2006 11 21 RDA:D1
U m -
,�e4
NCOVO
5
�4
OF T19
NOTICE AND CALL OF SPECIAL MEETING
OF THE LA QUINITA REDEVELOPMENT AGENCY
TO THE MEMBERS OF THE REDEVELOPMENT AGENCY OF THE CITY OF LA
QUINTA AND TO THE CITY CLERIC:
NOTICE IS HEREBY GIVEN that a special meeting of the Redevelopment
Agency of the City of La Quinta is hereby called to be held on November 21, 2006,
at 2:00 p.m., at the City Council Chambers, 78-495 Calle Tampico, La Quinta.
Dated:
LEE M. SBORNE
Chairman
Attest:
VERONICA J. MONTECINO, CMC
City Clerk:
DECLARATION OF POSTING
I, Veronica J. Montecino, City Clerk of the City of La Quinta, do hereby declare
that the foregoing agenda for the Special La Quinta Redevelopment Agency
meeting of November 21, 2006, was posted on the outside entry to the Council
Charriber at 78-495 Calle Tampico and on the bulletin boards at 51-321 Avenida
Bermudas and 78-630 Highway 111 on November 17, 2006.
DATED: -November 17, 2006
Veronica J. Montec(no, City Clerk
City of La Quinta, California
Redevelopment Agency Agenda 1 November 21, 2006
e4 4 4 adefij
Redevelopment Agency agendas are
available on the City' web page
@ www.la-quinta.org
REDEVELOPMENT AGENCY
AGENDA
CITY COUNCIL CHAMBERS
78-495 Calle Tampico
La Quinta, California 92253
Special Meeting
TUESDAY, NOVEMBER 21, 2006 - 2:00 P.M.
Beginning Resolution No. RA 2006-01 5
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.
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 acquisition
of real property is considered.
1. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR, THOMAS
P. GENOVESE, PURSUANT TO GOVERNMENT CODE SECTION 54956.8
CCNCERNING 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: LDD SILVERROCK, LLC, THEODORE
LENNON.
Redevelopment Agency Agenda 1 November 21, 2006
RECESS TO CLOSED SESSION
RECONVENE SPECIAL MEETING
ADJOURN SPECIAL. MEETING
Adjourn to the regularly scheduled meeting of the Redevelopment Agency to be
held on November 21, 2006, commencing with closed session at 3:00 p.m. and
open session at 4:00 p.m. in the City Council Chambers, 78-495 Calle Tampico,
La Quinta, CA 92253.
REGULAR MEETING AT 4:00 P.M..
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.
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 acquisition
of real property is considered.
1. CONFERENCE WITH THE 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 IDENTIFIED AS:
600-030-002, AND -003. PROPERTY OWNERS/NEGOTIATORS: SUSAN
HANCOCK AND DENNIS & STEPHANIE FOUNTAIN.
RECESS TO CLOSED SESSION
sA
Redevelopment Agency Agenda 2 November 21, 2006
RECONVENE AT 4:00 P.M.
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.
CONFIRMATION OF AGENDA
APPROVAL OF MINUTES
1. APPROVAL OF MINUTES OF NOVEMBER 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 NOVEMBER 21, 2006.
2. RECEIVE AND FILE THE TREASURER'S REPORT DATED SEPTEMBER 30,
2006.
3. RECEIVE AND FILE THE REVENUE & EXPENDITURES REPORT DATED
SEPTEMBER 30, 2006.
4. APPROVAL OF THE SEPARATELY ISSUED LA QUINTA REDEVELOPMENT
AGENCY ANNUAL AUDITED FINANCIAL STATEMENTS FOR THE YEAR
ENDED JUNE 30, 2006.
5. APPROVAL OF APPROPRIATION OF FUNDS FROM RDA PROJECT AREA
NO. 1 FOR AVENUE 52 STORM DRAIN IMPROVEMENTS, PROJECT NO.
2005-10.
6. APPROVAL OF AN AMENDMENT TO, AND ASSIGNMENT OF, THE
EXCLUSIVE NEGOTIATION AGREEMENT BY AND BETWEEN DDC DESERT
DEVELOPMENT, INC. AND THE LA QUINTA REDEVELOPMENT AGENCY
FOR CERTAIN DEVELOPABLE PARCELS WITHIN SilverRock RESORT.
Redevelopment Agency Agenda 3 November 21, 2006
BUSINESS SESSION — NONE
STUDY SESSION — NONE
CHAIR AND BOARD MEMBERS' ITEMS — NONE
PUBLIC HEARINGS
For all Public Hearings on the agenda, a completed "request to speak" form must
be filed with the City Clerk prior to consideration of that item.
1. JOINT PUBLIC HEARING BETWEEN THE CITY COUNCIL AND
REDEVELOPMENT AGENCY FOR CONSIDERATION OF A PROPOSED
DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE LA
QUINTA REDEVELOPMENT AGENCY AND LDD SILVERROCK, LLC FOR THE
SALE AND DEVELOPMENT OF 52 ACRES OF AGENCY PROPERTY
LOCATED SOUTHWEST OF THE INTERSECTION OF JEFFERSON STREET
AND AVENUE 52 (SILVERROCK RESORT) IN THE LA QUINTA PROJECT
AREA NO. 1.
A. RESOLUTION ACTION
ADJOURNMENT
Adjourn to a regularly scheduled meeting of the Redevelopment Agency to be held
on December 5, 2006, commencing with closed session at 3:00 p.m. and open
session at 4:00 p.m. in the City Council Chambers, 78-495 Calle Tampico,
La Quinta, CA 92253.
DECLARATION OF POSTING
I, Veronica Montecino, City Clerk of the City of La Quinta, do hereby declare that
the foregoing agenda for the La Quinta Redevelopment Agency meeting of
November 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 111, on November 17, 2006.
DATED: November 17, 2006
VERONICA J.'MONTECINO, City Clerk
City of La Quinta, California
Redevelopment Agency Agenda 4 November 21, 2006
or
AGENDA CATEGORY:
JNCIL/RDA MEETING DATE: November 21, 2006 /
CONSENT CALENDAR
M TITLE:
nand Register Dated November 21, 2006
COMMENDATION:
recommended the Redevelopment Agency Board:
STUDY SESSION
PUBLIC HEARING
Receive and File the Demand Register Dated Nov. 21, 2006 of which $268,843.09
represents Redevelopment Agency Expenditures.
3ASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA
cef� 4 44P Qu&raj
COUNCIL/RDA MEETING DATE: November 21, 2006
ITEM TITLE: Receive and File Transmittal of
Treasurer's Report dated September 30, 2006
RECOMMENDATION:
It is recommended the Redevelopment Agency Board:
Receive and file.
AGENDA CATEGORY:
BUSINESS SESSION: �j
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
PLEASE SEE RELATED BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA
ceit!t aF 44umrw
COUNCIL/RDA MEETING DATE: November 21, 2006
ITEM TITLE: Receive and File Transmittal of Revenue
and Expenditure Report dated September 30, 2006
RECOMMENDATION:
Receive and File
BACKGROUND AND OVERVIEW:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Transmittal of the September 30, 2006 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, September 30, 2006
LA OUINTA 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 Increnent
Allocated Interest
Nan Allocated Interest
Miscellaneous revenue
Non Allocated Interest
LQRP-Rent Revenue
Home Sales Proceeds
Sale of Land
Sewer Subsidy Reimbursements
Re:habilitaJon Loan Repayments
2nd Trust Deed Repayment
Transfer In
TOTAL LOW/MOD TAX
07101/2006 - 09/30/2006 REMAINING %
BUDGET RECEIVED BUDGET RECEIVED
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
8,915,100.00
195,929.36
8,719,170.64
2.200%
333,300.00
100,526.05
232,773.95
30.160%
0.00
675.85
(675.85)
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
252,000.00
71,902.42
180,097.58
28.530%
480.000.00
248,910.80
231,089.20
51.860%
0.00
0.00
0.00
0.000%
C.00
13,030.27
(13,030.27)
0.000%
0.00
0.00
0.00
0.000%
0.00
446,775.90
(446,775.90)
0.000%
140,000.00
100 000.00
40,000.00
71.430%
10,120,400.00
1,177,750.65
8,942,649.35
11.640%
DEBT SERVICE FUND:
Taut Increment
35,430,900.00
783,717.47
34,647,182.53
2.210%
Allocated Interest
93,100.00
154,542.84
(61,442.84)
166.000%
Non Allocated Interest
0.00
0.00
0.00
0.000%
Interst - County Loan
0.00
0.00
0.00
0.000%
Interest Advance Proceeds
0.00
0.00
0.00
0.000%
Transfers In
4,448,304.00
2,500,930.98
1,947,373.02
56.220%
TOTAL DEBT SERVICE
39,972,304.00
3,439,191.29
36,533,112.71
8.600%
CAPITAL IMPROVEMENT FUND - NON-TAXABLE
Pooled Cash Allocated Interest
12,500.00
58.777.44
(46,277.44)
470.220%
Non Allocated Interest
500.000.00
246,113.27
253,886.73
49.220%
Litigation Settlement Revenue
0.00
0.00
0.00
0.000%
Loan Proceeds
0.00
0.00
0.00
0.000%
Rental income
0.00
0.00
0.00
0.000%
Transfers In
2,500,000.00
0.00
2,500,000.00
0.000%
TOTAL CAPITAL IMPROVEMENT
3,012,500.00
304,890.71
2.707,609.29
10.1201/0
CAPITAL IMPROVEMENT FUND - TAXABLE
Pooled Cash Allocated Interest
0.00
0.00
0.00
0,000%
Non Allocated Interest
0.00
0.00
0.00
0.000%
Litigation Settlement Revenue
0.00
0.00
0.00
0.000%
Bond proceeds
0.00
0.00
0.00
0.000%
Rental Income
0.00
0.00
0.00
0.000%
Transfers In
0.00
0.00
0.00
0.000%
TOTAL CAPITAL IMPROVEMENT
0.00
0.00
0.00
0.000%
LA QUINTA REDEVELOPMENT AGENCY 0710112006 . 09/3012006
REMAINING
EXPEND7URESUMMARY
BUDGET
EXPENDITURES
ENCUMBERED
BUDGET
PROJECT AREA NQ Z
LOW/MODERATE BOND FUND
PERSONNEL
0.00
000
000
0.00
SERVICES
0.00
0.00
000
0.00
R=IMBURSEMENT TO GEN
0.00
000
000
0.00
HOUSING PROJECTS
0.00
0.00
000
0.00
TRANSFERS OUT
0.00
0.00
0.00
0.00
TOTAL LOW/MOD BOND
0. 0
0.00
0.00
O O
LOW/MODERATE TAX FUND:
PERSONNEL
4,900.00
1,703.80
0.00
3,196.20
SERVICES
368,881.00
32,538.41
0.00
336,342.59
BALDING HORIZONS
250,000.00
0.00
0,00
250,000.00
LQ RENTAL PROGRAM
200,000.00
88,776.41
0.00
111,223.59
2nd TRUST DEED PROGRA
500,000.00
0.00
0.00
500,000.00
LANDACQUISITION
8,800,000.00
100,000.00
0.00
8.700.000.00
FORECLOSURE
150,000.00
0.00
000
150.000.00
REIMBURSEMENT TO GEN
484,12700
121,031.43
000
363,09557
TRANSFERS OUT
4,448,304.00
2,500,930.98
000
1,947,302 73
TOTAL LOW/MOD TAX
21 . 0
2, 3
0
12, 2
DEBT SERVICE FUND:
SERVICES
457,300.00
6.240.00
000
451,06000
BOND PRINCIPAL
2,640,000.00
2,640.000.00
0.00
0.00
BOND INTEREST
7,658.900.00
3,867,592.13
0,00
3.791.307.87
INTEREST CITY ADVANCE
1.020,000.00
255,000.00
0.00
765,000.00
PASS THROUGH PAYMENT
17,108,646.00
448,363.64
0.00
16.660,282.36
ERAF SHIFT
0.00
0.00
0.00
000
TRANSFERS OUT
6,608,515.00
2,800,930.98
0.00
4,007,584.02
TOTAL DEBT SERVICE
3 , ,36 .0
,8 8,
0.00
2
CAPITAL IMPROVEMENT FUND:
PERSONNEL
4,900.00
1,703.80
000
3,196.20
SERVICES
541,710.00
134,459.05
0.00
407,25095
LAND ACQUISITION
0.00
0.00
000
0.00
ASSESSMENT DISTRICT
0.00
0.00
000
0.00
ADVERTISING -ECONOMIC
0.00
0.00
0.00
0.00
ECONOMIC DEVELOPMEN
0.00
0.00
0.00
0.00
EOND ISSUANCE COSTS
0.00
0.00
0.00
0.00
CAPITAL -BUILDING
0.00
0.00
0.00
0.00
REIMBURSEMENT TO GEN
213,016.00
53,253.99
000
159.762.01
TRANSFERS OUT
22,058,910.00
117,689.80
0.00
21,941,220.20
TOTAL CAPITAL IMPROVEMENT
22,818,536.00
,106.
2, 42
CAPITAL IMPROVEMENT FUND/TAXABLE BOND
EOND ISSUANCE COSTS
000
0.00
000
0.00
TRANSFERS OUT
(42 807.00)
0.00
0.00
(4280.00)
TOTAL CAPITAL IMPROVEMENT
2 807.G
0.00
000
(42!9017 0u)
LA QUINTA REDEVELOPMENT AGENCY
REVENUE SUMMARY
PROJECT AREA NO.2:
LOW/MODERATE BOND FUVD:
Allocated Interest
Nan Allocated Interest
Bond proceeds (net)
Transfer In
TOTAL LOWIMOD BOND
LOWIMODERATE TAX FUND:
Tax Increment
Allocated nterest
Non Allocated Interest
Developer funding
Vista Dunes MHP Rental Rev
2nd Trust Deed Repayment
ERAF Shin - Interest
Sale of Land
Transfer I i
TOTAL LOW/MOD TAX
2004 LOWIMODERATE BOND FUND:
Allocated Interest
Home Sale Proceeds
Non Allocated Interest
Transfer In
TOTAL LOWIMOD BOND
DEBT SERVICE FUND:
Tax Increment
Allocated Interest
Non Allocated Interest
Interest Advance Proceeds
Transfer In
TOTAL DEBT SERVICE
CAPITAL IMPROVEMENT FUND:
Allocated Interest
Non Allocated Interest
Developer Agreement
Transfers In
TOTAL CAPITAL IMPROVEMENT
07101/2006 - 09/30/2006 REMAINING %
BUDGET RECEIVED BUDGET RECEIVED
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
4,870,400.00
110,888.93
4,759,511.07
2.280%
275,300.00
95,993.28
179,306.72
34.870%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
59.409.08
(59,409.08)
0.000%
0.00
0.00
0.00
0.000%
13,994,301.00
0.00
13,994,301.00
0.000%
0.00
0.00
0.00
0.000%
19,140,001.00
266,291.29
18,873.709.71
1.390%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
2,000,000.00
822,065.72
1,177,934.28
41.100%
0.00
0.00
0.00
0.000%
2,000,000.00
822,065.72
1,177,934.28
41.100%
19,658,600.00
443.555.71
19,215,044.29
2.260%
273,900.00
81,965.75
191.934.25
29.930%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
1,954,642.00
1,231,801.83
722,840.17
63.020%
21,887,142.00
1,757,323.29
20,129,818.71
8.030%
105,600.00
25,649.11
79,950.89
24.290%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
105.600.00
25,649.11
79,950.89
24.290%
LA QUINTA REDEVELOPMENT AGENCY 07101/2006 - 09/30/2006 REMAINING
EXPENDITURE SUMMARY BUDGET EXPENDITURES ENCUMBERED BUDGET
PROJECT AREA NO.2:
LOW/MODERATE BOND FJND
2nd TRUST DEEDS
0.00
000
0.00
000
LAND
0.00
0.00
0.00
0.00
BOND ISSUANCE COSTS
0.00
0.00
0.00
0.00
TRANSFERS OUT
0.00
0.00
0.00
0.00
TOTAL LOWIMOD BOND
0.00
0.00
0.00
0.00
LOW/MODERATE TAX FUND:
PERSONNEL
2,900.00
1,031.08
0.00
1,868.92
SERVICES
324,111.00
28,211.90
0.00
295,899.10
2ND TRUST DEEDS
0.00
0.00
0.00
0.00
FORECLOSURE ACQUISITI
150,000.00
000
0.00
150,000.00
REIMBURSEMENT TO GEN
264,523.00
66.130.41
0.00
198,392.59
TRANSFERS OUT
1,993,097.00
1,231,901.83
0.00
761,195.17
TOTAL LOW/MOD TAX
3 ,631.00
1,327,275 22
0.00
1,407,355.78
2004 LOWIMODERATE BOND FUND
HOUSING PROGRAMS
6,283.000.00
443,000.00
0.00
5,840.000.00
LAND
0.00
0.00
0.00
0.00
TRANSFERS OUT
53,091,795.00
1,275,226.34
0.00
51,816,568.66
TOTAL LOW/MOD BOND
9,3 4, 9 .0
1,718,226.34
0.00
57,656,568.66
DEBT SERVICE FUND:
SERVICES
176,10000
0.00
000
176,10000
BOND PRINCIPAL
205,000.00
105,000.00
0.00
100,000.00
BOND INTEREST
314,785.00
158,521.25
000
156,263 75
INTEREST CITY ADVANCE
1,000,000.00
249,999.94
0.00
750,000.06
PASS THROUGH PAYMENT
16,419,465.00
13,109 20
000
16,406,355 80
TRANSFERS OUT
1,954,642.00
1,231,801 83
0.00
722,840.17
TOTAL DEBT SERVICE
2 U,069,99 .0
1,7 ,4 2.22
0.00
18,311,559.78
CAPITAL IMPROVEMENT FUND:
PERSONNEL
2,900.00
1,030.32
0.00
1,869.68
SERVICES
133,043.00
6.571.50
000
126,471.50
ADVERTISING -ECONOMIC
0.00
0.00
0.00
0.00
ECONOMIC DEVELOPMEN
0.00
0.00
0.00
0.00
REIMBURSEMENT TO GEN
36,534.00
9,133.17
0.00
27,400.83
TRANSFERS OUT
197,606.00
174,060.00
0.00
23,54600
TOTAL CAPITAL IMPROVEMENT
370,083.00
0.00
179,288.Ul
S 3-
T4hf 4 4 QUM&
COUNCIL/RDA MEETING DATE: November 21, 2006
ITEM TITLE: Approval of the Separately Issued
La Quinta Redevelopment Agency Annual Audited
Financial Statements for the Year Ended June 30, 2006
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDATION:
Approve, receive and file the Annual Audited Financial Statement for the year ended
June 30, 2006 (Attachment 1).
FISCAL IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
At the end of every fiscal year, the Redevelopment Agency prepares an audited
financial report.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Redevelopment Agency include:
1. Approve, receive and file the Annual Audited Financial Statement for the year
ended June 30, 2006; or
2. Do not approve, receive and file the Annual Audited Financial Statement for the
year ended June 30, 2006; or
3. Provide staff with alternative direction.
Respectfully submitted,
John M. Falconer, Finance Director
Attachment: 1.
Approved for submission by:
Thomas P. Genovese, Executive Director
Annual Audited Financial Statement for the year ended June 30,
2006
' LA QUINTA REDEVELOPMENT AGENCY
' Financial Statements and
Supplemental Data
' Year ended June 30, 2006
(with Independent Auditors' Report Thereon)
1
1
11
1
1
1
(This page, intentionally left blank)
LA QUINTA REDEVELOPMENT AGENCY
' Financial Statements and Supplemental Data
Year ended June 30, 2006
' TABLE OF CONTENTS
Page
' Independent Auditors' Report I
Basic Financial Statements:
Government -wide Financial Statements:
'
Statement of Net Assets
3
'
Statement of Activities
5
Fund Financial Statements:
Governmental Funds:
Balance Sheet
6
Reconciliation of the Balance Sheet of Governmental Funds to the
Statement of Net Assets
9
'
Statement of Revenues, Expenditures and Changes in Fund Balances
10
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances to the Statement of Activities
12
Notes to the Basic Financial Statements
13
Required Supplementary Information:
Schedule of Revenues, Expenditures, and Changes in Fund Balances —
Budget and Actual:
'
Low/Moderate Income Housing Fund — PA No. 1
38
Low/Moderate Income Housing Fund — PA No. 2
39
'
Notes to Required Supplementary Information
40
Report on Compliance and Other Matters and on Internal Control Over Financial
Reporting Based on an Audit of Financial Statements Performed in Accordance
'
with Government Auditing Standards
41
1-1
(This page intentionally left blank)
Mayer Hoffman McCann P.C.
An Independent CPA Firm
Conrad Government Services Division
2301 Dupont Drive, Suite 200
'
Irvine, California 92612
949-474-2020 ph
949-263-5520 &
www.mhm-pe.com
Board of Directors
La Quinta Redevelopment Agency
1
La Quinta, California
' INDEPENDENT AUDITORS' REPORT
We have audited the accompanying financial statements of the governmental activities and each
major fund of the La Quinta Redevelopment Agency, a component unit of the City of La Quinta,
California as of and for the year ended June 30, 2006, which collectively comprise the Agency's
' basic financial statements as listed in the table of contents. These basic financial statements are
the responsibility of the management of the La Quinta Redevelopment Agency. Our
responsibility is to express an opinion on these financial statements based on our audit. The prior
' year summarized comparative financial information has been derived from the Agency's 2005
financial statements which were audited by Conrad and Associates, L.L.P., who merged with
Mayer Hoffman McCann P.C. as of January 1, 2006, and whose report dated August 18, 2005
expressed unqualified opinions on the respective financial statements of the governmental
' activities and each major fund.
We conducted our audit in accordance with auditing standards generally accepted in the United
' States of America and Government Auditing Standards issued by the Comptroller General of the
United States. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the basic financial statements are free of material misstatement. An
' audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
basic financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of the governmental activities and each major fund of the La Quinta
Redevelopment Agency at June 30, 2006, and the results of its operations for the year then
ended, in conformity with accounting principles generally accepted in the United States of
America.
The La Quinta Redevelopment Agency has not presented Management's Discussion and
Analysis that the Governmental Accounting Standards Board has determined is necessary to
supplement, although not required to be part of, the basic financial statements.
The information identified in the accompanying table of contents as required supplementary
information is not a required part of the basic financial statements but is supplementary
' information required by the Governmental Accounting Standards Board. We have applied certain
limited procedures, which consisted principally of inquiries of management regarding the
methods of measurement and presentation of the supplementary information. However, we did
not audit the information and express no opinion on it.
1
Board of Directors
La Quinta Redevelopment Agency
Page Two
Our audit was conducted for the purpose of forming opinions on the financial statements that '
collectively comprise the basic financial statements. The fund financial statements included in
supplementary information are presented for purposes. of additional analysis and are not a
required part of the basic financial statements. The fund financial statements have been
subjected to the auditing procedures applied in the audit of the basic financial statements and, in
our opinion, are fairly stated in all material respects in relation to the basic financial statements
taken as a whole. 1
In accordance with Government Auditing Standards, we have also issued a report dated August
18, 2006 on our consideration of the Agency's internal control over financial reporting and our
tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements,
and other matters. The purpose of that report is to describe the scope of our testing of internal
control over financial reporting and compliance and the results of that testing, and not to provide
an opinion on the internal control over financial reporting or on compliance.
Irvine, California
August 18, 2006
1
11
11
0
0
I
2
LA QUINTA REDEVELOPMENT AGENCY
Statement of Net Assets
'
June 30, 2006
Governmental Activities
2006
2005
'
Assets:
Cash and investments (note 2)
$ 57,356,384
44,543,631
'
Accounts receivable
202,305
143,649
Prepaid items
7,987
-
'
Interest receivable
Notes receivable (note 3)
241,896
12,974,945
270,174
12,858,098
Deposits
-
1110
Due from other governments
1,280,300
637,129
'
Advances to the City of La Quinta (note 4)
5,365,097
7,061,027
Restricted assets:
'
Cash and investments with fiscal agent (note 2)
78,480,843
85,970,211
Capital assets (note 5):
Land
47,566,600
52,283,520
Other capital assets, net
354,667
440,000
Total assets
203,831,024
204,208,549
'
Liabilities:
'
Accounts payable
Interest payable
237,385
2,684,176
134,918
2,732,639
Deposits payable
47,489
46,499
'
Due to other governments
874,465
Due to the City of La Quinta
3,394,775
Noncurrent liabilities (notes 7 to 12):
'
Due within one year
5,120,449
4,175,636
Due in more than one year
255,243,717
269,587,349
'
Total liabilities
264,207,681
280,071,816
Net assets:
'
Invested in capital assets, net of related debt
-
-
Restricted for:
Low moderate housing
86,949,361
86,949,361
'
Capital projects
32,074,429
32,074,429
Unrestricted
(179,400,447)
(194,887,057)
'
Total net assets
$ (60,376,657)
(75,863,267)
' See accompanying notes to the basic financial statements.
1 3
(This page intentionally left blank)
4
LA QUINTA REDEVELOPMENT AGENCY
Statement of Activities
Year ended June 30, 2006
Program Revenues
Operating Capital
Charges for Contributions Contributions Governmental Activities
Expenses Services and Grants and Grants 2006 2005
Governmental activities:
Planning and
development
Low and moderate
housing
Interest expense
Total governmental
activities $ 26,428,433 4,906,319
General revenues:
Taxes:
Property taxes
Investment income
Rental income
Miscellaneous revenues
$ 11,183,919 -
4,538,525 4,906,319
10,705,989
Total general revenues
Change in net assets
Net assets (deficit) at beginning of year
Net assets (deficit) at end of year
(11,183,919) (37,334,379)
367,794 (2,625,010)
(10,705,989) (10,878,054)
(21,522,114) (50,837,443)
34,386,827 25,656,998
2,012,145 851,103
299,525 520,243
310,227 12,392
37,008,724 27,040,736
15,486,610 (23,796,707)
(75,863,267) (52,066,560)
$ (60,376,657) 75( 863,26�
See accompanying notes to the basic financial statements.
5
LA QUINTA REDEVELOPMENT AGENCY
Governmental Funds - Balance Sheet
June 30, 2006
Special Revenue Funds
Debt Service Funds
Low/Moderate
Low/Moderate
Redevelopment
Redevelopment
Income Housing -
Income Housing -
Agency -
Agency -
Assets
PA No. 1
PA No. 2
PA No. I
PA No. 2
Cash and investments
$ 12,407,390
11,978,069
21,154,515
9,082,604
Cash and investments with fiscal agent
-
-
427
18
Accounts receivable
132,905
8,500
-
-
Prepaid items
2,488
1,506
-
-
Interest receivable
49,755
50,366
81,502
50,531
Notes receivable
3,474,945
9,500,000
-
-
Deposits
-
-
-
Due from other governments
152,908
103,152
611,633
412,607
Due from other funds (note 15)
-
-
-
1,765,531
Advances to the City of La Quinta
Total assets
$ 16,220,391
21,641,593
21,848,077
11,311,291
Liabilities and Fund Balances
Liabilities:
Accounts payable
$ 36,656
20,444
-
Deferred revenue
1,362,348
9,500,000
Deposits payable
19,654
-
- .
Due to other governments
-
298,173
576,292
Due to other funds (note 15)
-
-
Due to the City of La Quinta
-
-
Total liabilities
1,418,658
9,520,444
298,173
576,292
Fund balances:
Reserved for:
Bond projects
-
-
Prepaid items
2,488
1,506
Notes receivable
2,112,597
-
Deposits
-
Advances to the City of La Quinta
-
-
Unreserved, reported in:
Special revenue funds
12,686,648
12,119,643
-
Debt service funds
-
-
21,549,904
10,734,999
Capital projects funds
-
-
_
_
Total fund balances
14,801,733
12,121,149
21,549,904
10,734,999
Total liabilities and fund balances
$ 16,220,391
21,641,593
21,848,077
11,311,291
See accompanying notes to the basic financial statements.
6
Capital Projects Funds
Redevelopment
Redevelopment
2004
Agency -
Agency -
Low/Mod
Totals
PA No. 1
PA No. 2
Bond
2006
2005
928,957
1,805,387
-
57,356,922
44,543,631
19,864,230
58,615,630
78,480,305
85,970,211
-
60,900
-
202,305
143,649
2,488
1,505
7,987
-
1,889
7,853
241,896
270,174
-
12,974,945
12,858,098
-
1,110
1,280,300
637,129
-
-
1,765,531
-
4,385,127
979,970
5,365,097
7,061,027
25,182,691
2,855,615
58,615,630
157,675,288
151,485,029
97,757 79,350 3,178 237,385 134,918
- - - 10,862,348 10,740,225
27,835 47,489 46,499
- - 874,465 -
1,765,531 1,765,531 -
- 3,394,775
97,757 107,185 1,768,709 13,787,218 14,316,417
19,864,230
-
58,615,630
78,479,860
85,970,111
2,488
1,505
-
7,987
-
-
2,112,597
2,117,873
-
-
-
-
1,110
4,385,127
979,970
-
5,365,097
7,061,027
-
-
-
24,806,291
15,995,452
32,284,903
28,885,047
833,089
1,766,955
(1,768,709)
831,335
(2,862,008)
25,084,934
2,748,430
56,846,921
143,888,070
137,168,612
25,182,691
2,855,615
58,615,630
157,675,288
151,485,029
7
(This page intentionally left blank)
s
LA QUINTA REDEVELOPMENT AGENCY
Governmental Funds
' Reconcilation of the Balance Sheet of Governmental Funds to
the Statement of Net Assets
June 30, 2006
'
Fund balances of governmental funds
$ 143,888,070
Amounts reported for governmental activities in the statement of
net assets are different because:
'
Capital assets, net of depreciation, have not been included
as financial resources in governmental fund activity.
Capital assets
48,126,600
'
Accumulated depreciation
(205,333)
Long term debt has not been included in the governmental fund activity.
(260,364,166)
Accrued interest payable for the current portion of interest due on
long term debt has not been reported in the governmental funds.
(2,684,176)
'
Revenues that are measurable but not available. Amounts are recorded
'
as deferred revenue under the modified accrual basis of accounting.
10,862,348
Net assets (deficit) of governmental activities
$ (6Q376,657)
L
1
1
1 See accompanying notes to the basic financial statements.
1 9
LA QUINTA REDEVELOPMENT AGENCY
Governmental Funds
Statement of Revenues, Expenditures and Changes in Fund Balances
Year ended June 30, 2006
Revenues:
Taxes
Investment income
Rental income
Loan repayments
Miscellaneous revenues
Total revenues
Expenditures:
Current:
Planning and development
Debt service:
Principal
Interest and fiscal charges
Payments under pass -
through obligations
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Other financing sources (uses):
Proceeds from advances
Proceeds from sale of capital assets
Transfers in (note 14)
Transfers out (note 14)
Transfers from (to) the City of La Quints,
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Special Revenue Funds
Debt Service Funds
Low/Moderate Low/Moderate
Redevelopment
Redevelopment
Income Housing - Income Housing -
Agency -
Agency -
PA No. 1 PA No. 2
PA No. 1
PA No. 2
$ 9,126,550
334,912
284,205
1,320,719
310,227
11,376,613
2,050,445
4,962,474 36,506,201 19,849,893
341,917 652,351 459,695
15,320 - -
301,131
5,620,842 37,158,552 20,309,588
769,275
2,050,445 769,275
300,248
9,076,678
8,930,643
19,309,927
37,617,496
154,439
12,891,970
1,524,272
16,748,364
31,319,045
9,326,168. 4,851,567 (458,944) (11,009,457)
-
3,835,702
384,812
-
3,945,802
(3,945,802)
(1,706,754)
-
(101,544)
(4,101,737)
(3,560,990)
(1,808,298)
3,679,767
5,765,178
3,043,269
3,220,823
9,036,555
9,077,880
18,329,081
$ 14,801,733
12,121,149
21,549,904
See accompanying notes to the basic financial statements.
10
4,896,590
7,998,654
(1,706,754)
11,188,490
179,033
10,555,966
10,734,999
1
1
1
1
Capital Projects Funds
Redevelopment Redevelopment 2004
Agency -
Agency -
Low/Mod
Totals
PA No. 1
PA No. 2
Bond
2006
2005
-
-
-
70,445,118
51,413,319
1,038,028
101,147
2,246,441
5,174,491
2,687,348
-
-
-
299,525
520,243
1,621,850
2,381,602
-
-
-
310,227
12,392
1,038,028
101,147
2,246,441
77,851,211
57,014,904
666,017
205,708
720,227
4,866,359
4,838,374
-
-
-
21,968,648
3,404,964
10,454,915
10,750,792
-
-
-
36,058,291
25,756,321
666,017
205,708
720,227
73,348,213
44,750,451
372,011
(104,561)
1,526,214
4,502,998
12,264,453
273,000
-
-
9,005,292
2,940,487
-
7,824,584
-
8,209,396
8,566,295
-
-
11,944,456
6,620,386
(6,291,900)
-
(11,944,456)
(6,620,386)
(6,001,673)
(312,526)
(2,773,994)
(14,998,228)
(31,702,384)
(5,728,673)
1,220,158
(2,773,994)
2,216,460
(20,195,602)
(5,356,662)
1,115,597
(1,247,780)
6,719,458
(7,931,149)
30,441,596
1,632,833
58,094,701
137,168,612
145,099,761
25,084,934
2,748,430
56,846,921
143,888,070
137,168,612
11
LA QUINfA REDEVELOPMENT AGENCY
Reconcilation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
Year ended June 30, 2006
Net changes in fund balances - total governmental funds
Amounts reported for governmental activities in the statement of
activities is different because:
$ 6,719,458 1
Governmental funds report capital outlay as expenditures. However, in the
statement of activities, the cost of those assets is allocated over their estimated
useful lives as depreciation expense. This is the amount by which capital
outlays exceeded depreciation in the current period. (4,802,253)
Proceeds from debt is reported as other financing sources in the governmental
funds. The issuance of debt increases liabilities in the statement of net
assets, but does not result in an increase in the statement of activities. (9,005,292)
Repayment of bond and loan principal is an expenditure in the governmental funds,
but the repayment reduces long-term liabilities in the statement of net assets.
Principal repayment 22,703,648
Bond issuance costs are recorded as an expenditure in the governmental
funds while full accrual requires the amortization of these costs over the life
of the debt. 1 (299,537)
The statement of net assets includes accrued interest on long term debt. 48,463
Revenues that are measurable but not available. Amounts are not recorded
as revenues under the modified accrual basis of accounting. 122,123
Changes in net assets of governmental activities
See accompanying notes to the basic financial statements.
$ 15,486,610
12
LA QUINTA REDEVELOPMENT AGENCY
' Notes to the Basic Financial Statements
Year ended June 30, 2006
' (1) Summary of Significant Accounting Policies
The following is a summary of the significant accounting policies of the La Quinta
' Redevelopment Agency:
(a) Organization and Tax Increment Financing
Redevelopment Goals and Obiectives
' The general objective of the Redevelopment Plan adopted by the Agency is to
encourage investment in the Redevelopment Project Areas by the private sector.
The Redevelopment Plan provides for the demolition of buildings and
improvements, the relocation of any displaced occupants, and the construction of
' streets, parking facilities, utilities and other public improvements. The
Redevelopment Plan also includes the ability to redevelop land by private enterprise
or public agencies, the rehabilitation of structures, the rehabilitation or construction
1 of single family and low and moderate income housing, and participation by owners
and tenants of properties in the Redevelopment Project.
Redevelopment Project Areas
The Agency has established two redevelopment project areas. On November 29,
1983 the City Council approved and adopted the Redevelopment Plan for the La
' Quinta Redevelopment Project Area No. 1. On May 16, 1989 the City Council
approved and adopted the Redevelopment Plan for the La Quinta Redevelopment
Project Area No.2. These plans provide for the elimination of blight and
deterioration that was found to exist in the project areas.
Tax Increment Financing
' The Law provides a means for financing redevelopment projects based upon an
allocation of taxes collected within a redevelopment project. The assessed valuation
of a redevelopment project last equalized prior to adoption of a redevelopment plan
' or amendment to such redevelopment plan, or "base roll', is established and, except
for any period during which the assessed valuation drops below the base year level,
the taxing bodies, thereafter, receive the taxes produced by the levy of the current
' tax rate upon the base roll. Taxes collected upon any increase in assessed valuation
over the base roll ("tax increment') are paid and may be pledged by a
redevelopment agency to the repayment of any indebtedness incurred in financing or
refinancing a redevelopment project. Redevelopment agencies themselves have no
' authority to levy property taxes
C'
1
13
LA QUINTA REDEVELOPMENT AGENCY
Notes to. the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
(b) Basis of Accounting and Measurement Focus
The basic financial statements of the Agency are composed of the following:
• Government -wide financial statements
• Fund financial statements
• Notes to the basic financial statements
Government -wide Financial Statements
Government -wide financial statements display information about the reporting
government as a whole, except for its fiduciary activities. These statements include
separate columns for the governmental and business -type activities of the primary
government (including its blended component units), as well as its discreetly
presented component units. The La Quinta Redevelopment Agency has no business -
type activities or discretely presented component units. Eliminations have been
made in the Statement of Activities so that certain allocated expenses are recorded
only once (by the function to which they were allocated). However, general
government expenses have not been allocated as indirect expenses to the various
functions of the Agency.
The accompanying government -wide financial statements for the Agency present
negative net assets because the primary activity of the Agency is to issue debt to
construct infrastructure that will be owned and maintained by the City.
Government -wide financial statements are presented using the economic resources
measurement focus and the accrual basis of accounting. Under the economic
resources measurement focus, all (both current and long-term) economic resources
and obligations of the reporting government are reported in the government -wide
financial statements. Basis of accounting refers to when revenues and expenditures
are recognized in the accounts and reported in the financial statements. Under the
accrual basis of accounting, revenues, expenses, gains, losses, assets, and liabilities
resulting from exchange and exchange -like transactions are recognized when the
exchange takes place. Revenues, expenses, gains, losses, assets, and liabilities
resulting from nonexchange transaction are recognized in accordance with the
requirements of GASB Statement No. 33.
Program revenues include charges for services and payments made by parties
outside of the reporting government's citizenry if that money is restricted to a
particular program. Program revenues are netted with program expenses in the
statement of activities to present the net cost of each program.
14
' LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
1
' (1) Summary of Significant Accounting Policies, (Continued)
Amounts paid to acquire capital assets are capitalized as assets in the government -
wide financial statements, rather than reported as expenditure. Proceeds of long-
term debt are recorded as a liability in the government -wide financial statements,
rather than as other financing source. Amounts paid to reduce long-term
indebtedness of the reporting government are reported as a reduction of the related
liability, rather than as an expenditure.
Fund Financial Statements
' The underlying accounting system of the Agency is organized and operated on the
basis of separate funds, each of which is considered to be a separate accounting
' entity. The operations of each fund are accounted for with a separate set of self -
balancing accounts that comprise its assets, liabilities, fund equity, revenues and
expenditures or expenses, as appropriate. Governmental resources are allocated to
and accounted for in individual funds based upon the purposes for which they are to
' be spent and the means by which spending activities are controlled.
Fund financial statements for the primary government's governmental, proprietary,
and fiduciary funds are presented after the government -wide financial statements.
These statements display information about major funds individually and nonmajor
funds in the aggregate for governmental and enterprise funds. Fiduciary statements
' include financial information for fiduciary funds and similar component units.
Fiduciary funds primarily represent assets held by the Agency in a custodial
capacity for other individuals or organizations. The Agency has no nonmajor funds,
enterprise funds, or fiduciary funds.
' Governmental Funds
' In the fund financial statements, governmental funds and agency funds are presented
using the modifred-accrual basis of accounting. Their revenues are recognized when
they become measurable and available as net current assets. Measurable means that
t the amounts can be estimated, or otherwise determined. Available means that the
amounts were collected during the reporting period or soon enough thereafter to be
available to finance the expenditures accrued for the reporting period. The Agency
uses a sixty day availability period.
1
15
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies. (Continued)
Revenue recognition is subject to the measurable and availability criteria for the
governmental funds in the fund financial statements. Exchange transactions are
recognized as revenues in the period in which they are earned (i.e., the related goods
or services are provided). Locally imposed derived tax revenues are recognized as
revenues in the period in which the underlying exchange transaction upon which
they are based takes place. Imposed non -exchange transactions are recognized as
revenues in the period for which they were imposed. If the period of use is not
specified, they are recognized as revenues when an enforceable legal claim to the
revenues arises or when they are received, whichever occurs first. Government -
mandated and voluntary non -exchange transactions are recognized as revenues
when all applicable eligibility requirements have been met.
In the fund financial statements, governmental funds are presented using the current
financial resources measurement focus. This means that only current assets and
current liabilities are generally included on their balance sheets. The reported fund
balance (net current assets) is considered to be a measure of "available spendable
resources." Governmental fund operating statements present increases (revenues
and other financing sources) and decreases (expenditures and other financing uses)
in net current assets. Accordingly, they are said to present a summary of sources and
uses of "available spendable resources" during a period.
Non -current portions of long-term receivables due to governmental funds are
reported on their balance sheets in spite of their spending measurement focus.
Special reporting treatments are used to indicate, however, that they should not be
considered "available spendable resources," since they do not represent net current
assets. Recognition of governmental fund type revenues represented by noncurrent
receivables are deferred until they become current receivables. Noncurrent portions
of other long-term receivables are offset by fund balance reserve accounts.
Because of their spending measurement focus, expenditure recognition for
governmental fund types excludes amounts represented by noncurrent liabilities.
Since they do not affect net current assets, such long-term amounts are not
recognized as governmental fund type expenditures or fund liabilities.
Amounts expended to acquire capital assets are recorded as expenditures in the year
that resources were expended, rather than as fund assets. The proceeds of long-term
debt are recorded as an other financing source rather than as a fund liability.
Amounts paid to reduce long-term indebtedness are reported as fund expenditures.
When both restricted and unrestricted resources are combined in a fund, expenses
are considered to be paid first from restricted resources, and then from unrestricted
resources.
16
' LA QUINTA REDEVELOPMENT AGENCY
' Notes to the Basic Financial Statements
(Continued)
1
' (1) Summary of Significant Accounting Policies, (Continued)
(c) Major Funds
' The following funds are presented as major funds in the accompanying basic
financial statements:
Special Revenue Low and Moderate Income Housing P.A. No. 1 and No. 2 Funds —
'
To account for the required 20% set aside of property tax increments that is legally
restricted for increasing or improving housing for low and moderate income
'
households.
Debt Service Funds, P.A. No. I and No. 2 — To account for the accumulation of
resources for the payment of debt service for bond principal, interest and trustee
'
fees.
Capital Projects Funds P.A. No. 1 and No. 2 — To account for the bond proceeds,
interest and other funding that will be used for development, planning, construction
and land acquisition.
2004 Low and Moderate Income Housing Fund — To account for the bond proceeds,
1
interest and other funding that will be used for development, planning, construction,
and land acquisition for low and moderate income housing projects.
(d) Cash and Investments
For financial reporting purposes, investments are adjusted to their fair value
whenever the difference between fair value and the carrying amount is material.
Changes in fair value that occur during a fiscal year are recognized as investment
income reported for that fiscal year. Investment income includes interest earnings,
1
changes in fair value, and any gains or losses realized upon the liquidation or sale of
investments.
' (e) Capital Assets
Capital assets (including infrastructure) are recorded at cost where historical records
are available and at an estimated historical cost where no historical records exist.
Contributed fixed assets are valued at their estimated fair market value at the date of
the contribution. Generally, fixed asset purchases in excess of $5,000 are capitalized
if they have an expected useful life of three years or more. Buildings are depreciated
over a useful life of thirty years.
17
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
Capital assets include public domain (infrastructure) general fixed assets consisting
of certain improvements including roads, streets, sidewalks, medians, and storm
drains.
(f) Comparative Data
Comparative total data for the prior year have been presented in the accompanying
financial statements in order to provide an understanding of changes in the
Agency's financial position and operations. However, comparative (i.e.,
presentation of prior year totals by fund type) data have not been presented in each
of the statements since their inclusion would make the statements unduly complex
and difficult to read. Certain minor reclassifications of prior year data have been
made in order to enhance their comparability with current year figures.
(2) Cash and Investments
Cash and investments held by the Agency at June 30, 2006 consisted of the following:
Equity in State of California Local Agency Investment Fund $ 3,738,015
Equity in City cash and investment pool 53,618,369
Total cash and investments held by the Agency �57.356.384
Cash and investments held by fiscal agent at June 30, 2006 consisted of the following:
U.S. Treasury bills $72,853,870
Money market mutual funds 5,626,973
Total cash and investments held by fiscal agent 78.480.843
Investments Authorized by the. California Government Code and the Agency's
Investment Policy
The table below identifies the investment types that are authorized for the Agency by the
California Government Code and the Agency's investment policy. The table also
identifies certain provisions of the California Government Code (or the Agency's
investment policy, if more restrictive) that address interest rate risk, credit risk, and
concentration of credit risk. This table does not address investments of debt proceeds held
by bond trustee that are governed by the provisions of debt agreements of the Agency,
rather than the general provisions of the California Government Code or the Agency's
investment policy.
18
I
' LA QUINTA REDEVELOPMENT AGENCY
' Notes to the Basic Financial Statements
(Continued)
'
(2) Cash and Investments, (Continued)
Authorized
*Maximum
*Maximum
Investment Types By Investment
*Maximum
Percentage
Investment
Authorized by State Law
Policy
Maturi
Of Portfolio
In One Issuer
Local Agency Bonds
No
N/A
N/A
N/A
'
U.S. Treasury Obligations
Yes
5 years
100%
100%
U.S. Agency Securities
Yes
5 years
None
$3 Million
Banker's Acceptances
No
N/A
N/A
N/A
'
Commercial Paper
Yes
90 days
30%
$3 Million
Negotiable Certificates of Deposit
No
N/A
N/A
N/A
Repurchase Agreements
No
N/A
N/A
N/A
'
Reverse Repurchase Agreements
No
N/A
N/A
N/A
Medium -Term Notes
Yes
2 years
15%
$3 Million
Mutual Funds
Yes
N/A
20%
10%
'
Money Market Mutual Funds
Yes
N/A
20%
10%
Mortgage Pass -Through Securities
No
N/A
N/A
N/A
County Pooled Investment Funds
No
N/A
N/A
N/A
Local Agency Investment Fund
Yes
N/A
25%
None
(LAIF)
JPA Pools (other investment pools)
No
N/A
N/A
N/A
'
* Based on state law requirements or investment policy
requirements, whichever is more restrictive.
'
Investments Authorized by Debt Agreements
Investment of debt proceeds held by bond trustee are governed by provisions of the debt
agreements, rather than the general
provisions of
the California Government Code or the
Agency's investment policy. The
table below
identifies the investment
types that are
authorized for investments held
by bond trustee. The
table also identifies certain
provisions of these debt agreements that address interest rate risk, credit risk, and
'
concentration of credit risk.
1
1
I
19
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(2) Cash and Investments, (Continued)
Maximum
Maximum
Authorized
Maximum
Percentage
Investment
Investment Tvoe
Maturity
Allowed
in One Issuer
U.S. Treasury Obligations
None
None
None
U.S. Agency Securities
None
None
None
Banker's Acceptances
360 days
None
None
Commercial Paper
270 days
None
None
Money Market Mutual Funds
N/A
None
None
Negotiable Certificates of Deposit
360 days
None
None
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the
fair value of an investment. Generally, the longer, the maturity of an investment, the
greater the sensitivity of its fair value to changes in market interest rates. One of the ways
that the Agency manages its exposure to interest rate risk is by purchasing a combination
of shorter term and longer term investments and by timing cash flows from maturities so
that a portion of the portfolio is maturing or coming close to maturity evenly over time as
necessary to provide the cash flow and liquidity needed for operations.
Information about the sensitivity of the fair values of the Agency's investments (including
investments held by bond trustee) to market interest rate fluctuations is provided by the
following table that shows the distribution of the Agency's investments by maturity:
Remaining Maturity
(in months)
Total
3 Months 4 to 6
Investment Twe
Amount
Or Less Months
State investment pool
$ 3,738,015
3,738,015 -
Held by bond trustee:
Money market funds
5,626,973
5,626,973 -
U.S. Treasury bills
72,853,870
33,825,670 39,028,200
Total
$82,218,858
4 •190 658 09 28 200
20
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
1
(2) Cash and Investments, (Continued)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its
obligation to the holder of the investment. This is measured by the assignment of a rating
by a nationally recognized statistical rating organization. Presented below is the minimum
rating required by (where applicable) the California Government Code, the Agency's
investment policy, or debt agreements, and the actual rating as of year end for each
investment type.
Minimum Exempt Rating as of Year End
Total Legal From Not
Investment Tyne Amount Rating Disclosure Aa Rated
State investment pool $ 3,738,015 N/A - 3,738,015
Held by bond trustee:
Money market funds 5,626,973 A 5,626,973
U.S. Treasury bills 72,853,870 N/A 72,853,870 -
Total $82,218.858 72 853 70 5 62 3 738
Investments in any one issuer that represent 5% or more of total investments by reporting
unit (major fund, nonmajor funds in the aggregate, etc.) are as follows:
$14,237,795 and $58,615,630 of the cash and investments (held by bond trustee) reported
in Capital Projects Redevelopment Agency — PA No. 1 fund and 2004 Low/Mod Bond
fund, respectively, are held in the form of U.S. Treasury bills maturing between
September 21 and December 21, 2006.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository
financial institution, a government will not be able to recover its deposits or will not be
able to recover collateral securities that are in the possession of an outside party. The
custodial credit risk for investments is the risk that, in the event of the failure of the
counterparty (e.g., broker -dealer) to a transaction, a government will not be able to
recover the value of its investment or collateral securities that are in the possession of
another party. The California Government Code and the Agency's investment policy do
not contain legal or policy requirements that would limit the exposure to custodial credit
risk for deposits or investments, other than the following provision for deposits: The
California Government Code requires that a financial institution secure deposits made by
state or local governmental units by pledging securities in an undivided collateral pool
held by a depository regulated under state law (unless so waived by the governmental
n
1 21
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(2) Cash and Investments, (Continued)
unit). The market value of the pledged securities in the collateral pool must equal at least
110% of the total amount deposited by the public agencies. California law also allows
financial institutions to secure Agency deposits by pledging first trust deed mortgage
notes having a value of 150% of the secured public deposits
Investment in State Investment Pool
The Agency is a voluntary participant in the Local Agency Investment Fund (LAIF) that
is regulated by the California Government Code under the oversight of the Treasurer of
the State of California. The fair value of the Agency's investment in this pool is reported
in the accompanying financial statements at amounts based upon the Agency's pro-rata
share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the
amortized cost of that portfolio). The balance available for withdrawal is based on the
accounting records maintained by LAIF, which are recorded on an amortized cost basis.
(3) Notes Receivable
In September 1994, the Agency sold certain real property to LINC
Housing for $2,112,847. The property was used to construct single-
family homes and rental units to increase the City's supply of low
and moderate income housing. The note bears interest at 6% per
annum and is due in full on June 15, 2029.
In December 2000, the Agency entered into an agreement with
LINC Housing to receive $9,500,000 as a reimbursement for
Agency costs incurred for the construction of infrastructure related
to the development of senior apartments. Payments are due to the
Agency in the amount of annual positive cash flow generated by
the rental of the units. All unpaid principal and interest on the note
are due fifty-five years after the completion of the project. Interest
on the note accrues at 3% per annum.
Other notes receivable
Total notes receivable
Outstanding
Balance at
June 30,2006
$ 3,397,767
9,500,000
77,178
$12.974.945
L�
G�
L
F
II
Ir
'il II
�Ii
22 1
LA QUINTA REDEVELOPMENT AGENCY
' Notes to the Basic Financial Statements
(Continued)
' (4) Advances to the City of La Quinta
The Redevelopment Agency advanced funds to the City of La Quinta to help the City
' meet the cost of developing the public -owned improvements to the La Quinta Community
Park and Civic Center Campus. There is no stipulated repayment date established for the
Agency advances. Interest accrues at the earning rate of the City's Investment Pool funds,
and shall be adjusted quarterly. At June 30, 2006, outstanding Project Area No. 1
' advances were $4,385,127 and Project Area No. 2 advances were $979,970.
(5) Capital Assets
' Capital asset activity for the year ended June 30, 2006 was as follows:
' Balances at Balances at
June 30, 2005 Additions Deletions June 30, 2006
Buildings $ 660,000 10( 0.000) 560,000
' Total cost of depreciable assets 660,000 (100,000) 560,000
' Less accumulated depreciation for:
Buildings (220,000) (22,000) 36,667 2( 05.333)
Net depreciable assets 440,000 (22,000) (63,333) 354,667
Capital assets not depreciated:
Land 52,283,520 2,401,120 (711, 8,040) 47,566,600
Capital assets, net lymam 2 (7,181,373) 47.92L267
1
23
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(6) Property Taxes
Under California law, property taxes are assessed and collected by the counties up to 1%
of assessed value, plus other increases approved by the voters. The property taxes are
recorded initially in a pool, and are then allocated to the cities based on complex
formulas. Accordingly, the City of La Quinta accrues only those taxes that are received
from the County within sixty days after year-end.
Lien date January 1
Levy date July 1
Due dates November 1 and February 1
Collection dates December 10 and April 10
The La Quinta Redevelopment Agency's primary source of revenue comes from property
taxes. Property taxes allocated to the Agency are computed in the following manner:
(a) The assessed valuatiomof all property within the project area is determined on the
date of adoption of the Redevelopment Plan.
(b) Property taxes related to the incremental increase in assessed values after the
adoption of the Redevelopment Plan are allocated to the Agency; all taxes on the
"frozen" assessed valuation of the property are allocated to the City and other
districts.
The Agency has no power to levy and collect taxes and any legislative property tax shift
might reduce the amount of tax revenues that would otherwise be available to pay the
principal of, and interest on, debt. Broadened property tax exemptions could have a
similar effect. Conversely, any increase in the tax rate or assessed valuation, or any
reduction or elimination of present exemptions would increase the amount of tax
revenues that would be available to pay principal and interest on debt.
24
LA QUINTA REDEVELOPMENT AGENCY
' Notes to the Basic Financial Statements
(Continued)
1
'
(7) Long -Term Liabilities
Long-term liability activity for the year ended June 30, 2006 was as follows:
Amounts
Balance at
Balance at
due within
June 30, 2005
Additions
Deletions
June 30, 2006
one veaz
Loans payable to City of La Quinta
'
Financing Authority
$66,323,236
112,038
(554,773)
65,880,501
1,147,286
Project Area No. I:
1994 Tax Allocation Bonds
15,655,000
-
(1,510,000)
14,145,000
1,620,000
'
1998 Tax Allocation Bonds
15,760,000
15,760,000
2001 Tax Allocation Bonds
46,318,906
64,658
-
46,383,564
-
2002 Tax Allocation Bonds
37,410,914
53,670
(585,000)
36,879,584
600,000
'
2003 Tax Allocatiotf Bonds
25,118,839
32,703
(405,000)
24,746,542
420,000
Pass -through agreement payable:
Coachella Valley Unified School District
5,927,263
-
(740,636)
5,186,627
755,449
- Advances from City of La Quinta
13,727,340
4,108,702
(5,836,042)
12,000,000
-
'
Loans payable to City of La Quinta
,.Financing Authority
16,961,867
28,691
(141,881)
16,848,677
293,414
'
Project Area No. 2:
1998 Tax Allocation Bonds
6,230,000
(100,000)
6,130,000
105,000
Due to County of Riverside
1,950,000
-
(100,000)
1,850,000
100,000
'
Advances from City of La Quinta
17,795,380
4,896,590
(12,691,970)
10,000,000
-
Loans payable to City of La Quinta
Financing Authority
4,584,240
7,777
(38,346)
4,553,671
79,300
'
Total long-term liabilities
ZU 762.985
4 3. _44.$22
(22.793_,fi4I�
260.364.166
.I2
1
1
25
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(8) Tax Allocation Bonds
Tax Allocation Refunding Bonds, Series 1994
Tax allocation refunding bonds, Series 1994, in the amount of $26,665,000 were issued
by the Agency to refund the outstanding aggregate principal amount of the Agency's Tax
Allocation Bonds, Series 1989 and 1990. The remaining proceeds were used to finance
certain capital improvements within the La Quinta Redevelopment Project Area No. 1.
Interest rates on the bonds range from 3.80% to 8% and are payable semi-annually on
March 1 and September I of each year until maturity. The interest and principal of the
bonds are payable solely from pledged tax increment revenues. The bonds are not subject
to redemption prior to maturity. There are certain limitations regarding the issuance of
parity debt as further described in the official statement. A portion of the proceeds was
used to obtain a surety agreement to satisfy the bond reserve requirement. The principal
balance of outstanding bonds at June 30, 2006 is $14,145,000.
Tax Allocation Refunding Bonds, Series 1998 - Project Area No 1
Tax allocation refunding bonds, Series 1998, in the amount of $15,760,000 were issued
by the Agency to refund the outstanding aggregate principal amount of the Agency's Tax
Allocation Bonds, Series 1991. The remaining proceeds were used to finance certain
capital improvements within the La Quinta Redevelopment Project Area No. 1.
Interest rates on the bonds range from 5.20% to 5.25% and are payable semi-annually on
March I and September 1 of each year until maturity. The interest and principal of the
bonds are payable from pledged tax increment revenues. There are certain limitations
regarding the issuance of parity debt as further described in the official statement.
Term Bonds maturing September 1, 2028 are subject to mandatory sinking fund
redemption, in part by lot, on September 1, 2013 and on each September 1 thereafter,
through September 1, 2028, at a price equal to the principal amount thereof plus accrued
interest. A portion of the proceeds was used to obtain a surety agreement to satisfy the
bond reserve requirement. The principal balance of outstanding bonds at June 30, 2006 is
$15,760,000.
Tax Allocation Refunding Bonds, Series 1998 - Proiect Area No 2
Tax allocation refunding bonds, Series 1998, in the amount of $6,750,000 were issued by
the Agency to refund the outstanding aggregate principal amount of the Agency's Tax
Allocation Bonds, Series 1992. The remaining proceeds were used to finance certain
capital improvements within the La Quinta Redevelopment Project Area No. 2.
26
' LA QUINTA REDEVELOPMENT AGENCY
' Notes to the Basic Financial Statements
(Continued)
' (8) Tax Allocation Bonds, (Continued)
Interest rates on the bonds range from 3.75% to 5.25% and are payable semi-annually on
' March I and September 1 of each year until maturity. The interest and principal of the
bonds are payable solely from pledged tax increment revenues of Project Area No. 2.
' Term Bonds maturing September 1, 2028 and September 1, 2033 are subject to
mandatory sinking fund redemption, in part by lot, on September 1, 2009 and
September 1, 2019, respectively, and on each September 1 thereafter at a price equal to
the principal amount thereof plus accrued interest. There are certain limitations regarding
' the issuance of parity debt as further described in the official statement. A portion of the
proceeds was used to obtain a surety agreement to satisfy the bond reserve requirement.
The principal balance of outstanding bonds at June 30, 2006 is $6,130,000.
' Tax Allocation Bonds Series 2001 — Project Area No. 1
On August 15, 2001, the Agency issued tax allocation bonds in the amount of
1 $48,000,000 to finance capital projects benefiting the La Quinta Redevelopment Project
Area No. 1. The 2001 tax allocation bonds were issued at a discount of $422,400 and
issuance costs of $1,517,325.
' The bonds consist of $17,280,000 of term bonds that accrue interest at 5.00% and mature
on September 1, 2021 and $30,720,000 of tern bonds that accrue interest at 5.18% and
' mature on September 1, 2031. The interest and principal on the bonds are payable from
pledged tax increment revenues.
A portion of the proceeds were used to obtain a surety agreement to satisfy the bond
' reserve requirement. The principal balance of outstanding bonds at June 30, 2006 is
$46,383,564 ($48,000,000 net of unamortized discount and issuance costs of $1,616,436).
' Tax Allocation Bonds Series 2002 — Proi ect Area No. 1
On June 12, 2002, the Agency issued tax allocation bonds in the amount of $40,000,000
' to finance capital projects benefiting the La Quinta Redevelopment Project Area No. 1.
The 2002 tax allocation bonds were issued at a discount of $360,000 and issuance costs
of $1,250,096.
' The bonds consist of $6,355,000 of serial bonds and $33,645,000 of term bonds. Interest
rates on serial bonds range from 1.75% and 4.00% and are payable semi-annually on
March 1 and September 1 of each year until maturity. Term bonds accrue interest at
' 5.00% and 5.125% and mature on September 1, 2022 and September 1, 2023. The
interest and principal on the bonds are payable from pledged tax increment revenues.
27
'
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(8) Tax Allocation Bonds. (Continued)
A portion of the proceeds were used to obtain a surety agreement to satisfy the bond
reserve requirement. The principal balance of outstanding bonds at June 30, 2006 is
$36,879,584 ($38,275,000 net of unamortized discount and issuance costs of $1,395,416).
Tax Allocation Bonds, Series 2003 — Proiect Area No. 1
On September 1, 2003, the Agency issued tax allocation bonds in the amount of
$26,400,000 to finance capital projects benefiting the La Quints, Redevelopment Project
Area No. 1. The 2003tax allocation bonds were issued at a discount of $277,200
issuance costs of $629,191.
Interest is payable semi-annually on March 1 and September 1 of each year, commencing
March 1, 2004. Interest payments range from 4.24% to 6.44% per annum. The interest
and principal on the bonds are payable from pledged tax increment revenues.
Term bonds maturing on September 1, 2013 through September 1, 2032 are subject to
mandatory redemption from minimum sinking fund payments, in part by lot, on
September 1, 2004, September 1, 2014, and September 1, 2024, respectively, and on each
September 1 thereafter at a redemption price equal to the principal amount thereof plus
accrued interest to the redemption date.
A portion of the proceeds was used to obtain a surety agreement to satisfy the bond
reserve requirement. There are certain limitations regarding the issuance of parity debt as
further described in the official statement. The principal balance of outstanding bonds at
June 30, 2006 is $24,746,542 ($25,605,000 net of unamortized discount and issuance
costs of $858,458).
28
I
[1
[1
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(8) Tax Allocation Bonds, (Continued)
The minimum annual requirements (including sinking fund requirements) to amortize the
Project Area No. 1 and No. 2 tax allocation bonds as of June 30, 2006 are as follows:
June 30:
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017.
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Project Area No. 1
Tax Allocation Bonds
Principal
$ 2,640,000
2,795,000
2,960,000
3,135,000
3,330,000
3,540,000
3,765,000
3,515,000
3,690,000
3,885,000
4,090,000
4,305,000
4,530,000
4,770,000
5,020,000
5,285,000
5,565,000
5,860,000
6,170,000
6,505,000
6,850,000
7,220,000
7,610,000
8,015,000
8,445,000
8,905,000
9,385,000
Interest
7,658,900
7,500,554
7,330,189
7,144,063
6,941,435
6,724,311
6,491,872
6,281,899
6,095,257
5,896,531
5,687,234
5,466,835
5,234,798
4,990,457
4,733,125
4,462,141
4,175,504
3,871,622
3,549,682
3,209,208
2,850,313
2,472,033
2,073,117
1,653,186
1,211,175
745,023
252,852
$141,785,000 124,703,316
29
Project Area No. 2
Tax Allocation Bonds
Principal
105,000
110,000
115,000
120,000
125,000
130,000
140,000
145,000
150,000
160,000
170,000
175,000
185,000
195,000
205,000
215,000
230,000
240,000
255,000
265,000
280,000
295,000
310,000
325,000
345,000
360,000
380,000
400,000
6,130,000
tntere.ct
314,785
310,135
305,184
299,550
293,272
286,737
279,819
272,516
264,956
257,013
248,556
239,716
230,491
220,631
210,131
199,106
187,425
175,087
162,094
148,444
134,138
119,044
103,163
86,494
68,906
50,400
30,975
10,500
5,509,268
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(9) Loans Payable to the City of La Quinta Financing Authority
On June 29, 2004, the La Quinta Financing Authority issued revenue bonds in the amount
of $90,000,000 to finance projects benefiting low and moderate income housing in La
Quinta Redevelopment Project Area No. 1 and La Quinta Redevelopment Project Area
No. 2 and to advance refund the Agency's Redevelopment Project Areas No..l and 2,
1995 Housing Tax Allocation Bonds: The La Quinta Financing Authority loaned
$90,000,000 of the proceeds of the bonds to the La Quinta Redevelopment Agency.
Interest is payable semi-annually on March 1 and September 1 of each year, commencing
September 1, 2004. Interest payments range from 3% to 5.25% per annum. The interest
and principal on the bonds are payable from pledged tax increment revenues.
Term bonds maturing on September 1, 2024, September 1, 2029 and September 1, 2034
are subject to mandatory redemption from minimum sinking fund payments, in part by
lot, on September 1, 2017, September 1, 2025, and September 1, 2030, respectively, and
on each September 1 thereafter at a redemption price equal to the principal amount
thereof plus accrued interest to the redemption date.
A portion of the proceeds was used to obtain a surety agreement to satisfy the bond
reserve requirement. There are certain limitations regarding the issuance of parity debt as
further described in the official statement. The principal balance of outstanding loans
payable to the Financing Authority at June 30, 2006 is $87,282,849 ($89,265,000 net of
unamortized discount and issuance costs of $1,982,151).
30
LA QUINTA REDEVELOPMENT AGENCY
' Notes to the Basic Financial Statements
(Continued)
(9) Loans Payable to the City
of La Ouinta Financing Authority,
(Continued)
'
The minimum annual requirements to repay the loan to the Financing Authority as of
June 30, 2006 are as follows:
2004 Series A Revenue Bonds
June 30
Principal
Interest
2007
$ 1,520,000
4,403,156
2008
1,570,000
4,356,806
2009
1,615,000
4,304,994
'
2010
1,670,000
4,243,331
2011
1,740,000
4,175,131
2012
1,805,000
4,099,719
'
2013
1,890,000
4,016,581
2014
1,975,000
3,924,681
2015
2,075,000
3,823,431
'
2016
2,175,000
3,714,462
2017
2,290,000
3,597,256
2018
2,410,000
3,473,881
2019
2,535,000
3,344,075
'
2020
2,670,000
3,207,444
2021
2,810,000
3,063,594
2022
2,960,000
2,912,131
'
2023
3,115,000
2,752,663
2024
3,275,000
2,584,925
'
2025
2026
3,450,000
3,630,000
2,408,394
2,227,082
2027
3,810,000
2,041,081
2028
4,000,000
1,845,831
'
2029
4,200,000
1,640,831
2030
4,410,000
1,425,582
2031
4,635,000
1,196,560
2032
4,870,000
952,994
'
2033
5,120,000
697,000
2034
5,380,000
427,938
'
2035
5,660,000
145,031
89.265.000
81,006.586
31
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(10) Due to County of Riverside
Proiect Area No. 2
Based on an agreement dated July 5, 1989 between the Agency and the County, until the
tax increment reaches $5,000,000 annually in Project Area No. 2, the Agency will pay to
the County 50% of the County portion of tax increment. At the County's option, the
County's pass -through portion can be retained by the Agency to finance new County
facilities or land costs that benefit the County and serve the La Quinta population. Per the
agreement, the Agency must repay all amounts withheld from the County. The tax
increment is to be paid to the County in amounts ranging from $100,000 to $250,000 over
a payment schedule through June 30, 2015. Interest does not accrue on this obligation.
The balance at June 30, 2006 is $1,850,000.
The minimum annual requirement to amortize Due to County of Riverside as of June 30,
2006 is as follows:
June 30 Principal
2007
$ 100,000
2008
150,000
2009
200,000
2010
200,000
2011
200,000
2012
250,000
2013
250,000
2014
250,000
2015
250.000
MUNW11
32
I
r]
1
U
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(11) Pass -through Agreement Payable to Coachella Valley Unified School District
An agreement was entered into in 1991 between the Agency, the City of La Quinta and
the Coachella Valley Unified School District (District), which provides for the payment
to the District a portion of tax increment revenue associated with properties within
District confines. Such payments are subordinate to other indebtedness of the Agency
incurred in furtherance of the Redevelopment Plan for Project Area No. 1. This tax
increment is paid to the District over a payment schedule through August 1, 2012 in
amounts ranging from $421,166 to $834,076. Tax increment payments outstanding at
June 30, 2006 totaled $5,186,627. The District agrees to use such funds to provide
classroom and other construction costs, site acquisition, school buses, expansion or
rehabilitation of current facilities.
The minimum annual requirements to amortize Payable to Coachella Valley Unified
School District as of June 30, 2006 are as follows:
June 30 Principal
2007
$ 755,449
2008
770,558
2009
785,968
2010
801,688
2011
817,722
2012
834,076
2013
421,166
5 18 27
(12) Advances from the City of La Quinta
The City of La Quinta advances money to the Redevelopment Agency to cover operating
and capital shortfalls. As of June 30, 2006, the amount due to the General Fund from
RDA Debt Service — PA No. 1 was $12,000,000. This consists of an outstanding advance
of $6,000,000 loaned to the Redevelopment Agency with repayments beginning in
2030/31 and accrues interest at 10% per annum. The other outstanding advance of
$6,000,000 loaned to the Redevelopment Agency requires repayments beginning in
2030/31 and accrues interest at 7% per annum. As of June 30, 2006, the amount due to
the General Fund from RDA Debt Service — PA No. 2 was $10,000,000. The advance
loaned to the Redevelopment Agency requires repayment beginning in 2035/36 and
accrues interest at 10% per annum.
1
33
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(13) Pledged Tax Revenues
All tax revenues received by the Agency other than the amount required by law to be
deposited in a low and moderate income housing fund, are required to be used to meet
debt service requirements of the bond indentures before any payments may be made on
other obligations of the Agency.
(14) Transfers In and Out
The following transfers were made during the year,ended June 30, 2006:
Transfer In
Transfer Out
Amount
Debt Service — RDA PA No. 1
Low/Mod Income
Housing — PA No. 1
$3,945,802 (A)
Debt Service — RDA PA No. 2
Low/Mod Income
Housing — PA No. 2
1,706,754 (C)
Capital Projects —
RDA PA No. 2
6,291,900 (B)
Total Debt Service — RDA PA No.2
7,998,654
Total transfers
&LL944A56
(A) $3,945,802 was transferred from the Low/Moderate Housing Project Area No. 1
Fund to the RDA Debt Service Project Area No. 1 Fund to pay a portion of the
2004 Series A Local Agency Revenue Bond debt service.
(B) $6,291,900 was transferred from the RDA Capital Projects. Project Area No. 2
Fund to the RDA Debt Service Project Area No. 2 Fund as repayment for a
General Fund advance for the purchase of a parcel of land.
(C) $1,706,754 was transferred from the Low/Moderate Housing Project Area No. 2
Fund to the RDA Debt Service Project Area No. 2 Fund to pay a portion of the
2004 Series A Local Agency Revenue Bond debt service.
34
' LA QUINTA REDEVELOPMENT AGENCY
' Notes to the Basic Financial Statements
(Continued)
(15) Due To/From Other Funds
The following interfund receivables and payables were made during the year ended June
' 30, 2006:
Due from other funds Due to Other Funds Amount.
' Debt Service — RDA PA No. 2 2004 Low/Mod Bond 1 765 531 (A)
' (A) Short term borrowing to cover temporary cash shortfall.
(16) Educational Revenue Augmentation Fund (ERAF) Payment
During fiscal year ended June 30, 2006, Chapter 1127 of the 2002 Statutes of the State of
' California requires redevelopment agencies to shift $250,000,000 in property tax revenue
to kindergarten through twelfth grade schools and community colleges. The State
Department of Finance has determined that the La Quinta Redevelopment Agency
' amount is $2,903,657 of the $250,000,000, which was forwarded to the Riverside County
Auditor in accordance with the statute.
1
1
35
(This page intentionally left blank)
36
H
1
F
E
'I I
F
F
,L'I
C
L
I
1
1
' REQUIRED SUPPLEMENTARY INFORMATION
C
I
I
1 37
LA QUINTA REDEVELOPMENT AGENCY
Low/Moderate Income Housing Fund - PA No. I 0
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Revenues:
Taxes
Investment income
Rental income
Loan repayments
Miscellaneous
Total revenues
Year ended June 30, 2006
Variance with
Prior
a
Budget
Final Budget
Year
Original
Final
Actual
Positive (negative)
Actual
$ 6,246,300
6,480,979
9,126,550
2,645,571
6,773,423
20,800
20,800
334,912
314,112
80,270
a
341,000
341,000
284,205
(56,795)
310,574
-
-
1,320,719
310,227
1,320,719
310,227
2,048,855
12,392
6,608,100 6,842,779 11,376,613
Expenditures:
Current:
Planning and development 3,786,329 5,620,980 2,050,445
Total expenditures 3,786,329 5,620,980 2,050,445
Excess (deficiency) of revenues
over (under) expenditures 2,821,771 1,221,799 9,326,168
Other financing sources (uses):
Transfers out (1,733,369) (2,478,347) (3,945,802)
Proceeds from sale of capital assets 150,000 990,000 384,812
Total other financing
sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
(1,583,369) 1,488,347 3,560,990
1,238,402 (266,548) 5,765,178
9,036,555 9,036,555 9,036,555
$10,274,957 8,770,007 14,801,733
38
4,533,834
9,225,514 .
3,570,535
2,189,402
3,570,535
2,189,402
0
8,104,369
7,036,112
e
a
(1,467,455)
(2,478,347)
(605,188 )
668,642
2,0_( 72,643)
(1,809,705)
6,031,726
5,226,407
3,810,148
-
6,031,726
9,036,555
LA QUINTA REDEVELOPMENT AGENCY
Low/Moderate Income Housing Fund - PA No. 2
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
' Revenues:
Taxes
Developer fees
Investment income
Rental income
Repayment of loans
Total revenues
' Expenditures:
Current:
Planning and development
' Total expenditures
' Excess (deficiency) of
revenues over (under)
expenditures
' Other financing sources (uses):
' Proceeds from sale of capital asset
Transfers out
Transfers to the City of La Quinta
Total other financing
sources (uses)
Net change in fund balances
Fund balances at beginning of year
' Fund balances at end of year
1
Year ended June 30, 2006
Variance with
Prior
Budget
Final Budget
Year
Original
Final
Actual
Positive (negative)
Actual
$ 3,115,000
3,345,543
4,962,474
1,616,931
3,509,241
7,054,074
7,054,074
-
(7,054,074)
-
24,100
24,100
341,917
317,817
140,742
-
-
_.15,320
15,320
209,669
301,131
301,131
332,747
10,193,174 10,423,717 5,620,842
5,363,759 6,047,702 769,275
5,363,759 6,047,702 769,275
(4,802,875) 4,192,399
5,278,427
5,278,427
1,350,908
1,350,908
4,829,415 4,376,015 4,851,567 475,552 2,841,491
8,637,300 (8,637,300) 7,897,653
(337,867) (4,128,726) (1,706,754) 2,421,972 (4,142,039)
(3,221,318) (101,544) 3,119,774 (3,221,318
(337,867) 1,287,256 (1,808,298
4,491,548 5,663,271 3,043,269
9,077,880 9,077,880 9,077,880
(3,095,554) 534,296
(2,620,002) 3,375,787
5,702,093
$ 13,569,428 14,741,151 12,121,149 (2,620,002) 9,077,880
39
LA QUINTA REDEVELOPMENT AGENCY
Notes to Required Supplementary Information
Year ended June 30, 2006
(1) Budgets and Budgetary Accounting
The Agency adopts an annual budget prepared on the modified accrual basis of
accounting for its, governmental funds. The City Manager or his designee is authorized to
transfer budgeted amounts between the accounts of any department. Revisions that alter
the total appropriations of any department or fund are approved by City Council.
Appropriations were $2,518,594 during the year. Prior year appropriations lapse unless
they are approved for carryover into the following fiscal year. Expenditures may not
legally exceed appropriations at the department level. Reserves for encumbrances are not
recorded by the City of La Quinta.
40
Mayer Hoffman McCann P.C.
An Independent CPA Firm
'
Conrad Government Services Division
2301 Dupont Drive, Suite 200
Irvine, California 92612
949-4742020 ph
949-263-5520 fx
www.mhm-pc.com
' Board of Directors
La Quinta Redevelopment Agency
La Quinta, California
F1
We have audited the financial statements of the La Quinta Redevelopment Agency as of and for
the year ended June 30, 2006, and have issued our report thereon dated August 18, 2006. We
conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States.
tCompliance and Other Matters
As part of obtaining reasonable assurance about whether the financial statements of the La
Quinta Redevelopment Agency are free of material misstatement, we performed tests of its
compliance with certain provisions of laws, regulations, contracts and grant agreements,
noncompliance with which could have a direct and material effect on the determination of
' financial statement amounts. Such provisions include those provisions of laws and regulations
identified in the Guidelines for Compliance Audits of California Redevelopment Agencies, issued
by the State Controller. However, providing an opinion on compliance with those provisions was
' not an objective of our audit and, accordingly, we do not express such an opinion. The results of
our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
' Internal Control Over Financial Reporting
In planning and performing our audit, we considered the La Quinta Redevelopment Agency's
' internal control over financial reporting in order to determine our auditing procedures for the
purpose of expressing our opinion on the financial statements and not to provide an opinion on
the internal control over financial reporting. Our consideration of the internal control over
' financial reporting would not necessarily disclose all matters in the internal control over financial
reporting that might be material weaknesses. A material weakness is a reportable condition in
which the design or operation of one or more misstatements caused by error or fraud in amounts
' that would be material in relation to the financial statements being audited may occur and not be
detected within a timely period by employees in the normal course of performing their assigned
functions. We noted no matters involving the internal control over financial reporting and its
operation that we consider to be material weaknesses.
' This report is intended solely for the information and use of the Audit committee, management,
and the State Controller and is not intended to be and should not be used by anyone other than
those specified parties.
Irvine, California
August 18, 2006
41
(This page intentionally left blank)
42
COUNCIL/RDA MEETING DATE:
ITEM TITLE: Approval of Appropriation of Funds from
RDA Project Area Number 1 for Avenue 52 Storm Drain
Improvements, Project No. 2005-10
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: 1Jr
STUDY SESSION:
PUBLIC HEARING:
Approve an appropriation of $281,657 in additional funds from RDA Project Area
Number 1 to reimburse the contractor for extra work caused by utility conflicts.
FISCAL IMPLICATIONS:
The following is a budget summary:
Budget Total
$
1,063,510
Original Contract
$
(888,390)
Contract Change Order No. 1-8
$
(91,875)
Pending Contract Change Order No. 9
$
(364,902)
Total Construction Costs
$
1,345,167
Amount paid to date
$
956,253
Remaining Fiscal Commitment
$
388,914
Retention to be Released 35 Days after Recordation
$
(134,517)
Amount Remaining to be Billed
$
254,397
Required Appropriation Amount
$
281,657
Adequate funding is not available to pay the contractor's remaining billing ($254,397)
and retention ($134,517) for project closeout without an additional appropriation from
available reserves from Fund 405-0000-290.00-00.
BACKGROUND AND OVERVIEW:
On February 15, 2005, staff proposed mid -year budget adjustments in the
Redevelopment Project Reserves at $1.2 million and $400,000 in Project Area
Numbers 1 and 2, respectively. These allocations were in part to construct storm
drain improvements within Avenue 52 to address flooding where the Calle Rondo
channel previously entered the northwest corner of SilverRock Resort. Storm drainage
improvements totaling $465,000 were approved as part of the Agency's
recommendation.
On August 30, 2005, three sealed bids were received for the construction of this
project. The Mocon Corporation submitted the lowest responsive bid in the amount of
$885,270.
On September 6, 2005, City Council awarded a contract for $888,390 to Mocon
Corporation to construct the Avenue 52 Storm Drain Improvements, Project No. 2005-
10.
On November 7, 2005, a Notice to Proceed was issued with a 90 consecutive
calendar day contract completion time starting November 28, 2005 and ending on
February 25, 2006. Contract Change Order Numbers 1 through 8 covered exploratory
trenching and pot -holing to determine where existing unmarked utilities were located
and adjustment to grade of manholes and water valves and extended the contract by
10 working days. Contract Change Order Number 9 compensates the contractor for
delays incurred due to marked utilities that were at elevations other than those shown
on the; plans and unmarked utilities that were discovered during construction. This
additional work included the rental of equipment and shoring during the 23 working
day delay period while CVWD and Verizon relocated their facilities. In addition,
Contract Change Order Number 9 compensates the contractor for additional paving
quantities that were necessary to repair Avenue 52 once the storm drain was installed.
The total number of working days added by Contract Change Order Numbers 1
through 9 extended the completion date to June 14, 2006. The project was deemed
substantially complete on June 14, 2006.
The project's construction effort is now deemed to be 100% complete and is in
compliance with the plans and specifications. The City Council will consider
acceptance of the improvements and approval of Contract Change Order Number 9
under a separate item on their November 21, 2006 agenda.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency include:
1. Approve an appropriation of $281,657 in additional funds from RDA Project
Area Number 1 to reimburse the contractor for extra work caused by utility
conflicts; or
2. Do not approve an appropriation of $281,657 in additional funds RDA Project
Area Number 1 to reimburse the contractor for extra work caused by utility
conflicts.; or
I Provide staff with alternative direction.
Respectfully submitted,
Tt othy R.\J nas, on, P.E.
Public Works Dirddtor/City Engineer
Approved for submission by:
Thomas P. Genovese, Executive Director
:• iw
c� OP9w
COUNCIL/RDA MEETING DATE: November 21, 2006
ITEM TITLE: Approval of an Amendment to, and
Assignment of, the Exclusive Negotiation Agreement
by and between DDC Desert Development, Inc. and
the La Quinta Redevelopment Agency for Certain
Developable Parcels within SilverRock Resort
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION: _
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Approve Amendment No. 3 to the Exclusive Negotiation Agreement between the La
Quinta Redevelopment Agency and DDC Desert Development, Inc. for the design
and development of certain resort and retail sites located at SilverRock Resort, and
the assignment of the agreement to LDD SILVERROCK, LLC, and authorize the
Executive Director to execute the required documents.
FISCAL IMPACT:
None.
BACKGROUND AND OVERVIEW:
On April 4, 2005, the Agency and DDC Desert Development (DDC) entered into an
Exclusive Negotiation Agreement (ENA) that established a 180-day period wherein
both entities would exclusively work to define the resort and related uses for the
SilverRock Resort properties, and negotiate a Disposition and Development
Agreement that outlines property disposition and development responsibilities. The
ENA was amended via Amendment No. 1 on March 15, 2006 to extend the
exclusive negotiation period until June 30, 2006. It was further amended via
Amendment No. 2 on June 6, 2006, extending the exclusive negotiation period
until November 30, 2006.
Negotiations are nearing completion; however, the addition of the temporary
clubhouse parking area in the Disposition and Development Agreement necessitates
further work with the appraiser to determine fair market value of the parcel. In
addition, Agency staff and LDD staff are finalizing details of the Disposition and
Development Agreement.
Amendment No. 3 (Attachment 1) to the ENA extends the exclusive negotiation
period to December 31, 2006. In addition, this amendment changes the Lowe
Enterprise, Inc., entity involved in the agreement from DDC Desert Development,
Inc. to LDD SilverRock, LLC. Lowe Enterprises created a new LLC to enter into
SilverRock Resort DDA.
FINDINGS AND ALTERNATIVES:
Alternatives available to the Agency Board include:
1. Approve Amendment No. 3 to the Exclusive Negotiation Agreement between
the La Quinta Redevelopment Agency and DDC Desert Development, Inc. for
the design and development of certain resort and retail sites located at
SilverRock Resort, and the assignment of the agreement to LDD
SILVERROCK, LLC, and authorize the Executive Director to execute the
required documents; or
2. Do not approve Amendment No. 3 to the Exclusive Negotiation Agreement
between the La Quinta Redevelopment Agency and DDC Desert
Development, Inc. for the design and development of certain resort and retail
sites located at SilverRock Resort or the assignment; or
3. Provide staff with alternative direction.
Respectfully submitted,
P �
f
�'� �'��✓-�: `�,�,�, yam,
i
Thomas P. Genovese
Executive Director
Attachment: 1. Amendment No. 3
ATTACHMENT 1
AMENDMENT NO.3 TO EXCLUSIVE NEGOTIATION AGREEMENT
THIS AMENDMENT NO. 3 TO EXCLUSIVE NEGOTIATION AGREEMENT
("Amendment No. 3") is made and entered into as of November _, 2006 by and
between the LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and
politic ("Agency"), and LDD SILVERROCK, LLC., a California corporation
("Developer").
RECITALS:
A. On or about April 4, 2005, the Agency and Developer entered into that
certain Exclusive Negotiation Agreement (the "ENA"), pursuant to which Agency and
Developer agreed to initiate exclusive negotiations for up to one hundred eighty (180)
days concerning the possible sale by Agency to Developer of certain real property owned
in fee by the Agency for the Developer's subsequent development thereon of a
commercial project, all as more fully described in the ENA.
B. On or about March 1, 2006, the Agency and Developer entered into that
certain Amendment No. 1 to Exclusive Negotiation Agreement, pursuant to which
Agency and Developer extended the "Second Due Diligence Period" (as that term is
defined in the ENA) until June 30, 2006, to provide the Developer with additional time to
complete the tasks required to be completed as part of the Second Due Diligence Period.
C. On or about June 6, 2006, the Agency and Developer entered into that
certain Amendment No. 2 to Exclusive Negotiation Agreement, pursuant to which
Agency and Developer extended the "Second Due Diligency Period" (as that term is
defined in the ENA) until November 30, 2006, to provide the Developer with additional
time to complete the tasks required to be completed as part of the Second Due Diligence
Period.
D. Agency and Developer now wish to further extend the Second Due
Diligence Period, subject to the terms and conditions set forth herein, to enable the parties
additional time to conclude negotiations on the proposed development and to negotiate,
draft, and schedule for Agency Board consideration a disposition and development
agreement.
E. Developer has created a Limited Liability Company, LDD SilverRock,
LLC, to develop the project as described in the draft Disposition and Development
Agreement. LDD SilverRock, LLC shall be listed in all agreements as the Developer.
,,
-A J
IN WITNESS WHEREOF, Agency and Developer each hereby represents that it
has read this Amendment No. 3, understands it, and hereby executes this Amendment No.
3 to be effective as of the day and year first written above.
Date: , 2006
"Developer"
LDD SILVERROCK, LLC.,
a Delaware limited liability company
Its:
"Agency"
LA QUINTA REDEVELOPMENT AGENCY,
a public body, corporate and politic
Date: , 2006 By:
Executive Director
ATTEST:
Veronica J. Montecino, Agency Secretary
APPROVED AS TO FORM:
RUTAN & TUCKER, LLP
M. Katherine Jenson, Agency Counsel
AGREEMENT:
NOW, THEREFORE, in consideration of the foregoing recitals, which are
incorporated herein by this reference, and for valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto agree as follows:
1. The ENA is hereby amended to extend the Second Due Diligence Period until
December 31, 2006.
2. Except as otherwise expressly provided in this Amendment No. 3, 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. 3, 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.
4. This Amendment No. 3 shall be construed according to its fair meaning and as if
prepared by both parties hereto.
5. This Amendment No. 3 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 without regard to conflicts of law. The 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. 3. 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. 3 and of each and every term and
provision hereof.
7. This Amendment No. 3 may be executed in counterparts, each of which, when
this Amendment No. 3 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]
T44f 4 4 a"
AGENDA CATEGORY:
COUNCIL/RDA MEETING DATE: November 21, 2006
BUSINESS SESSION:
ITEM TITLE: Joint Public Hearing between the City
Council and Redevelopment Agency to Consider a CONSENT CALENDAR:
Proposed Disposition and Development Agreement by STUDY SESSION:
and Between the La Quinta Redevelopment Agency and
LDD SilverRock, LLC for the Sale and Development of PUBLIC HEARING:
52 Acres of Agency Property Located Southwest of the
Intersection of loffnrrenn Ctreet nnri AVenma 52
(SilverRock Resort) in the La Quinta Project Area No. 1
RECOMMENDATION:
Open the joint public hearing and continue the hearing until December 5, 2006.
(FISCAL IMPLICATIONS:
None for this action.
CHARTED CITY IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
A joint public hearing to consider a Disposition and Development Agreement (DDA)
between the Agency and LDD SilverRock, LLC (LDD) was scheduled for November 21,
2006. The purpose was to receive testimony regarding the proposed DDA that
facilitates the sale of 52 acres of property at SilverRock Resort, and the development
of resort hotel, spa, retail, and conference uses. In March 2005, the Agency entered
into an Exclusive Negotiation Agreement with LDD. During the subsequent months
both parties prepared site plans, a development program, and negotiated the terms and
conditions that are contained in the DDA. A draft of the proposed DDA has been
available for public review at the Community Development Department of the City of
La Quinta since November 7, 2006.
The City Council and Redevelopment Agency were scheduled to hold a joint public
hearing regarding the DDA on November 21, 2006. Subsequent to publishing the
public; hearing notice, the Agency and LDD elected to explore the development
potential of the land that will no longer be required to accommodate parking for the
temporary clubhouse (located in the Ahmanson Ranch House). When the Agency
constructs and opens the permanent clubhouse, approximately 2.43 acres of this 3.89
acre parcel may be available for resort hotel and related development. Since this
property is adjacent to the site designated for the boutique hotel that LDD would be
building pursuant to the DDA, LDD requested the Agency consider development
options that would preserve the Ahmanson Ranch House and required parking while
allowing development of additional hotel rooms or conference facilities on the
remaining property. Since this transaction was not contemplated when the joint public
hearing notice was published and was not analyzed in the Summary Report that
accompanies the DDA, the Agency must re -notice the Joint Public Hearing and revise
the Summary Report.
Staff recommends that the City Council and Agency open the Joint Public Hearing and
receive testimony from those who wish to present testimony at this time, and then
continue the Hearing until December 5, 2006.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency Board include:
Open the joint public and continue the hearing until December 5, 2006; or
2. Provide staff with alternative direction.
Respectfully submitted,
Thomas P. Genovese, Executive Director