RDA Resolution 2006-013
RESOLUTION NO. RA 2006-013
A RESOLUTION OF THE LA GUINTA REDEVELOPMENT
AGENCY APPROVING A FOURTH AMENDMENT TO THE
DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN
THE LA GUINTA REDEVELOPMENT AGENCY AND CP
DEVELOPMENT LA GUINTA, LLC FOR THE PROPERTY
LOCATED AT THE SOUTHEAST CORNER OF
WASHINGTON STREET AND MILES AVENUE
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 Section 33000 et seq.) ("CRL"); am;!
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 amended the Redevelopment Plan on December 20, 1994, by
Ordinance. No. 259, on February 3, 2004, by Ordinance No. 399, and on March 16,
2004, by Ordinance No. 403; and
WHEREAS, on or about December 18, 2003, the Agency entered into
that certain Disposition and Development Agreement ("Original Agreement") with CP
Development La Quinta, LLC, a California limited liability company ("Developer"),
pursuant to which the Agency conveyed to the Developer certain real property located
within the Project Area (the "Property") for the Developer's development thereon of a
commercial project containing a medical office/clinic, a boutique hotel, a mid-price
suites hotel, a resort-style condominium/casitas development, two sit-down
restaurants, and two single-family residential developments, with forty of the single-
family homes restricted for sale to moderate-income buyers at an affordable housing
cost, all as more particularly described in the Original Agreement (collectively, the
"Project"); and
WHEREAS, on or about October 28, 2004, Agency and Developer entered
into an amendment to the Original Agreement which revised (i) certain timeframes in
the Schedule of Performance attached to the Original Agreement; Iii} certain conditions
that had to be satisfied prior to the Agency's conveyance to Developer of the Property;
and (iii) the transfer and assignment provisions in the Original Agreement
("Amendment No.1"); and
Roso\u1lon No. RA 2oo6-1l13
DIspoaltion and Development Agreement
CP Development La Quinto. UC
Adopted: September 19. 2006
Page 2
WHEREAS, on or about December 7, 2004, Agency and Developer
entered into a second amendment to the Original Agreement which revised the Option
Agreement attached thereto to provide for the Agency's agreement to subordinate
"Repurchase Option 1" in the same manner, and subject to the same terms and
conditions, as the Agency had agreed to subordinate "Repurchase Option III" (as those
terms are defined in the Option Agreement) in order to accommodate Developer's
acquisition and development lender ("Amendment No.2"); and
WHEREAS, on or about November 2, 2005, the Agency and Developer
entered into a third amendment to the Original Agreement which changed the
description of the Project to, among other things, omit the boutique hotel, increase the
number of casitas units that may be developed on the Property, and extended the
timeframe for the Developer's completion of the Suites Hotel ("Amendment No.3");
and
WHEREAS, the Original Agreement, as modified by Amendment No.1,
Amendment No.2, and Amendment No. 3 is hereinafter referred to as the
UAgreement"; and
WHEREAS, the Developer has entered into a purchase and sale agreement
with Eisenhower Medical Center, a California nonprofit public benefit corporation
("Eisenhower"), to sell to Eisenhower the portion of the Property designated to be
developed with the medical office/surgical facility (the "MOB Parcel"); and
WHEREAS, Eisenhower has requested that the Option Agreement be
revised such that the Agency's repurchase price for the MOB Parcel in the event of an
option triggering default would reflect Eisenhower's purchase price for said parcel;
WHEREAs, the Agency and the Developer have negotiated a fourth
amendment to the Agreement to address the modifications desired by Eisenhower
(UAmendment No.4"); and
WHEREAS, Amendment No.4 is in accordance with the Redevelopment
Plan and is of benefit to the Project Area and the City of La Quinta.
NOW, THEREFORE, BE IT RESOLVED BY THE LA QUINT A
REDEVELOPMENT AGENCY AS FOLLOWS:
Resolution No. RA 2006-1l13
DIsposition and Development Agreement
CP Development La Quints. LLC
Adopted: September 19. 2006
Page 3
1. That the above recitals are true and correct and incorporated herein.
2. That Amendment No. 4 effectuates the purposes of the CRL and of the
Redevelopment Plan and is in the best interests of the citizens of the City of La
Quinta.
3. That Amendment No.4, a copy of which is on file with the Agency Secretary,
is hereby approved.
4. The Agency Executive Director and Agency Counsel are hereby authorized and
directed to (i) make final modifications to Amendment No.4 that are consistent
with the substantive terms of Amendment No.4 approved hereby, and to
thereafter sign Amendment No.4 on behalf of the Agency, and (ii) take such
other and further actions, and sign such other and further documents that
require the Agency's signature, as may be necessary and proper to carry out the
terms of Amendment No.4.
PASSED, APPROVED, and ADOPTED at a regular meeting of the La
Quinta Redevelopment Agency held this 19th day of September, 2006, by the
following vote:
AYES:
Board Members Adolph, Henderson, Kirk, Sniff, Chair Osborne
NOES:
None
ABSENT:
None
ABSTAIN: None
~4
~ //
.$,tz::;A '////'
L M. OSBORNE, Agency Chair
a Quinta Redevelopment Agency
ATTEST:
--:r..AEb""".:J.,.. ::u...~~ Q...k C'. .
DEBORAH H. POWELL, Interim Agency Secretary
La Quinta Redevelopment Agency
Resolution No. RA 2006-1l13
Disposition and Development Agreement
CP Development La OuInta. LLC
Adopted: September 19. 2006
Page 4
APPROVED AS TO FORM: