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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 October 12, 2007,
commencing at 2:00 p.m., in the City Council Chamber at 78-495 Calle Tampico,
La Quinta, California 92253.
Said special meeting shall be for the purpose of considering the following
matters:
Closed Session, pursuant to Government Code Section 54957, concerning
potential terms and conditions of acquisition and/or disposition of property
located at 78-990 Miles Avenue (APN 604-032-022). Property
Owner/Negotiator: National Community Renaissance of California, Alfredo
Izmajtovich.
Approval of an appropriation of up to $250,000 from Project Area No. 1
Low Mod Income Housing Fund and authorization to acquire two single
family homes located at 51-805 Avenida Cortez and 51-455 Calle Iloilo.
Consideration to award a contract for the temporary parking lot at SilverRock
Resort, Project No. 2007-14, and adoption of a resolution making certain
findings pursuant to Health and Safety Code Section 33445(a).
Dated: October 11, 2007
/OrLEE M O NE, Chairman
Redevelopment Agency Agenda 1 October 11, 2007
6x# 4 44dia
Redevelopment Agency agendas are
available on the City' web page
@ www.la-quinta.org
REDEVELOPMENT AGENCY
AGENDA
CITY COUNCIL CHAMBERS
78-495 Calls Tampico
La Quints, California 92253
Special Meeting
FRIDAY, OCTOBER 12, 2007 — 2:00 P.M.
Beginning Resolution No. RA 2007-015
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.
CONFIRMATION OF AGENDA
CLOSED SESSION
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 78-990 MILES AVENUE
(APN 604-032-022). PROPERTY OWNER/NEGOTIATOR: NATIONAL
COMMUNITY RENAISSANCE OF CALIFORNIA, ALFREDO IZMAJTOVICH.
Redevelopment Agency Agenda 1 October 12, 2007
Special Meeting
CONSENT CALENDAR
1. APPROVAL OF AN APPROPRIATION OF UP TO $250,000 FROM PROJECT
AREA NO. 1 LOW MOD INCOME HOUSING FUND AND AUTHORIZATION
TO ACQUIRE TWO SINGLE FAMILY HOMES LOCATED AT 51-805 AVENIDA
CORTEZ AND 51-455 CALLE ILOILO.
BUSINESS SESSION
1. CONSIDERATION TO AWARD A CONTRACT FOR THE TEMPORARY
PARKING LOT AT SILVERROCK RESORT, PROJECT NO. 2007-14, AND
ADOPTION OF A RESOLUTION MAKING CERTAIN FINDINGS PURSUANT TO
HEALTH AND SAFETY CODE SECTION 33445(a).
A. MINUTE ORDER ACTION
B. RESOLUTION ACTION
ADJOURNMENT
Adjourn to a regularly scheduled meeting of the Redevelopment Agency to be held
on October 16, 2007, 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.
DECLARATION OF POSTING
I, Veronica 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
October 12, 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 1 1 1, on October 11, 2007.
DATED: 11ctober 11, 2007
VERONICA J. ONTECINO, City Clerk
City of La Quinta, California
Redevelopment Agency Agenda 2 October 12, 2007
Special Meeting
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COUNCIL/RDA MEETING DATE: October 12, 2007 AGENDA CATEGORY:
ITEM TITLE: Approval of an Appropriation of up to
$250,000 from Project Area No. 1 Low Mod Income
Housing Fund and Authorization to Acquire Two
Single Family Homes Located at 51-805 Avenida
Cortez and 51-455 Calle Iloilo
RECOMMENDATION:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Approve the acquisition of two residential properties located at 51-805 Avenida
Cortez ("Property 1 ") and 54-455 Calle Iloilo ("Property 2"), authorize the
Executive Director to sell Property 1 to a very low income household and Property
2 to a low income household, and appropriate $250,000 from Project Area No. 1
Low and Moderate Income Housing Fund unappropriated reserves, account number
245-000-290.00-00.
FISCAL IMPLICATIONS:
Purchasing these properties at the Trustee's Sales may result in an expenditure of
up to $400,000 as follows: Property 1 - $175,000 to purchase the property and
retire the first trust deed mortgage encumbrances, and up to $25,000 in potential
rehabilitation costs, and Property 2 - $175,000 to purchase the property and retire
the first trust deed mortgage encumbrances and up to $25,000 in potential
rehabilitation costs. Subsequent dwelling sale proceeds would generate
approximately $140,000 first trust deed mortgage and down payment income
resulting in a net Agency investment of $260,000. This analysis assumes a worst
case scenario.
Staff is requesting an appropriation of $250,000 which will be combined with the
$175,000 appropriated for foreclosure property purchases in the 2007-08 Agency
budget. The minimal purchase bids for each property must fund the first and
second trust deed loan encumbrances. Since the Agency holds the second trust
deed loans on both properties, the second trust deed loan pay-off amounts will be
paid to the Agency. We are requesting funding in excess of the first and second
trust deed encumbrances to allow staff to bid up to $175,000 for each dwelling.
Review of potential sales values for these dwellings indicates that these homes
support the anticipated purchase value. If other parties bid a greater amount for
these properties, then the units will be sold to them; the Agency will be paid the
outstanding amounts owed on its second trust deed loans - $88,850 and $47,000
for a total of $135,850. Per the Redevelopment Law, the Agency would then have
4 years within which it must secure one very low income and one low income unit
to replace these lost covenants.
BACKGROUND AND OVERVIEW:
51-805 Avenida Cortez ("Property 1")
Staff received notice that on October 15, 2007, Property 1 will be sold at a
Trustee's foreclosure sale. This house was sold to a very low income household
(the current owner) in December 2004 with a second trust deed amount of
$88,850. The current outstanding first trust deed loan balance, including
foreclosure costs, is estimated to be $75,000. This loan plus the second trust
deed of $88,850 represents total encumbrances of $163,850.
An additional $1 1,150 is being requested in the event other bidders are present
who may bid the price over the total encumbrances; review of Cove home resales
indicate a market value that may be higher than the total encumbrances. This
home was built in 1988 and recent sales data for similar properties indicate a
market value of $175,000 to $195,000. The encumbrances of $163,850 plus the
additional $1 1,150 allow the Agency to bid up to $175,000; this would be done
only if other parties submit higher bids.
RSG has been advised that the owner is working to cure the first trust deed loan
default. However, as of October 91 2007, the foreclosure sale is still anticipated
and the Agency must be prepared to submit a bid in order to secure the
affordability covenant. If the Agency does not elect to purchase Property 1 or is
not the successful bidder, the very low income affordability covenant would be
extinguished and the Agency would need to replace the very low income covenant
within four years. If the Agency elects submit a bid and is the successful bidder,
then the current residents will be required to move, and the property would be
rehabilitated and sold to an eligible very low income household. Since the resident
would be defaulting on their first trust deed mortgage loan, they would not be
eligible for relocation assistance.
Considering a worst case scenario, purchasing the dwelling for $175,000 and
funding $25,000 in rehabilitation costs, the Agency's investment would be
$200,000. If the dwelling was sold to a very low income household for $200,000,
the Agency could receive up to $65,000 from a down payment and first trust deed
mortgage loan proceeds. This would yield a net investment of $135,000 which
would be converted into a second trust deed mortgage loan. This compares to
past Agency investments to obtain very low income covenants which ranged from
$175,000 to $268,000 per unit.
51-455 Calle Iloilo ("Property 2")
This property will be offered at a Trustee's foreclosure sale on October 22, 2007.
This house was sold to a low income household (the current owner) in December
2000 with a second trust deed amount of $47,000. The current outstanding first
trust deed loan balance, including foreclosure costs, is estimated to be $$82,000.
This loan plus the second trust deed of $47,000 represents total encumbrances of
$129,000.
An additional $46,000 is being requested in the event other bidders are present
who may bid the price over the total encumbrances; review of Cove home resales
indicate a market value that may be higher than the total encumbrances. This
home was built in 2000 and recent sales data for similar properties indicate a
market value of $175,000 to $200,000. The encumbrances of $129,000 plus the
additional $46,000 would allow the Agency to bid up to $175,000; this would be
done only if other parties are placing higher bids. RSG is in contact with the
Trustee to verify that the sale is still scheduled and the default has not been cured.
As with Property 1, staff is requesting authorization to pursue this purchase in
order to maintain a low income affordability covenant. If lost, the Agency would
have to replace this covenant within four years. Considering a worst case
scenario, purchasing the dwelling for $175,000 and funding $25,000 in
rehabilitation costs, the Agency's investment would be $200,000. If the dwelling
was sold to a low income household for $200,000, the Agency could receive up to
$75,000 from a down payment and first trust deed mortgage loan proceeds. This
would yield a net investment of $125,000 which would be converted into a second
trust deed mortgage loan. This compares to past Agency investments to obtain
low income covenants which ranged from $83,000 to $120,000 per unit.
FINDINGS AND ALTERNATIVES:
1. Approve the acquisition of two residential properties located at 51-805
Avenida Cortez ("Property 1 ") and 54-455 Calle Iloilo ("Property 2"), authorize
the Executive Director to sell Property 1 to a very low income household and
Property 2 to a low income household, and appropriate $250,000 from Project
Area No. 1 Low and Moderate Income Housing Fund unappropriated reserves;
or
2. Do not approve the acquisitions; or
3. Provide staff with alternative direction.
Respectfully submitted:
1 t sU 4t� &04-0 rl.d
Douglas R. Eva ,
Assistant City Manager - Development Services
Approved for submission by:
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Thomas P. Genovese,
Executive Director
T4ty,, 4 XP Qubt&
COUNCIL/RDA MEETING DATE: October 12, 2007
ITEM TITLE: Consideration to Award a Contract for
the Temporary Parking Lot at SilverRock Resort,
Project No. 2007-14 and Adopt a Resolution Making
Certain Findings Pursuant to Health and Safety Code
Section 33445(a)
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
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Award a contract to Precision Landleveling, Inc. for the Temporary Parking Lot at
SilverRock Resort, Project No. 2007-14 in the amount of $149,325; approve an
appropriation in the amount of $186,283; and adopt a Resolution making certain
findings pursuant to Health and Safety Code Section 33445(a).
FISCAL IMPLICATIONS:
Appropriate $186,283 from RDA Project Area No.1 (Account No. 405-9001-
702.32-15).
BACKGROUND AND OVERVIEW:
The SilverRock Resort development plan identifies the lot located on the corner of
Avenue 52 and Jefferson Street "45-Acre Site" ultimately to be a passive park. In
the interim, the area needs to have PM-10 control measures.
On August 7, 2007, the Agency approved the plans, specifications, and engineer's
estimate and authorized staff to advertise this project for bid. The specifications
included rye grass to be planted in October 2007. The rye grass would be grown,
mowed, and watered (with above -ground irrigation) until January 14, 2008.
On August 30, 2007, three bids were received. Staff determined that the two
lowest bidders did not posses a Class C-27 Landscape Contractors License which
was required in Section 1 100 Invitation to Bid. The third bid was determined to be
too high with the bid amount being more than double the next closest bid.
On September 18, 2007, the Agency approved the rejection of all bids and
authorized staff to advertise the project again with the C-27 Landscape Contractors
License or equivalent landscaping and irrigation experience as determined by the
City Engineer.
In an effort to keep the project moving in a timely manner, the grading portion in
the original specifications was pulled and was bid out separately. Three bids were
received and a purchase order was issued to Precision Landleveling in the amount
of $25,550. Precision Landleveling began the grading on October 1, 2007, and is
expected to have the site prepared for PM-10 measures and grassing of a
temporary parking lot.
The bid opening for this project was held on October 11, 2007 at 10:00 a.m. The
Bid Comparison Summary (Attachment 1) shows the item prices from each bidder.
The lowest bid is from Precision Landleveling, Inc. with a bid amount of $149,325.
Staff recommends approving Precision Landleveling, Inc. for the Temporary Parking
Lot at SilverRock Resort, Project No. 2007-14 ($149,325) and include an additional
9.75% ($14,559) for related inspection costs and an additional 15% ($22,399) for
contingency.
The Resolution sets for the necessary findings for those expenditures. It is a
procedural requirement that certain findings are made pursuant to Health and
Safety Code Section 33445(a).
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency include:
1. Award a contract to Precision Landleveling, Inc. for the Temporary Parking
Lot at SilverRock Resort, Project No. 2007-14 in the amount of $149,325;
approve an appropriation in the amount of $186,283; and adopt a Resolution
making certain findings pursuant to Health and Safety Code Section
33445(a); or
2. Do not award a contract to Precision Landleveling, Inc. for the Temporary
Parking Lot at SilverRock Resort, Project No. 2007-14 in the amount of
$149,325; approve an appropriation in the amount of $186,283; and adopt
a Resolution making certain findings pursuant to Health and Safety Code
Section 33445(a); or
3. Provide staff with alternative direction.
Respectfully submitted,
al
Edie y Son
Community Services Director
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachment: 1. Bid Comparison Summary
RESOLUTION NO. RA 2007-
A RESOLUTION OF THE LA QUINTA REDEVELOPMENT
AGENCY OF THE CITY OF LA QUINTA, CALIFORNIA,
MAKING CERTAIN FINDINGS PURSUANT TO HEALTH
AND SAFETY CODE SECTIONS 33445(a)
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.); and
WHEREAS, the California Community Redevelopment Law, at Health
and Safety Code Section 33445, requires before the Agency may pay for the
cost of publicly owned improvements, the Agency and City Council must
adopt a resolution making certain findings; and
WHEREAS, on August 7, 2007, the Agency approved the plans,
specifications, and engineer's estimate for a Temporary Parking Lot at
SilverRock Resort, Project No. 2007-14.
NOW, THEREFORE, BE IT RESOLVED, by the La Quinta
Redevelopment Agency, as follows:
SECTION 1. The above recitations are true and correct and are
adopted as findings of the Agency Board.
SECTION 2. The Agency Board hereby authorizes Agency funding up
to $186,283 to be utilized for the Temporary Parking Lot at SilverRock
Resort.
SECTION 3. Pursuant to Health and Safety Code 33445(a), the
Agency finds and determines that:
A. The improvements included in Project No. 2007-14 will be located
within the Project Area and thus will provide recreational facilities
and opportunities for the residents, businesses, property owners,
and others located within the Project Area, as well as the City at -
large.
B. That no other reasonable means of financing the buildings,
facilities, structures, landscape and other improvements are
available to the community other than Agency funding.
Resolution No. RA 2007-
PN 2007-14 SRR Parking
Adopted: October 12, 2007
Page 3
C. The improvements included in Project No. 2007-14 will assist in
the elimination of one or more blighting conditions inside and
around the perimeter of the Project Area, and are consistent with
the Agency's Implementation Plan adopted pursuant to Health and
Safety Code Section 33490.
PASSED, APPROVED and ADOPTED at a regular meeting of the
La Quinta Redevelopment Agency held on this 121" day of October 2007, by
the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
THOMAS P. GENOVESE, Executive Director
La Quinta Redevelopment Agency,
La Quinta, California
ATTEST:
VERONICA J. MONTECINO, CMC
Agency Secretary
City of La Quinta, California
(City Seal)
APPROVED AS TO FORM:
M. KATHERINE JENSON, Agency Counsel
City of La Quinta, California
ATTACHMENT 1
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