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2006 02 21 RDAeaf 4 4 4AM 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, February 21, 2006 — 2:00 P.M. Beginning Resolution No. RA 2006-001 CALL TO ORDER Roll Call: Agency Board Members: Adolph, Henderson, 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 211, 20006 2. 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 1 . APPROVAL OF MINUTES OF FEBRUARY 7, 2006. 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 21, 2006. 2. TRANSMITTAL OF TREASURER'S REPORT FOR DECEMBER 31, 2005. 3. TRANSMITTAL OF REVENUE AND EXPENDITURES REPORT FOR DECEMBER 31, 2005. 4. APPROVAL OF CONTRACT CHANGE ORDER NOS. 1 AND 2 FOR PROJECT NO. 2005-10, AVENUE 52 STORM DRAIN IMPROVEMENTS. Redevelopment Agency Agenda 2 February 21, 20006 5. ADOPTION OF A RESOLUTION APPROVING A DEVELOPMENT AGREEMENT FOR PARKING MANAGEMENT TO ALLOW CONSTRUCTION OF A ± 10,709 GROSS SQUARE -FOOT, TWO-STORY RETAIL/OFFICE BUILDING, IN THE VILLAGE AT LA QUINTA, AS APPROVED UNDER DEVELOPMENT AGREEMENT 2005-008, AND VILLAGE USE PERMIT 2005-027. 6. ADOPTION OF A RESOLUTION APPROVING A DEVELOPMENT AGREEMENT FOR PARKING MANAGEMENT TO ALLOW CONSTRUCTION OF A ± 19,433 GROSS SQUARE -FOOT, TWO-STORY OFFICE BUILDING WITH A COFFEE BAR, IN THE VILLAGE AT LA QUINTA, AS APPROVED UNDER DEVELOPMENT AGREEMENT 2005-009, AND VILLAGE USE PERMIT 2005-032. 7. ACCEPTANCE OF PROJECT NO. 2002-07J, SilverRock RESORT IRRIGATION WELL SITE. 8. APPROVAL OF PROFESSIONAL SERVICES AGREEMENT WITH ECONOMICS RESEARCH ASSOCIATES FOR A 2006 LA QUINTA MARKET STUDY. BUSINESS SESSION CONSIDERATION OF CONCEPT DEVELOPMENT PLANS FOR A 218 UNIT MULTI -FAMILY RESIDENTIAL PROJECT LOCATED AT THE NORTHWEST CORNER OF DUNE PALMS ROAD AND AVENUE 48. APPLICANT: COACHELLA VALLEY HOUSING COALITION. A. MINUTE ORDER ACTION 2. CONSIDERATION OF MID -YEAR BUDGET REPORT FOR FISCAL YEAR 2005/2006. 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 March 7, 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 21, 20006 '' DECLARATION OF POSTING I, Deborah Powell, Acting City Clerk of the City of La Quinta, do hereby declare that the foregoing agenda for the La Quinta Redevelopment Agency meeting of February 21, 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 11 1, on February 17, 2006. DATED: February 17, 2006 DEBORAH POWELL, Acting City Clerk City of La Quinta, California Redevelopment Agency Agenda 4 February 21, 20006 AGENDA CATEGORY: COUNCIL/RDA MEETING DATE: February 21, 2006 CONSENT CALENDAR ITEM TITLE: STUDY SESSION Demand Register Dated February 21, 2006 PUBLIC HEARING RECOMMENDATION: It is recommended the Redevelopment Agency Board: Receive and File the Demand Register Dated February 21, 2006 of which $5,180,471.96 represents Redevelopment: Agency Expenditures. PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA AGENDA CATEGORY: COUNCIL/RDA MEETING DATE: February 21, 2006 BUSINESS SESSION: ITEM TITLE: Transmittal of Treasurer's Report as of December 31, 2005 CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: RECOMMENDATION: It is recommended the Redevelopment Agency Board: Receive and file,. PLEASE SEE RELATED BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA AGENDA CATEGORY: COUNCIL/RDA MEETING DATE: February 21, 2006 BUSINESS SESSION: ITEM TITLE: Transmittal of Revenue and Expenditure Reports dated December 31, 2005 CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: RECOMMENDATION: Receive and File. FISCAL IM PUCATIONS: None. CHARTER CITY IM PUCATIONS: None. BACKGROUND AND OVERVIEW: Transmittal of the December 31, 2005 Statement of Revenue and Expenditures for the La Quinta Redevelopment Agency. Respectfully submitted, John M. Falconer, Finance Director } Approved for submission by: Thomas P. Genovese, Executive Director Attachments: 1 . Revenue and Expenditures Report, December 31, 2005 2 ATTACHMENT 1 LA QUINTA REDEVELOPMENT AGENCY REMAINING REVENUE SUMMARY BUDGET RECEIVED BUDGET PROJECT AREA NO. 1: LOW/MODERATE BOND FUND: Allocated Interest 000 0.00 0.00 Home Sale Proceeds 0.00 0.00 0.00 Non Allocated Interest 0.00 0.00 0.00 Transfer In 0.00 0.00 0.00 TOTAL LOW/MOD BOND 0.00 0.00 0.00 LOW/MODERATE TAX FUND: Tax Increment 6,675,400.00 776,049.31 5,899,350.69 Allocated Interest 50,900.00 79,798,74 (28,898.74) Non Allocated Interest 0.00 0.00 0.00 Miscellaneous revenue 000 0.00 0.00 Non Allocated Interest 0.00 0.00 0.00 LQRP-Rent Revenue 276,000.00 116,392.50 159,607.50 Home Sales Proceeds 480,000.00 510,841,15 (30,841.15) Sale of Land 0.00 0.00 0.00 Sewer Subsidy Reimbursements 0.00 50,304.05 (50,304.05) Rehabilitation Loan Repayments 0.00 30,706.63 (30,706.63) 2nd Trust Deed Repayment 0.00 928,183.07 (928,183.07) Transfer In 0.00 0.00 0.00 TOTAL LOW/MOD TAX 7,482,300.00 2,492,275.45 4,990,024.55 DEBT SERVICE FUND: Tax Increment 26,701,600.00 3,104,197.23 23,597,402.77 Allocated Interest 93,100.00 155,896.56 (62,796.56) Non Allocated Interest 0.00 0.00 0.00 Interst - County Loan 0.00 0.00 0.00 Interest Advance Proceeds 0.00 0.00 0.00 Transfers In 3,945,802.00 1,982,532.01 1,963,269.99 TOTAL DEBT SERVICE 30,740,502.00 5,242,625.80 25,497,876.20 CAPITAL IMPROVEMENT FUND - NON-TAXABLE Pooled Cash Allocated Interest 12,500 00 75,824.60 (63,324.60) Non Allocated Interest 500,000.00 421,244.93 78,755.07 Litigation Settlement Revenue 0.00 0.00 0.00 Loan Proceeds 0.00 0.00 0.00 Rental Income 0.00 0.00 0.00 Transfers In 909,510 00 273,000.00 636,510.00 TOTAL CAPITAL IMPROVEMENT 1,422,010.00 770,069.53 651,940.47 CAPITAL IMPROVEMENT FUND - TAXABLE Pooled Cash Allocated Interest 0.00 0.00 0.00 Non Allocated Interest 0.00 0.00 0.00 Litigation Settlement Revenue 0.00 0.00 0.00 Bond proceeds 0.00 0.00 0.00 Rental Income 0.00 0.00 0.00 Transfers In 0.00 0.00 0.00 TOTAL CAPITAL IMPROVEMENT 0.00 0.00 0.00 3 LA QUINTA REDEVELOPMENT AGENCY EXPENDITURE SUMMARY PROJECT AREA NO. 1: LOW/MODERATE BOND FUND PERSONNEL SERVICES REIMBURSEMENT TO GEN FUND HOUSING PROJECTS TRANSFERS OUT TOTAL LOW/MOD BOND 07/01/2005 - 12/31/05 REMAINING BUDGET EXPENDITURES ENCUMBERED BUDGET 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0,00 0.00 0.00 0.00 0.00 0.00 0,00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 LOW/MODERATE TAX FUND: PERSONNEL 4,900.00 3,464.40 0.00 1,435.60 SERVICES 265,405.00 56,331.21 0.00 209,073.79 BUILDING HORIZONS 125,000.00 75,000.00 0.00 50,000.00 LQ RENTAL PROGRAM 332,000.00 118,712,16 0.00 213,287.84 LQ HOUSING PROGRAM 320,000.00 0.00 0.00 320,000.00 LOWMOD VILLAGE APARTMENTS 400,000.00 400,000.00 0.00 0,00 2nd TRUST DEED PROGRAM 3,298,340.00 40,000.00 0,00 3,258,340.00 LQRP - REHABILITATION 0.00 0.00 0.00 0,00 APT REHABILITATION 136,000.00 0.00 0,00 136,000.00 FORECLOSURE 150,000.00 0.00 0.00 150,000.00 REIMBURSEMENT TO GEN FUND 679,574.00 339,787.02 0.00 339.786.98 TRANSFERS OUT 3,945,802.00 1,982,532.01 0.00 1,963,269.99 TOTAL LOW/MOD TAX 9,657,021.00 3,015,826.80 0.00 6,641,194.20 DEBT SERVICE FUND: SERVICES 537,800.00 10,770.00 0.00 527,030.00 BOND PRINCIPAL 2,500,000.00 2,500,000.00 0.00 0.00 BOND INTEREST 7,805,905.00 3,938,313.13 0.00 3,867,591,87 INTEREST CITY ADVANCE 1,116,237.00 578,232.95 0.00 538,004.05 PASS THROUGH PAYMENTS 13,076,663.00 2,007,204.25 0.00 11,069,458.75 ERAF SHIFT 3,000,000.00 0.00 0.00 3,000,000.00 TRANSFERS OUT 4,374,737.00 2,255,532.01 0.00 2,119,204.99 TOTAL DEBT SERVICE 32,411,342.00 11,290,052.34 0.00 21,121,289.66 CAPITAL IMPROVEMENT FUND: PERSONNEL 4,900.00 3,464.40 0.00 1,435.60 SERVICES 307,362.00 91,281.09 0.00 216,080.91 LAND ACQUISITION 0.00 0.00 0.00 ASSESSMENT DISTRICT 0.00 0.00 0.00 0.00 ADVERTISING -ECONOMIC DEV 0.00 0.00 0.00 0,00 ECONOMIC DEVELOPMENT 55,000.00 0.00 0.00 55,000.00 BOND ISSUANCE COSTS 0.00 0.00 0.00 0.00 CAPITAL - BUILDING 0.00 0.00 0.00 0.00 REIMBURSEMENT TO GEN FUND 319,515.00 159,757.49 0.00 159,757.51 TRANSFERS OUT 23,453,157.00 3,644,560.57 0,00 19,808,596.43 TOTAL CAPITAL IMPROVEMENT 24,139,934.00 3,899,063.55 0.00 20,240,870.45 CAPITAL IMPROVEMENT FUND/TAXABLE BOND BOND ISSUANCE COSTS 0.00 0.00 0.00 0.00 TRANSFERS OUT (4,594.00) 0.00 0.00 (4,594.00) TOTAL CAPITAL IMPROVEMENT (4,594.00) 0.00 0.00 (4,594.00) 0 LA QUINTA REDEVELOPMENT AGENCY REMAINING REVENUE SUMMARY BUDGET RECEIVED BUDGET PROJECT AREA NO. 2: LOW/MODERATE BOND FUND: Allocated Interest 0.00 0.00 0.00 Non Allocated Interest 0.00 0.00 0.00 Bond proceeds (net) 0.00 0.00 0.00 Transfer In 0.00 0.00 0.00 TOTAL LOW/MOD BOND 0.00 0.00 0.00 LOW/MODERATE TAX FUND. Tax Increment 3,445,900.00 503,997.13 2,941,902.87 Allocated Interest 275,300.00 90,742.10 184,557.90 Non Allocated Interest 0.00 0.00 0.00 Developer funding 0.00 0.00 0.00 Vista Dunes MHP Rental Rev 0.00 14,671.03 (14,671.03) 2nd Trust Deed Repayment 0.00 112,097.40 (112,097.40) ERAF Shift - Interest 0.00 0.00 0.00 Sale of Land 0.00 0.00 0.00 Transfer In 0.00 0.00 0.00 TOTAL LOW/MOD TAX 3,721,200.00 721,507.66 2,999,692.34 2004 LOW/MODERATE BOND FUND: Allocated Interest 000 000 0.00 Home Sale Proceeds 0.00 0.00 0.00 Non Allocated Interest 1,418,400.00 647,776.46 770,623.54 Transfer In 0.00 0.00 0.00 TOTAL LOW/MOD BOND 1,418,400.00 647,776.46 770,623.54 DEBT SERVICE FUND: Tax Increment 13,783,600.00 2,015,988.54 11,767,611.46 Allocated Interest 0.00 130,130.72 (130,130.72) Non Allocated Interest 0.00 0.00 0.00 Interest Advance Proceeds 0.00 0.00 0.00 Transfer In 7,998,654.00 7,268,370.99 730,283.01 TOTAL DEBT SERVICE 21,782,254.00 9,414,490.25 12,367,763.75 CAPITAL IMPROVEMENT FUND: Allocated Interest 37,100.00 40,023.48 (2,923.48) Non Allocated Interest 0.00 0.00 0.00 Developer Agreement 0.00 7,824,583.57 (7,824,583.57) Transfers In 0.00 0.00 0.00 TOTAL CAPITAL IMPROVEMENT 37,100.00 7,864,607.05 (7,827,507.05) LA QUINTA REDEVELOPMENT AGENCY EXPENDITURE SUMMARY PROJECT AREA NO. 2: LOW/MODERATE BOND FUND 2nd TRUST DEEDS LAND BOND ISSUANCE COSTS TRANSFERS OUT TOTAL LOW/MOD BOND LOW/MODERATE TAX FUND: PERSONNEL SERVICES 2ND TRUST DEEDS 2ND TRUST DEEDS FROM CENTERPOINTE 48TH AND ADAMS - FROM CENTERPOINTE WASH/MILES PROJECT VISTA DUNES MOBILE HOME PARK LOW MOD HOUSING PROJECT/47TH/ADAMS PROJ 47TH/ADAMS PROJECT FORECLOSURE ACQUISITION REIMBURSEMENT TO GEN FUND TRANSFERS OUT TOTAL LOW/MOD TAX 2004 LOW/MODERATE BOND FUND HOUSING PROGRAMS LAND TRANSFERS OUT TOTAL LOW/MOD BOND 07/01/2005 - 12/31/05 REMAINING BUDGET EXPENDITURES ENCUMBERED BUDGET 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,900.00 2,096.49 0.00 803.51 280,628.00 107,178.55 0.00 173,449.45 852,693.00 0,00 0.00 852,693.00 2,520,000.00 0.00 0.00 2,520,000.00 1,423,203.00 71000 0.00 1,422,493.00 0.00 0.00 000 0.00 147,307.00 90,425.94 000 56,881 06 0.00 0.00 0.00 0.00 776,239.00 0.00 0,00 776,239.00 150,000.00 0.00 0.00 150,000.00 350,708.00 175,353.97 0.00 175,354.03 1,706,754.00 976,470.99 0.00 730,283.01 8,210,432.00 1,352,235.94 0.00 6,858,196.06 51,021,866.00 48.00 0.00 51,021,818.00 3,000,000.00 0.00 0.00 3,000,000.00 3,361,986.00 734,308.15 0.00 2,627,677.85 57,383,852.00 734,356.15 0.00 56,649,495.85 DEBT SERVICE FUND: SERVICES 195,970.00 750.00 0.00 195,220,00 BOND PRINCIPAL 200,000.00 100,000:00 0.00 100,000.00 BOND INTEREST 319,168.00 160,646.25 0.00 158,521.75 INTEREST CITY ADVANCE 1,593,358.00 665,369.68 0.00 927,988.32 PASS THROUGH PAYMENTS 11,726,665.00 818,549.69 0.00 10,908,115.31 TRANSFERS OUT 1,706,754.00 976,470.99 0.00 730,283.01 TOTAL DEBT SERVICE 15,741,915.00 2,721,786.61 0.00 13,020,128.39 CAPITAL IMPROVEMENT FUND: PERSONNEL 2,900.00 2,095.46 0.00 804.54 SERVICES 195,162.00 21,829.32 0.00 173,332.68 ADVERTISING -ECONOMIC DEV 0.00 0.00 0.00 0.00 ECONOMIC DEVELOPMENT ACTIVITY 0.00 0.00 0.00 0.00 REIMBURSEMENT TO GEN FUND 23,903.00 11,951.52 0.00 11,951.48 TRANSFERS OUT 6,776,933.00 6,479,143.45 0.00 297,789.55 TOTAL CAPITAL IMPROVEMENT 6,998,898.00 6,515,019.75 0.00 483,878.25 A 4 64:&QuiH!u� COUNCIL/RDA MEETING DATE: February 21, 2006 ITEM TITLE: Approval of Contract Change Order Nos. 1 and 2 for Project No. 2005-10, Avenue 52 Storm Drain Improvements RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Approve Contract Change Order Nos.1 and 2 for the repair and bypass of the existing utilities that are conflicting with the location of the proposed Avenue 52 Storm Drain Improvements, Project No. 2005-10. FISCAL IMPLICATIONS: The following represents the remaining budget for this project: Construction Budget Base Contract Amount Pending CCO No. 1 Pending CCO No. 2 Balance Remaining As indicated, adequate funding is available. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: $1,063,510.00 -$888,390.00 -$35,013.79 -$29,858.00 $1 10,248.21 On February 15, 2005, staff proposed mid -year budget adjustments in the Redevelopment Project Reserves to construct storm drain improvements within Avenue 52 to address flooding where the Calle Rondo Channel currently enters the northwest corner of SilverRock Resort, adjacent to the 4t" tee box of the Arnold Palmer Classic Course. On September 6, 2005, the Agency appropriated $636,510 from RDA Project Area No. 1 and awarded a contract in the amount of $888,390 to Mocon Corporation to construct the Avenue 52 Storm Drain Improvements, Project No. 2005-10. The proposed storm drain alignment crosses various known and unknown utilities within Avenue 52. The engineer relied upon as -built plans to establish the grades of all utilities shown on the plans. The contractor was required to verify the location and elE;vation of these utilities in the field. In most cases, these utility relocations would have been necessary regardless of whether or not they were discovered during design. However, since they were found during construction, the relocations constitute a changed condition and must be paid by a CCO. CCO No. 1 (Attachment 1 ) is to reroute the 14-inch irrigation well line above the proposed storm drain to include an air vacuum release for the raised portion of the well supply line. CCO No. 2 (Attachment 2) is for constructing the proposed storm drain underneath an existing energized and encased bank of electrical conduits. Staff recommends approval of CCO Nos. 1 and 2 in order to complete this project. If they are not approved, the contract work cannot be completed and the 4t" hole of the golf course will not be protected from flooding during large storms. Also, staff is currently investigating options for bypassing the CVWD potable waterline at the entrance to SilverRock Resort and a Verizon fiber optic duct that conflicts with the proposed tie-in point to the existing Calle Rondo Channel. Once designed and priced, a CCO will be brought forward for City Council consideration. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency Board include: 1 . Approve Contract Change Order Nos.1 and 2 for the repair and bypass of the existing utilities that are conflicting with the location of the proposed Avenue 52 Storm Drain Improvements, Project No. 2005-10;or 2. Do not approve Contract Change Order Nos.1 and 2 for the repair and bypass of the existing utilities that are conflicting with the location of the proposed Avenue 52 Storm Drain Improvements, Project No. 2005-10;or 3. Provide staff with alternative direction. Respectfully submitted, ,V/6othy F Jon, son, P.E. Public Works Director/City Engineer K Approved for submission by: homas P. Genovese, Executive Director Attachments: 1 . Contract Change Order No. 1 2. Contract Change Order No. 2 3 ATTACHMENT 1 T4 t cu OFT9 CONTRACT: CONTRACTOR: Mocon Corporation 82-204 Highway III Indio, CA 92201 Avenue 52 Storm Drain Improvements PROJECT NO. Sheet 1 of 3 2005-10 CONTRACT CHANGE ORDER NO. 1 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 This Contract Change Order allows for the removal and repair of the existing 14" irrigation supply piping that conflicts with the elevations of the proposed 54" storm drain. Amount $28,700.00 This Contract Change Order allows for the installation of a 2" air evacuation valve assembly in the repair of the existing 14" irrigation supply piping that conflicts with the elevations of the proposed 54" storm drain. Amount$ 6,313.79 Total $ 35,013.79 Previous Contract Amount Through Change Order No. 0 $ 888,390.00 Add This Change Order No.1 $ 35 013.79 Revised Contract Total $ 923,403.79 By reason of this contract change order the time of completion is adjusted as follows: - 4 - days added to contract time. The revised contract completion date shall be: 3/01/06 Submitted By: Date: Approved By: 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 her ccept as full payment the amount shown above, which includes all direct and indirect overhead expenses for any delays. Acce ted B �'�! Title: 191L G ' 1o, X1 P y Contractor: Cv �� �-PQx7/�-y� Date: r"16 /C, Zooev 4 T:\PWDEFTNPROIECTS\2_COTISTRUCTION\2005-10 AVE 52 STORM DRAIN\CONSTRUCTION\PROGRESS PAYMENTS & CHANGE ORDERS\CHANGE ORDERS\CCO RI.DOC ATTACHMENT 2 OF CONTRACT: Mocon Corporation 82-204 Highway 111 Indio, CA 92201 CONTRACTOR: Avenue 52 Storm Drain Improvements PROJECT NO. Sheet 1 of 2 2005-10 CONTRACT CHANGE ORDER NO. 2 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 This Contract Change Order allows for the construction of a drainage structure to bypass underneath an existing utility duct bank that conflicts with the elevations of the proposed 54" storm drain. Amount $29,858.00 Previous Contract Amount Through Change Order No. 1 $ 923,403.79 Add This Change Order No. 2 $ 29 858.00 Revised Contract Total $ 953,261.79 By reason of this contract change order the time of completion is adjusted as follows: - 12 - days added to contract time. The revised contract completion date shall be: 3/13/06 Submitted By: Date: Approved By: 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 here ac ept as full payment the amount shown above, which includes all direct and indirect overhead expenses for any delays. Accepted B Title: y Contractor: //�oC t, C-�/Z P Date: � � 5 -r.%ournFVTvunrPr-rc\') CONSTRUCTIONVW5-10 AVE 52 STORM DRAIN\CONSTRUCTION\PROGRESS PAYMENTS & CHANGE ORDERS\CHANGE ORDERS\CCO #2.DOC COUNCIL/RDA INI ETING DATE: February 21, 2006 ITEM TITLE: Adoption of a Resolution Approving a Development Agreement for Parking Management to Allow Construction of a ± 10,709 Gross Square -Foot, Two -Story Retail/Office Building, in The Village at La Quinta, as Approved under Development Agreement 2005-008, and Village Use Permit 2005-027 RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: S` STUDY SESSION: PUBLIC HEARING: Adopt a Resolution of the Redevelopment Agency Resolution approving Development Agreement 2005-008. FISCAL IMPLICATIONS: Approval of the Development Agreement would result in revenue of up to $180,000, which would be earmarked for future Village parking improvements. BACKGROUND AND OVERVIEW: Development Agreement 2005-008 was approved by the City Council on December 6, 2005, by adoption of Ordinance 424. The Village Use Permit approval requires that the developer and the City enter into a Development Agreement, for the purpose of clarifying the applicant's parking obligations associated with development of the project. The La Quinta Redevelopment Agency must now approve the agreement in order for the project to move forward. Attached is the Development Agreement as approved by the City Council, which requires that the applicant pay a $12,000 per -space fee for up to 15 parking stalls, in exchange for credit toward meeting the required parking for the project. The applicant was granted a two -space credit as part of the approval, for on -street spaces along Avenida La Fonda, adjacent to his project. FINDINGS AND ALTERNATIVES: The alternative; available to the Agency Board include: 1. Adopt a Resolution of the Redevelopment Agency Resolution approving Development Agreement 2005-008; or 2. Do not adopt a Resolution of the Redevelopment Agency Resolution approving Development Agreement 2005-008; or 3. Continue this item for further consideration; or 4. Provide staff with alternative direction. Respectfully submitted, Douglas vans Community Development Director Approved for submission by, Thomas P. Genovese, Executive Director Attachments: 1 . Development Agreement for VUP 2005-027 RESOLUTION NO. RA 2006- A RESOLUTION OF THE LA QUINTA REDEVELOPMENT AGENCY OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING A DEVELOPMENT AGREEMENT FOR PARKING MANAGEMENT, ASSOCIATED WITH AN APPROVED DEVELOPMENT PROJECT DEVELOPMENT AGREEMENT 2005-008 CALLE ESTADO, LLC. WHEREAS, California Government Code Section 65864 et seq. (the "Development Agreement Law") authorizes cities to enter into binding development agreements with persons having a legal or equitable interest in real property for the development of such property, all for the purpose of strengthening the public planning process, encouraging private participation and comprehensive planning, and identifying the economic costs of such development; and, WHEREAS, the City Council of the City of La Quinta, California, did on the 6th day of December, 2006, approve Development Agreement 2005-008 by adoption of Ordinance 424, for the establishment of parking management restrictions as part of a ± 10,709 square -foot commercial retail/office building, as approved under Village Use Permit 2005-027, to be located at the southwest corner of Calle E:stado and Desert Club Drive, more particularly described as: LOTS 10, 11 & 12, BLOCK 9 OF DESERT CLUB TRACT UNIT #1 WHEREAS, the Redevelopment Agency of the City of La Quinta, California, is entering into this Agreement for the sole and exclusive purposes of providing its consent, as provided in said Development Agreement, to the crediting of 15 parking stalls on the Agency Parking Lot property, as described in said Development Agreement, towards the Project's parking and for no other purpose; and, WHEREAS, the La Quinta Redevelopment Agency finds that all actions required to be taken by the City precedent to the adoption of this Resolution, have been regularly and duly taken. NOW, THEREFORE, BE IT RESOLVED by the La Quinta Redevelopment Agency of the City of La Quinta, as follows: 1 . That the above recitations are true and constitute the findings of the Agency in this case; Resolution No. RA 2006- Development Agreement 2005-008 Calle Estado, LLC February 21, 2006 2. That it does hereby approve Development Agreement 2005-008 for the reasons set forth in this Resolution. PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta Redevelopment Agency, held on this the 21" day of February, 2006, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: LEE M. OSBORNE, Agency Chair La Quinta Redevelopment Agency ATTEST: JUNE S. GREEK,, CIVIC, Agency Secretary La Quinta Redevelopment Agency APPROVED AS TO FORM: M. KATHERINE JENSON, Agency Counsel La Quinta Redevelopment Agency J P:\Reports - CC\2006\2-21-06\DA 008\rdaresoDA008.rtf RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO City of La Quinta 78-495 Calle Tampico La Quinta, CA 922.53 Attn: City Clerk ATTACHMENT 1 Space Above This Line for Recorder's Use (Exempt from Recording Fee per Gov't Code § 6103 ) DEVELOPMENT AGREEMENT BY AND AMONG THE CITY OF LA QUINTA ("CITY") THE LA QUINTA REDEVELOPMENT AGENCY ("AGENCY") AND CALLE ESTADO, L.L.C. A CALIFORNIA LIMITED LIABILITY COMPANY ("DEVELOPER") �150,015010-0087 627103.01 a02'13i06 DEVELOPMENT AGREEMENT This Development Agreement (the "Agreement") is entered into as of the day of 2005 ("Reference Date"), by and among the CITY OF LA QUINTA, a California municipal corporation and charter city (the "City"), the LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic (the "Agency" and, collectively with the City, the "City Entities") and CALLE ESTADO L.L.C., a California limited liability company (the "Developer"), with reference to the following: RECITALS A. Government Code Sections 65864-65869.5 (the "Development Agreement Act") authorize the City to enter into a binding development agreement for the development of real property within its jurisdiction with persons having legal or equitable interest in such real property. B. Pursuant to Section 65865 of the Government Code, the City has adopted its Development Agreement Ordinance (La Quinta Municipal Code Section 9.250.030) establishing procedures and requirements for such development agreements ("Development Agreement Ordinance"). C. Developer owns the 0.34 acre parcel of real property ("Site") located at the southwest corner of Calle Estado and Desert Club Drive, in the City of La Quinta, County of Riverside, State of California, which Site is legally described in Exhibit "A" attached hereto, and which is the subject of this Agreement. D. Prior to the execution of this Agreement, the City approved Village Use Permit No. 2005-027 (the "VUP"), subject to conditions of approval. The VUP provides planning and development criteria for a proposed project on the Site, which project is commonly known as Calle Estado (the "Project"). The Project will consist of the development of the Site with a proposed 10,709 gross square foot structure intended for general retail and office uses; the first floor will contain approximately 3,854 square feet of gross floor area as retail uses and the second floor will contain 5,541 square feet of gross floor area as general office uses. A 25-space parking lot will occupy the remainder of the Site. The building will be generally situated on the north portion of the Site, with the front of the building facing Calle Estado. The City has also approved Parcel Map No. The VUP and the Parcel Map are known as the "Development Plan". E. The City's Municipal Code requires that a total of 42 parking stalls be provided to service the Project. The Site is situated such that only 25 of the 42 required parking stalls are available for the Project. While the Project requires an additional 17 parking stalls, the La Quinta Municipal Code permits the City to credit 2 street -side parking spots towards the Projects parking obligation.. To fulfill the remaining parking requirements for the Project, the VUP was conditioned on the Developer entering a development agreement with the City Entities to require the Developer to pay a parking fee in exchange for the City crediting 15 parking stalls in the Agency -owned parking lot (which lots is located at the northwest corner of Avenida Bermudas and Avenida Montezuma, in the City of La Quinta, County of Riverside, State of California, which parking lot is legally described in Exhibit "B" attached hereto (the "Agency Parking 2156i015610-0087 6?7103.01 a0?/13i06 -2- Lots") towards fulfilling the Project's parking obligation of providing 42 parking stalls. The Agency Parking Lot is located in close proximity to the Site and is within close walking distance of the Site. The parties to this Agreement agree and acknowledge that the Agency is entering this Agreement for the sole and exclusive purposes of providing its consent, as provided in Section 2.4.1, to the crediting of 15 parking stalls on the Agency Parking Lots towards the Project's parking and for no other purpose. Without limiting the City's use of these fees, it is intended that the fees paid by the Developer shall be used to add or provide additional parking in the future. F. The Development Plan also requires, in addition to the fee described above, and as consideration for the City crediting 15 parking stalls in the Agency Parking Lots towards the Project's parking obligation, that the City and Developer enter an agreement providing that the parking stalls located on the Site shall be available for use by the general public during hours when the on -Site businesses are closed. G. Consistent with Section 9.250.030 of the La Quinta Municipal Code, the parties desire to enter into a binding agreement for purposes of (1) setting forth a per -parking stall up- front payment for the Developer's payment to the City of certain fees that the parties agree are designed to compensate the City for (A) the crediting of 15 parking stalls located in the Agency Parking Lot towards fulfilling the Project's parking obligation; and (B) the potential added wear and tear on the municipal infrastructure which will result from the Development Plan and the crediting of the parking stalls in the Agency Parking Lots; (ii) requiring the Developer and its successors -in -interest to provide public parking on the Site; and (iii) granting Developer a vested right to develop the Site according to the Development Plan. F. Among other purposes, this Agreement is intended to be, and shall be construed as, a development agreement within the meaning of the Development Agreement Act. This Agreement will eliminate uncertainty in planning for and secure the orderly development of the Project, ensure a desirable and functional community environment, provide effective and efficient development of public facilities, infrastructure, and services appropriate for the development of the Project, and assure attainment of the maximum effective utilization of resources within the City, by achieving the goals and purposes of the Development Agreement Act. In exchange for these benefits to City, Developer desires to receive the assurance that it may proceed with development of the Project in accordance with the terms and conditions of this Agreement and the. Development Plan, all as more particularly set forth herein. G. The City Council has determined that the Project and this Agreement are consistent with the City's General Plan, including the goals and objectives thereof. H. All actions taken by City and Agency have been duly taken in accordance with all applicable legal requirements, including the California Environmental Quality Act (Public Resources Code Section 21000, et seq.) ("CEQA"), and all other requirements for notice, public hearings, findings, votes and other procedural matters. I. On , the City Council adopted its Ordinance No. approving this Agreement. On the Agency adopted Resolution No. approving this Agreement for the sole and exclusive purpose of consenting to the > > s0,,o 1 s610-0087 crediting of 15 parking stalls located on the Agency Parking Lots towards fulfilling the Project's parking obligations. AGREEMENT NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and other good and valuable consideration, the receipt and legal sufficiency of which is hereby acknowledged, the parties do hereby agree as follows: 1.0 GENERAL. 1.1 Tenn. The term of this Agreement (the "Term") shall commence on the Effective Date hereof and shall continue for ten (10) years thereafter, unless said term is otherwise terminated, modified, or extended by circumstances set forth in this Agreement or by mutual consent of the parties hereto after the satisfaction of all applicable public hearing and related procedural requirements. 1.2 Effective Date. This Agreement shall be effective, and the obligations of the parties hereunder shall be effective, as of _ which is the date that Ordinance No. takes effect ("Effective Date"). 1.3 Amendment or Cancellation. Except as expressly stated to the contrary herein, this Agreement may be amended or canceled in whole or in part only by mutual consent of the parties and in the manner provided for in Government Code Section 65867-65868 and the City's Development Agreement Ordinance. 1.4 Termination. Unless terminated earlier, pursuant to the terms hereof, this Agreement shall automatically terminate and be of no further effect upon the expiration of the Term of this Agreement. Termination of this Agreement, for any reason, shall not, by itself, affect any right or duty arising from entitlements or approvals set forth under the Development Plan, as defined in Section 2.1, below. 1.5 Incorporation of Recitals. The recitals are hereby incorporated into this Agreement. 2.0 DEVELOPER'S RIGHTS AND LIMITATIONS REGARDING CONSTRUCTION OF THE PROJECT. 2.1 Right to Develop. Subject to the terms, conditions, and covenants of this Agreement, Developer's right to develop the Project in accordance with the Development Plan (and subject to the conditions of 150 015010-0087 0271W.01 a02i13,00 -4- approval thereof (the "Conditions of Approval") which, among other conditions of approval associated with future approvals and permits issued by the City, include but are not limited to the conditions of approval set forth in Exhibit "C" attached hereto) shall be deemed vested upon execution of this Agreement, which vesting shall expire upon the earlier of the following occurrences: (a) termination of this Agreement; or (b) an uncured material default by Developer of this Agreement. Except for the expiration set forth in clause (a) of the preceding sentence, the expiration of the vesting right set forth in the preceding sentence shall not terminate the obligations of Developer under this Agreement. Notwithstanding anything in this Agreement to the contrary, the Project shall remain subject to the following, to the same extent it would without this Agreement: (1) all ordinances, regulations, rules, laws, plans, policies, and guidelines of the City and its City Council, Planning Commission, and all other City boards, commissions, and committees existing on the Effective Date of this Agreement (collectively, the "Existing Development Regulations"); (ii) all amendments or modifications to Existing Development Regulations after the Effective Date of this Agreement and all ordinances, regulations, rules, laws, plans, policies, and guidelines of the City and its City Council, Planning Commission, and all other City boards, commissions, and committees enacted or adopted after the Effective Date of this Agreement (collectively, "New Laws"), except such New Laws which would prevent or materially impair Developer's ability to develop the Project in accordance with the Development Plan, unless such New Laws are (A) adopted by the City on a City wide -basis and applied to the Site in a non-discriminatory manner, (B) required by a non -City entity to be adopted by or applied by the City (or, if adoption is optional, the failure to adopt or apply such non -City law or regulation would cause the City to sustain a loss of funds or loss of access to funding or other resources), or (C) New Laws the City reserves the right to apply under this Agreement, including, but not limited to, Sections 2.2 and 3.3.4; (iii) all subsequent development approvals and the conditions of approval associated therewith, including but not limited to any further site development permits, tract or parcel maps, and building pen -nits; (iv) the payment of all fees or exactions in the categories and in the amounts as required at the time such fees are due and payable, which may be at the time of issuance of building permits, or otherwise as specified by applicable law, as existing at the time such fees are due and payable; and (v) the reservation or dedication of land for public purposes or payment of fees in lieu thereof as required at the time such reservations or dedications or payments in lieu are required under applicable law to be made or paid. 2.2 Additional Applicable Codes and Regulations. Notwithstanding any other provision of this Agreement, the City also reserves the right to apply the following to the development of the Project: 2.2.1 Building, electrical, mechanical, fire and similar building codes based upon uniform codes adopted in, or incorporated by reference into, the La Quinta 2 1501015 610-0087 t i' 027103.01 a02 13,06 5 Municipal Code, as existing on the Effective Date of this Agreement or as may be enacted or amended thereafter, applied to the Project in a nondiscriminatory manner. 2.2.2 In the event of fire or other casualty requiring construction of more than fifty (50%) percent of any building previously constructed hereunder, nothing herein shall prevent the City from applying to such reconstruction, all requirements of the City's Building, Electrical, Mechanical, and similar building codes based upon uniform codes adopted in, or incorporated by reference into, the La Quinta Municipal Code, solely to the extent appliicable to all development projects in the City. 2.2.3 This Agreement shall not prevent the City from establishing any new City fees on a City-wide basis and applied to Site in a non-discriminatory manner, including new development impact fees, or increasing any existing City fees, including existing development impact fees, and to apply such new or increased fees to the Project or applicable portion thereof where such new or increased fees maybe charged. 2.3 Permitted Density, Hei.ht and Use Limitations. The permitted uses, density and intensity of use, location of uses, maximum height and size of proposed buildings, minimum setbacks, and other standards applicable to the Project shall be those set forth in the Development Plan and this Agreement, whichever is the strictest. 2.4 Credit of Parking Stalls in the Agency Parking Lots. In exchange for the full performance of the Developer's Obligations described in Section 3, the City shall credit the Developer with 2 street -side parking spots as permitted by the La Quinta Municipal Code and 15 parking stalls in the Agency Parking Lots, which stalls shall be counted towards fulfilling the Project's parking obligations. This Agreement does not operate to create a conveyance, hypothecation, lease, license, sale or any form of transfer of an interest in the parking spots on public streets or the Agency Parking Lots or any exclusive right to use parking stalls in the Agency Parking Lots. Developer shall have the same right to use parking spaces on the public street and in the Agency Parking Lots as members of the general public; provided, however, that Developer shall enforce a policy that encourages Project employees to park their automobiles at the Agency Parking Lots. 2.4.1 Agency Consent. Subject to the obligations of Developer as provided in this Agreement, Agency hereby consents to crediting 15 parking stalls in the Agency Parking Lots towards fulfilling the Project's parking obligations. 3.0 DEVELOPER'S OBLIGATIONS. 3.1 Conditions of Approval. The Developer shall comply with the Conditions of Approval attached hereto as Exhibit "B" as well as all other conditions of approval that have been or may be imposed. Developer acknowledges that additional conditions of approval beyond those set forth in Exhibit T11 may be applicable to the Project if and as associated with future Project approvals. � 156/01;610-008 � 017 103. 01 a0_ 13 06 —6— 3.2 Restriction on the Site. Prior to, and as a condition precedent of, the City's issuance of any building permit for the Project, and immediately following payment of the fees detailed in Section 3.3.2, the Developer shall submit to the City, obtain approval thereof, and record a deed restriction (the "Restriction") against the Site which, in addition to the obligations set forth in the Conditions of Approval, shall (i l require the Developer's payment of the fees as described in Section 3.3, (ii) acknowledge that such fees have been paid and that the parking obligation for the Project is fulfilled by the credit of two street -side parking spots and 15 parking stalls in the Agency Parking Lots; and (iii) provide for the general public's use of Site parking stalls during times when the on -Site businesses are closed as provided by Section 3.5. The Restriction shall be in a form and substance substantially similar to that of the Restriction attached hereto as Exhibit "D". 3.3 Payments to City by Developer. 3.3.1 General. During the Term of this Agreement, Developer shall make the payments to City described in this Section 3.3. The payments under this Section 3.3 are not the exclusive development impact fees for the Project, and nothing in this Section 3.3 shall be construed as a limitation on the right of the City to impose, levy, or assess the Site other development fees as permitted by applicable law and this Agreement. 3.3.2 Developer's Payments of Up -Front Parking Fees. Prior to, and as a condition precedent of, the issuance of any building permit for the Site, Developer shall pay or cause to be paid to the City the sum of $12,000.00 per parking space for each of the 15 parking stalls in the Agency Parking Lots being credited towards fulfilling the Project's parking obligations. The total amount of fees due under this provision prior to the issuance of any building permit for the Site shall be $180,000. This fee shall be paid in one lump sum without deduction or offset. 3.3.3 City Parking Fee Study; Effect on Payment of Up -Front Parking Fees. Independent of Developer's obligations under this Section 3.3.2, the City may choose to prepare a parking study to determine the per -parking stall parking fee to be applied to development in the La Quinta Village area. If the City approves a parking fee within one year of the Reference Date and the fee calculated pursuant to this parking study and approved by the City Council is less than $12,000 per parking stall, then the City shall, within a reasonable time after the adoption of the fee by the City Council, reimburse to Developer that portion of the per space fee that exceeds $12,000. If the fee calculated pursuant to the parking study and approved by the City Council is greater than $12,000 per parking stall, the Developer shall have no obligation under this Development Agreement to pay the increased amount. If the City chooses not to adopt a per -parking stall parking fee for the La Quinta Village area, the Developer shall have no right to seek a refund of the payment described in this Section 3.3.2. The City's obligation under this section to reimburse the Developer shall terminate within one year of the Reference Date. 2150 015 610-008 7 3.3.4 Other Fees and Charges. Nothing set: forth in this Agreement is intended or shall be construed to limit or restrict the City's authority to impose its existing, or any new or increased, fees, charges, levies, or assessments for the development of the Site, or to impose or increase, subject to the required procedure, any taxes applicable to the Site; provided nothing set forth herein is intended or shall be construed to limit or restrict whatever right Developer might otherwise have to challenge any fee, charge, levy, assessment, or tax imposed. Developer shall timely pay all applicable fees, charges, levies, assessments, and special and general taxes validly imposed in accordance with the Constitution and laws of the State of California, including without limitation school impact fees in accordance with Government Code §§ 65995, et seq. 3.4 Dedications and Improvements. Developer shall offer such dedications to the City or other applicable public agency, or complete those public improvements in connection with the Project, as specified in the Development Plan and Conditions of Approval. 3.5 Public Use of Site's Parking Stalls. Once constructed, the parking stalls located on the Site shall be available to the general public for use between the hours of 6:00 p.m. and 2:00 a.m.; provided, however, that Developer (and/or its permitted successors) may reserve five (5) designated spaces for any on -Site businesses that remain open after 6:00 p.m. At the request of Developer, the Director of Community Development may consider increasing the number of designated spaces to equal up to 50% of the on -Site parking spaces if the Director of Community Development determines that an increase in designated spaces is warranted. Any such approval must be in writing to be effective. Developer shall not erect or maintain entry gates, regulated access barriers or any other driveway barrier. Except for signage identifying designated spaces, Developer shall not erect or place any signage on the Site prohibiting public parking during times that on -Site businesses are closed. The parking lot on the Site shall be lighted in conformity with the La Quinta Municipal Code between dusk and 11:00 p.m. every day of the week. 3.6 Indemnification. (a) Developer agrees to and shall indemnify, hold harmless, and defend, the City and Agency and their respective officers, officials, members, agents, employees, and representatives (collectively, "the Indemnified Parties"), from liability or claims for death or personal injury and claims for property damage which may arise from the acts, errors, and/or omissions of the Developer or its contractors, subcontractors, agents, employees or other persons acting on its behalf in relation to the Project and/or this Agreement, except to the extent that the liability or claims arise from the City's or the Agency's gross negligence or willful misconduct. The foregoing indemnity applies to all deaths, injuries, and damages, and claims therefor, suffered or alleged to have been suffered by reason of the acts, errors, and/or omissions referred to in this paragraph, regardless of whether or not the City prepared, supplied, or approved plans or specifications, or both, and regardless of whether or not any insurance policies are applicable. 2 156/0 15610-0087 627103.01 a02%13/06 (b) Developer agrees to and shall indemnify, hold harmless, and defend, the Indemnified Parties from any challenge to the validity of this Agreement, the Restriction, or to the City Entities' implementation of their rights under this Agreement; the Developer shall indemnify, hold harmless, pay all costs and provide defense for the Indemnified Parities in said action or proceeding with counsel chosen by the City. (c) In the event the Indemnified Parties are made a party to any action, lawsuit, or other adversarial proceeding in any way involving claims specified in paragraphs (a) or (b) above, Developer shall provide a defense to the Indemnified Parties, or at the Indemnified Parties' option, reimburse the Indemnified Parties their costs of defense, including attorney's fees, incurred in defense of such claim. The Indemnified Parties shall have the right to select legal counsel of their choice. In addition, Developer shall be obligated to promptly pay any final judgment or portion thereof rendered against the Indemnified Parties. The City Entities shall, at no cost to the City Entities, cooperate with the Developer in any such defense as Developer may reasonably request. 4.0 CITY'S OBLIGATIONS & ACKNOWLEDGEMENTS. 4.1 SCope of Subsequent Review/Confirmation of Compliance Process. Nothing set forth herein shall impair or interfere with the right of the City to require the processing of building permits as required by law, pursuant to the applicable provisions of the La Quinta Municipal Code and the provisions of City's Fire Codes and ordinances, Health and Safety Codes and ordinances, and Building, Electrical, Mechanical, and similar building codes. Prior to each request for a building permit, Developer shall provide City with a Compliance Certificate ("Certificate"), in substantially the same form as that attached hereto as Exhibit "E", which shall describe how all applicable Conditions of Approval have been fully complied with. The Certificate shall be distributed to the relevant City departments in order to check the representations made by Developer on the Certificate. 4.2 Project Approvals Independent. All approvals required for the Project which may be or have been granted, and all land use entitlements or approvals generally which have been issued or will be issued, by the City with respect to the Project, constitute independent actions and approvals by the City. If any provision of this Agreement or the application of any provision of this Agreement to a particular situation is held by a court of competent jurisdiction to be invalid or unenforceable, or if this Agreement terminates for any reason, then such invalidity, unenforceability or termination of this Agreement or any part hereof shall not affect the validity or effectiveness of any such Project approvals or other land use approvals and entitlements. In such cases, such approvals and entitlements will remain in effect pursuant to their own terms, provisions, and the Conditions of Approval. It is understood by the parties to this Agreement that, pursuant to existing law, if this Agreement terminates or is held invalid or unenforceable as described above, such approvals and entitlements shall not remain valid for the term of this Agreement, but shall remain valid for the terns of such approvals and entitlements. 1156i015610-0087 6?7103.01 a02i13/06 -9- 4.3 Review for Compliance. The City shall review Developer's compliance with the terms of this Agreement at least once during every twelve (12) month period following the Effective Date of this Agreement, in accordance with t'': c City's procedures and standards for such review set forth in the City's Development Agreement Ordinance. During such periodic review by the City, the Developer, upon written request from City, shall be required to demonstrate, and hereby agrees to furnish, evidence of good faith compliance with the terms hereof. The failure of the City to conduct or complete the annual review as provided herein or in accordance with the Development Agreement Act shall not impact the validity of this Agreement. If, at the conclusion of the annual review provided for herein, Developer has been found in compliance with this Agreement, the City, through the City's Community Development Director, shall, at Developer's written request, issue a Certificate of Compliance to Developer stating that (1) this Agreement remains in full force and effect and (2) Developer is in compliance with this Agreement. The Certificate of Compliance shall be in recordable form, and shall contain information necessary to communicate constructive record notice of the finding of compliance. Developer, at its option and sole cost, may record the Certificate of Compliance. 4.4 Satisfaction of VUP Condition. The City hereby acknowledges and agrees that full compliance with this Agreement, among other things, will constitute Developer's satisfaction and compliance with those portions of condition 44 of the conditions of approval for the VUP approved by the City which relate to Developer's obligation to enter into a development agreement for the payment of parking fees and fulfillment of parking obligations. 5.0 DEFAULT; REMEDIES; DISPUTE RESOLUTION. 5.1 Notice of Default. In the event of failure by either party hereto substantially to perform any material term or provision of this Agreement, the non -defaulting party shall have those rights and remedies provided herein, provided that such non -defaulting party has first provided to the defaulting party a written notice of default in the manner required by Section 8.1 hereof identifying with specificity the nature of the alleged default and the manner in which said default may satisfactorily be cured. Without limiting the scope of what is considered "material," the parties agree that Developer's failure to perform any of the obligations contained in Section 3.0 shall be a material default. 5.2 Cure of Default. Upon the receipt of the notice of default, the alleged defaulting party shall promptly commence to cure, correct, or remedy the identified default at the earliest reasonable time after receipt of the notice of default and shall complete the cure, correction or remedy of such default not later than five (5) days [or thirty (30) days for non -monetary defaults] after receipt of the notice of default, or, for such defaults that cannot reasonably be cured, corrected or remedied within five (5) days [or thirty (30) days for non -monetary defaults], such party shall commence to cure, correct, or remedy such default within such five (5) day period [or thirty (30) day period 156,015610-0087 � t 027101.01 a02113/06 _10- for non -monetary defaults], and shall continuously and diligently prosecute such cure, correction or remedy to completion. 5.3 City Remedies. In the event of an uncured default by Developer of the terms of this Agreement, the City, at its option, may institute legal action in law or in equity to cure, correct, or remedy such default, enjoin any threatened or attempted violation, or enforce the terms of this Agreement. In no event shall the City be entitled to consequential, exemplary or punitive damages for any Developer default. For purposes of this Agreement the term "consequential damages" shall include, but not be limited to, potential loss of anticipated tax revenues from the Project or any portion thereof. Furthermore, the City, in addition to, or as an alternative to, exercising the remedies set forth in this Section 5.3, in the event of a material default by Developer, may give notice of its intent to terminate or modify this Agreement pursuant to the City's Development Agreement Ordinance and/or the Development Agreement Act, in which event the matter shall be scheduled for consideration and review by the City Council in the manner set forth in the City's Development Agreement Ordinance or the Development Agreement Act. 5.4 Developer's Exclusive Remedies. The parties acknowledge that the City Entities would not have entered into this Agreement if they were to be liable in damages under, or with respect to, this Agreement or any of the matters referred to herein including, but not limited to, the Development Plan, Conditions of Approvals, the Existing Development Regulations or any future amendments or enactments thereto, or the Project, except as provided in this Section. Accordingly, Developer covenants on behalf of itself and its successors and assigns, not to sue the City Entities for damages or monetary relief (except for attorneys' fees as provided for by Section 8.22) for any breach of this Agreement by the City Entities or arising out of or connected with any dispute, controversy, or issue between Developer and the City Entities regarding this Agreement or any of the matters referred to herein including but not limited to the application, interpretation, or effect of this Agreement, the Development Plan, the Conditions of Approval, the Existing Development Regulations or any future amendments or enactments thereto, or any land use permits or approvals sought in connection with the development of the Project or any component thereof, or use of a parcel or any portion thereof, the parties agreeing that declaratory and injunctive relief, mandate, and specific performance shall be Developer's sole and exclusive judicial remedies. 6.0 MORTGAGEE PROTECTION; CERTAIN RIGHTS OF CURE. 6.1 Encumbrances on the Project Site. This Agreement shall not prevent or limit the Developer from encumbering the Site or any portion thereof or any improvements thereon with any mortgage, deed of trust, sale and leaseback arrangement, or any other form of conveyance in which the Site, or a portion thereof or interest therein, is pledged as security, and contracted for in good faith and fair value (a "Mortgage") securing financing with respect to the construction, development, use or operation of the Project. 2156,"015610-0087 61-7103.01 a02/ 13/06 6.2 Mortgage Protection. This Agreement shall be superior and senior to the lien of any Mortgage. Notwithstanding the foregoing, no breach of this Agreement shall defeat, render invalid, diminish, or impair the lien of any Mortgage made in good faith and for value, and any acquisition or acceptance of title or any right or interest in or with respect to the Site or any portion thereof by a holder of a beneficial interest under a Mortgage, or any successor or assignee to said holder (a "Mortgagee") [whether pursuant to foreclosure, trustee's sale, deed in lieu of foreclosure, lease termination or otherwise] shall be subject to all of the terms and conditions of this Agreement. 6.3 Mortgagee Not Obligated. No Mortgagee will have any obligation or duty under this Agreement to perform the obligations of the Developer or other affirmative covenants of Developer hereunder, or to guarantee such performance, except that to the extent that any covenant to be performed by the Developer is a condition to the performance of a covenant by the City, the performance thereof shall continue to be a condition precedent to the City's performance hereunder. 6.4 Notice of Default to Mortgagee; Right of Mortgagee to Cure. City shall, upon written request to the City, deliver to each Mortgagee a copy of any notice of default given to Developer under the terms of this Agreement, at the same time of sending such notice of default to Developer. The Mortgagee shall have the right, but not the obligation, within five (5) days [or thirty (30) days for non -monetary defaults] after the receipt of such notice from the City, to cure, correct, or remedy the default, or, for such defaults that cannot reasonably be cured, corrected, or remedied within five (5) days [thirty (30) days for non - monetary defaults], the Mortgagee shall commence to cure, correct, or remedy the default within such five (5) day period [or thirty (30) day period for non -monetary defaults], and shall continuously and diligently prosecute such cure to completion. If the default is of a nature which can only be remedied or cured by such Mortgagee upon obtaining possession of the Site, such Mortgagee shall have the right to seek to obtain possession with diligence and continuity through foreclosure, a receiver or otherwise, and shall be permitted thereafter to remedy or cure the default within such time as is reasonably necessary to cure or remedy said default but in no event more than thirty (30) days after obtaining possession. If any such default cannot, with diligence, be remedied or cured within such thirty (30) day period, then such period shall be extended to permit the Mortgagee to effect a cure or remedy so long as Mortgagee commences said cure or remedy during such thirty (30) day period, and thereafter diligently pursues and completes such cure. 7.0 TRANSFERS OF INTEREST IN SITE OR AGREEMENT. 7.1 Successors and Assigns. Developer shall have the right to sell, transfer or assign the Site, or any portion thereof (provided that no such transfer shall violate the Subdivision Map Act, Government Code §66410, et sect.) to any person, partnership, joint venture, firm or corporation at any time during the term of this Agreement; provided, however, that any such sale or transfer shall include, with respect to the Site or the portion thereof sold or transferred, the assignment and assumption, in a 2150i015610-0087 6?7103.01 a02. 13%06 1 �— fully executed written agreement, in whole or in part, of the rights, duties and obligations of the Developer under the terms of this Agreement. Upon such sale, transfer or assignment, Developer shall, with respect to the Site or the portion thereof sold or transferred, be released from any further obligations under the terms of this Agreement, provided: (a) Developer no longer has any legal or equitable interest in the Site or the portion thereof sold or transferred, as applicable; (b) Developer is not, at the time of the transfer, in default under the terms of this Agreement; and (c) Developer has submitted an executed assignment and assumption agreement in a form set forth in Exhibit F. 8.0 MISCELLANEOUS. 8.1 Notices. All notices permitted or required hereunder must be in writing and shall be effected by (1) personal delivery, (ii) first class mail, registered or certified, postage fully prepaid, or (iii) reputable same -day or overnight delivery service that provides a receipt showing date and time of delivery, addressed to the following parties, or to such other address as any party may from time to time, designate in writing in the manner as provided herein: To City: City of La Quinta 78-495 Calle Tampico La Quinta, California 92253 Attn: Community Development Director To Agency: La Quinta Redevelopment Agency 78-495 Calle Tampico La Quinta, California 92253 Attn: Executive Director With a copy to: Rutan & Tucker, LLP 611 Anton Boulevard, Suite 1400 Costa Mesa, California 92626 Attn: M. Katherine Jenson To Developer: Mr. Neiso Moscatel Calle Estado, LLC 2107 Elliot Avenue, Suite 204 Seattle, WA 48121 Telephone: Facsimile: Any written notice, demand or communication shall be deemed received immediately if personally delivered or delivered by delivery service, and shall be deemed received on the third day from the date it is postmarked if delivered by registered or certified mail. 2150/015610-0087 027103.01 a02/ 13/06 -1 3 - 8.2 Force Mai eure. In addition to specific provisions of this Agreement, performance by either party hereunder shall not be deemed to be in default where delays or failures to perform are due to war, insurrection, strikes, walk -outs, riots, floods, earthquakes, fires, casualties, acts of God, acts of the public enemy, terrorism, epidemics, quarantine restrictions, freight embargoes, governmental restrictions imposed or mandated by other governmental entities, governmental restrictions or priority, unusually severe weather, inability to secure labor, materials, or tools necessary for the Project, delays of any contractor, subcontractor or supplier; acts of another party, acts or the failure to act of any public or governmental agency or entity (except that acts or the failure to act of the City shall not excuse performance by the City) or any other causes beyond the control or without the fault of the party claiming an extension of time to perform. An extension of time for any such cause shall only be for the period of the enforced delay, which period shall commence to run from the time of the commencement of the cause. The City and the Developer may also extend times of performance under this Agreement in writing. Notwithstanding the paragraph above, Developer is not entitled pursuant to this Section 8.2 to an extension of time to perform because of past, present, or future difficulty in obtaining suitable construction or permanent financing for the development of the Site, or because of economic or market conditions. 8.3 Binding Effect. This Agreement, and all of the terms and conditions hereof, shall be binding upon and inure to the benefit of the parties, any subsequent owner of all or any portion of the Project or the Site, and their respective assigns, heirs or successors in interest, whether or not any reference to this Agreement is contained in the instrument by which such person acquired an interest in the Project or the Site. 8.4 Independent Entity. The parties acknowledge that, in entering into and performing this Agreement, each of the Developer, the City is acting as an independent entity and not as an agent of the other in any respect. 8.5 Agreement Not to Benefit Third Parties. This Agreement is made for the sole benefit of the parties, and no other person shall be deemed to have any privity of contract under this Agreement nor any right to rely on this Agreement to any extent for any purpose whatsoever, nor have any right of action of any kind on this Agreement, nor be deemed to be a third party beneficiary under this Agreement. Notwithstanding the immediately preceding sentence, the Agency shall be an intended third party beneficiary to this Agreement. 8.6 Covenants. The provisions of this Agreement shall constitute mutual covenants which shall run with the land comprising the Site for the benefit thereof, and the burdens and benefits hereof shall 1150"015010-0087 -14- 017103.01 a0"13i0G bind and inure to the benefit of each of the parties hereto and all successors in interest to the parties hereto for the term of this Agreement. 8.7 Nonliability of City/Agency Officers and Employees. No official, officer, employee, agent or representative of the City or Agency, acting in his/her official capacity, shall be personally liable to Developer, or any successor or assign, for any loss, costs, damage, claim, liability, or judgment, arising out of or connection to this Agreement, or for any act or omission on the part of the City or Agency. 8.8 Covenant Against Discrimination. Developer and City covenant and agree, for themselves and their respective successors and assigns, that there shall be no discrimination against, or segregation of, any person or group or persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry, or any other impermissible classification, in the performance of this Agreement. Developer shall comply with the Americans with Disabilities Act of 1990, as amended (42 U.S.C. §§ 12101, etsed.). 8.9 Amendment of Agreement. This Agreement may be amended from time to time by mutual consent of the original parties or such party to which the Developer assigns all or any portion of its interest in this Agreement, in accordance with the provisions of the City's Development Agreement Ordinance and Government Code Sections 65867 and 65868. 8.10 No Waiver. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the party against whom enforcement of a waiver is sought and referring expressly to this Section. No delay or omission by either party in exercising any right or power accruing upon non-compliance or failure to perform by the other party under any of the provisions of this Agreement shall impair any such right or power or be construed to be a waiver thereof, except as expressly provided herein. No waiver by either party of any of the covenants or conditions to be performed by the other party shall be construed or deemed a waiver of any succeeding breach or nonperformance of the same or other covenants and conditions hereof. 8.11 Severability. If any terns, provision, covenant or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions of this Agreement shall continue in full force and effect, to the extent that the invalidity or unenforceability does not impair the application of this Agreement as intended by the parties. 8.12 Cooperation in Carrying Out Agreement. Each party shall take such actions and execute and deliver to the other all such further instruments and documents as may be reasonably necessary to carry out this Agreement in order 21-50 015610-0087 , w� 627103.01 a02'13,06 —15— t to provide and secure to the other party the full and complete enjoyment of its rights and privileges hereunder. 8.13 Estoppel Certificate. Any party hereunder may, at any time, deliver written notice to any other party requesting such party to certify in writing that, to the best knowledge of the certifying party, (i) this Agreement is in full force and effect and a binding obligation of the parties, (ii) this Agreement has not been amended or modified either orally or in writing, or if so amended, identifying the amendments, (iii) the requesting party is not in default in the performance of its obligations under this Agreement, or if in default, describing the nature and amount of any such defaults, and (iv) any other reasonable information requested. A party receiving a request hereunder shall execute and return such certificate within thirty (30) days following receipt of such written request. The City Manager, Assistant City Manager, and Community Development Director are each authorized to sign and deliver an estoppel certificate on behalf of the City. The City acknowledges that a certificate hereunder may be relied upon by transferees and Mortgagees. 8.14 Construction. This 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 that might otherwise apply. As used in this Agreement, and as the context may require, the singular includes the plural and vice versa, and the masculine gender includes the feminine and vice versa. 8.15 Recordation. This Agreement shall be recorded with the County Recorder of Riverside County at Developer's cost, if any, within the period required by Government Code Section 65868.5. Amendments approved by the parties, and any cancellation or termination of this Agreement, shall be similarly recorded. 8.16 Captions and References. The captions of the paragraphs and subparagraphs of this Agreement are solely for convenience of reference, and shall be disregarded in the construction and interpretation of this Agreement. Reference herein to a paragraph or exhibit are the paragraphs, subparagraphs and exhibits of this Agreement. 8.17 Time. Time is of the essence in the performance of this Agreement and of each and every term and condition hereof as to which time is an element. 8.18 Recitals & Exhibits Incorporated; Entire Agreement. The Recitals to this Agreement and all of the exhibits and attachments to this Agreement are, by this reference, incorporated into this Agreement and made a part hereof. This Agreement, including all Exhibits attached hereto, constitutes the entire agreement between the 1_156,015610-0087 -16- 027103.01 a02, 13/06 parties with respect to the subject matter of this Agreement, and this Agreement supersedes all previous negotiations, discussions and agreements between the parties, and no parole evidence of any prior or other agreement shall be permitted to contradict or vary the terms hereof. 8.19 Exhibits. Exhibits "A" — "F" to which reference is made in this Agreement are deemed appropriated herein in their entirety. Said exhibits are identified as follows: A Legal Description of Site B Legal Description of Agency Parking Lots C Conditions of Approval D Restriction E Compliance Certificate F General Assignment and Assumption Agreement 8.20 Counterpart Signature Pages. For convenience the parties may execute and acknowledge this agreement in counterparts and when the separate signature pages are attached hereto, shall constitute one and the same complete Agreement. 8.21 Authority to Execute. Developer warrants and represents that (1) it is duly organized and existing, (ii) it is duly authorized to execute and deliver this Agreement, (iii) by so executing this Agreement, Developer is formally bound to the provisions of this Agreement, (iv) Developer's entering into and performance of its obligations set forth in this Agreement do not violate any provision of any other agreement to which Developer is bound, and (v) there is no existing or threatened litigation or legal proceeding of which Developer is aware which could prevent Developer from entering into or performing its obligations set forth in this Agreement. 8.22 Governing Law; Litigation Matters. The internal laws of the State of California shall govern the interpretation and enforcement of this Agreement without regard to conflicts of law principles. Any action at law or in equity brought by any party hereto for the purpose of enforcing, construing, or interpreting the validity of this Agreement or any provision hereof shall be brought in the Superior Court of the State of California in and for the County of Riverside, or such other appropriate court in said county, and the parties hereto waive all provisions of law providing for the filing, removal, or change of venue to any other court. Service of process on City Entities 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 of California. In the event of any action between the parties hereto seeking enforcement of any of the terms of this Agreement or otherwise arising out of this Agreement, the prevailing party in such litigation shall be awarded, in addition to such relief to which such party is entitled, its reasonable attorney's fees, expert witness fees, and litigation costs and expenses. I ,f,%015610-0087 027103.01 a02,13,,00 _ 1 �— 8.23 No :Brokers. Each of the City and the Developer represents to the other party that it has not engaged the services of an.y finder or broker and that it is not liable for any real estate commissions, broker's fees, or finder's fees which may accrue by means of this Agreement, and agrees to hold harmless the other party from such commissions or fees as are alleged to be due from the party making such representations. IN WITNESS WHEREOF, the Developer and the City have executed this Agreement as of the Reference Date. "DEVELOPER" CALLE ESTADO, L.L.C., a California limited liability company By: Its: By: Its: [Signatures continue on next page.] 150/015610-0087 627103.01 ao2;13i06 -18- "CITY" CITY OF LA QUINTA, a California municipal corporation and charter city M ATTEST: June Greek City Clerk APPROVED AS TO FORM RUTAN & TUCKER, LLP M. Katherine Jenson City Attorney Thomas P. Genovese City Manager "AGENCY" LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic M ATTEST: .Tune Greek Agency Clerk APPROVED AS TO FORM RUTAN & TUCKER, LLP Thomas P. Genovese Executive Director M. Katherine Jenson Agency Counsel gg 2156r015610-0087 i 6-17103.01 a0- 13%06 -19- STATE OF CALIF'ORNIA ) ss COUNTY OF ) On , before me, personally appeared 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] STATE OF CALIFORNIA ) ss COUNTY OF ) On , before me, personally appeared 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] Notary Public 21156;015610-0087 q �7 627103.01 a0-1/13/06 -20- EXHIBIT "A" LEGAL DESCRIPTION OF SITE Real property in the City of La Quinta, County of Riverside, State of California, described as follows: LOTS 10, 11 AND 12 IN BLOCK 9 OF DESERT CLUB TRACT, UNIT NO. 1, IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 19, PAGE 75 OF MAPS, IN THE OFFICE OF THE RECORDER OF SAID COUNTY. APN: 770-152-009-7; 772-152-010-7 g 2156/015610-0087 6?7103.01 a02i 1306 -2 1 - EXHIBIT "B" LEGAL DESCRIPTION OF AGENCY PARKING LOTS That certain real property located in the City of La Quinta, County of Riverside, State of California, more particularly described as follows: Lots 7, 8, 9, 101 111 12, 131 14 and 15 in Block 122 of Santa Carmelita at Vale La Quinta Unit Number 14, as shown by map on file in Book 18 pages 82 and 83 of Maps, Records of Riverside County, California. Mi 156 01 SO]0-0087 0_17103.01 a0?1300 -22- EXHIBIT "C" CONDITIONS OF APPROVAL VILLAGE USE PERMIT 2005-027 CONDITIONS OF APPROVAL GENERAL CONDITIONS OF APPROVAL 1 . Village Use Permit 2005-027 (VUP 2005-027) shall be developed in compliance with these conditions and all approved site plan, elevation, color, materials and other approved exhibits submitted for this application, and any subsequent amendment(;). In the event of any conflicts, these conditions shall take precedence. In the event the Development Agreement referenced in Condition #44 is not entered into, this Village Use Permit approval is null and void. 2. This approval shall expire two years after its effective date, as determined pursuant to Section 9.200.060.0 of the Zoning Code, unless extended pursuant to the provisions of Section 9.200.080. 3. The applicant agrees to defend, indemnify, and hold harmless the City of La Quinta (the "City"), its agents, officers and employees from any claim, action or proceeding to attack, set aside, void, or annul the approval of this development application or any application thereunder. The City shall have sole discretion in selecting its defense counsel. The City shall promptly notify the developer of any claim, action or proceeding and shall cooperate fully in the defense. 4. Prior to the issuance of any permit by the City, the applicant shall obtain the necessary permits and/or clearances from the following agencies: • Riverside County Fire Marshal • La Quinta Building and Safety Department • La Quinta Public Works Department (Grading/ Improvement/Encroachment Permits) • La Quinta Community Development Department • Riverside County Environmental Health Department • Desert Sands Unified School District • Coachella Valley Water District (CVWD) • Southern California Gas Company • Imperial Irrigation District (IID) • California Water Quality Control Board (CWQCB) • Waste. Management of the Desert 2156,015610-0087 027103.01 a02113%06 -23- The applicant is responsible for any requirements of the permits or clearances from those jurisdictions. If the requirements include approval of improvement plans, applicant shall furnish proof of said approvals prior to obtaining City approval of the plans. 5. The applicant shall comply with applicable provisions of the City's NPDES stormwater discharge permit, Sections 8.70.010 et seq. (Stormwater Management and Discharge Controls) and 13.24.170 (Clean Air/Clean Water), LQMC; Riverside County Ordinance No. 457; and the State Water Resources Control Board's Order No. 99-08-DWQ. 6. Handicap access and facilities shall be provided in accordance with Federal (ADA), State and local requirements. Handicap accessible parking shall generally conform to the approved exhibits for VUP 2005-027. 7. All parking area civil plans and improvements shall be developed in accordance with the standards set forth in applicable portions of Section 9.150.080 of the Zoning Code, and these conditions, which shall take precedence in the event of any conflicts with said Section. PROPERTY RIGHTS 8. Prior to issuance of any permit(s), the applicant shall acquire or confer easements and other property rights necessary for the construction or proper functioning of the proposed development. Conferred rights shall include irrevocable offers to dedicate or grant access easements to the City for emergency services and for maintenance, construction and reconstruction of essential improvements. 9. The applicant shall offer for dedication those easements necessary for the placement of, and access to, utility lines and structures, drainage basins, mailbox clusters, and common areas shown on the Village Use Permit. 10. Direct vehicular access from any portion of the site with frontage along Desert Club Drive and Calle Estado is restricted, except for those access points identified on the approved site plan, or as otherwise conditioned in these conditions of approval. 11. The applicant shall furnish proof of easements or written permission, as appropriate, from owners of any abutting properties on which grading, retaining wall construction, permanent slopes, or other encroachments are to occur. '_156-015610-0087 r 617103.01 a02'13-06 -24- ;; 12. The applicant shall cause no easements to be granted, or recorded, over any portion of the subject property, between the date of approval of this Village Use Permit and the date of final acceptance of the on -site and off -site improvements for this Village Use Permit unless such easements are approved by the City Engineer. IMPROVEMENT PLANS As used throughout these conditions of approval, professional titles such as "engineer'', "surveyor", and "architect" refer to persons currently certified or licensed to practice their respective professions in the State of California. 13. Improvement plans shall be prepared by or under the direct supervision of qualified Engineers and/or architects, as appropriate, and shall comply with the provisions of Section 13.24.040 (Improvement Plans), LQMC. 14. The following improvement plans shall be prepared and submitted for review and approval by the City. A separate set of plans for each line item specified below shall be prepared. The plans shall utilize the minimum scale specified, unless otherwise authorized by the City Engineer in writing. Plans may be prepared at a larger scale if additional detail or plan clarity is desired. Note: the applicant may be required to prepare other improvement plans not listed here pursuant to improvements required by other agencies and utility purveyors. A. On -Site Rough Grading Plans 1 " = 30' Horizontal B. PM 10 Plan 1 " = 40' Horizontal C. SW'PPP I" = 40' Horizontal NOTE: A through C to be submitted concurrently. D. On -Site Precise Grading Plans (Commercial Development) 1 " = 30' Horizontal Other engineered improvement plans prepared for City approval that are not listed above shall be prepared in formats approved by the City Engineer prior to commencing plan preparation. On -Site Precise Grading Plans shall normally include all on -site surface improvements including but not necessarily limited to finish grades for curbs & gutters,, sidewalks, building floor elevations, parking lot improvements and ADA requirements for the parking lot and access to the building; and 2 150015010-0087 0-17103.01 a02;13i06 -25- showing the existing street improvements out to at least the center lines of adjacent existing streets -including ADA accessibility route to surrounding buildings, parking facilities and public streets. 15. The City maintains standard plans, details and/or construction notes for elements of construction on the Public Works Online Engineering Library at http://www.la-guinta.org/publlcworks/tractl/z onlinelibrary/0 intropage.htm 16. The applicant shall furnish a complete set of the AutoCAD files of all approved improvement plans on a storage media acceptable to the City Engineer. The files shall be saved in a standard AutoCAD format so they may be fully retrievable through a basic AutoCAD program. At the completion of construction, and prior to the final acceptance of the improvements by the City, the applicant shall update the AutoCAD files in order to reflect the as -built conditions. Where the improvement plans were not produced in a standard AutoCAD format, or a file format that can be converted to an AutoCAD format, the City Engineer will accept raster -image files of the plans 8.24 GRADING 17. Prior to occupancy of the project site for any construction, or other purposes, the applicant shall obtain a grading permit approved by the City Engineer. 18. To obtain an approved grading permit, the applicant shall submit and obtain approval of all of the following: A. A precise grading plan prepared by a qualified engineer or architect, B. A preliminary geotechnical ("soils") report prepared by a qualified engineer, C. A Fugitive Dust Control Plan prepared in accordance with Chapter 6.16 (Fugitive Dust Control), LQMC. All grading shall conform to the recommendations contained in the Preliminary Soils Report, and shall be certified as being adequate by a soils engineer, or by an engineering geologist. The applicant shall furnish security, in a form acceptable to the City, and in an amount sufficient to guarantee compliance with the approved Fugitive 2150'015010-0087 627103.01 a02/13i06 2 Dust Control Plan provisions as submitted with its application for a grading permit. 19. The applicant shall maintain all open graded, undeveloped land to prevent wind and water erosion of soils. All such land shall be planted with interim landscaping or provided with other erosion control measures as approved by the Public Works Departments under the Fugitive Dust Control Plan. 20. Prior to issuance of the main building permit, the applicant shall provide a lot pad certification, stamped and signed by qualified engineers or surveyor. nRAin1AnF 21. Nuisance water shall be retained onsite and disposed of in a manner acceptable to the City Engineer. t 1T11 ITIFS 22. The applicant shall obtain the approval of the City Engineer for the location of all utility lines within the right of way and all above -ground utility structures including, but not limited to, traffic signal cabinets, electrical vaults, water valves, and telephone stands, to ensure optimum placement for practical and aesthetic purposes. 23. Underground utilities shall be installed prior to overlying hardscape. For installation of utilities in existing, improved streets, the applicant shall comply with trench restoration requirements maintained or required by the City Engineer. The applicant shall provide certified reports of all utility trench compaction for approval of the City Engineer. STREET AND TRAFFIC IMPROVEMENTS 24. The applicant shall comply with the provisions of Sections 1 3.24.060 (Street Improvements), 13.24.070 (Street Design - Generally) & 13.24.100 (Access For Individual Properties And Development), LQMC for public streets. 25. No additional street improvements are required, except for: A. Desert Club Drive 1) Reconstruct the curb ramp at the Desert Club Drive/Alley "D" intersection as required by the City Engineer. B. Alley "D" t 2156;015010-oos7 627103.01 a02'13 06 —27— 1) Reconstruct the north edge of Alley "D" along the Village Use Permit site's south boundary as required by the City Engineer to facilitate proposed curb construction. PARKING LOTS AND ACCESS POINTS 26. The applicant shall conform to LQMC Chapter 9.150, particularly drive isle width, parking stall dimensions, and parking stall marking design requirements. Parking space markings shall be double four inch wide hairpin stripes as specified in LQMC Chapter 9.150. 27. The applicant shall design street pavement sections using Caltrans' design procedure (20-year life) and site -specific data for soil strength and anticipated traffic loading (including construction traffic). Minimum structural sections shall be as follows (or approved equivalents for alternate materials) : Parking Areas Concrete as proposed by the applicant. Alley "D" 3.0" a.c./4.0" c.a.b. 28. The applicant shall submit current mix designs (less than two years old at the time of construction) for base, asphalt concrete and Portland cement concrete. The submittal shall include test results for all specimens used in the mix design procedure. For mix designs over six months old, the submittal shall include recent (less than six months old at the time of construction) aggregate gradation test results confirming that design gradations can be achieved in current production. The applicant shall not schedule construction operations until mix designs are approved. 29. General access points and turning movements of traffic are limited to the proposed access driveway on Calle Desert Club Drive. All turn movements are permitted. A colored concrete shall be used for the access drive ramp, with a paver system used to define the continuation of the existing pedestrian sidewalk along Desert Club Drive. The entry driveway throat shall be permitted to be constructed as designed, at 1 1 feet in depth rather than the required 20 feet, as permitted under Section 9.65.030.A.3.a., in order to retain the parking space count of 25 on -site spaces. 30. A five-foot wide landscape planter strip shall be provided at the two west property (line parking stalls, with a minimum 4-foot high wall along the property line in front of these two stalls. This shall be shown on the civil and landscape plans as submitted for plan check. LANDSCAPING 2156i015010-0087 —� �— 627103.01 a02/13/06 31. On -site landscape, landscape lighting and irrigation plans shall be submitted for approval by the Community Development Department. Plans shall be in substantial conformance with the conceptual landscaping as approved for the project by Planning Commission. When plan checking is complete, the applicant shall obtain the signatures of CVWD and the Riverside County Agricultural Commissioner prior to submitting for final acceptance by the Community Development Department. QUALITY ASSURANCE 32. The applicant shall employ construction quality -assurance measures which meet the approval of the City Engineer. 33. The applicant shall employ or retain qualified engineers, surveyors, or other appropriate professionals as are required to provide the expertise with which to prepare and sign accurate record drawings, and to provide adequate construction supervision. 34. The applicant shall arrange for, and bear the cost of, all measurement, sampling and testing procedures not included in the City's inspection program but required by the City as evidence that construction materials and methods employed comply with plans, specifications and other applicable regulations. 35. Upon completion of construction, the applicant shall furnish the City with reproducible record drawings of all improvement plans which were approved by the City. Each sheet shall be clearly marked "Record Drawing," "As -Built" or "As -Constructed" and shall be stamped and signed by the engineer or surveyor certifying to the accuracy and completeness of the drawings. The applicant shall have all AutoCAD or raster -image files previously submitted to the City revised to reflect the as -built conditions. FEES AND DEPOSITS 36. The applicant shall pay the City's established fees for plan checking and construction inspection. Fee amounts shall be those in effect when the applicant makes application for plan checking and permits. 37. Provisions; shall be made to comply with the terms and requirements of the City's adopted Art in Public Places program in effect at the time of issuance of building permits. 2 15001-010-0087 0-17101.01 a02,13i00 —29— � 38. Permit(s) issued under this approval shall be subject to the provisions of the Development Impact Fee program in effect at the time said permit(s) are issued. FIRE PROTECTION 39. Specific fire protection requirements will be determined when final building plans are submitted for review. Final conditions will be addressed when building plans are submitted. A plan check fee must be paid to the Fire Department at the time building plans are submitted. MISCELLANEOUS 40. The applicant shall submit a detailed project area lighting plan. All pole - mounted light standards shall conform to lighting standards as in effect when plans are reviewed. Under canopy lighting for building areas shall incorporate flush lens caps or similar recessed ceiling lighting. The lighting plan shall be submitted for review at the time construction plan check for the permanent building permit is made to Building and Safety. 41. A comprehensive sign program shall be submitted for review and approval by the Planning Commission prior to establishment of any individual tenant signs for the project. Provisions of the sign program shall be in compliance with applicable sections of Chapter 9.160 of the Zoning Code. No signs shall be permitted to be placed on any portion of the roof projections along Calle Estado and/or Desert Club Drive. 42. All roof-rriounted mechanical equipment must be internal to the roof design, or screened as an integral part of the roof structure, in a manner so as not to be visible from surrounding properties and streets. Working drawings showing all such equipment and locations shall be submitted to the Building and Safety Department along with the construction plan submittal for building permits. The method and design must be approved by the Community Development Department, prior to any issuance of the main structural building permit. 43. The building plans submitted for plan check shall incorporate the following revisions: A. Appropriately sized planting pots, and/or other similar containers, shall be placed at appropriate intervals at street level, to make up for the lack of planter areas around the building. Automatic irrigation shall be provided to all such containers. 2 156,015010-0087 027103.01 a02!13/06 -30- B. Add architectural detailing to the west building elevation, to relieve the blank wall appearance. Detailing shall employ use of elements such as extended use of the painted faux -tile treatment, some architectural recesses, and the potential for integration of a wall mural as part of the elevation. C. Roof tile shall incorporate a random mudded clay appearance. D. Second -story planter areas and/or containers shall incorporate a down drain system to avoid discoloration damage to the building finish. E. Exposed rafter tail areas on the first and second floor ceiling lines may be reduced in depth if deemed necessary due to encroachment into the existing rights -of -way for Calle Estado and Desert Club Drive. Design changes necessitated by such reduction shall be reviewed and approved by the Community Development Department. F. The central breezeway, connecting the north building elevation and the south parking area, shall be widened from 6 feet to a minimum of R fpPt 44. It is understood by the Applicant that Calle Estado, LLC, has entered into a Letter of Agreement with the City, dated 7/19/05, relating to preparation and possible approval of a Development Agreement for the purpose of clarifying the applicant's parking obligations associated with development of Village Use Permit 2005-027. This Village Use Permit shall not be effective unless and until the Development Agreement has been approved by the City Council and recorded; the applicant further understands that the City Council may choose to reject entering the Development Agreement or modify its contents. While this approval will not be effective until such time as a Development Agreement may become effective, the time limits associated with approval of VUP 2005-027 shall be in effect with respect to expiration, as stated under Condition #2. 45. The permitted office and retail uses shall be limited to those of a general intensity, consistent with the parking ratios of 1 space per 250 s.f. of office and 1 space per 200 s.f. of retail to general office and limit the retail spaces to preclude restaurant and food service uses. This precludes use of office space as a medical use, and retail space for restaurant use and retail food with ancillary seating, unless shared parking or tenant space reductions are determined to maintain the approved parking ratios for this building, or the Development Agreement is amended to allow payment of per -space fees to increase use intensity for the project. 2136i015010-0087 f w 1 , 627103.01 a02,13,06 -3 1 - J 3 46. Applicant shall process a parcel merger, in order to incorporate Lots 10, 1 1 , and 12 into one parcel. The merger shall have been recorded prior to issuance of a permit for the main building. ?1>6i015010-0087 017101.01 a02,13'06 -32- EXHIBIT "D" Restriction V -'1')6i015610-0087 02710�.01 do-ln306 -33- RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 Attn: City Clerk Space Above This Line for Recorder's Use (Exempt from Recording Fee per Gov't Code § 6103) DEED RESTRICTION FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, CALLE ESTADO, L.L.C., a California limited liability company ("Declarant"), hereby covenants and declares for the benefit of the City of La Quinta, a California municipal corporation and charter city (the "City"), the following covenants, conditions, reservations and restrictions, which shall run with the real property described herein and shall be binding on Declarant and City and their successors and assigns, and all other persons or entities acquiring any interest in the real property described herein, and shall remain in full force and effect from the date of recordation of this Deed Restriction unless terminated or modified as hereinafter provided. 1. Pu )ose: Declarant owns the 0.34 acre parcel of real property ("Site") located in the City of La Quinta, County of Riverside, State of California, which Site is legally described in Exhibit "A" attached hereto, and which is the subject of this Deed Restriction. In connection with the Site, the City approved Village Use Permit No. 2005-027 (the "VUP"), subject to conditions of approval, which provides planning and development criteria for a project commonly known as Calle Estado (the "Project"). The La Quinta Municipal Code requires the provision of 42 parking stalls to service the Project. On , 2005 the Declarant, City and the La Quinta, Redevelopment Agency entered that certain Development Agreement (the "Development Agreement") for the purposes of (1) setting forth a per -parking stall up -front payment for the Developer's payment to the City of certain fees that the parties agree are designed to compensate the City for (A) the crediting of 15 parking stalls located in the Agency Parking Lots towards fulfilling the Project's parking obligation; and (B) the potential added wear and tear on the municipal infrastructure which will result from the Development Plan and the crediting of the parking stalls in the Agency Parking Lots; (ii) requiring the Developer and its successors -in -interest to provide public parking on the Site; and (iii) granting Developer a vested right to develop the Site according to the Development Plan. Capitalized terms not defined herein shall have the same meaning as set forth in the Development Agreement. In accordance with Section 3.2 of the Development Agreement, Developer is required to record this Deed Restriction against the Site to (1) require the Developer's payment of the fees as described in Section 3.3 of the Development Agreement, (ii) acknowledge that such fees have been paid and that the parking obligation for the Project is fulfilled by the credit of 2 street side parking spots and 15 parking stalls in the Agency Parking Lots; and (iii) provide for the general public's use of 2 156/015 610-0087 6? 7103.01 a02 13,00 -3 4- Site parking stalls during times when the on -Site businesses are closed as provided in Section 3 and Section 3.5 of -the Development Agreement. 2. Acknowledgement of Payment and Credit of Parking Stalls Located on the Agency Parking Lot. In connection with the Project, the City has credited the Declarant with 2 street -side parking spots (as permitted by the La Quinta Municipal Code) and 15 parking stalls in the Agency Parking Lots, and these stalls are counted towards fulfilling the Project's parking obligations to provide 42 parking stalls for the Project. In connection with this credit, Declarant has paid the City a parking fee in the amount of $12,000 for each parking stall in the Agency Parking Lots credited towards the Project's parking obligation. This Deed Restriction does not operate to create a conveyance, hypothecation, lease, license, sale or any form of transfer of an interest in the parking spots on public streets or the Agency Parking Lots or any exclusive right to use parking spots on public streets or parking stalls in the Agency Parking Lots. Declarant shall have the same right to use parking spots on public streets and parking spaces in the Agency Parking Lots as members of the general public; provided, however, that Declarant shall enforce a policy that encourages Project employees to park their automobiles at the Agency Parking Lots. 3. Use of Site Parking Lot by General Public. The parking stalls located on the Site shall be available to the general public for use between the hours of 6:00 p.m. and 2:00 a.m.; provided, however, that Declarant (and/or its permitted successors) may reserve five (5) designated spaces for any on -Site businesses that remain open after 6:00 p.m. At the request of Declarant, the Director of Community Development may consider increasing the number of designated spaces to equal up to 50% of the on -Site parking spaces if the Director of Community Development determines that an increase in designated spaces is warranted. Any such approval must be in writing to be effective. Declarant shall not erect or maintain entry gates, regulated access barriers or any other driveway barrier. Except for signage identifying designated spaces, Declarant shall not erect or place any signage on the Site prohibiting public parking during times that on -Site businesses are closed. The parking lot on the Site shall be lighted in conformity with the La Quinta Municipal Code between dusk and 1 1:00 p.m. every day of the week. 4. Indemnification. Declarant agrees to and shall indemnify, hold harmless, and defend, the City and La Quinta Redevelopment Agency ("Agency") and their respective officers, officials, members, agents, employees, and representatives (collectively, "the Indemnified Parties"), from liability or claims for death or personal injury and claims for property damage which may arise from the acts, errors, and/or omissions of the Declarant or its contractors, subcontractors, agents, employees or other persons acting on its behalf in relation to the Project and/or this Agreement, except to the extent that the liability or claims arise from the City's or the Agency's gross negligence or willful misconduct. The foregoing indemnity applies to all deaths, injuries, and damages, and claims therefor, suffered or alleged to have been suffered by reason of the acts, errors, and/or omissions referred to in this paragraph, regardless of whether or not the City prepared, supplied, or approved plans or specifications, or both, and regardless of whether or not any insurance policies are applicable. Declarant agrees to and shall indemnify, hold harmless, and defend, the Indemnified Parties from any challenge to the validity of this Agreement, the Restriction, or to the City Entities' implementation of its rights under this Agreement; the Declarant shall indemnify, hold harmless, pay all costs and provide defense for the Indemnified Parities in said action or proceeding with counsel chosen by the City. $ 1 3150M 15010-0087 027103.01 a02 13%06 -35- In the event the Indemnified Parties are made a party to any action, lawsuit, or other adversarial proceeding in any way involving claims specified in paragraphs (a) or (b) above, Declarant shall provide a defense to the Indemnified Parties, or at the Indemnified Parties' option, reimburse the Indemnified Parties their costs of defense, including attorneys fees, incurred in defense of such claim. The Indemnified Parties shall have the right to select legal counsel of their choice. In addition, Declarant shall be obligated to promptly pay any final judgment or portion thereof rendered against the Indemnified Parties. The City Entities shall, at no cost to the City Entities, cooperate with the Declarant in any such defense as Declarant may reasonably request,. 5. Run with the Land; Binding on Successors and Assigns. The covenants, conditions, reservations and restrictions herein shall run with the Site and shall be binding upon Declarant and each successive owner, lessee, licensee and other occupant of all or any portion of the Site, and shall benefit the City and be enforceable by the City and its successors and assigns. Every person or entity who now or hereafter owns or acquires any right, title or interest in or to any portion of the Site is and shall be conclusively deemed to have consented and agreed to every covenant, condition, reservation and restriction contained herein whether or not any reference to this Deed Restriction is contained in the instrument by which such person or entity acquired an interest in the Site. 6. Term; Amendment and Termination. The covenants, conditions, reservations and restrictions may be validly terminated, amended or modified, in whole or in part, only by recordation with the Riverside County Recorder of a proper instrument duly executed and acknowledged by (a) City, or, as applicable, its successors and assigns, and (b) the owner(s) of the fee interest in the portion of the Site that is directly affected by such termination, amendment or modification. 7. Recording. This Deed Restriction shall be recorded on the Site described in Exhibit "A" in the Office of the County Recorder, Riverside County, California. S. Authority of Signatories to Bind Principals. The persons executing this Deed Restriction on behalf of their respective principals represent that (1) they have been authorized to do so and that they thereby bind the principals to the terms and conditions of this Deed Restriction and (ii) their respective principals are properly and duly organized and existing under the laws of, and permitted to do business in, the State of California. 9. Counterparts. This Deed Restriction may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which counterparts taken together shall constitute but one and the same instrument. [Signatures on next page.] 2156/015610-0087 027103.01 aO2113/06 -36- IN WITNESS WHEREOF, this Deed Restriction has been executed by the parties as of the date set forth above. "Developer" CALLE ESTADO, L.L.C., a California limited liability company By: Its: By: Its: "CITY" CITY OF LA QULNTA, a California municipal corporation and charter city In ATTEST: Thomas P. Genovese June Greek City Manager City Clerk APPROVED AS TO FORM RUTAN & TUCKER, LLP M. Katherine Jenson City Attorney 1150,015610-0087 627103.01 a02113/06 _37_ STATE OF CALIF�ORNIA ) ) ss COUNTY OF O1l , before me, personally appeared 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] STATE OF CALIFORNIA ) ss COUNTY OF _ ) On , before me, personally appeared 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 in,/ hand and official seal. Notary Public [SEAL] 2156/015010-0087 627103.01 a02/13/06 _38_ EXHIBIT "A" LEGAL DESCRIPTION OF SITE Real property in the City of La Quinta, County of Riverside, State of California, described as follows: LOTS 10, 11 AND 12 IN BLOCK 9 OF DESERT CLUB TRACT, UNIT NO. 1, IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 19, PAGE 75 OF MAPS, IN THE OFFICE OF THE RECORDER OF SAID COUNTY. APN: 770-152-009-7; 772-152-010-7 3156,015610-0087 627103.01 a03i13,06 -39- EXHIBIT "E" COMPLIANCE CERTIFICATE _' 150 015610-0087 61-7103.01 aO-' 13;00 -40- COMPLIANCE CERTIFICATE (CALLE ESTADO DEVELOPMENT AGREEMENT) The undersigned, CALLE ESTADO, L.L.C., a California limited liability company ("Developer"), pursuant to Section 4.1 of that certain Development Agreement dated , 2005, (the "Development Agreement"), by and among Developer, the City of La Quinta, a California municipal corporation and charter city (the "City") and the La Quinta Redevelopment Agency, a public body, corporate and politic (the "Agency"), by its signature below hereby certifies to the City, for the City's reliance that: 1. Capitalized terms not defined herein shall have the same meaning as set forth in the Development Agreement; 2. The undersigned is familiar with the certifications and representations set forth in this Compliance Certificate; 3. Developer has performed and complied with its obligations under the Development Agreement to be performed or complied with by it on or prior to the date hereof. Developer has also performed all Conditions of Approval to be performed or complied with by it on or prior to the date hereof. Not by way of limitation of the foregoing, the Developer warrant and represents that: (1) the Restriction required by Section 3.2 of the Development Agreement has been approved by the City and recorded against the Site; (2) all payments required pursuant to Section 3.3.2 of the Development Agreement have been paid; and (3) all Conditions of Approval to be performed or complied with as of the date hereof have been satisfied in the manner set forth in Schedule 1, which schedule identifies all applicable Conditions of Approval and a description of how the condition has been satisfied. IN WITNESS WHEREOF, this Compliance Certificate is executed effective the day of , under penalty of perjury under the laws of California. CALLE ESTADO, L.L.C., a California limited liability company By: Its: By: Its: P L W 2156 015610-0087 027103.01 d02;13 06 -41- SCHEDULE I CONDITIONS OF APPROVAL [DEVELOPER SHALL ATTACH A FULL AND COMPLETE LIST OF ALL CONDITIONS OF APPROVAL THAT ARE APPLICABLE TO THE PROJECT TO DATE AND A DESCRIPTION OF HOW EACH CONDITION OF APPROVAL HAS BEEN SATISFIED.] I,O 01 Sbl o-0087 027101.01 aO2 13 00 -42- EXHIBIT "F" GENERAL ASSIGNMENT AND ASSUMPTION AGREEMENT -1156015610-OO87 627103.01 a0'_ 13;06 -43- RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 Attn: City Clerk Space Above This Line for Recorder's Use (Exempt from Recording Fee per Gov't Code § 6103) ASSIGNMENT AND ASSUMPTION AGREEMENT THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (the "Assignment") is made and entered into as of ("Effective Date"), by and between CALLE ESTADO, L.L.C., a California limited liability company (the "Developer" or "Assignor") and [ASSIGNEE] ("Assignee"), with reference to the following Recitals. Recitals A. Assignor is the developer of 0.34 acres of real property located in the City of La Quinta, County of Riverside, State of California (the "Site"), which is legally described in Exhibit "A" attached here. B. Capitalized tenns not defined herein shall have the same meaning as set forth in the Development Agreement. C. Assignor, as "Developer," the City of La Quinta, a California municipal corporation ("City") and the La Quinta Redevelopment Agency, a public body, corporate and politic ("Agency"), have entered into that certain Development Agreement dated 2005 (the "Development Agreement"), for purposes of, among other things, (1) setting forth a per -parking stall up -front payment for the Developer's payment to the City of certain fees that the parties agree are designed to compensate the City for (A) the crediting of 15 parking stalls located in the Agency Parking Lots towards fulfilling the Project's parking obligation; and (B) the potential added wear and tear on the municipal infrastructure which will result from the Development Plan and the crediting of the parking stalls in the Agency Parking Lots; (ii) requiring the Developer and its successors -in -interest to provide public parking on the Site; and (iii) granting Developer a vested right to develop the Site according to the Development Plan. D. Concurrently with the Effective Date, Assignor shall have conveyed to Assignee the Site [or the portion thereof described on Exhibit B attached hereto (the "Designated Site")]. r� 156/015610-0087 -44- 6-17101.01 a02i 13%06 E. In accordance with Section 7.1 of the Development Agreement, Assignor now desires to assign all of its obligations and its right, title, and interest in and to the Development Agreement [as to the Designated Site] to Assignee, and Assignee desires to accept such assignment on, and subject to, the terms and conditions set forth in this Assignment. NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: A,2reement 1. Assignment. From and after the Effective Date, Assignor hereby assigns, conveys, transfers and delivers to Assignee all of Assignor's right, title, interest, and obligation in, to and under the Development Agreement [as the same applies to the Designated Site], and Assignee hereby accepts such assignment and agrees to assume performance of all terms, covenants and conditions occurring or arising under the Development Agreement [as the same applies to the Designated Site] from and after the date of this Assignment. 2. Assumption of Obligations. By acceptance of this Assignment, Assignee hereby agrees to assume all of Assignor's right, title, interest and obligation in, to and under the Development Agreement [as the same applies to the Designated Site], and Assignee agrees to timely discharge, perform or cause to be performed and to be bound by all of the liabilities, duties and obligations imposed in connection with the Development Agreement [as the same applies to the Designated Site], from and after the date of this Assignment to the same extent as if Assignee had been the original party thereto. 3. Successors and Assigns. This Assignment shall be binding upon and shall inure to the benefit of the successors and assigns of the respective parties hereto. 4. Governing Law. This Assignment shall be governed by and construed in accordance with the laws of the State of California. 5. Further Assurances. The parties covenant and agree that they will execute such other and further instruments and documents as are or may become necessary or convenient to effectuate and carry out this Assignment. 6. Authority of Signatories to Bind Principals. The persons executing this Assignment on behalf of their respective principals represent that (1) they have been authorized to do so and that they thereby bind the principals to the terms and conditions of this Assignment and (ii) their respective principals are properly and duly organized and existing under the laws of, and permitted to do business in, the State of California. 7. Interpretation. The paragraph headings of this Assignment are for reference and convenience only and are not part of this Assignment. They have no effect upon the construction or interpretation of any part hereof. The provisions of this Assignment shall be construed In a reasonable manner to effect the purposes of the parties and of this Assignment. S. Counterparts. This Assignment may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which 156,015010-0087 -45- 61-7103.01 a02-'13%06 counterparts taken together shall constitute but one and the same instrument. IN WITNESS WHEREOF, this Assignment has been executed by the parties as of the date set forth above. "Assignor" CALLE ESTADO, L.L.C., a California limited liability company By: Its: By: Its: "Assignee" [INSERT ASSIGNEE SIGNATURE BLOCK] 21�0,015610-0087 -46- 027103.01 a02n3-06 STATE OF CALIFORNIA ) ss COUNTY OF ) On , before me, personally appeared 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] STATE OF CALIFORNIA ) ss COUNTY OF ) On , before me, personally appeared 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] 2156/015610-0087 -47- 6-17103.01 aO2,136 ro EXHIBIT "A" LEGAL DESCRIPTION OF SITE Real property in the City of La Quinta, County of Riverside, State of California, described as follows: LOTS 10, 11 AND 12 IN BLOCK 9 OF DESERT CLUB TRACT, UNIT NO. 1, IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 19, PAGE 75 OF MAPS, IN THE OFFICE OF THE RECORDER OF SAID COUNTY. APN: 770-152-009-7; 772-152-010-7 2156/015610-0087 627101.01 a02/13/06 -48- J ot OF TNti� COUNCIL/RDA MEETING DATE: February 21, 2006 AGENDA CATEGORY: BUSINESS SESSION: ITEM TITLE: Adoption of a Resolution Approving a n CONSENT CALENDAR: Development Agreement for Parking Management to Allow Construction of a ± 1 9,433 Gross Square -Foot, STUDY SESSION: Two -Story Office Building with a Coffee Bar, in The Village at La Quinta, as Approved under Development PUBLIC HEARING: Agreement 2005-009, and Village Use Permit 2005-032 RECOMMENDATION: Adopt a Resolution of the Redevelopment Agency approving Development Agreement 2005-009. FISCAL IMPLICATIONS: Approval of the Development Agreement would result in revenue of up to $228,000, which would be earmarked for future Village parking improvements. BACKGROUND AND OVERVIEW: Development Agreement 2005-009 was approved by the City Council on February 7, 2006, by adoption of Ordinance 426. The Village Use Permit approval requires that the developer and the City enter into a Development Agreement, for the purpose of clarifying the applicant's parking obligations associated with development of the project. The La Quinta Redevelopment Agency must now approve the agreement in order for the project to move forward. Attached is the Development Agreement as approved by the City Council, which requires that the applicant pay a $1 2,000 per -space fee for up to 19 parking stalls, in exchange for credit toward meeting the required parking for the project. The applicant may reduce his needed credit by submitting street improvement plans for Main Street, which would allow for on -street parking. Main Street is currently a 28-foot travel width, which precludes any on -street parking. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency Board include: 1. Adopt a Resolution of the Redevelopment Agency approving Development Agreement 2005-009; or 2. Do not adopt a Resolution of the Redevelopment Agency approving Development Agreement 2005-009; or 3. Continue this item for further consideration; or 4. Provide staff with alternative direction. Respectfully submitted, Dougla R. Evans Community Development Director Approved for submission by, s` Thomas P. Genovese, Executive Director Attachments: 1 . Development Agreement for VUP 2005-032 f sw� RESOLUTION NO. RA 2006- A RESOLUTION OF THE LA QUINTA REDEVELOPMENT AGENCY OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING A DEVELOPMENT AGREEMENT FOR PARKING MANAGEMENT, ASSOCIATED WITH AN APPROVED DEVELOPMENT PROJECT DEVELOPMENT AGREEMENT 2005-009 NISPERO PROPERTIES, INC. WHEREAS, California Government Code Section 65864 et seq. (the "Development Agreement Law") authorizes cities to enter into binding development agreements with persons having a legal or equitable interest in real property for the development of such property, all for the purpose of strengthening the public planning process, encouraging private participation and comprehensive planning, and identifying the economic costs of such development; and, WHEREAS, the City Council of the City of La Quinta, California, did on the 7th day of February, 2006, approve Village Use Permit 2005-032 for a ± 19,433 gross square -foot commercial office building, to include a 935 square - foot coffee bar use, and inclusive of the Development Agreement (DA 2005-009) as adopted by Ordinance 426 of the City Council, to be located at the northwest corner of Main Street and Avenida La Fonda, more particularly described as: LOTS 68 & 77, MB 021 /060, DESERT CLUB TRACT UNIT #4 WHEREAS, the Redevelopment Agency of the City of La Quinta, California, is entering into this Agreement for the sole and exclusive purposes of providing its consent, as provided in said Development Agreement, to the crediting of 19 parking stalls on the Agency Parking Lot property, as described in said Development Agreement, towards the Project's parking and for no other purpose; and, WHEREAS, the La Quinta Redevelopment Agency finds that all actions required to be taken by the City precedent to the adoption of this Resolution, have been regularly and duly taken. NOW, THEREFORE, BE IT RESOLVED by the La Quinta Redevelopment Agency of the City of La Quinta, as follows: 1. That the above recitations are true and constitute the findings of the Agency in this case; 2. That it does hereby approve Development Agreement 2005-009 for the reasons set forth in this Resolution. Resolution No. RA 2006- Development Agreement 2005-009 Nispero Properties, Inc. February 21, 2006 PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta Redevelopment Agency, held on this the 21 st day of February, 2006, 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 APPROVED AS TO FORM: M. KATHERINE JENSON, Agency Counsel La Quinta Redevelopment Agency P:\Reports - CC\2006\2-21-06\DA 009\rdaresoDA009.rtf RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 Attn: City Clerk ATTACHMENT 1 Space Above This Line for Recorder's Use (Exempt from Recording Fee per Gov't Code § 6103) DEVELOPMENT AGREEMENT BY AND AMONG THE CITY OF LA QUINTA ("CITY") THE LA QUINTA REDEVELOPMENT AGENCY ("AGENCY") NISPERO PROPERTIES, INC. A CALIFORNIA CORPORATION ("DEVELOPER") r 21561015610-0088 .. 009968.04 a02,09,06 DEVELOPMENT AGREEMENT This Development Agreement (the "Agreement") is entered into as of the day of 2006 ("Reference Date"), by and among the CITY OF LA QUINTA, a California municipal corporation and charter city (the "City"), the LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic (the "Agency" and, collectively with the City, the "City Entities") and NISPERO PROPERTIES, INC., a California corporation (the "Developer"), with reference to the following: RECITALS A. Government Code Sections 65864-65869.5 (the "Development Agreement Act") authorize the City to enter into a binding development agreement for the development of real property within its jurisdiction with persons having legal or equitable interest in such real property. B. Pursuant to Section 65865 of the Government Code, the City has adopted its Development Agreement Ordinance (La Quinta Municipal Code Section 9.250.030) establishing procedures and requirements for such development agreements ("Development Agreement Ordinance"). C. Developer owns the 0.72 acre parcel of real property ("Site") located at the northwest corner of Avenida La Fonda and Main Street, in the City of La Quinta, County of Riverside, State of California, which Site is legally described in Exhibit "A" attached hereto, and which is the subject of this Agreement. D. Prior to the execution of this Agreement, the City approved Village Use Permit No. 2005-032 (the "VUP"), subject to conditions of approval. The VUP provides planning and development criteria for a proposed project on the Site (the "Project"). The Project will consist of the development of the Site with a proposed 19,433 gross square foot structure intended for general uses, including 935 square feet of space for a coffee bar; the first floor will contain approximately 9,470 square feet of gross floor area as office and coffee bar uses and the second floor will contain 9,963 square feet of gross floor area as general office uses. A 49-space parking lot will occupy the remainder of the Site. The building will be generally situated on the north portion of the Site, with the front of the building facing Avenida La Fonda. The VUP is known as the "Development Plan". E. The City's Municipal Code requires that a total of 68 parking stalls be provided to service the Project. The Site is situated such that only 49 of the 68 required parking stalls are available for the Project. The Project requires an additional 19 parking stalls. To fulfill the remaining parking; requirements for the Project, the VUP was conditioned on the Developer entering a development agreement with the City Entities to require the Developer to pay a parking fee in exchange for the City crediting 19 parking stalls in the Agency -owned parking lot (which lots is located at the northwest corner of Avenida Bermudas and Avenida Montezuma, in the City of La Quinta, County of Riverside, State of California) which parking lot is legally described in Exhibit "B" attached hereto (the "Agency Parking Lots") towards fulfilling the Project's parking obligation of providing 68 parking stalls. The Agency Parking Lot is located in close proximity to the Site and is within close walking distance of the Site. The conditions of the 2156,'015610-0088 669968.04 a02 09!06 I VUP further permit the Developer a one -for -one credit for any street parking spaces created on Main Street, pursuant to the City Public Works Department's and Community Development Director's approval of a street improvement plan conforming to City Municipal Code requirements. In the event that on -street parking is created pursuant to an approved street improvement plan, then the number of stalls credited from the Agency Parking Lots will be reduced on a one -for -one basis (i.e., the 19 stalls credited will be reduced on a one -for -one basis against street parking spaces created) and the fee will be reduced to account for the credited street parking spaces. In the event that street parking spaces are provided then the parties shall execute and record the Memorandum of Development Agreement Off -Site Parking Space and Fee Reduction attached hereto as Exhibit H. The parties to this Agreement agree and acknowledge that 'the Agency is entering this Agreement for the sole and exclusive purposes of providing its consent, as provided in Section 2.4.1, to the crediting of 19 parking stalls on the Agency Parking Lots towards the Project's parking and for no other purpose. Without limiting the City's use of these fees, it is intended that the fees paid by the Developer shall be used to add or provide additional parking in the future. F. The Development Plan also requires, in addition to the fee described above, and as consideration for the City crediting 19 parking stalls in the Agency Parking Lots towards the Project's parking obligation, that the City and Developer enter an agreement providing that the parking stalls located on the Site shall be available for use by the general public during hours when the on -Site businesses are closed. G. Consistent with Section 9.250.030 of the La Quinta Municipal Code, the parties desire to enter into a binding agreement for purposes of (1) setting forth a per -parking stall up- front payment for the Developer's payment to the City of certain fees that the parties agree are designed to compensate the City for (A) the crediting of 19 parking stalls located in the Agency Parking Lot towards fulfilling the Project's parking obligation; and (B) the potential added wear and tear on the municipal infrastructure which will result from the Development Plan and the crediting of the parking stalls in the Agency Parking Lots; (ii) requiring the Developer and its successors -in -interest to provide public parking on the Site; and (iii) granting Developer a vested right to develop the Site according to the Development Plan. F. Among other purposes, this Agreement is intended to be, and shall be construed as, a development: agreement within the meaning of the Development Agreement Act. This Agreement will eliminate uncertainty in planning for and secure the orderly development of the Project, ensure a desirable and functional community environment, provide effective and efficient development of public facilities, infrastructure, and services appropriate for the development of the Project, and assure attainment of the maximum effective utilization of resources within the City, by achieving the goals and purposes of the Development Agreement Act. In exchange for these benefits to City, Developer desires to receive the assurance that it may proceed with development of the Project in accordance with the terms and conditions of this Agreement and the Development Plan, all as more particularly set forth herein. G. The City Council has determined that the Project and this Agreement are consistent with the City's General Plan, including the goals and objectives thereof. H. All actions taken by City and Agency have been duly taken in accordance with all applicable legal requirements, including the California Environmental Quality Act (Public ?156,015610-0088 669968.04 a02/09/06 Resources Code Section 21000, et seq.) ("CEQA"), and all other requirements for notice, public hearings, findings, votes and other procedural matters. I. On February 7, 2006, the City Council adopted its Ordinance No. 426 approving this Agreement. On the Agency adopted Resolution No. approving this Agreement for the sole and exclusive purpose of consenting to the crediting of 19 parking stalls located on the Agency Parking Lots towards fulfilling the Project's parking obligations. AGREEMENT NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and other good and valuable consideration, the receipt and legal sufficiency of which is hereby acknowledged, the parties do hereby agree as follows: 1.0 GENERAL. 1.1 Term. The term of this Agreement (the "Term") shall commence on the Effective Date hereof and shall continue for ten (10) years thereafter, unless said term is otherwise terminated, modified, or extended by circumstances set forth in this Agreement or by mutual consent of the parties hereto after the satisfaction of all applicable public hearing and related procedural requirements. 1.2 Effective Date. This Agreement shall be effective, and the obligations of the parties hereunder shall be effective, as of _ which is the date that Ordinance No. takes effect ("Effective Date"). 1.3 Amendment or Cancellation. Except as expressly stated to the contrary herein, this Agreement may be amended or canceled in whole or in part only by mutual consent of the parties and in the manner provided for in Government Code Section 65867-65868 and the City's Development Agreement Ordinance. 1.4 Termination. Unless terminated earlier, pursuant to the terms hereof, this Agreement shall automatically terminate and be of no further effect upon the expiration of the Term of this Agreement. Termination of this Agreement, for any reason, shall not, by itself, affect any right or duty arising from entitlements or approvals set forth under the Development Plan, as defined in Section 2.1, below. 1.5 Incorporation of Recitals. The recitals are hereby incorporated into this Agreement. f ?150,015610-0088 i 669968.04 a02;09100 2.0 DEVELOPER'S RIGHTS AND LIMITATIONS REGARDING CONSTRUCTION OF THE PROJECT. 2.1 Right to Develop. Subject to the terms, conditions, and covenants of this Agreement, Developer's right to develop the Project in accordance with the Development Plan (and subject to the conditions of approval thereof (the "Conditions of Approval") which, among other conditions of approval associated with future approvals and permits issued by the City, include but are not limited to the conditions of approval set forth in Exhibit "C" attached hereto) shall be deemed vested upon execution of this Agreement, which vesting shall expire upon the earlier of the following occurrences: (a) termination of this Agreement; or (b) an uncured material default by Developer of this Agreement. Except for the expiration set forth in clause (a) of the preceding sentence, the expiration of the vesting right set forth in the preceding sentence shall not terminate the obligations of Developer under this Agreement. Notwithstanding anything in this Agreement to the contrary, the Project shall remain subject to the following, to the same extent it would without this Agreement: (1) all ordinances, regulations, rules, laws, plans, policies, and guidelines of the City and its City Council, Planning Commission, and all other City boards, commissions, and committees existing on the Effective Date of this Agreement (collectively, the "Existing Development Regulations"); (ii) all amendments or modifications to Existing Development Regulations after the Effective Date of this Agreement and all ordinances, regulations, rules, laws, plans, policies, and guidelines of the City and its City Council, Planning Commission, and all other City boards, commissions, and committees enacted or adopted after the Effective Date of this Agreement (collectively, "New Laws"), except such New Laws which would prevent or materially impair Developer's ability to develop the Project in accordance with the Development Plan, unless such New Laws are (A) adopted by the City on a City wide -basis and applied to the Site in a non-discriminatory manner, (B) required by a non -City entity to be adopted by or applied by the City (or, if adoption is optional, the failure to adopt or apply such non -City law or regulation would cause the City to sustain a loss of funds or loss of access to funding or other resources), or (C) New Laws the City reserves the right to apply under this Agreement, including, but not limited to, Sections 2.2 and 3.3.4; (iii) all subsequent development approvals and the conditions of approval associated therewith, including but not limited to any further site development permits, tract or parcel maps, and building permits; (iv) the payment of all fees or exactions in the categories and in the amounts as required at the time such fees are due and payable, which may be at the time of issuance of building permits, or otherwise as specified by applicable law, as existing at the time such fees are due and payable; and (v) the reservation or dedication of land for public purposes or payment of fees in lieu thereof as required at the time such reservations or dedications or payments in lieu are required under applicable law to be made or paid. 1156i015610-0088 009968.04 a0'_,W06 4 2.2 Additional Applicable Codes and Regulations. Notwithstanding any other provision of this Agreement, the City also reserves the right to apply the following to the development of the Project: 2.2.1 Building, electrical, mechanical, fire and similar building codes based upon uniform codes adopted in, or incorporated by reference into, the La Quinta Municipal Code, as existing on the Effective Date of this Agreement or as may be enacted or amended thereafter, applied to the Project in a nondiscriminatory manner. 2.2.2 In the event of fire or other casualty requiring construction of more than fifty (50%) percent of any building previously constructed hereunder, nothing herein shall prevent the City from applying to such reconstruction, all requirements of the City's Building, Electrical, Mechanical, and similar building codes based upon uniform codes adopted in, or incorporated by reference into, the La Quinta Municipal Code, solely to the extent applicable to all development projects in the City. 2.2.3 This Agreement shall not prevent the City from establishing any new City fees on a City-wide basis and applied to Site in a non-discriminatory manner, including new development impact fees, or increasing any existing City fees, including existing development impact fees, and to apply such new or increased fees to the Project or applicable portion thereof where such new or increased fees may be charged. 2.3 Permitted Density, Height and Use Limitations. The permitted uses, density and intensity of use, location of uses, maximum height and size of proposed buildings, minimum setbacks, and other standards applicable to the Project shall be those set forth in the Development Plan and this Agreement, whichever is the strictest. 2.4 Credit of Parking Stalls in the Agency Parking Lots. In exchange for the full performance of the Developer's Obligations described in Section 3, the City shall credit the Developer with 19 parking stalls in the Agency Parking Lots, which stalls shall be counted towards fulfilling the Project's parking obligations, subject to the reduction described below in Section 2.4.2 for street parking spaces created pursuant to an approved street improvement plan. This Agreement does not operate to create a conveyance, hypothecation, lease, license, sale or any form of transfer of an interest in the parking spots on public streets or the Agency Parking Lots or any exclusive right to use parking stalls in the Agency Parking Lots. Developer shall have the same right to use parking spaces on the public street and in the Agency Parking Lots as members of the general public; provided, however, that Developer shall enforce a policy that encourages Project employees to park their automobiles at the Agency Parking Lots. 2.4.1 Agency Consent. Subject to the obligations of Developer as provided in this Agreement, Agency hereby consents to crediting 19 parking stalls in the Agency Parking Lots towards fulfilling the Project's parking obligations. 2.4.2 Reduction of Credited Parking Spaces. It is contemplated that the Developer's Site design may include the provision of street parking spaces on Main 2156/015010-0088 609908.04 a02J09/06 -5- 3.0 Street, pursuant to an approved street improvement plan. In the event that street parking spaces are designed pursuant to a street improvement plan approved by the City Public Works Department and Community Development Director then Developer shall receive a one -for -one credit for any street parking spaces created. The number of stalls credited from the Agency Parking Lots will be reduced on a one -for -one basis (i.e., the 19 stalls credited will be reduced on a one -for -one basis against street parking spaces created) and the fee will be reduced to account for the credited street parking spaces. In the event that on -street parking spaces are provided on Main Street, pursuant to this Section 2.4.2 then the parties shall execute and record the Memorandum of Development Agreement Off - Site Parking Space and Fee Reduction attached hereto as Exhibit H. Any parking spaces created on Main Street pursuant to the VUP and an approved street improvement plan shall be unrestricted and available for use by the general public. DEVELOPER'S OBLIGATIONS. 3.1 Conditions of Approval. The Developer shall comply with the Conditions of Approval attached hereto as Exhibit "B" as well as all other conditions of approval that have been or may be imposed. Developer acknowledges that additional conditions of approval beyond those set forth in Exhibit "C" may be applicable to the Project if and as associated with future Project approvals. 3.2 Acknowledgement of Satisfied Conditions. Prior to, and as a condition precedent of, the City's issuance of any building permit for the Project, and iimrnediately following payment of the fees detailed in Section 3.3.2, the Developer shall submit to the City, obtain approval thereof, and record a memorandum acknowledging the satisfaction of conditions (the "Memorandum") against the Site which, in addition to the obligations set forth in the Conditions of Approval, shall (1) acknowledge that such fees have been paid and that the parking obligation for the Project is fulfilled by the credit 19 parking stalls in the Agency Parking Lots or credit thereof with off -site parking; (ii) acknowledge that any parking spaces created on Main Street pursuant to an approved street improvement plan shall be unrestricted and available for use by the general public; and (iii) provide for the general public's use of Site parking stalls during times when the on -Site businesses are closed. The Memorandum shall be in a form and substance substantially similar to that of the Memorandum attached hereto as Exhibit "D". 3.3 No Parking on Public Library or Senior Center Areas. Developer agrees that it will not permit any of its employees, agents, representatives, invitees, licensees, lessees, or employees or patrons of its lessees to park in the parking areas of the La Quinta Public Library or the La Quinta Senior Center as depicted on Exhibit "G" attached hereto. Developer shall take all necessary actions to ensure compliance with this condition. Developer's breach of this Section 3.3 shall be a default under this Agreement. 21S6/015610-0088 " 069968.04 a03i09!06 —�— 3.4 Pay�jents to City by Developer. 3.4.1 General. During the Term of this Agreement, Developer shall make the payments to City described in this Section 3.4. The payments under this Section 3.4 are not the exclusive development impact fees for the Project, and nothing in this Section 3.4 shall be construed as a limitation on the right of the City to impose, levy, or assess the Site other development fees as permitted by applicable law and this Agreement. 3.4.2 Developer's Payments of Up -Front Parking Fees. Prior to, and as a condition precedent of, the issuance of any building permit for the Site, Developer shall pay or cause to be paid to the City the sum of $12,000.00 per parking space for each of the 19 parking stalls in the Agency Parking Lots being credited towards fulfilling the Project's parking obligations. The total amount of fees due under this provision prior to the issuance of any building permit for the Site shall be $228,000. This fee shall be paid in one lump sum without deduction or offset. However, if on -street parking spaces are provided in accordance with Section 2.4.2 above, then the fee paid pursuant to this section shall be reduced for each street parking space provided on Main Street. 3.4.3 City Parking Fee Study; Effect on Payment of Up -Front Parking Fees. Independent of Developer's obligations under this Section 3.3.2, the City may choose to prepare a parking study to determine the per -parking stall parking fee to be applied to development in the La Quinta Village area. If the City approves a parking fee within one year of the Reference Date and the fee calculated pursuant to this parking study and approved by the City Council is less than $12,000 per parking stall, then the City shall, within a reasonable time after the adoption of the fee by the City Council, reimburse to Developer that portion of the per space fee that exceeds $12,000. If the fee calculated pursuant to the parking study and approved by the City Council is greater than $12,000 per parking stall, the Developer shall have no obligation under this Development Agreement to pay the increased amount. If the City chooses not to adopt a per -parking stall parking fee for the La Quinta Village area, the Developer shall have no right to seek a refund of the payment described in this Section 3.3.2. The City's obligation under this section to reimburse the Developer shall terminate within one year of the Reference Date. 3.4.4 Other Fees and Charges. Nothing set forth in this Agreement is intended or shall be construed to limit or restrict the City's authority to impose its existing, or any new or increased, fees, charges, levies, or assessments for the development of the Site, or to impose or increase, subject to the required procedure, any taxes applicable to the Site; provided nothing set forth herein is intended or shall be construed to limit or restrict whatever right Developer might otherwise have to challenge any fee, charge, levy, assessment, or tax imposed. Developer shall timely pay all applicable fees, charges, levies, assessments, and special and general taxes validly imposed in accordance with the Constitution and laws of the State of California, including without limitation school impact fees in accordance with Government Code §§ 65995, et seq. 21501/015010-0088 009908.04 a02/09, 00 3.5 Dedications and Improvements. Developer shall offer such dedications to the City or other applicable public agency, or complete those public improvements in connection with the Project, as specified in the Development Plan and Conditions of Approval. 3.6 Public Use of Site's Parking Stalls. Once constructed, the parking stalls located on the Site shall be available to the general public for use at all times that on -Site businesses are closed. Developer shall not erect or maintain entry gates, regulated access barriers or any other driveway barrier. Developer shall not erect or place any signage on the Site prohibiting public parking during times that on -Site businesses are closed. The parking lot on the Site shall be lighted in conformity with the La Quinta Municipal Code between dusk and 1 1:00 p.m. every day of the week. Additionally, if Developer creates any parking spaces on Main Street pursuant to the VUP and an approved street improvement plan then such spaces shall not be restricted by Developer in any way and shall be available for use b:y the general public. 3.7 Indemnification. (a) Developer agrees to and shall indemnify, hold harmless, and defend, the City and Agency and their respective officers, officials, members, agents, employees, and representatives (collectively, "the Indemnified Parties"), from liability or claims for death or personal injury and claims for property damage which may arise from the acts, errors, and/or omissions of the Developer or its contractors, subcontractors, agents, employees or other persons acting on its behalf in relation to the Project and/or this Agreement, except to the extent that the liability or claims arise from the City's or the Agency's gross negligence or willful misconduct. The foregoing indemnity applies to all deaths, injuries, and damages, and claims therefor, suffered or alleged to have been suffered by reason of the acts, errors, and/or omissions referred to in this paragraph, regardless of whether or not the City prepared, supplied, or approved plans or specifications, or both, and regardless of whether or not any insurance policies are applicable. (b) Developer agrees to and shall indemnify, hold harmless, and defend, the Indemnified Parties from any challenge to the validity of this Agreement, the Memorandum , or to the City Entities' implementation of their rights under this Agreement; the Developer shall indemnify, hold harmless, pay all costs and provide defense for the Indemnified Parities in said action or proceeding with counsel chosen by the City. (c) In the event the Indemnified Parties are made a party to any action, lawsuit, or other adversarial proceeding in any way involving claims specified in paragraphs (a) or (b) above, Developer shall provide a defense to the Indemnified Parties, or at the Indemnified Parties' option, reimburse the Indemnified Parties their costs of defense, including attorneys fees, incurred in defense of such claim. The Indemnified Parties shall have the right to select legal counsel of their choice. In addition, Developer shall be obligated to promptly pay any final judgment or portion thereof rendered against the Indemnified Parties. The City Entities shall, at no cost to the City Entities, cooperate with the Developer in any such defense as Developer may reasonably request. 2156,015610-0088 009968.04 a02%09/06 4.0 CITY'S OBLIGATIONS & ACKNOWLEDGEMENTS. 4.1 Scope of Subsequent Review/Confirmation of Compliance Process. Nothing set. forth herein shall impair or interfere with the right of the City to require the processing of building permits as required by law, pursuant to the applicable provisions of the La Quinta Municipal Code and the provisions of City's Fire Codes and ordinances, Health and Safety Codes and ordinances, and Building, Electrical, Mechanical, and similar building codes. Prior to each request for a building permit, Developer shall provide City with a Compliance Certificate ("Certificate"), in substantially the same form as that attached hereto as Exhibit "E", which shall describe how all applicable Conditions of Approval have been fully complied with. The Certificate shall be distributed to the relevant City departments in order to check the representations made by Developer on the Certificate. 4.2 Project Approvals Independent. All approvals required for the Project which may be or have been granted, and all land use entitlements or approvals generally which have been issued or will be issued, by the City with respect to the Project, constitute independent actions and approvals by the City. If any provision of this Agreement or the application of any provision of this Agreement to a particular situation is held by a court of competent jurisdiction to be invalid or unenforceable, or if this Agreement terminates for any reason, then such invalidity, unenforceability or termination of this Agreement or any part hereof shall not affect the validity or effectiveness of any such Project approvals or other land use approvals and entitlements. In such cases, such approvals and entitlements will remain in effect pursuant to their own terms, provisions, and the Conditions of Approval. It is understood by the parties to this Agreement that, pursuant to existing law, if this Agreement terminates or is held invalid or unenforceable as described above, such approvals and entitlements shall not remain valid for the term of this Agreement, but shall remain valid for the term of such approvals and entitlements. 4.3 Review for Compliance. The City shall review Developer's compliance with the terms of this Agreement at least once during every twelve (12) month period following the Effective Date of this Agreement, in accordance with the City's procedures and standards for such review set forth in the City's Development Agreement Ordinance. During such periodic review by the City, the Developer, upon written request from City, shall be required to demonstrate, and hereby agrees to furnish, evidence of good faith compliance with the terms hereof. The failure of the City to conduct or complete the annual review as provided herein or in accordance with the Development Agreement Act shall not impact the validity of this Agreement. If, at the conclusion of the annual review provided for herein, Developer has been found in compliance with this Agreement, the City, through the City's Community Development Director, shall, at Developer's written request, issue a Certificate of Compliance to Developer stating that (1) this Agreement remains in full force and effect and (2) Developer is in compliance with this Agreement. The Certificate of Compliance shall be in recordable form, and shall contain information necessary to communicate constructive record notice of the finding of compliance. Developer, at its option and sole cost, may record the Certificate of Compliance. 2156/015610-0088 4.4 Satisfaction of VUP Condition. The City hereby acknowledges and agrees that full compliance with this Agreement, among other things, will constitute Developer's satisfaction and compliance with those portions of Condition 55 of the Conditions of Approval for the VUP approved by the City which relate to Developer's obligation to enter into a development agreement for the payment of parking fees and fulfillment of parking obligations. 5.0 DEFAULT; REMEDIES; DISPUTE RESOLUTION. 5.1 Notice of Default. In the event of failure by either party hereto substantially to perform any material term or provision of this Agreement, the non -defaulting party shall have those rights and remedies provided herein, provided that such non -defaulting party has first provided to the defaulting party a written notice of default in the manner required by Section S.1 hereof identifying with specificity the nature of the alleged default and the manner in which said default may satisfactorily be cured. Without limiting the scope of what is considered "material," the parties agree that Developer's failure to perform any of the obligations contained in Section 3.0 shall be a material default. 5.2 Cure of Default. Upon the receipt of the notice of default, the alleged defaulting party shall promptly commence to cure., correct, or remedy the identified default at the earliest reasonable time after receipt of the notice of default and shall complete the cure, correction or remedy of such default not later than five (5) days [or thirty (30) days for non -monetary defaults] after receipt of the notice of default, or, for such defaults that cannot reasonably be cured, corrected or remedied within five (5) days [or thirty (30) days for non -monetary defaults], such party shall commence to cure, correct, or remedy such default within such five (5) day period [or thirty (30) day period for non -monetary defaults], and shall continuously and diligently prosecute such cure, correction or remedy to completion. 5.3 City Remedies. In the event of an uncured default by Developer of the terms of this Agreement, the City, at its option, may institute legal action in law or in equity to cure, correct, or remedy such default, enjoin any threatened or attempted violation, or enforce the terms of this Agreement. In no event shall the City be entitled to consequential, exemplary or punitive damages for any Developer default. For purposes of this Agreement the term "consequential damages" shall include, but not be limited to, potential loss of anticipated tax revenues from the Project or any portion thereof. Furthermore, the City, in addition to, or as an alternative to, exercising the remedies set forth in this Section 5.3, in the event of a material default by Developer, may give notice of its intent to terminate or modify this Agreement pursuant to the City's Development Agreement Ordinance and/or the Development Agreement Act, in which event the matter shall be scheduled for consideration and review by the City Council in the manner set forth in the City's Development Agreement Ordinance or the Development Agreement Act. 2156/015610-0088 669968.04 a02/09/06 —1 0— 5.4 Developer's Exclusive Remedies. The parties acknowledge that the City Entities would not have entered into this Agreement if they were to be liable in damages under, or with respect to, this Agreement or any of the matters referred to herein including, but not limited to, the Development Plan, Conditions of Approvals, the Existing Development Regulations or any future amendments or enactments thereto, or the Project, except as provided in this Section. Accordingly, Developer covenants on behalf of itself and its successors and assigns, not to sue the City Entities for damages or monetary relief (except for attorneys' fees as provided for by Section 8.22) for any breach of this Agreement by the City Entities or arising out of or connected with any dispute, controversy, or issue between Developer and the City Entities regarding this Agreement or any of the matters referred to herein including but not limited to the application, interpretation, or effect of this Agreement, the Development Plan, the Conditions of Approval, the Existing Development Regulations or any future amendments or enactments thereto, or any land use permits or approvals sought in connection with the development of the Project or any component thereof, or use of a parcel or any portion thereof, the parties agreeing that declaratory and injunctive relief, mandate, and specific performance shall be Developer's sole and exclusive judicial remedies. 6.0 MORTGAGEE PROTECTION; CERTAIN RIGHTS OF CURE. 6.1 Encumbrances on the Project Site. This Agreement shall not prevent or limit the Developer from encumbering the Site or any portion thereof or any improvements thereon with any mortgage, deed of trust, sale and leaseback arrangement, or any other form of conveyance in which the Site, or a portion thereof or interest therein, is pledged as security, and contracted for in good faith and fair value (a "Mortgage") securing financing with respect to the construction, development, use or operation of the Project. 6.2 Mortgage Protection. This Agreement shall be superior and senior to the lien of any Mortgage. Notwithstanding the foregoing, no breach of this Agreement shall defeat, render invalid, diminish, or impair the lien of any Mortgage made in good faith and for value, and any acquisition or acceptance of title or any right or interest in or with respect to the Site or any portion thereof by a holder of a beneficial interest under a Mortgage, or any successor or assignee to said holder (a "Mortgagee") [whether pursuant to foreclosure, trustee's sale, deed in lieu of foreclosure, lease termination or otherwise] shall be subject to all of the terms and conditions of this Agreement. 6.3 Mortgagee Not Obligated. No Mortgagee will have any obligation or duty under this Agreement to perform the obligations of the Developer or other affirmative covenants of Developer hereunder, or to guarantee such performance, except that to the extent that any covenant to be performed by the Developer is a condition to the performance of a covenant by the City, the performance thereof shall continue to be a condition precedent to the City's performance hereunder. 2 156/015 610-0088 009968.04 a02!09/06 6.4 Notice of Default to Mortgagee; Right of Mortgagee to Cure. City shall, upon written request to the City, deliver to each Mortgagee a copy of any notice of default given to Developer under the terms of this Agreement, at the same time of sending such notice of default to Developer. The Mortgagee shall have the right, but not the obligation, within live (5) days [or thirty (30) days for non -monetary defaults] after the receipt of such notice from the City, to cure, correct, or remedy the default, or, for such defaults that cannot reasonably be cured, corrected, or remedied within five (5) days [thirty (30) days for non - monetary defaults], the Mortgagee shall commence to cure, correct, or remedy the default within such five (5) day, period [or thirty (30) day period for non -monetary defaults], and shall continuously and diligently prosecute such cure to completion. If the default is of a nature which can only be remedied or cured by such Mortgagee upon obtaining possession of the Site, such Mortgagee shall have the right to seek to obtain possession with diligence and continuity through foreclosure, a receiver or otherwise, and shall be permitted thereafter to remedy or cure the default within such time as is reasonably necessary to cure or remedy said default but in no event more than thirty (30) days after obtaining possession. If any such default cannot, with diligence, be remedied or cured within such thirty (30) day period, then such period shall be extended to permit the Mortgagee to effect a cure or remedy so long as Mortgagee commences said cure or remedy during such thirty (30) day period, and thereafter diligently pursues and completes such cure. 7.0 TRANSFERS OF INTEREST IN SITE OR AGREEMENT. 7.1 Successors and Assigns. Developer shall have the right to sell, transfer or assign the Site, or any portion thereof (provided that no such transfer shall violate the Subdivision Map Act, Government Code §66410, et seq.) to any person, partnership, joint venture, firm or corporation at any time during the term of this Agreement; provided, however, that any such sale or transfer shall include, with respect to the Site or the portion thereof sold or transferred, the assignment and assumption, in a fully executed written agreement, in whole or in part, of the rights, duties and obligations of the Developer under the terms of this Agreement. Upon such sale, transfer or assignment, Developer shall, with respect to the Site or the portion thereof sold or transferred, be released from any further obligations under the terms of this Agreement, provided: (a) Developer no longer has any legal or equitable interest in the Site or the portion thereof sold or transferred, as applicable; (b) Developer is not, at the time of the transfer, in default under the terms of this Agreement; and (c) Developer has submitted an executed assignment and assumption agreement in a form set forth in Exhibit F. 2 156015610-0088 609968.04 a02/09/06 -1 2 8.0 MISCELLANEOUS. 8.1 Novices. All notices permitted or required hereunder must be in writing and shall be effected by (1) personal delivery, (ii) first class mail, registered or certified, postage fully prepaid, or (iii) reputable same -day or overnight delivery service that provides a receipt showing date and time of delivery, addressed to the following parties, or to such other address as any party may from time to time, designate in writing in the manner as provided herein: To City: City of La Quinta 78-495 Calle Tampico La Quinta, California 92253 Attn: Community Development Director To Agency: La Quinta Redevelopment Agency 78-495 Calle Tampico La Quinta, California 92253 Attn: Executive Director With a copy to: Rutan & Tucker, LLP 611 Anton Boulevard, Suite 1400 Costa Mesa, California 92626 Attn: M. Katherine Jenson To Developer: Mr. Stephen Nieto Nispero Properties, Inc. P.O. Box 1144 La Quinta, CA 92253 Telephone: 760.564.4707 Facsimile: 760.564.4955 Any written notice, demand or communication shall be deemed received immediately if personally delivered or delivered by delivery service, and shall be deemed received on the third day from the date it is postmarked if delivered by registered or certified mail. 8.2 Force Maieure. In addition to specific provisions of this Agreement, performance by either party hereunder shall not be deemed to be in default where delays or failures to perform are due to war, insurrection, strikes, walk -outs, riots, floods, earthquakes, fires, casualties, acts of God, acts public enemy, terrorism, epidemics, quarantine restrictions, freight embargoes, of the governmental restrictions imposed or mandated by other governmental entities, governmental restrictions or priority, unusually severe weather, inability to secure labor, materials, or tools necessary for the Project, delays of any contractor, subcontractor or supplier; acts of another party, acts or the failure to act of any public or governmental agency or entity (except that acts or the failure to act of the City shall not excuse performance by the City) or any other causes beyond the control or without the fault of the party claiming an extension of time to perform. An extension of time for any such cause shall only be for the period of the enforced delay, which 2 156/015 610-0088 069968.04 a02/09,,06 -1 3- period shall commence to run from the time of the commencement of the cause. The City and the Developer may also extend times of performance under this Agreement in writing. Notwithstanding the paragraph above, Developer is not entitled pursuant to this Section 8.2 to an extension of time to perform because of past, present, or future difficulty in obtaining suitable construction or permanent financing for the development of the Site, or because of economic or market conditions. 8.3 Binding Effect. This Agreement, and all of the terms and conditions hereof, shall be binding upon and inure to the benefit of the parties, any subsequent owner of all or any portion of the Project or the Site, and their respective assigns, heirs or successors in interest, whether or not any reference to this Agreement is contained in the instrument by which such person acquired an interest in the Project or the Site. 8.4 Independent Entity. The parties acknowledge that, in entering into and performing this Agreement, each of the Developer, the City is acting as an independent entity and not as an agent of the other in any respect. 8.5 Agreement Not to Benefit Third Parties This Agreement is made for the sole benefit of the parties, and no other person shall be deemed to have any privity of contract under this Agreement nor any right to rely on this Agreement to any extent for any purpose whatsoever, nor have any right of action of any kind on this Agreement, nor be deemed to be a third party beneficiary under this Agreement. Notwithstanding the immediately preceding sentence, the Agency shall be an intended third party beneficiary to this Agreement. 8.6 Covenants. The provisions of this Agreement shall constitute mutual covenants which shall run with the land comprising the Site for the benefit thereof, and the burdens and benefits hereof shall bind and inure to the benefit of each of the parties hereto and all successors in interest to the parties hereto for the term of this Agreement. 8.7 Nonliability of City/Agency Officers and Employees. No official, officer, employee, agent or representative of the City or Agency, acting in his/her official capacity, shall be personally liable to Developer, or any successor or assign, for any loss, costs, damage, claim, liability, or judgment, arising out of or connection to this Agreement, or for any act or omission on the part of the City or Agency. 8.8 Covenant Against Discrimination. Developer and City covenant and agree, for themselves and their respective successors and assigns, that there shall be no discrimination against, or segregation of, any person or group - 14- 609968.04 a0'_/09i06 or persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry, or any other impermissible classification, in the performance of this Agreement. Developer shall comply with the Americans with Disabilities Act of 1990, as amended (42 U.S.C. §§ 12101, et seq.). 8.9 Amendment of Agreement. This Agreement may be amended from time to time by mutual consent of the original parties or such party to which the Developer assigns all or any portion of its interest in this Agreement, in accordance with the provisions of the City's Development Agreement Ordinance and Government Code Sections 65867 and 65868. 8.10 No Waiver. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the party against whom enforcement of a waiver is sought and referring expressly to this Section. No delay or omission by either party in exercising any right or power accruing upon non-compliance or failure to perform by the other party under any of the provisions of this Agreement shall impair any such right or power or be construed to be a waiver thereof, except as expressly provided herein. No waiver by either party of any of the covenants or conditions to be performed by the other party shall be construed or deemed a waiver of any succeeding breach or nonperformance of the same or other covenants and conditions hereof. 8.11 Severability. If any term, provision, covenant or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions of this Agreement shall continue in full force and effect, to the extent that the invalidity or unenforceability does not impair the application of this Agreement as intended by the parties. 8.12 Cooperation in Carrying Out Agreement. Each party shall take such actions and execute and deliver to the other all such further instruments and documents as may be reasonably necessary to carry out this Agreement in order to provide and secure to the other party the full and complete enjoyment of its rights and privileges hereunder. 8.13 Estoppel Certificate. Any party hereunder may, at any time, deliver written notice to any other party requesting such party to certify in writing that, to the best knowledge of the certifying party, ( i ) this Agreement is in full force and effect and a binding obligation of the parties, (ii) this Agreement has not been amended or modified either orally or in writing, or if so amended, identifying the amendments, (iii) the requesting party is not in default in the performance of its obligations under this Agreement, or if in default, describing the nature and amount of any such defaults, and (iv) any other reasonable information requested. A party receiving a request hereunder shall execute and return such certificate within thirty (30) days following receipt of such written request. The City Manager, Assistant City Manager, and Community Development Director are 21�6 015010-0088 069968.04 a0J09/06 -15- each authorized to sign and deliver an estoppel certificate on behalf of the City. The City acknowledges that a certificate hereunder may be relied upon by transferees and Mortgagees. 8.14 Construction. 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 that might otherwise apply. As used in this Agreement, and as the context may require, the singular includes the plural and vice versa, and the masculine gender includes the feminine and vice versa. 8.15 Recordation. This Agreement shall be recorded with the County Recorder of Riverside County at Developer's cost, if any, within the period required by Government Code Section 65868.5. Amendments approved by the parties, and any cancellation or termination of this Agreement, shall be similarly recorded. 8.16 Can�tions and References. The captions of the paragraphs and subparagraphs of this Agreement are solely for convenience of reference, and shall be disregarded in the construction and interpretation of this Agreement. Reference herein to a paragraph or exhibit are the paragraphs, subparagraphs and exhibits of this Agreement. 8.17 Time. Time is of the essence in the perfon-nance of this Agreement and of each and every term and condition hereof as to which time is an element. 8.18 Recitals & Exhibits Incorporated; Entire Agreement. The Recitals to this Agreement and all of the exhibits and attachments to this Agreement are, by this reference, incorporated into this Agreement and made a part hereof. This Agreement, including all Exhibits attached hereto, constitutes the entire agreement between the parties with respect to the subject matter of this Agreement, and this Agreement supersedes all previous negotiations, discussions and agreements between the parties, and no parole evidence of any prior or other agreement shall be permitted to contradict or vary the terms hereof. 8.19 Exhibits. Exhibits "A" — "H" to which reference is made in this Agreement are deemed appropriated herein in their entirety. Said exhibits are identified as follows: A Legal Description of Site B Legal Description of Agency Parking Lots C Conditions of Approval D Memorandum E Compliance Certificate 156,015610-0088 609968.04 a02i09/06 —1 6— F General Assignment and Assumption Agreement G Depiction of Library and Senior Center Parking Lots H Memorandum of Development Agreement Off -Site Parking Space and Fee Reduction 8.20 Counterpart Signature Pages. For convenience the parties may execute and acknowledge this agreement in counterparts and when the separate signature pages are attached hereto, shall constitute one and the same complete Agreement. 8.21 Authority to Execute. Developer warrants and represents that (1) it is duly organized and existing, (ii) it is duly authorized to execute and deliver this Agreement, (iii) by so executing this Agreement, Developer is formally bound to the provisions of this Agreement, (iv) Developer's entering into and performance of its obligations set forth in this Agreement do not violate any provision of any other agreement to which Developer is bound, and (v) there is no existing or threatened litigation or legal proceeding of which Developer is aware which could prevent Developer from entering into or performing its obligations set forth in this Agreement. 8.22 Governing Law; Litigation Matters. The internal laws of the State of California shall govern the interpretation and enforcement of this Agreement without regard to conflicts of law principles. Any action at law or in equity brought by any party hereto for the purpose of enforcing, construing, or interpreting the validity of this Agreement or any provision hereof shall be brought in the Superior Court of the State of California in and for the County of Riverside, or such other appropriate court in said county, and the parties hereto waive all provisions of law providing for the filing, removal, or change of venue to any other court. Service of process on City Entities 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 of California. In the event of any action between the parties hereto seeking enforcement of any of the terms of this Agreement or otherwise arising out of this Agreement, the prevailing party in such litigation shall be awarded, in addition to such relief to which such party is entitled, its reasonable attorney's fees, expert witness fees, and litigation costs and expenses. 8.23 No Brokers. Each of the City and the Developer represents to the other party that it has not engaged the services of any finder or broker and that it is not liable for any real estate commissions, broker's fees, or finder's fees which may accrue by means of this Agreement, and agrees to hold harmless the other party from such commissions or fees as are alleged to be due from the party making such representations. '150,015010-0088 609908.04 a02,09, 00 -1 7 04e IN WITNESS WHEREOF, the Developer and the City have executed this Agreement as of the Reference Date. ATTEST: June Greek City Clerk APPROVED AS TO FORM RUTAN & TUCKER, LLP M. Katherine Jenson City Attorney "DEVELOPER" NISPERO PROPERTIES, INC., a California corporation By: Its: By: Its: "CITY" CITY OF LA QUINTA, a California municipal corporation and charter city ME Thomas P. Genovese City Manager [Signatures continue on next page.] "AGENCY" LA QUINTA REDEVELOPMENT AGENCY, 2156/015610-0088 669968.04 a02/09/06 a public body, corporate and politic M Thomas P. Genovese Executive Director ATTEST: June Greek Agency Clerk APPROVED AS TO FORM RUTAN & TUCKER, LLP M. Katherine Jenson Agency Counsel 2 150015610-0088 609968.04 a02i09106 -1 9- STATE OF CALIFORNIA ss COUNTY OF On , before me, personally appeared 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 persons) acted, executed the instrument. Witness my hand and official seal. Notary Public [SEAL] STATE OF CALIFORNIA ) ss COUNTY OF ) On , before me, personally appeared 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] 2156/015610-0088 669968.04 a02/09/06 20 EXHIBIT "A" LEGAL DESCRIPTION OF SITE LOT 68 AND 77 OF DESERT CLUB TRACT UNIT #4, IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED NOVEMBER 6, 1946 IN BOOK 21, PAGE(S) 60 OF MISCELLANEOUS MAPS IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. r� 21156'015610-0088 s 669968.04 a02/02%06 EXHIBIT "B" LEGAL DESCRIPTION OF AGENCY PARKING LOTS That certain real property located in the City of La Quinta, County of Riverside, State of California, more particularly described as follows: LOTS 7, 8, 91 101 11, 12, 13, 14 AND 15 IN BLOCK 122 OF SANTA CARMELITA AT VALE LA QUINTA UNIT NUMBER 14, AS SHOWN BY MAP ON FILE IN BOOK 18 PAGES 82 AND 83 OF MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. '156,015610-0088 009968.04 a02 01)'06 EXHIBIT "C" CONDITIONS OF APPROVAL FOR VILLAGE USE PERMIT 2005-032 ADOPTED FEBRUARY 7, 2006 BY CITY COUNCIL RESOLUTION 2006-013 GENERAL CONDITIONS OF APPROVAL Village Use Permit 2005-032 (VUP 2005-032) shall be developed in compliance with these conditions and all approved site plan, elevation, color, materials and other approved exhibits submitted for this application, and any subsequent amendment(s). In the event of any conflicts, these conditions shall take precedence. In the event the Development Agreement referenced in Condition #55 is not entered into, this Village Use Permit approval is null and void. 2. This approval shall expire two years after its effective date, as determined pursuant to Section 9.200.060.0 of the Zoning Code, unless extended pursuant to the provisions of Section 9.200.080. 3. The applicant agrees to defend, indemnify, and hold harmless the City of La Quinta (the "City"), its agents, officers and employees from any claim, action or proceeding to attack, set aside, void, or annul the approval of this development application or any application thereunder. The City shall have sole discretion in selecting its defense counsel. The City shall promptly notify the developer of any claim, action or proceeding and shall cooperate fully in the defense. 4. Prior to the issuance of any permit by the City, the applicant shall obtain the necessary permits and/or clearances from the following agencies: • Riverside County Fire Marshal • La Quinta Building and Safety Department • La Quinta Public Works Department (Grading/ Improvement/Encroachment Permits) • La Quinta Community Development Department • Riverside County Environmental Health Department • Desert Sands Unified School District • Coachella Valley Water District (CVWD) • Southern California Gas Company • Imperial Irrigation District (IID) • California Water Quality Control Board (CWQCB) 2156 015 610-0088 669968.04 a02,0 06 Waste Management of the Desert The applicant is responsible for any requirements of the permits or clearances from those jurisdictions. If the requirements include approval of improvement plans, applicant shall furnish proof of said approvals prior to obtaining City approval of the plans. 5. The applicant shall comply with applicable provisions of the City's NPDES stormwater discharge permit, Sections 8.70.010 et seq. (Stormwater Management and Discharge Controls) and 13.24.170 (Clean Air/Clean Water), LQMC; Riverside County Ordinance No. 457; and the State Water Resources Control Board's Order No. 99-08-DWQ. 6. Handicap access and facilities shall be provided in accordance with Federal (ADA), State and local requirements. Handicap accessible parking shall generally conform to the approved exhibits for VUP 2005-032. 7. All parking area civil plans and improvements shall be developed in accordance with the standards set forth in applicable portions of Section 9.150.080 of the Zoning Code, and these conditions, which shall take precedence in the event of any conflicts with said Section. Any on -street parking/street improvement plans for Main Street, if submitted, shall be reviewed and approved by the Public Works Department, as to acceptable design standards. Any deviation from standards as applicable under Section 9.150.080 of the Zoning Code, may be approved by the Community Development and Public Works Departments, as part of the improvement plan review process. PROPERTY RIGHTS 8. Prior to issuance of any permit(s), the applicant shall acquire or confer easements and other property rights necessary for the construction or proper functioning of the proposed development. Conferred rights shall include irrevocable offers to dedicate or grant access easements to the City for emergency services and for maintenance, construction and reconstruction of essential improvements. 9. The applicant shall offer for dedication all public street right-of-ways in conformance with the City's General Plan, Municipal Code, applicable specific plans, and/or as required by the City Engineer. 10. The public street right-of-way offers for dedication required for this development include: 2156,015610-0088 —2— 669968.04 a02 09,06 �' A. PUBLIC STREETS 1) Avenida La Fonda (Local Street, 60' ROW) — The standard 35 feet from the centerline of Avenida La Fonda for a total 60-foot ultimate developed right of way. 11. The applicant shall offer for dedication those easements necessary for the placement of, and access to, utility lines and structures, drainage basins, mailbox clusters, and common areas shown on the Village Use Permit. 12. Direct vehicular access from any portion of the site with frontage along Avenida La Fonda and Main Street is restricted, except for those access points identified on the approved site plan, or as otherwise conditioned in these conditions of approval. 13. The applicant shall furnish proof of easements or written permission, as appropriate, from owners of any abutting properties on which grading, retaining wall construction, permanent slopes, or other encroachments are to occur. 14. The applicant shall cause no easements to be granted, or recorded, over any portion of the subject property, between the date of approval of this Village Use Permit and the date of final acceptance of the on -site and off -site improvements for this Village Use Permit, unless such easements are approved by the City Engineer. 15. Upon approval of this Village Use Permit, the applicant shall begin right-of- way vacation of the existing remnant public right-of-way at the corner of Avenida La Fonda and Main Street (Avenida Buena Ventura). 16. Applicant shall process a parcel merger, in order to incorporate Lots 68 and 77 into one parcel. The merger shall have been recorded prior to issuance of a permit for the main building. IMPROVEMENT PLANS As used throughout these conditions of approval, professional titles such as "engineer", "surveyor", and "architect" refer to persons currently certified or licensed to practice their respective professions in the State of California. 2156,015610-0088 009968.O4 a02/09/06 ;� 17. Improvement plans shall be prepared by or under the direct supervision of qualified engineers and/or architects, as appropriate, and shall comply with the provisions of Section 13.24.040 (Improvement Plans), LQMC. 18. The following improvement plans shall be prepared and submitted for review and approval by the City. A separate set of plans for each line item specified below shall be prepared. The plans shall utilize the minimum scale specified, unless otherwise authorized by the City Engineer in writing. Plans may be prepared at a larger scale if additional detail or plan clarity is desired. Note: the applicant may be required to prepare other improvement plans not listed here pursuant to improvements required by other agencies and utility purveyors. A. On -Site Rough Grading Plans 1 " = 30' Horizontal B. PM 10 Plan 1 " = 40' Horizontal C. SWPPP 1 " = 40' Horizontal NOTE: A through C to be submitted concurrently. D.On-Site Precise Grading Plans (Commercial Development) I" = 30' Horizontal Other engineered improvement plans prepared for City approval that are not listed above shall be prepared in formats approved by the City Engineer prior to commencing plan preparation. On -Site Precise Grading Plans shall normally include all on -site surface improvements including but not necessarily limited to finish grades for curbs & gutters, sidewalks, building floor elevations, parking lot improvements and ADA requirements for the parking lot and access to the building; and showing the existing street improvements out to at least the center lines of adjacent existing streets, including ADA accessibility route to surrounding buildings, parking facilities and public streets. 19. The City maintains standard plans, details and/or construction notes for elements of construction on the Public Works Online Engineering Library at the City website (www.la-quinta.org). Navigate to the Public Works Department home page and look for the Online Engineering Library hyperlink. 20. The applicant shall furnish a complete set of the AutoCAD files of all approved improvement plans on a storage media acceptable to the City Engineer. The files shall be saved in a standard AutoCAD format so they may be fully retrievable through a basic AutoCAD program. 069968.04 a02,09,06 At the completion of construction, and prior to the final acceptance of the improvements by the City, the applicant shall update the AutoCAD files in order to reflect the as -built conditions. Where the improvement plans were not produced in a standard AutoCAD format, or a file format that can be converted to an AutoCAD format, the City Engineer will accept raster -image files of the plans rrPAniNir 21. Prior to occupancy of the project site for any construction, or other purposes, the applicant shall obtain a grading permit approved by the City Engineer. 22. To obtain an approved grading permit, the applicant shall submit and obtain approval of all of the following: A. A precise grading plan prepared by a qualified engineer or architect, B. A preliminary geotechnical ("soils") report prepared by a qualified engineer, C. A Fugitive Dust Control Plan prepared in accordance with Chapter 6.16 (Fugitive Dust Control), LQMC. All grading shall conform to the recommendations contained in the Preliminary Soils Report, and shall be certified as being adequate by a soils engineer, or by an engineering geologist. The applicant shall furnish security, in a form acceptable to the City, and in an amount sufficient to guarantee compliance with the approved Fugitive Dust Control Plan provisions as submitted with its application for a grading permit. 23. The applicant shall maintain all open graded, undeveloped land to prevent wind and water erosion of soils. All such land shall be planted with interim landscaping or provided with other erosion control measures as approved by the Public Works Departments under the Fugitive Dust Control Plan. 24. Prior to issuance of the main building permit, the applicant shall provide a lot pad certification, stamped and signed by qualified engineers or surveyor. nPAINior,F 25. Nuisance water shall be retained onsite and disposed of in a manner acceptable to the City Engineer. ?150;015610-0088 669968.04 a02,'09,'06 —� , IITll ITIFS 26. The applicant shall obtain the approval of the City Engineer for the location of all utility lines within the right of way and all above -ground utility structures including, but not limited to, traffic signal cabinets, electrical vaults, water valves, and telephone stands, to ensure optimum placement for practical and aesthetic purposes. 27. Underground utilities shall be installed prior to overlying hardscape. For installation of utilities in existing, improved streets, the applicant shall comply with trench restoration requirements maintained or required by the City Engineer. The applicant shall provide certified reports of all utility trench compaction for approval of the City Engineer. 28. Prior to issuance of any building permit, the applicant shall provide evidence to the Public Works Department, of vacation of the existing 10-foot PUE along the common lot line of lots 68 and 77, along with any relocated easement(s) as may be required. Any in -ground utilities shall be relocated to the satisfaction of the purveyor of record, and the City Engineer STREET AND TRAFFIC IMPROVEMENTS 29. The applicant shall comply with the provisions of Sections 1 3.24.060 (Street Improvements), 13.24.070 (Street Design - Generally) & 13.24.100 (Access For Individual Properties And Development), LQMC for public streets. 30. No additional street improvements are required, except for: A. Avenida La Fonda 1) A five-foot wide sidewalk next to the curb along the property boundary with corner improvements and curb ramp per Standard 250 — Case A. B. Main Street 1) A minimum five-foot wide sidewalk next to the curb along the property boundary, to consist of enhanced design materials (e.g. colored/stamped concrete, pavers, etc.) and to include provision for landscaped areas. The sidewalk design shall provide for minimum clearances of 4 feet for ADA accessibility. It is acknowledged that the applicant may submit street improvement plans for Main Street, to accommodate on -street parking along the inside curve (west side), but is not required to 2156/015610-0088 669968.04 a02/09/06 —� do so. Any such improvement plans shall be subject to review and approval by the Community Development and Public Works Departments, as specified in Condition 7. Generally, said plans shall be based on a 4-foot curb inset to the west from existing curb line along Main Street, for an 18-foot half -width pavement section, as measured from centerline to gutter flow line, along the project frontage. PARKING LOTS AND ACCESS POINTS 31. The applicant shall conform to LQMC Chapter 9.150, relating to drive isle width, parking stall dimensions, and parking stall marking design requirements. Parking space markings shall be double four inch wide hairpin stripes as specified in LQMC Chapter 9.150. Exceptions to parking lot development standards shall be as shown on the plans and as set forth in these Conditions, which shall take precedence. 32. The applicant shall design street pavement sections using Caltrans' design procedure (20-year life) and site -specific data for soil strength and anticipated traffic loading (including construction traffic). Minimum structural sections shall be as follows (or approved equivalents for alternate materials) : Parking Areas 3.0" a.c./4.0" c.a.b. 33. The applicant shall submit current mix designs (less than two years old at the time of construction) for base, asphalt concrete and Portland cement concrete. The submittal shall include test results for all specimens used in the mix design procedure. For mix designs over six months old, the submittal shall include recent (less than six months old at the time of construction) aggregate gradation test results confirming that design gradations can be achieved in current production. The applicant shall not schedule construction operations until mix designs are approved. 34. General access points and turning movements of traffic are limited to the proposed access driveways on Main Street and Avenida La Fonda. All turn movements are permitted. 35. The entry driveway throat and parking aisle shall be permitted to be constructed as designed on the approved plans, at the depths as shown and 26 feet in width rather than the required 28 feet, as permitted under Section 9.65.030.A.3.a, in order to retain the parking space count of 49 on -site spaces. Use of wheel stops is not permitted. 2156,015610-0088 669968.04 a02/09,06 a 36. A total space count of 49 parking stalls, including handicapped parking spaces, shall be provided. A minimum of 16 spaces shall be maintained as covered parking, to be designed and located as required under Section 9.150.080.B.5, LQMC. 37. Design and final location of the two trash enclosures shall be reviewed and approved by Waste Management., with the written and/or stamped plan approval to be submitted during the building plan check process. No permits for these facilities shall be issued without said approval. 38. A minimum four -foot high screen wall shall be provided at the west property line. The wall design shall be consistent with the materials and colors used on the main structure, subject to review and approval by Community Development This shall be shown on the civil and landscape plans as submitted for plan check. LANDSCAPING 39. On -site and off -site (streetscape) landscape, landscape lighting and irrigation plans shall be submitted for approval by the Community Development Department. Plans shall be in substantial conformance with the conceptual landscaping as approved for the project by Planning Commission. When plan checking is complete, the applicant shall obtain the signatures of CVWD and the Riverside County Agricultural Commissioner prior to submitting for final acceptance by the Community Development Department. 40. The Silk trees located along the west property line shall be replaced with a non -deciduous (evergreen) variety, to be approved as part of the landscape plan check process. 41. The Phoenix Dactylifera species (Date Palms) to be used shall be purchased from within the Coachella Valley, per the requirement of the Riverside County Agricultural Commissioner. QUALITY ASSURANCE 42. The applicant shall employ construction quality -assurance measures which meet the approval of the City Engineer. 43. The applicant shall employ or retain qualified engineers, surveyors, or other appropriate professionals as are required to provide the expertise with which to prepare and sign accurate record drawings, and to provide adequate construction supervision. 156, 015610-0088 669968.04 a02 09/06 44. The applicant shall arrange for, and bear the cost of, all measurement, sampling and testing procedures not included in the City's inspection program but required by the City as evidence that construction materials and methods employed comply with plans, specifications and other applicable regulations. 45. Upon completion of construction, the applicant shall furnish the City with reproducible record drawings of all improvement plans which were approved by the City. Each sheet shall be clearly marked "Record Drawing," "As -Built" or "As -Constructed" and shall be stamped and signed by the engineer or surveyor certifying to the accuracy and completeness of the drawings. The applicant shall have all AutoCAD or raster -image files previously submitted to the City revised to reflect the as -built conditions. FEES AND DEPOSITS 46. The applicant shall pay the City's established fees for plan checking and construction inspection. Fee amounts shall be those in effect when the applicant makes application for plan checking and permits. 47. Provisions shall be made to comply with the terms and requirements of the City's adopted Art in Public Places program in effect at the time of issuance of building permits. 48. Permit(s) issued under this approval shall be subject to the provisions of the Development Impact Fee program in effect at the time said permit(s) are issued. 49. Prior to the issuance of any building permit for the Site, the applicant shall pay the up -front parking fees, in the manner and amount as specified in the Development Agreement for Village Use Permit 2005-032. FIRE PROTECTION 50. Specific fire protection requirements will be determined when final building plans are submitted for review. Final conditions will be addressed when building plans are submitted. A plan check fee must be paid to the Fire Department at the time building plans are submitted. MISCELLANEOUS 2156i015610-0088 069908.04 a02/09/06 —�— 51. The applicant shall submit a detailed project area lighting plan. Parking lot lighting is required, and shall meet the criteria set forth in Section 9.150.080,.K, LQMC. All pole -mounted light standards shall conform to lighting standards as in effect when plans are reviewed. Under canopy lighting for building areas shall incorporate flush lens caps or similar recessed ceiling lighting. The lighting plan shall be submitted for review at the time construction plan check for the permanent building permit is made to Building and Safety. 52. A comprehensive sign program shall be submitted for review and approval by the Planning Commission prior to establishment of any individual tenant signs for the project. Provisions of the sign program shall be in compliance with applicable sections of Chapter 9.160 of the Zoning Code. No signs shall be permitted to be placed on any portion of the roof projections or balcony railings along Main Street, and the west elevation. 53. All roof -mounted mechanical equipment must be internal to the roof design, or screened as an integral part of the roof structure, in a manner so as not to be visible from surrounding properties and streets. Working drawings showing all such equipment and locations shall be submitted to the Building and Safety Department along with the construction plan submittal for building permits. The method and design must be approved by the Community Development Department, prior to any issuance of the main structural building permit. 54. The building plans submitted for plan check shall incorporate the following revisions: A. The west elevation for the coffee shop portion of the building shall be modified to lower the stone veneer work, and add arched windows, and/or similar detailing, compatible with the main building. B. Wrought iron railings used on the project shall reflect more of a hand- crafted detailing, similar to the photo exhibit examples in the approved plain set, as opposed to the standard appearance of railings as represented in the architectural renderings and elevations. C. The proposed sign monument shall be reviewed as part of the sign program, as required by Condition 52. The monument shall be similar in design to the photo exhibit example of the fountain, contained in the approved plan exhibits. 55. It is understood by the Applicant that Nispero Properties, Inc, by payment of a deposit in the amount of $5,000 on 12/21 /05, has entered into an Agreement with the City relating to preparation and possible approval of a Development Agreement for the purpose of clarifying the applicant's parking 2156i015010-0088 W 669968.04 a02/09/06 -1 0- obligations associated with development of Village Use Permit 2005-032. This Village Use Permit shall not be effective unless and until the Development Agreement has been approved by the City Council and recorded; the applicant further understands that the City Council may choose to reject entering the Development Agreement or modify its contents. While this approval will not be effective until such time as a Development Agreement: may become effective, the time limits associated with approval of VUP 2005-032 shall be in effect with respect to expiration, as stated under Condition #2. 56. The permitted office and coffee bar uses shall be limited to those of a general intensity, consistent with the parking ratios of 1 space per 250 s.f. of office and 1 space per 150 s.f. of retail food with ancillary seating. This precludes use of any office space as a medical office use, and retail food with ancillary seating space for sit-down restaurant use, unless shared parking or tenant space reductions are determined to maintain the approved parking ratios for this building, or the Development Agreement is amended to allow payment of per -space fees to increase any use intensity for the project. 57. Use of the coffee bar lease space may be relocated to an alternate ground floor space, oriented toward the center of the main building proximate to the pedestrian entrance from Main Street. Limited unreserved ancillary outdoor seating for coffee bar patrons may be provided in the entry courtyard, whether or not the coffee bar space is relocated. 2156,'015610-0088 EXHIBIT "D" MEMORANDUM 2150,015610-0088 009968.04 a02i09106 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 Attn: City Clerk Space Above This Line for Recorder's Use (Exempt from Recording Fee per Gov't Code ti 6103) MEMORANDUM ACKNOWLEDGING SATISFACTION OF CONDITIONS THIS MEMORANDUM ACKNOWLEDGING SATISFACTION OF CONDITIONS ("Memorandum") is made and entered into as of , ("Effective Date"), by and between NISPERO PROPERTIES, INC., a California corporation ("Developer") and the CITY OF LA QUINTA, a California municipal corporation and charter city (the "City"), the LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic (the "Agency" and, collectively with the City, the "City Entities"), with reference to the following Recitals. 1. Purpose: Developer owns the 0.72 acre parcel of real property ("Site") located in the City of La Quinta, County of Riverside, State of California, which Site is legally described in Exhibit "A" attached hereto, and which is the subject of this Memorandum. In connection with the Site, the City approved Village Use Permit No. 2005-032 (the "VUP"), subject to conditions of approval, which provides planning and development criteria for a project commonly known as Sun Vista Plaza (the "Project"). The parties have entered that certain Development Agreement (the "Development Agreement which agreement is referenced here and was recorded as Instrument No. in Official Records of Riverside County. Third parties are referred to the Development Agreement for a full version of its contents. Capitalized terms have the definition attributed to them in the Development Agreement. The purpose of this Memorandum is to acknowledge that such parking fees required by the Development Agreement have been paid and that the parking obligation for the Project is fulfilled by the credit of _ parking stalls in the Agency Parking Lots and on -street parking spaces pursuant to the approved street improvement plan for Main Street parking; and to provide for the general public's use of Site parking stalls during times when the on -Site businesses are closed. The Development Agreement further prohibits the Developer or any person using the Site from using the La Quinta Library or La Quinta Senior Center parking areas as parking for the Project. 2. Acknowledgement of Pa)n-nent and Credit of Parking Stalls Located on the Agency Parking Lot. In connection with the Project, the City has credited the Developer with _ parking stalls in the Agency Parking Lots, and these stalls are counted towards fulfilling the Project's parking obligations to provide 68 parking stalls for the Project. In connection with this credit, Developer has paid the City a parking fee in the amount of $12,000 for each parking stall in the Agency Parking Lots credited towards the Project's parking obligation. This Memorandum does not operate to create a conveyance, hypothecation, lease, license, sale or any form of transfer of an interest in the parking spots on public streets or the Agency Parking Lots or any exclusive right to use parking spots on public streets or parking stalls in the Agency 'I�O0 15010-0088 _ _ 1 669965.04 a0?i09i06 1 „t �J Parking Lots. Developer shall have the same right to use parking spots on public streets and parking spaces in the Agency Parking Lots as members of the general public; provided, however, that Developer shall enforce a policy that encourages Project employees to park their automobiles at the Agency Parking Lots. 3. Use of Site Parking Lot by General Public. The parking stalls located on the Site shall be available to the general public for use at all times that on -Site businesses are closed. Developer shall not erect or maintain entry gates, regulated access barriers or any other driveway barrier. Developer shall not erect or place any signage on the Site prohibiting public parking during times that on -Site businesses are closed. The parking lot on the Site shall be lighted in conformity with the La Quinta Municipal Code between dusk and 11:00 p.m. every day of the week. Additionally, if Developer creates any parking spaces on Main Street pursuant to the VUP and an approved street improvement plan then such spaces shall not be restricted by Developer in any way and shall be available for use by the general public. 4. Indemnification. The indemnification provisions contained in Section 3.7 of the Development Agreement are incorporated herein by this reference as if reprinted in full. 5. Run with the Land; Binding on Successors and Assigns. The covenants, conditions, reservations and restrictions herein shall run with the Site and shall be binding upon Developer and each successive owner, lessee, licensee and other occupant of all or any portion of the Site, and shall benefit the City and be enforceable by the City and its successors and assigns. Every person or entity who now or hereafter owns or acquires any right, title or interest in or to any portion of the Site is and shall be conclusively deemed to have consented and agreed to every covenant, condition, reservation and restriction contained herein whether or not any reference to this Memorandum is contained in the instrument by which such person or entity acquired an interest in the Site. 6. Term; Amendment and Termination. This Memorandum may be validly terminated, amended or modified, in whole or in part, only by recordation with the Riverside County Recorder of a proper instrument duly executed and acknowledged by (a) City, or, as applicable, its successors and assigns, and (b) the owner(s) of the fee interest in the portion of the Site that is directly affected by such termination, amendment or modification. 7. Recording. This Memorandum shall be recorded on the Site described in Exhibit "A" in the Office of the County Recorder, Riverside County, California. 8. Authority of Signatories to Bind Principals. The persons executing this Memorandum on behalf of their respective principals represent that (1) they have been authorized to do so and that they thereby bind the principals to the terms and conditions of this Memorandum and (ii) their respective principals are properly and duly organized and existing under the laws of, and permitted to do business in, the State of California. 9. Counterparts. This Memorandum may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which counterparts taken together shall constitute but one and the same instrument. 2156/015610-0088 069968.04 a02/09/06 IN WITNESS WHEREOF, this Memorandum has been executed by the parties as of the date set forth above. "DEVELOPER" NISPERO PROPERTIES, INC., a California corporation By: Its: By: Its: ,,CITY" CITY OF LA QUINTA, a California municipal corporation and charter city By: Thomas P. Genovese City Manager ATTEST: June Greek City Clerk APPROVED AS TO FORM RUTAN & TUCKER, LLP M. Katherine Jenson City Attorney 2156,015610-0088 009968.04 a02,'W06 STATE OF CALIFORNIA COUNTY OF SS 1 On , before me, personally appeared 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] STATE OF CALIFORNIA ) ss COUNTY OF ) On , before me, personally appeared 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 m`✓ hand and official seal. Notary Public [SEAL] 2150 015610-0088 669968.04 a02i09'06 '4- EXHIBIT "A" LEGAL DESCRIPTION OF SITE LOT 68 AND 77 OF DESERT CLUB TRACT UNIT #4, IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED NOVEMBER 6, 1946 IN BOOK 21, PAGE(S) 60 OF MISCELLANEOUS MAPS IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. 2156,015610-0088 609968.04 a02/09/06 EXHIBIT "E" COMPLIANCE CERTIFICATE >156 015010-0088 669968.04 a0?i09 06 COMPLIANCE CERTIFICATE (NISPERO PROPERTIES, INC. DEVELOPMENT AGREEMENT) The undersigned, NISPERO PROPERTIES, INC., a California corporation ("Developer"), pursuant to Section 4.1 of that certain Development Agreement dated , 2006, (the "Development Agreement"), by and among Developer, the CITY OF LA QUINTA, a California municipal corporation and charter city (the "City") and the LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic (the "Agency"), by its signature below hereby certifies to the City, for the City's reliance that: 1. Capitalized terns not defined herein shall have the same meaning as set forth in the Development Agreement; 2. The undersigned is familiar with the certifications and representations set forth in this Compliance Certificate, 3. Developer has performed and complied with its obligations under the Development Agreement to be performed or complied with by it on or prior to the date hereof. Developer has also performed all Conditions of Approval to be performed or complied with by it on or prior to the date hereof. Not by way of limitation of the foregoing, the Developer warrant and represents that: (1) the Memorandum required by Section 3.2 of the Development Agreement has been approved by the City and recorded against the Site; (2) all payments required pursuant to Section 3.3.2 of the Development Agreement have been paid; and (3) all Conditions of Approval to be performed or complied with as of the date hereof have been satisfied in the manner set forth in Schedule 1, which schedule identifies all applicable Conditions of Approval and a description of how the condition has been satisfied. IN WITNESS WHEREOF, this Compliance Certificate is executed effective the day of , under penalty of perjury under the laws of California. NISPERO PROPERTIES, INC., a California corporation By: Its: By: Its: 21-�6i015610-0088 609968.04 a02,'09/06 — 1 — SCHEDULE I CONDITIONS OF APPROVAL [DEVELOPER SHALL ATTACH A FULL AND COMPLETE LIST OF ALL CONDITIONS OF APPROVAL THAT ARE APPLICABLE TO THE PROJECT TO DATE AND A DESCRIPTION OF HOW EACH CONDITION OF APPROVAL HAS BEEN SATISFIED.] 2156%015610-0088 a 669968.04 ta02%09/06 EXHIBIT "F" CFNFR Al. AcsSIGNMENT AND ASSUMPTION AGREEMENT 2156,015610-0088 069908.04 a02i09i06 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 Attn: City Clerk Space Above This Line for Recorder's Use (Exempt from Recording Fce per Gov't Code § 6103) ASSIGNMENT AND ASSUMPTION AGREEMENT THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (the "Assignment") is made and entered into as of ("Effective Date"), by and between NISPERO PROPERTIES, INC., a California corporation (the "Developer" or "Assignor") and [ASSIGNEE] ("Assignee"), with reference to the following Recitals. Recitals A. Assignor is the developer of 0.72 acres of real property located in the City of La Quinta, County of Riverside, State of California (the "Site"), which is legally described in Exhibit "A" attached here. B. Capitalized terms not defined herein shall have the same meaning as set forth in the Development Agreement. C. Assignor, as "Developer," the City of La Quinta, a California municipal corporation ("City") and the La Quinta Redevelopment Agency, a public body, corporate and politic ("Agency"), have entered into that certain Development Agreement dated 2006 (the "Development Agreement"), for purposes of, among other things, (1) setting forth a per -parking stall up -front payment for the Developer's payment to the City of certain fees that the parties agree are designed to compensate the City for (A) the crediting of parking stalls located in the Agency Parking Lots and _ street parking spaces created pursuant to the approved street improvement plan for Main Street, towards fulfilling the Project's parking obligation; and (B) the potential added wear and tear on the municipal infrastructure which will result from the Development Plan and the crediting of the parking stalls in the Agency Parking Lots; (ii) requiring, the Developer and its successors -in -interest to provide public parking on the Site; and (ill) granting Developer a vested right to develop the Site according to the Development Plan. D. Concurrently with the Effective Date, Assignor shall have conveyed to Assignee the Site [or the portion thereof described on Exhibit B attached hereto (the "Designated Site")]. E. In accordance with Section 7.1 of the Development Agreement, Assignor now desires to assign all of its obligations and its right, title, and interest in and to the Development ,k 2156,015610-0088 669968.04 a02/09/06 Agreement [as to the Designated Site] to Assignee, and Assignee desires to accept such assignment on, and subject to, the terms and conditions set forth in this Assignment. NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: Agreement 1. Ass n� ment. From and after the Effective Date, Assignor hereby assigns, conveys, transfers and delivers to Assignee all of Assignor's right, title, interest, and obligation in, to and under the Development Agreement [as the same applies to the Designated Site], and Assignee hereby accepts such assignment and agrees to assuwne performance of all terms, covenants and conditions occurring or arising under the Development Agreement [as the same applies to the Designated Site] from and after the date of this Assignment. 2. Assumption of Obligations. By acceptance of this Assignment, Assignee hereby agrees to assume all of Assignor's right, title, interest and obligation in, to and under the Development Agreement [as the same applies to the Designated Site], and Assignee agrees to timely discharge, perform or cause to be performed and to be bound by all of the liabilities, duties and obligations imposed in connection with the Development Agreement [as the same applies to the Designated Site], from and after the date of this Assignment to the same extent as if Assignee had been the original party thereto. 3. Successors and Assigns. This Assignment shall be binding upon and shall inure to the benefit of the successors and assigns of the respective parties hereto. 4. Governing Law. This Assignment shall be governed by and construed in accordance with the laws of the State of California. 5. Further Assurances. The parties covenant and agree that they will execute such other and further instruments and documents as are or may become necessary or convenient to effectuate and carry out this Assignment. 6. Authority of Signatories to Bind Principals. The persons executing this Assignment on behalf of their respective principals represent that (1) they have been authorized to do so and that they thereby bind the principals to the terms and conditions of this Assignment and (ii) their respective principals are properly and duly organized and existing under the laws of, and permitted to do business in, the State of California. 7. Interpretation. The paragraph headings of this Assignment are for reference and convenience only and are not part of this Assignment. They have no effect upon the construction or interpretation of any part hereof. The provisions of this Assignment shall be construed in a reasonable manner to effect the purposes of the parties and of this Assignment. 8. Counterparts. This Assignment may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which counterparts taken together shall constitute but one and the same instrument. 1 �6,015610-0088 rj 4 4 IN WITNESS WHEREOF, this Assignment has been executed by the parties as of the date set forth above. "Assignor" NISPERO PROPERTIES, INC., a California corporation By: Its: By: Its: "Assignee" [INSERT ASSIGNEE SIGNATURE BLOCK] 2156,015010-0088 _ 669968M4 a0'J09/06 STATE OF CALIFORNIA ) ss COUNTY OF ) O» , before me, personally appeared 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] STATE OF CALIFORNIA ) ss COUNTY OF ) On , before me, personally appeared 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 in,/ hand and official seal. Notary Public [SEAL] 1156,015610-0088 EXHIBIT "A" LEGAL DESCRIPTION OF SITE LOT 68 AND 77 OF DESERT CLUB TRACT UNIT #4, IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED NOVEMBER 6, 1946 IN BOOK 21, PAGE(S) 60 OF MISCELLANEOUS MAPS IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. 2156;015610-0088 669968.04 a02 09,06 EXHIBIT "G" DEPICTION OF LIBRARY AND SENIOR CENTER PARKING AREAS "156 015610-0088 009968.04 a02i09/06 EXHIBIT "H" RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO City of La Quinta 78-495 Calle Tampico La Quinta, CA 922,53 Attn: City Clerk Space Above This Line for Recorder's Use (Exempt from Recording Fee per Gov't Code § 6103) MEMORANDUM OF DEVELOPMENT AGREEMENT OFF SITE PARKING AND FEE REDUCTION THIS MEMORANDUM OF DEVELOPMENT AGREEMENT OFF SITE PARKING AND FEE REDUCTION ("Memorandum") is made and entered into as of ("Effective Date"), by and between NISPERO PROPERTIES, INC., a California corporation (the "Developer") and the CITY OF LA QUINTA, a California municipal corporation and charter city (the "City"), the LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic (the "Agency" and, collectively with the City, the "City Entities"), with reference to the following Recitals. Recitals A. Developer is the developer of 0.72 acres of real property located in the City of La Quinta, County of Riverside, State of California (the "Site"), which is legally described in Exhibit "A" attached here. B. Capitalized terms not defined herein shall have the same meaning as set forth in the Development Agreement. C. Developer and the City Entities, have entered into that certain Development Agreement dated , 2006 (the "Development Agreement"), for purposes of, among other things, (1) setting forth a per -parking stall up -front payment for the Developer's payment to the City of certain fees that the parties agree are designed to compensate the City for (A) the crediting of 19 parking stalls located in the Agency Parking Lots towards fulfilling the Project's parking obligation; and (B) the potential added wear and tear on the municipal infrastructure which will result from the Development Plan and the crediting of the parking stalls in the Agency Parking Lots; (ii) requiring the Developer and its successors -in -interest to provide public parking on the Site; and (iii) granting Developer a vested right to develop the Site according to the Development Plan. D. The Development Agreement provided that the Developer's Site design could include the provision of a certain number of on -street parking spaces on Main Street, pursuant to w. 156,01�610-0088 669968.04 a02/09i06 1 an approved street improvement plan, and that said on -street parking spaces would count on a one -for -one basis to reduce the number of Agency Parking Lots parking spaces credited and to reduce the fee paid to the City. E. The City has approved a street improvement plan for Main Street that includes _ street parking spaces. Therefore, the parties now desire to record this Memorandum to evidence the one -for -one reduction in credited Agency Parking Lots parking stalls and to reduce the fee paid to the City accordingly. NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: Agreement 1. Reduction of Agency Parking Lots Parking Stalls Credit. (_) on -street parking spaces have been designed pursuant to a street improvement plan for Main Street, approved by the City Public Works Department and Community Development Director then Developer. These spaces are hereby credited on a one -for -one basis to the Developer's parking obligation. The number of stalls credited from the Agency Parking Lots is hereby reduced on a one -for -one basis such that the Developer shall now be credited (_) parking stalls in the Agency Parking Lots towards its parking obligations. The Developer shall be credited ( ) Agency Parking Lots parking spaces. 2. Reduction of Parking Fees. The parking fee paid pursuant to Section 3.4 of the Development Agreement is hereby reduced to account for the credited street parking spaces. Pursuant to Section 3.4. 3. No Modification. Except as specifically provided herein, the Development Agreement is not amended, altered or modified and remains in full force and effect. 4. Successors and Assigns. This Memorandum shall be binding upon and shall inure to the benefit of the successors and assigns of the respective parties hereto. 5. Governing Law. This Memorandum shall be governed by and construed in accordance with the laws of the State of California. S. Counterparts. This Memorandum may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which counterparts taken together shall constitute but one and the same instrument. 2156,015010-0088 669968.04 a02i09,06 2 IN WITNESS WHEREOF, this Memorandum has been executed by the parties as of the date set forth above. ATTEST: June Greek City Clerk APPROVED AS TO FORM RUTAN & TUCKER, LLP M. Katherine Jenson City Attorney "DEVELOPER" NISPERO PROPERTIES, INC., a California corporation By: Its: By: Its: "CITY" CITY OF LA QUINTA, a California municipal corporation and charter city Thomas P. Genovese City Manager [Signatures continue on next page.] "AGENCY" LA QUINTA REDEVELOPMENT AGENCY, 2156i015610-0088 669908.04 a02;09,06 '3- a public body, corporate and politic Thomas P. Genovese Executive Director ATTEST: June Greek Agency Clerk APPROVED AS TO FORM RUTAN & TUCKER, LLP M. Katherine Jenson Agency Counsel 31500 1S610-0088 009968.04 a02,09%06 STATE OF CALIFORNIA COUNTY OF On , before me, personally appeared 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 ss 1 Notary Public On , before me, personally appeared 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] 2150I015610-0088 009908.04 a02/09/06 '� EXHIBIT "A" LEGAL DESCRIPTION OF SITE LOT 68 AND 77 OF DESERT CLUB TRACT UNIT #4, IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED NOVEMBER 6, 1946 IN BOOK 21, PAGE(S) 60 OF MISCELLANEOUS MAPS IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. 2156i015010-0088 669968.04 a02/09i06 1.0 GENERAL........................................................................................................................3 1.1 Tenn...................................................................................................................... 3 1.2 Effective Date.......................................................................................................3 1.3 Amendment or Cancellation.................................................................................3 1.4 Termination...........................................................................................................3 .5 Incorporation of Recitals....................................................................................... 3 2.0 DEVELOPER'S RIGHTS AND LIMITATIONS REGARDING CONSTRUCTION OF THE PROJECT...........................................................................4 2.1 Right to Develop...................................................................................................4 2.2 Additional Applicable Codes and Regulations.....................................................5 2.3 Permitted Density, Height and Use Limitations...................................................5 2.4 Credit of Parking Stalls in the Agency Parking Lots ............................................ 5 2.4.1 Agency Consent........................................................................................ 5 2.4.2 Reduction of Credited Parking Spaces ..................................................... 5 3.0 DEVELOPER'S OBLIGATIONS....................................................................................6 3.1 Conditions of Approval.........................................................................................6 3.2 Acknowledgement of Satisfied Conditions..........................................................6 3.3 No Parking on Public Library or Senior Center Areas.........................................6 3.4 Payments to City by Developer............................................................................7 3.4.1 General......................................................................................................7 3.4.2 Developer's Payments of Up -Front Parking Fees .................................... 7 3.4.3 City Parking Fee Study; Effect on Payment of Up -Front Parking Fees........................................................................................................... 7 3.4.4 Other Fees and Charges............................................................................7 3.5 Dedications and Improvements.............................................................................8 3.6 Public Use of Site's Parking Stalls....................................................................... 8 3.7 Indemnification..................................................................................................... 8 4.0 CITY'S 013LIGATIONS & ACKNOWLEDGEMENTS................................................9 4.1 Scope of Subsequent Review/Confirmation of Compliance Process...................9 4.2 Project Approvals Independent.............................................................................9 4.3 Review for Compliance........................................................................................9 4.4 Satisfaction of VUP Condition.............................................................................9 5.0 DEFAULT; REMEDIES; DISPUTE RESOLUTION....................................................10 5.1 Notice of Default.................................................................................................10 5.2 Cure of Default...................................................................................................10 10 5.3 Cityy Remedies..................................................................................................... 5.4 Developer's Exclusive Remedies....................................................................... I I 6.0 MORTGAGEE PROTECTION; CERTAIN RIGHTS OF CURE.................................11 6.1 Encumbrances on the Project Site.......................................................................11 6.2 Mortgage Protection............................................................................................ 1 1 6.3 Mortgagee Not Obligated...................................................................................11 6.4 Notice of Default to Mortgagee; Right of Mortgagee to Cure ............................11 OF INTEREST IN SITE OR AGREEMENT .12 7.0 TRANSFERS :...:................................... 12 7.1 Successors and Assigns ................ 8.0 MISCELLANEOUS.......................................................................................................12 8.1 Notices................................................................................................................12 8.2 Force Majeure.....................................................................................................13 8.3 Binding Effect.....................................................................................................14 8.4 Independent Entity..............................................................................................14 8.5 Agreement Not to Benefit Third Parties.............................................................14 8.6 8.7 Covenants............................................................................................................14 Nonliability of City/Agency Officers and Employees........................................14 8.8 Covenant Against Discrimination.......................................................................14 8.9 Amendment of Agreement..................................................................................14 8.10 No 'Waiver...........................................................................................................15 8.11 Severability.........................................................................................................15 8.12 Cooperation in Carrying Out Agreement............................................................15 8.13 Estoppel Certificate.............................................................................................15 8.14 Construction........................................................................................................16 8.15 Recordation.........................................................................................................16 8.16 Captions and References.....................................................................................16 8.17 8.18 Time....................................................................................................................16 Recitals & Exhibits Incorporated; Entire Agreement.........................................16 8.19 Exhibits...............................................................................................................16 8.20 Counterpart Signature Pages...............................................................................16 8.21 Authority to Execute...........................................................................................17 8.22 Governing Law; Litigation Matters....................................................................17 8.23 No Brokers.................................................................................................... ......17 COUNCIL/RDA MEETING DATE: February 21, 2006 ITEM TITLE: Acceptance of Project No. 2002-07J, SilverRock Resort: Irrigation Well Site RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Accept SilverRock Resort Irrigation Well Site, Project No. 2002-07J, as complete; 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 $35,575, 35 days after the Notice of Completion is recorded. FISCAL IMPLICATIONS: The following is a budget summary: Original Contract Amount $355,753 Contract Change Order No. 1 $24,019 Revised Contract Amount $379,772 Adequate funding is available within the SilverRock Resort construction budget to pay the contractor's remaining retention of $35,575. CHARTER CITY IMPLICATIONS: Charter City implications were addressed during the bid. Since this project is funded by RDA funds, the project was bid as a prevailing wage job and all subsequent contract change orders reflect prevailing wages. BACKGROUND AND OVERVIEW: On December 21, 2004, the Agency awarded a contract in the amount of $355,753 to Palm Springs Pump, Inc. to construct improvements specified by Project No. 2002- 07J, SilverRock. Resort Irrigation Well Site. Including change orders, the total contract amount for this project is $379,772. T:\PWDEPT\COUNCIL\2006\02-21-06\C4 Project 2002-07J.doc Change Order No. 1 provided additional miscellaneous grading and piping in order to accommodate differences in field conditions from those shown on the plans. All work is now considered 100% complete therefore, staff recommends acceptance of this project. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency include: 1. Accept SilverRock Resort Irrigation Well Site, Project No. 2002-07J, as complete; 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 $35,575, 35 days after the Notice of Completion is recorded; or 2. Do not accept SilverRock Resort Irrigation Well Site, Project No. 2002-07J, as complete; 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 $35,575, 35 days after the Notice of Completion is recorded; or 3. Provide staff with alternative direction. Respectfully submitted, Ti othy R. Jonas on, P.E. Public Works Director/City Engineer Approved for submission by: Thomas P. Genovese, Executive Director T:\PWDEPT\COUNCIL\2006\02-21-06\C4 Project 2002-07J.doc 2 Lam 7 r - G� OFL� COUNCIL/RDA MEETING DATE: February 21, 2006 AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: ITEM TITLE: Approval of a Professional Services Agreement with Economics Research Associates for a STUDY SESSION: 2006 La Quinta Market Study PUBLIC HEARING: RECOMMENDATION: Approve a Professional Services Agreement with Economics Research Associates for a 2006 La Quinta Market Study. FISCAL IMPLICATIONS: Funds for this project are included in the City of La Quinta Fiscal Year 2005-06 Budget (Accounts #405-9001-702.55-04 and #406-9002-702.55-07). BACKGROUND AND OVERVIEW: In accordance with the City of La Quinta 2005-06 Economic Development Plan, staff is proposing that the Redevelopment Agency Board approve the commissioning of a 2006 La Quinta Market Study. The last La Quinta Market Study was conducted in April 2003 by Design Workshop. Last year, staff included a focused market study project in the Economic Development Plan for purposes of obtaining updated market information that would focus on the City's most prominent (and potentially prominent) commercial districts. In consultation with the Rosenow Spevacek Group, staff has worked with Economics Research Associates (ERA) on defining a Scope of Services for the 2006 La Quinta Market Study. The Agency may recall that ERA provided professional services related to golf markets during the construction of the Arnold Palmer Classic Course at SilverRock. The proposed Scope of Services for the 2006 La Quinta Market Study involves a market environment analysis for La Quinta in relation to the following areas: 1) Highway 1 1 1 , 2) The Village, 3) SilverRock Resort, and 4) La Quinta Annexation. In general, the Scope of Services entails updating demographic information, conducting inventories, analyzing market conditions, identifying trends, highlighting market opportunities, evaluating key development issues, and closely examining any future annexation. The Study will also include an analysis on the market demand for theatres (e.g., movie, live) in the City, especially along Highway 1 1 1 . Staff has prepared a Professional Services Agreement (Attachment 1) for commissioning of the 2006 La Quinta Market Study for Agency consideration. A detailed Scope of Services is included as Exhibit "A" of the Agreement, which has an associated fee of $40,000 as reflected in Exhibit "B." A draft of the Market Study is proposed by the end of March 2006 for incorporation into the 2006-07 Economic Development Plan. Ultimately, the new and updated information in the Market Study will be used to craft targeted initiatives for each commercial district in efforts to facilitate development of commercial, resort, cultural, and other uses. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency Board include: 1. Approve a Professional Services Agreement with Economics Research Associates for a 2006 La Quinta Market Study; or 2. Do not approve a Professional Services Agreement with Economics Research Associates for a 2006 La Quinta Market Study; or 3. Provide staff with alternative direction. Respectfully submitted, Thomas P. Genovese, Executive Director Attachment: 1 . Professional Services Agreement Attachment 1 PROFESSIONAL SERVICES AGREEMENT This AGREEMENT FOR PROFESSIONAL SERVICES (the "Agreement"), is made and entered into by and among the LA QUINTA REDEVELOPMENT AGENCY (the "Agency"), and ECONOMICS RESEARCH ASSOCIATES (The "Contractor"). The parties hereto agree as follows: SERVICES OF CONTRACTOR 1.1 Scope of Services. In compliance with all terms and conditions of the Agreement, the Contractor shall provide those services related to a 2006 La Quinta Market Study, as specified in the "Scope of Services" attached hereto as Exhibit "A" and incorporated herein by this reference (the "services" or "work"). Contractor warrants that all services will be performed in a competent, professional and satisfactory manner in accordance with the standards prevalent in the industry for such services. Services will be provided to the Agency. 1.2 Contractor's Proposal. The Scope of Services shall include the Contractor's proposal or bid, which shall be incorporated herein by this reference as though fully set forth herein. In the event of any inconsistency between the terms of such proposal and this Agreement, the terms of this Agreement shall govern. 1.3 Compliance with Law. All services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, regulations and laws of the Municipality, and any and all Federal, State or local governmental agency of competent jurisdiction. 1.4 Licenses, Permits, Fees, and Assessments. Contractor shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. Contractor shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which maybe imposed by law and arise from or are necessary for the performance of the services required by this Agreement. 1.5 Familiarity with Work. By executing this Agreement, Contractor warrants that (a) it has thoroughly investigated and considered the work to be performed, (b) it has investigated the site of the work and fully acquainted itself with the conditions there existing, (c) it has carefully considered how the work should be performed, and (d) it fully understands the facilities, difficulties and restrictions attending performance of the work under this Agreement. Should the Contractor discover any latent or unknown conditions materially differing from those inherent in the work or as represented by the Agency, it shall immediately inform Agency of such fact and shall not proceed except at Contractor's risk until written instructions are received from the Contract Officer (as defined in Section 4.2 hereof). 1.6 Care of Work. The Contractor shall adopt reasonable methods during the life of the Agreement to furnish continuous protection to the work, and the equipment, materials, papers and other components thereof to prevent losses or damages, and shall be responsible for all such damages, to person, or property, until acceptance of the work by Agency, except such losses or damages as may be caused by Agency's own negligence. The performance of services by Contractor shall not relieve Contractor from any obligation to correct any incomplete, inaccurate or defective work at no further cost to the Agency, when such inaccuracies are due to the negligence of Contractor. 1.7 Additional Services. In accordance with the terms and conditions of this Agreement, the Contractor shall perform services in addition to those specified in the Scope of Services, (Exhibit "A") when directed in writing to do so by the Contract Officer, provided that Contractor shall not be required to perform any additional services without compensation. 2.0 COMPENSATION 2.1 Contract Sum. For the services rendered pursuant to the Agreement, the Contractor shall be compensated in accordance with the "Schedule of Compensation" attached hereto as Exhibit "B" and incorporated herein by this reference. The Contractor shall be compensated in an amount not exceeding Forty Thousand Dollars ($40,000) (the "Contract Sum"). The method of compensation set forth in the Schedule of Compensation will include payment for time and materials based upon the Contractor's rates as specified in Exhibit "B", or such other methods as may be specified in the Schedule of Compensation (Exhibit "B"). Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, transportation expenses, telephone expense, and similar costs and expenses when and if specified in the Schedule of Compensation (Exhibit "B"). 2.2 Method of Payment. Any month in which Contractor wishes to receive payment, Contractor shall submit to the Agency no later than the tenth (lot") working day of such month, in the form approved by the Contract Officer, an invoice for services rendered prior to the date of the invoice. Such invoice shall (1) describe in detail the services provided, including time and materials, (2) specify each staff member who has provided services and the number of hours assigned to each such staff member, and (3) indicate the total expenditures to date. Such invoice shall contain a certification by a principal member of Contractor specifying that the payment requested is for work performed in accordance with the terms of this Agreement. The Municipality will pay Contractor for all expenses stated thereon which are approved by the Municipality pursuant to this Agreement no later that the last working day of the month. 3.0 PERFORMANCE SCHEDULE 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. 3.2 Schedule of Performance. All services rendered pursuant to this Agreement shall be performed diligently and within the performance of this Agreement. 3.3. Force Majeure. All time periods specified for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of the Contractor, including, but not restricted to, acts of God or of the public enemy, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargos, acts of any governmental agency other than Agency., and unusually severe weather, if the Contractor shall within ten (10) days of the commencement of such delay notify the Contracting Officer in writing of the causes of the delay. The Contracting Officer shall ascertain the facts and the extent of delay and extend the time for performing their services for the period of the forced delay when and if in his judgment such delay is justified, and the Contracting Officer's determination shall be final and conclusive upon the parties to this Agreement. 3.4 Term. Unless earlier terminated in accordance with Sections 7.7 and 7.8 of this Agreement, this Agreement shall continue in full force and effect for six (6) months, from the date of the execution of this Agreement. 4.0 COORDINATION OF WORK 4.1 Representative of Contractor. The following principal of Contractor is hereby designated as being the principal and representative of Contractor authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith: Gene Krekorian, Senior Vice President It is expressly understood that the experience, knowledge, capability and reputation of the foregoing principal was a substantial inducement for Agency to enter into this Agreement. Therefore, the foregoing principal shall be responsible during the term of the Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the services hereunder. The foregoing principal may not be changed by Contractor and no other personnel may be assigned to perform the service required hereunder without the express written approval of Agency. 4.2 Contract Officer. The Contract Officer shall be the Agency Executive Director or such other person as may be designated by the Agency Executive Director. The Contract Officer has been authorized to act on behalf of the Agency for the purposes of this Agreement. It shall be the Contractor's responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and the Contractor shall refer any decisions which must be made by Agency to the Contract Officer. Unless otherwise specified herein, any approval of Agency required hereunder shall mean the approval of the Contract Officer. 4.3 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability and reputation of Contractor, its principals and employees were a substantial inducement for the Agency to enter into this Agreement. Therefore, Contractor shall not contract with any other entity to perform in whole or in part the services required hereunder without the express written approval of the Agency. In addition, neither this Agreement nor any interest herein may be assigned or transferred, voluntarily or by operation of law, without the prior written approval of Agency. 4.4 Independent Contractor. Neither the Agency nor any of its employees shall have any control over the manner, mode or means by which Contractor, its agents or employees, perform the services required herein, except as otherwise set forth. Contractor shall perform all services required herein as an independent contractor with only such obligations as are consistent with that role. Contractor shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of Agency. 4.5 Agency Cooperation. The Agency shall provide Contractor with any plans, publications, reports, statistics, records or other data or information pertinent to services to be performed hereunder which are reasonably available to the Agency. 5.0 INSURANCE INDEMNIFICATION AND BONDS. 5.1 Insurance. The Contractor shall procure and maintain, at its cost, and submit concurrently with its execution of the Agreement, public liability and property damage insurance against all claims for injuries against persons or damages to property resulting from Contractor's acts or omissions rising out of or related to Contractor's performance under this Agreement. The insurance policy shall contain a severability of interest clause providing that the coverage shall be primary for losses arising out of Contractor's performance hereunder and neither the Agency nor its insurers shall be required to contribute to any such loss. A certificate evidencing the foregoing and naming the Agency and its officers and employees as additional insured shall be delivered to and approved by the Agency prior to commencement of the services hereunder. The amount of insurance required hereunder shall be determined by the Contract Sum in accordance with the following table: Contract Sum Coverage (personal injury/property damage) Less than $50,000 $100,000 per individual; $300,000 per occurrence $50,000-$300,000 $250,000 per individual; $500,000 per occurrence Over $300,000 $500,000 per individual; $1,000,000 per occurrence The Contractor shall also carry automobile liability insurance of $1,000,000 per accident against all claims for injuries against persons or damages to property arising out of the use of any automobile by the Contractor, its officers, any directly or indirectly employed by the Contractor, any subcontractor, and agents or anyone for whose acts any of them may be liable, arising directly or indirectly out of or related to Contractor's performance under this Agreement. The term "automobile" includes, but is not limited to, a land motor vehicle, trailer or semi -trailer designed for travel on public roads. The automobile insurance policy shall contain a severability of interest clause providing that coverage shall be primary for losses arising out of Contractor's performance hereunder and neither the Agency nor its insurers shall be required to contribute to such loss. A certificate evidencing the foregoing and naming the Agency and its officers and employees as additional insured shall be delivered to and approved by the Agency prior to commencement of the services hereunder. Contractor shall also carry Workers' Compensation Insurance in accordance with State Workers' Compensation laws. The Contractor shall procure professional errors and omissions liability insurance in the amount acceptable to the Agency. All insurance required by the Section shall be kept in effect during the term of this Agreement and shall not be cancelable without thirty (30) days' written notice of proposed cancellation to Agency. The procuring of such insurance or the delivery of policies or certificates evidencing the same shall not be construed as a limitation of Contractor's obligation to indemnify the Agency, its officers, employees, contractors, subcontractors or agents. 5.2 Indemnification. The Contractor shall defend, indemnify and hold harmless the Agency, its officers, officials, employees, representatives and agents, ("Agency indemnitees"), from and against any and all actions, suits, proceedings, claims, demands, losses, costs, and expenses, including legal costs and attorneys' fees, for injury to or death of person(s), for damage to property (including property owned by the Agency) ("Claims") and for errors and omissions committed by Contractor, its officers, anyone directly or indirectly employed by Contractor, any subcontractor, and agents or anyone for whose acts any of them may be liable, arising directly or indirectly out of or related to Contractor's performance under this Agreement, except to the extent of such loss as may be caused by Agency's own active negligence, sole negligence or willful misconduct, or that of its officers or employees. In the event the Agency indemnitees are made a party to any action, lawsuit, or other adversarial proceeding in any way involving such Claims, Contractor shall provide a defense to the Agency indemnitees, or at the Agency's option, reimburse the Agency indemnitees their costs of defense, including reasonable attorney's fees, incurred in defense of such Claims. In addition contractor shall be obligated to promptly pay any final judgment or portion thereof rendered against the Agency indemnitees. 5.3 Remedies. In addition to any other remedies the Agency may have if Contractor fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, the Agency, at its sole option: Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement. 2. Order the Contractor to stop work under this Agreement and/or withhold any payments(s) which become due to Contractor hereunder until Contractor demonstrates compliance with the requirements hereof. 3. Terminate the Agreement. Exercise of any of the above remedies, however, is an alternative to any other remedies the Agency may have and are not the exclusive remedies for Contractor's failure to maintain or secure appropriate policies or endorsements. Nothing herein contained shall be construed as limiting in any way the extent to which Contractor may be held responsible for payments of damages to person or property resulting from Contractor's or its subcontractors' performance of work under this Agreement. 6.0 RECORDS AND REPORTS 6.1 Reports. Contractor shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the services required by this Agreement as the Contract Officer shall require. 6.2 Records. Contractor shall keep such books and records as shall be necessary to perform the services required by this Agreement and enable the Contract Officer to evaluate the cost and the performance of such services. Books and records pertaining to costs shall be kept and prepared in accordance with generally accepted accounting principles. The Contract Officer shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit and make records and transcripts from such records. 6.3 Ownership of Documents. Originals of all drawings, specifications, reports, records, documents, and other materials, whether in hard copy or electronic form, which are prepared by Contractor, its employees, subcontractors and agents in the performance of this Agreement, shall be the property of Agency and shall be delivered to Agency upon the termination of this Agreement or upon the earlier request of the Contract Officer, and Contractor shall have not claim for further employment or additional compensation as a result of the exercise by Agency of its full rights of ownership of the documents and materials hereunder. Contractor may retain copies of such documents for its' own use. Contractor shall ensure all subcontractors to assign Agency any documents or materials prepared by them, and in the event Contractor fails to secure such assignment, Contractor shall indemnify Agency for all damages suffered thereby. 6.4 Release of Documents. The drawings, specifications, reports, records, documents and other materials prepared by Contractor in the performance of services under this Agreement shall not be released publicly without the prior written approval of the Contract Officer or as required by law. Contractor shall not disclose to any other private entity or person any information regarding the activities of the Agency, except as required by law or as authorized by the Agency. 7.0 ENFORCEMENT OF AGREEMENT 7.1 California Law. This Agreement shall be construed and interpreted both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court :in such county, and Contractor covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 7.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party in writing of its contentions by submitting a claim therefor. The injured party shall continue performing its obligation hereunder so long as the injuring party commences to cure such default within ten (10) days of service of such notice and completes the cure of such default within forty-five (45) days after service of the notice, or such longer period as may be permitted by the Contract Officer; provided that if the default is an immediate danger to the health, safety and general welfare, the Agency may take such immediate action as the Agency deems warranted. Compliance with the provisions of this Section shall be a condition precedent to termination of the Agreement for cause and to any legal action, and such compliance shall not be a waiver of any party's right to take legal action in the event that the dispute is not cured, provided that nothing herein shall limit Agency's right to terminate this Agreement without cause pursuant to Section 7.8. 7.3 Retention of Funds. Agency may withhold from any monies payable to Contractor sufficient funds to compensate Agency for any losses, costs, liabilities or damages it reasonably believes were suffered by Agency due to the default of Contractor in the performance of the services required by the Agreement. 7.4 Waiver. No delay or omission in the exercise of any right or remedy of a nondefaulting party on any default shall impair such right or remedy or be construed as a waiver. Agency's consent or approval of any act by Contractor requiring Agency's consent or approval shall not be deemed to waive or render unnecessary Agency's consent to or approval of any subsequent act of Contractor. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 7.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. 7.6 Legal Action. In addition to any other rights or remedies, either party may take legal action, at law or at equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. 7.7 Termination Prior to Expiration of Term. This Section shall govern any termination of this Agreement, except as specifically provided in the following Section 7.8 for termination for cause. The Agency reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days' written notice to Contractor. Upon receipt of any notice of termination, Contractor shall immediately cease all services hereunder except such as may be specifically approved by the Contract Officer. Contractor shall be entitled to compensation for all services rendered prior to receipt of the notice of termination and for any services authorized by the Contract Officer thereafter in accordance with the Schedule of Compensation (Exhibit "B") or such as may be approved by the Contract Officer, except as provided in Section 7.3. 7.8 Termination for Default of Contractor. If termination is due to the failure of the Contractor to fulfill its obligation under this Agreement, Agency may, after compliance with the provision of Section 7.2, take over the work and prosecute the same to completion by contract or otherwise, and the Contractor shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that the Agency shall use reasonable efforts to mitigate such damages), and Agency may withhold any payments to the Contractor for the purpose of setoff or partial payment of the amounts owned the Agency as previously stated in Section 7.3. 7.9 Attorneys' Fees. If either party commences an action against the other party arising out of or in connections with this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs of suit from the losing party. 8.0 AGENCY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION 8.1 Non -liability of Agency Officers and Employees. No officer or employee of the Agency shall be personally liable to the Contractor, or any successor in interest, in the event of any default or breach by the Agency of for any amount which may become due to the Contractor or to its successor, or for breach of any obligation of the terms of the Agreement. 8.2 Conflict of Interest. No officer or employee of the Agency shall have any personal interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which effects his personal interest or the interest of any corporation, partnership or association in which he is, directly or indirectly, interested, in violation of any State statute or regulation. The Contractor warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement. 8.3 Covenant Against Discrimination. Contractor covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin, disability or ancestry in the performance of the Agreement. Contractor shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, national origin, physical disability, mental disability, medical condition, age or ancestry. 9.0 MISCELLANEOUS PROVISIONS 9.1 Notice. Any notice, demand, request, consent, approval, communication either party desires or is required to give to the other parties or any other person shall be in writing and either served personally or sent by prepaid, first-class mail to the address set forth below. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated forty-eight (48) hours from the time of mailing if mailed as provided in this Section 9.1. To Agency: LA QUINTA REDEVELOPMENT AGENCY 78-495 Calle Tampico La Quinta, California 92253 Attention: 'Thomas P. Genovese Executive Director To Contractor: ECONOMICS RESEARCH ASSOCIATES Gene Krekorian Senior Vice President 10990 Wilshire Boulevard, Suite 1500 Los Angeles, California 90024 9.2 Integrated Agreement. This Agreement contains all of the agreements of the parties and all previous understandings, negotiations and agreements are integrated into and superseded by this Agreement. 9.3 Amendment. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing signed by all parties. 9.4 Severability. In the event that any or more of the phrases, sentences, clauses, paragraphs, or sections contained in the Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceable shall not effect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder. 9.5 Authority. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by so executing this Agreement the parties hereto are formally bound to the provisions of this Agreement. stated below. IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates LA QUINTA REDEVELOPMENT AGENCY, Dated: By: EXECUTIVE DIRECTOR "AGENCY" ATTEST: Agency Secretary APPROVED AS TO FORM: Agency Counsel Dated: ECONOMICS RESEARCH ASSOCIATES: Name: Title: "CONTRACTOR" A �� EXHIBIT A SCOPE OF SERVICES Econornics Research Associates Memorandum Date: February 2, 2006 To: Frank Spevacek From: G. Krekorian Re: La Quinta Market Environment Analysis — Economic Development Strategy — ERA No. 16469 Email: fspevacek a webrsq.com Attached is an outline of the La Quinta "Market Environment" analysis which presents a summary of the issues and topics to be addressed. In addition to a macro market area overview of the Coachella Valley in general and in La Quinta more specifically, four chapters are identified: (I) Highway I I I Corridor (2) The Village (3) SilverRock Resort (4) La Quinta Annexation TOPIC OUTLINE Market Area Overview • Demographics — Population and Age — Income — Household Characteristics — Other • Economic Environment — Labor Market • Tourism and Visitor Market • Residential Development Patterns • Land Availability and Cost 10990 Wilshire Boulevard, Suite 1500, Los Angeles, CA 90024 310.477,9585 FAX 310.478.1950 www.econres.com Los Angeles San Francisco San Diego Chicago Washington DC New York London Economics Research Associates La Quinta Market Environment Analysis ERA No. 16469 February 2, 2006 Page 2 • Retail Sales Patterns • Future Major Development Projects Highway 111 Corridor • Historical Development • Current Inventory by Land Use • Inventory by Service Category (convenience, neighborhood, sub - regional, regional) • Vacant/Under-Utilized Land • Land Value Structure • Trends and Market Conditions • Market Opportunities — Near -Term — Mid -Term The VillajZe • Historical Development and Overall Plan Review • Current Inventory by User Type • Current Performance Levels • Evaluation of Key Development Issues — Market Positioning — Anchor Tenants — Critical Mass — Parking — Seasonality — Land Values/Rental Rates — Tenant Mix • Live -Work Compatibility and Opportunity • Village Promotion and Marketing 0 Market Opportunities Ecconolmics Research Associates La Quinta Market Environment Analysis ERA No. 16469 February 2, 2006 Page 3 • Current Project Status • Current Market Environment (resort/golf) • Resort Accommodation Development Progress • Resort Facility Review (meeting space, resort retail, restaurant, amenities) • Second Golf Course Timing and Related Improvements • Market Opportunities Annexation • Review of Current Development Plan and Buildout Scenario • Issues to Review: — County RDAP — County Services District — Tribal Lands or Interests — Water Supply — Salton Sea Initiatives — General Aviation Airport • Area -Generated Commercial Facilities Demand • Regional Commercial Demand/Supply Balance • Major Sports/Recreation Development Opportunities (resort, other) • Visitor -Serving Development Opportunities • Regional Logistics Opportunities • Commercial Development Opportunities TIME AND FEE Assuming authorization by February 6, 2006, we would provide a draft of the various sections by March 3, 2006. EXHIBIT B SCHEDULE OF COMPENSATION Economics Research Associates La Quinta Market Environment Analysis ERA No. 16469 February 2, 2006 Page 4 The budget is estimated as follows: Market Overview Highway 111 Corridor The Village SilverRock Annexation Subtotal Meeting/Other Total Professional Fees $ 5,000 8,000 8,000 8,000 8,000 $37,000q 3,000 $40,000 COUNCIL/RDA MEETING DATE: February 21, 2006 ITEM TITLE: Consideration of Concept Development Plans for a 218-Unit Multi -Family Residential Project Located at the Northwest Corner of Dune Palms Road and Avenue 48. Applicant: Coachella Valley Housing Coalition RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Approve the conceptual site plans and building elevations and direct staff to negotiate a Disposition and Development Agreement with Coachella Valley Housing Coalition (CVHC). FISCAL IMPLICATIONS: None. BACKGROUND AND OVERVIEW: Staff is currently working with CVHC under the guidelines of the Exclusive Negotiating Agreement (ENA), to produce site plans for the development of the 218-unit multi- family residential project. Part of the ENA process is the preparation of site plans and building elevations for approval by the Agency Board. Once these conceptual plans have been approved, staff will begin negotiations for a Disposition and Development Agreement for the development of the Dune Palms multi -family project. Staff worked with CVHC and Interactive Design Group to produce site plans for presentation to the Rancho La Quinta Homeowners' Association and developers of the Watercolors senior project. Staff and the CVHC team met with the Rancho La Quinta HOA on two separate occasions. Subsequent to these meetings, staff and the CVHC team hosted a two hour public workshop for residents, local developers, and the press. As a result of these meetings, the design team took into consideration issues that were raised and made changes accordingly. Some of the issues that were addressed include: site grading, unit design, views, lighting, common property line wall, landscaping, and circulation. The project, as shown on the revised concept site plan, includes 218 units with the following project unit breakdown: Bedrooms Units Yo One 30 14 Two 60 27 Three 104 48 Four 24 1 1 218 Proposed unit sizes comply with the City's minimum unit size and are as follows: Unit Size One Bedroom @ 750 sf - 810 sf Two Bedroom @ 900 sf - 1037 sf Three Bedroom @ 1050 sf - 1 370 sf Four Bedroom @ 1350 sf - 1 550 sf The project site plan currently provides for 431 parking spaces or a ratio of 1.98 spaces per unit. During final design, staff recommends additional parking spaces be provided. Parking provided is consistent with existing CVHC projects, but is approximately 22 spaces lower than the original parking ratios discussed. Staff will continue to work with CVHC to refine the parking requirements for this project. CVHC is utilizing an integrated design approach to energy efficiency that will include a combination of solar water heating and photovoltaic panels. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency Board include: 1. Approve the conceptual site plans and building elevations for the multi -family affordable housing project and direct staff to negotiate a Disposition and Development Agreement with Coachella Valley Housing Coalition ; or 2. Do not approve the conceptual site plans and building elevations and do not direct staff to negotiate a Disposition and Development Agreement with Coachella Valley Housing Coalition; or 3. Provide staff with alternative direction. Respectfully submitted, Douglas Evans Community Development Director Approved for submission by, Thomas P. Genovese, Executive Director Attachment: 1 . Conceptual Site Plans COUNCIL/RDA MEETING DATE: February 21, 2006 ITEM TITLE: Consideration of Mid -Year Budget Report for Fiscal Year 2005/2006 RECOMMENDATION: P AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Approve an increase of $15,769,489 in estimated property tax increment revenue. Approve an increase of $1,471,400 in estimated investment interest revenue. Approve an increase of $7,824,584 in estimated proceeds from the sale of land. Approve an increase of $1,207,500 in estimated revenues from other sources. Approve an appropriation increase of $7,827,315 in pass through tax payments. Approve a decrease in the Educational Relief Augmentation Fund (ERAF) expense account of $96,343. Approve a decrease of $379,653 in interest expense. Approve an appropriation increase in the Housing Project account of $105,015. Receive and file the Mid -Year Budget Report. FISCAL IMPLICATIONS: During the annual budget process, staff estimates revenues and expenditures for the Redevelopment Agency (RDA) and at mid -year reassesses those estimates, which are through December 31'. As a result of staff's review, we are recommending the following budget changes to the RDA Fiscal Year 05/06 budget: Estimated Tax Increment Revenues Property taxes are adjusted to the tax roll information prepared by the County Auditor's office, which was received in early January. As a result of the tax roll information, the property tax revenues for Project Area 1 and 2 are adjusted. For Fiscal Year 05/06 the total tax increment revenues for Project Area 1 and 2 will increase by $14,962,670 over last year to a total of $66.4 million. For Project Area 1, property tax increments increased by 26.49% and for Project Area 2, property tax increments increased by 34.15%. The increases are somewhat higher than expected because of a one time payment by the County of Riverside of $3.5 million from the Teeter Fund. Based upon the forecasted revenues, an increase of $15,769,489 in estimated property tax increment revenue is projected. Estimated Interest Income Revenues RDA Project Area 1 & 2 Capital Improvement Project Funds are projected to generate an increase of $637,500 and $42,900 in interest income, respectively, based upon cash balances in pooled cash and the fiscal agent. RDA Project Area 1 & 2 Debt Service Funds are projected to generate an increase of $206,900 and $275,000 in interest income, respectively, based upon cash balances in pooled cash. RDA Project Area 1 Low & Moderate Income Fund is projected to generate an increase of $309,100 in interest income based upon cash balances in pooled cash. Proceeds from Sale of Property Project Area 2 Capital Improvement Project Fund received $7,824,584 from the sale of the property in the general vicinity of Hwy 1 1 1 and Dune Palms. Proceeds from 2"d Trust Deed Repayments Project Area 1 & 2 Low & Moderate Income Housing Funds have been receiving funds from the sale of Agency -assisted homes. The Agency will receive 2nd Trust Deed repayments of $1,000,000 from PA 1 and $112,500 from PA 2. 4 Proceeds from Sewer Subsidy and Rehab Loan repayments Project Area 1 Low & Moderate Income Fund will receive an estimated $50,000 from the sale of Agency -assisted homes that received past sewer subsidies and $30,000 from the sale of homes that received rehab loans. Vista Dunes Mobile Home Park Rent Project Area 2 Low & Moderate Income Fund will receive an estimated $15,000 from the Vista Dunes Mobile Home Park residents. At this point in time all residents have left the park and no more rent is being collected. Additional Pass Through Appropriations Requested As a result of the increased tax increment, the Agency is required to pass through, or pay to other taxing entities that operate in the Project Area, tax increment funds based upon negotiated or statutory agreements. Since the tax increment will increase, these pass through amounts will increase by $7,827,315 to a total of $32.6 million. Reduction in ERAF Shift Appropriation During the Fiscal Year 05/06 budget process, the ERAF shift was budgeted at $3,000,000. This mechanism was used by the State in the early 1990 's and again in Fiscal Years 02/03, 03/04, and 04/05 to mandate Redevelopment Agencies state- wide to transfer funding from the RDAs to the State to balance the State budget. The Fiscal Year 05/06 State budget mandates that $250 million be transferred State- wide from all RDAs to the State, of which the La Quinta RDA portion is $2,903,657 for Fiscal Year 05/06. The ERAF shift is calculated by the State Department of Finance based upon the financial activities of the RDA two years ago. The formula is to allocate $125 million (or half) of the $250 million, based upon the La Quinta RDA Tax Increment, to the State-wide totals and the other $125 million based upon the amount collected net of pass throughs. The ERAF shift is required to be paid to the County Auditor by May 10th or it will be withheld by the County Auditor in the 2nd County tax distribution at the end of May. From Fiscal Year 02/03 through Fiscal Year 05/06, $7,875,898 has been sent to the State via the ERAF shift that would otherwise have gone for eligible capital projects within the City of La Quinta. 3 Reduction in Interest Expense Payments on General Fund Loans Staff is proposing restructuring the outstanding loans as of April 1, 2006 to result in a new loan amount of $22 million. This restructuring will result in the General Fund adding $12.1 million to unreserved fund balance which would have previously been reserved and unavailable. For FY 2006/07 and thereafter, the interest generated from the $22 million loans, which are at an interest rate of between 7% - 10%, will result in the General Fund receiving $2,020,000 annually. The reduction in principal in FY 05/06 will also result in a future reduction of interest earnings to the General Fund. For FY 05/06, this restructuring will result in a slight increase of $8,601 in PA 1 Debt Service Fund interest expense and a $388,254 decrease in the PA 2 Debt Service Fund interest expense. Staff will bring this restructuring to the City Council/RDA Board in March for consideration. Additional Housing Project Appropriations Requested The Agency is required to pay into the Quimby Account for fees on the Miraflores Project which total $105,015. BACKGROUND AND OVERVIEW: A comprehensive report is prepared annually at mid -year to inform the Agency Board, for their consideration, of any changes in the financial position of the Agency. The Mid -Year Budget Report involves a financial assessment of Agency operations. This report provides information on the RDA revenues, operations, capital projects and requests for budget transfers and/or new appropriations. The majority of the tax increment revenue for the RDA is received from the County in January and May; therefore, actual tax increment revenues have not been received to date. The earned tax increment equals the 50% benchmark. Provided as part of Attachment 1 is the revenue and expenditure detail for the RDA. The budget amounts have been adjusted to reflect the latest data from the County Auditor/Controller's office. The following table reflects the mid -year tax increment requested additions and reports that and an increase of $14,962,670 in tax increment from prior year actual collections. 2 REDEVELOPMENT AGENCY TAX INCREMENT REVENUE SUMMARY (1) (2) (2)/(1)=(3) (4)/12.6 (4) (4)-(1) (5) (4)/(5)- 100% (4)-(5) 05/06 Est Year End 04/05 - — 12/31/05 12/31/05 Year End Varianc e Year End Percent Change Description Budget YTD Actual % Earned Estimate over (under) Actual Change $ PA #1 Debt Service $34,270,41 6 $3,104,197 9.06% $17,135,208 $34,270,416 $0 $27,093,693 26.49% $7,176,723 Low/Moderate Tax Increment 8,567,604 776,049 9.06% 4,283,802 8,567,604 0 6,773,423 26.49% 1,794,181 Total Tax Increment 42,838,020 3,880,247 9.06% 21,419,010 42,838,020 0 33,867,116 26.49% 8,970,904 PA #2 Debt Service 18,830,375 2,015,989 10.71% 9,415,188 18,830,375 0 14,036,962 34.15% 4,793,413 Low/Moderate Tax Increment 4,707,594 503,997 10.71% 2,353,797 4,707,594 0 3,509,241 34.15% 1,198,353 Total Tax Increment 23,537,969 2,519,986 10.71% 11,768,985 23,537,969 0 17,546,203 34.15% 5,991,766 Totals $66,375,98 9 $6,400,232 9.64% $33,187,995 $66,375,989 $0 $51,413,319 29.10% $14,962,670 Project Area No. 1 estimated revenues exceed prior year collected revenues by $8,970,904 and by $5,991,766 for Project Area No. 2. Staff is proposing additional revenues and appropriation changes in Redevelopment Project Area Nos. 1 & 2 (Attachment 2) based upon the following: Updated tax increment estimates; • Updated investment earnings forecasts; Pass through payments affected by updated tax increment estimates; Interest expense and housing project cost estimates; • Updated Educational Relief Augmentation Fund (ERAF) shift estimates; and • Updated revenue collections from 2nd trust deed, sewer subsidy, rehab loan and Vista Dunes Mobile Home rental income accounts; The proposed additional revenues and appropriations are as follows: Mid -Year Budget Revenues and Appropriations by Fund REDEVELOPMENT AGENCY TAX ADDITIONAL REVENUE AND APPROPRIATIONS Revenues Expenditures Expenditure s Expenditures Pass Through ERAF Fund Agreements Shift Subtotal Net Project Area 1 Debt Service $938,515 $380,567 ($219,272) $161,295 $777,220 RDA 1 Capital Improvement Project 900,000 (1,200,000) (1,200,000) 2,100,000 RDA 1 Capital Improvement Project - Taxable 50,000 0 50,000 Low and Moderate Income 234,679 0 234,679 2,123,194 (819,433) (219,272) (1,038,705) 3,161,899 Project Area 2 Debt Service 922,373 788,592 0 788,592 133,781 RDA 2 Capital Improvement Project 50,000 0 50,000 2004 Housing Bond 1,000,000 0 1,000,000 Low and Moderate Income 230,543 0 230,543 2,202,916 788,592 0 788,592 1,414,324 Total $4,326,110 ($30,841) ($219,272) ($250,113) $4,576,223 These proposed adjustments will result in an estimated increase in net revenues over appropriations of $8,248,589 in Project Area No. 1 and $10,816,639 in Project Area No. 2. A detailed list of the Fiscal Year budget appropriation requests can be found in Attachment 3. FINDINGS AND ALTERNATIVES: The alternatives available to the Redevelopment Agency Board include: 1. Approve an increase of $15,769,489 in estimated property tax increment revenue; and Approve an increase of $1,471,400 in estimated investment interest revenue; and Approve an increase of $7,824,584 in estimated proceeds from the sale of land; and Approve an increase of $1,207,500 in estimated revenues from other sources. 0 Approve an increase of $1,207,500 in estimated revenues from other sources. 2. 3. Approve an appropriation increase of $7,827,315 in pass through tax payments; and Approve a decrease in the Educational Relief Augmentation Fund (ERAF) expense account of $96,343; and Approve a decrease of $379,653 in interest expense; and Approve an appropriation increase in the Housing Project account of $105,015; and Receive and file the Mid -Year Budget Report. Do not approve the above changes; or Provide staff with alternative direction. Respectfully submitted, John M. Falconer, Finance Director Approved for submission by: f.. Thomas P. Genovese, Executive Director Attachment 1. RDA Revenue and Expenditures through December 31, 2005 2. Mid -Year review budget worksheet 3. Mid -Year review appropriation budget detail 7 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 LOW/MOD BOND LOW/MODERATE TAX FUND: Tax Increment Tax Increment Allocated Interest Allocated Interest Non Allocated Interest Miscellaneous revenue Non Allocated Interest LQRP-Rent Revenue Home Sales Proceeds Sale of Land Sewer Subsidy Reimbursements Sewer Subsidy Reimbursements Rehabilitation Loan Repayments Rehabilitation Loan Repayments 2nd Trust Deed Repayment 2nd Trust Deed Repayment Transfer in TOTAL LOW/MOD TAX DEBT SERVICE FUND: Tax Increment Tax Increment Allocated Interest 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 Pooled Cash Allocated Interest Non Allocated Interest Non Allocated Interest Litigation Settlement Revenue Loan 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 6,675,400.00 776,049.31 5,899,350.69 1,892,204.00 0.00 1,892,204.00 50,900.00 79,798.74 (28,898.74) 309,100.00 0.00 309,100.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 276,000.00 116,392.50 159,607.50 480,000.00 510,841.15 (30,841.15) 0.00 0.00 0.00 0.00 50,304.05 (50,304.05) 50,000.00 0.00 50,000.00 0.00 30,706.63 (30,706.63) 30,000.00 0.00 30,000.00 0.00 928,183.07 (928,183.07) 1,000,000.00 0.00 1,000,000.00 0.00 0.00 0.00 10,763,604.00 2,492,275.45 8,271,328.55 26,701,600.00 3,104,197.23 23,597,402.77 7,568,816.00 0.00 7,568,816.00 93,100.00 155, 896.56 (62,796.56) 206,900.00 0.00 206,900.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3,945,802.00 1,982, 532.01 1,963,269.99 38,516,218.00 5,242,625.80 33,273,592.20 12,500.00 75,824.60 (63,324.60) 137,500.00 0.00 137,500.00 500,000.00 421,244.93 78,755,07 500,000.00 0.00 500,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 909,510.00 273,000.00 636,510.00 2,059,510.00 770,069.53 1,289,440.47 CAPITAL IMPROVEMENT FUND - TAXABLE Pooled Cash Allocated Interest 0.00 0.00 0.00 Non Allocated Interest 0.00 0.00 0.00 Litigation Settlement Revenue 0.00 0.00 0.00 Bond proceeds 0.00 0.00 0.00 Rental Income 0.00 0.00 0.00 Transfers In 0.00 0.00 0.00 TOTAL CAPITAL IMPROVEMENT 0.00 0.00 0.00 n. LA QUINTA REDEVELOPMENT AGENCY EXPENDITURE SUMMARY PROJECT AREA NO. 1: LOW/MODERATE BOND FUND PERSONNEL SERVICES REIMBURSEMENT TO GEN FUND HOUSING PROJECTS TRANSFERS OUT TOTAL LOW/MOD BOND 07/01/2005-12/31/05 REMAINING BUDGET EXPENDITURES ENCUMBERED BUDGET 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 LOW/MODERATE TAX FUND: PERSONNEL 41900.00 3,464.40 0.00 1,435.60 SERVICES 265,405.00 56,331.21 0,00 209,073.79 BUILDING HORIZONS 125,000.00 75,000.00 0.00 50,000.00 LQ RENTAL PROGRAM 332,000.00 118,712.16 0.00 213,287.84 LQ HOUSING PROGRAM 320,000.00 0.00 0.00 320,000.00 LOWMOD VILLAGE APARTMENTS 400,000.00 400,000.00 0.00 0.00 2nd TRUST DEED PROGRAM 3,298,340.00 40,000,00 0.00 3,258,340.00 LQRP - REHABILITATION 0.00 0.00 0.00 0.00 APT REHABILITATION 136,000.00 0.00 0.00 136,000.00 FORECLOSURE 150,000.00 0.00 0.00 150,000.00 REIMBURSEMENT TO GEN FUND 679,574.00 339,787.02 0.00 339,786.98 TRANSFERS OUT 3,945,802.00 1,982,532.01 0.00 1,963,269.99 TOTAL LOW/MOD TAX 9,657,021.00 3,015,826.80 0.00 6,641,194.20 DEBT SERVICE FUND: SERVICES 537,800.00 10,770.00 0.00 527,030.00 BOND PRINCIPAL 2,500,000.00 2,500,000.00 0.00 0.00 BOND INTEREST 7,805,905.00 3,938,313.13 0.00 3,867,591.87 INTEREST CITY ADVANCE 1,124,738.00 578,232.95 0.00 546,505.05 INTEREST CITY ADVANCE 8,601.00 0.00 0.00 8,601.00 PASS THROUGH PAYMENTS 13,076,663.00 2,007,204.25 0.00 11,069,458.75 PASS THROUGH PAYMENTS 3,533,673.00 0.00 0.00 3,533,673.00 ERAF SHIFT 3,000,000.00 0.00 0,00 3,000,000.00 ERAF SHIFT (96,343.00) 0.00 0.00 (96,343.00) TRANSFERS OUT 4,374,737.00 2,255,532.01 0.00 2,119,204.99 TOTAL DEBT SERVICE 35,865,774.00 11,290,052.34 0.00 24,575,721.66 CAPITAL IMPROVEMENT FUND: PERSONNEL 4,900.00 3,464.40 0.00 1,435.60 SERVICES 307,362.00 91,281.09 0.00 216,080.91 LAND ACQUISITION 0.00 0.00 0.00 ASSESSMENT DISTRICT 0.00 0.00 0.00 0.00 ADVERTISING -ECONOMIC DEV 0.00 0.00 0.00 0.00 ECONOMIC DEVELOPMENT 55,000.00 0.00 0.00 55,000.00 BOND ISSUANCE COSTS 0.00 0.00 0.00 0.00 CAPITAL - BUILDING 0.00 0.00 0.00 0.00 REIMBURSEMENT TO GEN FUND 319,515.00 159.757.49 0.00 159,757.51 TRANSFERS OUT 23,453,157.00 3,644,560.57 0,00 19,808,596.43 TOTAL CAPITAL IMPROVEMENT 24,139,934.00 3,899,063.55 0.00 20,240,870.45 CAPITAL IMPROVEMENT FUND/TAXABLE BOND BOND ISSUANCE COSTS 0.00 0.00 0.00 0.00 TRANSFERS OUT (4,594.00) 0.00 0.00 (4,594.00) TOTAL CAPITAL IMPROVEMENT (4,594.00) 0.00 0.00 (4,594.00) NJ 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 Tax Increment Allocated Interest Non Allocated Interest Developer funding Vista Dunes MHP Rental Rev Vista Dunes MHP Rental Rev 2nd Trust Deed Repayment 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 Tax Increment Allocated Interest Allocated Interest Non Allocated Interest Interest Advance Proceeds Transfer In TOTAL DEBT SERVICE CAPITAL IMPROVEMENT FUND: Allocated Interest Allocated Interest Non Allocated Interest Developer Agreement 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 3,445,900.00 503,997.13 2,941,902.87 1,261,694.00 0.00 1,261,694.00 275,300.00 90,742.10 184,557.90 0.00 0.00 0.00 0.00 0.00 0.00 0.00 14,671.03 (14,671.03) 15,000.00 0.00 15,000.00 0.00 112,097,40 (112,097.40) 112,500.00 0.00 112,500.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5,110,394.00 721,507.66 4,388,886.34 0.00 0.00 0.00 0.00 0.00 0.00 1,418,400.00 647,776.46 770,623.54 0.00 0.00 0.00 1,418,400.00 647,776.46 770,623.54 13,783,600.00 2,015,988.54 11,767,611.46 5,046,775.00 0.00 5,046,775.00 0.00 130,130.72 (130,130.72) 275,000.00 0.00 275,000.00 0.00 0.00 0.00 0.00 0.00 0.00 7,998,654.00 7,268,370,99 730,283.01 27,104,029.00 9,414,490.25 17,689,538.75 37,100.00 40,023.48 (2,923.48) 42,900.00 0.00 42,900.00 0.00 0.00 0.00 0.00 7,824,583.57 (7,824,583.57) 7,824,584.00 0.00 7,824,584.00 0.00 0.00 0.00 7,904,584.00 7,864,607.05 39,9/6.95 10 LA QUINTA REDEVELOPMENT AGENCY EXPENDITURE SUMMARY PROJECT AREA NO. 2: 07/01/2005-12131/05 REMAINING BUDGET EXPENDITURES ENCUMBERED BUDGET LOW/MODERATE BOND FUND 0.00 0.00 0.00 0.00 2nd TRUST DEEDS 0.00 0.00 0.00 0.00 LAND BOND ISSUANCE COSTS 0.00 0.00 0.00 0.00 TRANSFERS OUT 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 TOTAL LOW/MOD BOND LOW/MODERATE TAX FUND: 2,900.00 2,096.49 0.00 803.51 PERSONNEL SERVICES 280,628.00 107,178.55 0.00 173,449.45 2ND TRUST DEEDS 852,693.00 0.00 0.00 852,693.00 2ND TRUST DEEDS FROM CENTERPOINTE 2,520,000.00 0.00 0.00 000 ,422,493.00 48TH AND ADAMS - FROM CENTERPOINTE 1,423,203.00 710.00 0.00 1 ,2,93.00 WASH/MILES PROJECT 0.00 147,307.00 0.00 90,425.94 0.00 0.00 0.00 56,881.06 VISTA DUNES MOBILE HOME PARK 105,015.00 0.00 0.00 105,015.00 LOW MOD HOUSING PROJECT 776,239.00 0.00 0.00 776,239.00 47TH/ADAMS PROJECT FORECLOSURE ACQUISITION 150,000.00 0.00 0.00 150,000.00 REIMBURSEMENT TO GEN FUND 350,708.00 175,353.97 0.00 175,354.03 TRANSFERS OUT 1,706,754.00 976,470.99 0.00 730,283.01 6,963,211.06 TOTAL LOW/MOD TAX 8,315,447.00 1,352,235.94 0.00 2004 LOW/MODERATE BOND FUND 51,021,866.00 48.00 0.00 51,021,818.00 HOUSING PROGRAMS 3,000,000.00 0.00 0.00 3,000,000.00 LAND TRANSFERS OUT 3,361,986.00 734,308.15 0.00 2,627,677.85 TOTAL LOW/MOD BOND 57,383,852.00 734,356.15 0.00 56,649,495.85 DEBT SERVICE FUND: 195,970.00 750.00 0.00 195,220.00 SERVICES A PRINCIPAL BOND PRININTECIPAL 200,000.00 100,000.00 0.00 100,000.00 BOND 319,168.00 160,646.25 0.00 158,521.75 INTEREST CITY ADVANCE 1,593,358.00 665,369.68 0.00 0.00 927,988.32 (388,254.00) INTEREST CITY ADVANCE (388,254.00) 11,726,665.00 0.00 818,549,69 0.00 10,908,115.31 PASS THROUGH PAYMENTS 4,293,642.00 0.00 0.00 4,293,642.00 PASS THROUGH PAYMENTS 1,706,754.00 976,470.99 0.00 730,283.01 TRANSFERS OUT TOTAL DEBT SERVICE 19.647,303.00 2,721,786.61 0.00 16,925,516.39 CAPITAL IMPROVEMENT FUND: 2,900.00 2,095.46 0.00 804.54 PERSONNEL SERVICES 195,162.00 21,829.32 0.00 173,332.68 ADVERTISING -ECONOMIC DEV 0.00 0.00 0.00 0.00 0.00 ECONOMIC DEVELOPMENT ACTIVITY .00 23,903.00 0. 11,951.52 0.00 0.00 11,951.48 REIMBURSEMENT TO GEN FUND 6,776,933.00 6,479,143.45 0.00 297,789.55 TRANSFERS OUT TOTAL CAPITAL IMPROVEMENT 6,998,898.00 6,515,019.75 0.00 483,878. 55 11 ATTACHMENT 2 La Quinta Redevelopment Agency Mid -Year Review Budget Worksheet Estimated Revenues Summary by Fund: Tax Increment Interest Other Total RDA PA 1 Debt Service Fund $ 7,568,816 $ 206,900 $ 7,775,716 RDA PA 2 Debt Service Fund 5,046,775 275,000 5,321,775 RDA PA 1 Low Mod Fund 1,892,204 309,100 1,080,000 3,281,304 RDA PA 2 Low Mod Fund 1,261,694 127,500 1,389,194 RDA 2004 Housing Bond Fund - RDA PA 1 Capital Improvement Project 637,500 637,500 RDA PA 2 Capital Improvement Pr!�ect 42,900 7,824,584 7,867,484 Total $ 15,769,489 $ 1,471,400 1 $ 9,032,084 1 $ 26,272,973 Appropriations Summary by Fund: Pass Throu h ERAF Housing Interest Total RDA PA 1 Debt Service Fund $ 3,533,673 $ (96,343) $ 8,601 $ 3,445,931 RDA PA 2 Debt Service Fund 4,293,642 (388,254) 3,905,388 RDA PA 1 Low Mod Fund - RDA PA 2 Low Mod Fund 105,015 105,015 RDA 2004 Housing Bond Fund - RDA PA 1 Capital Improvement Project - RDA PA 1 Capital Improvement Project - Taxable - RDA PA 2 Capital Improvement Project - - Total 1 $ 7,827,315 1 $ (96,343) $ 105,015 $ (379,653) $ 7,456,334 Change by Fund Summary by Fund: Revenues Appropriations Net RDA PA 1 Debt Service Fund $ 7,775,716 $ 3,445,931 $ 4,329,785 RDA PA 2 Debt Service Fund 5,321,775 3,905,388 1,416,387 RDA PA 1 Low Mod Fund 3,281,304 - 3,281,304 RDA PA 2 Low Mod Fund 1,389,194 105,015 1,284,179 RDA PA 1 Capital Improvement Project 637,500 - 637,500 RDA PA 2 Capital Improvement Project 7,867,484 - 7,867,484 Total $ 26,272,973 $ 7,456,334 1 $ 18,816,639 Summary by Project Area: Revenues Appropriations Net PA 1 11,694,520 3,445,931 8,248,589 PA 2 14,578,453 4,010,403 10,568,050 Total $ 26,272,973 $ 7,456,334 $ 18,816,639 ERAF Shift Amount FY 02/03 $ 723,518 FY 03/04 1,467,995 FY 04/05 2,780,728 FY 05/06 2,903,657 Total 7,875,898 12 ATTACHMENT 3 7 7 C � C Q)L- N o m MO rn (n O O L U a) N 41 UI N C y U N U� N N N N C m m a) a) a) J U _ N a) Q) al a) m a) 7 U O� J 7 7 J O C J J J 7 7 7 7 0 C (0 C C C C U m O C C C C C C C U m C a) a) Q) a) m m > > > > > > > > > > > > E T�D a L m V T >• T T •" N >, T >• >• T T T T •"" N a m n 2 2 _N w to N E C M O O O O «� O' 0 0 0 0 o o o -- m O E N N N N y C E V1 N UI N N N N m C ammmda�vE aEEEEEEE�°E L m m m m a) a) m m m m m m m a) N" a a a a o> a a a a a a a o> L L L L O 'C a) L L L L L L L Oa .0 d c rnD)rnrn rna mrn�rnrn E 7 7 7 J n E J J 7 7 7 7 7 a C C O o 0 0 _E C_ O O O O O O O E J C LL H F- F- m L L L L L L L N O mN f- N N F- m U F- F- F- V1 a) LL N N N V) a) 7 N IA y N N N m N U a' m m m N V O �a1 m m m m m m m U a) S w a a a a a a a a a a a a 5 M M 0) O (D O (D `7 (D 0 N r CO 00 O r O V O CO r (0 C) CO )0 M 00 C) .- r C) N r 0 00 N (DC) r- N LO r W O r N N (O N V U'l (O r O M (O N (D (D co O 00 00 (D 0) UO M O co N N M M (O (D (D O V N (O O N w N M O r M C M V r U C N (O N M M R O N O N V N 7 M r V N •-- Ln O O E NQ U C )D O0 )O M V O O )0 (O 00 V r O M (O O O N N N N (O (D O O N (n L? 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