for the City is resort courses. Gene Krekorian has been with ERA for 30 years. GMA International Land Use 22 11 /02 Gil Martinez, President Planning GMA International, in business for 30 years, is a world-renowned land use planning firm, having completed large-scale resort projects throughout the United States, Mexico, French Polynesia, the Caribbean, Chile, South America, Asia, Europe, and Africa. Their services include: Resort Master Planning, Golf Course Routing, Landscape Architecture, Site Planning, Environmental & Entitlement Services, and Architectural Design. GMA's local experience includes the Tradition Club and The Hideaway (formerly Country Club of the. Desert) in La Quinta; the Ritz Carlton at Dana Point; Dove Canyon Country Club in Orange County, CA; and numerous Arizona resorts including Fountain Hills, Estrella Mountain, and Superstition Mountain -Gold Canyon. Gil Martinez is one of the founders of GMA. Palmer Course Design Company Golf Course 38 7/03 Erik Larsen, Vice President Architect Palmer Course Design Company, established in 1979, has been involved in the planning, design, and construction of more than 300 golf courses worldwide. Local golf course designs include The Tradition, Indian Ridge Country Club, PGA West - Palmer Private, and Mountain View Country Club. PCDC has designed both municipal and resort courses, and many of their courses host PGA tour events. Erik Larsen has been with PCDC since 1983, and has designed over 100 golf courses worldwide. Berryman & Henigar Development 9 6/03 Roy Stephenson, P.E., Coordinator Executive Vice President Berryman & Henigar (B & H), founded in 1975, is a municipal professional services consulting firm serving primarily 'the public sector. B & H provides engineering consulting and management services. B & H, specifically Roy Stephenson, was Program Manager during the property acquisition and development of the Blackgold Golf Club in Yorba Linda, managed redesign and construction of several golf holes at the Indian Wells Golf Resort in Indian Wells, and provided development services for the Talega golf community in San Clemente, CA. Roy Stephenson, P.E., was one of the original founders of the company, and has 40 years of program/project management experience. 4 Pacific Advanced Civil Engineering Water N/A 1 1 /03 Mark Krebs, President Engineering Pacific Advanced Civil Engineering (PACE) specializes in water resource solutions (stormwater management, environmental water) and recreational water feature design for a wide variety of projects, including golf courses. Established in 1987, PACE has worked with both private and public sector clients across the country, including Trilogy La Quinta, and Bighorn in Palm Desert. Mark Krebs, a registered professional engineer, has 15 years experience in water resources engineering. The Keith Companies Civil 5 9/03 Dan Ruiz, Director of Engineering Engineering Services The Keith Companies (TKC), established in 1983, provides planning, engineering, and design services for private and public sector projects and has 16 divisions throughout Arizona, California, Michigan, Nevada, Oregon, Texas, and Utah. TKC has provided engineering services for local golf projects such as The Tradition, The Quarry, Ritz - Carlton Rancho Mirage, The Reserve, Travertine, Eldorado in Indian Wells, as.well as numerous local public works projects. Dan Ruiz, P.E., has over 12 years of civil, water, and roadway design engineering experience. Dahlin Group Jack Gallagher, Senior Architect Building Architect 6 11/03 The Dahlin Group, founded over 25 years ago, provides a wide variety of architectural services in the Western United States and China. The Dahlin Group has extensive golf facilities experience, including clubhouses, pro shops, cart barns, and maintenance buildings. Jack Gallagher has 15 years experience, including clubhouse design for Desert Willow, Talega in San Clemente, and Balboa Golf in Balboa (San Diego). RGA/Pinnacle Design Landscape 8 2/04 Rob Parker, Landscape Architect Architect Founded in 1977, RGA/Pinnacle Design has extensive golf course landscape design experience, as well as public sector, commercial, residential, and recreation landscape design. Local golf -related projects include The Tradition and The Quarry; RGA has also provided landscape design for Cal State San Bernardino's Palm Desert Campus, Palm Springs Desert Museum, Indian Wells Tennis Garden, and the Westin Mission Hills. Rob Parker is a Registered Landscape Architect. Cj?3 5 Heinbuch Golf, LLC Construction 12 1 1 /03 Gary Heinbuch, President Management John Przybyszewski, Construction Manager For over fifteen years, -Heinbuch Golf has managed over 100 golf course projects. across the United States, including golf course construction and quality control, clubhouses, cart storage facilities, and maintenance building and yard complexes. Heinbuch Golf has managed both municipal and private projects. Gary Heinbuch has over 30 years industry experience, and John P. has been involved in numerous golf course construction projects throughout California. McMurry, Inc. Pre -Opening Marketing 12 11 /03 Stephen Williams, and Public Relations Sr. Vice President of Business Development Established in 1989 as a custom publishing company, McMurry has expanded to become a full -service marketing communications company. Golf and resort -related clients include the Ritz -Carlton (both corporate -level and the Phoenix hotel), Biltmore Resort & Spa in Phoenix, Talking Stick Golf Course and The Golf Club in Scottsdale, Wyndham Hotels, IMI Investment Properties (Jack Nicklaus Luxury Golf Communities), and many more. Stephen Williams has been with McMurry for nearly two years, and prior to that he has been in the publishing business, has consulted for Fortune 500 companies, and was President and COO of a publicly traded telecom company. Landmark Golf Management Golf Course 12 4/04 Andy Vossler, Vice President Management Johnny Pott, Sr. Vice President Established in 1971 as Unique Golf Concepts by PGA pros Ernie Vossler and Joe Walser, the company was purchased by Landmark Land Company in 1974, and re- established as Landmark Golf Company in 1993. Over the years, Landmark Golf Company has developed and managed renowned local golf developments including PGA West, La Quinta Hotel, Mission Hills Country Club, as well as numerous golf resorts across the country. Along with SilverRock Resort, Landmark is currently managing the Landmark Golf Club and Shadow Hills Golf Club, both in Indio; The Golf Club of California in Fallbrook; The Ranch at Silver Creek in San Jose; Landmark at Hemet Golf Club in Hemet; and Paradise Ridge in Phoenix. Andy Vossler has been with Landmark since 1978 and has developed several large-scale golf communities in California. Johnny Pott, a former PGA tour champion, has been with Ernie Vossler and Joe Walser since they started Unique Golf Concepts; Johnny has been involved with the design and development of numerous golf courses and heads up Landmark's Design and Construction Division. III. Temporary Clubhouse and Landmark �� 2 4 6 Staff has understood since property acquisition that the Agency wished tokeep and y restore the Ahmanson Ranch House. Evaluation of the Ranch House (i.e., refurbish on -site structures or design and construct new structures to serve as the clubhouse and maintenance facilities") was included as a task within the Request for Proposals (RFP) for the Development Coordinator approved by the Agency on February 18, 2003. Mr. Stephenson specifically identified evaluation of the Ahmanson Ranch House on a "Master Schedule" of activities presented to the Agency July 1, 2003. In August 2003 the Agency approved an RFP for Building Architectural Services that specifically identified evaluation of the Ahmanson Ranch House's capacity for use as a temporary clubhouse as a "desired service". The RFP indicated that the architect would be asked to design the remodel of the house if such re -use as a temporary clubhouse were feasible, or alternatively, if such re -use was not feasible, to prepare plans, specifications and cost estimates for a temporary facility using modular facilities. Dahlin was selected as the Architect and presented its findings regarding the Ahmanson Ranch House on January 6, 2004 (Attachment 2). The Agency, on that date, voted 4-0 in favor of remodeling the Ahmanson Ranch House as the temporary clubhouse (see Minutes of January 6, Attachment 3). On January 9, 2004, the Agency selected Landmark Golf Management Inc. as the preferred operator. Staff subsequently initiated discussions with Landmark representatives regarding the management contract structure. During these discussions, Landmark advised staff that Landmark believed the Agency had made a mistake in remodeling the Ahmanson Ranch House. Landmark further indicated that it had chosen not to advise the Agency of the mistake before the decision was made for fear of jeopardizing Landmark's selection as the operator. Landmark subsequently submitted its list of clubhouse "positives/negatives" to staff (Attachment 4). During follow-up meetings, staff advised Landmark that staff did not always agree with Agency decisions but, once decisions are made, staff's policy was to implement Agency decisions to the best of our ability. Landmark advised the Executive Director and Assistant Executive Director that, while Landmark may not agree with the Agency on this matter, they would honor the policy and work with staff to make the Ahmanson Ranch House work. Accordingly, staff thought the matter was resolved. On February 3, 2004, the Agency reviewed the floor plan and site plan for the proposed temporary clubhouse. Staff, taking Landmark at their word, advised the Agency in the February 3 report that, "The recommended site plan attempts to maximize aesthetic and historical value of the Ahmanson ranch house's setting while addressing operational challenges created by the building's location and size 0125 7 limitations. Landmark Golf, while not yet under contract, has contributed to these efforts by itemizing operational challenges posed by re -use of the ranch... house and assisting GMA, Dahlin, and staff with site planning efforts." (emphasis added). By the preceding, staff attempted to advise the Agency of Landmark's concerns while noting their pledge to work affirmatively to address those concerns consistent with the Agency's direction. At no time did staff advise Landmark that they were not allowed to discuss matters with the Agency Board Members. Landmark representatives regularly interact with Agency Members. Staff did ask that Landmark keep staff abreast of Agency contact. And Landmark representatives discussed the advantages/disadvantages of the temporary clubhouse directly with Agency Board Members during this time. Additionally, staff discussed the matter with Agency Board Members in considerable detail. Staff believed that Landmark's position specific to the temporary clubhouse was known by the Agency Board. Thus, the Ahmanson Ranch House was publicly discussed by the Agency on numerous occasions. Landmark followed the project closely and discussed numerous issues with Agency and staff members, but apparently chose to withhold substantive comment on the temporary clubhouse during the public decision -making process for its own reasons. Subsequently, after the decision was made, Landmark advised staff of their disagreement with the decision but ultimately indicated that they would work to implement the Agency's decision. During discussions of the business plan, however, Landmark once again surfaced their opposition to remodeling the Ahmanson Ranch house as a temporary clubhouse. Staff offered to review Landmark's position regarding merits of a modular facility again at that time, but asked that Landmark provide some cost/benefit information. Landmark advised they would provide an analysis in exchange for additional compensation (and, further, offered to supervise the installation of modular units for yet more compensation). This was reported to the City Council via staff report on June 15, 2004. Staff believes it is possible to address some of Landmark's issues within the Ahmanson Ranch House alternative. For example, this might include renting or buying a mobile kitchen placed adjacent to the Ranch House (i.e., to obtain the full kitchen and liquor license). There is additional space adjacent to the house for patio or outdoor accommodations and entertainment. Unfortunately, the Agency received only one bid on July 14 for the remodel (for $972,000 exceeding the Engineer's estimate of $650,000)--whether that be as a result of public uncertainty about the project or simply a product of current market Li conditions and project size. As of this writing, staff has not had an opportunity to fully analyze the responsiveness of that bid. A modular alternative is still possible but would need to be analyzed in terms of cost, design, and location. Landmark has hinted that modulars may be accomplished for approximately $600,000, but it is not clear that this price includes architectural features such as were contemplated with .the Ahmanson alternative. These costs would likely not contribute to the permanent project (i.e., would be true lost costs). IV. Process As noted earlier in this report, the City of La Quinta has explored the concept of golf course/resort development since at least 1996. The Redevelopment Agency, working with Staff, RSG and Rutan and Tucker ("Agency Staff"), acquired the property now referred to as SilverRock Resort in June of 2002. In May of 2003, the Agency discussed in detail "implementation activities" associated with SilverRock and formulated a process for developing the site. Since that time, the Agency and Agency staff have selected the team, created the plan and embarked upon Phase I construction of the project. Staff has attempted to update the Agency today on the project's status. Agency staff takes great pride in the progress made to -date. The Agency's success in giving guidance, staying focused, and moving this very complex project forward in a publicly inclusive environment with demonstrated quality and efficiency has been impressive. Agency Board Members have tenure with this City ranging from 2 to 18 years. The Executive Director has been with the City for 16 years; the Redevelopment Consultant for 16 years; and the Assistant Executive Director/Project Manager for 8 years. Specific to SilverRock, each of the selected project consultants and team members have demonstrated experience and competence with other similar projects. This experience has enabled the progress demonstrated to -date -with adopted plans and on - site improvements. To this point, the project has generally proceeded on schedule and within adopted budget parameters. The project has generated significant public anticipation. And the project design has been praised by interested developers, citizens and PGA Tournament officials alike (as evidenced by the project's selection as a home' course to the Bob Hope Chrysler Classic). Staff believes the City stands to benefit greatly from the positive publicity and buzz created by this new venue. Staff believes it important that all SilverRock staff/consultants support Agency decisions once they are made. And staff does not feel it appropriate or productive to report each staff or consultant disagreement with Agency action. Such would inevitably lead to project dissension, negative. publicity and, ultimately, project paralysis. C, 2'7 9 Landmark is the newest member of the SilverRock team having been retained in April of this year. Landmark has raised numerous issues other than just the temporary clubhouse specific to SilverRock in recent weeks and months (see Attachment 5). Most of the issues raised by Landmark relate to decisions that were made prior to Landmark's contractual involvement with the project, but still routinely surface in staff's interactions with Landmark (one exception is the Avenue 52 Tunnel, a decision which has not been formalized, but to which Landmark's representative has voiced opposition). Staff brings them forward now in an effort to put the issues to rest. Finally, one ongoing Landmark criticism relates to staff's efforts to formulate a balanced golf budget. Early pro-formas suggested such was possible, but Landmark's initial and preferred budget proposal would have had the City paying Landmark nearly $4 million per year for course maintenance and operations (as opposed to the pro- forma's $2.7 million expense estimate). This budget proposal would have had the City subsidizing golf operations by approximately $800,000 in the first year (i.e., operating at an annualized first year loss of $800,000). Landmark represented that their experience in operating other projects that the first year would be the project's best year. It should be noted that staff was assisted in review of the operating budget by ERA, Berryman & Henigar, Tom Frost, and other industry professionals. Given Landmark's criticisms, it is not clear why Landmark wanted to be associated with this project, or at minimum, why they did not suggest that certain issues, if deemed critical (i.e., project management, the clubhouse, Landmark's authority, etc.), be addressed as a prior condition to their formal affiliation with the Agency. The operator's role with any project is critical to its success. In this case, the operator must not only grow the grass and maintain the premises, but must market the project and serve as the day-to-day liaison with the public. The operator must be one of the project's chief ambassadors. This may be very difficult if the operator believes the project's basic design or premise is fundamentally flawed. Landmark, in citing frustrations with the project, process and staff, stated that "somebody probably does need to leave" at the July 6, 2004 RDA meeting. It is unfortunate that Landmark has publicly reached that conclusion, but if that is Landmark's conclusion, it may be better to part ways now rather than wait until numerous legal agreements and entanglements make separation more difficult. Agency staff looks forward to working with the Agency Board in bringing this project to its successful conclusion. 028 10 VI. Moving Forward The Agency asked to consider activities for the next 6-18 months. These activities could include, but may not necessarily be limited to: • Evaluate the Ahmanson Ranch bid submittal and revisit temporary clubhouse alternatives; • Complete construction of the 1st golf course and support facilities including restrooms, maintenance facility and temporary clubhouse; • Consider and adopt the Annual Plan; • Finalize the Brand Promise; • Construct Jefferson Street, Ave. 52 and 54 street, perimeter and wall improvements; • Construct on -site backup wells; • Consider and adopt operational policies, practices and fees; • Schedule and host Grand Opening event; • Evaluate costs/benefits of Permanent Clubhouse; • Finalize collateral materials for marketing development sites for hotel, casita, and retail development; • Develop criteria and process for considering development proposals; • Consider Avenue 52 tunnel proposal;. • Consider Parking and Host requirements for the Bob Hope Chrysler Classic; • Establish resident and non-resident fees and access policies; and • Evaluate merits of initiating 2"d golf course development (i.e., perhaps updating ERA's June 2002 Market Analysis). VI. City Manager's Comments Indicated in this staff report, there are several issues raised that go beyond the issues regarding the temporary clubhouse. I will address some of those in my comments. Process for Implementation of SilverRock Development and Operation Activities There have been various times during the development and implementation of the SilverRock Resort project when we addressed the implementation process. The first time staff addressed the implementation process to be utilized for this project was on May 20, 2003. At that time, the Agency Board chose to utilize the same organizational structure that is utilized for all other projects and has served the City/Agency well throughout the years. This structure has been utilized in building a fiscally sound, well planned, and progressive city. The staff report of May 20, 2003 has been provided as Attachment 1. Other comments surrounding this project have included its "specialization and magnitude." It is clear that this project is the single largest undertaking of the City/Agency and is "specialized" in nature. It is, however, important to note that the City Council/Agency Board has utilized this same implementation process for building this entire City and specialized projects such as parks, City Halls, Cove Improvements (streets, sewer, water), fire stations, etc. The City/Agency has also completed complex bond financing, housing projects, negotiations with cable franchise and waste haulers, just to name a few. With the City Council/Agency Board guidance, these projects have been completed through staff and with the assistance of hiring professionals with expertise in the particular fields needed for successful implementation of the projects. That same method of implementation for the completion of the projects referenced above has been utilized for the SilverRock Resort project. To date, that implementation has been successful and recognized. The project team consists of some of the finest professionals in the field, led by highly competent professional staff members. I believe without the process of implementation that has been utilized and the team of professionals and staff selected, the project's success would not be at the extraordinary level the Agency Board or the Executive Director expects it to be. We have completed a great deal of the vision to date, but still have a ways to go. Assembling of the Team As the Agency Board is aware, the Board has undergone extensive processes in assembling the great team of professionals we have for the SilverRock Resort project. Equally, I believe we are pleased with the progress to date. The team assembled has, for the most part, worked well together on various complex issues in bringing the project to fruition. However, at the last Agency Board meeting, substantial conflict arose during the discussions of the temporary clubhouse feasibility/location. My concern, as Executive Director, is not the specific issue of the discussion of the temporary clubhouse, but rather the larger issue of project implementation. I too, have had discussions with Mr. Andy Vossler regarding the SilverRock project. Some of the items of which Mr. Vossler and I spoke are addressed in this report; some of which I do not feel professionally appropriate to make part of this discussion. One particular concern I have is Mr. Vossler's specific comment made at the last Agency Board meeting, which had not been brought to my attention during Mr. Vossler's discussion with me on June 29, 2004. That comment was, "We've been hindered, harassed, badgered, agitated, to the point that it's very difficult for us to see 12 J30 how we do what we're here to do for you without our getting our image and reputation tarnished a lot more than we want it to be." This statement is untrue. Staff has treated Landmark professionally, and expects the same in return. The making of untrue comments casts aspersion on the SilverRock Resort project and is likely to hinder its implementation. The Agency Board guidance, the project manager, and the project team have, to date, implemented this project very successfully. Our goal is to see this project through to fruition. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Review the progress and status of the SilverRock Resort Project; or 2. Provide staff with alternative direction. Respectfully submitted, Mark Weiss Assistant Executive Director Approved for submission by: Thomas P. Genovese, Executive Director Attachments: 1. Staff Report and Minutes from May 20, 2003 2. Feasibility Study for Ahmanson Ranch House 3. RDA Meeting Minutes from January 6, 2004 4. List of Positives and Negatives from Landmark 5. Landmark Issues 7-12-04 tom' i OF 9 COUNCIL/RDA MEETING DATE: May 20, 2003 ITEM TITLE: Discussion of Silver Rock Ranch Implementation Activities RECOMMENDATION: As deemed appropriate by the Redevelopment Agency. FISCAL IMPLICATIONS: ATTACHMENT 1 AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: None for this action. The FY 2002-03 Capital Improvement Program includes a project entitled Municipal Golf Course — Phase 1, including $2.5 million for contractual services related to planning, engineering and property management. Current construction estimates for Phase I, including supporting infrastructure, total $21.5 million. BACKGROUND AND OVERVIEW: The Redevelopment Agency acquired 525 acres of property commonly referred to as The Ranch in June of 2002. The Agency adopted a conceptual land use plan and renamed the project "Silver Rock Ranch" in May 2003. The Agency authorized Requests for Proposals (RFPs) for both "Development Coordinator" and "Golf Architect" services. Architect interviews are scheduled for May 30, 2003. The Development Coordinator position remains vacant pending •successful negotiation of a contract for said services (e.g., Tom Frost, Inc., was not retained by the Agency, and Chapman Golf subsequently withdrew their proposal (Attachment 1); staff will initiate discussions with the third -ranked firm, Berryman and Henigar, unless directed otherwise by the Agency). Staff itemized selected tasks that are required for project implementation (Attachment Staff then reviewed these tacks with GMA for completeness and to evaluate the merit of consolidating certain tasks under the direction of specific consultants (i.e., perhaps including lakes, irrigation, landscape architecture with the golf course, etc., within{the scopeof the, -Golf Course Architect, for example) (Attachment 3). Consistent with actions taken to -date, staff believes it appropriate to circulate RFP's for selected services (i.e., such as the Development Coordinator, Golf Course Architect, Construction Manager, Golf Course Operator, etc.). As the Agency moves forward, however, numerous implementation issues surface that the Agency may wish to address. Following are some of these issues. Generally, staff recommendations are reflected in the first option for each item. Organizational Structure 1. Retain the current organizational structure (i.e., as with all other City/Agency projects, Agency provides policy direction and Executive Director implements that policy — currently with centralized management out of the Director's Office); or 2. Create an alternative structure specific to this project. Options might include "Commission," "Citizen's Committee," or "Strong Mayor/Chair" formats wherein certain administrative responsibilities are assumed by Agency Members, a Committee, or the Agency Chairperson. Contract Organization 1. Streamline project. management by grouping contracts under selected master consultants (i.e., Golf Course Architect, Civil Engineer, Land Use Planner, etc.); or 2. Separate disciplines and tasks, issue RFP's, or otherwise select contractors/consultants for each, and coordinate activities internally; or 3. Solicit proposals from a master developer(s) to "turnkey" project development. Plan Consistency 1. Negotiate a continued role with GMA International (see Attachment 4) in an attempt to ensure a "seamless" plan implementation. Such activities might include attention to project landscaping, grading and/or architectural themes; or 2. Issue a new RFP for additional specific planning services; or 3! 3. Utilize the golf architect and potential hotel/commercial developers to refine specific components of the plan under staff oversight. Development Coordinator 1. Negotiate with the third -ranked firm (Berryman and Henigar) for Development Coordinator services; or 2. Reject all proposals and reformulate an RFP with fewer restrictions on contract term and future project involvement; or 3. Reject all proposals and assign tasks to existing staff (i.e., probably resulting in various Department Directors being assigned specific project components for management and oversight under the general direction of the Manager's Office). Project Name and Logo 1. SilverRock Ranch; or 2. Silver Rock Ranch (i.e., Silver Rock as one word or two, Attachment 5). Staff is prepared to discuss perceived advantages/disadvantages of the concepts outlined above. Certain concepts may require additional investigation, including legal review (e.g., the "turnkey" concept, for example), should the Agency wish to seriously pursue implementation. Respectfully submitted, Mark Weiss, Assistant Executive Director Approved for submission by: Thomas P. Genovese, Executive Director r. U 0 16 Attachments: 1. Correspondence from David Chapman 2. Task list 3. Consolidation list 4. GMA correspondence 5: Logos -� 17. (� CHAPMAN GOLF DEVELOPMENT May 14, 2003 Mr. Mark Weiss City of La Quinta Redevelopment Agency 78-495 Calle Tampico La Quinta, CA 92253 • Dear Mark, ATTACHMENT 1 It is with great regret that I withdraw my name from consideration for the Development Coordinator position for Silver Rock Ranch Resort. I have recently had numerous requests for my services in the private sector and since that is where my comfort level lies I have to pursue those endeavors. I appreciate verymuch your confidence in me and I would like to be involved somehow with the project in the future. I wish you ay1he best. // 11,W J David Chapman J ::.. 78505 OId Avenue' S2 ='Lh Qtnta� CA'�253 �► T Officer 760-564-3355 18 ATTACHMENT 2 Silver Rock Ranch Project Project Requirements Disciplines Scheduling* Water Management Plan* Master Grading Plan* Drainage Plan* (Could be part of Civil Engineering) Landscape Plan# Cart Plan# Agronomist# Irrigation Plan for Golf Course# General Irrigation Plan Lakes Specialist* Civil Engineer* Off/onsite improvements Dry Utilities (phone, cable, gas) Water Backbone Grading Drainage Bridge Geotech/Soils Topo Map PM 10 Plan/Coordination Marketing Clubhouse Architect Temporary Clubhouse* Maintenance Facility Signage Superintendent/Operator * Construction Manager* Media Infrastructure Restrooms * = Need ASAP # = Could be part of Golf Course Architect's Scope of Work ['_nnctri intinn Bid Specs for Contractors RFP Process Analyze RFP's Prevailing Wage 19 -'May-13-03 03:010"GMA Newport Beach 1949E ATTACHMENT 3 SILVERROCK RANCH PROJECT Project Requirements Golf Course Architect • Irrigation plan + Agronomist + Cart plan • Landscape plan within golf course envelop + Lakcs specialist • Drainage plan within golf course cnvelop • Grading plan within golf course cnvelop Proiect Civil Engineer • on/off site improvements • Dry utilities • Water backbone • Wa . tewater back bone + Crrading final Plan/precise grading plan outside of the golf course envelop • Drainage Plan (coordination with golf course Architect) • Bridge(s) • Geotech/soils • Topo mapping • Streets/road improvements • Bid specs for contractors Marketing + Media infrastructure • Promotional strategy"/campaign Club House Architect • Temporary club house + Restroorns • hnprovements plans and bid specs for contractors • Interior design Landscape Architect • Signage • Landscape plan outside the golf course envelop • Precisc grading plan C: { ` 20 RECE I ViD" `FROM : 19496759552 May 13 -03 03:O1P': GMA kawpov-t Beach 19496759552. Construction l�lanagemCnt Scheduling • Gonstruction mans,9cr • Manage bidding pn) ;ess Lezal Services • Various liability/obligation agreements • Reciprocal rights + Servicing agreements Water Management Specialist • Water management plan • Wastewater management plan Operations • Superintendcnt/operator + Maintenance agrecments/manual. Project Manap-er/Project Administrator • Project over site • Manage the public; process • Manage the team members • Manage budgct • State and City compliance • Manage preparation of proicct perfcrma ' c Jro,9 -21 r. RECEIVE 2 t 1�4'`:.+•. ` =D aF'tQM ';L9`4 6.7595:5 R •r R, 2 r rAe Plannin andcaae Architecture • Entitlement • g ATTACHMENT 4 28th Street Marina 2700 New ort Blvd. Suite 19 p Phone (949) 675-9559 • Fox (949) 675-9552 • El DATE: April 28, 2003 TO: Mark Weiss From: Gil Martinez/Carol Ackerman RE: Ongoing Master Planning Services As you know, we are nearing the completion of our current contract with the City for master planning services. In the course of defining and designing the proposed golf, resort, retail and recreational project, we have learned a great deal about the property, the participants and Redevelopment Agency process and the evolving marketplace to which this project will be responsive. In creating a world -class municipal golf course and additional amenities appropriate to our Scope of Work, we have engaged in most segments of the planning process and have responded to a number of assignments or tasks beyond our current contract. You have invested in the GMA team and collectively, we understand a significant body of detail relative to the on- going design and development needs of this remarkable site. Projects of this speed and complexity benefit from 'institutional' memory, experience and talent -specific continuity, as you are well aware. In order to preserve the investment the City,and the process have in GMA and with the intention of maximizing that investment into and through completion of the project, we propose that our current contract be extended. In the on -going, forward planning role, GMA would respond to and assist the City in further matters of site planning, (accurately interpreting and implementing the overall master plan), provide coordination with the chosen golf course architect, especially as issues of interpreting the costs and effects of the grading and drainage issues; well as support the efforts of the development coordinator and other parties soon to be engaged. We anticipate creating the necessary grading and drainage plan that will address the comprehensive topography and construction needs of the site, which consider the lakes, waterways, golf course(s), building pads and circulation program, including multi -modal trails; provide the design plan for the treatment of the perimeter of the property, which would include the fencing plan so as to take advantage of our previous elevation and view studies; thus ensuring a preservation of the views of the watermark and mountain base; and seamlessly providing various additional services to facilitate the on -going coordination of team input as the project accelerates and becomes increasingly complex. Mark, as you know, we have been in this role of master planner 'from concept to completion' on whole new cities, villages, master planned communities and golf and resort projects around the globe. We can assure you that our commitment is to the success of the overall project and will keep the intent and vision of the master plan first and foremost in our minds. We look forward to another discussion with your office in the coming days to refine this proposal to meet our mutual goals and objectives and thank you, your fine staff and the Agency for a stimulating and engaging opportunity with the City of La Quinta. 040 ,..� 22 ATTACHMENT 5 J Ile If — CI i ' Redevelopment Agency Minutes 3 May 20, 2003 5. APPROVAL OF A REALLOCATION OF BUDGETED HOUSING FUNDS FROM REDEVELOPMENT PROJECT AREA NO. 2 TO REDEVELOPMENT PROJECT AREA NO. 1 FOR THE LA QUINTA HOUSING PROGRAM SECOND TRUST DEED LOAN PROGRAM. MOTION - It was moved by Board Members Adolph/Sniff to approve the Consent Calendar as recommended. Motion carried unanimously. BUSINESS SESSION - None STUDY SESSION 1. DISCUSSION OF SILVERROCK IMPLEMENTATION ACTIVITIES. Assistant Executive Director Weiss presented the staff report. Roy Stephenson, 35-617 Rosemont, Palm Desert, representing Berryman & Henigar, stated they would like to serve as the development coordinator for the project. The Agency then proceeded to discuss the implementation issues. Organizational Structure Board Member Osborne stated he supports retaining the current organizational structure. Board Member Sniff noted there ' has been some discussion about including qualified and interested citizens in this process. He suggested giving serious consideration to forming a citizen's committee of 10 members, with each Agency Member submitting two names. He feels it would be a significant advantage and help with getting the community to buy -into the project. He stated he would view the committee as an advisory group. Board Member Adolph stated several citizens have voiced interest in providing input on the project, and a citizens committee may be a good idea. He feels it's important to expedite the process, and is not sure how often the committee should meet. Board Member Sniff suggested twice a month like the Planning Commission. Board Member Perkins disagreed with forming a citizens committee, noting the Investment Advisory Board was just reduced to five members. He doesn't feel it's necessary to engage staff in additional committee meetings, and has faith 0 26 Redevelopment Agency Minutes 4 May 20, 2003 that the Agency and staff can do what has to be done. He pointed out the Agency Members have been elected to represent the people. Board Member Adolph stated he has received calls from citizens who feel there should be a citizen's committee. Board Member Perkins stated he feels residents can communicate their ideas to the Agency without direct involvement with the process. Chairperson Henderson noted each meeting is open for public involvement, and stated she isn't sure what participation a citizens group would have with disciplines that are so technical in nature. Board Member Adolph stated his idea was to have citizens on the committee who are experts and can help with technical areas, and maybe see things on the conceptual plan that were missed. Board Member Osborne questioned there being a need for a committee that wouldn't have any authority. Board Member Adolph noted the committee could confirm what is being done is correct. He stated experts in the field of golf have offered their expertise, and he would be more comfortable having their input. Chairperson Henderson stated the experts she has talked to are not interested in serving on a committee. Andy Vossler, of Landmark Golf Company, stated he feels it would be difficult to design and construct the project with a committee. He noted this will be a team effort, and suggested the City hire the best team possible. Chairperson Henderson noted identification of who will accomplish the individual disciplines will be done through an RFP process. Mr. Vossler noted there are alternatives to the RFP process, but if an RFP is done, he feels it would be important to get three of the disciplines on board as soon as possible. He stated they can divide the list and determine who is needed next. He questioned why the temporary clubhouse is a high -priority item since it will take 10 months to get grass planted. He feels a committee for public relations purposes is okay but recommended not getting them too involved because some of the decisions will need to be made quickly and a committee decision is time consuming. He believes the development coordinator and construction manager should be one entity. r, A 27 Redevelopment Agency. Minutes 5 May 20, 2003 In response to Chairperson Henderson, Mr. Weiss explained staff has not taken the approach of the development coordinator and construction manager being ..a the same- entity because public tax dollars being -involved, and there being a need for a series of "checks and balances." He stated the initial thought was to hire a development coordinator who is familiar with the golf industry and the public process, and who would be truly objective, having no future compensated role in the project. He stated there are construction managers who did not respond to the development coordinator RFP because of the restriction for further compensated roles in the project. He noted some of the development coordinator tasks have been done by staff, and at some point if the development coordinator position has not been filled, there may be some thought of preparing an RFP for a construction management firm that includes the skills needed for the development coordinator position. In response to Chairperson Henderson, Mr. Weiss confirmed any contracts over $25,000 are required to go through the consultant selection procedure. An exception is allowed when the Agency has experience with another firm that has the expertise the Agency is seeking. City Manager Genovese stated, in this particular situation, the development coordinator could turn into the construction manager. Mr. Vossler noted when one member of the team is not doing his/her job, it affects the other team members, and a dysfunctional situation will be apparent. He believes the process and limitations the Agency has will make it difficult to build a five-star golf course/hotel resort. He feels there may be a need to reconsider what the project is going to be, unless the Agency is able to assemble capable experts for a team and allow them latitude in building the project. Board Member Adolph asked how the Agency is supposed to know it is getting the right team. Mr. Vossler stated the City should start with one of the disciplines on the list, such as a golf architect firm like the Palmer Group, and they will know how to select a good team. Board Member Adolph asked Mr. Vossler if he feels the first step should be to hire a golf architect, and have him help find the development team. Mr. Vossler stated he feels the development coordinator RFP is so restricted it will be difficult for that position to do what it needs to do. He commented on the need for a lead player, such as a golf architect, project director, or golf director. 0A6 28 Redevelopment Agency Minutes 6 May 20, 2003 In response to Chairperson Henderson, Mr. Vossler stated he feels some golf architects are team builders and some are not, and noted what one golf architect firm will tell the City it needs for its team will be different from what another golf architect firm will say it needs. Board Member Perkins commented on situations he has been involved with where someone had to be responsible for putting a team together for everything to work right. He feels the project manager should be responsible for getting the team members together to avoid delays in the project. He voiced concern about the Agency trying to micro -manage the project, and stated he doesn't believe that will work. Chairperson Henderson noted about five of these disciplines should already be working, and that the development coordinator was supposed to be on board to be in charge. Mr. Genovese stated staff will monitor the project as it goes forward but noted the development coordinator was to be the first part of building a team to assist staff in getting everything organized. He commented on the need for expertise to do the project much like when City Hall was built, and stated although this project is larger, the technique and system to put it together is the same. Board Member Sniff stated he doesn't see a problem having a citizen's committee that is informed about the project but understands the need to bring a singular dimension into the project, with a project manager at the top of the organizational chart. He believes that will provide structure and firm direction and make the project happen with some level of dispatch and a significant amount of expertise. He questioned there. being any direct comparison between this project and the construction of City Hall. He believes the City needs someone who knows how to plan and build a golf course, and factor in hotels and other amenities. The City should then charge them with that responsibility and monitor them. Chairperson Henderson noted that is what GMA International does. Board Member Sniff stated he feels there are many groups that can build golf courses, including Landmark Golf Company. Mr. Stephenson pointed out the City doesn't have the same latitude as the private sector unless the project is done as a design/build concept. Otherwise, the project has to be treated like any other public bid project. He stated his proposal for the development coordinator position outlines many of the tasks that will need to be done for this project, and added he built a 250-acre public golf course in a 1,000-acre master plan development. He also commented on the need to have someone who understands the public bidding process. ci 4 i 29 Redevelopment Agency Minutes 7 May 20, 2003 Chairperson Henderson suggested accommodating the desire for a committee by each Agency Member appointing two people. She further recommended the committee meet once a month, and that the Agency meet with them to keep them apprised of the status of the project. Board Member Sniff questioned anyone wanting to participate on the committee if they don't have a relevant role. Chairperson Henderson noted the update may include a decision. Board Member Sniff stated he believes the project should have an overall project director with power and significant ability to move the project forward. Chairperson Henderson stated she is satisfied with the current organizational structure but would give consideration to a commission meeting once or twice monthly for updates on the project, and opportunity to provide input. Board Member Osborne concurred. Board Member Perkins questioned the need for tying staff up in more meetings. Board Member Adolph stated he feels community involvement precludes negative comments, and he commented on the need to move forward with the 7 development coordinator position. He concurs with retaining the current organizational structure, and considering an advisory committee.. Mr. Genovese stated the concept of an advisory committee can be brought back at a future meeting. Contract Organization Chairperson Henderson stated she supports streamlining project management by grouping contracts under selected master consultants. The Agency concurred. Plan Consistency In response to Chairperson Henderson, Mr. Weiss stated many of the golf architects assume the City will have a planner on board to help configure the golf course into the overall plan. Some of the tasks, considered for GMA would be refinement of the conceptual grading and drainage plan, as well as coordinating with the golf architect, clubhouse architect, and water engineer to ensure everything is considered from a land -use standpoint. GMA could also assist in maintaining the web site, refining the logo, color palette, and 4 30 Redevelopment Agency Minutes 8 May 20, 2003 architectural style of the project. He noted GMA has a successful history in resort development and planning and a good understanding of this project. They also have familiarity with -key players in the golf industry, and can provide assistance to supplement the development coordinator. Staff feels it is an opportunity to keep a qualified planning firm on board in whatever capacity deemed appropriate by the Agency. In response to Board Member Adolph, Mr. Weiss stated the golf architects were asked what discipline within the process would they feel comfortable including within their realm and which ones would they not include. Many responded they assumed they would be working with a land -use planner, and that GMA was part of the package. He stated staff informed the golf architects that GMA's contract was coming to a close and that further involvement had not been determined. He stated a majority of the golf architects are comfortable working in an environment in which they know the golf course is only one element. He added a land -use planner ensures integration of all components and makes sure one is not dominant over another. Staff feels GMA's familiarity with the project is best suited in a timely way to bring the project forward, and would encourage communication with any high -executive contacts GMA may have but that may not be a part of a formal contract with them. He stated the discussions with GMA have been very preliminary and staff has indicated any contract with them should have a tangible product. Consultant Frank Spevacek commented regarding the restrictions on using tax- exempt financing, and advised such financing limits the profit a master developer of the entire project or a master developer of specific hotel sites can generate from their role in the project. He advised a staff report on this issue is proposed to come back at the June 3`d meeting . for further discussion. He stated there are ways to structure this by issuing the next bonds on a taxable basis and using it to release the hotel, retail, casitas, and special use areas from the tax-exempt restrictions. However, since the majority use of the golf courses will be qualified under the tax-exempt basis, there are limits on the contracts in terms of timeframes and extreme limits on the amount of profit an entity can gain from that type of activity. Board Member Perkins spoke in support of negotiating a continued role with GMA. Board Members Adolph and Osborne concurred. Board Member Sniff stated he would prefer seeking another firm for these services. Chairperson Henderson asked if a negotiated contract would come back to the Agency for approval. 31 Redevelopment Agency Minutes 9 May 20, 2003 Mr. Weiss responded, "Yes," and added it would be an extension of their existing contract and would clearly explain their continued role. Chairperson Henderson stated she would like to see their marketing participation limited to the web site because she feels a much broader opportunity exists for marketing the project. Mr. Weiss advised staff will start negotiations with GMA and come back to the Agency with a formal contract and specific tasks. Development Coordinator Board Member Perkins recommended rejecting all proposals and reformulating an RFP with fewer restrictions on contract term and future project involvement. Board Member Osborne stated he supports negotiating with the third -ranked firm of Berryman & Henigar if staff is comfortable with that. Board Member . Sniff stated he supports rejecting all proposals and going out with a new RFP. He feels fewer restrictions could be a significant advantage. In response to Board Member Adolph, Mr. Weiss stated Berryman & Henigar were ranked third out of nine proposals and five interviews. Board Member Adolph then spoke in support of negotiating a contract with Berryman & Henigar and having the firm come back before the Agency for an interview. Chairperson Henderson noted the Agency conducted a semi -interview with Tom Frost but that was not the procedure that was ordered. Board Member Adolph noted the Agency is not privy to the discussions staff has had with the firms. Chairperson Henderson pointed out the procedure used to hire someone for this type of position has never provided the Agency to be privy to those discussions. Board Member Adolph stated he would like to know if the firm is capable of handling a project this size, and asked how long a new RFP process would take. Mr. Weiss stated it will take approximately three months to revise the RFP, get the Agency's approval o.n the revisions, advertise the RFP, conduct interviews, negotiate a contract, and come back to the Agency with a recommendation. Chairperson Henderson noted if the third -ranked firm is not approved, a new RFP process will have to be,initiated. 32 Redevelopment Agency Minutes 10 May 20, 2003 Board Member Perkins suggested interviewing the remaining three firms. Mr. Genovese advised the Agency has that discretion but it -doesn't follow the resolution. Chairperson Henderson and Board Members Adolph and Osborne stated. they support negotiating with Berryman & Henigar. Project Name and Logo Board Member Osborne spoke in support of SilverRock as one word. Board Member Sniff stated he opposed the name entirely, and questions capitalizing the "R" in rock. Board Member Adolph stated he doesn't really care for the name but understands the decision has been made and supports SilverRock as one word. Board Member Perkins stated he prefers Silver Rock as two words. Chairperson Henderson stated she supports SilverRock as one word, and added she has heard a lot of support for the name, SilverRock Ranch. Board Member Perkins stated he would support SilverRock as one word. After a brief discussion, the Agency concurred to delay selection of a logo until a marketing firm is on board. Mr. Vossler thanked the Agency for allowing him to participate. He also suggested asking each consultant, architect, etc. that are considered for this project what top 100 golf courses they have been involved with, and what five- star resorts they have been involved with. CHAIR AND BOARD MEMBERS' ITEMS - None r WI rN 33 ATTACHMENT 2. FEASIBILITY STUDY FOR REUSE OF THE EXISTING AB ANSON RANCH HOUSE SILVERROCK RANCH LA QUINTA, CALIFORNIA 34 La Ouinta Redevelopment Agency Mayor Donald Adolph, Board Member Terry Henderson, Board Member/Chairperson Lee Osborne, Board Member Ron Perkins, Board Member Stanley Sniff, Board Member Mark Weiss, Assistant Executive Director 78-495 Calle Tampico, P. O. Box 1504, La Quinta, CA 92253 Site Address, Ahmanson Ranch -House 79-999 Old Avenue 52, La Quinta, CA 92253 Proiect Coordinator Roy Stephenson, P.E. Berryman & Henigar 2001 East First Street, Santa Ana,- CA 92705-4020 Feasibility Consultants ARCHITECT/AUTHOR OF STUDY Andrew J. ("Jack") Gallagher, Senior Architect Dahlin Group 539 South Cedros Avenue, Solana Beach, CA 92075 STRUCTURAL ENGINEER Brian Gottlieb, P.E. B.G. Structural Engineering 45-535 Via Corona, Indian Wells, CA 92210 ELECTRICAL ENGINEER Joe Nolan, P.E. Dream Engineering, Inc. 72330 Canyon Lane, Palm Desert, CA 92260 MECHANICAL/PLUMBING ENGINEER Roy Simpson, P.E. Building Systems Design Group 14443 Rivers Edge Road, Helendale, CA 92342 35' CONTENTS PURPOSE...................................................... . ..................................... BACKGROUND..........................: ......................................................... PROGRAM...................................................................................... . FIELD REPORT, ANALYSIS & ALTERNATIVES I. Means & Methods of Study............................................................ H. General Code Comments ................ III. Site Accessibility....................................................................... IV. Architectural & Structural ........................................................... V. Food Service .............................................. VI.. Mechanical & Plumbing............................................................. VII. Electrical..: ............................................................................. SUMMARY........................................................................................ . CONCLUSION ..................... . 03� PURPOSE The purpose of this study is to determine the feasibility of adapting and reusing the existing Ahmanson Ranch House as a temporary golf clubhouse for the proposed SilverRock Ranch golf course until such time as a new, permanent golf clubhouse can be constructed and occupied. This study also includes commentary related to the possible use of this building as a future conference/special events facility after its use as a golf clubhouse. The feasibility of reuse depends on satisfying the requirements for life safety —as defined by municipal codes and regulations, program compatibility as a golf clubhouse, budget and schedule. ' For context and comparison, the alternative to reuse implied throughout this study is a new; temporary golf clubhouse comprised of modular components in another location. 0 5 37 BACKGROUND The Redevelopment Agency (RDA) for the City of La Quinta, California is developing a premier golf -oriented resort community known as SilverRock Ranch. The 525-acre site is the former Ahmanson Ranch at the southwest corner of Jefferson Street and Avenue 52, adjacent to the Coral Reef Mountains. The first phase of development will include a golf course which is expected to open by January, 2005. A new, permanent golf clubhouse has - not yet been designed and is not expected to be open until well after the first golf course is operational. Therefore, a temporary golf clubhouse is required. Among the alternatives, the RDA decided that one option stood out, but would require further study. It is the possible reuse of the existing Ahmanson family ranch house as a temporary golf clubhouse and/or future conference facility (see figure l & 2).^ The ranch. house has significant architectural features, and is located in a beautiful setting of palm trees and large rock outcroppings with a panoramic view of the mountains. Although unoccupied and abandoned for some time, the ranch house appeared worthy of remodeling and reuse if it was determined to be feasible to do so. For this reason, the RDA solicited a feasibility study. Figure 1. Y ssppy� y . ."c,•� � AR 38 �i i. . z t > seZ .• y lir s s Z' J 1 PROGRAM The following statements summarize key assumptions for this study, and represent information or prior findings conveyed by the RDA or City staff. 1. The clubhouse should comply with applicable building codes and other governmental regulations, including the Americans with Disabilities Act (ADA). 2. The clubhouse should include (at a minimum): pro shop, snack bar and restrooms. 3. The kitchen/snack bar will be limited to 100% pre -packaged foods, as defined by the County of Riverside Environmental Health Services. In other words, the food - service menu will be limited. There will not be a full -service commercial kitchen. 4. The clubhouse should be operational concurrently with the opening of the first golf course. The present target for this is January, 2005. 5. Although site accessibility observations and some alternatives are provided herein, the primary purpose of this study is to evaluate the ranch house building, not the site.. Site design services are to be provided by others. These may include studies of soils and other geological conditions, entry roads, golf course and cart path design, site utilities, landscaping, etc. 6. Since the golf course routing will be designed primarily to suit the permanent clubhouse location (as opposed to the temporary clubhouse), it is understood that the temporary clubhouse location may not be ideal with respect to the locations of the 1" and 10* tees, and the 9t' and 18t' greens. The golf course operator is expected to work around any deficiencies during the life of the temporary clubhouse. Deficiencies may be mitigated by temporary re -numbering of the tees and greens by the golf course architect as may be required to suit the clubhouse location. 7. The. ranch house has been designated a Historical Building by action of the City's . Historical Commission. Thus, the State Historical Building Code (SHBC) will apply. 8. The City had the ranch house tested for hazardous materials as a prelude to this study. No hazardous materials were detected. The existing facility was found to be free of asbestos. 9. If feasible, the RDA desires to adapt the ranch house building in the future for reuse as a small conference center or special events facility after its use as a temporary golf clubhouse. r+ r 40 FIELD REPORT. ANALYSIS & ALTERNATIVES I. MEANS & METHODS of STUDY • Multiple visits to the ranch house: (4) by Architect, (3) by Structural Engineer, (2) each by Electrical & Mechanical Engineers. Visual inspections and digital photo survey of building. • Sketched and tape -measured the building (interior and exterior) in order to provide as -built drawings of ranch house (no existing drawings could be located by RDA or City Building Department). • Prepared as -built CAD drawings of floor plan and elevations based on findings. • Reviewed applicable codes and regulations (including California Building Code, State Historical Building Code, City Ordinance Chapter 8:12 ("Earthquake Hazard Reduction in Existing Buildings"), County of Riverside Department of Environmental Health (D.E.H.) regulations for food facilities, ADA regulations, etc.). • Multiple phone conversations with Mr. David Day, County D.E.H., regarding minimum requirements for food facilities. • Courtesy inspection of ranch house by Mr. Tom Hartung (head of City Building Department) with each of the consultants. . • Non-destructive testing (x-rays/sonogram) of ranch house structure by Earth Systems, testing agency. • Reviewed topographic drawings of the ranch house site provided by the Civil Engineer (The Keith Companies). II. GENERAL CODE COMMENTS 1. Initial observations revealed numerous conditions that do not meet regular code requirements for new construction, with regard to both ADA and structural design factors. While this is an existing building and there are different requirements (often less stringent) for remodeling existing buildings where the use remains unchanged, there would normally remain many difficult issues to contend with since in this case there is a proposed change .in use from residential to commercial. In many cases it is not permitted to change the use of an existing building if it conflicts with regular code requirements for new construction. However, since the ranch house is a qualified Historical Building, a different set of rules apply. Namely, the State Historical Building Code. The SHBC serves to encourage the adaptive reuse of qualified historical 'structures, and facilitates this by adopting regulations which are much more flexible than the regular code requirements. In essence, many objective, narrowly defined regulations otherwise required by the r .r. -41 regular code become discretionary —subject to the decision of the local building official. Life safety is not compromised, but reasonably equivalent --alternatives to the regular code -may be accepted by the enforcing agencies: The SHBC makes this clear several times in the code, and states, "These regulations are not intended to preclude the use of any proposed alternative or method of design or construction not specifically prescribed or otherwise allowed by these regulations. " The good news is obvious: flexible solutions and cost-effective preservation. However, the challenge is equally obvious: decisions on many of the solutions become subjective and their eventual acceptance by enforcing agencies may be difficult to predict in the early stages of design —let alone during the course of a feasibility study. Close cooperation with the City's Building Department, then, will remain essential to the design process from start to finish. 2. The caveat to the exceptional nature of the SHBC is that there exists a City code (Title 8) related to the structural. integrity of existing buildings which supercedes some of the subjective aspects of the SHBC. Chapter 8.12, "Earthquake Hazard Reduction in Existing Buildings", reinstates various objective procedures and standards for ensuring the structural integrity of certain buildings constructed prior to the adoption of earthquake design requirements. Buildings which . are identified to have masonry bearing walls with insufficient reinforcing must be strengthened to meet certain requirements. If it is not feasible to do so, the structure cannot be occupied and must be demolished, historical building or not. The following statements summarize the more significant observations and findings made in the field during the course of this study. Where feasibility issues arise, an analysis is provided and alternatives are proposed. M. SITE ACCESSIBILITY Figure 3 4 5. 1. There is an existing entrance road and small parking lot to the east side of the ranch house (see figure 3 & 4,). Since the RDA is developing all of the surrounding property as part of SilverRock Ranch, it is assumed that enough land will be made available to improve the road and expand the parking lot to suit program and regulatory requirements for a golf clubhouse or small 42 2. conference/special events facility. The site designers must coordinate driveway designs to suit fire and emergency equipment access as required by the County Fire Marshal. Due to the abundance of undeveloped land, it appears this would not be problematical. The topography of the existing entry road and parking lot is generally flat. However, the ranch house . floor is approximately ten feet above the existing parking lot (see figure 5). Present pedestrian access from the parking lot to the ranch house is by way of stairways (see figure 6). There is no ramp or other wheelchair access that complies with ADA requirements.- Rerouting a new entry road and parking lot on the west side of the site would cause considerable disturbance to the land and substantial cost. It would not be cost effective to abandon the present entry road and east side access. Another option is to provide an accessible route extending from the existing entry road and parking clockwise around the rock outcroppings (in a southerly direction towards the mountain), then up the more gentle slope back towards the ranch house from south to north. However, this route would be in excess of 300 feet from the nearest possible parking and is deemed unsuitable from an ADA standpoint. Figure 6. 3. One solution to provide ADA-compliant accessibility from parking to the ranch house is to design and construct various site improvements more or less at the level of the ranch house immediately east of it, which would include a new vehicular entry drive/turn-off from the main driveway which would ramp up to a drop-off area, and handicapped parking spaces. This would require a substantial area of fill, retaining walls, relocation of trees, sidewalks, etc. Although the details of design must be worked out during schematic design, it is safe to say that a feasible solution to site accessibility can be created in this area. IV. ARCHITECTURAL & STRUCTURAL 1. Although no records have yet been found which conclusively date the age of the ranch house, by visual inspection of its structure it is estimated to be in the range of forty years old. 2. , The ranch house has been vacant for some time, and the evidence of abandonment .is obvious (extensive cobwebs, dirt and dust; windows and sliding glass doors i'6j1 43 difficult to open). But generally the building is in reasonably good condition inside and out, with exceptions noted below. 3. The gross interior area of the ranch house is approximately 2,650 square feet. Additionally, the exterior roof -covered porches and walkways total approximately 2,480 square feet. 4. The ranch house is one story, constructed of reinforced slumpstone masonry bearing walls and piers (walls approximately 8" thick) (see figure 7), wood posts and beams (figure 8), exposed wood roof rafters (3"x 9") 4-feet on center bearing on a ridge beam and the slumpstone walls, and wood decking between the rafters and roof tiles (figures 9 & 10). Most of the beams appear to be glu-lams wrapped in Ix finish lumber. Two of the interior walls in the short direction (north to south) are masonry shear walls which are required for lateral support and should not be removed, while nearly all of the other interior walls appear to be . non - bearing wood stud walls which could be removed for remodeling if required. There is at least one large post below the . ridge beam near to the center of the building. Figure 7. 8. 9. J`► Fj 4 44 5. The floor is carpet over 12" square saltillo tile bonded to a concrete slab on grade. There is no basement. 6. Windows are single -pane in wood and metal frames and sashes. Many of the windows are difficult to open from age and neglect (see figure 11). Since insulated glass is highly desirable for both energy conservation and to reduce operating costs, replacement windows should be considered after evaluating costs. Window replacement with a high quality stained wood window system and dual -pane insulated glass may be in the range of $25,000 to $35,000. 7. The roofing material is two-piece "mission" style clay the with a mortar boost (see figure 8 & 12). The condition of the roofing tiles appears generally good, with the exception of several areas where tiles are missing or broken and require replacement. Tiles should be replaced in like kind, and, according to Mr. Hartung, there is a possibility that similar tiles may be salvaged from another building on the ranch property. There. is no evidence of water leakage through the roof. Figure 11. Figure 12. 8. In order to detect the extent of masonry wall reinforcing, a testing agency, Earth Systems, was engaged to provide non-destructive testing. As a result, it was confirmed that the vertical reinforcing in all masonry walls are within � code requirements. The horizontal reinforcing in all masonry walls are within code requirements, except as noted below. The jamb steel in walls are within code requirements except as noted below. The southeast wall labeled W-5 is overstressed by 10% but shows no distress and should be considered within allowable tolerances. The following are areas of structural damage or distress that must be addressed: 45 Figure 13. a. The north -south masonry shear wall between the Lounge and Kitchen (see figure 13, (labeled s. W4 on Earth Systems' plan) should be removed and replaced from the north end to the double door at the south end (the pier south of the door can remain). It is required for structural integrity yet it shows signs of distress. Openings without lintels were created in the masonry wall for ductwork --presumably during a previous remodel —and these openings undermine the wall. Its horizontal reinforcing is overstressed by 20%, and jamb steel is overstressed by 30%. Stress cracks are evident, with possible failure at the door header/jamb. The wall may eventually collapse if not rebuilt. This wall should be removed and replaced and rebuilt on the existing footings if they exist. b. The vertical reinforcing and horizontal ties in the nine front veranda and two entry pilasters comply with structural code requirements. However the pilaster at the northwest corner has no horizontal ties for the first 4'-0" of height and is cracked and distressed (see figure 14). This pilaster should be removed and replaced and rebuilt on the existing footings if they exist. c. Exterior wood posts show considerable rot from water damage (likely from errant sprinkler spray) and should be replaced --(see figure 15). Structural steel tubes and/or reinforced masonry piers may be required for replacement. If steel tubes are required, they may be boxed -out with wood to achieve the original look. Figure 14. Figure 15. C,64 d. The exterior patio/walkway on the north side and some areas of the interior floor are wavy —a sign of uneven settlement. This may be due .to over -watering and saturation of the soil (which was evident in field). Although this does not appear to be a major problem, over -watering should be corrected, and damaged slab areas should be replaced. 9. Determining existing footings would have required destructive testing and was not performed at this time. It would be illogical to assume footings are missing. Footing sizes can be determined later, at which time a determination can be made if size and reinforcing are sufficient. If deficient, it is feasible to increase and/or reinforce footings as. may be required. 10. For some time after the Ahmanson family sold the ranch and just prior -to being abandoned, the ranch house had been put to commercial use as a Dave Pelz Golf School. Despite such commercial use, the ranch house was not remodeled to be ADA compliant (see figures 16 & 17). With regard to the regular code (excluding exceptions allowed by the SHBQ, there are numerous conditions that do not comply with ADA requirements. These conditions include the doors (too narrow; thresholds too high; non -compliant hardware), countertops (too high; no clearance below for wheelchairs), and Figure 16, 17. 11. Most significantly, none of the (4) existing restrooms are ADA compliant, nor could any of them be retrofitted for regular ADA compliance without destruction and replacement of walls and fixtures. Among many other requirements, restrooms for the disabled must provide a five -feet diameter clear space for maneuvering a wheelchair within each room. The space available is not even close to five feet in any of the restrooms. 47 V. FOOD SERVICE L Food service to the public is governed by the RiversideCounty Department of Environmental Health (D.E.H.). Most of their regulations regarding matters of public food service supersede local codes and historical building considerations. The fact that the existing or prior use was not a licensed commercial food service means that reuse must follow requirements for new construction. Only matters of building and life safety (including restroom requirements) are left to local authorities. . 2. Figure .18. Determining the minimum requirements of D.E.H. starts with their analysis of the desired menu. Most all cooking on premises " (including grilling a hamburger) requires a full-blown commercial kitchen. Such a kitchen has minimum requirements for cooking =� equipment (grease hood/exhaust), dry -storage area, sinks, _ Finishes, etc. etc. In summary, it is', safe to say that for a new. building, it is difficult to do a full-blown commercial kitchen in leis than 1000 square feet, and 1 nearly impossible for a remodel where existing walls and other p meters already limit design flexibi ity (see figure 18). Without a substantial addition to the ranch house (approximately 500 square . feet minimum?); and without adding an exhaust hood and exhaust chimney, underground grease interceptor, and substantial investment in other commercial -grade kitchen equipment, a full-blown kitchen with cooking on promises is not feasible, especially because it would not be required or regularly used in a future conference center. If the RDA is interested in the possible use of the ranch house as a future restaurant, then the option of a full-blown kitchen addition should be reconsidered. Short of a full commercial kitchen, the D.E.H. will allow limited snack bar menu items served to the public if the proper facilities are constructed. Regardless, a 3- compartment sink is required, along with 100 square feet minimum of dry storage area opening into the kitchen, janitor closet, specific finishes, commercial -type kitchen equipment (NSF grade), and many other specific requirements. 48 4. Broadly speaking, for a snack bar kitchen, the menu will be limited to 100% pre- packaged foods, tapped beer, hot dogs, bags of chips, and similar. It would not include mixed drinks or other bar service. 5. Because of its historical nature, the building may be relieved of specific restroom requirements (i.e. separate facilities for men and women) if the local building official -so approves. VI. MECHANICAL & PLUMBING 1. The ranch house is supplied with water from a well system serving other properties in the area. The point of entry to the building is unclear. As part of the site development, City water will be made available to the building in the near future. 2. The existing building discharges its sewer to a septic system, location unknown. As part of the site development, City sewer will be made available to the building in the near future. 3. The plumbing system is problematical. Restrooms are not close to being ADA compliant, and both hot and cold water lines appear to be buried in the slab. It will probably be necessary to provide at least one ADA compliant bathroom for each of the. sexes, which could be accomplished by remodeling the existing toilets, or by creating new toilets. It will be necessary to locate water supply and sanitary waste points' of entry to the. building to properly connect them to the proposed new utilities. Figure 19. 4. The HVAC system consists of two (2) 5-ton nominal capacity split - system heat pumps, one serving the Lounge and Kitchen at the west end of the building, the other serving the remainder of, the building. Neither of the units has an outside air connection, all fresh air being introduced solely by infiltration, which will be considerable, in view of the type of windows installed and general construction. The windows are single pane (not insulated). There is very little roof insulation since most of the ceilings are vaulted and the structure is exposed (very little attic or concealed spaces for insulation). By their nature the masonry walls do not provide substantial insulation capability. C� 6'7 49 . 5. Buildings covered by the SHBC are exempted from compliance with the State's energy conservation standards (Title-24). Therefore, it appears the HVAC system - - will be adequate for the intended use. However, each of the units will need some modification, repair work, and control system replaceuient to make them fully. functional. 6. Although energy conservation standards are not required, every effort should be made to employ cost-effective means to improve energy conservation. 7. Should it be decided to make the building a permanent convention center, then windows would have to be upgraded, additional roof and wall insulation would need to be added, the HVAC system would need to be replaced, and the plumbing system completely revamped. VH. ELECTRICAL 1. Existing electrical distribution panel in proposed clubhouse building is in decent condition and could be reused. Relocation is possible if deemed necessary due to programmatic/design requirements. 2. Existing electrical service is 120/240V 3ph 4 wire with a high leg delta and a 87.5KVA transformer bank. This service is fed by an overhead pole line coming south off of the east -west electrical pole line parallel to Avenue 52, which is being removed. - The proposed clubhouse will be fed off of the electrical service being located at the site of the future permanent clubhouse. 3. Existing electrical distribution system appears to be mainly in conduit with some Romex and AC Cable. It is recommended that all of the existing branch circuit conductors be abandoned and pulled from existing conduit, and that the existing conduit be reused and new electrical conductors pulled to proposed new lighting and receptacle outlets. 4. The majority of the existing electrical outlets are 3-wire grounding type and could be reused with new cover plates added. 5. Existing lighting, interior and exterior, would be replaced. 6. Feeder circuit to pool and rear building would either be abandoned, or new underground trench with conduit and feeder conductors, pulled. 7. Communications outlets appear to be mostly pulled -in attic with vertical drops. to wall outlets. This would all be abandoned and new cable pulled in existing vertical conduit, in exterior walls and new vertical conduits pulled for communications outlets in interior walls. 8. The Lounge in the west end of the building may require a trough cut in the slab to run to floor outlets. 9.. It is recommended to provide one or two new electrical sub -panels. r, 6 50 10. In summary, it appears that the existing electrical could be abandoned in place, with the exception of the main distribution panel and conduits run in floor and walls. There may be some limitations to outlet locations in existing exterior walls, but could probably make up for this by placing new outlets in interior walls. In terms of cost, the pulling of electrical conductors from existing conduit and removing lighting might offset the cost savings of reusing existing electrical conduit. 51 SUMMARY 1. There are four major issues with respect to the feasibility of reusing the ranch house for commercial purposes. They are: providing ADA-compliant site access to the ranch house, the need for structural upgrades to the building in order to eliminate life -safety concerns, the need to provide ADA-compliant restroom facilities —and the corresponding impact on the historical features of the existing restrooms, and finally, meeting the minimum requirements for food facilities (as determined by the County D.E.H.) in order to provide a suitable snack bar. There are many other items which need to be addressed for any remodel, but these four issues present the most significant challenges. 2. The existing site is not ADA-compliant with regard to accessibility for the disabled, especially those in wheelchairs. However, it is feasible to design and construct various site improvements which would provide ADA-compliant accessibility.. One option is to provide a. new, raised vehicular entry drive and drop-off area due east of the building, elevated closer to the level of the ranch house, with accessibility to handicapped parking spaces in close proximity. This would require raising the topography with a substantial area of fill, possible construction of retaining walls, relocating trees, and creative solutions to the design of the east elevation so as to become a primary approach to the ranch house, since it is now a secondary and somewhat featureless side elevation. 3. There are several areas of structural distress in the ranch house which will require rebuilding and/or retrofitting in order to eliminate life -safety concerns. They include: the masonry shear wall between the Lounge and Kitchen, the masonry pier in the northwest corner of the building, and the wood posts which are rotting ' from water damage. All of these must be removed and rebuilt in order to reestablish structural integrity. Also, there is some slab settlement which appears to have- occurred from over -watering. This must be corrected, and the affected areas (north side exterior patio) should be rebuilt. 4. None of the (4) existing restrooms are close to being ADA-compliant, nor can they be made compliant without substantial demolition (tearing out doors and walls, removing and replacing water closets and lavatories, etc.). This will result in the loss of extensive mosaic ceramic tile, which is an architectural and historical feature of the building. New restrooms may be constructed to satisfy ADA regulations and code requirements for a future conference center.. 5. A full-blown commercial kitchen with an unlimited menu is not feasible without an extensive addition, and substantial investment in commercial kitchen equipment, including grease hood and exhaust chimney, grease interceptor, etc. A limited menu snack bar is feasible, but will result in the removal of kitchen cabinetry and countertops, some of which are finished with mosaic ceramic tile. n70 52 CONCLUSION The conclusion of this study is that it is feasible to adapt and reuse the existing ranch house as a temporary golf clubhouse and future conference facility or special events facility thereafter. Although there are numerous site and building improvements which will be required in order to make reuse possible, none of the deficiencies or difficulties identified in this study are deemed to be "deal -breakers" in terms of adaptive reuse. Programmatic objectives make it likely that some significant architectural features will be lost in the adaptive reuse process— namely, existing restrooms, and their mosaic the finishes. (i 71 53 Redevelopment Agency Minutes 3 January 6, 2004 MOTION - It was moved by B embei nominations and el and Member Perlo Calendar Y 04. Motion carried unanimo Per ' ABSENT. ATTACHMENT 3 ----� 2. CONSIDERATION OF REUSE OF THE AHMANSON RANCH HOUSE AT SILVERROCK RANCH. Assistant Executive Director Weiss presented the staff report. Jack Gallagher, of The Dahlin Group, reviewed the existing site plan, floor plan, and elevations. In response to Board Member Sniff, Mr. Gallagher stated the Ahmanson ranch house was built in 1961. An unidentified member of the audience indicated the house was built by a company named Langton & Wilson. In response to Board Member Osborne, Mr. Gallagher stated the house is approximately 2,650 square feet. He then proceeded to review Options A, B, and C. Board Member Adolph suggested eliminating Option A because it doesn't have sufficient restroom area. Agency concurred. Board Member Adolph questioned why the restrooms in the office area were moved because that location is more accessible than having to go through the utility room. Mr. Gallagher indicated the facilities off of the utility room provide restrooms for kitchen employees. Board Member Adolph suggested abutting the new restrooms to the existing building to reduce costs. Mr. Gallagher pointed out separating the two buildings provides a vestibule area, and that connecting the two buildings would not save money because of the seismic issues involved. Board Member Adolph noted eliminating the roof over a vestibule area would save money, as would utilizing the existing plumbing. 072 54 Redevelopment Agency Minutes 4 January 6, 2004 Mr. Gallagher stated it's less expensive to bring in new utilities than it would be to use the existing plumbing under the slab. He added it's his understanding that the new restrooms would be permanent and used for a future conference center. He indicated he will come back with the rationale as to why a separate restroom building is more cost effective. Board Member Adolph voiced concern about the costs, and noted future use of the ranch house has not been determined. He noted the separate building would also block the view of surrounding elevations. Mr. Gallagher stated handicap accessibility, was one of the main concerns, and the restrooms inside the building would not be sufficient to meet that need in a future conference center. He then reviewed the handicap -accessible entry and parking area. He feels access to the building is the most challenging aspect of the project, and will have to be creative in directing people to the building. Board Member Adolph noted the ranch house is isolated from the first tee and the 18th hole, and asked where golf carts would be parked. Mr. Weiss stated Palmer Design Group has suggested . different possibilities for temporary routing changes until the permanent clubhouse is built. Under the current routing, he estimated the clubhouse is 400-500 yards from the first tee. He added that staff feels the additional restrooms would provide more flexibility in both the temporary and future uses of the building. By locating the restrooms on the north side of the building, they would be accessible not only to the clubhouse but also to golfers at the 8" hole. It would also require less grading at the entrance for handicap access. Staff has asked GMA to look at the entire layout for the temporary clubhouse to include parking, as well as handicap issues. He indicated the special.use areas are being considered for golf cart parking. The golf carts can be parked close to the temporary clubhouse or in a staging area that is less obtrusive aesthetically. He noted an alternative to using the ranch house would be to utilize a modular building at a lower cost. Board Member Adolph voiced concern about how everything will be tied together, and commented on the need to consider the overall costs since this is only a temporary clubhouse. In. response to Board Member Sniff, Mr. Gallagher confirmed the electricity in the ranch house will be brought up to Code. `i 7 3 55 Redevelopment Agency Minutes 5- January 6, 2004 Development Coordinato will be extended from connection options. r Roy Stephenson stated a natural gas line Avenue 52, and he reviewed two sewer Mr. Gallagher noted historical buildings are not required to be brought up to current Code but it has been determined that one of the walls needs replacing. Board Member Sniff asked how long the building has been vacant, and Chairperson Henderson noted it was recently used by the Pelz Golf School. Mr. Gallagher noted future use of the building should be considered when looking at the costs. In response to Board Member Osborne, Mr. Weiss stated the building is expected to be used as a temporary clubhouse for three years, depending on use of the golf course and how soon the second course will be constructed. He indicated funding for a permanent clubhouse has been identified in Phase 1 B, as well as rehabilitation of this building. He stated the $1.2 million includes site preparation costs but not costs to create a future conference center. He noted the City has other funds that can be allocated toward a community center as part of a permanent clubhouse. • Board Member Osborne agreed $1.2 million is a lot of money for a temporary clubhouse, and wants to make sure it's spent cautiously. Mr. Weiss reviewed how the temporary clubhouse and potential golf cart storage areas fit into the comprehensive site plan, and confirmed the new restrooms would be permanent. Board Member Adolph asked if a parking structure for the golf carts is part of the-$1.2 million cost, to which Mr. Gallagher responded, "No." In response to Board Member Sniff, Mr. Gallagher stated a schematic design will be developed once an option is selected. In response to Chairperson Henderson, Mr. Gallagher stated the ability to use the kitchen for catering services will be taken into consideration as the process moves forward. Chairperson Henderson stated she feels the ranch house has historical value and supports retaining it. She understands the concerns about A Redevelopment Agency Minutes 6 January 6, 2004 the costs and feels that should be anticipated as much as possible. She spoke in support of Option C. Board Member Sniff concurred. In response to Board Member Adolph, Mr. Gallagher indicated there may be some modifications as the process moves forward, such as moving the restroom building toward the lounge. Board Member Adolph stated the restrooms seem to be the right size for the clubhouse uses but are larger than necessary for a halfway. house. MOTION - It was moved by Board Members Sniff/Osborne to approve the Ahmanson Ranch House as a temporary clubhouse and select Option C as the preferred floor plan layout. Board Member Osborne commented on the need to -keep the costs down as much as possible. Mr. Gallagher stated the rehabilitation costs for the ranch house will be. approximately $400,000 to $650,000, and the remainder of the $1.2 million is for the new restrooms and site improvements. Board Member Adolph stated he supports using the ranch house but feels the restroom building is too large. Motion carried unanimously with Board Member Perkins ABSENT. STUDY SESSION 1. DISCUSSION OF A LOGO FOR SILVERR K RANCH. Assistant Executive Director Wei presented the staff report. Steven Williams, of Mc ry Inc., reviewed potential logos for the SilverRock Ranch proje Board Member "orne voiced concern that the mission style logo on Page 21 may of be understood by people in other areas. He feels the rock logo C IgnPage 19 is somewhat plain but the similar logo presented as a hol marker is too rough: 91 !' 75 57 ATTACHMENT 4 Ahmanson Ranch House As Temporary Facility Historical Value Setting — Overall Beauty La Quinta Residents Recognition Ahmanson Ranch House Jan 16, 2004 58 Rev. June 7, 2004 Modular Unit SRR Modular Unit As Temporary Facility Expandable Area For Hope Toumment Publicity, from Permanad Clubhouse Constrac&n 677 Jan 16, 2004 59 Rev. June 7, 2004 9 Ahmanson Ranch House As Temporary Facility T " Historical Value Setting — Overall Beauty Ahmanson Ranch House sim Weak Cart staging Area Rotation of Golf Holes — Nines Don't Return to Clubhouse Additional Distance to Driving Range Lack of Golf Visual Operational Control Up -Hill to Building Parking 7 Distance from Clubhouse & Additional Costs Improvement Costs (Structure) } Utility Costs (Main Road to Site) Money Spent on House, Accesses, Parking and Golf Cart Access May be Lost Costs Food & BeverageServiceLimited — Pre -made, Pre- packaged & Beer and Wine Liquor License Only c L 9 F k fi FPS€:{a , Customers' Memory of Experience F art i F +y 'f4 Limited Square Footage Locker Rooms — None ��r r Inadequate Facilities and Site for Marketing the Overall Project January 16, 2004 Modular Unit SRR Modular Unit As Temporary Facility Expandable Area For Hope Tournament 79 January 16, 2004 61 ATTACHMENT 5 Landmark Issues 7-12-04 Landmark has raised numerous issues over the past few months regarding the SilverRock Golf Resort Project. Staff understands that Landmark representatives have been critical of the following: • Selection process for Land Use Planner (Ernie Vossler letter, 7-1 1-03); • Policy for hiring Development Coordinator (Landmark opposed the restriction placed on the Coordinator prohibiting another compensated role in the project; Ernie Vossler, 7-1 1 -03)); • The Public Process (Ernie Vossler, 7-11-03; Johnny Pott, 5-20-03) • Land Use Plan (Andy Vossler alleges "terrible land planning" in verbal conversation with the Executive Director, 6-29-04; also, see Johnny Pott, 10-14-03); • Business Plan (Johnny Pott, 10-14-03); • Course Design (Andy Vossler conversation with Executive Director, 6- 29-04 and numerous staff meetings with Johnny Pott) : 0 8`h hole location (too close to the rock outcropping) o believes the City should have made more use of the mountains by playing to and from elevated mountain areas ... i.e., suggesting that the City could have used its influence to attain this advantage and questioning individual Board Member motives for not encroaching into the mountains; o Tamarisk trees (disagreed with the architect over saving a limited number of mature tamarisk trees adjacent to the fifth hole); o Grass selection (supported a variety which was originally accommodated by Palmer/City and then rejected by PGA representatives); o Playing over the canal (i.e., does not believe the design should have included holes that play over the canal); • Temporary Clubhouse (prefers going modular, Andy Vossler, Council Meeting, 7-6-04 et. al.) • ERA Pro Forma analysis (various budget meetings with Landmark) • Operating Budget (various budget meetings and Andy Vossler, 7-6-04) • Project Name/Logo (Ernie Vossler, 7-1 1-03 et. al.) • Opposes tunnel under Avenue 52 (Johnny Pott, meeting with Hladek et. al., 6-23-04) • Electrical configuration (Andy Vossler, various staff meetings) • Practice Facility Design (Johnny Pott, various staff meetings) • Proceeding with Permanent Clubhouse (Andy Vossler, 7-6-04) • Delaying construction of the 2"d golf course (Andy Vossler, 7-6-04) C, 8 0 62 Landmark October 14, 2003 Tv1r. Mark Weiss, Assistant Executive Director La Quinta Redevelopment Agency P.O. Box 1504 La Quinta, CA 92253 Dear Mark. I received your letter dated October 13, 2003, yesterday via fax. After reading your response to my October 3, 2003, letter to you, I am surprised that you really missed the point of my interest. I assumed after our visit on October P and after you read my letter, you would have been aware of my intentions. Mark, you need someone who will represent the City. You need someone who has been involved in development and golf construction and has the City's interest at heart. I would have given you help and relief. As time will tell, rookies and inexperience will be embarrassing for you and the City of La Quinta. The main reason for my persistence on being a part of your team is that I feel from my observations attending the RDA sessions and listening to the presentations of your consultants, that you are on the way to a financial disaster. The land use plan is questionable; forty acres are planned for parking at approximately $80,000 per acre ($3,200,000); the budget has gotten out of hand; your business plan is questionable-- $70M invested before the first green fee is collected or the first property closed! You are behind schedule on construction of the Palmer Course; anyone reviewing the Palmer plans would reconsider their selection: the 8`h green is drawn on the Ranch House, a 90- yard par 3. I am sure CVWD/IID issues are not resolved; you have taken away golf strategy with the golf spectator bleachers along the 16`h and 17`h tournament holes, but you plan to acquire additional property to play against the mountain on the 15`h. Where are you going to put the gallery on the 10`h? You have minimized your development acres with the alignment of the 41h hole; I'm referring to approximately two developable acres that could have a market value of approximately $500,000 along with any recurring income. You have added the cost of an additional bridge on the 151h. Before construction begins, the above are just a few areas of concern a citizen might pick-up on if they were to evaluate your progress in this most important project for the City of La Quinta. Sadly, I can only imagine the mass confusion and perplexity awaiting the project once constriction begins. Professional developers might even consider putting the project on hold until restrictions are eliminated or dismissed. 74-947 Highway ? 11 • Suire 200 Indian Wells, California 92210 Phone (760) 716-6688 • Fax (760) 776-0686 www.iandmarkgolf.com ri 8 63 I am sorry and disappointed that you and your team are unable to see the value of my participation in this monumental project. Sincerely, Johnny Pott cc: Chairperson Terry Henderson Don Adolph Lee Osborne Ron Perkins Stanley Sniff Tom Genovese, Executive Director r# g 2 64 Landmark Johnny Pott Senior Vice President La Quinta City Council and Redevelopment Agency May 20, 2003 Public Comment Statement: Johnny Pott Senior Vice President Landmark Golf Company RE: The Ranch Project Good Afternoon My name is Johnny Pott. My wife, Mary Rose, and I reside at 78-160 Calle Norte in Duna La Quinta. We have been residents of La Quinta for 18 years. My whole life has been in golf from my father being a golf professional to my collegiate golf years then playing the PGA Tour. From 1957 to 1972, 1 concentrated full time on playing the PGA Tour where I won 5 times and represented the United States on 3 consecutive Ryder Cup Teams. I competed in the same years as Arnold Palmer, Jack Nicklaus and Tom Weiskopf. After playing the great golf courses of the world and retiring from the PGA Tour, I started my second career with Ernie Vossler, Joe Walser and Landmark. I have had a major role in designing, constructing and opening approximately 40 golf courses and associated club facilities and master planned communities from California and Mexico to the East Coast. I was deeply involved with the development and construction process with all 3 Pete Dye courses at La Quinta Hotel and the first 5 courses at PGA West. In addition, I was equally involved with another 7 courses in the Palm Springs area including Landmark Golf Club, Mission Hills, The Hideaway and The Plantation. I am also the co -designer of record with Wade Cable for The Golf Club of California in Fallbrook. I have coordinated the golf course construction process with some of the best names in golf architecture: Jack Nicklaus, Arnold Palmer, Pete Dye, Tom Weiskopf and Lee Schmidt & Brian Curley, who each gained approximately 10 years of their experiences while working for Landmark and Ernie, Joe and me. It is from my decades of experience and on behalf of Landmark Golf Company that I speak to you today. After several months of observing the process for the development of the City of La Quinta's golf project at The Ranch, I thank you for allowing me to make a few comments for the record: Developing a mixed use golf facility is no small task. There is vast experience and talent right here in this desert to assist you. I do not believe the Town Hall Meeting concept can make all of the decisions that must be made to take this project from a conceptual land use plan to reality and success. Therefore I suggest 74-947 Highway 1 1 1 • Suite 200 Indian Wells, California 92210 8 3 Phone (760) 776-6688 • Fax (760) 776-6686 www.landmarkgolf.com 65 that you hire and use the most experienced talent available and hire that expertise now before bringing the golf course architect on board. The Development Coordinator and Construction Manager should not be two separate entities. These two roles require continuity of vision and total concentration and focus on the outcome from the complexities of water and irrigation lines, maintenance facilities and cart trail systems, to the ball washers and signage schemes throughout the project. I want to say publicly that we at Landmark Golf Company are available to you and would like to be involved in making the City of La Quinta's development be the best it can be. I am glad to answer whatever questions you may have. ny Pott 66 July 11, 2003 Landmark Mayor Don Adolph City of La Quinta P.O. Box 1504 La Quinta, CA 92253 Re: SilverRock Ranch Dear Mayor Adolph, Landmark Golf Company ("LGC") has many deep roots in La Quinta. Five of its principals live in the City of La Quinta ("City".) We are appreciative of the fact that when we requested, Council Members and City Staff Members have met with us to discuss the Redevelopment Agency, its progress and our desire to be involved. We also have been allowed to speak at various meetings before the City Council and the Redevelopment Agency Board Members. Our reputation, expertise and knowledge of golf course communities development speak volumes, and we continually let it be known that we are here locally and available to you as you proceed through the development of SilverRock Ranch. At this point, we feel we should state in writing that the City's process and direction with the Redevelopment Agency ("RDA") and where/how things are progressing disturbs us. A world -class price was paid for the land, the City wants to develop a world -class destination resort; and, in our opinion, a world -class process is not being untaken. SilverRock Ranch may well be the largest economic endeavor the City will ever undertake other than the actual collection of two -to -four decades of La Quinta property owners' Advalcrem Tax increments for the RDA. It seems the City is intentionally working within a process that makes it difficult for those who are truly interested to figure out what is actually transpiring. It appears issues are being hidden in complicated procedures and wording; public agendas require analyzing and comparing two agendas with closed sessions on each agenda; it is difficult, even with telephone calls to the City, to determine what specific subjects are scheduled and at what time they may occur during a day or night Council/RDA Meeting that could span as many as 10 hours in the Council Chambers. Today, The Desert Sun reported on the State of the City presentation by the Mayor, and not one mention was made of SilverRock Ranch, Arnold Palmer Design or the RDA project. With land costs ($42,000,000) nearly two times the City's annual budget of $22 million for 2003-04, we would have hoped to read that SilverRock Ranch is the primary focus of the City. Isn't local government supposed to be for the people of the jurisdiction; therefore, administered and reported so that the citizens can understand the business being transacted on their behalf? 74-947 Highway 1 1 1 • Suite 200 Indian Wells, California 92210 Phone (760) 776-6688 Fax (760) 776-6686 vvww.landmarkgolf.com � � p 5 67 LGC is attempting to maintain a low profile and an open forthrightness in dealing with the RDA, City Council and the RDA process, and we would expect the same in return. We would like for this expensive and massive project to be the best that it can be. The City has agendas, meetings, and procedures positioned so that most people cannot follow or participate. It is not clear at times if the City representatives can follow its own process as it is unfolding. Quite frankly, it is high time to treat the RDA project as the important investment it is and to put this valuable Resort Project and its process completely out in the open. Reportedly, there are a few City Staffmembers who are responsible for and on top of this massive project. Although they are fine people and highly qualified to manage city government and related policies; let's face it, they are not experienced -in real estate development. City Staff and City Consultants seem to be controlling the RDA process whether the City Council knows of this control or not. We were told directly by a City Consultant that in the RFP process for the Master Plan he told "Staff and the Selection Committee not to select a local firm; if something goes wrong, the reputation and image of a desert company could be damaged and local good will would be injured." Thus, the six finalists who were reportedly interviewed were all from outside the desert area. If the somewhat closed selection process had not occurred and Landmark Golf Company's proposal had been opened, you would have seen that LGC's proposal price was based on work and staff talent with the exception of Joe Walser and myself. Joe's time and experience and mine would have been at no charge as a contribution to the City we love and further proof of our commitment all the way through this project. City Staff and representatives have communicated to us that they must follow strict and rigid guidelines in their procedures for the RFP process when hiring companies and individuals. Accordingly, Staff made the decision to restrict the Development Coordinator's ("DC") Request for Proposal to a narrowly defined scope of work and further stated that the successful applicant will not perform any additional work or tasks on this RDA project for compensation including the operating and service agreements. As a result of that limitation, Landmark Golf Company declined in writing to submit a proposal for the DC role. To a degree, narrow and restrictive RFPs may cause some qualified applicants to back way from the project. However, it seems that once the RFP is awarded, creativity is allowed into the contract phase. For example, the first consulting agreements, as we understand them, have all created unusual circumstances: 1) GMA's extension of time and additional tasks after we were told by Staff that there would not be extensions and expansions 2) Palmer Design's six months agreement when it is obvious it will take longer and 3) Between the RFP and the signing of the Development Coordinator's contract, the DC was awarded a contract that expanded the scope of work. Consequently, it has already been discussed by Staff that it is most likely the six-month contract term will be extended, through no fault of the DC, in order for the DC to carry out the RFPs intended tasks. Needless to say, the changing parameters and procedures are frustrating to us. In early 1974, Joe Walser and I, through our private company Unique Golf Concepts, Inc., made our first business dollar investment in La Quinta, an unincorporated area. There was very little in this underdeveloped area to "brag" about. La Quinta at that time, nearly 30 years ago, consisted of good-hearted progressive residents along with the little Desert Club, 18 holes of private golf at La Quinta Country Club, the run-down 76-room La Quinta Hotel that was closed for five months of the year, inconsistent residential development, practically no commercial development and a lot of opportunity. After Unique Golf Concepts merged with Landmark Land Company late in 1974, we set our goal to build world-renowned golf resort communities in La Quinta. Today, do we need to quote what the Robb Report says about La Quinta in "2003?" You may wonder why I am writing this lengthy letter. I am writing to restate that we love La Quinta and want to be involved with your development. You have many talents at your disposal in La Quinta, and we encourage you, as the decision makers for the City, to use these local experienced people. It is also worth restating that worldwide, Landmark representatives have built over 780 golf holes, 4 hotels, 5 resorts and planned/developed over 20,000 acres of mixed -use residential properties. In La Quinta alone we owned, operated, controlled and planned 5,860 acres which are within the City of La Quinta since the City's Incorporation and additional annexations. These properties alone created the opportunity for 15 top quality golf courses, 11,500 residential units, 1650 hotel rooms and 195 acres of retail/commercial properties. It's baffling why, to date, Landmark Golf Company has not received a single phone call originated by a City Council Member, City Staffinember or Consultant to the RDA inquiring of Landmark about anything to do with the future of golf in the City of La Quinta, golf in general or the Redevelopment Agency which we helped establish and fund. Vosslers, Walsers and Potts are today and have been actively involved in the economic growth of La Quinta as we know it today: building critical and highly engineered flood control works that were necessary to protect. the Cove and essential to future development, arranging the federal funding and building the bridge on Eisenhower Drive between 50`h Ave. and Tampico, building championship golf and tennis, recreating La Quinta Hotel, supporting the City of La Quinta beginning with hosting the Incorporation Party at La Quinta Hotel, forming the Redevelopment Agency, creating PGA West, hosting nationally and internationally televised golf and tennis events, co-founding La Quinta Arts Foundation, supporting St. Francis Catholic Church, sponsoring countless community events at La Quinta Hotel, presidency of La Quinta Chamber of Commerce and service on two City Commissions and multiple Boards of Directors including La Quinta's Arts Foundation, Arts Festivals, Historical Society and Boys & Girls Club. We have been asked numerous times by many business owners, our friends in the media and local residents of La Quinta why Landmark Golf Company is not involved in the City's proposed golf project in La Quinta? I am sure you can imagine how impossible this is to explain. At the risk of further neglect, exclusion or criticism by the City, we are putting our position before you in writing. We will continue to attend public meetings and share our experiences in an effort to help the project be the best it can be. A Redevelopment Agency may be the vehicle for constructing buildings, roads, bridges and landscaping, but from what we have seen and experienced to date in La Quinta, the RDA needs key experienced individuals and firms to produce the quality project you say you desire. So far, it would be difficult for us to say we are accepting of or impressed with the process, progress or accomplishments. 087 69 We still question the name SilverRock Ranch, and so do many others in the community as we hear it. We have concerns for that name from a marketing and retail perspective. Certainly, the project naming/acceptance process is one area where we can say "been there, done that" and truly learned from it. The irony of this situation is many developers from around the world continually seek us out for our knowledge, experience, talent and ability to bring a project to fruition and prominence. From far and wide, they hear about Landmark and research our development successes in the City of La Quinta. And, here we sit in our your own backyard, only to be uninvolved in the City's project to date. It makes one wonder... Again, we are available to meet with you to discuss any and all aspects of SilverRock Ranch. We know your objective is to create a top-quality resort with at least one golf course that equals or surpasses any in our wonderful Desert. We do not believe you can accomplish this without highly experienced people on your team. Time marches on; and as it does, your project gets further complicated, more difficult and expensive to make adjustments. We respectively request a written reply to this letter by the end of this month. Thank you for your consideration of our comments, and I look forward to hearing from you. Sincerely, 4 U041( Ernie Vossler President cc: Council Members City Manager • FIe SilverRock Resort Rya ss*�l Temporary Clubhouse Modular and Cart Facility Lease Modulars Lease Cart Facility Irrigation & Landscaping Lump Sum (LS) -75% permanent Patio, Entry & Trails LS Sewer LS Water LS Trailer set-up Kitchen (hood & fire system) Kitchen (stove,over, equipment) Furniture Cart Facility Parking Lot 200 spaces @ 350 sq. ft. ea. X $4.00= Part of this improvement is permanent parking lot. $5,800.00 per month $3,000.00 per month $8,800.00 1 per month $80,000.00 $40,000.00 $10,000.00 $5,000.00 $30,000.00 $40,000.00 $10, 000.00 $40,000.00 $20,000.00 $275,000.00 1 $280, 000.00 07/14/2004