Loading...
2010 04 20 RDAeaf 44adja 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, APRIL 20, 2010 3:00 P.M. Closed Session / 4:00 P.M. Open Session CALL TO ORDER Beginning Resolution No. RA 2010-005 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. 1. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR, DOUGLAS R. EVANS, PURSUANT TO GOVERNMENT CODE SECTION 54956.8 CONCERNING POTENTIAL TERMS AND CONDITIONS OF ACQUISITION AND/OR DISPOSITION OF A PORTION OF 525± ACRES LOCATED AT THE SOUTHWEST CORNER OF AVENUE 52 AND JEFFERSON STREET. PROPERTY OWNER/NEGOTIATOR: LRCF SR1, LLC, FORMERLY KNOWN AS LDD SILVERROCK, LLC, THEODORE R. LENNON, JR. Redevelopment Agency Agenda 1 April 20, 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 1. APPROVAL OF MINUTES OF APRIL 6, 2010. CONSENT CALENDAR NOTE: Consent Calendar items are considered to be routine in nature and will be approved by one motion. 1. APPROVAL OF DEMAND REGISTER DATED APRIL 20, 2010. 2. RECEIVE AND FILE TREASURER'S REPORT DATED FEBRUARY 28, 2010. 3. RECEIVE AND FILE REVENUE & EXPENDITURES REPORT DATED FEBRUARY 28, 2010 AND THE INVESTMENT SUMMARY REPORT FOR THE QUARTER ENDING MARCH 31, 2010. 4. APPROVAL OF AMENDMENT NO. 4 TO THE DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE LA QUINTA REDEVELOPMENT AGENCY AND LRCF SR1, LLC, FORMERLY KNOWN AS LDD SILVERROCK, LLC, AND AUTHORIZATION FOR THE EXECUTIVE DIRECTOR TO EXECUTE THE AMENDMENT. 5. ADOPTION OF A RESOLUTION APPROVING THE EXPENDITURE OF FUNDS IN THE FISCAL YEAR 2010-2011 THROUGH 2O14-2015 CAPITAL IMPROVEMENT PROGRAM AND MAKING CERTAIN FINDINGS PURSUANT TO HEALTH AND SAFETY CODE SECTION 33445(a). Redevelopment Agency Agenda 2 April 20, 2010 BUSINESS SESSION - NONE STUDY SESSION — NONE CHAIR AND BOARD MEMBERS' ITEMS — NONE PUBLIC HEARINGS — NONE ADJOURNMENT The next regular meeting of the Redevelopment Agency will be held on May 4, 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 April 20, 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 111, on April 16, 2010. i D: April 16, 2010 �is7%NICA J. NTECINO, City Clerk City of La Quinta, California 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. Redevelopment Agency Agenda 3 April 20, 2010 F �z �cFM OF 19wy RDA MEETING DATE: April 20, 2010 ITEM TITLE: Demand Register Dated April 20, 2010 RECOMMENDATION: It is recommended the Redevelopment Agency Board: Receive and File the Demand Register Dated April 20, 2010 of which $489,416.33 represents Redevelopment Agency Expenditures. AGENDA CATEGORY: BUSINESS SESSION CONSENT CALENDAR STUDY SESSION PUBLIC HEARING PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA C witif 4 sep Quilknu COUNCIL/RDA MEETING DATE: April 20, 2010 ITEM TITLE: Receive and File Treasurer's Report as of February 28, 2010 RECOMMENDATION: It is recommended the Redevelopment Agency Board: Receive and file. AGENDA CATEGORY: BUSINESS SESSION: _ CONSENT CALENDAR: C STUDY SESSION: PUBLIC HEARING: PLEASE SEE RELATED BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA F`N OF TK4'O COUNCILIRDA MEETING DATE: April 20, 2010 AGENDA CATEGORY: BUSINESS SESSION: ITEM TITLE: Receive and', File Revenue and Expenditure Report for February 28, 2010 and Investment CONSENT CALENDAR: Summary Report for the Quarter Ending March 31, STUDY SESSION: 2010 PUBLIC HEARING: RECOMMENDATION: Receive and File. FISCAL IMPLICATIONS: None. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: Receive and File the Statement of Revenue and Expenditures for February 28, 2010 and Investment Summary Report for the Quarter ending March 31, 2010 for the La Quinta Redevelopment Agency. Respectfully submitted, --� 4 M d John M. Falconer, Finance Director Approved for submission by: Thomas P. Genovese, Executive Director Attachments: 1. Revenue and Expenditures for February 28, 2010 2. Investment Summary Report dated March 31, 2010 2 A I I AL;HMtN I -1 071O112009 - 0212812010 LA QUINTA REDEVELOPMENT AGENCY ADJUSTED REMAINING % REVENUE SUMMARY BUDGET RECEIVED BUDGET RECEIVED PROJECT AREA NO. 1: LOWINIODERATE TAX FUND: Tax Increment 9,623,500.00 4,810,840.06 4,812,659.94 49.990% Allocated Interest 68,700.00 3,180.62 65,519.38 4.630% Non Allocated Interest 0.00 981.40 (981.40) 0.000% Miscellaneous revenue 0.00 0.00 0.00 0.000% Non Allocated Interest 0.00 0.00 0.00 0.000% LQRP-Rent Revenue 225,000.00 171,206.06 53,793.94 76.090% Home Sales Proceeds 150,000.00 0.00 150,000.00 0.000% Sale of Land 0.00 0.00 0.00 0.000% Sewer Subsidy Reimbursements 0.00 0.00 0.00 0.000% Rehabilitation Loan Repayments 0.00 0.00 0.00 0.000% 2nd Trust Deed Repayment 0.00 57,525.00 (57,525.00) 0.000% Williams Note Payment 19,444.00 19,444.00 0.00 100.000% Transfer In 0.00 0.00 0.00 0.000% TOTAL LOW/MOD TAX 10,086,644.00 5,063,177.14 5,023,466.86 50.200% DEBT SERVICE FUND: Tax Increment 38,494,000.00 19,183,437.19 19,310,562.81 49.830% Allocated Interest 75,000.00 27,503.81 47,496.19 36.670% Non Allocated Interest 0.00 0.00 0.00 0.000% Interest -County Loan 0.00 0.00 0.00 0,000% Interest Advance Proceeds 0.00 0.00 0.00 0,000% Transfers In 4.438,892.00 2.981,837,27 1,457,054.73 67,180% TOTAL DEBT SERVICE 43,007,892.00 22,192,778.27 20,815,113.73 51.600% CAPITAL IMPROVEMENT FUND Pooled Cash Allocated Interest 162,000.00 67,882.93 94,117.07 41.900% Non Allocated Interest 34,500.00 20,070.36 14,429.64 58.170% Developer Agreement Funding 0.00 0.00 0.00 0.000% Sale of Land Proceeds 0.00 0.00 0.00 0.000% Rental Income 2,639.00 2,639.33 (0.33) 100.010% Litigation Proceeds 0.00 325.000.00 (325,000.00) 0.000% Transfers In 0.00 0.00 0.00 0.000% TOTAL CAPITAL IMPROVEMENT 199,139.00 415,592.62 (216,453.62) 208.690% 3 LA OUINTA REDEVELOPMENT AGENCY ADJUSTED 2I28110 REMAINING EXPENDITURE SUMMARY BUDGET EXPENDITURES ENCUMBERED BUDGET PROJECT AREA NO. 1: LOWIMODERATE TAX FUND: PERSONNEL 1,100.00 0.00 0.00 SERVICES 372.990.00 230238.64 0.00 BUILDING HORIZONS 0,00 000 0.00 LO RENTAL PROGRAM 275,000.00 148,732,38 0,00 2nd TRUST DEED PROGRAM 0,00 0.00 0,00 BUILDING HORIZONS 250,000.00 0.00 0.00 LAND ACQUISITION 0.00 0.00 0.00 LOW MOD HOUSING PROJECTS 0.00 9.000.00 0.00 FORECLOSURE 330,98400 2.000.00 0.00 REIMBURSEMENT TO GEN FUND 856,961.00 557,925.44 0.00 TRANSFERS OUT 4,897,908,00 3,257,223.85 0.00 TOTAL LOWIMOD TAX DEBT SERVICE FUND: SERVICES 484,400.00 473,766.03 0.00 10,633.97 BOND PRINCIPAL 3,135,000.00 3,135,000.00 0.00 0.00 BONDINTEREST 7,144,062.00 3,620,943.13 0.00 3,523,118.87 INTEREST CITY ADVANCE 1,428,33300 LIK999.99 0.00 573,333.01 PASS THROUGH PAYMENTS 23,526.621.00 8.816,493.06 000 14,710.127.94 ERAF SHIFT 23,560,481,00 0.00 0.00 23,560.481,00 TRANSFERS OUT 3,961,932,00 2,551,604.97 0,00 1,410,327.03 TOTAL DEBT SERVICE CAPITAL IMPROVEMENT FUND: PERSONNEL 1.100.00 0,00 0.00 1,100,00 SERVICES 776,600.00 437,756.01 0.00 338.843.99 LAND ACQUISITION 0.00 0.00 0.00 0.00 ASSESSMENT DISTRICT 0.00 0.00 0.00 0.00 ADVERTISING -ECONOMIC DEV 10,000.00 0.00 000 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 387,928,00 255,557.72 0.00 132.370.28 TRANSFERS OUT 42,310,767.00 446,913.55 0.00 41,863,853.45 TOTAL CAPITAL IMPROVEMENT El LA QUINTA REDEVELOPMENT AGENCY REVENUE SUMMARY PROJECT AREA NO. 2: LOW/MODERATE TAX FUND: Tax Increment Allocated Interest Non Allocated Interest Wash St Apts Interest Income WSA Fed Govt Assistance Pymts WSA Fed Govt Interest Rate Subsidy Developer funding Wash St Apts Rental Income Wash St Apts Other Revenues 2nd Trust Deed Repayment ERAF Shift - Interest Sale of Land Transfer In TOTAL LOW/MOD TAX 2004 LOW/MODERATE BOND FUND: Allocated Interest Home Sale Proceeds Non Allocated Interest Transfer In TOTAL LOW/MOD BOND DEBT SERVICE FUND: Tax Increment Allocated Interest Non Allocated Interest Interest Advance Proceeds Transferin TOTAL DEBT SERVICE CAPITAL IMPROVEMENT FUND: Allocated Interest Non Allocated Interest Misc Revenue Sale of land Transfers In TOTAL CAPITAL IMPROVEMENT 07/01 /2009 .02/2812010 ADJUSTED REMAINING % BUDGET RECEIVED BUDGET RECEIVED 5,411,100.00 2,601,348.57 2,809,751.43 48.070% 98,100.00 35,042.43 63,057.57 35.720% 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% 25,000.00 23,444.00 1,556.00 93.780% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0.000% 6,203,500.00 2,870,795.00 3,332,705.00 46.280% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0.000% 20,000.00 11,273.64 8,726.36 56.370% 0.00 0.00 0.00 0.000% 20,000.00 11,273.64 8,726.36 56.370% 21,644,500.00 10,392,523.29 11,251,976.71 48.010% 100,000.00 30,175.88 69,824.12 30.180% 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% 23,695,899.00 11,679,459.83 12,016,439.17 49.290% 11,400.00 4,648.21 6,751.79 40.770% 9,250.00 0.00 9,250.00 0.000% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0.000% 2,600,000.00 2,600,000.00 0.00 100.000% 2,620,650.00 2,604,648.21 16,001.79 99.390% LA QUINTA REDEVELOPMENT AGENCY ADJUSTED V28110 REMAINING EXPENDITURE SUMMARY BUDGET EXPENDITURES ENCUMBERED BUDGET PROJECT AREA NO 2, LOWIMODERATE TAX FUND: PERSONNEL 700.00 0.00 0.00 700.00 SERVICES 559,867 00 283.370.87 0.00 276,490.13 WASH ST APTS OTHER EXPENSES 429,300.00 141.333.73 000 287,966.27 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 250,00000 0.00 0.00 250,000.00 VISTA DUNES PARK 000 0.00 0.00 0.00 LAND ACQUISITION 0.00 0,00 0,00 0,00 WSA PRIN/PROVIDENT LOAN 25.325.00 6,194.08 0.00 17,130.92 WSA PRIN/USDA LOAN 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 474,869.00 306,153.84 0.00 168,715.16 TRANSFERS OUT 12.143,138.00 1:716,500.6] 000 10,426,637.13 TOTAL LOWIMOD TAX 2004 LOW/MODERATE BOND FUND HOUSING PROGRAMS 824,000.00 618,000.00 0.00 206,000.00 LAND 0.00 0.00 0.00 ODD TRANSFERS OUT 731,74000 (21543 ]02.471 000 287544247 TOTAL LOWIMOD BOND- ,555J4U.U0 T525:7VL470- 3 DEBT SERVICE FUND: SERVICES 255,10000 253.227.46 000 1,872.54 BOND PRINCIPAL 120,000.00 120,000.00 0.D0 0.00 BONDINTEREST 299,550.00 151,312,50 0.00 148,237.50 INTEREST CITY ADVANCE 1,656,528,00 1,104,352.00 0.00 552.176.00 PASS THROUGH PAYMENTS 18,291,681.00 4,417,929.27 0.00 13,873,751.73 TRANSFERS OUT 4.551,399.00 3,856,760.66 0.00 694,638.34 TOTAL DEBT SERVICE 25.174.254.00 CAPITAL IMPROVEMENT FUND: PERSONNEL 700.00 40,00 0.00 660.00 SERVICES 275,360.00 65,920,59 0.00 209,439,41 CAPITAL 000 0.00 0.00 000 ECONOMIC DEVELOPMENT ACTIVITY 000 000 0.00 0.00 REIMBURSEMENT TO GEN FUND 64.019.00 42,281 00 0.00 21.738,00 TRANSFERS OUT 3,303,371.00 337,672.11 0.00 2,965.698.89 TOTAL CAPITAL IMPROVEMENT ATTACHMENT 2 N O n N r a N W n O O r O N M 0 e O 0 0 0 0 0 0 0 m �R It Q 'n 0 O � N O NO N 0 0 0 0 0 0 0 0 ie mm o00 00 o6 0 > od000000000000 m` oc o 0 0 A A A A A A T A T A m p r n x x x x K K K x K K Tc m d v m m m d m m m m �p � Z Z Z Z Z Z Z Z Z Z Z aaaaDaaaDav c c c c c c c c c c c O N (0 t0 (O fO tO tO m m m m ------------ C Z'Z'------ - -- -- bC N N N N N N N N N E N N N N N N m m m m m m m m m m m N N m N m m m m m m N c c c c c c c 0 0 0 0 0 0 0 0 0 0 0 c c c c > c N m O U U U U U N t%1 qIL J m 'Uxa n a as `o U a H a H 0 0 0>> -Inw-N N Q N Q N Q Q Q Q Q a a Q Q 0 0 It 0 0 0 0 O m N O O m o K 00: m K K C d 0of w O O O V 0 0 0 0 0 000 00000 W 0I 0) Ol N O N O N N N N N N � N Y Y Y Y Y Y Y Y Y Y Y Y Y c c c c c c c c c c c c c m m m m m m m m m m m m m m m m m m m m m m m m m m f/1 N (� fN fA f� fN fA f/J N y N N J d V 3 m a c i a 0 o o U m « ry m c c o, o`to e c u E N 0- O U U E 'O m c N O c CY 6 0 E (ry 0, U Jamm O o a E N C U o m o O U OW O C m m 7 COUNCIL/RDA MEETING DATE: April 20, 2010 ITEM TITLE: Approval of Amendment No. 4 to the Disposition and Development Agreement by and between the La Quinta Redevelopment Agency and LRCF SR1, LLC, formerly known as LDD SilverRock, LLC and Authorize the Executive Director to Execute the Amendment RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: _ CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Approve Amendment No. 4 to the Disposition and Development Agreement by and between the La Quinta Redevelopment Agency and LRCF SR1, LLC, and authorize the Executive Director to execute the amendment. FISCAL IMPLICATIONS: None at this time. BACKGROUND AND OVERVIEW: On December 19, 2006, the Agency entered into a Disposition and Development Agreement ("DDA") with LRCF SR1, LLC (under its former name, LDD SilverRock, LLC) ("LRCF") for the development of a boutique hotel, resort hotel, casitas, and a resort retail village. The outside date to close escrow for the Boutique Hotel Parcel was originally designated as August 19, 2008. That date has been extended pursuant to a series of amendments approved by the Agency Board, and through extensions provided by the Executive Director by authority granted under the DDA and under the amendments. The latest amendment, approved by the Agency Board on November 17, 2009, extended the outside date to close escrow for the Boutique Hotel Parcel until January 31, 2010 and granted the Executive Director authority to extend that date an additional three months, until April 30, 2010. The Executive Director has exercised its authority and extended such date to April 30, 2010. Agency staff has been in negotiations with LRCF on the terms and conditions to be included in an Amended and Restated Disposition and Development Agreement, but need additional time to complete the negotiations and process the agreement. To allow for such additional time, Agency staff has prepared Amendment No. 4 (Attachment 1) which would further extend the outside date to close escrow for the Boutique Hotel Parcel to July 31, 2010. Amendment No. 4 does not grant the Executive Director authority to extend the date any further. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency Board include: 1. Approve Amendment No. 4 to the Disposition and Development Agreement by and between the La Quinta Redevelopment Agency and LRCF SR1, LLC and authorize the Executive Director to execute the same; or 2. Do not approve Amendment No. 4 to the Disposition and Development Agreement by and between the La Quinta Redevelopment Agency and LRCF SR1, LLC; or 3. Provide staff with alternative direction. Respectfully submitted, e+ Douglas R. vans Assistant City Manager — Development Services Approved for submission by: -)4 FI-" Thomas P. Genovese, Executive Director Attachment: 1 . Amendment No. 4 to Disposition and Development Agreement ATTACHMENT 1 AMENDMENT NO. 4 TO DISPOSITION AND DEVELOPMENT AGREEMENT This AMENDMENT NO. 4 TO DISPOSITION AND DEVELOPMENT AGREEMENT ("Amendment No. 4") is made and entered into as of April _, 2010 ("Effective Date") by and between the LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic ("Agency"), and LRCF SRI, LLC, formerly known as LDD SILVERROCK, LLC, a Delaware limited liability company ("Developer"). RECITALS: A. On or about December 19, 2006, the Agency and Developer entered into that certain Disposition and Development Agreement (the "Original DDA"), pursuant to which Agency agreed to sell to Developer, and Developer agreed to purchase from Agency, that certain real property located at the southwest intersection of Jefferson Street and Avenue 52 in the City of La Quinta, California 92253 and to construct, complete, and operate thereon a commercial project containing a luxury four -star quality or higher boutique hotel and a four -star quality or higher luxury resort hotel, a retail village, condominium hotel units, resort units, and associated amenities. B. Developer has assigned to LRCF SR2, LLC, a Delaware limited liability company, all of its rights and obligations in, under and to the Original DDA with respect to all of the real property identified in the Original DDA other than the parcels identified therein as the "Boutique Hotel Parcel" and the "Ranch Villas Parcel." C. On or about October 23, 2008, the Agency and Developer entered into that certain Amendment No. 1 to Disposition and Development Agreement to provide Developer with extensions to certain timeframes under the Original DDA ("Amendment No. I"). D. On or about October 21, 2009, the Agency and Developer entered into that certain Amendment No. 2 to Disposition and Development Agreement to allow for the disbursement to Agency of portions of the Deposit Payments made by Developer pursuant to Section 208 of the DDA to cover Agency's legal costs and fees in preparing a comprehensive amendment to the DDA ("Amendment No. 2"). E. On or about November 20, 2009, the Agency and Developer entered into that certain Amendment No. 3 to Disposition and Development Agreement to provide Developer with an additional extension to the outside closing date for the Boutique Hotel Parcel and Ranch Villas Parcel (e.g., Item No. 21 in each of the Schedule of Performance for the Boutique Hotel and the Schedule of Performance for the Ranch Villas Development), to extend each of such dates to January 31, 2010 ("Amendment No. 3"). The Original DDA, as amended by Amendment No. 1, Amendment No. 2, and Amendment No. 3, is hereinafter referred to as the "DDA." All capitalized terms not specifically defined herein shall have the meanings ascribed thereto in the DDA. F. Pursuant to authority granted by the Agency Board of Directors in Amendment No. 3, the Agency Executive Director has granted the Developer a further extension to the 882/015610-0084 1078735.01 a03/24/10 -I- outside closing date for the Boutique Hotel Parcel and Ranch Villas Parcel, such that the Time for Completion for each Item is currently April 30, 2010. G. Developer and Agency now wish to further extend each such Time for Completion to provide the parties with sufficient time to complete a comprehensive amendment to the DDA. AGREEMENT: NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated herein by this reference, and for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 1. The DDA is hereby amended as follows: 1.1 To revise the Time for Completion in Item 21 of the Schedule of Performance for the Boutique Hotel to replace the date "April 30, 2010" with "July 31, 2010." 1.2 To revise the Time for Completion in Item 21 of the Schedule of Performance for the Ranch Villas Development to replace the date "April 30, 2010" with "July 31, 2010." 2. Except as otherwise expressly provided in this Amendment No. 4, all of the terms and conditions of the DDA shall remain in full force and effect. 3. In the event of any action between Agency and Developer seeking enforcement of any of the terms and conditions to this Amendment No. 4, the prevailing party in such action shall be awarded, in addition to damages, injunctive or other relief, its reasonable costs and expenses, including without limitation its expert witness fees and reasonable attorney's fees. 4. This Amendment No. 4 shall be construed according to its fair meaning and as if prepared by both parties hereto. 5. This Amendment No. 4 shall be governed by the internal laws of the State of California and any question arising hereunder shall be construed or determined according to such law. The Superior Court of the State of California in and for the County of Riverside, or such other appropriate court in such county, shall have exclusive jurisdiction of any litigation between the parties concerning this Amendment No. 4. Service of process on Agency shall be made in accordance with California law. Service of process on Developer shall be made in any manner permitted by California law and shall be effective whether served inside or outside California. 6. Time is of the essence of this Amendment No. 4 and of each and every term and provision hereof. 7. A waiver of a provision hereof, or modification of any provision herein contained, shall be effective only if said waiver or modification is in writing, and signed by both Agency and Developer. No waiver of any breach or default by any party hereto shall be considered to be a waiver of any breach or default unless expressly provided herein or in the waiver. 882/0156IM084 1078735.01 a03/24/10 -2- 8. This Amendment No. 4 may be executed in counterparts, each of which, when this Amendment No. 4 has been signed by all the parties hereto, shall be deemed an original, and such counterparts shall constitute one and the same instrument. 9. The person(s) executing this Amendment No. 4 on behalf of each of the parties hereto represent and warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Amendment No. 4 on behalf of said party, (iii) by so executing this Amendment No. 4 such party is formally bound to the provisions of this Amendment No. 4, and (iv) the entering into this Amendment No. 4 does not violate any provision of any other agreement to which such party is bound. IN WITNESS WHEREOF, Agency and Developer each hereby represents that it has read this Amendment No. 4, understands it, and hereby executes this Amendment No. 4 to be effective as of the day and year first written above. Date: Am. S7 ( 2010 Date: "Developer" LRCF SRI, LLC, a Delaware limited liability company By:�l�a�- Its: Q "Agency" LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic 2010 By: Executive Director ATTEST: Veronica J. Montecino, Agency Secretary APPROVED AS TO FORM: RUTAN & TUCKER, LLP M. Katherine Jenson, Agency Counsel 182/015610-0084 1078735.01 a0324n0 -3- Qum& CF`k OF'FNp'O AGENDA CATEGORY: COUNCIL/RDA MEETING DATE: April 20, 2010 BUSINESS SESSION: ITEM ITEM TITLE: Adoption of a Resolution Approving the Expenditure of Funds in the Fiscal CONSENT CALENDAR: Year 2010-201 1 Through 2014-2015 Capital STUDY SESSION: Improvement Program, and Making Certain Findings Pursuant to Health and Safety Code Section PUBLIC HEARING: 33445(a) RECOMMENDATION: Adopt a Resolution of the La Quinta Redevelopment Agency approving the expenditure of funds for improvements set forth in the Fiscal Year 2010-2011 through 2014-2015 Capital Improvement Plan (CIP) (Attachment 1), and making certain findings pursuant to Health and Safety Code Section 33445(a) with respect to such expenditure, and authorizing to the use of La Quinta Redevelopment Agency (RDA) funding for the improvements identified in the CIP. FISCAL IMPLICATIONS: Adoption of the Resolution makes certain findings regarding the projects identified in the Fiscal Year 2010-2011 through 2014-2015 CIP. The findings relate to the use of RDA Project Area No. 1 for improvements within or contiguous to that project Area and to the use of Project Area No. 2 funds for improvements within or contiguous to that project Area. The actual allocation of funds for these projects will not be approved until the Agency Board approves the Fiscal Year 2010-2011 annual operating budget. The first year of the five-year forecast, or capital budget, will be included in the City's annual operating budget. When the City Council approves the annual operating budget for Fiscal Year 2010-2011, it will also authorize the expenditure of $6,267,558 for Fiscal Year 2010-2011 capital project expenditures. CHARTER CITY IMPLICATIONS: Because RDA funding will be used on several of the proposed projects, the RDA funded projects will be bid with a requirement that the contractors pay prevailing wage. BACKGROUND AND OVERVIEW: On March 16, 2009, staff presented the draft Fiscal Year 2010-2011 through Fiscal Year 2014-2015 CIP to the City Council for review and discussion during the Study Session. Following discussion, it was the consensus of the City Council that the CIP be addressed during a Public Hearing on April 20, 2010. The following additional actions have been taken by staff: • Staff recommends the addition of project 2010-11 — New Traffic Signal (Eisenhower Drive at Sinaloa) to the list of projects identified to receive funding during Fiscal Year 2010-2011; and • Staff has amended the draft CIP to remove the Jefferson Street Interchange originally scheduled to receive City RDA funding during Fiscal Years 2013- 2014 and 2014-2015. The City Attorney has advised RDA funding cannot be expended outside the boundaries of a municipal jurisdiction. No other City funding source has been identified at this time. Staff will continue to study this matter and will present funding recommendations in the future. The Jefferson Street Interchange is a Regional Improvement sponsored by the Coachella Valley Association of Governments (CVAG). The City of Indio is serving as the Lead Agency on behalf of CVAG, the County of Riverside, and the City of La Quinta. The total cost of the project is currently estimated at $77,886,000. CVAG has committed to fund 75% of the project costs, with the remaining 25% ($19,471,500) to be funded by the County of Riverside at 0.50%, the City of Indio at 57.4%, and the City of La Quinta at 42.1 %. The City of La Quinta's share of the cost is currently estimated at $8,197,500. It is also important to note that the overall cost estimate is still at the planning level stage and may be revised as the project progresses to construction. The project is expected to be "construction ready" during Fiscal Year 2013-2014. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency include: 1. Adopt a Resolution making certain findings pursuant to Health and Safety Code Section 33445(a) regarding the funding of improvements in the Fiscal Year 2010-2011 through 2014-2015 CIP and authorizing to the use of La Quinta Redevelopment Agency (RDA) funding for the improvements identified in the CIP; or 2. Do not adopt a Resolution approving the Fiscal Year 2010-2011 through 2014-2015 CIP and making certain findings pursuant to Health and Safety Code Section 33445(a) and consenting to the use of La Quinta RDA funding for the improvements identified in the CIP; or 3. Provide staff with alternative direction. Respectfully submitted, T' othy R. of as o , P.E. Public Works it or/City Engineer Approved for submission by: _/441L"'� Thomas P. Genovese, Executive Director Attachment: 1. Capital Improvement Program RESOLUTION NO. RA 2010- A RESOLUTION OF THE LA QUINTA REDEVELOPMENT AGENCY APPROVING THE EXPENDITURE OF FUNDS FOR CERTAIN IMPROVEMENTS SET FORTH IN THE FISCAL YEAR 2010-2011 THROUGH 2O14-2015 CAPITAL IMPROVEMENT PLAN AND MAKING CERTAIN FINDINGS PURSUANT TO HEALTH AND SAFETY CODE SECTION 33445(a) WITH RESPECT TO SUCH EXPENDITURE WHEREAS, pursuant to Government Code Section 66002, the City of La Quinta ("City") is required to review and adopt a Capital Improvement Plan (the "Plan"); and WHEREAS, the City is required to conduct a noticed public hearing for consideration and adoption of the Plan; and WHEREAS, notice of the public hearing has been given pursuant to Government Code Section 65090; and WHEREAS, the Plan is a five-year planning instrument used by the City to identify capital improvement needs and to coordinate financing and timing of those needs in a manner that maximizes the return to the public; and WHEREAS, the Plan is a statement of the City's goals, objectives and priorities for a five-year Plan and the financial commitments required to accomplish those objectives; and WHEREAS, the Fiscal Year 2010-2011 through 2014-2015 Plan proposes approximately $44,240,614 in improvement projects and $137,898,007 of unfunded additional improvement projects over the five-year period, commencing on July 1, 2010 and ending June 30, 2015; and WHEREAS, the amount allocated from the Plan for first -year projects, called the "Capital Budget," proposes $6,267,558 in improvements, as shown in Exhibit 1, which is attached hereto and made a part of this Resolution; and WHEREAS, there is inadequate funding within the City's General Fund or from other sources to completely and fully fund the improvements identified within the Capital Budget; and Resolution No. RA 2010- Capital Improvement Plan Adopted: April 20, 2010 Page 2 WHEREAS, the completion of the improvements identified within the Capital Budget that are located inside La Quinta Redevelopment Project Area No. 1 ("Project Area No. 1 "), which are identified on Exhibit 1 as funded by "PA #1 " (the "Project Area No. 1 Improvements"), will help to obtain the goals and objectives of Project Area No. 1 as well as to afford an opportunity to eliminate conditions of blight in Project Area No. 1; and WHEREAS, the completion of the improvements identified within the Capital Budget that are located inside La Quinta Redevelopment Project Area No. 2 ("Project Area No. 2"), which are identified on Exhibit 1 as funded by "PA #2" (the "Project Area No. 2 Improvements"), will help to obtain the goals and objectives of Project Area No. 2 as well as to afford an opportunity to eliminate conditions of blight in Project Area No. 2; and WHEREAS, it would be in the best interest of the public to completely fund all improvements identified within the Capital Budget. NOW THEREFORE, BE IT RESOLVED, by the La Quinta Redevelopment Agency, as follows: SECTION 1. The above recitations are true and correct. SECTION 2. Pursuant to Health and Safety Code Section 33445(a), the Agency finds and determines that: A. The Project Area No. 1 Improvements are of benefit to Project Area No. 1, by helping to eliminate blight within Project Area No. 1, in that the Project Area No. 1 Improvements consist of public infrastructure improvements, and the Redevelopment Plan for Project Area No. 1 provides for the elimination, and prevention of the spread, of blight and blighting influences through the installation, construction, or re- construction of streets, utilities, and other public facilities and improvements. B. The Project Area No. 2 Improvements are of benefit to Project Area No. 2, by helping to eliminate blight within Project Area No. 2, in that the Project Area No. 2 Improvements consist of public infrastructure improvements and one property acquisition, and the Redevelopment Plan for Project Area No. 2 provides for the elimination, and prevention of the spread, of blighting influences through the installation, construction, reconstruction, redesign, or reuse of streets, utilities, curbs, gutters, sidewalks, traffic control devices, flood control facilities and other public improvements, and also provides for Resolution No. RA 2010- Capital Improvement Plan Adopted: April 20, 2010 Page 3 property acquisition as a means of eliminating and preventing the spread of blighting influences. C. No other reasonable means of financing the Project Area No. 1 Improvements or the Project Area No. 2 Improvements are available to the community, for the following reasons: (i) City monies are dedicated to critical police, fire, and other necessary expenditures, including other capital improvement projects; (ii) the only practical means of paying for the Project Area No. 1 Improvements and the Project Area No. 2 Improvements is to use Agency funding; (iii) without Agency funding for the Project Area No. 1 Improvements and the Project Area No. 2 Improvements the Project Area No. 1 Improvement and the Project Area No. 2 Improvements would not be completed, all to the detriment of Project Area No. 1 and Project Area No. 2. D. The Project Area No. 1 Improvements and the Project Area No. 2 Improvements are consistent with the Agency's implementation plan adopted pursuant to Health and Safety Code Section 33490 (the "Implementation Plan"), in that improving public infrastructure and facilities within Project Area No. 1 and Project Area No. 2 are goals set forth in the Implementation Plan, and acquiring the Village Area Land described in Exhibit 1 is a proposed project set forth in the Implementation Plan. SECTION 3. The Agency's expenditure for the Project Area 1 Improvements and the Project Area No. 2 Improvements is necessary to effectuate the purposes of the Redevelopment Plans for Project Area No. 1 and Project Area No. 2 and is in the best interests of the City of La Quinta. SECTION 4. The Capital Budget is hereby included in the Agency's Fiscal Year 2010-2011 operating budget, which appropriates funds for specific facilities, equipment and improvements, and the Agency hereby approves the Agency's funding of the Project Area No. 1 Improvements and the Project Area No. 2 Improvements. Resolution No. RA 2010- Capital Improvement Plan Adopted: April 20, 2010 Page 4 PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta Redevelopment Agency held on this 20th day of April 2010, by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: LINDA EVANS, Chairperson La Quinta Redevelopment Agency ATTEST: VERONICA J. MONTECINO, CMC, Secretary La Quinta Redevelopment Agency (Seal) APPROVED AS TO FORM: M. KATHERINE JENSON, Agency Counsel La Quinta Redevelopment Agency LL p Q LL