2006 04 04 RDAeaf 4 Sep adja
Redevelopment Agency Agendas are
Available on the City's Web Page
@« www.la-quinta.org
REDEVELOPMENT AGENCY
AGENDA
CITY COUNCIL CHAMBERS
78-495 Calle Tampico
La Quinta, California 92253
Regular Meeting
APRIL 4, 2006 — 1:00 P.M.
Beginning Resolution No. RA 2006-004
CALL TO ORDER
Roll Call:
Agency Board Members: Adolph, Henderson, Kirk, 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 APRIL 4, 2006 � � 1
2. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR, THOMAS P.
GENOVESE, PURSUANT TO GOVERNMENT CODE SECTION 54956.8
CONCERNING POTENTIAL TERMS AND CONDITIONS OF ACQUISITION AND/OR
DISPOSITION OF REAL PROPERTY LOCATED AT THE SOUTHEAST CORNER OF
MILES AVENUE AND WASHINGTON STREET. PROPERTY OWNER/NEGOTIATOR
CP DEVELOPMENT LA QUINTA, LLC
3. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR, DOUGLAS R.
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 NORTHWEST 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 MARCH 21, 2006.
CONSENT CALENDAR
NOTE: Consent Calendar items are considered to be routine in nature and will be approved
by one motion.
APPROVAL OF DEMAND REGISTER DATED APRIL 4, 2006.
BUSINESS SESSION - NONE
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Redevelopment Agency Agenda 2 APRIL 4, 2006
STUDY SESSION — NONE
CHAIR AND BOARD MEMBERS' ITEMS
PUBLIC HEARINGS — NONE
1. JOINT PUBLIC HEARING TO CONSIDER ADOPTION OF RESOLUTION ON 1.
AFFORDABLE HOUSING AGREEMENT BY AND BETWEEN THE LA QUINTA
REDEVELOPMENT AGENCY AND COACHELLA VALLEY HOUSING COALITION FOR
THE SALE AND DEVELOPMENT OF 14.8 ACRES OF AGENCY PROPERTY LOCATED
AT THE NORTHWEST INTERSECTION OF DUNE PALMS ROAD AND AVENUE 48 IN
THE LA QUINTA PROJECT AREA NO. 2; AND 2) AUTHORIZE THE AGENCY CHAIR
AND EXECUTIVE DIRECTOR TO EXECUTE THE NECESSARY DOCUMENTS; AND
APPROPRIATE $30,153,435 FROM THE 2004 LOW AND MODERATE HOUSING
BOND FUND APPLICANT: COACHELLA VALLEY HOUSING COALITION.
A. RESOLUTION ACTION(S)
ADJOURNMENT
Adjourn to a regularly scheduled meeting of the Redevelopment Agency to be held on April
18, 2006 commencing with closed session at 2:00 p.m., if necessary, 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, June S. Greek, City Clerk of the City of La Quinta, do hereby declare that the foregoing
agenda for the La Quinta Redevelopment Agency meeting of April 4, 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 31, 2006.
DATED: March 31, 2006
JUNE S. GREEK, CMC, City Clerk
City of La Quinta, California
Redevelopment Agency Agenda 3
APRIL 4, 2006 � ��+
COUNCIL/RDA MEETING DATE: April 04, 2006
ITEM TITLE:
Demand Register Dated April 04, 2006
RECOMMENDATION:
It is recommended the Redevelopment Agency Board:
AGENDA CATEGORY:
CONSENT CALENDAR
STUDY SESSION
PUBLIC HEARING
Receive and File the Demand Register Dated April 04, 2006 of which $198,061.46
represents Redevelopment Agency Expenditures.
PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA
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COUNCIL/RDA MEETING DATE: April 4, 2006
ITEM TITLE: Public Hearing to Consider Adoption of
Resolutions on 1) Affordable Housing Agreement
by and Between the La Quinta Redevelopment
Agency and Coachella Valley Housing Coalition for
the Sale and Development of 14.8 acres of Agency
Property Located at the Northwest Intersection of
Dune Palms Road and Avenue 48 in the La Quinta
Project Area No. 2; and 2) Authorize the Agency
Chair and Executive Director to Execute the
Necessary Documents, and Appropriate
$30,153,435 from the 2004 Low and Moderate
Income Housing Bond Fund. Applicant: Coachella
Valley Housing Coalition
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING: J
Adopt a Resolution of the Redevelopment Agency that approves an Affordable
Housing Agreement by and between the La Quinta Redevelopment Agency and
Coachella Valley Housing Coalition for the sale and development of 14.8 acres of
Agency property located northwest of the intersection of Dune Palms Road and
Avenue 48 in La Quinta Project Area No. 2, authorize the Agency Chair and
Executive Director to execute the necessary documents, and appropriate
$30,153,435 from the 2004 Low and Moderate Income Housing Bond Fund.
FISCAL IMPLICATIONS:
The Affordable Housing Agreement ("Agreement") will result in expenditure of up
to $30,153,435 in 2004 Low- and Moderate -Income Housing Bond Fund revenue.
The Agreement also provides that the Agency may need to fund an additional
$10,000,000 of development costs if the project is not awarded State Multi -Family
Housing Program (MHP) loan funds. If a MHP loan is not granted, the Agency
Board will then be requested to consider appropriating an additional $10.0 million in
funding.
BACKGROUND AND OVERVIEW:
The California Community Redevelopment Law mandates that the Agency insure
that at least 15 % of all privately developed or substantially rehabilitated dwellings
in each of the Agency's two Redevelopment Project Areas are affordable to very
low-, low- and moderate -income households; of these, 40% must be affordable to
very low-income households. Based upon General Plan densities and residential
build -out projections, the Agency must secure 1,994 affordable units by 2036, and
798 of these units must be affordable to very low-income households. To date, the
Agency has secured 1,031 affordable dwellings and 281 of these units are
affordable to very low-income households.
In July 2004 the Agency purchased a 27.4 acre parcel located northwest of the
Dune Palms Road/Avenue 48 intersection to facilitate affordable housing
development, a SilverRock Resort well site, and Highway 111 commercial
development. The larger parcel was subsequently subdivided into three parcels;
two were sold for commercial development and a 14.8 acre parcel was designated
for affordable housing development. The Agency subsequently issued a request for
qualifications and selected the Coachella Valley Housing Coalition (CVHC) to initiate
site planning activities and structure an affordable housing development. The
Agency Board accepted the site plan in January 2005, and directed staff to draft an
affordable housing agreement that would facilitate site sale and development
activities.
The Agreement facilitates the sale of 14.3 acres to CVHC for $1 .00. The
remaining .5 acres will be dedicated to the Coachella Valley Water District for a
domestic water well site to satisfy 1 of the 7 well sites required for the SilverRock
development. The Agreement also provides for up to $30,1 53,435 in Agency
financial assistance to facilitate development of a 218 unit multi -family complex.
These one-, two-, three- and four -bedroom dwellings will be rented at affordable
rents to very low- and moderate -income households. Based upon 2005 household
income limits for Riverside County (2006 household income limits have not been
published), households earning from $22,250 to $53,450 per year would qualify to
live in these units. The dwelling rents will remain affordable to very low- and
moderate -income households for 55 years. This residential complex will also
embrace design principals that reduce development and operational impacts on the
environment, and reduce energy use via solar water and space heating, and solar
electricity generation. The Summary Report that further details the financial and
redevelopment aspects of this transaction is provided as Attachment 1 .
Project Financing
The total land and improvement costs for the 218 complex are estimated to be
$82.6 million; $7,474,896 in land cost and $75,155,298 in site and building
improvements costs. These costs are as follows:
Source Amount
Agency: Land contribution $ 7,474,896
Financial assistance $26,153,435
MHP loan $10,000,000
First trust deed mortgage $ 3,994,700
4% tax credit equity $33,707,163
Deferred developer fee $ 1,300,000
Staff is requesting that the Agency appropriate $4,000,000 more than the
estimated $26,153,435 of financial assistance to cover possible construction labor
and materials cost inflation. Construction materials and labor costs have been
increasing at a rate of 1 % per month or 12% per year. The combined MHP and tax
credit funding will not be in place until the latter part of 2006, with construction
then proceeding during the second quarter of 2007. The additional $4,000,000 will
provide a cushion in case actual labor and materials costs exceed the spring 2006
cost estimates.
The Resolution provides that the Executive Director may make modifications to the
Agreement provided that they do not alter the business parameters approved by the
Agency Board. This is being requested so that the Agreement may be adjusted
when the MHP, tax credit and mortgage lender requirements are known without
having to formally amend the Agreement. This follows past practices wherein the
Agency Board has authorized the Executive Director to approve non -business point
modifications involving prior affordable housing and disposition and development
agreements.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency Board include:
1. Adopt a Resolution of the Redevelopment Agency that approves an
Affordable Housing Agreement by and between the La Quinta
Redevelopment Agency and Coachella Valley Housing Coalition for the sale
and development of 14.8 acres of Agency property located northwest of the
intersection of Dune Palms Road and Avenue 48 in La Quinta Project Area
No. 2, authorize the Agency Chair and Executive Director to execute the
necessary documents, and appropriate $30,153,435 from the 2004 Low and
Moderate Income Housing Bond Fund; or
2. Do not approve the Resolution of the Redevelopment Agency that approves
the Affordable Housing Agreement; or
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3. Provide staff with alternative direction.
Respectfully submitted,
".00
Douglas R. ans,
Community Development Director
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachments: 1 . Affordable Housing Agreement Summary Report
Note: Affordable Housing Agreement included with City
Council Staff Report
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RESOLUTION RDA NO.
A RESOLUTION OF THE LA QUINTA REDEVELOPMENT AGENCY
APPROVING AN AFFORDABLE HOUSING AGREEMENT BETWEEN THE
AGENCY AND COACHELLA VALLEY HOUSING AUTHORITY FOR THE
PROPERTY LOCATED AT THE NORTHWEST CORNER OF AVENUE 48
AND DUNE PALMS
WHEREAS, the La Quinta Redevelopment Agency ("Agency") is a public
body, corporate and politic, organized and existing under the California Community
Redevelopment Law ("Health & Safety Code § 33000 et seq.) ("CRL"); and
WHEREAS, pursuant to the CRL, the City Council of the City of La Quinta
("City" or "City Council," as applicable) approved and adopted the Redevelopment
Plan ("Redevelopment Plan") for Project Area No. 2 ("Project Area"), on May 16,
1989, by Ordinance No. 139; and
WHEREAS, a fundamental purpose of the CRL is to expand the supply of
low- and moderate -income housing (Health & Saf. Code, § 33071); and
WHEREAS, the Agency staff has negotiated an Affordable Housing
Agreement ("Agreement") with the Coachella Valley Housing Authority, a non-profit
California corporation ("Developer"), pursuant to which (i) the Agency is to convey
to the Developer certain real property located within the Project Area ("Property")
for One Dollar ($1 .00) for the Developer's subsequent development thereon of a
Two Hundred Eighteen (218) unit multi -family affordable housing development
restricted for rental to and occupancy by persons and families of very low income
(i.e., persons and families whose income does not exceed 50% of the median
income for Riverside County) at rent levels affordable to such persons (the
"Project"); (ii) the Agency is to reimburse the Developer, in an amount up to but not
exceeding Thirty Million One Hundred Fifty Three Thousand Four Hundred Thirty
Five Dollars ($30,153,435), from the Agency's Low and Moderate Income Housing
Fund ("Housing Fund"), for engineering, architectural, planning and development
costs (the "Agency Assistance"), all as more particular described in the Agreement;
and
WHEREAS, pursuant to the Agreement, Developer, as a condition to
Agency's provision of the Agency Assistance, shall record against the Property an
Agency Regulatory Agreement and Declaration of Covenants and Restrictions that
restricts the use of the Property, for a period of fifty-five (55) years, as an
affordable rental housing project; and
WHEREAS, Health and Safety Code Section 33433 requires that the Agency
prepare a Summary Report to consider the Agency's proposed financial contribution
to the Project as set forth in the Agreement, that the Agency Board and the City
Council conduct a noticed joint public hearing with respect to the Agreement, and
that the approval of the Agreement be accompanied by certain findings and
determinations as set forth herein; and
WHEREAS, a Summary Report for the Agreement has been prepared and the
joint public hearing has been conducted in accordance with applicable requirements
of law; and
WHEREAS, the City Council and the Redevelopment Agency have considered
all the information and evidence set forth in the Summary Report presented by the
City/Agency staff and presented by persons wishing to appear and be heard
concerning the impact of the Agreement on the Project Area and the City as a
whole; and
WHEREAS, the Agreement is in accordance with the Redevelopment Plan
and is of benefit to the Project Area and the City of La Quinta; and
WHEREAS, the City Council hereby determines that the Agency's financial
contribution pursuant to the Agreement is necessary to effectuate the purposes of
the Redevelopment Plan
NOW, THEREFORE, BE IT RESOLVED BY THE LA QUINTA
REDEVELOPMENT AGENCY AS FOLLOWS:
1 . That the above recitals are true and correct and incorporated herein.
2. The Agreement effectuates the purposes of the Community
Redevelopment Law (Health & Safety Code § 33000 et seq.) and of the
Redevelopment Plan and is in the best interests of the citizens of the City of La
Quinta.
3. The Agency's sale of the real property identified herein will provide
housing for very low income persons and is consistent with the Agency's Five -Year
Implementation Plan, based on the findings and conclusions of the Summary
Report, which is incorporated herein
4. The consideration the Developer will pay for the real property to be
conveyed by the Agency is not less than the fair reuse value at the use and with
the covenants and conditions and development costs authorized by the sale, based
on the findings and conclusions of the Summary Report.
5. The Agreement, a copy of which is on file with the Agency Secretary,
is hereby approved. The Agency Executive Director and Agency Counsel are
hereby authorized and directed to make final modifications to the Agreement that
are consistent with the substantive terms of the Agreement approved hereby, and
the Agency Executive Director is authorized to thereafter sign said Agreement on
behalf of the Agency.
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6. The Agency Executive Director is authorized and directed, on behalf of
the Agency, to (i) sign such other and further documents, including but not limited
to subordination agreements and escrow instructions that require the Agency's
signature, and (ii) take such other and further actions, as may be necessary and
proper to carry out the terms of the Agreement.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the La
Quinta Redevelopment Agency held this 4th day of April, 2006, by the following
vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
LEE OSBORNE, Agency Chair
City of La Quinta, California
ATTEST:
JUNE S. GREEK, Agency Secretary
City of La Quinta, California
APPROVED AS TO FORM:
M. KATHERINE JENSON, Agency Counsel
City of La Quinta, California
Attachment 1
SUMMARY REPORT
Affordable Housing Agreement
La Quinta Redevelopment Agency
And
Coachella Valley Housing Coalition
March 24, 2006
INTRODUCTION
This document is the Summary Report ("Report") for the Affordable Housing Agreement
("Agreement") by and between the La Quinta Redevelopment Agency ("Agency") and the
Coachella Valley Housing Coalition ("Developer"). The Agreement facilitates the development
and operation of a 218-unit multi -family residential complex ("Development"). The Development
will be constructed on a 14.3 acre property located northwest of the intersection of Dune Palms
Road and Avenue 48 ("Site"). The Agreement provides that the Agency will sell the Site to the
Developer, and provide additional funding to underwrite some of the design and construction
costs. In doing so, the unit rents will be affordable to very low and moderate income
households.
This Report has been prepared pursuant to Section 33433 of the California Community
Redevelopment Law ("Redevelopment Law") and presents the following:
■ A summary of the proposed Development.
■ The cost of the Agreement to the Agency.
■ The estimated value of the interest to be conveyed, determined at the highest and best
uses permitted by the Agency's Redevelopment Plan.
■ The estimated value of the interest to be conveyed, determined at the use with the
conditions, covenants, and development costs required by the Agreement.
■ An explanation of why the sale or lease of the property pursuant to the Agreement will
assist in the elimination of blight.
THE DEVELOPMENT
City and Agency Housing Mandates
Both the City of La Quinta ("City") and the Agency are mandated by the State of California to
continually seek opportunities that increase and improve the supply of housing affordable to
very low, low and moderate income households. State Planning Laws mandate that the City
pursue a housing mix that accommodates both local and regional housing demand for
affordable dwellings. The Redevelopment Law provides that the Agency insure that a minimum
of 15% of all new and rehabilitated dwellings within the Project Area be affordable to very low,
low and moderate income households, and of these, at least 40% must be affordable to very
CVHCpubhearAGENCYrpt4APR06 (4).doc �` .,
low income households. If these dwellings are owner occupied, they must remain affordable for
45 years and if they are tenant occupied, they must remain affordable for 55 years.
The Site
The Agency acquired the site in 2004. The property is located in Project Area Number 2, and
was formerly used as a skeet shooting range. At the time of purchase, the Site had returned to a
natural desert landscape of sand dunes with little vegetation and had one existing building - an
abandoned residential structure in very poor condition.
Project Description
The property is zoned Regional Commercial, which allows for high density residential housing
with an affordable component if it is located more than 600 feet south of Highway 111. The Site
is 1,450 feet south of Highway 111. As the site is over ten acres in size, a Specific Plan has
been prepared for the property in compliance with La Quinta Zoning Code Section 9.70.030.
The Specific Plan establishes the development standards for the property.
The Developer retained Interactive Design Studio as the architecture firm to design the
development. The site plan proposes that 218 rental units will be constructed, in a series of 22
buildings, all with complementary designs. Building sizes range from one to three stories in
height. The units will be a mix of one, two, three, and four bedroom apartments to meet the
needs of various family sizes. Within 150 feet of Dune Palms Road and Avenue 48, buildings
will be a maximum of 28 feet tall. Three story buildings will be a maximum of 40 feet tall. The
entire site will be lowered below the natural grade to minimize height impacts. Sufficient parking
is provided in garages, surface lots, carports, and subterranean parking under the central three-
story buildings.
All buildings have a Mission Revival style, much like the early 20th Century architecture of
California, which is influenced by both the Spanish Mission Style and Spanish Colonial Revival
Style. The use of this vernacular, particularly throughout Southern California, has established
both a dignified and familiar form which appeals to most users. Characteristics include off-white
hand -trowel led and textured walls, red tile roofs, balconies and courtyard areas, rounded
corners, and tile accents.
Affordable Housing Mix
The Developer will be using 4% tax credit financing to fund a portion of the total design and
construction costs. In order to qualify for this financing, the housing costs will be affordable to
very low and moderate income households. The dwellings will remain affordable to said
households for 55 years. Two hundred and sixteen of the 218 units will be affordable to very
low income households, and two manager units will be affordable to moderate income
households.
Very low income households are those that make 50% or less of the Riverside County median
income; moderate income households are those that make less than 120% of the County
median income. The 2005 household income limits for Riverside County (the 2006 household
CVHCpubhearAGENCYrpt4APR06 (4).doc 0 13
incomes have not yet been released) define a very low income, two person household as one
that annually earns up to $22,250 and a five person household as one that earns up to $30,050.
A moderate income two person household is defined as one that annually earns up to $53,450.
THE COST OF THE AGREEMENT TO THE AGENCY
The total cost of the Agreement to the Agency will be $33,628,331 exclusive of interest accrued
in bond financing. To date the Agency has expended $7,474,896 in land acquisition costs, and
the Agreement provides that the Agency would fund an additional $26,153,435 in development
expenses. The Agency secured the development funding in tax allocation bonds (funded by
Agency Housing Fund revenue) to underwrite some of the Agency's obligations. These costs
are detailed as follows.
Property Acquisition
In 2004, the Agency purchased 27.75 acres on Dune Palms Road, south of Highway 111 for
$12.00 per square foot of land area. The Site accounts for slightly more than half of the original
amount of land purchased. Approximately 22,500 square feet will be dedicated for use as a well
site for the Coachella Valley Water District. The Agency's purchase price for the Site was
therefore $7,474,896.
Site Planning and Preparation
The Developer projects a total development cost, not including land, of $75,155,298 or
$344,749 per unit. The sources of development funds are: $33,707,163 from 4% Tax Credit
Investor Funds, $10,000,000 from MHP low interest loan (0.4%), $3,994,700 first trust deed
mortgage paid by rent income, $1,300,000 deferred development fee/equity, and $26,153,435
from Agency funds. The Developer has requested that the Agency approve an additional
$4,000,000 in funds as a cushion for rapidly rising construction costs.
Source and Cost of Agency Funds
The Agency is using 2004 tax allocation bond proceeds to fund its obligations pursuant to the
Agreement. The cost to the Agency for the acquisition of the Site was $7,474,896. The
Agreement contemplates that up to $26,153,435 in bond proceeds will be provided to Developer
for development costs. The total interest paid on the bond proceeds (over the 30 year terms of
the respective bond issues) is $31,407,277. The total cost of the Agreement to the Agency is
$65,085,912 (all bond payments are made by the Housing Fund). The Agreement requires the
Developer to execute a promissory note in the amount of $26,153,435. The note requires the
Developer to make annual payments to the Agency out of the Developer's residual receipts of
operating the project. Repayment of the note will be secured by a deed of trust to be recorded
against the Site at the close of escrow.
ESTIMATED VALUE OF INTEREST TO BE CONVEYED
Based on recent sales comparisons, the value of the Site is $15.50 per square foot.
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CVHCpubhearAGENCYrpt4APR06 (4).doc
ESTIMATED VALUE OF THE INTEREST TO BE CONVEYED DETERMINED AT THE USE
AND WITH THE CONDITIONS COVENANTS AND DEVELOPMENT COSTS REQUIRED BY
THE AGREEMENT
The Agency is selling the land to the Developer for $1.00 due to the restricted nature of the land
use. The total cost (not including land cost) to develop the project is anticipated to be
$75,155,298. As an affordable housing development, rent income generates only $3,994,700.
Therefore, to satisfy Redevelopment Law requirements and to achieve the City's affordable
housing goals with the development of this project, including the 55-year rental restrictions, the
value of the site is $1.00.
EXPLANATION OF WHY THE SALE OF THE PROPERTY PURSUANT TO THE
AGREEMENT WILL ASSIST IN THE ELIMINATION OF BLIGHT
The conveyance of the Site and construction of the Development will assist in the elimination of
blight within the Project Area by increasing and improving the supply of affordable housing. The
Development will provide 218 housing units that are affordable to very low or moderate income
residents.
The Development is listed in the Agency's 2005 Five Year Implementation Plan.
The Agreement will be the subject of a joint public hearing of the Agency and the City Council
on April 4, 2006, at 7:00 pm or thereafter in the City Council Chambers located at 78-495 Calle
Tampico, La Quinta, California.
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CVHCpubhearAGENCYrpt4APR06 (4).doc