2007 06 19 RDA164 4 4 adja
Redevelopment Agency agendas are
available on the City' web page
@ www.la-quinta.org
REDEVELOPMENT AGENCY
AGENDA
CITY COUNCIL CHAMBERS
78-495 Calle Tampico
La Quinta, California 92253
Regular Meeting
TUESDAY, JUNE 19, 2007 - 2:00 P.M.
Beginning Resolution No. RA 2007-005
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 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 REGARDING ENA
NEGOTIATIONS WITH CVHC FOR PROPERTY LOCATED AT THE
NORTHWEST CORNER OF DUNE PALMS ROAD AND AVENUE 48.
PROPERTY OWNERS/NEGOTIATORS: COACHELLA VALLEY HOUSING
COALITION, JOHN AGUILAR.
_4_0 - Oi
Redevelopment Agency Agenda 1 June 19. 2007
2. 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 IDENTIFIED AS:
APN 609-040-005 (POR), 609-040-007, AND 609-040-023. PROPERTY
OWNERS/NEGOTIATORS: MIKE SOLLENBERGER, AND THE TESTA FAMILY
PARTNERSHIP.
RECESS TO CLOSED SESSION
RECONVENE AT 4:00 P.M.
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.
CONFIRMATION OF AGENDA
APPROVAL OF MINUTES
APPROVAL OF MINUTES OF JUNE 5, 2007.
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 JUNE 19, 2007.
2. RECEIVE AND FILE TREASURER'S REPORT DATED APRIL 30, 2007.
3. RECEIVE AND FILE REVENUE & EXPENDITURES REPORT DATED APRIL 30,
2007.
4. ADOPTION OF A RESOLUTION ADOPTING THE INVESTMENT POLICY OF
THE CITY OF LA QUINTA FOR FISCAL YEAR 2007/2008.
Redevelopment Agency Agenda 2 June 19, 2007
5. APPROVAL OF AMENDED AGREEMENT FOR LEGAL SERVICES WITH
RUTAN & TUCKER, LLP.
BUSINESS SESSION - NONE
STUDY SESSION - NONE
CHAIR AND BOARD MEMBERS' ITEMS - NONE
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. JOINT PUBLIC HEARING BETWEEN THE CITY COUNCIL AND
REDEVELOPMENT AGENCY TO APPROVE AN AGREEMENT TO SELL REAL
PROPERTY LOCATED AT 53-785 AVENIDA RAMIREZ BY AND BETWEEN
THE LA QUINTA REDEVELOPMENT AGENCY AND MICHELE PACELLI.
A. MINUTE ORDER ACTION
ADJOURNMENT
Adjourn to a special meeting of the Redevelopment Agency to be held on June 21,
2007, commencing at 7:00 p.m. in the City Council Chambers, 78-495 Calle
Tampico, La Quinta, CA 92253.
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 June
19, 2007,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 June 15, 2007.
DATE June 15, 2007
Ate,
VERONICA J. ONTECINO, City Clerk
City of La Qui ta, California
—0-0 1
Redevelopment Agency Agenda 3 June 19, 2007
COUNCIL/RDA MEETING DATE: June 19, 2007
ITEM TITLE: Demand Register Dated June 19, 2007
RECOMMENDATION:
It is recommended the Redevelopment Agency Board:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Receive and File the Demand Register Dated June 19, 2007 of which
$587,239.02 represents Redevelopment Agency Expenditures.
PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA
E
O
wav" 4 4 a9mr6i
COUNCILIRDA MEETING DATE: June 19, 2007
ITEM TITLE: Receive and File Transmittal of
Treasurer's Report as of April 30, 2007
RECOMMENDATION:
It is recommended the Redevelopment Agency Board:
Receive and file.
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
PLEASE SEE RELATED BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA
COUNCIL/RDA MEETING DATE: June 19, 2007
ITEM TITLE: Receive and File Transmittal of Revenue
and Expenditure Report for April 30, 2007
RECOMMENDATION:
Receive and File.
BACKGROUND AND OVERVIEW:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: 3
STUDY SESSION:
PUBLIC HEARING:
Receive and File Transmittal of the Statement of Revenue and Expenditures for April
30, 2007,for the La Quinta Redevelopment Agency.
Respectfully submitted,
John M. Falconer, Finance Director
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachment: 1. Revenue and Expenditures for April 30, 2007
0710112006 - 413012007 REMAINING %
BUDGET RECEIVED BUDGET RECEIVED
N i l riili,nrvir-1,111 I I
LA OUINTA REDEVELOPMENT AGENCY
REVENUE SUMMARY
PROJECT AREA NO. 1:
LOW/MODERATE BOND FUND:
Allocated Interest
Home Sale Proceeds
Non Allocated Interest
Transfer In
TOTAL LOWIMOD BOND
LOWIMODERATE TAX FUND:
Tax Increment
Allocated Interest
Non Allocated Interest
Miscellaneous revenue
Nco Allocated Interest
LORP-Rent Revenue
Home Sales Proceeds
Sale of Land
Sevrer Subsidy Reimbursements
Rehabilitation Loan Repayments
2nd Trust Deed Repayment
Transfer In
TOTAL LOW/MOD TAX
000
000
000
0 000 %
000
000
000
0000%
000
0,00
000
0.000%
000
000
000
0000%
000
000
000
0.000 %
10,349,20000
5,311,24212
5037,95788
51320%
442.300 00
296,708 61
145, 591 39
67 080%
000
128,12232
(128,12232)
0000%
000
81 97
(111 97)
0000%
000
45660
(456 60)
0000%
252,000 00
239,087 42
12,912 58
94 880%
480,000 00
311.092 38
168,917 62
64 810%
000
000
000
0o00%
50,00000
34,18865
15,81135
68.380%
0GO
000
000
0000%
1000,00000
820.57317
179,42683
82060%
140 000 00
100,00000
40 000 00
71 430%
12,713,50000
7,241,55324
5,471,94671J
56960%
DEBT SERVICE FUND:
Tax Increment
41.396.80000
21, 244,96857
20,151,83143
51320%
Allocated Interest
553.100 00
640,166 17
(87,066 A 7)
115 740%
Non Allocated Interest
000
000
000
0000%
Inlerst - County Loan
000
000
000
0000%
Interest Advance Proceeds
000
000
0 00
0000%
Transfers In
4,448,3N 00
4448,13799
13601
100 000%
TOTAL DEBT SERVICE
46,398,204.00
26,333,272 73
20,064,931 27
56.750
CAPITAL IMPROVEMENT FUND - NON-TAXABLE
Pooled Cash Allocated Interest
199,500 00
148,883.41
50,616 59
74 630%
Non Allocated Interest
1,000,00000
79273913
207,25087
79.270%
Developer Agreement Funding
000
22.84650
(22.84650)
0000%
Loan Proceeds
coo
000
0.00
0000%
Rental Income
000
000
000
0000%
Transfers In
000
000
0.00
0000%
TOTAL CAPITAL IMPROVEMENT
1,199,50000
964,46904
235,03096
80.410%
CAPITAL IMPROVEMENT FUND - TAXABLE
Pooled Cash Allocated Interest
000
000
000
0 000 %
Non Allocated Interest
000
000
coo
0 000 %
Ltigation Settlement Revenue
000
000
0.00
0000%
Band proceeds
000
000
0.00
0000%
Rental Income
000
0.00
0.00
0,000%
Transfers In
0.00
0.00
000
0 000 %
TOTAL CAPITAL IMPROVEMENT
000
000
0.00
0.000%
�P.0 i% 07
2
LA GUINTA REDEVELOPMENT AGENCY 0710112006- 4/3012007
REMAINING
EXPENDITURE SUMMARY
BUDGET
EXPENDITURES
ENCUMBERED
BUDGET
PROJECT AREA N ).1:
LOWIMODERATE BOND FUND
PERSONNEL
000
000
000
0DO
SERVICES
000'
000
000
000
REIMBURSEMENT TO GEN
000
000
000
000
HOUSING PROJECTS
000
000
000
000
TRANSFERS OUT
000
000
0DO
000
TOTAL LOWIMOD BOND
ODD
D00
000
0b0
LOW/MODERATE TAX FUND:
PERSONNEL
490000
4,25015
000
64985
SERVICES
368,88100
209,32796
000
159,55304
BUILDING HORIZONS
250,00000
000
000
250,00000
LO RENTAL PROGRAM
200,00000
198,56052
000
1,4494E
2rd TRUST DEED PROGRP
500,00000
0DO
000
500,00000
LAND ACQUISITION
1,80000000
12,02875
0DO
1)8797125
FORECLOSURE
15000000
000
000
150,00000
RIEIMBU RSEMENT TO GEN
484, 12700
40343810
000
80,68890
TRANSFERS OUT
20,448,30400
4,448, 13799
000
1QODD16501
TOTAL LOW/MOD TAX
4, ,2120U
526,73 4
1O93UF47T53
DEBT SERVICE FUND:
SERVICES
640,00000
0DO
166.000
BOND PRINCIPAL
2,640,00000
640,00326
000
000
TCITY
7,658,90026
7,85000000
000
(026)
EBOND
INTEREST
I020,90000
1,02O17000
000
PASS THROUGH PAVMENI
PASS THROUGH
19,950,17000
24344737
1024344000
000
,7000000
9.706,72263
000
000
000
TRANSFER
TRANSFERS OUT
500
d,108,51500
4,068,34892
000
40.166 08
TOTAL DEBT SERVICE
36.0 50O
2. 1,95981
000
10,08.",-
CAPITALIMPROVEMENTFUND'
PERSONNEL
4,90000
4,25015
000
64985
SIERVICES
659,73000
64142589
000
18,30411
UWDACQUISITION
ODD
000
0DO
000
ASSESSMENT DISTRICT
000
000
000
0DO
ADVERTISING -ECONOMIC
000
0.00
000
0DO
ECONOMIC OEVELOPMEN
000
000
000
0DO
BOND ISSUANCE COSTS
000
000
000
0DO
CAPITAL - BUILDING
000
Do
000
000
REIMBURSEMENT TO GEN
213,01600
177, 513 DO
000
35,502.70
TRANSFERS OUT
20,55505700
4,012,82867
0DO
16,543,22833
'TOTAL CAPITAL IMPROVEMENT
21.433,70300
4.836.018 01
0 DO
16, 9 FOR99
CAPITAL IMPROVEMENT FUNOITAXABLE BOND
BOND ISSUANCE COSTS
0DO
000
000
CDO
TRANSFERS OUT
(4280700
000
000
(4280700
EOTAL CAPITAL IMPROVEMENT
(42,80�
0
000
( �30
3
LA QUINTA REDEVELOPMENT AGENCY
REVENUE SUMMARY
PROJECT AREA NO. 2:
07/0112006-4/30/2007 REMAINING %
BUDGET RECEIVED BUDGET RECEIVED
LOW/MODERATE BOND FUND
Allocated Interest
Non Allocated Interest
Bond proaaeds (net)
Trinsfer In
TOTAL LOW/MOD BOND
LOW/MODERATE TAX FUND.
Tax Increment
Allocated Interest
Non Allocated Interest
Developer funding
Vista Dunes MHP Rental Rev
2nd Trust Deed Repayment
ERAF Shift - Interest
Sale of Land
Transfer In
TOTAL LOW/MOD TAX
2004 LOW/MODERATE BOND FUND:
Allocated Interest
Home Sale Proceeds
Nan Allocated Interest
Transfer In
TOTAL LOW/MOD BOND
000
000
000
0000%
0,00
000
000
0000%
000
000
000
0000%
000
0.00
000
0 000 %
000
000
000
0 000 %
5,401,80000
2,615,71405
2,786,0f15.95
48420%
441,00000
303,22541
137,77459
68.760%
000
000
000
0000%
000
0.00
000
0 000 %
000
000
000
0000%
100,00000
59,409.08
40,59092
59410%
0.00
0 00
000
0 000 %
12,641,90300
0.00
12,641,90300
0000%
1600000000
000
16000,0(1000
0000%
34,584,70300
2,978,34854
31,606,3:A 45
8610%
000
000
Goo
0.000 %
0.00
000
000
0000%
2,800,00000
2,302.39230
497,60770
82230%
000
000
000
0000%
2,800,00000
2,302,39230
497,60770
82230%
DEBT SERVICE FUND:
Tax Increment
21,607.20000
10,462.85621
11,144,34379
48420%
AIDcaled Interest
399,900.00
366,77409
33, 12591
91720%
Nan Allocated Interest
000
000
000
0000%
Interest Advance Proceeds
000
000
000
0000%
Transfer In
1,954,642 00
1,954 559 91
82 09
100 000 %
TOTAL DEBT SERVICE
23,961,74200
12784,19021
11,177,55179
53.350%
CAPITAL IMPROVEMENT FUND:
AIIDcated Interest
105,60000
90,46484
15,10516
85670%
Non Allocated Interest
000
000
000
0000%
Developer Agreement
0.00
0.00
000
0.000 %
Transfers In
000
000
000
0000%
TOTAL CAPITAL IMPROVEMENT
105,600.00
90,46484
15,73516
85670%
2
LA QUINTA REDEVELOPMENT AGENCY 07/0112006.413012007 REMAINING
EXPENDITURE SUMMARY BUDGET EXPENDITURES ENCUMBERED BUDGET
PROJECT AREA NC1. 2:
LOWIMODERATE BOND FUND
2n]TRUST DEEDS
000
000
000
000
LAND
000
000
000
000
BOND ISSUANCE COSTS
000
000
000
000
TRANSFERS OUT
000
000
000
000
TOTAL LOW/MOD BONG
000
000
000
Obi
LOWIMODERATE TAX FUND:
PERSONNEL
2,90000
2,57204
000
327%
SERVICES
324,11100
183,71679
0W
140,09421
2NO TRUST DEEDS
000
000
000
000
FORECLOSURE ACQUISITI
150,00000
000
000
150,0W.00
WATERCOLOR COURT HO
4,500,00000
000
000
4,500,00000
LA NO ACQUISITION
20,30000000
19,96600414
000
333,99586
REIMBURSEMENT TO GEN
264, 52300
220,43470
000
44,03830
TRANSFERS OUT
3,523" 0'
3,0719,24328
000
423,05372
TOTAL LOWIMOD TAX
29,064,6316
3,4]1,9]095
000
5.592.�v ub-
2004 LOWIMODERATE BOND FUND
HOUSING PROGRAMS
6,283,00000
3834,60000
000
2,448,40000
LAND
000
000
000
000
TRANSFERS OUT
5?291 ]9500
8,282 d241]
000
14! 09,370 83
TOTAL LOWIMOD BOND
58,54,
12,11 0241
0
46,45],]70�83
DEBT SERVICE FUND:
SERVICES
176,10000
181,79707
000
(569707)
BOND PRINCIPAL
205,00000
105.00000
000
100,W000
BOND INTEREST
31478500
314.78500
000
000
INFEREST CITY ADVANCE
1,000,00000
833.33332
000
166tw 68
PASS THROUGH PAYMENI
18,046 995 00
8,629,21595
000
941777905
TRANSFERS OUT
1,954,642 W
1,954.55991
200
8209
TOTAL DEBT SERVICE
21,5
12,01061
0
67883�
CAPITAL IMPROVEMENT FUND:
PERSONNEL
2,90000
2,57016
000
32984
SERVICES
133,04300
52,82210
000
80,22090
ADVERTISING -ECONOMIC
000
000
000
000
ECONOMIC DEVELOPMEN
000
000
000
000
REIMBURSEMENT TO GEN
3653400
3044390
000
6,09010
TRANSFERS OUT
193,23500
M 00
000
127,-112800
TOTAL CAPITAL IMPROVEMENT
3 , 120C
151, 4316
213,76884
w10J1-- 1. p)
5
F VA !Yf
`y OF TKO'
COUNCIL/RDA MEETING DATE: June 19, 2007
ITEM TITLE_ Adoption of a Resolution Adopting the
Investment Policy of the Redevelopment Agency
for Fiscal Year 2007/2008
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION: _
CONSENT CALENDAR: '4
STUDY SESSION:
PUBLIC HEARING:
Adopt a Resolution of the Redevelopment Agency approving the Investment Policy of
the City of La Quinta for Fiscal Year 2007/2008.
SEE CITY COUNCIL STAFF REPORT
RESOLUTION NO. RA 2007-
A RESOLUTION OF THE LA QUINTA REDEVELOPMENT
AGENCY OF THE CITY OF LA QUINTA APPROVING AND
ADOPTING THE AMENDED INVESTMENT POLICY FOR
FISCAL YEAR 2007/2008
WHEREAS, the general purpose of the Investment Policy is to provide the rules
and standards users must follow in investing funds of the City of La Quinta; and
WHEREAS, the primary objectives, in order of priority, of the City of La Quinta's
investment activity shall be:
Safety of principal is the foremost objective of the investment program.
Investments of the City of La Quinta shall be undertaken in a manner that seeks
to ensure the preservation of capital in the overall portfolio.
The investment portfolio shall remain sufficiently li uid to meet all operating
requirements that may be reasonably anticipated.
The investment portfolio shall be designed with the objective of attaining a
market rate of return or yield throughout budgetary and economic cycles, taking
into account the investment risk constraints and liquidity needs.
WHEREAS, authority to manage the City of La Quinta's investment portfolio is
derived from the City Ordinance. Management responsibility for the investment
program is delegated to the City Treasurer, who shall establish and implement written
procedures for the operation of the City's investment program consistent with the
Investment Policy; and
WHEREAS, the Investment Policy will be adopted before the end of June of
each year and amended as considered necessary; and
NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City
of La Quinta to adopt the 2007/2008 Fiscal Year Investment Policy (Exhibit A).
PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta
Redevelopment Agency, held on this day of
2007 by the following vote, to wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
LEE OSBORNE, Chair
La Quinta Redevelopment Agency
ATTEST:
VERONICA J. MONTECINO, CMC, Agency Secretary
La Quinta Redevelopment Agency
(SEAL)
APPROVED AS TO FORM:
M. K.ATHERINE JENSON, Agency Counsel
La Quinta Redevelopment Agency
Exhibit A
(TO BE ATTACHED)
^^11 T 1
OF Tt�
COUNCIL/RDA MEETING DATE:. June 19, 2007
ITEM TITLE: Approval of Amended Agreement for Legal
Services with Rutan & Tucker, LLP
Please see same item under City Council agenda.
Respectfully submitted,
M. Katherine Jenson, City Attorney
AGENDA CATEGORY:
BUSINESS SESSION: _
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Approved for submission by:
Thomas P. Genovese, Executive Director
* 1,;
aw o�
u S
4QU&rC4V
5
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COUNCIL/RDA MEETING DATE: June 19, 2007
ITEM TITLE: A Joint Public Hearing Between the City
Council and Redevelopment Agency to Approve an
Agreement to Sell Real Property Located at 53-785
Avenida Ramirez By and Between the La Quinta
Redevelopment Agency and Michele Pacelli
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Approve the sale of 53-785 Avenida Ramirez to maintain an affordable housing unit in
Project Area No. 1 for a purchase price of $165,000 and authorize the Executive
Director to execute the necessary documents to complete the property sale.
FISCAL IMPLICATIONS:
The Agreement would result in the Agency receiving approximately $55,950 from sale
proceeds. The Agency would also provide a $109,050 silent second trust deed loan
to insure that the dwelling is affordable to a very low-income household for 45 years.
BACKGROUND AND OVERVIEW:
In August, 1995, the Agency acquired 50 single family homes located in the Cove to
secure these units from bankruptcy proceedings filed by the then owner, Coachella
Valley Land. Prior to the bankruptcy, the Agency invested $1.0 million to maintain the
dwellings as very low-income rental units. Since then, the Agency has substantially
rehabilitated these dwellings to correct deficiencies and improve their appearance.
These costs have been funded from rental income. In February 1998, the Agency
directed staff to sell two (2) units per year first to qualified tenants, and secondly, to
other eligible very low-income households. The proposed sale is the twenty-fifth
(25th) unit to be sold; fourteen (14) of these units were sold to existing tenants and
eleven 11 1) to non -tenant households.
The proposed purchaser is an existing tenant who expressed an interest in purchasing
the property, took the required actions to qualify for a first trust deed loan, and
qualifies in the very low-income category.
c
The sale transaction, as outlined in the Summary Report (Attachment 1) would be
structured as other Agency affordable housing projects, wherein the existing Agency -
funded silent second trust deed would cover the difference between the market sales
price and an affordable first trust deed mortgage. If this sale is authorized, the unit will
be sold for the market value of $165,000, with the buyer funding a 3% down
payment and a private lender originating a $51,000 first trust deed mortgage (the
maximum loan the homebuyer can obtain). The Agency would convert $109,050 of
its equity in the property into a silent second trust deed loan.
This unit has been substantially rehabilitated and therefore, can be counted toward the
Agency's inclusionary housing requirement.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Redevelopment Agency include:
1. Approve an Agreement to sell real property located at 53-785 Avenida Ramirez
to Michele Pacelli for a purchase price of $165,000 and authorize the Executive
Director to execute the necessary documents to complete the property sale; or
2. Do not approve an Agreement to sell real property located at 53-785 Avenida
Ramirez to Michele Pacelli for a purchase price of $165,000; or
3. Provide staff with alternative direction.
Respectfully submitted,
-- e4
Douglas R4.VEvans
Assistant City Manager — Development Services/
Interim Community Development Director
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachment: 1 . Summary Report
SUMMARY REPORT
FOR THE PROPOSED RESIDENTIAL HOME SALE AGREEMENT
BETWEEN THE
LA QUINTA REDEVELOPMENT AGENCY
AND
MICHELE PACELLI
INTRODUCTION
This document is the Summary Report ("Report") for the proposed Sale Agreement
("Agreement") between the La Quinta Redevelopment Agency ("Agency") and
Michele Pacelli ("Buyers"). The purpose of Agreement is to facilitate the sale by
the Agency of a single-family dwelling to the Buyers.
This Report has been prepared pursuant to Section 33433 of the California Health
and Safety Code ("California Community Redevelopment Law") and presents the
following:
• A :summary of the proposed transaction.
• The cost of the sale to the Agency.
• The estimated value of the interest to be conveyed, determined at the highest
and best uses permitted by the Agency's Redevelopment Plan.
• The estimated value to be conveyed, determined by the use and with the
conditions, covenants, and development costs required by the Agreement.
• An explanation of why the sale, pursuant to the Agreement, will assist in the
elimination of blight.
SUBJECT PROPERTY
The home is a vacant 3-bedroom 2-bath single-family dwelling located at 53-785
Avenida Ramirez within La Quinta Redevelopment Project Area No. 1 ("Property").
The Agency acquired the Property in 1995 to preserve single-family homes that
were affordable to very -low income Section 8 households. These homes have been
rented to said households since 1995. The Buyers are the current tenants of this
home who expressed interest in purchasing it and subsequently qualified for a first
trust deed loan. The Agency then elected to enter into the Agreement to facilitate
this sale.
-m_u 1
THE TRANSACTIONS PROVIDED FOR BY THE AGREEMENT
The Agreement will accommodate the sale of the Property to the Buyers, who will
continue to occupy the dwelling. The sales price of $165,000, which represents
the fair market value, will be funded through a combination of the Buyers' down
payment of $4,950, a first trust deed mortgage of $51,000, and the Agency's
equity of $109,050 that will be converted into a silent second trust deed loan.
This second trust deed loan will include covenants to insure that the Property will
remain affordable to very low -income -households for 45 years.
Historyof Property
This Property is part of the Agency Rental Property Purchase Program. In May
1998, the Agency offered these properties first to the existing tenants for purchase
and secondly to other qualified very low-income households. The Buyers are the
current tenants, who expressed an interest in purchasing the unit, and were
recently approved by V.J. Sleight, Broker, for a mortgage up to the amount of
$51,000. The Buyers qualify as a very low-income household.
The Cost of the Sale to the Agenc
To date the Agency has invested $1 1 1,174 in the Property through a combination
of the initial purchase cost ($86,500) and expenses related to rehabilitating the
dwelling ($24,674). Per the Agreement the Agency will sell the Property for
$165„000; of this amount the Agency will receive $55,950 in sale proceeds and
retain a silent second trust deed of $109,050 in order to insure that the annual
costs are affordable to very low-income households.
Estimated Value of the Interest to be Conveyed Determined at the Highest and
Best Uses Permitted by the Agency's Redevelopment Plan
The Redevelopment Plan for La Quinta Redevelopment Project No. 1 provides that
the Property shall be used for low -density residential development. Current
residential property sales for like dwellings in the Cove market area indicate values
of $2,85,000 to $300,000 for three bedroom, two bath single-family dwellings in
good condition.
Estimated Value of the Interest to be Conveyed, Determined at the Use With the
Conditions Covenants and Development Costs Required by the Agreement
The Agreement provides that the Property will be sold for $165,000. This value
was selected in order to facilitate the sale at a cost affordable to a very low-income
household.
Explanation of Why the Sale of the Property Pursuant to the Agreement will Assist
in the Elimination of Blight
The Agreement does not eliminate blight in that it does not facilitate a transaction
that remedies blight. Instead the Agreement expands that Agency's affordable
housing efforts and increases the community's supply of affordable housing. Prior
to the; sale, the Agency substantially rehabilitated the Property extending the
Property's economic life while improving its appearance. Thus, the transaction will
insure the continued affordability of a substantially rehabilitated single-family
dwelling to a very low-income household.