2004 09 22 RDARedevelopment 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
SPECIAL MEETING
Wednesday September 22, 2004 - 2:00 P.M.
Beginning Resolution No. RA 2004-14
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 649-303-0324). PROPERTY OWNER/NEGOTIATOR: CHRIS
CLARKE.
Redevelopment Agency Agenda
September 22,U'PT
t �'
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 AT THE MILES AVENUE AND WASHINGTON STREET
INTERSECTION AND NORTH OF THE WHITEWATER CHANNEL (APN'S 604-040-
012/13). PROPERTY OWNER/NEGOTIATOR: RICHARD OLIPHANT, CP
DEVELOPMENT LA QUINTA, LLC.
3. CONFERENCE WITH CITY'S LEGAL COUNSEL REGARDING PENDING LITIGATION,
LA QUINTA REDEVELOPMENT AGENCY V. KSL DESERT RESORTS, INC. ET.AL.,
AND RIVERSIDE SUPERIOR COURT, INDIO BRANCH CASE NO. INC 044676,
RAMON GARCIA MARTINEZ, ET AL V. CITY OF. LA QUINTA, ET AL, UNITED
STATES DISTRICT COURT, CENTRAL DISTRICT CASE NO. CV 04-06373 DT
(RZx), PURSUANT TO GOVERNMENT CODE SECTION 54956.9(a).
4. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR, MARK WEISS,
PURSUANT TO GOVERNMENT CODE SECTION 54956.8 CONCERNING POTENTIAL
TERMS AND CONDITIONS OF ACQUISITION AND/OR DISPOSITION OF A PORTION
OF 525 t ACRES OF REAL PROPERTY LOCATED AT THE SOUTHWEST CORNER
OF AVENUE 52 AND JEFFERSON STREET. PROPERTY OWNER/NEGOTIATOR:
ROBERT SCHUMACHER.
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 SEPTEMBER 7, 2004.
Redevelopment Agency Agenda 2 September 22, 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 SEPTEMBER 22, 2004.
2. TRANSMITTAL OF TREASURER'S REPORT DATED JULY 31, 2004.
3. TRANSMITTAL OF REVENUES AND EXPENDITURES REPORT DATED JULY 31, 2004.
BUSINESS SESSION
1. CONSIDERATION OF MONUMENT SIGNAGE FOR SilverRock RESORT.
A. MINUTE ORDER ACTION
2. CONSIDERATION OF FIRST AMENDMENT TO THE DISPOSITION AND
DEVELOPMENT AGREEMENT BETWEEN THE LA QUINTA REDEVELOPMENT
AGENCY AND CENTERPOINT LLC, FOR THE DEVELOPMENT OF THE AGENCY'S
MILES AVENUE AND WASHINGTON STREET PROPERTY.
A. MINUTE ORDER ACTION
3. CONSIDERATION OF AN APPROPRIATION OF $1,300,000 FROM THE 2004 LOW -
MOD BOND ISSUE TO UNDERWRITE THE REMAINING RELOCATION COSTS
ASSOCIATED WITH THE VISTA DUNES MOBILE HOME PARK
A. MINUTE ORDER ACTION
4. CONSIDERATION OF A REQUEST BY BUILDING HORIZONS TO ENTER INTO AN
AFFORDABLE HOUSING AGREEMENT FOR THE 11 T" YEAR FUNDING BY AND
BETWEEN THE LA QUINTA REDEVELOPMENT AGENCY AND BUILDING HORIZONS
AND THE APPROPRIATION OF AN ADDITIONAL $40,000.
A. MINUTE ORDER ACTION
STUDY SESSION - NONE
CHAIR AND BOARD MEMBERS' ITEMS - NONE
Redevelopment Agency Agenda 3 September 22, 2004 3
PUBLIC HEARINGS — NONE
ADJOURNMENT
Adjourn to a regularly scheduled meeting of the Redevelopment Agency to be held on
October 5, 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 special meeting of Wednesday,
September 22, 2004, was posted at the outside entry to the Council Chamber, 78-495
Calle Tampico and on the bulletin board at the La Quinta Chamber of Commerce and at
Stater Bros. 78-630 Highway 111, on Friday, September 17, 2004.
DATED: September 17, 2004
JU . REEK, C, City'tf4rk
City of La Quinta, California
Redevelopment Agency Agenda 4 September 22, 2004
COUNCIL/RDA MEETING DATE: SEPTEMBER 21, 2004
ITEM TITLE:
Demand Register Dated September 21, 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 September 21, 2004 of which $7,693,019.27
represents Redevelopment Agency Expenditures.
PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA
'� �• .t � . ``ccam�
OF
COUNCIL/RDA MEETING DATE: September 21 , 2 0 04 AGENDA CATEGORY:
ITEM TITLE: Transmittal of Treasurer's Report
as of July 31, 2004
RECOMMENDATION:
It is recommended the Redevelopment Agency Board:
Receive and file.
BUSINESS SESSION:
CONSENT CALENDAR: laol,.l
STUDY SESSION:
PUBLIC HEARING:
PLEASE SEE RELATED BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA
T4ty,--- 4 X4PQur�1w
COUNCIL/RDA MEETING DATE: September 21, 2004
ITEM TITLE: Transmittal of Revenue and Expenditure
Report dated July 31, 2004
RECOMMENDATION:
Receive and File
FISCAL IM PUCATIONS:
None.
CHARTER CITY IM PUCATIONS:
None.
BACKGROUND AND OVERVIEW:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Transmittal of the July 31, 2004 Statement of Revenue and Expenditures for the La
Quinta Redevelopment Agency.
Respectfully submitted,
6ohn M. Falconer, Finance Director
Approved for submission by:
Thomas P. Genovese, City Manager
Attachments: 1. Revenue and Expenditures and Report, July 31, 2004
ATTACHMENT 1
LA QUINTA REDEVELOPMENT AGENCY
REVENUE SUMMARY
PROJECT AREA NO.1:
LOW/MODERATE BOND FUND:
Allocated Interest
Home Sale Proceeds
Non Allocated Interest
Transfer In
TOTAL LOWIMOD BOND
LOWIMODERATE 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 LOW/MOD TAX
DEBT SERVICE FUND:
Tax Increment
Allocated Interest
Non Allocated Interest
IMerst - 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
REMAINING
BUDGET RECEIVED BUDGET
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
6,246,300.00
0.00
6,246,300.00
20,800.00
0.00
20,800.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
341,000.00
29,474.00
311,526.00
150,000.00
0.00
150,000.00
165,000.00
0.00
165,000.00
0.00
9,115.16
(9,115.16)
0.00
286.21
(286.21)
0.00
42,500.00
(42,500.00)
0.00
0.00
0.00
6,923,100.00
81,375.37
6,841,724.63
24,985,400.00
0.00
24,985,400.00
66,000.00
0.00
66,000.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2,478,347.00
0.00
2,478,347.00
27,529,747.00
0.00
27,529,747.00
0.00
0.00
0.00
0.00
39,821.75
(39,821.75)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
39,821.75
(39,821.75)
0.00
0.00
0.00
0.00
7,950.31
(7,950.31)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
7,950.31
(7,950.31)
2
LA QUINTA REDEVELOPMENT AGENCY
EXPENDITURE SUMMARY
PROJECT AREA NO, 1:
LOW/MODERATE BOND FUND
PERSONNEL
SERVICES
REIMBURSEMENT TO GEN FUND
HOUSING PROJECTS
TRANSFERS OUT
TOTAL LOW/MOD BOND
07/01/2004 - 7131/04 REMAINING
BUDGET EXPENDITURES ENCUMBERED BUDGET
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
LOW/MODERATE TAX FUND:
PERSONNEL
4,900.00
2,895.75
0.00
2,004.25
SERVICES
253,157.00
5,250.00
0.00
247,907.00
BUILDING HORIZONS
210,000.00
0.00
0.00
210,000.00
LQ RENTAL PROGRAM
150,000.00
26,884.49
0.00
123,115.51
LQ HOUSING PROGRAM
3,118,240.00
0.00
0.00
3,118,240.00
LOWMOD VILLAGE APARTMENTS
400,000.00
0.00
0.00
400,000.00
LQRP - REHABILITATION
0.00
0.00
0.00
0.00
APT REHABILITATION
276,411.00
0.00
0.00
276,411.00
LQ HOUSING PROJECTS
500,000.00
0.00
0.00
500,000.00
REIMBURSEMENT TO GEN FUND
668,272.00
55,689.37
0.00
612,582.63
TRANSFERS OUT
2,478,347.00
0.00
0.00
2,478,347.00
TOTAL LOWIMOD TAX
8,059,327.00
90,719.61
0.00
7,968,607.39
DEBT SERVICE FUND:
SERVICES
496,585.00
1,545.00
0.00
495,040.00
BOND PRINCIPAL
2,395,000.00
0.00
0.00
2,395,000.00
BOND INTEREST
7,929,969.00
0.00
0.00
7,929,969.00
INTEREST CITY ADVANCE
952,764.00
79,397.00
0.00
873,367.00
PASS THROUGH PAYMENTS
11,903,406.00
0.00
0.00
11,903,406.00
ERAF SHIFT
3,000,000.00
0.00
0.00
3,000,000.00
TRANSFERS OUT
1,995,101.00
0.00
0.00
1,995,101.00
TOTAL DEBT SERVICE
28,672,825.00
80,942.00
0.00
28,591,883.00
CAPITAL IMPROVEMENT FUND:
PERSONNEL
4,900.00
2,895.75
0.00
2,004.25
SERVICES
116,393.00
5,331.00
0.00
111,062.00
LAND ACQUISITION
0.00
0.00
0.00
0.00
ASSESSMENT DISTRICT
0.00
0.00
0.00
0.00
ADVERTISING -ECONOMIC DEV
40,000.00
0.00
0.00
40,000.00
ECONOMIC DEVELOPMENT
50,000.00
0.00
0.00
50,000.00
BOND ISSUANCE COSTS
0.00
0.00
0.00
0.00
CAPITAL - BUILDING
0.00
0.00
0.00
0.00
REIMBURSEMENT TO GEN FUND
396,013.00
33,001.22
0.00
363,011.78
TRANSFERS OUT
36,516,752.00
(619,359.34)
0.00
37,136,111.34
TOTAL CAPITAL IMPROVEMENT
37,124,058.00
(578,131.37)
0.00
37,702,189.37
CAPITAL IMPROVEMENT FUND/TAXABLE BOND
BOND ISSUANCE COSTS
0.00
0.00
0.00
0.00
TRANSFERS OUT
5,666,764.00
30,123.82
0.00
5,636,640.18
TOTAL CAPITAL IMPROVEMENT
5,666,764.00
30,123.82
0.00
5,636,640.18
�,'
LA QUINTA REDEVELOPMENT AGENCY
REVENUE SUMMARY
PROJECT AREA NO.2:
LOWIMODERATE BOND FUND:
Allocated Interest
Non Allocated Interest
Bond proceeds (net)
Transfer In
TOTAL LOWIMOD BOND
LOW/MODERATE 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
2004 LOWIMODERATE BOND FUND:
Allocated Interest
Home Sale Proceeds
Non Allocated Interest
Transfer In
TOTAL LOW/MOD BOND
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
REMAINING
BUDGET RECEIVED- BUDGET
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
3,115,000.00
0.00
3,115,000.00
24,100.00
0.00
24,100.00
0.00
0.00
0.00
7,054,074.00
0.00
7,054,074.00
0.00
29,943.18
(29,943.18)
0.00
86,503.33
(86,503.33)
0.00
0.00
0.00
801,358.00
801,359.00
0.00)
0.00
0.00
0.00
10,994,532.00
917,805.51
10,076,726.49
0.00
0.00
0.00
0.00
0.00
0.00
0.00
86,310.38
(86,310.38)
0.00
0.00
0.00
0.00
86,310.38
(86,310,38)
12,459,800.00
0.00
12,459,800.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
4,099,819.00
0.00
4,099,819.00
16,559,619.00
0.00
16,559,619.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
' I�
LA QUINTA REDEVELOPMENT AGENCY
EXPENDITURE SUMMARY
PROJECT AREA NO, 2•
07/01/2004 - 7131104 REMAINING
BUDGET EXPENDITURES ENCUMBERED BUDGET
LOWIMODERATE BOND FUND
2nd TRUST DEEDS
0.00
0.00
0.00
0.00
LAND
0.00
0.00
0.00
0.00
BOND ISSUANCE COSTS
0.00
0.00
0.00
0.00
TRANSFERS OUT
0.00
0.00
0.00
0.00
TOTAL LOWIMOD BOND
0.00
0.00
0.00
0.00
LOW/MODERATE TAX FUND:
PERSONNEL
2,900.00
1,752.27
0.00
1,147.73
SERVICES
192,088.00
9,279.51
0.00
182,808.49
2ND TRUST DEEDS
500,000.00
0.00
0.00
500,000.00
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
7,058.20
0.00
1,416,144.80
WASH/MILES PROJECT
0.00
5,317.50
0.00
(5,317.50)
VISTA DUNES MOBILE HOME PARK
0.00
10,671.62
0.00
(10,671.62)
LOW MOD HOUSING PROJECT/47TH/ADAMS PROJ
776,239.00
0.00
0.00
776,239.00
48TH/ADAMS PLANNING
0.00
0.00
0.00
0.00
FORECLOSURE ACQUISITION
150,000.00
0.00
0.00
150,000.00
REIMBURSEMENT TO GEN FUND
333,272.00
27,772.63
0.00
305,499.37
TRANSFERS OUT
7,350,044.00
599,302.57
0.00
6,750,741.43
TOTAL LOW/MOD TAX
13,247,746.00
661,154.30
0.00
12,586,591.70
2004 LOWIMODERATE BOND FUND
2nd TRUST DEEDS
0.00
0.00
0.00
0.00
LAND
0.00
0.00
0.00
0.00
BOND ISSUANCE COSTS
0.00
0.00
0.00
0.00
TRANSFERS OUT
500,965.00
0.00
0.00
500,965.00
TOTAL LOW/MOD BOND
500,965.00
0.00
0.00
500,965.00
DEBT SERVICE FUND:
SERVICES
179,013.00
0.00
0.00
179,013.00
BOND PRINCIPAL
95,000.00
0.00
0.00
95,000.00
BOND INTEREST
323,264.00
0.00
0.00
323,264.00
INTEREST CITY ADVANCE
1,053,580.00
121,631.00
0.00
931,949.00
INTEREST - ERAF L/MOD LOAN
0.00
0.00
0.00
0.00
PASS THROUGH PAYMENTS
10,605,677.00
0.00
0.00
10,605,577.00
TRANSFERS OUT
994,948.00
0.00
0.00
994,948.00
TOTAL DEBT SERVICE
13,251,382.00
121,631.00
0.00
13,129,751.00
CAPITAL IMPROVEMENT FUND:
PERSONNEL
2,900.00
1,751.80
0.00
1,148.20
SERVICES
117,820.00
2,950.00
0.00
114,870.00
ADVERTISING -ECONOMIC DEV
250.00
0.00
0.00
250.00
ECONOMIC DEVELOPMENT ACTIVITY
40,000.00
0.00
0.00
40,000.00
REIMBURSEMENT TO GEN FUND
41,443.00
3,453.78
0.00
37,989.22
TRANSFERS OUT
1,634.00
0.00
0.00
1,634.00
TOTAL CAPITAL IMPROVEMENT
204,047.00
8,155.58
0.00
195, 91.42
,- a .4
VlA 5
COUNCIL/RDA MEETING DATE: September 22, 2004
ITEM TITLE: Consideration of Monument Signage for
SilverRock Resort
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION: /
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Review monument signage concepts for SilverRock Resort.
FISCAL IMPLICATIONS:
None for this action. It is estimated that these signs would cost less than $100,000;
however, once the Agency Board approves signage concepts and the plans/specs are
prepared, staff will obtain more exact cost estimates. Because monument signage
was not part of the original SilverRock budget, additional funds will need to be
allocated when a construction contract is awarded. Potential funding sources might
include Phase 2 contingency funds ($398,000); Project Area No. 1 economic
development reserves ($2.4 million); or Arts in Public Places funds ($256,562).
BACKGROUND AND OVERVIEW:
On May 4, 2004, the Agency Board approved the perimeter landscape design, created
by Pinnacle Design Company, which included "placeholders" for monument signage at
the Avenue 52 and Jefferson entrances, and on the wall facing the roundabout.
Because Pinnacle does not provide sign design services, staff asked GMA International
to draft conceptual monument signs that would be compatible with the overall master.
plan and entry feature design. GMA staff will present their monument signage
concepts (Attachment 1) for Agency Board consideration at today's meeting. In
addition to the sign locations listed above, GMA has also prepared a sign concept for
the Avenue 54 entrance, which will eventually serve the future casitas pads located in
the southern portion of the property.
The proposed signs do not comply with the development standards (Section
9.160.050, Attachment 2) in terms of size, number and quantity. The Code allows for
certain adjustments to the development standards, as is typically done with other
developments in the City, subject to findings of approval. Adjustments to these
provisions may be authorized by the Planning Commission pursuant to Section
9.1650.090 (E) — Attachment 3. Once the Agency Board approves sign concepts,
staff will begin the sign program review process.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency Board include:
1. Review and approve monument signage concepts as presented; or
2. Review and approve monument signage concepts with modifications; or
3. Do not approve monument signage concepts; or
4. Provide staff with alternative direction.
Respectfully submitted,
Mark Weiss, Assistant Executive Director
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachments: 1. Monument Signage Concepts
2. City Ordinance Number 9.160.050
3. City Ordinance Number 9.160.090
Q
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'A
ENT 1
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4
fV3
ut
6
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60.050
Table 9-19 Permanent Signs Permitted in Nonresidential Districts With a Sign Permit
Note: Freestanding signs shall not be located within 5. feet of a street right-of-way nor within a comer
cutoff area identified in Section 9.100.030.
"ID" means identification sign.
Signs required by law shall be allowed at the minimum size specified by such law.
ATTACHMENT 2
Sign Type and
Maximum
Maxomuni
Maximum
Additional
Placement
Number
Area
Height
Illumination
. Requirements
Freestanding center
1 per street
.25 sq. ft. per
8 ft.
Direct or
Aggregate sign area
or complex ID sign
frontage
lineal ft. of
indirect for
may not. be
for multitenant
street frontage
all signs
combined among
building or-
up to
street frontages.
multibuilding,
maximum of
50 sq. ft. per
Letter height shall
be a minimum 10"
shopping center or
other commercial or
sign and 100
high .
office complex
sq. ft•
aggregate for
all signs
Building -mounted or
1 flush-
Flush-
8 ft.
Direct or
ID signs not
permanent window
mounted. plus
mounted: 1
indirect for
permitted for
ID signs for
1 under-
sq. ft. per
all signs
tenants above the
" individual
canopy per
lineal ft. of
ground flood in
commercial or office
tenant
lease frontage
buildings with only
tenants
frontage along
up to
interior access
a street or
maximum of
above ground floor
along a
50 sq. ft.
common -use
aggregate
parking lot
Under -canopy:
with no direct
3 sq. ft.
street frontage
Freestanding ID sign
1
50 sq. ft.
8 ft.
Direct or
Allowed only if
for individual
indirect for
building has
commercial or office
all signs
minimum 200 ft. of
building
street frontage
Building -mounted ID
2
1 sq. ft. per
Top of wall
Direct or
sign for individual
(but no more
lineal ft. of
indirect for
commercial or office
than 1 per
building
all signs
building
each side of
frontage along
building)
a street up to
maximum of
50 sq. ft.
aggregate
Building -mounted or
1 per entrance
18 sq. ft.
Top of wall
Direct or
Signs are to be
freestanding directory
to building or
or 6 ft. if
indirect
designated and
sign for multitenant
complex
freestanding
oriented to direct
buildings or
pedestrian traffic
complexes
cA Quim 9-96)
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' 9.160.090 ATTACHMENT 3
r---� 1. Planned Sign Programs. Planned sign program review per the provisions of this subsection is required
for submissions which: (1) include three or more permanent signs; (2) are in conjunction with review of a
development by the
site permit planning commission; or (3) include a request for a sign adjustment to a sign
previously approved under a planned sign program.
2. The planning commission shall make a determination to either approve, approve with modifications,
or deny planned sign program applications in conjunction with its review of the associated development project.
3. The planning .commission, upon completion of its review, may attach appropriate conditions to any
sign program approval. In order to approve a planned sign program, the commission must find that:
a. The sign program is consistent with the purpose and intent of this chapter;
b. The sign program is in harmony with and visually. related to:
1. All signs within the planned sign program, via the incorporation of several common design elements
such as materials, letter style, colors, illumination, sign type or sign shape.
H. The buildings they identify. This may be accomplished by utilizing materials, colors, or design motif
included in the building being identified-.
in. Surrounding development. Implementation of the planned sign program will not adversely affect
surrounding land uses or obscure adjacent conforming signs.
4. Modification of signs within a previously approved sign program shall be reviewed by the community
development director and approved by the planning commission under the same procedures as review of a
new planned sign program.
E. Sign Adjustments. Adjustments to planned sign programs to permit additional sign area, additional
numbers of signs, an alternative sign location, an alternative type of signage, new illumination or additional
height may be granted by the planning commission. Applications for sign adjustments. shall be submitted in
writing on forms provided by the community development director. The planning commission shall make
one or more of the following findings in conjunction with approval of a sign adjustment:
1. Additional Area:
a. To overcome a disadvantage as a result of an exceptional setback between the street and the sign or
orientation of the sign location;
b. To achieve an effect which is essentially architectural, sculptural or graphic art;
c. To permit more sign area in a single sign than is allowed, but less than the total sign area allowed
on the site, where a more orderly and concise pattern of signing will result;
d. To allow a sign to be in proper scale with its building or use;
e. To allow a sign compatible with other conforming signs in the vicinity;
f. To establish the allowable amount and location of signing when no street frontage exists or when,
due to an unusual lot shape (e.g., flag lot), the street frontage is excessively narrow in proportion to the average
width of the lot.
2. Additional Number. To compensate for inadequate visibility, or to facilitate good design balance.
3. Alternative Locations.
a. To transfer area from one wall to another wall or to a freestanding sign upon the finding that such
alternative location is necessary to overcome a disadvantage caused by an unfavorable orientation of the front
wall to the street or parking lot or an exceptional setback;
b. To permit the placement of a sign on an access easement to a lot not having street frontage, at a point
where viewable from the adjoining public street. In addition to any other requirements, the applicant shall
submit evidence of the legal right to establish and maintain a sign within the access easement;
c. Additionally, alternative on -site locations may be granted in order to further the intent and purposes
of this chapter or where normal placement would conflict with the architectural design of a structure.
4. Alternative Type of Sign. To facilitate compatibility with the architecture of structure(s) on the site
and improve the overall appearance on the site.
5.. Additional Height. To permit additional height to overcome a visibility disadvantage.
F. Disposition of Plans.
1. When revisions to sign plans are required as a condition of approval, the applicant shall submit the
required number of copies of the revised plans to the community development department to be stamped
"Approved." The department will retain copies and a set will be returned to the applicant.
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COUNCIL/RDA MEETING DATE: September 22, 2004
ITEM TITLE: Consideration of a Resolution Approving the
First Amendment to the Disposition and Development
Agreement Between the La Quinta Redevelopment
Agency and CP Development La Quinta, LLC, for the
Development of the Agency's Miles Avenue and
Washington Street Property
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Adopt a resolution approving the first amendment to the Disposition and Development
Agreement ("DDA") between the La Quinta Redevelopment Agency ("Agency") and CP
Development La Quinta, LLC, for the Development of the Agency's Miles Avenue and
Washington Street property.
FISCAL IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
In December 2003, the Agency approved a DDA with Centerpoint, LLC, which
facilitated the sale and development of the Agency's 45.0-acre property Located
southeast of the intersection of Miles Avenue and Washington Street. The
development program envisioned in the DDA encompasses:
• An approximately 134 room Homewood Suites by Hilton ("Suites Hotel")
• Approximately 136 one- and two-story casitas hotel condominium units to be
rented as vacation rental units ("Casitas")
• A boutique hotel with approximately 26, 1,200 square -foot villas and a spa
("Sanctuary Villas")
• A 120,000 square foot medical office and surgical facility comprised of three
40,000 square foot buildings ("MOB")
• Two sit-down restaurants ("Restaurants")
07
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13 courtyard cluster villa homes that will be sold at market sales prices
("Villas")
• 54 one-story single family and courtyard homes of which 40 will be sold at
prices affordable to moderate income households ("Affordable Single -Family
and Courtyard Homes"), with the remaining 14 sold at market sales prices
("Market Single -Family Homes")
• A 2.68-acre park ("Park") .
The DDA was subsequently modified in December 2003 to:
• Change the development entity to CP Development La Quinta, LLC, a California
limited liability company ("Developer")
• Revise the landscaping obligations to account for the possibility that the City
does not obtain certain landscaping grants (the City subsequently obtained the
landscaping grant)
• Revise the site plan and the individual parcel prices to reflect the landscaping
changes and certain other changes necessitated by the installation of a well -site
• Increase in the purchase price paid by the Developer by $55,560 to reflect site
plan modifications
• Revise the insurance requirements.
Since December, the Developer has been processing site development plans for the
Suites Hotel, Casitas and Seeley Drive segments. In addition, the Developer has been
working through construction defect insurance issues generated by the Casitas
segment. The Developer indicates that it is virtually impossible to obtain reasonably
priced insurance to cover construction defects. These circumstances lead the
Developer to partner with Lennar Homes of California ("Lennar"). Lennar is a self -
insured national home builder; the Developer indicates that Lennar has the capacity to
address the construction defect insurance challenges through their self-insurance
program.
The DDA provides two site acquisition options: Option "A" entails acquiring the entire
45-acre parcel at one time and Option "B," which entails acquiring property per each
development phase. The Developer has indicated that they want to acquire the
property pursuant to Option A and wish to close escrow by November 2004. They are
doing this because they have secured financing to purchase the property and mass
grade the entire site. Further, they have secured financing and are nearing completion
of the building plans for the Suites Hotel and Seeley Drive. By purchasing the property
and initiating mass grading activities, the Developer indicates that barring the
unforeseen, they can complete and open the Suites Hotel by late -November 2005.
In order to accommodate this closing schedule, the addition of Lennar, and a revised
development schedule, the Developer requested that the Agency consider certain
modifications to the DDA as outlined below. The Agency Board reviewed these items in
August 2004 and directed staff to draft Amendment No. 1 to the DDA ("DDA
��4.4
Amendment"). . The recommended action would approve the DDA Amendment. The
requested modifications are as follows:
property Closing Conditions Modifications
ng
In ord
er to achieve the November 2004 closing date, certain preconditions to closing
need to be modified. As the DDA is currently drafted, the Developer must se 1
secured final building permits and performance bonds for the Suites Hotel,
PhaPha er
Casitas and Seeley Drive before closing escrow to purchase the entirep P
Option "A." Significant modifications are as follows:
Building Permits/Design Approvals
Current: Developer must have secured all final design approvals required to secure
building permits related to building the Suites Hotel, the Parcel 2 Casitas,
and Seeley Drive.
Modified: Developer shall have obtained approval by the City of the Design
Development Drawings for the Suites Hotel, as set forth in Section 302
herein, schematic design drawings for the Parcel 2 Casitas Development
Component, and preliminary engineering drawings for Seeley Drive.
Performance Bonds
Curr
ent: .The Developer shall have obtained from Developer's contractor and
delivered to the Agency evidence, in a form satisfactory to Agency, that
said contractor has obtained contractor bonds for the completion of the
construction of (i) the Suites Hotel, the Parcel 2 Casitas, and Seeley
Drive, if Developer has elected to purchase the property pursuant to
Option "A."
Modified: Developer shall have obtained from Developer's contractor and delivered
to the Agency evidence, in a form satisfactory to Agency,that said
contractor has the ability to obtain Contractor Bonds at the time of the
issuance of building permits for the completion of the construction of
(i) the Suites Hotel, and Seeley Drive, if Developer has elected t f
purchase the Property pursuant to Option A, or (ii) the Phase o
Development applicable to each Parcel to be acquired at the closing, if
Developer has elected to purchase the Property pursuant to Option B.
Said Contractor Bonds shall provide that the Agency is authorized to
enforce the same as a third party beneficiary.
he DDA
In addition to the above modifications to the property closing conditions, t
Amendment also clarifies that the Developer shall have obtained City approval of final
grading plans, lans, and grading permits shall be ready to be issued, if they elect to purchase
the entire property pursuant to Option "A." Finally, the DDA Amendment clarifies
other sections of the DDA as they relate to the changes identified in the property
closing conditions.
1r 2
Li 0
Transfer of Land and Improvement Interests Prior to Project Completion
In order to obtain construction defect insurance for the Casitas and Sanctuary Villas
components, the Developer desires to include Lennar in the Limited Liability Company
("LLC") for this development. Further, the Ehline Company, the residential developers
authorized in the existing DDA, has elected not to continue with this development.
The Developer has requested that the DDA be modified to permit Lennar to participate
in the LLC and undertake the Casitas and Sanctuary Villas components, as well as the
Affordable Single -Family and Courtyard Homes, and the Market Rate Homes. The DDA
Amendment accommodates this transfer. Since the Ehline Company is included in the
Development Agreement for this project, a separate amendment to that document will
also be processed.
Schedule of Performance
The DDA Amendment also modifies the Schedule of Performance. The existing
schedule anticipated a spring 2004 property acquisition time frame with all activities
underway no later than December 2004. Given the delays in securing construction
defect insurance combined with challenges with preparing and processing the Suites
Hotel and Seeley Drive plans, the Developer requested that the Schedule of
Performance be modified to reflect current time frames. Basically, the schedule
modifications entail adding one year to the required start date for the plan submittal
and construction activities related to all site development components.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency include:
1. Adopt a resolution approving the first amendment to the DDA between the
Agency and CP Development La Quinta, LLC, for the development of the
Agency's Miles Avenue and Washington Street property; or
2. Do not adopt a resolution approving the first amendment to the DDA between
the Agency and CP Development La Quinta, LLC, for the development of the
Agency's Miles Avenue and Washington Street property; or
3. Provide staff with alternative direction.
Respectfully submitted,
Mark Weiss
Assistant Executive Director
�, : 3
Approved for submission by:
Thomas P. Genovese
Executive Director
�'�'d 4
RESOLUTION NO. RA 2004-
A RESOLUTION OF THE LA QUINTA REDEVELOPMENT
AGENCY APPROVING AN AMENDMENT TO THE
DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN
THE AGENCY AND CP DEVELOPMENT LA QUINTA, LLC
FOR THE PROPERTY LOCATED AT THE SOUTHEAST
CORNER OF WASHINGTON STREET AND MILES AVENUE
WHEREAS, the La Quinta Redevelopment Agency ("Agency") is a public
body, corporate and politic, organized and existing under the California Community
Redevelopment Law (Health & Safety Code Section 33000 et seq.) ("CRL"); and
WHEREAS, pursuant to the CRL, the City Council of the City of La Quinta
("City" or "City Council", as applicable) approved and adopted the Redevelopment Plan
("Redevelopment Plan") for Project Area No. 2 ("Project Area"), on November 29,
1983, by Ordinance No. 43, and amended the Redevelopment Plan on December 20,
1994, by Ordinance No. 258; and
WHEREAS, on or about December 18, 2003, the Agency entered into a
Disposition and Development Agreement ("Agreement") with CP Development La
Quinta, LLC, a California limited liability company ("Developer"), pursuant to which the
Agency is to convey to the Developer, either all at once ("Option A"), or in phases
("Option B"), certain real property located within the Project Area (the "Property") for
Seven Million Fifty -Four Thousand Seventy -Four Dollars ($7,054,074) for the
Developer's subsequent development thereon of a commercial project containing a
medical office/clinic, a boutique hotel, a mid -price suites hotel, a resort -style
condomimium/casitas development, two sit-down restaurants, and two single-family
residential developments, with forty of the single-family homes restricted for sale to
moderate -income buyers at an affordable housing cost, all as more particularly
described in the Agreement (collectively, the "Project"); and
WHEREAS, Agency staff have negotiated an amendment to the
Agreement ("Amendment No. 1 ") which would revise (i) certain timeframes in the
Schedule of Performance attached to the Agreement; (ii) certain conditions that must
be satisfied prior to the Agency's conveyance to Developer of the Property; and (iii) the
transfer and assignment provisions in the Agreement; and
WHEREAS, Amendment No. 1 is in accordance with the Redevelopment
Plan and is of benefit to the Project Area and the City of La Quinta.
S:\CityMgr\STAFF REPORTS ONLY\B 3 Reso.DOC
Resolution No. RA 2004-
Disposition and Development Agreement
Center Point Development, LLC
Adopted: September 22, 2004
NOW, THEREFORE, BE IT RESOLVED BY THE LA QU1NTA
REDEVELOPMENT AGENCY AS FOLLOWS:
1. That the above recitals are true and correct and incorporated herein.
2. That Amendment No. 1 effectuates the purposes of the Community Redevelop-
ment Law (Health & Safety Code Section 33000 et seq.) and of the
Redevelopment Plan and is in the best interests of the citizens of the City of La
Quinta.
3. Amendment No. 1, a copy of which is on file with the Agency Secretary, is
hereby approved, subject to Developer's execution of an Indemnity Agreement
substantially in the form attached to Amendment No. 1 as Exhibit "B." The
Agency Executive Director and Agency Counsel are hereby authorized and
directed to make final modifications to Amendment No. 1 that are consistent
with the substantive terms of Amendment No. 1 approved hereby, and the
Agency Executive Director is authorized to thereafter sign Amendment No. 1 on
behalf of the Agency.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the
La Quinta Redevelopment Agency held this 22"d day of September, 2004, by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN"
TERRY HENDERSON, Agency Chair
City of La Quinta, California
ATTEST:
JUNE S. GREEK, Agency Secretary
City of La Quinta, California
.-) 6
U 141W 9
Resolution No. RA 2004
Disposition and Development Agreement
Center Point Development, LLC
Adopted: September 22, 2004
APPROVED AS TO FORM:
M. KATHERINE JENSON, Agency Counsel
City of La Quinta, California
'-, 7
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AMENDMENT NO.1 TO DISPOSITION AND DEVELOPMENT AGREEMENT
THIS AMENDMENT NO. 1 TO DISPOSITION AND DEVELOPMENT
AGREEMENT ("Amendment No. 1") is made and entered into as of ,
2004 ("Effective Date") by and between LA QUINTA REDEVELOPMENT AGENCY, a public
body, corporate and politic ("Agency"), and CP DEVELOPMENT LA QUINTA, LLC, a
California limited liability company ("Developer").
RECITALS:
A. On or about December 18, 2003, the Agency and Developer entered into that
certain Disposition and Development Agreement (the "DDA"), pursuant to which Agency
agreed to sell to Developer, and Developer agreed to purchase from Agency that certain real
property located southeast of the Miles Avenue and Washington Street intersection in the City of
La Quinta, California 92253 (the "Property") and to construct, complete, and operate thereon a
commercial project containing a medical office/surgical facility, a development containing
sanctuary villas, a mid -price suites hotel, a resort -style condominium/casitas development,
two (2) sit-down restaurants, and two (2) single-family residential developments, with forty (40)
of the single-family homes restricted for sale to "Eligible Buyers" at an "Affordable Housing
Cost" (as those terms are defined in the DDA (collectively, the "Project").
B. Agency and Developer now desire to amend the DDA to revise (i) certain
timeframes in the schedule of performance attached to the DDA; (ii) certain conditions that must
be satisfied prior to the Agency's conveyance to Developer of the Property; and (iii) the transfer
and assignment provisions.
AGREEMENT:
NOW, THEREFORE, in consideration of the foregoing recitals which are incorporated
herein by this reference and for valuable consideration the receipt and sufficiency of which is
hereby acknowledged, the parties hereto agree as follows:
1. The DDA is hereby amended as follows:
1.1 To replace Section 205.1(d) and Section 205.2(f) with the following:
Design Approvals. If Developer elects to purchase the Property pursuant to
Option "A," Developer shall have obtained approval by the City of the Design
Development Drawings for the Suites Hotel, as set forth in Section 302 herein,
schematic design drawings for the Parcel 2 Casitas Development Component, and
preliminary engineering drawings for Seeley Drive. If Developer elects to
purchase the Property pursuant to Option "B," Developer shall have obtained
approval by the City of the Design Development Drawings for the Phase of
Development applicable to each Parcel to be acquired at the Closing, as set forth
in Section 302 hereof.
882/015610-0061 8
r .�
540839.02 a09/17/04 � v
1.2 To delete Section 205.1(i).
1.3 To revise Section 205.10) by deleting the phrase "the Parcel 2 Casitas
Development Component."
1.4 To replace Section 205.1(k) with the following:
(k) Performance Bond. The Developer shall have obtained from Developer's
contractor and delivered to the Agency evidence, in a form satisfactory to
Agency, that said contractor has the ability to obtain Contractor Bonds at the time
of the issuance of building permits for the completion of the construction of (i) the
Suites Hotel, and Seeley Drive, if Developer has elected to purchase the Property
pursuant to Option "A," or (ii) the Phase of Development applicable to each
Parcel to be acquired at the Closing, if Developer has elected to purchase the
Property pursuant to Option `B." Said Contractor Bonds shall provide that the
Agency is authorized to enforce the same as a third party beneficiary
1.5 To replace Section 205.2(h) with the following:
(h) Grading ' Plans and Permits. If Developer elects to purchase the Property
pursuant to Option "A," Developer shall have obtained City approval of its final
grading plans for the Property, and grading permits shall be ready to be issued
(upon payment of necessary fees, posting of required security, and similar items).
If Developer elects to purchase the Property pursuant to Option `B," Developer
shall have obtained City approval of its final grading plans for the Phase of
Development applicable to each Parcel to be acquired at the Closing, and grading
permits shall be ready to be issued (upon payment of necessary fees, posting of
required security, and similar items).
1.6 To add a new Section 311.1(c), as follows:
(c) Notwithstanding anything in this Section 311.1 to the contrary, Developer
may satisfy its obligation to provide evidence of the financing necessary to
develop the Casitas Development (or applicable Phase of Development thereof)
by presenting a letter from Lennar Homes of California, Inc. ("Lennar"),
certifying that Lennar has the necessary resources to develop the Casitas
Development (or applicable Phase of Development thereof), and identifying the
source of such resources, in a manner satisfactory to the Agency's Executive
Director, in his or her reasonable discretion.
1.7 To replace Section 703.2(c) with the following:
(c) A transfer of the Suites Hotel or the Suites Hotel Parcel to a limited
liability company in which Developer is the managing member.
882/015610-0061 9
540839.02 a09/17/04 r.
!,' j 4W
1.8 To replace Section 703.2(d) with the following:
(d) A transfer of any of the Parcel -8 Sanctuary Villas Component, Sanctuary
Villas Parcel 8, the Parcel 9 Sanctuary Villas Component, and/or Sanctuary Villas
Parcel 9 to Lennar or to Center Point Sanctuary, LLC, a California limited
liability company.
1.9 To replace Section 703.2(f) with the following:
(f) A transfer of any of the Parcel 2 Casitas Development Component, Casitas
Parcel 2, the Parcel 3 Casitas Development Component, Casitas Parcel 3, the
Parcel 4 Casitas Development Component, Casitas Parcel 4, the Parcel 5
Residential Development, Residential Parcel 5, the Parcel 7 Residential
Development, and/or Residential Parcel 7 to Lennar.
1.10 To replace the last paragraph of Section 703.2 with the following:
In the event of a Transfer by Developer under subparagraphs (a), (b), (c), (d), (e),
or (f) above not requiring the Agency's prior approval, Developer nevertheless
agrees that at least thirty (30) days prior to such Transfer it shall give written
notice to Agency of such assignment and satisfactory evidence that the assignee
has assumed in writing through an assignment and assumption agreement all of
the obligations of this Agreement; provided, however, that no such assignment
and assumption agreement shall be required for transfers under subparagraphs (d)
or (f) to Lennar, and upon such assignment Lennar shall be deemed to have
assumed only those obligations hereunder that pertain to the Parcel(s) and the
Phase(s) of Development transferred to Lennar. In the event such transfer is
under subparagraph (c) or (e) above, Developer shall, along with the notice
required to be given pursuant to the immediately preceding sentence, provide
Agency with evidence that such proposed transferee entity has been duly formed
in accordance with the laws of the State of California. Any Transfer by
Developer to Lennar of both Residential Parcel 7 and the Parcel 7 Residential
Development under subparagraph (f) above shall include the right to receive
disbursements of the Agency Loan pursuant to the terms of this Agreement.
1.11 To add a new paragraph to the end of Section 309.1, as follows:
Nothing herein constitutes a representation or warranty by Agency that the construction
of the Project is not subject to California Health and Safety Code Sections 33423 through
33426, or Chapter 1 of Part 7 of the California Labor Code (commencing with section
1720), and all applicable statutory and regulatory provisions related thereto, and
Developer expressly waives any right of reimbursement for any "increased costs" under
California Labor Code Section 1781 or otherwise with respect to the Property or the
Project. Developer shall indemnify, defend, and hold Agency harmless, including
litigation costs and reasonable attorneys' fees, from and against any and all claims
pertaining to the payment of wages for the Property or Project.
882/015610-0061 10
540839.02 a09/17/04 fC) J"
1.12 To replace the Schedule of Performance attached to the DDA as Attachment
No. 20 with Exhibit "A" hereto, which exhibit is incorporated herein by this reference.
2. For purposes of clarification, all references to "grading plans" and "grading permits" in
Section 205 of the DDA, as amended by this Amendment No. 1, shall refer to mass or rough
grading, and all references to "grading plans" and "grading permits" in the Schedule of
Performance, as amended by this Amendment No. 1, shall refer to precise grading.
3. Agency's approval of this Amendment No. 1 is conditioned upon Developer's execution,
concurrently with the execution hereof, of an Indemnification Agreement substantially in the
form attached hereto and incorporated herein as Exhibit `B."
4. Except as otherwise expressly provided in this Amendment No. 1, all of the terms and
conditions of the DDA shall remain in full force and effect.
5. In the event of any action between Agency and Developer seeking enforcement of any of
the terms and conditions to this Amendment No. 1, the prevailing party in such action shall be
awarded, in addition to damages, injunctive or other relief, its reasonable costs and expenses,
including without limitation its expert witness fees and reasonable attorney's fees.
6. This Amendment No. 1 shall be construed according to its fair meaning and as if
prepared by both parties hereto.
7. This Amendment No. 1 shall be governed by the internal laws of the State of California
and any question arising hereunder shall be construed or determined according to such law. The
Municipal and Superior Courts of the State of California in and for the County of Riverside, or
such other appropriate court in such county, shall have exclusive jurisdiction of any litigation
between the parties concerning this Amendment No. 1. Service of process on Agency shall be
made in accordance with California law. Service of process on Developer shall be made in any
manner permitted by California law and shall be effective whether served inside or outside
California.
8. Time is of the essence of this Amendment No. 1 and of each and every term and
provision hereof.
9. A waiver of a provision hereof, or modification of any provision herein contained, shall
be effective only if said waiver or modification is in writing, and signed by both Agency and
Developer. No waiver of any breach or default by any party hereto shall be considered to be a
waiver of any breach or default unless expressly provided herein or in the waiver.
10. Signatures of the parties transmitted by facsimile shall be deemed binding. However,
each party agrees to submit their original signature to the other party within five (5) business
days after execution hereof.
11. This Amendment No. 1 may be executed in counterparts, each of which, when this
Amendment No. 1 has been signed by all the parties hereto, shall be deemed an original, and
such counterparts shall constitute one and the same instrument.
882/015610-0061 1 1
540839.02 a09/17/04 r,;
12. The person(s) executing this Amendment No. 1 on behalf of each of the parties hereto
represent and warrant that (i) such party is duly organized and existing, (ii) they are duly
authorized to execute and deliver this Amendment No. 1 on behalf of said party, (iii) by so
executing this Amendment No. 1 such party is formally bound to the provisions of this
Amendment No. 1, and (iv) the entering into this Amendment No. 1 does not violate any
provision of any other agreement to which such party is bound.
[End — Signature Page Follows]
882/015610-0061
540839.02 a09/17/04 12
IN WITNESS WHEREOF, Agency and Developer each hereby represents that it has read
this Amendment No. 1, understands it, and hereby executes this Amendment No. 1 to be
effective as of the day and year first written above.
Date: 12004
Date: 12004
"Developer"
CP DEVELOPMENT LA QUINTA, LLC,
a California limited liability company
By: Oliphant Family Trust
Its: Member
By:
Richard Oliphant
Its: Trustee
By: Oliphant Enterprises, Inc.
Its: Manager
By:
Richard Oliphant
Its: President
"Agency"
LA QUINTA REDEVELOPMENT AGENCY,
a public body, corporate and politic
Date: 12004 By:
Agency Chair
ATTEST:
June Greek, Agency Secretary
APPROVED AS TO FORM:
RUTAN & TUCKER, LLP
By:
M. Katherine Jenson, Agency Counsel
882/015610-0061
540839.02 a09/17/04 = , v, 1
EXHIBIT "A"
SCHEDULE OF PERFORMANCE
[See Following Pages]
882/015610-0061 r�
540839.02 a09/17/04 `, v 14
ATTACHMENT NO.20
SCHEDULE OF PERFORMANCE1
[See attached individual schedules for each of the (i) Sanctuary Villas Development, (ii) Suites
Hotel, (iii) Parcel 5 Residential Development and Parcel 7 Residential Development, (iv)
Medical Office/Surgical Facility, (v) Parcel 1 Restaurant and Parcel 2 Restaurant, and (vi)
Casitas Development
Developer shall have a thirty (30) day grace period for the completion of each of the tasks
hereinafter described. Agency shall not declare a default for Developer's failure to timely
complete any of the tasks described in this Schedule until such thirty (30) day grace period has
expired.
1 All days are calendar days in this Schedule of Performance.
882/015610-0061 1 ' 15
540839.02 a09/17/04
SCHEDULE OF PERFORMANCE FOR
SANCTUARY VILLAS DEVELOPMENT
(ALL PHASES OF DEVELOPMENT)
Item of Performance
Time for Completion
1.
Developer execution of DDA.
Within 7 days after Developer and Agency approve
final draft.
2.
Developer's submission of complete Site
On or before December 31, 2006.
Development Permit Application "SDPA,"
which will include:
• Detailed Site Plan
• Floor Plans and Layout
• Elevations
• Conceptual Landscaping
• Master Grading Plan*
• Tract Map*
3.
Review of SDPA by all applicable City**
Agency will use reasonable efforts to cause such
departments.
review within 21 days after Developer's submission of
SDPA.
4.
Agency response to Developer as to City
Within 7 days after receipt of final comments, but no
comments on SDPA.
later than 30 days after Developer's submission of
SDPA.
5.
Developer and City responses.
Developer will respond to any request within 7 days
and Agency will use reasonable efforts to cause City
to respond to any submission within 7 days.
6.
Agency publishes Notice of Public Hearing
Within 10 days after City responds to Developer's
before the Planning Commission.
comments in the preceding section.
7.
Planning Commission Public Hearing and
Approximately 10 days after first publication.
consideration of SDPA and Tract Map.
8
City Council consideration of Tract Map.*
Within 21 days after Planning Commission approval
if required).
9.
City's issuance of SDPA, Tract Map (if
Within 7 days after approval by both City Council and
applicable) and conditions.
Planning Commission as applicable).
10A
Developer's preparation of final grading
Within 180 days after City's issuance of SDPA and
plans and Design Development Drawings
Tract Map (if applicable).
for Sanctuary Villas Parcel 8.
lOB
Developer's preparation of final grading
Within 180 days after Developer's completion of
plans and Design Development Drawings
construction of Sanctuary Villas Parcel 8.
for Sanctuary Villas Parcel 9.
11 A.
Developer's submission of evidence of
Within 120 days after Developer's completion of
financing necessary to complete the Parcel
Design Development Drawings for Parcel 8 Sanctuary
8 Sanctuary Villas Component.
1 Villas Component.
882/015610-0061 p 16
540839.02 a09/17/04
Item of Performance
Time for Completion
11 A.
Developer's submission of evidence of
Within 120 days after Developer's completion of
financing necessary to complete the Parcel
Design Development Drawings for Parcel 9 Sanctuary
9 Sanctuary Villas Component.
Villas Component.
12.
Agency review and approval, approval with
Within 30 days after Agency's receipt of applicable
conditions, or denial of Developer's
evidence of financing.
evidence of financing for Parcel 8
Sanctuary Villas Component and Parcel 9
Sanctuary Villas Component.
13A.
Developer's submission of grading permit
Within 300 days after City's issuance of the SDPA.
and building permit applications for
Sanctuary Villas Parcel 8.
13B.
Developer's submission of grading permit
Within 180 days after Developer's completion of
and building permit applications for
Parcel 8 Sanctuary Villas Component.
Sanctuary Villas Parcel 9.
14A.
City's issuance of grading permit for
Within 56 days after City's receipt of grading permit
Sanctuary Villas Parcel 8.
application for Sanctuary Villas Parcel 8.
14B.
City's - issuance of grading permit for
Within 56 days after City's receipt of grading permit
Sanctuary Villas Parcel 9.
application for Sanctuary Villas Parcel 9.
15A.
City's issuance of building permit for
By the earlier of: (i) within 98 days after City's receipt
Sanctuary Villas Parcel 8.
of building permit application for Parcel 8 Sanctuary
Villas Component, which is 42 days after City's
issuance of grading permit for Sanctuary Villas Parcel
8, or ii on or before December 31, 2007.
15B.
City's issuance of building permit for
Within 98 days after City's receipt of building permit
Sanctuary Villas Parcel 9.
application for Parcel 9 Sanctuary Villas Component,
which is 42 days after City's issuance of grading
permit for Sanctuary Villas Parcel 9.
16A.
Developer commences construction of
Within thirty (30) days after City's issuance of
Parcel 8 Sanctuary Villas Component.
building permits for the Parcel 8 Sanctuary Villas
Component.
16B.
Developer commences construction of
Within thirty (30) days after City's issuance of
Parcel 9 Sanctuary Villas Component.
building permits for the Parcel 9 Sanctuary Villas
Component.
17A.
Developer's completion of Parcel 8
Within 30-36 months after City's issuance of final
Sanctuary Villas Component.
building permits for the Parcel 8 Sanctuary Villas
Component.
17B.
Developer's completion of Parcel 9
Within 30-36 months after City's issuance of final
Sanctuary Villas Component.
building permits for the Parcel 9 Sanctuary Villas
Component.
* In the event that a master grading plan and total parcel map for the entire Property are submitted with
the SDPA for the Suites Hotel, then no further master grading plan or tract map is required for the SDPA
for the Parcels included in this Schedule and City Council consideration shall not be required.
882/015610-0061 17
540839.02 a09/17/04
** Nothing herein shall be construed to limit the City's legislative authority, which City may exercise, in
City's sole and absolute discretion. In all cases where City action is required, Agency shall use
reasonable efforts to cause City to take such action in the time prescribed herein.
882/015610-0061 r 18
540839.02 a09/17/04 C,' 4 1
OUTSIDE DATES FOR CLOSING
OPTION A
Outside Date For Closing for Sanctuary Villas Parcel 8 and Sanctuary Villas Parcel 9: 365 days after
the Effective Date.
OPTION B
Parcel Closing Milestones
Sanctuary Villas Parcel 8 Within 180 days after the Developer's completion of the foundation for the
Suites Hotel.
Sanctuary Villas Parcel 9 Within 180 days after the City's issuance of building permits for the Parcel
8 SanctuaryVillas Component.
882/015610-0061 19
540839.02 a09/17/04
SCHEDULE OF PERFORMANCE FOR
SUITES HOTEL
Item of Performance
Time for Completion
1.
Developer execution of DDA.
Within 7 days after Developer and Agency
approve final draft.
2.
Developer and Agency execute Early Entry
Within 7 days after the Effective Date.
Agreement.
3.
Developer makes purchase election, and
Within 7 days after the Effective Date.
Agency and Developer open the Initial Escrow
or the Property Escrow as applicable).
4.
Agency provides Developer with (i) copies of
Within 30 days after the Effective Date.
environmental studies and reports regarding
the Property and (ii) the Preliminary Title
Report.
5.
Developer submission of complete Site
Within 180 days after Effective Date.
Development Permit Application "SDPA,"
which will include:
• Detailed Site Plan
• Floor Plans and Layout
• Elevations
• Conceptual Landscaping
• Master Grading Plan
• Tract Ma
6.
Review of SDPA by all applicable City*
Agency will use reasonable efforts to cause such
departments.
review within 21 days after Developer's submittal
receipt of SDPA.
7.
Agency response to Developer as to City
Within 7 days after Agency's receipt of City's
comments on SDPA.
final comments, but no later than 30 days after
Developer's submission of SDPA.
8.
Developer and City Responses.
Developer will respond to any request within 7
days and Agency will use reasonable efforts to
cause City to respond to any submission within 7
da s.
9.
Agency publishes Notice of Public Hearing
Within 10 days after City responds to Developer's
before the Planning Commission.
comments in the preceding section.
10.
Planning Commission Public Hearing and
Approximately 10 days after first publication.
consideration of SDPA and Tract Map.
11.
City Council consideration of Tract Map.
Within 21 days after Planning Commission
approval.
*Nothing herein shall be construed to limit the City's legislative authority, which City may excise, in
City's sole and absolute discretion. In all cases where City action is required, Agency shall use
reasonable efforts to cause City to take such action in the time prescribed herein.
882/015610-0061 r. 20
540839.02 a09/17/04 v: (;
Item of Performance
Time for Completion
12.
City's issuance of SDPA, Tract Map and
Within 7 days after City Council approval.
conditions.
13.
Developer's preparation of final grading plans
On or before September 21, 2004.
and Design Development Drawings for the
Suites Hotel and Seeley Drive.
14.
Developer's submission of (i) evidence of
Developer shall provide evidence of financing on
financing necessary to complete the Suites
or before August 30, 2004; and Developer shall
Hotel, and (iii) grading permit and building
submit grading and building permit applications
permit applications for the Suites Hotel and
on or before October 31, 2004.
Seeley Drive.
15.
Agency review and approval, approval with
Within 30 days after Agency's receipt of evidence
conditions, or denial of Developer's evidence
of financing.
of financing submitted in Item No. 14.
16.
City's issuance of grading permit for the Suites
Within 56 days after City's receipt of grading
Hotel Parcel, the Parcel on which Developer
permit application for the Suites Hotel Parcel, the
shall construct the first Phase of Development
Parcel on which Developer shall construct the first
of the Casitas Development and Seeley Drive.
Phase of Development of the Casitas
Development, and Seeley Drive.
17.
Developer's completion of first pavement lift
Within (30) days after Developer's installation of
and curbs and gutters of Seeley Drive.
the foundation for the Suites Hotel.
18.
City's issuance of building permits for the
Within 98 days after City's receipt of building
Suites Hotel and Seeley Drive.
permit application for the Suites Hotel and Seeley
Drive, which is 42 days after City's issuance of
grading permit for the Suites Hotel and Seeley
Drive.
19.
Developer commences construction of Suites
Within 30 days after Developer's receipt of
Hotel.
building permits for the Suites Hotel.
20.
Completion of Suites Hotel.
Before June 30, 2006, subject to the provisions of
Section 702 of the DDA.
21.
Developer completes final pavement lift of
Within one hundred eighty (180) days after
Seeley Drive.
Developer's completion of the Suites Hotel.
Outside Date for Closing for Suites Hotel Parcel, Landscape Parcel C, Landscape Parcel E, and the
Seeley Drive Parcel (under Option A or Option B): 365 days after the Effective Date.
882/015610-0061 21
540839.02 a09/17/04
r
1 J
SCHEDULE OF PERFORMANCE
FOR PARCEL 5 RESIDENTIAL DEVELOPMENT
AND PARCEL 7 RESIDENTIAL DEVELOPMENT
Item of Performance
Time of Completion
1.
Developer's execution of the DDA.
Within 7 days after Developer and Agency approve
final draft.
2.
Developer's submission of (i) evidence of
On or before December 31, 2005.
financing necessary to complete the Parcel 5
Residential Development and the Parcel 7
Residential Development, and (ii) complete
Site Development Permit Application
"SDPA," including:
• Detailed Site Plan
• Floor Plans and Layout
• Elevations
• Conceptual Landscaping
• Master Grading Plan
• Tentative Tract Ma
3.
Review of SDPA by all applicable City*
Agency will use reasonable efforts to cause such
departments.
review within 21 days after Developer's submission
of SDPA.
4.
Agency response to Developer as to City
Within 7 days after receipt of final comments, but no
comments on SDPA.
later than 30 days after Developer's submission of
SDPA.
5.
Developer and City Responses.
Developer will respond to any request within 7 days
and Agency will use reasonable efforts to cause City
to respond to any submission within 7 days
6.
Agency publishes Notice of Public Hearing
Within 10 days after City responds to Developer's
before the Planning Commission.
comments in the preceding Section.
7.
Planning Commission public hearing and
Approximately 10 days after first publication.
consideration of SDPA and Tentative Tract
Map.
8.
City Council consideration of Tentative
Within 21 days after Planning Commission approval.
Tract Map.
9.
City's issuance of SDPA, Tentative Tract
Within 7 days after City Council approval.
Map and conditions of approval
10.
Preparation of Grading Plans and Design
By the earlier of. (i) within 180 days after City's
Development Drawings for the Parcel 5
issuance of SDPA and Tentative Tract Map, or (ii) by
Residential Development and the Parcel 7
June 30, 2006.
Residential Development.
882/015610-0061 22
540839.02 a09/17/04 (? � J a
Item of Performance
Time of Completion
11.
Developer's submission of grading permit
Within 120 days after Developer's completion of
and building permit application for
Design Development Drawings.
backbone infrastructure for the Parcel 5
Residential Development and the Parcel 7
Residential Development.
12.
City's issuance of Grading Permit for the
Within 56 days after City's receipt of grading permit
Parcel 5 Residential Development and the
application.
Parcel 7 Residential Development.
13
City's issuance of building permit for
Within 98 days after City's receipt of Building Permit
backbone infrastructure for the Parcel 5
application, which is 42 days after City's issuance of
Residential Development and the Parcel 7
Grading Permit.
Residential Development.
14.
Developer's commencement of construction
Within 30 days following City's issuance of Building
of backbone infrastructure of the Parcel 5
Permits.
Residential Development and the Parcel 7
Residential Development.
15
Within 90 days after Developer's completion of
Developer's commencement of Construction
construction of the backbone infrastructure described
of the Parcel 5 Residential Development and
in Item 14 above, provided City has not delayed in
the Parcel 7 Residential Development.
issuing a building permit.
16
Developer's completion of construction of
Within 30 months following City's issuance of
the Parcel 5 Residential Development.
Building Permits for the Parcel 5 Residential
Development.
17.
Developer's completion of construction of
Within 18 months following City's issuance of
the Parcel 7 Residential Development.
Building Permits for the Parcel 7 Residential
Development.
*Nothing herein shall be construed to limit City's legislative authority, which City may exercise,
in City's sole and absolute discretion. In all cases where City action is required, Agency shall
use reasonable efforts to cause City to take such action in the time prescribed herein.
OUTSIDE DATES FOR CLOSING
OPTION A
Outside Date For Closing for Residential Parcel 5 and Residential Parcel 7: 365 days after the
Effective Date.
OPTION B
Outside Date For Closing for Residential Parcel 5 and Residential Parcel 7: 30 days after the
Developer's completion of the exterior walls and roof of the Suites Hotel.
882/015610-0061 23
540839.02 a09/17/04 �� [�
SCHEDULE OF PERFORMANCE FOR
MEDICAL OFFICE/SURGICAL FACILITY
(ALL PHASES OF DEVELOPMENT)
Item of Performance
Time for Completion
1.
Developer execution of DDA.
Within 7 days after Developer and Agency approve
final draft.
2A/B.
Developer's submission of complete Site
On or before December 31, 2005.
Development Permit Application for the
Parcel A Medical Office/Surgical Facility
Component and for the first and second
Phases of Development of the Medical
Office/Surgical Facility, "First/Second
MOB SDPA," which will include:
• Detailed Site Plan
• Floor Plans and Layout
• Elevations
• Conceptual Landscaping
• Master Grading Plan*
• Tract Map*
2C.
Developer's submission of complete Site
Within 90 days after City's issuance of building
Development Permit Application for the
permits for the first and second Phases of
third Phase of Development of the
Development of the Medical Office/Surgical
Medical Office/Surgical Facility, "Third
Facility.
MOB SDPA," which will include:
• Detailed Site Plan
• Floor Plans and Layout
• Elevations
• Conceptual Landscaping
• Master Grading Plan*
• Tract Map*
3A.
Review of First/Second MOB SDPA by
Agency will use reasonable efforts to cause such
all applicable City** departments.
review within 21 days after Developer's submittal of
First/Second MOB SDPA.
3B.
Review of Third MOB SDPA by all
Agency will use reasonable efforts to cause such
applicable City departments.
review within 21 days after Developer's submittal of
Third MOB SDPA.
4A.
Agency response to Developer as to City
Within 7 days after Agency's receipt of City's final
comments on First/Second MOB SDPA.
comments, but no later than 30 days after
Developer's submission of First/Second MOB
SDPA.
882/015610-0061 f..w 24
540839.02 a09/17/04
Item of Performance
Time for Completion
4B.
Agency response to Developer as to City
Within 7 days after Agency's receipt of City's final
comments on Third MOB SDPA.
comments, but no later than 30 days after
Developer's submission of Third MOB SDPA.
5.
Developer and City Responses.
Developer will respond to any request within 7 days
and Agency will use reasonable efforts to cause City
to respond to any submission within 7 days.
6A.
Agency publishes Notice of Public
Within 10 days after City responds to Developer's
Hearing for the First/Second MOB SDPA
comments regarding the First/Second MOB SDPA.
before the Planning Commission.
6B.
Agency publishes Notice of Public
Within 10 days after City responds to Developer's
Hearing for the Third MOB SDPA before
comments regarding the Third MOB SDPA.
the Planning Commission.
7A.
Planning Commission Public Hearing and
Approximately 10 days after first publication of
consideration of First/Second MOB
notice of the same.
SDPA and Tract Map.
7B.
Planning Commission Public Hearing and
Approximately 10 days after first publication of
consideration of Third MOB SDPA and
notice of the same.
Tract Map.
8A.
City Council consideration of Tract
Within 21 days after Planning Commission approval
Map.*
of First/Second MOB SDPA.
8B.
City Council consideration of Tract
Within 21 days after Planning Commission approval
Map. *
of Third MOB SDPA.
9A.
City's Issuance of First/Second MOB
Within 7 days after approval of First/Second MOB
SDPA Tract Map, if applicable.
SDPA by both Planning Commission and City
Council.
9B.
City's Issuance of Third MOB SDPA
Within 7 days after approval of Third MOB SDPA
Tract Map, if applicable.
by both Planning Commission and City Council.
10A.
Developer's preparation of final grading
Within 180 days after City's issuance of
plans and Design Development Drawings
First/Second MOB SDPA and Tract Map (if
for the Parcel A Medical Office/Surgical
applicable).
Facility Component and the first and
second Phases of Development of the
Medical Office/Surgical Facility.
10B.
Developer's preparation of final grading
Within 180 days after City's issuance of Third MOB
plans and Design Development Drawings
SDPA and Tract Map (if applicable).
for the third Phase of Development of the
Medical Office/Surgical Facility.
882/015610-0061 25
540839.02 a09/17/04 l.' j.4
Item of Performance
Time for Completion
11 A.
Developer's submission of evidence of
Within 120 days after Developer's completion of
financing necessary to complete the
Design Development Drawings for the Parcel A
Parcel A Medical Office/Surgical Facility
Medical Office/Surgical Facility Component and the
Component and the first and second
first and second Phases of Development of the
Phases of Development of the Medical
Medical Office/Surgical Facility.
Office/Surgical Facility and of grading
permit and building permit applications
for the Parcel A Medical Office/Surgical
Facility Component and the first and
second Phases of Development of the
Medical Office/Surgical Facility.
11 B.
Developer's submission of evidence of
Within 120 days after Developer's completion of
financing necessary to complete the third
Design Development Drawings for the third Phase of
Phase of Development of the Medical
Development of the Medical Office/Surgical
Office/Surgical Facility and of grading
Facility.
permit and building permit applications
for the third Phase of Development of the
Medical Office/Surgical Facility.
12A.
Agency's review and approval, approval
Within 30 days after Agency's receipt of the same.
with conditions or denial of Developer's
evidence of financing submittal in Item
11 A.
12B.
Agency's review and approval, approval
Within 30 days after Agency's receipt of the same.
with conditions or denial of Developer's
evidence of financing submittal in Item
11B.
13A.
City's issuance of grading permit for the
The later of (i) within 56 days after City's receipt of
Parcel A Medical Office/Surgical Facility
building permit application for first Phase of
Component and first Phase of
Development of the Medical Office/Surgical Facility
Development of the Medical
or (ii) upon Developer's completion of foundation
Office/Surgical Facility.
for Suites Hotel.
13B.
City's issuance of grading permit for
The later of (i) within 56 days after City's receipt of
second Phase of Development of the
building permit application for the second Phase of
Medical Office/Surgical Facility.
Development of the Medical Office/Surgical Facility
or (ii) upon Developer's completion of framing of
exterior walls of the Suites Hotel.
13C.
City's issuance of grading permit for the
The later of (i) within 56 days after City's receipt of
third Phase of Development of the
building permit application for the third Phase of
Medical Office/Surgical Facility.
Development of the Medical Office/Surgical Facility
or (ii) upon Developer's completion of exterior walls
and roof for the Suites Hotel.
882/015610-0061 26
540839.02 a09/17/04
yy w
Item of Performance
Time for Completion
14A.
City's issuance of building permit for
By the earlier of. (i) within 98 days after City's
Parcel A Medical Office/Surgical Facility
receipt of building permit application for the first
and first Phase of Development of the
Phase of Development of the Medical
Medical Office/Surgical Facility.
Office/Surgical Facility, which is 42 days after
issuance of grading permit for the first Phase of
Development of the Medical Office/Surgical
Facility, or ii on or before December 31, 2006.
14B.
City's issuance of building permit for
Within 98 days after City's receipt of building
second Phase of Development of the
permit application for the second Phase of
Medical Office/Surgical Facility.
Development of the Medical Office/Surgical
Facility, which is 42 days after issuance of grading
permit for the second Phase of Development of the
Medical Office/Surgical Facility.
14C.
City's issuance of building permit for
Within 98 days after City's receipt of building
third Phase of Development of the
permit application for the third Phase of
Medical Office/Surgical Facility.
Development of the Medical Office/Surgical
Facility, which is 42 days after issuance of grading
permit for the third Phase of Development of the
Medical Office/Surgical Facility.
15A.
Developer commences construction of
With thirty (30) days after City's issuance of
Parcel A Medical Office/Surgical Facility
building permits for the first Phase of Development
and first Phase of Development of the
of the Medical Office/Surgical Facility.
Medical Office/Surgical Facility.
15B.
Developer commences construction of
With thirty (30) days after City's issuance of
second Phase of Development of the
building permits for the second Phase of
Medical Office/Surgical Facility.
Development of the Medical Office/Surgical
Facility.
15C.
Developer commences construction of
With thirty (30) days after City's issuance of
third Phase of Development of the
building permits for the third Phase of Development
Medical Office/Surgical Facility.
of the Medical Office/Surgical Facility.
16A.
Developer's completion of Parcel A
Within 30-36 months after City's issuance of
Medical Office/Surgical Facility and the
building permits for Parcel A Medical
first Phase of Development of the Medical
Office/Surgical Facility Component and the first
Office/Surgical Facility.
Phase of Development of the Medical
Office/Surgical Facility.
16B.
Developer's completion of second Phase
Within 30-36 months after City's issuance of
of Development of the Medical
building permit for second Phase of Development of
Office/Surgical Facility.
the Medical Office/Surgical Facility Component.
16C.
Developer's completion of third Phase of
Within 30-36 months after City's issuance of
Development of the Medical
building permit for third Phase of Development of
Office/Surgical Facility.
1 the Medical Office/Surgical Facility Component.
* In the event that a master grading plan and total parcel map for the entire Property are submitted with
the SDPA for the Suites Hotel, then no further master grading plan or tract map is required for the SDPA
for any of the Parcels included in this Schedule and City Council consideration shall not required.
882/015610-0061 r 27
540839.02 a09/17/04 U t} O
** Nothing herein shall be construed to limit City's legislative authority, which City may exercise, in
City's sole and absolute discretion. In all cases where City action is required, Agency shall use
reasonable efforts to cause City to take such action in the time prescribed herein.
882/015610-0061-
�.,° :� 28
540839.02 a09/17/04
OUTSIDE DATES FOR CLOSING
OPTION A
Outside Date for Closing for Medical Office/Surgical Facility Parcel A, Medical Office/Surgical Facility
Parcel 10, Medical Office/Surgical Facility Parcel 11, and Medical Office/Surgical Facility Parcel 12:
365 days after the Effective Date.
OPTION B
Parcel
Outside Date for Closing
Medical Office/Surgical Facility Parcel A
Within 90 days after the Developer's completion of
and one of (i) Medical Office/Surgical Facility
the foundation for the Suites Hotel.
Parcel 10, (ii) Medical Office/Surgical Facility
Parcel 11, or (iii) Medical Office/Surgical
Facility Parcel 12
One of (i) Medical Office/Surgical Facility
Within 90 days after the Developer's completion of
Parcel 10, (ii) Medical Office/Surgical Facility
framing of all exterior walls of the Suites Hotel.
Parcel 11, or (iii) Medical Office/Surgical
Facility Parcel 12
The final unpurchased Parcel of the (i) Medical
Within 90 days after the Developer's completion of
Office/Surgical Facility Parcel 10, (ii) Medical
the exterior walls and roof of the Suites Hotel.
Office/Surgical Facility Parcel 11, and (iii)
Medical Office/Surgical Facility Parcel 12
882/015610-0061 29
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SCHEDULE OF PERFORMANCE FOR
PARCEL 1 RESTAURANT AND PARCEL 13 RESTAURANT
Item of Performance
Time for Completion
1.
Developer execution of DDA.
Within 7 days after Developer and Agency
approve final draft.
2A.
Developer's submission of complete Site
On or before December 31, 2005.
Development Permit Application for
Restaurant Parcel 1 "Parcel 1 SDPA,"
which will include:
• Detailed Site Plan
• Floor Plans and Layout
• Elevations
• Conceptual Landscaping
• Master Grading Plan*
• Tract Map*
2B.
Developer's submission of complete Site
Within 180 days after City's issuance of building
Development Permit Application for
permits for Restaurant Parcel 1.
Restaurant Parcel 13 "Parcel 13 SDPA,"
which will include:
• Detailed Site Plan
• Floor Plans and Layout
• Elevations
• Conceptual Landscaping
• Master Grading Plan*
• Tract Map*
3A.
Review of Parcel 1 SDPA by all
Agency will use reasonable efforts to cause such
applicable City** departments.
review within 21 days after Developer's submittal
of Parcel 1 SDPA.
3B.
Review of Parcel 13 SDPA by all
Agency will use reasonable efforts to cause such
applicable City departments.
review within 21 days after Developer's submittal
of Parcel 13 SDPA.
4A.
Agency response to Developer as to City
Within 7 days after Agency's receipt of City's
comments on Parcel 1 SDPA.
final comments on application, but no later than
30 days after Developer's submission of Parcel 1
SDPA.
4B.
Agency response to Developer as to City
Within 7 days after Agency's receipt of City's
comments on Parcel 13 SDPA.
final comments on application, but no later than
30 days after Developer's submission of Parcel 13
SDPA.
5.
Developer and City Responses.
Developer will respond to any request within 7
days and Agency will use reasonable efforts to
cause City to respond to any submission within 7
days.
882/015610-0061 30
540839.02 a09/17/04
Item of Performance
Time for Completion
6A.
Agency publishes Notice of Public
Within 10 days after City responds to Developer's
Hearing for the Parcel 1 SDPA before the
comments regarding the Parcel 1 SDPA.
Planning Commission.
6B.
Agency publishes Notice of Public
Within 10 days after City responds to Developer's
Hearing for the Parcel 13 SDPA before
comments regarding the Parcel 13 SDPA.
the Planning Commission.
7A.
Planning Commission's Public Hearing
Approximately 10 days after first publication of
and consideration of Parcel 1 SDPA and
notice of the same.
Tract Map.
7B
Planning Commission's Public Hearing
Approximately 10 days after first publication of
and consideration of Parcel 13 SDPA and
notice of the same.
Tract Map.
8A.
City Council's consideration of Tract Map
Within 21 days after Planning Commission
for Parcel 1.*
approval of the Parcel 1 SDPA.
8B.
City Council's consideration of Tract Map
Within 21 days after Planning Commission
for Parcel 13. *
approval of the Parcel 13 SDPA.
9A.
City's issuance of Parcel 1 SDPA and
Within 7 days after approval of Parcel 1 SDPA
Tract Map and conditions.
and Tract Map by both Planning Commission and
City Council.
9B.
City's issuance of Parcel 13 SDPA and
Within 7 days after approval of Parcel 13 SDPA
Tract Map and conditions.
and Tract Map by both Planning Commission and
City Council.
10A.
Developer's preparation of final grading
Within 180 days after City issues Parcel 1 SDPA,
plan and Design Development Drawings
Tract Map, and conditions.
for Restaurant Parcel 1.
10B.
Developer's preparation of final grading
Within 180 days after City issues Parcel 13
plan and Design Development Drawings
SDPA, Tract Map, and conditions.
for Restaurant Parcel 13.
11 A.
Developer's submission of (i) evidence of
Within 90 days after Developer's completion of
financing necessary to complete Parcel 1
Design Development Drawings for the Parcel 1
Restaurant, and (ii) grading and building
Restaurant.
permit applications for Restaurant Parcel
1.
11B.
Developer's submission of (i) evidence of
Within 20 days after Developer's completion of
financing necessary to complete Parcel 1
Design Development Drawings for the Parcel 13
Restaurant, and (ii) grading and building
Restaurant.
permit applications for Restaurant Parcel
13.
11 C.
Developer's submission of grading and
Within 180 days after Developer's completion of
building permit applications for
the Parcel 1 Restaurant.
Restaurant Parcel 13.
12A.
City's issuance of grading permit for
Within 56 days after City's receipt of building
Restaurant Parcel 1.
permit application for Restaurant Parcel 1.
882/015610-0061
540839.02 a09/17/04
31
Item of Performance
Time for Completion
12B.
City's issuance of grading permit for
Within 56 days after City's receipt of building
Restaurant Parcel 13.
permit application for Restaurant Parcel 13.
13A.
City's issuance of building permit for
Within 98 days after receipt of building permit
Parcel 1 Restaurant.
application for Parcel 1 Restaurant, which is 42
days after City's issuance of grading permit for
Restaurant Parcel 1.
13B.
City's issuance of building permit for
By the earlier of (i) within 98 days after receipt of
Parcel 13 Restaurant.
building permit application for Parcel 13
Restaurant, which is 42 days after City's issuance
of grading permit for Restaurant Parcel 13, or (ii)
on or before December 31, 2006.
14A.
Developer commences construction of
Within thirty (30) days after City's issuance of
Parcel 1 Restaurant.
building permits for Parcel 1 Restaurant.
14B.
Developer commences construction of
Within thirty (30) days after City's issuance of
Parcel 13 Restaurant.
building permits for Parcel 13 Restaurant.
15A.
Completion of Parcel 1 Restaurant.
Within 30-36 months after City's issuance of
building permits for Parcel 1 Restaurant.
15B.
Completion of Parcel 13 Restaurant.
Within 30-36 months after City's issuance of
building permits for the Parcel 13 Restaurant.
* In the event that a master grading plan and total parcel map for the entire Property are submitted with
the SDPA for the Suites Hotel, then no further master grading plan or tract map is required for the SDPA
for any of the Parcels included in this Schedule, and City Council consideration shall not be required.
* * Nothing herein shall be construed to limit the City's legislative authority, which City may exercise, in
City's sole and absolute discretion. In all cases where City action is required, Agency shall use
reasonable efforts to cause City to take such action in the time prescribed herein.
882/015610-0061 i u J 32
540839.02 a09/17/04
OUTSIDE DATES FOR CLOSING
OPTIONA
Outside Closing Date for Closing for Restaurant Parcel 1 and Restaurant Parcel 13: 365 days
after the Effective Date.
OPTION B
Parcel
Closing Milestones
Restaurant Parcel 1
Within 90 days after the Developer's completion
of the foundation for the Suites Hotel.
Restaurant Parcel 13
Within 90 days after the City's issuance of
building permits for Parcel 13 Restaurant.
882/015610-0061 33
540839.02 a09/17/04 1 ! 1
SCHEDULE OF PERFORMANCE FOR CASITAS DEVELOPMENT
(ALL PHASES OF DEVELOPMENT)
Item of Performance
Time for Completion
1.
Developer execution of DDA.
Within 7 days after Developer and Agency
approve final draft.
2.
Developer and Agency execute Early Entry
Within 7 days after the Effective Date.
Agreement .
3.
Developer makes purchase election, and
Within 7 days after the Effective Date.
Agency and Developer open the Initial
Escrow or the Property Escrow (as
applicable).
4.
Agency provides Developer with (i) copies of
Within 30 days after the Effective Date.
environmental studies and reports regarding
the Property and (ii) the Preliminary Title
Report
5.
Developer submission of complete Site
Within 180 days after Effective Date.
Development Permit Application "SDPA,"
which will include:
• Detailed Site Plan
• Floor Plans and Layout
• Elevations
• Conceptual Landscaping
• Master Grading Plan
• Tract Ma
6.
Review of SDPA by all applicable City`
Agency will use reasonable efforts to cause such
departments.
review within 21 days after Developer's
submittal receipt of SDPA.
7.
Agency response to Developer as to City
Within 7 days after Agency's receipt of City's
comments on SDPA.
final comments, but no later than 30 days after
Developer's submission of SDPA.
8.
Developer and City Responses.
Developer will respond to any request within 7
days and Agency will use reasonable efforts to
cause City to respond to any submission within 7
days.
9.
Agency publishes Notice of Public Hearing
Within 10 days after City responds to
before the Planning Commission.
Developer's comments in the preceding section.
10.
Planning Commission Public Hearing and
Approximately 10 days after first publication.
consideration of SDPA and Tract Map.
11.
City Council consideration of Tract Map.
Within 21 days after Planning Commission
approval.
*Nothing herein shall be construed to limit the City's legislative authority, which City may excise, in
City's sole and absolute discretion. In all cases where City action is required, Agency shall use
reasonable efforts to cause City to take such action in the time prescribed herein.
L� ll J
882/015610-0061 34
540839.02 a09/17/04
Item of Performance
Time for Completion
12.
City's issuance of SDPA, Tract Map and
Within 7 days after City Council approval.
conditions.
13A.
Developer's preparation of Design
On or before December 31, 2004.
Development Drawings for the first Phase of
Development of the Casitas Development.
13B.
Developer's preparation of Design
On or before June 30, 2005.
Development Drawings for the second Phase
of Development of the Casitas Development.
13C.
Developer's preparation of Design
On or before December 31, 2005.
Development Drawings for the third Phase of
Development of the Casitas Development.
14.
Developer's submission of evidence of
Within 20 days after Developer's completion of
available cash resources to complete the
Design Development Drawings for the first Phase
Casitas Development (all Phases of
of Development of the Casitas Development.
Development).
15.
Agency review and approval, approval with
Within 30 days after Agency's receipt of
conditions, or denial of Developer's evidence
evidence of financing.
of financing submitted in Item No. 14.
16.
Developer's submission of building permit
Within 120 days after Developer's completion of
applications for the first Phase of
Design Development Drawings for the first Phase
Development of the Casitas Development.
of Development of the Casitas Development.
17.
Developer's submission of building permit
Within 120 days after Developer's completion of
applications for the second Phase of
the first Phase of Development of the Casitas
Development of the Casitas Development.
Development.
18.
Developer's submission of building permit
Within 120 days after Developer's completion of
applications for the third Phase of
the second Phase of Development of the Casitas
Development of the Casitas Development.
Development.
19.
City's issuance of building permits for the
Within 56 days after City's receipt of building
first Phase of Development of the Casitas
permit applications for the first Phase of
Development.
Development of the Casitas Development.
20.
Developer commences construction of first
Within 30 days after Developer's receipt of
Phase of Development of the Casitas
building permits for the first Phase of
Development.
Development of the Casitas Development.
21.
City's issuance of building permits for the
Within 56 days after City's receipt of building
second Phase of Development of the Casitas
permit application for the second Phase of
Development.
Development of the Casitas Development.
22.
Developer commences construction of second
Within 30 days after Developer's receipt of
Phase of Development of the Casitas
building permits for the second Phase of
Development.
Development of the Casitas Development.
23.
City's issuance of building permits for the
Within 56 days after City's receipt of building
third Phase of Development of the Casitas
permit application for the third Phase of
Development.
I Development of the Casitas Development.
882/015610-0061 35
540839.02 a09/17/04
Item of Performance
Time for Completion
24.
Developer commences construction of third
Within 30 days after Developer's receipt of
Phase of Development of the Casitas
building permits for the third Phase of
Development.
Development of the Casitas Development.
25.
Completion of first Phase of Development of
Within 30-36 months after City's issuance of
the Casitas Development.
building permits for first Phase of Development
of the Casitas Development.
26.
Completion of second Phase of Development
Within 30-36 months after City's issuance of
of the Casitas Development.
building permits for second Phase of
Development of the Casitas Development.
27.
Completion of third Phase of Development of
Within 30-36 months after City's issuance of
the Casitas Development.
building permits for third Phase of Development
of the Casitas Development, but in no event later
than December 31, 2007.
Outside Date for Closing for Suites Hotel Parcel, Landscape Parcel C, Landscape Parcel E, and the
Seeley Drive Parcel (under Option A or Option B): 365 days after the Effective Date.
882/015610-0061 36
540839.02 a09/17/04 #-
� U
INDEMNIFICATION AGREEMENT
THIS INDEMNIFICATION AGREEMENT ("Indemnification Agreement") is made
and entered into as of , 2004, by and between CP DEVELOPMENT
LA QUINTA, LLC, a California limited liability company ("Center Point"), and the
LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic (the
"Agency"), with reference to the following Recitals.
RECITALS
A. Center Point and the Agency have entered into that certain Disposition and
Development Agreement dated December 18, 2003 (the "DDA"), pursuant to which, among
other things, (i) Agency has agreed to sell to Center Point, and Center Point has agreed to
purchase from Agency certain real property identified therein as the "Property", which is located
in the City of La Quinta, County of Riverside, State of California, and (ii) Center Point has
agreed to construct, complete, and operate on the Property a commercial project containing a
medical office/surgical facility, a development containing "sanctuary villas," a mid -price suites
hotel, a resort -style condominium/casitas development (the "Casitas Development"), two (2) sit-
down restaurants, and two (2) single-family residential developments (the "Residential
Component"), with forty (40) of the single-family homes restricted for sale to moderate -income
buyers at restricted sales prices, all as more particularly described in the DDA (collectively, the
"Project").
B. Center Point initially informed the Agency that the Residential Component would
be constructed by Ehline Development Co., a California corporation ("Ehline Development
Co."). As a result, the DDA permits Center Point to transfer and assign the Residential
Component to Ehline Development Co. or to an affiliated entity of Ehline Development Co. (an
"Affiliated Entity"). The term "Ehline" shall be used hereinafter to refer to, collectively, Ehline
Development Co. and the Affiliated Entities.
C. Center Point has now requested that the DDA be revised to, among other things,
omit Ehline as a permitted assignee/transferee of the Residential Component and to instead
permit the assignment/transfer of the Residential Component and also the Casitas Development
to Lennar Homes of California, Inc., a California corporation ("Lennar").
D. The Agency has prepared an amendment to the DDA ("Amendment No. I") that
includes the requested assignment/transfer revisions. The Agency has expressly conditioned its
approval of Amendment No. 1 on Center Point's execution of an indemnification agreement
substantially in the form hereof.
E. The parties hereto now wish to impose on Center Point the obligation to
indemnify the Agency, as more particularly defined in this Indemnification Agreement, against
any claims regarding the assignment/transfer revisions set forth in Amendment No. 1 or resulting
from the Agency's approval of Amendment No.1, or arising from Ehline's entry onto the
Property, or Ehline's or Center Point's obligations to third parties including but not limited to
those who have prepared plans or conducted work in furtherance of the Project.
882/015610-0061
541417.01 a09/17/04
�''' 37
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:
AGREEMENT
1. Indemnification by Center Point. Center Point hereby agrees that it shall
indemnify, defend, and hold harmless Agency and Agency's officers, officials, members,
employees, agents, consultants, and representatives, from and against any and all claims,
liabilities, damages, losses, suits, costs and expenses (including but not limited to expert witness
fees and reasonable attorneys' fees) of every kind, nature, and type asserted by any person or
entity arising out of the Agency's agreement, as set forth in Amendment No. 1, to revise the
assignment/transfer provisions set forth in the DDA, or resulting from the Agency's approval of
Amendment No. 1, or arising from Ehline's entry onto the Property, or Ehline's or Center Point's
obligations to third parties including but not limited to those who have prepared plans or
conducted work in furtherance of the Project, including, but not limited to, persons or entities
who have designed or prepared plans or conducted any other work related to the Project on
behalf of Ehline or Center Point.
Center Point's indemnification obligations herein are in addition to the indemnification
obligations contained in the DDA, and nothing herein is intended to amend or limit Center
Point's indemnification obligations set forth in the DDA. In the event of any conflict between
the indemnification obligations herein and those contained in the DDA, the indemnification
provisions which provide the greatest protection to the Agency shall prevail.
2. Non -liability of Agency Officers and Employees. No officer, official, member,
employee, agent, or representative of Agency shall be personally liable to Center Point, or any
successor or assign of same, in the event of any default or breach by Agency, or for any amount
which may become due to Agency, or any successor or assign of same, or for breach of any
obligation of the terms of this Indemnification Agreement.
3. Successors and Assigns. This Indemnification Agreement shall be binding upon
and shall inure to the benefit of the successors and assigns of the respective parties hereto.
4. Governing Law. This Indemnification Agreement shall be governed by and
construed in accordance with the laws of the State of California.
5. Further Assurances. The parties covenant and agree that they will execute such
other and further instruments and documents as are or may become necessary or convenient to
effectuate and carry out this Indemnification Agreement.
6. Authority of Signatories to Bind Principals. The persons executing this
Indemnification Agreement on behalf of their respective principals represent that (i) they have
882/015610-0061
541417.01 a09/17/04
,_ 38
been authorized to do so and that they thereby bind the principals to the terms and conditions of
this Indemnification Agreement and (ii) their respective principals are properly and duly
organized and existing under the laws of, and permitted to do business in, the State of California.
7. Inter^pretation. The paragraph headings of this Indemnification Agreement are for
reference and convenience only and are not part of this Indemnification Agreement. They have
no effect upon the construction or interpretation of any part hereof. The provisions of this
Indemnification Agreement shall be construed in a reasonable manner to effect the purposes of
the parties and of this Indemnification Agreement.
8. Attorneys Fees. In the event that a party to this Indemnification Agreement
brings an action against another party hereto by reason of the breach of any condition, covenant,
representation or warranty in this Indemnification Agreement, or otherwise arising out of this
Indemnification Agreement, the prevailing party in such action shall be entitled to recover from
the non -prevailing party expert witness fees, and its reasonable attorney's fees and costs.
Attorney's fees shall include attorney's fees on any appeal, and in addition a party entitled to
attorney's fees shall be entitled to all other reasonable costs for investigating such action,
including the conducting of discovery.
9. Counterparts. This Indemnification Agreement may be executed in any number
of counterparts, each of which when so executed and delivered shall be deemed to be an original
and all of which counterparts taken together shall constitute but one and the same instrument.
[END — SIGNATURE PAGE FOLLOWS]
882/015610-0061
541417.01 a09/17/04
39
IN WITNESS WHEREOF, this Indemnification Agreement has been executed by the
parties as of the date set forth above.
"Center Point"
CP DEVELOPMENT LA QUINTA, LLC,
a California limited liability company
By: Oliphant Family Trust
Its: Member
Dated: By:
Richard R. Oliphant
Its: Trustee
Dated:
Dated:
ATTEST:
Agency Secretary
APPROVED AS TO FORM:
RUTAN & TUCKER, LLP
By
M. Katherine Jenson, Agency Counsel
882/015610-0061
541417.01 a09/17/04
By: Oliphant Enterprises, Inc.
Its: Manager
Bv:
Richard R. Oliphant
Its: President
"Agency"
LA QUINTA REDEVELOPMENT AGENCY,
a public body, corporate and politic
Bv:
r --
Thomas Genovese
Title: Executive Director
40
063
AGENDA CATEGORY:
BUSINESS SESSION: �J
COUNCIL/RDA MEETING DATE: September 22, 2004 CONSENT CALENDAR:
ITEM TITLE: STUDY SESSION:
Consideration of an Appropriation of $1,300,000
from the 2004 Low -Mod Bond Issue to Underwrite PUBLIC HEARING:
the Remaining Relocation Costs Associated with
the Vista Dunes Mobile Home Park
RECOMMENDATION:
Approve the appropriation of $1,300,000 from the 2004 Low -Mod Bond Issue
(Account No. 248-000-290.00-00) to fund the relocation costs associated with the
Vista Dunes Mobile Home Park.
FISCAL IMPACT:
The initial $3,300,000 relocation budget was to be funded through a combination
of Low- and Moderate -Income Housing Fund tax increment revenue ($2,700,000)
and proceeds of the 2004 La Quinta Financing Authority Housing Bond issue
($600,000). As a result, the Agency was only able to fund $2,700,000 in
relocation costs but now that the 2004 Low -Moderate Bond issue was completed
in June 2004, the Agency now has the financial resources to fund the total
relocation budget. Staff is requesting the remaining appropriation be made and
since relocation costs may be greater than what was budgeted in December 2003,
staff is also requesting the total budget be increased by an additional $700,000 to
$4,000,000.
BACKGROUND AND OVERVIEW:
On December 2, 2003 the Agency Board approved a Purchase and Sale Agreement
to acquire the Vista Dunes Mobile Home Park. As part of that action the Agency
Board also reviewed and approved the coach acquisition, resident relocation, and
project design and development budget. This budget included $3,300,000 for
mobile coach acquisition and resident relocation expenses. Relocation activities
were initiated in April, 2004; to date, settlements have been achieved with 60 of
the 92 households. The current total relocation budget is projected to be
$3,303,000. However, with the ever increasing Coachella Valley housing costs,
S:\CityMgr\STAFF REPORTS ONLY\B 5 - VDMHP.doc � L
the final relocation costs may exceed this amount. Thus, staff is requesting that
the relocation budget be increased by $700,000 to cover potential additional
expenses.
FINDINGS AND ALTERNATIVES:
Alternatives available to the Agency Board include:
1. Approve the appropriation of $1,300,000 from the 2004 Low -Mod Bond
Issue (Account No. 248-000-290.00-00) to fund the relocation costs
associated with the Vista Dunes Mobile Home Park; or
2. Do not approve the appropriation of $1,300,000 from the 2004 Low -Mod
Bond Issue (Account No. 248-000-290.00-00) to fund the relocation costs
associated with the Vista Dunes Mobile Home Park; or
3. Provide staff with alternative direction.
Respectfully submitted,
tYscar Ord, Interim
Community Development Director
Approved for submission:
Thomas P. Genovese, Executive Director
S:\CityMgr\STAFF REPORTS ONLY\B 5 - VDMHP.doc 2
COUNCIL/RDA MEETING DATE:
September 22, 2004
Consideration of a Request by Building Horizons to
Enter into an Affordable Housing Agreement for
the 1 1 th Year Funding By and Between the La
Quinta Redevelopment Agency and Building
Horizons and the Appropriation of an Additional
$40,000
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Approve an Affordable Housing Agreement with Building Horizons for 1 1 th year
funding, the appropriation of an additional $40,000 from Redevelopment Project
Area No.1 Low- and Moderate -Income Housing Fund (245-0000-290-00-00) to
fund requested building costs, and authorize the Executive Director to sign the
necessary documents to execute the Agreement.
FISCAL IMPLICATIONS:
The program, as outlined in the Agreement (Attachment 1), will require an
expenditure of up to $250,000. The Agreement, however, provides that the
Agency be repaid $85,000 at the close of escrow when the two single-family
dwellings are sold. The remaining $165,000 will be made available in the form of a
Second Trust Deed for the home buyers. Currently, $210,000 has been budgeted
for the Building Horizons program. To implement the Agreement as proposed, an
additional $40,000 will need to be appropriated from the Redevelopment Project
Area No.1 Low- and Moderate -Income Housing Fund.
BACKGROUND AND OVERVIEW:
In 1994, the Agency entered into a Disposition and Development Agreement (DDA)
with Building Horizons to facilitate the construction and sale of two single-family
homes to low or moderate -income households. Subsequent to this DDA, with the
exception of last year, each year the Agency has entered into an Affordable
Housing Agreement to provide assistance with the program. To date, 22 homes
have been built and sold to low- or moderate -income households.
ubu
The proposed current year Agreement provides that the Agency would fund a
$250,000 loan to Building Horizons. They will use these funds to purchase two
lots in the Cove, and fund a portion of the design and construction costs related to
building two single-family homes. La Quinta High School students participate in
the design, construction and sale of these units as part of the school's curriculum.
The homes will then be sold to one low- and one moderate -income household.
The 2002-2003 program featured second trust deed loans of $40,000 and
$85,000 for the moderate- and low-income dwellings, respectively. Building
Horizons has requested the Agency increase the second trust deed loan amounts to
$95,000 for the low-income and $70,000 for the moderate -income households, in
order to facilitate increased sales prices due to greater land and construction costs.
This increase is reflected in the attached Agreement. Home sale proceeds will
repay $85,000 of the Agency loan, with the remaining Agency loan funds used to
underwrite the Second Trust Deed Loans.
FINDINGS AND ALTERNATIVES:
Alternatives available to the Agency Board are:
1. Approve an Affordable Housing Agreement with Building Horizons for 11 th
year funding, the appropriation of an additional $40,000 from
Redevelopment Project Area No.1 Low- and Moderate -Income Housing Fund
(245-0000-290-00-00) to fund requested building costs, and authorize the
Executive Director to sign the necessary documents to execute the
Agreement; or
2. Do not approve an Affordable Housing Agreement with Building Horizons for
11 th year funding, the appropriation of an additional $40,000 from
Redevelopment Project Area No.1 Low- and Moderate -Income Housing Fund
(245-0000-290-00-00) to fund requested building costs, and do not
authorize the Executive Director to sign the necessary documents to execute
the Agreement; or
3. Provide staff with alternative direction.
Respectfully submitted,
Oscar rci, Interim
Community Development Director
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachment: 1. Affordable Housing Agreement 2004-2005
f 13
j{♦
C+�JV
2004 - 2005 AFFORDABLE HOUSING AGREEMENT
BY AND BETWEEN
LA QUINTA REDEVELOPMENT AGENCY, AGENCY
AND
BUILDING HORIZONS, DEVELOPER
GAMDOMDocuments\Building Horizons\Bui[dHorizAgree04-05.rtf
069
Table of Contents
I. [1001 SUBJECT OF AGREEMENT........................................................... 1
A. [101 Purpose of Agreement.......................................................... 1
B. [ 1021 The Redevelopment Plan ..................................................... 1
C. [ 1031 The Site............................................................................ 1
D. [1041 Parties to the Agreement..................................................... 2
1. [ 1051 The Agency.................................................................... 2
2.0061 1061 The Developer................................................................. 2
3.0071 Prohibition Against Change in Ownership, Management
and Control of Developer and Prohibition Against
Transfer of the Site........................................................2
E. [ 1081 Representations by the Developer ......................................... 3
[2001 AGENCY ASSISTANCE................................................................ 4
A. [201 ] Acquisition and Construction Financing ................................. 4
B. [202) Conditions Precedent to the Funding of Acquisition Financing.. 4
C.
[2031 Home Buyer Loan and Second Trust Deed ............................. 5
D.
[2041 Acquisition of the Site..........................................................
5
E.
[2051 Escrow..............................................................................
6
F.
[2061 Conveyance to Eligible Persons and Families ..........................
7
II. [3001
DEVELOPMENT OF THE SITE .......................................................
7
A.
[301 ] Development of the Site ......................................................
7
1.[3021 Scope of Development.....................................................
7
2.[3031 Site Plan.........................................................................
8
3.[304) Review and Approval of Plans, Drawings, and
Related Documents......................................................
8
4.[305] Cost of Development.......................................................
9
5.[3061 Construction Schedule .....................................................
9
6.[307] Indemnity, Bodily Injury and Property Damage Insurance ......
9
7.[308] City and Other Governmental Agency Permits ....................10
8.[3091 Rights of Access............................................................10
9.[310] Local, State and Federal Laws..........................................10
10.[3111 Anti-Discrimination........................................................10
11.[3121 Taxes and Assessments................................................1 1
B.
[3131 Prohibition Against Transfer of the Site, the Buildings or
Structures Thereon and Assignment of Agreement.............1
1
C.
[3141 Right of the Agency to Satisfy Other Liens on the Site(s)
After Title Passes...........................................................1
1
D.
[3151 Certificate of Completion...................................................1
1
IV. [4001 USE OF THE SITE......................................................................12
A. [401) Affordable Housing...........................................................12
B. [4021 Uses In Accordance with Redevelopment Plan;
Nondiscrimination......................................................� .�.19
G:\WPDOCS\Documents\Building Horizons\Bui[dHorizAgree04-05.rtf '7
,_L1)
C. [4031 Effect of Violation of the Terms and Provisions of this
Agreement After Completion of Construction ....................20
D. [4041 Maintenance of the Site ........................................... ........21
V. [5001 DEFAULTS AND REMEDIES.........................................................21
A. [5011 Defaults -- General.............................................................21
B. [5021 Legal Actions....................................................................21
1. [5031 Institution of Legal Actions.............................................21
2. [5041 Applicable Law..............................................................22
3. [5051 Acceptance of Service of Process....................................22
C. [5061 Rights and Remedies Are Cumulative...................................22
D. [5071 Inaction Not a Waiver of Default ............................ ...........22
E. [5081 Remedies and Rights of Termination....................................22
1. [5091 Damages......................................................................22
2. [5101 Specific Performance.....................................................23
3. [51 11 Right of Termination by the Developer .............................23
4. [5121 Termination by the Agency.............................................23
F. [5131 Remedies of the Parties for Default After Closing of
the Acquisition Escrow...................................................24
1. [5141 Termination and Damages..............................................24
VI. [6001` GENERAL PROVISIONS...............................................................24
A [6011 Notices, Demands and Communications Between Parties .......24
B. [6021 Conflicts of Interest...........................................................24
C. [6031 Enforced Delay; Extension of Times of Performance ..............24
D. [6041 Non -Liability of Officials and Employees of the Agency
and the Developer.........................................................25
E. [6051 Entire Agreement, Waivers.................................................25
VII. [7001 TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCY ................26
GAMDOMDocuments\Building Horizons\Bui[dHorizAgree04-05.rtf
ATTACHMENTS
Attachment No. 1
Scope of Development
Attachment No. 2
Schedule of Performance
Attachment No. 3
Developer Promissory Note
Attachment No. 4
Developer Deed of Trust
Attachment No. 5
Declaration of Conditions, Covenants and Restrictions
Attachment No. 6
Certificate of Completion
Attachment No. 7
Maximum Sales Price Example
Attachment No. 8
Certificate of Proposed Transferee
Attachment No. 9
Notice of Intent to Transfer
Attachment No. 10Request for Approval of Proposed Transferee
Attachment No. 11 Assumption Agreement
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AFFORDABLE HOUSING AGREEMENT
This Affordable Housing Agreement ("Agreement") is entered into by and
between LA QUINTA REDEVELOPMENT AGENCY, a public body corporate and
politic (the "Agency") and BUILDING HORIZONS, a California nonprofit public
benefit corporation (the "Developer") . The Agency and the Developer (collectively
referred to as the "Parties") hereby agree as follows:
I. [1001 SUBJECT OF AGREEMENT
A. [ 101 ] Purpose of Agreement
The purpose of this Agreement is to effectuate the Redevelopment
Plan (as hereinafter defined) for the La Quinta Redevelopment Project No. 1 (the
"Project") by providing for the improvement of certain property situated within the
La Quinta Redevelopment Project Area No. 1 of the Project (the "Project Area"), by
assisting in the financing of the acquisition and development of two parcels (the
"Site") situated within the Project Area, the construction of a single-family home on
each parcel, and the long-term maintenance of such housing at an affordable
housing cost for persons and households -of low and moderate -income, all as more
fully described in this Agreement. The Agency financial assistance in this
Agreement shall be utilized to effectuate a portion of the Agency's overall
affordable housing program pursuant to the requirements of California Health and
Safety Code Section 33334.2 to expend twenty percent (20%) of its increment
funds to improve, increase and preserve the community's supply of low- and
moderate housing. The acquisition and development of the Site and the occupancy
of the units as developed by households of limited incomes all as provided in this
Agreement are in the vital and best interests of the City of La Quinta (the "City")
and the health, safety and welfare of its residents, and in accord with the public
purposes and provisions of applicable state and local laws and requirements under
which the Project has been undertaken.
B. [1021 The Redevelopment Plan
The Redevelopment Plan for Project Area No. 1 (the "Redevelopment
Plan") was approved and adopted by Ordinance No. 43 of the City Council of the
City of La Quinta on November 29, 1983 and amended by Ordinance No. 258 on
December 20, 1994 and Ordinance No. 264 on March 7, 1995; said ordinance as
amended and the Amended Redevelopment Plan are incorporated herein by
reference.
C. [ 1031 The Site
The "Site" shall consist of two parcels of real property within the
Project Area in the City of La Quinta, County of Riverside. The Site shall be
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acquired by the Developer. A maximum of two (2) detached, single-family homes
will be developed on the Site (one on each parcel) in accordance with the "Scope
of Development" and by the times set forth in the "Schedule of Performance,"
which are attached hereto as Attachment Nos. 1 and. 2, respectively, and
incorporated herein by reference.
Any material change, as reasonably determined by the Agency, in the
Scope of Development (Attachment No. 1) or in the approved site plan which
affects the size, quality, or type of development proposed for one or more of the
parcels shall require the written approval of the Agency, which approval may be
contingent upon the review and renegotiation of all of the economic and financial
terms of this Agreement and such other matters as the Agency shall deem
appropriate.
D. [ 1041 Parties to the Agreement
1. [ 1051 The Agency
The Agency is a public body, corporate and politic, exercising
governmental functions and powers and organized and existing under Chapter 2 of
the Community Redevelopment Law of the State of California, Division 24 of the
California Health and Safety Code, the principal office of the Agency is located at
78-495 Calle Tampico, La Quinta, California 92253, or such other address as
Agency shall hereafter designate in writing to Developer.
"Agency", as used in this Agreement, includes the La Quinta
Redevelopment Agency and any and all assignees of or successors to its rights,
powers and responsibilities.
2. [1061 The Developer
The Developer, Building Horizons, is a California nonprofit public
benefit corporation. The principal office and mailing addresses of the Developer for
purposes of this Agreement is P.O. Drawer 10320, Indio, California 92202.
By executing this Agreement, each person signing on behalf of
the Developer warrants and represents to the Agency that the Developer has the
full power and authority to enter into this Agreement, that all authorizations
required to make this Agreement binding upon the Developer have been obtained,
and that the person or persons executing this Agreement on behalf of the
Developer are fully authorized to do so.
Whenever the term "Developer" is used in this Agreement, such
term shall include any and all nominees, assignees, or successors in interests as
herein provided. j
GAMDOMDocuments\Building Horizons\BuildHorizAgree04-05.rtf
3. [1071 Prohibition Against Change in Ownership, Management
and Control of Developer and Prohibition Against Transfer
of the Site
The qualifications and identity of the Developer are of particular
interest to the Agency. It is because of these qualifications and identity that the
Agency has entered into this Agreement with the Developer. Consequently, no
person, whether a voluntary or involuntary successor of Developer shall acquire any
rights or powers under this Agreement nor shall the Developer assign all or any part
of this Agreement or the Site without the prior written approval of the Agency. A
voluntary or involuntary sale or transfer of any interest in the Developer of the Site
prior to the issuance of a Certificate of Completion for the Improvements with
respect to such Site shall be deemed to constitute an assignment or transfer for the
purposes of this Section 107, and the written approval of the Agency shall be
required prior to effecting such an assignment or transfer. Any purported transfer,
voluntarily or by operation of law, except with the prior written consent of the
Agency, shall render this Agreement absolutely null and void and shall confer no
rights whatsoever upon any purported assignee or transferee. Prior to the issuance
of a Certificate of Completion for the Improvements, the Developer shall not, except
as permitted by this Agreement, assign or attempt to assign this Agreement or any
rights or duties herein, nor make any total or partial sale, transfer, conveyance, or
assignment of the whole or, any part of the Site or the Developer Improvements
thereon, without the prior written approval of the Agency.
Notwithstanding any other provision. of this Agreement to the
contrary, Agency approval of an assignment or this Agreement or transfer of the
Site or any interest therein shall not be required in connection with the conveyance
or dedication of any portion of the Site to the City of La Quinta or other appropriate
governmental agency, including public utilities, where the granting of such
easements permits or facilitates the development of the Site.
This Section 107 shall become inapplicable for each Site as to
which the Agency has issued a Certificate of Completion pursuant to Section 316 of
this Agreement.
E. [ 1081 Representations by the Developer
The Developer represents and warrants to the Agency as follows:
1. The Developer is duly established and in good standing under
the laws of the State of California and has duly authorized,
executed and delivered this Agreement and any and all other
agreements and documents required to be executed and
delivered by the Developer in order to carry out, give effect to,
L
GAMDOMDocuments\Building Horizons\BuildHorizAgree04-05.rtf
'J
and consummate the transactions contemplated by this
Agreement. This Agreement is enforceable against the
Developer in accordance with its terms.
2. The Developer does not have any contingent obligations or
contractual agreements which could adversely affect the ability
of the Developer to carry out its obligations hereunder.
3. There are no pending or, so far as is known to the Developer,
threatened, legal proceedings to which the Developer is or may
be made a party or to which it or any of its property is or may
become subject, which have not been fully disclosed in the
material submitted to the Agency, which could adversely affect
the ability of the Developer to carry out its obligations
hereunder.
4. There is no action or proceeding pending or, to the Developer's
best knowledge, threatened, looking toward the dissolution or
liquidation of the Developer and there is no action or proceeding
pending or, to the Developer's best knowledge, threatened by
or against the Developer which could affect the validity and
enforceability of the terms of this Agreement, or adversely
affect the ability of the Developer to carry out its obligations
hereunder.
5. The Developer has, and will as required by its obligations
hereunder, dedicate, allocate and otherwise make available,
sufficient. financial and other resources to perform its obligations
under this Agreement.
Each of the foregoing items 1 to 5, inclusive, shall be deemed to be an
ongoing. representation and warranty and shall survive the close of
escrow for the Site(s). The Developer shall advise the Agency in
writing if there is any change pertaining to any matters set forth or
referenced in the foregoing items 1 to 5, inclusive.
II. [2001 AGENCY ASSISTANCE
The "Agency Assistance" shall be comprised of two components: (1)
acquisition and construction financing, and (2) second trust deed assistance
for the low or moderate income buyer.
A. [2011 Acquisition and Construction Financing
(1) Agency shall. provide financing in a total amount not to exceed
GAWPDOCS\Documents\Building Horizons\BuildHorizAgree04-05.rtf
of Two Hundred and Fifty Thousand Dollars ($250,000) for the
acquisition of both parcels of the Site and the complete
construction of both housing units by Developer pursuant to the
terms of the Scope of Development (Attachment No. 1), the
Schedule of Performance (Attachment No. 2) and the Developer
Promissory Notes and Developer Deed of Trusts (Attachments
Nos. 3 and 4, attached hereto and incorporated herein by this
reference);
Each parcel shall have a separate Developer Promissory Note
and Developer Deed of Trust;
(iii) Agency Funds for each Developer Promissory Note in an
amount not to exceed $125,000 for each of the housing units
shall be dispersed directly to escrow for the acquisition costs
portion and the remaining amount shall be disbursed according
to a combination of a construction schedule and invoice
documentation to be approved by the Agency Executive
Director;
(iii) The Developer Promissory Note for each property of the Site
shall bear no interest and shall be due and payable upon the
sale of the corresponding lot to an Eligible Person or Family as
defined in Section 401.
B. [2021 Conditions Precedent to the Funding of Acquisition Financing
Prior to and as conditions to funding any portion of the Developer
Promissory Note, the Developer shall complete each of the following
by the respective times established therefore in the Schedule of
Performance (Attachment No. 2):
1. The Developer shall not be in default of this Agreement;
2. The Developer provides to the Executive Director insurance
certificates conforming to Section 308 of this Agreement;
3. The Developer shall have executed and deposited with escrow
for delivery to the Agency the Developer Promissory Note for
each lot (Attachment No. 3);
4. The Developer shall have executed and deposited with escrow
for recordation and delivery to the Agency the Declaration of
Conditions, Covenants and Restrictions concerning the use of
and maintenance of the Site for each lot (Attachment No. 5)
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and the Developer Deed of Trust for each lot; and
The foregoing items numbered 1 to 5, inclusive, together constitute
the "Conditions Precedent to the Agency funding of the acquisition portion of the
Developer Promissory Note."
C. [2031 Home Buyer Loan and Second Trust Deed
Home Buyer Assistance funds shall be in the form of a promissory
note ("Buyer Promissory Note") secured by a second trust deed ("Buyer Second
Trust Deed") to assure the affordability of the housing unit to low and moderate
income buyers as defined in Section 401 hereof. The amount of second trust deed
funds available shall be determined at the time of qualifying the proposed low or
moderate income buyer of the unit. The final amount shall be approved by the
Executive Director in compliance with the Agency Board's goals and policies for its
affordable housing program.
The basic form of the Buyer Promissory Note and the Buyer Second
Trust Deed shall be that form currently approved for use by the Agency for its
affordable housing program at the time of the sale of the units to the buyers. The
form may need revision at a staff level to be current with Fannie Mae, HUD or
other government or lender requirements. Basic terms of the Buyer Promissory
Note shall include: (1) zero percent interest; (ii) 30-year term; (iii) no payments due
unless sale to a nonqualified buyer triggers payment under equity share provision;
(iv) assumability to a qualified buyer, and (v) full credit of all payments at end of
term if all conditions, covenants and restrictions have been followed.
The, Agency Assistance has been funded from the Agency's Low and
Moderate Income Housing Fund. Accordingly, Developer acknowledges and agrees
that the use of the Site shall be subject to all of the income and affordability
restrictions set forth in this Agreement, and the Declaration of Covenants,
Conditions and Restrictions (Attachment No. 5).
D. [2041 Acquisition of the Site
The Developer will acquire a fee simple marketable interest to the Site.
The cost of the Developer to acquire each parcel, including consideration payable
to owners, relocation benefits or assistance, escrow charges, premiums for title
insurance and other closing costs, appraisal fees, preliminary title reports,
reasonable attorneys fees, and other related charges shall be approved in advance
by the Executive Director and included in the site cost calculation as allowable
costs to be advanced under the Developer Promissory Note dispersement schedule
as approved by the Executive Director.
GAWPDOMDocuments\Building Horizons\BuildHorizAgree04-05.rtf ri
E. [205] Escrow
The Developer agrees to open an escrow or escrows (the "Acquisition
Escrows)") with Fidelity National Title Company, Escrow Division, or with another
mutually agreeable escrow company (the "Escrow Agent"), by the time established
therefore in the Schedule of Performance (Attachment No. 2). This Agreement
constitutes the lenders escrow instructions for the financing of the Site acquisition
and a duplicate original of this Agreement shall be delivered to the Escrow Agent
upon the opening of the Acquisition Escrow. The Escrow Agent is hereby
empowered to act under this Agreement, and the Escrow Agent, upon indicating
within five (5) days after the opening of the Acquisition Escrow its acceptance of
the provisions of this Section 205, in writing, delivered to the Agency and the
Developer, shall carry out its duties as Escrow Agent hereunder.
The Agency shall pay into the Acquisition Escrow the total amount of
the purchase price for each lot in the Site and the following fees, charges and costs
for each lot promptly after the Escrow Agent has notified the Agency of the total
amount of such purchase price, fees, charges and costs, but not earlier than ten
(10) days prior to the scheduled date for closing the Acquisition Escrow:
1. The Escrow fee; and
2. Cost of drawing the grant deed;
3. Recording fees;
4. Notary fees;
5. The title insurance policy; and
6. Any transfer tax and any state, county or city documentary
stamps.
The Escrow Officer shall notify the Agency when all outstanding
documents including the grant deed to the Developer, the Developer Trust Deed
and the Declaration of Conditions Covenants and Restrictions have executed and
submitted to Escrow by the applicable party. The Agency shall provide the funds
pursuant to the Developer Promissory Note directly to Escrow within three (3)
business days of the notice by Escrow that all other contingencies to the closing
have been met and the above documents are ready to record.
The Escrow Agent is authorized to utilize the Agency funds provided
pursuant to the Developer's Promissory Note for the above acquisition costs on the
condition of the immediate recording of the Developer's Deed of Trust (Attachment
No. 4) and the Conditions, Covenants and Restrictions (Attachment No. 5) after
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recording of the grant deed vesting title in the Developer's name.
All funds received in this Acquisition Escrow shall be deposited by the
Escrow Agent, with other escrow funds of the Escrow Agent in an interest -earning
general escrow account or accounts with any state or national bank doing business
in the State of California. Such funds may be transferred to any other general
escrow account or accounts. All disbursements shall be made by check of the
Escrow Agent.
If this Acquisition Escrow has not closed within three working days of
the receipt by Escrow of the Agency funds then said funds shall be returned to the
Agency unless written authorization to retain the funds is provided by the Agency
Executive Director.
Any amendment to these lender's escrow instructions shall be in
writing and signed by the Agency. At the time of any amendment, the Escrow
Agent shall agree to carry out its duties as Escrow Agent under such amendment.
The liability of the Escrow Agent in the capacity of escrow holder with
respect to the Agency is limited to performance of the obligations imposed under it
under this Section 205 of this Agreement.
F. [2061 Conveyance to Eligible Persons and Families
At such time as the Developer conveys each parcel of the Site to
Eligible Persons and Families, it shall assure that the Conditions, Covenants and
Restrictions (Attachment No. 5) remain of second seniority to the lien of any
financing, and that the Second Deed of Trust is recorded in a second lien position,
behind the lien securing purchase money financing. The conveyances of lots shall
be accomplished by grant deed which sets forth the affordability and
nondiscrimination provisions in the form to be approved by the Agency Executive
Director and Agency Counsel prior to transfer of property to Eligible Person or
Family.
II. [3001 DEVELOPMENT OF THE SITE
A. [3011 Development of the Site
1. [3021 Scope of Development
Each parcel of the Site shall be developed as a detached, single-
family housing unit as provided in the Scope of Development (Attachment No. 1).
The development of the Site shall include both public improvements and private
improvements on the Site and public improvements off -site required in the normal
course of City review by the City associated with the development of the, Site
GAWPDOCS\Documents\Building Horizons\BuildHorizAgree04-05.rtf 3 0
(collectively, the "Improvements").
Upon close of the Acquisition Escrow, the Developer shall
commence and complete construction of the Improvements for each individual lot
of the Site by the respective times established therefore in the Schedule of
Performance (Attachment No. 2).
The Scope of Development (Attachment No. 1) shall include any
plans and specifications submitted to the City and/or Agency for approval, and
shall incorporate or show compliance with all mitigation measures.
2. [3031 Site Plan
By the time set forth therefore in the Schedule of Performance
(Attachment No. 2), the Developer shall prepare and submit to the City for its
approval a Site Plan and related documents which conform to requirements of the
City and which contain the overall plan for development of the Site in sufficient
detail to enable the City to evaluate the proposal for conformity to the requirements
of the La Quinta Municipal Code and this Agreement. The Site shall be developed
as established in this Agreement and such documents, except as changes may be
mutually agreed upon between the Developer and the Agency. Any such changes
shall be within the limitations of the Scope of Development (Attachment No. 1).
The landscaping and finish grading plans shall be prepared by a
professional landscape architect or registered civil engineer who may be the same
firm as the Developer's architect or civil. engineer.
During the preparation of all drawings and plans, staff of the
City and the Agency and the Developer shall hold regular progress meetings to
coordinate the preparation of, submission to, and review of drawings, plans and
related documents by the City. The staff of City and the Agency and the
Developer shall communicate and consult informally as frequently as is necessary
to insure that the formal submittal of any documents to the Agency can receive
prompt and speeding consideration.
3. [3041 Review and Approval of Plans, Drawings, and Related
Documents
The Agency and the City shall have the right of planning,
including plan check, review of all plans and submissions, including any changes
therein.
During each stage of the processing of plans for the
Improvements, the Agency and the City shall have the right to require additional
G:\WPDOCS\Documents\Building Horizons\BuildHorizAgree04-05.rtf , r,
information and shall advise the Developer if any submittal of plans or drawings is
not complete or not in accordance with City/Agency procedures. If the Agency or
the City determines that such a submittal is not complete or not in accordance with
procedures, such tender shall not be deemed to constitute a submittal for purposes
of satisfying the Schedule of Performance (Attachment No.2).
If the Developer desires to make any substantial changes in the
construction plans after their approval by the Agency and the City, the Developer
shall submit the proposed change to the Agency and the City for their approval. If
the construction plans, as modified by the proposed change, conform to the
requirements of this Section 305 and the Scope of Development (Attachment No.
1), the Agency and the City will approve the proposed change and notify the
Developer in writing within thirty (30) days after submission to the Agency and the
City.
4. [3051 Cost of Development
All costs for planning, designing, and constructing the
Improvements shall be borne exclusively by the Developer. The Developer shall
also bear all costs related to discharging the duties of the Developer set forth in
this Agreement. The Developer assumes the responsibility to construct, and shall
let contracts for or cause to be constructed, all off -site public improvements
developed pursuant to this Agreement, substantially in conformity with procedures
used by the Agency when competitive bidding is deemed to be required. The
Developer shall be responsible for all fees associated with development of the
Improvement, including, but not limited to, school facilities fees and impact fees.
5. [3061 Construction Schedule
The Developer shall commence and complete the Improvements
by the respective times established therefor in the Schedule of Performance
(Attachment No. 2).
6. [3071 Indemnity, Bodily Injury and Property Damage Insurance
The Developer shall defend, assume all responsibility for and
hold the Agency and the City, and their respective officers, agents and employees,
harmless from all claims or suits for, and damages to, property and injuries to
persons, including accidental death (including attorneys fees and costs), which may
be caused by any of the Developer's activities under this Agreement, whether such
activities or performance thereof be by the Developer or damage shall accrue or be
discovered before or after termination of this Agreement. The Developer shall take
out and maintain during the life of this Agreement a comprehensive liability policy
in the amount of One Million Dollars ($1,000,000) combined single limit policy,
r�
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including contractual liability, as shall protect the Developer, the City, and the
Agency from claims for such damages.
Coverage shall be primary and not contributing with any policy
or coverage maintained by or obtained by the Agency, and an appropriate
endorsement shall so state. The policy shall contain a waiver of subrogation.
Insurance coverage furnished by the Developer pursuant to this Section 308 shall
conform to this Section 308 and shall pertain to all activities on the Site and
adjacent public rights -of -way surrounding the Site and all work on off -site public
improvements.
Developer shall furnish or cause to be furnished to the Agency a
certificate of insurance from the insurer evidencing compliance with this Section
308 and providing that the insurer shall not change or modify the policy without
thirty (30) days' prior written notice to Agency. In the alternative, Developer may
show proof of a certificate of consent to self -insure issued by the Director of
Industrial Relations according to California Labor Code Section 3800.
The Developer additionally agrees to and shall save the Agency
and the City and their officers, employees and agents harmless from and assume all
responsibility for any and all liability or responsibility for damage, costs losses, or
suit arising in any manner from the approval of this Agreement or the development
and activities conducted pursuant to this Agreement. This obligation and
indemnification shall constitute a covenant running with the land throughout the
life of the Redevelopment Plan.
7. [308) City and Other Governmental Agency Permits
Before commencement of construction, or development of any
buildings, structures or other works of improvement upon the Site or in connection
with any off -site improvement, the Developer shall, at its own expense, secure or
cause to be secured any and all permits which may be required by the City or any
other governmental agent affected by such construction, development or work. It
is understood that the Developer's obligation is to pay all necessary fees and to
timely submit to the City final drawings with final corrections to obtain building
permit; the Agency will, without obligation to incur liability or expense therefor, use
its best efforts to expedite issuance of building permits and certificates of
occupancy for construction that meet the requirements of the City Code.
8. [3091 Rights of Access
For purpose of assuring compliance with this Agreement,
representatives of the Agency and the City shall have the right of access to the
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8 3
Site without charges or fees, at normal business hours during the period of this
Agreement for the purposes of this Agreement, including, but not limited to, the
inspection of the work being performed in- constructing the Improvements, so long
as they comply with all safety rules. Such representatives of the Agency or of the
City shall be those who are so identified in writing by the Executive Director of the
Agency. The Agency shall hold the Developer harmless from any bodily injury or
related damages arising out of the activities of the Agency and the City as referred
to in this Section 310.
9. [3101 Local, State and Federal Laws
The Developer shall perform under this Agreement and carry out
its performance under this Agreement, including without limitation the construction
of the Improvements, in conformity with all applicable federal and state laws and
local ordinances, including all applicable federal and state labor standards, as to the
Site, provided, however, Developer and its contractors, successors, assigns,
transferees, and lessees are not waiving their rights to contest any such laws, rules
or standards.
10. [31 1) Anti -Discrimination
Pursuant to Section 33435 and 33050 of the California
Community Redevelopment Law, the Developer for itself and its successors and
assigns, agrees, that in the construction of Improvements on the Site or other
performance under this Agreement, the Developer will not discriminate against any
employee or applicant for employment because of sex, marital status, race, color,
religion, ancestry, or national origin.
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1 1. [3121 Taxes and Assessments
After the Agency Conveyance the Developer shall pay prior to
delinquency all real estate taxes and assessments on the Site so long as the
Developer retains any interest thereon. Prior to the Developer Conveyance, the
Developer shall remove or have removed any levy or attachment made on any of
the Site or any part thereof, or assure the satisfaction thereof within a reasonable
time but in any event prior to said sale or transfer. Notwithstanding the above, the
Developer shall have the right to contest the validity or amounts of any tax,
assessment, or encumbrance available to the Developer in respect thereto.
B. [3131 Prohibition Against Transfer of the Site, the Buildings or
Structures Thereon and Assignment of Agreement
Except as to the sale of any home to an owner -occupant in
accordance with this Agreement, the Developer shall not, except as may be
expressly permitted by this Agreement, without prior approval of the Agency, make
any total or partial sale, transfer, conveyance of, or enter into any assignment or
ground lease of or refinance the whole or any part of the Site or of the buildings or
structures on the Site. This prohibition shall not be deemed to prevent the granting
of temporary or permanent easements or permits to facilitate the development of
the Site or to prohibit or restrict the sale of "Restricted Units" to "Eligible Persons
or Families" (as defined in Section 401) in conformity with Section 401 of this
Agreement.
C. [3141 Right of the Agency to Satisfy Other Liens on the Site(s) After
Title Passes
After the Agency Conveyance and prior to the completion of
construction, and after the Developer has had written notice and has failed after a
reasonable time, but in any event not less than forty-five (45) days, to challenge,
cure, adequately bond against, or satisfy any liens or encumbrances on the Site
which are not otherwise permitted under this Agreement, the Agency shall have
the right but no obligation to satisfy any such liens or encumbrances.
Notwithstanding the above, the Developer shall have the right to contest the
validity or amounts of any tax, assessment, or encumbrance available to the
Developer in respect thereto.
D. [3151 Certificate of Completion
Promptly after the completion of all of the Improvements and their sale
to Eligible Persons or Families (as defined in Section 401 hereof) in conformity with
this Agreement (as determined by the Executive Director of the Agency), upon the
written request of the Developer relating only to those Site as to which
construction has been completed in accordance with this Agreement the Agency
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shall furnish the Developer with the Certificate of Completion (in the form attached
hereto as Attachment No. 6) which evidences and determines the satisfactory
completion of the construction, development and sale to an Eligible Person or
Family, as to any single-family home, pursuant to the provisions and covenants
specified in this Agreement, the Redevelopment Plan and the California Community
Redevelopment Law.
The issuance and recordation of a Certificate of Completion
(Attachment No. 6) with respect to the Improvements shall not supersede, cancel,
amend or limit the continued effectiveness of any obligations relating to the
maintenance, or uses, or payment of monies, or any other obligations, except for
the obligation to complete construction of the Improvements as of the time of the
issuance of such applicable certificate.
If the Agency refuses or fails to furnish a Certificate of Completion
after written request from the Developer, the Agency shall, within forty-five (45)
days of the written request, provide the Developer with a written statement of the
reasons the Agency refused or failed to furnish such Certificate of Completion.
Upon issuance of a Certificate of Completion (Attachment No. 6) for
the Improvements, construction of such Improvements as to any single-family
home shall be deemed to have been completed in conformity with this Agreement.
The Certificate of Completion (Attachment No. 6) is not a notice of completion as
referred to in Section 3093 of the California Civil Code. The issuance of a
Certificate of Completion shall not affect the continued effectiveness of the
Developer Deed of Trust (Attachment No. 4) and the Declaration of Conditions,
Covenants and Restrictions (Attachment No. 5) recorded pursuant to this
Agreement.
IV. [4001 USE OF THE SITE
A. [401 ] Affordable Housing
1. Number of Units.
Developer shall develop two (2) detached, single-family homes
(the "Restricted Units") within the Project Area and shall develop all on -site and off- .
site public improvements connected therewith, all as described and set forth in the
Scope of Development (Attachment No. 1). Developer shall restrict each of the
units for sale to one (1) Low and one (1) Moderate Income Household pursuant to
the applicable income and affordability provisions contained -herein. The Developer
further covenants and agrees that the above -referenced occupancy, ownership and
affordability requirements shall bind and be enforceable against the Site for the
period of forty-five (45) years commencing with the acquisition of each respective
parcel by the Developer with the simultaneous recording of the Conditons,
G:\WPDOCS\Documents\Building Horizons\BuildHorizAgree04-05.rtf 686
Covenants and Restrictions (Attachment No. 5).
2. Definitions.
(a) "Affordable Housing Cost" shall be that purchase price
which would result in maximum monthly housing payments for a thirty (30) year
mortgage for that portion of the purchase price which is to be paid in the form of
loan proceeds under currently. prevailing mortgage loan rates or the interest rate of
any below -market mortgage program for which such purchaser has obtained a first
trust deed loan, for the low or moderate income group calculated pursuant to
Health and Safety Code Section 50052.5, which sets forth the following formula:
Lower Income Households - whose gross incomes exceed the
maximum income for very low income households and do not exceed seventy
percent (70%) of the area median income adjusted for family size, the product of
thirty percent (30%) times seventy percent (70%) of the area median income
adjusted for family size appropriate for the unit. In addition, for any low income
household that has a gross income that equals or exceeds seventy percent (70%)
of the area median income adjusted for family size, it shall be optional for any state
or local funding agency to require that affordable housing cost not exceed thirty
percent (30%) of the gross income of the household.
Moderate Income Households - not less than twenty-eight
percent (28%) of the gross income of the household, nor more than the product of
thirty-five percent (35 %) times the greater of one hundred ten percent (1 10%) of
area median income adjusted for family size appropriate for the Affordable Unit, or
the gross income of the household for households earning greater than one hundred
percent 0 10%) and not more than ,one hundred twenty percent (120%) of the area
median income adjusted for family size.
(b) "Affordability Period" shall be forty-five (45) years from
the date of transfer to an Eligible Person or Family.
(c) "Eligible Person or Family" shall mean any person or
family who meets the income qualifications for Low or Moderate Income
Households.
(d) "Lower Income Household" shall mean a household
earning not greater than eighty percent (80%) of Riverside County median income,
as determined by the United States Department of Housing and Urban Development
from time to time, as set forth in Health and Safety Code Section 50093.
(e) "Moderate Income Household" shall mean a household
earning not greater than one hundred twenty percent (120%) of Riverside County
median income, as determined by the United States Department of Housing "and
GAWPDOMDocuments\Building Horizons\BuildHorizAgree04-05.rtf Q
Urban Development from time to time, as set forth in Health and Safety Code
Section 50093.
(f) "Owner" shall mean Developer and any successor in
interest of Developer to any lot of the Site except where a provision of this
Agreement expressly excludes Developer from the definition of owner.
(g) "Proposed Transferee" shall mean a person or family
determined to be an Eligible Person or Family to whom the Developer or any
successor Owner desires and proposes to Transfer a Restricted Unit.
(h) "Purchase Housing Cost" or an Eligible Person or Family
purchasing a Restricted Unit shall include all of the following associated with that
Restricted Unit, estimated or known as of the date of their proposed sale of the
Restricted Unit:
(i) Principal and interest on a mortgage loan including
any rehabilitation loans, and any loan insurance fees associated therewith.
Property taxes and assessments.
(iii) Fire and Casualty insurance covering replacement
value of property improvements.
(iv) Any homeowner association fees.
Monthly housing cost of a purchaser shall be an average of estimated costs for the
next twelve 0 2) months.
(i) "Restricted Unit" shall mean a dwelling unit, which shall
be a single-family residence, subject to the restrictions of this Agreement
(including, without limitation, the Declaration of Conditions, Covenants and
Restrictions (Attachment No. 5)).
(j) "Sales Price" shall mean all sums paid by a purchaser to a
seller for, or in conjunction with, the acquisition of a Restricted Unit, including the
purchase price designated in any purchase agreement, consideration for personal
property and all other costs and fees paid by the purchaser to or for the benefit of
the seller.
(k) "Transfer" shall mean any sale, assignment, conveyance,
lease or transfer, voluntary or involuntary, of any interest in a Restricted Unit.
Without limiting the generality of the foregoing, Transfer shall include (i) a transfer
by devise, inheritance or intestacy to a party who does not meet the definition of
Eligible Person or Family; (ii) a life estate; (iii) creation of a joint tenancy interest;
GAMDOMDocuments\Building Horizons\BuildHorizAgree04-05.rtf 683
(iv) a gift of all or any portion of a Restricted Unit; or (v) any voluntary conveyance
of a Restricted Unit. Transfer shall not include transfer to a spouse in a dissolution
proceeding; however any subsequent Transfer shall be subject to this restriction.
(1) "Transferee" shall mean any natural person or entity who
obtains ownership or possessory rights in a Restricted Unit pursuant to a Transfer.
3. Sales of Restricted Units. Developer agrees that Developer shall
sell each Restricted Unit to an Eligible Person or Family at an Affordable Housing
Cost (the "Developer Conveyance") and that during the Affordability Period each
subsequent resale of a Restricted Unit by the then -Owner thereof shall be to an
Eligible Person or Family at an Affordable Housing Cost. Developer agrees that the
Conditions, Covenants and Restrictions (Attachment No. 5) giving effect to the
foregoing restriction shall be recorded against each lot of the Site concurrently with
the Acquisition Escrow. Developer agrees to commence to market each Restricted
Unit not later than the completion of construction of each Restricted Unit; each
Restricted Unit shall be sold to an Eligible Person or Family prior to issuance of a
Certificate of Completion as to any such Restricted Unit for purposes of Section
322 hereof.
For purposes of satisfying the requirement that all of the Restricted
Units shall be occupied by Eligible Persons or Families: (a) an individual or family
who qualifies as an Eligible Person or Family at the time he or she first takes title to
a Restricted Unit will be deemed an Eligible Person or Family as long as he or she
continues to hold title to such Restricted Unit even though the Eligible Person or
Family subsequently ceases to meet the income or other requirements of an Eligible
Person or Family, and (b) when an Owner releases title to a Restricted Unit, such
unit will be considered as occupied by an Eligible Person or Family if it is held
vacant and available for such occupancy until title is transferred to another Eligible
Person or Family, at which time the status of the new Owner as an Eligible Person
or Family is to be determined.
4. Restrictions on Transfer by Sale of the Restricted Property or
Any Restricted Unit.
(a) For the duration of the Affordability Period, Developer, for
itself and any subsequent Owner, hereby subjects the Site to certain restrictions
and limits the price at which Developer or any other Owner may sell and/or resell
the Site and the persons to whom Developer or any other Owner may sell the Site.
(b) DEVELOPER AND ANY OTHER OWNER UNDERSTANDS
THAT THE DETERMINATION OF THE SALES PRICE CAN BE MADE ONLY AT THE
TIME OF THE PROPOSED TRANSFER, TAKING INTO CONSIDERATION INTEREST
RATES, PROPERTY TAXES AND OTHER FACTORS THAT CANNOT BE
ACCURATELY PREDICTED AND THAT THE SALE PRICE PERMITTED HEREU,NDERn
4
GAWPDOCS\Documents\Building Horizons\BuildHorizAgree04-05.rtf V
MAY NOT INCREASE OR DECREASE IN THE SAME MANNER AS OTHER SIMILAR
REAL PROPERTY WHICH IS NOT ENCUMBERED BY THIS RESTRICTION.
DEVELOPER AND ANY OTHER OWNER FURTHER ACKNOWLEDGE THAT, AT ALL
TIMES IN SETTING THE SALES PRICE, THE PRIMARY OBJECTIVE OF THE
AGENCY AND THIS AGREEMENT IS TO PROVIDE HOUSING TO ELIGIBLE
PERSONS OR FAMILIES AT AFFORDABLE HOUSING COST. THE SALES PRICE
MAY BE LESS THAN OTHER SIMILAR PROPERTIES WHICH HAVE NO
RESTRICTIONS.
Developer's Initials
(c) Transfer of a Restricted Unit. Developer and any
successor Owner may transfer a Restricted Unit only in strict accordance with the
provisions of this Agreement. Specifically, during the Affordability Period, Owner
may transfer a Restricted Unit (i) only to an Eligible Person or Family and (ii) only if
the Purchase Housing Cost does not exceed Affordable Housing Cost for the Eligible
Person or Family; and (iii) only if the Transfer has previously been approved in
writing by the Agency.
In order to comply with this Subsection 4(c), Developer and any
successor Owner must calculate the Affordable Housing Cost for the Proposed
Transferee of the Restricted Unit in accordance with the definition set forth in
Subsection 2(a) of this Section 401. After calculating the Affordable Housing Cost
for the Proposed Transferee, the Owner must ensure that the sum of the Sales
Price and all costs listed in the definition of Purchase Housing Cost set forth in
Subsection 2 of Section 401 does not exceed that Affordable Housing Cost. The
Calculation of the Sales Price under this Subsection 4(c) is illustrated by example in
Attachment No. attached hereto.
(d) In the event that
after a good faith effort as
defined in
the Buyer Promissory Note,
the successor
Owner is unable to obtain
an Eligible
Person or Family to transfer
the Restricted
Unit, then after the required notice to
and approval by the Agency
Executive Director
the owner may sell the
Restricted
Unit to a noneligible party
subject to the
equity share provisions of
the Buyer
Promissory Note and the
Covenants, Conditions and Restrictions
would be
released.
(e) Notwithstanding anything to the contrary in this Section
401, at close of the Developer Conveyance Escrow transferring the Restricted Unit
from the Developer to the Proposed Transferee (the "Initial Owner"), the Initial
Owner shall execute a Buyer's Promissory Note as approved by the Executive and
Agency Counsel which Promissory Note shall be secured by a Second Deed of
Trust. The Buyer's Promissory Note shall be non -interest bearing. The principal
amount shall be equal to the amount of the Agency Assistance necessary for the
GAMDOMDocuments\Building Horizons\BuildHorizAgree04-05.rtf
Individual or Family to qualify for the Lender's loan and ensure the affordability
requirements are met as approved by the Executive Director. in accordance with the
Agency's affordable housing program policies. The Note Amount shall be due and
payable according to its terms including any applicable equity sharing provision.
However, should the Initial Owner transfer the Restricted Unit to an Eligible Person,
Family at Affordable Housing Cost, the Transferee shall assume the Developer
Promissory Note (Attachment No. 3) and Agency shall extend the due date of the
Note Amount until the next Transfer of the Restricted Unit. The foregoing
provisions will apply to every successive Transfer during the Affordability Period.
5. Process to Complete Transfer by Sale of Restricted Units. Upon
the Transfer by sale of a Restricted Unit, the following procedures shall apply:
(a) Notice to City: Owner shall send to the Agency in care
of the La Quinta Housing Department (or its successor), at P.O. Box 1504, La
Quinta, California 92253, the forms attached hereto as Attachment Nos. 9 and 10
fully completed and executed by the Owner and the Proposed Transferee (the
"Notice of Intent to Transfer" and "Approval Request").
(b) Qualification of Proposed Transferee. No Transfer shall
occur unless and until determination is made based on the Certificate in the form of
Attachment No. 8 attached hereto ("Certificate") and attachments thereto, that the
Proposed Transferee (i) intends to occupy the Restricted Unit as the Proposed
Transferee's principal residence and (ii) is an Eligible Person or Family. Each
Proposed Transferee shall submit a Certificate to the Developer certifying its intent
with regard to the occupancy of the Restricted Unit and as to the truth and
accuracy of all information supplied as to the Gross Income (calculated as set forth
in 25 Cal. Code of Regs., Section 6914) of the Proposed Transferee ("Proposed
Transferee's Certificate"). Developer or subsequent owner shall certify pursuant to
Attachment No. 8 hereof the information provided on the Proposed Transferee's
Certificate pursuant to direction on that Certificate. Developer or subsequent
owner shall be entitled to rely on the information on the Proposed Transferee's
Certificate and attachments thereto in making the determination required by this
subsection 5(b) unless the Developer or subsequent owner has knowledge of, or a
reasonable basis for belief as to the inaccuracy or falsehood of the Proposed
Transferee's Certificate.
(c) The Sales Price for the Restricted Unit shall not exceed
the maximum price at which the Purchase Housing Cost to be paid by the Proposed
Transferee would not exceed Affordable Housing Cost. The calculation of the
Sales Price under this subsection is illustrated by example in Attachment No. 7
attached hereto. However, in determining Affordable Housing Cost, the family size
of the Proposed Transferee shall be deemed to be 2 persons in the case of a 1
bedroom, 3 persons for a 2 bedroom, 4 persons for a 3 bedroom, or 5 persons for
a 4 bedroom Restricted Unit. If the actual family size of the Proposed Transferee is ,f-,
GAWPDOCS\Documents\Building Horizons\BuildHorizAgree04-05.rtf r
larger, then the actual family size shall be used.
(d) Certificates from Parties. With respect to each sale of a
Restricted Unit, Developer or subsequent owner shall submit to the Agency, not
later than four (4) weeks prior to close of escrow on the sale of a Restricted Unit, a
certificate that (1) the Developer or subsequent owner has made the affirmative
determinations required by Section 4(a) above and (ii) the Sales Price conforms
with Section 4(b) above. The Developer or subsequent owner shall concurrently
submit to the Agency the Proposed Transferee's Certificate and all attachments
thereto and all other documents or material with regard to information required by
Sections 4(a) and/or (b) above, whether or not relied on by the Developer. Further,
the Developer or subsequent owner and Proposed Transferee each shall certify in
writing, in a form acceptable to the Agency, that the Transfer shall be closed in
accordance with, and only with, the terms of the sales contract and other
documents submitted to and approved by the Agency and that all consideration
delivered by the Proposed Transferee to Developer or subsequent owner has been
fully disclosed to the Agency. The written certificate shall also include a provision
that, in the event a Transfer is made in violation of the terms of this Agreement or
false or misleading statements are made in any documents or certificate submitted
to the Agency for its approval of the Transfer, the Agency shall have the right to
file an action at law or in equity to seek termination and/or rescission of the sales
contract and/or declare the sale void, notwithstanding the fact that the Transfer
may have closed and become final as between Developer or subsequent owner and
its Transferee. In the event Developer for the initial transfer or subsequent owner
for each following transfer fails to comply with Sections 4(a) or 4(b) above, any
costs, liabilities or obligations incurred by the Developer or subsequent owner and
its Transferee for the return of any monies paid or received or for any costs and
legal expenses, shall be borne Jointly and severally by the Developer and its
transferee and such parties shall hold the City and Agency harmless and reimburse
their expenses, legal fees and costs for any action and City and/or Agency take in
enforcing the terms of this Section 401.
(e) Execution of Promissory Note and Second Deed of Trust.
Notwithstanding anything to the contrary in this Agreement, at close of Escrow of
the sale of the Housing Unit from the Developer to the Buyer, the Buyer shall
execute a Buyer Promissory Note which shall be secured by a Second Deed of
Trust. Said Second Deed of Trust shall be subordinate to any mortgage(s) obtained
by the Owner for the purpose of securing funds to be applied to the Sales Price of
the Housing Unit. The Buyer Promissory Note shall be non -interest bearing. The
principal amount of the Promissory Note shall be an amount equal to the amount
actually given as cash plus an Agency Equity Share Amount which becomes
applicable only in the event that the Buyer is unable after good faith. efforts to find
an Eligible Person or Family to transfer the home at Affordable Housing Cost. In
the event that the Buyer has provided the Agency with evidence of their good faith
efforts then Agency may approve the sale to a nonqualified buyer and release the
GAMDOMDocuments\Building Horizons\BuildHorizAgree04-05.rtf '
covenants by receiving in addition to the cash amount originally provided the
additional Agency Equity Amount as provided under the terms of the Buyer
Promissory Note.
So long as the Transferee purchasing the Housing Unit from the
Owner is an Eligible Person or Family and the Sale of the Housing Unit is made at a
price which is not in excess of Affordable Housing Cost, the Transferee shall
assume the obligations of the Owner under the Promissory Note and Second Deed
of Trust to repay the Agency Equity pursuant to the Promissory Note by execution
of an assumption agreement in the form set forth as Attachment No. 11 of this
Agreement, together with other written documentation satisfactory to the Agency,
and Agency shall extend the due date of the Agency Equity pursuant to the Note
Amount until the next Transfer of the Housing Unit by said Transferee. At such
next Transfer, the Agency will again extend the due date of the Agency Equity
pursuant to the Note Amount if the Sale or Transfer complies with the
requirements of this Section. So long as each Transferee from the Owner and each
subsequent Owner: (1) is an Eligible Person or Family, (2) acquires the Housing
Unit at an Affordable Housing Cost, and (3) assumes the obligations of the
predecessor Owner as aforesaid; then the Agency agrees to extend the due date of
the Agency Equity pursuant to the Note Amount and the transferring Owner shall
not be required to pay the Agency Equity potion of the Note Amount upon transfer
of the Housing Unit.
The Agency Equity payment requirement is intended as a penalty
against the Owner, to capture a portion of the equity in the Restricted Property for
the benefit of the Agency/Holder, in the event that the Owner makes a sale of the
Restricted Property to a Buyer that is not an Eligible Person or Family. This equity
recapture requirement is intended to be a cumulative remedy, together with all
other remedies available to the Agency/Holder to compensate for the removal of
the affordable housing covenants of the Grant Deed and this Agreement on the
Housing Unit, to compensate the Agency for the administrative costs of operating
the housing program of the Agency and to provide funds to the Agency to further
assist low and moderate income persons in the provision of housing. In the event
the equity recapture provisions of the Promissory Note are found by a court or
administrative agency of competent jurisdiction to be in contravention of law or
administrative regulation, the Applicable Percentage shall be reduced to the
maximum percentage allowable by applicable law or administrative regulation, or
may be otherwise modified by judicial decree or order so as to comply with
applicable law.
(f) Written Consent of Agency Required Before Transfer. During
the Affordability Period the Restricted Property or the Restricted Unit, as the case
may be, and any interest therein, shall not be conveyed by any Transfer except
with the express written consent of the Agency, which consent shall be given only
if the Transfer is consistent with the Agency's goal of creating, preserving,
GAMDOMDocuments\Building Horizons\BuildHorizAgree04-05.rtf r
93
maintaining and protecting housing in the City of La Quinta for Eligible Persons and
Families and shall be in accordance with the provisions of this subsection 5. This
provision shall not prohibit the encumbering of title for the sole purpose of securing
financing of the purchase price of the Restricted Unit.
(g) Delivery of Documents. Upon the close of the proposed
Transfer, the Owner and Transferee, as applicable, shall provide the Agency with a
certified copy of the recorded Assumption Agreement, a copy of the final sales
contract, settlement statement, escrow instructions, all certificates required by this
subsection 5 and any other documents which the Agency may request.
6. Covenants of Owner. The Owner of each Restricted Unit by
acceptance of a deed to the Restricted Unit covenants and agrees that, at all times
during the Affordability Period, its Restricted Unit will be continuously occupied by
Owner as its principal residence, and shall not be rented, subleased, or subject to
any other business arrangement, whereby consideration shall be paid by any
occupant of a Restricted Unit to the Owner of the Restricted Unit; provided, if the
Restricted Unit is occupied by an Eligible Person or Family, the family members
whose income was considered in determining the eligibility of that family may make
monetary contributions toward the Purchase Housing Costs of the Restricted Unit.
Owner agrees that it shall not record or cause the recordation of any deed of trust
(a "Further Encumbrance") securing a note having an original principal sum which,
when added to the sum of the principal amount(s) of any notes secured by any
deeds of trust against the Restricted Property as of the date of recordation of the
Further Encumbrance, exceeds the fair market value of the Restricted Property.
B. [402] Uses In Accordance with Redevelopment Plan;
Nondiscrimination
The Developer covenants and agrees for itself, its successors, its
assigns, and every successor in interest to the Site or any part thereof that the
Developer and such successors and assignees, shall devote the Site to the uses
specified in the Redevelopment Plan, the Grant Deed (Attachment No. _), the
Declaration of Conditions, Covenants and Restrictions (Attachment No. 5) and this
Agreement for the periods of time specified therein. The foregoing covenants shall
run with the land.
The Developer covenants by and for itself and any successors in
interest that there shall be no discrimination against or segregation of any person or
group of persons on account of race, color, creed, religion, sex, marital status,
national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy,
tenure or enjoyment of the Site, nor shall the Developer itself or any person
claiming under or though it establish or permit any such practice or practices of
discrimination or segregation with reference to the selection, location, number, use
or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Site.
The foregoing covenants shall run with the land.
GAMDOMDocuments\Building Horizons\BuildHorizAgree04 ixtf C! 9 4
The Developer shall refrain from restricting the rental, sale or lease of
the property on the basis of race, color, creed, religion, sex, marital status, national
origin or ancestry of any person. All such deeds, leases or contracts shall contain
or be subject to substantially the following nondiscrimination or nonsegregation
clauses:
1. In deeds: "The grantee herein covenants by and for himself or
herself, his or her heirs, executors, administrators and assigns, and all persons
claiming under or through his or her heirs, executors, administrators and assigns,
and all persons claiming under or through them, that there shall be no
discrimination against or segregation of, any person or group of persons on account
of race, color, creed, religion, sex, marital status, national origin or ancestry in the
sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land
herein conveyed, nor shall the grantee himself or herself or any person claiming
under or though him or her, establish or permit any such practice or practices of
discrimination or segregation with reference to the selection, location, number, use
or occupancy of tenants, lessees, subtenants, sublessees or vendees in the land
herein conveyed. The foregoing covenants shall run with the land."
2. In leases: "The lessee herein covenants by and for himself or
herself, his or her heirs, executors, administrators and assigns, and all persons
claiming under or through him or her, and this lease is made and accepted upon
and subject to the following conditions:
"There shall be no discrimination against or segregation or any
person or group of persons on account of race, color, creed, religion, sex, marital
status, ancestry or national origin in the leasing, subleasing, transferring, use,
occupancy, tenure or enjoyment of the premises herein leased nor shall the lessee
himself or herself, or any person claiming under or through him or her, establish or
permit any such practice or practices of discrimination or segregation with
reference to the selection, location, number, use or occupancy of tenants, lessees,
sublessees, subtenants or vendees in the premises herein leased."
3. In contracts: "There shall be no discrimination against or
segregation of, any person, or group of persons on account of race, color, creed,
religion, sex, marital status, ancestry or national origin, in the sale, lease, sublease,
transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the
transferee himself or herself or any person claiming under or through him or her,
establish or permit any such practice or practices of discrimination or segregation
with reference to the selection, location, number, use or occupancy of tenants,
lessees, subtenants, sublessees or vendees of the premises."
The covenants established in this Agreement and the deeds of
n�
conveyance for the Site shall, without regard to technical classification..:' and
designation, be binding for the benefit and in favor of the Agency, its successors
and assigns, the City and any successor in interest to the Sites, together with any j �-
GAWPDOMDocuments\Building Horizons\BuildHorizAgree04-05.rtf `mot 9
property acquired by the Developer pursuant to this Agreement, or any part
thereof. The covenants against racial discrimination shall remain in effect in
perpetuity.
C. [4031 Effect of Violation of the Terms and Provisions of this
Agreement After Completion of Construction
The Agency is deemed the beneficiary of the terms and provisions of
this Agreement and of the covenants running with the land, for and in its own
rights and for the purposes of protecting the interests of the community and other
parties, public or private, in whose favor and for whose benefit this Agreement and
the covenants running with the land have been provided. The Agreement and the
covenants shall run in favor of the Agency, without regard to whether the Agency
has been, remains or is an owner of any land or interest therein in the Site or in the
Project Area. The Agency shall have the right, if this Agreement or covenants are
breached, to exercise all rights and remedies, and to maintain any actions or suits
at law or in equity or other property proceedings to enforce the curing of such
breaches to which it or any other beneficiaries of this Agreement and covenants
may be entitled.
D. [4041 Maintenance of the Site
The Developer shall maintain the improvements on the Site in
conformity with the La Quinta Municipal Code and the requirements of the
Declaration of Conditions, Covenants and Restrictions (Attachment No. 5), and
shall keep the Site free from any accumulation of debris or waste materials.
The Developer shall also maintain the landscaping required to be
planted under the Scope of Development (Attachment No. 1) in a healthy and
attractive condition. If, at any time, Developer fails to maintain the Site or any
portion thereof, and said condition is not corrected as soon as reasonably possible
after written notice from the Agency, either the Agency or the City may perform
the necessary maintenance and Developer shall pay such costs as are reasonably
incurred for such maintenance.
Upon the close of each Developer Conveyance, the Developer's
obligations under this Section 404 with respect to such Site shall be assumed by
the Transferee of such Site. This covenant shall run with the land and shall remain
in effect for the term of the Redevelopment Plan.
V. [5001 DEFAULTS AND REMEDIES
A. [501 ] Defaults -- General
Subject to the extensions of time set forth in Section 603, failure, or
delay by either party to perform any term or provision of this Agreement
constitutes a default under this Agreement. A party claiming a default shall give
G:\WPDOCS\Documents\Building Horizons\BuildHorizAgree04-05.rtf 096
written notice of default to the other party, specifying the default complained of
and the actions required to correct such default.
Except as otherwise expressly provided in Sections 508 and 509 of
this Agreement, the claimant shall not institute proceedings against the other party
if the other party within thirty (30) days from receipt of such notice immediately,
with due diligence, commences to cure, correct or remedy such failure or delay and
shall complete such cure, correction or remedy as soon as reasonably practicable
after receipt of such notice.
B. [5021 Legal Actions
1. [5031 Institution of Legal Actions
In addition to any other rights or remedies and subject to the
restrictions in Section 501, either party may institute legal action to seek specific
performance of the terms of this Agreement, or to cure, correct or remedy any
default, to recover damages for any default, or to obtain any other legal or
equitable remedy consistent with the purpose of this Agreement. Such legal
actions must be instituted in the Superior Court of the County of Riverside, State of
California, in an appropriate municipal court in that county, or in the Federal District
Court in the Central District of California.
2. [5041 Applicable Law
The laws of the State of California shall govern the
interpretation and enforcement of this Agreement.
3. [5051 Acceptance of Service of Process
In the event that any legal action is commenced by the
Developer against the Agency, service of process on the Agency shall be made by
person service upon the Executive Director or in such other manner as may be
provided by law.
In the event that any legal action is commenced by the Agency
against the Developer, service of process on the Developer shall be made by
personal service upon any officer or director of the Developer and shall be valid
whether made within or without the State of California or in such other manner as
may be provided by law.
G:\WPDOCS\Documents\Building Horizons\BuildHorizAgree04-05.rtf
u9�
C. [506] Rights and Remedies Are Cumulative
Except as otherwise expressly stated in this Agreement, the rights and
remedies of the parties are cumulative, and the exercise by either party of one or
more of such rights or remedies shall not preclude the exercise by it, at the same or
different times, of any other rights or remedies for the same default or any other
default by the other party.
D. [507] Inaction Not a Waiver of Default
Any failures or delays by either party in asserting any of its rights and
remedies as to any default shall not operate as a waiver of any default or of any
such rights or remedies, or deprive either such party of its right to institute and
maintain any actions or proceedings which it may deem necessary to protect,
assert or enforce any such rights or remedies.
E. [508] Remedies and Rights of Termination
1. [509] Damages
If either party defaults with regard to any of the provisions of
this Agreement, the non -defaulting party shall serve written notice of such default
upon the defaulting party. If the default is not cured or commenced to be cured by
the defaulting party within forty-five (45) days after service of the notice of default
(or within such other period as is set forth herein), the defaulting party shall be
liable to the other party for any damages caused by such default.
2. [5101 Specific Performance
If either party defaults under any of the provisions of this
Agreement, the non -defaulting party shall serve written notice of such default upon
the defaulting party. If the default is not cured and/or commenced to be cured by
the defaulting party within forty-five (45) days of service of the notice of default,
or such other time limit as may be set forth herein with respect to such default, the
non -defaulting party as its option may thereafter (but not before) commence an
action for specific performance of terms of this Agreement.
3. [511 ] Right of Termination by the Developer
In the event that the Agency does not fund the portion of the
Developer Promissory Note for the acquisition costs in the manner and condition,
and by the date established in this Agreement and the Schedule of Performance
(Attachment No. 2), and any such failure shall not be cured within thirty (30) days
after written demand by the Developer then, at the option of the Developer, upon
r
written notice thereof to the Agency, all provisions of this Agreement shale 9
G:\WPDOCS\Documents\Building Horizons\BuildHorizAgree04-05.rtf
terminate and be of no further force and effect; thereafter, neither the Agency nor
the Developer shall have any further rights against or liability to the other with
respect to this Agreement. Notwithstanding the above, developer would be
entitled to the return of any Acquisition Deposit for a site not transferred pursuant
to Section 202 herein.
4. [5121 Termination by the Agency
Promissory Note:
In the event that prior to the Agency funding of the Developer
(a) The Developer (or any successor in interest) assigns or
attempts to assign the Agreement or any rights therein or
in the Site(s) in violation of this Agreement; or
(b) There is a charge in the ownership of the Developer
contrary to the provisions of Section 107(a) hereof; or
(c) The Developer does not submit certificates of insurance,
construction plans, drawings and related documents as
required by this Agreement, in the manner and by the
dates respectively provided in this Agreement therefor,
and such default or failure shall not be cured or
commenced to be cured within forty-five (45) days after
the date of written demand therefor by the Agency; or
(d) The Developer fails to satisfy the Conditions Precedent to
the Conveyance by the time established therefor in the
Schedule of Performance (Attachment No. 2); or
(e) The Developer is otherwise in default under this
Agreement and such failure is not cured ` or commenced
to be cured within thirty (30) days of demand therefor by
the Agency;
then, at the option of the Agency, upon such written notice thereof to the
Developer as may be set forth above, this Agreement shall be terminated, and
thereafter neither party shall have any further rights or liability against the other
under this Agreement.
F. [5131 Remedies of the Parties for Default After Closing of the
Acquisition Escrow
1. [5141 Termination and Damages
34 1 i 1
After the Close of the Acquisition Escrow, if the Developer or
the Agency defaults with regard to any of the provisions of this Agreement, the
GAMDOMDocuments\Building Horizons\BuildHorizAgree04-05.rtf C! 9
nondefaulting party shall serve written notice of such default upon the defaulting
party. If the default is not cured or commenced to be cured (and diligent efforts
toward curing the default) by the defaulting party within thirty (30) days after
service of the notice of default, the defaulting party shall be liable to the other
party for any damages caused by such default.
VI. [6001 GENERAL PROVISIONS
A [601 ] Notices, Demands and Communications Between Parties
Written notices, demands and communications between the Agency
and the Developer shall be sufficiently givdn if delivered by hand or dispatched by
registered or certified mail, postage prepaid, return receipt requested, to the
principal offices of the Agency and the Developer at the addresses specified in
Section 105 and 106, respectively. Such written notices, demands and
communications may be sent in the same manner to such other addresses as either
party may from time to time designate by mail as provided i this Section 601.
Any written notice, demand or communication shall be deemed
received immediately if delivered by hand and shall be deemed received on the
tenth (10th) day from the date it is postmarked if delivered by registered or
certified mail.
B. [6021 Conflicts of Interest
No member, official or employee of the Agency shall have any
personal interest, direct or indirect, in this Agreement, nor shall any member,
official or employee participate in any decision relating to the Agreement which
affects his personal interests or the interests of any corporation, partnership or
association in which he is directly or indirectly interested. No member, official or
employee of the Agency shall be personally liable to the Developer, or any
successor in interest, in the event of any default or breach by the Agency, or for
any amount which may become due to the Developer or successor or on any
obligations under the terms of this Agreement.
C. [6031 Enforced Delay; Extension of Times of Performance
In addition to specific provisions of this Agreement, performance by
either party hereunder shall not be deemed to be in default, and al performance and
other date specified in this Agreement shall be extended, where delays or defaults
are due to: war; insurrection; strikes; lockouts; riots; floods; earthquakes; fires;
casualties; acts of God; acts of the public enemy; epidemics; quarantine
restrictions; freight embargoes; lack of transportation; governmental restrictions or
priority; litigation; unusually severe weather; inability to secure necessary labor,
materials or tools; delays of any contractor; subcontractor or supplier; acts or
omissions of the other party; acts or failures to act of the City of La Quinta or,, any
GAWPDOMDocuments\Building Horizons\BuildHorizAgree04-05.rtf
16�
other public or governmental agency or entity (other than the acts or failures to act
of the Agency which shall not excuse performance by the Agency); or any other
causes beyond the control or without the default of the party claiming an extension
of time to perform. Notwithstanding anything to the contrary in this Agreement,
an extension of time for any such cause shall be for the period of the enforced
delay and shall commence to run from the time of the commencement of the
cause, if notice by the party claiming such extension is sent to the other party
within thirty (30) days of the commencement of the cause. Times of performance
under this Agreement may also be extended in writing by the mutual agreement of
Agency and Developer.
Notwithstanding the foregoing portion of this Section 603, the
Developer is not entitled pursuant to this Section 603 to an extension of time to
perform because of past, present, or future difficulty in obtaining suitable
construction financing for the development of the Site or because of the physical
condition or suitability of the Site for the purposes of this Agreement.
D. [6041 Non -Liability of Officials and Employees of the Agency and the
Developer
No member, official or employee of the Agency or the City shall be
personally liable to the Developer, or any successor in interest, in the event of any
default or breach by the Agency or the City or for any amount which may become
due to the Developer or its successors, or on any obligations under the terms of
this Agreement.
No officer, director or employee of the Developer shall be personally
liable to the Agency or the City, or any successor in interest, in the event or breach
by the Developer.
E. [6051 Entire Agreement, Waivers
This Agreement is executed in three (3) duplicate originals, each of
which is deemed to be an original. This Agreement includes pages 1 through 27
and Attachment Nos. 1 through 11, which constitutes the entire understanding and
agreement of the parties. Each of the foregoing Attachments are incorporated
herein by reference.
This Agreement integrates all of the terms and conditions mentioned
herein or incidental hereto, and supersedes all negotiations or previous agreements
between the parties or their predecessors in interest with respect to all or any part
of the subject matter hereof.
All waivers of the provisions of this Agreement must be in writing by
the appropriate authorities of the Agency and the Developer, and all amendments
hereto must be in writing by the appropriate authorities of the Agency and •the
Developer.
G:\WPDOCS\Documents\Building Horizons\BuildHorizAgree04-05.rtf
In any circumstance where under this Agreement either party is
required to approve or disapprove any matter, approval shall not be unreasonably
withheld.
VII. [7001 TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCY
This Agreement, when executed by the Developer and delivered to the
Agency, must be authorized, executed and delivered by the Agency on or before
2004 or this Agreement shall be void, except to the extent that
the Developer shall consent in writing to a further extension of time for the
authorization, execution and delivery of this Agreement. The date of this
Agreement shall be the date when it shall have been signed by the Agency.
IN WITNESS WHEREOF, the Agency and the Developer have signed this
Agreement on the respective dates set forth below.
Dated:
ATTEST:
JUNE GREEK, Agency Secretary
APPROVED AS TO FORM:
By:
LA QUINTA REDEVELOPMENT AGENCY, a
public body corporate and politic
M. KATHERINE JENSON, Agency Counsel
Dated:
By:
TERRY HENDERSON, Chairman
BUILDING HORIZONS, a California nonprofit
public benefit corporation
Its:
n
GAWPDOMDocuments\Building Horizons\BuildHorizAgree04-05.rtf �,'
ATTACHMENT NO. 1
SCOPE OF DEVELOPMENT
I. DEVELOPMENT
Development shall cause the construction and installation of a single family
home on each lot of the Site. The homes shall be approximately 1,400 square feet
in size. The homes shall be developed in accordance with four bedroom floor plans
and site elevations which have been or which shall have been approved by the City
and the Agency. Unit amenities include front landscaped/irrigated yards; interior
laundries with sink and cabinets; kitchens that feature tile countertops,
dishwashers, built-in ranges, oak cabinetry, and nooks/pantries; tile roofs; and
concrete block perimeter fencing.
The Developer shall complete all of the improvements set forth in this Scope
of Development (Attachment No. 1) to be constructed on each lot. All of the
improvements to be described in part IV of this Scope of Development, constitute
the "Improvements."
The developer shall commence and complete the Improvements by the
respective times established therefor in the Schedule of Performance (Attachment
No. 2).
II. DEVELOPMENT STANDARDS
The following development standards shall apply to the Developer
Improvements:
A. Building Setbacks. Minimum building setbacks for building and
parking areas shall be as required by the Redevelopment Plan and approved by the
Agency, and shall conform to the La Quinta City Code (the "City Code").
B. Building Coverage. The amount of land within the Site covered by
buildings shall be as required by the Redevelopment Plan and local zoning.
C. Building Height. Buildings shall not exceed the height as may be
limited by the Redevelopment Plan and local zoning.
D. Landscaping. The Developer shall provide and, pending the sale of the
Site, maintain landscaping on the Site.
Landscaping shall be subject to approval by the City's Planning
Department prior to planting.
GAWPDOMDocuments\Building Horizons\BuildHorizAgree04-05.rtf
E. Utilities. Sewer drainage and utility lines, conduits or systems shall
not be constructed or maintained above the ground level of the Site. Storm
drainage for all hard surfaced areas shall be drained or may be sheet flowed to
storm sewers. All non -polluted waste water, such as waste air conditioning water,
shall be drained to the storm or sanitary drainage systems as permitted by local
codes.
F. Building Materials. All exterior walls shall be painted or covered by
the Developer with color(s) and materials subject to approval by the City's
Community Development Department. In satisfaction of this requirement, the
Developer shall submit a color and materials board for approval by the Agency.
G. Building Design. Buildings shall be constructed such that the
Developer Improvements shall conform to the City Code, and shall be effectively
and aesthetically designed.
III. PUBLIC IMPROVEMENTS AND UTILITIES
The Developer, at its own cost and expense, with the exception of the
Agency Assistance as provided in Section 201 of the Agreement, shall provide or
cause to be provided the public improvements as required by the City pursuant to
the usual City building permit requirements for off -site improvements to residential
development within the time set forth for the completion of the Developer
Improvements in the Schedule of Performance (Attachment No. 4).
Those of the improvements required to be provided pursuant to this part III
of this Scope of Development (Attachment No. 1) constitute the "Off -Site
Improvements."
IV. DEMOLITION AND SOILS
In accordance with Section 211 of the Agreement, the Developer shall at its
cost take all actions necessary to render the Site entirely suitable for such
development, including any demolition -and soils work.
V. AMENDMENTS
Any material change, as reasonably determined by the Agency, in the Scope
of Development (Attachment No. 1) or in the approved site plan which affects the
size, quality, or type of development proposed for one or more of the Site shall
require the written approval of the Agency, which approval may be contingent
upon the review and renegotiation of all of the economic and financial terms of this
Agreement and such other matters as the Agency shall deem appropriate.
It shall be up to the discretion of the Agency Executive Director whether a
proposed material change to this Scope of Development requires approval byJthe 33
GAWPDOMDocuments\Building Horizons\BuildHorizAgree04-05.rtf .0 "',
1 l; 4
Agency Board or whether such change may be approved in writing by the Agency
Executive Director.
J
G:\WPDOCS\Documents\Building Horizons\BuildHorizAgree04-05.rtf
ATTACHMENT NO.2
SCHEDULE OF PERFORMANCE
I. GENERAL PROVISIONS
1. Execution of Agreement
by
Agency. The Agency
shall
approve and execute
this
Agreement, and shall deliver
one (1) copy thereof to
the
Developer.
II. CONSTRUCTION DOCUMENTS
AND BUILDING PERMITS
Submittal of Site Plan.
Developer shall prepare and
submit to the Agency the Site
Plan for the two units.
3. Submission of Complete
Construction Drawings and
Landscaping Plan. Developer
shall submit to the Agency
complete Construction
(working) Drawings for the two
units.
4. Obtaining of Building Permits.
Developer shall satisfy all
requirements necessary to
obtain al building and other
permits needed to commence
construction of the
Improvements for each unit.
I11. ACQUISITION OF SITE
Not later than thirty (30) days after
the date of execution and
submission of three (3) copies of
this Agreement by the Developer.
Within thirty (30) days after the
execution of this Agreement by the
Agency.
Not later than thirty (30) days after
Agency approval of Site Plan.
Not later than thirty (30) days after
Agency approval of Complete
Construction (working) Drawings
and Landscaping Plan.
GAMDOMDocuments\Building Horizons\BuildHorizAgree04-05.rtf
F_r.
5. Conditions Precedent. All
Conditions Precedent to funding
the acquisition are satisfied.
6. Acquisition of Site. The
acquiring of the Site is effected.
IV. CONSTRUCTION PHASE
7. Commencement of Construction.
Developer shall commence
construction of the
Improvements for each Site.
8. Completion of Construction.
Developer shall complete
construction of all of the
Improvements for each lot.
V. TRANSFER STAGE
9. Sales of Residences. Each
Residence shall be sold to an
Eligible Person or Family.
10. Partial Certificates of
Completion. Certificates of
Completion for each lot shall be
recorded simultaneous with the
transfer to an Eligible Person or
Family.
Not later than sixty (60) days after
execution of this Agreement by the
Agency.
As soon as reasonably possible after
satisfactory fulfillment of the
Conditions Precedent to the Agency
Assistance and funding of the
Developer loan.
Not later than thirty (30) days after
Developer acquisition of each lot.
Within two hundred seventy (270)
days after the commencement of
construction for each lot.
Within six (6) months from issuance
of certificate of occupancy.
Minor revisions to this Schedule of Performance may be approved in writing by the
Agency Executive Director.
GAWPDOMDocuments\Building Horizons\ Build HorizAgree04-05.rtf , i 7
1_
ATTACHMENT NO.3
DEVELOPER PROMISSORY NOTE
La Quinta, California
$250,000
FOR VALUE RECEIVED, BUILDING HORIZONS, INC., collectively, "Maker"
promise to pay to LA QUINTA REDEVELOPMENT AGENCY, a public body corporate
and politic ("Holder") at La Quinta, California, or at such other address as Hold"Note
may direct from time to time in writing- the sum of $250,000 (the the rate set forth herein. All sums
Amount"), together with interest thereonat
lawful money of the United States of
payable hereunder shall be payable in
Amer
ica. This Developer Promissory Note ("Note") is made in connection with the provision by the Holder of funds equal to the approved Acquisition Costs and
le Housing Agreement by and
Construction Costs pursuant to that certain Affordable g 2004 (the
among Maker and the Holder, dated as of
"Agreement") .
1. Disbursements. The Note Amount shall be disbursed pursuant to
shall
Sections 201 and 205 of the Agreement. The record of such disbursements
be recorded from time to time by the Agency Executive Director or his designee on
Exhibit A to this Developer Promissory Note.
2. Obligation to Pay. The Note Amount shall be due and payable in full
upon the Developer conveyance of the property.
3.
Pre a ment of Note Amount. Maker may prepay to Holder the full
p Y
Note Amount at any time prior to the due date of the Note Amount without
penalty.
4. Security. This Note is secured by a Developer Deed of Trust by and
betwee
n Maker, as trustor, and Holder, as beneficiary (the Developer Deed of
Trust") .
5. Holder May Assi n. Holder may, at its option, assign its right to
ceive a ment under this Note without necessity of obtaining the consent of the
re P Y
Maker.
6. Makers Assignment Prohibited. In no event shall Maker assign or
transfer an portion of this Note without the prior express written consent of the
Y
Holder, which consent may be given or withheld in the Holders sole discretion.
7. Attorneys' Fees and Costs. In the event that any action is instituted
with respect to this Note, the prevailing party promises to pay such sums as a
court costs and reasonable attorneys' fees. Holder's right to .�6ch
court may fix for co .01
i'
GAWPDOCS\Documents\Building Horizons\BuildHorizAgree04-05.rtf
fees shall not be limited to or by its representation by staff counsel and such
representation shall be valued at customary and reasonable rates for private sector
legal services.
8. Time of the Essence. Time is of the essence of the performance of all
obligations under this Promissory Note.
9. Non -Waiver. Failure or delay in giving any notice required hereunder
shall not constitute a wa ver of any default or late payment, nor shall it change the
time for any default or payment.
10. Successors ound. This Note shall be binding upon the parties hereto
and their respective heirs,, successors and assigns.
Dated:
Dated:
ATTEST:
By:
BUILDING HORIZONS, a California nonprofit
public benefit corporation
Its:
"MAKER"
LA QUINTA REDEVELOPMENT AGENCY, a
public body corporate and politic
THOMAS P. GENOVESE, Executive Director
JUNE GREEK, Agency Seicretary
"HOLDER"
GAWPDOCS\Documents\Building Hori�ons\BuildHorizAgree04-05.rtf
EXHIBIT "A" TO
ATTACHMENT NO. 3
DISBURSEMENT RECORD
Disbursement Amount Date Acknowledgment of
Receipt of Maker
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
ATTACHMENT NO.4
CONSTRUCTION DEED OF TRUST
[To be approved by Agency Counsel and Executive Director
for recording prior to funding under the Developer Promissory Note]
GAWPDOMDocuments\Building Horizons\Bui[dHorizAgree04-05.rtf
II
ATTACHMENT NO. 5
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
LA QUINTA REDEVELOPMENT AGENCY )
78-495 Calle Tampico )
La Quinta, California 92253
Space above for recorder.
This Agreement is recorded at the
request and for the benefit of the
Agency and is exempt from the
payment of a recording fee pursuant
to Government Code Section 6103.
LA QUINTA REDEVELOPMENT AGENCY
By:
Its:
Dated: 22004
DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS
THIS DECLARATION OF CONDITIONS, COVENANTS AND
RESTRICTIONS is made this day of , 2004, by BUILDING
HORIZONS, a California nonprofit public benefit corporation, as declarant (the
"Developer"), with reference to the following:
A. The Developer is fee owner of record of that certain real property
located in the City of La Quinta, County of Riverside, State of California legally
described in the attached Exhibit "A" (the "Property"),which is comprised of
( ) parcels ("Parcels"). The Property comprises the Site which is the
subject of an agreement, further described herein, for the development, operation
and maintenance of the Property for moderate -income housing. The Property is to
be used for the development of single-family housing units and subsequent
occupancy as a primary residence by households meeting certain income
qualifications, all in conformity with this Declaration and an Affordable Housing
Agreement between the Developer and the Agency dated as of , a copy of
which is on file with the Agency as a public record (the "Agreement").
O
GAMDOMDocuments\Building Horizons\BuildHorizAgree04-05.rtf L
B. The Property is within La Quinta Redevelopment Project Area No. 1
(the "Project Area") which was approved and adopted by Ordinance No. 43 of the
City Council of the City of La Quinta on November 29, 1983 and subsequently
amended by Ordinance No. 258 on December 20, 1994, and by Ordinance No. 264
on March 7, 1995.
C. The La Quinta Redevelopment Agency ("Agency") and the Developer
have entered into an Affordable Housing Agreement dated as of , 2004
concerning the development and use of the Property (the "Agreement") which
Agreement is on file with the Agency as a public record and is incorporated herein
by reference and which Agreement provides for the execution and recordation of
this document.
D. Developer deems it desirable to impose a general plan for the use and
maintenance of the Property, and to adopt and establish covenants, conditions and
restrictions upon the Property for the purpose of enforcing and protecting the
value, desirability and attractiveness thereof.
E. Developer will convey title to all portions of said Property (including
each Parcel) subject to certain protective covenants, conditions, and restrictions
hereinafter set forth.
NOW, THEREFORE, Declarant hereby covenants, agrees and declares
that all of the Property shall be held, sold, conveyed, hypothecated, encumbered,
used, occupied and improved, subject to the following covenants, conditions,
restrictions and easements which are hereby declared to be for the benefit of the
whole Property. These covenants, conditions, restrictions and easement shall run
with the Property and shall be binding on all parties having or acquiring any right,
title or interest in the Property or any part thereof (including each Parcel) and shall
inure to the benefit of each owner thereof and their successors and assigns, and
are imposed upon the Property and every part thereof (including each Parcel) as a
servitude in favor of each and every Parcel as the dominant tenement or
tenements.
NOW, THEREFORE, THE DEVELOPER AGREES AND COVENANTS AS
FOLLOWS:
A. Low or Moderate Income Restrictions
1. Number of Units.
Developer shall develop two (2) detached, single-family homes
(the "Restricted Units") within the Project Area and shall develop all on -site and off -
site public improvements connected therewith, all as described and set forth in the
Scope of Development (Attachment No. 1). Developer shall restrict each of the
units for sale to a Low or Moderate Income Household pursuant to the applicpble 417
GAMDOMDocuments\Building Horizons\ Build Ho rizAg ree04-0 5. rtf _L i''
income and affordability provisions contained herein. The Developer further
covenants and agrees that the above -referenced occupancy, ownership and
affordability requirements shall bind and be enforceable against the Site for the
period of forty-five (45) years commencing with the acquisition of each respective
parcel by the Developer with the simultaneous recording of this document.
2. Definitions.
(a) "Affordable Housing Cost" shall be that purchase price
which would result in maximum monthly housing payments for a thirty (30) year
mortgage for that portion of the purchase price which is to be paid in the form of
Loan proceeds under currently prevailing mortgage loan rates or the interest rate of
any below -market mortgage program for which such purchaser has obtained a first
trust deed loan, for the low or moderate income group calculated pursuant to
Health and Safety Code Section 50052.5, which sets forth the following formula:
Lower Income Households - whose gross incomes exceed the
maximum income for very low income households and do not exceed seventy
percent (70%) of the area median income adjusted for family size, the product of
thirty percent (30%) times seventy percent (70%) of the area median income
adjusted for family size appropriate for the unit. In addition, for any lower income
household that has a gross income that equals or exceeds seventy percent (70%)
of the area median income adjusted for family size, it shall be optional for any state
or local funding agency to require that affordable housing cost not exceed thirty
percent (30%) of the gross income of the household.
Moderate Income Households - not less than twenty-eight
percent (28%) of the gross income of the household, nor more than the product of
thirty -five percent (35 %) times the greater of one hundred ten percent (1 10%) of
area median income adjusted for family size appropriate for the Affordable Unit, or
the gross income of the household for households earning greater than one hundred
percent (1 10%) and not more than one hundred twenty percent (120%) of the area
median income adjusted for family size.
(b) "Affordability Period" shall be forty-five (45) years from
the date of transfer to an Eligible Person or Family.
(c) "Eligible Person or Family" shall mean any person or
family who meets the income qualifications for Low or Moderate Income
Households.
(d) "Lower Income Household" shall mean a household
earning not greater than eighty percent (80%) of Riverside County median income,
as determined by the United States Department of Housing and Urban Development
from time to time, as set forth in Health and Safety Code Section 50093.
48
i .
13 GAWPDOMDocuments\Building Horizons\BuildHorizAgree04-05.rtf L
(e) "Moderate Income Household" shall mean a household
earning not greater than one hundred twenty percent (120%) of Riverside County
median income, as determined by the United States Department of Housing and
Urban Development from time to time, as set forth in Health and Safety Code
Section 50093.
(f) "Owner" shall mean Developer and any successor in
interest of Developer to any lot of the Site except where a provision of this
Agreement expressly excludes Developer from the definition of owner.
(g) "Proposed Transferee" shall mean a person or family
determined to be an Eligible Person or Family to whom the Developer or any
successor Owner desires and proposes to Transfer a Restricted Unit.
(h) "Purchase Housing Cost" or an Eligible Person or Family
purchasing a Restricted Unit shall include all of the following associated with that
Restricted Unit, estimated or known as of the date of their proposed sale of the
Restricted Unit:
(1) Principal and interest on a mortgage loan including
any rehabilitation loans, and any loan insurance fees associated therewith.
(ii) Property taxes and assessments.
(iii) Fire and Casualty insurance covering replacement
value of property improvements.
(iv) Any homeowner association fees.
Monthly housing cost of a purchaser shall be an average of estimated costs for the
next twelve (12) months
(1) "Restricted Unit" shall mean a dwelling unit, which shall
be a single-family residence, subject to the restrictions of this Agreement
(including, without Limitation, this document).
(j) "Sales Price" shall mean all sums paid by a purchaser to a
seller for, or in conjunction with, the acquisition of a Restricted Unit, including the
purchase price designated in any purchase agreement, consideration for personal
property and all other costs and fees paid by the purchaser to or for the benefit of
the seller.
(k) "Transfer" shall mean any sale, assignment, conveyance,
lease or transfer, voluntary or involuntary, of any interest in a Restricted Unit.
Without limiting the generality of the foregoing, Transfer shall include (1) a transfer
by devise, inheritance or intestacy to a party who does not meet the definitiori of 49
` 14
GAWPDOCS\Documents\Building Horizons\BuildHorizAgree04-05.rtf �.
Eligible Person or Family; (ii) a life estate; (iii) creation of a joint tenancy interest;
(iv) a gift of all or any portion of a Restricted Unit; or (v) any voluntary conveyance
of a Restricted Unit. Transfer shall not include transfer to a spouse in a dissolution
proceeding; however any subsequent Transfer shall be subject to this restriction.
(1) "Transferee" shall mean any natural person or entity who
obtains ownership or possessory rights in a Restricted Unit pursuant to a Transfer.
3. Sales of Restricted Units. Developer agrees that Developer shall
sell each Restricted Unit to an Eligible Person or Family at an Affordable Housing
Cost (the "Developer Conveyance") and that during the Affordability Period each
subsequent resale of a Restricted Unit by the then -Owner thereof shall be to an
Eligible Person or Family at an Affordable Housing Cost. Developer agrees that
these Conditions, Covenants and Restrictions giving effect to the foregoing
restriction shall be recorded against each lot of the Site concurrently with the
Acquisition Escrow. Developer agrees to commence to market each Restricted Unit
not later than the completion of construction of each Restricted Unit; each
Restricted Unit shall be sold to an Eligible Person or Family prior to issuance of a
Certificate of Completion as to any such Restricted Unit for purposes of Section
322 of the Agreement.
For purposes of satisfying the requirement that all of the Restricted
Units shall be occupied by Eligible Persons or Families: (a) an individual or family
who qualifies as an Eligible Person or Family at the time he or she first takes title to
a Restricted Unit will be deemed an Eligible Person or Family as long as he or she
continues to hold title to such Restricted Unit even though the Eligible Person or
Family subsequently ceases to meet the income or other requirements of an Eligible
Person or Family subsequently ceases to meet the income or other requirements of
an Eligible Person or Family, and (b) when an Owner releases title to a Restricted
Unit, such unit will be considered as occupied by an Eligible Person or Family if it is
held vacant and available for such occupancy until title is transferred to another
Eligible Person or Family, at which time the status of the new Owner as an Eligible
Person or Family is to be determined.
4. Restrictions on Transfer by Sale of the Restricted Property or
Any Restricted Unit.
(a) For the duration of the Affordability Period, Developer, for
itself and any subsequent Owner, hereby subjects the Site to certain restrictions
and limits the price at which Developer or any other Owner may sell and/or resell
the Site and the persons to whom Developer or any other Owner may sell the Site.
(b) DEVELOPER AND ANY OTHER OWNER UNDERSTANDS
THAT THE DETERMINATION OF THE SALES PRICE CAN BE MADE ONLY AT THE
TIME OF THE PROPOSED TRANSFER, TAKING INTO CONSIDERATION INTERS, T d
RATES, PROPERTY TAXES AND OTHER FACTORS THAT CANNOT BE
M
GAWPDOCS\Documents\Building Horizons\BuildHorizAgree04-05.rtf I Z)
ACCURATELY PREDICTED AND THAT THE SALE PRICE PERMITTED HEREUNDER
MAY NOT INCREASE OR DECREASE IN THE SAME MANNER AS OTHER SIMILAR
REAL PROPERTY WHICH IS NOT ENCUMBERED BY THIS RESTRICTION.
DEVELOPER AND ANY OTHER OWNER FURTHER ACKNOWLEDGE THAT, AT ALL
TIMES IN SETTING THE SALES PRICE, THE PRIMARY OBJECTIVE OF THE
AGENCY AND THIS AGREEMENT IS TO PROVIDE HOUSING TO ELIGIBLE
PERSONS OR FAMILIES AT AFFORDABLE HOUSING COST. THE SALES PRICE
MAY BE LESS THAN OTHER SIMILAR PROPERTIES WHICH HAVE NO
RESTRICTIONS.
Developer's Initials
(c) Transfer of a Restricted Unit. Developer and any
successor Owner may transfer a Restricted Unit only in strict accordance with the
provisions of this Agreement. Specifically, during the Affordability Period, Owner
may transfer a Restricted Unit (1) only to an Eligible Person or Family and (ii) only if
the Purchase Housing Cost does not exceed Affordable Housing Cost for the
Eligible Person or Family; and (iii) only if the Transfer has previously been approved
in writing by the Agency.
In order to comply with this Subsection 4(c), Developer and any
successor Owner must calculate the Affordable Housing Cost for the Proposed
Transferee of the Restricted Unit in accordance with the definition set forth in
Subsection 2(a) of this Section . After calculating the Affordable Housing Cost
for the Proposed Transferee, the Owner must ensure that the sum of the Sales
Price and all costs listed in the definition of Purchase Housing Cost set forth in
Subsection 2 of Section 401 does not exceed that Affordable Housing Cost. The
Calculation of the Sales Price under this Subsection 4(c) is illustrated by example in
Attachment No. of the Agreement.
(d) In the event that
after a good faith effort as
defined in
the Buyer Promissory Note,
the successor
Owner is unable to obtain
an Eligible
Person or Family to transfer
the Restricted
Unit, then after the required notice to
and approval by the Agency
Executive Director the owner may sell the
Restricted
Unit to a noneligible party
subject to the
equity share provisions of
the Buyer
Promissory Note and the
Covenants, Conditions and Restrictions
would be
released.
(e) Notwithstanding anything to the contrary in this Section
at close of the Developer Conveyance Escrow transferring the Restricted Unit
from the Developer to the Proposed Transferee (the "Initial Owner"), the Initial
Owner shall execute a Buyer's Promissory Note as approved by the Executive and
Agency Counsel which Promissory Note shall be secured by a Second Deed of
Trust. The Buyer's Promissory Note shall be non -interest bearing. The principal
amount shall be equal to the amount of the Agency Assistance necessary for%the 5
G:\WPDOCS\Documents\Building Horizons\BuildHorizAgree04-05.rtf 11 (
Individual or Family to qualify for the Lender's loan and ensure the affordability
requirements are met as approved by the Executive Director in accordance, with the
Agency's affordable housing program policies. The Note Amount shall be due and
payable according to its terms including any applicable equity sharing provision.
However, should the Initial Owner transfer the Restricted Unit to an Eligible Person,
Family at Affordable Housing Cost, the Transferee shall assume the Promissory
Note (Attachment No. 8 to the Agreement) and Agency shall extend the due date
of the Note Amount until the next Transfer of the Restricted Unit. The foregoing
provisions will apply to every successive Transfer during the Affordability Period.
5. Process to Complete Transfer by Sale of Restricted Units. Upon
the Transfer by sale of a Restricted Unit, the following procedures shall apply:
(a) Notice to City: Owner shall send to the Agency in care
of the La Quinta Housing Department (or its successor), at P.O. Box 1504, La
Quinta, California 92253, the form attached hereto as Attachment No. _ fully
completed and executed by the Owner and the Proposed Transferee (the "Approval
Request").
(b) Qualification of Proposed Transferee. No Transfer shall
occur unless and until determination is made based o the Certificate in the form of
Attachment No. _ attached hereto ("Certificate") and attachments thereto, that
the Proposed Transferee (1) intends to occupy the Restricted Unit as the Proposed
Transferee's principal residence and (ii) is an Eligible Person or Family. Each
Proposed Transferee shall submit a Certificate to the Developer certifying its intent
with regard to the occupancy of the Restricted Unit and as to the truth and
accuracy of all information supplied as to the Gross Income (calculated as set forth
in 25 Cal. Code of Regs., Section 6914) of the Proposed Transferee ("Proposed
Transferee's Certificate"). Developer or subsequent owner shall certify pursuant to
Attachment No. 13 hereof the information provided on the Proposed Transferee's
Certificate pursuant to direction on that Certificate. Developer or subsequent
owner shall be entitled to rely on the information on the Proposed Transferee's
Certificate and attachments thereto in making the determination required by this
subsection 5(b) unless the Developer or subsequent owner has knowledge of, or a
reasonable basis for belief as to the inaccuracy or falsehood of the Proposed
Transferee's Certificate.
(c) The Sales Price for the Restricted Unit shall not exceed
the maximum price at which the Purchase Housing Cost to be paid by the Proposed
Transferee would not exceed Affordable Housing Cost. The calculation of the
Sales Price under this subsection is illustrated by example in Attachment No. 13
attached hereto. However, in determining Affordable Housing Cost, the family size
of the Proposed' Transferee -shall be deemed to be 2 persons in the case of a 1
bedroom, 3 persons for a 2 bedroom, 4 persons for a 3 bedroom, or 5 persons for
a 4 bedroom Restricted Unit. If the actual family size of the Proposed Transferee is c
larger, then the actual family size shall be used.
7
GAWPDOCS\Documents\Building Horizons\BuildHorizAgree04-05.rtf i
(d) Certificates from Parties. With respect to each sale of a
Restricted Unit, Developer or subsequent owner shall submit to the Agency, not
later than four (4) weeks prior to close of escrow on the sale of a Restricted Unit, a
certificate that (1) the Developer or subsequent owner has made the affirmative
determinations required by Section 4(a) above and (ii) the Sales Price conforms
with Section 4(b) above. The Developer or subsequent owner shall concurrently
submit to the Agency the Proposed Transferee's Certificate and all attachments
thereto and all other documents or material with regard to information required by
Sections 4(a) and/or (b) above, whether or not relied on by the Developer. Further,
the Developer or subsequent owner and Proposed Transferee each shall certify in
writing, in a form acceptable to the Agency, that the Transfer shall be closed in
accordance with, and only with, the terms of the sales contract and other
documents submitted to and approved by the Agency and that all consideration
delivered by the Proposed Transferee to Developer or subsequent owner has been
fully disclosed to the Agency. The written certificate shall also include a provision
that, in the event a Transfer is made in violation of the terms of this Agreement or
false or misleading statements are made in any documents or certificate submitted
to the Agency for its approval of the Transfer, the Agency shall have the right to
file an action at law or in equity to seek termination and/or rescission of the sales
contract and/or declare the sale void, notwithstanding the fact that the Transfer
may have closed and become final as between Developer or subsequent owner and
its Transferee. In the event Developer for the initial transfer or subsequent owner
for each following transfer fails to comply with Sections 4(a) or 4(b) above, any
costs, liabilities or obligations incurred by the Developer or subsequent owner and
its Transferee for the return of any monies paid or received or for any costs and
legal expenses, shall be borne Jointly and severally by the Developer and its
transferee and such parties shall hold the City and Agency harmless and reimburse
their expenses, legal fees and costs for any action and City and/or Agency take in
enforcing the terms of this Section
(e) Execution of Promissory Note and Second Deed of Trust.
Notwithstanding anything to the contrary in this Agreement, at close of Escrow of
the sale of the Housing Unit from the Developer to the Buyer, the Buyer shall
execute a Buyer Promissory Note which shall be secured by a Second Deed of
Trust. Said Second Deed of Trust shall be subordinate to any mortgage(s) obtained
by the Owner for the purpose of securing funds to be applied to the Sales Price of
the Housing Unit. The Buyer Promissory Note shall be non -interest bearing. The
principal amount of the Promissory Note shall be an amount equal to the amount
actually given as cash plus an Agency Equity Share Amount which becomes
applicable only in the event that the Buyer is unable after good faith efforts to find
an Eligible Person or Family to transfer the home at Affordable Housing Cost. In
the event that the Buyer has provided the Agency with evidence of their good faith
efforts then Agency may approve the sale to a nonqualified buyer and release the
covenants by receiving in addition to the cash amount originally provided the 53
additional Agency Equity Amount as provided under the terms of the Buyer
G:\WPDOCS\Documents\Building Horizons\BuildHorizAgree04-05.rtf - - 118
18
Promissory Note.
So long as the Transferee purchasing the Housing Unit from the
Owner is an Eligible Person or Family and the Sale of the Housing Unit is made at a
price which is not in excess of Affordable Housing Cost, the Transferee shall
assume the obligations of the Owner under the Promissory Note and Second Deed
of Trust to repay the Agency Equity pursuant to the Promissory Note by execution
of an assumption agreement in the form set forth as Attachment No. _ of this
Agreement, together with other written documentation satisfactory to the Agency,
and Agency shall extend the due date of the Agency Equity pursuant to the Note
Amount until the next Transfer of the Housing Unit by said Transferee. At such
next Transfer, the Agency will again extend the due date of the Agency Equity
pursuant to the Note Amount if the Sale or Transfer complies with the
requirements of this Section. So long as each Transferee from the Owner and each
subsequent Owner: (1) is an Eligible Person or Family, (2) acquires the Housing
Unit at an Affordable Housing Cost, and (3) assumes the obligations of the
predecessor Owner as aforesaid; then the Agency agrees to extend the due date of
the Agency Equity pursuant to the Note Amount and the transferring Owner shall
not be required to pay the Agency Equity potion of the Note Amount upon transfer
of the Housing Unit.
The Agency Equity payment requirement is intended as a penalty
against the Owner, to capture a portion of the equity in the Restricted Property for
the benefit of the Agency/Holder, in the event that the Owner makes a ale of the
Restricted Property to a Buyer that is not an Eligible Person or Family. This equity
recapture requirement is intended to be a cumulative remedy, together with all
other remedies available to the Agency/Holder to compensate for the removal of
the affordable housing covenants of the Grant Deed and this Agreement on the
Housing Unit, to compensate the Agency for the administrative costs of operating
the housing program of the Agency and to provide funds to the Agency to further
assist low and moderate income persons in the provision of housing. In the event
the equity recapture provisions of the Promissory Note are found by a court or
administrative agency of competent jurisdiction to be in contravention of law or
administrative regulation, the Applicable Percentage shall be reduced to the
maximum percentage allowable by applicable law or administrative regulation, or
may be otherwise modified by judicial decree or order so as to comply with
applicable law.
(f) Written Consent of Agency Required Before Transfer. During
the Affordability Period the Restricted Property or the Restricted Unit, as the case
may be, and any interest therein, shall not be conveyed by any Transfer except
with the express written consent of the Agency, which consent shall be given only
if the Transfer is consistent with the Agency's goal of creating, preserving,
maintaining and protecting housing in the City of La Quinta for Eligible Persons and
Families and shall be in accordance with the provisions of this subsection 5. This
provision shall not prohibit the encumbering of title for the sole purpose of securing
financing of the purchase price of the Restricted Unit.
J4
GAWPDOCS\Documents\Building Horizons\BuildHorizAgree04-05.rtf
(g) Delivery of Documents. Upon the close of the proposed
Transfer, the Owner and Transferee, as applicable, shall provide the Agency with a
certified copy of the recorded Assumption Agreement, a copy of the final sales
contract, settlement statement, escrow instructions, all certificates required by this
subsection 5 and any other documents which the Agency may request.
6. Covenants of Owner. The Owner of each Restricted Unit by
acceptance of a deed to the Restricted Unit covenants and agrees that, at all times
during the Affordability Period, its Restricted Unit will be continuously occupied by
Owner as its principal residence, and shall not be rented, subleased, or subject to
any other business arrangement, whereby consideration shall be paid by any
occupant of a Restricted Unit to the Owner of the Restricted Unit; provided, if the
Restricted Unit is occupied by an Eligible Person or Family, the family members
whose income was considered in determining the eligibility of that family may make
monetary contributions toward the Purchase Housing Costs of the Restricted Unit.
Owner agrees that it shall not record or cause the recordation of any deed of trust
(a "Further Encumbrance") securing a note having an original principal sum which,
when added to the sum of the principal amount(s) of any notes secured by any
deeds of trust against the Restricted Property as of the date of recordation of the
Further Encumbrance, exceeds the fair market value of the Restricted Property.
B. Use Restrictions. The Property shall be occupied and used as follows:
1. The single-family home on each Parcel ("Unit") shall be used
only for private dwelling purposes and for no other purposes. The Units shall not
be leased, subleased, rented or otherwise; rather, each Unit shall be the principal
dwelling of the owner thereof and his family.
2. There shall be no structural alternation, construction or removal
of any structure on any Parcel (other than repairs or rebuilding permitted herein)
without the, approval of the appropriate City departments or the Agency and in
conformance with the City Code.
C. Maintenance. The exterior areas of each Parcel shall be kept free of
rubbish, debris and other unsightly or unsanitary materials.
Each Owner shall have the affirmative obligation to prevent the
occurrence on the Parcel owned by such Owner of what might be considered a fire
hazard or a condition dangerous to the public health, safety and general welfare; or
constitute an unsightly appearance or otherwise detract from the aesthetic and
property values of neighboring properties. The following minimum performance
standards for the maintenance of the Unit and landscaping on each Parcel shall be
adhered to by each Owner.
(1) Landscaping on the Property shall be absent of the following:
E!\
GAMDOMDocuments\Building Horizons\BuildHorizAgree04-05.rtf �. V
vegetation.
following:
(a) Lawns with grasses in excess of six (6) inches in height.
(b) Untrimmed hedges.
(c) Dying trees, shrubbery, lawns and other plant lift from
lack of water or other necessary maintenance.
(d) Trees and shrubbery grown uncontrolled without proper
pruning.
(e) Vegetation so overgrown as to be likely to harbor rats or
vermin.
(f) Dead, decayed or diseased trees, weeds and other
(g) Inoperative irrigation system(s).
(2) Yard areas shall be maintained so as to be absent of the
(a) Broken or discarded furniture, appliances and other
household equipment stored in yard areas for periods
exceeding one (1) week.
(b) Packing boxes, lumber, trash, dirt and other debris stored
in yards for unreasonable periods in areas visible from
public property or neighboring properties.
(3) No building, wall or fence may be left in an unmaintained
condition so that any of the following exist:
(a) Buildings abandoned, boarded up, partially destroyed or
left unreasonably in a state or partial construction.
(b) Unpainted buildings or buildings with peeling paint in
such a condition as to
I. Cause dry rot, warping and termite infestation; or
ii. Constitute an unsightly appearance that detracts
form the aesthetic or property values of
neighboring properties.
(c) Broken windows, constituting hazardous conditions n
and/or inviting trespassers and malicious mischief.
G:\WPDOCS\Documents\Building Horizons\BuildHorizAgree04-05.rtf r ; 1
(d) Damaged garage doors that may become inoperative or
unsafe to operate.
(e) Graffiti remaining on any portion of the property for a
period exceeding ten (10) days.
(f) Building interiors and exteriors shall be maintained to
meet standards of similar residential property in the City
of La Quinta.
D. City's Right of Review and Enforcement.
The City of La Quinta (the "City") and the Agency shall be made a
party to this Declaration for the limited purpose as specified herein as follows:
1. Changes or amendments to this Declaration must be submitted
for City/Agency review and approval.
2. In the event of inaction by any Owner, the City and Agency are
hereby granted expedient power to enforce all provisions of this Declaration
including, but not limited to, the maintenance of the Improvements and all yards,
buildings and landscaping areas within the Site.
E. Miscellaneous Provisions.
1. If any provision of this Declaration or portion thereof, or the
application to any person or circumstances, shall to any extent be held invalid,
inoperative or unenforceable, the remainder of this Declaration, or the application of
such provision or portion thereof to any other persons or circumstances, shall not
be affected thereby; it shall not be deemed that any such invalid provision affects
the consideration for this Declaration; and each provision of this Declaration shall
be valid and enforceable to the fullest extent permitted by law.
2. This Declaration shall be construed in accordance with the laws
of the State of California.
3. This Declaration shall be binding upon and inure to the benefit
of the successors and assigns of the Developer.
4. In the event action is instituted to enforce any o the provisions
of this Declaration, the prevailing party in such action shall be entitled to recover
fro the other party thereto as part of the judgment, reasonable attorney's fees and
costs.
JO 57
F. The covenants and agreements established in this Declaration shall,
GAWPDOCS\Documents\Building Horizons\BuildHorizAgree04-05.rtf
1 :..
without regard to technical classification and designation, be binding on each
Owner and any successor in interest to the Property, or any part thereof (including
each Parcel) for the benefit of and in favor of the Agency, its successor and
assigns, and the City of la Quinta, and shall remain in effect for thirty (30) days
from the date of the recording of this document).
IN WITNESS WHEREOF, Owner has executed this instrument the day and
year first hereinabove written.
Dated:
BUILDING HORIZONS, INC., a California
corporation
By:
Its:
"OWNER"
Jo 58
GAMDOMDocuments\Building Horizons\BuildHoriziAgree04-05.rtf
EXHIBIT "A" TO
ATTACHMENT NO. 5
THE PROPERTY
Assessor Parcel Numbers 774-053-013-2 and 774-053-014-3
G:\WPDOCS\Documents\Building Horizons\BuildHorizAgree04-05.rtf
i��
ATTACHMENT NO. 6
CERTIFICATE OF COMPLETION
RECORDING REQUESTED BY )
AND WHEN RECORDED MAIL TO: )
LA QUINTA REDEVELOPMENT AGENCY )
78-495 Calle Tampico )
La Quinta, California 92253
Attn: Executive Director )
Space above for Recorder's use.
CERTIFICATE OF COMPLETION OF CONSTRUCTION AND DEVELOPMENT
WHEREAS, by an Affordable Housing Agreement dated , 2004, by
and between the LA QUINTA REDEVELOPMENT AGENCY, a public" body, corporate
and politic (hereinafter referred to as the "Agency") and BUILDING HORIZONS,
INC. (collectively referred to as the "Developer"), the Developer has constructed
improvements upon the real property (the "Site"), legally described on the attached
Exhibit A, by constructing or causing to be constructed the improvements thereon
according to the terms and conditions of said Affordable Housing Agreement (the
"Agreement"); and
WHEREAS, pursuant to Section 314 of the Agreement, promptly after
completion of the Improvements the Agency shall furnish the Developer with a
Certificate of Completion upon written request therefor by the Developer; and
WHEREAS, the issuance by the Agency of the Certificate of Completion shall
be conclusive evidence that the construction of the Improvements conforms to the
Agreement; and
WHEREAS, the Developer has requested that the Agency furnish the
Developer with the Certificate of Completion; and
WHEREAS, the Agency has conclusively determined that the construction of
the Improvements conforms to the Agreement;
NOW, THEREFORE:
j �
1. As provided in the Agreement, the Agency does hereby certify that
the construction of the Improvements required to be constructed on the Site
described in Exhibit "A" hereto has been satisfactorily performed and completed, r
GAWPDOCS\Documents\Building Horizons\BuildHorizAgree04-05.rtf
and that such development an construction work complies with the Agreement.
2. This Certificate of Completion does not constitute evidence of
compliance with or satisfaction of any obligation of the Developer to any holder of
a mortgage or any insurer of a mortgage security money loaned to finance the work
of construction if improvements and development of the Site, or any part hereof.
This Certificate of Completion is not a notice of completion as referred to in
Section 3093 of the California Civil Code.
3. This Certificate of Completion does not denote completion of any
work required to be completed, other than on the Site.
4. The Deed of Trust recorded as document no. among the
official land records of the . County of Riverside and those Conditions, Covenants
and Restrictions recorded as Document No. among the official land records
of the County of Riverside shall remain in full force and effect.
IN WITNESS WHEREOF, the Agency has executed this Certificate as of this
day of , 2004.
22
ATTEST:
JUNE GREEK, Agency Secretary
NOTARY
LA QUINTA REDEVELOPMENT AGENCY
THOMAS P. GENOVESE, Executive Director
GAWPDOCS\Documents\Building Horizons\BuildHorizAgree04-05.rtf
ATTACHMENT NO. 7
MAXIMUM SALES PRICE ILLUSTRATION
[This shall be prepared when Developer ready to
start sales of units]
4:)
1 ti
BuildHoriz gree04-05
ATTACHMENT NO. 8
CERTIFICATE OF PROPOSED TRANSFEREE
THIS FORM MUST BE DELIVERED TO THE OWNER BEFORE PROCEEDING WITH
ANY TRANSFER OF THE PROPERTY.
I+IZ41
1. The Proposed Transferee is
Names:
Current
Address:
Telephone Number:
2. The address of the property which the proposed transferee desires to
purchase is (the
"Property"), which was built in the La Quinta Redevelopment Project Area No. 1.
3. The proposed transferee represents, warrants and covenants the following:
home.
(a) The proposed transferee has never previously owned a single-family
(b) The Property will be the principal residence of the proposed transferee.
(c) The combined maximum annual income in the current year for all
household members of the proposed transferee is $ (This figure
must reflect income form all sources.)
(d) The proposed transferee will deliver to the Agency a signed financial
statement on a form acceptable to the Agency.
4. The proposed transferee's household consists of the following persons who
will reside in the Property:
1 �.
G:\WPDOCS\Documents\Building Horizons\BuildHorizAgree04-05.rtf
Adults (18 or over) - [name of each]:
Minors (under 18) [name of each]:
5. The proposed transferee must submit to the Owner, on a form available. from
the Owner, an income certification so the Owner may determine if the proposed
transferee is an Eligible Person or Family.
6. A true and correct copy of the proposed transferee's most recent tax return
to the U.S. Internal Revenue Service is attached hereto.
7. The terms of the proposed transfer are:
(a) Sales price of $ This sales price is based on the
maximum price at which the Purchase Housing Cost of the Proposed Transferee
would not exceed Affordable Housing Cost. The calculation of the Sales Price
under this section is illustrated in Attachment No. to the Agreement.
IN ORDER TO ANSWER QUESTION 2(b) YOU MUST CALCULATE THE
PROPOSED SALES PRICE BASED ON AFFORDABLE HOUSING COST, TAKING
INTO CONSIDERATION ALL ITEMS LISTED IN THE DEFINITION OF PURCHASE
HOUSING COST.
(b) Price of any personal property being sold by the Owner to the
proposed transferee: $ (if none, so state)
(c) The price of $ to be paid by the proposed transferee for
any services of Owner. (If no, so state) .
(d) All other amounts of money or other consideration, if any, concerning
the Property or any other matter to be paid by the proposed transferee to the
Owner: $ (if none, so state).
(e) Sources of payment of sales price:
Sales price $
Cash down payment $
am
1 st loan $
GAWPDOCS\Documents\Building Horizons\BuildHorizAgree04-05.rtf
■
2nd loan $
Other (describe) $
Total $
(f) The financing obtained by the proposed transferee to purchase the
Property is as follows:
1st Loan:
Loan amount: $
Monthly payments: $
Interest rate
If variable interest, describe adjustment mechanism:
Due date:
Balloon payment amount:
Points and fees:
Lender:
Lender's address:
Loan amount: $
Monthly payments: $
Interest rate
If variable interest, describe adjustment mechanism:
Due date:
Balloon payment amount:
GAWPDOCS\Documents\Building Horizons\BuildHorizAgree04-05.rtf
65
Points and fees:
Lender:
Lender's address:
Other Loans: (describe, if none, so state)
(g) The monthly Purchase Housing Cost to be paid by the proposed transferee:
1 st loan monthly payment: $
2nd loan monthly payment: $
Other loans monthly payment: $
Taxes and assessments (1 /12 of
yearly taxes and assessments) : $
Insurance (1 /12 of yearly
premium): $
Homeowner's dues: $
Total: $
8. A true and correct copy of the purchase and sale or other agreement
between the owner and the proposed transferee is attached hereto.
I declare under penalty of perjury under the laws of the State of California
that the foregoing is true and correct.
PROPOSED TRANSFEREE:
Date
Signature
Signature
Print Name Print Name
GAWPDOCS\Documents\Building Horizons\BuildHorizAgree04-05.rtf
Street Address
City State Zip Code
G:\WPDOCS\Documents\Building Horizons\BuildHorizAgree04-05.rtf
Telephone
67
� y�
Developer's Certification
Based on the Proposed Transferee's Certificate above, and all documents attached
hereto, Developer hereby certifies that:
(1) Proposed Transferee is an Eligible Person or Family; and
(2) The monthly Purchase Housing Cost to be paid by the Proposed
Transferee shall not exceed the monthly Affordable Housing Cost.
[Capitalized terms used above are defined in the Agreement to which this
certificate is attached.]
OWNER:
[Name]
Date:
68
GAWPDOCS\Documents\Building Horizons\BuildHorizAgree04-05.rtf
.� � 3
ATTACHMENT NO. 9
NOTICE OF INTENT TO TRANSFER
NOTICE OF INTENT TO TRANSFER MUST BE DELIVERED
TO THE LA QUINTA REDEVELOPMENT AGENCY PRIOR
TO PROCEEDING WITH ANY TRANSFER OF THE
PROPERTY.
From: ("Owner")
To: La Quinta Redevelopment Agency
c/o City of La Quinta
Housing Department
La Quinta, CA 92253
Attn: Development Officer
Re:
La Quinta, CA (the "Property")
Redevelopment Project Area
(street address)
Owner desires to [sell, convey, transfer by inheritance or devise, lease, gift,
otherwise transfer] (circle appropriate words) the Property.
If the Agency has a program to help locate an Eligible Family, does the
Owner want the Agency to help look for an Eligible Person or Family to buy the
Property?
Yes
No
Date:
Signature of Owner
Day time telephone of Owner
Date:
Signature of Owner
Day time telephone of Owner
GAMDOMDocuments\Building Horizons\BuildHorizAgree04-05.rtf
69
J 4
ATTACHMENT NO. 10
REQUEST FOR APPROVAL OF PROPOSED TRANSFEREE
THIS FORM MUST BE DELIVERED TO THE LA QUINTA REDEVELOPMENT AGENCY
BEFORE PROCEEDING WITH ANY TRANSFER OF THE PROPERTY
20
La Quinta Redevelopment Agency
c/o City of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
Attn: Development Officer
Redevelopment Project Area
Re: Request for Approval of Proposed Transferee
To Whom It May Concern:
The undersigned is the owner of real property in La Quinta, located at
(the "Property"), which was
built within the Redevelopment Project Area.
The Owner now desires to transfer the Property and by this letter is
requesting the City of La Quinta to approve the proposed transferee.
1. The Proposed Transferee is
Names:
Current
Address:
Telephone Number:
2. The terms of the proposed transfer are
GAMDOMDocuments\Building Horizons\BuildHorizAgree04-05.rtf t
.L35
(a) Sales price of $ . This sales price is based on the lesser of
(1) Fair market value; or
The maximum price at which the Purchase Housing Cost
of the Proposed Transferee would not exceed Affordable
Housing Cost. The calculation of the Sales Price under
this subsection (ii) is illustrated in Attachment No. to
the Agreement.
IN ORDER TO ANSWER QUESTION 2(b) YOU MUST CALCULATE THE
PROPOSED SALES PRICE BASED ON AFFORDABLE HOUSING COST, TAKING
INTO CONSIDERATION ALL ITEMS LISTED IN THE DEFINITION OF PURCHASE
HOUSING COST.
(b) Price of any personal property being sold by the Owner to the
proposed transferee: $ (If none, so state)
(c) The price of $ to be paid by the proposed transferee for
any services of Owner. (If none, so state).
(d) All other amounts of money or other consideration, if any, concerning
the Property or any other matter to be paid by the proposed transferee to the
Owner: $ (if none, so state) .
(e) Sources of payment of sales price:
Sales price $
Cash down payment $
1 st loan $
2nd loan $
Other (describe) $
Total $
(f) The financing obtained by the proposed transferee to purchase the
Property is as follows:
71.
1 st Loan:
GAWPDOCS\Documents\Building Horizons\BuildHorizAgree04-05.rtf 1
Loan amount: $
Monthly payments: S
Interest rate
If variable interest, describe adjustment mechanism:
Due date:
Balloon payment amount:
Points and fees:
Lender:
Lender's address:
Loan amount: $
Monthly payments: $
Interest rate
If variable interest, describe adjustment mechanism:
Due date:
Balloon payment amount:
Points and fees:
Lender:
Lender's address:
72
Other Loans: (describe, if none, so state)
GAWPDOCS\Documents\Building Horizons\BuildHorizAgree04-05.rtf .y
(g) The monthly Purchase Housing Cost to be paid by the proposed transferee:
1 st loan monthly payment: $
2nd loan monthly payment: $
Other loans monthly payment: $
Taxes and assessments (1 /12 of
yearly taxes and assessments) : $
Insurance (1 /12 of yearly
premium): $
Homeowner's dues: $
Total: $
3.. The proposed transferee represents, warrants and covenants the following:
(a) The Property will be the principal residence of the proposed transferee.
(b) The combined maximum annual income for all household members of
the proposed transferee is $ (This figure must include al sources of
income).
(c) The proposed transferee will deliver to the Agency a signed financial
statement on a form acceptable to the Agency.
4. The proposed transferee's household consists of the following persons who
will reside in the Property:
Adults 0 8 or over) - [name of each]:
Minors (under 18) [name of each]: 3
GAWPDOMDocuments\Building Horizons\BuildHorizAgree04-05.rtf
5. The proposed transferee must submit to the Owner, on a form available from
the Owner, an income certification so the Owner may determine if the proposed
transferee is an Eligible Person or Family.
6. A true and correct copy of the proposed transferee's most recent tax return
to the U.S. Internal Revenue Service is attached hereto.
7. A true and correct copy of the purchase and sale or other agreement
between the owner and the proposed transferee is attached hereto.
I declare under penalty of perjury under the laws of the State of California
that the foregoing is true and correct.
OWNER:
Date
Signature
Print Name
Street Address
City State Zip Code
Signature
Print Name
Telephone
74
GAMDOMDocuments\Building Horizons\BuildHorizAgree04-05.rtf
PROPOSED TRANSFEREE:
Date
Signature
Print Name
Street Address
City State Zip Code
Signature
Print Name
Telephone
75
10
GAMDOMDocuments\Building Horizons\BuildHorizAgree04-05.rtf
ATTACHMENT NO. 11
RECORDING REQUESTED BY )
AND WHEN RECORDED MAIL TO: )
LA QUINTA REDEVELOPMENT AGENCY )
78-495 Calle Tampico )
La Quinta, California 92253 )
Space above for recorder.
ASSUMPTION AGREEMENT
This Assumption Agreement is entered into by:
The La Quinta Redevelopment Agency ("Agency")
("Selling Owners")
("Buying Owners")
Date of Agreement:
FACTS
A. Selling Owners are all of the owners of property commonly known as
, La Quinta, California (the "Property") and more
particularly described in Exhibit A attached hereto and incorporated herein by
reference.
B. The Property is subject to the Affordable Housing Agreement between
the Agency and Building Horizons, Inc., a California nonprofit public benefit
corporation, dated as of (the "Agreement", a copy of
which is on file with the Agency as a public record and is incorporated herein by
reference, the Grant Deed recorded at Book , Page Series M of the
official land records of Riverside County (the "Grant Deed"), and that certain
Second Deed of Trust recorded at Book Page Series No. of the
official land records of Riverside County (the "Deed of Trust", and those
Conditions, Covenants and Restrictions, recorded at Book Page Series
No. of the Official Records of Riverside County (the "Restriction"). ''the
Agreement, the Deed of Trust, and the Restriction restricts the sales price that can
be charged for the Property and the persons to whom the Property can be sold.
GAWPDOMDocuments\Building Horizons\BuildHorizAgree04-05.rtf
76
C. Buying Owners desire to purchase the Property. Buying Owners
understand that the Restriction will limit the purchase price they can receive when
they sell the Property and will limit the people to whom they can sell the Property.
D. Buying Owners are able to purchase the Property because the
purchase price of the Property may be less than other similar property without
Restrictions. For this reason Buying Owners desire to purchase the Property.
E. In order to purchase the Property, Buying Owners must assume all
obligations of the Owner under the Agreement, the Deed of Trust, and the
Restriction and must agree to bound by al provisions in the Restriction.
NOW, THEREFORE, Buying Owners agree as follows:
1. Acknowledgment of Limitation on Future Price. BUYING OWNERS
UNDERSTAND THAT WHEN BUYING OWNERS DESIRE TO SELL OR TRANSFER
THE PROPERTY THAT THE ALE PRICE CAN BE DETERMINED ONLY AT THE TIME
OF THE PROPOSED TRANSFER TAKING INTO CONSIDERATION INTEREST RATES,
PROPERTY TAXES AND OTHER FACTS THAT CANNOT BE PREDICTED
ACCURATELY AND THAT THE SALES PRICE MAY NOT INCREASE OR DECREASE
IN THE SAME MANNER AS OTHER SIMILAR PROPERTY THAT IS NOT
ENCUMBERED WITH THE AGREEMENT, THE DEED OF TRUST, AND THE
RESTRICTION, BUYING OWNERS ALSO ACKNOWLEDGE THAT ALL TIMES IN
SETTING THE SALES PRICE THE PRIMARY OBJECTIVE OF THE AGENCY AND THE
RESTRICTION IS TO PROVIDE HOUSING TO ELIGIBLE PERSONS OR FAMILIES AT
AFFORDABLE HOUSING COST. THE SALE PRICE, WHEN BUYING OWNERS
DECIDE TO SELL THE PROPERTY, WILL LIKELY BE LESS THAN OTHER SIMILAR
PROPERTIES WHICH HAVE NO RESTRICTIONS.
Buyer's Initials
2. Understand the Agreement, the Deed of Trust, and the Restriction.
Buying Owners represent that they have read the Restriction and fully understand
the Agreement, the Deed of Trust, and the Restriction.
3. Owner Occupancy. Buying Owners agree that they will occupy the
Property as their primary residence and that they will comply with all provisions of
the Agreement, the Deed of Trust and the Restriction relating to the occupancy of
the Property.
4. Assumption of Obligations Under the Agreement, the Deed of Trust,
and the Restriction. As a material consideration to the Agency in approving Buying 77
Owners, Buying Owners hereby assume al obligations of the Owner (as defined in
the Agreement, the Deed of Trust, and the Restriction), related to the Property set
forth in the Agreement, the Deed of Trust, and the Restriction. Buying Owners i ZI o
GAMDOMDocuments\Building Horizons\BuildHorizAgree04-05.rtf
agree to be bound by all duties and obligations of the Owner in the Agreement, the
Deed of Trust, and the Restriction and agree to comply with all provisions thereof
for the term of the Agreement, the Deed of Trust and the Restriction. Buying
Owners agree as set forth above in order to have the benefit of the restricted
purchase price for which the Property is offered.
5. Remedies. Upon the occurrence of an Event of Default, the Agency
shall have the following remedies:
(a) Specific Performance. The Agency shall have the right to bring
an action for specific performance of this Agreement to require the Developer to
comply whit the terms and provisions of this Agreement. Developer acknowledges
that it is the intention of Developer and the Agency that these provisions be
specifically enforceable to maintain the supply of affordable housing for Eligible
Persons and Families.
(b) Application to Court. The Agency may apply to a court of
competent jurisdiction for an injunction prohibiting a proposed Transfer in violation
of this Agreement, for a declaration that a Transfer is void or for any other such
relief as may be appropriate.
(c) All Remedies Available and Cumulative. Upon the occurrence of
an Event of Default, the Agency shall have the right to exercise all the rights and
remedies, and to maintain any action at law or suits in equity or other real property
proceedings, to enforce the provisions of this Assumption Agreement, the
Agreement, the Restriction and the Deed of Trust, and to cure any Event of Default
or violation hereof. No delay in enforcing the provisions thereof as to any Event of
Default or violation shall impair, damage or waive the right of the Agency to
enforce the provisions of this Agreement in the future or any continuing or new
breach or violation of any of the covenants or restrictions contained in this
Assumption Agreement, the Agreement, the Restrictions, and the Deed of Trust.
All rights and remedies, including without limitation those set forth in Section (a)
above, of any party legally entitled to enforce this Assumption Agreement, the
Agreement, the Restrictions, and the Deed of Trust, shall be cumulative and the
exercise of any such right or remedy shall not impair or prejudice and shall not be a
waiver of the right to exercise any other such right and remedy.
IN WITNESS WHEREOF, the parties have executed this Assumption
Agreement to be effective on the date of recordation of a deed conveying the
Property to Buying Owners.
Date
Buying Owner
78
Date
Buying Owner
GAWPDOCS\Documents\Building Horizons\BuildHorizAgree04-05.rtf
Based on information provided by Selling Owners and Buying Owners and on
Buying Owners execution hereof, the La Quinta Redevelopment Agency hereby
approves Buying Owners to purchase the Property subject to this Agreement.
Date
LA QUINTA REDEVELOPMENT AGENCY
Name:
Title:
79
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