CC Resolution 2007-004
RESOLUTION NO. 2007-004
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LA QUINTA APPROVING AMENDMENT NO.4 TO AN
. AFFORDABLE HOUSING AGREEMENT BETWEEN THE LA
QUINTA REDEVELOPMENT AGENCY AND SANTA ROSA
DEVELOPMENT. INC. FOR THE PROPERTY LOCATED AT
THE NORTHEAST CORNER OF AVENUE 48 AND ADAMS
STREET
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 etseq.) ("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 exp~nd the supply
of low- and moderate-income housing (Health & Safety Code, ~ 33071); and
WHEREAS, on or about January, 22, 2003, the Agency and Santa
Rosa Development, Inc., a California corporation ("Developer") entered into that
certain Affordable Housing Agreement (the "Original AHA"), pursuant to which (i)
the Agency conveyed to the Developer certain real property located within the
Project Area ("Property") for the Developer's subsequent development thereon of
One Hundred Forty-Nine (149) sihgle~family homes for sale to senior citizens who
, are at least 55 years of age and who.,are also"persons and families of moderate-
income" (i.e., persons and families whoseinc:ome does riot exceed 120% 'oUhe
median income for Riverside Cou~ty, adjusted for family size) (the "Project"); (ii) the
Agency agreed to provide certain financial assistance to' Developer, including
second trust deed assistance to qualified buyers of units in the Project in an amount
not to exceed Seven Million Dollars (.$7,000;000). from the Agency's Housing Fund
(the "Homebuyer Assistance"). all as more particularly described in the Original
AHA; and
WHEREAS, Agency and Dj'lVel6perhave amended the Original AHA on
three prior occasions (collectively, the "Amendments"}; and '
Resolution No. 2007-004
Santa Rosa Development. Inc.
Adopted: January 16, 2007
Page 2
WHEREAS, the Original AHA, as amended by the Amendments, is
hereinafter referred to as the "AHA"; and
WHEREAS, Agency and Developer have negotiated a fourth
amendment to the AHA r'Amendment Nci.,4"). pursuant to which Agency would
provide up, to an additional Four Million Five, Hundred Thousand Dollars
($4,500,000) of Housing Funds as Homebuyer Assistance and to enable Developer
to sell homes in the P~oject to senior citizens ,liiTho are at least 55 years of age and
who are also "lower income, households" (i.e., persons and families whose income
does not exceed 80% of median income for Riverside County, adjusted for family
size); and
WHEREAS, Amendment No. 4 also includes an Amendment to the
recorded Declaration bf Covenants, Conditions,' and Restrictions for Property to
enable Developer to sell remaining homes in the Project to senior citizens who are
at least 55 years of age and who are also lower income households ("Declaration
Amendment"); and
WHEREAS, Health and Safety Code Section 33433 requires the
Agency prepare a Summary Report to consider the, Agency's proposed financial
contribution to the Project as set forth in the AHA and Amendment No.4, that the
Agency Board and the City Council conduct a noticed joint public hearing with
respect to Amendment No.4, and that the approval of Amendment No. 4 be
accompanied by certain findings and determinations as set forth herein; and
, WHEREAS,' a~ummaryFlePbi1 for Amendme:nt No. 4. has been
piepsredand the joint 'public 'hearin~ has been bonducted in accordance with
applicable requirements of lliw; 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 Amendment No.4 on'the Project Area and
the City as a whole; and '. ' '. ,"
WHEREAS, Amendment 'No. 4 is in accordance with the
Redevelopment Plan and is of benefit to the Project Area and the City of La Quinta;
and '
Resolution No. 2007..004
Santa Rosa Development, Inc.
Adopted: January 16, 2007
Page 3
WHEREAS, the City Council hereby determines that the Agency's
financial contribution pursuant to Amendment No.4 is necessary to effectuate the
. purposes of the Redevelopment Plan; and
WHEREAS, Amendment No. 4 is in accordance with the
Redevelopment Plan and is of benefit to the Project Area and the City of 'La Quints.
. NOW, THEREFORE, BE IT RESOLVED, BY, THE CITY COUNCIL OF THE
CITY OF LA QUINTA, CALIFORNIA, AS FOLLOWS:
1. That the above recitals are true and correct and incorporated herein.
2. Amendment No. 4 effectuates the purposes of the Community
Redevelopment Law (Health & Safety Code ~ 33000 et seq.) and of the
Redevelopment Plan and is in the best interests of the citizens of the City of La
. Quinta.
. 3. The Agency's sale of the real. property identified herein will provide
housing for moderate-income persons 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.
4. The consideration the Developer paid for the real property conveyed by
the Agency is not less than the .fair reuse value at the use and with the covenants
and conditions and development costs authorized I:>Y the sale, based on the findings
and conclusions of thE! Summary Report.
.'
- . - - - . . :
5. That the La Quinta Redevelopment Agency hereby finds and.
determines that Amendment No. 4 effectuates the purposes: of the Community
Redevelopment Law (Health & Safety Code ~ 33000.et 'seq.) and of the
Redevelopment Plan and is in the best interests of the citizens of the City of La
Quinta.
6. Amendment No.4; 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 Amendment No. 4 that are consistent with the' substantive
terms of Amendment No.4 approved hereby, and. to 'thereafter sign Amendment
No.4, including the Declaration Amendment, on behalf of the Agency.
Resolution No. 2007-004
Santa Rosa Development. Inc.
Adopted: January 16~ 2007
Page 4
7. 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 agreement's 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 City
Council of the City of La Quinta held this 16th day of 'January, 2007, by the
following vote: '
. .
. ,,- ,-' . ',", ' '. , '
AYES: Council Members Henderson, Kirk, OSb6rne, Sniff,l\!Iayor Adolph
NOES: None
ABSENT: None
ABSTAIN: None
~~
DON ADOL.:PH, M or
City of La Quinta, California
ATTEST:
VERONICAJ. TECINO; CMC, City Clerk
City of La Quinta, California
(CITY SEAL)
Resolution No. 2007~004
Santa Rosa Development. Inc.
Adopted: January 16. 2007
Page 5
APPROVED AS TO FORM:
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