RDA Resolution 2006-016
RESOLUTION NO. RA 2006-016
A RESOLUTION OF THE LA GUINTA REDEVELOPMENT
AGENCY APPROVING A DISPOSITION AND
DEVELOPMENT AGREEMENT BETWEEN THE AGENCY AND
LDD SILVERROCK, LLC FOR THE PROPERTY LOCATED
SOUTHWEST OF THE INTERSECTION OF JEFFERSON
STREET AND AVENUE 52
DISPOSITION AND DEVELOPMENT AGREEMENT
LDD SILVERROCK, LLC
WHEREAS, the La Quinta Redevelopment Agency ("Agency") is a public
body, corporate and politic, organized and existing under the California Community
Redevelopment Law (Health & Safety Code Section 33000 et seq.) ("CRL"); and
WHEREAS, pursuant to the CRL, the City Council of the City of La Quinta
("City" or "City Council", as applicable) approved and adopted the Redevelopment Plan
("Redevelopment Plan") for La Quinta Project Area No. 1 ("Project Area"), on
November 29, 1983, by Ordinance No. 43; and
WHEREAS, the Agency staff has negotiated a Disposition and
Development Agreement ("Agreement") with LDD SilverRock, LLC, a Delaware limited
liability company ("Developer"). pursuant to which the Agency is to convey to the
Developer approximately 58.97 acres of real property located within the Project Area
(the "Property") for Twelve Million Five Hundred Forty Thousand Five Hundred
Seventy-One Dollars ($12,540,571) for the Developer's subsequent development
thereon of a resort commercial project containing a luxury four-star quality boutique
hotel, a luxury four-star quality resort hotel, condominium hotel units, a retail village,
resort units, and associated amenities, all as more particularly described in the
Agreement (collectively, the "Project"); and
WHEREAS, the Agreement provides that Agency may reacquire any
undeveloped portion of the Property that is then owned by the Developer in the event
the Developer fails to commence construction of any particular phase of the Project
within certain specified time frames, interrupts construction of a particular phase of
the Project for a specified period of time, or transfers a particular phase of the Project
in violation of the Agreement, all as more particularly described in the Agreement; and
WHEREAS, the Agreement requires the Developer to execute a
Development Agreement concurrently with execution of the Agreement, which
requires the recordation of restrictive covenants concerning the operation of the units
and the payment of annual resort fees by the owners thereof; and
WHEREAS', the Agreement requires that the Project be operated by
Destination Hotels & Reso'rts, Inc., which is an entity related to Developer, or another
operator with experience operating four-star quality hott,ls, for a period.of ten years
Resolution No. RA 2006-016
Disposition and Development Agreement
LDD SllverRook. LLC
AdopUd:Deoember5.2006
Page 2
(10), and that the Project be operated in a four-star quality condition for a period of
twenty (20) years, and requires the payment of liquidated damages in the event any
portion of the Project is not operated at a four-star quality; and
WHEREAS, the Agreement provides the Agency with discretion to lease
the retail portion of the Property to Developer or to the City, for subsequent lease to
the Developer, rather than selling such portion to Developer; and
, WHEREAS, Health and Safety Code Section 33433 requires that the
Agency prepare a Summary Report to consider the Agency's proposed sale of the
Property as set forth in the Agreement, that the Agency Board and'the City Council
conduct a noticed joint public hearing with respect to the Agreement, and that the
apprqval of the Agreement be accompanied by certain findings and determinations as
set forth herein; and
WHEREAS, a Summary Report for the Agreement has been prepared and
the joint public hearing has been conducted in accordance with applicable requirements
of law; and
WHEREAS, the City Council and the Redevelopment Agency have
considered all the information and evidence set forth in the Summary Report presented
by the City/Agency staff and presented by persons wishing to appear and be heard
concerning the impact of the Agreement on the Project Area and the City as a whole;
and
WHEREAS, the Agreement is in accordance with the Redevelopment Plan
and is of benefit to the Project Area and the City of La Quinta; and
, ,
WHEREAS, the Agency hereby determines thatthe Agency's'sale of the
Property pursuant to the Agreement is necessary to effectuate the purposes of the
Redevelopment Plan; ,
WHEREAS, the Agency has complied with the requirements of the
California Environmental Quality Act, Public, Resources Code Section 21000, et seq.,
prior to considering this Agreement. Specifically, the project to be Implemented
through this Agreementwas previously analyzed in the Mitigated Negative Declaration
for the SilverRock Project (EA No. 2002-453) and the Addendum thereto approved by
the City Council in Resolution No. 2006-082 in connection with the SilverRock Resort
Specific PI!In, and that the circumstances and conditions have not changes, and the
project to be implemented is in substantial conformance with said Specific Plan, ilnd
no further environmental.review is required under Public Resources Code 21166.
Resolution No. RA 2006.016
Disposition and Development Agreement
LDD SUv.rRock, LLC
Adopted: December 5, 2006
Page 3
NOW, THEREFORE, BE IT RESOLVED BY THE LA GUINTA
REDEVELOPMENT AGENCY AS FOLLOWS:
1. That the above recitals are true and correct and incorporated herein.
2. That the La Quinta Redevelopment Agency hereby resolves as follows:
A. The Agreement effectuates the purposes of the Community
Redevelopment Law (Health & Safety Code Section 33000 et seq.) and
of the Redevelopment Plan and is in the best interests of the citizens of
the City of La Quinta.
B. The Agency's sale of the Property will eliminate blight and is consistent
with the Agency's Five-Year Implementation Plan, based on the findings
and conclusions of the Summary Report, which is incorporated herein by
this reference.
C. The Agency's sale of the Property will eliminate blight, based on the
findings and conclusions of the Summary Report.
D. The consideration the Developer will pay for the Property is not less than
the fair market value of the Property at its highest and best use in
accordance with the Redevelopment Plan, based on the findings and
conclusions of the Summary Report.
3. The Agreement, a copy of which is on file with the Agency Secretary, is hereby
approved. The Agency Executive Director and Agency Counsel are hereby
authorized and directed to make final modifications to the Agreement that are
consistent with the substantive terms of the Agreement approved hereby, ,and
the Agency Executive Director is authorized to thereafter sign the Agreement on
behalf of the Agency.
4. The Agency Executive Director is authorized and directed, on, behalf of the
Agency, to (i) sign such other and further documents, including but not limited
to subordination agreements and escrow instructions that require the Agency's
signature, and (ii) take such other and further actions, as may be necessary and
proper to carry out the terms of the Agreement. '
PASSED, APPROVED, AND ADOPTED at a regular meeting of the
La Quinta Redevelopment Agency held this 5th day of December, 2006, by the
following vote:
Resolution No. RA 2006-016
Disposition and Development Agreement
LOD SilverRock. LLC
Adopted: December 5. 2006
Page 4
AYES:
Board Members Adolph, Henderson, Kirk, Sniff, Chair Osborne
NOES:
ABSENT:
None
None
ABSTAIN:
None
ATTEST:
La Quinta Redeve
(SEAL) -
APPROVED AS TO FORM:
/l1./tLk~
M?KA THERINE JENS , Agency Counsel
La Quinta Redevelopment Agency