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2006 12 19 RDA MinutesLA QUINTA REDEVELOPMENT AGENCY MINUTES DECEMBER 19, 2006 A regular meeting of the La Quinta Redevelopment Agency was called to order by Chairman Osborne. PRESENT: Board Members Adolph, Henderson, Kirk, Sniff, Chairman Osborne ABSENT: None PUBLIC COMMENT — None CLOSED SESSION 1. Conference with 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 property located at the southeast and northeast corners of Avenue 50 and Washington Street (APNs: 646-070-013 and 770-040-012). Property Owner/Negotiator: Urban Housing Communities, Roger Davila. The Redevelopment Agency recessed to Closed Session to and until the hour of 4:00 p.m. 4:00 P.M. The Redevelopment Agency meeting was reconvened with no decisions being made in Closed Session which require reporting pursuant to Government Code Section 54957.1 (Brown Act). PUBLIC COMMENT — None CONFIRMATION OF AGENDA — Confirmed Redevelopment Agency Minutes 2 December 19, 2006 APPROVAL OF MINUTES MOTION — It was moved by Board Members Kirk/Sniff to approve the Redevelopment Agency Minutes of December 5, 2006 as submitted. Motion carried unanimously. CONSENT CALENDAR 1. APPROVAL OF DEMAND REGISTER DATED DECEMBER 19, 2006. 2. RECEIVE AND FILE TREASURER'S REPORT DATED OCTOBER 31, 2006. 3. RECEIVE AND FILE REVENUE & EXPENDITURES REPORT DATED OCTOBER 31, 2006. 4. APPROVAL OF LA QUINTA REDEVELOPMENT AGENCY FINANCIAL REPORTS IN ACCORDANCE WITH SECTION 33080 OF THE HEALTH AND SAFETY CODE. 5. APPROVAL OF SETTLEMENT AGREEMENT WITH WEITZ GOLF AND APPROPRIATION OF FUNDS. MOTION — It was moved by Board Members Sniff/Adolph to approve the Consent Calendar as recommended. In response to Chairman Osborne, Finance Director Falconer confirmed staff will correct the error on Item No. 4 regarding the name of the Redevelopment Agency Chair. Board Member Adolph asked if the agreement in Item No. 5 settles everything with Weitz Golf, to which Agency Counsel responded, "Yes." Motion carried unanimously. BUSINESS SESSION — None STUDY SESSION — None Redevelopment Agency Minutes 3 December 19, 2006 CHAIR AND BOARD MEMBERS' ITEMS - None PUBLIC HEARINGS 1. JOINT PUBLIC HEARING BETWEEN THE CITY COUNCIL AND REDEVELOPMENT AGENCY TO CONSIDER A REVISED AFFORDABLE HOUSING AGREEMENT BETWEEN THE AGENCY AND SANTA ROSA DEVELOPMENT, INC., TO INCREASE THE AGENCY'S FUNDING FOR THE HOMEBUYER SILENT SECOND TRUST DEED MORTGAGE LOANS BY $4.5 MILLION, THUS EXPANDING THE INCOME LEVELS OF THE HOMEBUYTERS FOR THE PROPERTY LOCATED WITHIN THE WATERCOLORS HOUSING PROJECT AT AVENUE 48 AND ADAMS STREET. The Chair declared the PUBLIC HEARING OPEN at 7:21 p.m. MOTION - It was moved by Board Members Henderson/Adolph to continue the public hearing for a Revised Affordable Housing Agreement with Santa Rosa Development to January 16, 2007. Motion carried unanimously. 2. JOINT PUBLIC HEARING BETWEEN THE CITY COUNCIL AND REDEVELOPMENT AGENCY TO CONSIDER A REVISED AFFORDABLE HOUSING AGREEMENT BETWEEN THE AGENCY AND SOUTHERN CALIFORNIA HOUSING DEVELOPMENT CORPORATION TO CONVEY CERTAIN PROPERTY LOCATED AT 78-990 MILES AVENUE IN THE CITY OF LA QUINTA, CALIFORNIA, AND SCHDC's SUBSEQUENT OWNERSHIP AND OPERATION OF AN AFFORDABLE RENTAL HOUSING DEVELOPMENT CONSISTING OF 80 DWELLING UNITS RESTRICTED FOR RENTAL TO, AND OCCUPANCY BY, VERY -LOW INCOME FAMILY HOUSEHOLDS AT A RENT AFFORDABLE TO SUCH HOUSEHOLDS. Consultant Frank Spevacek with Rosenow Spevacek Group (RSG) presented the staff report. In response to Board Member Henderson, Mr. Spevacek confirmed a formula was used to determine the number of low and moderate - income housing units, with the moderate -income unit being for the on - site caretaker. He stated the goal is to increase the number of affordability covenants for very -low income households. Redevelopment Agency Minutes 4 December 19, 2006 John McMillan, of RSG, gave a brief overview of how the project will address energy conservation concerns, including a solar system, on - demand water heaters, solar reflective paint, and thermal chimneys. In response to Board Member Kirk, Mr. Spevacek confirmed the increase in the subsidy is due to a ruling by the Supreme Court, but instead of spending more money the City will be paid $1.3 million less. He stated the subsidy of approximately $250,000 per unit is unusual for the Redevelopment Agency but is the medium amount of subsidy for very -low income units. He confirmed the City will apply for tax credits to reduce the subsidy. The Chair declared the PUBLIC HEARING OPEN at 7:35 p.m. Dan Horn, P. 0. Box 58, Palm Desert, inquired about the average cost per unit. Mr. Spevacek stated the estimated average cost per unit, including relocation and demolition costs, is 400,000. Board Member Henderson suggested separating out the relocation costs in future projects if possible. There being no other requests to speak, the Chair declared the PUBLIC HEARING CLOSED at 7:37 p.m. RESOLUTION NO. RA 2006-017 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING A REVISED AFFORDABLE HOUSING AGREEMENT BETWEEN THE LA QUINTA REDEVELOPMENT AGENCY AND THE SOUTHERN CALIFORNIA HOUSING DEVELOPMENT CORPORATION FOR THE PROPERTY LOCATED AT 78-990 MILES AVENUE. It was moved by Board Members Henderson/Sniff to adopt Resolution No. RA 2006-017 as submitted. Motion carried unanimously. Redevelopment Agency Minutes 5 December 19, 2006 ADJOURNMENT There being no further business, it was moved by Board Members Sniff/Adolph to adjourn. Motion carried unanimously. Respectfully submitted, PHYLLIS MANLEY, Deputy City Clerk City of La Quinta, California