2006 02 07 RDAeaf 4 Sep adja
Redevelopment Agency Agendas are
Available on the City's Web Page
@ www.la-quinta.org
REDEVELOPMENT AGENCY
AGENDA
CITY COUNCIL CHAMBERS
78-495 Calle Tampico
La Quinta, California 92253
Regular Meeting
February 7, 2006 - 2:00 P.M.
Beginning Resolution No. RA 2006-001
CALL TO ORDER
Roll Call:
Agency Board Members: Adolph, Henderson, Perkins, Sniff, and Chairman Osborne
PUBLIC COMMENT
At this time, members of the public may address the Redevelopment Agency on any
matter not listed on the agenda. Please complete a "request to speak" form and limit your
comments to three minutes. Please watch the timing device on the podium.
CLOSED SESSION
NOTE: Time permitting the Redevelopment Agency Board may conduct Closed Session
discussions during the dinner recess. In addition, persons identified as negotiating parties
are not invited into the Closed Session meeting when the Agency is considering acquisition
of real property.
1. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR, THOMAS P.
GENOVESE, PURSUANT TO GOVERNMENT CODE SECTION 54956.8
CONCERNING POTENTIAL TERMS AND CONDITIONS OF ACQUISITION AND/OR
DISPOSITION OF A PORTION OF 525 ± ACRES LOCATED AT THE SOUTHWEST
CORNER OF AVENUE 52 AND JEFFERSON STREET. PROPERTY
OWNER/NEGOTIATOR: THEODORE LENNON, DDC DESERT DEVELOPMENT, INC.
Redevelopment Agency Agenda 1 February 7, 2006 (' t F I
2. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR, THOMAS P.
GENOVESE, PURSUANT TO GOVERNMENT CODE SECTION 54956.8
CONCERNING POTENTIAL TERMS AND CONDITIONS OF ACQUISITION AND/OR
DISPOSITION OF REAL PROPERTY LOCATED AT THE SOUTHEAST CORNER OF
MILES AVENUE AND WASHINGTON STREET. PROPERTY OWNER/NEGOTIATOR:
CP DEVELOPMENT LA QUINTA, LLC.
3. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR, DOUG EVANS,
PURSUANT TO GOVERNMENT CODE SECTION 54956.8 CONCERNING POTENTIAL
TERMS AND CONDITIONS OF ACQUISITION AND/OR DISPOSITION OF REAL
PROPERTY IDENTIFIED AS: 609-040-007, 609-040-005, 649-040-002, 649-040-
003, 649-040-004, 649-040-005, 649-040-01 1, 649-040-012, 649-040-014.
PROPERTY OWNERS/NEGOTIATORS: MIKE SOLLENBERGER, TESTA FAMILY
PARTNERSHIP, SUSAN E. SLATER, BARBARA A. FOUNTAIN, TED AND BEVERLY
A. HARTNETT, JOSE P. & CARMELITA P. SIMO, LOUIS AND JUANITA RAMIREZ,
LORENZO P. AND SANDRA V. PEREYRA, AND DUNE PALMS MOBILE ESTATES,
LLC.
4. CONFERENCE WITH THE AGENCY'S REAL PROPERTY NEGOTIATOR, DOUG
EVANS, PURSUANT TO GOVERNMENT CODE SECTION 54956.8 CONCERNING
POTENTIAL TERMS AND CONDITIONS OF ACQUISITION AND/OR DISPOSITION OF
REAL PROPERTY REGARDING ENA NEGOTIATIONS WITH CVHC FOR PROPERTY
LOCATED AT THE SOUTHWEST CORNER OF DUNE PALMS AND AVENUE 48.
PROPERTY OWNERS/NEGOTIATORS: COACHELLA VALLEY HOUSING COALITION
RECONVENE AT 3:00 P.M.
PUBLIC COMMENT
At this time members of the public may address the Agency Board on items that appear
within the Consent Calendar or matters that are not listed on the agenda. Please complete
a "request to speak" form and limit your comments to three minutes. When you are called
to speak, please come forward and state your name for the record. Please watch the
timing device on the podium.
For all Agency Business Session matters or Public Hearings on the agenda, a completed
,,request to speak" form should be filed with the City Clerk prior to the Agency beginning
consideration of that item.
CONFIRMATION OF AGENDA
APPROVAL OF MINUTES
APPROVAL OF MINUTES OF JANUARY 17, 2006.
Redevelopment Agency Agenda 2 February 7, 2006 r
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 FEBRUARY 7, 2006.
2. ACCEPTANCE OF SilverRock RESORT GOLF COURSE GRADING AND DRAINAGE
IMPROVEMENTS, PROJECT NO. 2002-07L.
3. APPROVAL OF AN AMENDMENT TO THE EXCLUSIVE NEGOTIATION AGREEMENT
BY AND BETWEEN DDC DESERT DEVELOPMENT, INC. AND THE LA QUINTA
REDEVELOPMENT AGENCY FOR DEVELOPABLE PARCELS WITHIN SilverRock
RESORT.
4. APPROVAL OF THE THIRD AMENDMENT TO THE AFFORDABLE HOUSING
REHABILITATION AGREEMENT BY AND AMONG THE LA QUINTA
REDEVELOPMENT AGENCY AND MAUKA VIEW, L.L.C. (JAMES SORENSEN,
MANAGING MEMBER) PERTAINING TO A 33-UNIT APARTMENT COMPLEX
LOCATED AT 51-025 THROUGH 51-085 AVENIDA MARTINEZ AND AUTHORIZE
THE EXECUTIVE DIRECTOR TO EXECUTE THE DOCUMENTS.
BUSINESS SESSION-- NONE
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
February 21, 2006 commencing with closed session at 2:00 p.m. and open session at
3:00 p.m. in the City Council Chambers, 78-495 Calle Tampico, La Quinta, CA 92253.
Redevelopment Agency Agenda 3 February 7, 2006 (t
DECLARATION OF POSTING
I, June S. Greek, City Clerk of the City of La Quinta, do hereby declare that the foregoing
agenda for the La Quinta Redevelopment Agency meeting of February 7, 2006, 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 February 3,
2006.
DATED: February 3, 2006
JUNE S. GREEK, CIVIC, City Clerk
City of La Quinta, California
Redevelopment Agency Agenda 4 February 7, 2006
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AGENDA CATEGORY:
COUNCIL/RDA MEETING DATE: February 07, 2006
CONSENT CALENDAR
ITEM TITLE:
Demand Register Dated February 07, 2006
RECOMMENDATION:
It is recommended the Redevelopment Agency Board:
STUDY SESSION
PUBLIC HEARING
Receive and File the Demand Register Dated February 07, 2006 of which $264,890.66
represents Redevelopment Agency Expenditures.
PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA
COUNCIL/RDA MEETING DATE: February 7, 2006
ITEM TITLE: Acceptance of SilverRock Resort Golf Course
Grading and Drainage Improvements, Project No. 2002-
07L
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: a
STUDY SESSION:
PUBLIC HEARING:
Accept SilverRock Resort Golf Course Grading and Drainage Improvements, Project No.
2002-07L, as complete; approve Contract Change Order (CCO) No. 4 in the amount of
$18,607 for final quantity adjustments; authorize the City Clerk to file a Notice of
Completion with the Office of the County Recorder; and authorize staff to release
retention in the amount of $53,764, 35 days after the Notice of Completion is
recorded.
FISCAL IMPLICATIONS:
The following is the budget summary for this project:
Original Contract Amount
CCO Nos. 1-3
Pending CCO No. 4
Revised Contract Amount
BACKGROUND AND OVERVIEW:
$ 549, 884
($30,854)
$1 8,607
$537,637
On June 7, 2005, the Agency discussed additional improvements for SilverRock
Resort, which included the mountain storm runoff drainage improvements. These
improvements would better protect golf course No. 1 from mountain storm runoff that
caused significant erosion during the previous winter.
S:\CityMgr\STAFF REPORTS ONLY\2-7-06\C5 Proj 2002-07L .doc
On July 19, 2005, the Agency approved an emergency contract resolution authorizing
staff to negotiate a construction contract with the contractor who was on site, or
negotiate with another qualified landscape contractor. To that end, staff prepared
contract documents for the work and requested a proposal from Landscapes Unlimited,
which they prepared and delivered to the City after the RDA Agenda posting on
September 16, 2005. Staff negotiated the contract amount with Landscapes
Unlimited.
A Notice to Proceed was issued to Kubly Golf Course Construction (Landscapes
Unlimited) on October 24, 2005. The project was extended from the original
completion date of December 23, 2005 to January 10, 2006. The extension was a
result of additional grading required on hole #2 and delays because of the Jim Murray
Tournament.
The original contract amount was $549,844. Three CCO's have been accepted for
credits for work not required and for minor additional work. CCO No. 4 (Attachment
1 ) is for additional quantities and for work not listed in the original specifications,
including removing approximately 2,000 cubic yards of dirt. The final revised contract
amount with CCO Nos. 1 through 4 is $537,637. Work on this project is now
complete and staff therefore recommends acceptance of this project.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency Board include:
Accept SilverRock Resort Golf Course Grading and Drainage Improvements,
Project No. 2002-07L, as complete; approve Contract Change Order No. 4 in
the amount of $1 8,607 for final quantity adjustments; authorize the City Clerk
to file a Notice of Completion with the Office of the County Recorder; and
authorize staff to release retention in the amount of $53,764, 35 days after the
Notice of Completion is recorded; or
2. Do not accept SilverRock Resort Golf Course Grading and Drainage
Improvements, Project No. 2002-07L, as complete; do not approve Contract
Change Order No. 4 in the amount of $18,607 for final quantity adjustments;
do not authorize the City Clerk to file a Notice of Completion with the Office of
the County Recorder; and do not authorize staff to release retention in the
amount of $53,764, 35 days after the Notice of Completion is recorded; or
3. Provide staff with alternative direction.
2
S:\CityMgr\STAFF REPORTS ONLY\2-7-06\C5 Proj 2002-07L .doc
Respectfully submitted,
Timothy R. Jon sson° P
Public Works 0 rector/City Engineer
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachment: 1 . Contract Change Order No. 4
3
S:\CityMgr\STAFF REPORTS ONLY\2-7-06\C5 Proj 2002-07L .doc
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ATTACHMENT 1
Sheet 1 of 1
CONTRACT CHANGE ORDER NO. 4
PROJECT NO. 2002-07L
CONTRACT: SilverRock Resort Golf Course Grading and Drainage Improvements
CONTRACTOR: Landscapes Unlimited
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
-Additional 18" drainpipe required for project quantity. _
$
4,300.00
-Remove Line Item #18 for a 10'X20' cobble pad =
($
9,000.00)
-Additional 3" pipe required for project quantity. _
$
6,680.00
-Additional pump wire conduit required for project quantity. _
$
1,520.00
-Additional sod for #5 required for project quantity.
_ $
4,300.00
-Purchase of additional plywood to protect turf and landscape during crane mobilization
= $
2,584.00
-Remove 2,000 cubic yards of excess dirt (Reports 704-002-01 thru 704-002-32)
_ $
39,555.00
-Flush drains on #4, #6, #1 , #9 (Report 704-01 1-01)
_ $
1 ,280.00
-Remove Line Item #15 for pressure washing existing drains
= ($
33,362.00)
-Install two 8" drains in #6 native area (Report 704-013-001
=
$750.00
Original Contract Amount Through Change Order No.3 $519,030.00
Add This Change Order No. 4 $18,607.00
Revised Contract Total $537,637.00
By reason of this contract change order the time of completion is adjusted as follows:
The original contract completion date was December 23, 2005. The revised contract completion date shall be January 10, 2006.
Submitted By:
Approved By:
Date:
Date:
We, the undersigned Contractor, have given careful consideration to the change proposed and hereby agree, if this proposal is
approved, that we will provide all equipment, furnish all materials, perform all labor, except as may be noted above, and perform all
services necessary to complete the above specified work, and hereby accept as full payment the amount shown above, which
includes all direct and indirect overhead expenses for any delays.
Accepted By:
Title: Construction Manaqer
Contractor: Landscapes Unlimited Date:
T:\PWDEPT\PROJECTS\2—CONSI-RUCTION\2002-07 L Grading Drainage Improvements\CCO 4.doc
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COUNCIL/RDA MEETING DATE: February 7, 2006
ITEM TITLE: Approval of an Amendment to the
Exclusive Negotiation Agreement by and Between DDC
Desert Development, Inc. and the La Quinta
Redevelopment Agency for Developable Parcels within
SilverRock Resort
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
3—
Approve Amendment No. 1 to the Exclusive Negotiation Agreement between the La
Quinta Redevelopment Agency and DDC Desert Development, Inc. for the design and
development of the resort and retail sites located at SilverRock Resort and authorize the
Agency Chair to execute the required documents.
FISCAL IMPACT:
None.
BACKGROUND AND OVERVIEW:
On April 4, 2005 the Agency and DDC Desert Development (DDC) entered into an
Exclusive Negotiation Agreement (ENA) that established a 180 period wherein both
entities would exclusively work to define the resort and related uses for the
SilverRock Resort properties, and develop a disposition development agreement
that outlines property disposition and development responsibilities. The ENA
included the following business points:
• The scope encompasses the SilverRock Resort property that is designated for
private hotel, casita and commercial uses, the second golf course/permanent
clubhouse, and the area designated for park use located southeast of the
Avenue 52 and Jefferson Street traffic circle.
Established a 180 day exclusive negotiation period as follows:
>- During the first 90 days the Agency and DDC undertook precise planning
activities that defined the type, location, style, and phasing of the resort and
associated uses. To insure Agency Board and community input, three
workshops were scheduled to: workshop 1 - solicit ideas, workshop 2 —
review, critique and refine their interpretation by the DDC's
planners/architects, and workshop 3 - review and accept a precise plan. All
planning activities were managed by DDC, who also funded all costs
associated with retaining the required professional services.
During the second 90 days the Agency and DDC initiated negotiations
regarding the financial parameters associated with this transaction and
related business points. These items were subsequently reviewed with the
Agency Board.
• A $100,000 deposit by DDC to the Agency that is funding Agency legal counsel
and consultant costs related to reviewing/generating materials, negotiating
business points and the required property disposition and development
documents, and preparing a disposition and development agreement. Deposit
funds that are not used for these costs will be refunded to DDC if the ENA is
terminated or at the time a disposition and development agreement is approved
and executed by the Agency.
• During the 180 day exclusive negotiation period, DDC may not pursue the
acquisition or development of any hospitality property within a 10 mile radius of
SilverRock Resort without first receiving approval for the Agency Executive
Director.
The ENA also authorized the Executive Director to extend the negotiating period for an
additional 120 days. Three extensions were granted:
• June 2005 - a 35 day extension to accommodate Study Session discussions
wherein the Agency Board reviewed and on June 15, 2005, approved, the
concept/site plan.
• November 2005 - a 54 day extension to accommodate review of the
condominium hotel structure.
• January 2006 - a 31 day extension to accommodate site tours and business point
development.
Per the ENA the Executive Director may not extend the exclusive negotiation period; a
formal amendment is required to extend the exclusive negotiation period. Since
negotiations continue and both the Agency and DDC are at a point where Agency legal
counsel will be drafting the disposition and development agreement, staff is
recommending that the exclusive negotiating period be extended until June 30, 2006.
The attached Amendment No. 1 to the Exclusive Negotiation Agreement would
accomplish this task.
FINDINGS AND ALTERNATIVES:
Alternatives available to the Agency Board include:
1. Approve Amendment No. 1 to the Exclusive Negotiation Agreement between
the La Quinta Redevelopment Agency and DDC Desert Development, Inc. for
the design and development of the resort and retail sites located at
SilverRock Resort and authorize the Agency Chair to execute the required
documents; or
2. Do not approve Amendment No. 1 to the Exclusive Negotiation Agreement
between the La Quinta Redevelopment Agency and DDC Desert
Development, Inc. for the design and development of the resort and retail
sites located at SilverRock Resort and authorize the Agency Chair to execute
the required documents; or
3. Provide staff with alternative direction.
Respectfully submitted,
���..,.
Thomas P. Genovese
Executive Director
Attachments: 1. Amendment No. 1
ATTACHMENT 1
AMENDMENT NO. I TO EXCLUSIVE NEGOTIATION AGREEMENT
THIS AMENDMENT NO. 1 TO EXCLUSIVE NEGOTIATION AGREEMENT
("Amendment No. I") is made and entered into as of February _, 2006 by and between LA
QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic ("Agency"), and
DDC DESERT DEVELOPMENT, INC., a California corporation ("Developer").
RECITALS:
A. On or about April 4, 2005, the Agency and Developer entered into that certain
Exclusive Negotiation Agreement (the "ENA"), pursuant to which Agency and Developer
agreed to initiate exclusive negotiations for up to one hundred eighty (180) days concerning the
possible sale by Agency to Developer of certain real property owned in fee by the Agency for the
Developer's subsequent development thereon of a commercial project, all as more fully
described in the ENA.
B. Pursuant to authority granted in the ENA, the Agency's Executive Director has
extended the "Negotiation Period" and, hence, the "End Date" (as those terms are defined in the
ENA), on three (3) separate occasions, for a cumulative total of one hundred twenty (120) days,
until January 31, 2006.
C. The Developer has now completed all of the tasks required to be completed as
part of the "First Due Diligence Period." Developer and Agency now wish to extend the "Second
Due Diligence Period" (as that term is defined in the ENA) to provide the Developer with
additional time to complete the tasks required to be completed as part of the Second Due
Diligence Period.
AGREEMENT:
NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated
herein by this reference, and for valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto agree as follows:
1. The ENA is hereby amended to extend the Second Due Diligence Period until June 30,
2006.
2. Except as otherwise expressly provided in this Amendment No. 1, all of the terms and
conditions of the ENA shall remain in full force and effect.
3. In the event of any action between Agency and Developer seeking enforcement of any of
the terms and conditions to this Amendment No. 1, the prevailing party in such action shall be
awarded, in addition to damages, injunctive or other relief, its reasonable costs and expenses,
including without limitation its expert witness fees and reasonable attorney's fees.
882/015610-0084
679900.01 a02/02/06 " 1-
4. This Amendment No. 1 shall be construed according to its fair meaning and as if
prepared by both parties hereto.
5. This Amendment No. 1 shall be governed by the internal laws of the State of California
and any question arising hereunder shall be construed or determined according to such law. The
Municipal and Superior Courts of the State of California in and for the County of Riverside, or
such other appropriate court in such county, shall have exclusive jurisdiction of any litigation
between the parties concerning this Amendment No. I. Service of process on Agency shall be
made in accordance with California law. Service of process on Developer shall be made in any
manner permitted by California law and shall be effective whether served inside or outside
California.
6. Time is of the essence of this Amendment No. 1 and of each and every term and
provision hereof.
7. This Amendment No. 1 may be executed in counterparts, each of which, when this
Amendment No. 1 has been signed by all the parties hereto, shall be deemed an original, and
such counterparts shall constitute one and the same instrument.
[End — Signature Page Follows]
882/015610-0084
679900.01 a02/02/06
IN WITNESS WHEREOF, Agency and Developer each hereby represents that it has read
this Amendment No. 1, understands it, and hereby executes this Amendment No. I to be
effective as of the day and year first written above.
"Developer"
DDC DESERT DEVELOPMENT, INC.,
a California corporation
Date: 12006
Its:
"Agency"
LA QUINTA REDEVELOPMENT AGENCY,
a public body, corporate and politic
Date: 12006 By:
Agency Chair
ATTEST:
June Greek, Agency Secretary
APPROVED AS TO FORM:
RUTAN & TUCKER, LLP
Mon
M. Katherine Jenson, Agency Counsel
882/015610-0084
679900.01 a02/02/06 3
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COUNCIL/RDA MEETING DATE:
February 7, 2006
Approval of the Third Amendment to the
Affordable Housing Rehabilitation Agreement By
and Among the La Quinta Redevelopment Agency
and Mauka View, L.L. C. (James Sorensen,
Managing Member) Pertaining to a 26-Unit
Apartment Complex Located at 51-025 Through
51-085 Avenida Martinez and Authorize the
Executive Director to Sign the Documents
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: �i-
T
STUDY SESSION:
PUBLIC HEARING:
Approve the Third Amendment to the Affordable Housing Rehabilitation Agreement
that releases a 10,000 square foot parcel from Agency affordability covenants and
reallocates remaining Agency loan funds to complete additional improvements at
the 26-unit apartment complex, and authorize the Executive Director to execute the
necessary documents.
FISCAL IMPACT:
None. The Agency previously appropriated $350,000 to fund the property
purchase and rehabilitation activities; $252,680 of this amount has been expended
to date. The Third Amendment does not result in the expenditure of additional
Agency funds.
BACKGROUND AND OVERVIEW:
On September 13, 2001, the Agency entered into an Affordable Housing
Rehabilitation Agreement with Lawrence Rael (La Quinta 34, L.L.C.) that funded a
$350,000 loan to increase off-street parking and rehabilitate a 34-unit apartment
complex located southeast of the intersection of Eisenhower Drive and Calle
Tampico. Agency funds were also designated to purchase an adjoining 10,000
square foot property that would be improved with off-street parking and carports,
increasing the complex's off-street parking inventory. In return, the Agency
secured 14 units as rental housing affordable to moderate -income households for
55 years.
1k
Mr. Rael subsequently sold the apartment complex to James Sorenson and the
Agreement was amended to facilitate this transaction, and to reallocate Agency
loan funds to develop the adjacent 10,000 square foot parcel with six multi -family
units. This lot was initially going to accommodate off-street parking, but the fire
resulted in the demolition of structures. This land area was improved with off-
street parking.
Mr. Sorenson contacted Agency staff last November requesting that the 10,000
square foot lot be released from the affordability covenants; he could not obtain
financing to construct the six unit complex since none of the units were slated to
be affordable. However, since this lot was part of the initial transaction,
affordability restrictions were recorded against this property. The Third
Amendment removes the affordability restrictions while reallocating funds to
underwrite additional improvements to the 26-unit complex that houses the 14
affordable units,.
To date $252,680 of the $350,000 loan proceeds have been disbursed; $97,320
remain. These funds will be allocated to complete HVAC, kitchen, bathroom, and
interior painting improvements. Attachment 5 of the attached Agreement details
these improvements.
FINDINGS AND ALTERNATIVES:
Alternatives available to the Agency Board include:
1. Approve the Third Amendment to the Affordable Housing Rehabilitation
Agreement that releases a 10,000 square foot parcel from Agency
affordability covenants and reallocates remaining Agency loan funds to
complete additional improvements at the 26-unit apartment complex, and
authorize the Executive Director to execute the necessary documents; or
2. Do not approve the Third Amendment to the Affordable Housing
Rehabilitation Agreement that releases a 10,000 square foot parcel from
Agency affordability covenants and reallocates remaining Agency loan funds
to complete additional improvements at the 26-unit apartment complex, and
do not authorize the Executive Director to execute the necessary documents;
or
3. Provide staff with alternative direction.
Respectfully submitted,
..
Douglas Evans
Community Development Director
Approved for submission:
z
Thomas P. Genovese, Executive Director
Attachment: 1 . Third Amendment
'THIRD AMENDMENT TO AFFORDABLE HOUSING
REHABILITATION AGREEMENT
This THIRD AMENDMENT TO AFFORDABLE HOUSING REHABILITATION
AGREEMENT ("Third Amendment") is entered into as of this 7th day of
February, 2006, by and between the LA QUINTA
REDEVELOPMENT AGENCY, a public body, corporate and politic ("Agency"), and MAUKA
VIEW, LLC, a California limited liability company ("Participant").
RECITALS
A. Agency and Participant are parties to that certain Affordable Housing
Rehabilitation Agreement dated September 13, 2001, as amended by that certain First
Amendment to Affordable Housing Rehabilitation Agreement dated December 17, 2002, and
that certain Second Amendment to Affordable Housing Rehabilitation Agreement dated April 7,
2004 (collectively, the "Existing Housing Agreement").
B. The Existing Housing Agreement provides for Participant, with certain financial
assistance provided by Agency from Agency's Low and Moderate Income Housing Fund, to
rehabilitate that certain real property more particularly described therein as the "Site." In
consideration for Agency's provision of financial assistance to Participant, Participant is required
to restrict fourteen (14) of the rental units on the Site to occupancy by moderate income
households at an affordable rent.
C. Participant and Agency desire to enter into this Third Amendment to (1) provide
for the release a portion of the Site from the Existing Housing Agreement and certain other
related agreements, (ii) modify the improvements Participant is required to construct and install
on the Site, and (iii) provide for Agency to periodically forgive apot-tionnortions of the
Rehabilitation Loan every six «) yeafsupon completion of the Proiect provided no defaults or
other events of acceleration have occurred, all on the terms and conditions set forth herein.
AGREEMENT
Based upon the foregoing Recitals, which are incorporated herein by this reference, and
for good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged by Agency and Participant, the parties hereto agree as follows:
1. Defined Terms. Any capitalized terms contained in this Third Amendment which
are not defined herein shall have the meaning given in the Existing Housing Agreement, unless
expressly provided to the contrary.
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660579.03 a01/23/06
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2. 3--Release of Acquisition Parcels. The Site is comprised of the "Apartment
Parcel" which is improved with an apartment complex, and the "Acquisition Parcels" which are
unimproved. Agency has agreed, at Participant's request, to release the Acquisition Parcels from
the Existing Housing Agreement and from the following additional agreements entered into by
Agency and Participant or Participant's predecessor and recorded against the Site pursuant to the
Existing Housing Agreement (collectively, the "Additional Housing Agreements"): (1) the
Declaration, which provides for the parcels comprising the Site to be held under common
ownership; (ii) the Regulatory Agreement, which places covenants on the use and operation of
the Site to ensure that the Site is operated as a rental housing project with fourteen (14) units
rented and occupied by moderate income households at affordable rent; (iii) the Agency Deed of
Trust securing the obligations under the Agency Note; and (iv) the Memorandum of Assignment
and Assumption Agreement, memorializing Participant's assumption of the Existing Housing
Agreement and the foregoing agreements from Participant's predecessor.
In order to effectuate the release of the Acquisition Parcels from the Existing Housing
Agreement, the references in the Existing Housing Agreement to the term "Site" shall be deemed
to refer only to the Apartment Parcel.
In order to effectuate the release of the Acquisition Parcels from the Additional Housing
Agreements, Agency and Participant shall enter into the following agreements: (1) the
Amendment to Declaration of Covenants, Conditions, and Restrictions and Agreement to Hold
Property as One Parcel in the form attached hereto as Attachment No. 1; (ii) the Amendment to
Regulatory Agreement and Declaration of Covenants and Restrictions in the form attached
hereto as Attachment No. 2; and (iii) the Partial Reconveyance of Deed of Trust and Partial
Ten-nination of Memorandum in the form attached hereto as Attachment No. 3. Concurrently
with the execution of this Third Amendment, Participant shall execute and deliver to Agency the
foregoing agreements,, and; Agency shall within ten (10) days aftef the Opefative Date, Ageney
&4a,14thereafter execute t#eand submit said agreements and cause thelilto the Riverside
County Recorder"s Office to be recorded in the Official Records of Riverside, California.
3. 4-Project; Scope of Development. Agency and Participant have agreed to modify
the improvements that Participant is required to construct and install. In order to effectuate this
modification, the Scope of Development attached to the Existing Housing Agreement as Exhibit
"C" is hereby replaced with Exhibit "C" (revised) attached to this Third Amendment as
Attachment No. 4, and all references in the Existing Housing Agreement to the term "Project"
shall be deemed to refer to the installation and construction of the improvements described in
said revised exhibit. Notwithstanding any provision in the Existing Housing Agreement to the
contrary, Participant shall complete the Project no later than December 31, 2006.
A
538015610-0040
660579.03 a01/23/06
4. Rehabilitation Loan.
5-44.1 Use of Rehabilitation Loan. Participant shall be permitted to use the
Rehabilitation Loan proceeds only for the improvements set forth in the Scope of Development
attached to this Third Amendment as Attachment No. 4. The maximum amount of
Rehabilitation Loan proceeds that may be used for each improvement is set forth in the Project
Budget; provided, however, that the Executive Director shall have the authority in his sole and
absolute discretion to reallocate the amount of Rehabilitation Loan proceeds that may be used for
each improvement if the actual amounts incurred by Participant are different than the cost
estimates set forth in the Project Budget. The term "Project Budget" refers to the cost estimates
for the Project set forth in Attachment No. 5 to this Third Amendment. The Project Budget may
not be materially changed without the prior written approval of the Executive Director (a
material change is a change that causes the total Project costs to increase or decrease from what
is shown in the Project Budget, or that causes any of the line items in the Project Budget to
increase or decrease by more than 5%). If the total Project costs are less than the Rehabilitation
Loan, the Executive Director shall have the authority to approve additional improvements to the
Apartment Parcel for which the Rehabilitation Loan may be used, with the understanding,
however, that Participant shall have no right to expect that Agency will approve any such
additional improvements for which the Rehabilitation Loan may be used.
Prior to the date of this Third Amendment, Agency disbursed a portion of the
Rehabilitation Loan in the amount of Two Hundred Five Thousand Five Hundred Seventy -One
Dollars ($205,571) to Participant and Participant's predecessor for the acquisition and
rehabilitation of the Acquisition Parcels ("Acquisition Parcels Disbursed Loan Amount").
Participant has constructed certain improvements on the Apartment Parcel, and agreed to
construct certain additional improvements on the Apartment Parcel, which were not required of
Participant in the Existing Housing Agreement, which improvements are included in the Scope
of Development attached to this Third Amendment as Attachment No. 4. In consideration for
Participant's construction of such improvements, Agency has agreed that Participant shall not be
required to return the Acquisition Parcels Disbursed Loan Amount to Agency upon the release of
the Acquisition Parcels from the Existing Housing Agreement, and that the Acquisition Parcels
Disbursed Loan Amount shall instead be allocated to, and deemed to have been disbursed for,
the Project improvements made to the Apartment Parcel.
5-14.2 Forgiveness of Rehabilitation Loan; Modification of Agency Note. The
Agency Note provides for the Rehabilitation Loan and accrued interest to be forgiven in its
entirety upon the expiration of the term of the Regulatory Agreement provided no defaults or
other events of acceleration have occurred. Participant has requested and Agency has agreed to
modify the Agency Note to provide for periodic reductions in the amount of the Rehabilitation
Loan owing to Agency, such that if an event of acceleration were to occur, Participant would pay
to Agency only the portion of the Rehabilitation Loan that had not been forgiven as of the date of
the event of acceleration. Concurrently with the execution of this Amendment, Participant shall
execute and deliver to Agency the Second Allonge to Note in the form attached hereto as
Attachment No. 6, which generally provides for which generally provides for Agency—,-E�
Ao. «) yeafs,to forgive, upon completion of the Project, a portion of the Rehabilitation
Loan in the amount of Fifty -Eight Thousand Three
Hundred Thirty -Three Dollars (S58,333) plus all interest accrued on the entire
538 015610-0040 0
660579.03 a01!33i06 —3
Rehabilitation Loan, and to forgive each year thereafter a portion of the Rehabilitation
Loan in the amount of Eleven Thousand and Sixty -Seven Dollars ($11,677) plus all accrued
interest. Concurrently with the execution of this Third Amendment, Participant shall execute
and deliver to Agency the Second Allonge to Note and, within ten (10) days aftef the Operative
Datethereafter, Agency shall execute the Second Allonge to Note and affix the Second Allonge
to Note to the Agency Note and it shall be made a part thereof.
5. �-F'ull Force and Effect; Conflicts. Except as expressly set forth in this Third
Amendment, all terms, conditions, and provisions of the Existing Housing Agreement shall
remain in full force and effect. If there is a conflict between the provisions of this Third
Amendment and the provisions of the Existing Housing Agreement, the provisions of this Third
Amendment shall control.
6. 7-.--Execution and Counterparts. This Third Amendment may be executed in
several counterparts, and all so executed shall constitute one agreement binding on both parties
hereto, notwithstanding that both parties are not signatories to the original or the same
counterpart
7. 8—Attachments. The following exhibits are attached to this Third Amendment
and made a part hereof:
Attachment No. 1
Amendment to Declaration of Covenants, Conditions, and
Restrictions and Agreement to Hold Property as One Parcel
Attachment No. 2
Amendment to Regulatory Agreement and Declaration of
Covenants and Conditions
Attachment No. 3
Partial Reconveyance of Deed of Trust and Partial Release of
Memorandum
Attachment No. 4
Scope of Development
Attachment No. 5
Project Budget
Attachment No. 6
Second Allonge to Note
[signatures on next page]
538, 015610-0040 n
060579.03 a01 %23/06 � `"` 40
IN WITNESS WHEREOF, Agency and Participant have entered into this Third
Amendment as of the date first set forth above.
ATTEST:
Agency Secretary
APPROVED AS TO FORM:
RUTAN & TUCKER, LLP
Attorneys for the La Quinta
Redevelopment Agency
"AGENCY"
LA QUINTA REDEVELOPMENT AGENCY, a
public body, corporate and politic
M
Executive Director
"PARTICIPANT"
MAUKA VIEW, LLC, a California limited
liability company
M
James S. Sorenson, on behalf of the Sorenson
Family 2001 Revocable Trust, Member
538,015610-0040
660579.03 a01133/06 -5-
ATTACHMENT NO. I
AMENDMENT TO DECLARATION OF COVENANTS, CONDITIONS,
AND RESTRICTIONS AND AGREEMENT TO HOLD PROPERTY AS ONE PARCEL
[Attached]
538 015610-0040
000579.03 a01/2306
RECORDED AT THE REQUEST OF
AND WHEN RECORDED RETURN TO:
La Quinta Redevelopment Agency
78-495 Calle Tampico
La Quinta, CA 922.53
Attn: Agency Secretary
(SPACE ABOVE FOR RECORDFR's USE)
This Amendment to Declaration of Covenants,
Conditions and Restrictions and Agreement to Hold
Property as One Parcel is recorded at the request and for
the benefit of the La Quinta Redevelopment Agency and
is exempt from the payment of a recording fee pursuant
to Government Code Section 27383.
AMENDMENT TO DECLARATION OF COVENANTS, CONDITIONS,
AND RESTRICTIONS AND AGREEMENT TO HOLD PROPERTY AS ONE PARCEL
This AMENDMENT TO DECLARATION OF COVENANTS, CONDITIONS, AND
RESTRICTIONS AND AGREEMENT TO HOLD PROPERTY AS ONE PARCEL
("Amendment") is entered into as of this day of , 2006, by and
between the LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic
("Agency"), and NIAUKA VIEW, LLC, a California limited liability company ("Declarant").
RECITALS
A. Agency and Declarant are parties to that certain Declaration of Covenants,
Conditions, and Restrictions and Agreement to Hold Property as One Parcel dated September 13,
2001, recorded on September 28, 2001, as Instrument Number 2001-474255 in the Official
Records of Riverside County, California ("Original Declaration"), relating to that certain real
property located in the City of La Quinta, County of Riverside, State of California, more
particularly described therein as the "Property." The Original Declaration provides for the
parcels comprising the Property to be held under common ownership.
B. Declarant and Agency desire to amend the Original Declaration to provide for the
release of certain parcels from the Original Declaration, on the terms set forth herein.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing Recitals and for good and
valuable consideration, the receipt and sufficiency of which is acknowledged by Agency and
Declarant, the parties hereto agree as follows:
1. Release of Portion of Property from Declaration. Agency and Declarant hereby
release the following portion of the Property ("Released Parcels") from the terms and conditions
538/015610-0040
660579.03 a01 /23/06 -1 -
of the Original Declaration and agree that the Original Declaration shall no longer constitute an
encumbrance upon title to the Released Parcels:
Lots 6 and 7 in Block 125 of Santa Carmelita at Vale La Quinta Unit No. 14, as
shown by map recorded in Book 18, Page 82 of Maps, Records of Riverside
County, California.
In connection with the foregoing, all references to the term "Property" in the Original
Declaration shall be deemed to refer only to the remainder of the Property, which is described
below, and such remainder property shall continue to be subject to the terms and conditions of
the Original Declaration, as amended by this Amendment, including without limitation the
requirement that the parcels be held under common ownership:
Lots 1 to 11 inclusive in Block 126 of Santa Carmelita at Vale La Quinta, Unit
No. 14, in the City of La Quinta, County of Riverside, State of California, as per
Map recorded in Book 18 Pages 82 and 83 of Maps, in the Office of the County
Recorder of said County.
Exception therefrom those portions of Lots 1, 5, 6 and 11, deeded to the County
of Riverside, by documents recorded March 23, 1978 as Instrument Nos. 55038
and 55039 of Official Records of Riverside County, California.
2. Full Force and Effect; Conflicts. Except as expressly set forth in this
Amendment, all terms, conditions, and provisions of the Original Declaration shall remain in full
force and effect. If there is a conflict between the provisions of this Amendment and the
provisions of the Original Declaration, the provisions of this Amendment shall control.
3. Execution in Counterparts. This Amendment may be executed in several
counterparts, and all so executed shall constitute one agreement binding on both parties hereto,
notwithstanding that both parties are not signatories to the original or the same counterpart.
[signatures on next page]
fr
538,015610-0040
600579.03 a011'23/06 2
IN WITNESS WHEREOF, Agency and Declarant have entered into this Amendment as
of the date first set forth above.
ATTEST:
Agency Secretary
APPROVED AS TO FORM:
RUTAN & TUCKER, LLP
Attorneys for the La Quinta
Redevelopment Agency
"AGENCY"
LA QUINTA REDEVELOPMENT AGENCY, a
public body, corporate and politic
M
Executive Director
"DECLARANT"
MAUKA VIEW, LLC, a California limited
liability company
Io
James S. Sorenson, on behalf of the Sorenson
Family 2001 Revocable Trust, Member
538/015610-0040
660579.03 a01123/06 —�—
STATE OF CALIFORNIA
COUNTY OF
On
personally appeared
ss
1
, before me,
personally known to me (or proved to me on the basis of satisfactory evidence) to be the
person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s)
acted, executed the! instrument.
Witness my hand and official seal.
[SEAL]
STATE OF CALIFORNIA
COUNTY OF
On
personally appeared
Notary Public
ss
, before me,
personally known to me (or proved to me on the basis of satisfactory evidence) to be the
person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s)
acted, executed the instrument.
Witness my hand and official seal.
Notary Public
[SEAL]
53 8,'015 610-0040
660579.03 a01/23!06 `�
ATTACHMENT NO. 2
AMENDMENT TO REGULATORY AGREEMENT
AND DECLARATION OF COVENANTS AND RESTRICTIONS
[Attached]
538/015610-0040
600579.03 a01/23i06
RECORDED AT THE REQUEST OF
AND WHEN RECORDED RETURN TO:
La Quinta Redevelopment Agency
78-495 Calle Tampico
La Quinta, CA 92253
Attn: Agency Secretary
(SPA('L, AE30VE FOR RECORDER'S USG)
This Amendment to Regulatory Agreement and
Declaration of Covenants and Restrictions is recorded at
the request and for the benefit of the La Quinta
Redevelopment Agency and is exempt from the payment
of a recording fee pursuant to Government Code Section
27383.
AMENDMENT TO REGULATORY AGREEMENT
AND DECLARATION OF COVENANTS AND RESTRICTIONS
This AMENDMENT TO REGULATORY AGREEMENT AND DECLARATION OF
COVENANTS AND RESTRICTIONS ("Amendment") is entered into as of this day of
, 2006, by and between the LA QUINTA REDEVELOPMENT
AGENCY, a public body, corporate and politic ("Agency"), and MAUKA VIEW, LLC, a
California limited liability company ("Participant").
RECITALS
A. Agency and Participant are parties to that certain Regulatory Agreement and
Declaration of Covenants and Restrictions dated September 13, 2001, recorded on September 28,
2001, as Instrument No. 2001-474254 in the Official Records of Riverside, California, which
places covenants on the use and operation of that certain real property more particularly
described therein as the "Site" providing for the Site to be operated as a rental housing project
with fourteen (14) units rented to moderate income households at an affordable rent ("Original
Regulatory Agreement").
B. Participant and Agency desire to amend the Original Regulatory Agreement to
provide for the release of certain parcels from the Original Regulatory Agreement, on the terms
set forth herein.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing Recitals and for good and
valuable consideration, the receipt and sufficiency of which is acknowledged by Agency and
Participant, the parties hereto agree as follows:
1. Defined Terms. Unless expressly provided to the contrary, any capitalized terms
contained in this Amendment which are not defined herein shall have the meaning given in the
Original Regulatory Agreement.
538M 15610-0040
t
600579.03 a01!23/06 -1 -
2. Release of Portion of Site from Regulatory Agreement Agency and Participant
hereby release the following portion of the Site ("Released Parcels") from the terms and
conditions of the Original Regulatory Agreement and agree that the Original Regulatory
Agreement shall no longer constitute an encumbrance upon title to the Released Parcels:
Lots 6 and 7 in Block 125 of Santa Carmelita at Vale La Quinta Unit No. 14, as
shown by map recorded in Book 18, Page 82 of Maps, Records of Riverside
County, California.
In connection with the foregoing, all references to the term "Site" in the Original
Regulatory Agreement shall be deemed to refer only to the remainder of the Site, which is
described below ("Remainder Parcels"):
Lots I to I inclusive in Block 126 of Santa Carmelita at Vale La Quinta, Unit
No. 14, in the City of La Quinta, County of Riverside, State of California, as per
Map recorded in Book 18 Pages 82 and 83 of Maps, in the Office of the County
Recorder of said County.
Exception therefrom those portions of Lots 1, 5, 6 and 11, deeded to the County
of Riverside, by documents recorded March 23, 1978 as Instrument Nos. 55038
and 55039 of Official Records of Riverside County, California.
Participant acknowledges and agrees that all fourteen (14) Restricted Units shall be
located on the Remainder Parcels.
3. Term_. Agency and Participant desire to modify the Original Regulatory
Agreement to provide for the term to expire on the date that is thirty (30) years after the
recordation of the Original Regulatory Agreement. In order to effectuate this modification, the
words "the Release of Covenants for the Site in accordance with the AHRA" in the paragraph
immediately preceding Section 1 of the Original Regulatory Agreement is hereby modified to
read "this Agreement ...."
4. Agency Agreements. The references to the Agency Agreements in the Original
Agreement shall be deemed to include all existing and future amendments to said agreements.
5. Full Force and Effect; Conflicts. Except as expressly set forth in this
Amendment, all terms, conditions, and provisions of the Original Regulatory Agreement shall
remain in full force and effect. If there is a conflict between the provisions of this Amendment
and the provisions of the Original Regulatory Agreement, the provisions of this Amendment
shall control.
6. Execution in Counterparts. This Amendment may be executed in several
counterparts, and all so executed shall constitute one agreement binding on both parties hereto,
notwithstanding that both parties are not signatories to the original or the same counterpart.
[signatures on next page]
538 015010-0040 -2-
660579.03 a01/23%06
IN WITNESS WHEREOF, Agency and Participant have entered into this Amendment as
of the date first set forth above.
ATTEST:
Agency Secretary
APPROVED AS TO FORM:
RUTAN & TUCKER, LLP
Attorneys for the La Quinta
Redevelopment Agency
"AGENCY"
LA QUINTA REDEVELOPMENT AGENCY, a
public body, corporate and politic
M
Executive Director
"PARTICIPANT"
MAUKA VIEW, LLC, a California limited
liability company
M
James S. Sorenson, on behalf of the Sorenson
Family 2001 Revocable Trust, Member
538/015610-0040
660579.03 a01/23/06 _3
STATE OF CALIFORNIA )
) ss
COUNTY OF
On
personally appeared
, before me,
personally known to me (or proved to me on the basis of satisfactory evidence) to be the
person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s)
acted, executed the. instrument.
Witness my hand and official seal.
[SEAL]
STATE OF CALIFORNIA )
) ss
COUNTY OF
On
personally appeared
Notary Public
, before me,
personally known to me (or proved to me on the basis of satisfactory evidence) to be the
person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s)
acted, executed the instrument.
Witness my hand and official seal.
Notary Public
[SEAL]
538,01-610-0040
660579.03 a01/23/06 —�—
ATTACHMENT NO.3
PARTIAL RECONVEYANCE OF DEED OF TRUST
AND PARTIAL RELEASE OF MEMORANDUM
[Attached]
538,015610-0040
660579.03 a01/23/06
RECORDED AT THE REQUEST OF
AND WHEN RECORDED RETURN TO:
La Quinta Redevelopment Agency
78-495 Calle Tampico
La Quinta, CA 92253
Attn: Agency Secretary
Space above this line for Recorder's use only
This Partial Reconveyance of Deed of Trust and
Partial Release of Memorandum is recorded at the
request and for the benefit of the La Quinta
Redevelopment Agency and is exempt from the
payment of a recording fee pursuant to Government
Code Section 27383.
PARTIAL RECONVEYANCE OF DEED OF TRUST
AND PARTIAL RELEASE OF MEMORANDUM
This PARTIAL RECONVEYANCE OF DEED OF TRUST AND PARTIAL RELEASE
OF MEMORANDUM ("Partial Reconveyance") is entered into as of this day of
2006, by and between the LA QUINTA REDEVELOPMENT
AGENCY, a public body, corporate and politic ("Agency"), and MAUKA VIEW, LLC, a
California limited Viability company ("Owner").
RECITALS
A. Owner is the owner of that certain real property located in the City of La Quinta,
County of Riverside, State of California, more particularly described in Exhibit "A" attached
hereto ("Released Parcels") and Exhibit "B" attached hereto ("Remainder Parcels"). The
Remainder Parcels and the Released Parcels are collectively referred to herein as the "Site."
B. Owner is the trustor, Agency is the beneficiary, and Orange Coast Title Company
is the trustee, of that certain Deed of Trust With Assignment of Rents and Rider Attached Hereto
dated September 13, 2001, recorded against the Site on September 28, 2001, as Instrument No.
2001-474253 in the Official Records of Riverside County, California, as modified by that certain
Modification of Deed of Trust recorded against the Site on April 23, 2004, as Instrument No.
2004-301360 in the Official Records of Riverside County, California (collectively, the "Agency
Deed of Trust").
C. On or about April 7, 2004, Agency and Owner entered into that certain
Memorandum of Assignment and Assumption Agreement ("Mernorandum") recorded on April
23, 2004, as Instrument Number 2004-301361 in the Official Records of Riverside County,
California, memorializing Owner's assumption of certain agreements relating to the Site,
including the Agency Deed of Trust.
D. Agency and Owner have agreed to reconvey the Agency Deed of Trust as to the
Released Parcels and to release the Released Parcels from the Memorandum.
538,015610-0040
660579.03 a01/23%06
NOW, THEREFORE, Agency and Owner hereby agrees as follows:
1. Partial Reconveyance of Agency Deed of Trust. Effective upon the recordation of
this Partial Reconveyance, Agency, as the current beneficiary and owner and holder of the
Agency Deed of Trust hereby substitutes Agency as trustee under the Agency Deed of Trust, and
Agency hereby accepts said appointment as trustee under the Agency Deed of Trust and, as
successor trustee, pursuant to the request of said owner and holder and in accordance with the
provisions of the Agency Deed of Trust, does hereby reconvey to the person or persons legally
entitled thereto, all the estate, title and interest now held by it under the Agency Deed of Trust in
and to the Released Parcels, being a portion of the premises described in the Agency Deed of
Trust. Owner acknowledges and agrees that the foregoing reconveyance is a partial
reconveyance and that nothing herein is intended or shall be construed to reconvey the Agency
Deed of Trust as to the Remainder Parcels.
2. Release of Memorandum from Released Parcels. Effective upon the recordation
of this Partial Reconveyance, the Released Parcels shall be released from the Memorandum and
the Memorandum shall be removed as an encumbrance upon title to the Released Parcels.
Owner acknowledges and agrees that the nothing herein is intended or shall be construed to
release the Remainder Parcels from the Memorandum.
[signatures on next page]
538/015610-0040
000579.03 a01 /23/06 2
IN WITNESS WHEREOF, Agency and Owner have entered into this Partial
Reconveyance as of the date set forth above.
"AGENCY"
LA QUINTA REDEVELOPMENT AGENCY, a
public body, corporate and politic
Bv:
ATTEST:
Agency Secretary
APPROVED AS TO FORM:
RUTAN & TUCKER, LLP
Attorneys for the La Quinta
Redevelopment Agency
Executive Director
"OWNER"
MAUKA VIEW, LLC, a California limited
liability company
0
James S. Sorenson, on behalf of the Sorenson
Family 2001 Revocable Trust, Member
538/015610-0040
660579.03 a01!23/06
STATE OF CALIF'ORNIA )
) ss
COUNTY OF
On
personally appeared
, before me,
personally known to me (or proved to me on the basis of satisfactory evidence) to be the
person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s)
acted, executed the instrument.
Witness my hand and official seal.
[SEAL]
STATE OF CALIFORNIA )
) ss
COUNTY OF
On
personally appeared
Notary Public
, before me,
personally known to me (or proved to me on the basis of satisfactory evidence) to be the
person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s)
acted, executed the instrument.
Witness my hand and official seal.
Notary Public
[SEAL]
538/015610-0040
660579.03 a01/23/06 4
EXHIBIT "A" TO PARTIAL RECONVEYANCE
LEGAL DESCRIPTION OF RELEASED PARCELS
That certain property located in the City of La Quinta, County of Riverside, State of
California, described as follows:
LOTS 6 AND 7 IN BLOCK 125 OF SANTA CARMELITA AT VALE LA
QUINTA UNIT NO. 14, AS SHOWN BY MAP RECORDED IN BOOK 18,
PAGE 82 OF MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA.
53 Kro 15610-0040
060579.03 a01/23/06
EXHIBIT "B" TO PARTIAL RECONVEYANCE
LEGAL DESCRIPTION OF REMAINDER PARCELS
That certain property located in the City of La Quinta, County of Riverside, State of
California, described as follows:
LOTS 1 TO I INCLUSIVE IN BLOCK 126 OF SANTA CARMELITA AT
VALE LA QUINTA, UNIT NO. 14, IN THE CITY OF LA QUINTA, COUNTY
OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN
BOOK I8 PAGES 82 AND 83 OF MAPS, IN THE OFFICE OF THE COUNTY
RECORDER OF SAID COUNTY.
EXCEPTION THEREFROM THOSE PORTIONS OF LOTS 1, 5, 6 AND 11,
DEEDED TO THE COUNTY OF RIVERSIDE, BY DOCUMENTS
RECORDED MARCH 23, 1978 AS INSTRUMENT NOS. 55038 AND 55039
OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA.
i I.
538,'015610-0040
600579.03 a01/23/06
ATTACHMENT NO. 4
Exhibit "C" (revised)
SCOPE OF DEVELOPMENT
IMPROVEMENTS
Install 21 carports
COMPLETED
X
NOT
COMPLETED
Pave parking lot
X
Install patio enclosures in 26 units
X
Install Spanish the on roof
X
Install shower valves in 36 tubs/showers
X
Painting prep, fix roof drains and drainage
X
Install new carpet in 6 units
X
Replace 17 air conditioning units
13 units
4 units
Refurbish26 ts-tubs/showers in 26 units
Ceramic tile kitchens and bathrooms in 26 units
20 units
6 units
10 units
16 units
Paint inside of 26 units
22 units
4 units
Paint outside of building
X
Participant acknowledges and agrees that it is required to construct and install the foregoing
improvements whether or not the amount of the Rehabilitation Loan is sufficient to pay for the
costs of the improvements.
518'015610-0040
060�79.03 a01/23i06
ATTACHMENT NO. 5
PROJECT BUDGET
i>`WROVEMEE T1MPROVEMENT
BUDGETBu
DGET
COMPLETE
DCOMPLETED
COS-TCOST
BUDGF,TB
UDGET
REMAI
GREMAININ
G
Completed Improvements
Install 21 carports
$22,743
$22,743
so
-
Pave parking lot
$27,528
$27,528
so
-
Install patio enclosures in 26 units
$19,000
$19,000
s0
Install Spanish the on roof
$29,000
$29,000
s0
Install shower valves in 36 tubs/showers
S16146016,21
3
$161213
$2470
Painting prep, fig: roof drains and drainage
$30,36929,27
6
$29,276
Install new carpet in 6 units
$5898.955
$8,955
Improvements to be Completed
Replace 17 air conditioning units
$63,500
$48,218
$15,282
Refurbish 34-tubs/showers in 26 units
Ceramic tile kitchens and bathrooms in 26 units
$13,200
$9,223
$3,977
$31,200
$13,583
$17,617
Paint inside of 26 units
$22,000
$16,341
$5,659
Paint outside of building
$50,00049.88
5
$0
$50,00049,8
85
51 Project -Management Fee
$1715
$4 5-00
5° Project Mana ement Fee
17 500
JU,600
4 900
Total Estimated Costs
$350,000
$2521080252,6
80
$97992097,3
20
(r")10
538/015610-0040
060579.03 a01 /23!06
Agency has approved the costs listed in the "Completed Cost" column set forth above
which total $252,680. No later than ten days after the date of the Third Amendment to
Affordable Housing Rehabilitation Agreement, Agency shall reimburse Participant an
amount equal to $47,109 for the completed work (the difference between $252,680 and the
$205,571 Agency Rehabilitation Loan amount previously disbursed by Agency).
Disbursements of the balance of the Rehabilitation Loan shall be made in accordance with
the Disbursement Procedures set forth in the Existing Housing Agreement.
(205,57 1) it the n i
work completed ia-fatur-e will fequire invoices submitted by Pai4icipant and approved by City o
La Quinta Planning
•
S38/015610-0040
660579.03 a0l/23/06
ATTACHMENT NO. 6
SECOND ALLONGE TO NOTE
[Attached]
E
538/015610-0040
660579.03 a01/23106
SECOND ALLONGE TO NOTE
This SECOND ALLONGE TO NOTE ("Second Allonge") is affixed to and forms a part
of that certain Note dated September 13, 2001 and the Allonge to Note dated ,AQrjl 23,
2004, attached thereto (collectively, the "Note"), in the original principal amount of Three
Hundred Fifty Thousand Dollars ($350,000), issued by La Quinta 34 LLC, a California limited
liability company ("Original Maker"), whose interest under the Note was assigned to Mauka
View, LLC, a California limited liability company ("Maker"), and payable to the La Quinta
Redevelopment Agency ("Holder").
The Note is hereby endorsed and modified as follows:
(a) Provided Maker is not otherwise in default of the Note or any of the
Agency Agreements, upon completion of the Project, Agency shall forgive a portion
of the Note Amount in the amount of Fifty -Eight Thousand Three Hundred Thirty -
Three Dollars ($58,333) plus all interest accrued on the Note Amount as of that date.
Provided Maker is not otherwise in default of the Note or any of the Agency Agreements,
commencing on September 13, 2007, and on each s-one year anniversary thereafter, a
portion of the Note Amount in the amount of Eleven Thousand Sixty -Seven
Dollars ($ ,
Forgivable installment in the ametint of $66,500 shall be allocated towafd the pr-ineipal
1 1 6 / /
plus all accrued interest on the Note Amount shall be forgiven. If any of the events of
acceleration described in Paragraph 4 of the Note occur and Holder accelerates the Note,
the Note Amount payable by Maker shall not include the Forgivabile
instal mentsamounts that were forgiven prior to date the event of acceleration occurred.
(b) All references in the Note to the AHRA, the Agency Deed of Trust, the
Agency Regulatory Agreement, and the Declaration shall be deemed to refer to such
agreements as they may be amended from time to time.
Except as expressly modified by this Second Allonge to Note, the Note shall remain
unmodified and in full force and effect.
[signatures on next page]
C
538/015610-0040
660579.03 a01123,06
IN WITNESS WHEREOF, this Second Allonge to Note has been entered into as of this
day of 12006.
"MAKER"
MAUKA VIEW, LLC, a California limited liability
company
itz
James S. Sorenson, on behalf of the Sorenson
Family 2001 Revocable Trust, Member
"HOLDER"
LA QUINTA REDEVELOPMENT AGENCY, a
public body, corporate and politic
Executive Director
ATTEST:
Agency Secretary
APPROVED AS TO FORM:
RUTAN & TUCKER, LLP
Attorneys for the La Quinta
Redevelopment Agency
538;015610-0040
000579.03 a0l/23/06 2
r. _ h., nn KAnnrlav lani jary 23- 2006 09:07:51
Vu%aul 1 MAI It. vvi 1 lNu1-
Input:
Document 1
pcdocs://docs 1 /660579/2
Document 2
pcdocs://docs1/660579/3
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