2010 01 19 RDAeaf 440"
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, JANUARY 19, 2010
3:30 P.M. Closed Session / 4:00 P.M. Open Session
Beginning Resolution No. RA 2010-001
CALL TO ORDER
Roll Call:
Agency Board Members: Adolph, Franklin, Henderson, Sniff, Chairperson Evans
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.
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 REAL PROPERTY LOCATED ON WESTWARD HO
DRIVE, EAST OF DUNE PALMS ROAD (APN: 600-030-005). PROPERTY
OWNERS/NEGOTIATORS: JOSE AND CARMELITA SIMO.
»» � 001
Redevelopment Agency Agenda 1 January 19, 2010
RECESS TO CLOSED SESSION
RECONVENE AT 4:00 P.M.
4:00 P.M.
PUBLIC COMMENT
At this time members of the public may address the Redevelopment Agency on any matter
not listed on the agenda. Please complete a "request to speak" form and limit your
comments to three minutes.
CONFIRMATION OF AGENDA
APPROVAL OF MINUTES
APPROVAL OF MINUTES OF JANUARY 5, 2010.
CONSENT CALENDAR
NOTE: Consent Calendar items are considered to be routine in nature and will be approved
by one motion.
APPROVAL OF DEMAND REGISTER DATED JANUARY 19. 2010.
2. RECEIVE AND FILE TREASURER'S REPORT DATED NOVEMBER 30, 2009.
3. RECEIVE AND FILE REVENUE & EXPENDITURES REPORT DATED
NOVEMBER 30, 2009, AND INVESTMENT SUMMARY REPORT FOR THE
QUARTER ENDING DECEMBER 31, 2009.
4. ADOPTION OF A RESOLUTION APPROVING A PURCHASE AND SALE
AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY AND JOSE AND
CARMELITA SIMO FOR VACANT LAND LOCATED ON WESTWARD HO
DRIVE, EAST OF DUNE PALMS ROAD (APN: 600-030-005) AND THE
APPROPRIATION OF $300,000.
BUSINESS SESSION - NONE
STUDY SESSION — NONE 002
y r
Redevelopment Agency Agenda 2 January 19, 2010
CHAIR AND BOARD MEMBERS' ITEMS — NONE
PUBLIC HEARINGS
For all Public Hearings on the agenda, a completed "request to speak" form must be filed
with the City Clerk prior to consideration of that item.
1. PUBLIC HEARING TO ADOPT A RESOLUTION APPROVING THE FOURTH,
FIVE-YEAR IMPLEMENTATION PLAN FOR FISCAL YEARS 2009-2010 TO
2013-2014, AND THE THIRD TEN-YEAR AFFORDABLE HOUSING
COMPLIANCE PLAN FOR LA QUINTA REDEVELOPMENT PROJECT AREA
NOS. 1 AND 2.
A. RESOLUTION ACTION
ADJOURNMENT
The next regular meeting of the Redevelopment Agency will be held on February 2,
2010, 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 January
19, 2010, was posted on the outside entry to the Council Chamber at 78-495
Calle Tampico and on the bulletin boards at 51-321 Avenida Bermudas and 78-630
Highway 1 1 1, on January 15, 2010.
i
6Qinta,
oCalifornia
City Clerk
Public Notice
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.
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Redevelopment Agency Agenda 3 January 19, 2010
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AGENDA CATEGORY:
RDA MEETING DATE: January 19, 2010 BUSINESS SESSION
ITEM TITLE: Demand Register Dated CONSENT CALENDAR /
January 19, 2010
STUDY SESSION
PUBLIC HEARING
RECOMMENDATION:
It is recommended the Redevelopment Agency Board:
Receive and File the Demand Register Dated
January 19, 2010 of which $454,638.60
represents Redevelopment Agency Expenditures
PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA
»»' 004
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COUNCIL/RDA MEETING DATE: January 19, 2010 AGENDA CATEGORY:
ITEM TITLE: Transmittal of Treasurer's Report as of BUSINESS SESSION:
November 30, 2009 CONSENT CALENDAR: c9—d
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
"- 005
ce-i&t 4 aCP Qum&
COUNCIL/RDA MEETING DATE: January 19, 2010
ITEM TITLE: Transmittal of Revenue and Expenditure
Report for November 30, 2009 and Investment
Summary Report for the Quarter Ending December 31,
2009
RECOMMENDATION:
Receive and File.
FISCAL IMPLICATIONS:
None.
CHARTER CITY IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
►C" 04017107:14 Well] Ilya
BUSINESS SESSION:
CONSENT CALENDAR: 3
STUDY SESSION:
PUBLIC HEARING:
Transmittal of the November 30, 2009 Statement of Revenue and Expenditures and
Investment Summary Report for the Quarter Ending December 31, 2009 for the La
Quinta Redevelopment Agency.
Respectfully submitted,
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John M. Falconer, Finance Director
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachments: 1. Revenue and Expenditures Report, November 30, 2009
2. Investment Summary Report for the Quarter Ending
December 31, 2009
.„. 007
E
A 1 I AUNIVIUM 1 "I
LA QUINTA REDEVELOPMENT AGENCY
REVENUE SUMMARY
PROJECT AREA NO. 1:
LOW/MODERATE TAX FUND:
Tax Increment
Allocated Interest
Non Allocated Interest
Miscellaneous revenue
Non Allocated Interest
LQRP-Rent Revenue
Home Sales Proceeds
Sale of Land
Sewer Subsidy Reimbursements
Rehabilitation Loan Repayments
2nd Trust Deed Repayment
Transfer In
TOTAL LOW/MOD 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
Pooled Cash Allocated Interest
Non Allocated Interest
Developer Agreement Funding
Sale of Land Proceeds
Rental Income
Transfers In
TOTAL CAPITAL IMPROVEMENT
07/01/2009 - 11/30/2009
ADJUSTED 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
506.62
(506,62)
0.000%
0.00
0.00
0.00
0.000%
0,00
0.00
0.00
0.000%
225,000.00
102,739.00
122,261.00
45.660%
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
105,522.41
11,172,077.59
0.940%
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
14,825,00
17,675.00
45.620%
0.00
0,00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
2,639.33
(2,639.33)
0.000%
10,000,000.00
0.00
10,000,000.00
0.000%
10,194,500.00
45,684.64
10,148,815.36
0.450%
4*.. 008
3
LA OUINTA REDEVELOPMENT AGENCY
ADJUSTED
11/30109
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
115,777.70
0.00
236.712,30
BUILDING HORIZONS
0.00
0.00
0,00
000
LQ RENTAL PROGRAM
275,000.00
81,827.62
0.00
193,1723E
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
000
0.00
0.00
LOW MOD HOUSING PROJECTS
0.00
0.00
0,00
000
FORECLOSURE
750,000.00
0.00
0.00
750,000.00
REIMBURSEMENT TO GEN FUND
763,523.00
349,221.65
0.00
414,301.35
TRANSFERS OUT
4,478,892.00
2,981,837.27
0.00
1,497054.73
TOTAL LOWIMOD TAX
DEBT SERVICE FUND:
SERVICES
BOND PRINCIPAL
BONDINTEREST
INTEREST CITY ADVANCE
PASS THROUGH PAYMENTS
ERAF SHIFT
TRANSFERS OUT
CAPITAL IMPROVEMENT FUND:
508,200.00
8,570.00
0.00
499,630.00
3,135,00000
3,135,000.00
0.00
0.00
7,144.062.00
3,620,943.13
0,00
3,523.118.87
1,020,000.00
425.000.00
0.00
595,000.00
24,722,621.00
456.798.45
0.00
24,265.82254
0.00
0.00
0.00
0,00
13,961,932.00
2,551,604.97
0.00
11,410,327.03
TOTAL DEBT SERVICE
PERSONNEL
1,100.00
0.00
0.D0
1,100.00
SERVICES
776.600,00
300,707.52
0,00
475,892,48
LAND ACQUISITION
0.00
0.00
0,00
D00
ASSESSMENT DISTRICT
0.00
0.00
0.00
000
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
161.517.70
0.00
194,973.30
TRANSFERS OUT
45,871.248.00
231,53872
0.00
45.539.709.28
TOTAL CAPITAL IMPROVEMENT
In.. 009
El
LA QUINTA REDEVELOPMENT AGENCY
REVENUE SUMMARY
PROJECT AREA NO. 2:
LOWIMODERATE 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 LOWIMODERATE 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
07101 /2009-1113012009
ADJUSTED 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
1,077.68
2,522.32
29.940%
451,400.00
148,387.00
303,013.00
32.870%
46,800.00
0.00
46,800.00
0.000%
0.00
0.00
0.00
0.000%
163,300.00
58,795.12
104,504.88
36.000%
4,200.00
2,700.20
1,499.80
64.290%
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
248,302.57
6,257,097.43
3.820%
0.00
0.00
0.00
0.000%
0,00
0.00
0.00
0,000%
17,500.00
8,380.00
9,120.00
47.890%
0.00
0.00
0.00
0.000%
17,500.00
8,380.00
9,120.00
47.890%
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
5A20%
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%
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LA OUINTA REDEVELOPMENT AGENCY
ADJUSTED
11/30/09
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
440,80000
97,039.71
D00
343,76029
WASH ST APTS OTHER EXPENSES
429,30000
141.333.73
0.00
287,966.27
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
0.00
0,00
250,000.00
VISTA DUNES PARK
0.00
0.00
0.00
0.00
LAND ACQUISITION
0,00
000
0,00
000
WSA PRIN/PROVIDENT LOAN
25,325.00
8,194.08
0,00
17,130.92
WSAPRIN/USDALOAN
10,671.00
0.00
0,00
10.671.00
WSA INTEREST/PROVIDENT LOAN
129,149.00
43,297,40
0.00
85.851,60
WSA INTEREST/USDA LOAN
74,611.00
12,790.08
0.00
61,820.92
REIMBURSEMENT TO GEN FUND
416,382.00
189,364,90
0.00
227,017.10
TRANSFERS OUT
12,757,594.00
1,336,323.96
0.00
11,421.270.04
TOTAL LOWIMOD TAX
20" LOW/MODERATE BOND FUND
HOUSING PROGRAMS
824,000.00
515,00000
0.00
309,000.00
LAND -
0.00
0.00
0.00
0.00
TRANSFERS OUT
731,740.D0
(2143,702.47)
0.00
287544247
TOTAL LOWIMOD BOND
�555,]ZD-.9F-
;6287T24747
0 US76T,7d747
DEBT SERVICE FUND:
SERVICES
268.000.00
3.225.00
0.00
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
690,220.00
0.00
966,308.00
PASS THROUGH PAYMENTS
19,253,381.00
12.871.03
0.00
19,240,509.97
TRANSFERS OUT
1,951,399.00
1.256.760.66
000
694,638.34
TOTAL DEBT SERVICE
CAPITAL IMPROVEMENT FUND:
PERSONNEL
70000
40,00
0.00
660.00
SERVICES
250,360.00
36,490.71
0.00
213,869.29
CAPITAL
0.00
0.00
000
0.00
ECONOMIC DEVELOPMENT ACTIVITY
0.00
0,00
0.00
0,00
REIMBURSEME NT TO GEN FU ND
58,244.00
26,941,75
0.00
31,302,25
TRANSFERS OUT
3,303,371.00
208,843.91
0,00
3,094.527.09
TOTAL CAPITAL IMPROVEMENT
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COUNCIL/RDA MEETING DATE: January 19, 2010
ITEM TITLE: Adoption of a Resolution Approving a
Purchase and Sale Agreement Between the
Redevelopment Agency and Jose and Carmelita Simo,
for Vacant Land Located on Westward Ho Drive, East of
Dune Palms Road (APN: 600-030-005) and the
Appropriation of $300,000
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Adopt a Resolution of the Redevelopment Agency approving the form of the
Agreement for Purchase and Sale and Escrow Instructions and subject to further
changes and/or modifications as approved by the Executive Director and Agency legal
counsel.
FISCAL IMPLICATIONS:
This purchase will result in the expenditure of up to $300,000 in property acquisition,
escrow and title costs. In order to purchase this property, the attached Resolution
appropriates $300,000 from Available Unreserved Fund Balances in Low and Moderate
Income Fund Project Area 2 (Account # 246-0000-290-00-00).
BACKGROUND AND OVERVIEW:
In September 2005, the Redevelopment Agency directed staff to contact property
owners in the Dune Palms Road corridor (north of the Whitewater River and south of
Westward Ho Drive) to ascertain their interest in selling their property (Attachment 1).
The Agency was interested in purchasing six properties in this area to accommodate a
SilverRock Resort well site, to accommodate widening Dune Palms Road (the widened
roadway alignment would be within feet of the front entries of these residences), and
to develop the remaining land with affordable housing. Five of the property owners
expressed interest in selling their property; the Agency has subsequently acquired
these properties and successfully relocated these households.
p1
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Jose and Carmelita Simo own a vacant and unimproved parcel that fronts Westward
Ho Drive. The Agency offered the Simo's $305,000 for this property; the Simos
countered with sales data that attempted to support a $500,000 value. This data was
reviewed with the Agency's real property appraiser, and the appraiser and staff
concluded that they could not support increasing the offer. Negotiations were
suspended until September 2009, when Mr. Simo contacted RSG after the demolition
of the Slater property. The Simos agreed to reduce their price to $295,000, roughly
$7.52 per square foot, which is below the original appraisal and Agency offer.
The attached Purchase and Sale Agreement (Attachment 2) facilitates the purchase of
this property. When acquired, the property will be combined with the adjoining
parcels. The Agency will then design and structure an affordable housing development
that will be slated for special needs low- and moderate -income households.
As required by Government Code section 65402, the City's Planning Commission is
required to review the Agency's acquisition of this site and report on whether such
acquisition is consistent with the City's General Plan. This action must be taken prior
to acquisition of the property (close of escrow). Therefore, the purchase agreement
includes a provision requiring this. Staff is scheduling Planning Commission review in
the near future.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency Board include:
1. Adopt a Resolution of the Redevelopment Agency approving the form of the
Agreement for Purchase and Sale and Escrow Instructions and subject to further
changes and/or modifications as approved by the Executive Director and Agency
legal counsel, and appropriates $300,000 to fund this transaction; or
2. Do not adopt the Resolution approving the form of the Agreement for Purchase
and Sale; or
3. Provide staff with alternative direction.
Respectfully submitted,
Douglas R. Drans
Assistant City Manager — Development Services
�.. 014
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachments: 1. Vicinity Map
2. Purchase and Sale Agreement
». 015
RESOLUTION NO. RA 2010-
A RESOLUTION OF THE LA QUINTA REDEVELOPMENT
AGENCY APPROVING AN AGREEMENT FOR PURCHASE
AND SALE AND ESCROW INSTRUCTIONS BY AND
BETWEEN THE AGENCY AND JOSE AND CARMELITA
SIMO, FOR THE AGENCY'S PURCHASE OF REAL
PROPERTY FOR AFFORDABLE HOUSING PURPOSES
AND APPROPRIATING AND ALLOCATING $300,000 TO
FUND THE ACQUISITION
WHEREAS, the La Quinta Redevelopment Agency ("Agency") is a public
body, corporate and politic, organized and existing under the California Community
Redevelopment Law (Health & Safety Code Section 33000, et seq.) ("CRL"); and
WHEREAS, pursuant to the CRL, the City Council of the City of La Quinta
("City" or "City Council," as applicable) approved and adopted the Redevelopment
Plan ("Redevelopment Plan") for Project Area No. 2 ("Project Area"), on May 16,
1989, by Ordinance No. 139; and
WHEREAS, a fundamental purpose of the CRL is to expand the supply of
low- and moderate -income housing (Health & Saf. Code, § 33071); and
WHEREAS, the Agency staff has negotiated an Agreement for Purchase and
Sale and Escrow Instructions ("Agreement") with Jose and Carmelita Simo
(collectively, "Seller"), for the Agency's purchase of 0.90 acres of vacant and
unimproved real property generally located on the south side of Westward Ho Drive
east of Dune Palms Road identified as APN 600-030-005 (the "Property"), for Two
Hundred and Ninety -Five Thousand Dollars ($295,000); and
WHEREAS, the Agreement is in accordance with the Redevelopment Plan
and is of benefit to the Project Area and the City of La Quinta.
NOW, THEREFORE, BE IT RESOLVED by the La Quinta Redevelopment
Agency as follows:
Section 1. That the above recitals are true and correct and incorporated
herein.
Section 2. The Agreement, a copy of which is on file with the Agency
Secretary, is hereby approved. The Agency Executive Director and Agency
Counsel are hereby authorized and directed to make final modifications to the
Agreement that are consistent with the substantive terms of the Agreement
„. 016
approved hereby, and the Agency Executive Director is authorized to thereafter
sign the Agreement on behalf of the Agency.
Section 3. The Agency Executive Director is authorized and directed, on
behalf of the Agency, to (i) sign such other and further documents, including but
not limited to escrow instructions that require the Agency's signature, and (ii) take
such other and further actions, as may be necessary and proper to carry out the
terms of the Agreement.
Section 4. The Agency authorizes the appropriation and expenditure of
$300,000 to close the transaction contemplated by the Purchase Agreement from
the Available Unreserved Fund Balances in Low- and Moderate -Income Fund Project
Area 2 (Account No. 246-0000-290-00-00).
PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta
Redevelopment Agency held this _ day of January, 2010, by the following vote:
AYES:
NOES:
ABSENT:
Lind Evans, Agency Chair
City of La Quinta, California
ATTEST:
VERONICA J. MONTECINO, CIVIC, Agency Secretary
City of La Quinta, California
APPROVED AS TO FORM:
M. KATHERINE JENSON, Agency Counsel
City of La Quinta, California
oil
ATTACHMENT
Attachment 1: Dune Palms Road Corridor Acquisition Status Map
Acquired Parcels
Purchase Agreement Initiated
® Previously Not Sought
'Ise. 018
ATTACHMENT
AGREEMENT FOR PURCHASE AND SALE AND
ESCROW INSTRUCTIONS
BY AND BETWEEN
JOSE and CARMELITA SIMO
("SELLER")
AND
LA QUINTA REDEVELOPMENT AGENCY
("BUYER")
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'M.e 1
TABLE OF CONTENTS
Page
PROPERTY.............................................................................................I........................ I
2.
PURCHASE PRICE.........................................................................................................2
2.1 Amount.................................................................................................................2
2.2 Payment of Purchase Price....................................................................................2
3.
INTENTIONALLY DELETED.......................................................................................2
4.
ESCROW..........................................................................................................................2
4.1 Opening of Escrow...............................................................................................2
4.2 Escrow Instructions...............................................................................................2
5.
CLOSE OF ESCROW......................................................................................................3
5.1 Close of Escrow; Closing Date.............................................................................3
5.2 Recordation; Release of Funds and Documents...................................................4
6.
DELIVERY OF DOCUMENTS REQUIRED FROM BUYER AND SELLER.............4
6.1 Buyer's Obligations..............................................................................................4
6.2 Seller's Obligations...............................................................................................4
7.
TITLE INSURANCE POLICY........................................................................................4
7.1 Title Policy............................................................................................................4
7.2 Payment for Title Policy....................................................................................... 5
9.
CONDITIONS PRECEDENT TO CLOSING.................................................................5
9.1 Conditions Precedent to Buyer's Obligations.......................................................5
9.2 Conditions Precedent to Seller's Obligations.......................................................6
10.
POSSESSION...................................................................................................................6
11.
ALLOCATION OF COSTS.............................................................................................6
14.
COVENANTS OF SELLER.............................................................................................7
15.
MISCELLANEOUS.........................................................................................................8
15.1 Assignment........................................................................................................... 8
15.2 Notices.................................................................................................................. 8
15.3 Fair Meaning.........................................................................................................8
15.4 Headings...............................................................................................................9
15.5 Choice of Laws; Litigation Matters......................................................................9
15.6 Nonliability of Buyer Officials.............................................................................9
15.7 Gender; Number....................................................................................................9
15.8 Survival.................................................................................................................9
15.9 Time of Essence....................................................................................................9
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low."
0"`0
15.10
Waiver or Modification .............
15.11
Broker's Fees ............................
15.12
Duplicate Originals ...................
15.13
Severability ...............................
15.14
Exhibits .....................................
15.15
Authority ...................................
15.16
Eminent Domain ......................
15.17
Entire Agreement; Amendment
EXHIBITS
Exhibit A
Legal Description of Property
Exhibit B
Form of Grant Deed
Exhibit C
Affidavit of Non -Foreign Entity
Exhibit D
Intentionally deleted
Exhibit E
Escrow Instructions
Exhibit F
Special Escrow Instructions
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Page
021
AGREEMENT FOR PURCHASE AND SALE
AND ESCROW INSTRUCTIONS
THIS AGREEMENT FOR PURCHASE AND SALE AND ESCROW INSTRUCTIONS
("Agreement") is made and entered into as of , 2010 ("Effective Date") by and
between Jose P. Simo and Carmelita P. Simo, husband and wife as joint tenants (collectively,
"Seller") and the LA QUINTA REDEVELOPMENT AGENCY, a public body corporate and
politic ("Buyer").
RECITALS:
A. Seller represents and warrants that they are the sole and exclusive fee title owners
of approximately 0.90 acres of vacant and unimproved real property located in the City of La
Quinta, County of Riverside, State of California, which real property is generally located on the
south side of Westward Ho Drive east of Dune Palms Road, is identified for assessment purposes
as APN 600-030-005 and is more particularly described in the legal description attached hereto
as Exhibit "A" (the "Real Property").
B. Buyer desires to purchase the Property (as that term is defined below) from Seller,
and Seller desires to sell the Property to Buyer, on the terms and conditions set forth herein.
C. On May 25, 2007, Buyer issued an offer letter to Seller indicating Buyer's
intention to acquire the Property; Buyer is acquiring the Property for the public purpose of
developing the Real Property as an affordable housing project.
D. Seller represents and warrants that they are not displaced persons, as that tern is
defined and used in the California Relocation Assistance Act (Cal. Govt. Code §§ 7260 et seq.)
or in the Relocation Assistance and Real Property Acquisition Guidelines (25 Cal. Code Regs.
§§ 6000 et seq.) because they do not occupy the Property, nor are they moving from the
Property. On that basis Seller represents and warrants that they are not entitled to relocation
assistance and expressly disclaim and waive any right, title or interest to such assistance.
AGREEMENT:
NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated
into this Agreement, and mutual covenants herein contained, the parties hereto agree as follows:
1. PROPERTY. Subject to all of the terms, conditions and provisions of this Agreement,
and for the consideration herein set forth, Seller hereby agrees to sell to Buyer and Buyer hereby
agrees to purchase from Seller the Real Property and Seller's interest in and to any
improvements and all tenements, hereditaments and appurtenances thereto, subject to the
Permitted Exceptions (as that term is defined in Section 7.1). The Real Property, the
improvements, and the Personal Property are hereinafter collectively referred to as the
"Property:'
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d:
2. PURCHASE PRICE.
2.1 Amount. The purchase price which Seller agrees to accept and Buyer agrees to
pay for the Property is the sum of TWO HUNDRED NINETY FIVE THOUSAND DOLLARS
($295,000.00) ("Purchase Price"). The parties agree that the Purchase Price reflects the full
payment that Seller will receive from Buyer for the Property.
2.2 Payment of Purchase Price. On or before 5:00 p.m. on the business day preceding
the "Closing Date" (as that term is defined in Section 5.1) or such earlier time as required by
"Escrow Holder" in order to close "Escrow" (as those terms are defined in Section 4.1) on the
Closing Date, Buyer shall deposit with Escrow Holder the Purchase Price.
3. INTENTIONALLY DELETED.
4. ESCROW.
4.1 Opening of Escrow. Closing of the sale of the Property shall take place through
an escrow ("Escrow") to be established within three (3) business days after the execution of this
Agreement by the parties hereto, with Four Seasons Escrow, Inc. ("Escrow Holder") at its office
located at 47-350 Washington Avenue, Suite 101, La Quinta, California 92253. The opening of
the Escrow (the "Opening of Escrow") shall be deemed to be the date that a fully executed copy
of this Agreement is delivered to the Escrow Holder. Escrow Holder is instructed to notify
Buyer and Seller in writing of the date of the Opening of Escrow.
4.2 Escrow Instructions. This Agreement, once deposited in Escrow, shall constitute
the joint escrow instructions of Buyer and Seller to Escrow Holder. Additionally, if Escrow
Holder so requires, Buyer and Seller agree to execute the form of escrow instructions that
Escrow Holder customarily requires in real property escrows administered by it. In the event of
any conflict or inconsistency between Escrow Holder's standard instructions and the provisions
of this Agreement, the provisions of this Agreement shall supersede and be controlling. The
parties additionally agree to the Escrow Holder's standard terms, a copy of which is attached
hereto as Exhibit E and to the additional supplemental instructions contained in Exhibit F.
TITLE MATTERS. Buyer shall obtain a preliminary title report prepared by Fidelity National
Title ("Title Company"), located at 301 E. Vanderbilt Way #400, San Bernardino, CA 92408,
describing the state of title of the Property together with copies of all underlying documents and
a map of plotted easements (collectively, the "Preliminary Title Report"). Buyer may, at its sole
cost and expense, obtain a current survey of the Property (the "Survey"). Notwithstanding
anything herein to the contrary, Seller shall be obligated to remove all monetary encumbrances
against the Property excluding non -delinquent real property taxes (except as otherwise provided
for in Section 8 below). Buyer shall notify Seller in writing of any objections Buyer may have to
title exceptions contained in the Preliminary Title Report or matters shown on the Survey (if
Buyer has obtained) no later than the date which is fifteen (15) days after the later of (i) its
receipt of the Preliminary Title Report or (ii) its receipt of the Survey ("Buyer's Objection
Notice"). Buyer's approval or disapproval of the matters set forth in the Preliminary Title Report
(and the Survey, if applicable) may be granted or withheld in Buyer's sole and absolute
discretion. Buyer's failure to provide Seller with a Buyer's Objection Notice within said period
shall constitute Buyer's approval of all exceptions to title shown on the Preliminary Title Report
2156/015610-0047
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and all matters shown on the Survey (if Buyer has obtained). Seller shall have a period of five
(5) days after receipt of Buyer's Objection Notice in which to deliver written notice to Buyer
("Seller's Notice") of Seller's election to either (i) agree to remove the objectionable items on
the Preliminary Title Report or Survey prior to the Close of Escrow, or (ii) decline to remove any
such title exceptions or Survey matters and terminate Escrow and the obligations of Buyer and
Seller to purchase and sell the Property under this Agreement. Seller's failure to provide Buyer
with Seller's Notice within said period shall constitute Seller's election to remove the
objectionable items on the Preliminary Title Report. If Seller notifies Buyer of its election to
terminate rather than remove the objectionable items on the Preliminary Title Report or Survey,
Buyer shall have the right, by written notice delivered to Seller within five (5) days after Buyer's
receipt of Seller's Notice, to agree to accept the Property subject to the objectionable items, in
which event Seller's election to terminate shall be of no effect, and Buyer shall take title at the
Close of Escrow subject to such objectionable items without any adjustment to or credit against
the Purchase Price. All exceptions to title shown on the Preliminary Title Report, other than
those which Seller may agree to remove pursuant to this Section 5, shall be deemed to have been
approved by Buyer unless Seller is notified otherwise in writing.
Upon the issuance of any amendment or supplement to the Preliminary Title
Report which adds additional exceptions, including any survey exceptions, the foregoing right of
review and approval shall also apply to said amendment or supplement. The process set forth
above for Buyer's review and Seller's response shall apply to any review and response with
respect to any amendment or supplement to the Preliminary Title Report, and the Closing shall
be extended for such period as is necessary to allow for that review and response process to be
completed.
5. CLOSE OF ESCROW.
5.1 Close of Escrow; Closing Date. Provided that all of the conditions of this
Agreement precedent to the "Close of Escrow" (as hereinafter defined) as set forth in Section 9
below have been satisfied (or waived by the appropriate party) prior to or on the Closing Date,
the Closing of this transaction for the sale and purchase of the Property shall take place on or
before February 26, 2010 ("Outside Closing Date"). Notwithstanding the foregoing, if Buyer
and Seller agree to advance the Closing, and so long as all of "Buyer's Conditions to Closing"
and all of "Seller's Conditions to Closing" (as those terms are defined in Section 9) have been
satisfied (or waived by the appropriate party), Seller and Buyer may elect to authorize the
Closing before the Outside Closing Date. The terms "Close of Escrow", "Closing Date" and the
"Closing" are used herein to mean the time Seller's grant deed conveying fee title to the Property
to Buyer is recorded in the Official Records of the Office of the County Recorder of Riverside
("Official Records"). If Escrow is not in a condition to close by the Outside Closing Date, either
party not then in default hereunder may, upon five (5) days advance written notice to the other
party and Escrow Holder, elect to terminate this Agreement and the Escrow. No such
termination shall release either party then in default from liability for such default. If neither
party so elects to terminate this Agreement and the Escrow, Escrow Holder shall close the
Escrow as soon as possible.
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5.2 Recordation; Release of Funds and Documents.
5.2.1 Escrow Holder is directed, on the Closing Date, to record in the Official
Records, the following documents in the order listed: (i) the grant deed (in the form attached
hereto as Exhibit `B") transferring title to the Property to Buyer ("Grant Deed"); and (ii) such
other and further documents as may be directed jointly by Buyer and Seller.
5.2.2 Upon the Closing, Escrow Holder shall deliver (i) the Purchase Price, less
any amount to pay property taxes and/or assessments allocable to Seller pursuant to Section 8,
and (ii) conformed copies of all recorded documents to both Buyer and Seller.
6. DELIVERY OF DOCUMENTS REQUIRED FROM BUYER AND SELLER.
6.1 Buyer's Obligations. Buyer agrees that on or before 5:00 p.m. of the last business
day immediately preceding the Closing Date, Buyer shall deposit or cause to be deposited with
Escrow Holder the following:
(a) the Purchase Price; and
(b) any and all additional funds, instruments or other documents required
from Buyer (executed and acknowledged where appropriate) as may be reasonably necessary in
order for the Escrow Holder to comply with the terms of this Agreement.
6.2 Seller's Obligations. Seller agrees that on or before 5:00 p.m. of the last business
day immediately preceding the Closing Date, Seller shall deposit or cause to be deposited with
Escrow Holder each of the following:
(a) the executed and acknowledged Grant Deed, subject only to the Permitted
Exceptions (defined hereafter);
(b) a Certificate of Non -Foreign Status (the "Non -Foreign Affidavit")
executed and acknowledged by Seller in the form attached hereto as Exhibit "C";
(c) all other funds, items, and instruments required from Seller (executed and
acknowledged where appropriate) as may be reasonably necessary in order for Escrow Holder to
comply with the provisions of this Agreement.
7. TITLE INSURANCE POLICY.
7.1 Title Policy. At the Closing Date, the Title Company, as insurer, shall issue a
CLTA owner's standard coverage policy of title insurance ("Title Policy"), in favor of Buyer, as
insured, showing Buyer as fee title owner of the Property, with liability in the amount of the
Purchase Price, subject only to the following (the "Permitted Exceptions"):
(a) non -delinquent real property taxes, subject to Seller's obligations to pay
certain taxes pursuant to Section 8 below;
06280202ao nano -4- 025
(b) covenants, conditions, restrictions and reservations of record that do not
interfere with the Buyer's proposed use of the Property, as determined in the sole and absolute
discretion of Buyer;
(c) easements or rights -of -way over the Property for public or quasi -public
utility or public street purposes;
(d) title exceptions approved or deemed approved by Buyer pursuant to
Section 4.2 above;
(e) any other exceptions approved by Buyer; and
(0 the standard printed conditions and exceptions contained in the CLTA
standard owner's policy of title insurance regularly issued by the Title Company.
7.2 Payment for Title Policy. Buyer shall be responsible for the charges for the Title
Policy with coverage up to the amount of the Purchase Price. Buyer shall pay any additional
coverage or endorsements it requests. Buyer may, at its election and expense, request an ALTA
extended policy of title insurance. Buyer shall also pay for the Survey, if applicable.
8. REAL PROPERTY TAXES AND ASSESSMENTS. Upon Buyer's acquisition of fee
title to the Property, the Property will be exempt from the payment of property taxes due to
Buyer's status as a public agency. Seller shall be responsible for paying (through Escrow at
Closing) all real and personal property taxes and assessments which are of record as of the
Closing Date and/or have accrued against the Property prior to (and including) the Closing Date
(notwithstanding whether such taxes and/or assessments are due and payable as of the Closing
Date). Buyer hereby acknowledges and agrees that Buyer will provide the funds necessary to
completely payoff, at Closing, any amounts outstanding under the City of La Quinta Assessment
District 2000-1. Seller shall be responsible for paying for all real or personal property taxes or
assessments assessed against the Property after the Closing for any period prior to the Closing.
9. CONDITIONS PRECEDENT TO CLOSING.
9.1 Conditions Precedent to Buyer's Obligations. The obligations of Buyer under this
Agreement to purchase the Property and close the Escrow shall be subject to the satisfaction or
signed written waiver by Buyer of each and all of the following conditions precedent
(collectively, "Buyer's Conditions to Closing"):
(a) on the Closing Date, the Title Company shall be irrevocably committed to
issue the Title Policy pursuant to Section 7 above insuring fee title to the Property as being
vested in Buyer, subject only to the Permitted Exceptions;
(b) Escrow Holder holds all instruments, documents, and funds required for
the Closing and will deliver to Buyer the instruments and funds, if any, accruing to Buyer
pursuant to this Agreement;
(c) except as otherwise permitted by this Agreement, all representations and
warranties by the Seller in this Agreement shall be true on and as of the Closing Date as though
2156/015610.1-0047 _
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made at that time and all covenants of Seller pursuant to this Agreement shall have been fulfilled
by the Closing Date;
(d) Seller is not in material default of any term or condition of this
Agreement;
(e) as of the Closing Date, no judicial or administrative challenges have been
presented or filed against the Agency or the City of La Quinta's actions in connection with
developing the Real Property as an affordable housing project, including, without limitation, any
challenge to environmental approvals or financing methods; and
In the event that any of Buyer's Conditions to Closing are not satisfied, deemed satisfied,
or waived in a writing signed by Buyer prior to the expiration of the applicable period for
satisfaction or waiver, Buyer may terminate this Agreement.
9.2 Conditions Precedent to Seller's Obligations. The obligations of Seller under this
Agreement shall be subject to the satisfaction or signed written waiver by Seller of each and all
of the following conditions precedent ("Seller's Conditions to Closing"):
(a) Escrow Holder holds the Purchase Price and all other instruments,
documents, and funds required for the Closing and will deliver to Seller the instruments and
funds, including but not limited to the Purchase Price (less Seller's closing costs) accruing to
Seller pursuant to this Agreement;
(b) except as otherwise permitted by this Agreement, all representations and
warranties by the Buyer in this Agreement shall be true on and as of the Closing Date as though
made at that time and all covenants of Buyer pursuant to this Agreement shall have been fulfilled
by the Closing Date; and
(c) Buyer is not in material default of any term or condition of this
Agreement; and
(d) The City of La Quinta Planning Commission shall have conducted a
review as required by Government Code section 65402.
In the event that any of Seller's Conditions to Closing are not satisfied, deemed satisfied,
or waived in a writing signed by Seller prior to the expiration of the applicable period for
satisfaction or waiver, Seller may terminate this Agreement.
10. POSSESSION. Exclusive possession of the Property shall be delivered by Seller to
Buyer on the Closing Date.
11. ALLOCATION OF COSTS.
11.1 Buyer's Costs. Buyer shall pay all closing costs associated with this Agreement
and the conveyance of the Property from Seller to Buyer, including any and all escrow and title
fees, recording fees, documentary transfer tax, the premium for the Title Policy (plus any
additional fee for ALTA extended coverage and/or title endorsements requested by Buyer), and
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Buyer's own attorney's fees in connection with this Agreement and the transactions
contemplated hereby.
11.2 Seller's Costs. Seller shall pay Seller's own attorney's fees, if any, in connection
with this Agreement and the transactions contemplated hereby.
12. CONDEMNATION. In the event that, prior to the Close of Escrow, any governmental
entity (other than the City) shall commence any proceedings of or leading to eminent domain or
similar type proceedings to take all or any portion of the Property, Buyer or Seller shall promptly
meet and confer in good faith to evaluate the effect of such action on the purposes of this
Agreement.
13. HAZARDOUS MATERIALS. To the best of Seller's knowledge, the Property has not at
any time been used for the purposes of storing, manufacturing, releasing or dumping Hazardous
Materials. For purposes of this Agreement, the term "Hazardous Materials" shall mean (1)
hazardous wastes, hazardous materials, hazardous substances, hazardous constituents, toxic
substances or related materials, whether solids, liquids or gases, including, but not limited to,
substances deemed as "hazardous wastes," "hazardous materials," "hazardous substances,"
"toxic substances," "pollutants," "contaminants," "radioactive materials," or other similar
designations in, or otherwise subject to regulation under, the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended ("CERCLA"), 42 U.S.C. § 9601
et seq.; the Toxic Substance Control Act ("TSCA"), 15 U.S.C. § 2601 et seq.; the Hazardous
Materials Transportation Act, 49 U.S.C. § 1802; the Resource Conservation and Recovery Act
("RCRA"), 42 U.S.C. § 9601, et seq.; the Clean Water Act ("CWA"), 33 U.S.C. § 1251 et seq.;
the Safe Drinking Water Act, 42 U.S.C. § 300 et seq.; the Clean Air Act ("CAA"), 42 U.S.C. §
7401 et seq.; the Hazardous Waste Control Law, California Health and Safety Code § 25025 et
seq., the Carpenter -Presley -Tanner Hazardous Substance Account Act, California Health and
Safety Code, Division 20, Chapter 6.8, the Hazardous Materials Release Response Plans and
Inventory Act, California Health and Safety Code, Division 20, Chapter 6.95, The Underground
Storage of Hazardous Substances Act, California Health and Safety Code, Division 20, Chapter
6.7, the Porter -Cologne Act, California Water Code § 13050 et seq. and in any permits, licenses,
approvals, plans, rules, regulations or ordinances adopted, or other criteria and guidelines
promulgated pursuant to the preceding laws or other similar federal, state or local laws,
regulations, rules or ordinances now or hereafter in effect relating to environmental matters
(collectively the `Environmental Laws"); and (ii) any other substances, constituents or wastes
subject to any applicable federal, state or local law, regulation, ordinance or common law
doctrine, including any Environmental Law, now or hereafter in effect, including, but not limited
to, (A) petroleum, (B) refined petroleum products, (C) waste oil, (D) waste aviation or motor
vehicle fuel, (E) asbestos, (F) lead in water, paint or elsewhere, (G) radon, (H) polychlorinated
biphenyls (PCB's) and (I) ureaformaldehyde.
14. COVENANTS OF SELLER. Seller agrees that during the period between the Effective
Date of this Agreement and the Closing Date:
(a) Seller shall maintain the Property in not less than the state of repair as that
existing on the Effective Date (excepting ordinary wear and tear);
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(b) Seller shall not convey, grant, lease, assign, mortgage, hypothecate, encumber, or
otherwise transfer (on or off record) the Property or any interest therein;
(c) Prior to Closing, Seller shall maintain Seller's existing insurance, if any, on the
Property; and
(d) Prior to the Closing, Seller shall not alter the physical condition of the Property or
introduce or release, or permit the introduction or release, of any Hazardous Materials in, from,
under, or on the Property.
15. MISCELLANEOUS.
15.1 Assignment. This Agreement shall be binding upon and shall inure to the benefit
of Buyer and Seller and their respective heirs, personal representatives, successors and assigns.
Seller may not assign or otherwise transfer this Agreement or any interest or right hereunder or
under the Escrow without the prior written consent and approval of the Buyer, which consent and
approval may be withheld in the Buyer's sole and absolute discretion. No provision of this
Agreement is intended nor shall in any way be construed to benefit any party not a signatory
hereto or to create a third party beneficiary relationship.
15.2 Notices. All notices under this Agreement shall be effective upon personal
delivery, via facsimile so long as the sender receives confirmation of successful transmission
from the sending machine, or three (3) business days after deposit in the United States mail,
registered, certified, postage fully prepaid and addressed to the respective parties as set forth
below or as to such other address as the parties may from time to time designate in writing:
To Seller: Jose and Carmelita Simo
80452 Atherstona Drive
Indio, California 92203
Telephone: (760) 702-7134
To Buyer: City of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
Attn: City Manager
Facsimile No.: (760) 777-7101
Copy to: Rutan & Tucker, LLP
611 Anton Boulevard, Suite 1400
Costa Mesa, California 92628-1950
Attn: M. Katherine Jenson, Esq.
Facsimile No.: (714) 546-9035
15.3 Fair Meaning. This Agreement shall be construed according to its fair meaning
and as if prepared by both parties hereto.
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15.4 Headings. The headings at the beginning of each numbered Section of this
Agreement are solely for the convenience of the parties hereto and are not a part of this
Agreement.
15.5 Choice of Laws; Litigation Matters. This Agreement 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 Municipal and Superior Courts 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 Agreement. Service
of process on Buyer shall be made in accordance with California law. Service of process on
Seller shall be made in any manner permitted by California law and shall be effective whether
served inside or outside California.
15.6 Nonliability of Buyer Officials. No officer, official, member, employee, agent, or
representatives of Buyer shall be liable for any amounts due hereunder, and no judgment or
execution thereon entered in any action hereon shall be personally enforced against any such
officer, official, member, employee, agent, or representative.
15.7 Gender; Number. As used in this Agreement, masculine, feminine, and neuter
gender and the singular or plural number shall be deemed to include the others wherever and
whenever the context so dictates.
15.8 Survival. This Agreement and all covenants to be performed after the Closing,
and, except as otherwise set forth herein, all representations and warranties contained herein,
shall survive the Closing Date and shall remain a binding contract between the parties hereto.
15.9 Time of Essence. Time is of the essence of this Agreement and of each and every
term and provision hereof, it being understood that the parties hereto have specifically negotiated
the dates for the completion of each obligation herein.
15.10 Waiver or Modification. 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 Buyer and Seller. 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.
15.11 Broker's Fees. Seller and Buyer represent and warrant to the other that neither
Buyer nor Seller has employed any broker and/or finder to represent its interest in this
transaction. Each party agrees to indemnify and hold the other free and harmless from and
against any and all liability, loss, cost, or expense (including court costs and reasonable
attorney's fees) in any manner connected with a claim asserted by any individual or entity for
any commission or finder's fee in connection with the conveyance of the Property arising out of
agreements by the indemnifying party to pay any commission or finder's fee.
15.12 Duplicate Originals. This Agreement may be executed in any number of
duplicate originals, all of which shall be of equal legal force and effect.
2156/015610-0047
1062802.02 a01/14/10 ,N�
15.13 Severability. If any term, covenant or condition of this Agreement or the
application thereof to any person, entity, or circumstance shall, to any extent, be invalid or
unenforceable, the remainder of this Agreement, or the application of such term, covenant, or
condition to persons, entities, or circumstances other than those as to which it is held invalid or
unenforceable, shall not be affected thereby and each term, covenant or condition of this
Agreement shall be valid and enforceable to the fullest extent permitted by law.
15.14 Exhibits. The following exhibits are attached hereto and incorporated herein by
this reference:
Exhibit "A"
Legal Description of Property
Exhibit "B"
Grant Deed
Exhibit "C"
Non -Foreign Affidavit
Exhibit "D"
Intentionally deleted
Exhibit "E"
Escrow Instructions
Exhibit "F"
Special Escrow Instructions
15.15 Authority. The person(s) executing this Agreement 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 Agreement on behalf of said party, (iii) by so
executing this Agreement such party is formally bound to the provisions of this Agreement, and
(iv) the entering into this Agreement does not violate any provision of any other agreement to
which such party is bound.
15.16 Eminent Domain. Buyer and the City of La Quinta have the power of eminent
domain within certain jurisdictional limits of the City of La Quinta. In the event Seller had
determined not to sell the Real Property to Buyer, staff would have potentially recommended to
the Board of Directors of Buyer or to the City Council of the City of La Quinta that Buyer and/or
the City of La Quinta, after providing notice to Seller and holding a hearing as required by
applicable law, consider adopting a resolution of necessity and thereafter commencing
proceedings to acquire the Real Property by the exercise of its power of eminent domain. It is
the intent of Seller to have this acquisition completed as a tax deferred exchange pursuant to
Sections 1031 or 1033 of the Internal Revenue Code of 1986, as amended, and Section 18662 of
the California Revenue and Taxation Code. Notwithstanding the foregoing, Buyer makes no
representation, warranty, or guaranty to Seller or to any other person, firm, or entity concerning
the tax treatment by any taxing authority, including but not limited to, the Internal Revenue
Service, of the conveyance of the Real Property to Buyer, including the tax treatment and tax
consequences of an acquisition under the threat of condemnation. Seller acknowledges that
Buyer is not providing tax advice to Seller or to any person, firm, or entity and Seller further
acknowledges and agrees that Seller must consult Seller's own tax advisor concerning the tax
treatment, tax implications, and tax consequences of the sale of the Real Property to Buyer.
15.17 Entire Agreement; Amendment. Except as set forth above, this Agreement and
the exhibits incorporated herein contain the entire agreement of Buyer and Seller with respect to
the matters contained herein, and no prior agreement or understanding pertaining to any such
matter shall be effective for any purpose. No provisions of this Agreement may be amended or
2156/015610-0047
1062802.02 a01/14/10 "1 O O 1_
'INN • J li
modified in any manner whatsoever except by an agreement in writing signed by duly authorized
officers or representatives of each of the parties hereto.
[END -- SIGNATURE PAGE FOLLOWS]
2156/015610.0047 032
1062802.02 a01/14/10
IN WITNESS WHEREOF, Buyer and Seller each hereby represents that it has read this
Agreement, understands it, and hereby executes this Agreement to be effective as of the day and
year first written above.
ATTEST:
Veronica J Montecino, CMC, City Clerk
APPROVED AS TO FORM:
RUTAN & TUCKER, LLP
am
M. Katherine Jenson, Agency Counsel
SELLER:
Jose P. Simo
Carmelita P. Simo
BUYER:
LA QUINTA REDEVELOPMENT AGENCY,
a public body corporate and politic
am
Thomas P. Genovese, Executive Director
[end of signatures]
2156/015610-0047 -I2.-
1062802.02 a01/14/10 1 O n
N.� J
Four Seasons Escrow, Inc., agrees to act as Escrow Holder in accordance with the terms of this
Agreement that are applicable to it.
Four Seasons Escrow, Inc.
By: _
Name:
Its:
2156/015610-0047
106280202 a01/14/10 -13 C 3 4
EXHIBIT "A"
LEGAL DESCRIPTION OF PROPERTY
APN: 600-030-005
The real property in the City of La Quinta, County of Riverside, State of California, described as:
Lot 2, of Parcel Map 18629 as shown by map on file in Book 113, Pages 54 and 55 of Maps in
the offices of the County Recorder of Riverside County, California.
2156/015610-0047 O n G
1062802.02 a01/14/10 J�7
EXHIBIT "B"
FORM OF GRANT DEED
[SEE ATTACHED]
21561015610-0047
1062802 02 .01/14110
.10.e
p36
RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:
LA QUINTA REDEVELOPMENT AGENCY
78-495 Calle Tampico
La Quinta, CA 92253
Attn: Executive Director
SPACE ABOVE THIS LINE FOR RECORDER'S USE
(Exempt from Recordation Fee per Gov. Code § 6103)
GRANT DEED
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged,
Jose and Carmelita Simo, husband and wife as joint tenants, hereby grant to the LA QUINTA
REDEVELOPMENT AGENCY, a public body corporate and politic, that certain real property
located in the City of La Quinta, County of Riverside, State of California, legally described on
Attachment No. 1, which is attached hereto, and incorporated herein by this reference, subject to
all matters of record.
Dated: 20010
Jose P. Simo
Carmelita P. Simo
2156/015610-0047 2 031
1062802.02 a01/14/10 •�.
State of California )
County of )
On
before me,
(insert name and title of the officer)
personally appeared , who proved to me on the basis of
satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within
instrument and acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or
the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
(Seal)
2156/015610-0047
1062802.02 a01/14/10 -3 ' 038
ATTACHMENT NO. 1
LEGAL DESCRIPTION OF PROPERTY
APN: 600-030-005
The real property in the City of La Quinta, County of Riverside, State of California, described as:
Lot 2, of Parcel Map 18629 as shown by map on file in Book 113, Pages 54 and 55 of Maps in
the offices of the County Recorder of Riverside County, California.
2156/015610-0047
1062802.02 a01/14/10 Attachment 1 to Grant Deed 039
39
CERTIFICATE OF ACCEPTANCE
THIS IS TO CERTIFY that the interest in real property conveyed by a Grant Deed dated
from Jose and Carmelita Simo, husband and wife as joint tenants, to the
La Quinta Redevelopment Agency, a public body corporate and politic ("Agency"), is hereby
accepted by the Agency by the signature of the undersigned agent on behalf of the Agency
pursuant to the authority conferred upon him by Resolution of the Agency, adopted on
, 2010, and that the Agency, as the Grantee, by its said duly authorized agent, hereby
consents to the recordation thereof.
DATED:
LA QUINTA REDEVELOPMENT AGENCY,
public body corporate and politic
By:
Name: Thomas P. Genovese
Executive Director, La Quinta Redevelopment
Agency
I HEREBY ATTEST to the authenticity of the foregoing signature and to the said adoption of
the said Resolution of his general authority to so act and certify that said authority
has not been revoked by any subsequent Resolution or order of the Agency.
DATED:
Veronica J. Montecino, CMC, Agency Secretary, La Quinta Redevelopment Agency
106202.02 A111 Attachment 1 to Grant Deed
1062802.02 a01/14/10 040
r
°wa • .
EXHIBIT "C"
AFFIDAVIT OF NON -FOREIGN ENTITY
TO: LA QUINTA REDEVELOPMENT AGENCY ("Buyer")
The Internal Revenue Code of 1954 ("Code") (26 U.S.C. Sections 1445, 7701) provides that a
transferee of a U.S. real property interest must withhold tax if the transferor is a foreign person.
To inform the transferee that withholding of tax is not required upon transfer of that certain U.S.
real property interest described in Exhibit "A" to the Agreement for Purchase and Sale and
Escrow Instructions dated , 2010, and incorporated herein by reference
("Property"), that the undersigned ("Seller") hereby certifies the following:
Seller is not a foreign corporation, foreign partnership, foreign trust or foreign estate (as
those terms are defined in the Internal Revenue Code and Income Tax Regulations); and
2. The U.S. taxpayer identification number for Seller is ; and
3. The address for mailing purposes of Seller is: ;
and
4. Seller understands that this certification may be disclosed to the Internal Revenue Service
by Buyer and that any false statement contained herein could be punished by fine,
imprisonment, or both.
Under penalty of perjury, I declare that I have examined this Certification and to the best of my
knowledge and belief, it is true, correct, and complete, and I further declare that I have authority
to sign this document on behalf of Seller.
Dated: 2010 SELLER:
Jose P. Simo
Carmelita P. Simo
2156/015610-0047 041
1062802.02 a01/14/10 ••ti
EXHIBIT "D"
Intentionally deleted
2156/015610-0047
1062802.02 A1/14/10 042
EXHIBIT "E"
ESCROW INSTRUCTIONS
[TO BE INSERTED ONCE RECEIVED FROM ESCROW CO]
2156/015610-0047
1062802.02 a01/14/10
,,�:�; 043
EXHIBIT "F"
SPECIAL ESCROW INSTRUCTIONS
PRORATIONS AND/OR ADJUSTMENTS:
Escrow Holder is authorized and instructed to prorate and/or make adjustments on the
following items as of the close of escrow date:
TAXES ON REAL PROPERTY:
Prorate taxes, including all tax bill items, except taxes on personal property not conveyed
through this escrow, based on the current year's taxes, except between July ls` and the date you
are furnished current taxes, based on immediate preceding year's taxes. In each case use the
figures furnished you by the title company, without liability on your part as to their correctness.
Owner to pay prior to delinquency, supplemental tax bills, and any taxes on personal property
not being sold herein, which taxes are a lien on the real property being conveyed and you are not
to be concerned herewith.
Refund, if any, from the Riverside County Tax Collector, for refund of taxes buyer is
being debited for herein, is to be handled outside of escrow. Chicago Title Company, its officers
and employees are relieved of all responsibility and liability in connection therewith.
2156/015610-0047 ( 044
1062802.02 a01/14/10
Tiht 4 4 Qum&
COUNCIL/RDA MEETING DATE: January 19, 2010
ITEM TITLE: Public Hearing to Adopt a Resolution
Approving the Fourth Five -Year Implementation
Plan for Fiscal Years 2009-2010 to 2013-2014
and the Third Ten -Year Affordable Housing
Compliance Plan for La Quinta Redevelopment
Project Area Nos. 1 and 2
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Adopt a Resolution approving the Fourth Five -Year Implementation Plan for La
Quinta Redevelopment Project No. 1 and Project No. 2.
FISCAL IMPLICATIONS:
None at this time.
BACKGROUND AND OVERVIEW:
California Community Redevelopment Law requires that the Agency adopt an
implementation plan for each of its redevelopment project areas every five years.
The Agency previously adopted three Five- Year Implementation Plans; the first in
Fiscal Year 1994-1995, the second in 1999-2000, and the third in 2004-2005.
Each of these previous Implementation Plans included Affordable Housing
Compliance Plans that identified how the Agency would achieve its mandate for
affordable housing production, replacement housing, and proportional expenditures.
Attachment 1 to this report contains the Fourth Five -Year Implementation Plan for
the La Quinta Redevelopment Agency. The Implementation Plan generally identifies
the Agency's anticipated revenue and expenditures for Fiscal Years 2009-2010
through 2013-2014, and how the anticipated expenditures will achieve
redevelopment goals, address blight, and increase and improve the supply of
affordable housing in La Quinta Redevelopment Project Nos. 1 and 2. The first
section of the document provides a general overview about redevelopment and the
Agency. The second section focuses on non -housing activities for La Quinta
Redevelopment Project Nos. 1 and 2. The redevelopment goals, blighting
04S
conditions, anticipated revenues and expenditures, and project/program proposals
are detailed for both Project Areas. The third section provides an update to the
Agency's Ten- Year Affordable Housing Compliance Plan for Fiscal Years 2004-
2005 through 2013-2014, discussing affordable housing activities in both Project
Areas. It identifies the Agency's affordable housing needs for the ten year period,
and the means through which the Agency will address these needs.
Anticipated Non -Housing Fund Expenditures
The primary purpose for the Fourth Five- Year Implementation Plan is to identify the
projects and programs (and their related expenditures) that the Agency will
implement during the five-year planning period to achieve its redevelopment goals,
to correct blighting conditions, and to increase and improve the supply of
affordable housing. There are several capital improvement and economic
development projects proposed for the next five years in both Project Areas, with a
total estimated cost of $93 million.
The State Legislature is reallocating local government revenue to help close the
State's massive budget gap. Known as the Supplemental Educational Revenue
Augmentation Fund ("SERAF"), the State is seeking $2.05 billion from
redevelopment agencies in Fiscal Years 2009-2010 and 2010-2011. These funds
will be distributed to local school districts and will reduce the amount of State
General Fund revenue required to achieve Proposition 98 School Funding Needs.
The Agency's total SERAF payment is anticipated to be $28,433,054;
$23,582,367 in Fiscal Year 2009-2010 and $4,850,687 in Fiscal Year 2010-
2011. The Agency has secured a $10 million loan from the City to fund a portion
of the $23,582,367 2009-2010 SERAF payment; the remaining $13,582,367 will
be funded from reallocating capital projects and debt service funds and available
2010-2011 Non -Housing Tax Increment Revenue. The Agency anticipates funding
the 2010-201 1 payment from Non -Housing Fund Tax Increment Revenue.
While efforts have been mounted to legally challenge the constitutionality of these
takeaways, the five-year expenditure program presented in the Implementation Plan
assumes that the Agency must make these payments and this revenue will not be
available for non -housing Agency projects and programs. If these funds remain
with the Agency, there will be additional funds for non -housing redevelopment
projects.
Anticipated Housing Fund Expenditures
The Affordable Housing Compliance Plan has also been updated. The Housing
Compliance Plan identifies the Agency's affordable housing mandates, and the
need to continue to aggressively implement projects and programs to meet these
mandates. Generally, the Agency must ensure that at least 15 percent of all
046
privately developed or substantially rehabilitated dwellings in both of its Project
Areas are affordable to very low-, low- and moderate -income households; of this
15%, at least 40% must be affordable to very low-income households. Further, if
the Agency directly facilitates affordable housing development, at least 30% of the
Agency sponsored dwellings must be affordable to very low-, low- and moderate -
income households, and of this amount at least 50% must be affordable to very
low-income households. In order to ensure that these dwellings remain affordable
to very low-, low- and moderate -income households, the Agency must record
covenants against each affordable dwelling to ensure that the unit remains
affordable to said households for not less than 45 years for owner -occupied
dwellings, and 55 years for rental dwellings.
The aforementioned affordable housing mandate commenced when Project No. 1
was established in 1983, and when Project No. 2 was established in 1989. From
these adoption dates through Fiscal Year 2008-2009, a total of 13,028 dwellings
were constructed in both Project Areas through private sector activities. The
Agency directly developed an additional 80 units of affordable housing during this
period (Vista Dunes). This activity generated the need for the Agency to ensure
that 1,978 dwellings are affordable units, of which 794 are affordable to very low-
income households (featuring long term covenants to ensure their continued
affordability) during the next ten-year Housing Compliance Plan period. To date,
the Agency has facilitated the production of 1,052 affordable units of which 558
are affordable to very low-income households. Thus, the Agency currently has a
926 unit deficit. During the remaining five years of the Housing Compliance Plan
period, it is projected that private development and substantial rehabilitation
activity will create the need to produce an additional 143 affordable dwellings of
which 57 must be affordable to very low-income households. The Agency
anticipates producing 475 affordable units, of which 111 will be affordable to very
low-income households. Given these projections, the Agency estimates that it will
have a 594 unit deficit at the end of the ten year Housing Compliance Plan period.
During the remaining five years of the ten-year Housing Compliance Plan period,
the Agency anticipates spending a total of $83.7 million on affordable housing
projects and programs. The Agency has plans to purchase property, substantially
rehabilitate single- and multi -family dwellings and facilitate new affordable housing
development. Sample projects include the Washington Street Apartments, Centre
Pointe, and Village Live -Work Housing.
The inclusionary housing obligation throughout the remaining life of the
Redevelopment Plans is estimated, based on the potential build out of land zoned
for residential use in the Project Areas. The projected amount of residential
development in the Project Areas has increased since the last Implementation Plan
was adopted in 2005, resulting in a higher inclusionary housing obligation. This is
due to the General Plan land use designation revisions that changed several
047
commercial parcels to residential uses, as well as development approvals which
allowed building condominium units instead of hotel units. Based upon current land
use projections, the Agency will need to construct a total of 2,307 affordable
units, including 925 very low-income units. Thus the Agency anticipates meeting
its production mandates by the end of the term of the Redevelopment Plans for
both Project Areas.
Aggregation of Affordable Housing Production
Section 33413(b)(2)(A)(v) of the CRL permits an agency to aggregate its housing
production fulfillment among all project areas within its jurisdiction, provided the
agency makes a finding that such aggregation will not exacerbate racial, ethnic or
economic segregation. The benefit of such a finding is that it enables the Agency
to apply affordable units produced in one Project Area to fulfill production
mandates in another Project Area on a 1-for-1 basis, rather than on a 2-for-1 basis.
The Agency made such a finding approximately ten years ago and is being asked to
renew this finding today. The attached Resolution has been drafted to include this
finding.
Table 1 shows the median household income and racial composition of each Project
Area. Project No. 1 has a lower median household income and is a more racially
diverse population than Project No. 2.
Income & Race (2009)
Table 1
La Quinta Redevelopment
Project Areas
Project No. 1
%
Project No. 2
%
Median Household Income
57,697
76,087
Racial Composition
White Alone
15,899
68%
11,475
78%
Black Alone
348
1%
211
1%
American Indian Alone
173
1%
85
1%
Asian Alone
432
2%
523
4%
Pacific Islander Alone
22
0%
10
00/0
Some Other Race Alone
5,424
23%
1,815
12%
Two or More Races
1,097
5%
635
4%
Hispanic Origin (Any Race)
11,736
50%
3,640
25%
Total Population
23,396
100%
14,754
100%
Source: ESRI Business Analyst
Since the adoption of the Redevelopment Plans, approximately 70 percent of the
affordable units produced by the Agency are in Project No. 2. The majority of
affordable housing projects projected over the next five years are also located in
Project No. 2. The production of affordable units in Project No. 2 increases the
opportunity for lower income persons to move into a higher income area.
Additionally, Agency activities do not limit persons of any particular race or
ethnicity from moving into one Project Area or the other. Thus, aggregating
housing production fulfillment among Project No. 1 and Project No. 2 does not
exacerbate racial, ethnic, or economic segregation. Aggregating housing
production fulfillment among both Project Areas allows the Agency to create more
affordable housing opportunities where they are most needed, rather than limiting
affordable housing production to one area.
Public Hearing Notification
California Redevelopment Law requires that the Agency conduct a public hearing
prior to final consideration of the Fourth Five -Year Implementation Plan. The public
hearing notice was published on three consecutive weeks on December 17, 24, 31,
2009 in The Desert Sun, and posted for the same period in both Project Areas.
A final draft of the Fourth Five -Year Implementation Plan will be released after the
public hearing. The final document will include changes requested by the Agency
Board, if any, as well as a table listing all redevelopment projects the Agency has
accomplished from the inception of the Project Areas to date.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency Board are:
1. Adopt a Resolution approving the Fourth Five -Year Implementation Plan for
La Quinta Redevelopment Project No. 1 and Project No. 2; or
2. Adopt a Resolution approving the Fourth Five -Year Implementation Plan for
La Quinta Redevelopment Project No. 1 and Project No. 2 with amendments;
or
3. Do not approve the Fourth Five -Year Implementation Plan and provide staff
with alternative direction.
Respectfully submitted,
Assistant City Manager -Development Services
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachment:1: Fourth Five -Year Implementation Plan for La Quinta
Redevelopment Projects Nos. 1 and 2
ME
RESOLUTION NO. RA 2010-
A RESOLUTION OF THE LA QUINTA
REDEVELOPMENT AGENCY ADOPTING THE
FOURTH FIVE-YEAR IMPLEMENTATION PLAN
FOR LA QUINTA REDEVELOPMENT PROJECT
NO. 1 AND PROJECT NO. 2
WHEREAS, Section 33490(a)(1)(A) of the California Community
Redevelopment Law, Health & Safety Code 33000 etc, seq. ("CRL") requires all
redevelopment agencies to adopt an Implementation Plan every five years following
a noticed public hearing; and
WHEREAS, the City Council of the City of La Quinta ("City" or "City Council",
as applicable) approved and adopted the Redevelopment Plan for Redevelopment
Project No. 1 ("Project No. 1 "), by Ordinance No. 43 on November 29, 1983, as
amended by Ordinance No. 258 on December 20, 1994, Ordinance No. 264 on March
21, 1995, Ordinance No. 388 on August 19, 2003 and Ordinance No. 402 on March
16, 2004; and
WHEREAS, the City Council approved and adopted the Redevelopment Plan for
Redevelopment Project No. 2 ("Project No. 2"), by Ordinance No. 139 on May 16,
1989, as amended by Ordinance No. 259 on December 20, 1994, Ordinance No. 399
on February 3, 2004, Ordinance No. 403 on March 16, 2004 and Ordinance No. 404
on March 16, 2004; and
WHEREAS, Section 33490(a)(1)(A) of the CRL requires that an
implementation plan contain the specific goals and objectives of an agency for its
project areas, the specific programs, including potential projects, and estimated
expenditures proposed to be made during the next five years, and an explanation of
how the goals and objectives, programs, and expenditures will eliminate blight
within the project area and implement the requirements of Sections 33334.2,
33334.4, 33334.6, and 33413 of the CRL; and
WHEREAS, Section 33490(c) of the CRL authorizes redevelopment agencies
to adopt a single redevelopment implementation plan for all redevelopment areas
within a community; and
WHEREAS, pursuant to Section 33490 of the CRL, the Agency has prepared
an Implementation Plan for Project No. 1 and Project No. 2 for Fiscal Years 2009-
2010 through 2013-2014, which includes an Update to a Ten -Year Affordable
Housing Compliance Plan for years 2004-2005 through 2013-2014 (attached as
Exhibit A); and
051
Resolution No. RA 2010-
Fourth Five Year Implementation Plan
Adopted: January 19, 2010
Page 2
WHEREAS, pursuant to Section 33490(a)(1)(B) of the CRL, Agency staff has
determined that the Agency's adoption of the Implementation Plan and the Update
to the Ten -Year Affordable Housing Compliance Plan does not constitute an
approval of any specific program, project or expenditure and does not constitute a
project within the meaning of the California Environmental Quality Act (Public
Resources Code Section 21000) ("CEQA"); and
WHEREAS, Section 33413(b)(2)(A)(v) of the CRL provides that the Agency
may aggregate affordable housing production needs among its Project Areas if a
finding is made that such aggregation will not exacerbate racial, ethnic or economic
segregation; and
WHEREAS, the Agency conducted a duly noticed public hearing on the
proposed Implementation Plan, including an Update to the Ten -Year Housing
Compliance Plan, and proposal to aggregate housing production needs related
thereto on January 19, 2010.
NOW, THEREFORE, THE LA QUINTA REDEVELOPMENT AGENCY DOES
HEREBY RESOLVE, ORDER, AND DETERMINE AS FOLLOWS:
Section 1. All actions required to be taken by the Agency precedent to
adoption of the Fourth Five -Year Implementation Plan for Fiscal Years 2009-2010
through 2013-2014, including the Update to the Ten -Year Affordable Housing
Compliance Plan for Fiscal Years 2004-2005 through 2013-2014, for La Quinta
Redevelopment Project No. 1 and Project No. 2, pursuant to Health and Safety
Code Section 33490 including, but not limited to, holding a duly noticed public
hearing, have been taken in accordance with applicable law.
Section 2. The Agency finds and determines that in accordance with
Health and Safety Code Section 33490(a)(1)(B), the adoption of the Fourth Five -
Year Implementation Plan for Fiscal Years 2009-2010 through 2013-2014,
including the Update to the Ten -Year Affordable Housing Compliance Plan for Fiscal
Years 2004-2005 through 2013-2014, for La Quinta Redevelopment Project No. 1
and Project No. 2, is not a "project" within the meaning of the California
Environmental Quality Act (Public Resources Code §21000 et. Seq.).
Section 3. The Agency does hereby approve and adopt the Fourth Five -Year
Implementation Plan for Fiscal Years 2009-2010 through 2013-2014, including the
Update to the Ten -Year Affordable Housing Compliance Plan for Fiscal Years 2004-
052
Resolution No. RA 2010-
Fourth Five Year Implementation Plan
Adopted: January 19, 2010
Page 3
2005 through 2013-2014, for La Quinta Redevelopment Project No. 1 and Project
No. 2.
Section 4. That the aggregation of housing production activities among the
Project Areas will not cause or exacerbate racial, ethnic or economic segregation.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the La Quinta
Redevelopment Agency held this 191h day of January, 2010.
AYES:
NOES:
ABSENT:
ABSTAIN:
LINDA EVANS, Agency Chair
La Quinta Redevelopment Agency
ATTEST:
VERONICA MONTECINO, Agency Secretary
La Quinta Redevelopment Agency
(AGENCY SEAL)
APROVED AS TO FORM:
M. KATHERINE JENSON, Agency Counsel
La Quinta Redevelopment Agency
053
Resolution No. RA 2010-
Fourth Five Year Implementation Plan
Adopted: January 19, 2010
Page 4
EXHIBIT A
FOUTH FIVE-YEAR IMPLEMENTATION PLAN FOR LA QUINTA REDEVELOMPENT
PROJECT NO. 1 AND PROJECT NO. 2.
Attached as a separate document.
054
ATTACHMENT I
FOURTH
FIVE YEAR
IMPLEMENTATION PLAN
LA QUINTA
REDEVELOPMENT AGENCY
Fiscal Years 2009-10 THROUGH 2O13-14
Prepared by:
RSG
INTELLIGENT COMMUNITY DEVELOPMENT
055
TABLE OF CONTENTS
INTRODUCTION................................................................................................................................. 3
LegalAuthority..................................................................................................................................................................
3
ImplementationPlan Objectives................................................................................................................................
3
DocumentOrganization................................................................................................................................................4
WHAT IS REDEVELOPMENT?.......................................................................................................5
The Public Value & Benefits of Redevelopment................................................................................5
BLIGHT...............................................................................................................:::..r.......................................................5
.r._., ..: .,;
TAX INCREMENT FINANCING ........................................... .......................:;,,.............. ................ I ......................
6
20 Percent Low and Moderate Income Housing Set -Aside Fund
6
Pass -Through Payments ................... ........... .... ...................... ........ .... ................7
State Takeaways — SERAF Payments........................'............................ 4,..,:.,...................... ..........
7
WHAT IS A REDEVELOPMENT PLAN?...................a...................................................... .........................................
7
ABOUT THE AGENCY & PROJECT AREAS ......... ......... ... ...............
. . ............
9
ACCOMPLISHMENTS................................................
r,7*................................................................12
REDEVELOPMENT PLAN GOALS .................................... .................................................................
15
REDEVELOPMENT WORK PROGRAM ..1............................................................................17
REDEVELOPMENT (NON -HOUSING)., CASH FLOW ............... ....................23
INTRODUCTION......................................................!.r................:::„i.................................................26
Affordable Housing Work Program .....L:............................................27
AFFORDABLE HOUSING COMPLIANCE...................................................................................32
.... ... Blueprint for Agency Housirig:¢ctivities . :..;.... .........32
HOUSINGPRODUCTION ....................................... .....:................................................................................................
32
REPLACEMENT'�O .... .................j..-.......................................................................................37
HOUSING PROGRAM CASH FLOW ANALYSIS ................ .............................................................................. ..38
Expenditures by Household' Types l..............................................................................38
PRIOR -FIVE-YEAR HOUSINGFUND EXPENDITURES .......................................................................42
UnitsAssisted,by Housing Fund.............................................................................................................
42
r .Housing Units Constructed During Prior Implementation Plan Without Housing Funds . .... ..... ........
42
APP�VDIX 1...............................ki.:...............................................................................................45
N, .l —t.
Summay of Pass ThroughlAgreements...............................................................................................45
Project-No. 1 ................................................................................................................................45
Coachella Valley Mosquito Abatement District.......................................................................................
45
Coachella Valley Unified
School District.................................................................................................
45
CoachellaValley Water
District...............................................................................................................
45
County General Fund, Library, and Fire Districts....................................................................................
46
DesertCommunity!College.....................................................................................................................
46
Desert Sands Unified School District......................................................................................................
46
Statutory Pass Through Payments.........................................................................................................
47
ProjectNo. 2.....................................................................................................................................................................48
Coachella Valley Community College District.........................................................................................
48
Coachella Valley Mosquito and Vector Control District...........................................................................
48
Coachella Valley Recreation and Park District........................................................................................
48
Coachella Valley Water District...............................................................................................................
48
056
Countyof Riverside................................................................................................................................. 48
Riverside County Superintendent of Schools.......................................................................................... 48
Desert Sands Unified School District...................................................................................................... 48
StatutoryPass Through Payments......................................................................................................... 48
APPENDIX2......................................................................................................................................SD
RedevelopmentProject Inventory........................................................................................................SO
APPENDIX3.......................................................................................................................................51
Glossary of Housing Terms.....................................................................!..............................................51
Duration of Affordability Covenants.......................................................::_:....:..,:....................................................51
Affordability Income and Cost Levels................................................:,1................................................................ 52
yr
ii 051
INTRODUCTION
About This Implementation Plan
Every five years, redevelopment agencies are required to adopt implementation plans that establish
five-year operational and financial work programs for their redevelopment, economic development, and
affordable housing programs and projects. This document is the Fourth Five Year Implementation Plan
("Implementation Plan") for the La Quinta Redevelopment Agency ("Agency"); it covers the five-year
planning period of Fiscal Years 2009-10 through 2013-14 for La Quinta Redevelopment Project No. 1
("Project No. 1") and La Quinta Redevelopment Project No. 2 ("Project`No. 2"), collectively referred to
as the "Project Areas". This Implementation Plan also updates I the Agency's Ten -Year Housing
Compliance Plan ("Housing Compliance Plan") which outlines the``Agency's affordable housing
obligations and initiatives for the current 10-year compliance period (Fiscal Years 2004-05 to 2013-14).
c € e
LEGAL AUTHORITY
In 1993, the Legislature passed Assembly Bill 1290,(Cha
California Community Redevelopment Law Reform
redevelopment law (Health and Safety Code §§33000 f
legislation as part of a major effort to increase N
redevelopment agencies. One notable change was the a
CRL, which required redevelopment agenciesito adopt
areas on or before December 31, 1994,''and every.`fr '
requires that an implementation plan present: ,
The redevelopment agency`.s'�goals and objectiN
for the next five years, including astirnated expel
An explanation of how the goals and'�objectivesi
blight and promote affordable housing within the
A separate section that addresses theredevelr
including an -agency's projeptedl low and model
produceland/oi replace affordable housing.
pter 942, Statutes of 1993), which enacted the
tct and 'made sweeping changes to state
4 sege) ("CRL"). The Legislature passed this
rth the;, effectiveness and accountability of
ddition'of Article 16.5 (§§33490 et seq.) to the
five year implementation plans for all project
✓e years thereafter. CRL Section 33490(a)
projects within the project areas
rams, projects, and expenditures will eliminate
ct areas, and
4 agency's affordable housing responsibilities,
icome housing fund expenditures and plan to
se required `contents, an jimplementation plan serves as more than just a compliance
that only adheres, -,to the`CRL's legal mandates. An implementation plan also affords the
%,to thoughtfully craft'a purposeful and deliberate strategy that guides redevelopment agency
for a five year period.;
IMPLEMENTATION PLAN,`,OBJECTIVES
The Agency's objectives for!this Implementation Plan are to:
• Establish focused redevelopment and housing strategies for the next five years that provide a
roadmap for decision -making about resource allocation, budget, and community engagement.
• Create an administrative management tool for Agency staff that provides a measurable, track -able,
and programmatic work plan for the Agency's operations.
• Provide educational and informative background about the Agency's role, powers, and tools and a
historical overview of the Agency.
058
• Furnish data and information to preserve and produce affordable housing.
DOCUMENT ORGANIZATION
This Implementation Plan is organized into three sections:
Section I: Overview and Background. This section provides an overview of redevelopment in
California, and a profile description of the Agency and its Project Areas.
Section II: Redevelopment Implementation Plan. This section presents the Implementation Plan,
including a comprehensive work program of projects and programs., The projects and programs
contained in the work program represent the Agency's strategic `priorities, and implementation of
each project or program will be subject to funding availability end subsequent Agency approval.'
Section III: Housing Compliance Plan Update. This section updates the housing compliance plan
for the current 10-year compliance period (Fiscal Years+2004-05 to 2013-14), identifies the Agency's
affordable housing production requirements, affordable housing project proposals, and projected
affordable housing revenues and expenditures.i':
A
'Al `'1=;
�Nil
Ni
' CRL Section 33490(a)(1)(B) provides that the adoption of an implementation plan shall not constitute an approval program of any specific,
project, or expenditure and shall not change the need to obtain any required approval of a specific program, project, or expenditure from the
agency or community.
059
WHAT IS REDEVELOPMENT?
The Public Value & Benefits of Redevelopment
In 1952, California voters adopted Article XVI, Section 16 Redevelopment by the Numbers:
allowing the provision of tax increment financing for €
redevelopment of blighted communities. Californians $40.79 billion. Redevelopment's
recognized the need to provide a mechanism to reinvest in economic contribution to
economically and physically blighted communities throughout j California in Fiscal Year 2006-07,
California. The CRL is located in the California Health and $13, Every $1 of redevelopment
Safety Code (§§33000 et seq.) and provides tools to assist agency spending generates
local governments with remediating blight, promoting private;;' nearly $13 in total economic
investment, and preserving and expanding the community's activity.
supply of affordable housing. A redevelopment agency';
implements redevelopment activities through the use of;,tax
increment revenue - issuing bonds to raise investment capital,
buying and selling property, investing in public infrastructure `s
and facilities, and creating affordable housing opportunities.
Redevelopment allows local governments to eliminate physical
and economic blight in a designated redevelopment project
area. A redevelopment project area is `established when an
area exhibits conditions of both physical and, economic blight
(§§33030 and 33031) as described below.
BLIGHT
The CRL emphasizes tedevelopment's role In, eliminating
blighting conditions 11and defines blight as physical and
economic liabilities that affect the health,.,safety, and general i
welfare of a community.', CRL Section ',33030 describes a
blighted area as, being predominantly urbanized and j 20% of property tax revenues
substantially affected by detrimental physical and economic generated from redevelopment
conditions` to such an. extent that , the community cannot activities must be used to
I , , i^ increase supply of affordable
reasonably be revived without redevelopment. The physical j housing.
and economic conditions that; cause -blight as defined as
follows. 'I' I ' 2"d largest funder of affordable
housing in California after the
federal government.
Physical Conditions (CRL §33031(a))
• l
Buildings with serious code violations, dilapidation,
or deterioration such that it is unsafe or unhealthy
for a person toilive or work.
`,f
• Conditions that prevent or substantially hinder the
viable use or capacity of buildings or lots.
• Adjacent or nearby incompatible uses that prevent
development.
• Existence of subdivided lots that are in multiple
ownership and whose physical development has
303,946. Full and part time jobs
created in just one year (Fiscal
Year 2006-07).
78,750 units of affordable
housing built or rehabilitated
since 1995 by redevelopment
agencies.
18,522 units of low and moderate
income housing expected to be
built or refurbished over the next
two years.
$2 billion. State and local taxes
generated through
redevelopment construction
activities in Fiscal Year 2006-07.
Source: California Redevelopment
Association, 2009.
been impaired by their irregular shapes and inadequate sizes.
Economic Conditions (CRL §33031(b))
• Depreciated or stagnant property values.
• Impaired property values due to hazardous wastes.
• Abnormally high business vacancies, abnormally low lease rates, or an abnormally high
number of abandoned buildings in an area developed for urban use and served by utilities.
• A serious lack of commercial facilities that are normally found in neighborhoods, including
grocery stores, drug stores and banks. :,..
• Serious residential overcrowding.
• An excess of bars, liquor stores, or adult -oriented businesses thathave led to problems of
public safety and welfare. g 1, -i
• A high crime rate that constitutes a threattothe public safety and welfare,'.
TAX INCREMENT FINANCING
Tax increment financing is the primary
source of funding used to implement
redevelopment initiatives. Tax increment
financing is based upon the assumption
that as a geographical area is revitalized,
property values will increase, and
additional property taxesi I will be
generated. When a i redevelopment
project area is adopted the current
assessed values of all the properties
within project area- ioundaries, E are
designated as the base,', -year Ival6e
(§33328) As -assessed valuesiincrease,
tax increnier)t-Yevenue`is,generated from
the grOMK in property values over,, the
. ''�• t�nt3 slls`fi�.k
Y
Figure 1 - Tax Increment Financing
base'y`ear value. The increase in property values results in increased property tax revenue; a portion of
the increased property tax"revenue is allocated to a redevelopment agency (tax increment revenue)
which is themcharged with the responsibility of investing this revenue in the project area. Figure 1 is a
graphical depiction of how tax increment is generated and distributed.
20 Percent Low and Moderate Income Housing Set -Aside Fund
A portion of tax increment revenue received by a redevelopment agency must be used to preserve and
increase the supply of affordable housing within a project area. The CRL requires that a minimum of 20
percent of tax increment revenue be set aside into a separate fund that is restricted for the purpose of
creating low and moderate income housing (§33334.2), known as the Low and Moderate Income
Housing Set -Aside Fund ("Housing Fund"). Redevelopment agencies may use these funds to acquire
property, construct on -site and off -site improvements (required to build or preserve affordable housing),
construct or rehabilitate affordable housing, provide subsidies to ensure continued affordability, and
11
061
issue bonds to raise capital for affordable housing preservation and development. Redevelopment
agencies are one of the primary entities producing affordable housing throughout the State.
Pass -Through Payments
Redevelopment agencies are required to remit tax increment revenue to affected taxing agencies
(counties, school districts, community college districts, and special districts) that receive property tax
revenue in redevelopment project areas. These payments, known as "pass -through payments,"
represent 43 percent of the gross tax increment received in Project No. i and 70 percent of the gross
tax increment received in Project No. 2. The pass -through payments are'designed to alleviate fiscal
burdens the affected taxing entities may incur as a result of implementing redevelopment projects.
There are two types of pass -through payments. Prior to 1994, redevelopment agencies would
negotiate a fiscal mitigation agreement with each taxing agency. Since both Project Areas were
adopted prior to 1994, a majority of the Agency's pass-throughj,payments are the result of contracts that
were negotiated with the taxing agencies when the respective Project Areas were adopted.
Since 1994, the Agency amended the Redevelopment Plans for Project No. 1 and Project No. 2 to
eliminate the time limit to incur debt; these amendments triggered the second type.of pass through
payments, called statutory payments, to taxing agencies that did not have priorpass-through
agreements with the Agency. The CRL establishes set formulas for statutory payments. Appendix 1
contains a summary of Agency's pass -through agreements sand lists the taxing agencies that have
negotiated agreements and those that receive'statutory pass through payments.
The remaining portion of the tax increment revenue, after the `required 20 percent deposit into the
Housing Fund and payments to taxing agencies, is available for eligible., redevelopment projects, such
as infrastructure improvements, community facilities, development incentives, debt service, and general
administration. Tax increment revenue cannot be used, however;>to fund ongoing operations and
maintenance costs of public facilities or infrastructure. The Agency essentially retains 57 percent of
gross tax increment in Project No. 1,,and 30 percent of gross tax increment in Project No. 2. These
percentages includelhe.20 percent Housing Fund deposits.
;3
State Takeaways - SERAF Payments
As in prior late fiscal-crises;,1he Legislature is reallocating local government revenue to help close the
�µ. J+, i KnI
State's 1.massive budget gap own as the Supplemental Educational Revenue Augmentation Fund
(" SERAF"} the State is seeking $2:b5 billion from redevelopment agencies in Fiscal Years 2009-10 and
2016-,11. These funds willdbe.distributed to local school districts and will reduce the amount of State
General sund revenue required to achieve Proposition 98 school funding needs. The Agency's total
SERAF payment is $28,433,054; $23,582,367 in Fiscal Year 2009-10 and $4,850,687 in Fiscal Year
2010-11. While, efforts have !been mounted to legally challenge the constitutionality of these
takeaways, the"five year expenditure program presented in this Implementation Plan assumes that the
Agency must make-these(tayments and this revenue will not be available for non -housing Agency
projects and programs ;"if'these funds remain with the Agency, there will be additional funds for non -
housing redevelopment projects.
WHAT IS A REDEVELOPMENT PLAN?
A redevelopment plan provides a legal framework for long-term planning and the implementation of
revitalization activities in a redevelopment project area. It also establishes a financing method by
authorizing the agency's use of financing tools to implement projects and policies. The redevelopment
062
plan also sets the basic goals, powers, and limitations within which the redevelopment agency must
conduct its activities over the life of the project area. It does not provide a detailed, rigid course of
action to achieve those goals, but establishes how the agency intends to alleviate blight in a project
area. The Agency has two redevelopment plans; the Redevelopment Plan for Project No. 1 which was
originally adopted in 1983 and amended several times since adoption, and the Redevelopment Plan for
Project No. 2 which was adopted in 1989, and also amended several times since adoption (collectively
referred to as the "Redevelopment Plans").
21
Isl:�
Ise
ABOUT THE AGENCY & PROJECT AREAS
History and Profile
The area of La Quinta first emerged in the early 18th century when Spanish conquistadores used it as
the fifth resting point along the route from present-day Mexico to San Bernardino. The words "la
quinta" translate in Spanish to "the fifth". Agriculture developed in the early 1900s. The La Quinta
Resort was established in 1927, which housed the Coachella Valley's first golf course and was a
popular hideaway for Hollywood celebrities. Major roads expanded in the' 1950s and 1960s, paving the
way for future development. The City of La Quinta incorporated in."1982 during a time of dramatic
growth in the region.
The La Quinta Redevelopment Agency was established on -;July 5, 1983 to address conditions of
physical and economic blight in the City. Project No. 1 was established in November 1983 to redevelop
and expand deficient public infrastructure and facilities;bfacilitate economic development, expand
recreation opportunities, and revitalize the La Quinta Village. 'Project No. 1 is bounded by Avenue 50 to
the north, Jefferson and Madison Streets to the east,; and=the La Quinta City boundary on, the west.
Project No. 2 was established in May 1989 to rem` 6Ve impediments to commercial and residential
development, address public infrastructure and facility.deficiencies,'and to increase and improve the
community's supply of affordable housing. It is bounded by Avenue 50 to the south, Fred Waring Drive
to the north, Washington Street to the west, and Jefferson Street to the east.
The Project Areas are shown on the followirig,,map. E 4
ai t
P
7 a
i
LA QUINTA REDEVELOPMENT PROJECT AREAS NOS. 1 & 2
N
cA 0 0.3 0.6 1.2 1.8 2.4
c {Z l 3,- /\ Miles
10
065
The Redevelopment Plans for the Project Areas set forth limitations with regard to collecting tax
increment revenue, incurring bonded indebtedness, Redevelopment Plan effectiveness, and the use of
eminent domain.
Notable Timeframes Table 1
----._-- ... ............_ ... .::.
PROJECT NO. 1
Redevelopment Plan Adopted November 1983
t
Expires November 2024
Incur Indebtedness l s' No time limit
Repay Indebtedness/ November 2034
Receive Tax Increment
Eminent Domain 'Expired March 2007
PROJECT NO. 2
Redevelopment Plan i Adopted May 1989
i V, Expires May 2030
Incur Indebtedness 1 No time limit
Repay Indebtedness/I Expires May 2040
Receive Tax Increment
f C .`a i s:•'E
i.s nen -. P _'!�.
EminenYDom}ain Expired May 2001
11
rim
ACCOMPLISHMENTS
Achievements in Community Revitalization
In the last five years, the Agency has championed many successful projects and programs in the
Project Areas. A few examples are:
Highway 111 Corridor. City staff continued to work with
Highway 111 property owners to jointly pursue marketing
opportunities in Project No. 2. This included promoting
development opportunities at the International Council of
Shopping Centers' Western Division Conference, working
with property owners to address impediments to
development, and facilitating development proposal;
entitlement needs. Additionally, City staff has beenl
working with the owner of Garff Chevrolet/Cadillac and'
Torre Nissan to facilitate dealership expansion, which•;will
allow them to stay at their La Quinta location. The City arid
Redevelopment Agency staff will continue to work on the
retention, expansion, and recruitment of auto franchises irr
the existing Auto Center and other rHighway 111
properties. To date several opportunities are —currently
being investigated.
Wolff -Waters. Located in Project No. 2, W61ff;Waters s!a
multi -family complex that features rents affordable to, .very-
low and low income family households. This 236, unit
complex is located northwest of the intersection of Avenue
48 and Dune PaimsiRoad. The design::?and development
program embraced sustainable designand construction
materials/practices, and fhe develcpmentiinay be eligible
to achieve LEEp.:Silver certification, The complex opened
in December, 2009 ",There are 1200,persons`-on the
list.
Village Access. The Village is`the prime commercial
district' in.'P oject No. 1. In"order to improve access to the
Village, the -,,Agency underwrote the installation of
directional signs that guide drivers to the Village and point
out public facilities and amenities (e.g., library, museum,
city hall, etc.). Also; giventthat,La Quinta is a golf -oriented
i community, the Agercy.recently implemented the Phase I
Golf Cart Plan. his program created a golf cart network,
providing improved access to and within the Village.
Physical improvements included striping, signage, a traffic
signal, enhanced crosswalks, and installation of traffic
calming devices to slow vehicular traffic.
SilverRock Resort. The Agency entered into a Disposition
and Development Agreement ("DDA") that facilitates the
sale and/or lease of nearly 61 acres to LDD SilverRock,
12
Vista Dunes Courtyard Homes
The Agency -developed Vista Dunes
Courtyard Homes opened in 2008. The
80-unit complex houses more than 300
very low income residents on a 9.5 acre
site located in Project No. 2. Vista
Dunes incorporates principles of
environmentally friendly design, energy
and water efficiency, durability, and
sustainability. It is the largest multifamily
affordable housing complex in the nation
to achieve LEED Platinum certification
when constituted. The homes include
some of the most advanced water and
energy efficiencies in home building
today,
i The Agency initiated the project to
remediate a blighted property and to
increase the community's supply of
affordable housing. This $36-million
project entailed the acquisition of a
dilapidated mobile home ,park with 92
homes, relocation of the 398 residents,
site demolition and clearance,
i construction, and retention of a non-
profit management company.
067
LLC for development of a boutique hotel, resort hotel, casitas units, resort retail, and a black box
theater. A public golf course has been completed and the Agency and LDD SilverRock, LLC are
currently revising the DDA to accommodate present lodging market conditions. The resort is located in
Project No. 1.
Appendix 2 contains a summary of every redevelopment project the Agency has implemented since
establishing the Redevelopment Plans.
LI iJ I'i
tea.
13
r
.C... 068
SECTION II: REDEVELOPMENT IMPLEMENTATION
PLAW, JV
I, M
14
069
REDEVELOPMENT PLAN GOALS
Community Reinvestment and Revitalization
The Redevelopment Plans for the Project Areas establish a variety of goals for redevelopment of the
Project Areas; these goals frame the near term redevelopment objectives for the Implementation Plan.
The goals are outlined
below.
Project No. 1
Eliminate Blight. Eliminate and prevent the spread of conditions of blight
including: underutilized properties and deteriorating buildings, incompatible and
uneconomic land uses, deficient infrastructure and facilities, obsolete structures,
and other economic deficiencies in order to create a more favorable. environment for
CLEAN
commercial, office, residential, an recreational development.
Improve Public Infrastructure and Facilities. Improve public facilities and public
(I
Dll
infrastructure. Improve,inadequate drainage infrastructure. Improve and/or provide
electric, gas, telephone;',and wastewatef infrastructure to both developed and
ACCESS
undeveloped properties: a
Expand Commercial Base Ezpand the Project�Area's Commercial Base by
Senvironment
working with property owners along`cotnmLercial corridors to enhance the business
!and encouraging private investment through capital improvements
INVEST
and publicfacilities.
e°
Promote Job/Growth.,. Promote 'local job opportunities by facilitating private
investment in. commercial areas
WORK
Ensure Quality Pesign and Development. Implement design and use standards
ot,
to assure high aesthetic and environmental quality, and provide unity and integrity
to development within'the Project Area.
PRESERVE"..
Remove Impediments to Development. Address parcels of property that are of
irregular form and shape, are inadequately sized for proper usefulness and
developmei t, and/or are held in multiple ownership. Remove impediments to land
disposition and development, and/or are held in multiple ownership. Recycle and/or
GROW
develop underutilized parcels to accommodate higher and better economic uses
while enhancing the City's financial resources.
Coordinate Stakeholder Participation. Encourage the cooperation and
participation of residents, businesses, business persons, public agencies, and
community organizations in redevelopment/revitalization initiatives.
COLLABORATE
15
+ Housing for All. Promote the rehabilitation of existing housing stock. Increase,
" improve, and preserve the supply of housing affordable to very low, low and
moderate income households.
LIVE
Project No. 2
Eliminate Blight. Remedy, remove, and prevent physical blight and economic
obsolescence through implementation of the Redevelopment Plan.
CLEAN
c
Improve Public Infrastructure and Facilities. Improve and/or provide electric, gas,
telephone, water, and wastewater` tfacilities to both developed and subdivided
undeveloped properties within the Project Area. Address inadequate street
;✓ improvements and roads that vary in width --and degree of improvement as they cross
ACCESS the Project Area. Alleviate"'inadequate drainage improvements that constrain the
development of various parcels in"the, Project Area, the cost of which cannot be borne
41
by private enterprise acting alone
Expand Commercial Base. t Expand the .commercial base of the community.
Provide fdrithe expansion, renovation and relocation of businesses within the Project
t Area to' enhance their economic viability. Provide opportunities and mechanisms to
INVEST increase sales tax, business license.,tax and other revenues to the City. Remedy
r
depreciating property values and impaired investments.
a
Ensure Quality Design and Development. Upgrade the general aesthetics of the
comlimerCial enterprises to improve their economic viability.
Q, �� , 1
PRESG1YE 'I i\ '1rE
v =r Remove Impediments -to Development. Recycle and/or develop underutilized
parcels to accommodate"higher and better economic uses, improving the financial
viability of the City. Address parcels of property that are inadequately sized for proper
usefulness and! development and which are held in divided and widely scattered
GROW ownerships. ,
_
1�,, ji T
Housing` for All. Promote the rehabilitation of existing housing stock. Increase,
' improve, land preserve the supply of housing affordable to very low, low and
moderate income households.
LIVE
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071
REDEVELOPMENT (NON -HOUSING) CASH FLOW
Five Year Work Plan Budaet
Tables 3 and 4 present the Agency's five-year projected cash flow for non -housing
redevelopment activities during the 2009-10 through 2013-14 planning period. The tax
increment revenue figures are the anticipated gross tax increment revenue for Project No. 1 and
Project No. 2, before payments for debt service, taxing agencies, and' other obligations are
made. The projections are based upon a preliminary 2009-10 assessed value as reported by
the County Auditor Controller, and assume a -0.237 percent decline in secured assessed values
in 2010-11, no growth in secured assessed values in 2011-12, and a two percent growth rate in
secured assessed values thereafter. The projections also assume a zerolpercent growth rate in
unsecured values and do not take new development into account. The figures presented are
subject to change due to fluctuations in the local economy and changes to the proposed State
take of redevelopment funds. The County may reassess property values in the Project Areas
over the next several months to be lower, which wouldlead to a decline in tax increment. The
Agency will be closely monitoring the local economy over the next five year period/to take
market conditions into account when planning and imsplementing its projects and programs.
Due to the State's effort to take redevelopment funds to`bbla ice the State Budget, the Agency
may be required to make SERAF payments during the planning period. Therefore, the following
projections assume a $23,582,367 SE 1 F,payment in Fiscal'Year 2009-10, and $4,850,687 in
Fiscal Year 2010-11. The Agency has secured a $10.0 million loan from the City of La Quinta to
fund a portion of the $23,582,367 2009 10 SERAF p0yment;,the remaining $13,582,367 will be
funded from reallocating capital,. projects and debt Iseniice funds, and available 2010-11 non-
housingtax increment revenues The A en
g cy anticipates funding' the 2010-11 payment from
non -Housing Fund tax increment revenue. if the California Redevelopment Association's
litigation to prohibit the'SERAF shift is successful,' then these funds may be available to fund
additional redevelopment initiatives; or to move forward projects and programs identified in this
Implementation Plan that otherwise may be delayed! '
23
M
Five Year Cash Flow Forecast - Project No. 1 Debt Service & Capital Projects Funds TABLE 3
„• , , r r ,
Beginning Balance (July 1) $60,113,834 1 §50,698,267 1 E31,514,223 1 E21,448,528 $12,691,103
IJ ,
REVENUES
Tax Increment
General Fund Loan Proceeds
54,169,600
55.469,671
1 57,133,761
58,847,774
60,613,208
10,000,000
TOTAL REVENUES
66,169,600
55,469,571
1 57,133,751
1 53,847,774
60,613,208
$296,234,014
TOTAL FUNDS AVAILABLE $124,283,434 1 $106167,938 1 $88,647984 1 $80,296,302,j §73304311
EXPENDITURES
Housing Set Aside
Taxing Agency Payments
Bond Debt Service
City Hall 8 Contract Payments
General Fund Loan Interest Payments
SERAF Payments
Administration/Operating Expenses
Progroms/Proects
10,833,900
20,632,818
9,886,421
757,633
1,720,000
23,582,367
2,648,961
3,523,066
10,833,900
20,599,515
9,885.959
756,625
1,720,000
4850687
2701,940
23305089'-'
11,158.917
20,615.869
9885720
757,88i
1,720,6o6-
11:, :
p°i 21755979
20305:089
11,48t3;685
20619,321
9888679
770,328>.
1,720.000
2,6111,099
20,305,069
11,838,496
20.620,823
9,886,756
782,703
1,720,000
v
,86.7,321
1lo10;511
$56,168,898
$103,087,345
$49,431,535
E3,825,170
$8,600,000
$28,433,054
$13,785,299
E86,448,845
TOTAL EXPENDITURES
73,585,167 1
74,663,716"
67,199,466
67,606,199
66,726,609
§348,770,146
ENDING BALANCE
§50698267 1
§31,51.3
E21448528
E12691103
57677702
\
Five Year Cash Flow Forecast - Pro act No. 2 Debt Service S, Capibil Pro ects. Funds' TABLE 4
® y
MUMMMEMIZ,I I •8 1 I I I
j§20,274,63D•"§17,264,510
,
..
Beginning Balance (Jul 1 $14,876;41511 $16,890,789 E17,406,574
REVENUES
Tax Increment
28,33%800.
21,33g9
2918999•
30.065,694
31,710,887
'
TOTAL REVENUES
1 $28.339,800 i
$28,339,800
$M139,994
1 $30'066;694
$31,710,887
$147,646,176
TOTAL FUNDS AVAILABLE r'i C t'.-`§48,614,430
1 §45604,310 1 §44,065409 1 $46956483 E49117461
EXPENDITURES
Housing Set Aside _
'.. 5,668,000
5668,000
5,838,040
6,013,181
6,193,576
$29,380,797
Taxing Agency Payments
�16,208,992
18, 16§,620
18,215,820
18,579,284
18,950,018
$92,119,934
Non -Housing Bond Debt Service
- 419,550
411272
416,738
419,819
417,516
$2,091,896
City Hall B Contract Payments
i s 306,240
305814'
306, 117
312,265
318,528
$1,548,964
General Fund Loan Interest Payments
1 000 066
"' 11000,660
1,000.000
1,000.000
1.000.000
Hwy 111 General Fund Loan'. Payment
' 700000
:' 700,000
700.000
700.000
700.000
$3,600,000
Admini4fraHoWdperaling Expense§ , f':�
1,319,393
N,34y4t781
1,372,696
1,400,150
1,428,153
E6,866,174
Proiarmille6jects P, ";,r;'•
3,727,745
3,125,209
325,209
125,209
-
$7,303,371
TOTAL EXPENDITURES
31,349,920
30,728,895
28,174,620
28,549,909
29,007,791
§147,811,135
ENDING BALANCE '.--$17264,510
$1437641b
$15,890,789
§77406674
E20,109,670
24 017
D
25
INTRODUCTION
Overview of the Housing Compliance Plan
The CRL requires agencies to adopt an affordable housing compliance plan that identifies how the
redevelopment agency will meet its affordable housing obligations. The compliance plan must be
consistent with the jurisdiction's housing element and must also be reviewed and updated at least every
five years in conjunction with the cyclical preparation of the housing ,element or the redevelopment
agency's five year implementation plan.
This section presents the Housing Compliance Plan of the Implementation Plan; it reviews the La
Quinta Redevelopment Agency's affordable housing production achievements for the past five years
(Fiscal Years 2004-05 through 2008-09) and outlines the anticipated affordable housing programs and
projects for the remaining five years of the current ten-year Manning period (Fiscal Years 2004-05 to
2013-14) ("Compliance Period").
The Agency is required to allocate 20 percent of theEtdkincrement revenue it receives from the Project
Areas to increase and improve housing affordable tovery low, low,'and moderate income households.
The Housing Fund has been established for this revenue: The Agency has the authority/to underwrite
affordable housing preservation or development either inside or outside the Project Areas. Further, the
Agency is required to insure that at least 15 percent of 'pit' privately developed or substantially
rehabilitated dwellings in the Project Areas, are affordable to, very low, low and moderate income
households, and not less than 40 percent o€ these affordable dwellings must be affordable to very low
income households. If the Agency directly develops`affotdable housing; then at least 50 percent of the
dwellings must be affordable to very low, low, and moderate income households, and at least 50
percent of those must be affordable to very low income households. In order to ensure each unit's
continued affordability, the Agency must secure 45=;year covenants on single family homes, and 55-
year covenants on multi -family dwellings';
Redevelopment agencies use compliance plans to establish ten-year objectives to achieve compliance
with the CRL's affordable housing mandates. The Agency's affordable housing programs generally fall
into three categories:
r vti ;1r
•
Housingl Production — The Agency must ensure that a percentage of the housing units constructed
or substantially rehabilitated' byj the Agency or the private sector within the Project Areas are
aff6rdable to very low; lbw and moderate income households.
"r..
•Replacement Housing — ThAgency is obligated to replace any housing units destroyed or removed
as a result of a redevelopment project within four years after the destruction or removal.
C Expenditures{, by Household QTypes — The Agency must comply with certain proportionality
requirements intheir expenditure of Housing Funds over a ten-year period to ensure that such funds
are spent on housing —',affordable to very low income households, low income households, and
housing for residents under the age of 65 in proportion to their representation in the community.
26 0 p 1
w... U
AFFORDABLE HOUSING WORK PROGRAM
Table 5 presents the Agency's proposed programs and projects for affordable housing production in
both Project Areas, including the goals that each project would achieve, the projected implementation
timeframe, and the estimated Agency investment'. Additional expenditures may be made on these
projects as the Agency budget permits. Expenditures that will be made after the five year
Implementation Plan period are not shown. Additional projects, not listed,.may be implemented over
the next five years as opportunities and the Agency budget permits.
Proposed Affordable Housing Projects and Programs TABLE 5
❑ Washington Street Apartments: The j
Agency purchased the Washington Street
Apartments, located at Washington Street and •;x;, ;
Hidden River Road, in 2008. The property's
72 units are currently restricted to very low
income seniors and special needs residents i RI
pursuant to previous financial assistan'te from
the federal government, acting through. the,i
Farmer's Home Administration, United States
Department of Agriculture. The Agency plans xi
to substantially rehabilitate the units-t;and f l(
record additional affordability covenants m
compliance with the CRL. ;Tkie,Agency also' ' �rvE
plans to develop .d new multifamily housing
complex on an' adjacent vacant, lot with
approximately�83 low income units;' Though
currently outside the Project, Areas, an ,
amendment is urdeiway to add the properties I .Y
to Project No. 2.
' Costs are subject to change, and completion of these projects may require future action by the Agency.
27
2009-10to
2013-14
$18,200,000
082
Proposed Affordable Housing Projects and Programs
TABLES
❑ Dune Palms/Highway 111: The Agency
purchased a 19.5 acre site in 2007 with the j
goal of facilitating commercial development on
9.0 acres fronting Highway 111, and up to 180,
affordable multi -family dwellings on the rear
9.0 acres. The remaining land area will be
developed with a road that will serve the
commercial and residential components, and
the adjoining Costco Center and Desert Sands
Unified School District corporation yard. The
City and Agency are currently conducting the
` $27,250,00(J
environmental review and entitlement
rt 2009-10 to
processes; the developer, the Shovhn
' 2013-W
Companies, is currently designing the multi-
family housing component. The Agency L`''=
1vel !
anticipates concluding an affordable housing j
agreement by the second quarter of 2010.
I
Project construction will be dependent upon
securing 4 percent tax credits.
This project will result in 36 very low and 144
low income units in Project No. 2.
IJ
o CentrePointe: The Agency has an' -affordable
housing agreementthat requires this 9.45 acre
site to be developed with 40 moderate income
le familyuA ev he del
9 Y � QPer ,bas not 6e"r;
a
been able to secure financing and is.currently =.
..
generating - alternative affordable housing l
development . iproposals 1 C.,: The Agency
a`nt)cipates receivinglthese proposals from the
+ 2009-10 to To be
jdeveloper during the flfst quarter:of,2010, and ,
* 2013-14 determined
will then evaluate thelr.financial feasibility. If a
Viabele financing option is identified, the'Agency
LIVE
wlh�proceed to renegotiate the affordable
housing., agreement to accommodate the new 3
housing` configuration. This.,property is located I
in Project No 2;i s
j
0
Proposed Affordable Housing Projects and Programs
❑ Dune PalmslWestward Ho: In January 2007
the Agency started acquiring 6 properties
located southeast of the intersection of Dune
Palms Road and Westward Ho. These
properties were improved with older,
dilapidated single family homes that were
occupied by upper income households. To
date, the Agency has acquired 5 of the 6
properties; the Agency anticipates purchasing
the 6" property in January 2010. Site
planning is underway to locate 60 single family
dwellings on this 5.10 acre site; the dwellings
would be sold or rented to low and moderate
income family households. The Agency is
exploring the feasibility of designing this
development to accommodate special needs
households. This property is located in Project
No. 2.
Li The Village Live -Work Housing:t :The
f.I
,t
r
LIVE
TABLE 5
i
I
?009-10 to i $g 150,000
2013-14
�L1
Agency purchased this 35,000 square ^ foot
parcel in 2007 and is currently preparing site I t"
plans to evaluate the �feasi�ility of developing ;
32 loft dwellings._p I It"is also exploring I V e
expanding this site to include the, adjoining 2009-10 to
15,000 squarerfoot-parcel. The goal is to\ , � 2013-14
develop live -work'. dwellings that would be LIVE
affordable to moderate income; households.
This site is located in Project No. 1.
29
$4,350,000
E
Proposed Affordable Housing Projects and Programs TABLE 5
❑ Foreclosed Home Purchase and
Rehabilitation Program: The recession has
resulted in increasing numbers of bank -owned
units in the Project Areas. In October 2009,
the Agency directed staff to purchase
foreclosed single family dwellings that are
primarily located in Project No. 1. The Agency
will retain local contractors to substantially
rehabilitate these dwellings and will
subsequently sell or rent the substantially ;
rehabilitated dwellings to low or moderate .al'
income family households. If the dwellings are
'
sold, the Agency will provide silent second
trust deed mortgage loans to insure affordable i
LIVE
housing costs. If market conditions limit
r I
property disposition to initially renting the
dwellings, the dwellings will be transferred to
the City's Housing Authority and rented to,low {
''
and moderate income households '' ,
t,__
Approximately five homes may be rehabilitated.,, 11`1
through this program.
_. .. . k
6 .- ......�_..... ........._...
La Quints Rental='Hqusin9 Program]
Landscape Improvements: -,],;The Agency' ?I_1
purchased dilapidated single family homes in
Project No. 1;1 25 of the original 50 homes . x
remain in the Agency's inventory. In order to ,
receive housing credit, the Agency has_been i
substantially rehabilitating these.units and then ,
selling them to very low.. and lbw income family r
househdlUs. As, part' ofl this rehabilitation LIVE
Bw landscape
,ed the City's
ie Agency is- installir
s which will meet or
tolerant planting pale
30
2009-10 to
2013-14
i �
2009-10
$3,200,000
i
$40,000
p05
Proposed Affordable Housing Projects and Programs
❑ Habitat for Humanity: Habitat for Humanity
owns two vacant lots in Project No. 1.
Negotiations are underway to structure an
affordable housing agreement to construct two
single family homes that would be sold to very
low income households. The Agency would
provide funding to build the units; the Agency's
position would be secured via a first trust deed
mortgage. If the first two -unit phase is
successful, the Agency may retain Habitat to
substantially rehabilitate one or more of the La
Quinta Rental Housing Program homes, and
develop additional lots in Project No. 1 with
single family dwellings.
❑ Land Acquisition: In order achieve its
housing production mandate, the Agency will i I
continue to seek land acquisition opportunities
in the Project Areas. Declining vacant^land ,.
values and abandoned housing developrttents
are generating new properties within- the
residential and commercial districts that may ? ,L, .u'vE
accommodate multi family, and, mixed -rise = o
w ,•
_ affordable housing.(,,%'"____j �_,. r .•._ ..., _ __.
[ F
., -
i
r
I �
Y 2009-10 to
" 2013-14
r -UVE
I ,�•
2009-10 to
2013-14
TABLES
$500,000
$22,000.000
31 086
AFFORDABLE HOUSING COMPLIANCE
Blueprint for Agency Housing Activities
The Housing Compliance Plan serves as a blueprint for current and future Agency activities within the
Project Areas and outlines how the Agency will meet its very low, low, and moderate income housing
responsibilities and eliminate blight. This Housing Compliance Plan presents a summary of the
Agency's inclusionary and replacement housing programs as mandated1by Sections 33413(b)(4) and
33490(a)(2) and (3) of the CRL. Specifically, it presents a forecast of the qumber of affordable housing
units that may be required over the ten-year Compliance Period, and assesses the Agency's plans to
facilitate the creation of the required number of affordable housing units within this timeframe.
s, _._._
Adoption of a Housing Compliance Plan does not constitute approval of any specific project, program,
or expenditure; and it does not change the need to obtain anyitequired approval of a specific program,
project, or expenditure from community or the Agency.lThe Housing Compliance ,Plan is a general
statement of direction rather than an unalterable course of action. As such, in order to effectuate its
purposes due to unknown circumstances or new opportunities that arise from time to time, the Agency
may amend the Housing Compliance Plan during the`five year term of the Implementation Plan at any
point, including but not limited to the mid-term opportunity, as required by the CRL.
r
HOUSING PRODUCTIONS --
Since 1976, redevelopment agencies havo,been required to assure `that at least 30 percent of all new
and substantially rehabilitated units developed by an agency are available at affordable costs to
households of very low, low, or moderate income. Of this 30 percent, not less than 50 percent are
required to be available at affordable costs to very low income>households. Further, for all units
developed in the project area by entities other than an agency, the CRL requires that at least 15
percent of all new an drsubstantially'rehabilitated'dwelling units within the project area be made
available at affordable costs to low or moderate income, households. Of these, not less than 40 percent
of the dwelling units are, requiredto _tibF4vaiiable at affordable costs to very low income households.
These requirements are applicable:to housing. units on an aggregated basis, and not on a project -by -
project basis-toj_paph dwelling'uniit created or substantially rehabilitated unless so required by an
nnPnr:v, Annendix"3 provides a olossary of terms related to affordable housing covenants, affordability
The Iriclutionary Housing Obligation table,on the following page summarizes the Agency's actual and
estimated,production requirements over various time periods as required by the CRL. To estimate the
number of housing units that need to be affordable to very low, low, and moderate income households,
the Agency esti'iimated the total number units that will be constructed or substantially rehabilitated in the
Project Areas anq-appliedrthe, formulas outlined in the CRL. The following inclusionary housing
analysis takes into'accourit alf residential construction or substantial rehabilitation that occurred within
the Project Areas sincetheir adoption to determine affordable housing production needs, and includes
projections for the number of additional dwelling units to be constructed or substantially rehabilitated
during the Compliance Period, the next ten years, and over the life of the Redevelopment Plans.
32 w... 081
i—i.. . Wnucinn flhlinatinn
TABLE 6
..............._.�
Project
Project
Total
Project
Project
Total
No.1
No.2
No.1
No.2
Adoption through 1993-94 (Actual)
Total Units'
3,824
904
4.728
0
0
0
709
284
1994-95 through 2003-04 (Actual)
11,
Total Units'
2,568
3,852
6,420
963
385
Compliance Period
2004-05 through 2008-09 (Actual)
,.,
Total Units'
910
970
1,880
0
80
80
306
125
2009-10 through 2013-14 (Projected)
A" i�-
( �
Total Units
500
451
`951-..
0
0
143 '
57
Next Compliance Period (First Five Years)
2014-15through 2018-19 (Projected)
Total Unitsa
42
1'-A2o
162
of„
0
0
24
10
Remaining Plan Duration
2019-20 through 2024/2030 (Projected)
Total Units°
942
J 4 Q
1,08p
it 0
t0 ti
0
1 162
65
Total Redevelopment Plan Duration
Total Ilnits5 ,a111
.::8•,786
6,43-7
',1,,,223"
0"
80
80
1 2,307
925
' Units built or substantially rehabilitated in the Project Areas as reported by the La Quinta Planning Department.
3 Units predicted based oreentitled vacant land.
3 Units predicted based on potential buildingactivityorj unentitled vacant land.
° Units predicted based on potential build out: on,vacant land -zoned for. residential use.
5 The total numberof units anticipated to built in the Project Areas during the duration of the Redevelopment Plans is greater than
what was predid6d4hen the,Third Implementation Plan was adopted in 2005. This is due to a land use change on several
commerc al',parcels to residential uses and, a, development program that was revised to build condo units instead of hotel units.
Note: Nurn'bers may not appear to add correctly' due to rounded decimals
As Table 6 shows, residentialidevelopment projected throughout the duration of the Redevelopment
Plans is estimates to generate,a, need for 2,307 affordable income restricted units, including 925 very
low income units-'�TheInclusionary housing obligation throughout the remaining life of the
Redevelopment Plans is -estimated based on the potential build out of land zoned for residential use in
the Project Areas. `The! potential build out of the Project Areas has increased since the last
Implementation Plan was adopted in 2005, resulting in a higher inclusionary housing obligation. This is
due to a land use designation revision that changed several commercial parcels to residential uses, and
a development program that was altered to build condominium units instead of hotel units.
Table 7 shows the number of affordable housing units the Agency has produced from the adoption of
the Redevelopment Plans through Fiscal Year 2008-09, as well as the number of affordable units the
Agency anticipates to produce over the next five years, through Fiscal Year 2013-14. The table also
33 088
shows the number of units the Agency will need to produce from Fiscal Year 2014-15 through the
remaining life of the Redevelopment Plans in order to meet its predicted inclusionary housing
obligation.
34
.... 0 89
1994-95through 2003-04(Actual)
552.E",
259
Seasons
91
45
Stockman
'ti 1
8
Williams
___46
�`:..6
Cove Rental Housing (Sold & Unsold)(
50
44
CVHC - Cove Homes
..;-:iy'i 7
SI
Building Horizons ;
j'°)� 16
0'° ,
Agency Acquisition/Rehabilitation
1
0
Second Trust Deed Program r^1 ; '..
101
0
Mira Flores Single Family
23
0
Residential Rehabilitation Program
4 ,
1
MiraFlores Multifamily
118
70
Aventine
1.
E 20
0
Mountain View ,`1
C'. 14
0
Hadley Villas
80
80
Compliance Period
2004.05 through 2008.09 (Actual)' `°'"
f;;�,,, 500",
299
Building Horizons ` t
tV,! --,. 3
1
Second Tlyst Deed Programl ; _,�
"" 48
-`"�2
1
Res{dentfal Rehabilitation Program '
2
.Watercolors
149
0
_
_{ Vista Dunes V1,a,
80
79
`:CVHC Wolff Waters
218
216
Ww
-'...."Dun
AI
)
Can,
Dun
°(-
The
For(
Hat
"
`0 Next
-.2014•
Street" ---
Highway 1113
e I
/Westward H03
Live -Work Housing 3
Home Rehabilitation
iumanity
ince Period (First Five
uoh 2018-19 (Proiecter
475 111
156 73
180 36
40 0
60 0
32 0
5 0
400 130
380 126
Total Redevelopment Plan Duration 1
198311989to 2024/2030 2,307 925
Does not include units from the Silverhawk multifamily development.
Covenanted units were lost due to foreclosure.
'Target housing production figures required to meet production requirements.
3 Properties owned and/or controlled by the City
Note: Numbers may not appear to add correctly due to rounded decimals.
Table 8 summarizes data from Tables 6 and 7 showing the number of units required and produced by
time period. It demonstrates how the Agency plans to meet its inclusionary housing obligation by the
time the Redevelopment Plans expire.
rwIII menL
Prior to 2004
T.....1 i i..:... 0...., i—A /Arlon}inn thrnnnh 9nn3-W 1.672 669
Total Units Produced (Adoption through 2003-04) `
552
259
Remaining Need as of June 30 2004
1,120
410
Compliance Period
Total Units Required (2004-05 through 2013-1,4)
449
182
;r
Total Cumulative Units Required (Adoption through 2013-14)
1,569
592
Total Units Produced (2004-05 through 2013-14) ! i -
975
410
Remaining Need as of June 30 2014-
594
182
Next Compliance Period (First Five Years)
Total Units Required (2014-15 through 2018-19) 1 .
24
10
Total Cumulative Units (Adoption through 2018-19)" ,i'
618
191
-Required
Total Units Produced (2014--15 through 2018-19) "'
400
130
RemainingNeedas'ofJune'30„2019 '`
218
61
Remaining Plan Duration
Total Units Required (2019-20 through 2024/2030)
162
65
Total Cumulative, Units Requited (Adoption. through 2024/2030)'
380
126
Total -Units Produced (2019-20 through 202412030)
380
126
Remaining Need,at Endof Plan Duration � -
-
-
Total Redevelopment Plan Duration (1983/1989 to 2024/2030)
Total Units Required �'
2,307
925
Total Units Produced 1
2,307
925
Remaining Need
Equals sumof remaining'; need from prior period plus total units required from current period
f 3
Through the remaining effective term of the Redevelopment Plans, the Agency has projected the
number of housing units that will be produced based on historical development trends and the amount
of available land in each of the Project Areas. During the first five years of the next compliance period
(Fiscal Years 2014-15 through 2018-19), the Agency anticipates that development will generate the
need for 24 affordable units, with 10 of such units required to be restricted to very low income
households. Similarly, development that is anticipated to occur from Fiscal Year 2019-20 through the
expiration of the Redevelopment Plans will generate the need for 162 affordable units, with 65 of such
36
091
units required to be restricted to very low income households. Taking into account the anticipated deficit
of affordable units at the end of the current Compliance Period (2013-14), the Agency will endeavor to
produce 780 affordable units, with at least 256 of such units restricted to very low income households,
throughout the remaining terms of the Redevelopment Plans.
REPLACEMENT HOUSING
The CRL requires that whenever housing occupied by low and moderate income households is
destroyed as part of an Agency project, the Agency shall ensure that an equivalent number of
replacement units are constructed or substantially rehabilitated. These units must provide at least the
same number of bedrooms destroyed, and 100 percent of the replacement units must be affordable to
the same income categories (i.e. very low, low, and moderate) as 'those removed. The Agency
receives a full credit for replacement units created inside or outside the Project Areas. Table 8
summarizes the units that have been demolished and subsequently replaced)A the Project Areas.
According to Agency records, no affordable units were destroye
of the Redevelopment Plans through June 30, 2004s'From
records show that 92 very low income units were' destroyed
These units were replaced by 79 very low income multifamily
income multifamily units at the Wolff Waters development, ere
units. In all, from adoption of the Redevelopment Plans throw
206 more affordable units produced than`wefe,destroyed in the
Surn mary of Replacement Units, ,v, DemoIishad.UMS
Through
0
0
d in the Project Area's from the adoption
July,1, 2004, through June 30, 2009,
at the,Vista Dunes Mopitehome Park.
snits at the same site and 216 very low
ating a surplus of 203 very low income
gh. June 30, 2009, there were a total of
Project Areas.
h
TABLE 9
• _ C "Vista Dunes1MHP 92 1 193 92
49 Replaced I �''• 298 740 295
j Vista}?' nes Multifamily 80 174 79
rVHC t off Waters. f'' . 218 566 216
ThroughJune30,_2009 E'.,,i 206 547 203
During the remainder of the Compliance Period, the Agency anticipates that one project will result in the
temporary displacernerft-pf"affordable housing units in the Project Areas. The Washington Street
Apartments contain 73 very low income housing units that will be substantially rehabilitated. However,
construction will be phased such that residents will be able to move from their existing unit into a new or
rehabilitated unit on the same property and will not be required to leave the property itself.
37
092
HOUSING PROGRAM CASH FLOW ANALYSIS
The Agency's primary source of funding for housing projects and programs is the annual deposit of 20
percent of its tax increment revenue into the Housing Fund. The CRL requires that these funds be
used to increase, improve, and preserve the community's supply of housing available, at affordable
housing cost, to persons and families of very low, low, and moderate income. Other sources of
Housing Fund revenues include interest earnings, bond proceeds, loan repayments, and other
miscellaneous revenues. Table 10 presents the Agency's Housing Fund projected cash flow over the
next five years (Fiscal Years 2009-10 through 2013-14). Projects completed prior to Fiscal Year 2009-
10, including replacement units shown in Table 9, are not included in the funding program presented in
the cash flow.
Five Year Cash Flow Forecast - Housing Fund
^^1'
'';
TABLE 10
11' 1
1 1
1
1
1
t/t'lLL•lJ
NCE (July
$30.816,669
$33 341,383
$26,061,557..
$10,396,679
$518,417
71)1
7REVENUES
Z n
i
.br
16,501,900
16,501,900
.,y.46,996� 57
17,506,866
18,032,072
$85,539,695
1,281100
1,281,100
- 742,900
765,700
1,018,200
$5,139,000
S
$17,783,000
$17,783,000 1
$17,789,857
I $18,272,566
I N1V,u*o,z72
$90,678,695
I.i:..
TOTAL AVAILABLE FUNDS
$48,699,669
$51,124,383.1
$43,861,414 ^$28,669,245
1 $19,568,689
EXPENDITURES
A
Debt Service-,
6,390,291
6,390,333
1
6,383,502..
6,379,595
1,949,472
$27,493,193
General Fund Reimbursement ' i I F
1 179,905
1,099,+403
1 099;403i
1,099,403
1,036,762
$5,514,876
Contract/Miscellaneous ` i ''
: ''`798,090
773,690
721,830
721,830
721,830
$3,736,670
ProgramslProjects .
6,890,000
16860,000
25.250.000
19,960,000
1 14,800,000
83,690,000
TOTAL EXPENDITURES
$15,258,286
$25,062,826
$33,454,735
$28,156,82
$$18,508,064
$120,434,739
ENDING BALANCE
"$33,341.383
$26,061,657
$10,396,679
$618,417
$1,060,625
i
EXPENDITURES BY HOUSEHOLD TYPES
I l ,? 6 j'� I i \
Effective anuary 2002, the expenditure,=of Housing Fund revenues is subject to certain proportionality
requirements. The Agency's Housing Fund revenue is to be expended in proportion to the community's
need for veryilow and low income housing, and in proportion to the low income population under the
age of 65. T14l Agency is required to meet these proportionality requirements within each 10-year
housing compliance plan period., Since the proportionality requirement was not enacted until 2002, the
law permits that the -first period be extended by two years to include expenditures from 2002 through
the end of the Compliance,Period.
The community's proportionate need for very low and low income housing is based on the Southern
California Association of Government's ("SCAG") Regional Housing Needs Allocation ("RHNA"), used
by local government to meet state requirements for affordable housing by category. RHNA mandates
are adjusted from time to time to respond to changing demographics. As a result, the Agency is subject
to RHNA mandates from two different time periods that overlap the Agency's Compliance Period:
Agency expenditures from Fiscal Years 2001-02 through 2004-05 are subject to the RHNA mandates
m
assigned for 1998 to 2005; Agency expenditures from Fiscal Years 2005-06 through 2013-14 are
subject to RHNA mandates assigned for 2006 to 2014.
The community's proportional need for age -restricted versus non -age restricted housing is based on
two different sources°. New legal requirements took effect in 2006 that modified the previous limitation
of spending Housing Fund monies on households under the age of 65. Section 33334.4(b) of the CRL
used to require that an agency spend its Housing Fund monies "in at least the same proportion as the
population under age 65 bears to the total population based on the most ,recent census." The new
language provides a higher level of specificity to spend "in at least the same`"proportion as the number
of low income households with a member under age 65 bears to- the, total number of low income
households of the community as reported in the most recent census.l` Thus, Agency expenditures from
Fiscal Years 2001-02 through 2004-05 are subject to the previous age targeting requirement, and
expenditures from Fiscal Years 2005-06 through 2013-14 are,- subject, toy the new age targeting
requirement. 11
I
Table 11 presents the minimum Housing Fund expenditure thresholds for very,low and low income
units, as well as the maximum housing expenditurelth�esholds for age -restricted, units over the two
different time periods discussed above.
Prnnnrtinnal FYnenditure RequirementrI TABLE 11
RHNA
Targeting
RHNA
Targeting
Income Level
Allocation
Allocation
Requirement
Allocation 2006-
Requirement
1998-2005
(% of Total)
2014 (Units)'
(% of Total)
(Units)
Very Low (min) "'
178
37%
1,065
41%
Low (min) "
103
22%
724
28%
Moderate/Unrestricted. n ax
197,6
' 41 %
796
31 %
477'_.
100%
2,585
100%
Census
Targeting
CHAS
Targeting
Age Category
Allocation
Requirement
Allocation
Requirement
(Population)
(% of Total)
(Households)3
(% of Total)
Non-Age'Restricted (min)
20,521
87%
1,608
73%
Age -Re tricted-max z "
3,173
13%
595
27%
23,694
100%
2,203
100%
Southern California Association of Governments Regional Housing Needs Assessment
2Age-restricted means any housing unit that is not available to all persons regardless of age.
3 Data of low income households with a member under the age of 65 is not readily available from the Census.
The nearest metric for such Census data represents households with a member under the age of 62
(available via the Comprehensive Housing Affordability Strategy at http://socds.huduser.org/chas/index.htm).
4 "Age -restricted" means any housing unit that is not available to all persons regardless of age.
39
094
Table 12 details the Agency's Housing Fund expenditures from Fiscal Years 2001-02 through 2004-05
and 2005-06 through 2008-09 and demonstrates that the proportionality requirements are being met. It
also shows the Agency's proposed expenditures on affordable housing projects from Fiscal Years
2009-10 through 2013-14.
I
y r
( .y
Fro]
095
...
.=rtenditure
Fulfillment
Housmg�$ Spent �r I' Housng $ To[aI Housing
7i ,;"''*Pro�dt ^ rr.l ,+ontVe"'ry�Low Speon ow nt Llyon Moderate Inc. Spent
on Age-
v,? w erc�w Expenditures
Units . ¢Inc. Units«7 ,Units Res�ncted Units
r%.
rr r rr- r�
Cove Rental Housing Program
826,429
-
-
10O,u40
OLO,4zu
Residential Rehabilitation
25,590
12,795
46,930,,
37,795
85,316
Assessment/Sewer Subsidy
127,246
55,336
66,294,
-
248,877
Building Horizons
-
169,500
137,760 .-
-
307,250
Mountain View
-
-
216411
-
276,411
Hadley Villas
1,087,000
-
-
1,087,000
1,087,000
Miraflores
-
-
17,438'
- 8,719
17,438
Watercolors
-
558,643
'3,329,444'3,888,087
3,888,087
Vista Dunes
6,968,893
- '-
" 1
Jh 88,214
"'-? -
7,057,107
CVHC/Wolff Waters
8,763,853
-
^' 81,147
-
8,845,000
Total
17,852,685
5,530.398-
5,799,698
5,187, 46
29,182,782
%of Total
61%
19%-.=
20%'-
18%
100%
%Required
37%min.
22%min. ".
41%.mazy
13%max. V
2005-06 to 2008-09 (Actual)
Second Trust Deed
bib but
3138
OaO,uo i
8,712
oo,ow
-
-
331,050
Cove Rental Housing Program
322
Building Horizons
96,525 �;"'-,!
-
- 95,525
-
191,050
Watercolors
k
` 2,334922
6,841;878
9,176,800
9,176,800
Vista Dunes
24,034,341 -
--- i.. �..,-.
304,232
-
24,338,573
CVHC Wolff Waters
28,519,264
;'. -
_?1,1 264,067
-
28,783,331
Washington St. Prop, Acq.
41220,526
) (�
4 798,680,
1
-
L"^'
4,162,710
9,019,206
Shovlin Property Acquisition a
A ry`6�9,933
1
3,9g3f389
-
-
9,983,222
Total �...-.
63,757,427
11,773,605
7,591,202
13,425,010
83,122,234
%of Total -
77% - I
14%1)
9%
16%
100%
2009-10
to 2013-14 (Proposed)
Washington Street (Senior) '•a,
+ ,:Y8,516,667 '-'
9,683°333
Ty
-
18,200,000
18,200,000
Dune Palms/Highway 111
5,450,000
21,800,000
-
-
27,250,000
CentrePomte f .-'
ti I! `
-^..-1I"
Unknown
Dune Palma/Westviard Ho"
��
_ -
6,000,000
6,000,000
-
12,000,000
Village Uvq' Nork ' -
( �„'I,1 -
-
6,400,000
-
6,400,000
Foreclosed'Home Rehab
€ ! ., '•", -
4,500,000
-
-
4,500,000
Rental Housing Program"-:
40.000
-
-
-
40,000
Habitat for A, um
€ 500b00
-
-
500,000
Land Acquisition,
22,000,000
-
22,000,000
Total ":.
ri;-',14,506,667
63,983,333
12,400,000
18,200,000
90,890,000
7111^4
14%
20%
100%
2005-06to 2013-14(Actual & Proposed) I
Total ""-- 78,264,094
75,756,938
19,991,202 31,625,010 174,012,234
%of Total 450%
44%
11% 18% 100%
%Required 41%min.
28%min.
31 %max. 27%max.
During the first time period (Fiscal Years 2001-02 through 2004-05), the Agency's Housing Fund
expenditures exceeded the minimum proportionality requirement for very low income households and
did not exceed the maximum proportionality limit for moderate income households. The Agency under-
41
096
spent on low income households and over -spent on age -restricted households during the first time
period; however the Agency plans to meet these proportionality requirements by the end of the
Compliance Period. The Agency has projected $90.9 million of Housing Fund expenditures for projects
and programs implemented over the remainder of the Compliance Period (2009-10 through 2013-14).
Future Housing Fund expenditures will be used in the proportions detailed in Table 12 to ensure that
Housing Fund proportional allocation targets are met by the end of the Compliance Period. The
Agency will concentrate on expending its Housing Funds on low income and non -age restricted units to
balance over -spending on age -restricted housing during the first portion ofithe Compliance Period.
PRIOR FIVE-YEAR HOUSING FUND EXPENDITURES
Units Assisted by Housing Fund C d'
The CRL requires a recap of the number of the projects assisted by the Housing Fund to create
extremely low, very low, and low income units over,,th6 past implementation,plan period (2004-05
through 2008-09). The CRL also requires a recap ofthe number, location, level of affordability, and the
amount of Housing Funds expended on units available to families with children. Table 13 summarizes
these statistics: _'r•; 1
Housing Fund Expenditures 2004-05 through 2009-09 TABLE 13
_.,... ..
Secona Irug ueea
Cove Rental Housing Program
is
37
322,338 r
, 1
118.712
0 ,.
---
-
38
331,050
Residential Rehabilitation
0
-
i 0
;.,
1 \ f �;
1
Building Horizons
1, -
95,525�'
0
F%
-
1
95,525
95,525
2
91.050
191,050
Watercolors
., 0
-
33 t;
;
2,032,446'T
116,
7,144,354
149
9,176,800
Silverhawk (Lost Units)
fi i 10
,,i;.,
"',} `, -
0
;;'
-
75
3,500,000
75
3,500,000
Vista Dunes
79
31.003,234
0
-
1
392,446
60
31.102,631
CVHC Wolff Waters
216
371283",117
0
-
2
345,214
218
37,628,331
Shovlin Property Acquisition A120
5;989933
80
i�._;.
3,993,289
0
-
200
9,983.222
Washin ton St. Apts. Prop. Ac
73
4,220,526
83
-..
4,798,680
0
156
9,019,206
-i
$,r,79,591,474.,
205
�$'-11,133,927
210 $
12,028,940
959
$ 102,461,292
Total`.
;6"
,.
f
Note: The expenditures listed for the Building Horizons, Second Trust Deed, and Residential Rehabilitation programs are inclusive of expenditures made
on units that have been "lost" since the money was spent. Although lost units do not fulfill inclusionary housing obligations, the proportionality of
expenditures does not change. The total units reported in this table does not indicate total units produced to fulfill indusionary housing obligations.
Housing Units Constructed During Prior Implementation Plan Without Housing Funds
Since 2005, no aff6rda6je units featuring long term covenants (affordable units with covenants of at
least 45 years for ownership housing or 55 years for rental housing) have been created with funds other
than the Housing Funds (although several units have been funded with a combination of Housing
Funds and other funds such as State tax credits).
Prior to 2005, 216 affordable units were constructed in the Project Areas without Housing Funds. The
Coachella Valley Housing Coalition built 100 units in the Project Areas that are restricted to low income
households. The last phase of these homes was built in 2000-01. The Villa Cortina tax credit project
42
091
produced 116 affordable units in Fiscal Year 1996-97. The project has 58 very low income units and 58
low income units.
D
1
43
r� }
ti
r
�i
APPENDICES
APPENDIX 1
Summary of Pass Through Agreements
Prior to January 1, 1994, the CRL permitted redevelopment agencies to enter into tax sharing
agreements with affected taxing agencies. The Agency has such agreements that provide for payment
of certain tax increment revenues from the Project Areas; some of these payments are senior to debt
service on bonds, while others are subordinate. The pertinent provisions�of these agreements are
summarized below.
PROJECT NO.1
Coachella Valley Mosquito Abatement District
Pursuant to the August 8, 1984, "Settlement and
between the Coachella Valley Mosquito Abatement")
Mosquito Abatement District is to receive its full 100:
the net tax increment (net of Housing Fund deposits;
currently 1.38 percent. This pass -through obligation
Coachella Valley Unified School
On April 2, 1991, the Agency and the `Cc
"Agreement for Cooperation between the Cx
Quinta and the La Quinta Redevelopment d
payments to be made by the Agency to the
payments are indicated below l `
al Release and Cooperation Agreement"
the City of La Quinta and the Agency, the
share of the District's 1.43 percent levy of
evy,shall not exceed 1.43 percent and it is
to all.bond debt service payments.
UnifiedSchool District entered into the
Unified School District and the City of La
Agreement -provides for a fixed series of
ev Unified School District. The remaining
Al
Payment Date Amount Payable
!' July 12009 "`
$396,875.25
y� January 1, 2010
_$404,812.75
�`$404,812.75
Julya1,_2010
January,,1, 2011
$412,909.25
1,. July 1;Lp11
$412,909.25
January 1 2012
$421,167.25
01 L July 1, 22-"
$421,167.25
Further, the Agreement provides "that these payments shall be subordinated to debt service payments
for the 1985 Tax Allocation Bonds (refunded with the Series 1990 Tax Allocation Bonds) and 1989 Tax
Allocation Bonds, or'ahy refiunding bond issues related thereto.
Coachella Valley Water District
The "Agreement for Cooperation between the City of La Quinta, the La Quinta Redevelopment Agency,
and the Coachella Valley Water District" dated November 29, 1983, requires that the Agency pay to the
Coachella Valley Water District ("CVWD") a portion of the CVWD share of the gross tax increment,
equal to 1.2 percent. The Agreement provides that such payments shall not be subordinate to all debt
service other than that previously issued to finance flood control improvements. Therefore, these
payments are not subordinate to bond debt service payments.
45
100
County General Fund, Library, and Fire Districts
Pursuant to the "Replacement Cooperation Agreement Between the County of Riverside and the City of
La Quinta and the La Quinta Redevelopment Agency" executed on December 21, 1993, the County
General Fund, Library District, and Fire District are to receive their full 100 percent share of the gross
(before Housing Fund deposits) tax increment. The County General Fund tax levy within the Project
Area is 24.41 percent, while the Library and Fire District tax levies are 2.74 percent and 5.91 percent,
respectively. In addition to these amounts, the Agency is to pay to the.County General Fund the
following annual repayments of previously deferred pass -through identified in the Replacement
Cooperation Agreement as "Amount Owed":
9
f.
Fiscal Years Annual, -Payment
2000-01 through 2002-03 $1,,803,7W
2002-03 through 2005-06 $2,190,473
The Replacement Cooperation Agreement provides that the payment of County tax, increment revenue
is subordinate to debt service for existing Project Area bond debt, and any future bonds issued in
connection with Project No. 1. The Agreement does'tequire the Agency to size new bond issuances in
such a way that sufficient funds are projected to be available.to satisfy its obligations to the County
pursuant to the Agreement without subordination. The -Agency has retired the remaining "Amount
Owed" to the County from 2001 Bond pro6eeds.
Desert Community College N.
The Agency entered into the "Agreement for .Cooperation petween the Desert Community College
District and the La Quinta Redevelopment Agency" on. December 21, 1993. Until Fiscal Year 2005-06,
the Agency retained all ofitl4basert yt ommunhy College Districts,( DCCD") 7.59 percent share of the
gross tax increment revenue. After reaching this threshold, for a period of ten successive years, the
Agency will pay 20 percent of the DCCD's share to.the District. Beginning in the eleventh year following
Fiscal Year 2005-06, the Agency will,pay 25 percent of the DCCD share. The Agreement provides that
payments to the District d4 not constitute an "express within the meaning of Health and Safety
Code Section 33671.5, and therefore, payments to the District are subordinate to all bond debt service.
Desert Sands Unrfie'd School District
11
On Dgcernber 21 1993>; the Agency' approved an "Agreement for Cooperation between the Desert
Sands,.Unified School District and the City of La Quinta and the La Quinta Redevelopment Agency."
The Agreement with Desert Sands Unified School District ("DSUSD") requires that the Agency deposit
a portion 'of the DSUSD's revenues into a capital fund to be used for the purpose of financing various
capital projects"_that benefit both€DSUSD and the Project Area. Between 1994 and 1998, the Agency
deposited the required fixed series payments into the capital fund. A second series of payments to the
capital fund began�inlFiscal Year 2005-06, the fiscal year following the fiscal year in which the Agency's
cumulative tax incrementrevenues from the Project exceeded $300.0 million. During the first ten years
from Fiscal Year 2005-06'`the Agency will make an annual deposit equal to 20 percent of the DSUSD's
27.70 percent share. Beginning in the eleventh year and continuing for the Plan's duration, the Agency
will deposit 25 percent of the DSUSD's share of tax increment.
The Agreement provides that payments to the District do not constitute an "express pledge' within the
meaning of Health and Safety Code Section 33671.5, and therefore, payments to the District are
subordinate to all bond debt service.
M
o l
Statutory Pass Through Payments
The adoption of Ordinance No. 388 in Fiscal Year 2003-04 to eliminate the time limit to incur debt
triggered the need for the Agency to make "statutory pass -through payments" under Health and Safety
Code Section 33607.7 to those taxing agencies with which the Agency does not have a pass -through
agreement. Statutory pass -through payments are made to the following taxing agencies that the
Agency does not have pass -through agreements with (each taxing agency's respective share of the 1
percent general levy is also shown).
County Superintendent of Schools (4.13 percent)
Coachella Valley Public Cemetery (0.34 percent)
Coachella Recreation and Park (2.09 percent):''
Coachella Valley Resource Conservation District (0.04 percent)
City of La Quinta (5.49 percent) (first 25 percent only - see below)
Under Health and Safety Code Section 33607.7, the amount of the statutory pass -through payments is
a portion of the Agency tax increment (after deduction of-th'6, portion of tax increment, currently 20
percent, required to be deposited into the Agency's Housing Fund), based on a series of adjusted base
year assessed valuations. Starting in Fiscal Year 2005-06 and 'each year thereafter for duration of the
Redevelopment Plan, the amount of the statutory pass, -through payments under Health and Safety
Code Section 33607.7 to each of the five above listed taxing egencies,are the sum of (A), (B), and (C)
below:
(A) The taxing agency's -respective share of 25 percent (after deduction of the 20 percent
Housing Fund deposit) of the tax"increment received by the Agency based on the
difference between the Project,,Area No. 1 assessed valuation in such year
compared to thelffirst adjusted based year assessed valuation (i.e., the valuation
existing as of Fiscal Year 2004-05); plus
Starting in tfiel11th year of payments (i.e., Fiscal Year 2015-16), the payment is
? equal to ithe amount calculated pursuant to (A) above plus the taxing agency's
respective share of 21, percent (after deduction of the 20 percent Housing Fund
deposit) of the ta)`46n rement received by the Agency based on the difference
between Project Area No. 1 assessed valuation in such year compared to a second
;;,,adjusted based year assessed valuation which is the assessed valuation as of Year
10 (i.e., Fiscal Year 2014-15); plus
(C) Starting','in. the 31 st year of payments (i.e., Fiscal Year 2035-36), the payment is
equal to amounts calculated pursuant to (A) and (B) above, plus the taxing agency's
respective share of 14 percent (after deduction of the 20 percent Housing Fund
deposit) of the tax increment received by the Agency based on the difference
between Project Area No. 1 assessed valuation in such year compared to a third
adjusted based year assessed valuation which is the assessed valuation as of Year
30 (i.e., Fiscal Year 2034-35).
These statutory pass -through payments are not subordinated to new bond debt service payments.
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1.02
PROJECT NO. 2
Coachella Valley Community College District
This agreement provides that the College District shall receive 50 percent of the tax increment revenue
generated by the College District's 7.72 percent property tax levy.
Coachella Valley Mosquito and Vector Control District
The agreement provides that the Mosquito and Vector Control District shall receive 100 percent the tax
increment revenue generated by its 1.41 percent property tax levy
Coachella Valley Recreation and Park District
Alf]
The agreement provides that the Agency shall retain 100 percent of the tax increment revenue
generated by the Park District's 2.13 percent properiy'tax levy. This revenue,' however, must be
expended on identified park -related capital improvements. Due to th6'Agency's expenditure to acquire
land acquisition and make park improvements in Project Area No 2,'the Agency is entitled to retain the
Park District's tax increment revenue until Fiscal Year 2003-04.' After 2003-04, the Agency anticipates
that it will continue to fund park -related projects with the Park bistrict's share of annual tax increment
revenue.`'
Coachella Valley Water District
The agreement provides
generated by the Water I
County of Riversi
The Agency's Cool:
increment revenue
percent), and .Eire.
County $1,.a mjllton
by the.C_aunty's G
Plan.�1`
ity Superintendent of -Schools
the
Eater District shall receive 100-percent of the tax increment revenue
7 percent property tax levy.' u,
ent with the Countyof Riverside provides for full payment of the tax
the Cdu-bty General- Fund (25.53 percent), Library District (2.80
ircent) property tax levies. Additionally, the Agency is paying the
years to reimburse the County for tax increment revenue generated
iperty tax levy the Agency retained during the initial years of the
This agreement,. provides that the Superintendent of Schools shall receive 50 percent of the tax
increment revenue, generated 1 y'the Superintendent of Schools' 4.18 percent property tax levy.
Desert Sands Unified.S6 ool District
The agreement provides` that the Agency shall retain 50 percent of the tax increment revenue
generated by the School District's 37.16 percent property tax levy. The remaining 50 percent is paid to
the School District.
Statutory Pass Through Payments
The adoption of Ordinance No. 404 in Fiscal Year 2003-04 to eliminate the time limit to incur debt
triggered the need for the Agency to make "statutory pass -through payments" under Health and Safety
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Code Section 33607.7 to those taxing agencies with whom the Agency does not have a pass -through
agreement. However, the Agency has a pass -through agreement with all affected taxing agencies thus
is not required to make statutory pass -through payments.
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APPENDIX 3
of Housing Terms
There are many ways in which the Agency may create inclusionary units that satisfy the requirements
outlined in CRL Section 33413 including new construction of for -sale and rental housing, substantial
rehabilitation, and the purchase of covenants on multifamily rental housing, _.^
New Construction & Substantial Rehabilitation: For -sale (affordable) inclusionary units or inclusionary
multifamily rental housing may be created by assisting new construction or providing financing for
purchasers of new housing, and by substantially rehabilitating such units'per the CRL definition. To be
counted toward the Agency inclusionary unit need, for sale lunits must be covered by a 45-year
affordability covenant and rental units by a 55-year affordability, covenant.
Purchase of Covenants: The Agency may use the Housing Fund to subsidize multifamily units that are
not substantially rehabilitated or newly constructed, by the purchase of an affordability covenant. The
affordability covenants on multifamily units would restiict such units for a period of 55'.years. Such units
must be occupied by and affordable to very low and low, income households. The Agency may only
meet up to 50 percent of their required inclusionary unit need irrtl is'manner. Furthermore, 50 percent
of the covenants purchased must be affordable to very low and low income households. Inclusionary
units secured by the Agency through thelpurchase of covenants, substantial rehabilitation, and new
construction that are located within the bcundaries.,of the Project Areas can be counted on a one -for -
one basis. If the units are located outside of the.Plr�oject Areas'#hey only receive one-half ('/2) credit
(counted on a two -for -one basis). Mutual self+'help housing units receive,a 1/3 credit towards satisfying
inclusionary unit production requirements. i
Mutual Self-help Housinp:jMutual sef-help housing;Pefers to very low or low income, owner -occupied
housing units where residents have contributed at least 500 hours of work on the unit to ensure safe
and sanitary housing.- Mutual self-helphousing units must be deed restricted for at least 15 years.
Each housing production unit must have'a covenant recorded with the county pursuant to CRL Section
33334.3 in order to be counted. i �- '
DURATIOWOF AFFORDABILITY COVENANTS
Prior, "nuary 1. 2002 for `no less than the period of land use controls established in the
redevelopment plan.
After Janoa y 1, 2002: for theilongest feasible time, but not less than 55 years for rental housing and
45 years fdrowner occupied housing.
Under Section 33413, rental housing units may be replaced prior to the expiration of the 55-year period
with equally affordable and comparable rental units in another location within the City if (i) the
replacement units are available for occupancy prior to the displacement of any persons residing in the
subject units and (ii) the comparable replacement units are not developed using moneys in the Housing
Fund.
Under Section 33413, owner -occupied units may be sold prior to the expiration of the 45-year period for
a price in excess of what would otherwise be allowed if the units are subject to an equity sharing
agreement or some other program that protects the Agency's investment of Housing Fund monies. The
Agency must deposit the excess proceeds in the Housing Fund and within three years from the date of
the sale of the units, spend funds to make affordable an equal number of units at the same income
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level as the units sold. Only the units originally assisted by the Agency can be counted towards the
Agency's obligations under Section 33413.
AFFORDABILITY INCOME AND COST LEVELS
Section 50052.5 of Health and Safety Code defines affordable housing cost as:
• Extremely Low — Not more than 30 percent of 30 percent of the County median household income.
• Very Low - Not more than 30 percent of 50 percent of the County median household income.
• Low - Not more than 30 percent of 70 percent (or 30 percent of60 percent for rental projects) of the
County median household income.
• Moderate - Not more than 35 percent of 110 percent (or 30 percent of 120 percent for rental
projects) of the County median household income.
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IN
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La Quinta Redevelopment Agency
78-495 Calle Tampico
La Quinta, CA 92253
(760)777-7000
Adopted , 2010
i
Prepared By:
(q RIN
INTELLIGENT COMMUNITY pEYELOONENT
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