2009 11 17 RDAeaf 4 4vadja
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, November 17, 2009
3:30 P.M. Closed Session / 4:00 P.M. Open Session
Beginning Resolution No. RA 2009-009
CALL TO ORDER
Roll Call:
Agency Board Members: Adolph, Evans, Henderson, Sniff, Chairperson Franklin
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 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 A PORTION OF 525 ± ACRES LOCATED AT THE
SOUTHWEST CORNER OF AVENUE 52 AND JEFFERSON STREET.
PROPERTY OWNER/NEGOTIATOR: LDD SILVERROCK, LLC., THEODORE R.
LENNON. JR.
A. , 001
Redevelopment Agency Agenda 1 November 17, 2009
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
1. APPROVAL OF MINUTES OF NOVEMBER 3, 2009.
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 NOVEMBER 17, 2009.
2. RECEIVE AND FILE TREASURER'S REPORT DATED SEPTEMBER 30, 2009.
3. RECEIVE AND FILE REVENUE & EXPENDITURES REPORT DATED
SEPTEMBER 30, 2009.
4. APPROVAL OF THE SEPARATELY -ISSUED LA QUINTA REDEVELOPMENT
AGENCY ANNUAL AUDITED FINANCIAL STATEMENTS FOR THE YEAR
ENDED JUNE 30, 2009.
5. APPROVAL OF THE EXECUTION OF A GRANT OF EASEMENT/PIPELINE(S)
TO COACHELLA VALLEY WATER DISTRICT (CVWD) FOR DOMESTIC
WATER AND PRIVATE SEWER ASSOCIATED WITH THE LA QUINTA FIRE
STATION NO. 32.
6. APPROVAL OF AMENDMENT NO. 3 TO THE DISPOSITION AND
DEVELOPMENT AGREEMENT (DDA) BY AND BETWEEN THE LA QUINTA
REDEVELOPMENT AGENCY AND LRCF SR1, LLC, FORMERLY KNOWN AS
LDD SILVERROCK, LLC.
002
Redevelopment Agency Agenda 2 November 17, 2009
BUSINESS SESSION - NONE
STUDY SESSION — NONE
CHAIR AND BOARD MEMBERS' ITEMS — NONE
PUBLIC HEARINGS — NONE
ADJOURNMENT
The next regular meeting of the Redevelopment Agency will be held on December
1, 2009, 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 La Quinta Redevelopment Agency meeting of
November 17, 2009, 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 November 13, 2009.
DATED- P
SAW
VERONIC�
City of La t
Public Notice
13,
MONTECINO, City Clerk
ita, California
Any writings or documents provided to a majority of the Redevelopment Agency regarding
any item on this agenda will be made available for public inspection at the City Clerk
counter at City Hall located at 78-495 Calle Tampico, La Quinta, California, 92253, during
normal business hours.
003
Redevelopment Agency Agenda 3 November 17, 2009
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AGENDA CATEGORY:
RDA MEETING DATE: November 17, 2009 BUSINESS SESSION
ITEM TITLE: Demand Register Dated CONSENT CALENDAR
November 17, 2009
STUDY SESSION
PUBLIC HEARING
RECOMMENDATION:
It is recommended the Redevelopment Agency Board:
Receive and File the Demand Register Dated
November 17, 2009 of which $479,816.07
represents Redevelopment Agency Expenditures
PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA
~' 004
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AGENDA CATEGORY:
COUNCIL/RDA MEETING DATE: November 17, 2009 BUSINESS SESSION:
ITEM TITLE: Receive and File Transmittal of CONSENT CALENDAR: 91--
Treasurer's Report dated September 30, 2009
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDATION:
It is recommended the Redevelopment Agency Board:
Receive and file.
PLEASE SEE RELATED BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA
a'. 005
`&� 4 1wQumrw
COUNCIL/RDA MEETING DATE: November 17, 2009
ITEM TITLE: Receive and File Transmittal of Revenue
and Expenditure Report dated September 30, 2009
RECOMMENDATION:
Receive and File
BACKGROUND AND OVERVIEW:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: 3
STUDY SESSION:
PUBLIC HEARING:
Transmittal of the September 30, 2009 Statement of Revenue and Expenditures for
the La Quinta Redevelopment Agency.
Respectfully submitted,
John M. Falconer, Finance Director
Approved for submission by:
6
Thomas P. Genovese, Executive Director
Attachment: 1. Revenue and Expenditures, September 30, 2009
006
ATTACHMENT 1
LA OUINTA REDEVELOPMENT AGENCY
REVENUE SUMMARY
PROJECT AREA NO. 1:
LOWIMODERATE TAX FUND:
Tax Increment
Allocated Interest
Non Allocated Interest
Miscellaneous revenue
Non Allocated Interest
LORP-Rent Revenue
Home Sales Proceeds
Sale of Land
Sewer Subsidy Reimbursements
Rehabilitation Loan Repayments
2nd Trust Deed Repayment
Transfer In
TOTAL LOWIMOD TAX
DEBT SERVICE FUND:
Tax Increment
Allocated Interest
Non Allocated Interest
Interest - County Loan
Interest Advance Proceeds
Transfers In
TOTAL DEBT SERVICE
CAPITAL IMPROVEMENT FUND - NON-TAXABLE
Pooled Cash Allocated Interest
Non Allocated Interest
Developer Agreement Funding
Sale of Land Proceeds
Rental Income
Transfers In
TOTAL CAPITAL IMPROVEMENT
07/0112009 - 09130/2009
ADJUSTED 9/30109 REMAINING %
BUDGET RECEIVED BUDGET RECEIVED
10.833,900.00
0.00
10,833,900.00
0.000%
68,700.00
2,276.79
66,423.21
3.310%
0.00
310.16
(310.16)
0.000%
0.00
(1,090.25)
1,090.25
0.000%
0.00
0.00
0.00
0,000%
225,000.00
57,896.25
167,103.75
25.730%
150,000.00
0.00
150,000.00
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0,000%
0.00
0.00
0.00
0.000%
11,277,600.00
59,392.95
11,218,207.05
0.530%
43,335,700.00
0.00
43,335,700.00
0.000%
42,700.00
11,449.87
31,250.13
26.810%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
4,438,892.00
2,981,837.27
1,457,054.73
67.180%
47,817,292.00
2.993,287.14
44,824,004.86
6.260%
162,000.00
28,220.31
133,779.69
17.420%
32,500.00
8,914.00
23,586.00
27.430%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
10,000,000.00
0.00
10,000,000.00
0.000%
10,194,500.00
37,134.31
10,157,365.69
0.360%
a••n 007
2
LA OUINTA REDEVELOPMENT AGENCY ADJUSTED 9130/09 REMAINING
EXPENDITURE SUMMARY BUDGET EXPENDITURES ENCUMBERED BUDGET
PROJECT AREA NO. 1:
LOW/MODERATE TAX FUND:
PERSONNEL
1,100.00
0.00
0.00
1,100.00
SERVICES
352.490.00
41,852.85
0.00
310,637.15
BUILDING HORIZONS
0,00
0.00
0.00
0.D0
LO RENTAL PROGRAM
275,000.00
64,589.84
0.00
210,410.16
2nd TRUST DEED PROGRAM
0.00
0.00
0.00
0.00
BUILDING HORIZONS
250,000.00
0.00
0,00
250,000.00
LAND ACQUISITION
0.00
0.00
0,00
0,00
LOW MOD HOUSING PROJECTS
0.00
0,00
0,00
0,00
FORECLOSURE
750,000.00
0.00
0,00
750,000.00
REIMBURSEMENT TO GEN FUND
763.523.00
230.849.79
0.00
532,673.21
TRANSFERS OUT
4478,892,00
2,981,837.27
0.00
1,49705473
TOTAL LOWIMOD TAX
DEBT SERVICE FUND:
SERVICES
508,200.00
7,040.00
0.00
501,160.00
BOND PRINCIPAL
3,135,000,00
3,135,000.00
0.00
0,00
BONDINTEREST
7,144,062.00
3,620,943.13
0,00
3,523,11887
INTEREST CITY ADVANCE
1,020,000.00
255,000.00
0.00
765,000.00
PASS THROUGH PAYMENTS
24,722.621.00
456,798,46
0.00
24.265.822.54
ERAF SHIFT
0,00
0.00
0,00
0.00
TRANSFERS OUT
13967932.00
260 ,5514.97
0.00
11410327.03
TOTAL DEBT SERVICE
CAPITAL IMPROVEMENT FUND:
PERSONNEL
1,100.00
0.00
0.00
1,100.00
SERVICES
826.600.00
97,915.93
0.00
728.684.07
LAND ACQUISITION
0.00
0.00
0.00
0.00
ASSESSMENT DISTRICT
0.00
0.00
0.00
0.00
ADVERTISING -ECONOMIC DEV
10,000.00
0.00
0.00
10,000.00
ECONOMIC DEVELOPMENT
0.00
0,00
0.00
0.00
BOND ISSUANCE COSTS
0.00
0.00
0.00
0.00
CAPITAL - BUILDING
0.00
0.00
0.00
0.00
REIMBURSEMENT TO GEN FUND
356,491.00
105,817 02
0.00
250,679,98
TRANSFERS OUT
45848,094.00
120235.31
0.00
45, 72785B 69
TOTAL CAPITAL IMPROVEMENT
M. 008
3
LA QUINTA REDEVELOPMENT AGENCY
REVENUE SUMMARY
PROJECT AREA NO. 2:
LOW/MODERATE TAX FUND:
Tax Increment
Allocated Interest
Non Allocated Interest
Wash St Apts Interest Income
WSA Fed Govt Assistance Pymts
WSA Fed Govt Interest Rate Subsidy
Developer funding
Wash St Apts Rental Income
Wash St Apts Other Revenues
2nd Trust Deed Repayment
ERAF Shift - Interest
Sale of Land
Transfer In
TOTAL LOWIMOD TAX
2004 LOW/MODERATE BOND FUND:
Allocated Interest
Home Sale Proceeds
Non Allocated Interest
Transfer In
TOTAL LOW/MOD BOND
DEBT SERVICE FUND:
Tax Increment
Allocated Interest
Non Allocated Interest
Interest Advance Proceeds
Transfer In
TOTAL DEBT SERVICE
CAPITAL IMPROVEMENT FUND:
Allocated Interest
Non Allocated Interest
Misc Revenue
Sale of land
Transfers In
TOTAL CAPITAL IMPROVEMENT
07/01/2009 - 09/30/2009
ADJUSTED 9/30/09 REMAINING %
BUDGET RECEIVED BUDGET RECEIVED
5,668,000.00
0.00
5,668,000.00
0.000%
168,100.00
13,898.57
154,201.43
8.270%
0.00
0.00
0.00
0.000%
3,600.00
858.35
2,741.65
23,840%
451,400.00
110,990.00
340,410.00
24.590%
46,800.00
0.00
46,800.00
0.000%
0.00
0.00
0.00
0.000%
163,300.00
43,926.12
119,373.88
26.900%
4,200.00
2,710.20
1,489.80
64.530%
0.00
23.444,00
(23,444.00)
0.000%
0.00
0.00
0.00
0,000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
6,505,400.00
195,827.24
6,309,572.76
3.010%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
17,500.00
5,039.00
12,461.00
28.790%
0.00
0.00
0.00
0.000%
17,500.00
5,039.00
12,461.00
28.790%
22,671,800.00
0.00
22,671,800.00
0.000%
140,000.00
12,119.11
127,880.89
8,660%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
1,951,399.00
1,256,760.66
694,638.34
64.400%
24,763,199.00
1,268,879.77
23,494,319.23
5.120%
41,400.00
2,326.99
39,073.01
5.620%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
41,400.00
2,326.99
39,073.01
5.620%
Ow,. 009
2
LA OUINTA REDEVELOPMENT AGENCY
ADJUSTED
9130109
REMAINING
EXPENDITURE SUMMARY
BUDGET
EXPENDITURES
ENCUMBERED
BUDGET
PROJECT AREA NO. 2:
LOW/MODERATE TAX FUND:
PERSONNEL
700.00
0.00
0,00
700.00
SERVICES
440,800.00
53,131,30
0.00
387.668.70
WASH ST APTS OTHER EXPENSES
429,300.00
96.713.00
0.00
332,587.00
2ND TRUST DEEDS
0.00
0.00
0,00
0.00
LOW MOD HOUSING PROJECTS
3,000.00
0.00
0.00
3,000.00
FORECLOSURE ACQUISITION
250,000.00
000
0.00
250,000.D0
VISTA DUNES PARK
0.00
0.00
0.00
0.00
LAND ACQUISITION
0.00
0.00
0.00
0.00
WSA PRIN/PROVIDENT LOAN
25,325.00
6,120.58
0.00
19,204.42
WSA PRINAISDA LOAN
10,671.00
0.00
000
10,671,00
WSA INTEREST/PROVIDENT LOAN
129,149,00
32,498.03
0,00
96,650.97
WSA INTEREST/USDA LOAN
74,611.00
9,592.56
0.00
65,018,44
REIMBURSEMENT TO GEN FUND
416,382.00
124,502,94
0.00
291,879D6
TRANSFERS OUT
12,757 594.00
1 278,456.71
0.00
11,479,137.29
TOTAL LOWIMOD TAX
2004 LOW/MODERATE BOND FUND
HOUSING PROGRAMS
956,800.00
206,000.00
0.00 750,800.00
LAND
0,00
0.00
0.00 0.00
TRANSFERS OUT
737740.00
(2143702.47)
000 287544247
TOTAL LOW/MOD BOND
13'118�3b➢-0�-j1-yJ%,�TPZd7j
ODD-TST6`2 2.47
DEBT SERVICE FUND:
SERVICES
268,000.00
3.225.00
0A0
264,775,00
BOND PRINCIPAL
120,000.00
120,000.00
0.00
0.00
BOND INTEREST
299, 550.00
151,312,50
0.00
148.237,50
INTEREST CITY ADVANCE
1, 656,528,00
414, 132.00
0.00
1.242.396.00
PASS THROUGH PAYMENTS
19,253,381.00
12,871.03
0.00
19,240.509.97
TRANSFERS OUT
1,957,399.00
1,256780.66
0.00
694,638.34
TOTAL DEBT SERVICE
CAPITAL IMPROVEMENT FUND:
PERSONNEL
700.00
40.00
0,00
660.00
SERVICES
250.360.00
25,562.95
0.00
224,797.05
CAPITAL
0.00
0.00
0.00
0.00
ECONOMIC DEVELOPMENT ACTIVITY
0.00
0,00
0,00
0.00
REIMBURSEMENT TO GEN FUND
58,244.00
17,998.25
0.00
40,245.75
TRANSFERS OUT
3,303371.00
5720.10
0.00
3298250.90
TOTAL CAPITAL IMPROVEMENT
.0 010
5
T4hr44Quiarw
COUNCIL/RDA MEETING DATE: November 17, 2009
ITEM TITLE: Approval of the Separately Issued
La Quinta Redevelopment Agency Annual Audited
Financial Statements for the Year Ended June 30,
2009
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: 4
STUDY SESSION:
PUBLIC HEARING:
Approve, receive and file the Annual Audited Financial Statement for the year
ended June 30, 2009 (Attachment 1).
FISCAL IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
At the end of every fiscal year, the Redevelopment Agency prepares an audited
financial report. For the first time, this year's Redevelopment Agency audit report
contains a Management Review and Discussion (MDA). Several of the highlights
discussed in this Section include:
• The Agency's governmental activities net assets deficit increased $5.71 million,
or-9.59%.
• During the year, the Agency had expenses that were $5.66 million less than the
$50.69 million in expenses recorded by the Agency in its governmental activities
in prior years.
• The Agency's governmental activities program and general revenues decreased
by $7.37 million, or -15.79 % from the prior year.
O11
This year's major additions (deletions) to capital assets were as follows:
Washington Street Apartments Buildings and Land $ 6.18 million
Hammer Property Transfer to Coachella Valley Housing
Coalition for Wolfe Waters Apartments . $ (8.85) million
This year, $2.31 million in loans payable were assumed in regards to the purchase
of the Washington Street Apartments. In addition, all debt service payments were
made as required to bondholders.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Redevelopment Agency include:
1. Approve, receive and file the Annual Audited Financial Statement for the
year ended June 30, 2009; or
2. Do not approve, receive and file the Annual Audited Financial Statement for
the year ended June 30, 2009; or
3. Provide staff with alternative direction.
Respectfully submitted,
John M. Falconer, Finance Director
Approved for submission by:
1- ze,4,��
Thomas P. Genovese, Executive Director
Attachment: 1. Annual Audited Financial Statement for the year ended June
30, 2009
012
A l l H1 "WitIV 1 I
LA QUINTA REDEVELOPMENT AGENCY
LA QUINTA, CALIFORNIA
FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2009
013
LA QUINTA REDEVELOPMENT AGENCY
JUNE 30, 2009
TABLE OF CONTENTS
Page
Number
INDEPENDENT AUDITORS' REPORT
FinancialAudit......---....................................................................................................................1
ComplianceAudit............................................................................................................................
3
Management's Discussion and Analysis...........................................................................................
5
BASIC FINANCIAL STATEMENTS
Government -Wide Financial Statements:
Statementof Net Assets ............................... ..................................... ............. -- .......................
12
Statementof Activities...............................................................................................................13
Fund Financial Statements,
Balance Sheet - Governmental Funds ............ ......._......................................................... ........
14
Reconciliation of the Balance Sheet of Government Funds
to the Statement of Net Assets.. ............... . ........ - . ............... ...............
... 16
Statement of Revenues, Expenditures and Changes in Fund
Balances - Governmental Funds...............................................................................................18
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the
Statementof Activities ...................... -...................... ............ ..................... ...............................
20
Budgetary Comparison Statement — Low/Moderate Income Housing Fund — PA No. 1 ..........
21
Budgetary Comparison Statement — Low/Moderate Income Housing Fund — PA No. 2..........
22
Notes to Financial Statements......................................................................................................23
COMBINING AND INDIVIDUAL FUND SCHEDULES
Combining Project Area Balance Sheet -
AllGovernmental Funds...............................................................................................................38
Combining Project Area Statement of Revenues,
Expenditures and Changes in Fund Balances -
All Governmental Funds...............................................................................................................41
_ Computation of Low and Moderate Income Housing
Funds Excess/Surplus.. .............................. .................................................................................
44
014
N16000
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A 00
CFRTIFIED PUBLIC ACCOUNTANTS
• Brandon W. Burrows. C.P.A
• Donald L. Parker, C.P.A
• Michael K. Chu, C.P.A
• David E. Hale, CAA, C.F.P.
A Prolessional Corporah'on
• Donald G. Slater, C.P.A
• Richard K. Kikuchi, C.P.A
• Susan F. Matz, CPA
INDEPENDENT AUDITORS' REPORT
To the Honorable Chair and Members of the Governing Board
La Quinta Redevelopment Agency, California
We have audited the accompanying financial statements of the governmental activities and each major
fund of the La Quinta Redevelopment Agency, a component unit of the City of La Quinta, California as of
and for the year ended June 30, 2009, which collectively comprise the Agency's basic financial
statements as listed in the table of contents. These basic financial statements are the responsibility of the
La Quinta Redevelopment Agency's management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and Government Auditing Standards issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the basic financial statements are free of material misstatement. An audit includes examining, on
a test basis, evidence supporting the amounts and disclosures in the basic financial statements. An audit
also includes assessing the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation. We believe our audit provides a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities and each major fund of the La Quinta
Redevelopment Agency at June 30, 2009, and the respective changes in financial position thereof and
the respective budgetary comparisons for the Low/Moderate Income Housing Fund — PA No. 1 and the
Low/Moderate Income Housing Fund - PA No. 2 for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
In accordance with Govemment Auditing Standards issued by the Comptroller General of the United
States, we have also issued our report dated September 22, 2009, on our consideration of the La Quinta
Redevelopment Agency's internal control over financial reporting and on our tests of its compliance with
certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose
of that report is to describe the scope of our testing of internal controls over financial reporting and
compliance and the results of that testing, and not to provide and opinion on the internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards and should be considered in assessing the results or our audit.
The management's discussion and analysis is not a required part of the basic financial statements, but is
supplementary information required by the Governmental Accounting Standards Board. We have applied
certain limited procedures, which consisted principally of inquiries of management regarding the methods
of measurement and presentation of the required supplementary information. However, we did not audit
the information and express no opinion on it.
Lance, Soil & Lunghard, LLP 203 North Brea Boulevard • Suite 203 • Brea, CA 92821 • TEL: 714.672.0022 • Fax: 714.672.0331 www.1slcpas.com
41185 Golden Gate Circle • Suite 103 • Murrieta, CA 92562 • TEL: 951.304.2728 • Fax: 951.304.3940 015
0000
•oho
00
CLRTIf1CU PUBLIC RCCUUNTAM
To the Honorable Chair and Members of the Governing Board
Redevelopment Agency of the City of La Quinta, California
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Agency's basic financial statements. The combining project area statements and
computation of low and moderate income housing funds excess/surplus are presented for purposes of
additional analysis and are not a required part of the basic financial statements. Such information has
been subjected to the auditing procedures applied in the audit of the basic financial statements and, in
our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a
whole.
September 22, 2009
016
,W L
SL0000
000
s•
CERTIFIED PUBLIC ACCOUNTANTS
• Brandon W. Burrows, C.P.A
• Donald L. Parker, C.P.A
• Michael K. Cho, C.PA
• David E Halc. C.P.A, C.F.P.
A Professional Corporation
• Donald G. Slater. C.P.A
• Richard K. Kikuchi, C.P.A
• Susan F. Matz, C.PA.
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and Members of the City Council
La Quinta Redevelopment Agency, California
We have audited the financial statements of the governmental activities and each major fund of the La
Quinta Redevelopment Agency as of and for the year ended June 30, 2009, which collectively comprise
the Agency's basic financial statements and have issued our report thereon dated September 22, 2009.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the La Quinta Redevelopment Agency's internal
control over financial reporting as a basis for designing our auditing procedures for the purpose of
expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on
the effectiveness of the La Quinta Redevelopment Agency's internal control over financial reporting.
Accordingly, we do not express an opinion on the effectiveness of the La Quinta Redevelopment
Agency's internal control over financial reporting.
A control deficiency exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent or detect
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control
deficiencies, that adversely affects the La Quinta Redevelopment Agency's ability to initiate, authorize,
record, process, or report financial data reliably in accordance with generally accepted accounting
principles such that there is more than a remote likelihood that a misstatement of the La Quinta
Redevelopment Agency's financial statements that is more than inconsequential will not be prevented or
detected by the La Quintal Redevelopment Agency's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in
more than a remote likelihood that a material misstatement of the financial statements will not be
prevented or detected by the La Quinta Redevelopment Agency's internal control.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and would not necessarily identify all deficiencies in internal control that
might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal
control over financial reporting that we consider to be material weaknesses, as defined above.
Lance, Soil 3 Longhand, LLP 203 North Brea Boulevard • Suite 203 • Brea, CA 92821 • TEL: 714.672.0022 • Fax: 714.672.0331 www.lsictias.co n
41185 Golden Gate Circle • Suite 103 • Murrieta, CA 92562 • TEL: 951.304.2728 • Fax: 951.304.3940
.. ' 017
IS0a 00
0000
0•
CERTIFIED PUBLIC ACCOUNTANTS
To the Honorable Chair and Members of the Governing Board
Redevelopment Agency of the City of La Quinta, California
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the financial statements of the La Quinta
Redevelopment Agency's financial statements are free of material misstatements, we performed tests of
its compliance with certain provisions of laws, regulations, contracts and grant agreements;
noncompliance with which could have a direct and material effect on the determination of financial
statement amounts. Such provisions included those provisions of laws and regulations identified in the
Guidelines for Compliance Audits of California Redevelopment Agencies, issued by the State Controller
and as interpreted in the Suggested Auditing Procedures for Accomplishing Compliance Audits of
California Redevelopment Agencies, issued by the Governmental Accounting and Auditing Committee of
the California Society of Certified Public Accountants. However, providing an opinion on compliance with
those provisions was not an objective of our audit and, accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance.
We noted no instances of other matters that are required to be reported under Government Auditing
Standards issued by the Comptroller General of the United States.
This report is intended solely for the information and use of management, governing board, State
Controller, and federal awarding agencies and pass -through entities and is not intended to be and should
not be used by anyone other than these specified parties.
September 22, 2009
4
...' 018
LA QU►NTA REDEVELOPMENT AGENCY
MANAGEMENT'S DISCUSSION AND ANALYSIS
June 30, 2009
Our discussion and analysis of the La Quinta Redevelopment Agency's (Agency)
financial performance for the fiscal year ended June 30, 2009, provides a
comparison of current year to prior year ending results based on the government -
wide statements, an analysis on the Agency's overall financial position and
results of operations to assist users in evaluating the Agency's financial position,
and a discussion of significant changes that occurred within each fund. In
addition, it describes the activities during the year for capital assets and long-
term debt. We end our discussion and analysis with a description of currently
known facts, decisions and conditions that are expected to have a significant
effect on the financial position or results of operations. Please read it in
conjunction with the Agency's financial statements.
FINANCIAL HIGHLIGHTS
• The Agency's governmental activities net assets deficit increased $5.71
million, or -9.59 %.
• During the year, the Agency had expenses that were $5.66 million less than
the $50.69 million in expenses recorded by the Agency in its governmental
activities in the prior year. .
• The Agency's governmental activities program revenues and general
revenues decreased by $7.37 million, or -15.79 % from the prior year, and
program expenses decreased $5.66 million, or-11.16%.
USING THIS ANNUAL REPORT
This annual report consists of a series of financial statements. The Statement of
Net Assets and Statement of Activities provide information about the activities of
the Agency as a whole and present a long-term view of the Agency's finances.
Following these Statements are governmental fund statements that tell how
these services were financed in the short term as well as what remains for future
spending. Fund financial statements also report the Agency's operation in more
detail than the government -wide statements by providing information about the
Agency's most significant funds.
REPORTING THE AGENCY AS A WHOLE
The financial reports contained in this document are prepared on two basis of
accounting — accrual and the modified accrual basis of accounting as follows:
' 019
Government -Wide Financial Statements:
The Statement of Net Assets and the Statement of Activities report information
using the accrual basis of accounting, which is similar to the accounting used by
most private -sector companies. All of the current year's revenues and expenses
are taken into account regardless of when cash is received or paid.
These two statements report the Agency's net assets and changes in them. Net
assets are the difference between assets and liabilities, which is one way to
measure the Agency's financial health, or financial position. Over time, increases
or decreases in the Agency's net assets are an indication of whether its financial
health is improving or deteriorating.
In the Statement of Activities, we separate the Agency expenditures into general
government, planning and development and interest on long-term debt.
Revenues are separated into program and General revenues. The major General
revenue is property taxes, which are netted against the payments the Agency
must pay to other agencies in accordance with Tax Sharing Agreements.
Both of these Statements are summary in nature as opposed to the following
discussion of the Fund Financial Statements, which are more detailed in nature.
Fund Financial Statements:
The fund financial statements provide detailed information about the most
significant funds and other funds — not the Agency as a whole. Some funds are
required to be established by State law and by bond covenants. However,
management established many other funds to help it control and manage money
for particular purposes or to show that it is meeting legal responsibilities for using
certain taxes, grants and other resources.
The Agency only has governmental type funds.
Governmental Funds - Most of the Agency's basic services are reported in
governmental funds, which focus on how money flows in and out of those funds
and the balances left at year-end that are available for spending. These funds
are reported using the modified accrual basis of accounting; which measures
cash and all other financial assets that can readily be converted to cash. The
governmental fund statements provide a detailed short-term view of the Agency's
general government operations and the basic services it provides. Governmental
fund information helps determine whether there are more or fewer financial
resources that can be spent in the near future to finance the Agency's programs.
The differences of results in the Governmental Fund financial statements to
those in the Government -Wide financial statements are explained in a
reconciliation following each Governmental Fund financial statement.
6 020
"L24FICI4> y/sMF_1lri4,Is] 4
Our analysis below focuses on the net deficit and changes in net deficit of the
Agency's Government -Wide activities.
The Agency's net assets deficit increased $5.71 million, or -9.59 %.
Net Assets
Governmental activities
2009 2008 Change
Current and other assets $ 128,400,554 $ 136,603,448 $ (7,202,894)
Capital assets 72,438,150 74,552,293 (2,114,143)
Total assets 200,838,704 210,155,741 (9,317,037)
Current liabilities 5,229,441 5,501,718 (272,277)
Non -current liabilities 260,906,711 264,238,499 (3,331,788)
Total liabilities 266,136,152 269,740,217 (3,604,065)
Net assets:
Invested in capital assets,
net of related debt 27,318,390 27,383,962 (65,572)
Restricted 59,870,074 54,308,750 5,561,324
Unrestricted (152,485,912) (141,277,188) (11,208,724)
Total net assets $ (65,297,448) $ (59,584,476) $ (5,712,972)
The Agency's Net Assets is made up of three components: Investment in Capital
Assets, Net of Related Debt, Restricted Net Assets and Unrestricted Net Deficit.
Unrestricted deficit, the part of net deficit that can be used to finance day-to-day
operations, increased from $(141.28) million to $(152.49) million, or 7.93 %. The
Agency currently has an unrestricted net deficit because of the debt it has issued.
Proceeds from the debt were used for capital improvements on behalf of the City
or contributed to other taxing agencies or the public and is not offset by
investments in capital assets. Examples of these contributions would be the
issuing of bonds to construct flood control improvements which were donated to
the Coachella Valley Water District, bond proceeds that were used for street
improvements in the Cove that were dedicated to the City, and bond proceeds for
the construction of SilverRock that were dedicated to the Golf Enterprise Fund.
Total assets decreased by $9.32 million, which generally represents a decrease
in cash of $5.14 million and a decrease of due from other governments of $1.44
million.
Total liabilities decreased by $3.60 million, which generally represents the
payment of principal on long-term debt.
7
021
Changes in Net Assets
2009
2008
Change
Program revenues
Charges for services
16,136
16,136
Operating grants and contributions
-
-
Capital grants and contributions
-
-
General revenues
Property taxes (net of pass -through payments)
36,702,197
40,216,054
(3,513,857)
Use of money and property
2,133,507
5,118,863
(2,985,356)
Intergovernmental
327,205
492,355
(165,150)
Other
140,015
866,668
(726,653)
Total Revenues
39,319,060
46,693,940
(7,374,880)
Expenses:
General government
4,175,208
3,722,604
452,604
Planning and development
25,835,058
32,245,746
(6,410,688)
Interest on long-term debt
15,021,766
14,720,956
300,810
Total Expenses
45,032,032
50,689,306
(5,657,274)
Change in Net Assets
(5,712,972)
(3,995,366)
(1,717,606)
Net assets - 7/1/2008
(59,584,476)
(55,589,110)
(3,995,366)
Net assets-6/30/2009
(65,297,448)
(59,584,476)
(5,712,972)
Total revenues decreased from $46.69 million to $39.32 million, or -15.79 %. The
major reasons that contributed to the decrease were the following:
• Decrease in property values that provided less tax increment revenue (net of
pass -through payments of - 9.57%.
• Decrease in interest income from the use of money as a result of a lower
interest rate environment - 58.32 %.
The major factor that contributed to the decrease in expenses from $50.69 million
to $45.03 million or-11.16% was:
• Decrease in the amount of 2nd Trust deeds issued on the Watercolors Homes -
$2.55 million.
GOVERNMENTALFUNDS
The combined fund balance of $111.69 million decreased from $118.50 million,
or - 5.75%. The Agency has reserved $ 25.14 million for advances, notes, and
bond projects. More detailed information about the combined fund balance
reserves may be found in the Notes to the financial statements.
8 ». 022
Major funds balance changes are noted below:
• For the 2004 Low and Moderate Income Housing fund, fund balance decreased
$13.59 million.
• For the Redevelopment Agency Debt Service PA 1 and PA 2 funds, fund
balance increased by $397,600 and $1.33 million, respectfully based upon tax
increment revenues and interest earnings exceeding debt service, pass through
payments, and transfers.
• For the Redevelopment Agency Low and Moderate Income PA 1 and PA 2
funds, fund balance increased by $461,500 and $3.37 million, respectfully
based upon tax increment revenues and interest earnings exceeding debt
service transfers, capital outlay, and general and planning and development
expenditures.
• The Redevelopment Agency Capital Project PA 1 Fund increased by $1.81
million based upon interest earnings and transfers in exceeding capital outlay
and general costs.
-The Redevelopment Agency Capital Project PA 2 Fund decreased by $593,000
based upon interest earnings exceeding capital outlay and general costs.
More detailed information on the fund financial statements balances is presented
in the notes to the financial statements.
Budgetary Highlights
During the Fiscal Year, the Agency's Board makes revisions to the Agency
budget. Revisions are made on a case by case basis and presented to the
Agency Board by staff for their consideration at Agency Board meetings. These
revisions are generally for appropriations relating to Capital Improvement
Projects to request an additional appropriation to cover the cost of a change
order or an additional construction amount based on a bid opening. In addition, a
review of all revenue and expenditure Agency line items is conducted by staff
based upon mid -year data to determine if changes in other revenue and
expenditure line items should be presented to the Agency Board for their
consideration.
Formal budgetary integration is employed as a management control device
during the year for all Agency Funds. Budgetary data for the Agency two (2)
Special Revenue Housing Funds has been presented herein. More detailed
information about the Agency's budget is presented in the Notes to the financial
statements.
9 023
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
At the end of 2009, the Agency had $72.44 million invested in a broad range of
capital assets, including land and buildings and improvements. This amount
represents a net decrease (including additions and deductions) of $2.11 million,
or 2.84% over last year.
Capital Assets (Net Depreciation)
2009
2008
Change
Land
$ 69,286,119
$ 74,268,960
$ (4,982,841)
Buildings
3,434,270
500,000
2,934,270
Less Accumulated depreciation
(282,239)
(216,667)
(65,572)
Net Buildings after depreciation
3,152,031
283,333
2,868,698
Total -
$ 72,438,150
$ 74,552,293
$ (2,114,143)
This year's major additions (deletions) were as follows:
Washington Street Buildings and Land $ 6.18 million
Hammer Property Transfer to Coachella Valley Housing
Coalition for Wolfe Waters Apartments $ (8.85) million
Debt
At year-end, the Agency's governmental activities had $260.91 million in bonds
and notes versus $264.24 million last year, a decrease of $3.33 million, or -
1.26%.
Outstanding Debt at Year End
Debt type:
2009
2008
Change
Loans Payable
$ 2,308,037
$
$ 2,308,037
City Advances
31,378,966
31,378,966
$ -
Pass through agreement
4,274,652
5,260,620
$ (985,968)
Tax allocation bonds(net
original issue discount)
138,244,468
141,277,702
$ (3,033,234)
Revenue bonds (net
original issue premium)
84,700,588
86,321,211
$ (1,620,623)
Total
$ 260,906,711
$ 264,238,499
$ (3,331,788)
The Agency was able to meet its current year debt obligation in a timely manner.
In addition to the repayment of the long term debt bond principal, $2.31 million in
loans payable were assumed to the purchase of the Washington Street
10 ... 1 024
Apartments. Debts issued in the prior years have been used to finance various
capital projects. An example of this is the purchase of land, and construction of
the City's municipal golf course — SilverRock.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS
In preparing for Fiscal Year 2010-2011, management is looking at the following
factors that will impact its operations:
As the State of California attempts to balance their budget, it has passed Senate
Bill 26 which creates a Supplemental Educational Revenue Augmentation Fund
(SERAF) to require the County auditor to transfer property tax increment that
would otherwise be sent to the Redevelopment Agency instead be sent to the
schools to meet the State's Proposition 98 obligations. For Fiscal Year 2009-
2010 and 2011-2012, the amount of the SERAF shift is estimated to be $23.56
million and $4.85 million, respectively.
While the Redevelopment Agencies Project Areas have available land for future
development, the recent economic downturn has impacted property tax values in
two ways. Construction activity has slowed significantly and projects that had
been approved and planned have been postponed due to the inability of builders
and buyers to obtain financing. In addition, existing properties have had their
property values reassessed downward by the County Assessor.
CONTACTING THE AGENCY'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers,
and investors and creditors with a general overview of the Agency's finances and
to show the Agency's accountability for the money it receives. If you have
questions about this report or need additional financial information, contact Mr.
John Falconer in the Finance Department at the City of La Quinta, 78-495 Calle
Tampico, La Quinta, California 92253-1504, or (760) 777-7150,
'11
025
LA QUINTA REDEVELOPMENT AGENCY
STATEMENT OF NET ASSETS
JUNE 30, 2009
Governmental Activities
Assets:
Cash and investments
$
86,650,758
Receivables:
Tax increment
$ 877,257
Accounts
74,388
Interest
102,858
Loans
13,239,548
Total Receivables
14,294,051
Due from other governments
4,321,119
Deposits with others
4,540
Deferred charges
4,382,051
Prepaid items
19,197
Restricted assets:
Cash and investments with trustees
18,728,838
Capital assets (Net of Depreciation):
Buildings, net
3,152,031
Land -
69,286,119
Total Capital Assets
72,438,150
Total Assets
200,838,704
Liabilities:
Accounts payable and accrued expenses
4,207,600
Due to other governments
951,624
Deposits from others
70,217
Long-term liabilities:
Due within one year
5,962,596
Due in more than one year
254,944,115
Total Long -Term Liabilities
260,906,711
Total Liabilities
266,136,152
Net Assets
Invested in capital assets, net of related debt 27,318,390
Restricted for:
Community development 26,135,714
Debt service 33,734,360
Unrestricted (152,485,912)
Total Net Assets $ (65,297,448)
See Notes to Financial Statements 12
ww:R 026
LA QUINTA REDEVELOPMENT AGENCY
STATEMENT OF ACTIVITIES
FOR THE FISCALYEAR ENDED JUNE 30, 2009
Functions/Programs
Governmental Activities:
General government
Planning and development
Interest on long-term debt
Total Governmental Activities
General Revenues:
Taxes (ne( of pass -through payments)
Intergovernmental
Use of money and property
Other
Total General Revenues
Change in Net Assets
Net Assets at Beginning of Year
Net Assets at End of Year
See Notes to Financial Statements
Program Revenues
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Net(Expense)
Revenues and
Changes in
Net Assets
Governmental
Activities
$ 4,175,208 $ - $ - $ - $ (4,175,208)
25,835,058 16,136 - - (25,818,922)
15,021,766 - - - (15,021,766)
$ 45,032,032 $ 16,136 $ $ (45,015,896)
13
36,702,197
327,205
2,133,507
140,015
39,302,924
(5,712,972)
(59,584,476)
$ (65,297,448)
»,.� 027
LA QUINTA REDEVELOPMENT AGENCY
BALANCE SHEET
GOVERNMENTALFUNDS
JUNE 30, 2009
Special
Special
Capital
Capital
Revenue
Revenue
Projects
Projects
Combined
Redevelopment
Redevelopment
Low and Moderate
Redevelopment
Agency - PA No. 1
Agency PA No. 2
Housing
Agency - PA No. 1
Low and
Low and
2004
Moderate
Moderate
Low/Mod
Housing
Housing
Bond
Project
Assets:
Cash and investments
$ 4,128,834
$ 17,636,140
$ -
$ 29,816,233
Cash and investments with trustee
-
-
6,999,121
11,729,717
Receivables:
Tax increment
76,709
101,742
-
-
Accounts
10,685
42,703
-
-
Interest
3,760
22,805
-
34,557
Loans
3,795,746
9,443,802
-
-
Due from Low and Moderate
Housing Funds
-
2,143,702
-
-
Advances to the City of La Quinta
-
-
-
3,385,401
Deposits with others
-
4,540
-
-
Prepaid items
-
19,197
-
-
Total Assets
$ 8,015,734
$ 29,414,631
$ 6,999,121
$ 44,965,908
Liabilities and Fund Balances
Liabilities:
Accounts payable $ 25,838 $ 53,911 $ - $ 36,625
Deposits from others 12,785 29,597 - -
Due to Low and Moderate
Housing Funds - - 2,143,702
Due to other governments - - - -
Deferred revenue 1,728,718 9,443,802 - -
Total Liabilities 1,767,341 9,527,310 2,143,702 36,625
Fund Balances
Reserved:
Advances to the City of La Quinta
-
-
-
3,385,401
Prepaid items
-
19,197
-
-
Notes receivable -
2,067,028
-
-
-
Bond projects
-
-
6,999,121
11,729,717
Deposits
-
4,540
-
-
Unreserved:
Designated:
Debt service
-
-
-
-
Continuing projects
4,181,365
19,863,584
-
29,814,165
Undesignated
-
-
(2,143,702)
-
Total Fund Balances
6,248,393
19,887,321
4,855,419
44,929,283
Total Liabilities and
Fund Balances
$ 8,015,734
$ 29,414,631 $
6,999,121 $
44,965,908
See Notes to Financial Statements 14
"' 028
LA QUINTA REDEVELOPMENT AGENCY
r;
BALANCE SHEET
GOVERNMENTALFUNDS
JUNE 30, 2009
•
Capital
Debt
Debt
-
Projects
Service
Service
Redevelopment
Redevelopment
Redevelopment
Agency PA No. 2
Agency - PA No. 1
Agency PA No. 2
Total
Tax
Tax
Governmental
Project
Increment
Increment
Funds
Assets:
Cash and investments
$1,122,857
$ 17,755,276
$ 16,191,418
$ 86,650,758
Cash and investments with trustee
-
-
-
18,728,838
Receivables:
Tax increment
-
306,837
391,969
877,257
Accounts
21,000
-
-
74,388
. Interest
1,252
19,587
20,897
102,858
Loans
-
-
-
13,239,548
Due from Low and Moderate
Housing Funds
-
-
-
2,143,702
Advances to the City of La Quinta
935,718
-
-
4,321,119
Deposits with others
-
-
-
4,540
• Prepaid items
-
-
-
19,197
Total Assets
$ 2,080,827
$ 18,081,700
$ 16,604,284
$ 126,162,205
• Liabilities and Fund Balances:
Liabilities:
Accounts payable
$ 19,628
$ -
$ -
$ 136,002
Deposits from others
27,835
-
-
70,217
Due to Low and Moderate
. Housing Funds
-
-
-
2,143,702
Due to other governments
-
599,558
352,066
951,624
Deferred revenue
-
-
-
11,172,520
= Total Liabilities
47,463
599,558
352,066
14,474,065
Fund Balances: -
Reserved:
' Advances to the City of La Quinta
935,718
-
-
4,321,119
Prepaid items
-
-
-
19,197
Notes receivable
-
-
-
2,067,028
Bond projects
-
-
-
18,728,838
Deposits
-
-
-
4,540
Unreserved:
Designated:
Debt service
-
17,482,142
16,252,218
33,734,360
Continuing projects
1,097,646
-
-
54,956,760
Undesignated
-
-
-
(2,143,702)
Total Fund Balances
2,033,364
17,482,142
16,252,218
111,688,140
• Total Liabilities and
Fund Balances
$ 2,080,827
$ 18,081,700
$ 16,604,284
$ 126,162,205
See Notes to Financial Statements 15
»» 029
LA QUINTA REDEVELOPMENT AGENCY
GOVERNMENTALFUNDS
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET ASSETS
JUNE 30, 2009
Fund balances of governmental funds
Amounts reported for governmental activities in the statement of net assets are
different because:
Capital assets used in governmental activities are not financial resources
and, therefore, are not reported in the funds.
Deferred revenue is present in governmental fund financial statements to
indicate that receivables are not available currently; however, in the Statement of
Net Assets these deferrals are eliminated.
Bond issuance costs is an expenditure in the governmental funds, but it is
deferred charges in the statement of net assets:
Unamortized debt issuance costs - amortized over life of new bonds
Long-term liabilities, including bonds payable, are not due and payable in the
current period and, therefore, are not reported in the funds
Bonds payable
Loans from City
Other debt
Unamortized net original issue discounts and (premiums)
Accrued interest payable for the current portion of interest due on Tax Allocation
Bonds has not been reported in the governmental funds.
Net assets of governmental activities
111,688,140
72,438,150
11,172,520
4,382,051
(226,058,037)
(31,378,966)
(4,274,652)
804,944
(4,071,598)
$ (65,297,448)
See Notes to Financial Statements 16
go,.. 030
THIS PAGE INTENTIONALLY LEFT BLANK
031
LA QUINTA REDEVELOPMENT AGENCY
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2009
Revenues:
Taxes and assessments
Use of money and property
Intergovernmental
Other revenue
Total Revenues
Expenditures:
Current:
General government
Planning and development
Capital outlay
Debt service
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Long-term debt issued
Pass -through agreement payments
Total Other Financing
Sources (Uses):
Excess (Deficiency) of Revenues and
Other Sources Over (Under)
Expenditures and Other Uses
Fund Balances:
Beginning of Year
End of Year
Special
Special
Capital
Capital
Revenue
Revenue
Projects
Projects
Combined
Redevelopment
Redevelopment
Low and Moderate
Redevelopment
Agency - PA No. 1
Agency PA No. 2
Housing
Agency - PA No. f
Low and
Low and
2004
Moderate
Moderate
Low/Mod
Housing
Housing
Bond
Project
$ 10,129,845 $ 5,695,928 $ - $
227,847 406,256 165,610 684,429
- 327,205 - -
91,632 64,496 - -
10,449,324 6,493,885 165,610 684,429
1,188,917 867,281 - 1,007,276
6,379,451 204,853 2,096,000 -
- 246,167 11,658,462 2,872,058
- 155,994 - -
7,568,368 1,474,295 13,754,462 3,879,334
2,880,956 5,019,590 (13,588,852) (3,194,905)
(4,752,176)
2,332,752
307,666
(1,953,599)
(2,419,424) (1,645,943)
461,532 3,373,647
5,000,000
5,000,000
(13,588,852) 1,805,095
5,786,861 16,513,674 18,444,271 43,124,188
$ 6,248,393 $ 19,887,321 $ 4,855,419 $ 44,929,283
See Notes to Financial Statements 18 46.. � 032
LA OUINTA REDEVELOPMENT AGENCY
0
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2009
Capital Debt Debt
Projects Service Service
Redevelopment
Redevelopment
Redevelopment
Agency PA No. 2
Agency - PA No. 1
Agency PA No. 2
Total
Tax
Tax
Governmental
Project
Increment
Increment
Funds
Revenues:
Taxes and assessments
$ -
$ 40,519,380
$ 22,783,714
$ 79,128,867
Use of money and property
37,256
220,855
269,131
2,011,384
Intergovernmental
-
-
-
327,205
Other revenue
23
-
-
156,151
Total Revenues
37,279
40,740,235
23,052,845
81,623,607
Expenditures:
Current:
General government
300,643
484,171
261,348
4,109,636
Planning and development
-
-
-
8,680,304
Capital outlay
329,496
-
-
15,106,183
Debt service
-
16,062,554
4,230,311
20,448,859
Total Expenditures
630,139
16,546,725
4,491,659
48,344,982
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(592,860)
24,193,510
18,561,186
33,278,625
Other Financing Sources (Uses):
Transfers in
-
4,444,520
1,953,599
11,705,775
Transfers out
-
(5,000,000)
-
(11,705,775)
Long-term debt issued
-
-
-
2,332,752
Pass -through agreement payments
-
(23,240,384)
(19,186,286)
(42,426,670)
Total Other Financing
Sources (Uses):
-
(23,795,864)
(17,232,687)
(40,093,918)
Excess (Deficiency) of Revenues and
Other Sources Over (Under)
Expenditures and Other Uses
(592,860)
397,646
1,328,499
(6,815,293)
Fund Balances:
Beginning of Year
2,626,224
17,084,496
14,923,719
118,503,433
End of Year
$ 2,033,364
$ 17,482,142
$ 16,252,218
$ 111,688,140
See Notes to Financial Statements 19
033
LA QUINTA REDEVELOPMENT AGENCY
GOVERNMENTAL FUNDS
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2009
Net change in fund balances - total governmental funds $ (6,815,293)
Amounts reported for governmental activities in the statement of activities differ
Repayment of bond principal is an expenditure in the governmental funds, but
the repayment reduces long-term liabilities in the statement of net assets. 5,700,683
Bond issuance costs is an expenditure in the governmental funds, but it is
deferred charges in the statement of net assets:
Amortization for current fiscal year (185,679)
Unamortized premium or discounts on bonds issued are revenue or expenditures
in the governmental funds, but these are spread to future periods over the life of
the new bonds:
Amortization for current fiscal year (36,143)
Governmental funds report capital outlay as expenditures. However, in the
statement of activities the cost of those assets in capitalized and allocated
over their estimated useful lives through depreciation expense:
Capital outlay expenditures removed 6,796,429
Disposal of capital asset (8,945,000)
Depreciation (65,572)
Proceeds of debt is revenue in the governmental funds, but these are additions
to the statement of net assets. (2,332,752)
Revenues reported in the governmental funds which were previously
deferred and meet the revenue recognition criteria currently and, therefore,
Are not reported as revenues in the Statement of Activity. 122,123
Expenses reported in the statement of activities do not require the use of
current financial resources and, therefore, are not reported as expenditures
in governmental funds:
Current accrual of interest due on bonds (4,071,598)
Prior year accrual of interest due on bonds 4,019,830
Change in net assets of governmental activities $ (5,712,972)
See Notes to Financial Statements
R
n
034
CITY OF LA QUINTA
BUDGETARY COMPARISON STATEMENT
LOWIMODERATE INCOME HOUSING PA NO. 1
YEAR ENDED JUNE 30, 2009
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$
5,786,861
$ 5,786,861
$
5,786,861
$ -
Resources (Inflows):
Taxes and Assessments:
Tax increment
11,501,200
11,169,000
10,129,845
(1,039,155)
Use of Money and Property:
Interest income
53,000
25,000
(12,744)
(37,744)
Rental income
225,000
225,000
240,591
15,591
Other revenue:
Miscellaneous revenues
-
650
603
(47)
Loan repayments
-
100,000
91,029
(8,971)
Transfers from other funds
-
-
-
-
Proceeds from sale of capital asset
150,000
150,000
-
(150,000)
Long-term debt issued
-
2,453,458
2,332,752
(120,706)
Amounts Available for Appropriation
$
17,716,061
$ 19,909,969
$
18,568,937
$ (1,341,032)
Charges to Appropriation (Outflow):
Current:
General Government:
Administrative costs
$
807,221
$ 807,221
$
827,793
$ (20,572)
Professional services
483,910
513,019
361,124
151,895
Planning and development:
Real estate acquisitions
-
6,517,255
6,188,260
328,995
Acquisition cost
150,000
450,000
191,191
258,809
Subsidy to low and moderate
housing
250,000
-
-
-
Transfer toother funds
4,444,479
4,752,135
4,752,176
(41)
Total Charges to Appropriations
6,135,610
13,039,630
12,320,544
719,086
Budgetary Fund Balance, June 30
$
11,580,451
$ 6,870,339
$
6,248,393
$ (621,946)
See Notes to Financial Statements 21
035
CITY OF LA QUINTA
BUDGETARY COMPARISON STATEMENT
LOW/MODERATE INCOME HOUSING PA NO. 2
YEAR ENDED JUNE 30, 2009
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$
16,513,674
$16,513,674
$ 16,513,674
$ -
Resources (inflows):
Taxes and Assessments:
Tax increment
5,872,700
5,843,250
5,695,928
(147,322)
Use of Money and Property:
Interest income
380,500
322,887
287,443
(35,444)
Rental income
-
108,893
118,813
9,920
Intergovernmental:
Federal grants
-
335,392
327,205
(8,187)
Other revenue:
Miscellaneous revenues
-
2,817
7,902
5,085
Loan repayments
-
45,000
40,458
(4,542)
Developer participation
-
-
16,136
16,136
Transfers from other funds
-
307,656
307,656
-
Amounts Available for Appropriation
$
22,766,874
$23,479,569
$ 23,315,215
$ (164,354)
Charges to Appropriation (Outflow):
Current:
General Government:
Administrative costs
$
423,554
$ 423,554
$ 428,216
$ (4,662)
Professional services
355,290
609,426
439,065
170,361
Planning and development:
Acquisition cost
100,000
100,000
-
100,000
Subsidy to low and moderate
housing
-
286,200
204,853
81,347
Capital Outlay:
Project improvement costs
-
-
246,167
(246,167)
Debt Service:
-
Interest expense
-
137,544
131,279
6,265
Long-term debt repayments
-
22,294
24,715
(2,421)
Transfer to other funds
1,983,598
4,780,742
1,953,599
2,827,143
Total Charges to Appropriations
2,862,442
6,359,760
3,427,894
2,931,866
Budgetary Fund Balance, June 30
$
19,904,432
$17,119,809
$ 19,887,321
$ 2,767,512
See Notes to Financial Statements 22 ,N 036
LA QUINTA REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
Note 1: Organization and Summary of Significant Accounting Policies
a. Organization and Tax Increment Financing
The La Quinta Redevelopment Agency is a component unit of a reporting entity that
consists of the following primary and component units:
Reporting Entity:
Primary Government:
City of La Quinta
Component Units:
La Quinta Redevelopment Agency
City of La Quinta Public Financing Authority
Redevelopment Goals and Objectives
The general objective of the Redevelopment Plan adopted by the Agency is to encourage
investment in the Redevelopment Project Areas by the private sector. The
Redevelopment Plan provides for the demolition of buildings and improvements, the
relocation of any displaced occupants, and the construction of streets, parking facilities,
utilities and other public improvements. The. Redevelopment Plan also includes the
ability to redevelop land by private enterprise or public agencies, the rehabilitation of
structures, the rehabilitation or construction of single family and low and moderate
income housing, and participation by owners and tenants of properties in the
Redevelopment Project.
Redevelopment Project Areas
The Agency has established two redevelopment project areas. On November 29, 1983,
the City Council approved, and adopted the Redevelopment Plan for the La Quinta
Redevelopment Project Area No. 1. On May 16, 1989, the City Council approved and
adopted the Redevelopment Plan for the La Quinta Redevelopment Project Area No. 2.
These plans provide for the elimination of blight and deterioration that was found to exist
in the project areas.
Tax Increment Financing
The Law provides a means for financing redevelopment projects based upon an
allocation of taxes collected within a redevelopment project. The assessed valuation of a
redevelopment project last equalized prior to adoption of a redevelopment plan or
amendment to such redevelopment plan, or "base roll", is established and, except for any
period during which the assessed valuation drops below the base year level, the taxing
bodies, thereafter, receive the taxes produced by the levy of the current tax rate upon the
base roll. Taxes collected upon any increase in assessed valuation over the base roll
("tax increment') are paid and may be pledged by a redevelopment agency to the
repayment of any indebtedness incurred in financing or refinancing a redevelopment
project. Redevelopment agencies themselves have no authority to levy property taxes.
23 037
i5
La Quinta Redevelopment Agency
Notes to Financial Statements (Continued)
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
b. Basis of Accounting and Measurement Focus
The basic financial statements of the Agency are composed of the following:
• Government -wide financial statements
• Fund financial statements
• Notes to the basic financial statements
Government -wide Financial Statements
Government -wide financial statements display information about the reporting
government as a whole, except for its fiduciary activities. These statements include
separate columns for the governmental and business -type activities of the primary
government (including its blended component units), as well as its discreetly presented
component units. The La Quinta Redevelopment Agency has no business -type activities
or discretely presented component units. For the most part, effect of interfund activity
has been removed from these statements. Eliminations have been made in the
Statement of Activities so that certain allocated expenses are recorded only once (by the
function to which they were allocated). However, general government expenses have
not been allocated as indirect expenses to the various functions of the Agency.
The accompanying government -wide financial statements for the Agency present
negative net assets because the primary activity of the Agency is to issue debt to
construct infrastructure that will be owned and maintained by the City.
Government -wide financial statements are presented using the economic resources
measurement focus and the accrual basis of accounting. Under the economic resources
measurement focus, all (both current and long-term) economic resources and obligations
of the reporting government are reported in the government -wide financial statements.
Basis of accounting refers to when revenues and expenditures are recognized in the
accounts and reported in the financial statements. Under the accrual basis of
accounting, revenues, expenses, gains, losses, assets, and liabilities resulting from
exchange and exchange -like transactions are recognized when the exchange takes
place. Revenues, expenses, gains, losses, assets, and liabilities resulting from non -
exchange transaction are recognized in accordance with the requirements of GASB
Statement No. 33.
Program revenues include charges for services and payments made by parties outside of
the reporting government's citizenry if that money is restricted to a particular program.
Program revenues are netted with program expenses in the statement of activities to
present the net cost of each program. Amounts paid to acquire capital assets are
capitalized as assets in the government -wide financial statements, rather than reported
as expenditure. Proceeds of long-term debt are recorded as a liability in the
government -wide financial statements, rather than as other financing source. Amounts
paid to reduce long-term indebtedness of the reporting government are reported as a
reduction of the related liability, rather than as an expenditure.
Fund Financial Statements
The underlying accounting system of the Agency is organized and operated on the basis
of separate funds, each of which is considered to be a separate accounting entity. The
operations of each fund are accounted for with a separate set of self -balancing accounts
24 •».: 038
La Quinta Redevelopment Agency
Notes to Financial Statements (Continued)
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses,
as appropriate. Governmental resources are allocated to and accounted for in individual
funds based upon the purposes for which they are to be spent and the means by which
spending activities are controlled.
Fund financial statements for the primary government's governmental, proprietary, and
fiduciary funds are presented after the government -wide financial statements. These
statements display information about major funds individually and non -major funds in the
aggregate for governmental and enterprise funds. Fiduciary statements include financial
information for fiduciary funds and similar component units. Fiduciary funds primarily
represent assets held by the Agency in a custodial capacity for other individuals or
organizations. The Agency has no non -major funds, enterprise funds, or fiduciary funds.
Governmental Funds
In the fund financial statements, governmental funds and agency funds are presented
using the modified -accrual basis of accounting. Their revenues are recognized when
they become measurable and available as net current assets. Measurable means that
the amounts can be estimated, or otherwise determined. Available means that the
amounts were collected during the reporting period or soon enough thereafter to be
available to finance the expenditures accrued for the reporting period. The Agency uses
a sixty day availability period.
Revenue recognition is subject to the measurable and availability criteria for the
governmental funds in the fund financial statements. Exchange transactions are
recognized as revenues in the period in which they are earned (i.e., the related goods or
services are provided). Locally imposed derived tax revenues are recognized as
revenues in the period in which the underlying exchange transaction upon which they are
based takes place. Imposed non -exchange transactions are recognized as revenues in
the period for which they were imposed. If the period of use is not specified, they are
recognized as revenues when an enforceable legal claim to the revenues arises or when
they are received, whichever occurs first. Government -mandated and voluntary
non -exchange transactions are recognized as revenues when all applicable eligibility
requirements have been met.
In the fund financial statements, governmental funds are presented using the current
financial resources measurement focus. This means that only current assets and current
liabilities are generally included on their balance sheets. The reported fund balance
(net current assets) is considered to be a measure of "available spendable resources."
Governmental fund operating statements present increases (revenues and other
financing sources) and decreases (expenditures and other financing uses) in net current
assets. Accordingly, they are said to present a summary of sources and uses of
"available spendable resources" during a period.
Non -current portions of long-term receivables due to governmental funds are reported on
their balance sheets in spite of their spending measurement focus. Special reporting
treatments are used to indicate, however, that they should not be considered "available
spendable resources; since they do not represent net current assets. Recognition of
governmental fund type revenues represented by noncurrent receivables are deferred
until they become current receivables. Noncurrent portions of other long-term receivables
are offset by fund balance reserve accounts.
25 1, 039
La Quinta Redevelopment Agency
Notes to Financial Statements (Continued)
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
Because of their spending measurement focus, expenditure recognition for governmental
fund types excludes amounts represented by noncurrent liabilities. Since they do not
affect net current assets, such long-term amounts are not recognized as governmental
fund type expenditures or fund liabilities.
Amounts expended to acquire capital assets are recorded as expenditures in the year
that resources were expended, rather than as fund assets. The proceeds of long-term
debt are recorded as an other financing source rather than as a fund liability. Amounts
paid to reduce long-term indebtedness are reported as fund expenditures.
When both restricted and unrestricted resources are combined in a fund, expenses are
considered to be paid first from restricted resources, and then from unrestricted
resources.
c. Major Funds
The following funds are presented as major funds in the accompanying basic financial
statements:
Special Revenue Low and Moderate Income Housing P.A. No 1 and No. 2 Funds — To
account for the required 20% set aside of property tax increments that is legally restricted
for increasing or improving housing for low and moderate income households.
Debt Service Funds P.A. No. 1 and No. 2 — To account for the accumulation of
resources for the payment of debt service for bond principal, interest and trustee fees.
Capital Proiects Funds P.A. No 1 and No. 2 — To account for the bond proceeds,
interest and other funding that will be used for development, planning, construction and
land acquisition.
2004 Low and Moderate Income Housing Fund — To account for the bond proceeds,
interest and other funding that will be used for development, planning, construction, and
land acquisition for low and moderate income housing projects.
d. Cash and Investments
For financial reporting purposes, investments are reported at their fair market value
Changes in fair value that occur during a fiscal year are recognized as investment
income reported for that fiscal year. Investment income includes interest earnings,
changes in fair value, and any gains or losses realized upon the liquidation or sale of
investments.
e. Capital Assets
Capital assets (including infrastructure) are recorded at cost where historical records are
available and at an estimated historical cost where no historical records exist.
Contributed fixed assets are valued at their estimated fair market value at the date of the
contribution. Generally, fixed asset purchases in excess of $5,000 are capitalized if they
have an expected useful life of three years or more. Buildings are depreciated over a
useful life of thirty years.
Capital assets include public domain (infrastructure) general fixed assets consisting of
certain improvements including roads, streets, sidewalks, medians, and storm drains.
26
'M- 040
La Quinta Redevelopment Agency
Notes to Financial Statements (Continued)
Note 2: Stewardship, Compliance and Accountability
a. Budgetary Data
Budgets and Budgetary Accounting
The Governing Board adopts an annual budget prepared on the modified accrual basis of
accounting for its governmental funds. The City Manager or his designee is authorized to
transfer budgeted amounts between the accounts of any department. Revisions that
alter the total appropriations of any department or fund are approved by the Governing
Board. Prior year appropriations lapse unless they are approved for carryover into the
following fiscal year. Expenditures may not legally exceed appropriations at the
department level.
b. Encumbrances
Encumbrances are estimations of costs related to unperformed contracts for goods and
services. These commitments are recorded for budgetary control purposes in the
General, Special Revenue and similar governmental funds. Encumbrances outstanding
at year-end are reported as a reservation of fund balance. They represent the estimated
amount of the expenditure ultimately to result if unperformed contracts in -process at
year-end is completed. They do not constitute expenditures or estimated liabilities. As of
June 30, 2009, the Agency had no encumbrances.
c. Budget Basis of Accounting
Budgets for governmental funds are adopted on a basis consistent with generally
accepted accounting principles (GAAP).
Note 3: Cash and Investments
Cash and investments reported in the accompanying financial statements consisted of the
following:
Cash and investments pooled with the City $ 86,650,758
Cash and investments with trustees 18,728,838
$ 105,379,596
The Agency's funds are pooled with the City of La Quinta's cash and investments in order to
generate optimum interest income. The information required by GASB Statement No. 40
related to investments, credit risk, etc., is available in the annual report of the City.
27
.N..' 041
La Quinta Redevelopment Agency
Notes to Financial Statements (Continued)
Note 4: Notes Receivable
Outstanding
Balance at
June 30, 2009
In September 1994, the Agency sold certain real property
to LINC Housing for $2,112,847. The property was used
to construct single-family homes and rental units to
increase the City's supply of low and moderate income
housing. The note bears interest at 6% per annum and is
due in full on June 15, 2029. $ 3,764,107
In December 2000, the Agency entered into an
agreement with LINC Housing to receive $9,500,000 as a
reimbursement for Agency costs incurred for the
construction of infrastructure related to the development
of senior apartments. Payments are due to the Agency in
the amount of annual positive cash flow generated by the
rental of the units. All unpaid principal and interest on the
note are due fifty-five years after the completion of the
project. Interest on the note accrues at 3% per annum. 9,443,802
Other notes receivable 31,639
Total notes receivable $ 13,239,548
Note 5: Due from Other Governments
The Redevelopment Agency advanced funds to the City of La Quinta to help the City meet
the cost of developing the public -owned improvements to the La Quinta Community Park and
La Quinta Library and the North Fire Station. There is no stipulated repayment date
established for the Agency advances. Interest accrues at the earning rate of the City's
Investment Pool funds, and shall be adjusted quarterly. At June 30, 2009, outstanding Project
Area No. 1 advances were $3,385,401 and Project Area No. 2 advances were $935,718.
Note 6: Capital Assets
Capital asset activity for the year ended June 30, 2009, was as follows:
Balances at Balances at
July 1, 2008 Additions Deletions June 30, 2009
Buildings $ 500,000 $ 2,934,270 $ $ 3,434,270
Total cost of depreciable assets 500,000 2,934,270 3,434,270
Less accumulated depreciation
Buildings (216,667) (65,572) (282,239)
Net depreciable assets 283,333 2,868,698 - 3,152,031
Capital assets not depreciated:
Land 74,268,960 3,862,159 8,845,000 69,286,119
Capital assets, net $ 74,552,293 $ 6,730,857 $8,845,000 $ 72,438,150
28 », 042
La Quinta Redevelopment Agency
Notes to Financial Statements (Continued)
Note 6: Capital Assets (Continued)
Depreciation expense was charged to functions/programs of the primary government as
follows:
Governmental Activities:
General government - $ 65,572
Note 7: Property Taxes
Under California law, property taxes are assessed and collected by the counties up to 1 % of
assessed value, plus other increases approved by the voters. The property taxes are
recorded initially in a pool, and are then allocated to the cities based on complex formulas.
Accordingly, the City of La Quinta accrues only those taxes that are received from the County
within sixty days after year-end.
Lien date
January 1
Levy date
July 1
Due dates
November 1 and February 1
Collection dates
December 10 and April 10
The La Quinta Redevelopment Agency's primary source of revenue comes from property
taxes. Property taxes allocated to the Agency are computed in the following manner:
a. The assessed valuation of all property within the project area is determined on the
date of adoption of the Redevelopment Plan.
b. Property taxes related to the incremental increase in assessed values after the
adoption of the Redevelopment Plan are allocated to the Agency; all taxes on the
"frozen" assessed valuation of the property are allocated to the City and other
districts.
The Agency has no power to levy and collect taxes and any legislative property tax shift
might reduce the amount of tax revenues that would otherwise be available to pay the
principal of, and interest on, debt. Broadened property tax exemptions could have a similar
effect. Conversely, any increase in the tax rate or assessed valuation, or any reduction or
elimination of present exemptions would increase the amount of tax revenues that would be
available to pay principal and interest on debt.
Note 8: Long -Term Liabilities
Tax Allocation Refunding Bonds, Series 1994
Tax allocation refunding bonds, Series 1994, in the amount of $26,665,000 were issued by
the Agency to refund the outstanding aggregate principal amount of the Agency's Tax
Allocation Bonds, Series 1989 and 1990. The remaining proceeds were used to finance
certain capital improvements within the La Quinta Redevelopment Project Area No. 1.
Interest rates on the bonds range from 3.80% to 8% and are payable semi-annually on
March 1 and September 1 of each year until maturity. The interest and principal of the bonds
are payable solely from pledged tax increment revenues. The bonds are not subject to
redemption prior to maturity. There are certain limitations regarding the issuance of parity
debt as further described in the official statement. A portion of the proceeds was used to
obtain a surety agreement to satisfy the bond reserve requirement. The principal balance of
outstanding bonds at June 30, 2009, is $8,920,000.
29
»• 043
La Quinta Redevelopment Agency
Notes to Financial Statements (Continued)
Note 8: Long -Term Liabilities (Continued)
Tax Allocation Refunding Bonds, Series 1998 - Project Area No. 1
Tax allocation refunding bonds, Series 1998, in the amount of $15,760,000 were issued by
the Agency to refund the outstanding aggregate principal amount of the Agency's Tax
Allocation Bonds, Series 1991. The remaining proceeds were used to finance certain capital
improvements within the La Quinta Redevelopment Project Area No. 1.
Interest rates on the bonds range from 5.20% to 5.25% and are payable semi-annually on
March 1 and September 1 of each year until maturity. The interest and principal of the bonds
are payable from pledged tax increment revenues. There are certain limitations regarding
the issuance of parity debt as further described in the official statement.
Term Bonds maturing September 1, 2028, are subject to mandatory sinking fund redemption,
in part by lot, on September 1, 2013, and on each September 1 thereafter, through
September 1, 2028, at a price equal to the principal amount thereof plus accrued interest. A
portion of the proceeds was used to obtain a surety agreement to satisfy the bond reserve
requirement. The principal balance of outstanding bonds at June 30, 2009, is $15,760.000.
Tax Allocation Refunding Bonds, Series 1998 - Project Area No. 2
Tax allocation refunding bonds, Series 1998, in the amount of $6,750,000 were issued by the
Agency to refund the outstanding aggregate principal amount of the Agency's Tax Allocation
Bonds, Series 1992. The remaining proceeds were used to finance certain capital
improvements within the La Quinta Redevelopment Project Area No. 2.
Interest rates on the bonds range from 3.75% to 5.25% and are payable semi-annually on
March 1 and September 1 of each year until maturity. The interest and principal of the bonds
are payable solely from pledged tax increment revenues of Project Area No. 2.
Term Bonds maturing September 1, 2028 and September 1, 2033, are subject to mandatory
sinking fund redemption, in part by lot, on September 1, 2009 and September 1, 2019,
respectively, and on each September 1, thereafter at a price equal to the principal amount
thereof plus accrued interest. There are certain limitations regarding the issuance of parity
debt as further described in the official statement. A portion of the proceeds was used to
obtain a surety agreement to satisfy the bond reserve requirement. The principal balance of
outstanding bonds at June 30, 2009, is $5,800,000.
Tax Allocation Bonds, Series 2001 — Project Area No. 1
On August 15, 2001, the Agency issued tax allocation bonds in the amount of $48,000,000 to
finance capital projects benefiting the La Quinta Redevelopment Project Area No. 1. The
2001 tax, allocation bonds were issued at a discount of $422,400 and issuance costs of
$1,517,325.,
The bonds consist of $17,280,000 of term bonds that accrue interest at 5.00% and mature on
September 1, 2021, and $30,720,000 of term bonds that accrue interest at 5.18% and mature
on September 1, 2031. The interest and principal on the bonds are payable from pledged tax
increment revenues.
A portion of the proceeds were used to obtain a surety agreement to satisfy the bond reserve
requirement. The principal balance of outstanding bonds at June 30, 2009, is $48,000,000.
30»... 044
La Quinta Redevelopment Agency
Notes to Financial Statements (Continued)
Note 8: Long -Tenn Liabilities (Continued)
Tax Allocation Bonds, Series 2002 — Project Area No. 1
On June 12, 2002, the Agency issued tax allocation bonds in the amount of $40,000,000 to
finance capital projects benefiting the La Quinta Redevelopment Project Area No. 1. The
2002 tax allocation bonds were issued at a discount of $360,000 and issuance costs of
$1,250,096.
The bonds consist of $6,355,000 of serial bonds and $33,645,000 of term bonds. Interest
rates on serial bonds range from 1.75% and 4.00% and are payable semi-annually on
March 1 and September 1 of each year until maturity. Term bonds accrue interest at 5.00%
and 5.125% and mature on September 1, 2022 and September 1, 2023. The interest and
principal on the bonds are payable from pledged tax increment revenues.
A portion of the proceeds were used to obtain a surety agreement to satisfy the bond reserve
requirement. The principal balance of outstanding bonds at June 30, 2009, is $36,425,000.
Tax Allocation Bonds, Series 2003 — Project Area No. 1
On September 1, 2003, the Agency issued tax allocation bonds in the amount of $26,400,000
to finance capital projects benefiting the La Quinta Redevelopment Project Area No. 1. The
2003 tax allocation bonds were issued at a discount of $277,200 issuance costs of $629,191.
Interest is payable semi-annually on March 1 and September 1 of each year, commencing
March 1, 2004. Interest payments range from 4.24% to 6.44% per annum. The interest and
principal on the bonds are payable from pledged tax increment revenues.
Term bonds maturing on September 1, 2013 through September 1, 2032, are subject to
mandatory redemption from minimum sinking fund payments, in part by lot, on
September 1, 2004, September 1, 2014 and September 1, 2024, respectively, and on each
September 1 thereafter at a redemption price equal to the principal amount thereof plus
accrued interest to the redemption date.
A portion of the proceeds was used to obtain a surety agreement to satisfy the bond reserve
requirement. There are certain limitations regarding the issuance of parity debt as further
described in the official statement. The principal balance of outstanding bonds at
June 30, 2009, is $24,285,000.
2004 Series A Local Agency Revenue Bonds
On June 29, 2004, the La Quinta Financing Authority issued revenue bonds in the amount of
$90,000,000 to finance projects benefiting low and moderate income housing in La Quinta
Redevelopment Project Area No. 1 and the La Quinta Redevelopment Project Area No. 2
and to advance refund the Agency's Redevelopment Project Areas No. 1 and 2, 1995
Housing Tax Allocation Bonds. The 2004 local agency revenue bonds were issued with
issuance costs of $2,600,229 and a premium of $476,496.
Interest is payable semi-annually on March 1 and September 1, of each year, commencing
September 1, 2004. Interest payments range from 3% to 5.25% per annum. The interest
and principal on the bonds are payable from pledged tax increment revenues.
31 04(� /�
a r 5
La Quinta Redevelopment Agency
Notes to Financial Statements (Continued)
Note 8: Long -Term Liabilities (Continued)
Term bonds maturing on September 1, 2024, September 1, 2029 and September 1, 2034,
are subject to mandatory redemption from minimum sinking fund payments, in part by lot, on
September 1, 2017, September 1, 2025 and September 1, 2030, respectively, and on each
September 1 thereafter at a redemption price equal to the principal amount thereof plus
accrued interest to the redemption date.
A portion of the proceeds was used to obtain a surety agreement to satisfy the bond reserve
requirement. There are certain limitations regarding the issuance of parity debt as further
described in the official statement. The principal balance of outstanding bonds at
June 30, 2009, is $84,560,000.
Due to County of Riverside — Project Area No. 2
Based on an agreement dated July 5, 1989, between the Agency and the County, until the
tax increment reaches $5,000,000 annually in Project Area No. 2, the Agency will pay to the
County 50% of the County portion of tax increment. At the County's option, the County's
pass -through portion can be retained by the Agency to finance new County facilities or land
costs that benefit the County and serve the La Quinta population. Per the agreement, the
Agency must repay all amounts withheld from the County. The tax increment is to be paid to
the County in amounts ranging from $100,000 to $250,000 over a payment schedule through
June 30, 2015. Interest does not accrue on this obligation. The balance at June 30, 2009, is
$1,400,000.
Pass -through Agreement Payable to Coachella Valley Unified School District
An agreement was entered into in 1991 between the Agency, the City of La Quinta and the
Coachella Valley Unified School District (District), which provides for the payment to the
District a portion of tax increment revenue associated with properties within District confines.
Such payments are subordinate to other indebtedness of the Agency incurred in furtherance
of the Redevelopment Plan for Project Area No. 1. This tax increment is paid to the District
over a payment schedule through August 1, 2012, in amounts ranging from $474,517 to
$834,076 for a total amount of $15,284,042. Tax increment payments outstanding at
June 30, 2009, totaled $2,874,652. The District agrees to use such funds to provide
classroom and other construction costs, site acquisition, school buses, expansion or
rehabilitation of current facilities.
Washington Street Apartments
In October 2008, the La Quinta Redevelopment Agency acquired the Washington Street
Apartments for cash and the assumption of the following debt:
Provident Bank Loan
This loan was originally entered into with the previous owner of the Washington Street
Apartments and Provident Bank for $1,696,000 in August 2001 at an 8.36% interest rate.
The loan is amortized on a thirty year basis with the outstanding balance due in twenty years
or August 2021. The outstanding principal balance in October 2008 when the property was
acquired by the Agency was $1,572,031. The loan is secured by a deed of trust on the
property and is senior to the United States Department of Agriculture (USDA) loan which is
also secured by a deed of trust on the property. Repayment of the monthly loan amount of
$12,873 is made from tenant rent receipts. The source for the final principal payment due in
August 2021, of $1,050,109 will be determined at a future date. The principal balance of this
loan at June 30, 2009, is $1,556,283.
32
046
La Quinta Redevelopment Agency
Notes to Financial Statements (Continued)
Note 8: Long -Term Liabilities (Continued)
United States Department of Agriculture (USDA) Rural Development Promissory Note
This promissory note was originally entered into with the previous owner of the Washington
Street Apartments and USDA — Rural Development for $1,500,000 in November 1980 at a
10.00% interest rate. The note is amortized on a fifty year basis with the outstanding balance
due in October 2030. The outstanding principal balance, in October 2008, when the property
was acquired by the Agency was $760,721. The loan is secured by a deed of trust on the
property and is subordinated to the Provident loan which is also secured by a deed of trust on
the property. Repayment of the monthly loan amount of $7,107 is made from tenant rent
receipts and a rental subsidy from the USDA. Rural Development has agreed to a 9%
interest rate subsidy on the Promissory Note as long as the Apartment renters meet certain
program eligibility requirements. The principal balance of this note at June 30, 2009, is
$751,754.
Advances from the City of La Quinta
The City of La Quinta advances money to the Redevelopment Agency to cover operating and
capital shortfalls. As of June 30, 2009, the amount due to the General Fund from Project
Area No. 1 was $12,000,000. This consists of an outstanding advance of:
1) $6,000,000 loaned to the Redevelopment Agency with repayments beginning in
2030/31 and accrues interest at 10% per annum.
2) $6,000,000 loaned to the Redevelopment Agency requires repayments beginning in
2030/31 and accrues interest at 7% per annum.
As of June 30, 2009, the amount due to the General Fund from Project Area No. 2 was
$19,378,966. This consists of an outstanding advance of:
1) $10,000,000 loaned to the Redevelopment Agency with repayment beginning in
2035/36 and accrues interest at 10% per annum.
2) $9,378,966 loaned to the Redevelopment Agency for the acquisition of nine acres
located on south side of Highway 111 and East of Dune Palms Road with no
repayment schedule and accruing interest at the City's Local Agency Investment
Fund rate.
The Agency has pledged, as security for bonds it has issued, either directly or through the
Financing Authority, a portion of the tax increment revenue (including Low and Moderate
Income Housing set -aside and pass through allocations) that it receives. These bonds were
to provide financing for various capital projects, accomplish Low and Moderate Income
Housing projects and to defease previously issued bonds. The Agency has committed to
appropriate each year, from these resources amounts sufficient to cover the principal and
interest requirements on the debt. Total principal and interest remaining on the debt is
$398,484,469 with annual debt service requirements as indicated below. For the current
year, the total tax increment revenue, net of pass through payments, recognized by the
Agency was $36,702,197 and the debt service obligation on the bonds was $16,630,367.
33
^ 047
La Quinta Redevelopment Agency
Notes to Financial Statements (Continued)
Note 8: Long -Term Liabilities (Continued)
The following is a schedule of changes in long-term debt of the Agency for the fiscal year ended
June 30, 2009:
Project Area No. 1:
City Loans - Principal
Pass -through agreement payable:
1994 Tax Allocation Bonds
1998 Tax Allocation Bonds
2001 Tax Allocation Bonds
2002 Tax Allocation Bonds
2003 Tax Allocation Bonds
2004 Series A Local Agency Revenue Bonds
Total
Project Area No. 2:
City Loans - Principal
Due to County of Riverside
Provident Loan
US Department of Agriculture
1998 Tax Allocation Bonds
2004 Series A Local Agency Revenue Bonds
Total
Balance
Balance
Due Within
July 1, 2008
Additions
Repayments
June 30, 2009
One Year
$ 12,000.000
$ -
$ -
$ 12,000,000
$ -
3,660,620
-
785,968
2.874,652
801,688
10.785,000
-
1,865,000
8.920,000
2000,000
16,760,000
-
-
15,760,000
-
48,000,000
-
-
48.000,000
-
37,060,000
-
635.000
36.425,000
660,000
24,745,000
-
460.000
24,285,000
475,000
16,634,862
-
311.695
16,323.167
322,310
168,645,482
-
4,057,663
164,587,819
4,258.998
19,378,966
-
-
19,378 966
-
1,600,000
-
200,000
1400,000
200,000
-
1,572.031
15,748
1,556.283
25,325
-
760,721
8,967
751,754
10.583
5,915,000
-
115,000
5.800.000
120,000
4,495,841
84,303
4411,538
87,174
31,389,807
2.332,752
424,018
33.298,541
443,082
Unallocated to Project Areas
2004 Series A Local Agency Revenue Bonds 65,044,297 - 1,219,002 63,825,295 1,260,516
Total 65.044,297 1.219.002 63,825,295 1260,516
Total -All Pmiect Areas $ 265,079.586 $ 2,332,752 $ 5,700,683 261,711,655 $ 5.962,596
Adjustments:
Unamortimd net anginal issue (discount) or premium (804,944)
Net Long -tens Debt
$ 260,906.711
The following schedule illustrates the debt service requirements to maturity for the debt outstanding as of
June 30, 2009:
Tax Allocation
Refunding Bonds,
Tax Allocation Refunding Bonds,
Tax Allocation
Refunding Bonds
Series 1994.-PANo.1
Series 1998-PA No.t
Series 1998-PA No.2
Principal
Interest
Principal
Interest
Principal
Interest
2009-2010
$ 2,000,000
$ 578,160
$ -
$ 819,520
$ 120,000
$ 299,550
2010 - 2011
2,145,000
426,868
-
819,520
125,000
293,272
2011 - 2012
2,305,000
264,443
-
819,520
130,000
286,738
2012-2013
2,470,000
90,155
-
819,520
140,000
279,819
2013-2014
-
-
655,000
802,490
145.000
272,516
2014-2019
-
-
3,825,000
3,450,070
840,000
1,240,731
2019 - 2024
-
-
4,935,000
2.317.250
1.085,000
992,381
2024 - 2029
-
-
6,345,000
857,870
1,405,000
666,881
2029-2034
-
-
-
-
1,810,000
247,275
2034-2039
-
-
-
-
-
Totals
$ 8,920.000
$ 1,359.626
$ 15,760,000
$ 10,705.760
$ 5.800,000
$ 4,579,163
34 r
r«,
M]
La Quinta Redevelopment Agency
Notes to Financial Statements (Continued)
Note 8: Long
-Term Liabilities (Continued)
Tax Allocation Bonds, Series 2001
Tax Allocation
Bonds, Series
Tax Allocation Bonds Series 2003 -
- PA No. 1
2002 - PA No. 1
PA No. 1
Principal
Interest
Principal
Interest
Principal
Interest
2009-2010
$ - $
2,430,720
$ 660,000
$ 1,8 77,556
$ 475,000 $
1,508,106
2010-2011
-
2,430,720
680,000
1,782,926
505,000
1,481,401
2011 -2012
-
2,430,720
705,000
1,756.429
530,000
1,453,198
2012-2013
-
2,430,720
735,000
1,727,981
560,000
1,423,495
2013-2014
1,565,000
2,391,595
705,000
1,695,656
590,000
1,392,158
2014-2019
9,095,000
10,669,725
4,065,000
7,902,281
3,515,000
6,358,580
2019-2024
11,605,000
8,089,803
5,190,000
6,749,694
4,770,000
5,076,104
2024-2029
14,865,000
4,742,618
6,660,000
5,250,306
6,485,000
3,303,559
2029 - 2034
10,870,000
849,915
17,025,000
2,094,459
6,855,000
917,861
Totals
$ 48,000,000 $
36,466,536
$ 36,425,000
$ 30,767,288
$ 24,285.000 $
22,914,462
2004 Series ALocal Agency
Pass -through Payable - Coachella
Revenue Bonds
Due to Countyof Riverside
Valley Unified School District
Principal
Interest
Principal
Interest
Principal
Interest
2009-2010
$ 1,670,000 $
4,243,331
$ 200,000
$ -
$ 801,688 $
-
2010-2011
1,740,000
4,175,131
200,000
-
817,722
-
2011 -2012
1,805,000
4,099,719
250,000
-
834,076
-
2012-2013
1,890,000
4,016,581
750,000
-
421,166
-
2013-2014
1,975,000
3,924,681
-
-
-
-
2014-2019
11,485,000
17,953,106
-
-
-
-
2019 - 2024
14.830.000
14,520,756
-
-
-
-
2024-2029
19,090,000
10,163,219
-
-
-
-
2029 - 2034
24,415,000
4,700,072
-
-
-
-
2034-2039
5,660,000
145,038
-
-
-
-
2039-2044
-
-
-
-
-
-
Totals
$ 84,560,000 $
67,941,634
$ 1,400,000
$ -
$ 2,874,652 $
-
USDA Rural Development
Provident Bank Loan
Principal
Interest
Principal
Interest
2009-2010
$ 10,583 $
74,699
$ 25,325
$ 129,149
2010-2011
11,692
73,591
27,524
126,949
_ 2011-2012
12,915
72,367
29,917
124,558
-- 2012- 2013
14,267
71,014
32,516
121,959
_ 2013- 2014
15,761
69,520
35,341
119,134
2014-2019
107,303
319,106
228,453
543,919
2019-2024
176,546
249,863
1,177,207
202,040
2024-2029
290,473
135,936
-
-
<< 2029-2034
112,214
8,602
-
-
2034 - 2039
-
-
-
-
2039 - 2044
-
-
-
-
Totals
$ 751,754 $
1,074,698
$ 1,556,283
$ 1,367,708
Note 9: Pledge Tax Revenues
All tax revenues received by the Agency other than the amount required by law to be
deposited in a low and moderate income housing fund, are required to be used to meet debt
service requirements of the bond indentures before any payments may be made on other
obligations of the Agency.
35
»..!' 049
COUNCIL/RDA MEETING DATE: November 17, 2009
ITEM TITLE: Approval of an Execution of a Grant of
Easement/ Pipeline(s) to Coachella Valley Water
District (CVWD) for Domestic Water and Private Sewer
Associated With the La Quinta Fire Station No. 32
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Authorize the Executive Director to execute a Grant of Easement/Pipeline(s) to
Coachella Valley Water District (CVWD) for domestic water and private sewer
associated with the La Quinta Fire Station No. 32, subject to minor revisions by the
Agency Counsel.
FISCAL IMPLICATIONS:
None.
CHARTER CITY IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
The new construction at Fire Station No, 32 (Attachment 1) will require installation of
water and sewer facilities that will be owned and maintained by CVWD. As a
condition of that ownership and maintenance, CVWD requires an easement over its
water and sewer mains and other appurtenances in their favor. The Grant of
Easement/Pipeline(s) shown by Attachment 2, are the legal description and depiction
of the easement required.
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FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency include:
1. Authorize the Executive Director to execute the Grant of Easement/Pipeline(s) to
Coachella Valley Water District (CVWD) for domestic water and private sewer
associated with the La Quinta Fire Station No. 32, subject to minor revisions by
Agency Counsel, or
2. Do not authorize the execution of the Grant of Easement/Pipeline(s) to
Coachella Valley Water District (CVWD) for domestic water and private sewer
associated with the La Quinta Fire Station No. 32, or
3. Provide staff with alternative direction.
Respectfully submitted,
Timothy R. Jon on, .E. \
Public Works D r ctor/City Engineer
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachments: 1. Vicinity Map
2. Grant of Easement
o51
ATTACHMENT 1
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VICINITY MAP
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52
052
No Recording Fees
Required Per I ATTACHMENT 2
Government Code
Section 27383
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
COACHELLA VALLEY WATER DISTRICT
Post Office Box 1058
Coachella, California 92236
APNS: 770-184-001, 770-184-003, (Space above this line is for Recorders use)
770-184-004,and 770-184-006
GRANT OF EASEMENT/PIPELINE(S)
FOR VALUABLE CONSIDERATION, the receipt of which is hereby acknowledged, LA QUINTA
REDEVELOPMENT AGENCY, a Public Body Corporate and Politic; CITY OF LA QUINTA, a Municipal
Corporation; and CITY OF LA QUINTA, California, a California Municipal Corporation and Charter City,
("Grantor") does hereby grant to COACHELLA VALLEY WATER DISTRICT, a public agency of the State of
California ("Grantee"), and its successors and assigns, a perpetual, nonexclusive easement and right-of-way to
install, construct, enlarge, survey, reconstruct, remove and replace, operate, maintain, repair, improve and relocate
underground pipeline(s), which pipeline(s) may be installed at different times, and over a period of time, and
necessary devices and appurtenances thereto in, on, over, under, along and across that certain real property in the
County of Riverside, State of California, described in Exhibit "A" and depicted in Exhibit "B" attached hereto and
by reference made a part hereof.
The foregoing easement includes the reasonable right of access to and from said easement for the purpose of
exercising the rights granted herein.
Said pipeline(s) and every part thereof shall, where it crosses Grantor's land, be confined to lands
hereinabove-described, and shall be constructed by Grantee with sufficient ground cover (i.e., distance between
ground surface and top of such pipeline(s)) as shown on the construction plans for such pipeline(s).
Notwithstanding the foregoing, the ground cover shall not be changed by any party other than Grantee. Fixtures
and appurtenances used or useful in the operation of said pipeline(s) may be constructed any distance either below
or above the ground surface.
The Grant of Easement herein contained shall include the right to enter said premises, to survey, construct,
reconstruct, lay, relay, maintain, operate, control, use and remove said pipeline(s), fixtures, appurtenances, and to
remove objects interfering with the construction, operation and maintenance thereof.
The Grantor reserves the right to cultivate, occupy and use said premises for any purpose not inconsistent with the
rights and privileges above granted and which will not interfere with or endanger said pipeline(s), fixtures and
appurtenances or the use thereof. The Grantee shall use due care in the construction, operation and maintenance
of said pipeline(s), fixtures and appurtenances.
[SIGNATURES APPEAR ON THE FOLLOWING PAGE1
053
Page I of 2
Date
GRANTOR(S)
LA QUINTA REDEVELOPMENT AGENCY, a Public
Body and Corporate Politic,
CITY OF LA QUINTA, a Municipal Corporation
CITY OF LA QUINTA, California, a California
Municipal Corporation and Charter City
By
Thomas P. Genovese, City Manager of City of La
Quinta and Executive Director of La Quinta
Redevelopment Agency
P.O. Box 1504
(mailing address)
La Quinta, CA 92247
(city) (state) (zip code)
Doc. No.
CV W D-580 (Rev. 8/09)
Page 2 of 2
P54
EXHIBIT "A"
CVWD DOMESTIC WATER AND SEWER PIPELINE(S) EASEMENT
IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE,STATE OF
CALIFORNIA, A PORTION OF THE SOUTHWEST QUARTER OF SECTION
6, TOWNSHIP 6 SOUTH, RANGE 7 EAST, SAN BERNARDINO MERIDIAN,
MORE PARTICULARLY DESCRIBED AS FOLLOWS:
COMMENCING AT A POINT ON THE SOUTH LINE OF SAID SECTION 6,
WHICH BEARS NORTH 89"55'08" EAST, A DISTANCE OF 821.33 FEET
FROM THE SOUTHWEST CORNER OF SAID SECTION 6, SAID POINT
ALSO BEING ON THE SOUTHEAST CORNER OF THE WEST 25 ACRES OF
THE SOUTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SAID
SECTION 6;
THENCE NORTH 00001'00" EAST ALONG THE EAST LINE OF SAID WEST
25 ACRES A DISTANCE OF 180.00 FEET THE TRUE POINT OF
BEGINNING;
THENCE LEAVING SAID EAST LINE SOUTH 90000'00' WEST A DISTANCE
OF 40.92 FEET;
THENCE NORTH 00000'00" EAST A DISTANCE OF 85.10 FEET;
THENCE SOUTH 90000'00" WEST A DISTANCE OF 185.82 FEET;
THENCE SOUTH 00900'00' WEST A DISTANCE OF 22.07 FEET;
THENCE NORTH 90'00'00" EAST A DISTANCE OF 6.27 FEET;
THENCE SOUTH 00'00'00" WEST A DISTANCE OF 28.00 FEET;
THENCE SOUTH 90000'00" WEST A DISTANCE OF 26.27 FEET;
THENCE NORTH 00000'00" EAST A DISTANCE OF 70.07 FEET;
THENCE NORTH 90°00'00" EAST A DISTANCE OF 205.82 FEET;
THENCE NORTH 00°00'00' EAST A DISTANCE OF 106.00 FEET;
THENCE SOUTH 90000'00" WEST A DISTANCE OF 63.50 FEET;
THENCE SOUTH 00°00'00" WEST A DISTANCE OF 17.57 FEET;
THENCE NORTH 90400'00" WEST A DISTANCE OF 21.00 FEET;
THENCE NORTH 00900'00" EAST A DISTANCE OF 37.57 FEET;
THENCE NORTH 90000'00" EAST A DISTANCE OF 84.50 FEET;
PAGE 1 OF 3
055
EXHIBIT "A"
CVWD DOMESTIC WATER AND SEWER PIPELINE(S) EASEMENT
THENCE NORTH 00000'00"
EAST A DISTANCE OF 42.07 FEET;
THENCE SOUTH 89"48'12"
WEST A DISTANCE OF 102.70 FEET;
THENCE NORTH 00011'48"
WEST A DISTANCE OF 40.09 FEET;
THENCE NORTH 89948'12"
EAST A DISTANCE OF 20.00 FEET;
THENCE SOUTH 00011'48"
EAST A DISTANCE OF 20.09 FEET;
THENCE NORTH 89048'12"
EAST A DISTANCE OF 82.77 FEET;
THENCE NORTH 00°00'00"
WEST A DISTANCE OF 68.54 FEET;
THENCE NORTH 90°00'00"
WEST A DISTANCE OF 18.11 FEET;
THENCE NORTH 00000'00"
EAST A DISTANCE OF 20.00 FEET;
THENCE SOUTH 90000'00"
EAST A DISTANCE OF 38.11 FEET;
THENCE SOUTH 00000'00"
WEST A DISTANCE OF 12.00 FEET;
THENCE SOUTH 90000'00"
EAST A DISTANCE OF 21.03 FEET TO A POINT
ON THE AFOREMENTIONED EAST LINE OF THE WEST 25 ACRES;
THENCE SOUTH 00"01'00"
WEST ALONG SAID EAST LINE A DISTANCE
OF 20.00 FEET;
THENCE LEAVING SAID EAST LINE NORTH 90000'00" WEST A DISTANCE
OF 21.03 FEET;
THENCE SOUTH 00000'00"
WEST A DISTANCE OF 92.34 FEET;
THENCE NORTH 89048'12"
EAST A DISTANCE OF 21.00 FEET TO A POINT
ON THE AFOREMENTIONED EAST LINE OF THE WEST 25 ACRES;
THENCE SOUTH 00001'00"
WEST ALONG SAID EAST LINE A DISTANCE
OF 33.00 FEET;
THENCE LEAVING SAID EAST LINE SOUTH 89"48'12" WEST A DISTANCE
OF 5.26 FEET;
THENCE SOUTH 44048'12"
WEST A DISTANCE OF 22.33 FEET;
THENCE SOUTH 00000'00"
WEST A DISTANCE OF 188.58 FEET;
PAGE 2 OF 3
.. 41 056
EXHIBIT "A"
CVWD DOMESTIC WATER AND SEWER PIPELINE(S) EASEMENT
THENCE NORTH 90000'00" EAST A DISTANCE OF 20.93 FEET TO A POINT
ON THE AFOREMENTIONED EAST LINE OF THE WEST 25 ACRES;
THENCE SOUTH 00001'00" WEST ALONG SAID EAST LINE A DISTANCE
OF 20.00 FEET TO THE TRUE POINT OF BEGINNING.
SUBJECT TO EXISTING EASEMENTS, COVENANTS, RIGHTS AND
RIGHTS -OF -WAY OF RECORD.
CONTAINING 19,462 SQUARE FEET
OR 0.447 ACRES, MORE OR LESS. O LAND 8t
SEE EXHIBIT "B" ATTACHED HERETO AND BY �,�' CHARLES R. �O
REFERENCE MADE A PART HEREOF. C) HARRIS
.� No.4989
PREPARED BY OR UNDER THE SUPERVISION OF:
�� Exp.12131/09 Q
,, � Pam.
CHARL S R. HARRIS P.L.S. 4989 9 �OF CA\-\FC
EXP. 12131/2009
DATED: _ /�? Z 3 C3
PAGE 3OF3
"'57
EXHIBIT 9139 52ND AVENJE
CVWD DOMESTIC WATER AND SEWER L25 w I
PIPELINE(S) EASEMENT 77oisa-oo1 � ^D w
MSA CONSULTING, INC L23v /
a Cm nommum a L qmgm ,, TRACT N 4 192-3 y ti /
PER MB 145/55-56 / �/
34200 Ts C DAM .ltNoo MM . 3- 10 LOT 1 a a�
't>tta.as f+so'i aa9a► . n.� 1'reo) tatw3
L19 _ � I
N 20'
co LZl
;I
vV� L17 II� I
INST. N0. 263274L1
�. REC. 8//7/89, O.R. N 01 o
APN 770-184-004 L15 J I
o. ♦989 n
N N
L13 20' m m
TRACT NO. 19203 PER $ ��
MB 145/55-56 LOT 2 p~p
APN 770-184-003 06 W a� W vl I n
'I v- NI 3 NI N 1
3 990 (L l > a l
L9 l NO Q Q O ",
lz i �-Z-CY)
U Z U r N
20' a L3 0l <I O <I Q m
L5 DOMESTIC 20' N o I w o
WATER AND SEWER o
v PIPELINE(S) EASEMENT = I a
0.447 AC. L 5 r r —
1" ' 60
�----- Lt
SEE SHEET 2 FOR LINE DATA T.6.o.
yh��• I UqE 0 W. `15 AC.
pOp�,�O I OF SW 1/4 OF SW 1/4
Q OF sic. 6,
WEST LINE
p I/ OF SEC. 6 0�' G. �i o o
SW COR. SEC. 6 I SOUTH LINE o o \(
T.6S., ME., S.B.M. —L OF SEC. 6 _ I Z I o N w
P.O. a I w
FRANCIS HACK LANE o cHR. T I
_ N 89'55'08- E 821.33SHEET 1 OF 2
058
EXHIBIT •Bw
CVWD DOMESTIC WATER AND SEWER PIPELINE(S) EASEMENT
LINE DATA
NO.
BEARING
LENGTH
L1
S 90'00 00 W
40.92
L2
N 00'CO'00' E
85.10'
L3
S woo 00 W
185.82
L4
s oo'oo 0o w
22.07
L5
N 90'00 00 E
6.27
L6
S OB'00 00 W
28.00'
L7
S 90.00 00 W
26.27'
L8
I N 00'00'00" E
70.07'
L9
N 90'00'00" E
205.82'
L10
N oo'OO'00- E
106.00
L71
S 90'00 GO W
63.50
L12
S 007000o W
17.57
L13
N 90'00 00 W
21.00
L 14
N 00'00 00 E
37.57
L15
N 90`00'00' E
84.50
L16
N 00'00'00" E
42.07'
L17
S 89.48'12 W
102.70
L18
N BIT 11 48 W
40.09
L19
N 89'4812 E
20.00
L20
S 00'11 48 E
20.09
L21
N 89'4812 E
82.77
L22
N 00'00'00" W
68.54
L23
N 90'00'00" W
18.11
L24
N 00'00 00' E
20.00'
L25
S 90'00 00 E
38.11
L26
S 00'00 00 W
12.00
L27
S 90'00'00' E
21.03'
L28
S 0o'O1 00" W
20.00'
L29
N 90'00'00" W
21.03
L30
S 00'00'00 W
92.34'
L31
N 89'4812 E
21.00
L32
S 00'01 00 W
33.00
L33
5 89'4812 W
5.26
L34
S 4-4'4812 W
22.33
l38
N 90'00'00" E
20.93'
L36
S 00'01'00- W
20.00
MSA Coxso mio, INc
PLuamm . aw. ,p . LAM so m,ma
34200 Bon Han Dun ■ RAwo Munoz • CA 92X70
(lit hrtmsam CM 320-M ■ FAx MM 323-7893
I.N. 1928 10/23/2009 SHEET 2 OF 2
^59
T4hf 4 4 aakm
COUNCIL/RDA MEETING DATE: November 17. 2009
ITEM TITLE: Approval of Amendment No. 3 to the
Disposition and Development Agreement by and
between the La Quinta Redevelopment Agency and
LRCF SR1, LLC, formerly known as LDD SilverRock,
LLC
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION: _
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Approve Amendment No. 3 to the Disposition and Development Agreement by and
between the La Quinta Redevelopment Agency and LRCF SR1, LLC, and authorize
the Executive Director to execute the same.
FISCAL IMPLICATIONS:
None at this time.
BACKGROUND AND OVERVIEW:
On December 19, 2006, the Agency entered into a Disposition and Development
Agreement ("DDA") with LDD SilverRock, LLC for the development of a boutique
hotel, resort hotel, casitas, and a resort retail village. An Assignment and Assumption
Agreement was later approved by the Agency Board assigning all DDA rights and
obligations to a related entity, LRCF SR1, LLC (herein referred to as "LRCF").
The Agency Board, on October 23, 2008, approved Amendment No. 1 to the DDA
which adjusted certain timeframes within the Schedule of Performance, and granted
the Executive Director authority to grant an additional three month extension to the
Schedule of Performance. Within the Schedule of Performance, the Outside Date for
Closing of the Boutique Hotel was scheduled for August 19, 2009; therefore, on July
9, 2009, the Executive Director granted a three month extension to November 19,
2009.
»•..n 060
Amendment No. 2 was approved on October 21, 2009, which allows for the release
of a portion of the developer's Deposit Payments to cover legal costs and fees to
prepare the DDA amendments.
Because the Outside Date for Closing of the Boutique Hotel is near, Amendment No. 3
(Attachment 1) further extends this date to January 31, 2010 to provide adequate
time to prepare and process DDA amendments.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency Board include:
1. Approve Amendment No. 3 to the Disposition and Development Agreement by
and between the La Quinta Redevelopment Agency and LRCF SR1, LLC and
authorize the Executive Director to execute the same; or
2. Do not approve Amendment No. 3 to the Disposition and Development
Agreement by and between the La Quinta Redevelopment Agency and LRCF
SR1, LLC; or
3. Provide staff with alternative direction.
Respectfully submitted,
DougYas�fi W'
AssistantCity Manager — Development Services
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachment: 1 . Amendment No. 3 to Disposition and Development
Agreement
061
ATTACHMENT]
AMENDMENT NO.3 TO DISPOSITION AND DEVELOPMENT AGREEMENT
THIS AMENDMENT NO. 3 TO DISPOSITION AND DEVELOPMENT
AGREEMENT ("Amendment No. 3") is made and entered into as of November _, 2009
("Effective Date") by and between the LA QUINTA REDEVELOPMENT AGENCY, a public
body, corporate and politic ("Agency"), and LRCF SRI, LLC, formerly known as LDD
SILVERROCK, LLC, a Delaware limited liability company ("Developer").
RECITALS:
A. On or about December 19, 2006, the Agency and Developer entered into that
certain Disposition and Development Agreement (the "Original DDAf1), pursuant to which
Agency agreed to sell to Developer, and Developer agreed to purchase from Agency that certain
real property located at the southwest intersection of Jefferson Street and Avenue 52 in the City
of La Quinta, California 92253 and to construct, complete, and operate thereon a commercial
project containing a luxury four -star quality or higher boutique hotel and a four -star quality or
higher luxury resort hotel, a retail village condominium hotel units, resort units, and associated
amenities. All capitalized terms not specifically defined herein shall have the meanings ascribed
thereto in the Original DDA.
B. Developer has assigned to LRCF SR2, LLC, a Delaware limited liability
company, all of its rights and obligations in, under and to the Original DDA with respect to all of
the real property identified in the Original DDA other than the parcels identified therein as the
"Boutique Hotel Parcel" and the "Ranch Villas Parcel."
C. On or about October 23, 2008, the Agency and Developer entered into that certain
Amendment No. 1 to Disposition and Development Agreement to provide Developer with
extensions to certain timeframes under the Original DDA ("Amendment No. 1 ").
D. On or about October 21, 2009, the Agency and Developer entered into that certain
Amendment No. 2 to Disposition and Development Agreement to allow for the disbursement to
Agency of portions of the Deposit Payments made by Developer pursuant to Section 208 of the
DDA to cover Agency's legal costs and fees in preparing an amendment to the DDA
("Amendment No. 2"). The Original DDA, as amended by Amendment No. 1 and Amendment
No. 2, is hereinafter referred to as the "DDA."
E. Pursuant to authority granted by the Agency Board of Directors, the Agency
Executive Director has granted the Developer a further extension to the outside closing date for
the Boutique Hotel Parcel and Ranch Villas Parcel (e.g., Item No. 21 in each of the Schedule of
Performance for the Boutique Hotel and the Schedule of Performance for the Ranch Villas
Development), such that the Time for Completion for each Item is currently November 17, 2009.
F. Developer and Agency now wish to further extend each such Time for
Completion to provide the parties with sufficient time to complete a comprehensive amendment
to the DDA.
882/015610-0084 [`
1049372,02 a11/12/09 u
AGREEMENT:
NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated
herein by this reference, and for valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto agree as follows:
1. The DDA is hereby amended as follows:
1.1 To revise the Time for Completion in Item 21 of the Schedule of Performance for
the Boutique Hotel to replace the phrase "the date that is 32 months after the Effective Date"
with "January 31, 2010."
1.2 To revise the Time for Completion in Item 21 of the Schedule of Performance for
the Ranch Villas Development to replace the phrase "the date that is 32 months after the
Effective Date" with "January 31, 2010."
2. Agency's Executive Director shall have the right to unilaterally grant Developer with
extensions of time above and beyond the extensions granted hereby, provided such new
extensions do not exceed, cumulatively, a total of three (3) additional months.
3. Except as otherwise expressly provided in this Amendment No. 3, all of the terms and
conditions of the DDA shall remain in full force and effect.
4. In the event of any action between Agency and Developer seeking enforcement of any of
the terms and conditions to this Amendment No. 3, the prevailing party in such action shall be
awarded, in addition to damages, injunctive or other relief, its reasonable costs and expenses,
including without limitation its expert witness fees and reasonable attorney's fees.
5. This Amendment No. 3 shall be construed according to its fair meaning and as if
prepared by both parties hereto.
6. This Amendment No. 3 shall be governed by the internal laws of the State of California
and any question arising hereunder shall be construed or determined according to such law. The
Superior Court of the State of California in and for the County of Riverside, or such other
appropriate court in such county, shall have exclusive jurisdiction of any litigation between the
parties concerning this Amendment No. 3. Service of process on Agency shall be made in
accordance with California law. Service of process on Developer shall be made in any manner
permitted by California law and shall be effective whether served inside or outside California.
7. Time is of the essence of this Amendment No. 3 and of each and every term and
provision hereof.
8. A waiver of a provision hereof, or modification of any provision herein contained, shall
be effective only if said waiver or modification is in writing, and signed by both Agency and
Developer. No waiver of any breach or default by any party hereto shall be considered to be a
waiver of any breach or default unless expressly provided herein or in the waiver.
882/015610-0084
1049372.02 at 1/12/09 (9
' r63
9. This Amendment No. 3 may be executed in counterparts, each of which, when this
Amendment No. 3 has been signed by all the parties hereto, shall be deemed an original, and
such counterparts shall constitute one and the same instrument.
10. The person(s) executing this Amendment No. 3 on behalf of each of the parties hereto
represent and warrant that (i) such party is duly organized and existing, (ii) they are duly
authorized to execute and deliver this Amendment No. 3 on behalf of said party, (iii) by so
executing this Amendment No. 3 such party is formally bound to the provisions of this
Amendment No. 3, and (iv) the entering into this Amendment No. 3 does not violate any
provision of any other agreement to which such party is bound.
[End — Signature page follows)
892/015610-0084
1049372.02.11112/09
,o. ^ r64
IN WITNESS WHEREOF, Agency and Developer each hereby represents that it has read
this Amendment No. 3, understands it, and hereby executes this Amendment No. 3 to be
effective as of the day and year first written above.
"Developer"
LRCF SRI, LLC,
a Delaware limited liability company
Date: 12009 By:
Its:
"Agency"
LA QUINTA REDEVELOPMENT AGENCY,
a public body, corporate and politic
Date: , 2009 By:
ATTEST:.
Veronica J. Montecino, Agency Secretary
APPROVED AS TO FORM:
RUTAN & TUCKER, LLP
B1
M. Katherine Jenson, Agency Counsel
Executive Director
882/015610-0084
1049372.02 e11/12/09 r 65