The URL can be used to link to this page

2005 06 07 RDAeaf 4 4 adja 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, June 7, 2005, 2:00 p.m. Beginning Resolution No. RA 2005-005 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 LEGAL LITIGATION, LA QUINTA REDEVELOPMENT INC., RIVERSIDE SUPERIOR COURT CASE GOVERNMENT CODE SECTION 54956.9(a). COUNSEL REGARDING PENDING AGENCY V. KSL DESERT RESORTS, NO. INC 044575, PURSUANT TO Redevelopment Agency Agenda June 7, 2005 2. CONFERENCE WITH THE AGENCY'S REAL PROPERTY NEGOTIATOR, DOUGLAS EVANS, 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 649-303-034). PROPERTY OWNER/NEGOTIATOR: ALFREDO IZMAJTOVICH 3. CONFERENCE WITH THE 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 ± TWO ACRES LOCATED AT THE SOUTHWEST CORNER OF DUNE PALMS ROAD AND HIGHWAY 111. PROPERTY OWNER/NEGOTIATOR: CHRIS CLARKE, STAMKO DEVELOPMENT. ADJOURN 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 MAY 17, 2005. 2. APPROVAL OF MINUTES OF MAY 18, 2005 Redevelopment Agency Agenda 2 June 7, 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. ADOPTION OF A RESOLUTION MAKING CERTAIN FINDINGS PURSUANT TO HEALTH AND SAFETY CODE SECTION 33445(A) AND APPROVAL OF A FINANCE AGREEMENT BETWEEN THE CITY OF LA QUINTA AND THE LA QUINTA REDEVELOPMENT AGENCY FOR DOWNTOWN PARKING LOT AND LIGHTING IMPROVEMENTS, PROJECT NO. 2003-14. 3. APPROVAL OF CONTRACT CHANGE ORDER NO. 7, PROJECT NO 2002-07F, SilverRock RESORT ONSITE AND OFFSITE SEWER, WATER AND STREET IMPROVEMENTS. BUSINESS SESSION - NONE STUDY SESSION 1. DISCUSSION OF ADDITIONAL IMPROVEMENTS TO SilverRock RESORT. CHAIR AND BOARD MEMBERS' ITEMS — NONE PUBLIC HEARINGS 1. PUBLIC HEARING ON THE THIRD FIVE-YEAR IMPLEMENTATION PLAN AND THE SECOND TEN-YEAR AFFORDABLE HOUSING COMPLIANCE PLAN FOR LA QUINTA REDEVELOPMENT PROJECT AREA NOS. 1 AND 2. A. RESOLUTION ACTION ADJOURNMENT Adjourn to a Special Meeting to be held on June 15, 2005, at 7:00 p.m., a Special Meeting to be held on June 16, 2005 at 2:00 p.m. and to a regularly scheduled meeting of the Redevelopment Agency to be held on June 21, 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. Redevelopment Agency Agenda 3 June 7, 2005 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 June 7, 2005, was posted on the outside entry to the Council Chamber at 78-495 Calle Tampico and on the bulletin boards at 5 1 -321 Avenida Bermudas and 78-630 Highway 111, on Friday, June 3, 2005. DATED: June 3, 2005 a:�� "-(Y. '( JUNE S. GREEK, CIVIC, City Clerk City of La Quinta, California Redevelopment Agency Agenda 4 June 7, 2005 AGENDA CATEGORY: BUSINESS SESSION COUNCIL/RDA MEETING DATE: JLJNE 7, 2005 CONSENT CALENDAR ITEM TITLE: Demand Register Dated June 7, 2005 RECOMMENDATION: It is recommended the Redevelopment Agency Board: STUDY SESSION PUBLIC HEARING Receive and File the Demand Register Dated June 7, 2005 of which $3095249.27 represents Redevelopment Agency Expenditures. PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA COUNCIL/RDA MEETING DATE: .tune 7, 2005 ITEM TITLE: Adoption of a Resolution Making Certain Findings Pursuant to Health and Safety Code Section 33445(a) and Approval of a Finance Agreement Between the City of La Quinta and the La Quinta Redevelopment Agency for the Downtown Parking Lot and Lighting Improvements, Project No. 2003-14 RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: Ca... STUDY SESSION: PUBLIC HEARING: Adopt a Resolution making certain findings pursuant to Health and Safety Code Section 33445(a) and approve a Finance Agreement (Attachment 1) between the City of La Quinta and the La Quinta Redevelopment Agency for the Downtown Parking Lot and Lighting Improvements, Project No. 2003-14. FISCAL IMPLICATIONS: The following represents the approved project funding and additional funding sources: Fund — Project Name Source Available 1739 - Village Parking Lot RDA 1 $434,780 Federal Assistance CDBG $180,355 RDA 1* $442,928 Total Available Funding $1,058,063 *RDA 1 funding would come from an advance from the General Fund Economic Development Reserve to the La Quinta Redevelopment Agency. The City Council has designated $1,410,000 of reserves for economic development purposes. This advance is required as RDA 1 does not have available resources to fund this project, but may borrow the funds and then provide them for this purpose. The $442,928 loan will be subject to interest at the rate of seven percent (7%) per annum with the principal and any unpaid interest due and payable on, or before, November 29, 2033. G CHARTER CITY IMPLICATIONS: None. The proposed improvements will be partially funded with RDA Project Area No. 1 funding and Community Development Bock Grant (CDBG) funding. The project will be subject to prevailing wage requirements. BACKGROUND AND OVERVIEW: On December 16, 2003, the City Council appropriated $434,780 from RDA Project Area No. 1, selected Refurbishment Option No. 2 — Conventional Parking Lot, and directed staff to obtain the necessary plans, specifications and engineer's estimate (PS&E) from David Volz Design to cause the installation of the proposed improvements to the Downtown Parking Lot. Refurbishment Option No. 2 overlays the existing turf block with a more traditional asphalt concrete surface. Enhanced landscaping will also be installed to soften the look and reduce the heat gain on the site. On April 20, 2004, the City Council discussed and accepted the design concept of the pedestrian crossings on Avenida Bermudas and Desert Club Drive. On February 1, 2005, the City Council approved the PS&E and authorized staff to advertise the Village Parking Lot Improvements, Project No. 2003-14, for bid. On April 6, 2005, sealed bids were received for the construction of this project. The basis of award was the lowest combined price of the base bid area plus additive alternates 1-5. Granite Construction submitted the lowest qualified bid in the amount of $897,897. On May 17, 2005, the City Council awarded a contract to Granite Construction for the base bid area, add alternates 1 &2, and add alternate 5 for a total award amount of $802,608. This award resulted in a total budget of $1,058,063 which included construction, design, inspection, administration and contingency. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency include: 1. Adopt a Resolution making certain findings pursuant to Health and Safety Code Section 33445(a) and approve a Finance Agreement between the City of La Quinta and the La Quinta Redevelopment Agency for the Downtown Parking Lot and Lighting Improvements, Project No. 2003-14; or 2. Do not adopt a Resolution making certain findings pursuant to Health and Safety Code Section 33445(a) and do not approve a Finance Agreement between the City of La Quinta and the La Quinta Redevelopment Agency for the Downtown Parking Lot and Lighting Improvements, Project No. 2003-14; or 3. Provide staff with alternative direction. Respectfully submitted, T' othy R.ci)n"asvP.n, E. ublic Works Direor/City Engineer Approved for submission by: Thomas P. Genovese, Executive Director Attachment: 1. Finance Agreement s 3 RESOLUTION NO. RDA 2005- A RESOLUTION OF THE LA QUINTA REDEVELOPMENT AGENCY, MAKING CERTAIN FINDINGS PURSUANT TO HEALTH AND SAFETY CODE SECTION 33445(a) WHEREAS, on the 18T" day of May, 2004 the La Quinta City Council (the "City Council") approved the Fiscal Year 2004/2005 through 2008/2009 Capital Improvements Program (CIP) as part of the Fiscal Year 2004/2005 budget which approved proceeding with improvements to the Village Parking Lot Improvements, all of which are publicly owned improvements; and WHEREAS, the Village Parking Lot Improvements are located in Redevelopment (RDA) Project Area No. 1, and will enhance the public's use and enjoyment of Village Area within Redevelopment Project Area No. 1; and WHEREAS, the funding for the Village Parking Lot Improvements is not otherwise available at this time; and WHEREAS, it would be in the best interest of the public for the Village Parking Lot Improvements to be installed at this point and time. NOW, THEREFORE, BE IT RESOLVED, by the La Quinta Redevelopment Agency ( "Agency") as follows: SECTION 1. Pursuant to Health and Safety Code Section 33445(a), the Agency finds and determines that: a. The Village Parking lot Improvements will be of benefit to RDA Project Area No. 1, to the area surrounding RDA Project Area No. 1, and to the immediate neighborhood in which the Village Parking Lot Improvements will be located. b. No other reasonable means of financing the Village Parking Lot Improvements are available to the community at this time, and the RDA CIP Area No. 1 fund currently does not have sufficient funds to pay for the construction, and will not accommodate sufficient funds for that purpose within the near future, nor are the funds otherwise available from other sources. C. The payment of funds for the construction of the Village Parking Lot Improvements will assist in the elimination of one or more blighting conditions inside the project area, and is consistent with the Agency's implementation plan adopted pursuant to Section 33490. al Resolution No. RDA 2005- Village Parking Lot Improvements Adopted: June 7, 2005 Page 2 SECTION 2. The Agency therefore consents to the funding of the improvement costs of the Village Parking Lot Improvements in RDA Project Area No. 1. PASSED, APPROVED and ADOPTED at a regular meeting of the Agency held on the 7th day of June, 2005, by the following vote: 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 L.a Quinta, California Ito 5 ATTACHMENT 1 FINANCING AGREEMENT THIS FINANCING AGREEMENT ("Agreement") is made and entered into this day of , 20051 by and between the LA QUINTA REDEVELOPMENT AGENCY, a public body corporate and politic ("Agency"), and the CITY OF LA QUINTA, a charter city and municipal corporation ("City"). RECITALS WHEREAS, Agency is a public body, corporate and politic, organized under the California Community Redevelopment Law (Health & Safety Code § 33000 et sue.); and WHEREAS, City is a municipal corporation and a charter city of the State of California organized and existing under the Constitution of the State of California; and WHEREAS, Agency, pursuant to Health and Safety Code Section 33445, is authorized to provide funding, including in the form of loan financing, for the development of publicly owned improvements; and WHEREAS, City and Agency mutually desire to enter into this Agreement to set forth their respective obligations with respect to a public improvement financing loan by City to the Agency's Project Area No. 1 in the amount up to Four Hundred Forty -Two Thousand, Nine Hundred Twenty -Eight Dollars ($442,928.00) to be used by the Agency to meet the cost of constructing certain of the publicly owned improvements which will create the City's Downtown Parking Lot located on the west side of Avenida Bermudas north of Avenida Montezuma set forth in Exhibit "A" attached hereto and incorporated herein; and WHEREAS, without the loan set forth herein such publicly owned improvements to the City's parking lot would not be developed for many years until such time as sufficient capital improvement funds were set aside for the improvement; and WHEREAS, it is anticipated that the loan financing set forth herein shall be repaid by Agency from the future collection of tax increment revenue; and WHEREAS, no portion of the loan funds are to used for any purpose not permitted by Health and Safety Code Section 33445 as such code section exists on the date of this Agreement. AGREEMENT NOW, THEREFORE, in consideration of the mutual covenants and promises hereinafter contained, Agency and City agree as follows: City Loan; Interest; Use of Loan Principal. City hereby loans to Agency the principal amount of up to Four Hundred Forty Two Thousand, Nine Hundred Twenty -Eight Dollars ($442,928) ("Loan Principal") from currently available General Fund Economic Development Reserve. Interest shall accrue on the outstanding 11 6 loan principal at the earning rate of seven percent (7%) per annum with principal and any unpaid interest due and payable on, or before, November 29, 2033. The Loan Principal shall be used only for the publicly owned improvements set forth in Exhibit "A" hereto and incorporated herein. No portion of the Loan Principal shall be used for any purpose not permitted by Health and Safety Code Section 33445 as it exists on the date of this Agreement. Repayment. The Loan Principal and the accrued interest shall be repaid by Agency. Repayments should be applied first to interest and second to principal. Repayments should be made from available resources identified in the annual budget, The Agency shall be entitled to repay all or part of the Loan Principal at any time with no other charges, fees, or penalties. All amounts due under this Agreement shall be payable at the offices of the City. Subordination. The repayment of the Loan Principal by Agency shall be junior and subordinate to all Agency obligations incurred prior to the date of this Agreement. Non -Recourse Obligation. No officer, official, employee, agent, or representatives of Agency shall be liable for any amounts due hereunder, and no judgment or execution thereon entered in any action hereon shall be. personally enforced against any such officer, official, employee, agent, or representative. Entire Agreement; Amendments. This Agreement shall constitute the entire agreement of the parties. This Agreement may be amended or modified only by an agreement in writing signed by the parties. [end — signature page follows] �w 7 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their authorized representatives, as of the date first above written. "AGENCY" LA QUINTA REDEVELOPMENT AGENCY Lee Osborne, Chairman ATTEST: Agency Secretary APPROVED AS TO FORM: Agency Counsel "CITY" CITY OF LA QUINTA Don Adolph, Mayor ATTEST: City Clerk APPROVED AS TO FORM: City Attorney EXHIBIT "A" PUBLICLY OWNED IMPROVEMENTS All offsite and on site improvements associated with Capital Improvement Project No. 2003-14, Downtown Parking Lot and Lighting Improvements. 14 0 COUNCIL/RDA MEETING DATE: June 7, 2005 ITEM TITLE: Approval of Contract Change Order No. 7, Project No. 2002-07F, SilverRock Resort Onsite and Offsite Sewer, Water and Street Improvements RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: -3. STUDY SESSION: PUBLIC HEARING: Approve Contract Change Order (CCO) No. 7 (Attachment 1), Project No. 2002-07F, SilverRock Resort Onsite and Offsite Sewer, Water and Street Improvements, in the amount of $350,583 to install dry utilities along Avenue 54. FISCAL IMPLICATIONS: Original Contract Award Amount $2,598,048.00 CCO No. 1 ($447,620.00) CCO No. 2 $713,384.35 CCO No. 3 $24,472.80 CCO No. 4 $22,990.00 CCO No. 5 $6,500.00 CCO No. 6 $1 12,579.27 Pending CCO No. 7* $350,583.00 Proposed Revised Contract Amount $3,380,937.42 Adequate funding is available in the project phase I dry utilities construction account to fund CCO No. 7. CHARTER CITY IMPLICATIONS: Since this project is funded by RDA funds, the project was bid as a prevailing wage job and all subsequent CCO's reflect prevailing wages. * This cost will be offset by approximately $96,509 from Verizon reimbursement and $21,500 from the original bid item for dry utilities at the conclusion of the work. 15 BACKGROUND AND OVERVIEW: On August 3, 2004, the Agency awarded a contract in the amount of $2,598,048 to Granite Construction Company to construct improvements specified by Project No. 2002-07F, SilverRock Resort Onsite and Offsite Street, Water and Sewer Improvements. However, at the time of award, Imperial Irrigation District (IID) and Verizon had not completed their future needs assessment for the SilverRock Resort's ultimate development and therefore had not completed their respective designs to serve the resort. At the time of bid, the Avenue 54 dry utility trench bid item included only single conduits with no vaults for electrical, telephone (Verizon), cable television (Time - Warner), and a single natural gas pipeline (The Gas Company). Utility designs by IID and by Verizon were recently completed and have been incorporated into the ultimate dry utility plan for the SilverRock Resort. The design for IID, Verizon, and Time Warner calls for installing multiple conduits, encased in concrete in some cases with pre -cast concrete vaults. Verizon has committed to reimburse the City for the . cost of its conduits and vaults, which is estimated to be $96,509. Staff will submit this claim upon completion of the work. As demonstrated, the scope of work from the original bid has changed significantly and therefore a CCO in, the amount of $350,583 has been negotiated by staff and Granite Construction to provide dry utilities for present and future development of SilverRock Resort along Avenue 54. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency include: 1. Approve Contract Change Order No. 7, Project No. 2002-07F, SilverRock Resort Onsite and Offsite Sewer, Water and Street Improvements, in the amount of $350,583 to install dry utilities along Avenue 54; or 2. Do not approve Contract Change Order No. 7, Project No. 2002-07F, SilverRock Resort Onsite and Offsite Sewer, Water and Street Improvements, in the amount of $350,583 to install dry utilities along Avenue 54; or 3. Provide staff with alternative direction. Respectfully submitted, 1 � 6othy R. nass n, P.E. Public Works Direct /City Engineer 2 Approved for submission by: 10" Thomas P. Genovese, Executive Director Attachment: 1. Contract Change Order No. 7 r 17 3 CONTRACT: CONTRACTOR: SilverRock Resort On and Off Site Street, Water and Sewer Improvements Granite Construction Company 38-000 Monroe Street Indio, California 92203 ATTACHMENT 1 Sheet 1 of Project No. 2002-07F CONTRACT CHANGE ORDER NO.7 Pursuant to the terms of the original Contract Agreement, you are hereby directed to make the herein described changes or do the following described work not included in the plans and specifications for this Contract. Unless otherwise stated all work shall conform to the terms, general conditions, and special provisions of the original Contract. DESCRIPTION OF CHANGE: Furnish and install in place complete all necessary dry utilities adjacent to Ave 54 as designed by IID and Verizon. Compensation per unit price breakdown see attached sheet 2 of 2. Total Compensation $350,583.00 *****,�**�,t«�+�+�*se*,�+��*«e*,�*��*«*«*****,�+�e�*�e�e�e�**�,�****,�,�+t�,►�*«**�«�***�e�+r�*«*�,e��«,tie**«*��*��*�**«*�*,ir��e�*�*� Previous Contract Amount through Contract Change Order No. 6 $3,030,354.42 Add This. Change Order No. 7 $350,583.00 Revised Contract Total: $3,380,937.42 By reason of this contract change order, the time of completion is adjusted as follows: 30 days added to contract time. The revised contract completion date shall be May 21, 2005. Submitted By: Approved By: Date: Date: We, the undersigned Contractor, have given careful consideration to the change proposed and hereby agree, if this proposal is approved, that we will provide all equipment, furnish all materials, perform all labor, except as may be noted above, and perform all services necessary to complete the above specified work, and hereby accept as full payment the amount shown above, which includes direct and indirect overhead expenses for any delays. Accepted B : Title:% /L— p Y Contractor: Granite Construction Company Date: ig-7�6 d.51"- i 01 T.IPWDEPTWROJECTSU CONSTRUCTIOM2002-07 F On-Offsite Impvmnts%ConstructionlProgress Payments & CCO's\CCO 07 Revised Ave 54 Dry Utilities.doc QUOTATION GRANITE CONSTRUCTION COMPANY State of California Contractors License No. 89 Indio California, May 3, 2005 PROJECT: SILVERROCK RESORT ITEM DESCRIPTION - DRY UTILITIES AVE. 54 / JEFFERSON AVE. 1 EARTHWORK; TRENCHING, SHADING, BACKFILL 2 CONCRETE ENCASEMENT 3 INSTALL IID CONDUIT 4 INSTALL VERIZON CONDUIT 5 INSTALL IID RUNNER PAD 6 INSTALL IID VAULTS 7 INSTALL VERIZON VAULTS/MH 8 CONC. CURB R/R; JEFFERSON 9 ASPHALT PAVING; JEFFERSON 10 TRAFFIC CONTROL; JEFFERSON STIPULATIONS ESTIMATED QUANTITY UNIT PRICE TOTAL 3,295 LF $24.80 $81,716.00 1,130 LF $29.50 $33, 335.00 8,010 LF $9.80 $78,498.00 6,790 LF $7.10 $48,209.00 1 EA $2,200.00 $2,200.00 3 EA $14,775.00 $44,325.00 3 EA $16,100.00 $48,300.00 15 LF $35.00 $525.00 2,625 SF $3.00 $7,875.00 1 LS $5,600.00 $5,600.00 GRAND TOTAL $350,583.00 1 ONE MOVE -IN. 2 FEES, BONDS, TESTING, ENGINEERING, ARE EXCLUDED. 3 PRICES BY THE UNIT. FINAL PAYMENT BASED ON FIELD MEASUREMENTS. 4 GRADING, LANDSCAPING REPAIRS OR REPLACEMENTS ARE EXCLUDED. 5 NATIVE BACKFILL ONLY. IMPORTATION OF SELECT BACKFILL EXCLUDED. 6 RELOCATION, ADJUSTMENTS, REMOVAL OR HANDLING OF EXISTING UTILITIES IF REQUIRED, IS EXCLUDED. Page 1 -01 COUNCIL/RDA MEETING DATE: .tune 7, 2005 ITEM TITLE: Discussion of Additional Improvements for SilverRock Resort RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Discuss additional improvements to SilverRock Resort including perimeter improvements, additional golf course drainage, turf/grassing, and landscaping; and funding alternatives. FISCAL IMPLICATIONS: Preliminary budget estimates for improvements include: • Perimeter Rail Fence • Perimeter Decomposed Granite • Mountain Storm Runoff/Drainage • Native Area Drainage • Native Area Turf/Grassing & Landscaping CHARTER CITY IMPLICATIONS: The City Charter allows the City "to utilize revenues from the General Fund to encourage, support and promote economic development." SilverRock Resort has been acquired and master planned as an economic development venture. The Arnold Palmer Classic Course is being operated as a City venture via an enterprise fund subsidized by the City's General Fund. Other improvements to the site remain the responsibility of the City's Redevelopment Agency. M BACKGROUND AND OVERVIEW: Construction activities continue at SilverRock Resort including perimeter improvements (including the multi -purpose trail, sidewalk, berm/wall, and landscaping); well construction; utility installation (gas line extensions to the Maintenance Building and Ahmanson Clubhouse and Retreat); Avenue 52 drainage (pipeline design nearing completion); and completion of numerous "punch list" items associated with golf course and vertical construction. The Arnold Palmer Classic Course at SilverRock opened for public play on February 14, 2005. Landmark Golf Management, as golf course operator, is charged with daily operations. Additionally, Landmark has assumed responsibility for certain capital improvements directly associated with the golf course (i.e., conversion of natural areas to bunkers adjacent to golf greens). Reviews of the course design and playability have generally been very positive. Operational experience with the site to -date, however, has led to conclusions and suggestions for additional improvements to better accommodate storm and irrigation runoff, improve dust control and provide better PM 10 compliance, and enhance the over all golf experience. Following are options under consideration: Perimeter Rail Fence: The Redevelopment Agency considered an Add Alternate in the amount of $201,000 for rail fencing around the perimeter of the project when it awarded a project for perimeter improvements to include berms, walls, sidewalks, landscaping and a multi -purpose trail. The Agency discussed the use of recycled materials as an option for the rail fence alternative, but did not authorize the rail fence Add Alternate. It was estimated at the time that the use of recycled materials may double the materials cost (i.e., say $400,000). Recycled materials offer environmental advantages and may be funded with restricted funds. Staff has subsequently conducted preliminary research and identified various fence options using recycled materials for the Agency's consideration (see Attachment 1). Destination Development Company representatives have indicated a preference for rustic material and/or native -colored fence material (i.e., not white). Staff seeks Agency input on the concept and design of the rail fence before proceeding with preparation of plans and specifications for the project. Suggested funding source: the City's AB 939 account has a reserve balance of approximately $640,000. A portion, or possibly all, of this project may be eligible for funding from this account if recycled materials are used (the City Attorney is investigating funding parameters) Perimeter Decomposed Granite: The perimeter landscape design was approved by the Agency but included decomposed granite as a surface material for only the multi- purpose trail. The surface material for the remaining property is comprised of native soils chemically stabilized for PM 10 purposes. Recent wind events have demonstrated that routine maintenance of the perimeter landscaping may periodically break the chemical surface crust requiring repeated chemical stabilization for PM 10 r? 2 compliance. Pinnacle Design recommends the Agency consider applying decomposed granite similar in color to the natural soil palette at an estimated cost of $400,000. Suggested funding source: Project Area 1 has $1.8 million previously reserved, but never accessed, for property acquisition associated with the Santa Rosa Plaza project. Mountain Storm Runoff Drainage: Winter storm events identified areas adjacent to and onto the golf course that suffer significant erosion during major rainfall. Staff authorized preparation of an as -built topographic map of the project and subsequently met with project engineers (PACE and TKC) to consider remedies for future erosion control. Additionally, the consultant engineer team was asked how to best facilitate drainage from playing areas so as not to cause undue delay due to rain, should the course host a PGA event. Most areas adjacent to the mountains could be improved with minimal disturbance to the golf course; however, additional drainage lines may be necessary within the golf course itself in order to move runoff more quickly into the lake system. The cost to design and construct these improvements is estimated to be $250,000. Suggested funding source: The $1.8 million Project Area 1 Reserve referenced above. Natural Area Drainage: Palmer Course Design Company (PCDC) revisited the site in May and identified specific recommendations to enhance course maintenance and playability (Attachment 2). Included within these recommendations is a combination of ribbon and French drains around the perimeter of each natural area depending on the proximity of the drain to playing areas. This drainage system will help alleviate erosion that occurs during storm runoff and routine turf irrigation while minimizing the aesthetic impact of the drainage system on the golf course. Landmark Golf Management has installed a very small portion of this drainage as part of its operational program. It is suggested that an additional appropriation of approximately $350,000 would allow Landmark to accelerate this program, either with Landmark staff or via sub contracts. Suggested funding source: The City's General Fund Economic Development Reserve contains approximately $967,000 that could be allocated to the Golf Enterprise Fund for golf course operating capital improvements as a supplement to the annual golf course operations budget. Natural Area Turf/Grassing & Landscaping: PCDC recommends that specific areas adjacent to and within certain natural areas be converted to turf and/or an alternative grassing treatment. This treatment is intended to add color and help address PM 10 and drainage/erosion issues in those areas at an estimated cost of $150,000. Suggested funding source: The $967,000 General Fund Economic Development Reserve referenced above. Staff believes each of the aforementioned projects is warranted. Representatives from PCDC, PACE and TKC have been invited to this meeting to assist staff in answering questions the Agency might have regarding the enhancements referenced in this report. Staff will be prepared to discuss relevant budget parameters for each of the aforementioned tasks in more detail at the meeting. 3 FINDINGS AND ALTERNATIVES: The alternatives available to the Agency Board include: 1. Discuss additional improvements to SilverRock Resort; or 2. Provide staff with alternative direction. Respectfully submitted, Mark Weiss Assistant Executive Director Approved for submission by: .Thomas P. Genovese Executive Director Attachments: 1. Fence options 2. PCDC recommendations 4 ATTACHMENT 1 Recycled Plastic Two -Rail Fencing This two -rail fence is made from 100% recycled plastic and, according to the manufacturer, has the following attributes: • Will never rot Never needs painting Will not attract termites or carpenter ants Completely waterproof Completely splinterproof High Impact/Abrasion Resistant Environmentally friendly Maintains clean appearance Colors: Weathered wood, black, white, grey Virtually 100% maintenance free The rails are 2 x 6's, and are 16 feet long. The posts are 6 x 6's. Fence post caps and fence pins are also required. The softening point for the fencing material is 150- 155 degrees Fahrenheit. The estimated cost for 3 miles of fencing and assorted accessories, not including shipping, tax, or installation, is $121,540. The fencing material also comes in a variety of colors including "white" and "weathered wood." Recycled Plastic Rustic Post & Rail Fencing This rustic brown post and rail fencing is made from 100% recycled plastic and, according to the manufacturer, has the following attributes: • Will never rot • Never needs painting • Has rustic brown color throughout; it's not just a coating • Will not attract termites or carpenter ants • Each 8-foot section of fence produced removes 105 pounds of plastic from the waste stream The rails are 8 feet long and 2-1 /2" to 3" in diameter. The posts are 6 feet long and measure 3-1 /2" to 4-1 /2" in diameter. The rails will deflect about Y4 inch at 120 degrees when 264 psi is applied to them from the top. The price per linear foot for two -rail fencing is approximately $7.01, which includes two rails and one post. The multi -purpose trail covers approximately 3 miles, or 15,840 linear feet. The estimated cost for materials only, not including shipping, tax, or installation, is $1 1 1,038. 2-rail rustic fencing Cross section of rail Outside texture of rail 6 G_ May 31, 2005 Mr. Mark Weiss La Quinta Redevelopment Agency PO Box 1504 78-495 Calle Tampico La Quinta, CA 92253 Dear Mark: ATTACHMENT 2 The SilverRock Resort golf course is on its way to being a great one, one that the city will be very proud of. It is already challenging, fun and visually striking with well conditioned turf areas. It will only get better. Palmer Course Design is excited with the potential of this golf course. As with all golf courses, acceptance of their playability and conditioning depends on ongoing effort to improve these areas. Efforts are usually more intense immediately after opening, tapering down over time. They are however, continual. Adjustments should be made annually. The situation that has occurred at SilverRock is unusual in scale only. Like all courses, they evolve over time. The way it grows and how it is perceived is determined by those that own and operate it. Obviously some mistakes were made, primarily in that the design team did not fully understand the effect of a storm event of the magnitude that occurred early this year. It may not have been possible to since it was an event of unrecorded intensity. However, Palmer Course Design recognizes our responsibility in that regard and is working hard to correct all problems. That being said, our main focus is on fixing the natural areas and preventing the erosion problem from reoccurring. We propose a trench, rock and pipe drainage system surrounding the natural areas that drains to large sump drains in the middle. We also propose additional landscaping mainly in the form of a short gold grass over about 35% of the natural areas. Estimated costs are about $350,000.00 for the drainage system and $150,000.00 for the landscaping, or $500,000.00 total. Drainage work should be outsourced. Landscaping and finish work in the areas to be fixed could be handled in house with additional maintenance staff. All the work could be done this summer. 7 Mr. Mark Weiss May 31, 2005 Page Two Given this remedial work, Palmer Course Design maintains that this course will be one of the best in the Valley. We think the city is very close to having a fine anchor golf course for its resort. It certainly can be tournament quality and more importantly of great enjoyment to whoever plays it. We are proud to be part of it and are anxious to continue its improvement. Sincerely, Erik Larsen COUNCIL/RDA MEETING DATE. June 7, 2005 Public Hearing on the Third Five -Year Implementation Plan and the Second Ten -Year Affordable Housing Compliance Plan for La Quinta Redevelopment Project No. 1 and La Quinta Redevelopment Project No. 2 RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Approve the Third Implementation Plan for La Quinta Redevelopment Project No. 1 and La Quinta Redevelopment Project No. 2. FISCAL IMPLICATIONS: None at this time. BACKGROUND AND OVERVIEW: The California Community Redevelopment Law requires that the Agency adopt an Implementation Plan for each Redevelopment Project every five years. The Agency previously adopted two Five -Year Implementation Plans, the first in 1994 and the second in 1999. Each of these previous Implementation Plans included affordable housing compliance plans that identified how the Agency would achieve its mandate to insure that 15 % of all privately developed residential units in both project areas would be affordable to very low-, low- and moderate -income households. Attachment 1 to this report contains the Third Implementation Plan for La Quinta Redevelopment Project No. 1 and No. 2. The Third Implementation Plan generally identifies the Agency's anticipated revenue and expenditures for Fiscal Year 2004- 05 through 2008-09, and how the anticipated expenditures will achieve the redevelopment goals, address blight, and increase and improve the supply of affordable housing in La Quinta Redevelopment Project Area No. 1 and Project Area No. 2. The first section of the document focuses on non -housing activities for r f�8 41 S:\CityMgr\STAFF REPORTS ONLY\PH 3 Third Imp Plan.doc Project No. 1 and Project No. 2. The redevelopment goals, blighting conditions, anticipated revenues and expenditures, and project/program proposals are detailed for both Project Areas in these sections. The second section focuses on the Agency's affordable housing activities for both Project Areas during the five year planning period. The final section presents the Agency's Second Housing Compliance Plan. The Second Housing Compliance Plan identifies the Agency's affordable housing needs for the coming ten years, and the means through which the Agency will address these needs. Anticipated Non -Housing Fund Expenditures The primary purpose for the Third Implementation Plan is to identify the projects and programs (and their related expenditures) that the Agency will implement during the five year planning period to achieve its redevelopment goals, to correct blighting conditions, and to increase and improve the supply of affordable housing. Given its on -going budget deficits, the State has annually required the Agency to reallocate up to $3,000,000 of non -housing redevelopment money to the Education Revenue Augmentation Fund (ERAF). While this reallocation was planned to be a two year event, the continued State budget deficit situation indicates that continued ERAF allocation may occur during the five year planning period of the Third Implementation Plan. As a result, the Agency anticipates that it will have limited non -housing redevelopment revenue to invest in new non -housing projects and programs during the next five years. The non -housing program expenditure plan for both Project No. 1 and Project No. 2 contained in the Third Five -Year Implementation Plan envisions completing projects that were initiated during the previous five year planning period and funding tax allocation bond debt service payments, Agency administration expenses, and City General Fund interest payments. If ERAF payments cease, the Agency will then have up to $3,000,000 per year that it may invest in new non -housing projects and programs. If this occurs, the Agency will need to identify the needed new projects and programs, and amend the Third Implementation Plan to include these activities. Anticipated Housing Fund Expenditures Both the Third Implementation Plan and the Second Affordable Housing Compliance Plan identify the Agency's affordable housing mandate and the Agency's need to continue to aggressively implement projects and programs to meet this mandate. Generally, the Agency must insure that at least 15 % of all privately developed or substantially rehabilitated dwellings in both of its Redevelopment Project Areas are affordable to very low-, low- and moderate -income households and of this 15 %, at least 40% must be affordable to very low-income households. Further, if the Agency directly facilitates affordable housing development, at least 30% of the Agency sponsored dwellings must be affordable to very low-, low- and moderate - income households and of this amount, at least 50% must be affordable to very low-income households. In order to insure that these dwellings remain affordable to very low-, low- and moderate -income households, the Agency must record i 4 S:\CityMgr\STAFF REPORTS ONLY\PH 3 Third Imp Plan.doc v covenants against each affordable dwelling to insure that the unit remains affordable to said households for not less than 45 years for owner -occupied dwellings, and 55 years for rental dwellings. The aforementioned affordable housing mandate commenced when Project Area No. 1 was established in 1983, and when Project Area No. 2 was established in 1989. From these adoption dates until Fiscal Year 2004-05 (the expiration of the Agency's first ten-year affordable housing production period) a total of 11,148 dwellings were constructed in both Project Areas through private sector activities; the Agency did not directly develop any affordable housing during this period. This private sector activity generated the need for the Agency to insure that 1,672 dwellings were affordable units (featuring long term covenants to insure their continued affordability), and of these, 669 need to be affordable to very low- income households. To date, the Agency has facilitated the production of 1,031 affordable units of which 281 are affordable to very low-income households. Thus, the Agency starts the second ten-year affordable housing planning period with a 641 unit deficit. During the ten-year term of the Second Housing Compliance Plan, it is projected that private development and substantial rehabilitation activity will create the need to produce an additional 230 affordable dwellings of which 92 must be affordable to very low-income households. Since the Agency is starting the second ten-year planning period with a deficit, it must demonstrate how it will annually implement affordable housing projects/programs during the ten-year period to eliminate this deficit, and produce the additional units required during the new ten-year period. During the ten-year term of the Second Housing Compliance Plan, the Agency anticipates expending a total of $193,223,366 to retire existing housing fund debt obligations, fund housing program administrative expenses, and fund new affordable housing programs and projects. Of this amount, 30% or $58.5 million will be pledged to existing bond debt service payments, 7% or $13.5 million will fund program administration costs, and 63% or $121.2 million will be invested in projects and programs that increase and improve the supply of affordable housing in both Project Areas. New housing projects and programs identified in the Second Housing Compliance Plan include investing in multi -family dwelling construction, rehabilitating the community's remaining mobile home park, facilitating mixed use development proposals in the Village, and purchasing new affordable housing sites both within the Project Areas and in areas that the City may annex. It took additional time to prepare the Third Implementation Plan; the Agency's consultant, RSG, was awaiting the completion of the Annual Financial Management Review in order to obtain accurate revenue and private sector housing production projections. In preparing the Annual Financial Management Review, RSG conducted a comprehensive review of all vacant and underdeveloped property within both Project Areas in order to identify the Agency's tax increment revenue potential, and to confirm the potential private residential development activity that will generate the Agency's need to produce covenant restricted affordable units. S:\CityMgr\STAFF REPORTS ONLY\PH 3 Third Imp Plan.doc The City/Agency auditor made note of the delay in bringing the Third Implementation Plan forward for Agency Board review and so noted this in the upcoming Agency audit report. The California Redevelopment Law requires the Agency to conduct a public hearing prior to final consideration of the Third Implementation Plan. The public hearing notice was published for one month in the Desert Sun, and posted for the same period in both Project Areas. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency Board are: 1. Conduct the public hearing and adopt a Resolution of the Redevelopment Agency approving the Third Implementation Plan and Second Ten -Year Compliance Plan for La Quinta Redevelopment Project No. 1 and Project No. 2; or 2. Conduct the public hearing and adopt a Resolution of the Redevelopment Agency approving the Third Implementation Plan and Second Ten -Year Compliance Plan with amendments; or 3. Do not adopt a Resolution of the Redevelopment Agency approving the Third Implementation Plan and Second Ten -Year Compliance Plan and provide staff with alternative direction. Respectfully submitted, Douglas R. vans Communit Development Director Approved for Submission by: Thomas P. Genovese Executive Director Attachment: 1. Third Implementation Plan for Redevelopment S:\CityMgr\STAFF REPORTS ONMPH 3 Third Imp Plan.doc RESOLUTION NO. RA A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF LA QUINTA, CALIFORNIA ADOPTING A THIRD FIVE-YEAR IMPLEMENTATION PLAN FOR 2004-05 THROUGH 2O08-09 FOR LA QUINTA REDEVELOPMENT PROJECT NO. 1 AND LA QUINTA PROJECT NO. 2 WHEREAS, the Redevelopment Plan for the City of La Quinta Redevelopment Project Areas No. 1 was approved by the City Council of the City of La Quinta by Ordinance No. 43 on November 29, 1983, and amended by Ordinance 258 on December 20, 1994, Ordinance 264 on March 21, 1995, and Ordinance 388 on August 19, 2003, and Ordinance 402 on March 16, 2004; and WHEREAS, the Redevelopment Plan for the City of La Quinta Redevelopment Project Areas No. 2 was approved by the City Council of the City of La Quinta by Ordinance No. 139 on May 16, 1989, and amended by Ordinance 259 on December 20, 1994, Ordinance 399 on February 3, 2004, and Ordinance 403 and Ordinance 404 on March 16, 2004; and WHEREAS, Section 33490(a) (1) (A) of the California Community Redevelopment Law, Health and Safety Code 33000 et. seq. ("Law") requires all redevelopment agencies to adopt an implementation plan every five years, following a noticed public hearing; and WHEREAS, Section 33490(a)(1)(A) requires that the Implementation Plan contain the specific goal and objections of the Agency for the project area, the specific programs, including potential projects, and estimated expenditures proposed to be made during the next five years, and an explanation of how the goals and objectives, programs, and expenditures will eliminate blight within the project area and implement the requirements of Sections 33334.2, 33334.4, 33334.6, and 33413 of the Law; and WHEREAS, the Agency has conducted a duly noticed public hearing. NOW, THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF LA QUINTA, CALIFORNIA DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS: SECTION 1. The Third Five Year Implementation Plan for 2004-05 through 2008-09 for the La Quinta Redevelopment Project Areas, in the form of document considered by the Agency concurrent with the adoption of this Resolution, and which form of document is incorporated herein and is on file with the Agency Secretary, is hereby approved and adopted. (! 5 SACity Clerk\Resolutions\Agency Imple Plan Reso.doc Resolution RA 2003- Third Five -Year Implementation Plan Adopted: June 7, 2005 Page 2 SECTION 2. The Agency finds and determines that in accordance with Health and Safety Code Section 33490(a)(1)(B), the adoption of the Implementation Plan Amendment is not a "project" within the meaning of the California Environmental Quality Act (Public Resources Code §21000 et. seq.). PASSED, APPROVED and ADOPTED this 7th day of June, 2005, by the following vote: AYES: NOES: ABSENT: ABSTAIN: LEE M. OSBORNE, Agency Chair City of La Quinta, California ATTEST: JUNE S. GREEK, CMC, Agency Secretary City of La Quinta APPROVED AS TO FORM: M. KATHERINE JENSON, Agency Counsel City of La Quinta S:\City Clerk\Resolutions\Agency Imple Plan Reso.doc ATTACHMENT 1 THIRD IMPLEMENTATION PLAN This document is the Third Implementation Plan ("Implementation Plan") for La Quinta Redevelopment Project No. 1 ("Project No. 1") and La Quinta Redevelopment Project No. 2 ("Project No. 2"). It has been prepared by the La Quinta Redevelopment Agency ("Agency") to address the requirements of Section 33490 of the California Community Redevelopment Law, Health, and Safety Code Sections 33000 et seq. ("Law"). Pursuant to the Law, this Implementation Plan presents: projects and expenditures will ets of the Law trough: that provides sufficient detail rate- Income Housing Fund programs/projects that will result in the destruction of existing if any), and the proposed locations for replacement housing n-Year Affordable Housing Compliance Plan. J4 La Quinta Redevelopment Agency La Quinta Project No. 1 and Project No. 2 ° May 2005 1 Third Implementation Plan BACKGROUND The La Quinta Redevelopment Agency was established on July 5, 1983. Shortly thereafter, in November 1983, the Agency adopted the 11,600-acre Project Area No. 1, which includes land designated for commercial, office, residential, retail, institutional, recreational, and public uses. Generally, Project Area No. 1 is bounded by Avenue 50 to the north, Jefferson and Madison Streets to the east, Avenue 60 to the south, and the La Quinta City boundary on the west. Project Area No. 1 was established to redevelop and expand deficient public infrastructure and facilities, to facilitate economic development, to expand recreation opportunities, and to revitalize the La Quinta Village. The Project No. 1 Redevelopment Plan has been amended twice.111111iince its adoption. The first Amendment occurred in 1995 to modify certain time limits and to. Add eligible public facilities and infrastructure proj • Increase the tax increment revenue limit to $2,000,000,000 • Increase the bond indebtedness limit to $1`00,00 OOO • Extend the Agency's eminent domain authority for 12 years. Tax Increment Revenue Limit: $2,000,000,000 Total Bond Debt Limit: $100,000,000 Implement Redevelopment Projects Until: November 2024 Agency May Receive Tax Increment Revenue Until: November 2034 ncy May U Eminent Domain for Property Acquisition: March 2007 In May 1989, the Agency established Project Area No. 2. This Project Area is 3,116 acres in size and encompasses commercial, residential and institutional land uses. Located in the northern area of the City, Project Area No. 2 is generally bounded by Avenue 50 to the south, Fred Waring Drive to the north, Washington Street to the west, and Jefferson Street to the east. Project No. 2 was established to provide a mechanism to remove impediments to commercial and residential development, to address public infrastructure and facility deficiencies, and to increase and improve the community's supply of affordable housing. Since it was adopted, the Project No. 2 Redevelopment Plan was amended twice. The first Amendment occurred in December 1994 to bring the Redevelopment Plan's time limits in La Quinta Redevelopment Agency La Quinta Project No. 1 and Project" No. 2'_ May 2005 2 Third Implementation Plan BACKGROUND conformance with the Law. The second Amendment occurred in January 2004, when the tax increment limit was increased to $1,500,000,000. Important Project No. 2 Redevelopment Plan financial and time limits are as follows: La Quinta Redevelopment Agency La Quinta Project No. 1 and Project No. 2 May 2005 3 Third Implementation Plan REDEVELOPMENT GOALS - Project No. 1 Section 400 of the Project No. 1 Redevelopment Plan delineates the following redevelopment goals. These goals were used to develop the strategy for this Implementation Plan and will guide project implementation activities. • Eliminate Blight. Eliminate and prevent the spread of conditions of blight including: underutilized properties and deteriorating buildings, incompatible and uneconomic land uses, deficient infrastructure and facilities, obsolete structures, and other economic deficiencies in order to create a more favorable environment ;for commercial, office, residential, and recreational development. Expand Commercial Base. Expand the Project Area's • Promote Job Growth. Promote local jpb opportunities. • Correct Undertt ized Lots. Recycle and/or develop underutilized parcels to accommodate higher and better eoonomic uses while enhancing the City's financial resources. • Promote Housing. Promote the rehabilitation of existing housing stock. • Increase and Improve the Community's Supply of Affordable Housing. Increase, improve, and preserve the supply of housing affordable to very low-, low- and moderate -income households. 37 La Quinta Redevelopment Agency Project No. % 0 May 2005 4 Third Implementation Plan BLIGHTING CONDITIONS - Project No. 1 When Project No. 1 was established the Agency identified the following blighting conditions: • Inadequate Flood Control Facilities. A majority of the properties were not served by flood control facilities. When summer and winter rains would occur, many of these properties would flood which would inflict significant physical and economic losses, and impact the health, safety and welfare of residents and businesses. • Stagnant Commercial Activity. Economic activity was stagnating because many of the commercial y zoned p.. perties were subdivided into 2,500 square foot parcels and were under multipi ownership. In order to assemble a three to five acre parcel, a developer would need to negotiate land purchase transactions with as many as a dozen property owners. The ..water, sewer and street infrastructure was also inadequate to support commercial development, and developers often found the cost for these facilities could not be borne by their development proposals. • Inadequate Park, Recreation and Cultural Facilities. The Agency also identified a lack of park space, recreation and cultural facilities. Due to its low property tax rate the City could not fund land acquisition and facility development costs. La Quinta Redevelopment Agency Project No. 1 May 2005 5 Third Implementation Plan FINANCIAL RESOURCES -Project No. 1 The chart below presents the anticipated revenues and expenditures for the Project No. 1 Debt Service and Capital Projects funds during the five year term of this Implementation Plan. These revenue and expenditure estimates are based upon the data contained in the City of La Quinta's March 2005 Annual Financial Management Review (the City annually conducts a comprehensive review of all of the City and Agency funds and prepares five year revenue and expenditure forecasts from which annual budget policy and project/program determinations are formulated). The revenue projections assume that Project Area No. 1 assessed values will annually increase by the inflation adjustment allowed by Proposition 13, and from developm.i'tt of the remaining vacant parcels within Project Area No. 1. Anticipated expenditures are based upon the polices established by the La Quinta City Council, the projects and programs identified in the March 2005 Annual Financial Management Review, and the City's Capital Improvement Pr€gram. During the next five years the Agency anticipates that the Pr�gecf::No. 1 expenditures will entail: • Funding fiscal mitigation payments to the various taxing agencies that levy taxes in Project Area No. 1. These payments are based,:,upon chedules that are contained in'the taxing agency agreements with the County of Riverside, the oort�munity college district, local school districts, and other public agencies. • Funding debt service payrneiits Qn the 1994, 1998, 2001, 2002 and 2003 tax allocation bonds. It should be noted that the 1994 Bands will be repaid in 2012. 9 La Quinta Redevelopment Agency Project No. 1 0 May 2005 6 Third Implementation Plan FINANCIAL RESOURCES - Project No. 1 2004-05 2005-06 2006-07 2007-08 2008-09 Revenue 27,307,161 27,256,607 28,073,070 28,944,862 29,851,677 Expenditures taxing agency payments 12,283,973 13,076,663 13,369,011 13,774,939 14,192,776 ERAF payments 2,780,728 3,000,000 3,000,000 3,000'000 3,000,000 bond payments 10,324,969 10,312,988 10,310,446 10,317,855 10,304,913 General Fund loan interest 952,764 66153 1,111,206 1,604,050 contract services 707,878 519,585 354 676 363,449 372,525 Agency administration 292,413 292,413 20,413 292,413 292,413 Washington/1-10 interchange 50,000 50,000 50 000 a0,000 50,000 sidewalk improvements 25,000 25,000 25,000 2,t300 25,000 handicap ramp improvements 10,000 10,000 10,000 1t400i 10,000 Eisenhower bridge/drainage 2,691,000 Total Expenditures 30,118,725 27,286,649 28,073}70 28,944,862 29,851,677 Year End Fund Balance (2,811,564) (30,042) - - - The year end fund balance deficits for Fiscal YE Fiscal Year 2003-04 fund balance. The Agency will conclude Fiscal Years 2006-07 through 200E projections or if ERAF payments cease, the accordingly during the mld'term review of this Im 2004-05 and 20-06 will be funded from the that the Proect No. 1 Non -Housing Fund aifh ar+ fund balance. If revenues exceed gency w1l1 #hen revise its expenditures plan mentation Plan. l r La Quinta Redevelopment Agency Project No. 1 40 May 2005 7 Third Implementation Plan NONHOUSING PROGRAMS - Project No. 1 Through the Second Implementation Plan the Agency implemented a variety of economic development, infrastructure and public facility improvements in Project Area No. 1 including the following: • SilverRock Resort. The Agency purchased 525 acres of property in Project Area No. 1 and completed master planning activities for a resort community that will encompass two golf courses, three to four resorts, community facilities, recreation space, convention facilities and retail space. The first golf course was opened in Februat 005, and the Agency is currently negotiating a land disposition and development trans9ction with Lowe Enterprises for the development of the first resort property, and the future,niphased development of the additional resort, convention facilities and retail uses. • La Quinta Library. The Agency is funding the construction of a 2C3,i�f}Q square foot library that will serve both Project Area No. 1 residents rid the greater commur �-t This facility will replace the existing 3,000 square foot library w., ich is housed in leased facilities. • La Quinta Historical Museum. The Agency putt which is located in the Village. Operated by the houses exhibits on La Quinta's cultural and histori • Village Streetscape and Parking Impryemen core of Project Area No. 1. However, it tacit streetscapes. The Agency funded stree boulevards that serve the Village and has parking facility. • Other Infrastra cycle the Age to nd Cori'imunity Facili completed the followi nnet imp La Quinta Historical Museum, Historical Society, the Museum The La QUJ1nta Village is the commercial sufficient affatreet parking and attractive ape improvements involving the major atedrrt`brovements to the first off-street ects. During the past five year planning eject Area No. 1 related projects: �gton treef `and I-10 interchange drain improvements Tents — Avenue 50/Sinaloa/Calle Tampico Implementation Activities — 2004-05 to 2008-09 Planning Period Nonhousing programs and projects for the coming five-year cycle are presented on the following pages. As funding is available, the Agency will be facilitating new initiatives that stimulate private development, address blight, and provide needed public infrastructure and facilities. La Quinta Redevelopment Agency Project No. 1 41 May 2005 8 Third Implementation Plan NONHOUSING PROGRAMS - Project No. 1 PROGRAM/PROJECT SilverRock Resort FIVE-YEAR PLAN ACTIVITIES This project will entail initiating site and building planning adtvites for a permanent clubhouse and a second golf course, constructing tirWI and passive recreation improvements, purchasing and improving domestic water well sites, and concluding negotiations for hotel and commercial property dispositiart:°and d0lopment. EXPENDITURES The Agency anticipates expending up to $1 proceeds to leverage additional private investm TIMELINE These activities will be implemented Expand Cloth) Improve Faciltt]. Promote Job G Coordina#: Sta Inadequate Inadequat+ Stagnant C Inadequate Development 111 3ter end Sanitation Infrastructure ad.Ways/Streets rrtercial Activity rk, Recreation and Cultural Facilities maining Project `No. 1 bond rough 2008-09. 1 � m nt A La Quanta Redevelop Agency Project e g y Ject No. 1 42 May 2005 9 Third Implementation Plan NONHOUSING PROGRAMS - Project No. 1 PROGRAM/PROJECT Eisenhower Drive Bridge and Drainage Improvements FIVE-YEAR PLAN ACTIVITIES This project entails replacing an existing two lane structure that is located on one of the three major arterials that accommodates north/south Vo. q. lar and pedestrian traffic through Project Area No. 1. This project also includes impraltlrrg he underlying drainage system that is part of a larger Project Area No. 1 storm water evacuation facility. EXPENDITURES The Agency will expend $2,691,000 during Fi; No. 1 tax increment revenues will fund this proj TIMELINE This project will be designed and con ea I Years through 20a6-07; Project through 2006-07. PLAN GOALS THE: PROJECT ADD SS � • Improve Faefittes/Infrastrbture • Improve Drainage Facil�t�es BLIGH,�' � 4''-I . .. I�} � S THE`' ROJECT WILL ADDRESS � Inadequate RoaWays/Streets • "inadequate Flood Cgntrol Facilities La Quinta Redevelopment Agency Project No. 1 43 May 2005 10 Third Implementation Plan NONHOUSING PROGRAMS -Project No. 1 PROGRAM/PROJECT Continuing Projects from Previous Five Year Planning Period FIVE-YEAR PLAN ACTIVITIES During the Second Implementation Plan the Agency initiated tie following projects; funding will continue through this five year planning period: The Agency will expend $425,000 during Fiscal Yi No. 1 tax increment revenues will fund these projects. TIMELINE These projects will implemented durm�lcal Ye ..................... • Inadequate Ro mprovernr 'roject Area N 004-05 through 2006-07; Project through 2007-08. La Quinta Redevelopment Agency Project ho. 1 4 4 May 2005 11 Third Implementation Plan REDEVELOPMENT GOALS - Project No. 2 Section 400 of the Project No. 2 Redevelopment Plan delineates the following redevelopment goals for the Project Area. These goals were used to develop the strategy for the Implementation Plan and will guide project implementation activities. • Eliminate Blight: Remedy, remove, and prevent physical blight and economic obsolescence in the Project Area. • Expansion of Businesses: Provide for th, businesses within the Project Area to en possible, give preferences to business coi persons residing in the Project Area. • Invest in Infrastructure: Imp wastewater facilities to both di nspn, renovation, and relocation of their economic viability; whenever ,either located within or owned by e electr`: ges, telephone, water, and ivided undeveloped properties. • Remedy Vanes: Remedy depreciating property values and impaired investments. • Provide for Economic Growth: Provide opportunities and mechanisms to increase sales tax, business license tax, and other revenues. • Increase and Improve the Community's Supply of Affordable Housing. Provide for low - and moderate -income housing opportunities as is required to satisfy the needs and desires of various age and income groups of the community, maximizing the opportunity for individual choice, and meeting the requirements of State law. La Quinta Redevelopment Agency Project No 2 May 2005 12 Third Implementation Plan 45 BLIGHTING CONDITIONS - Project No. 2 When Project No. 2 was established the Agency identified the following blighting conditions that required redevelopment to remedy: • Lack of Commercial Fsctt A Ick . of necessary commercial facilities that are narmily fflund in retghborhoods including grocery stores, drug stores, banks, and er ie idential Ov rcrowding o x+ ss Bars, Liquor Stores, Adult Businesses. Residential crowding or an excess of bars, liquor stores, or other businesses that cater usively to adul#s that has led to problems of public safety and welfare. La Quinta Redevelopment Agency Project No. 2 46 May 2005 13 Third Implementation Plan FINANCIAL RESOURCES - Project No. 2 The chart below presents the combined anticipated revenues and expenditures for the Project No. 2 Debt Service and Capital Projects funds during the five year term of this Implementation Plan. These revenue and expenditure estimates are based upon the data contained in the City of La Quinta's March 2005 Annual Financial Management Review (the City annually conducts a comprehensive review of all of the City and Agency funds and prepares five year revenue and expenditure forecasts from which annual budget policy and project/program determinations are formulated). The revenue projections assume that Project Area No. 2 assessed values will annually increase by the inflation adjustment allowed by Proposition 13: and from development of the remaining vacant parcels within Project Area No.2. Anticipated expenditures are based upon the polices established by the La Quinta City Council, the projects and programs identified in the March 2005 Annual Financial Management Review, and the City:,.,,,.,:.Capital Improvement Program. During the next five years the Agency anticipates that the Project No. 2 expenditures will entail: • Funding fiscal mitigation payments to the various taxing agencies that``W Area No. 2. These payments are based upon schedule that are conta agency agreements with the County of Rwerde, the community colt school districts, and other public agencies. • Funding debt service payments o • Continuing interest payments on ou Funding Agency administration costs 1998 tax allocation; bonds. oci ment proj vcle. !s in Project i. the taxing istrict, local ty General Fund loans. withroaect No. 2 activities. that were initiated during the Second La Quinta Redevelopment Agency Project No. 2 47 May 2005 14 Third Implementation Plan 2004-05 2005-06 2006-07 2007-08 2008-09 Revenue 16,537,044 13,788,038 14,200,947 14,626,261 15,108,453 Expenditures taxing agency payments 11,394,169 11,826,665 12,178,465 12,590,820 13,014,045 ERAF payments - - - - bond payments 418,264 417,080 418,264 419,168 419,785 General Fund loan payments 1,053,580 1,158,938 1,274,$32 1,402,315 1,542,547 contract services 339,983 93,734 976i2 101,028 104,114 Agency administration 41,443 15,000 15000 15,000 15,000 SilverRock resort 1,112,445 Highway 111 improvements 312,000 Simon Drive signal 45,379 Total Expenditures 14,717,263 13,511,47 13,984233 14,528,331 15,095,491 Year End Fund Balance 1,819,781 276,621 216714 97,930 = 12,962 The year end fund balance surpluses have, not been schedwld for new projects or program expenditures because the Agency has led- 0 to maintain a mmnimal reserve for future uncertainties. However, if revenues exceed `pr0.ctions, the Agency will then revise its expenditures plan accordingly during the mid-term rev e u t this Implementation Plan. La Quinta Redevelopment Agency Project No. 2 4v 4 May 2005 15 Third Implementation Plan NONHOUSING PROGRAMS - Project No. 2 Through the Second Implementation Plan the Agency implemented a variety of economic development, infrastructure and public facility improvements in Project Area No. 2 including the following: • Miles Avenue/Washington Street Property Disposition and Development Agreement. In 2003 the Agency approved the Disposition and Development Agreement (DDA) with Centre Point, a local development company, that 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 encompasses Centre Point is c Homewood SO of Seeley Drive Other Inf ency plementing a DDA two story caritas hotel Fa projects: utility improvements traffic sigls 'and street lights igebrsh, Bottlebrush, Saquaro mprovements Fhouse sidewalk improvements he first development entailing a ominium units, and the extension During the past five year planning Implementation Actiu'tes — 2004-05 to 2008-09 Planning Period Nonhousing programs and projects for the coming five-year cycle are presented on the following pages. These project proposals entail continuing or completing current initiatives. The Agency will also seek new initiatives (as funding is available) that address blight, stimulate private development, enhance the economic viability of Project Area No. 2, and provide needed public infrastructure and facilities. La Quinta Redevelopment Agency Project No. 2 May 2005 16 Third Implementation Plar- 49 NONHOUSING PROGRAMS- Project No. 2 PROGRAM/PROJECT SilverRock Resort FIVE-YEAR PLAN ACTIVITIES This project will entail initiating site and building planntr activities for a permanent clubhouse and a second golf course, constructing trli and passive recreation improvements, purchasing and improving domestic uirater vuel sites, and concluding negotiations for hotel and commercial property dispo itiort and devej.ppment. EXPENDITURES The Agency anticipates expending up to $1,11 increment revenue to facilitate development of the TIMELINE These activities will be funded in Fiscal' Year Project No. 2 ion facilities. PLAN GOALS TI?'PROJECT WILL ADDRESS � n-housing tax La Quinta Redevelopment Agency Project No. 2 May 2005 17 Third Implementatiori Plan 50 NONHOUSING PROGRAMS- Project No. 2 PROGRAM/PROJECT Highway 111 Improvements FIVE-YEAR PLAN ACTIVITIES This project entails funding roadway, curb and gutter imprgv�ements along Highway 111 in the eastern segment of Project Area No. 2. EXPENDITURES The Agency anticipates expending up to increment revenue to leverage additional pu. TIMELINE These activities will be funded in Fi Diversify Ecoot Invest in I nrat .............................. Expand Develd Improve Traffic Provid for: F-co using tax La Quinta Redevelopment Agency Project Nox 2 �. May 2005 18 Third Implementation Plan J NONHOUSING PROGRAMS- Project No. 2 PROGRAM/PROJECT Simon Drive Traffic Signals FIVE-YEAR PLAN ACTIVITIES This project entails funding traffic signal improvements at Street. EXPENDITURES PLAN GOALS THE PROJECT .WILL . DRES • Diversify EconoMrc R • Invest in Infrastructure , Expand De6pable La • Improve Traffifelilz1,03, culati • Provide for Economic'. rive at Washington BLIGHTING CONDITIONS THE PROJECT WILL ADDRESS equate Pub Facilities n-housing tax La Quinta Redevelopment Agency Project No. 2 J 2 May 2005 19 Third Implementation Plan HOUSING PROJECTS/PROGRAMS Through the Second Implementation Plan the Agency implemented the following affordable housing activities that generated 826 affordable units that feature 30, 45 or 55 year covenants. These covenants insure that the dwellings remain affordable for these time frames. Building Horizons — 8 Dwellings. This program is sponsored by the Boys and Girls Club of Coachella Valley and utilizes La Quinta High School students to design, build and market single-family homes in the Cove. During the past five years this. program has generated eight affordable units of which four were sold to low-income farnil households and four to moderate -income family households. The Agency recorded silent second trust deed loans against the properties in order to insure that total housing costs are affordable to the designated income categories and that the dwellings renrtainfft�i:ifable for 30 to 45 years. These homes are located in Project Area No. 1. SilverHawk Apartment Homes — 75 Dwellings, infrastructure and utility system improvement; apartment homes. This investment resulted fr housing affordable to moderate -income fami affordable for 55 years. This development is to The Agency provided fiutds to assist with to facilitate the developr� nt o : 200 new serving "75 one and two bedroom units as househofdsi, these dwellings will remain �ted fn Project Area No. 1. .................. • Rael Apartment Rehabilitation — 1`4 Dwellings. The Agency provided funds to substantially rehabilitate these 1970's era familyertent homes. leu facades, roofs, landscaping and covered carports were installed By providing this investt:' t: n& , the Agency secured 14 units that will be affordable to moderate-inc*:::m farm y households for 30 years. These homes are located in Project Area No. 1. Watercolors Court Ht3mes — 149 Dwellings. The Agency concluded an Affordable Housing Agreement that wifl facilitate the construction of 149 dwellings that will be sold, at affordable housing costs, #o moderate -income households that are 55 years of age and older. The dwellings will feature Agency funded silent second trust deed mortgages that will insure that these homes will remain affordable to moderate -income households for 45 years. This development is in Project Area No. 2. La Quinta Redevelopment Agency La Quinta Project No. 1 and Project No. 2 53 May 2005 20 Third Implementation Plan HOUSING PROJECTS/PROGRAMS • Lennar Court Homes — 40 Dwellings. In 2003, the Agency concluded a Disposition and Development Agreement that facilitated the sale of 45 acres of land, located southeast of the Miles Avenue and Washington Street intersection, and the development of resort, medical, restaurant, and residential uses. Included are 40 single-family homes that will be sold to moderate -income family households. These dwellings will feature Agency funded silent second trust deed loans that will insure that the dwellings remain affordable to moderate -income family households for 45 years. This develop!p nt is located in Project Area No. 2. • Hadley Villas Senior Apartments — 80 Dwellings. This development was funded through a combination of Agency and HUD funds to generate a senior apartment complex that is affordable to very low-income households that are 5 y6ar of age ter elder. The dwellings will remain affordable to very low-income households for 55 years "rhos development is located in Project Area No. 2. During the '"past five }red Bonds tt secure lower in Agency, linvest in new gency continued to fund silent Project Areas During the past home purchases (10 very low - loans were funded for Project income). These second trust retain affordable for 30 to 45 s. In 20 the Agency purchased the 1950's eject Area No. 2. This Park contained 92 travel come units, that were in dilapidated condition. is and will then redevelop this property with 80 d to very low-income family households. The nnmg cycle the Agency refunded the 1995 Tax Allocation Housing t costs, and to generate $65,000,000 of new bond proceeds that the dable hotsng initiatives. La Quinta Redevelopment Agency La Quinta Project No. 1 and Project No. 2 May 2005 21 Third Implementation Plan !7 4 HOUSING FINANCIAL RESOURCES The chart below presents the combined (Project No. 1 and Project No. 2) revenue and expenditure projections for the five year planning period. The revenue ledger includes anticipated tax increment revenue, the proceeds from the 2004 Housing Bond (the 2004 Finance Authority Bond), income from the La Quinta Rental Housing Program, and the sale of dwellings that feature Agency silent second trust deed loans. The Rental Program income is used to maintain and to substantially rehabilitate these dwellings prior to their sale to very low-income family households. The Agency's silent second trust deed loan income represents repayment of the second trust deed loans and shared appreciation revenue when these units are sold to non -qualifying households and are removed from the Agency's affordable housing inventory. This revenue is `then invested to gain replacement dwellings that will remain affordable for 45 years. Revenue 2004-05 beginning fund balance $ 9,512,242 $ 61,979, Project No. 1 tax increment Project No. 2 tax increment 2004 Finance Authority Bond LQ rental program income 2nd trust deed home sale income Building Horizons home sale income interest income: Total Revenue Expenditures 2004 F Total Expenditures Year End Fund Balance 2008-09 139095 $ 5,961,430 $ 1,180,078 6,480,979 6,675,408 875,670 7,081,940 7,294,399 3,3451543 3,445,910 3649,287 3,655,765 3,765,438 56,736,017 341,000 332000 32 314,000 305,000 660,000 150,6b0 150,000 150,000 85,000 $S;OOQ 85,000 85,000 85,000 20,800 40,700 42,800 57,800 86,000 7 181,581 $ 7.2,708,965 $ 21,538,852 $ 17,305,935 $ 12,865,915 2,3901#IS: 5171,981 5,923,156 5,926,806 5,919,994 483,246 480,575 479,789 479,301 478,083 1,454,589 1,289,448 1,201,477 1,235,750 1,236,869 15o 000 332,000 323,000 314,000 305,000 3,61.* 0240 500,000 250,000 250,000 650, 000 150,000 150,000 150,000 150,000 250,000 250,000 250,000 250,000 250,000 276,411 5,128,134 16,871,866 50,965 20,000,000 150,000 7,000,000 2,520,000 7,000,000 4,000,000 4,000,000 3,000,000 3,000,000 2,000,000 1,000,000 1,000,000 150,000 1,000,000 $ 15,201,634 $ 62,195,870 $ 15,577,422 $ 16,125,857 $ 12,339,946 $ 61,979,947 $ 10,513,095 $ 5,961,430 $ 1,180,078 $ 525,969 La Quinta Redevelopment Agency La Quinta Project No. 1 and Project No. 2 May 2005 22 Third Implementation Plan ;3 HOUSING FINANCIAL RESOURCES Units Assisted Through Housing Fund Expenditures During the past five years the Agency funded the following affordable housing projects with Housing Fund revenue. LQ Rental Housing sales .Building Horizons Rael apartment rehabilitation Silverhawk apartment homes Second trust deed loans Subtotal: Project Area No. 1 Aventine apartments Hadley Villas Senior Apartments Watercolors court homes Second trust deed loans Lennar courtyard homes Vista Dunes couvard'homes Very Low Moderate Total Expenditures 383 $ 11,655,638 670 $ 21,495,638 La Quinta Redevelopment Agency La Quinta Project No. 1 and Project I4o..2 May 2005 23 Third Implementation Plan NEW HOUSING PROJECTS/PROGRAMS The Agency will continue to pro actively implement affordable housing initiatives in order to increase and improve the community's supply of affordable housing, and to achieve its affordable housing production mandates as detailed in the Second Affordable Housing Compliance Plan which follows this section. The following pages outline the programs and projects the Agency will undertake during this five year planning cycle. La Quinta Redevelopment Agency La Quinta Project No. 1 and Project No. 2 ,.. May 2005 24 Third Implementation Plan J NEW HOUSING PROJECTS/PROGRAMS LA QUINTA RENTAL HOUSING PROGRAM I In 1995 the Agency purchased 50 units in Project Area No. 1 to secure the $1.2 million Agency investment which preserved 50 single-family units that were rented to very low- income Section 8 households. As homes became vacant or as existing tenants qualified, the Agency substantially rehabilitated the dwellings and sold them to very low-, low- or moderate -income households. To date, 12 of the 50 units have been sold, 7 to very low- income households, 4 to low-income households, and 1 to a moderate -income household. All of these dwellings feature 30 or 45 year affordability +cvenants. The Agency will continue to rent the remaining 38 dwellings until the existtrtg tertetts elect, and are qualified, to purchase their units, or the units are vacant and may then beId to a very low-income household. The Agency will continue to substanttMy rehabilitate these dwellings prior to these sales. FIVE-YEAR PLAN ACTIVITIES The Agency will continue to re rehabilitating and selling two un EXPENDITURES Annual manageme is funded solely fro, for this program TIMELINE anticipates substantially to average $323,000. This cost nues are expected to be utilized will continue through the five-year cycle. the Community's Supply of Affordable Housing Deteriorated Residential Structures in the Cove La Quinta Redevelopment Agency La Quinta Project No. 1 and Project No. 2 May 2005 25 Third Implementation Plan i NEW HOUSING PROJECTS/PROGRAMS LA QUINTA HOUSING PROGRAM The Agency will continue to fund silent second trust deed mortgage loans that facilitate home purchases for low- and moderate -income households in both Project Area No. 1 and No. 2. Principal and interest payments on these second trust deed loans are not required as long as the dwellings remain affordable for 45 years. Initially, this program funded numerous second trust deed mortgage loans when home prices were reasonable in both Project Areas. However, rapidly increasing home values have significantly decreased the benefits associated with this program. The Agency anticipated phasing it out by Fiscal Year 2007-08, or sooner, if it continues to loose its effectiveness. FIVE-YEAR PLAN ACTIVITIES Staff estimates that five to ten households mortgage loans. EXPENDITURES A total of $4,618,240 is budgeted f TIMELINE • Not At"'i licable r may; apply for these second ,trust deed ram during the five year planning cycle. La Quinta Redevelopment Agency La Quinta Project No. 1 and Project -No. 2 ... May 2005 26 Third Implementation Plan NEW HOUSING PROJECTS/PROGRAMS BUILDING HORIZONS PROJECT The Agency and the Boys and Girls Club have partnered in the construction of low- and moderate -income single-family homes in Project Area No. 1; 19 homes have been constructed over the past eleven years. This program, which uses Agency silent second trust deed loans, will continue over the next five-year term at a rate of developing two new single-family dwellings per year that are subsequently sold to low- and moderate -income family households. FIVE-YEAR PLAN ACTIVITIES This project will result in ten low -and/or mode 2004-05 through 2008-09. EXPENDITURES The Agency will advance $1,250.,000 during the fi during the five year term from home; sale proceeds silent second trust deed mortgage Idan . TIMELINE This project will Mdtiorated Resi the five - PROJECT WI Comm its deve We from Fiscal Years r term; $425,000 will be repaid $800,000 will be converted into DDRESS Supply of Affordable Housing ION I HIS PROJECT WILL ADDRESS ial Structures in the Cove La Quinta Redevelopment Agency La Quinta Project No. 1 and Project.No. 2 � A May 2005 27 Third Implementation Plan NEW HOUSING PROJECTS/PROGRAMS MULTI -FAMILY HOUSING REHABILITATION This project entails completing the property rehabilitation and new construction activities associated with a 2001 Affordable Housing Agreement involving a 26 unit apartment complex located southeast of the intersection of Eisenhower Drive and Calle Tampico in Project Area No. 1. This Agreement provides up to $350,000, which when combined with property owner funding, facilitates the substantial rehabilitatn tf a 26 unit apartment complex and the development of a new six unit two and "three bedroom multi -family apartment complex. In return, the Agency has secured 14 urns that will remain affordable to moderate -income family households for 30 years. FIVE-YEAR PLAN ACTIVITIES A majority of the property rehabilitation activf .t have been completed and thy' owner has secured the required entitlements to build the "new, six unit apartment complex. The 14 affordable units have been secured in the existing 2 unit" apartment complex. EXPENDITURES The Agency anticipates that it will invest the $276,411 by the end of Fiscal Year and should be completed by Fiscal Year PLAN GOALS ` 5 PROjECT WILL ADDRESS • Substandard Structure Design La Quinta Redevelopment Agency La Quinta Project No. 1 and Project No. 2 May 2005 28 Third Implementation Plan 61 NEW HOUSING PROJECTS/PROGRAMS VISTA DUNES COURTYARD HOMES I The Agency will complete resident relocation activities and build 80 new single-family and duplex units that will be rented to very low-income family households. FIVE-YEAR PLAN ACTIVITIES EXPENDITURES The Agency anticipates that it will invest $22`000,000 m this project during the five year planning cycle. TIMELINE These activities started in Fiscal Year, 20 2006-07. PLAN GOALS THIS PROJECT W should be completed by Fiscal Year L ADDRESS • Increase and Irrlprove th lCommunity's Supply of Affordable Housing BLIGH N C NDIT10NS THIS PROJECT WILL ADDRESS • lJnsafe/Dilapidat dix eteriora d Buildings • trya. equate Public infrastructure/Facilities • RealdentialOvercring La Quinta Redevelopment Agency La Quinta Project No. 1 and Project No. 2 et May 2005 29 Third Implementation Plan Aw NEW HOUSING PROJECTS/PROGRAMS DUNE PALMS MULTI -FAMILY HOUSING I In 2004 the Agency purchased a 27.75 acre parcel located on Dune Palms Road, south of Highway 111, in Project Area No. 2. Approximately 15 acres is slated for up to 300 apartment homes that will be rented to very low-, low- and moderate -income households. Developer proposals have been submitted and the Agency anticipates selecting a developer by the summer of 2005. Site planning and project structuring/financing negotiations will subsequently take place which should generate an affordable hcusjng agreement by the first quarter of 2006. Assuming a 24 month period to secure building permits and construct the apartment home complex, the units should be available far: occupancy in 2008. FIVE-YEAR PLAN ACTIVITIES During the five year term of this Implementation Plan the Agency will..... select a developer/operator, conclude an affordable h8uing agreement, complete life and building planning activities, and facilitate the construction end relent occupancy o the apartment home community. EXPENDITURES The Agency anticipates that it will i year planning cycle. TIMELINE These activities started in 2007-08 Year 20 in this` development during the five and should be completed by Fiscal Year PLAN OALS f _ P O.,ACT WILL ADDRESS La Quinta Redevelopment Agency La Quinta Project No. 1 and Project No.2 May 2005 30 Third Implementation Plan 63 NEW HOUSING PROJECTS/PROGRAMS WATERCOLORS COURT HOMES • Ihad. uate public infrastructure/facilities La Quinta Redevelopment Agency La Quinta Project No. 1 and Project No. 2 64 May 2005 31 Third Implementation Plan NEW HOUSING PROJECTS/PROGRAMS LENNAR COURT HOMES The Agency will fund 40 silent second trust deed mortgage loans to accommodate home purchases by moderate -income family households. This project is part of a larger development program for a 55-acre parcel located southeast of the intersection of Washington Street and Miles Avenue. In 2003 the Agency approved the Disposition and Development Agreement with Centre Point that facilitates.:,,: tality, medical office, residential and park uses on this property. FIVE-YEAR PLAN ACTIVITIES TIMELINE The Agency anticip 2007-08. ..................... • Iridequate public ing the sile ECT WI Com ............................... trust deed mortgage loans in Fiscal Year Supply of Affordable Housing IS PROJECT WILL ADDRESS ructure/facilities La Quinta Redevelopment Agency La Quinta Project No. 1 and Project No. 2 May 2005 32 Third Implementation Plan 6 a NEW HOUSING PROJECTS/PROGRAMS MOBILE HOME PARK REHABILITATION � This project would entail either working with the existing owner or purchasing the Dune Palms Mobile Home Park, located in Project Area No. 2, to rehabilitate the infrastructure, replace the existing dilapidated mobile home coaches with new mobile or modular home units, and secure up to 100 affordable housing covenants that would remain affordable to very low- and low-income families for 55 years. FIVE-YEAR PLAN ACTIVITIES Discussions with the Park owner will continue durl:: � Fiscal Year 2 05-06. Acquisition activities (if required) may also start during Fiscal Year 2005-06, MY ,park and home rehabilitation activities commencing in Fiscal Year 2006-07 and continuing through the five year planning period. EXPENDITURES La Quinta Redevelopment Agency La Quinta Project No. 1 and Project No. 2 6 6 May 2005 33 Third Implementation Plan NEW HOUSING PROJECTS/PROGRAMS PROPERTY ACQUISITION The Agency has sold, or is in the process of selling all of the vacant property it acquired since 1995 to accommodate affordable housing development. In order to meet its housing mandates, it will continue to identify and purchase new properties that may accommodate affordable housing. Since a majority of land within both Project Areas is either developed or committed for development, it will also evaluate purchasing proodft,. outside of the Project Areas, but within the City limits, in order to facilitate affordaie housing development on a two to one basis. FIVE-YEAR PLAN ACTIVITIES Staff is identifying sites as part of the C expenditures would commence in Fiscal Yf 2008-09. EXPENDITURES Land acquisition costs are estim period. TIMELINE Property id 2008-09. insure Quality D • M., ble Parcel; ..................... • Collect Underutili ..................... ..................... ..................... ..................... • Increa"and Imp and adIdduisition acti uld occur in Fiscal Years 2005-06 through ECT WILL ADDRESS n and avelopment lots the Community's Supply of Affordable Housing BLIGHTING CONDITIONS THIS PROJECT WILL ADDRESS • Improve Facilities/Infrastructure La Quinta Redevelopment Agency La Quinta Project No. 1 and Project No. 2 67 May 2005 34 Third Implementation Plan NEW HOUSING PROJECTS/PROGRAMS VILLAGE LIVE/WORK HOUSING This program will involve the construction of a mixed -use development of commercial, office and affordable residential units in the Village, located in Project Area No. 1. The housing units would be affordable to very low-, low- and moderate -income households. FIVE-YEAR PLAN ACTIVITIES The program is currently in the planning stages. Staff is idehfiying potential sites and the costs associated with purchasing these sites and facilitating mixed use development proposals. Preliminary project structuring wo,rk would occur during Fiscal Year 2005-06, with site acquisition occurring in 2006-07. EXPENDITURES lanning activities and $1,000,000 5-06 with property acquisition in PLAN GOALS �m m ___ PF J�CT WIGS ADDRESS I BLIGHTING 'tY . ITIONS THIS PROJECT WILL ADDRESS � • Mixed and Incompatible Uses • Stagnant Commercial Activity 41, La Quinta Redevelopment Agency La Quinta Project No. 1 and Project No. 2 6 r May 2005 35 Third Implementation Plan �i SECOND HOUSING COMPLIANCE PLAN This document is the Second Affordable Housing Compliance Plan ("Second Compliance Plan") for La Quinta Redevelopment Project No. 1 ("Project No. 1") and Redevelopment Project No. 2 ("Project No. 2") of the La Quinta Redevelopment Agency ("Agency"). This Second Compliance Plan replaces the Agency's First Affordable Housing Compliance Plan (adopted on December 1994 and subsequently amended in March 1998 and July 1999) to update Agency's affordable housing activities since 1994. In 1994, the Agency initiated a ten-year affordable housing effort to produce 1,672 inclusionary housing units estimated to be needed by 2004 to meet its housing mandate. Since then, the Agency has produced 1,031 affordable housing units. Legal Requirements Contents This Second Com s been developed to: • Forecast the number of dwelling units to be developed or substantially rehabilitated by the Agency between 2004-05 and 2013-14 La Quinta Redevelopment Agency La Quinta Project No. 1 and Project No. 2 May 2005 36 Second Affordable Housing Compliance Plan q9 SECOND HOUSING COMPLIANCE PLAN • Identify City/Agency and other revenue sources for funding affordable housing production • Identify implementation policies/programs and potential sites for affordable housing development • Establish a schedule of actions for implementing this Second Compliance Plan so as to ensure that the Agency's affordable housing mandate is being achieved • Review the affordable housing goals, objeo ves and programs contained in the November 2004 City of La Quinta H..,sing Element Update ("Housing Element") to confirm this Second Compiance Plan is consistent with the Housing Element Background On November 29, 1983 the Agency adopted the f Area No. 1, establishing the Agency's first n encompasses 17.5 square miles Project Area No. opment Plan for the Project pment project area which of the City and includes land des'li§160ited for commercial, institutional, recreational, and public uses: Project Area No: Avenue 50 to the north, Jefferson Street and 11adaon Streets the south, and the City limit boundary onthe west.'' At the tr Area No. 1 included 2,240 dwelling units accorcjng to its repo Purpose i in the southern portion ,ffice, residential, retail, Is; generally bounded by a the east, Avenue 60 to of its adoption, Project to Council. Since 1976, redevelopment agencies have been required to assure that at least 15% of all new or rehabilitated units developed within a redevelopment project area by entities other than a redevelopment agency are available at affordable costs to households of very low-, low-, or moderate -income. Of this 15%, not less than 40% of the affordable units must be affordable to very low-income households (50% or below of area median income). Further, at least 30% of all new or rehabilitated dwelling units developed within a project area by a redevelopment agency are made available at affordable costs to low - or moderate -income households. Of this 30%, not less than 50% of the dwelling units must be available at affordable costs to very low-income households. These A J La Quinta Redevelopment Agency La Quinta Project No. 1 and Project No. 2 May 2005 37 Second Affordable Housing Compliance Plan 70 SECOND HOUSING COMPLIANCE PLAN requirements are applicable to housing units as aggregated and not on a case -by -case basis to each dwelling unit created or rehabilitated unless so required by a redevelopment agency. The Law requires agencies to adopt an affordable housing compliance plan that identifies how the redevelopment agency will achieve the aforementioned affordable housing production requirements for each project area. The compliance plan must be consistent with the jurisdiction's housing element and must also be reviewed and, if necessary, amended at least every five years in conjunction with the cyclical preparation of the housing element or the agency's five-year implementation plan. Agency Housing Funds Definitions and Qua Comp1110#ion New Construction. Construction statistics were provided by the City of La Qu:Anta's planning staff. Because the Law does not provide a clear definition for new construction, Agency staff, consultant, and legal ............:................. ............................. ............................ counsel Gave agreed upon a "definition" for new construction. For the purposes of this Second Compliance Plan, building permits issued for the construction of new dwelling units since the respective adoption dates of the Project Areas are considered to be new construction dwelling units; therefore, these units generate the Agency's affordable housing production requirements. Future dwelling unit construction projections were determined by identifying the build out capacity of all vacant and underdeveloped parcels within both Project Areas, based upon existing land uses and recent historical trends of building permits issued for residential units. The City Community Development Department staff La Quinta Redevelopment Agency La Quinta Project No. 1 and Project No. 2,. 71 May 2005 38 Second Affordable Housing' - Compliance Plan SECOND HOUSING COMPLIANCE PLAN does not anticipate the Project Areas will experience build out within the ten year time frame covered by this Second Compliance Plan. • Substantial Rehabilitation. The Law defines "substantial rehabilitation" as: "....rehabilitation, the value of which constitutes 25 percent of the after rehabilitation value of the dwelling, inclusive of the land value. " "Substantially rehabilitated dwelling units" means: "... all units substantially rehabilitated istance. " Research indicates that the only units that :have undergone. substantial rehabilitation are those that have keen part of the Agency" affordable housing activities. These units h40 been included in the overall hf, (Asing production requirements. La Quinta Redevelopment Agency May 2005 La Quinta Project No. 1 and Project No. 2 39 Second Affordable Housing Compliance Plan 7+2 AFFORDABLE HOUSING ACTIVITIES This section reviews the number of dwelling units which have been destroyed/removed by the Agency to date, the number of privately developed or substantially rehabilitated units for both Project Areas, and the Agency's affordable housing production efforts to date. Dwellings Destroyed or Removed Directly or Indirectly by Agency to Date Dwellings Constructed/Substantially Rehabilitated within the Pro, Based upon data provided by the City's Community Development Department the total number of new housing units constructed and/or SUN,. staitially rehabilitated in Project Area No. 1 ("PA 1 ") and Project Area No. 2 ("PA 2") from adoption to Fiscal Year 2003- 04 is presented below: 1983/1989 to 1994 "'31824 904 4,728 1994 to `2004 21568 3,852 6,420 1983-1989 to 2004 6,392 : 4,756 11,148 This new housM constructl+C following affordable h+�sngr or substantial rehabilitation activity generated the ction requirements for the Agency: 989.40 1994 994 to 2004 989 to 2004 La Quinta Redevelopment Agency May 2005 Very Low Low/Moderate Total 284 425 709 385 578 963 669 1,003 1,672 La Quinta Project No. 1 and Project No. 2 40 Second Affordable Housing. Compliance Plan 73 AFFORDABLE HOUSING ACTIVITIES Affordable Housing Developed or Substantially Rehabilitated Since 1994 the Agency has facilitated the production or substantial rehabilitation of 1,031 affordable dwellings that feature 30, 45 or 55 year covenants that insure the dwellings will remain affordable for that time period. The Law initially required 30 year covenants but was amended in 2002 to increase this period to 45 years for owner occupied dwellings and 55 years for rental dwellings. The chart that follows identifies the Project Area, project/program and the income level of the affordable dwellings produced as of May 2005. Stockman 6 - 15 LQ Rental Housing sales 7 4 1 12 LQ Rental Housing rental units 38 38 Coachella Valley Housing Coalition Sweat Equity 5 5 10 Building Horizons1 14" 23 Seasons Seniors ;. 91 Williams Development single family 6.1 14 - 20 Rael apartment rehabilitation 14 14 SilverHawk apmQnts 75 75 Second trust deed loess ,, 10 134 44 188 Subtotal: Project Area No. 1 418 147 486 ira Flores nior apartments 94 24 118 Mira Ffiot'es single family 44 44 Aventine apartments 10 10 20 118y Mllas sefljpr apartments 80 80 Watercolors �u lom+es 149 149 9800 d trust deed fia : 6 8 14 L.e ibiar court homes 40 40 t t punes C4ca 1yard Homes 80 80 Subtotal: Project Area No. 2 160 110 275 545 ed/An6'roved - 1994 to 2004 281 328 422 1,031 While the Agency h `made significant progress towards producing affordable units, it still has a production deficit. Private development and substantial rehabilitation activities in both Project Areas created an affordable housing production requirement of 1,672 units (as of Fiscal Year 2004-05); 669 units must be affordable to very low- income households. The Agency has secured 1,031 affordable units to date (641 units short of the required number) of which 281 are affordable to very low-income households (388 units short of the required number). The Agency will correct this deficit during the ten year planning period of this Second Compliance Plan. La Quinta Redevelopment Agency La Quinta Project No. 1 and Project No. 2 May 2005 41 Second Affordable Housing (4 Compliance Plan AFFORDABLE HOUSING ACTIVITIES The chart below presents the affordable housing production needs from the respective adoption of Project No. 1 and Project No. 2 to Fiscal Year 2003-04, from Fiscal Year 2004-05 through 2013-14, and for the remaining life of the Project No. 1 and Project No. 2 Redevelopment Plans. 1983/1989 to 1994 284 425 709 1994 to 2004 385 578 963 Total 19$3/1989 to 2004 59 ; 1,003 1,672 Second Housing Compliance Plan 200445 to 2# '!3 14 92 138 230 2013-14 to 2023/2029 (Redevelopment Plan Eft�ctiveness)' 3 55 92 Total Projectetl usionay Houslog Need 798 1,196 1,994 La Quinta Redevelopment Agency La Quinta Project No. 1 and Project No. 2 May 2005 42 Second Affordable Housing Compliance Plan FINANCIAL RESOURCES The Agency deposits 20% of tax increment revenue allocated to the Agency into separate housing funds for each Project Area. For purposes of this Second Compliance Plan, the revenue and expenditures for both Project No. 1 and Project No. 2 are combined into one revenue and expenditure schedule. The Agency implements its housing program as one comprehensive program. Projections of Housing Fund revenues for both Project Areas are presented on the following pages. Expenditures include debt service payments for the Agency's Series 1994 tax al100ation bonds and for the La Quinta Financing Authority's 2004 Housing Bond housing program administration costs, and housing program expenditures. 2004-05 2006-07 2008-09 Revenue beginning fund balance $ 9,512,242 $ 61,979,947 10,513,095 $ 6,139,592 $ 907,479 Project No. 1 tax increment 6,480,979 6,6751408 69925,102 7,380,485 8,127,261 Project No. 2 tax increment 3,345,543 3,445,910 3,678,017 3,906,459 4,107,203 2004 Finance Authority Bond 6%7211. LQ rental program income 34i dw. 332,000 &000 314,000 305,000 2nd trust deed home sale income 669,000 150,000 't50;000 150,000 150,000 Building Horizons home sale income 85000 85,000 85,000 85,000 85,000 interest income 26,000 40,7€tt~# 42,800 57,800 50,000 Total Revenue Expenditures $ 77,181,581 $ 72,708,965' $ 21,717,014 $ 18,033,336 $ 13,731,944 2004 Financ Authority Bt nd 2,990,049 5.171,981 5,923,156 5,926,806 5,919,994 1994 py'net4 483x24G 480,575 479,789 479,301 478,083 har�tsirlg )gram atiMJnistration 't,454, 89' 1,289,448 1,201,477 1,235,750 1,236,869 LQ rentitl ram 150,000 332,000 323,000 314,000 305,000 2nd trust stood, loan program, 3,618,240 500,000 250,000 250,000 forecio acquisition 650,000 150,000 150,000 150,000 150,000 Butido Horizons. : 250,000 250,000 250,000 250,000 250,000 multi -family housing rehabilitation'' 276,411 Vista Dunes Courtyafd Homes 5,128,134 16,871,866 Dune Palms multi -family 50,965 20,000,000 Watercolors curt homes 150,000 7,000,000 Lenna;r Court homes 2,520,000 mobile h+rre parts rehabilitation 7,000,000 4,000,000 4,000,000 3,000,000 property acquisition 3,000,000 2,000,000 1,000,000 1,000,000 Village' mixed use housing 150,000 1,000,000 1,000,000 500,000 nw housing production Total Expenditures $ 15,201,634 $ 62,195,870 $ 15,577,422 $ 17,125,857 $ 12,839,946 Year End Fund Balance $ 61,979,947 $ 10,513,095 $ 6,139,592 $ 907,479 $ 891,998 A k' La Quinta Redevelopment Agency La Quinta Project No. 1 and Project No. 2.- F� May 2005 43 Second Affordable Housing Compliance Plan FINANCIAL RESOURCES 2009-10 2010-11 2011-12 2012-13 2013-14 Revenue beginning fund balance $ 891,998 $ 2,223,576 $ 3,027,798 $ 2,419,647 $ 2,818,045 Project No. 1 tax increment 8,827,443 9,192,264 9,564,381 i9,847,755 10,106,192 Project No. 2 tax increment 4,311,962 4,520,817 4,733,848 4,8,023 5,189,999 2004 Finance Authority Bond LQ rental program income 200,000 150,000 100'. 100,000 100,000 2nd trust deed home sale income 100,000 100,000 10t6t30C1 100,000 100,000 Building Horizons home sale income 85,000 85,000 i35,000 .85,000 85,000 interest income 50,000 50,000 50,000 K000 50,000 Total Revenue $ 14,466,404 $ 16,321,657 $ 17,6661,027 $ 17,570,425 $ 18,449,236 Expenditures 2004 Finance Authority Bond 5,702,548 1994 bond payments 490,280 housing program administration 1,300,000 LQ rental program 25q,000 2nd trust deed loan program foreclosure acquisition 200,0QQ Building Horizons 300,000 multi -family housing rehabilitation Vista Dunes Courtyard Homes Dune Palms multi €amily Watercolors cWJt :: h=.,es Lennal' hurt home mobile home park rehabilitation propejty acquisition 2,000,000 Village mixed u housing 2,000,000 new housing prructaon 5,702194T, 5,70 ,072 5,702,380 5,702,192 490,911' 4901307 1,400,000 t300,000 1,450,000 1,500,000 200,000 15 000 100,000 50,000 200,000 200,000 200,000 200,000 Q,QQO 300,000 300,000 300,000 5,0001000 7,000,000 7,000,000 7,000,000 12,242,828 13,293,858 $ 15,241,379 $ 14,752,380 $ 14,752,192 2,223,56 $ 3,027,798 $ 2,419,647 $ 2,818,045 $ 3,697,044 La Quinta Redevelopment Agency May 2005 La Quinta Project No. 1 and Project No. 2' 44 Second Affordable Housing Compliance Plan FINANCIAL RESOURCES Per the Law, the Agency's housing fund expenditures must be in proportion to the community's total population of very low to moderate -income households, as well as the proportion of the population both over and under 65. The chart that follows presents the minimum thresholds for housing fund expenditures during the ten year term of this Second Compliance Plan. Basically, during the ten year planning period of this Second Compliance Plan the Agency's total housing fund expenditures must be aligned with the percentages outlined below. Low -Income Households Based on community's need for housing for housek: W. 22% earning less than 80% of county median income. Moderate -Income Households Based on community's need for housing fflr households 11 earning less than 120% of county median mCarY1 Households Under, �4g fib 87% Households Over Age 65 ` 13% nsus and the Housing Element. La Quinta Redevelopment Agency La Quinta Project No. 1 and Project No. 2 May 2005 45 Second Affordable Housing Compliance Plan NEW HOUSING PROJECTS/PROGRAMS This section presents the strategies the Agency will pursue to meet the production requirements for the ten year planning period of the Second Compliance Plan. During the ten year planning period of this Second Compliance Plan, the Agency is projected to need 230 affordable units of which 92 must be affordable to very low-income households. This is in addition to the 641 unit deficit that remains from the previous ten year planning period (1994-2004). During this Second Compliance Plan, the Agency must produce a projected 871 affordable dwellings of which 483 must be affordable to very low-income households. The Agency will pursue the following programs to produce needed affordable housing for the remainder of the ten year cycle! • Building Horizons. The Agency will continue sponsored by the Boys and Girls Club of Coache# period, the Agency anticipates that this prograr dwellings, of which 10 will be affordable t mdd4 10 affordable to low-income households. All affordable to households under the age t�f 65. - Estimated Units to be Produced: 20 at Dune Palms Multi -Family The Agency owns 66 that is located west of Dune 'alms Road, north c - - - - - - . develo fun€ this program that is Valle, Curing the ten-year will genets 20 affordable 'ate -income 6 seholds and of these dwellings will be mately 15 acre parcel iue 48. During Fiscal )0osals and will select nits toe ,Produced: 300 with anticipated opening by 2008. - Estimated Units to be Produced: 100 with anticipated opening by 2008. • La Quinta Housing Program. The Agency will continue to implement the La Quinta Housing Program to facilitate the production of affordable housing units throughout the Project Areas. While this program effectiveness has diminished over the past two years, the Agency anticipated that it will fund 20 La Quinta Redevelopment Agency La Quinta Project No. 1 and Project No. 2 May 2005 46 Second Affordable Housing Compliance Plan 7.3 NEW HOUSING PROJECTS/PROGRAMS to 40 silent second trust deed mortgage loans during the first four years of the ten-year planning cycle. These loans facilitate home purchase opportunities for low- and moderate -income family households. All of these units would be affordable to households under the age of 65. - Estimated Units to be Produced: 32 with 8 per year during the next 4 years. ar`"starting in Fiscal Year �ntory the Agency assembled or othrwise committed for Compliance Plan, the Agency s for new affordable housing timated Ung.o be Produced: 420 with 55 per year starting in Fiscal Year D-07. La Quinta Redevelopment Agency La Quinta Project No. 1 and Project No. 2 May 2005 47 Second Affordable Housing Compliance Plan tp 0 .., . j 4u HOUSING ELEMENT COMPLIANCE Because this Second Compliance Plan focuses on providing housing for very low- and low-income households who are generally the most difficult segment of the community to provide housing for, it is consistent with the Housing Element's goal to provide housing for all economic groups within the City. Both this Second Compliance Plan and the Housing Element state there is a definite need to assure an adequate supply of housing for the lower income segments of the City. It should be noted, however, that the Regional Housing Needs Assessment (RHNA) prepared by SCAG for the City of La Quinta shows that the greatest housing concentration need through 2005 will be generated and above moderate -income households. The future neeO determined by SCAG shows 21 % of the need for moderate -income households and 48% of the households need as above moderate. La Quinta Redevelopment Agency La Quinta Project No. 1 and Project No. 2 May 2005 48 Third Implementation Plan q a