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CC Resolution 2006-128 RESOLUTION 2006-128 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE LA QUINTA REDEVELOPMENT 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' 33000 et seq.) ("CRL"); and WHEREAS, pursuant to theCRL, 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 tothe 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 Resolution No. 2006-128 Disposition and Development Agreement lOO SilverRock. LLC Adopted: December 5. 2006 Page 2 (10). and that the Project be operated in a four-star quality condition for a period of twenty (20) years, and requires the payment of liquidated damages in the event any portion of the Project is not operated at a four-star quality; and WHEREAS. the Agreement provides the Agency with discretion to lease the retail portion of the Property to Developer or to the City, for subsequent lease to the Developer. rather than selling such portion to Developer; and WHEREAS. Health and Safety Code Section 33433 requires that the Agency prepare a Summary Report to consider the Agency's proposed sale of the Property as set forth in the Agreement, that the Agency Board and the City Council conduct a noticed joint public hearing with respect to the Agreement, and that the approval of the Agreement be accompanied by certain findings and determinations as set forth herein; and . WHEREAS, a Summary Report for the Agreement has been prepared and the joint public hearing has been conducted in accordance with applicable requirements of law; and . WHEREAS. the City Council and the Redevelopment. Agency have considered all the information and evidence set forth in the Summary Report presented by the City/Agency staff and presented by persons wishing to appear and be heard concerning the impact of the Agreement on the Project Area and the City as a whole; and WHEREAS. the Agreement is in accordance with the Redevelopment Plan and is of benefit to the Project Area and the City of La Quinta; and WHEREAS. the City Council hereby determines that the Agency's sale of the Property pursuant to the Agreement is necessary to effectuate the purposes of the Redevelopment Plan; WHEREAS. the City Council 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 theSilverRockProject (EA No. 2002~453) and the Addendum.thereto approved by the City Council in Resolutio'n 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. Resolution No..2006~128 Disposition and Development Agroement LOD SilverRock. LLC Adopted: December 5. 2006 Page 3 NOW. THEREFORE. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA QUINTA AS FOLLOWS: 1. That the above recitals are true and correct and incorporated herein. 2. That the City Council of the City.of La Quinta hereby resolves as follows: A. The Agreement effectuates the purposes of the COlTlmunity 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. - 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 City Council consents to the Agency's authorization and direction to its Executive Director and Agency Counsel to make final modifications to the Agreement that are consistent with the substantive terms of the Agreement approved hereby, and to thereaftf;lr sign the Agreement on behalf of the Agency. 4. The City Council consents to the Agency's authorization and direction to its Executive Director 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 (iil 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 City Council of the City of La Quinta held this 5th day of December, 2006, by the following vote: Resolution No. 2006-128 Disposition and Development Ag~eement LOO SilverRock. LLC . Adopted: December 5. 2006 Page 4 AYES: Council Members Henderson, Kirk, Osborne, Sniff, Mayor Adolph NOES: None ABSENT: None ABSTAIN: None. DON ADO , Ma or City of La Quinta, California ATTEST: APPROVED AS TO FORM: ~.