2005 07 19 RDA6T# 4 44dja
Redevelopment Agency Agendas are
Available on the City's Web Page
@ www.la-quinta.org
REDEVELOPMENT AGENCY
AGENDA
CITY COUNCIL CHAMBERS
78-495 Calle Tampico
La Quinta, California 92253
Regular Meeting
Tuesday, July 19, 2005 - 2:00 PM
Beginning Resolution No. RA 2005-008
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 - NONE
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.
.1
Redevelopment Agency Agenda 1 July 19, 2005 1
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 JUNE 15, 2005.
2. APPROVAL OF MINUTES OF JULY 5, 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 JULY 19, 2005.
2. TRANSMITTAL OF TREASURER'S REPORT DATED MAY 31, 2005.
3. TRANSMITTAL OF REVENUE AND EXPENDITURE REPORTS DATED MAY 31, 2005
AND INVESTMENT SUMMARY REPORT FOR THE QUARTER ENDING JUNE 30,
2005.
4. APPROVAL OF PLANS, SPECIFICATIONS, AND ENGINEER'S ESTIMATE FOR
SilverRock RESORT MONUMENT SIGNS.
5. APPROVAL OF AMENDMENT NO. 6 TO THE KEITH COMPANIES FOR DRAINAGE
IMPROVEMENT DESIGN AT SilverRock RESORT.
6. ADOPTION OF AN EMERGENCY CONTRACT RESOLUTION AUTHORIZING STAFF
TO NEGOTIATE A CONSTRUCTION CONTRACT FOR THE SilverRock RESORT
MOUNTAIN DRAINAGE IMPROVEMENTS.
7. APPROVAL OF AN EXCLUSIVE NEGOTIATION AGREEMENT BY AND BETWEEN
THE LA QUINTA REDEVELOPMENT AGENCY AND COACHELLA VALLEY HOUSING
COALITION.
Redevelopment Agency Agenda 2 July 19, 2005
BUSINESS SESSION
1 . CONSIDERATION OF A (1) RESOLUTION APPROVING THE FISCAL YEAR
2005-2006 LA QUINTA REDEVELOPMENT AGENCY BUDGET AND A (2)
RESOLUTION DETERMINING THE PLANNING AND ADMINISTRATION EXPENSES
TO BE FUNDED IN FISCAL YEAR 2005-2006.
A. RESOLUTION ACTIONS
2. CONSIDERATION OF CONCEPT PLAN/SITE PLAN PURSUANT TO THE EXCLUSIVE
NEGOTIATION AGREEMENT BY AND BETWEEN THE LA QUINTA REDEVELOPMENT
AGENCY AND DDC DESERT DEVELOPMENT, INC., FOR DEVELOPABLE PARCELS
WITHIN SilverRock RESORT.
A. MINUTE ORDER ACTION
STUDY SESSION - NONE
CHAIR AND BOARD MEMBERS' ITEMS - NONE
PUBLIC HEARINGS - NONE
ADJOURNMENT
Adjourn to a regularly scheduled meeting of the Redevelopment Agency to be held on
August 2, 2005 commencing with closed session at 2:00 PM and open session at 3:00
PM in the City Council Chambers, .78-495 Calle Tampico, La Quinta, CA 92253.
DECLARATION OF POSTING
1, 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 July 19, 2005, was posted
on the outside entry to the Council Chamber at 78-495 Calle Tampico and on the bulletin
boards at 51-321 Avenida Bermudas and 78-630 Highway 1 1 1, on July 15, 2005.
DATED: July 15, 2005
JUN �GREEK, CMC, City Clerk
City of La Quinta, California
4j
Redevelopment Agency Agenda 3 July 19, 2005
Tit,, 4 4 Q"
COUNCIL/RDA MEETING DATE: JULY 19, 2005
ITEM TITLE:
Demand Register Dated July 19, 2005
RECOMMENDATION:
It is recommended the Redevelopment Agency Board:
AGENDA CATEGORY:
BUSINESS SESSION
CONSENT CALENDAR /
STUDY SESSION
PUBLIC HEARING
Receive and File the Demand Register Dated July 19, 2005 of which $593,986.65
represents Redevelopment Agency Expenditures.
PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA
El
c&&t 4 4v Qumrlk-�
COUNCIL/RDA MEETING DATE: J u ly 19, 2 0 0 5
ITEM TITLE: Transmittal of Treasurer's Report
dated May 31, 2005
RECOMMENDATION:
It is recommended the La Quinta Redevelopment Agency:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: JL
STUDY SESSION:
PUBLIC HEARING:
Receive and File the Treasurer' s Report dated May 31, 2005.
PLEASE SEE BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA
ce-i&t 4 ZA Qa4trl5u
COUNCIL/RDA MEETING DATE:
ITEM TITLE: Transmittal of Revenue and
Expenditure Reports dated May 31, 2005
and Investment Summary Report for the Quarter
Ending June 30, 2005
RECOMMENDATION:
Receive and File.
BACKGROUND AND OVERVIEW:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Transmittal of the May 31, 2005 Statement of Revenue and Expenditures for the
La Quinta Redevelopment Agency and Investment Summary Report for the Quarter
Ending June 30, 2005.
Respectfully submitted,
Jo n M. Falconer, Fina ce Director
Approved for submission by:
Thomas P. Genovese, City Manager
Attachments: 1. Revenue and Expenditures Report, May 31, 2005
2. Investment Summary for the Quarter Ending June 30, 2005
6
ATTACHMENT 1
LA QUINTA REDEVELOPMENT AGENCY
REVENUE SUMMARY
PROJECT AREA NO. 1:
LOW/MODERATE BOND FUND:
Allocated Interest
Home Sale Proceeds
Non Allocated Interest
Transfer In
TOTAL LOWIMOD BOND
LOW/MODERATE TAX FUND:
Tax Increment
Allocated Interest
Non Allocated Interest
Miscellaneous revenue
Non Allocated Interest
LQRP-Rent Revenue
Home Sales Proceeds
Sale of Land
Sewer Subsidy Reimbursements
Rehabilitation Loan Repayments
2nd Trust Deed Repayment
Transfer In
TOTAL LOW/MOD TAX
DEBT SERVICE FUND:
Tax Increment
Allocated Interest
Non Allocated Interest
Interst - County Loan
Interest Advance Proceeds
Transfers In
TOTAL DEBT SERVICE
CAPITAL IMPROVEMENT FUND - NON-TAXABLE
Pooled Cash Allocated Interest
Non Allocated Interest
Litigation Settlement Revenue
Loan Proceeds
Rental Income
Transfers In
TOTAL CAPITAL IMPROVEMENT
CAPITAL IMPROVEMENT FUND - TAXABLE
Pooled Cash Allocated Interest
Non Allocated Interest
Litigation Settlement Revenue
Bond proceeds
Rental Income
Transfers In
TOTAL CAPITAL IMPROVEMENT
REMAINING
BUDGET RECEIVED BUDGET
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
6,480,979.00
6,643,532.76
(162,553.76)
20,800.00
26,268.95
(5,468,95)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
341,000.00
234,977.80
106,022.20
990,000.00
668,641.92
321,358.08
0.00
0.00
0.00
0.00
73,868.85
(73,868.85)
0.00
87,523.81
(87,523.81)
0.00
1,663,685.73
(1,663,685.73)
0.00
0.00
0.00
7,832,779.00
9,398,499.82
(1,565,720.82)
25,923,915.00
26,574,131.06
(650,216.06)
66,000.00
115,421.80
(49,421.80)
0.00
0,00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2,478,347.00
2,478,346.90
0.10
28,468,262.00
29,167,899.76
(699,637.76)
150,000.00
113,033.79
36,966.21
750,000.00
550,930.59
199,069.41
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
442,928.00
(442,928.00)
900,000.00
1,106,892.38
(206,892.38)
0.00
0.00
0.00
50,000.00
39,593.27
10,406.73
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
50,000.00
39,593.27
10,406.73
LA QUINTA REDEVELOPMENT AGENCY 07/01/2004 - 05/31/05 REMAINING
EXPENDITURE SUMMARY BUDGET EXPENDITURES ENCUMBERED BUDGET
PROJECT AREA NO. 1:
LOW/MODERATE BOND FUND
PERSONNEL
0.00
0.00
0.00
0.00
SERVICES
0.00
0.00
0.00
0.00
REIMBURSEMENT TO GEN FUND
0.00
0.00
0.00
0.00
HOUSING PROJECTS
0.00
0.00
0.00
0.00
TRANSFERS OUT
0.00
0.00
0.00
0.00
TOTAL LOW/MOD BOND
0.00
0.00
0.00
0.00
LOW/MODERATE TAX FUND:
PERSONNEL
4,900.00
5,501.75
0.00
(601.75)
SERVICES
253,157.00
188,282.87
0.00
64,874.13
BUILDING HORIZONS
250,000.00
225,000.00
0.00
25,000.00
LQ RENTAL PROGRAM
150,000.00
239,502.55
0.00
(89,502.55)
LQ HOUSING PROGRAM
3,118,240.00
155,000.00
0.00
2,963,240.00
LOW MOD VILLAGE APARTMENTS
400,000.00
0.00
0.00
400,000.00
LQRP - REHABILITATION
0.00
0.00
0.00
0.00
APT REHABILITATION
276,411.00
119,220.87
0.00
157,190.13
LQ HOUSING PROJECTS
500,000.00
265,000.00
0.00
235,000.00
REIMBURSEMENT TO GEN FUND
668,272.00
612,582.67
0.00
55,689.33
TRANSFERS OUT
2,478,347.00
2,478,346.90
0.00
0.10
TOTAL LOW/MOD TAX
8,099,327.00
4,288,437.61
0.00
3,810,889.39
DEBT SERVICE FUND:
SERVICES
496,585.00
360,415.19
0.00
136,169.81
BOND PRINCIPAL
2,395,000.00
2,395,000.00
0.00
0.00
BOND INTEREST
7,929,969.00
7,929,969.26
0.00
(0.26)
INTEREST CITY ADVANCE
952,764.00
873,367.00
0.00
79,397.00
PASS THROUGH PAYMENTS
12,283,973.00
11,994,038.01
0.00
289,934.99
ERAF SHIFT
2,780,728.00
2,780,728.42
0.00
(0.42)
TRANSFERS OUT
1,995,101.00
2,438,029.00
0.00
(442,928.00)
TOTAL DEBT SERVICE
28,834,120.00
28,771,546.88
0.00
62,573.12
CAPITAL IMPROVEMENT FUND:
PERSONNEL
4,900.00
4,956.60
0.00
(56.60)
SERVICES
116,393.00
154,736.36
0.00
(38,343.36)
LAND ACQUISITION
0.00
0.00
0.00
0.00
ASSESSMENT DISTRICT
0.00
0.00
0.00
0.00
ADVERTISING -ECONOMIC DEV
40,000.00
40,000.00
0.00
0.00
ECONOMIC DEVELOPMENT
50,000.00
16,770.12
0.00
33,229.88
BOND ISSUANCE COSTS
0.00
0.00
0.00
0.00
CAPITAL - BUILDING
0.00
0.00
0.00
0.00
REIMBURSEMENT TO GEN FUND
292,413.00
302,575.82
0.00
(10,162.82)
TRANSFERS OUT
39,721,542.00
14,091,613.22
0.00
25,629,928.78
TOTAL CAPITAL IMPROVEMENT
40,225,248.00
14,610,652.12
0.00
25,614,595.88
CAPITAL IMPROVEMENT FUND/TAXABLE BOND
BOND ISSUANCE COSTS
0.00
0.00
0.00
0.00
TRANSFERS OUT
5,778,816.00
5,783,408.98
0.00
(4,592.98)
TOTAL CAPITAL IMPROVEMENT
5,778,816.00
5,783,408.98
0.00
(4,592.98)
3
LA QUINTA REDEVELOPMENT AGENCY
REVENUE SUMMARY
PROJECT AREA NO. 2:
LOW/MODERATE BOND FUND:
Allocated Interest
Non Allocated Interest
Bond proceeds (net)
Transfer In
TOTAL LOW/MOD BOND
LOW/MODERATE TAX FUND:
Tax Increment
Allocated Interest
Non Allocated Interest
Developer funding
Vista Dunes MHP Rental Rev
2nd Trust Deed Repayment
ERAF Shift - Interest
Sale of Land
Transfer In
TOTAL LOW/MOD TAX
2004 LOW/MODERATE BOND FUND:
Allocated Interest
Home Sale Proceeds
Non Allocated Interest
Transfer In
TOTAL LOW/MOD BOND
DEBT SERVICE FUND:
Tax Increment
Allocated Interest
Non Allocated Interest
Interest Advance Proceeds
Transfer In
TOTAL DEBT SERVICE
CAPITAL IMPROVEMENT FUND:
Allocated Interest
Non Allocated Interest
Developer Agreement
Transfers In
TOTAL CAPITAL IMPROVEMENT
REMAINING
BUDGET RECEIVED BUDGET
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
3,345,543.00
3,438,556.02
(93,013.02)
24,100.00
63,290.73
(39,190.73)
0.00
0.00
0.00
7,054,074.00
7,096,293.56
(42,219.56)
0.00
203,962.12
(203,962.12)
0.00
332,746.70
(332,746.70)
0.00
0.00
0.00
8,637,300.00
801,359.00
7,835,941.00
0.00
0.00
0.00
19,061,017.00
11,936,208.13
7,124,808.87
0.00
0.00
0.00
0.00
0.00
0.00
1,000,000.00
1,067,265.57
(67,265.57)
0.00
0.00
0.00
1,000,000.00
1,067,265.57
(67,265.57)
13,382,173.00
13,754,224.19
(372,051.19)
0.00
75,393.22
(75,393.22)
0.00
(5.35)
5.35
0.00
0.00
0.00
4,099,819.00
4,142,038.56
(42,219.56)
17,481,992.00
17,971,650.62
(489,658.62)
50,000.00
30,915.01
19,084.99
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
50,000.00
30,915.01
19,084.99
9
4
ATTACHMENT 2
LA QUINTA REDEVELOPMENT AGENCY
07/01/2004.05/31/05
REMAINING
EXPENDITURE SUMMARY
BUDGET
EXPENDITURES
ENCUMBERED
BUDGET
PROJECT AREA NO. 2:
LOW/MODERATE BOND FUND
0.00
0.00
0.00
0.00
2nd TRUST DEEDS
LAND
0.00
0.00
0.00
0.00
BOND ISSUANCE COSTS
0.00
0.00
0.00
0.00
TRANSFERS OUT
0.00
0.00
0.00
0.00
TOTAL LOWIMOD BOND
0.00
0.00
0.00
0.00
LOW/MODERATE TAX FUND:
PERSONNEL
2,900.00
2,999.58
0.00
(99.58)
SERVICES
192,088.00
354,827.43
0.00
(162,739.43)
2ND TRUST DEEDS
500,000.00
0.00
0.00
500,000.00
2ND TRUST DEEDS FROM CENTERPOINTE
2,520,000.00
0.00
0.00
2,520,000.00
48TH AND ADAMS - FROM CENTERPOINTE
1,423,203.00
7,058.20
0.00
1,416,144.80
WASH/MILES PROJECT
0.00
5,317.50
0.00
(5,317.50)
VISTA DUNES MOBILE HOME PARK
0.00
281,575.62
0.00
(281,575.62)
LOW MOD HOUSING PROJECT/47TH/ADAMS PROJ
776,239.00
44,351.00
0.00
731,888.00
48TH/ADAMS PLANNING
150,000.00
0.00
0.00
150,000.00
FORECLOSURE ACQUISITION
150,000.00
150,000.00
0.00
0.00
REIMBURSEMENT TO GEN FUND
333,272.00
305,499.33
0.00
27,772.67
TRANSFERS OUT
7,350,044.00
7 392 263.56
0.00
(42,219.56)
TOTAL LOW/MOD TAX
13,397,746.00
8,543,892.22
0.00
4,853,853.78
2004 LOWIMODERATE BOND FUND
2nd TRUST DEEDS
0.00
0.00
0.00
0.00
LAND
0.00
0.00
0.00
0.00
BOND ISSUANCE COSTS
0.00
0.00
0.00
0.00
TRANSFERS OUT
1,920,965.00
442,564.26
0.00
1,478,400.74
TOTAL LOW/MOD BOND
1,920,965.00
442,564.26
0.00
1,478,400.74
DEBT SERVICE FUND:
SERVICES
179,013.00
179,518.60
0.00
(605.60)
BOND PRINCIPAL
95,000.00
95,000.00
0.00
0.00
BOND INTEREST
323,264.00
323,263.75
0.00
0.25
INTEREST CITY ADVANCE
1,459,580.00
1,337,941.00
0.00
121,639.00
INTEREST - ERAF UMOD LOAN
0.00
0.00
0.00
0.00
PASS THROUGH PAYMENTS
11,394,169.00
8,581,537.22
0.00
2,812,631.78
TRANSFERS OUT
994,948.00
994,948.00
0.00
0.00
TOTAL DEBT SERVICE
14,445,974.00
11,512,208.57
0.00
2,933,765.43
CAPITAL IMPROVEMENT FUND:
PERSONNEL
2,900.00
3,327.70
0.00
(427.70)
SERVICES
117,820.00
97,815.25
0.00
20,004.75
ADVERTISING -ECONOMIC DEV
250.00
0.00
0.00
250.00
ECONOMIC DEVELOPMENT ACTIVITY
40,000.00
34,581.57
0.00
5,418.43
REIMBURSEMENT TO GEN FUND
41,443.00
37,991.18
0.00
3,451.82
TRANSFERS OUT
1,826,079.00
1,341,046.08
0.00
485,032.92
TOTAL CAPITAL IMPROVEMENT
2,028,492.06
1,514,761.78
0.00
513,730.22
10
ATTACHMENT 2
0
O
LO
00
O
V
N
lf) <0 O
O ti- M 0 00 0 O 00 0 0 0 0 0 0 0C
Lj
L+
Oc O 0
O
O
E
I- d O ch
NOON
co
69
a
d
3
>
(0` N 0 0 O
00� d,N O00 COO CS OOOOO4
r-
`
c pNj Q? ti O L
O
NOON ch
00
j
O O O O LO
(0
O
0000 (00) O
O O 0)D O 0 0 0 g O O O O O O O
p
LO
0 0 0) 0) O � d'
0.
N - - N M
�
O O O 0CD CD CD >. >. >. >+ >. >+ A T T >, T
y O O O N o 0 0 0 0 no Coco 0
N N M M N N N N N N N N N N N
a m m � Z Z Z Z Z Z Z Z Z Z Z Z
LL LL LL LL LL LL LL LL LL LL LL U-
fl„ 6 f0 f0 f0 (6 Wuf9 f6 Wuf0 f0 70
C7 7 7 7 7 N N N N� 0 0 0 O O N N
E
(n to (A N f0 f6 (0 f0 ' '6 '6 'm c 'm 'm "m 'm iY
N N N N f0 (9 f9 f6 f0 f6 f0 f6 (6 f6 f9 f0
> H H F- I-
C >+ >+ >.
C C C C C C C C C C C C
O O O O O O O O O O O O
E
E
y
N
7
U
�
C
O
O
�
a
d
O
O
C
a
co
a
N
0
J=O
4)
d
O � N
(30-)
�
U
U U
p � U
U 5 N U > > > >
d N C d U U U U
(L U`- a@Da afomF-UUO U U
00
0) 0)
> >N
Q'y'y Q(At/)QQQQQ��QQ
0 7 7 7 7 0 0
woo w O owwof O��
N== M22MNN'IT LOww
0lqt't 0It IT 000000)00)0)
O O O O O O O O O O O 0 0) 0) 0)
N O O N O O N N N N N
N N i N N
Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y
C C C C C C C C C C C C C C C
f0 m W m m m w m (0 (0 f0 f0 (p f0 f0
Comm mmmmmmmmmmmm
COUGO UujUC6(6 (6000
O
M
co
co
CO
IT
N
O
O
N
ti
N
(a
C.1
ceityl 4 aCPQ�rw
COUNCIL/RDA MEETING DATE: July 19, 2005
ITEM TITLE: Approval of the Plans, Specifications,
and Engineer's Estimate for SilverRock Resort
Monument Signs
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: JV!
STUDY SESSION:
PUBLIC HEARING:
Approve the plans, specifications, and engineer's estimate (PS&E) and authorize
staff to advertise for bid the SilverRock Resort Monument Signs, Project No. 2002-
07K.
FISCAL IMPLICATIONS:
On February 15, 2005, the Agency appropriated $1 .2 million from Redevelopment
Project Area No. 1 reserves and $400,000 from Project Area No. 2 reserves.
Included within this allocation was an additional $150,000 for signage and lighting
at the entrance to SilverRock Resort bringing the total allocation to $300,000.
The engineer has estimated the cost of the entry signage and lighting to be
$265,000.
Based on this estimate, the anticipated costs for this project are as follows:
Construction $265,000
Design $ 25,000
Administration $ 5,000
Contingency $ 27,000
Total $322,000
Based on this preliminary budget, there may be additional funding required to
construct this project. An additional allocation recommendation will be brought
forward for the Agency's consideration at the time of award of contract.
�w
BACKGROUND AND OVERVIEW:
On October 5, 2004, the Agency approved a $20,000 contract amendment to
GMA International to design the monument signs for SilverRock Resort.
On February 15, 2005, staff presented additional signage and lighting for the
entrance to SilverRock Resort. GMA International has prepared a set of plans and
specifications for the entry signage at Avenue 52/Cetrino and Avenue 52/Jefferson
Street. These improvements consist of a masonry block construction with lettering
and detailing as approved by the Agency on November 16, 2004. These
improvements will complete the perimeter of SilverRock Resort along Avenue 52
and at the corner of Jefferson Street adjacent to the roundabout.
On March 3, 2005, the Agency approved a $5,000 contract amendment for
structural design of the monument signs by GMA's structural engineer
subconsultant.
The PS&E are now complete and available for review within the Public
Works/Engineering Department. Contingent upon Agency approval of the PS&E,
the following is the project schedule:
Approval of PS&E July 19, 2005
Bid Period July 20, 2005 through August 26, 2005
Construction Award September 27, 2005
Construction Period September through November 2005
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency include:
1. Approve the plans, specifications, and engineer's estimate (PS&E) and
authorize staff to advertise for bid the SilverRock Resort Monument Signs,
Project No. 2002 —07K; or
2. Do not Approve the plans, specifications, and engineer's estimate (PS&E)
and do not authorize staff to advertise for bid the SilverRock Resort
Monument Signs, Project No. 2002 —07K; or
3. Provide staff with alternative direction.
13
2
Respectfully submitted,
T' rothy R. as E U6, P. E.
Public Works Director/City Engineer
Approved for submission by:
Thomas P. Genovese, Executive Director
1_ 4
COUNCIL/RDA MEETING DATE: July 19, 2005
ITEM TITLE: Approval of Amendment No. 6 to The
Keith Companies for Drainage Improvement Design at
SilverRock Resort
RECOMMENDATION:
P
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: S
STUDY SESSION:
PUBLIC HEARING:
Approve Amendment No. 6 to the Professional Services Agreement with The Keith
Companies (TKC) in the amount of $43,000 for design of drainage improvements at
SilverRock Resort, appropriate $43,000 from Project Area No. 1 reserves, and
authorize the Executive Director to execute the amendment.
FISCAL IMPLICATIONS:
On June 7, 2005, the Agency reviewed the mountain storm runoff drainage
improvement necessary to better protect the golf course from future rainfall events.
At that time, the cost to design and construct the improvements was estimated to be
approximately $250,000.
Staff recommends appropriating the design cost of $43,000 from RDA Project Area
No. 1 reserves.
BACKGROUND AND OVERVIEW:
On September 16, 2003, the Agency approved a Professional Services Agreement
with TKC to provide Civil Engineering Services for the SilverRock Resort project.
On March 2, 2004, the Agency approved Amendment No. 1 in the amount of $30,000
for additional survey work not included in TKC's original scope of work.
On May 18, 2004, the Agency approved Amendment No. 2 in the amount of
$178,079 to provide construction staking and water/sewer design.
On August 17, 2004, the Agency approved Amendment No. 3 in the amount of
$15,000 for additional electrical engineering services, partly for changes requested by
the Hope Classic tournament.
� 5J
On December 21, 2004, the Agency approved Amendment No. 4 in the amount of
$42,900 for survey and staking related to perimeter landscaping improvements as well
as survey work necessary to provide an easement to the BOR for their relocated vault
and waterline adjacent to Village Lake No. 3.
On March 3, 2005, the Agency approved Amendment No. 5 in an amount not -to -
exceed $52,300 to provide civil engineering design of a bypass storm drain within
Avenue 52 and to provide an aerial survey of SilverRock Resort.
On June 7, 2005, staff discussed with the Agency additional improvements required
for SilverRock Resort including mountain storm runoff drainage improvements to better
protect the first golf course from erosion during major rainfall. PACE subsequently has
preliminarily designed improvements to address the runoff to handle the runoff more
adequately. This amendment is to pay for the completion of the final design of those
improvements to include plans, specifications, and engineer's estimate.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency include:
1. Approve Amendment No. 6 to the Professional Services Agreement with The
Keith Companies (TKC) in the amount of $43,000 for design of drainage
improvements at SilverRock Resort, appropriate $43,000 from Project Area No.
1 reserves, and authorize the Executive Director to execute the amendment; or
2. Do not approve Amendment No. 6 to the Professional Services Agreement with
The Keith Companies (TKC) in the amount of $43,000 for design of drainage
improvements at SilverRock Resort, appropriate $43,000 from Project Area No.
1 reserves, and do not authorize the Executive Director to execute the
amendment; or
3. Provide staff with alternative direction.
Respectfully submitted,
T' othy ona n, P.E.
ublic Wor s Director/City Engineer
16
2
Approved for submission by:
1, X6
Thomas P. Genovese, Executive Director
Attachment: 1. The Keith Companies' Proposal
17
3
cewivl 4 SepQumrw
PROFESSIONAL SERVICES AGREEMENT
AMENDMENT NO. 6
PROJECT: SilverRock Resort Civil Engineering Services
CONSULTANT: The Keith Companies
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
Provide civil engineering design of mountain drainage improvements at SilverRock Resort to include plans,
specifications, and engineer's estimate for conveying stormwater from the toe of slope safely to the golf course
drainage system.
Previous Contract Amount
$444,182.00
Amendment No. 1
$30,000.00
Amendment No. 2
$178,079.00
Amendment No. 3
$15,000.00
Amendment No. 4
$42,900.00
Amendment No. 5
$52,300.00
Add this Amendment No. 6
$43,000.00
Revised Contract Total
1 $805,461.00
Submitted By: Date:
Approved By: Date:
**************************************************************************************************
We, the undersigned Consultant, havegiven careful consideration to the changeproposed 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.
Accepted By:
Consultant:
Title:
Date:
PSA96041.doc
IS 4
ATTACHMENT 1
Exhibit "A"
SilverRock Ranch
Proposal for Engineering Services
As noted during the May 2005 field investigation of the SilverRock golf course, off -site
tributary storm water flows will need to be properly routed to the downstream golf course
impoundment areas to ensure that frequent rainfall events, such as the ones experienced
earlier this year, do not cause extensive damage to the golf course. As a secondary
requirement, irrigation and nuisance water flows will be directed by others to ensure all
areas of the golf course drain as originally intended and to reduce the chances of
localized ponding on fairways and waste areas. Per the recommendations of Pacific
Advanced Civil Engineering (PACE), in their site plan provided to TKC on 6/21/05,
TKC will provide revised grading plans for the areas specified in said site plan.
There exists an approved rough grading plan but it is apparent that the site has not been
constructed per plan in all areas. Since deviations from the approved rough grading
design have been noted and, generally, are expected in golf course construction, it will be
necessary to generate new as-built/grading plans based on the latest aerial topography of
the site. New grading design will show new earthen and cobble lined swales, locations
recommended by PACE, as well as areas to be re -graded and/or constructed to include
drywells, additional storm piping and electric pump systems.
This contract addendum will also cover additional meetings, project management and
coordination with PACE, SilverRock golf course staff, the City of La Quinta and other
consultants.
10
5
Exhibit "B"
SilverRock Ranch
Proposal for Engineering Services
Scope of Work:
1. Provide Grading/Storm Drain plans of specified off -site areas per the
recommendations of PACE and onsite areas per TKC design. TKC to
include PACE design of drainage structures on said
plans........................................................................................$30,000.00
2. Prepare Specifications.............................................................$4,500.00
3. Prepare Cost Estimate.............................................................$3,500.00
4. Project Management...............................................................$5,000.00
This scope of work excludes analysis of off -site on -site hydrology and hydraulics,
irrigation plans, electrical design and all costs for additional geotechnical studies that
may be necessary to complete said grading plans and storm drain system.
XAProposals\5908 City of La Quinta-Silver Rock Drainage\Exhibit A and B.doc
' rt
T4bt aF 4Qumrw
AGENDA CATEGORY:
COUNCIL/RDA MEETING DATE: July 19, 2005 BUSINESS SESSION:
ITEM TITLE: Adoption of an Emergency Contract CONSENT CALENDAR:
te-
Resolution Authorizing Staff to Negotiate a STUDY SESSION:
Construction Contract for the SilverRock Resort
Mountain Drainage Improvements, Project No. 2002- PUBLIC HEARING:
07L
RECOMMENDATION:
Adopt an emergency contract resolution authorizing staff to negotiate a
construction contract, authorize the Executive Director to enter into an agreement
for constructing the SilverRock Resort Mountain Drainage Improvements, Project
No. 2002-07L, and appropriate $357,000 from Project Area No. 1 reserves.
FISCAL IMPLICATIONS:
On June 7, 2005, the Agency approved the mountain storm runoff and drainage
improvements to be designed by PACE and The Keith Companies to remedy future
erosion problems from mountain storm water runoff.
The cost to design and construct these improvements was estimated at that time to
be $250,000. Since these improvements have been designed, a more accurate
estimate is now possible. The current engineer's estimate for these drainage
improvements is $300,000, with a $30,000 contingency.
Based on this estimate, the anticipated costs for this project are as follows:
Construction
$300,000
Design
$ 83,2101
Administration
$ 7,000
Survey/Testing
$ 20,000
Contingency
30,000
Total
$440,210
An appropriation of $357,000 is necessary to cover the anticipated cost of this
work.
' A portion of this design cost is being approved under Consent Calendar Item No. 11
BACKGROUND AND OVERVIEW:
On June 7, 2005, the Agency discussed additional improvements for SilverRock
Resort, which included the mountain storm runoff drainage improvements. These
improvements will better protect golf course No. 1 from mountain storm runoff that
caused significant erosion during the past winter. Now that the mountain runoff
areas have been identified, improvements will be constructed so that mountain
runoff will have minimal impacts to the golf course in the future.
These improvements are a direct result of storm damage to the course from a
declared emergency and must be constructed prior to the over seeding of the golf
course in early October. Consequently, the City will not be able to construct these
improvements in time via the normal bidding process. Therefore, staff will
negotiate this construction contract with the contractor currently on site for the
native bunker work restoration, or another qualified landscape contractor. An
emergency contract resolution must be adopted by a four -fifths vote in order to
authorize these negotiations.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency include:
1. Adopt an emergency contract resolution authorizing staff to negotiate a
construction contract, authorize the Executive Director to enter into an
agreement for constructing the SilverRock Resort Mountain Drainage
Improvements, Project No. 2002-07L, and appropriate $357,000 from
Project Area No. 1 reserves; or
2. Do not adopt an emergency contract resolution authorizing staff to negotiate
a construction contract, do not authorize the Executive Director to enter into
an agreement for constructing the SilverRock Resort Mountain Drainage
Improvements, Project No. 2002-07L, and do not appropriate $357,000
from Project Area No. 1 reserves; or
3. Provide staff with alternative direction.
Respectfully submitted,
4mothy R.tJj nas , P.E.
Public Works Director/City Engineer
Approved for submission
Thomas P. Genovese, Executive Director
2
RESOLUTION NO. RA 2005-
A RESOLUTION OF THE LA QUINTA REDEVELOPMENT
AGENCY OF THE CITY OF LA QUINTA, CALIFORNIA,
AUTHORIZING STAFF TO NEGOTIATE AN EMERGENCY
CONSTRUCTION CONTRACT FOR THE SILVERROCK RESORT
MOUNTAIN DRAINAGE IMPROVEMENTS IN ACCORDANCE
WITH SECTION 22050 OF THE PUBLIC CONTRACT CODE
WHEREAS, the California Public Contract Code, Part 3, Chapter 1,
Article 4, Section 20168 and Chapter 2.5, Section 22050 authorizes the
expenditure of public money, under emergency conditions, in order to
safeguard life, health and property and to repair or replace a public facility,
take any directly related and immediate action required, and procure the
necessary equipment, services, and supplies without giving notice for bids to
let contracts; and
WHEREAS, the Federal Emergency Management Agency pursuant to
Major Disaster Declaration No. 1585 declared an emergency in Riverside
County due to the severe storms, flooding, landslides, and mud and debris
flows which occurred during Winter Storms of 2005, the effects of which
are continuing; and
WHEREAS, the La Quinta Redevelopment Agency finds and
determines that the work required to retain the mountain drainage
improvements necessitated by the Winter Storms of 2005, which resulted in
a declared state of emergency, warrant procurement of the necessary
equipment, services, and supplies for the purpose of repairing SilverRock
Resort Golf Course No. 1, Mountain Drainage Facilities, is within the scope
of FEMA Declaration No. 1585 and is emergency work; and
WHEREAS, the La Quinta Redevelopment Agency finds and
determines, based on substantial evidence presented to the Agency by City
staff, that the limited time available to acquire the necessary materials to
perform the emergency repairs will not permit the typical delay which results
from a competitive solicitation for bids, and that this action is necessary to
respond to the emergency.
NOW, THEREFORE, BE IT RESOLVED, by the La Quinta
Redevelopment Agency of the City of La Quinta, as follows:
1. The above Recitals are true and correct and are incorporated
herein.
23
3
Resolution RA-
SilverRock Resort Mountain Drainage Improvements
Adopted: July 19, 2005
Page 2
2. The La Quinta Redevelopment Agency, pursuant to Public
Contract Code Section 22050(b)(1), hereby delegates to the Executive
Director the authority to order the procurement of equipment, services and
supplies, up to a maximum amount of $330,000, to respond to this
emergency without giving notice for bids to let contracts as defined in Part
3, Chapter 1, Article 4 of the Public Contract Code.
3. The Executive Director is hereby directed to report back to the Agency
at its next regularly scheduled meeting as to the status of these negotiations.
PASSED, APPROVED and ADOPTED at a regular meeting of the La
Quinta Redevelopment Agency held on this 19th day of July 2005, by the
following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
LEE M. OSBORNE, Agency Chair
La Quinta Redevelopment Agency
ATTEST:
JUNE S. GREEK, CMC, Agency Secretary
La Quinta Redevelopment Agency
(Agency Seal)
24
al
Resolution RA-
SilverRock Resort Mountain Drainage Improvements
Adopted: July 19, 2005
Page 3
APPROVED AS TO FORM:
M. KATHERINE JENSON, Agency Counsel
La Quinta Redevelopment Agency
5
Tjhf ot e(A a"
COUNCIL/RDA MEETING DATE: July 19, 2005
ITEM TITLE: Approval of an Exclusive Negotiation
Agreement by and Between the La Quinta
Redevelopment Agency and Coachella Valley Housing
Coalition
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: 7-
STUDY SESSION:
PUBLIC HEARING:
Approve an Exclusive Negotiation Agreement ("Agreement") between the La Quinta
Redevelopment Agency ("Agency") and Coachella Valley Housing Coalition
("Developer") for initiating negotiations concerning the design and development of
an affordable housing project to be developed at the northwest corner of Dune
Palms Road and Avenue 48 and authorize the Executive Director to execute the
required documents.
FISCAL IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
In March, 2005, the Agency directed staff to circulate a Request for Qualifications
to affordable housing developers and operators who had either expressed interest
in development opportunities in La Quinta or were known to have had success in
such projects elsewhere. Qualifications Statements were received on April 18,
2005. A staff selection committee interviewed the four most qualified teams on
May 13, 2005. On June 7, 2005, the Agency Board directed staff to initiate
negotiations with the Developer, an experienced operator of affordable housing
projects, regarding the property located at Dune Palms Road and Avenue 48.
The attached Agreement (Attachment 1) provides that the Agency will negotiate
exclusively with the Developer for a 180-day period to define the affordable
housing project ("Project"), and prepare a Disposition and Development Agreement
("DDA") that outlines the terms and conditions on which the Agency would convey
the property to the Developer and on which the Developer would construct and
operate the development. Business points included in the Agreement include the
following:
The Agreement establishes a 180-day exclusive negotiation period as
follows:
➢ During the first 120 days, the Agency and Developer will undertake
schematic design planning activities that define the conceptual elements
including the type, number and size of dwelling units, the Project's
relationship with surrounding uses and projects, infrastructure and State
and local regulatory requirement costs. All planning activities will be
managed by the Developer, who will also pay all costs associated with
retaining the required professional services.
➢ During the second 60 days, the Agency and the Developer will negotiate
the business points and draft a DDA.
➢ The 180-day exclusive negotiation period may be extended if additional
time is required by mutual agreement of the parties.
• Unlike other exclusive negotiation agreements that involve only market -rate
residential or commercial development, the Developer will not make an initial
deposit to fund Agency legal counsel and other consultant costs required to
review/generate materials, negotiate the transaction business points and
required property disposition and development documents, and prepare the
DDA and all related reports and analyses. Rather, the Agency will be
responsible for any such costs.
The Developer's Statement of Qualifications (Attachment 2) provides further
information regarding the capability of the team.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency Board include:
1. Approve the Agreement between the Agency and Developer for initiating
negotiations concerning the design and development of an affordable
housing development to be developed at the northwest corner of Dune
Palms Road and Avenue 48 and authorize the Executive Director to execute
the required documents; or
2. Do not approve the Agreement between the Agency and Developer for
initiating negotiations concerning the design and development of the design
and development of an affordable housing development to be developed at
the northwest corner of Dune Palms Road and Avenue 48 and do not
authorize the Executive Director to execute the required documents; or
3. Provide staff with alternative direction.
Respectfully submitted,
- ZeO444M
Dougl s R. ns
Community Development Director
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachments: 1. Exclusive Negotiating Agreement
2. Statement of Qualifications
ATTACHMENT 1
EXCLUSIVE NEGOTIATION AGREEMENT
Coachella Valley Housing Coalition (CVHC)
This EXCLUSIVE NEGOTIATION AGREEMENT ("Agreement") is entered into this
day of July, 2005, by and between the LA QUINTA REDEVELOPMENT AGENCY,
a public body, corporate and politic ("Agency"), and COACHELLA VALLEY HOUSING
COALITION, a California non-profit public benefit corporation ("Developer"), on the terms and
provisions set forth below.
RECITALS
WHEREAS, on May 16, 1989, the City Council of the City of La Quinta approved and
adopted the Redevelopment Plan for Project No. 2 by Ordinance No. 189 ("Redevelopment
Plan") establishing the La Quinta Redevelopment Project Area No. 2 ("Project Area"); and
WHEREAS, Agency owns certain real property within the Project Area, as further
described herein ("Site"); and
WHEREAS, Developer is interested in purchasing the Site from Agency and developing
thereon a multi -family affordable housing development with dwellings units rented, at affordable
housing costs, to very low, low and moderate income family households ("Project"); and
WHEREAS, Agency and Developer desire to enter into this Agreement to initiate
exclusive negotiations for up to one hundred and eighty (180) days for the purposes of
(i) undertaking due diligence activities regarding the Project; (ii) facilitating a preliminary design
of the Project; (iii) establishing preliminary Project development responsibilities (including a
preliminary Project development schedule and financial parameters; (iv) determining if
additional environmental studies, if any, are required for Project entitlements; (v) setting the Site
882/015610-0047
^9
618860.03 a07/13/05
real property acquisition terms; and (vi) negotiating and drafting a disposition and development
agreement ("DDA").
NOW, THEREFORE, in consideration of the recitals and mutual covenants and
conditions contained herein, the parties hereto agree as follows:
I. SITE
The Site constitutes the real property that is the subject of this Agreement. The Site is
approximately 15 acres in size and is located northwest of the intersection of Avenue 48 and
Dunes Palms Road in Project Area No. 2. The Site is depicted on Exhibit "1", which is attached
hereto and incorporated herein by this reference.
II. NEGOTIATION PERIOD
A. Negotiation Period
The negotiation period shall commence upon the date Agency approves and executes this
Agreement, which commencement date shall be inserted into the preamble to this Agreement
(the "Commencement Date"), and shall end on the date that is one hundred and eighty (180) days
following the Commencement Date (the "End Date"), unless earlier terminated or extended
pursuant to the terms of this Agreement ("Negotiation Period"). This Agreement shall
automatically terminate as of the End Date unless extended pursuant to the terms of the
Agreement.
B. Due Diligence/Site Plan Development
During the first one hundred and twenty (120) days of the Negotiation Period (the "First
Due Diligence Period"), the parties agree to negotiate in good faith to conduct due diligence
activities and to formulate the schematic design plan for development of the Project (the "Site
882/015610-0047
618860.03 a07/13/05
Plan"). The Site Plan shall include and delineate the following conceptual elements on a
preliminary design basis:
1. The type, scope and size of the overall Project;
2. The type, number and size of the dwelling units;
3. The building configuration, ingress/egress points, on- and off -site parking
areas, open space areas, and building elevations;
4. The Project's relationships with the surrounding uses;
5. Required on- and off -site infrastructure improvements; and
6. Project, infrastructure, and state and local regulatory requirement costs;
7. The number of units that will be affordable to very low and low income
family households.
During the First Due Diligence Period, Agency and Developer, as applicable, shall
conduct their respective due diligence activities, including but not limited to the following:
1. Developer shall evaluate the Site and surrounding areas and prepare site
plan options, a preliminary development program, and building elevations
for Agency consideration;
2. Developer shall prepare and submit a Project development schedule for
Agency consideration;
3. Developer shall prepare and submit Project development and operations
pro formas for the preferred Site Plan that identify estimated indirect and
direct Project development costs, anticipated affordable housing rent
levels, estimated Project revenue based upon the anticipated affordable
882/015610-0047
618860.03 a07/13/05
housing rent levels, and estimated Project operating expenses including the
anticipated Site acquisition cost;
4. Developer shall prepare and submit Project development financing options
and provide projected sources of equity and financing for the Project;
5. Developer shall conduct a workshop that is advertised and open to the
public to solicit community and Agency staff input on Project design
configurations and parameters, and to review Developer generated design
concepts;
6. Agency shall provide Developer will all reports, plans and information
Agency or the City of La Quinta ("City") may have for the Site, including
a preliminary title report (the "Preliminary Report"), however, neither
Agency nor City will guarantee the accuracy of said documents;
7. Developer shall review the Preliminary Report;
8. Developer shall conduct other due diligence activities as necessary to
determine whether or not the Site can accommodate the Project. In
conjunction therewith, Developer and its consultants and agents shall have
the right to enter upon the Site to conduct tests, studies, and investigations
pursuant to an Early Entry Agreement, the form of which is attached
hereto and incorporated herein as Exhibit ' 2".
If, at the end of the First Due Diligence Period, Agency Board has not accepted the Site
Plan and Developer's financing proposal for the Project, this Agreement shall automatically
terminate without notice unless the time for Developer's performance is extended by Agency
Executive Director, in his or her sole and absolute discretion, pursuant to Section VMQ of this
882/015610-0047
618860.03 a07/13/05
Agreement, or the parties hereto mutually agree, each in their sole and absolute discretion, to
extend the First Due Diligence Period and the Negotiation Period.
C. DDA/Environmental ReviewTntitlements
If the Site Plan and Developer's proposed financing are accepted by the Agency Board
prior to the close of the First Due Diligence Period, Agency agrees to then negotiate exclusively
with Developer for the remaining sixty (60) days of the Negotiation Period (the "Second Due
Diligence Period") to negotiate, prepare, and attempt to finalize the DDA; and
If, at the close of the Negotiation Period, Developer has not executed and submitted a
DDA to Agency, this Agreement shall automatically terminate without notice unless the time for
Developer's performance is extended by Agency Executive Director, in his or her sole and
absolute discretion, pursuant to Section VIIIQ of this Agreement, or the parties hereto mutually
agree, each in their sole and absolute discretion, to extend the First Due Diligence Period and the
Negotiation Period.
D. Submittal of DDA to Agency Board and City Council
Upon submittal of the executed DDA by the Developer to Agency, and provided that all
environmental and entitlement applications necessary for the Project have been accepted and
processed by the City for consideration by the City Council, the Negotiation Period shall be
extended for an additional sixty (60) days ("Third Due Diligence Period") to enable Agency and
the City to notice and conduct a public hearing pursuant to Section 33433 of the California
Health and Safety Code on the DDA.
E. Exclusivity of Negotiations
Agency agrees that during the Negotiation Period, Agency shall not negotiate or enter into
an agreement with any other person or entity regarding development of the Site. During the
882/015610-0047 ? 3
618860.03 a07/13/05 v
Negotiation Period, Developer agrees that it will commit the financial and time resources
required to conduct and complete the activities outlined in this Agreement.
The obligation to negotiate in good faith requires the respective parties to communicate
with each other regarding issues for which agreement has not been reached, and in such
communication to follow reasonable negotiation procedures, including meetings, telephone
conversations, and correspondence. The parties understand that final accord on all issues may
not be reached. It is also understood that (i) neither party is under any obligation to reach
agreement on the DDA, and (ii) Agency reserves the right to approve or reject a DDA, the
Project, or any disposition of the Site, as set forth in this Agreement.
F. Agency and Developer Obligations
During the Negotiation Period Agency and Developer obligations shall include, but not
be limited to, the following:
1. Agency Obligations
a. Provide the Developer with documents in Agency's possession that
would assist the Developer with the due diligence activities
described in this Agreement; and
b. Upon acceptance of the Site Plan and verification of Developer
financial ability to acquire the Site and develop the Project, prepare
and attempt to finalize a DDA; and
C. Provide the Developer timely and reasonable responses from the
Agency staff, and use reasonable efforts to cause City staff and
associated City Departments reviewing the Developers Site Plan to
provide timely and reasonable responses.
882/015610-0047
618860.03 a07/13/05
d. Provide the Developer feedback and clear communication of
Agency expectations regarding any and all documentation related
to the Site Plan submitted by the Developer.
2. Developer Obligations
a. Use its best efforts to investigate the Site;
b. Timely submit preliminary drafts of the following items: site
plans, elevations, schematic drawings, detailed Project
development costs, Project pro formas summarizing the total
Project and respective returns and other documents necessary for
Agency and City review; and
C. Timely submit projected sources of equity and capital to acquire
the Site and develop and operate the Project.
III. COSTS AND EXPENSES
Each party shall be responsible for its own costs and expenses in connection with any
activities and negotiations undertaken in connection with the performance of its obligations
under this Agreement.
882/015610-0047
618860.03 a07/13/05
IV. RETENTION OF DISCRETION TO APPROVE THE PROJECT AND DDA,• NO PRE -
COMMITMENT
It is anticipated that the Project and the DDA will be presented to the Agency Board for
approval and to the City Council for its consent thereto. The parties understand that Agency is
reserving the right to exercise its discretion as to all matters which it is, by law, entitled or
required to exercise its discretion, including, but not limited to the following:
A. Approval by Agency of the Final Project as Contained in the DDA
The parties understand that Agency has the complete and unfettered discretion to reject
the DDA without explanation or cause. The risk of loss of all negotiation, processing, design and
developmental costs incurred by Developer prior to DDA approval and execution by Agency
shall be absorbed entirely by Developer unless expressly assumed, by the terms of this
Agreement, by Agency.
B. Review and Approval by Agency of all Discretionary Findings and Conclusions
The duty of Agency to sell the Site shall be conditioned upon the successful review and
approval of all necessary findings and conclusions which the Agency Board is required to make,
including all necessary findings and determinations required under the California Environmental
Quality Act (Public Resources Code Section 21,000 et. seq.) ("CEQA"), state and local land use
provisions, and the California Community Redevelopment Law. As to any matter which Agency
may be required to exercise its unfettered discretion in advancing the Project to completion,
nothing herein, no to be contained in the DDA shall obligate Agency to exercise its discretion in
any particular manner, and any exercise of discretion reserved hereunder or required by law shall
not be deemed to constitute a breach of Agency duties under this Agreement.
36
882/015610-0047
618860.03 a07/13/05
C. No Pre -Commitment by Agency
By its execution of this Agreement, Agency is not committing itself or agreeing to
undertake any activity requiring the subsequent exercise of discretion by Agency, or any
department thereof including, but not limited to, the approval and execution of a DDA; the
approval of any development proposal or land use regulation governing the Site; the provision of
financial assistance for the development of any public or private interest in real property; or any
other such act or approval.
This Agreement does not constitute a disposition of property or exercise of control over
property by Agency and does not require a public hearing. Agency execution of this Agreement
is merely an agreement to enter into a period of exclusive negotiations according to the terms
hereof, reserving final discretion and approval by Agency as to any proposed DDA and all
proceedings and decisions in connection therewith.
D. City Not a Party
The City of La Quinta is not a party to this Agreement, and nothing herein constitutes or
shall be construed or deemed as any agreement by City to approve or issue any permit or take any
discretionary action with respect to the Project.
V. THE DEVELOPER
A. Developer Experience
As a condition precedent to Agency's execution of this Agreement, Developer shall have
submitted to Agency a detailed description of the development experience of Developer and its
principals, associates, employees, partners, and joint ventures.
37
882/015610-0047
618860.03 a07/13/05
B. Offices of Developer
The principal offices of Developer are located at:
Coachella Valley Housing Coalition
45-701 Monroe Street, Suite G, Plaza 1
Indio, California 92201
C. Project Manager
The Project Manager for Developer will be John F. Mealey, Executive Director and John
Aguilar, Multi -Family Director. Other employees, consultants, or representatives who are
proposed to be directly involved in the Project will be determined by Developer and submitted to
Agency upon any such determination.
D. Full Disclosure
The Developer shall maintain full disclosure to Agency of its principals, officers,
stockholders, partners, joint ventures, and all other pertinent information concerning the
Developer.
E. Assi nn ent
Developer may not assign this Agreement without the prior written approval of Agency
Executive Director, which approval may be given or withheld in Agency Executive Director's
sole and absolute discretion; provided, however, that notwithstanding the foregoing, Agency
agrees to approve an assignment by Developer of its rights under this Agreement to a
corporation, trust, or partnership of which Developer owns the majority beneficial interest and
operational control. Any assignment Agency has approved shall not be effective unless and until
Developer submits a signed assignment and assumption agreement in a form and with content
approved by Agency legal counsel.
882/015610-0047
618860.03 a07/13/05
VI. ENVIRONMENTAL REQUIREMENTS
Agency and Developer acknowledge and agree that all environmental documentation
required pursuant to CEQA and local regulations for development of the Project on the Site has
been prepared. In the event additional environmental documentation becomes necessary,
Developer shall assist the Agency and City with the preparation of any such additional
documentation, for certification by the City; provided, however, that Agency and the City shall
not reimburse Developer for costs incurred by Developer in assisting Agency and City to prepare
such additional documentation.
VII. REAL ESTATE COMMISSIONS
Agency has not engaged a broker, agent, or finder in connection with this transaction. As
such, Agency shall not be responsible for any claims by a broker, agent or finder, and Developer
agrees to defend, indemnify, and protect and hold Agency harmless from any such claims.
VIII. GENERAL PROVISIONS
A. Legal Actions,• Governing Law; Service of Process
In addition to any other rights or remedies, either party may institute legal action to cure,
correct or remedy any default, to recover actual damages for any default, or to obtain any other
remedy consistent with the purposes of this Agreement; provided, however, that Paragraph C of
this Section VIII of this Agreement shall supersede any conflicting provisions of this
Paragraph A. Such legal actions must be instituted and maintained in the Superior Court of the
County of Riverside, State of California, or in any other appropriate court in that county. The
laws of the State of California shall govern the interpretation and enforcement of this Agreement.
In the event that any legal action is commenced by Developer against Agency, service of process
on Agency shall be made by personal service upon the Executive Director or Secretary of the
v
882/015610-0047
618860.03 a07/13/05
Agency, or in such other manner as may be provided by law. In the event that any legal action is
commenced by Agency against Developer, service of process on Developer shall be made by
personal service upon Developer or in such other manner as may be provided by law, and shall
be valid whether made within or without the State of California.
B. Rights and Remedies are Cumulative
Except as otherwise expressly stated in this Agreement, the rights and remedies of the
parties are cumulative, and the exercise by either party of one or more of its rights or remedies
shall not preclude the exercise by it, at the same or different times, of any other rights or
remedies for the same default or any other default by the other party.
C. Specific Performance as Developer's Exclusive Remedy
Subject to Developer's right to terminate this Agreement in accordance with the terms of
Paragraph E of this Section VHI, Developer's exclusive remedy for an uncured Agency default
under this Agreement is to institute an action for specific performance of the terms of this
Agreement, and in no event shall Developer have the right, and Developer expressly waives the
right, to seek monetary damages of any kind (including but not limited to actual damages,
economic damages, consequential damages, or lost profits) from Agency in the event of a default
by Agency under this Agreement or any action related to this Agreement. Notwithstanding the
foregoing, Developer shall retain the right to seek a writ of mandate in the event of any final
denial by Agency of any Agency permit approval pertaining to the Project.
882/015610-0047
618860.03 a07/13/05
D. Attorney's Fees
The parties hereto acknowledge and agree that each such party shall bear its own legal
costs incurred in connection with the negotiation, preparation, approval, and execution of this
Agreement.
E. Termination Rights
Notwithstanding the nominal Negotiation Period hereinabove set forth, either party may
terminate this Agreement if the other party has materially defaulted in its obligations herein set
forth, and the terminating party has provided the defaulting party with written notification of
such default, and the defaulting party has refused to cure same. The written notification shall set
forth the nature of the actions required to cure such default if curable. The defaulting party shall
have thirty (30) days from the date of the written notification to cure such default. If such default
is not cured within the thirty (30) days, the termination shall be deemed effective. For purposes
of this paragraph, the parties hereby acknowledge that time is of the essence. Each party shall
also have the right to terminate this Agreement in the event that (i) Agency or Developer
determines that the Project is infeasible, based on financial or environmental impact
considerations, or not in the public interest; or (ii) the parties reach an impasse in their
negotiation of the DDA which cannot be resolved after good faith efforts.
F. Indemnity
Developer shall indemnify, protect, defend and hold harmless Agency and City and
Agency's and City's respective elected officials, officers, employees, representatives, members,
and agents from and against any and all challenges to this Agreement, or any and all losses,
liabilities, damages, claims or costs (including attorneys' fees) arising from Developer's acts,
errors, or omissions with respect to its obligations hereunder or the Site, excluding any such
882/015610-0047 41
618860.03 a07/13/05
losses arising from the sole negligence or sole willful misconduct of Agency or the conduct of
third parties not under contract to or associated with, and outside the control of, Developer. This
indemnity obligation shall survive the termination of this Agreement,
G. Notices Demands and Communications Between the Parties
Formal notices, demands, and communications between Agency and Developer shall be
given either by (i) personal service, (ii) delivery by reputable document delivery service such as
Federal Express that provides a receipt showing date and time of delivery, or (iii) or by mailing
in the United States mail, certified mail, postage prepaid, return receipt requested, addressed to:
To Agency: La Quinta Redevelopment Agency
78-495 Calle Tampico
La Quinta, CA 92253
Attn: Executive Director
Telephone: (760) 777-7000
Facsimile: (760) 777-7101
With a copy to: Rutan & Tucker, LLP
611 Anton Blvd., Suite 1400
Costa Mesa, California 92626
Attn: M. Katherine Jenson, Esq:
Telephone: (714) 641-5100
Facsimile: (714) 546-9035
To Developer: Coachella Valley Housing Coalition
45-701 Monroe Street, Suite G, Plaza 1
Indio, California 92201
Attn: John Mealey, Executive Director
Telephone: (760) 347-3157
Facsimile: (760) 342-6466
With a copy to: Wayne Guralnick, Esq.
Guralnick & Gilliland, LLP
74-399 Highway 111, Suite M
Palm Desert, CA 92201
Telephone: (760) 340-1515
Facsimile: (760) 568-3053
882/015610-0047
618860.03 a07/13/05
Notices personally delivered or delivered by document delivery service shall be deemed
effective upon receipt. Notices mailed in the manner provided above shall be deemed effective
on the second business day following deposit in the United States mail. Such written notices,
demands, and communications shall be sent in the same manner to such other addresses as either
party may from time to time designate by mail.
H. Nonliability of Officials and Employees
No member, official, employee, or contractor of Agency or City shall be personally liable
to Developer in the event of any default or breach by Agency or for any amount which may
become due to Developer or on any obligations under the terms of the Agreement.
No boardmember, officer, or employee of Developer shall be personally liable to Agency
in the event of any default or breach by Developer or for any amount which may become due to
Agency or on any obligations under the terms of the Agreement
I. Enforced Delay Extension of Times of Performance
In addition to specific provisions of this Agreement, performance by either party
hereunder shall not be deemed to be in default where delays or defaults are due to war,
insurrection, strikes, lock -outs, riots, floods, earthquakes, fires, casualties, supernatural causes,
acts of the public enemy, epidemics, quarantine restrictions, freight embargoes, lack of
transportation, governmental restrictions or priority, litigation, unusually severe weather, inability
to secure necessary labor, materials or tools, delays of any contractor, subcontractor or supplies,
acts of the other party, acts or failure to act of Agency or City or any other public or
governmental agency or entity, including, without limitation, unreasonable delays in the
processing and issuance of required permits for the Project required by Developer (except that
any act or failure to act of Agency shall not excuse performance by Agency) or any other causes
'82/015610-0047 43
618860.03 a07/13/05
beyond the reasonable control or without the fault of the party claiming an extension of time to
perform, for up to a maximum cumulative period of one hundred eighty (180) days.
Notwithstanding the foregoing, inability to secure satisfactory financing or market and economic
conditions shall not entitle Developer to an extension of time to perform. An extension of time
for any such cause shall be for the period of the enforced delay and shall commence to run from
the time of the commencement of the cause, if notice by the party claiming such extension is sent
to the other party within thirty (30) days of knowledge of the commencement of the cause. In
addition, times of performance under this Agreement may be extended by mutual written
agreement by Agency and Developer.
J. Interpretation
The terms of this Agreement shall be construed in accordance with the meaning of the
language used and shall not be construed for or against either party by reason of the authorship of
this Agreement or any other rule of construction which might otherwise apply. The Section and
Paragraph headings are for purposes of convenience only, and shall not be construed to limit or
extend the meaning of this Agreement.
K. Entire Agreement Waivers, and Amendments
This Agreement integrates all of the terms and conditions mentioned herein, or incidental
hereto, and supersedes all negotiations or previous agreements between the parties with respect
to all or any part of the subject matter hereof. All waivers of the provisions of this Agreement
must be in writing and signed by the appropriate authorities of the party to be charged, and all
amendments and modifications hereto must be in writing and signed by the appropriate
authorities of Agency and Developer.
882/015610-0047 44
618860.03 a07/13/05
L. Counterparts
This Agreement may be executed in counterparts, each of which, after all the parties
hereto have signed this Agreement, shall be deemed to be an original, and such counterparts shall
constitute one and the same instrument.
M. Successors
This Agreement shall be binding upon and shall inure to the benefit of the permitted
successors of each of the parties hereto.
N. Further Assurances
The parties hereto each agree, without further consideration, to execute such other and
further documents, and to perform such other and further acts, as may be necessary or proper in
order to consummate the transaction set forth in and contemplated by this Agreement.
O. Severability
In the event any section or portion of this Agreement shall be held, found, or determined
to be unenforceable or invalid for any reason whatsoever, the remaining provisions shall remain
in effect, and the parties hereto shall take further actions as may be reasonably necessary and
available to them to effectuate the intent of the parties as to all provisions set forth in this
Agreement.
P. Time is of the Essence
Time is of the essence for each of Developer's obligations under this Agreement.
Q. Extension by Agency Executive Director
The Agency Executive Director is authorized, in his or her sole and absolute discretion, to
extend the time for Developer's performance under this Agreement for a cumulative period of up
to one hundred twenty (120) days.
882/015610-0047
618860.03 a07/13/05
R. Confidentiality
Developer acknowledges and agrees that Agency is a public entity with a responsibility
and, in many cases, a legal obligation to conduct its business in a manner open and available to
the public. Accordingly, any information provided by Developer to Agency with respect to the
Site, the Project or Developer may be disclosed to the public either purposely, inadvertently, or
as a result of a public demand or order.
882/015610-0047
618860.03 a07/13/05
IN WITNESS WHEREOF, Agency and Developer have executed this Agreement on the
respective dates set forth below.
Dated:
ATTEST:
June Greek, Secretary
APPROVED AS TO FORM:
RUTAN &TUCKER, LLP
Agency Counsel
Dated:
LA QUINTA REDEVELOPMENT AGENCY
C
Agency Executive Director
COACHELLA VALLEY HOUSING
COALITION
<,_. 'l.ti6�,I (!�
,'CC2
882/015610-0047 4
618860.03 a07/13/05
EXHIBIT 1
DEPICTION OF THE SITE
m
882/015610-0047
618860.03 a07/13/05
EXHIBIT
EARLY ENTRY AGREEMENT
[to be insertedl
882/015610_0047 4 9
618860.03 a07/13/05 III
EARLY ENTRY AGREEMENT
This EARLY ENTRY AGREEMENT ("Agreement") is entered into as of
, 2005, by and between the LA QUINTA REDEVELOPMENT AGENCY, a
public body, corporate and politic ("Agency") and COACHELLA VALLEY HOUSING
COALITION, a California Non -Profit Corporation ("Developer"), with reference to the
following facts:
RECITALS
A. Agency is the present owner of that certain real property located in the La Quinta
Redevelopment Project Area No. 2, depicted on Exhibit "A" hereto ("Site").
B. Agency has executed, or will execute, concurrent with the execution of this
Agreement, that certain Exclusive Negotiation Agreement with Developer ("ENA"), pursuant to
which Agency and Developer will negotiate the possible sale of the Site by Agency to Developer
for Developer's development thereon of a multi -family affordable housing development with
dwellings rented, at restricted rents, to qualified families ("Project").
C. Developer has requested the right to enter onto and about the Site to perform
certain work specified herein, and Agency is willing to allow such entry on the terms and
conditions hereinafter specified.
NOW, THEREFORE, in consideration of the covenants and agreements contained herein
and for other valuable consideration, the sufficiency and receipt of which are hereby
acknowledged by the parties hereto, the parties covenant and agree as follows:
I. Grant of License. Agency hereby grants to Developer and its employees, agents,
consultants, and contractors ("Related Parties") a license for the term set forth in Paragraph 3
("License") to enter upon the Site between the hours of 8:00 a.m. and 5:00 p.m., Monday through
Friday, for the purposes of inspecting, surveying and testing, including geotechnical, soils and
environmental tests, on said Site ("Permitted Work") in connection with the proposed use or
lease thereof for development of the Project. Notwithstanding the above, at least forty-eight (48)
hours prior to any of the Related Parties entering the Site, Developer shall notify Agency of its
intention of the same. Said notice shall be provided by facsimile, addressed to the person listed
in Section 8.8 hereof at the number provided therein. Agency may reject any proposed entry, in
the exercise of its reasonable discretion, by providing telephonic notification to Developer at
least twenty-four (24) hours prior to Developer's proposed entry, to the person listed in Section
8.8 hereof, at the number provided therein, which notice shall specify the reason for such
rejection.
Agency has full right, title and authority to grant Developer the License for the Permitted
Work, and no third party permission or consent is needed in connection therewith. Such License
shall be non -revocable for the Term defined in Paragraph 3 below, except as otherwise set forth
herein. Agency specifically agrees that Developer shall have access to and be entitled to inspect
882/015610-0047
618860.03 a07/13/05
all portions of the Site, including without limitation, any structures located thereon, provided,
however, that neither Developer nor any of the Related Parties shall interfere with any other real
or personal property, or enter upon any other real property, without first obtaining the written
consent of the owner(s) of such other real or personal property.
2. Revocation. Agency may revoke this License upon two (2) days written notice to
Developer delivered in accordance with Subparagraph 8.8 below in the event (i) in the reasonable
judgment of Agency, such revocation is necessary to protect the public health, safety, or welfare
pursuant to the exercise of Agency's police powers; or (ii) Developer is in violation of the terms
of this Agreement or any applicable law, statute, ordinance, rule, or regulation pertaining to the
Permitted Work or Developer's or the Related Parties' entry upon the Site pursuant to this
Agreement, and Developer has failed to cure such violation within two (2) days following
Developer's receipt of notice of such violation from Agency.
3. Term. The term of the License shall commence on full execution hereof and shall
terminate on the earlier of (i) the execution of a disposition and development agreement as
described in the ENA, (ii) one hundred and eighty (180) days from the date hereof, or (iii)
termination of the ENA pursuant to the terms and conditions set forth in the ENA.
4. Repair and Restoration of Site. Developer shall repair any damage it causes to the
Site in the course of conducting its investigations pursuant hereto and shall restore the Site to the
condition existing prior to Developer's or Related Parties' entry onto the Site.
5. Compliance with Laws. Developer shall obtain, at its sole cost and expense, all
governmental permits and authorizations required by any governmental agencies for the
Permitted Work. Developer shall comply with, and shall cause all of its Related Parties to
comply with, all applicable governmental laws, rules, regulations and requirements governing the
Permitted Work. Prior to Developer's or any of the Related Parties' entry onto the Site to
perform any of the Permitted Work, Developer shall have prepared, obtained approval from the
City thereof, and implemented, a dust control program.
6. Indemnity. Developer shall protect, defend, indemnify and hold harmless Agency
and the City of La Quinta ("City") and Agency's and City's respective officers, officials,
members, employees, agents, and representatives (any of the foregoing shall be known
individually as "Indemnitee" and collectively as "Indemnitees"), and each of them, jointly and
severally, against and from any and all claims, demands, causes of action, damages, costs,
expenses, losses and liabilities, at law or in equity, of every kind or nature whatsoever related to
Developer's exercise of its rights hereunder, including attorneys' fees and expert witness fees,
but excluding those resulting from environmental contamination of the Site or other defects on
the Site existing prior to Developer's entry thereon or not otherwise caused by Developer or any
of the Related Parties, but including, without limitation, injury to or death of any person or
persons and damage to or destruction of any property, threatened, brought or instituted
("Claims"), arising out of or in any manner directly or indirectly connected with the entry upon
the Site by Developer or any of its Related Parties and the performance of the Permitted Work,
including without limitation:
882/015610-0047
618860.03 a07/13/05
(a) any damage to the Site and any liability to any third party incurred by
reason of any acts or omission of, or any commission of any negligent or tortious acts, by
Developer or its Related Parties;
(b) any mechanics' or materialmen's liens, claims, demands, actions or suits
arising (directly or indirectly) from (i) any work performed or materials supplied to or for
Developer, or (ii) any activities of any of its Related Parties on or relating to the Site (including,
without limitation, any claims by any of such Related Parties); and
(c) any costs of removing Developer or its Related Parties from the Site after
the expiration of the term hereof unless Developer is otherwise entitled to possession of the Site
at such time.
7. Insurance. Developer shall procure and maintain during the term of this
Agreement, including any holdover period, commercial general liability insurance in an amount
not less than Two Million Dollars ($2,000,000). Agency and City and Agency's and City's
respective officers, officials, members, employees, agents, and representatives shall be named
additional insureds on such policy/ies. Developer's insurance required hereunder shall (i) be
primary insurance and not contributory with any other insurance Developer may have; (ii) not
contain any special limitations on the scope of protection afforded to Developer and its officers,
partners, officials, members, employees, agents, and representatives; (iii) be "date of occurrence"
and not "claims made" insurance; (iv) apply separately to each insured against whom claim is
made or suit is brought, except with respect to the limits of the insurer's liability; (v) shall
provide that the policy shall not be cancelled by the insurer or Developer unless there is a
minimum of thirty (30) days prior written notice to Developer and Agency; and (vi) shall be
written by a good and solvent insurer rated with a BEST rating of no less than B+ Class X,
licensed by or having admitted status in the State of California, and registered with the California
State Department of Insurance. The deductible or self -insured retention must be declared to the
Agency Executive Director, who in his/her sole discretion may require the insurer to reduce such
deductible or self -insured retention (but in no event shall such deductible or self -insured
retention be required to be reduced below Ten Thousand Dollars [$10,000]) with respect to
Agency and City and Agency's and City's respective officers, officials, members, employees,
agents, and representatives; or Developer may be required to procure a bond guaranteeing
payment of losses and related investigation, claims administration, and defense expenses.
Developer shall furnish or cause to be furnished to the Agency Executive Director, prior
to the entry on the Site pursuant to this Agreement, certificates of insurance which bear original
signatures of authorized agents and which reflect insurers' names and addresses, policy numbers,
coverage, limits, deductibles and self -insured retentions. Additionally, Developer shall furnish
certified copies of all policy endorsements required herein. All certificates and endorsements
must be received and approved by Agency before work commences. Agency reserves the right to
require at any time complete, certified copies of any or all required insurance policies and
endorsements. Prior to any such entry Developer shall also provide evidence reasonably
satisfactory to the Agency Executive Director that Developer or any contractor with whom
882/015610-0047 ryjj
618860.03 a07/13/05
Developer has contracted for the performance of work on or around the Site carries workers'
compensation insurance as required by law.
8. Miscellaneous.
8.1 Authority. Each signatory hereto warrants to the other party that it has
authority to sign on behalf of the party for whom it purports to sign.
8.2 Attorney's Fees. In the event any party hereto brings suit to enforce the
terms of this Agreement or on account of breach hereof, the party not prevailing in such suit shall
pay all reasonable costs and expenses incurred by the other party in such suit, including, without
limitation, court costs, attorneys' fees, and expert witness fees.
8.3 Entire Agreement. This Agreement sets forth the entire agreement of the
parties with respect to the subject matter hereof and supersedes all prior discussions,
negotiations, understandings or agreements relating thereto.
8.4 Counterparts. This Agreement may be executed in two or more
counterparts, each of which will be deemed an original, but all of which together will constitute
one and the same agreement.
8.5 Litigation Matters. The Municipal and Superior Courts of the State of
California in the County of Riverside shall have the exclusive jurisdiction of any litigation
between the parties arising out of this Agreement. This Agreement shall be governed by, and
construed under, the laws of the State of California. Service of process on Agency shall be made
in the manner required by law for service on a public entity. Service of process on Developer
shall be made in any manner permitted by law and shall be effective whether served within or
outside of California.
8.6 Non -liability f Agency Officers and Employees. No officer, official,
member, employee, agent, or representative of Agency shall be personally liable to Developer, or
any successor or assign of same, in the event of any default or breach by Agency, or for any
amount which may become due to Developer, or any successor or assign of same, or for breach
of any obligation of the terms of this Agreement.
8.7 Covenant Against Discrimination. Developer covenants for itself, its
heirs, executors, assigns, and all persons claiming under or through it, that there shall be no
discrimination against any person on account of race, color, creed, religion, sex, marital status,
national origin, or ancestry, in the performance of this Agreement.
8.8 Notices. All notices required to be delivered under this Agreement or
under applicable law shall be personally delivered, or delivered by United States mail, prepaid,
certified, return receipt requested, or by reputable document delivery service that provides a
receipt showing date and time of delivery. Notices personally delivered or delivered by a
document delivery service shall be effective upon receipt. Notices delivered by mail shall be
882/015610-0047
618860.03 a07/13/05
54
effective at 5:00 p.m. on the second business day following dispatch. Notices shall be delivered
to the following addresses:
To Agency: La Quinta Redevelopment Agency
78-495 Calle Tampico
La Quinta, CA 92253
Attn: Executive Director
Telephone: (760) 777-7000
Facsimile: (760) 777-7101
With a copy to: Rutan & Tucker, LLP
611 Anton Blvd., Suite 1400
Costa Mesa, California 92626
Attn: M. Katherine Jenson, Esq.
Telephone: (714) 641-5100
Facsimile: (714) 546-9035
To Developer: Coachella Valley Housing Coalition
45-701 Monroe Street, Suite G, Plaza 1
Indio, California 92201
Attn: John Mealey, Executive Director
Telephone: (760) 347-3157
Changes in the address to be used for receipt of notices shall be effected in accordance with this
Paragraph 8.8.
8.9 Time of Essence. Time is of the essence in the performance of the
Agreement.
[signatures on next page]
Jv
882/015610-0047
618860.03 a07/13/05
IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto as of
the date first above -written.
Dated:
ATTEST:
ME
June Greek, Secretary
APPROVED AS TO FORM:
RUTAN &TUCKER, LLP
Agency Counsel
Dated:
LA QUINTA REDEVELOPMENT AGENCY
LE
Agency Executive Director
COACHELLA VALLEY HOUSING
COALITION
By:.__
Title: b1 r F
56
882/015610-0047
618860.03 a07/13/05
EXHIBIT "A"
DEPICTION OF SITE
[to be inserted]
882/015610-0047
618860.03 a07/13/05
ceit!t 4 4vQu&rw
COUNCIL/RDA MEETING DATE: .J u ly 19, 2 0 0 5
ITEM TITLE: Consideration of a (1) Resolution
Approving the Fiscal Year 2005-2006 La Quinta
Redevelopment Agency Budget and a (2) Resolution
Determining the Planning and Administration Expenses
to be Funded in Fiscal Year 2005-06
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION: /
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Adopt a Resolution of the City Council approving the Fiscal Year 2005-2006 City of La
Quinta Redevelopment Agency Budget and determining the planning and administration
expenses to be funded in Fiscal Year 2005-06.
See City Council Staff Report
8
RESOLUTION NO. RA 2005-
A RESOLUTION OF THE LA QUINTA REDEVELOPMENT AGENCY
APPROVING A BUDGET FOR FISCAL YEAR 2005-2006
WHEREAS, each year the La Quinta Redevelopment Agency adopts a Budget for
Revenues and Expenditures for the upcoming Fiscal Year; and
WHEREAS, the La Quinta Redevelopment Agency desires to make provisions for
a level of services commensurate with the needs of the City; and
WHEREAS, the La Quinta Redevelopment Agency has reviewed said budget and
has had several public meetings to receive public input; and
WHEREAS, the La Quinta Redevelopment Agency has, after due deliberation and
consideration, made such amendments in the proposed budget as it considers
desirable; and
NOW, THEREFORE, BE IT RESOLVED by the La Quinta Redevelopment Agency
to adopt, as follows:
SECTION 1. The Fiscal Year 2005-2006 Budget which is on file with the La
Quinta Redevelopment Agency Secretary, is hereby approved.
SECTION 2. Continuing Appropriations which remain unspent and were
authorized by Council in Fiscal Year 2004-05, are approved in the Fiscal Year
2005/2006 Budget in an amount not to exceed $16,516,637 (Attachment 1).
SECTION 3. Encumbrances for Fiscal Year 2004-05 for committed
appropriations are approved in the Fiscal Year 2005-06 budget in an amount not to
exceed $2,781,661 (Attachment 1).
SECTION 4. Budget adjustment procedures are approved as follows:
A. Additional appropriations and the transfer of cash or
unappropriated fund balance from one fund to another shall be
made only upon Redevelopment Agency approval.
B. Transfers of budgeted appropriations between divisions or capital
projects shall be made only upon Redevelopment Agency approval.
C. Transfers of budgeted appropriations between accounts within a
division or capital project may be made with the approval of the
Executive Director or his designee.
2
Resolution No. RDA 2005-
Planning & Administrative Expenses FY 2005/2006
Adopted: July 19, 2005
Page 2
D. Prior year budget continuing Appropriations and Encumbrances for
unexpended capital project appropriations remaining from
uncompleted prior year capital projects shall be made with
Executive Director approval. These carry-over appropriations are
for prior year Redevelopment Agency approved capital projects and
shall not exceed the approved project budget.
SECTION 4. The Executive Director shall render a monthly report to the La
Quinta Redevelopment Agency Board on the status of Agency operations as it relates
to the approved budget and any amendments thereto.
PASSED, APPROVED AND ADOPTED this 19th day of July, 2005, by the following
vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
LEE OSBORNE, Chair
La Quinta Redevelopment Agency
ATTEST:
JUNE GREEK, Agency Secretary
La Quinta Redevelopment Agency
APPROVED AS TO FORM:
KATHY JENSON, Agency Counsel
La Quinta Redevelopment Agency
G0
3
ATTACHMENT 1
City of La Quinta
Redevelopment Agency
Fiscal Year 2004/05 Continuing Appropriations/Encumbrances -Note 1 11-Jul-05
As presented in Budget Documents
Department
Account
Description
Continuing
Appropriation
Encumbrances
Total
Redevelopment Agency
245-9001-703-51.43
LQRP 2nd Trust Deed
3,053,240
3,053,240
245-9001-703-51.42
LQRP Rehabilitation
500,000
500,000
245-9001-703-51.46
Apartment Rehabiliation
1,847,718
1,847,718
245.9001-703-51.11
Low Mod Village Apartments
400,000
400,000
245.9001-703-51.40
LQRP Funds
100,000
100,000
245.9001-703-51.49
Low Mod Housing Projects
475,000
475,000
245.9001-703-51.49
Foreclosure Acquisition
80,000
80,000
245.9001-703-51.xx
Other Services
4,248,507
4,248,507
246-9002-703-51.43
LQRP 2nd Trust Deed
500,000
500,000
246-9002-703-51.44
LQRP 2nd Trust Deed - Centrepointe
2,520,000
2,520,000
246-9002-703-51.55
Foreclosure Acquisition
150,000
150,000
246-9002-703-51.68
Vista Dunes Mobile Home Park
191,865
191,865
246-9002-703-51.62
47th Adams Project
731,880
533,943
1,265,823
246-9002-703-51.45
48th & Adams Centerpoint
1,416,145
1,416,145
246-9002-703-51.44
2nd Trust Deed Centerpoint
2,520,000
2,520,000
405-9001-702.55.07
Advertising/Economic Development
30,000
30,000
Subtotal - Redevelopment
Agency
16,516,637
2,781,661
19,298,298
Note 1 - The appropriations and encumbrances listed will be adjusted to reflect actual expenditures as of June 30, 2005
61
EI
RESOLUTION NO. RA 2005-
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF
THE CITY OF LA QUINTA DETERMINING THAT THE
PLANNING AND ADMINISTRATION EXPENSES TO BE
FUNDED IN FISCAL YEAR 2005-06 BY THE LOW -AND
MODERATE -INCOME HOUSING FUND ARE NECESSARY
FOR THE PRODUCTION, IMPROVEMENT AND/OR
PRESERVATION OF AFFORDABLE HOUSING FOR LOW -
AND -MODERATE INCOME HOUSEHOLDS
WHEREAS, the City Council of the City of La Quinta has heretofore
adopted the Redevelopment Plan for Project Area 1 on December 29, 1983 by
Ordinance No. 43; and
WHEREAS, the City Council of the City of La Quinta has heretofore
adopted the Redevelopment Plan for the Project Area 2 on May 16, 1989 by
Ordinance No. 139; and
WHEREAS, pursuant to Section 33334.2(a) of the California Community
Redevelopment Law (Health and Safety Code Section 33000 et seq.) not less
than 20% of all taxes which are allocated to the Agency shall be set aside by
the Agency in a Low -and Moderate -Income Housing Fund and used by the
Agency for the purpose of increasing, improving and preserving the
community's supply of low- and moderate -income housing available at
affordable housing costs to people and families of low and moderate income;
and
WHEREAS, pursuant to Section 33334.3 (d) of the California Community
Redevelopment Law (Health and Safety Code Section 33000 et seq.) it is the
intent of the California State Legislature that the amount of money spent for
planning and general administration from the Low -and Moderate -Income Housing
Fund not be disproportionate to the amount actually spent for the cost of
production.
NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the
City of La Quinta as follows:
1. The Agency hereby determines that it is necessary to allocate $1,030,282
of the estimated $61,673,480 2004-05 Affordable Housing Budget for the
planning and administrative expenses necessary for the production,
improvement, and or preservation of low and moderate income housing
during the 2005-06 fiscal year.
62
5
Resolution No. RA 2005-
Planning & Administrative Expenses FY 2005/2006
Adopted: July 19, 2005
Page 2
2. That the City Clerk shall certify to the passage and adoption of this
resolution and enter it into the book of original resolutions.
PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta
Redevelopment Agency held on this 19th day of July 2005, by the following
vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Lee Osborne, Chair
La Quinta Redevelopment Agency
ATTEST:
JUNE S. GREEK, CMC, Authority Secretary
La Quinta Redevelopment Agency
(Authority Seal)
APPROVED AS TO FORM:
M. KATHERINE JENSON, Agency Counsel
La Quinta Redevelopment Agency 63
0
OF T
COUNCIL/RDA MEETING DATE: July 19, 2005 AGENDA CATEGORY:
BUSINESS SESSION:
ITEM TITLE: Consideration of Concept Plan/Site Plan CONSENT CALENDAR: _
Pursuant to the Exclusive Negotiation Agreement By
and Between the La Quinta Redevelopment Agency STUDY SESSION: _
and DDC for Developable Parcels Within SilverRock PUBLIC HEARING:
Resort
RECOMMENDATION:
Approve the Concept Plan/Site Plan for the developable parcels within SilverRock
Resort and direct staff to initiate negotiations that lead to the preparation of a
disposition and development agreement with DDC Desert Development, Inc.
FISCAL IMPACT:
None for this action. DDC Desert Development, Inc. deposited $100,000 with the
Agency to fund Agency legal, consultant and other related costs associated with
this agreement.
BACKGROUND AND OVERVIEW:
In March 2005, the Agency Board approved an Exclusive Negotiation Agreement
("ENA") with DDC Desert Development, Inc. ("Developer"). The ENA established a
90-day First Due Diligence Period to develop concept/site plan and development
program for the developable parcels at SilverRock Resort that delineate:
1. The type and scope of development for each parcel;
2. The development phasing schedule;
3. Required on- and off -site improvements, if known;
4. Anticipated development and infrastructure costs;
64
5. Funding responsibilities and resources;
6. The parties/entities responsible for project development activities; and
7. A detailed project development schedule.
Attachment 1 to this report contains the "Development Parameters" Summary that
was prepared by the Developer. It was created from input the Agency Board and
the community provided through the three workshops that were held during the
First Due Diligence Period, and embraces the development concepts and design
parameters provided by the Agency Board. The Summary provides for 549 to
1,050 hotel, boutique hotel and resort casitas units; 25,000 to 100,000 square
feet of retail space; and 50,000 square feet of conference space. In addition, land
is allocated for community and cultural facilities. These development scenarios are
designed to be flexible so that subsequent site specific development plans reflect
the market conditions at the time they are developed. It is anticipated that it may
take five to ten years to build -out all of the developable parcels. Resort and retail
space market conditions will certainly change during this period.
Agency Board approval of the "Development Parameters" Summary does not lock
into place this development program. Instead, approving the Summary will identify
a development program for SilverRock Resort from which staff and the Developer
can then generate pro formas that identify the financial responsibilities both parties
may be required to make. Using the financial and other information, negotiations
may commence to generate business terms that would be embodied in a
disposition and development agreement ("DDA"). If the DDA is accepted by both
parties, specific plan, environmental documents, and the site specific development
plans and programs would be produced for each development phase, which would
then be the subject of further review and approval by the Agency. Board and City
Council.
Attachment 1 also presents correspondence from the Developer that outlines
anticipated development costs. The Developer has indicated that they would
invest from $310 million to $557 million to fund the costs related to the private
resort, retail and associated uses. Lowe Enterprises (the parent company of DDC
Desert Development), through its investor base, would be responsible for raising
capital to build the project.
In Attachment 2, "Phase II Costs," DDC has indicated that the Agency may need to,
fund from $37 million to $59 million in additional improvements related to building
a permanent clubhouse, the second golf course, remaining utility and road system
infrastructure, and site entry treatment improvements (Jefferson Street/Avenue
54). The Agency could fund these improvements through:
• The $14,000,000 of bond proceeds remaining from the 2002 Tax Allocation
Bond issue that have been designated for SilverRock Resort Phase II needs;
• Land sale and/or lease income from the disposition of the developable
SilverRock Resort parcels;
• Potential sharing of the up -side profits generated from the sale of the resort
casita uses;
• Valuing the developable parcels at their fair reuse rather then their fair
market value which would compensate the Developer for funding required
City/Agency improvements; and
• Proceeds from the sale of additional tax allocation bonds.
The anticipated cost schedule also identifies other estimated costs of $15 million to
$27 million associated with facilitating golf performance center, and additional civic
and performing arts complex uses. Funding responsibilities and sources for these
uses need to be determined.
Attachment 3 is the SilverRock Resort master development plan created by DDC.
DDC will also provide a Concept Plan/Site Plan Book, which includes a projected
development schedule, for the Agency Board Members at Tuesday's RDA meeting.
Next Step
If the Agency Board approves the Concept Plan/Site Plan, the next step entails
entering into the Second Due Diligence Period as defined in the ENA. During this
period, the Agency and Developer will negotiate for an additional 90 days to
prepare development and operations pro formas, define specific Agency/Developer
responsibilities, identify specific funding parameters and requirements, negotiate
and prepare a DDA, and define environmental review requirements. If the DDA is
accepted by both parties, the ENA provides for an additional 60 days to process
the DDA for a joint public hearing involving the Agency Board and City Council.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency Board include:
1. Approve the Concept Plan/Site Plan for the developable parcels within
SilverRock Resort and direct staff to initiate negotiations that lead to the
preparation of a disposition and development agreement (DDA) with DDC
Desert Development, Inc.; or
66
2. Do not approve the Concept Plan/Site Plan for the developable parcels within
SilverRock Resort and do not direct staff to initiate negotiations that lead to
the preparation of a disposition and development agreement (DDA) with DDC
Desert Development, Inc.; or
3. Provide staff with alternative direction.
Respectfully submitted,
/� /yLA'1
Mark Weiss, Assistant Executive Director
Approved for submission by:
C
Thomas P. Genovese, Executive Director
Attachments: 1. "Development Parameters" Summary
2. Phase II Costs
3. SilverRock Resort Site Plan
67
ATTACHMENT 1
z�
w
W<G
a
z
Qi
W
�^^
i�
Q
N
A
0 0" o 0 0 o o�e o
o o o o o oaf o
c o ov o� o o� o o o
oo1� 00 I� o- W)
N o 69 64 69 69 6A 69 6s
o I o_ o u oo
o�
C, o o l4 0 c o .0
a o o o 6R oo O� oo
In o W) o� O�
o� o Oo o� oUa o�
A o 'ova cC> N CD tn O
64 �+ 64 @ 69 M
69
69
O O O N O N
y N N M .--i
W o ° o Z o o ° °
z
0
O � O
44
� O
O O 0 Q O O
tn O O O �I
O N N r+
4-4p 0 O o �O �O
ccCdf �,
00 O O O ON
N v) O O G N O
tn
Cd
6j
N
a� U -°o
F., w
a�
o C
a x °04U o v 0
x a o a U U
o VIr > r o
0
v°a wx� U a a a c7 a Cd
0
� N
•� N N Q M d
i�
a wti
ATTACHMENT 2
Golf Clubhouse
2nd Golf Course
LOWE
D E S 7 1 N AT 10 N
DEVE LOP M ENT
SM Y 1.[ ROCK
PHASE II COSTS
20,000 — 30,000 s.f. @ 400/ft -
Infrastructure/offsites (Keith Engineering)
Entry Feature/roads
Contingency 15%
Other - Discretionary
Civic Park Site
Conference Center
Performing Arts Center*
Golf Performance Center*
Other public amenities
* Assumes City contribution is underlying land value only.
Estimates based on conceptual plan and assumptions
$ 8,000,000 - $12,000,000
$10,000,000 - $18,000,000
$12,000,000 - $18,000,000
$ 2,000,000 - $ 3,000,000
$ 5,000,000 - $ 8,000,000
$37,000,000 - $59,000,000
$ 3,000,000 - $10,000,000
$ 12,000,000 - $15,000,000
$ 0 - $ 5,000,000
$ 0 - $ 2,000,000
$ 0 - $ 5,000,000
July 13, 2005