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2006 03 07 RDARedevelopment 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, March 7, 2006 — 2:00 P.M. Beginning Resolution No. RA 2006-003 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. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR, THOMAS P. GENOVESE, PURSUANT TO GOVERNMENT CODE SECTION 54956.8 CONCERNING POTENTIAL TERMS AND CONDITIONS OF ACQUISITION AND/OR DISPOSITION OF REAL PROPERTY LOCATED AT THE SOUTHEAST CORNER OF MILES AVENUE AND WASHINGTON STREET. PROPERTY OWNER/NEGOTIATOR: CP DEVELOPMENT LA QUINTA, LLC. Redevelopment Agency Agenda 1 March 7, 2006 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 IDENTIFIED AS: APN 609-040-005, -007, AND -023. PROPERTY OWNERS/NEGOTIATORS: MIKE SOLLENBERGER AND THE TESTA FAMILY PARTNERSHIP. 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 21, 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 MARCH 7, 2006. 2. APPROVAL OF RESTRUCTURING ADVANCES BETWEEN THE CITY OF LA QUINTA AND THE LA QUINTA REDEVELOPMENT AGENCY. 3. APPROVAL OF AN AMENDMENT TO THE EXCLUSIVE NEGOTIATION AGREEMENT BY AND BETWEEN THE LA QUINTA REDEVELOPMENT AGENCY AND COACHELLA VALLEY HOUSING COALITION (CVHC) FOR THE DEVELOPMENT OF AN AFFORDABLE HOUSING PROJECT LOCATED AT THE NORTHWEST CORNER OF DUNE PALMS ROAD AND AVENUE 48. Redevelopment Agency Agenda 2 March 7, 2006 BUSINESS SESSION - NONE STUDY SESSION — NONE CHAIR AND BOARD MEMBERS' ITEMS — NONE PUBLIC HEARINGS — NONE ADJOURNMENT Adjourn to a regularly scheduled meeting of the Redevelopment Agency to be held on March 21, 2006, commencing with closed session at 2:00 p.m. and open session at 3:00 p.m. in the City Council Chambers, 78-495 Calle Tampico, La Quinta, CA 92253. 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 March 7, 2006, was posted on the outside entry to the Council Chamber at 78-495 Calle Tampico and on the bulletin boards at 51-321 Avenida Bermudas and 78-630 Highway 1 1 1, on March 3, 2006. DATED: March 3, 2006 DEBORAH POWELL, Acting City Clerk City of La Quinta, California Redevelopment Agency Agenda 3 March 7, 2006 COUNCIL/RDA MEETING DATE: March U"/, 1UU6 ITEM TITLE: Demand Register Dated March 07, 2006 RECOMMENDATION: It is recommended the Redevelopment Agency Board: AGENDA CATEGORY: CONSENT CALENDAR STUDY SESSION PUBLIC HEARING Receive and File the Demand Register Dated March 07, 2006 of which $6,482,482.80 represents Redevelopment Agency Expenditures. PLEASE SEE CONSENT CALENDAR ITEM NUMBER I ON CITY COUNCIL AGENDA .11 QJ w V AGENDA CATEGORY: OF Teti COUNCIL/RDA MEETING DATE: March 7, 2006 BUSINESS SESSION: CONSENT CALENDAR: ITEM TITLE: Approval between the City of La Redevelopment Agency RECOMMENDATION: of Restructuring Advances Quinta and the La Quinta STUDY SESSION: PUBLIC HEARING: Approve the restructuring of advances between the City of La Quinta and the La Quinta Redevelopment Agency (RDA) Project Areas 1 and 2 as outlined in Attachments 1 and 2. FISCAL IMPLICATIONS: Staff has conducted a financial analysis of the outstanding advances between the City and the RDA and believes that the restructuring will result in a greater likelihood of repayment of both principal and interest. The restructuring would result in the payment, on April 1, 2006, to the City of a total of $5,691,347, consisting of $2,982,763 from Project Area 1, and $2,708,584 from Project Area 2. In addition, the City would receive $2,020,000 annually in interest on the outstanding advance balances. With the reduction of principal, the amount of future interest earnings on these advances in future years is reduced. Repayment of the outstanding RDA 1 advances of $12,000,000 would begin FY 2030/2031 through FY 2033/2034 with the City receiving $3,000,000 annually for the four fiscal years. The repayment date may have to be adjusted if the Agency reaches its maximum tax increment limit of $2,000,000,000 prior to these scheduled repayments. Repayment of the outstanding RDA 2 advances of $10,000,000 would begin FY 2035/2036 through FY 2038/2039 with the City receiving $2,500,000 annually for the four fiscal years. The repayment date may have to be adjusted if the Agency reaches its maximum tax increment limit of $1,500,000,000 prior to these scheduled repayments. BACKGROUND AND OVERVIEW: Beginning in FY 90/91, the City has from time to time advanced funds to the RDA to construct projects in the RDA project areas. The interest on these advances has been either 7% or 10% with no specific repayment date during the life of the redevelopment plan. The restructuring would either repay the principal and/or interest on the advances, or convert outstanding interest into principal and result in $2,020,000 in interest being paid by the RDA to the City. After the restructuring, RDA Project Area 1 would have a $6,000,000 advance at 10% and a $6,000,000 advance at 7% while RDA Project Area 2 would have a $10,000,000 advance at 10%. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Approve the restructuring of advances between the City of La Quinta and the La Quinta Redevelopment Agency (RDA) Project Areas 1 and 2 as outlined in Attachments 1 and 2; or 2. Do not approve the restructuring of advances between the City of La Quinta and the La Quinta Redevelopment Agency (RDA) Project Areas 1 and 2 as outlined in Attachments 1 and 2; or 3. Provide staff with alternative direction. Respectfully submitted, John M. Falconer, Finance Director Approved for submission by: Thomas P. Genovese, Executive Director Attachments: 1. Proposed Restructuring of RDA Project Area 1 Advances 2. Proposed Restructuring of RDA Project Area 2 Advances 2 Proposed Restructuring of RDA Project Area 1 Advances from General Fund ATTACHMENT 1 Principal FY 05/06 Net Beginning Additions Deletions Ending Change RDA 1 - 10% 3,289,036 2,710,964 6,000,000 2,710,964 RDA 1 - 7% 2003 6,000,000 6,000,000 0 RDA 1 - 7% 2005 442,928 (442,928) 0 (442,928) RDA 1 - 7% 2006 273,000 (273,000) 0 (273,000) 9,731,964 2,983,964 (715,928) 12,000,000 1,995,036 Interest FY 05/06 Net Beginning Additions Deletions Ending Change RDA 1 - 10% 3,242,933 639,898 (3,882,831) 0 (3,882,831) RDA 1 - 7% 2003 749,859 451,896 (1,201,755) 0 (1,201,755) RDA 1 - 7% 2005 2,584 23,389 (25,973) 0 (25,973) RDA 1 - 7% 2006 0 9,555 (9,555) 0 (9,555) 3,995,376 1,124, 738 (5,120,114) 0 (5,120,114) Total 13,727,340 4,108,702 (5,836,042) 12,000,000 (3,125,078) Principal Annual Interest RDA 1 - 10% 6,000,000 600,000 RDA 1 - 7% 2003 6,000,000 420,000 12,000,000 1,020,000 This action would result in the repayment of $2,982,763 as follows: RDA 1 - 10% RDA 1 - 7% 2003 RDA 1 - 7% 2005 RDA 1 - 7% 2006 1,171,867 1,059,440 468,901 282,555 2,982,763 The RDA 1-7% 2003 loan was previously repaid the LAIF rate in accordance with the advance agreement earlier in FY 05/06 RDA 1 - 7% 2003 142,315 3 a d' � N 0000000000000000000000000000 LO (0(0T- 0000000000000000000000000000 �- O OO N 0000000000000000000000000000 � 00 CM 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Ln O Ln O M O LO N N N N N N N N N N N N N N N N N N N N N N N N N (D LO O 1- OD O O O O O O O O O O O O O O O O O O O O O O O O O O 1` U) N LO 11' M M Cl) N Iq d 00 0 0 0 0 0000 O cu a�0)� O O.j�j 0000 M M r. 0 0 0 O a L ti o) l` 0000 a O N M (6 M c'7 ' q O O O O O O O O O O O O O O O O O O O O O O O O O O O O Ln +. cM00 OOOOOOOOOOOOOOOOOOOOOOOOOOOO cn 0004 0000000000000000000000000000 L N r- 0 0 0 0 0 0 0 0 0 0 0 0 0 C 0 0 0 0 0 0 0 0 0 0 0 1.C) O L O Q o) OD M N N N N N N N N N N N N N N N N N N N N N N N N N (D LO LO C 00N 000000000000000000a000000r-U') (Yj �- c- c- .-- T- T--7 V- V-: T-- T-: T-- T- V-: T- I-- V- c- � .-: V-: c- (N O O N O O O O O O O O O O O O O O O O O O O O O O O O O O O O N O •- O O O O O O O O O O O O O O O O O O O O O O O O O O O O V' O0 O O N 0000000000000000000000000000 N (V (M cM O O O O o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Ln O L() 1l + IT 1` Ln N N N N N N N N N N N N N N N N N N N N N N N N N •- � O OITNO) �I 1d IT IT IT IT IgIT'IT IqITVIT 'IT IT V ITITI7IT�d'IT0)001-(D (D M F- � �- .- N co O O O O N O N O O O O ' o Q 0 0 0 0 0 0 0 f�Q UNMU- dddd C � f� - 0000 LO a L � N r� LO to LO a IT 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 14 +. 00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 00 N 00000_000_000_000000_00000000_000 Na) �- L 1� OOOOOOOOOOOOOO_OOOOOOOOOOO L6&L6 Q N N N N N N N"" r- ` O 1� (D O M N" N (V N N (N N N (V N N N N N N a. — N ITd'VIq�Td'IqVdITI�TI'IT1i'd''T1''T qV''T''d''TtTMNc- M — .-- N O 1- M (D O O O O O O O O O O O O O O O O O O O O O O O O O O O O O 00 O O O O O O O O O O O O O O O O O O O O O O O O O O O O 0) T- O O O O O O O O O O O O O O O O O O O O O O O O O O O O �001- 00000000000000000a0000000U')0LO ONV- (D 0 co (D w w 0 0 m 0 w 0 0 (D (D (D (D (D (D (D (D (D (D (D -000(D co o0 N 00 1` MO O O O O O O O 0 0 0 0000 �� 5 w O 0 0 0 0 O Q C N ti LSD Ln LO lf) �acMN O O O O O O O O O O O O O O O O O O O O O O O O O O O O �- M 0000000000000000000000000000 ('0 00 0000000000000000000000000000 00 CO) N 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N e-- 00 O O O O O O O O O O O O O O O O O O O O O O O O O <n O LO < (D (D (D (D (D (D (.0(0 (D (D (.0 CD CD d' M 00 IL N 00 0 (D CD 0 (D 0 (D (D 0 0 M (D C M O (D (D 00 Ul) LO o0 LL LL C: c C'0 0 0O NMIT001-000O•-NMd'LO01l-00OOr-NMIT p) O O O �- r- �- r �- N N N N N N N N N N M M M M M N-6 O 0 1` W O O N MT LO 0 1` 00 O O N MT LO 0 1` 00 O O N M m Q 0 O O O O V- N N N N N N N N N N M M M M E RDA 1 -10% Cumulative Cumulative FY Beginning Balance Principal Interest Ending Balance Principal Interest Total 0 0 0 0 83/84 0 p 0 0 84/85 0 0 0 0 0 85/86 0 0 0 0 0 86/87 0 0 0 0 0 87/88 0 0 p 0 0 88/89 0 0 0 0 0 89/90 0 1,044,274 1,044,274 1,044,274 0 1,044,274 90/91 91/92 0 1,044,274 1,627,728 2,672,002 2,672,002 120,333 0 0 2,672,002 120,333 92/93 2,672,002 (2,551,669) 120,333 0 0 0 93/94 120,333 (120,333) 0 2,340,443 2,340,443 0 2,340,443 94/95 0 2,340,443 234,044 2,574,487 2,340,443 234,044 2,574,487 95/95 95/96 2340443 2,340,443 2,574,487 841,320 234,045 3,649,852 3,181,763 3,181,763 468,089 833,074 3,649,852 4,014,837 96/97 7/98 3,649,852 364,985 200,742 4,014,837 4,215,579 3,181,763 1,033,816 4,215,579 98/99 /98 37 (800,000) 3,415,579 3,181,763 233,816 3,415,579 12/31/98 319 4,215,579 170,779 3,586,358 3,181,763 404,595 3,586,358 8/99 - 1/ -6/30/9 3,415,579 239,088 3,825,446 3,181,763 643,683 3,825,446 7/1 /99 - 2/29/00 2/29/00 3,415,579 107,273 123,120 4,055,839 3,289,036 766,803 4,055,839 3/1/00 - 3,586,358 3,825,446 405,584 4,461,423 3,289,036 1,172,387 4,461,423 7/1/00 - 6/30/01 446,142 4,907,565 3,289,036 1.618,529 4,907,565 7/1/01 - 6/30/01 4,055,839 490,757 5,398,322 3,289,036 2,109,285 5,398,322 7/1/02 - 6/30/02 4,461,423 4,907,565 539,832 5,938,154 3,289,036 2,649,118 5.938,154 7/1/03 - 6/30/03 593,815 6,531,969 3,289,036 3,242,933 6,531,969 7/1 /04 - 6/30/04 5,398,322 5,931,154 489,898 7,021,867 3,289,036 3,732,831 7,021,867 7/1/05-3/31/06 6,531,969 7,021,867 2,710,964 (3,732,831) 6,000,000 6,000,000 (0) 6,000,000 3/315- 3/31/0 150,000 6,150,000 6,000,000 150,000 6,150,000 6/30/06 (150,000) 6,000,000 6,000,000 (0) 6,000,000 6/1/06- 6/30/0 6,000,000 600,000 6,600,000 6,000,000 600,000 6,600,000 6/30/07 6,150,000 (600,000) 6,000,000 6,000,000 (0) 6,000,000 6,600,000 600,000 6,600,000 6,000,000 600,000 6,600,000 07108 6,000,000 (600,000) 6,000,000 6,000,000 (0) 6,000,000 6,600,000 6,000,000 600,000 6,600,000 6,000,000 600,000 6,600,000 08/09 6,600,000 (600,000) 6,000,000 6,000,000 6,000,000 (0) 600,000 6,000,000 6,600,000 09/10 6,000,000 600,000 (600,000) 6,600,000 6,000,000 6,000,000 (0) 6,000,000 6,600,000 600,000 6,600,000 6,000,000 600,000 6,600,000 10/11 6,000,000 6,600,000 (600,000) 6,000,000 6,000,000 (0) 6,000,000 11/12 6,000,000 600,000 6,600,000 6,000,000 6,000,000 600,000 (0) 6,600,000 6,000,000 6,600,000 (600,000) 600,000 6,000,000 6,600,000 6,000,000 600,000 6,600,000 12/13 6,000,000 6,600,000 (600,000) 6,000,000 6,000,000 (0) 6,000,000 13/14 6,000,000 600,000 6,600,000 6,000,000 600,000 (0) 6,600,000 6,000,000 6,600,000 (600,000) 600,000 6,000,000 6,600,000 6,000,000 6,000,000 600,000 6,600,000 14/15 6,000,000 6,600,000 (600,000) 6,000,000 6,000,000 (0) 6,000,000 15/16 6,000,000 600,000 6,600,000 6,000,000 600,000 (0) 6,600,000 6,000,000 6,600,000 (600,000) 600,000 6,000,000 6,600,000 6,000,000 6,000,000 600,000 6,600,000 16/17 6,000,000 (600,000) 6,000,000 6,000,000 (0) 6,000,000 6,600,000 6,000,000 600,000 6,600,000 6,000,000 600,000 6,600,000 17/18 6,600,000 (600,000) 6,000,000 6,000,000 6,000,000 (0) 600,000 6,000,000 6,600,000 18/19 6,000,000 600,000 (600,000) 6,600,000 6,000,000 6,000,000 (0) 6,000,000 6,600,000 6, 000,000 600,000 6,600,000 6,000,000 600,000 6,600,000 19/20 6,000,000 (600,000) 6,000,000 6.000,000 6,000,000 (0) 600,000 6,000,000 6,600,000 20/21 6,000,000 600,000 (600,000) 6,600,000 6,000,000 6,000,000 (0) 6,000,000 6,600,000 6,000,000 600,000 6,600,000 6,000,000 600,000 6,600,000 21 /22 6,600,000 (600,000) 6,000,000 6,000,000 6,000,000 (0) 600,000 6,000,000 6,600,000 22/23 6,000,000 600,000 (600,000) 6,600,000 6,000,000 6,000,000 (0) 6,000,000 6,600,000 6,000,000 600,000 6,600,000 6,000,000 600,000 6,600,000 23/24 6,600,000 (600,000) 6,000,000 6,000,000 (0) 600,000 6,000,000 6,600,000 24/25 6,000,000 600,000 (600,000) 6,600,000 6,000,000 6,000,000 6,000,000 (0) 6,000,000 6,600,000 6,000,000 600,000 6,600,000 6,000,000 600,000 6,600,000 25/26 6,600,000 (600,000) 6,000,000 6,000,000 6,000,000 (0) 600,000 6,000,000 6,600,000 26/27 6,000,000 600,000 (600,000) 6,600,000 6,000,000 6,000,000 (0) 6,000,000 6,600,000 6,000,000 600,000 6,600,000 6,000,000 600,000 6,600,000 27/28 6,600,000 (600,000) 6,000,000 6,000,000 (0) 6,000,000 28/29 6,000,000 600,000 6,600,000 6,000,000 600,000 (0) 6,600,000 6,000,000 6,600,000 (600,000) 600,000 6,000,000 6,600,000 6,000,000 6,000,000 600,000 6,600,000 29/30 6,000,000 6,600,000 (600,000) 6,000,000 6,000,000 (0) 6,000,000 30/31 6,000,000 (1,500,000) 600,000 5,100,000 4,500,000 4,500,000 600,000 (0) 5,100,000 4,500,000 5,100,000 4,500,000 (1,500,000) (600,000) 450,000 4,500,000 3,450,000 3,000,000 450,000 3,450,000 31/32 3,450,000 (450,000) 3,000,000 3,000,000 (0) 3,000,000 32/33 3,000,000 (1,500,000) 300,000 1,800,000 1,500,000 300,000 (0) 1,800,000 1,500,000 1,800,000 (300,000) 1,500,000 1,500,000 0 150,000 150,000 33/34 1,500,000 (1,500,000) 150,000 150,000 0 (0) (0) 150,000 (150,000) 0 5 RDA 1 2003 - 7% 7.00% Interest Interest Cumulative Cumulative FY Beginning Balance Princi al Earned Paid Endinq Balance Principal Interest Total 4/1/03 - 6/30/03 0 6,000,000 105,000 (126,374) 6,105,000 5,978,626 6,000,000 6,000,000 105,000 (21,374) 6,105,000 5,978,626 7/31/03 7/1/03 - 6/30/04 6,105,000 5,978,626 418,504 6,397,130 6,000,000 6,000,000 397,130 308,280 6,397,130 6,308,280 7/31/04 6,397,130 441,580 (88,850) 6,308,280 6,749,859 6,000,000 749,859 6,749,859 7/1/04 - 6/30/05 6,308,280 (142,315) 6,607,545 6,000,000 607,545 6,607,545 7/31/05 7/1/05-3/31/06 6,749,859 6,607,545 346,896 6,954,441 6,000,000 954,441 6,954,441 3/31/06 6,954,441 (954,441) 6,000,000 6,105,000 6,000,000 6,000,000 (0) 105,000 6,000,000 6,105,000 4/1/06-6/30/06 6,000,000 105,000 (105,000) 6,000,000 6,000,000 (0) 6,000,000 6/30/06 7/1/06-6/30/07 6,105,000 6,000,000 420,000 6,420,000 6,000,000 420,000 (0) 6,420,000 6,000,000 6,420,000 (420,000) 420,000 6,000,000 6,420,000 6,000,000 6,000,000 420,000 6,420,000 07/08 6,000,000 6,420,000 (420,000) 6,000,000 6,000,000 (0) 6,000,000 08/09 6,000,000 420,000 6,420,000 6,000,000 6,000,000 6,000,000 420,000 (0) 6,420,000 6,000,000 6,420,000 6,000,000 (420,000) 420,000 6,420,000 6,000,000 420.000 6,420,000 09/10 6,420,000 (420,000) 6,000,000 6,000,000 (0) 6,000,000 10/11 6,000,000 420,000 6,420,000 6,000,000 6,000,000 420,000 (0) 6,420,000 6,000,000 6,420,000 (420,000) 420,000 6,000,000 6,420,000 6,000,000 420,000 6,420,000 11/12 6,000,000 6,420,000 (420,000) 6,000,000 6,000,000 (0) 6,000,000 12/13 6,000,000 420,000 6,420,000 6,000,000 420,000 (0) 6,420,000 6,000,000 6,420,000 (420,000) 420,000 6,000,000 6,420,000 6,000,000 6,000,000 420,000 6,420,000 13/14 6,000,000 6,420,000 (420,000) 6,000,000 6,000,000 (0) 6,000,000 14/15 6,000,000 420,000 6,420,000 6,000,000 6,000,000 6,000,000 420,000 (0) 6,420,000 6,000,000 6,420,000 6,000,000 (420,000) 420,000 6,420,000 6,000,000 420,000 6,420,000 15/16 6,420,000 (420,000) 6,000,000 6,000,000 (0) 6,000,000 16/17 6,000,000 420,000 6,420,000 6,000,000 6,000,000 420,000 (0) 6,420,000 6,000,000 6,420,000 (420,000) 420,000 6,000,000 6,420,000 6,000,000 420,000 6,420,000 17/18 6,000,000 6,420,000 (420,000) 6,000,000 6,000,000 (0) 6,000,000 18/19 6,000,000 420,000 6,420,000 6,000,000 6,000,000 6,000,000 420,000 (0) 6,420,000 6,000,000 6,420,000 6,000,000 (420,000) 420,000 6,420,000 6,000,000 420,000 6,420,000 19/20 6,420,000 (420,000) 6,000,000 6,000,000 (0) 6,000,000 20/21 6,000,000 420,000 6,420,000 6,000,000 420,000 6,420,000 6,420,000 (420,000) 6,000,000 6,420,000 6,000,000 6,000,000 (0) 420,000 6,000,000 6,420,000 21/22 6,000,000 6,420,000 420,000 (420,000) 6,000,000 6,000,000 (0) 6,000,000 22/23 6,000,000 420,000 6,420,000 6,000,000 6,000,000 6,000,000 420,000 (0) 6,420,000 6,000,000 23/24 6,420,000 6,000,000 (420,000) 420,000 6,420,000 6,000,000 420,000 6,420,000 6,420,000 (420,000) 6,000,000 6,000,000 (0) 6,000,000 24/25 6,000,000 420,000 6,420,000 6,000,000 6,000,000 420,000 (0) 6,420,000 6,000,000 6,420,000 (420,000) 420,000 6,000,000 6,420,000 6,000,000 420,000 6,420,000 25/26 6,000,000 6,420,000 (420,000) 6,000,000 6,000,000 (0) 6,000,000 26/27 6,000,000 420,000 6,420,000 6,000,000 6,000,000 6,000,000 420.000 (0) 6,420,000 6,000,000 27/28 6,420,000 6,000,000 (420,000) 420,000 6,420,000 6,000,000 420,000 6,420,000 6,420,000 (420,000) 6,000,000 6,000,000 (0) 6,000,000 28/29 6,000,000 420,000 6,420,000 6,000,000 6,000,000 420,000 (0) 6,420,000 6,000,000 6,420,000 (420,000) 420,000 6,000,000 6,420,000 6,000,000 420,000 6,420,000 29/30 6,000,000 6,420,000 (420,000) 6,000,000 6,000,000 (0) 6,000,000 30/31 6,000,000 (1,500,000) 420,000 4,920,000 4,500,000 4,500,000 4,500,000 420,000 (0) 4,920,000 4,500,000 31/32 4,920,000 4,500,000 (1,500,000) (420,000) 315,000 3,315,000 3,000,000 315,000 3,315,000 3,315,000 (315,000) 3,000,000 3,000,000 (0) 3,000,000 32/33 3,000,000 (1,500,000) 210,000 1,710,000 1,500,000 210,000 (0) 1,710,000 1,500,000 1,710,000 (210,000) 1,500,000 105,000 1,500,000 0 105,000 105,000 33/34 1,500,000 (1,500,000) 105,000 0 0 0 105,000 105,000 0 0 ti 2 J CV — r-- O p L0 O O mt O ICP WIT a) > a) V) O O E C CV N � — U a) >_ W co 00 U O O moo`_ N N �� U a) U C N N m V-- O m O CD LO CD 00 6 Iq Iq C W M M °� O a) LO N C N N N 00 00 N N U O 0) N Iq a) U C N m V- O tf) 0 O O C LO Oc C Iq co a) m t0 O O O O O O Q (D M CO m U- M CO O M O O � � r ti ti � r Ij 11 v17 d 4) O E co cu C L t� L a -Fa � LO p N O O �-- co N N > cn LO O O E di = U — > cu O CU = C- � O � o 0 E N U d. a� U C m LO m m LO N O O CD C O C W LLo O C Or p O •V 00 cei M �.. N v N U C cu LA m LO CD O N O C •E 00 N C m O C M to O M O M Q M t_ o Q ry O M O r r O r ATTACHMENT 2 Proposed Restructuring of RDA Project Area 2 Advances from General Fund Principal FY 05/06 Net Beginning Additions Deletions Ending Change RDA 2 - 10% 6,308,514 3,691,486 10,000,000 3,691,486 RDA 2 - 7% 5,800,000 (5,800,000) 0 (5,800,000) 12,108, 514 3,691,486 (5,800,000) 10, 000, 000 (2,108, 514) Interest FY 05/06 Net Beginning Additions Deletions Ending Change RDA 2 - 10% 5,280,866 1,119,204 (6,400,070) 0 (6,400,070) RDA 2 - 7% 406,000 85,900 (491,900) 0 (491,900) 5,686,866 1,205,104 (6,891,970) 0 (6,891,970) Total 17,795,380 4,896,590 (12,691,970) 10,000,000 (9,oUU,4b4) Principal Annual Interest RDA 2 - 10% 10,000,000 1,000,000 RDA 2-7% 0 0 10, 000, 000 1,000,000 This action would result in the repayment of $2,708,584 as follows: RDA 2 - 10% 2,708,584 2,708,584 The RDA 2-7% was previously repaid from the sale of the Hammer property earlier in FY 05/06 RDA 2 - 10% 6,291,900 6,291,900 0 00 �' o00000000000000000000000000000000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o 0 O 0. o 0 0 0 0 0 0 0 0 0 o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o 0 0 0 0 O o 0 0 0 0 0 0 o O 0 0 0 0 0 CC0 0 0 Lj o ►n o0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O LO H 0 0 0 0 0 0 0 0 0 0 0 0 0 O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O LO CS O f- e- M M M N M ^ Coco d 0 0 0 0 0 0 0 0 N Lr � OO 0000000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 00 0 0 0 0 0 0 0 0 0000 O Q C a L ul) Ln LO LO r O 04 N N N N N _ O O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CCO O O O O O O O O O O O O O O O O O O O O O O p O N N D O O O O O O O O O O O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O O O O O O O O O O O O O O O O O p L- a:? r 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CO p C rn rn o O O O 0 M M 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o LO CEO (p r r r r r r e-r- r M O p O p W C) Cl� r r 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CD ~ N N CO �p \ r- c9 p O O p N CLO p c) 0 O 0- L CC) 00 Lci N N (D OO O r 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O a C 0) O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O O O O O O O O O O O O O O O O O O O O O O O p O _ 00 O O O O O O O O O O LQ to 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O m — L p a0 0 0 0 0 0 0 0 C 0 0 0 0 0 0 0 0 0 0 0 o 0 o 0 0 o o 0 o o o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 LO 0 LO O � O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 C) 0 0 0 0 0 0 0 0 0 0 0 0 0 to N C N r r r r r i- r r r e- r r r r r M (M N M r (�j r r r r r r r r O O O O O O O O c N Cl LC) 6666 O �a U pp r O O O O 0 LO�LOLO d M (6 Ch N CV N N O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O N O � O O O O O O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o 0 0 0 p ` a O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O O O p L C O 000000000000000000000000000000 � 0 N M co r- O O O O O _M (M c O — C � 0 lf') CO I� 00 O O �- N M I to O� MO O r N M d' to O� M O O C) C, O O```` N N N N N N N N N N M M M M M M M M M M U p- w O O r N M `� u) o fZ w O O ems- N M q if ) (-O 0-0 O m N M m m m m m m M M M M M M M M ff•J RDA 2 10% Advance Detail Convert $6,150,070 in interest into $3,691,486 in principal to have $10 million principal outstanding. Repay General Fund $2,458,584 in cash for interest Repay General Fund $250,000 in interest in cash for April May and June of FY 05/06 Total: At the end of FY 05/06 have $10 million in principal outstanding and repay the General Fund $2,708,584 in cash for interest Beginning in FY 35/36 repay $2.5 million principal for 4 years to retire debt FY IBeginning Balance Principal 83/84 84/85 0 85/86 0 86/87 0 87/88 0 88/89 0 89/90 0 90/91 0 91 /92 1,628,068 92/93 3,494,495 93/94 5,171,403 94/95 4,321,796 95/96 3,708,514 96/97 4,079,365 97/98 4,450,218 98/99 - 12/31/98 4,895,239 1 /31 /99 5,140, 001 1 /31 /99 5,182, 834 98/99 - 2/1/99 - 6/3 4,182,834 7/1/99-6/30/00 4,357,119 7/1 /00-6/30/01 6,292,831 7/ 1 /01-6/30/02 6,922,114 8/31 /02 7,614,325 9/ 1 /02-6/30/03 8,841,231 7/1/03-6/30/04 9,578,000 7/1 /04-6/30/05 10,535,800 7/1 /05-3/31 /06 11,589,380 3/31/06 12,458,584 4/1 /06-6/30/06 10,000,000 6/30/06 10,250,000 06/07 10,000,000 11,000,000 07/08 10,000,000 11,000,000 08/09 10,000,000 11,000,000 09/10 10,000,000 11,000,000 10/11 10,000,000 11, 000, 000 11/12 10,000,000 11,000,000 12/13 10,000,000 11, 000, 000 13/14 10,000,000 11, 000, 000 14/ 15 10, 000, 000 11,000,000 15/16 10,000,000 11,000,000 16/ 17 10, 000, 000 11,000,000 17/18 10,000,000 11,000,000 1,628,068 1,866,427 1,676,908 (849,607) (613,282) 1,500,000 1,100,000 3,691,486 Interest Ending Balance Cumulative Principal Cumulative Interest Total 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,628,068 1,628,068 0 1,628,068 3,494,495 3,494,495 0 3,494,495 5,171,403 5,171,403 0 5,171,403 4,321,796 4,321,796 0 4,321,796 3,708,514 3,708,514 0 3,708,514 370,851 4,079,365 3,708,514 370,851 4,079,365 370,853 4,450,218 3,708,514 741,704 4,450,218 445,021 4,895,239 3,708,514 1,186,725 4,895,239 244,762 5,140,001 3,708,514 1,431,487 5,140,001 42,833 5,182,834 3,708,514 1,474,320 5,182,834 (1,000,000) 4,182,834 3,708,514 474,320 4,182,834 174,285 4,357,119 3,708,514 648,605 4,357,119 435,712 6,292,831 5,208,514 1,084,317 6,292,831 629,283 6,922,114 5,208,514 1,713,600 6,922,114 692,211 7,614,325 5,208,514 2,405,811 7,614,325 126,905 8,841,231 6,308,514 2,532,717 8,841,231 736,769 9,578,000 6,308,514 3,269,486 9,578,000 957,800 10,535,800 6,308,514 4,227,286 10,535,800 1,053,580 11,589,380 6,308,514 5,280,866 11,589,380 869,204 12,468,584 6,308,514 6,150,070 12,458,584 (6,150,070) 10,000,000 10,000,000 0 10,000,000 250,000 10,250,000 10,000,000 250,000 10,250,000 (250,000) 10,000,000 10,000,000 0 10,000,000 1,000,000 11, 000, 000 10, 000, 000 1,000,000 11, 000, 000 (1,000,000) 10,000,000 10,000,000 0 10,000,000 1,000,000 11,000,000 10,000,000 1,000,000 11,000,000 (1,000,000) 10,000,000 10,000,000 0 10,000,000 1,000,000 11,000,000 10,000,000 1,000,000 11,000,000 (1,000,000) 10,000,000 10,000,000 0 10,000,000 1,000,000 11,000,000 10,000,000 1,000,000 11,000,000 (1,000,000) 10,000,000 10,000,000 0 10,000,000 1,000,000 11,000,000 10,000,000 1,000,000 11,000,000 (1,000,000) 10, 000, 000 10, 000, 000 0 10, 000, 000 1,000,000 11,000,000 10,000,000 1,000,000 11,000,000 (1,000,000) 10, 000, 000 10, 000, 000 0 10, 000, 000 1,000,000 11,000,000 10,000,000 1,000,000 11,000,000 (1,000,000) 10,000,000 10,000,000 0 10,000,000 1,000,000 11, 000, 000 10, 000, 000 1,000,000 11, 000, 000 (1,000,000) 10,000,000 10,000,000 0 10,000,000 1,000,000 11, 000, 000 10, 000, 000 1,000,000 11, 000, 000 (1,000,000) 10,000,000 10,000,000 0 10,000,000 1,000,000 11,000,000 10,000,000 1,000,000 11,000,000 (1,000,000) 10,000,000 10,000,000 0 10,000,000 1,000,000 11, 000, 000 10, 000, 000 1,000,000 11, 000, 000 (1,000,000) 10,000,000 10,000,000 0 10,000,000 1,000,000 11,000,000 10,000,000 1,000,000 11,000,000 (1,000,000) 10, 000, 000 10, 000, 000 0 10, 000, 000 11 RDA 2 10% Advance Detail Convert $6,150,070 in interest into $3,691,486 in principal to have $10 million principal outstanding. Repay General Fund $2,458,584 in cash for interest Repay General Fund $250,000 in interest in cash for April May and June of FY 05/06 Total: At the end of FY 05/06 have $10 million in principal outstanding and repay the General Fund $2,708,584 in cash for interest Beginning in FY 35/36 repay $2.5 million principal for 4 years to retire debt Principal Interest Ending Balance Cumulative Principal Cumulative Interest Total Beginning Balance FY 1,000,000 11,000,000 10,000,000 1,000,000 0 11,000,000 10,000,000 18/19 10,000,000 11,000,000 10,000,000 (1,000,000) 1,000,000 10,000,000 11,000,000 10,000,000 10,000,000 1,000,000 11,000,000 19/20 11,000,000 (1,000,000) 10,000,000 10,000,000 0 10,000,000 20/21 10,000,000 1,000,000 11,000,000 10,000,000 1,000,000 11,000,000 11,000,000 (1,000,000) 10,000,000 10,000,000 0 10,000,000 21 /22 10, 000, 000 1,000,000 11, 000, 000 10, 000, 000 1,000,000 11, 000, 000 11,000,000 (1,000,000) 10,000,000 10,000,000 0 10,000,000 22/23 10, 000, 000 1,000,000 11, 000, 000 10, 000, 000 1,000,000 0 11, 000, 000 10,000,000 11,000,000 10, 000, 000 (1,000,000) 1,000,000 10,000,000 11, 000, 000 10,000,000 10, 000, 000 1,000,000 11, 000, 000 23/24 11,000,000 (1,000,000) 10,000,000 10,000,000 0 10,000,000 24/25 10,000,000 1,000,000 11,000,000 10,000,000 1,000,000 0 11,000,000 10,000,000 11,000,000 (1,000,000) 10,000,000 10,000,000 25/26 10,000,000 1,000,000 11,000,000 10,000,000 1,000,000 11,000,000 11,000,000 (1,000,000) 10,000,000 10,000,000 0 10,000,000 26/27 10,000,000 1,000,000 11,000,000 10,000,000 1,000,000 11,000,000 11,000,000 (1,000,000) 10,000,000 10,000,000 0 10,000,000 27/28 10,000,000 1,000,000 11,000,000 10,000,000 1,000,000 11,000,000 11,000,000 (1,000,000) 10,000,000 10,000,000 0 10,000,000 28/29 10,000,000 1,000,000 11,000,000 10,000,000 1,000,000 11,000,000 11,000,000 (1,000,000) 10,000,000 10,000,000 0 10,000,000 29/30 10, 000, 000 1,000,000 11, 000, 000 10, 000, 000 1,000,000 11, 000, 000 11,000,000 (1,000,000) 10,000,000 10,000,000 0 10,000,000 30/31 10,000,000 1,000,000 11,000,000 10,000,000 1,000,000 11,000,000 11, 000, 000 (1,000,000) 10, 000, 000 10, 000, 000 0 10, 000, 000 31 /32 10, 000, 000 1,000,000 11, 000, 000 10, 000, 000 1,000,000 0 11, 000, 000 10,000,000 11,000,000 10, 000, 000 (1,000,000) 1,000,000 10,000,000 11, 000, 000 10,000,000 10, 000, 000 1,000,000 11, 000, 000 32/33 11,000,000 (1,000,000) 10,000,000 10,000,000 0 10,000,000 33/34 10,000,000 1,000,000 11,000,000 10,000,000 1,000,000 11,000,000 11,000,000 (1,000,000) 10,000,000 10,000,000 0 10,000,000 34/35 10,000,000 1,000,000 11,000,000 10,000,000 1,000,000 11,000,000 11,000,000 (1,000,000) 10,000,000 10,000,000 0 10,000,000 35/36 10,000,000 (2,500,000) 1,000,000 8,500,000 7,500,000 1,000,000 0 8,500,000 7,500,000 36/37 8,500,000 7,500,000 (2,500,000) (1,000,000) 750,000 7,500,000 5,750,000 7,500,000 5,000,000 750,000 5,750,000 5,750,000 (750,000) 5,000,000 5,000,000 0 5,000,000 37/38 5,000,000 (2,500,000) 500,000 3,000,000 2,500,000 500,000 0 3,000,000 2,500,000 3,000,000 (500,000) 2,500,000 2,500,000 38/39 2,500,000 (2,500,000) 250,000 250,000 0 250,000 250,000 250,000 (250,000) 0 0 0 0 Total 0 0 0 t 12 RDA 2 7% Advance Detail FY 7/1 /03-6/30/04 7/1 /04-6/30/05 7/1 /05-8/31 /05 9/01/05 - Sams Club 9/1 /05-10/31 /05 10/31 /05 nno, Beginning Balance Principal Interest Ending Balance Cumulative Principal Cumulative Interest Total 5,800,000 0 5,800,000 5,800,000 0 5,800,000 5,800,000 406,000 6,206,000 5,800,000 406,000 6,206,000 6,206,000 72,403 6,278,403 5,800,000 478,403 6,278,403 6,278,403 (4,643,089) (478,403) 1,156,911 1,156,911 0 1,156,911 1,156,911 13,497 1,170,408 1,156, 911 13,497 1,170,408 1,170,408 1,156,911 13,497 0 0 0 0 13 0 •c _ W c� OF9 COUNCIL/RDA MEETING DATE: March 7, 2006 ITEM TITLE: Approval of an Amendment to the Exclusive Negotiation Agreement by and Between the La Quinta Redevelopment Agency and Coachella Valley Housing Coalition for the Development of an Affordable Housing Project Located at the Northwest Corner of Dune Palms Road and Avenue 48 RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: 3 Approve Amendment No. 1 to the Exclusive Negotiation Agreement between the La Quinta Redevelopment Agency and Coachella Valley Housing Coalition for the design and development of an affordable housing project and authorize the Agency Chair to execute the required documents. FISCAL IMPACT: None. BACKGROUND AND OVERVIEW: On July 22, 2005 the Agency and Coachella Valley Housing Coalition (CVHC) entered into an Exclusive Negotiation Agreement (ENA) that established a 180-day period wherein both entities would exclusively work to prepare concept plans for an affordable housing project, and develop a Disposition Development Agreement (DDA) that outlines property disposition and development responsibilities. Per the ENA, a formal amendment is required to extend the exclusive negotiation period. Because the Agency and CVHC are at a point where Agency legal counsel will be drafting the Disposition and Development Agreement, staff is recommending that the exclusive negotiating period be extended until June 30, 2006. The attached Amendment No. 1 to the Exclusive Negotiation Agreement would accomplish this task. (18 On February 21, 2006, the Agency approved the concept site plan and building elevations for a 218-unit affordable housing project. At this meeting the Agency directed staff to prepare a DDA. FINDINGS AND ALTERNATIVES: Alternatives available to the Agency Board include: 1 . Approve Amendment No. 1 to the Exclusive Negotiation Agreement between the La Quinta Redevelopment Agency and Coachella Valley Housing Coalition for the design and development of an affordable housing project and authorize the Agency Chair to execute the required documents; or 2. Do not approve Amendment No. 1 to the Exclusive Negotiation Agreement between the La Quinta Redevelopment Agency and Coachella Valley Housing Coalition for the design and development of an affordable housing project and do not authorize the Agency Chair to execute the required documents; or 3. Provide staff with alternative direction. Respectfully submitted, Douglas PtyEvans Community Development Director Approved for submission by: Thomas P. Genovese Executive Director Attachments: 1 . Amendment No. 1 C.19 ATTACHMENT 1 AMENDMENT NO. 1 TO EXCLUSIVE NEGOTIATION AGREEMENT THIS AMENDMENT NO. 1 TO EXCLUSIVE NEGOTIATION AGREEMENT ("Amendment No. 1") is made and entered into as of February _, 2006 by and between LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic ("Agency"), and COACHELLA VALLEY HOUSING COALITION, a California non-profit benefit corporation ("Developer"). RECITALS: A. On or about July 22, 2005, the Agency and Developer entered into that certain Exclusive Negotiation Agreement (the "ENA"), pursuant to which Agency and Developer agreed to initiate exclusive negotiations for up to one hundred eighty (180) days concerning the possible sale by Agency to Developer of certain real property owned in fee by the Agency for the Developer's subsequent development thereon of an affordable housing project, all as more fully described in the ENA. B. Pursuant to authority granted in the ENA, the Agency's Executive Director has extended the "First Due Diligence Period" (as that term is defined in the ENA), on two (2) separate occasions, for a cumulative total of one hundred twenty (120) days, until March 20, 2006. C. The Developer has completed several of the tasks required to be completed during the First Due Diligence Period, but as a result of various alterations to the site plans agreed to by Developer and Agency, and delays resulting from the scheduling of public meetings and workshops, several of the tasks required to be completed during the First Due Diligence Period still require completion. Developer and Agency now wish to extend the First Due Diligence Period to provide the Developer with additional time to complete such uncompleted tasks. AGREEMENT: NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated herein by this reference, and for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: The ENA is hereby amended to extend the First Due Diligence Period until June 30, 2006. 2. Except as otherwise expressly provided in this Amendment No. 1, all of the terms and conditions of the ENA shall remain in full force and effect. 3. In the event of any action between Agency and Developer seeking enforcement of any of the terms and conditions to this Amendment No. 1, the prevailing party in such action shall be awarded, in addition to damages, injunctive or other relief, its reasonable costs and expenses, including without limitation its expert witness fees and reasonable attorney's fees. n IL 4. G:\WPDOCS\Documents\CVHC\ENA Amd LDOC -1- 4. This Amendment No. 1 shall be construed according to its fair meaning and as if prepared by both parties hereto. 5. This Amendment No. 1 shall be governed by the internal laws of the State of California and any question arising hereunder shall be construed or determined according to such law. The Municipal and Superior Courts of the State of California in and for the County of Riverside, or such other appropriate court in such county, shall have exclusive jurisdiction of any litigation between the parties concerning this Amendment No. 1. Service of process on Agency shall be made in accordance with California law. Service of process on Developer shall be made in any manner permitted by California law and shall be effective whether served inside or outside California. 6. Time is of the essence of this Amendment No. 1 and of each and every term and provision hereof. 7. This Amendment No. 1 may be executed in counterparts, each of which, when this Amendment No. 1 has been signed by all the parties hereto, shall be deemed an original, and such counterparts shall constitute one and the same instrument. [End — Signature Page Follows] G:\WPDOCS\Documents\CVHC\ENA Amd 1.DOC -2- IN WITNESS WHEREOF, Agency and Developer each hereby represents that it has read this Amendment No. 1, understands it, and hereby executes this Amendment No. 1 to be effective as of the day and year first written above. Date: February 27 92006 Date: "Developer" COACHELLA VALLEY HOUSING COALITION, a 5A for ' non-profit public benefit corporation B. Its: E �Cive Director "Agency" LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic 2006 By: Agency Chair ATTEST: June Greek, Agency Secretary APPROVED AS TO FORM: RUTAN & TUCKER, LLP 0 M. Katherine Jenson, Agency Counsel GAWPDOCS\Documents\CVHC\ENA Amd LDOC -3-