2005 05 17 RDA6�(#qkadja
Redevelopment Agency Agendas are
Available on the City's Web Page
@ www.la-quinta.org
REDEVELOPMENT AGENCY
AGENDA
CITY COUNCIL CHAMBERS
78-495 Calle Tampico
La Quinta, California 92253
Regular Meeting
Tuesday, May 17, 2005 - 2:00 P.M.
Beginning Resolution No. RA 2005-004
CALL TO ORDER
Roll Call:
Agency Board Members: Adolph, Henderson, Perkins, Sniff, and Chairman Osborne
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 54656.8 CONCERNING POTENTIAL
TERMS AND CONDITIONS OF ACQUISITION AND/OR DISPOSITION OF REAL
PROPERTY LOCATED SOUTHEAST OF THE MILES AVENUE AND WASHINGTON
STREET INTERSECTION AND NORTH OF THE WHITEWATER CHANNEL (APNs 604-
040-022/037). PROPERTY OWNER/NEGOTIATOR: RICHARD OLIPHANT, CP
DEVELOPMENT LA QUINTA, LLC
Redevelopment Agency Agenda 1 May 17, 2005
RECESS TO CLOSED SESSION
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 SPECIAL MEETING OF APRIL 20, 2005
2. APPROVAL OF MINUTES OF MAY 3, 2005
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 MAY 17, 2005.
2. APPROVAL OF TREASURER'S REPORT DATED MARCH 31, 2005.
3. APPROVAL OF REVENUE AND EXPENDITURES REPORT DATED MARCH 31, 2005.
4. APPROVAL OF A RESOLUTION ADOPTING THE FISCAL YEAR 2005/2006
THROUGH 2O09/2010 CAPITAL IMPROVEMENT PROGRAM AND MAKING
CERTAIN FINDINGS PURSUANT TO HEALTH AND SAFETY CODE SECTION
33445(a).
Redevelopment Agency Agenda 2 May 17, 2005
BUSINESS SESSION -NONE
STUDY SESSION — NONE
CHAIR AND BOARD MEMBERS' ITEMS — NONE
PUBLIC HEARINGS
1. JOINT PUBLIC HEARING BETWEEN THE CITY COUNCIL AND REDEVELOPMENT
AGENCY TO CONSIDER THE SALE OF REAL PROPERTY LOCATED AT 54-300
AVENIDA VELASCO BY AND BETWEEN THE LA QUINTA REDEVELOPMENT
AGENCY AND RAMON MARTINEZ AND MARIA SALCIDO.
A. MINUTE ORDER ACTION
ADJOURNMENT
Adjourn to a special meeting of the Redevelopment Agency to be held on Wednesday, May
18, 2005; and to a regularly scheduled meeting of the Redevelopment Agency to be held
on June 7, 2005, commencing with closed session at 2:00 p.m. and open session at 3:00
p.m. in the City Council Chambers, 78-495 Calle Tampico, La Quinta, CA 92253.
DECLARATION OF POSTING
I, June S. Greek, City Clerk of the City of La Quinta, do hereby declare that the foregoing
agenda for the La Quinta Redevelopment Agency meeting of Tuesday, May 17, 2005, was
posted on the outside entry to the Council Chamber at 78-495 Calle Tampico and on the
bulletin boards at 51-321 Avenida Bermudas and 78-630 Highway 1 1 1, on Friday, 13,
2005.
DATED: May 13, 2005
JUNE S. GREEK, CMC, City Clerk
City of La Quinta, California
Redevelopment Agency Agenda 3 May 17, 2005
AGENDA CATEGORY:
BUSINESS SESSION
COUNCIL/RDA MEETING DATE: MAY 17, 2005
CONSENT CALENDAR
ITEM TITLE:
Demand Register Dated May 17, 2005
RECOMMENDATION:
It is recommended the Redevelopment Agency Board:
STUDY SESSION
PUBLIC HEARING
Receive and File the Demand Register Dated May 17, 2005 of which $204,983.07
represents Redevelopment Agency Expenditures.
PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA
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AGENDA CATEGORY:
BUSINESS SESSION:
COUNCIL/RDA MEETING DATE: May 17, 2005 CONSENT CALENDAR: C -
ITEM TITLE: STUDY SESSION:
Transmittal of Treasurer's Report
PUBLIC HEARING:
as of March 31, 2005
RECOMMENDATION:
It is recommended the La Quinta Redevelopment Agency:
Receive and File the Treasurer's Report as of March 31, 2005.
PLEASE SEE BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA
U �
5
OF9ti AGENDA CATEGORY:
COUNCIL/RDA MEETING DATE: May 17, 2005
Transmittal of Revenue and Expenditure
Report for March 31, 2005
RECOMMENDATION:
Receive and File
BACKGROUND AND OVERVIEW:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Transmittal of the March 31, 2005 State of Revenue and Expenditures for the La
Quinta Redevelopment Agency.
Respectfully submitted,
ohn M. Falconer, Finance Director
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachments 1 : Revenue and Expenditures Report, March 31, 2005
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
LOW/MODERATE TAX FUND:
Tax Increment
Allocated Interest
Non Allocated Interest
Miscellaneous revenue
Non Allocated Interest
LQRP-Rent Revenue
Home Sales Proceeds
Sale of Land
Sewer Subsidy Reimbursements
Rehabilitation Loan Repayments
2nd Trust Deed Repayment
Transfer In
TOTAL LOW/MOD TAX
DEBT SERVICE FUND:
Tax Increment
Allocated Interest
Non Allocated Interest
Interst - County Loan
Interest Advance Proceeds
Transfers In
TOTAL DEBT SERVICE
CAPITAL IMPROVEMENT FUND - NON-TAXABLE
Pooled Cash Allocated Interest
Non Allocated Interest
Litigation Settlement Revenue
Loan Proceeds
Rental Income
Transfers In
TOTAL CAPITAL IMPROVEMENT
CAPITAL IMPROVEMENT FUND - TAXABLE
Pooled Cash Allocated Interest
Non Allocated Interest
Litigation Settlement Revenue
Bond proceeds
Rental Income
Transfers In
TOTAL CAPITAL IMPROVEMENT
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
6,480,979.00
3,272,995.60
3,207,983.40
20,800.00
26,268.95
(5,468.95)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
341,000.00
234,977.80
106,022.20
165,000.00
580,929.87
(415,929.87)
660,000.00
0.00
660,000.00
0.00
65,681.63
(65,681.63)
0.00
86,484.89
(86,484.89)
0.00
1,241,239.07
(1,241,239.07)
0.00
0.00
0.00
7,667,779.00
5,508,577.81
2,159,201.19
25,923,915.00
13,091,982.45
12,831,932.55
66,000.00
115,421.80
(49,421.80)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2.478.347.00
888 677.03
1,589,669.97
28,468,262.00
14,096,081.28
14, 372,180.72
150,000.00
113,033.79
36,966.21
750,000.00
403,343.20
346,656.80
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
900,000.00
516,376.99
383,623.01
0.00
0.00
0.00
50,000.00
39,452.00
10,548.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
50,000.00
39,452.00
10,548.00
2
LA QUINTA REDEVELOPMENT AGENCY
EXPENDITURE SUMMARY
PROJECT AREA NO. 1:
LOWIMODERATE BOND FUND
PERSONNEL
SERVICES
REIMBURSEMENT TO GEN FUND
HOUSING PROJECTS
TRANSFERS OUT
TOTAL LOW/MOD BOND
07/01/2004 - 03/31/05 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
LOWIMODERATE TAX FUND:
4,900.00
5,613.30
0.00
(713.30)
PERSONNEL
253,157.00
173,834.96
0.00
79,322.04
SERVICES
BUILDING HORIZONS
BU
BU
250,000.00
150,000.00
0.00
0.00
100,000.00
(89,502.55)
RENTAL PROGRAM
150,000.00
3,118,240.00
239,502.55
155,000.00
0.00
2,963,240.00
LQ HOUSING PROGRAM
LOWMOD VILLAGE APARTMENTS
400,000.00
0.00
0.00
400,000.00
LQRP -REHABILITATION
0.00
276,411.00
0.00
119,220.87
0.00
0.00
0.00
157,190.13
T REHABILITATION
APT
LQ HOUSING PROJECTS
500,000.00
(55,000.00)
0.00
555,000.00
REIMBURSEMENT TO GEN FUND
668,272.00
501,204.01
888,677.03
0.00
0.00
167,,66 99
97
1,921,274.28
TRANSFERS OUT
TOTAL LOWIMOD TAX
2,478,347.00
8,099,327.00
2,178,052.72
0.00
5,921,274.28
DEBT SERVICE FUND:
496,585.00
360,415.19
0.00
136,169.81
SERVICES
BOND PRINCIPAL
2,395,000.00
2,395,000.00
0.00
0.00
0.00
(0.26)
BOND INTEREST
7,929,969.00
952,764.00
7,929,969.26
714,573.00
0.00
238,191.00
INTEREST CITY ADVANCE
PASS THROUGH PAYMENTS
12,283,973.00
6,585,227.24
0.00
5,698,745.76
ERAS SHIFT
2,780,728.00
1,995,101.00
0.00
511,141.52
0.00
0.00
2,780,728.00
1,483,959.48
TRANSFERS OUT
TOTAL DEBT SERVICE
28 834,120.00
18,496,326.21
0.00
10,337,793.79
CAPITAL IMPROVEMENT FUND:
4,900.00
5,068.15
0.00
(168.15)
PERSONNEL
SERVICES
116,393.00
90,942.35
0.00
25,450.65
LAND ACQUISITION
0.00
0.00
0.00
0.00
0.00
0.00
0.00
ASSESSMENT DISTRICT
ADVERTISING -ECONOMIC DEV
0.00
40,000.00
37,249.53
0.00
2,750.47
ECONOMIC DEVELOPMENT
50,000.00
16,770.12
0.00
0.00
33,229.88
0.00
BOND ISSUANCE COSTS
0.00
0.00
0.00
0.00
0.00
0.00
CAPITAL - BUILDING
C
REIMBURSEMENT TO GEN FUND
292,413.00
236,573.30
0.00
55,839.70
TRANSFERS OUT
TOTAL CAPITAL IMPROVEMENT
39,278,614.00
39 782,320.00
10,536,440.15
10,923,043.60
0.00
0.00
28,742,173.85
28,859,276.40
CAPITAL IMPROVEMENT FUND/TAXABLE BOND
0.00
0.00
0.00
0.00
BOND ISSUANCE COSTS
5,778.816.00
5,664,810.15
0.00
114,005.85
TRANSFERS OUT
TOTAL CAPITAL IMPROVEMENT
5,778,816.00
5,664,810.15
0.00
114,005.85
3
LA QUINTA REDEVELOPMENT AGENCY
REVENUE SUMMARY
PROJECT AREA NO.2:
LOW/MODERATE BOND FUND:
Allocated Interest
Non Allocated Interest
Bond proceeds (net)
Transfer In
TOTAL LOW/MOD 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 LOW/MOD TAX
2004 LOW/MODERATE 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
REVENUE
GRAND TOTALS PER REPORT
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
3,345,543.00
1,692,273.20
1,653,269.80
24,100.00
21,572.47
2,527.53
0.00
41,718.26
(41,718.26)
7,054,074.00
7,096,293.56
(42,219.56)
0.00
193,423.86
(193,423.86)
0.00
332,746.70
(332,746.70)
0.00
0.00
0.00
8,637,300.00
801,359.00
7,835,941.00
0.00
0.00
0.00
19,061,017.00
10,179,387.05
8,881,629.95
0.00
0.00
0.00
0.00
0.00
0.00
1,000,000.00
824,480.46
175,519.54
0.00
0.00
0.00
1,000,000.00
824,480.46
175,519.54
13,382,173.00
6,769,092.82
6,613,080.18
0.00
75,393.22
(75,393.22)
0.00
(5.35)
5.35
0.00
0.00
0.00
4,099 819.00
3,401,994.57
697,824.43
17,481,992.00
10,246,475.26
7,235,516.74
50,000.00
30,915.01
19,084.99
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
50,000.00
30,915.01
19,084.99
REMAINING
BUDGET RECEIVED BUDGET
206,704,974.68 112,320,521.39 94,384,453.29
4
LA QUINTA REDEVELOPMENT AGENCY
EXPENDITURE SUMMARY
PROJECT AREA NO. 2:
07/01/2004 - 03/31/65 REMAINING
BUDGET EXPENDITURES ENCUMBERED BUDGET
LOW/MODERATE BOND FUND
0.00
0.00
0.00
0.00
2nd TRUST DEEDS
0.00
0.00
0.00
0.00
LAND
BOND ISSUANCE COSTS
0.00
0.00
0.00
0.00
TRANSFERS OUT
0.00
0.00
0.00
0.00
TOTAL LOW/MOD BOND
0.00
0.00
0.00
0.60
LOW/MODERATE TAX FUND:
PERSONNEL
2,900.00
3,067.00
0.00
(167.00)
SERVICES
192,088.00
289,398.57
0.00
(97,310.57)
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
194,199.96
0.00
(194,199.96)
LOW MOD HOUSING PROJECT/47TH/ADAMS PROJ
776,239.00
44,351.00
0.00
731,888.00
48TH/ADAMS PLANNING
150,000.00
0.00
0.00
150,000.00
FORECLOSURE ACQUISITION
150,000.00
150,000.00
0.00
0.00
REIMBURSEMENT TO GEN FUND
333,272.00
249,953.99
0.00
83,318.01
TRANSFERS OUT
7,350,044.00
6,802,575.91
0.00
547,468.09
TOTAL LOW/MOD TAX
13,397,746.00
7,745,922.13
0.00
5,651,823.87
2004 LOW/MODERATE BOND FUND
0.00
0.00
0.00
0.00
2nd TRUST DEEDS
0.00
0.00
0.00
0.00
LAND.
BOND ISSUANCE COSTS
0.00
0.00
0.00
0.00
TRANSFERS OUT
1,920,965.00
52,504.00
0.00
1,868,461.00
TOTAL LOW/MOD BOND
1,920,965.00
52,504.00
0.00
1,868,461.00
DEBT SERVICE FUND:
SERVICES
179,013.00
179,518.60
0.00
(505.60)
BOND PRINCIPAL
95,000.00
95,000.00
0.00
0.00
BOND INTEREST
323,264.00
323,263.75
0.00
0.25
INTEREST CITY ADVANCE
1,053,580.00
1,094,679.00
0.00
(41,099.00)
INTEREST - ERAF UMOD LOAN
0.00
0.00
0.00
0.00
PASS THROUGH PAYMENTS
11,394,169.00
5,739,111.68
0.00
5,655,057.32
TRANSFERS OUT
994,948.00
254,904.01
0.00
740,043.99
TOTAL DEBT SERVICE
14,039,974.00
7,686,477.04
0.00
6,353,496.96
CAPITAL IMPROVEMENT FUND:
PERSONNEL
2,900.00
3,395.71
0.00
(495.71)
SERVICES
117,820.00
64,684.35
0.00
53,135.65
ADVERTISING -ECONOMIC DEV
250.00
0.00
0.00
250.00
ECONOMIC DEVELOPMENT ACTIVITY
40,000.00
20,057.40
0.00
19,942.60
REIMBURSEMENT TO GEN FUND
41,443.00
31,083.70
0.00
10,359.30
TRANSFERS OUT
1,826,079.00
2,141 046.08
0.00
(314,967.08)
TOTAL CAPITAL IMPROVEMENT
2,028,492.00
2,260,267.24
0.00
(231,775.24)
COUNCIL/RDA MEETING DATE: May 17, 2005
ITEM TITLE: Approval of a Resolution Adopting the
Fiscal Year 2005/2006 Through 2009/2010 Capital
Improvement Program and Making Certain Findings
Pursuant to Health and Safety Code Section 33445(a)
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Adopt a Resolution approving the Fiscal Year 2005/2006 through 2009/2010 Capital
Improvement Program (CIP) and making certain findings pursuant to Health and Safety
Code Section 33445(a).
FISCAL IMPLICATIONS:
Adoption of the Resolution will approve the projects identified in the Fiscal Year
2005/2006 through 2009/2010 CIP and make the necessary findings pursuant to the
Health and Safety Code for use of Redevelopment Agency (RDA) Project Area No. 1
funds. Allocation of funds for these projects will not be approved until the City
Council approves the Fiscal Year 2005/2006 annual operating budget.
The first year of the five-year forecast, or capital budget, will be included in the City's
annual operating budget. When the City Council approves the annual operating budget
for Fiscal Year 2005/2006, it will also authorize the expenditure of $24,886,224 for
Fiscal Year 2005/2006 capital project expenditures.
The CIP was developed in a conservative manner using updated cost estimates for all
projects. Projections were assumed using conservative estimates consistent with
operating revenues. The projects for the next five years are based on considered
need, and funding the City has available at this time with conservative projections of
Development Impact Fees (DIF) anticipated being collected (300 units per year).
CHARTER CITY IMPLICATIONS:
Because RDA funding will be used on several of the proposed projects, the RDA
funded projects will be bid with a requirement that the contractors pay prevailing
wage.
BACKGROUND AND OVERVIEW:
On March 15, 2005, staff presented the CIP and five-year forecast to City Council for
review during a Study Session. The document is a statement of the City's goals,
objectives, and priorities for a five-year CIP and the financial commitments required to
accomplish those objectives. The preparation of this document has been a joint effort
of the City Manager's Office, Public Works Department, Finance Department, Building
and Safety Department, Community Services Department, Community Development
Department, and the City Clerk's Office.
The purpose of the CIP is to provide the City with a long-range program for major
municipal capital construction projects based on the systematic development of an
accompanying financial plan. The CIP is a five-year planning instrument used by the
City to identify capital improvement needs and to coordinate financing and timing of
those needs in a manner that maximizes benefit to the public. As each annual budget
is prepared, additional projects and priority needs are identified and added to the
program to maintain a total five-year plan.
The amount allocated from the CIP for first year projects is called the capital budget
and is based on the City's present fund balances. The capital budget is incorporated
into the annual City "operating" budget, which appropriates funds for specific
facilities, equipment and improvements. Projects slated for subsequent years in the
program are approved on a planning basis only and do not receive ultimate expenditure
authority until they are incorporated into the capital budget.
The 2004/2005 CIP identified $10,458,076 in capital improvement projects. All
2004/2005 projects are either completed or currently in the design or construction
stage, or will have contracts awarded by the end of the fiscal year.
Included in the CIP document is a "Capital Improvement Program Fiscal Year
2004/2005 Project Status Report," which lists: one 1996/1997 project carried -over;
two 2000/2001 projects underway; one 2001 /2002 project complete; three
2001 /2002 projects underway; four 2002/2003 projects complete; four 2002/2003
projects underway; eight 2003/2004 projects underway; one 2003/2004 project
complete; and four 2004/2005 projects underway. Also included is a "Carryover
Project Summary" which provides the life -to -date expenditures for all approved active
CIP projects.
Overall, the City is proposing approximately $27,594,921 in projects during the next
five years. The remaining projects represent unfunded "Additional Projects" totaling
$78,154,443. The funding of the "Additional Projects" listed will require future City
Council consideration to ensure revenue availability.
2
This CIP is developed using fiscally conservative methodology as directed by the City
Council. Prior to proceeding with any project, City Staff will present the project to the
City Council for authorization.
Health and Safety Code Section 33445(a) requires the City Council to make certain
findings regarding the use of RDA funding for capital improvement and to consent to
the use of the funding. The attached resolution contains the required findings, which
are supported by the information in this report and by the staff presentation which will
be made during the hearing.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency include:
1. Adopt a Resolution approving the Fiscal Year 2005/2006 through 2009/2010
Capital Improvement Program and making certain findings pursuant to Health
and Safety Code Section 33445(a); or
2. Do not adopt a Resolution approving the Fiscal Year 2005/2006 through
2009/2010 Capital Improvement Program and making certain findings pursuant
to Health and Safety Code Section 33445(a); or
3. Provide staff with alternative direction.
Respectfully submitted,
Ti othy R. Jon sson . E.
ublic Works Direct /City Engineer
Approved for submission by:
Thomas P. Genovese, Executive Director
3
RESOLUTION NO. RA 2005-
A RESOLUTION OF THE LA QUINTA REDEVELOPMENT AGENCY OF
THE CITY OF LA QUINTA, CALIFORNIA, ADOPTING THE FISCAL
YEAR 2005/2006 THROUGH 2O09/2010 CAPITAL IMPROVEMENT
PLAN AND MAKING CERTAIN FINDINGS PURSUANT TO HEALTH
AND SAFETY CODE SECTION 33445(a) AND CONSENTING TO THE
EXPENDITURE OF FUNDS FOR THE IMPROVEMENTS
WHEREAS, pursuant to Government Code Section 66002, the La Quinta
Redevelopment Agency (Agency) is required to review and adopt a Capital
Improvement Plan (the "Plan"); and
WHEREAS, the City is required to conduct a noticed public hearing for
consideration of adoption of the Plan; and
WHEREAS, notice of the public hearing has been given pursuant to
Government Code Section 65090; and
WHEREAS, the Plan is a five-year planning instrument used by the City to
identify capital improvement needs and to coordinate financing and timing of those
needs in a manner that maximizes the return to the public; and
WHEREAS, the Plan is . a statement of the City's goals, objectives and
priorities for a five-year Plan and the financial commitments required to accomplish
those objectives; and
WHEREAS, the Fiscal Year 2005/2006 through 2009/2010 Plan proposes
approximately $27,594,921 in improvement projects and $78,154,443 of
unfunded additional improvement projects over the five-year period, commencing
on July 1, 2005 and ending June 30, 2010; and
WHEREAS, the amount allocated from the Plan for first -year projects, called
the capital budget, proposes $24,886,224 in improvements, as shown in Exhibit 1,
heretofore made a part of this Resolution; and
WHEREAS, there is inadequate funding within the City's General Fund or
from other sources to completely and fully fund the improvements identified within
the capital budget; and
WHEREAS, the completion of the improvements identified within the capital
budget will help to obtain the goals and objectives of La Quinta Redevelopment
Project Area No. 1 ("Project Area") as well as to afford an opportunity to eliminate
conditions of blight in the Project Area; and
N
Resolution No. RA 2005-
Capital Improvement Plan
Adopted: May 17, 2005
Page 2
WHEREAS, it would be in the best interest of the public to completely fund
all improvements identified within the capital budget.
NOW THEREFORE, BE IT RESOLVED, by the Agency:
SECTION 1. The above recitations are true and correct and are adopted as
the findings of the Agency.
SECTION 2. The Agency does hereby adopt the Fiscal Year 2005/2006
through 2009/2010 Capital Improvement Plan, and approve the capital budget, as
shown in Exhibit 1, heretofore made a part of this Resolution.
SECTION 3. The Agency hereby consents to Agency funding to be utilized to
fund certain improvements within the Fiscal Year 2005/2006 Capital Budget.
SECTION 4. Pursuant to Health and Safety Code Section 33445(a), the
Agency finds and determines that:
A. The proposed improvements identified within the Fiscal Year
2005/2006 Capital Budget are of benefit to the Agency Project Area No. 1 and to
the immediate neighborhoods in which the improvements will be located.
B. No other reasonable means of financing the improvements are
available to the community.
C. The proposed improvements identified within the Fiscal Year
2005/2006 Capital Budget will assist in the elimination of one or more blighting
conditions inside the Project Area and are consistent with the Agency's
implementation plan adopted pursuant to Section 33490.
BE IT FURTHER RESOLVED, the Agency for the City of La Quinta authorizes
the inclusion of said capital budget into the Fiscal Year 2005/2006 operating
budget, which appropriates funds for specific facilities, equipment and
improvements.
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Resolution No. RA 2005-
Capital Improvement Plan
Adopted: May 17, 2005
Page 3
PASSED, APPROVED and ADOPTED at a regular meeting of the Agency held
on this 17th day of May, 2005, by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Lee Osborne, Chairperson
City of La Quinta, California
ATTEST:
JUNE S. GREEK, CMC, Agency Secretary
City of La Quinta, California
(City Seal)
APPROVED AS TO FORM:
M. KATHERINE JENSON, Agency Counsel
City of La Quinta, California
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COUNCIL/RDA MEETING DATE: May 17, 2005
ITEM TITLE:
A Joint Public Hearing Between the City Council
and Redevelopment Agency to Consider the Sale of
Real Property Located at 54-300 Avenida Velasco
By and Between the La Quinta Redevelopment
Agency and Ramon Martinez and Maria Salcido
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING: /
Approve the sale of the single-family home located at 54-300 Avenida Velasco to
Ramon Martinez and Maria Salcido for a purchase price of $165,000, and authorize
the Executive Director to execute the necessary documents.
FISCAL IMPLICATIONS:
The Agency will receive approximately $97,000 from sale proceeds and will fund a
$60,000 silent second trust deed loan; funding the second trust deed loan will
insure that the dwelling is affordable to a very low-income household.
BACKGROUND AND OVERVIEW:
In August 1995 the Agency acquired 50 single-family homes in the Cove to remove
them from bankruptcy proceedings filed by the then owner, Coachella Valley Land.
Known as the La Quinta Rental Housing Program, these dwellings were rented to
very low-income Section 8 households. In February 1998, the Agency directed
staff to sell two units per year first to qualified tenants, and second to other eligible
very low-income households. Since 1998, the Agency has also been substantially
rehabilitating these units in order to count them towards the Agency's affordable
housing production requirements. State law requires existing dwellings be
substantially rehabilitated (wherein the rehabilitation costs are 25% or greater than
current market value) in order to count them as part of the Agency's affordable
housing production efforts. Property rehabilitation costs have been funded from
rental income.
S:\CityMgr\STAFF REPORTS ONLY\PH 2 RDA house sale Velasco.doc
When the Agency initiated relocation activities at the Vista Dunes Mobile Home
Park, staff began working with interested Park residents who could qualify for first
trust deed mortgage loans to purchase homes that were in the Rental Housing
Program or featured an Agency sponsored silent second trust deed mortgage. The
Rental Housing Program property manager and/or local realtors (in the case of
homes with silent second trust deed mortgages) continually contact staff when
Rental Housing Program homes are vacant, or when Agency second trust deed
mortgage homes are offered for sale. Mr. Martinez and Ms. Salcido are Vista
Dunes residents who expressed interest in purchasing a home. A Rental Housing
Program home was available and they subsequently qualified for a first trust deed
mortgage loan.
The sale transaction would be structured wherein an Agency silent second trust
deed mortgage would cover the difference between the sales price, and the down
payment and an affordable first trust deed mortgage. If this sale is authorized, the
unit will be sold for $165,000 with the buyer funding a 25% or $42,000 down
payment, and a private lender originating a $63,000 first trust deed mortgage (the
maximum loan the homebuyer can obtain and have overall housing costs affordable
to a very low-income household). The Agency would convert $60,000 of its equity
into a silent second trust deed loan. This sale would be the 18th Rental Housing
Program unit to be sold; ten were sold to existing tenants, and eight to non -tenant
households.
Attachment 1 is a Summary Report that further details this transaction. Pursuant
to the Redevelopment Law, a joint public hearing of the City Council and Agency
Board must be held prior to approving the sale of Agency property purchased with
tax increment revenue.
FINDINGS AND ALTERNATIVES:
Alternatives available to the Redevelopment Agency include:
1. Approve the sale of the single-family home located at 54-300 Avenida
Velasco to Ramon Martinez and Maria Salcido for a purchase price of
$165,000, and authorize the Executive Director to execute the necessary
documents; or
2. Do not approve the sale of the single-family home located at 54-300 Avenida
Velasco to Ramon Martinez and Maria Salcido for a purchase price of
$165,000, and do not authorize the Executive Director to execute the
necessary documents; or
S:\CityMgr\STAFF REPORTS ONLY\PH 2 RDA house sale Velasco.doc ��
3. Provide staff with an alternative direction.
Respectfully submitted,
Douglas RoEvans
Community Development Director
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachment: 1. Summary Report
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ATTACHMENT #1
SUMMARY REPORT
FOR THE PROPOSED RESIDENTIAL HOME SALE AGREEMENT
BETWEEN THE
LA QUINTA REDEVELOPMENT AGENCY
AND
RAMON MARTINEZ AND MARIA SALCIDO
May 17, 2005
INTRODUCTION
This document is the Summary Report ("Report") for the proposed Sale Agreement
("Agreement") between the La Quinta Redevelopment Agency ("Agency") and
Ramon Martinez and Maria Salcido ("Buyers"). The Agreement facilitates the sale
of an Agency owned single-family dwelling to the Buyer.
This Report has been prepared pursuant to Section 33433 of the California Health
and Safety Code (California Community Redevelopment Law) and presents the
following:
• A summary of the proposed transaction.
• The cost of the sale to the Agency.
• The estimated value of the interest to be conveyed, determined at the highest
and best uses permitted by the Agency's Redevelopment Plan.
• The estimated value to be conveyed, determined by the use and with the
conditions, covenants, and development costs required by the Agreement.
• An explanation of why the sale, pursuant to the Agreement, will assist in the
elimination of blight.
The Subject Property
The home is a vacant 3-bedroom 2-bath single-family dwelling located at 54-300
Avenida Velasco within La Quinta Redevelopment Project Area No. 1 ("Property").
In August, 1995, the Agency acquired 50 single family homes to remove them
from bankruptcy proceedings filed by the then owner, Coachella Valley Land.
Known as the La Quinta Rental Housing Program, these dwellings were rented to
very low income Section 8 households. In February 1998, the Agency directed
staff to sell two units per year first to qualified tenants, and second, to other
eligible very low income households. Since 1998, the Agency has also been
substantially rehabilitating these units in order to count them towards that
Agency's affordable housing production requirements. State law requires that an
existing dwelling be substantially rehabilitated (wherein the rehabilitation costs are
04
25 % or greater than current market value) in order to count them as part of the
Agency's affordable housing production efforts. Property rehabilitation costs have
been funded from rental income. The existing tenant recently vacated the property
and per Agency policy, staff initiated the sale of this unit to a very low income
household.
A SUMMARY OF THE PROPOSED TRANSACTION
The Agency is in the process of relocating residents from the Vista Dunes Mobile
Home Park. The Buyer, a Vista Dunes resident who was being relocated,
expressed interest in purchasing a home in La Quinta and subsequently qualified for
a first trust deed loan. The Agreement facilitates the sale of the Property to the
Buyer, who will occupy the dwelling. The $165,000 sales price will be funded
through a combination of the Buyer's $42,000 down payment, a $63,000 first
trust deed mortgage, and $60,000 of the Agency's equity that will be converted
into a silent second trust deed loan. This second trust deed loan will include
covenants to insure that the Property will remain affordable to very low income -
household for 45 years.
THE COST OF THE SALE TO THE AGENCY
The Agency has invested $127,750 in the Property through a combination of the
$86,500 initial purchase cost and $41,250 of expenses related to substantially
rehabilitating the dwelling. Since 1998, the Agency has been substantially
rehabilitating the Rental Housing Program units in order to count them towards the
Agency's affordable housing production requirements. State law requires that
existing dwellings be substantially rehabilitated (wherein the rehabilitation costs are
25 % or greater than current market value) in order to count them as part of the
Agency's affordable housing production efforts. Property rehabilitation costs were
funded from rental income.
Per the Agreement the Agency will sell the Property for $165,000; of this amount
the Agency will receive $97,000 in sale proceeds and convert $60,000 of its
equity into a silent second trust deed mortgage loan of $60,000 in order to insure
that the annual costs are affordable to very low income households. The Agency
will recover 76% of its investment to date from the sale proceeds.
ESTIMATED VALUE OF THE INTEREST TO BE CONVEYED AT THE HIGHEST AND
BEST USES PERMITTED BY THE AGENCY'S REDEVELOPMENT PLAN
The Redevelopment Plan for La Quinta Redevelopment Project No. 1 provides that
the Property shall be used for low -density residential development. Current
residential property sales for like dwellings in the Cove market area indicate values
laquinta\lghp\rental housing\SumRpt54-300 velasco 2 05
of $210,000 to $225,000 for three bedroom, two bath single family dwellings in
good condition.
ESTIMATED VALUE OF THE INTEREST TO BE CONVEYED DETERMINED BY THE
USE, AND WITH THE CONDITIONS, COVENANTS
The Agreement provides that the Property will be sold for $165,000. This value
was selected in order to facilitate the sale at a cost affordable to a very low income
household.
EXPLANATION OF WHY THE SALE OF THE PROPERTY PURSUANT TO THE
AGREEMENT WILL ASSIST IN THE ELIMINATION OF BLIGHT
The Agreement does not eliminate blight in that it does not facilitate a transaction
that remedies blight. Instead the Agreement expands the supply of affordable
ownership housing in the Project Area. Prior to the sale, the Agency substantially
rehabilitated the Property to extend the Property's economic life, to reduce the
maintenance burdens for the family that will occupy this unit, and to improve
operating efficiencies by installing low water landscaping and efficient heating, air
conditioning and water heating devices. The Agreement includes covenants that
require the dwelling to remain affordable to very low income households for a 45
year period. This effort not only preserved housing that was affordable to very low
income households but will also insure that this dwelling remains affordable for the
longest feasible time.
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