2006 12 05 RDAter.
NOTICE AND CALL OF SPECIAL MEETING
OF THE LA QUINTA REDEVELOPMENT AGENCY
TO THE MEMBERS OF THE REDEVELOPMENT AGENCY OF THE CITY OF LA
QUINTA AND TO THE CITY CLERK:
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 December 5, 2006,
at 2:00 p.m., at the City Council Chambers, 78-495 Calle Tampico, La Quinta.
Dated: December 1, 2006
Attest:
VERONICA
City Clerk
LEE Nff OSBORNE
Chairman
,CMC
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 December 5, 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 December 1, 2006.
DATED:,December 1, 2006
Veronica Jntecino, City Clerk
City of La ulnta, California
art
Redevelopment Agency Agenda 1 December 5, 2006
6x# 114 #adja
Redevelopment Agency agendas are
available on the City' web page
@ www.le-quinta.org
REDEVELOPMENT AGENCY
AGENDA
CITY COUNCIL CHAMBERS
78-495 Calls Tampico
La Quints, California 92253
Special Meeting
TUESDAY, DECEMBER 5, 2006 - 2:00 P.M.
Beginning Resolution No. RA 2006-015
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
CONCERNING POTENTIAL TERMS AND CONDITIONS OF ACQUISITION
AND/OR DISPOSITION OF A PORTION OF 525± ACRES LOCATED AT THE
SOUTHWEST CORNER OF AVENUE 52 AND JEFFERSON STREET.
PROPERTY OWNER/NEGOTIATOR: LDD SILVERROCK, LLC, THEODORE
LENNON.
^nry
Redevelopment Agency Agenda 1 December 5, 2006
RECESS TO CLOSED SESSION
RECONVENE AND ADJOURN SPECIAL MEETING
Adjourn to the 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.
REGULAR MEETING - 3:00 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.
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 LOCATED
SOUTH OF CALLE TAMPICO BETWEEN AVENIDA NAVARRO AND AVENIDA
BERMUDAS. PROPERTY OWNERS/NEGOTIATORS: KIMBERLY LEE (APN
773-078-016 AND 017); AND MARSHAL HUGHES (APN 773-078-006 AND
007).
RECESS TO CLOSED SESSION
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.
G �
Redevelopment Agency Agenda 2 December 5, 2006
CONFIRMATION OF AGENDA
APPROVAL OF MINUTES
1. APPROVAL. OF MINUTES OF NOVEMBER 15, 2006.
2. APPROVAL OF MINUTES OF NOVEMBER 21, 2006.
CONSENT CALENDAR
NOTE: Consent Calendar items are considered to be routine in nature and will be
approved by one motion.
1. APPROVAL OF DEMAND REGISTER DATED DECEMBER 5, 2006.
2. APPROVAL OF APPROPRIATION OF FUNDS FROM RDA PROJECT AREA
NO. 1 FOR EISENHOWER DRIVE BRIDGE AND DRAINAGE IMPROVEMENTS,
PROJECT NO. 2001-06.
3. APPROVAL OF ANNUAL CONTINUING DISCLOSURE FOR THE LA QUINTA
REDEVELOPMENT AGENCY 1998, 2001, 2002 AND 2003 TAX
ALLOCATION BONDS FOR FISCAL YEAR END JUNE 30, 2006.
4. ISSUANCE OF CONSENT BY THE LA QUINTA REDEVELOPMENT AGENCY
TO THE RECORDATION OF DEVELOPMENT AGREEMENT NO. 2006-012
(CITY OF LA QUINTA/LDD SILVERROCK, LLC) AND AUTHORIZE THE
EXECUTIVE DIRECTOR TO EXECUTE THE CONSENT TO THE
RECORDATION.
5. ADOPTION OF A RESOLUTION OF THE REDEVELOPMENT AGENCY
APPROVING A PURCHASE AND SALE AGREEMENT BETWEEN THE
REDEVELOPMENT AGENCY AND DENNIS D. FOUNTAIN, FOR PROPERTY
LOCATED AT 46-150 DUNE PALMS ROAD (APN 600-030-003), AND THE
APPROPRIATION OF $400,000 FOR ACQUISITION, RELOCATION, AND
DEMOLITION.
BUSINESS SESSION - NONE
STUDY SESSION - NONE
CHAIR AND BOARD MEMBERS' ITEMS - NONE
Redevelopment Agency Agenda 3 December 5, 2006
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. CONTINUED JOINT PUBLIC HEARING TO CONSIDER 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 19, 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 92.253.
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
December 5, 2006, was posted on the outside entry to the Council Chamber at 78-
495 Calle Tampico and on the bulletin boards at 51-321 Avenida Bermudas and
78-630 Highway 1 1 1, on December 1, 2006.
DATED: ecember 1, 2006
r
VERONICA J ONTECINO, CMC, City Clerk
City of La Quinta, California
Redevelopment Agency Agenda 4 December 5, 2006
AGENDA CATEGORY:
COUNCIL/RDA MEETING DATE: December 5, 2006
BUSINESS SESSION:
ITEM TITLE: Demand Register Dated Dec. 5, 2006 /
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
RECOMMIENDATION:
It is recommended the Redevelopment Agency Board:
Receive and File the Demand Register Dated Dec. 05, 2006 of which
$235,309.68 represents Redevelopment Agency Expenditures.
PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA
T4tf 4 4 a"
COUNCIL/RDA MEETING DATE:
ITEM TITLE: Approval of Appropriation of Funds from
RDA 1 Project Area No. 1 for Eisenhower Drive Bridge
and Drainage Improvements, Project No. 2001-06;
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION: y
CONSENT CALENDAR: 4--
STUDY SESSION:
PUBLIC HEARING:
Appropriate $108,840 in additional funds from RDA Project Area No. 1 to fund
Contract Change Orders 9-15 to reimburse contractor for extra work caused by
construction impacts not addressed on the project plans and specifications.
FISCAL IMPLICATIONS:
The following is a budget summary:
Budget Total $ 4,154,475
Amount spent through December 5, 2006 $ 4,064,667
Amount Available $ 89,808
Pending Contract Change Order Nos. 9-15 $ 198,648
Remaining Fiscal Commitment $ (108,840)
As can be seen, an additional appropriation in the amount of $ 108,840 needs to
be made.
CHARTER CITY IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
On November 16„ 2004, the City Council adopted a Resolution certifying a Mitigated
Negative Declaration of environmental impact for Environmental Assessment 2004-
519; and approved the PS&E of probable construction costs and authorized staff to
V� 7
advertise the Eisenhower Drive Bridge and Drainage Improvements, Project No. 2001-
06 for bid.
On January 5, 2005, seven sealed bids were received for the construction of this
project. Granite Construction submitted the lowest responsive bid in the amount of
$2,565,565.
On January 18, 2005 City Council awarded a contract for $2,565,565 to Granite
Construction Company to construct the Eisenhower Drive Bridge and Drainage
Improvements, Project No. 2001-06.
On February 24, 2005 a Notice to Proceed was issued with a 310 consecutive
calendar day contract completion time starting February 28, 2005, and ending on
January 3, 2006.
Contract Change Orders 9-15 reimburses the contractor for extra work caused by
construction impacts not addressed on the project plans and specifications. Such work
includes the construction of a retaining block wall and foundations, additional cold
milling and asphalt placement, repair of a sinkhole, additional striping, construction of a
slough wall and wall extensions for retaining and restoration of landscaping adjacent to
the project which was impacted by the construction. Contract Change Orders 9-15
will extend the project for a total of 99 consecutive calendar days.
The City Council will consider approval of Contract Change Order Nos. 9-15 under a
separate item.
FINDINGS AND ALTERNATIVES:
The alternatives available to the City Council include:
1. Appropriate $108,840 in additional funds from RDA Project Area No. 1 to
fund Contract Change Orders 9-15 to reimburse contractor for extra work
caused by construction impacts not addressed on the project plans and
specifications; or
2. Do not appropriate $108,840 in additional funds from RDA Project Area No. 1
to fund Contract Change Orders 9-15 to reimburse contractor for extra work
caused by construction impacts not addressed on the project plans and
specifications; or
3. Provide staff with alternative direction.
r t, US l.�
Respectfully submitted,
Ti thy R J nas n, P.E.
Public Wor Dir for/City Engineer
Approved for submission by:
Thomas P. Genovese, Executive Director
OF 1� AGENDA CATEGORY:
COUNCIL/RDA MEETING DATE: December 5, 2006
ITEM TITLE: Approval of Annual Continuing
Disclosure for the La Quinta Redevelopment Agency
1998, 2001, 2002 and 2003 Tax Allocation Bonds
for Fiscal Year End June 30, 2006
RECOMMENDATION:
BUSINESS SESSION:
CONSENT CALENDAR: 3
STUDY SESSION:
PUBLIC HEARING:
Approve, receive and file the Annual Continuing Disclosure for the La Quinta
Redevelopment Agency 1998, 2001, 2002 and 2003 Tax Allocation Bonds for
Fiscal Year End June 30, 2006.
FISCAL IMPLICATIONS:
None.
CHARTER CITY IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
On November 10, 1994, the Securities and Exchange Commission adopted
amendments to existing federal regulations (Rule 15c2-12) for bonds issued after
July 3, 1995, requiring issuers of municipal securities (bond issues) to do the
following annually for each bond issue:
1. Prepare official statements meeting the content requirement of Rule
15c2-12.
2. File certain financial information and operating data with national and
state repositories each year.
V0
3. Prepare announcements of the significant events including payment
defaults, defeasances and draws on a reserve fund as the events
occur.
Attachment 1 is the 2005/06 Annual Continuing Disclosure Statement for the La
Quinta Redevelopment Agency 1998 Housing Tax Allocation Bonds prepared in
accordance with the three aforementioned requirements. Additionally, no
announcement of significant events was necessary for Fiscal Year 2005/06.
In addition, the Agency has issued disclosure reports for the 2001, 2002 and 2003
RDA Tax Allocation Bond issues (Attachment 1).
FINDINGS AND ALTERNATIVES:
The alternatives available to the Redevelopment Agency Board include:
1. Approve, receive and file the Annual Continuing Disclosure for the La Quinta
Redevelopment Agency 1998, 2001, 2002 and 2003 Tax Allocation Bonds
for Fiscal Year End June 30, 2006; or
1. Do not approve, receive and file the Annual Continuing Disclosure for the La
Quinta Redevelopment Agency 1998, 2001, 2002 and 2003 Tax Allocation
Bonds for Fiscal Year End June 30, 2006; or
3. Provide staff with alternative direction.
Respectfully submitted,
a iA
John M. Falcoder, Finance Director
Approved for submission b
Thomas P. Genovese, Executive Director
Attachment: 1. 2005/06 Annual Continuing Disclosure Statement for the
RDA 1998, 2001, 2002 and 2003 Tax Allocation Bonds
v1
ATTACHMEI
LA QUINTA REDEVELOPMENT AGENCY
$15,760,00
LA QUINTA REDEVELOPMENT
PROJECT AREA NO. 1 TAX ALLOCATION
REFUNDING BONDS, SERIES 1998
Riverside County, California
Dated: June 1, 1998
CUSIP: 504194
2006 ANNUAL CONTINUING DISCLOSURE
INFORMATION STATEMENT
As of November 28, 2006
Also available at:
MuniFinancial i
www.muni.com, U J
LIST OF PARTICIPANTS
CITY OF LA QUINTA
www.le-quinta.org
John Falconer
Finance Director
P.O. Box 1504
78-495 Calle Tampico
La Quinta, California 92247
(760)777-7150
DISCLOSURE CONSULTANT & DISSEMINATION AGENT
MuniFinancial
Temecula, CA 92590
(951) 587-3500
Report available for viewing 0
www.muni.com
UNDERWRITER
Miller & Schroeder Financial, Inc.
BOND COUNSEL
Rutan & Tucker LLP
Costa Mesa, California
TRUSTEE
Brad Scarbrough
U.S. Bank Trust, N.A.
633 West 51" Street, 241" Floor
Los Angeles, California 90071
(213) 613-6047
" In its role as Disclosure Consultant and Dissemination Agent, MuniFinancial has not passed upon the accuracy,
completeness or fairness of the statements contained herein.
viJ
L INTRODUCTION
Pursuant to an Official Statement dated June 1, 1998, the La Quinta Redevelopment Agency
(the "Agency") issued $15,760,000 La Quinta Redevelopment Project Area No. 1 Tax Allocation
Refunding Bonds, Series 1998, (the 1998 Bonds"). The 1998 Bonds are being issued for the
purpose of refinancing the Agency's La Quinta Redevelopment Project, Tax Allocation Bonds,
Series 1991 (the "1991 Bonds"). The 1998 Bonds are payable on a parity with the Agency's
previously issued La Quinta Redevelopment Project, Tax Allocation Refunding Bonds, Series
1994 (the "1994 Bonds"), the Agency's previously issued La Quinta Redevelopment Project
Area No. 1 Tax Allocation Bonds, Series 2001 (the "2001 Bonds"), the Agency's previously
issued La Quinta Redevelopment Project Area No. 1, Tax Allocation Bonds, Series 2002 (the
"2002 Bonds") and the Agency's La Quinta Redevelopment Project Area No. 1, Tax Allocation
Bonds, Taxable Series 2003 (the "2003 Bonds") (collectively the "Bonds").
The City of La Quinta, (the "City") which comprises approximately 35.1 square miles, is located
in the Coachella Valley, twenty miles from Palm Springs and 127 miles from Los Angeles.
Redevelopment Project Area No. 1, (the "Project Area No. 1") encompasses an area of
approximately 11,200 acres, which includes approximately 50.3% of the current area of the City.
The objective of the Agency is to eliminate or reduce the many instances of economic, physical
or social blight presently existing within the boundaries of the Redevelopment Projects.
The 1998 Bonds are special obligations of the Agency and are secured by a pledge of Pledged
Tax Revenues, as defined in the Official Statement. The 1998 Bonds are not a debt of the City,
the State of California, or any of its political subdivisions and neither the City, the State of
California, nor any of its political subdivisions is liable. The 1998 Bonds do not constitute
indebtedness within the meaning of any constitutional or statutory debt limit or restriction.
This Annual Continuing Disclosure Information Statement is being provided pursuant to a
covenant made by the Agency for the benefit of the holders of the 1998 Bonds and includes the
information specified in a Continuing Disclosure Certificate. For further information and a more
complete description of the Agency and the 1998 Bonds, reference is made to the Official
Statement.
The information set forth herein has been furnished by the Agency and by sources, which are
believed to be accurate and reliable but is not guaranteed as to accuracy or completeness.
Statements contained in this Annual Continuing Disclosure Information Statement which involve
estimates, forecasts, or other matters of opinion, whether or not expressly so described herein,
are intended solely as such and are not to be construed as representations of fact. Further, the
information and expressions of opinion contained herein are subject to change without notice
and the delivery of this Annual Continuing Disclosure Information Statement will not, under any
circumstances, create any implication that there has been no change in the affairs of the
Agency or any other parties described herein.
2005106, 1998 TAB City of La Quinta
H. BOND INFORMATION
A. PRINCIPAL OUTSTANDING
Bonds As of November 17, 2006
Tax Allocation Refunding Bonds, Series 1998 $15,760,000.00
B. FUND BALANCES
_ Fund As of November 17, 2006
Reserve Fund l'I N/A
(1) The Reserve Fund is funded by a Reserve Account Surety Bond issued by the Ambac Assurance Corporation.
Ill. FINANCIAL INFORMATION
The audited financial statements for the Agency for the fiscal year ended June 30, 2006
have been separately filed with the Nationally Recognized Municipal Securities
Information Repositories and are hereby incorporated by reference into this Annual
Continuing Disclosure Information Statement.
IV. OPERATING INFORMATION
A. ASSESSED VALUATIONS
The following table set forth the Taxable Values and the Gross Tax
Increment for the Project Area No. 1.
Protect Area No. 1
Fiscal
Secured
Unsecured
Utility
Total Taxable
Taxable Value
(')
Gross Tax
Year
Value
Value
Value
Value
Above Base
Increment
1996/97
$1,297,020,107
$13,821,291
$0
$1,310,841,398
$1,111,443,165
$11,344,856
1997/98
1, 383, 340, 327
13,157, 051
0
1, 396, 497, 378
1,197, 099,145
12,161, 894
12,877,280
1998/99
1,436,942,643
8,594,039
0
0
1,445,536,682
1,635,613,531
1,246,138,449
1,436,215,298
15,659,371
1999/00
2000/01
1,627,578,717
1,927,812,440
8,034,814
14,948.366
0
1,942,760,806
1,743,362,573
18,685,564
2001/02
2,287,724,601
14,486,563
0
2,302,211,164
2,102,812,931
20,929,840
2002103
2,688,732,575
13,980,069
0
2,702,712.644
2,503,314,411
26,357,623
29,958,693
2003104
3,062,917,787
13,537,804
0
0
3,076,455,591
3,424,895,952
2,877,057,358
3,225,497,719
33,867,116
2004105
2005/06
3,411,082,100
3,956,642,179
13,813,852
29,248,534
0
3,985,890,713
3,786,492,480
45,632,751
2006/07
4,779,973,573
34,084,343
0
4,814,057,916
4,614,659,683
N/A
(1) The Base Value for the Project Area No. 1 is $199,398,233.
Source: Riverside County and Audited Financial Statements of the La Quints Redevelopment Agency.
2005106, 1998 TAB City of La Quints
B.
C.
LAND USE
PROJECT AREA NO. 1
2006/07 Total Percent
Land Use Secured Value of Total
Residential
$4,050,259,291
82.62%
Commercial
554,831,241
11.32%
Vacant
192,407,783
3.92%
Miscellaneous/Unknown
104,965,819
2.14%
Total Project Area No.1 $4902,464,134 100.00%
Source: County of Riverside 2006/07 secured property roll, as compiled by MuniFinanclal.
PLEDGED TAX REVENUES AND DEBT SERVICE COVERAGE
The following table sets forth the amount of Gross Tax Increment and the
combined (Debt Service Coverage for the Bonds.
Less:
Maximum
Less:
Less:
Subordinated
Maximum
Annual Debi
cal
Gross Tax
Nonsubordinated
Housing
Pledged
Pass
Net
Annual Debt
(3)
Service
ar
Increment
Pass Throughst"
Set Aside
Revenues
Throughs(2)
Revenues
Service
Coverage
1/02
$20,929,840
$1,168,978
$4,488,487
$15,272,375
$7,025,471
$8,246,904
$3697,867
2.23
2103
26,357,623
1,378,611
5,271,524
19,707,488
8,371,098
11,336,390
7:887,768141
1.43
3/04
29,968,693
1,355,988
5,991,739
22.610.966
8,603,713
14,007,253
9.890,703
1.41
V05
33,867,116
1,448,192
6,773,423
25,645,501
10,455,214
15,190,287
9,890,703
1.54
5/06
45,632,751
1,792,709
9,126,550
35,713,492
15,318,943
19,394,549
9,890,703
1.96
(1) The Agency has entered into an agreement with the Coachella Valley Mosquito Abatement District, the Coachella Valley Water
District, and the Coachella Valley Unified School District to pass through Tax Increment on a nonsubordinated basis Please
note, although the Coachella Valley Unified School District pass -through is presented as non -subordinated, it is non -
subordinate only to debt service on the 2002 Bonds and is subordinate to all other debt service.
(2) The Agency's subordinated pass-throughs include the County of Riverside, the Desert Sands Unified School District, and the
Desert Community College District.
bt Service
on the 2003
ds, the
(3) The combined Bonds ispayablea nImum Annual the year 2032D n the aunt of $9 890, 703.Bonds,Bonds, A portonof the Housing Set 9 Bonds and the 9
Set Asidess pledged tows dste
payment of 18.5% of the debt service on the 1994 Bonds.
(4) Annual Debt Service on the 2003 Bonds began in fiscal year 2003/04.
Source: Audited Financial Statements of the La Quinta Redevelopment Agency and the Statement of Indebtedness filed with the
Riverside County Auditor -Controller's Office.
0 V
2005106, 1998 TAB City of La Quints
D. ANNUAL DEBT SERVICE
The following table sets forth the annual debt service for the 1994 Bonds, 1998
Bonds, 2001 Bonds, 2002 Bonds, and the 2003 Bonds. Information contained in
the table below was gathered and verified from the corresponding Official
Statements.
Maturity Date 1994 1998 2001 2002 2003 Combined
September1, Bonds Bonds Bonds Bonds Bonds Debt Service
2006
$2,161,857
$819,520
$2,430,720 $2,475,341
$1,997,018
$9,884,456
2007
2,163.275
819,520
2,430.720
2,473,841
1,999,210
9,886,566
2008
2,161,629
819,520
2,430,720
2,475,391
2,000,554
9,887,814
2009
2,160,695
819,520
2,430,720
2,479,436
1,996,050
9,886,421
2010
2,159,880
819,520
2,430.720
2,475,676
2,000,163
9,885,959
2011
2,162,664
819,520
2,430,720
2,475,176
1,997,640
9,885,720
2012
2,160,003
819,520
2,430,720
2,477,681
1,998,755
9,886,679
2013
0
1,474,520
3,995,720
2,418,281
1,998,235
9,886,756
2014
0
1,475,460
3,997,470
2,413,031
1,996,080
9,882,041
2015
0
1,474,580
4,000,220
2,411,281
1,997,392
9,883,473
2016
0
1,476,880
3,998,720
2,412,781
1,996,208
9,884,589
2017
0
1,472,100
3,997,970
2,417,281
1,997,528
9,884,879
2018
0
1,475,500
3,997,720
2,414,531
1,996,040
9,883,791
2019
0
1,476,560
3,997,720
2,414,781
1,996,744
9,885,805
2020
0
1,475,280
3,997,720
2,412,781
1,999,328
9,885,109
2021
0
1,476,660
3,997,470
2,413,531
1,998,480
9,886,141
2022
0
1,475,440
3,996,720
2,416,781
1,999,200
9,888,141
2023
0
1,476,620
3,997,790
2,412,281
2,001,176
9,887,867
2024
0
1,474,940
3,997,485
2,413,856
1,999,096
9,885,377
2025
0
1,475,400
3,995,550
2,417,356
2,000,680
9,888,986
2026
0
1,472,740
3,996,730
2,417,525
1,997,434
9,884,429
2027
0
1,471,960
4,000,515
2,414,363
1,999,358
9,886,196
2028
0
1,472,800
3,996,395
2,417,869
2,000,808
9,887,872
2029
0
0
3,999,370
3,887,531
1,996,462
9,883,363
2030
0
0
3,998,675
3,888,013
1,996,320
9,883,008
2031
0
0
3,999,055
3,890,550
1,999,738
9,889,343
n
7 aao ant
2 nn1.072
9.890.703
2005106, 1996 TAB City of La Quinta
E. REPORTING OF SIGNIFICANT EVENTS
The Continuing Disclosure Covenants outline the Significant Events that must be
reported if they are deemed material. None of the items below has occurred or
has been previously reported during the fiscal year ended June 30, 2006.
1. Principal and interest payment delinquencies on the Bonds.
2. Non-payment related defaults.
3. Unscheduled draws on debt service reserves reflecting financial
difficulties.
4. Unscheduled draws on credit enhancements reflecting financial difficulties.
5. Substitution of credit or liquidity providers, or their failure to perform.
6. Adverse tax opinions or events affecting the tax-exempt status of the
security.
7. Modifications to rights of security holders.
8. Contingent or unscheduled bond calls.
9. Defeasances.
10. Release, substitution, or sale of property securing repayments of the
securities.
11. Rating changes.
w 4
Uri
2005106, 1998 TAB City of La Quinta
LA QUINTA REDEVELOPMENT AGENCY
$6,750,000
LA QUINTA REDEVELOPMENT
PROJECT AREA NO. 2 TAX ALLOCATION
REFUNDING BONDS, ISSUE OF 1998
Riverside County, California
Dated: June 1, 1998
CUSIP: 504194
2006 ANNUAL CONTINUING DISCLOSURE
INFORMATION STATEMENT
As of November 28, 2006
Also available at,
MuniFinancial
www.muni.com
LIST OF PARTICIPANTS
CITY OF LA QUINTA
www.la-guinta.org
John Falconer
Finance Director
P.O. Box 1504
78-495 Calls Tampico
La Quinta, California 92247
(760)777-7150
DISCLOSURE CONSULTANT & DISSEMINATION AGENT
MuniFinancial
Temecula, CA 92590
(951)587-3500
Report available for viewinsr to
www.muni.com
UNDERWRITER
Miller & Schroeder Financial, Inc.
BOND COUNSEL
Rutan & Tucker LLP
Costa Mesa, California
TRUSTEE
Brad Scarbrough
U.S. Bank Trust, N.A.
633 West 5th Street, 24th Floor
Los Angeles, California 90071
(213) 613-6047
In its role as Disclosure Consultant and Dissemination Agent, MuniFinancial has not passed upon the accuracy,
completeness or fairness of the statements contained herein.
L INTRODUCTION
Pursuant to an Official Statement dated June 1, 1998, the La Quinta Redevelopment
Agency (the "Agency") issued $6,750,000 La Quinta Redevelopment Project Area No. 2
Tax Allocation Refunding Bonds, Issue of 1998 (the `Bonds"). The Bonds are being
issued for the purpose of refinancing the Agency's La Quinta Redevelopment Project
Area No. 2, Tax Allocation Bonds, Issue of 1992 (the "1992 Bonds").
The City of La Quinta, (the "City') which comprises approximately 35.1 square miles, is
located in the Coachella Valley, twenty miles from Palm Springs and 127 miles from Los
Angeles.
Redevelopment Project Area No. 2 (the "Project Area No. 2") encompasses an area of
approximately 3,116 acres, which includes approximately 14% of the total corporate
area of the City. The objective of the Agency is to eliminate or reduce the many
instances of economic., physical or social blight presently existing within the boundaries
of the Redevelopment Projects.
The Bonds are special obligations of the Agency and are secured by a pledge of
Pledged Tax Revenues, as defined in the Official Statement. The Bonds are not a debt
of the City, the State of California, or any of its political subdivisions and neither the City,
the State of California, nor any of its political subdivisions is liable. The Bonds do not
constitute indebtedness within the meaning of any constitutional or statutory debt limit or
restriction.
This Annual Continuing Disclosure Information Statement is being provided pursuant to
a covenant made by the Agency for the benefit of the holders of the Bonds and includes
the information specified in a Continuing Disclosure Certificate. For further information
and a more complete description of the Agency and the Bonds, reference is made to the
Official Statement.
The information set forth herein has been furnished by the Agency and by sources,
which are believed to be accurate and reliable but is not guaranteed as to accuracy or
completeness. Statements contained in this Annual Continuing Disclosure Information
Statement which involve estimates, forecasts, or other matters of opinion, whether or
not expressly so described herein, are intended solely as such and are not to be
construed as representations of fact. Further, the information and expressions of
opinion contained herein are subject to change without notice and the delivery of this
Annual Continuing Disclosure Information Statement will not, under any circumstances,
create any implication that there has been no change in the affairs of the Agency or any
other parties described herein.
-'q
2005106, 1998 TAB Pmi 2 City of La Quinta f" � 4" +
II. BOND INFORMATION
A. PRINCIPAL OUTSTANDING
_ Bonds As of November 17, 2006
Tax Allocation Refunding Bonds, Issue of 1998 $6,025,000
B. FUND BALANCES
_ Fund As of November 17, 2006
Reserve Fund t'I N/A
(1) The Reserve Fund is funded by a Reserve Account Surety Bond issued by the Ambac Assurance Corporation.
Ill. FINANCIAL INFORMATION
The audited financial statements for the Agency for the fiscal year ended June 30, 2006
will be separately filed with the Nationally Recognized Municipal Securities Information
Repositories and are hereby incorporated by reference into this Annual Continuing
Disclosure Information Statement.
IV. OPERATING INFORMATION
A. ASSESSED VALUATIONS
The following table set forth the Taxable Values and the Gross
Tax Increment -for the Project Area No. 2.
PROJECT AREA NO.2
Fiscal
_
Secured
Unsecured
Utility
Total Taxable
Taxable Value
")
Gross Tax
Year
Value
Value
Value
Value
Above Base
Increment
1996/97
$419,135,799
$3,521,574
$0
$422,657,373
$327,474,618
$3,510,820
1997/98
485,513,978
4,484,841
0
0
487,998,819
563,669,127
392,816,064
468,486,372
4,107,340
5,085,079
1998/99
1999100
557,362,624
653,544,147
6,306,503
5,472,923
0
659,017,070
563,834,315
6,127,144
2000/01
790,754,123
9,600,421
0
0
800,354,544
1,015,737,719
705,171,789
920,554,964
7,587,996
9,004,474
2001/02
2002/03
1,003,653,582
1,260,121,204
12,084,137
14,535,754
0
1,274,656,958
1,179,474,203
12,396,203
2003/04
1,510,073,642
20,167,571
0
0
1,530,241,213
1,767,372,408
1,435,058,458
1,672,189,653
15,158,339
17,546,203
2004/05
2005/06
1,745,868,028
2,080,975,290
21,504,380
32,295,383
0
2,113,270,673
2,018,087,918
24,812,367
2006/07
2,420,689,543
42,208,337
0
2,462,897,880
2,367,715,125
N/A
(1) The Base Value for the Project Area No. 2 is $95,182,755.
Source: Riverside County and Audited Financial Statements of the La Quinta Redevelopment Agency.
r) t
2005106, 1998 TAB Prof 2 City of La Quints 2 U . 6
B. PLEDGED TAX REVENUES AND DEBT SERVICE COVERAGE
The following table sets forth the amount of Gross Tax Increment and
Debt Service Coverage for the Bonds.
Maximum
Less:
Less:
Annual
Maximum Annual
Fiscal Gross Tax Nonsubordinated
Housing Pledged
Debt
Debt Service
Year Increment Pass Throughs t'I
Set Aside Revenues
Service (2)
Coverage
1997/98 $4,107,340 $2,181,302
$821,468 $1,104,570
$423,788
2.61
1998/99 5,085,079 2,845,255
1,017,016 1,222,808
423,788
2.89
1999/00 6,127,144 3,498,500
1,225,429 1.403,215
423,788
3.31
2000/01 7,587,996 4,445,548
1,517,600 1,624,848
423,788
3.83
2001/02 9,004,474 5,903,535
2,025,212 1,075,727
423,788
2.54
2002103 12,396,203 7,539,849
2,479,241 2,377,113
423,788
5.61
2003/04 15,158,339 9,225,122
3,031,668 2,904,549
423,788
6.84
2004/05 17,546,203 10,605,577
3,345,543 3,595,083
423,788
8.48
2005/06 24,812,367 15,269,285
4,962,474 4,580,608
423,788
10.81
(1) The Agency has entered into agreements with the
Riverside County General Fund, Riverside County Library
District, Riverside
County Fire District, Riverside County Superintendent of Schools, Coachella Valley Water District, Coachella Valley Recreation
and Parks District, Desert Sands Unified School District,
and the Coachella Valley Mosquito Abatement
District to pass through
Tax Increment on a nonsubordinated basis.
(2) Maximum Annual Debt Service on the Bonds is payable in the year 2024.
Source: Audited Financial Statements of the La Quints Redevelopment Agency and the
Statement of Indebtedness filed with the
Riverside County Auditor -Controller's Office.
C. LAND USE
PROJECT AREA NO.2
2006107 Total Percent
Land Use Secured Value of Total
Residential
$1,962,949,898
80.08%
Commercial
453,464,798
18.50%
Vacant
19,883,115
0.81%
Miscellaneous/Unknown
14,976,921
0.61%
Total Project Area No.2 $2 451,274,732 100.00%
Source' County of Riverside 2006/07 secured property roll, as compiled by MuniFinancial.
2005106, 1998 TAB Proj 2 City of La Quints
D. ANNUAL DEBT SERVICE
The following table sets forth the annual debt service for the Bonds.
Information contained in the table below was gathered and verified from
the Official Statement.
Maturity Date
_ September 1
Principal
Interest
Debt Service
2006
$105,000
$317,042.50
$422,042.50
2007
110,000
312,527.50
422,527.60
2008
115,000
307,742.50
422,742.50
2009
120,000
302,625.00
422,625.00
2010
125,000
296,475.00
421,475.00
2011
130,000
290,068.75
420,068.75
2012
140,000
283,406.25
423,406.25
2013
145,000
276,231.25
421,231.25
2014
150,000
268,800.00
418,800.00
2015
160,000
261,112.50
421,112.50
2016
170,000
252,912.50
422,912.50
2017
175,000
244,200.00
419,200.00
2018
185,000
235,231.25
420,231.25
2019
195,000
225,750.00
420,750.00
2020
205,000
215,512.50
420,512.50
2021
215,000
204,750.00
419,750.00
2022
230,000
193,462.50
423,462.50
2023
240,000
181,387.50
421,387.50
2024
255,000
168,787.50
423,787.50
2025
265,000
155,400.00
420,400.00
2026
280,000
141,487.50
421,487.50
2027
295,000
126,787.50
421,787.50
2028
310,000
111,300.00
421,300.00
2029
325,000
95,025.00
420,025.00
2030
345,000
77,962.50
422,962.50
2031
360,000
59,850.00
419,850.00
2032
380,000
40,950.00
420,950.00
2033
400000
21000.00
421,000.00
Total
$6,130,000
$5,667,787.50
$11,797,787.50
2005106, 1998 TAB Proj 2 City of La Quinta
E. REPORTING OF SIGNIFICANT EVENTS
The Continuing Disclosure Covenants outline the Significant Events that must be
reported if they are deemed material. None of the items below has occurred or
has been previously reported during the fiscal year ended June 30, 2006.
1. Principal and interest payment delinquencies on the Bonds.
2. Non-payment related defaults.
3. Unscheduled draws on debt service reserves reflecting financial
difficulties.
4. Unscheduled draws on credit enhancements reflecting financial difficulties.
5. Substitution of credit or liquidity providers, or their failure to perform.
6. Adverse tax opinions or events affecting the tax-exempt status of the
security.
7. Modifications to rights of security holders.
8. Contingent or unscheduled bond calls.
9. Defeasances.
10. Release, substitution, or sale of property securing repayments of the
securities.
11. Rating changes.
2005106, 1998 TAB Proj 2 City of La Quinta
LA QUINTA REDEVELOPMENT AGENCY
$48,000,000
LA QUINTA REDEVELOPMENT
PROJECT AREA NO. 1 TAX ALLOCATION BONDS
SERIES 2001
Riverside County, California
Dated: August 1, 2001
CUSIP: 504194
2006 ANNUAL CONTINUING DISCLOSURE
INFORMATION STATEMENT
As of November 28, 2006
Also available at:
MuniFinancial
www.muni.com
LIST OF PARTICIPANTS
CITY OF LA QUINTA
www.la-guinta.org
John Falconer
Finance Director
P.O. Box 1504
78-495 Calle Tampico
La Quinta, California 92247
(760)777-7150
DISCLOSURE CONSULTANT 8 DISSEMINATION AGENT
MuniFinancial
Temecula, CA 92590
(951)587-3500
Report available for viewing (a.
www.munLcom
UNDERWRITER
Wedbush Morgan Securities
BOND COUNSEL
Rutan & Tucker LLP
Costa Mesa, California
TRUSTEE
Brad Scarbrough
U.S. Bank Trust, N.A.
633 West 5t" Street, 24t° Floor
Los Angeles, California 90071
(213)613-6047
In its role as Disclosure Consultant and Dissemination Agent, MuniFinancial has not passed upon the accuracy,
completeness or fairness of the statements contained herein.
".. E27
INTRODUCTION
Pursuant to an Official Statement dated August 15, 2001, the La Quinta Redevelopment
Agency (the "Agency") issued $48,000,000 La Quinta Redevelopment Project Area No. 1
Tax Allocation Bonds, Series 2001, (the "2001 Bonds"). The 2001 Bonds are being issued
to finance redevelopment projects benefiting the La Quinta Redevelopment Project Area
No. 1. The 2001 Bonds are payable on a parity with the Agency's previously issued La
Quinta Redevelopment Project, Tax Allocation Refunding Bonds, Series 1994 (the "1994
Bonds"), the Agency's previously issued La Quinta Redevelopment Project Area No. 1 Tax
Allocation Bonds, Series 1998 (the "1998 Bonds"), the previously issued La Quinta
Redevelopment Project Area No. 1 Tax Allocation Bonds, Series 2002 (the "2002 Bonds")
and the Agency's, La Quinta Redevelopment Project Area No. 1 Tax Allocation Bonds,
Taxable Series 2003 (the "2003 Bonds") (collectively the "Bonds").
The City of La Quinta, (the "City") which comprises approximately 35.1 square miles, is
located in the Coachella Valley, twenty miles from Palm Springs and 127 miles from Los
Angeles.
Redevelopment Project Area No. 1, (the "Project Area No. 1") encompasses an area of
approximately 11,200 acres, which includes approximately 50.3% of the current area of the
City. The objective of the Agency is to eliminate or reduce the many instances of
economic, physical or social blight presently existing within the boundaries of the
Redevelopment Projects.
The 2001 Bonds are special obligations of the Agency and are secured by a pledge of
Pledged Tax Revenues, as defined in the Official Statement. The 2001 Bonds are not a
debt of the City, the State of California, or any of its political subdivisions and neither the
City, the State of California, nor any of its political subdivisions is liable. The 2001 Bonds do
not constitute indebtedness within the meaning of any constitutional or statutory debt limit
or restriction.
This Annual Continuing Disclosure Information Statement is being provided pursuant to a
covenant made by the Agency for the benefit of the holders of the 2001 Bonds and includes
the information specified in a Continuing Disclosure Certificate. For further information and
a more complete description of the Agency and the 2001 Bonds, reference is made to the
Official Statement.
The information set forth herein has been furnished by the Agency and by sources, which
are believed to be accurate and reliable but is not guaranteed as to accuracy or
completeness. Statements contained in this Annual Continuing Disclosure Information
Statement which involve estimates, forecasts, or other matters of opinion, whether or not
expressly so described herein, are intended solely as such and are not to be construed as
representations of fact. Further, the information and expressions of opinion contained
herein are subject to change without notice and the delivery of this Annual Continuing
Disclosure Information Statement will not, under any circumstances, create any implication
that there has been no change in the affairs of the Agency or any other parties described
herein.
2005106, 2001 TAB City of la Quinta
Uai
1
II. BOND INFORMATION
A. PRINCIPAL OUTSTANDING
Bonds As of November 17, 2006
Tax Allocation Bonds, Series 2001 $48,000,000
B. FUND BALANCES
Fund As of November 17, 2006
Reserve Fund ('1 N/A
(1) The Reserve Fund is funded by a Reserve Account Surety Bond.
Ill. FINANCIAL INFORMATION
The audited financial statements for the Agency for the fiscal year ended June 30, 2006
have been separately filed with the Nationally Recognized Municipal Securities
Information Repositories and are hereby incorporated by reference into this Annual
Continuing Disclosure Information Statement.
W OPERATING INFORMATION
A. ASSESSED VALUATIONS
The following table set forth the Taxable Values and the Gross Tax
Increment for the Project Area No. 1.
Protect Area No. t
Fiscal
Secured
Unsecured
Utility
Total Taxable
Taxable Value
(')
Gross Tax
Year
Value
Value
Value
Value
Above Base
Increment
1996/97
$1,297,020,107
$13,821,291
$0
$1,310,841,398
$1.111,443,165
$11,344,856
1997/98
1,383,340,327
13,157,051
0
1,396,497,378
1,197,099,145
12,161,694
1998/99
1,436,942.643
8,594,039
0
1,445,536,682
1,246,138,449
12,877,280
1999/00
1,627,578,717
8,034,814
0
1,635,613,531
1,436,215,298
15,659,371
2000/01
1,927,812,440
14,948,366
0
1,942,760,806
1,743,362,573
18,685,564
2001/02
2,287,724,601
14,486,563
0
2,302,211,164
2,102,812,931
20,929,840
2002/03
2,688,732,575
13,980,069
0
2,702,712,644
2,503,314,411
26,357,623
2003/04
3,062,917,787
13,537,804
0
3,076,455,591
2,877,057,358
29,958,693
2004105
3.411,082,100
13,813,852
0
3,424,895,952
3,225,497,719
33,867,116
2005/06
3,956,642,179
29,248,534
0
3,985,890,713
3,786,492,480
45,632,751
N/A
2006/07
4,779,973,573
34,084,343
0
4,814,057,916
4,614,659,683
(I) The Base Value for the Project Area No. 1 is $199,398,233.
Source: Riverside County and Audited Financial Statements of the La Quinta Redevelopment.
2005106, 2001 TAB City of La Quinta 2 V ti
0
C.
LAND USE
PROJECT AREA NO. 1
2006107 Total Percent
Land Use Secured Value of Total
Residential
$4,050,259,291
82.62%
Commercial
554,831,241
11.32%
Vacant
192,407,783
3.92%
Miscellaneous/Unknown
104,965,819
2.14%
Total Project Area No.1 $4,902,464,134 100.00%
Source: County of Riverside 2006107 secured property roll, as compiled by MuniFinancial.
PLEDGED TAX REVENUES AND DEBT SERVICE COVERAGE
The following table sets forth the amount of Gross Tax Increment and the
combined Debt Service Coverage for the Bonds.
Less
Maximum
Less:
Less:
Subordinated
Maximum
Annual Debt
cal
Gross Tax
Nonsubordinated
Housing
Pledged
Pass
Net
Annual Debt
Service
iar
Increment
Pass Throughsl'I
Set Aside
Revenues
ThroughslZl
Revenues
Service pl
Coverage
1/02
$20,929,840
$1,168,978
$4,488,487
$15,272,375
$7,025,471
$8,246,904
$3,697,867
2.23
2/03
26,357,623
1,378,611
5,271,524
19.707,488
8,371,098
11,336,390
7,887,7681dI
1.43
3104
29,958,693
1,355,988
5,991,739
22,610,966
8,603,713
14,007,253
9,890,703
1.41
4/05
33,867,116
1,448,192
6,773,423
25,645,501
10,455,214
15,190,287
9,890,703
1.54
5/06
45,632,751
1,792,709
9,126,550
35,713,492
15,318,943
19,394,549
9,890,703
1.96
(1) The Agency has entered into an agreement with the Coachella Valley Mosquito Abatement District, the Coachella Valley Water
District, and the Coachella Valley Unified School District to pass through Tax Increment on a nonsubordinated basis. Please
note, although the Coachella Valley Unified School District pass -through is presented as non -subordinated, it is non -
subordinate only to debt service on the 2002 Bonds and is subordinate to all other debt service.
(2) The Agency's subordinated pass-throughs include the County of Riverside, the Desert Sands Unified School District, and the
Desert Community College District.
(3) The combined Maximum Annual Debt Service on the 2003 Bonds, 2002 Bonds, 2001 Bonds, the 1998 Bonds and the 1994
Bonds is payable in the year 2032 in the amount of $9,890,703. A portion of the Housing Set Asides is pledged towards the
payment of 18.5% of the debt service on the 1994 Bonds.
(4) Annual Debt Service on the 2003 Bonds begins in fiscal year 2003/04.
Source: Audited Financial Statements of the La Quints Redevelopment Agency and the Statement of Indebtedness fled with the
Riverside County Auditor -Controllers Office.
o C 02005106, 2001 TAB City of La Quints 3 V � 'J
D. ANNUAL DEBT SERVICE
The following table sets forth the annual debt service for the 1994 Bonds, 1998
Bonds, 2001 Bonds, 2002 Bonds, and the 2003 Bonds. Information contained in
the table below was gathered and verified from the corresponding Official
Statements.
Maturity Date 1994 1998 2001 2002 2003 Combined
September 1, Bonds Bonds Bonds Bonds Bonds Debt Service
2006
$2,161,857
$819,520
$2,430,720
$2,475,341
$1,997,018
$9,884,456
2007
2,163,275
819,520
2,430,720
2,473,841
1,999,210
9,886.566
2008
2,161,629
819,520
2,430,720
2,475,391
2,000,554
9,887,814
2009
2,160,695
819,520
2,430,720
2,479,436
1,996,050
9,886,421
2010
2,159,880
819,520
2,430,720
2,475,676
2,000,163
9,885,959
2011
2,162,664
819,520
2,430,720
2,475,176
1,997,640
9,885,720
2012
2,160,003
819,520
2,430,720
2,477,681
1,998,755
9,886,679
2013
0
1,474,520
3,995,720
2,418,281
1,998,235
9,886,756
2014
0
1,475.460
3,997,470
2,413,031
1,996,080
9,882,041
2015
0
1,474,580
4,000,220
2,411,281
1,997,392
9,883,473
2016
0
1,476,880
3,998,720
2,412,781
1,996,208
9,884,589
2017
0
1,472,100
3,997,970
2,417,281
1,997,528
9,884,879
2018
0
1,475,500
3,997,720
2,414,531
1,996,040
9,883,791
2019
0
1,476,560
3,997,720
2,414,781
1,996,744
9,885,805
2020
0
1,475,280
3,997,720
2,412,781
1,999,328
9,885,109
2021
0
1,476,660
3,997,470
2,413,531
1,998,480
9,886,141
2022
0
1,475,440
3,996,720
2,416,781
1,999,200
9,888,141
2023
0
1,476,620
3,997,790
2,412,281
2,001,176
9,887,867
2024
0
1,474,940
3,997,485
2.413,856
1,999,096
9,885,377
2025
0
1,475,400
3,995,550
2,417,356
2,000,680
9,888,986
2026
0
1,472,740
3,996,730
2,417,525
1,997,434
9,884,429
2027
0
1,471,960
4,000,515
2,414,363
1,999,358
9,886,196
2028
0
1,472,800
3,996,395
2,417,869
2,000.808
9,887,872
2029
0
0
3,999,370
3,887,531
1,996,462
9,883,363
2030
0
0
3,998,675
3,888,013
1,996,320
9,883,008
2031
0
0
3,999,055
3,890,550
1,999,738
9,889,343
2032
0
0
0
7,889,631
2,001,072
9,890,703
r �
2005106, 2001 TAB City of La Quinta 14 U
E. REPORTING OF SIGNIFICANT EVENTS
The Continuing Disclosure Covenants outline the Significant Events that must be
reported if they are deemed material. None of the items below has occurred or
has been previously reported during the fiscal year ended June 30, 2006.
1. Principal and interest payment delinquencies on the Bonds.
2. Non-payment related defaults.
3. Unscheduled draws on debt service reserves reflecting financial
difficulties.
4. Unscheduled draws on credit enhancements reflecting financial difficulties.
5. Substitution of credit or liquidity providers, or their failure to perform.
6. Adverse tax opinions or events affecting the tax-exempt status of the
security.
7. Modifications to rights of security holders.
8. Contingent or unscheduled bond calls.
9. Defeasances.
10. Release, substitution, or sale of property securing repayments of the
securities.
11, Rating changes.
2005106, 2001 TAB City of La Quinta 5 V +l L
LA QUINTA REDEVELOPMENT AGENCY
$40,00000
LA QUINTA REDEVELOPMENT
PROJECT AREA NO. 1 TAX ALLOCATION BONDS
SERIES 2002
Riverside County, California
Dated: June 1, 2002
CUSIP: 504194
2006 ANNUAL CONTINUING DISCLOSURE
INFORMATION STATEMENT
As of November 28, 2006
Also available at: ^
InMuniFinancial
www.muni.com
LIST OF PARTICIPANTS
CITY OF LA QUINTA
www.la-guinta.org
John Falconer
Finance Director
P.O. Box 1504
78-495 Calle Tampico
La Quinta, California 92247
(760)777-7150
DISCLOSURE CONSULTANT & DISSEMINATION AGENT
MuniFinancial
Temecula, CA 92590
(951)587-3500
Report available for viewing
www.muni.com
UNDERWRITER
Wedbush Morgan Securities
BOND COUNSEL
Rutan & Tucker LLP
Costa Mesa, California
TRUSTEE
Brad Scarbrough
U.S. Bank Trust, N.A.
633 West 5th Street, 24th Floor
Los Angeles, California 90071
(213)613-6047
In its role as Disclosure Consultant and Dissemination Agent, MuniFinancial has not passed upon the accuracy,
completeness or fairness of the statements contained herein.
L INTRODUCTION
Pursuant to an Official Statement dated June 12, 2002, the La Quinta Redevelopment
Agency (the "Agency") issued $40,000,000 La Quinta Redevelopment Project Area No. 1
Tax Allocation Bonds, Series 2002, (the "2002 Bonds"). The 2002 Bonds are being issued
to finance redevelopment projects benefiting the La Quinta Redevelopment Project Area
No. 1. The 2002 Bonds are payable on a parity with the Agency's previously issued La
Quinta Redevelopment Project, Tax Allocation Refunding Bonds, Series 1994 (the "1994
Bonds"), the previously issued La Quinta Redevelopment Project Area No. 1 Tax Allocation
Bonds, Series 1998 (the "1998 Bonds"), the Agency's previously issued La Quinta
Redevelopment Project Area No. 1 Tax Allocation Bonds, Series 2001 (the "2001 Bonds")
and the Agency's La Quinta Redevelopment Project Area No. 1 Tax Allocation Bonds,
Taxable Series 2003 (the "2003 Bonds") (collectively the "Bonds").
The City of La Quinta, (the "City") which comprises approximately 35.1 square miles, is
located in the Coachella Valley, twenty miles from Palm Springs and 127 miles from Los
Angeles.
Redevelopment Project Area No. 1, (the "Project Area No. 1") encompasses an area of
approximately 11,200 acres, which includes approximately 50.3% of the current area of the
City. The objective of the Agency is to eliminate or reduce the many instances of
economic, physical or social blight presently existing within the boundaries of the
Redevelopment Projects.
The 2002 Bonds are special obligations of the Agency and are secured by a pledge of
Pledged Tax Revenues, as defined in the Official Statement. The 2002 Bonds are not a
debt of the City, the State of California, or any of its political subdivisions and neither the
City, the State of California, nor any of its political subdivisions is liable. The 2002 Bonds do
not constitute indebtedness within the meaning of any constitutional or statutory debt limit
or restriction.
This Annual Continuing Disclosure Information Statement is being provided pursuant to a
covenant made by the Agency for the benefit of the holders of the 2002 Bonds and includes
the information specified in a Continuing Disclosure Certificate. For further information and
a more complete description of the Agency and the 2002 Bonds, reference is made to the
Official Statement.
The information set forth herein has been furnished by the Agency and by sources, which
are believed to be accurate and reliable but is not guaranteed as to accuracy or
completeness. Statements contained in this Annual Continuing Disclosure Information
Statement which involve estimates, forecasts, or other matters of opinion, whether or not
expressly so described herein, are intended solely as such and are not to be construed as
representations of fact. Further, the information and expressions of opinion contained
herein are subject to change without notice and the delivery of this Annual Continuing
Disclosure Information Statement will not, under any circumstances, create any implication
that there has been no change in the affairs of the Agency or any other parties described
herein.
2005106, 2002 TAB City of La Quinta n
` U,
Il. BOND INFORMATION
A. PRINCIPAL OUTSTANDING
Bonds As of November 17, 2006
Tax Allocation Refunding Bonds, Series 2002 $37,675,000
B. FUND BALANCES
_ Fund As of November 17, 2006
Reserve Fund (') N/A
(1) The Reserve Fund is funded by a Reserve Account Surety Bond.
/it. FINANCIAL INFORMATION
The audited financial statements for the Agency for the fiscal year ended June 30, 2006
have been separately filed with the Nationally Recognized Municipal Securities
Information Repositories and are hereby incorporated by reference into this Annual
Continuing Disclosure Information Statement.
IV. OPERATING INFORMATION
A. ASSESSED VALUATIONS
The following table set forth the Taxable Values and the Gross Tax
Increment for the Project Area No. 1.
Fiscal
Secured
Unsecured
Utility
Total Taxable
Taxable Value
Gross Tax
Year
Value_
Value
Value
Value
Above Base (')
Increment
1996/97
$1,297,020,107
$13,821,291
$0
$1,310,841,398
$1,111,443,165
$11,344,856
1997/98
1,383,340,327
13,157,051
0
1,396,497,378
1,197,099,145
12,161,894
1998/99
1,436,942,643
8,594,039
0
1,445,536,682
1,246,138,449
12,877,280
1999/00
1,627,578,717
8,034,814
0
1,635,613,531
1,436,215,298
15,659,371
2000/01
1,927,812,440
14,948,366
0
1,942,760,806
1,743,362,573
18,685,564
2001/02
22287,724,601
14,486,563
0
2,302,211,164
2,102,812,931
20,929,840
2002/03
2,686,732,575
13,980,069
0
2,702,712,644
2,503,314,411
26,357,623
2003/04
3,062,917,787
13,537,804
0
3,076,455,591
2,877,057,358
29,958,693
2004/05
3,411,082,100
13,813,852
0
3,424,895,952
3,225,497,719
33,867,116
2005/06
3,956,642,179
29,248,534
0
3,985,890,713
3,786,492,480
45,632,751
2006/07
4,779,973,573
34,084,343
0
4,814,057,916
4,614,659,683
N/A
(I) The Base Value for the Project Area No. 1 is $199,398,233.
Source: Riverside County and Audited Financial Statements of the La Quinta Redevelopment Agency.
t)iU
2005106, 2002 TAB City of La Quints
B. LAND USE
PROJECT AREA NO.1
2006107 Total
Percent
Land Use
Secured Value
of Total
Residential
$4,050,259,291
82.62%
Commercial
554,831,241
11.32%
Vacant
192,407,783
3.92%
Miscellaneous/Unknown
104,965,819
2.14%
Total Project Area No. 1
$4,902,464,134
100.00%
Source: County of Riverside 2006/07 secured property roll, as compiled by MuniFinancial.
C. PLEDGED TAX REVENUES AND DEBT SERVICE COVERAGE
The following table sets forth the amount of Gross Tax Increment and the
combined Debt Service Coverage for the Bonds.
Less
Maximum
Less:
Less:
Subordinated
Maximum
Annual Debt
,at
Gross Tax
Nonsubordinated
Housing
Pledged
Pass
Net
Annual Debt
Service
ar
Increment
Pass Throughsttl
Set Aside
Revenues
Throughst:I
Revenues
Service t'I
Coverage
/02
$20,929,840
$1,168,978
$4,488,487
$15,272,375
$7,025,471
$8,246,904
$3,697,867
2.23
V03
26,357,623
1,378,611
5,271,524
19,707,488
8,371,098
11,336,390
7,887,7681"I
1.43
1/04
29,958,693
1,355,988
5,991,739
22,610,966
8,603.713
14,007,253
9,890,703
1.41
l/05
33,867,116
1,448,192
6,773,423
25,645,501
10,455,214
15,190,287
9,890,703
1.54
06
45,632.751
1,792,709
9,126,550
35,713,492
15,318,943
19,394,549
9,890,703
1.96
(1) The Agency has entered into an agreement with the Coachella Valley Mosquito Abatement District, the Coachella Valley Water
District, and the Coachella Valley Unified School District to pass through Tax Increment on a nonsubordinated basis. Please
note, although the Coachella Valley United School District pass -through is presented as non -subordinated, it is non -
subordinate only to debt service on the 2002 Bonds and is subordinate to all other debt service.
(2) The Agency's subordinated pass -through$ Include the County of Riverside, the Desert Sands Unified School District, and the
Desert Community College District.
(3) The combined Maximum Annual Debt Service on the 2003 Bonds, 2002 Bonds, 2001 Bonds, the 1998 Bonds and the 1994
Bonds is payable in the year 2032 in the amount of $9.890.703. A portion of the Housing Set Asides is pledged towards the
payment of 18.5% of the debit service on the 1994 Bonds. '
(4) Annual Debt Service on the 2003 Bonds begins in fiscal year 2003/04.
Source: Audited Financial Statements of the La Quints Redevelopment Agency and the Statement of Indebtedness filed with the
Riverside County Auditor -Controllers Office.
2005106, 2002 TAB City of La Quinta
D. ANNUAL DEBT SERVICE
The following table sets forth the annual debt service for the 1994 Bonds, 1998
Bonds, 2001 Bonds, 2002 Bonds, and the 2003 Bonds. Information contained in
the table below was gathered and verified from the corresponding Official
Statements.
Maturity Date
1994
1998
2001
2002
2003
Combined
September1,
Bonds
Bonds
Bonds
Bonds
Bonds
Debt Service
2006
$2,161,857
$819,520
$2,430,720
$2,475,341
$1,997,018
$9,884,456
2007
2,163,275
819,520
2,430,720
2,473,841
1,999,210
9,886,566
2008
2,161,629
819,520
2,430,720
2,475,391
2,000,554
9,887,814
2009
2,160,695
819,520
2,430,720
2,479,436
1,996,050
9,886,421
2010
2,159,880
819,520
2,430,720
2,475,676
2,000,163
9,885,959
2011
2,162,664
819,520
2,430,720
2,475,176
1,997,640
9,885,720
2012
2,160,003
819,520
2,430,720
2,477,681
1,998,755
9,886,679
2013
0
1,474,520
3,995,720
2,418,281
1,998,235
9,886,756
2014
0
1,475,460
3,997,470
2,413,031
1,996,080
9,882,041
2015
0
1,474,580
4,000,220
2,411,281
1,997,392
9,883,473
2016
0
1,476,880
3,998,720
2,412,781
1,996,208
9,884,589
2017
0
1,472,100
3,997,970
2,417,281
1,997,528
9,884,879
2018
0
1,475,500
3,997,720
2,414,531
1,996,040
9,883,791
2019
0
1,476,560
3,997,720
2,414,781
1.996,744
9,885,805
2020
0
1,475,280
3,997,720
2,412,781
1,999,328
9,885,109
2021
0
1,476,660
3,997,470
2,413,531
1,998,480
9,886,141
2022
0
1,475,440
3,996,720
2,416,781
1,999,200
9,888.141
2023
0
1,476,620
3,997,790
2,412,281
2,001,176
9,887,867
2024
0
1,474,940
3,997,485
2,413,856
1,999,096
9,885,377
2025
0
1,475,400
3,995,550
2,417,356
2,000,680
9,888,986
2026
0
1,472,740
3,996,730
2,417,525
1,997,434
9,884,429
2027
0
1,471,960
4,000,515
2,414,363
1,999,358
9,886,196
2028
0
1,472,800
3,996.395
2,417,869
2,000,808
9,887,872
2029
0
0
3,999,370
3,887,531
1,996,462
9,883,363
2030
0
0
3,998,675
3,888,013
1,996,320
9,883,008
2031
0
0
3,999,055
3,890,550
1,999,738
9,889,343
2032
0
0
0
7,889,631
2,001,072
9,890,703
Total
$15,130 003
_
$29 334 080
$92,974,055
$75,526,577
$53,956,769
$266,921,484
r
2005106, 2002 TAB City of La Quinta 4
E. REPORTING OF SIGNIFICANT EVENTS
The Continuing Disclosure Covenants outline the Significant Events that must be
reported if they are deemed material. None of the items below has occurred or
has been previously reported during the fiscal year ended June 30, 2006.
1. Principal and interest payment delinquencies on the Bonds.
2. Non-payment related defaults.
3. Unscheduled draws on debt service reserves reflecting financial
difficulties.
4. Unscheduled draws bn credit enhancements reflecting financial difficulties.
5. Substitution of credit or liquidity providers, or their failure to perform.
6. Adverse tax opinions or events affecting the tax-exempt status of the
security.
7. Modifications to rights of security holders.
8. Contingent or unscheduled bond calls.
9. Defeasances.
10, Release, substitution, or sale of property securing repayments of the
securities.
11. Rating changes.
2005106, 2002 TAB City of La Quinta
LA QUINTA REDEVELOPMENT AGENCY
$26,400,000
LA QUINTA REDEVELOPMENT
PROJECT AREA NO. 1 TAX ALLOCATION BONDS
TAXABLE SERIES 2003
Riverside County, California
Dated: September 1, 2003
CUSIP: 504194
2006 ANNUAL CONTINUING DISCLOSURE
INFORMATION STATEMENT
As of November 28, 2006
Also available at: IIILLL
isMuniFinancial
www.muni.com
LIST OF PARTICIPANTS
CITY OF LA QUINTA
www.la-guinta.org
John Falconer
Finance Director
P.O. Box 1504
78-495 Calle Tampico
La Quinta, California 92247
(760)777-7150
DISCLOSURE CONSULTANT & DISSEMINATION AGENT
MuniFinancial
Temecula, CA 92590
(951)587-3500
Report available for viewing A
www.muni.com
UNDERWRITER
Wedbush Morgan Securities
BOND COUNSEL
Rutan & Tucker LLP
Costa Mesa, California
TRUSTEE
Brad Scarbrough
U.S. Bank Trust, N.A.
633 West 5th Street, 24th Floor
Los Angeles, California 90071
(213)613-6047
In its role as Disclosure Consultant and Dissemination Agent, MuniFinancial has not passed upon the accuracy,
completeness or fairness of the statements contained herein.
L INTRODUCTION
Pursuant to an Official Statement dated September 10, 2003, the La Quinta
Redevelopment Agency (the "Agency") issued $26,400,000 La Quinta Redevelopment
Project Area No. 1 Tax Allocation Bonds, Taxable Series 2003, (the "2003 Bonds"). The
2003 Bonds are being issued to finance redevelopment projects benefiting the La Quinta
Redevelopment Project Area No. 1. The 2003 Bonds are payable on a parity with the
Agency's previously issued La Quinta Redevelopment Project, Tax Allocation Refunding
Bonds, Series 1994 (the "1994 Bonds"), the previously issued La Quinta Redevelopment
Project Area No. 1 Tax Allocation Bonds, Series 1998 (the "1998 Bonds"), the previously
issued La Quinta Redevelopment Project Area No. 1 Tax Allocation Bonds, Series 2001
(the "2001 Bonds") and the Agency's previously issued La Quinta Redevelopment Project
Area No. 1 Tax Allocation Bonds, Series 2002 (the "2002 Bonds") (collectively the "Bonds").
The City of La Quinta, (the "City") which comprises approximately 35.1 square miles, is
located in the Coachella Valley, twenty miles from Palm Springs and 127 miles from Los
Angeles.
Redevelopment Project Area No. 1, (the "Project Area No. 1") encompasses an area of
approximately 11,200 acres, which includes approximately 50.3% of the current area of the
City. The objective of the Agency is to eliminate or reduce the many instances of
economic, physical or social blight presently existing within the boundaries of the
Redevelopment Projects.
The 2003 Bonds are special obligations of the Agency and are secured by a pledge of
Pledged Tax Revenues, as defined in the Official Statement. The 2003 Bonds are not a
debt of the City, the State of California, or any of its political subdivisions and neither the
City, the State of California, nor any of its political subdivisions is liable. The 2003 Bonds do
not constitute indebtedness within the meaning of any constitutional or statutory debt limit
or restriction.
This Annual Continuing Disclosure Information Statement is being provided pursuant to a
covenant made by the Agency for the benefit of the holders of the 2003 Bonds and includes
the information specified in a Continuing Disclosure Certificate. For further information and
a more complete description of the Agency and the 2003 Bonds, reference is made to the
Official Statement.
The information set forth herein has been furnished by the Agency and by sources, which
are believed to be accurate and reliable but is not guaranteed as to accuracy or
completeness. Statements contained in this Annual Continuing Disclosure Information
Statement which involve estimates, forecasts, or other matters of opinion, whether or not
expressly so described herein, are intended solely as such and are not to be construed as
representations of fact. Further, the information and expressions of opinion contained
herein are subject to change without notice and the delivery of this Annual Continuing
Disclosure Information Statement will not, under any circumstances, create any implication
that there has been no change in the affairs of the Agency or any other parties described
herein.
r
L
2005106, 2003 TAB City of La Quinta
It. BOND INFORMATION
A. PRINCIPAL OUTSTANDING
_ Bonds As of November 17, 2006
Tax Allocation Bonds, Taxable Series 2003 $25,185,000
B. FUND BALANCES
_ Fund As of November 17, 2006
Reserve Fund ('1 N/A
(1) The Reserve Fund is funded by a Reserve Account Surety Bond.
111. FINANCIAL INFORMATION
The audited financial statements for the Agency for the fiscal year ended June 30, 2006
have been separately filed with the Nationally Recognized Municipal Securities
Information Repositories and are hereby incorporated by reference into this Annual
Continuing Disclosure Information Statement.
IV. OPERATING INFORMATION
A. ASSESSED VALUATIONS
The following table set forth the Taxable Values and the Gross Tax
Increment for the Project Area No. 1.
Fiscal
Secured
Unsecured
Utility
Total Taxable
Taxable Value
Gross Tax
Year
Value_
Value
Value
Value
Above Base tit
Increment
1996/97
$1,297,020,107
$13,821,291
$0
$1,310,841,398
$1,111,443,165
$11,344,856
1997/98
1,383,340,327
13,157,051
0
1,396,497,378
1,197,099,145
12,161,894
1998199
1,436,942,643
8,594,039
0
1.445,536,682
1,246,138,449
12,877,280
1999/00
1,627,578,717
8,034,814
0
1,635,613,531
1,436,215,298
15,659,371
2000/01
1,927,812,440
14,948,366
0
1,942,760,806
1,743,362,573
18,685,564
2001/02
2,287,724,601
14,486,563
0
2,302,211,164
2,102,812,931
20,929,840
2002103
2,688,732,575
13,980,069
0
2,702,712,644
2,503,314,411
26,357,623
2003/04
3,062,917,787
13,537,804
0
3,076,455,591
2,877,057,358
29,958,693
2004/05
3,411,082,100
13,813,852
0
3,424,895,952
3,225,497,719
33,867,116
2005/06
3,956,642,179
29,248,534
0
3,985,890,713
3,786,492,480
45,632,751
2006/07
4,779,973,573
34,084,343
0
4,814,057,916
4,614,659,683
N/A
(1) The Base Value for the Project Area No. 1 is $199,398,233.
Source: Riverside County and Audited Financial Statements of the La Quinta Redevelopment Agency.
2005106, 2003 TAB City of La Quints
B.
C.
LAND USE
PROJECT AREA NO. 1
2006107 Total Percent
Land Use Secured Value of Total
Residential
$4,050,259,291
82.62%
Commercial
554,831,241
11.32%
Vacant
192,407,783
3.92%
Miscellaneous/Unknown
104,965,819
2.14%
Total Project Area No. 1 $4,902,464,134 100.00%
Source: County of Riverside 2006107 secured property roll, as compiled by MuniFinancial.
PLEDGED TAX REVENUES AND DEBT SERVICE COVERAGE
The following table sets forth the amount of Gross Tax Increment and the
combined Debt Service Coverage for the Bonds.
Less
Maximum
Less:
Less:
Subordinated
Maximum
Annual Debi
cal
Gross Tax
Nonsubordinated
Housing
Pledged
Pass
Net
Annual Debt
Service
ar
Increment
Pass Throughsl'I
Set Aside
Revenues
Throughs(2)
Revenues
Service (3)
Coverage
1102
$20,929,840
$1,168,978
$4,488,487
$15,272,375
$7,025,471
$8,246,904
$3697,867
2.23
2/03
26,357,623
1,378,611
5,271,524
19,707,488
8,371,098
11,336,390
7:887,768"1
1.43
3/04
29,958,693
1,355,988
5,991,739
22,610,966
8,603,713
14,007,253
9,890.703
1.41
V05
33,867,116
1,448,192
6,773,423
25,645,501
10,455,214
15,190,287
9,890,703
1.54
5106
45,632,751
1,792,709
9,126.550
35,713,492
15,318,943
19,394,549
9,890,703
1.96
(1) The Agency has entered into an agreement with the Coachella Valley Mosquito Abatement District, the Coachella Valley Water
District, and the Coachella Valley Unified School District to pass through Tax Increment on a nonsubordinated basis. Please
note, although the Coachella Valley Unified School District pass -through is presented as non -subordinated, it is non -
subordinate only to debt service on the 2002 Bonds and Is subordinate to all other debt service.
(2) The Agency's subordinated pass-throughs include the County of Riverside, the Desert Sands Unified School District, and the
Desert Community College District.
(3) The combined Maximum Annual Debt Service on the 2002 Bonds, 2001 Bonds, the 1998 Bonds and the 1994 Bonds is
payable in the year 2009 in the amount of $7,890,371. The combined Maximum Annual Debt Service on the 2003 Bonds, 2002
Bonds, 2001 Bonds, the 1998 Bonds and the 1994 Bonds is payable in the year 2032 in the amount of $9,890,703. A portion
of the Housing Set Asides is pledged towards the payment of 18.5% of the debt service on the 1994 Bonds.
(4) Annual Debt Service on the 2003 Bonds begins in fiscal year 2003104.
Source: Audited Financial Statements of the La Ouinta Redevelopment Agency and the Statement of Indebtedness fled with the
Riverside County Auditor -Controller's Office.
2005106, 2003 TAB City of La Quinta
3 Vq 1
D. ANNUAL DEBT SERVICE
The following table sets forth the annual debt service for the 1994 Bonds, 1998
Bonds, 2001 Bonds, 2002 Bonds and the 2003 Bonds. Information contained in
the table below was gathered and verified from the corresponding Official
Statements.
Maturity Date
1994
1998
2001
2002
2003
Combined
September 1,
Bonds
Bonds
Bonds
Bonds
Bonds
Debt Service
2006
$2,161,857
$819,520
$2,430,720
$2,475,341
$1,997,018
$9,884,456
2007
2,163,275
819,520
2,430,720
2,473,841
1,999,210
9,886,566
2008
2,161,629
819,520
2,430,720
2,475,391
2,000,554
9,887,814
2009
2,160,695
819,520
2,430,720
2,479,436
1,996,050
9,886,421
2010
2,159,880
819,520
2,430,720
2,475,676
2,000,163
9,885,959
2011
2,162,664
819,520
2,430,720
2,475,176
1,997,640
9,885,720
2012
2,160,003
819,520
2,430,720
2,477,681
1,998,755
9,886,679
2013
0
1,474,520
3,995,720
2,418,281
1,998,236
9,886,756
2014
0
1,475,460
3,997,470
2,413,031
1,996,080
9,882,041
2015
0
1,474,580
4,000,220
2,411,281
1,997,392
9,883,473
2016
0
1,476,880
3,998,720
2,412,781
1,996,208
9,884,589
2017
0
1,472,100
3,997,970
2,417,281
1,997.528
9,884,879
2018
0
1,475,500
3,997,720
2,414,531
1,996,040
9,883,791
2019
0
1,476,560
3,997,720
2,414,781
1,996,744
9,885,805
2020
0
1,475,280
3,997,720
2,412,781
1,999,328
9,885,109
2021
0
1,476,660
3,997,470
2,413,531
1,998,480
9,886,141
2022
0
1,475,440
3,996,720
2,416,781
1,999,200
9,888,141
2023
0
1,476,620
3,997,790
2,412,281
2,001,176
9,887,867
2024
0
1,474,940
3,997,485
2,413,856
1,999,096
9,885,377
2025
0
1,475,400
3,995,550
2,417,356
2,000,680
9,888,986
2026
0
1,472,740
3,996,730
2,417,525
1,997,434
9,884,429
2027
0
1,471,960
4,000,515
2,414,363
1,999,358
9,886,196
2028
0
1,472,800
3,996,395
2.417,869
2,000,808
9,887,872
2029
0
0
3,999,370
3,887,531
1,996,462
9,883,363
2030
0
0
3,998,675
3,888,013
1,996,320
9,883,008
2031
0
0
3,999,055
3,890,550
1,999,738
9,889,343
2032
0
0
0
7,889,631
2,001,072
9,890,703
Total
$15,130,003
$29,334,080
$92,974,055
$75,526,577
$53,956,769
$266,921,484
2005106, 2003 TAB City of La Quinta
E. REPORTING OF SIGNIFICANT EVENTS
The Continuing Disclosure Covenants outline the Significant Events that must be
reported if they are deemed material. None of the items below has occurred or
has been previously reported during the fiscal year ended June 30, 2006.
1. Principal and interest payment delinquencies on the Bonds.
2. Non-payment related defaults.
3. Unscheduled draws on debt service reserves reflecting financial
difficulties.
4. Unscheduled draws on credit enhancements reflecting financial difficulties.
5. Substitution of credit or liquidity providers, or their failure to perform.
6. Adverse tax opinions or events affecting the tax-exempt status of the
security.
7. Modifications to rights of security holders.
8. Contingent or unscheduled bond calls.
9. Defeasances.
10. Release, substitution, or sale of property securing repayments of the
securities.
11, Rating changes.
2005106, 2003 TAB City of La Quinta
Tay/ 4 4 a"
COUNCIL/RDA MEETING DATE: December 5, 2006
ITEM TITLE: Issuance of Consent by the La Quinta
Redevelopment Agency to the Recordation of a
Development Agreement No. 2006-012 (City of La
Quinta/LDD SilverRock, LLC) and Authorize the
Executive Director to Execute the Consent to the
Recordation
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: 4
PUBLIC HEARING:
Consent to the recordation of Development Agreement No. 2006-012 by and between
the City of La Quinta and LDD SilverRock, LLC, and authorize the Executive Director to
execute the Agency Consent form contained within the Development Agreement.
FISCAL IMPLICATIONS:
In addition to the Transient Occupancy Tax (TOT) which the project will generate, the
Development Agreement establishes fees for condo hotels and fractional/timeshare
units. These revenues will be generated to the City. Project development will
generate additional tax increment to the Redevelopment Project Area No. 1.
BACKGROUND AND OVERVIEW:
On November 21, 2006, the City Council took up and introduced Ordinance Number
433, approving Development Agreement 2006-012 by and between the City of La
Quinta and LDD SilverRock, LLC. The second reading is on today's agenda. As part of
the approval of the Development Agreement, the Agency Board must give its consent
to have the Development Agreement recorded against the property to be developed by
LDD SilverRock, LLC.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency Board include:
Consent to the recordation of Development Agreement No. 2006-012 by and
between the City of La Quinta and LDD SilverRock, LLC, and authorize the
Executive Director to execute the Agency Consent form contained within the
Development Agreement; or
2. Do not consent to the recordation of Development Agreement No. 2006-012 by
and between the City of La Quinta and LDD SilverRock, LLC, and do not
authorize the Executive Director to execute the Agency Consent form contained
within the Development Agreement; or
3. Provide staff with alternative direction.
Respectfully submitted,
Thomas P. Genovese
Executive Director
0. Tay/ 4 AP i2amm
io
s
cEM OF'['K�'�
COUNCIL/RDA MEETING DATE: December 5, 2005 AGENDA CATEGORY:
BUSINESS SESSION:
ITEM TITLE: Adoption of a Resolution of the CONSENT CALENDAR: J
Redevelopment Agency Approving a Purchase and
Sale Agreement Between the Redevelopment STUDY SESSION:
Agency and Dennis D. Fountain, for Property PUBLIC HEARING:
Located at 46-150 Dune Palms Road (APN 600-
030-003), and the Appropriation of $400,000 for
Acquisition, Relocation, and Demolition
RECOMMENDATION:
Adopt a Resolution of the Redevelopment Agency approving the form of the
Agreement for Purchase and Sale and Escrow Instructions; and appropriate
$400,000 from the Available Unreserved Fund Balances in Low- and Moderate -
Income Fund Project Area 2 (Account # 246-0000-290-00-00) to underwrite
acquisition, relocation and demolition costs, and subject to further changes and/or
modifications as approved by the Executive Director and Agency Counsel.
FISCAL IMPLICATIONS:
Purchasing this property will result in the expenditure of up to $400,000 of
Available Unreserved Fund Balances in Low- and Moderate -Income Fund Project
Area 2. As the Agency endeavors to purchase other properties located southeast
of the intersection of Westward Ho Drive and Dune Palms Road, up to $2,400,000
of additional housing fund expenditures may be required to acquire these other
properties and relocate their occupants.
BACKGROUND AND OVERVIEW:
The Agency Board directed the Executive Director to transmit a letter to six
property owners who have holdings southeast of the Westward Ho Drive and Dune
Palms Road intersection. The Agency Board indicated an interest in purchasing
these properties so that:
The City may widen Dune Palms Road from the CVWD Stormwater Channel
north to Westward Ho. The proposed Dune Palms Road alignment will result
in the roadway being adjacent to front entries of the existing homes,
requiring a full versus a partial takes to accommodate street widening
activities.
V ,�
o The Agency may enlarge the site it owns immediately southeast of the
Westward Ho/Dune Palms Road intersection to accommodate CVWD well
site parcel size requirements (this property is scheduled to be improved and
transferred to CVWD to satisfy some of the SilverRock domestic well
requirements).
The Agency may assemble parcels for affordable housing development.
A letter was transmitted to the owners and RSG was subsequently contacted by all
of the owners. Two of these owners have sold their properties to the Agency and
have been successfully relocated. Within the last two months two of the
remaining four property owners have come forward expressing an interest in
entering into property acquisition negotiations with the Agency. The total land area
of the six properties encompasses 5.12 acres.
The attached Purchase and Sale Agreement (Attachment 1) is the third staff has
prepared on this project and is similar in its terms to the other agreements.
Attachment 2 identifies the subject property. This Agreement involves a 7,405
square foot parcel that is developed with a single-family residence and workshop;
this property fronts Dune Palms Road. The property owner, Mr. Dennis D.
Fountain, has agreed to sell his property at the appraised value ($319,000) and his
family will require up to $61,000 in relocation assistance. The relocation
assistance will facilitate their move to a comparable home they wish to purchase in
La Quinta. When acquired, the existing improvements will be demolished, the
Dune Palms Road frontage will be dedicated to the City to facilitate Dune Palms
Road widening, and the remaining property will be combined with the adjoining
parcels as they are acquired.
Staff is requesting the appropriation of an additional $20,000 for demolition
activities after the site has become vacated.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency Board include:
1. Adopt a Resolution of the Redevelopment Agency approving the form of the
Agreement for Purchase and Sale; and appropriate $400,000 from the
Available Unreserved Fund Balances in Low- and Moderate -Income Fund
Project Area 2 (Account # 246-0000-290-00-00), and subject to further
changes and/or modifications as approved by the Executive Director and
Agency legal counsel; or
2. Do not adopt the Resolution approving the form of the Agreement for
Purchase and Sale and funding appropriation; or
v.
3. Provide staff with alternative direction.
Respectfully submitted,
Douglas R.
Community
Approved for submission by:
r A.ew--e-�
Thomas P. Genovese, Executive Director
Attachments: 1 . Purchase and Sale Agreement
2. Vicinity Map
U 15
RESOLUTION RA NO. 2006
A RESOLUTION OF THE LA QUINTA REDEVELOPMENT
AGENCY APPROVING AN AGREEMENT FOR PURCHASE
AND SALE AND ESCROW INSTRUCTIONS BY AND
BETWEEN THE AGENCY AND DENNIS D. FOUNTAIN,
FOR THE AGENCY'S PURCHASE OF REAL PROPERTY
FOR AFFORDABLE HOUSING PURPOSES AND
ALLOCATING $400,000 TO FUND THE ACQUISITION,
RELOCATION, AND DEMOLITION
PURCHASE AND SALE AGREEMENT
DENNIS D. FOUNTAIN
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 Project Area No. 2 ("Project
Area"), on May 16, 1989, by Ordinance No. 139; and
WHEREAS, a fundamental purpose of the CRL is to expand the supply
of low- and moderate -income housing (Health & Saf. Code, § 33071); and
WHEREAS, the Agency staff has negotiated an Agreement for
Purchase and Sale and Escrow Instructions ("Agreement") with Dennis D. Fountain
("Seller"), for the Agency's purchase of real property located at 46-150 Dune
Palms Road and known as APN 600-030-003 (the "Property"), for Three Hundred
and Nineteen Thousand Dollars ($319,000); and
WHEREAS, the residents of the Property are entitled to relocation
assistance in the amount of approximately $61,000 pursuant to the California
Relocation Assistance Act (Govt. Code section 7260 et seq.); 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.
NOW, THEREFORE, BE IT RESOLVED BY THE LA QUINTA REDEVELOPMENT
AGENCY AS FOLLOWS:
Section 1. That the above recitals are true and correct and incorporated r
herein.
Resolution RA No. 2006
Purchase and Sale Agreement
Dennis Fountain
Adopted: December 5, 2006
Section 2. 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.
Section 3. 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 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.
Section 4. The Agency authorizes the expenditure of $400,000 to close the
transaction contemplated by the Purchase Agreement, provide relocation benefits
and demolish and clear the site from the Available Unreserved Fund Balances in
Low and Moderate Income Fund Project Area 2 (Account #24600002900000).
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:
AYES:
NOES:
ABSENT:
ABSTAIN:
LEE OSBORNE, Agency Chair
City of La Quinta, California
ATTEST:
VERONICA J. MONTECINO, CMC, Agency Secretary
City of La Quinta, California
-2-
UJ.
Resolution RA No. 2006
Purchase and Sale Agreement
Dennis Fountain
Adopted: December 5, 2006
APPROVED AS TO FORM:
M. KATHERINE JENSON, Agency Counsel
City of La Quinta, California
5�4
-3-
Attachment 1
AGREEMENT FOR PURCHASE AND SALE AND
ESCROW INSTRUCTIONS
BY AND BETWEEN
DENNIS D. FOUNTAIN
("SELLER")
M-1
LA QUINTA REDEVELOPMENT AGENCY
(`BUYER")
r r
2156/015610-0090
766015.01 all/29/06
TABLE OF CONTENTS
Pape
1.
PROPERTY....................................................................................................................1
1.1 Improvements.....................................................................................................1
1.2 Fixtures and Personal Property...........................................................................1
2.
PURCHASE PRICE.........................................................................................................2
2.1 Amount.................................................................................................................2
2.2 Payment of Purchase Price....................................................................................2
3.
RELOCATION ASSISTANCE........................................................................................2
4.
ESCROW..........................................................................................................................2
4.1 Opening of Escrow...............................................................................................2
4.2 Escrow Instructions...............................................................................................2
5.
TITLE MATTERS............................................................................................................3
6.
CLOSE OF ESCROW......................................................................................................4
6.1 Close of Escrow; Closing Date.............................................................................4
6.2 Recordation; Release of Funds and Documents...................................................4
7.
DELIVERY OF DOCUMENTS REQUIRED FROM BUYER AND SELLER.............4
7.1 Buyer's Obligations..............................................................................................4
7.2 Seller's Obligations...............................................................................................4
8.
TITLE INSURANCE POLICY........................................................................................5
8.1 Title Policy............................................................................................................
5
8.2 Payment for Title Policy.......................................................................................5
9.
REAL PROPERTY TAXES AND ASSESSMENTS......................................................5
10.
CONDITIONS PRECEDENT TO CLOSING.................................................................6
10.1 Conditions Precedent to Buyer's Obligations.......................................................6
10.2 Conditions Precedent to Seller's Obligations.......................................................6
11.
POSSESSION..................................................................................................................7
12. ALLOCATION OF COSTS.............................................................................................8
12.1 Buyer's Costs........................................................................................................8
12.2 Seller's Costs........................................................................................................ 8
2156/015610-0090
766015 01 at 1/29/06
Pase
13.
CONDEMNATION..........................................................................................................8
14.
HAZARDOUS MATERIALS.........................................................................................8
15.
COVENANTS OF SELLER.............................................................................................9
16.
MISCELLANEOUS.........................................................................................................9
16.1 Assignment...........................................................................................................9
16.2 Notices..................................................................................................................9
16.3 Fair Meaning.......................................................................................................10
16.4 Headings.............................................................................................................10
16.5 Choice of Laws; Litigation Matters....................................................................10
16.6 Nonliability of Buyer Officials...........................................................................10
16.7 Gender; Number..................................................................................................10
16.8 Survival...............................................................................................................10
16.9 Time of Essence..................................................................................................10
16.10 Waiver or Modification.......................................................................................10
16.11 Broker's Fees......................................................................................................10
16.12 Duplicate Originals.............................................................................................11
16.13 Severability.........................................................................................................11
16.14 Exhibits...............................................................................................................11
16.15 Authority.............................................................................................................11
16.16 Entire Agreement; Amendment..........................................................................
I I
EXHIBITS
Exhibit A
Legal Description of Property
Exhibit B
Form of Grant Deed
Exhibit C
Form of Affidavit of Non -Foreign Entity
Exhibit D
Bill of Sale
Exhibit E
Escrow Instructions
Exhibit F
Special Escrow Instructions
2156/015610-0090
766015 01 al1/29/06 -11-
AGREEMENT FOR PURCHASE AND SALE
AND ESCROW INSTRUCTIONS
THIS AGREEMENT FOR PURCHASE AND SALE AND ESCROW INSTRUCTIONS
("Agreement") is made and entered into as of December 6, 2006 ("Effective Date") by and
between Dennis D. Fountain ( "Seller") and the LA QUINTA REDEVELOPMENT AGENCY, a
public body corporate and politic ("Buyer").
RECITALS:
A. Seller represents and warrants that he is the sole and exclusive fee title owner of
that certain real property located in the City of La Quinta, County of Riverside, State of
California, commonly known as 46-150 Dune Palms Road (APN 600-030-003), more
particularly described in the legal description attached hereto as Exhibit "A" (the "Real
Property") improved with a residential dwelling, a wood working shop and other related
accessory structures and improvements (the "Improvements").
B. Buyer desires to purchase the Property (as that term is defined below) from Seller,
and Seller desires to sell the Property to Buyer, on the terms and conditions set forth herein.
C. On November 29, 2006, Buyer issued an offer letter to Seller indicating Buyer's
intention to acquire the Property; Buyer is acquiring the Property for the public purpose of
developing the Real Property as an affordable housing project. This action will cause Seller to
become a displaced person pursuant to the California Relocation Assistance Act (Cal. Govt.
Code § 7260 et seq.) and Buyer is complying with the provisions of the Relocation Assistance
Act. Seller represents that they have found property that they desire to move to, and, therefore,
have requested that the Buyer expedite the processing of this Agreement in order for Seller to
acquire property that it desires to move to.
AGREEMENT:
NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated
into this Agreement, and mutual covenants herein contained, the parties hereto agree as follows:
1. PROPERTY. Subject to all of the terms, conditions and provisions of this Agreement,
and for the consideration herein set forth, Seller hereby agrees to sell to Buyer and Buyer hereby
agrees to purchase from Seller the Real Property and Seller hereby agrees to sell and Buyer
hereby agrees to buy the following:
1.1 Improvements. Seller's interest in and to the Improvements and all tenements,
hereditaments and appurtenances thereto, subject to the Permitted Exceptions (as that term is
defined in Section 8.1);
1.2 Fixtures and Personal Property. Any and all fixtures and fittings that are attached
to the Real Property and Improvements, all existing electrical, mechanical, lighting, plumbing
2156/015610-0090
766015 01 at1/29/06
and heating fixtures, ceiling fans, fireplace inserts, gas logs and grates, solar systems, built-in
appliances, window and door screens, awnings, shutters, window coverings, attached floor
coverings, television antennas, private integrated telephone systems, air coolers/conditioners,
pool/spa equipment, garage door openers/remote controls, mailbox, in -ground landscaping,
trees/shrubs, water softeners, water purifiers, and security systems/alarms (collectively, the
"Fixtures and Personal Property"). However, Buyer and Seller agree that Seller may remove the
following items in the home: (1) bar cabinet in the kitchen; (2) ceiling fans; and (3) solid wood
paneling in the kitchen and living room. Seller shall use due care in removing these items and
shall not cause waste to the Real Property in removing such items.
The Real Property, the Improvements, and the Personal Property are hereinafter
collectively referred to as the "Property."
2. PURCHASE PRICE.
2.1 Amount. The purchase price which Seller agrees to accept and Buyer agrees to
pay for the Property is the sum of THREE HUNDRED NINETEEN THOUSAND DOLLARS
($319,000.00) ("Purchase Price"). The parties agree that with the exception of relocation
benefits referenced in Section 3, below, the Purchase Price reflects the full payment that Seller
will receive from Buyer for the Property.
2.2 Payment of Purchase Price. On or before 5:00 p.m. on the business day preceding
the "Closing Date" (as that term is defined in Section 6.1) or such earlier time as required by
"Escrow Holder" in order to close "Escrow" (as those terms are defined in Section 4.1) on the
Closing Date, Buyer shall deposit with Escrow Holder the Purchase Price.
3. RELOCATION ASSISTANCE. In addition to the Purchase Price, Buyer and Seller
agree that Seller shall be entitled to relocation assistance pursuant to California Relocation
Assistance Act (Cal. Govt. Code Sections 7260 et seq.; Relocation Assistance and Real Property
Acquisition Guidelines, California Administrative Cove Title 25), in accordance with the terms
and amounts memorialized in a relocation benefit letter issued by the Rosenow Spevacek Group.
For reference purpose only, the total relocation assistance paid to Seller pursuant to the
relocation benefit letter is SIXTY ONE THOUSAND DOLLARS ($61,000.00) and shall be paid
and disbursed pursuant to the terms of the relocation benefit letter.
4. ESCROW.
4.1 Opening of Escrow. Closing of the sale of the Property shall take place through
an escrow ("Escrow") to be established within three (3) business days after the execution of this
Agreement by the parties hereto, with Four Seasons Escrow, Inc. ("Escrow Holder") at its office
located at 47-350 Washington Avenue, Suite 101, La Quinta, California 92253. The opening of
the Escrow (the "Opening of Escrow") shall be deemed to be the date that a fully executed copy
of this Agreement is delivered to the Escrow Holder. Escrow Holder is instructed to notify
Buyer and Seller in writing of the date of the Opening of Escrow.
4.2 Escrow Instructions. This Agreement, once deposited in Escrow, shall constitute
the joint escrow instructions of Buyer and Seller to Escrow Holder. Additionally, if Escrow
Holder so requires, Buyer and Seller agree to execute the form of escrow instructions that
2156/015610-0090 _
766015 01 al1/29/06 -2
Escrow Holder customarily requires in real property escrows administered by it. In the event of
any conflict or inconsistency between Escrow Holder's standard instructions and the provisions
of this Agreement, the provisions of this Agreement shall supersede and be controlling. The
parties additionally agree to the Escrow Holder's standard terms, a copy of which is attached
hereto as Exhibit E and to the additional supplemental instructions contained in Exhibit F.
5. TITLE MATTERS. Buyer shall obtain a preliminary title report prepared by Old
Republic Title Company ("Title Company"), located at 750 B Street Suite 3150, San Diego, CA
92101, describing the state of title of the Property together with copies of all underlying
documents and a map of plotted easements (collectively, the "Preliminary Title Report"). Buyer
may, at its sole cost and expense, obtain a current survey of the Property (the "Survey").
Notwithstanding anything herein to the contrary, Seller shall be obligated to remove all monetary
encumbrances against the Property excluding non -delinquent real property taxes (except as
otherwise provided for in Section 9 below). Buyer shall notify Seller in writing of any
objections Buyer may have to title exceptions contained in the Preliminary Title Report or
matters shown on the Survey (if Buyer has obtained) no later than the date which is fifteen (15)
days after the later of (i) its receipt of the Preliminary Title Report or (ii) its receipt of the Survey
("Buyer's Objection Notice"). Buyer's approval or disapproval of the matters set forth in the
Preliminary Title Report (and the Survey, if applicable) may be granted or withheld in Buyer's
sole and absolute discretion. Buyer's failure to provide Seller with a Buyer's Objection Notice
within said period shall constitute Buyer's approval of all exceptions to title shown on the
Preliminary Title Report and all matters shown on the Survey (if Buyer has obtained). Seller
shall have a period of five (5) days after receipt of Buyer's Objection Notice in which to deliver
written notice to Buyer ("Seller's Notice") of Seller's election to either (i) agree to remove the
objectionable items on the Preliminary Title Report or Survey prior to the Close of Escrow, or
(ii) decline to remove any such title exceptions or Survey matters and terminate Escrow and the
obligations of Buyer and Seller to purchase and sell the Property under this Agreement. Seller's
failure to provide Buyer with Seller's Notice within said period shall constitute Seller's election
to remove the objectionable items on the Preliminary Title Report. If Seller notifies Buyer of its
election to terminate rather than remove the objectionable items on the Preliminary Title Report
or Survey, Buyer shall have the right, by written notice delivered to Seller within five (5) days
after Buyer's receipt of Seller's Notice, to agree to accept the Property subject to the
objectionable items, in which event Seller's election to terminate shall be of no effect, and Buyer
shall take title at the Close of Escrow subject to such objectionable items without any adjustment
to or credit against the Purchase Price. All exceptions to title shown on the Preliminary Title
Report, other than those which Seller may agree to remove pursuant to this Section 5, shall be
deemed to have been approved by Buyer unless Seller is notified otherwise in writing.
Upon the issuance of any amendment or supplement to the Preliminary Title
Report which adds additional exceptions, including any survey exceptions, the foregoing right of
review and approval shall also apply to said amendment or supplement. The process set forth
above for Buyer's review and Seller's response shall apply to any review and response with
respect to any amendment or supplement to the Preliminary Title Report, and the Closing shall
be extended for such period as is necessary to allow for that review and response process to be
completed.
2156/015610-0090 _
76601501 a 11/29/06 .3 ^
�l t
6. CLOSE OF ESCROW.
6.1 Close of Escrow; Closing Date. Provided that all of the conditions of this
Agreement precedent to the "Close of Escrow" (as hereinafter defined) as set forth in Section 10
below have been satisfied (or waived by the appropriate party) prior to or on the Closing Date,
the Closing of this transaction for the sale and purchase of the Property shall take place on or
before January 16, 2006 ("Outside Closing Date"). Notwithstanding the foregoing, if Buyer and
Seller agree to advance the Closing, and so long as all of "Buyer's Conditions to Closing" and all
of "Seller's Conditions to Closing" (as those terms are defined in Section 10) have been satisfied
(or waived by the appropriate party), Seller and Buyer may elect to authorize the Closing before
the Outside Closing Date. The terms "Close of Escrow", "Closing Date" and the "Closing" are
used herein to mean the time Seller's grant deed conveying fee title to the Property to Buyer is
recorded in the Official Records of the Office of the County Recorder of Riverside ("Official
Records"). If Escrow is not in a condition to close by the Outside Closing Date, either party not
then in default hereunder may, upon five (5) days advance written notice to the other party and
Escrow Holder, elect to terminate this Agreement and the Escrow. No such termination shall
release either party then in default from liability for such default. If neither party so elects to
terminate this Agreement and the Escrow, Escrow Holder shall close the Escrow as soon as
possible.
6.2 Recordation; Release of Funds and Documents.
6.2.1 Escrow Holder is directed, on the Closing Date, to record in the Official
Records, the following documents in the order listed: (i) the grant deed (in the form attached
hereto as Exhibit `B") transferring title to the Property to Buyer ("Grant Deed"); and (ii) such
other and further documents as may be directed jointly by Buyer and Seller.
6.2.2 Upon the Closing, Escrow Holder shall deliver (i) the Purchase Price, less
any amount to pay property taxes and/or assessments allocable to Seller pursuant to Section 9,
and (ii) conformed copies of all recorded documents to both Buyer and Seller.
7. DELIVERY OF DOCUMENTS REQUIRED FROM BUYER AND SELLER.
7.1 Buyer's Obligations. Buyer agrees that on or before 5:00 p.m. of the last business
day immediately preceding the Closing Date, Buyer shall deposit or cause to be deposited with
Escrow Holder the following:
(a) the Purchase Price; and
(b) any and all additional funds, instruments or other documents required
from Buyer (executed and acknowledged where appropriate) as may be reasonably necessary in
order for the Escrow Holder to comply with the terms of this Agreement.
7.2 Seller's Obligations. Seller agrees that on or before 5:00 p.m. of the last business
day immediately preceding the Closing Date, Seller shall deposit or cause to be deposited with
Escrow Holder each of the following:
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(a) the executed and acknowledged Grant Deed, subject only to the Permitted
Exceptions (defined hereafter);
(b) a Certificate of Non -Foreign Status (the "Non -Foreign Affidavit")
executed and acknowledged by Seller in the form attached hereto as Exhibit "C";
(c) a Bill of Sale (the "Bill of Sale") executed and acknowledged by Seller in
the form attached hereto as Exhibit "D"; and
(d) all other funds, items, and instruments required from Seller (executed and
acknowledged where appropriate) as may be reasonably necessary in order for Escrow Holder to
comply with the provisions of this Agreement.
8. TITLE INSURANCE POLICY.
8.1 Title Policv. At the Closing Date, the Title Company, as insurer, shall issue a
CLTA owner's standard coverage policy of title insurance ("Title Policy"), in favor of Buyer, as
insured, showing Buyer as fee title owner of the Property, with liability in the amount of the
Purchase Price, subject to the following (the "Permitted Exceptions"):
(a) non -delinquent real property taxes, subject to Seller's obligations to pay
certain taxes pursuant to Section 9 below;
(b) covenants, conditions, restrictions and reservations of record that do not
interfere with the Buyer's proposed use of the Property, as determined in the sole and absolute
discretion of Buyer;
(c) easements or rights -of -way over the Property for public or quasi -public
utility or public street purposes;
(d) title exceptions approved or deemed approved by Buyer pursuant to
Section 4.2 above;
(e) any other exceptions approved by Buyer; and
(f) the standard printed conditions and exceptions contained in the CLTA
standard owner's policy of title insurance regularly issued by the Title Company.
8.2 Payment for Title Policy. Buyer shall be responsible for the charges for the Title
Policy with coverage up to the amount of the Purchase Price. Buyer shall pay any additional
coverage or endorsements it requests. Buyer may, at its election and expense, request an ALTA
extended policy of title insurance. Buyer shall also pay for the Survey, if applicable.
9. REAL PROPERTY TAXES AND ASSESSMENTS. Upon Buyer's acquisition of fee
title to the Property, the Property will be exempt from the payment of property taxes due to
Buyer's status as a public agency. Seller shall be responsible for paying (through Escrow at
Closing) all real and personal property taxes and assessments which are of record as of the
Closing Date and/or have accrued against the Property prior to (and including) the Closing Date
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(notwithstanding whether such taxes and/or assessments are due and payable as of the Closing
Date). Buyer hereby acknowledges and agrees that Buyer will provide the funds necessary to
completely payoff, at Closing, any amounts outstanding under the City of La Quinta Assessment
District 2000-1. Seller shall be responsible for paying for all real or personal property taxes or
assessments assessed against the Property after the Closing for any period prior to the Closing.
10. CONDITIONS PRECEDENT TO CLOSING.
10.1 Conditions Precedent to Buyer's Obli atg ions. The obligations of Buyer under this
Agreement to purchase the Property and close the Escrow shall be subject to the satisfaction or
signed written waiver by Buyer of each and all of the following conditions precedent
(collectively, "Buyer's Conditions to Closing"):
(a) on the Closing Date, the Title Company shall be irrevocably committed to
issue the Title Policy pursuant to Section 8 above insuring fee title to the Property as being
vested in Buyer, subject only to the Permitted Exceptions;
(b) Escrow Holder holds all instruments and funds required for the Closing
and will deliver to Buyer the instruments and funds, if any, accruing to Buyer pursuant to this
Agreement;
(c) except as otherwise permitted by this Agreement, all representations and
warranties by the Seller in this Agreement shall be true on and as of the Closing Date as though
made at that time and all covenants of Seller pursuant to this Agreement shall have been fulfilled
by the Closing Date;
(d) Seller is not in material default of any term or condition of this
Agreement;
(e) as of the Closing Date, no judicial or administrative challenges have been
presented or filed against the Agency or the City of La Quinta's actions in connection with
developing the Real Property as an affordable housing project, including, without limitation, any
challenge to environmental approvals or financing methods; and
In the event that any of Buyer's Conditions to Closing are not satisfied, deemed satisfied,
or waived in a writing signed by Buyer prior to the expiration of the applicable period for
satisfaction or waiver, Buyer may terminate this Agreement.
10.2 Conditions Precedent to Seller's Obli atg ions. The obligations of Seller under this
Agreement shall be subject to the satisfaction or signed written waiver by Seller of each and all
of the following conditions precedent ("Seller's Conditions to Closing"):
(a) Escrow Holder holds the Purchase Price and all other instruments and
funds required for the Closing and will deliver to Seller the instruments and funds, including but
not limited to the Purchase Price (less Seller's closing costs) accruing to Seller pursuant to this
Agreement;
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(b) except as otherwise permitted by this Agreement, all representations and
warranties by the Buyer in this Agreement shall be true on and as of the Closing Date as though
made at that time and all covenants of Buyer pursuant to this Agreement shall have been fulfilled
by the Closing Date; and
(c) Buyer is not in material default of any term or condition of this
Agreement.
In the event that any of Seller's Conditions to Closing are not satisfied, deemed satisfied,
or waived in a writing signed by Seller prior to the expiration of the applicable period for
satisfaction or waiver, Seller may terminate this Agreement.
11. POSSESSION. After the Close of Escrow, Buyer agrees to allow Seller to remain in
possession of the Property up to and including the earlier of the following dates: (1) ninety (90)
days after the Close of Escrow, or (2) the date when Seller surrenders possession of the Property
to Buyer (the "Holdover Period"). Seller agrees that on or before that date, Seller shall surrender
the Property to the City. Seller's right of possession under this provision shall not be
transferable and may only be utilized by Seller and Seller's immediate family. Seller shall
coordinate the delivery of keys and transfer of possession with the Public Works Department of
the City of La Quinta or its designee. During the Holdover Period, Seller shall pay rent to Buyer
in the amount of ONE THOUSAND DOLLARS ($1,000) per month ("Rent"). Rent shall be due
and payable, in advance, on the first day of each month, except that if the Close of Escrow
occurs on a day other than the first of the month then Rent shall be prorated for the number of
days remaining in that month and the number of days in the last month of the Holdover Period.
Additionally, during the Holdover Period, Seller shall be responsible for the payment of all
utilities, telephone, waters, alarm systems, gardening services, landscape maintenance and such
other charges as those normally paid by a month -to -month tenant of residential property. Prior to
the transfer of possession, Seller shall coordinate with Buyer as to the cancellation and/or
transfer of any ongoing services, such as utilities. Seller shall take no action which would result
in a lien or assessment being recorded against or imposed upon the Property. Seller may wish to
obtain renters insurance and any other insurance Seller deems necessary to protect Seller's
interests and the interests of Seller's family. Seller understands that Buyer is in no way
providing any insurance coverage that would extend protection to Seller or Seller's family.
During the holdover period, the Seller shall maintain the property in its current condition, normal
wear and tear excepted. Seller accepts the Property during this period in its "AS IS" condition,
and Buyer makes no representations or warranties as to the conditions of the Property. Seller
acknowledges that up until the transfer of possession, Buyer has not inspected the Property and
Buyer shall have no liability arising from the condition or use of the Property during the
holdover period. Seller, on behalf of Seller and Seller's family, hereby waives and releases the
Buyer, its employees and agents from any and all liability and claims for damages, including
property damage, bodily injury, or death, which arise the condition, use, occupancy of the
Property during the holdover period. Should any claim be made against the Buyer, its employees
or agents (the "Indemnified Parties") for damages, including property damage, bodily injury, or
death, which arise from the condition, use, or occupancy of the Property, or occur on the
Property, during the holdover period, Seller shall defend and indemnify the Indemnified Parties
and promptly pay any judgment rendered against them.
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12. ALLOCATION OF COSTS
12.1 Buyer's Costs. Buyer shall pay all closing costs associated with this Agreement
and the conveyance of the Property from Seller to Buyer, including any and all escrow and title
fees, recording fees, documentary transfer tax, the premium for the Title Policy (plus any
additional fee for ALTA extended coverage and/or title endorsements requested by Buyer), and
Buyer's own attorney's fees in connection with this Agreement and the transactions
contemplated hereby.
12.2 Seller's Costs. Seller shall pay Seller's own attorney's fees, if any, in connection
with this Agreement and the transactions contemplated hereby.
13. CONDEMNATION. In the event that, prior to the Close of Escrow, any governmental
entity (other than the City) shall commence any proceedings of or leading to eminent domain or
similar type proceedings to take all or any portion of the Property, Buyer or Seller shall promptly
meet and confer in good faith to evaluate the effect of such action on the purposes of this
Agreement.
14. HAZARDOUS MATERIALS. To the best of Seller's knowledge, the Property has not at
any time been used for the purposes of storing, manufacturing, releasing or dumping Hazardous
Materials. For purposes of this Agreement, the term "Hazardous Materials" shall mean (1)
hazardous wastes, hazardous materials, hazardous substances, hazardous constituents, toxic
substances or related materials, whether solids, liquids or gases, including, but not limited to,
substances deemed as "hazardous wastes," "hazardous materials," "hazardous substances,"
"toxic substances," "pollutants," "contaminants," "radioactive materials," or other similar
designations in, or otherwise subject to regulation under, the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended ("CERCLA"), 42 U.S.C. § 9601
et seq.; the Toxic Substance Control Act ("TSCA"), 15 U.S.C. § 2601 et seq.; the Hazardous
Materials Transportation Act, 49 U.S.C. § 1802; the Resource Conservation and Recovery Act
("RCRA"), 42 U.S.C. § 9601, et seq.; the Clean Water Act ("CWA"), 33 U.S.C. § 1251 et seq.;
the Safe Drinking Water Act, 42 U.S.C. § 300 et seq.; the Clean Air Act ("CAA"), 42 U.S.C. §
7401 et seq.; the Hazardous Waste Control Law, California Health and Safety Code § 25025 et
seq., the Carpenter -Presley -Tanner Hazardous Substance Account Act, California Health and
Safety Code, Division 20, Chapter 6.8, the Hazardous Materials Release Response Plans and
Inventory Act, California Health and Safety Code, Division 20, Chapter 6.95, The Underground
Storage of Hazardous Substances Act, California Health and Safety Code, Division 20, Chapter
6.7, the Porter -Cologne Act, California Water Code § 13050 et seq. and in any permits, licenses,
approvals, plans, rules, regulations or ordinances adopted, or other criteria and guidelines
promulgated pursuant to the preceding laws or other similar federal, state or local laws,
regulations, rules or ordinances now or hereafter in effect relating to environmental matters
(collectively the "Environmental Laws"); and (ii) any other substances, constituents or wastes
subject to any applicable federal, state or local law, regulation, ordinance or common law
doctrine, including any Environmental Law, now or hereafter in effect, including, but not limited
to, (A) petroleum, (B) refined petroleum products, (C) waste oil, (D) waste aviation or motor
vehicle fuel, (E) asbestos, (F) lead in water, paint or elsewhere, (G) radon, (H) polychlorinated
biphenyls (PCB's) and (I) ureaformaldehyde.
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15. COVENANTS OF SELLER. Seller agrees that during the period between the Effective
Date of this Agreement and the Closing Date:
(a) Seller shall maintain the Property in not less than the state of repair as that
existing on the Effective Date (excepting ordinary wear and tear);
(b) Seller shall not convey, grant, lease, assign, mortgage, hypothecate, encumber, or
otherwise transfer (on or off record) the Property or any interest therein;
(c) Prior to Closing, Seller shall maintain Seller's existing insurance, if any, on the
Property; and
(d) Prior to the Closing, Seller shall not alter the physical condition of the Property or
introduce or release, or permit the introduction or release, of any Hazardous Materials in, from,
under, or on the Property.
16. MISCELLANEOUS
16.1 Assignment. This Agreement shall be binding upon and shall inure to the benefit
of Buyer and Seller and their respective heirs, personal representatives, successors and assigns.
Seller may not assign or otherwise transfer this Agreement or any interest or right hereunder or
under the Escrow without the prior written consent and approval of the Buyer, which consent and
approval may be withheld in the Buyer's sole and absolute discretion. No provision of this
Agreement is intended nor shall in any way be construed to benefit any party not a signatory
hereto or to create a third party beneficiary relationship.
16.2 Notices. All notices under this Agreement shall be effective upon personal
delivery, via facsimile so long as the sender receives confirmation of successful transmission
from the sending machine, or three (3) business days after deposit in the United States mail,
registered, certified, postage fully prepaid and addressed to the respective parties as set forth
below or as to such other address as the parties may from time to time designate in writing:
To Seller: Dennis D. Fountain
46-150 Dune Palms Road
La Quinta, California 92253
Telephone: (760) 347-1435
To Buyer: City of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
Attn: City Manager
Facsimile No.: (760) 777-7101
Copy to: Rutan & Tucker, LLP
611 Anton Boulevard, Suite 1400
Costa Mesa, California 92628-1950
Attn: M. Katherine Jenson, Esq.
Facsimile No.: (714) 546-9035
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16.3 Fair Meaning. This Agreement shall be construed according to its fair meaning
and as if prepared by both parties hereto.
16.4 Headings. The headings at the beginning of each numbered Section of this
Agreement are solely for the convenience of the parties hereto and are not a part of this
Agreement.
16.5 Choice of Laws• Litigation Matters. This Agreement shall be governed by the
internal laws of the State of California and any question arising hereunder shall be construed or
determined according to such law. The Municipal and Superior Courts of the State of California
in and for the County of Riverside, or such other appropriate court in such county, shall have
exclusive jurisdiction of any litigation between the parties concerning this Agreement. Service
of process on Buyer shall be made in accordance with California law. Service of process on
Seller shall be made in any manner permitted by California law and shall be effective whether
served inside or outside California.
16.6 Nonliability of Buyer Officials. No officer, official, member, employee, agent, or
representatives of Buyer shall be liable for any amounts due hereunder, and no judgment or
execution thereon entered in any action hereon shall be personally enforced against any such
officer, official, member, employee, agent, or representative.
16.7 Gender; Number. As used in this Agreement, masculine, feminine, and neuter
gender and the singular or plural number shall be deemed to include the others wherever and
whenever the context so dictates.
16.8 Survival. This Agreement and all covenants to be performed after the Closing,
and, except as otherwise set forth herein, all representations and warranties contained herein,
shall survive the Closing Date and shall remain a binding contract between the parties hereto.
16.9 Time of Essence. Time is of the essence of this Agreement and of each and every
terni and provision hereof, it being understood that the parties hereto have specifically negotiated
the dates for the completion of each obligation herein.
16.10 Waiver or Modification. A waiver of a provision hereof, or modification of any
provision herein contained, shall be effective only if said waiver or modification is in writing,
and signed by both Buyer and Seller. No waiver of any breach or default by any party hereto
shall be considered to be a waiver of any breach or default unless expressly provided herein or in
the waiver.
16.11 Broker's Fees. Seller and Buyer represent and warrant to the other that neither
Buyer nor Seller has employed any broker and/or finder to represent its interest in this
transaction. Each party agrees to indemnify and hold the other free and harmless from and
against any and all liability, loss, cost, or expense (including court costs and reasonable
attorney's fees) in any manner connected with a claim asserted by any individual or entity for
any commission or finder's fee in connection with the conveyance of the Property arising out of
agreements by the indemnifying party to pay any commission or finder's fee.
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16.12 Duplicate Originals. This Agreement may be executed in any number of
duplicate originals, all of which shall be of equal legal force and effect.
16.13 Severability. If any term, covenant or condition of this Agreement or the
application thereof to any person, entity, or circumstance shall, to any extent, be invalid or
unenforceable, the remainder of this Agreement, or the application of such term, covenant, or
condition to persons, entities, or circumstances other than those as to which it is held invalid or
unenforceable, shall not be affected thereby and each term, covenant or condition of this
Agreement shall be valid and enforceable to the fullest extent permitted by law.
16.14 Exhibits. The following exhibits are attached hereto and incorporated herein by
this reference:
Exhibit "A"
Legal Description of Property
Exhibit "B"
Grant Deed
Exhibit "C"
Non -Foreign Affidavit
Exhibit "D"
Bill of Sale
Exhibit "E"
Escrow Instructions
Exhibit "F"
Special Escrow Instructions
16.15 Authority. The person(s) executing this Agreement on behalf of each of the
parties hereto represent and warrant that (i) such party is duly organized and existing, (ii) they
are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so
executing this Agreement such party is formally bound to the provisions of this Agreement, and
(iv) the entering into this Agreement does not violate any provision of any other agreement to
which such party is bound.
16.16 Entire Agreement: Amendment. Except as set forth above, this Agreement and
the exhibits incorporated herein contain the entire agreement of Buyer and Seller with respect to
the matters contained herein, and no prior agreement or understanding pertaining to any such
matter shall be effective for any purpose. No provisions of this Agreement may be amended or
modified in any manner whatsoever except by an agreement in writing signed by duly authorized
officers or representatives of each of the parties hereto.
16.17 Seller's Representations and Warranties. As of the Effective Date and again as of
the Close of Escrow, Seller hereby makes the following covenants, representations and
warranties, which representations and warranties shall survive the Closing:
16.17.1 Seller is the fee title owner of the Real Property.
16.17.2 As of the Effective Date, there are no pending or existing leases,
leasehold interests, tenancies, occupancies, licenses, license agreements, rental agreements, use
agreements, right of entry agreements, or any other type of agreement granting any person, firm,
or entity any right to possess or use, the Property, or any portion thereof (collectively, "Property
Agreement"), and that any prior Property Agreements have either expired as of their own terms
or have not been renewed due to the failure of Seller and the other contracting entity to reach
terms acceptable to both parties.
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16.17.3 Neither the execution of this Agreement nor the performance by
Seller of each of the terms hereof constitutes or shall constitute a default or violation by Seller
under any contract, loan, note, deed of trust, or other agreement, obligation or covenant to which
Seller is a party or to which Seller is bound.
16.17.4 Seller is not a party to any bankruptcy, insolvency or receivership
proceeding of any kind, whether voluntary or involuntary.
16.17.5 Seller has not entered into any other agreements with any other
party to sell or convey the Property or any portion thereof.
16.17.6 Seller is not a party to any lawsuit, litigation or other legal or
administrative proceeding affecting the Property or Seller's ability to perform its obligations
hereunder nor has any such matter been threatened
In the event that, during the term of this Agreement, a change in circumstance should
occur which would cause any of Seller's above representations and warranties to be materially
inaccurate if they were made as of that date, Seller shall advise Buyer in writing of such change
in circumstance within ten (10) days from the date upon which Seller discovers such material
inaccuracy. Notwithstanding anything to the contrary set forth elsewhere in this Agreement,
Buyer shall have the right, within ten (10) business days from receipt of such notification from
Seller to notify Seller of Buyer's election to terminate this Agreement and obtain a return of the
Deposit.
[END -- SIGNATURE PAGE FOLLOWS]
2156/015610-0090 E + -12- �- •- V N
766015 01 a11/29/06
IN WITNESS WHEREOF, Buyer and Seller each hereby represents that it has read this
Agreement, understands it, and hereby executes this Agreement to be effective as of the day and
year first written above.
ATTEST:
Veronica J Montecino, CMC, City Clerk
APPROVED AS TO FORM:
RUTAN & TUCKER, LLP
0
M. Katherine Jenson, Agency Counsel
SELLER:
DENNIS D. FOUNTAIN
BUYER:
LA QUINTA REDEVELOPMENT AGENCY,
a public body corporate and politic
LM
Thomas P. Genovese, Executive Director
[end of signatures]
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Four Seasons Escrow, Inc., agrees to act as Escrow Holder in accordance with the terms of this
Agreement that are applicable to it.
Four Seasons Escrow, Inc.
By: _
Name:
Its:
2156/015610-0090 -14-
766015.01 al 1/29/06
EXHIBIT "A"
LEGAL DESCRIPTION OF PROPERTY
APN: 600-030-003
That portion of the Northwest Quarter of Section 29, township 5 South, Range 7 East, in the
County of Riverside, State of California, according to official plat thereof, described as follows:
Beginning at a point on the westerly line of said Northeast Quarter, 245 feet South of the
Northwest Corner of said Northeast Quarter; thence East parallel with the North line of said
section, 120.00 feet; thence North parallel with the West line to said section, 60.00 feet thence
West parallel with the North line of said section 120.00 feet; thence South parallel with the West
line of said section 60.00 feet to the point of Beginning.
�r
r
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EXHIBIT °B"
FORM OF GRANT DEED
[SEE ATTACHED]
2156/015610-0090 " 1
766015.01 at129/06 ��
RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:
LA QUINTA REDEVELOPMENT AGENCY
78-495 Calle Tampico
La Quinta, CA 92253
Attn: Executive Director
SPACE ABOVE THIS LINE FOR RECORDER'S USE
(Exempt from Recordation Fee per Gov. Code § 6103)
GRANT DEED
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged,
DENNIS D. FOUNTAIN, a married man, as his sole and separate property and not as
community property, hereby grants to the LA QUINTA REDEVELOPMENT AGENCY, a
public body corporate and politic, that certain real property located in the City of La Quinta,
County of Riverside, State of California, legally described on Attachment No. 1, which is
attached hereto, and incorporated herein by this reference, subject to all matters of record.
Dated: 2006
DENNIS D. FOUNTAIN
2156/015610-0090 2
766015.01 all/29/06
STATE OF CALIFORNIA )
) ss
COUNTY OF
On
personally appeared
before me,
personally known to me (or proved to me on the basis of satisfactory evidence) to be the
person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s)
acted, executed the instrument.
Witness my hand and official seal.
Notary Public
[SEAL]
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ATTACHMENT NO. 1
LEGAL DESCRIPTION OF PROPERTY
APN: 600-030-003
That portion of the Northwest Quarter of Section 29, township 5 South, Range 7 East, in the
County of Riverside, State of California, according to official plat thereof, described as follows:
Beginning at a point on the westerly line of said Northeast Quarter, 245 feet South of the
Northwest Corner of said Northeast Quarter; thence East parallel with the North line of said
section, 120.00 feet; thence North parallel with the West line to said section, 60.00 feet thence
West parallel with the North line of said section 120.00 feet; thence South parallel with the West
line of said section 60.00 feet to the point of Beginning.
76601 .01 al oo9/ Attachment 1 to Grant Deed lJ +
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CERTIFICATE OF ACCEPTANCE
THIS IS TO CERTIFY that the interest in real property conveyed by a Grant Deed dated
from Dennis D. Fountain, a single man, as his sole and separate property
and not as community property, to the La Quinta Redevelopment Agency, a public body
corporate and politic ("Agency"), is hereby accepted by the Agency by the signature of the
undersigned agent on behalf of the Agency pursuant to the authority conferred upon him by
Resolution of the Agency, adopted on December _, 2006, and that the Agency, as the
Grantee, by its said duly authorized agent, hereby consents to the recordation thereof.
DATED:
LA QUINTA REDEVELOPMENT AGENCY,
public body corporate and politic
Name: Thomas P. Genovese
Executive Director, La Quinta Redevelopment
Agency
I HEREBY ATTEST to the authenticity of the foregoing signature and to the said adoption of
the said Resolution of his general authority to so act and certify that said authority
has not been revoked by any subsequent Resolution or order of the Agency.
DATED:
Veronica J. Montecino, CMC, Agency Secretary, La Quinta Redevelopment Agency
2156/015610-0090 Attachment 1 to Grant Deed
766015.01 al 1/29/06 tJ
EXHIBIT "C"
AFFIDAVIT OF NON -FOREIGN ENTITY
TO: LA QUINTA REDEVELOPMENT AGENCY ("Buyer")
The Internal Revenue Code of 1954 ("Code") (26 U.S.C. Sections 1445, 7701) provides that a
transferee of a U.S. real property interest must withhold tax if the transferor is a foreign person.
To inform the transferee that withholding of tax is not required upon transfer of that certain U.S.
real property interest described in Exhibit "A" to the Agreement for Purchase and Sale and
Escrow Instructions dated 2006, and incorporated herein by reference
("Property"), that the undersigned ("Seller") hereby certifies the following:
Seller is not a foreign corporation, foreign partnership, foreign trust or foreign estate (as
those terms are defined in the Internal Revenue Code and Income Tax Regulations); and
2. The U.S. taxpayer identification number for Seller is ; and
3. The address for mailing purposes of Seller is:
and
4. Seller understands that this certification may be disclosed to the Internal Revenue Service
by Buyer and that any false statement contained herein could be punished by fine,
imprisonment, or both.
Under penalty of perjury, I declare that I have examined this Certification and to the best of my
knowledge and belief, it is true, correct, and complete, and I further declare that I have authority
to sign this document on behalf of Seller.
Dated: 2006 SELLER:
DENNIS D. FOUNTAIN
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EXHIBIT "D"
BILL OF SALE
DENNIS D. FOUNTAIN, a married man, as his sole and separate property and not as
community property (the "Seller"), in consideration of good and valuable consideration in hand
paid by LA QUINTA REDEVELOPMENT AGENCY (the "Buyer"), the receipt and sufficiency
of which is hereby acknowledged, does by these presents release, transfer, bargain, sell, assign
and convey unto the Buyer, its successors and assigns, all of the Personal Property as such is
defined in that certain Agreement for Purchase and Sale and Escrow Instructions between Seller
and Buyer executed 2006, as such may have been amended.
Seller does hereby represent and warrant that all such property is free and clear of all
security interests, liens and encumbrances other than those assumed by Buyer and in good
working order and condition. Seller does hereby covenant with Buyer that it has good right to
sell, transfer, convey and assign all of right, title and interest in the same to Buyer and will
warrant and defend the same in favor of Buyer, its successors and assigns.
IN WITNESS WHEREOF, the Seller has caused these presents to be signed as of this
day of , 2006.
SELLER:
DENNIS D. FOUNTAIN
V%
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EXHIBIT "E"
ESCROW INSTRUCTIONS
[TO BE INSERTED ONCE RECEIVED FROM ESCROW CO]
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766015.01 al 1/29/06
EXHIBIT "F"
SPECIAL ESCROW INSTRUCTIONS
PRORATIONS AND/OR ADJUSTMENTS
Escrow Holder is authorized and instructed to prorate and/or make adjustments on the
following items as of the close of escrow date:
TAXES ON REAL PROPERTY:
Prorate taxes, including all tax bill items, except taxes on personal property not conveyed
through this escrow, based on the current year's taxes, except between July 1" and the date you
are furnished current taxes, based on immediate preceding year's taxes. In each case use the
figures furnished you by the title company, without liability on your part as to their correctness.
Owner to pay prior to delinquency, supplemental tax bills, and any taxes on personal property
not being sold herein, which taxes are a lien on the real property being conveyed and you are not
to be concerned herewith.
Refund, if any, from the Riverside County Tax Collector, for refund of taxes buyer is
being debited for herein, is to be handled outside of escrow. Chicago Title Company, its officers
and employees are relieved of all responsibility and liability in connection therewith.
2156/015610-0090
766015.01 al1/29/06
Attachment 2: Dune Palms Road Corridor Acquisition Status Map
Acquired Parcels
Acquisition $ Relocation Initiated
® Presently Not Sought
Previously Acquired for Well Site
Rejected Offers
L) I
COUNCIL/RDA MEETING DATE: December 5, 2006
ITEM TITLE: Continued Joint Public Hearing to
Consider 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
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING: f
Adopt a Resolution of the Redevelopment Agency approving the Disposition and
Development Agreement by and between the La Quinta Redevelopment Agency and
LDD SilverRock, LLC.
FISCAL IMPLICATIONS:
The Disposition and Development Agreement ("DDA") is structured as a series of
seven distinct sale and development transactions, including: 1) the 13.79-acre
Boutique Hotel Parcel; 2) the 2.43-acre Ranch House parking parcel ("Annex Parcel");
3) the 19.6 acre Resort Hotel Parcel; 4) the 3.82-acre "Lake Casitas Parcel" located
north of the Resort Hotel Parcel; 5) the 8.7-acre "Golf Casitas Parcel" located east of
the Resort Hotel Parcel; 6) the 11.8-acre Resort Retail Parcel; and 7) the .78 acre
"Black Box" Theater Parcel. Sale of each parcel is generally envisioned to occur in the
above -listed order. Accordingly, the first parcel to be sold to LDD SilverRock, LLC
("LDD") will be the Boutique Hotel Parcel, for a purchase price of $3,309,600. Initial
purchase prices have been. established in the DDA for the remaining six parcels;
however, because development will be phased and parcels sold over time, the final
purchase prices will be determined by an appraisal that shall be conducted every three
years on or before the effective date of the DDA. (This is further explained in
Attachment No. 3 of the DDA). The initial purchase prices are as follows:
U33
Parcel/
Use
Acres
Per Acre
Total
Boutique Hotel
13.79
240,000
3,309,600
Ranch House Parking
2.43
-
585,000
Lake Caste
3.82
200,000
764,000
Golf Casita
8.63
200,000
1,726,000
Resort Hotel
19.65
200,000
3,930,000
Black Box
0.78
200,000
156,000
Total
49.10
$10,470,600
Additionally, as a guarantee of LDD's commitment to develop the project, LOD will
deposit a series of five "Option Payments" with an Escrow Agent. The Option
Payments will be used to reimburse LDD for costs incurred for the planning, designing,
processing entitlements, and environmental review for each project component. LDD
must request these reimbursements in writing, and the Agency shall approve the
release of requested funds. The initial Option Payment of $825,000 will be deposited
with the Escrow Agent no later that 30 days after the DDA effective date. (If the DDA
were approved on December 5, 2006, the first Option Payment would be due on
January 4, 2007)• The second Option Payment of $825,000 would be due one year
after the initial Option Payment (i.e., January 2008); the third Option Payment of
$700,000 would be due in January 2009; the fourth Option Payment of $700,000
would be due in January 2010; and the fifth Option Payment of $200,000 would be
due in January 2011.
BACKGROUND AND OVERVIEW
In July 2002, the Agency purchased the 525-acre site, which was once the Howard
Ahmanson family ranch, with the goal of providing recreational opportunities for the
City's residents and providing ongoing revenues to the City in form of sales and
transient occupancy taxes by developing golf and resort/retail amenities for visitors and
residents. Phase I of SilverRock Resort was completed in February 2005, when the
Arnold Palmer Classic Course and Ahmanson Retreat and Clubhouse (temporary
clubhouse) were opened to the public.
In March 2005, the Agency entered into an Exclusive Negotiation Agreement (ENA)
with DDC Desert Development, Inc. (now known as LDD SilverRock, LLC) for the
development of a boutique hotel, resort hotel, resort retail, and casitas units on
approximately 55 acres within SilverRock Resort. Because of the project's complexity,
the ENA was extended three times, with the current expiration date being December
31, 2006. During the ENA period, LDD created a development plan, which was
adopted by the Agency Board on July 19, 2005. Agency staff, with the guidance and
direction of the Agency Board, has been negotiating a very complex DDA, which
establishes purchase prices, sales terms, project phasing and schedule of performance,
vy�
level of hotel services (i.e., "Four Star"), hotel operation convenants, etc. The
Summary Report (Attachment 1) and draft DDA (Attachment 2) are included for City
Council and Agency Board consideration.
Development Program
Boutique Hotel. The first project component to be developed is the Boutique Hotel,
which is defined in the DDA as an intimate, Four -Star quality hotel containing no more
than two hundred twenty-five (225) units, a sit-down restaurant that seats up to 80
persons concurrently inside and up to 40 persons concurrently outside, a first-class
spa and fitness facility, a pool, at least ten thousand square feet (10,000 s.f.) of
interior meeting space, and a parking structure containing at least one hundred fifty
(150) parking spaces. A development plan for the Ranch House parking parcel is being
developed by LDD, and it is assumed that development will generally track with the
Boutique Hotel, depending upon when the permanent clubhouse is completed.
Preliminary site planning efforts indicate that this parcel would be developed with 55
boutique hotel units.
Resort Hotel. Four Star Quality or higher luxury hotel containing approximately 283
Units, with associated amenities, including, but not limited to, a sit-down restaurant
that serves up to 100 persons concurrently inside and up to 60 persons concurrently
outside, a first-class spa and fitness center, a parking structure containing not fewer
than one hundred fifty 0 50) parking spaces, pools, and at least twenty thousand
square feet (20,000 s.f.) of interior meeting space. At least ninety (90) of the Units in
the Resort Hotel will be "traditional" Hotel Units (i.e., not individually owned).
Resort Retail. Approximately eighty-one thousand square feet (81,000 s.f.) of space,
with approximately forty thousand square feet (40,000 s.f.) of such space developed
for and dedicated to retail uses, fifteen thousand square feet (15,000 s.f.) of such
space developed for and designated to restaurant use, and twelve thousand square
feet 0 2,000 s.f.) of such space to be developed for and dedicated to residential uses
(i.e., resort -oriented office, live -work loft units, and multi -family residential units).
Lake Casitas. Approximately fifty units located to the north of the Resort Hotel parcel.
Golf Casitas. Approximately seventy-two units located to the east of the Resort Hotel
parcel.
Black Box Theater. A multi -purpose theater, cinema, or conference hall building,
containing approximately 7,000-7,500 square feet, with theater capacity for
approximately 250-300 persons. LDD is working on details regarding organizational
structure, fundraising, and operations for the black box theater. The development plan
will come before the City Council/Agency Board at a future date.
AL
Schedule of Performance
A Schedule of Performance for each project component is included in the DDA as
Attachment 9. The Schedule of Performance shows the outside timeframe for the
various activities within each project component.
Condo-Hotel/Fractional Concept
It is anticipated that the majority of the hotel units will be condo -hotel units.
Additionally, the DDA also allows up to 30% of the total units to be fractional units.
Condo -Hotel Units are sold to an individual, third party owner, but, when not in use by
such owner, are included in the inventory of rooms available for transient occupancy
within the Project. Fractional Units are divided into multiple fractional interests,
including, without limitation, timeshare interests, each of which can either be owned
by a separate owner or by single owner, and each of which gives such owner the right
to use such Unit for a different period of time. The Development Agreement approved
by the City Council on November 21, 2006, creates the program that regulates the
amount of time owners can occupy their units on an annual basis, and establishes the
daily fee for stays beyond 29 days (the period under which TOT would be charged),
which will be paid to the City, based on the size of the unit. In addition, the Condo -
Hotel Units will be required to pay annual fees to the extent they did not generate
Transient Occupancy Tax (TOT) in the specified amounts. The fractional units will be
required to pay annual fees, regardless of occupancy and any TOT tax collected.
Revenue to the Agency/City
The Development will generate a combination of tax increment revenue that accrues to
the Agency, and transient occupancy, development permit fee, and sales tax revenue
that accrues to the City. The chart below presents the projected City/Agency income,
and the present value of this income, for the first 10 years of operation.
CITY INCOME: First 10 Years $ 50,468,910 AGENCY INCOME: First 10 Years $ 34,347,734
NET PRESENT VALUE $ 32,539,149 NET PRESENT VALUE $ 23,512,955
(6.5% discount rate) (6.5% discount rate)
In addition, staff conservatively projects that the Development will annually generate
26,000 rounds of golf.
Accompanying the staff report is a Summary Report that further details this
transaction.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency Board include:
1. Adopt a Resolution of the Redevelopment Agency approving the Disposition and
Development Agreement by and between the La Quinta Redevelopment Agency
and LDD SilverRock, LLC; or
2. Do not adopt a Resolution of the Redevelopment Agency approving the
Disposition and Development Agreement by and between the La Quinta
Redevelopment Agency and LDD SilverRock, LLC; or
3. Hold and close the public hearing and continue the item to the December 19`h
Redevelopment Agency meeting for action; or
4. Provide staff with alternative direction.
Respectfully submitted,
Thomas P. Genovese
Executive Director
Attachments: Please see related City Council reports for Attachments
RESOLUTION RA NO. 2006-
A RESOLUTION OF THE LA QUINTA 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 & Resorts, Inc., which is an entity related to Developer, or another
operator with experience operating four -star quality hotels, for a period of ten years
BUJ
Resolution No. RA 2006-
Disposition and Development Agreement
LDD SilverRock, LLC
Adopted: December 5, 2006
(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
approval of the Agreement be accompanied by certain findings and determinations as
set forth herein; and
WHEREAS, a Summary Report for the Agreement has been prepared and
the joint public hearing has been conducted in accordance with applicable requirements
of law; and
WHEREAS, the City Council and the Redevelopment Agency have
considered all the information and evidence set forth in the Summary Report presented
by the City/Agency staff and presented by persons wishing to appear and be heard
concerning the impact of the Agreement on the Project Area and the City as a whole;
and
WHEREAS, the Agreement is in accordance with the Redevelopment Plan
and is of benefit to the Project Area and the City of La Quinta; and
WHEREAS, the Agency hereby determines that the 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 Agreement was 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 Plan, and that the circumstances and conditions have not changes, and the
project to be implemented is in substantial conformance with said Specific Plan, and
no further environmental review is required under Public Resources Code 21166.
r
Resolution No. RA 2006-
Disposition and Development Agreement
LDD SilverRock, LLC
Adopted: December 5, 2006
NOW, THEREFORE, BE IT RESOLVED BY THE LA QUINTA
REDEVELOPMENT AGENCY AS FOLLOWS:
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 5`" day of December, 2006, by the following
vote:
Resolution No. RA 2006-
Disposition and Development Agreement
LDD SilverRock, LLC
Adopted: December 5, 2006
AYES:
NOES:
ABSENT:
ABSTAIN:
LEE OSBORNE, Agency Chair
City of La Quinta, California
ATTEST:
VERONICA J. MONTECINO, CMC, Agency Secretary
City of La Quinta, California
APPROVED AS TO FORM:
M. KATHERINE JENSON, Agency Counsel
City of La Quinta, California