2010 07 20 RDAOr# (4 #ad4a
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, JULY 20, 2010
3:00 P.M. Closed Session / 4:00 P.M. Open Session
Beginning Resolution No. RA 2010-010
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.
Redevelopment Agency Agenda 1 July 20, 2010
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 REAL PROPERTIES LOCATED ON WESTWARD
HO DRIVE, EAST OF DUNE PALMS ROAD AND IDENTIFIED AS.APN: 600-
030-001 thru -005, -008, -009 and -010 PROPERTY OWNERS/
NEGOTIATORS: DUNE PALMS MOBILE HOME ESTATES, JOHN S.
PETERSON; AND COACHELLA VALLEY HOUSING COALITION, JOHN
MEALEY.
2. 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 IDENTIFIED AS APNs: 600-020-
038, AND -039. PROPERTY OWNERS/NEGOTIATORS: DESERT CITIES
DEVELOPMENT, INC., MICHAEL SHOVLIN; AND VIP MOTOR CARS, LTD.,
JERRY JOHNSON.
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 JULY 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 JULY 20, 2010.
Redevelopment Agency Agenda 2 July 20, 2010
2. RECEIVE AND FILE TREASURER'S REPORT DATED MAY 31, 2010.
3. RECEIVE AND FILE REVENUE & EXPENDITURES REPORT DATED MAY 31,
2010, AND THE INVESTMENT SUMMARY REPORT FOR THE QUARTER
ENDING JUNE 30, 2010.
4. APPROVAL OF AMENDMENT NO. 3 TO THE EXCLUSIVE NEGOTIATION
AGREEMENT BY AND BETWEEN THE LA QUINTA REDEVELOPMENT
AGENCY AND VIP MOTOR CARS, LTD., FOR PROPERTY LOCATED EAST
OF THE INTERSECTION OF HIGHWAY 111 AND DUNE PALMS ROAD.
5. APPROVAL OF AMENDMENT NO. 4 TO THE EXCLUSIVE NEGOTIATION
AGREEMENT BY AND BETWEEN THE LA QUINTA REDEVELOPMENT
AGENCY AND DESERT CITIES DEVELOPMENT, INC., FOR PROPERTY
LOCATED EAST OF THE INTERSECTION OF HIGHWAY 111 AND DUNE
PALMS ROAD.
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 August 3,
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.
Redevelopment Agency Agenda 3 July 20, 2010
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 July 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 July 16, 2010.
DATEII° July 16, 2,910
VERONICA J/MONTECINO, City Clerk
City of La uinta, 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 4 July 20, 2010
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RDA MEETING DATE: July 20, 2010
AGENDA CATEGORY:
BUSINESS SESSION
ITEM TITLE: Demand Register Dated CONSENT CALENDAR
July 20, 2010
STUDY SESSION
PUBLIC HEARING
RECOMMENDATION:
It is recommended the Redevelopment Agency Board:
Receive and File the Demand Register Dated
July 20, 2010 of which $11,903.41
represents Redevelopment Agency Expenditures.
PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA
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AGENDA CATEGORY:
COUNCIL/RDA MEETING DATE: July 20, 2010
BUSINESS SESSION:
ITEM TITLE: Receive and Transmittal of Treasurer's
Report dated May 31, 2010 CONSENT CALENDAR:-
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDATION:
It is recommended the La Quinta Redevelopment Agency:
Receive and File the Treasurer's Report dated May 31, 2010.
PLEASE SEE BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA
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COUNCIL/RDA MEETING DATE: July 20, 2010
ITEM TITLE: Receive and File Transmittal of Revenue
and Expenditure Reports dated May 31, 2010 and
Investment Summary Report for the Quarter. Ending
June 30, 2010
RECOMMENDATION:
Receive and File.
BACKGROUND AND OVERVIEW:
AGENDA CATEGORY:
BUSINESS SESSION: _
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Receive and File Transmittal of the May 31, 2010 Statement of Revenue and
Expenditures for the La Quinta Redevelopment Agency and Investment Summary
Report for the Quarter Ending June 30, 2010.
Respectfully submitted,
John M. Falconer, Finance Director
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachments: 1. Revenue and Expenditures Report, May 31, 2010
2. Investment Summary for the Quarter Ending June 30, 2010
M 1 11A%IrllVIC1Y 1 1
0710112009-05131/2010
LA QUINTA REDEVELOPMENT AGENCY
ADJUSTED
REMAINING
%
REVENUE SUMMARY
BUDGET
RECEIVED
BUDGET
RECEIVED
PROJECT AREA NO. 1:
LOWIMODERATE TAX FUND:
Tax Increment
9,623,500.00
9,590,879.17
32,620.83
99.660%
Allocated Interest
68,700.00
8,115.52
60,584.48
11.810%
Non Allocated Interest
0.00
1,535.35
(1,535.35)
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
235,257.09
(10,257.09)
104.560%
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
9,912,756.13
173,887.87
98.280%
DEBT SERVICE FUND:
Tax Increment
38,494,000.00
38,303,593.64
190,406.36
99.510%
Allocated Interest
75,000.00
58,950.59
16,049.41
78.600%
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
4,438,891.54
0.46
100.000%
TOTAL DEBT SERVICE
43,007,892.00
42,801,435.77
206,456.23
99.520%
CAPITAL IMPROVEMENT FUND
Pooled Cash Allocated Interest
162,000.00
101,363.91
60,636.09
62.570%
Non Allocated Interest
34,500.00
26,912.46
7,587.54
78.010%
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
455 915.70
(256 776.70)
228.940%
2
0710112009 - 0513112010
LA OUINTA REDEVELOPMENT AGENCY
ADJUSTED
REMAINING
%
REVENUE SUMMARY
BUDGET
RECEIVED
BUDGET
RECEIVED
PROJECT AREA NO. 2:
LOWIMODERATE TAX FUND:
Tax Increment
5,411,100.00
5,194,422.07
216,677.93
96.000%
Allocated Interest
98,100.00
56,343.77
41,756.23
57.440%
Non Allocated Interest
0.00
0.82
(0.82)
0.000%
Wash St Apts Interest Income
3,600.00
2,050.39
1,549.61
56.960%
WSA Fed Govt Assistance Pymts
451,400.00
413,788.00
37,612.00
91.670%
WSA Fed Govt Interest Rate Subsidy
46,800.00
0.00
46,800.00
0.000%
Developer funding
0.00
0.00
0.00
0.000%
Wash St Apts Rental Income
163,300.00
156,376.70
6,923.30
95.760%
Wash St Apts Other Revenues
4,200.00
6,658.62
(2,458.62)
158.540%
2nd Trust Deed Repayment
25,000.00
23,444.00
1,556.00
93.780%
ERAF Shift - Interest
0.00
0.00
0.00
0.000%
Sale of Land
0.00
0.00
0.00
0.000%
Transfer In
0.00
0.00
0.00
0.000%
TOTAL LOWIMOD TAX
6,203,500.00
5,853,084.37
350,415.63
94.350%
2004 LOWIMODERATE BOND FUND:
Allocated Interest
0.00
0.00
0.00
0.000%
Home Sale Proceeds
0.00
0.00
0.00
0.000%
Non Allocated Interest
20,000.00
13,712.64
6,287.36
68,560%
Transfer In
0.00
0.00
0.00
0.000%
TOTAL LOWIMOD BOND
20,000.00
13,712.64
6,287.36
68.560%
DEBT SERVICE FUND:
Tax Increment
21,644,500.00
20,764,817.25
879,682.75
95.940%
Allocated Interest
100,000.00
50,562.76
49,437.24
50.560%
Non Allocated Interest
0.00
0.00
0.00
0.000%
Interest Advance Proceeds
0.00
0.00
0.00
0.000%
Transfer In
1,951,399.00
1,951,399.32
(0.32)
100.000%
TOTAL DEBT SERVICE
23,695,899.00
22,766,779.33
929,119.67
96.080%
CAPITAL IMPROVEMENT FUND:
Allocated Interest
11,400.00
7,269.67
4,130.33
63.770%
Non Allocated Interest
9,250.00
1,143.06
8,106.94
12.360%
Misc Revenue
0.00
0.00
0.00
0.000%
Sale of land
0.00
0.00
0.00
0.000%
Transfers In
2,600,000.00
2,600,000.00
0.00
100.000%
TOTAL CAPITAL IMPROVEMENT
2,620,650.00
2,608,412.73
12,237.27
99.530%
91
LA DUINTA REDEVELOPMENT AGENCY
ADJUSTED
5131110
EXPENDITURES
ENCUMBERED
REMAINING
BUDGET
EXPENDITURE SUMMARY
BUDGET
PROJECT AREA NO 11 1
LOW/MODERATE TAX FUND:
1,100.00
0.00
jooLo
PERSONNEL
SERVICES
372,990,00
2.81
299,652.81
0.00
3,337.1
73,337.79
BUILDING HORIZONS
000
275,000.00
0.00
196,049.54
0.00
0,00
000
78,950.46
LQ RENTAL PROGRAM
0.00
0.00
0.00
0,00
2nd TRUST DEED PROGRAM
BUILDING HORIZONS
250.000.00
0.00
0.00
250,000.00
LAND ACQUISITION
0.00
0.00
0.00
0,00
LOW MOD HOUSING PROJECTS
0.00
9,00000
000
(9,000.00)
FORECLOSURE
0.00
0,00
0.00
0.00
REIMBURSEMENT TO GEN FUND
856,961.00
782,202,23
000
74,75877
TRANSFERS OUT
5,228,89200
5,081,210.25
0.00
147.681.75
TOTAL LOWIMOO TAX
DEBT SERVICE FUND:
SERVICES
0.00
70 33,97
BOND PRINCIPAL
135.000.00
135,000.00
0,00
000
,00
T
7,144.062,00
7,144,062.51
0,00
(051)
CITY
INTER EST CITY ADVANCE
INTEREBONDIST
1,428.333.00
1,426,333.00
1,284,999.9
0,00
143.333,02
PASS THROUGH PAYMENTS
23,528,621 00
6.921,860,03
0.00
6,600.00 97
,604,760.9
ERAF SHIFT
23,582,36] 00
23,582,367.03
23,582,367.00
0.00
0.06
TRANSFERS OUT
3,961,932 00
3,961,937 94
0,00
0.06
TOTAL DEBT SERVICE
CAPITAL IMPROVEMENT FUND:
PERSONNEL
1,100,00
0,00
000
1,10000
SERVICES
776,600,00
541,14302
000
235,456.98
LAND ACQUISITION
0,00
0.00
0.00
000
ASSESSMENT DISTRICT
0,00
0,00
0.00
000
ADVERTISING -ECONOMIC DEV
10,000,00
0.00
000
10,00000
ECONOMIC DEVELOPMENT
000
0,00
0,00
000
BOND ISSUANCE COSTS
000
0.00
0,00
0,00
CAPITAL - BUILDING
000
0,00
0,00
0.00
REIMBURSEMENT TO GEN FUND
387,92800
354,837.74
0,00
33,09026
TRANSFERS OUT
42,429,88100
562,920.08
0,00
41,866,960.92
TOTAL CAPITAL IMPROVEMENT
1 458g
El
LA QUINTA REDEVELOPMENT AGENCY
ADJUSTED
BUDGET
5131110
EXPENDITURES
ENCUMBERED
REMAINING
BUDGET
EXPENDITURE SUMMARY
PROJECT AREA NO. 2:
LOW/MODERATE TAX FUND:
700.00
0.00
0.00
700.00
SERVICES
556,861.00
392796.36
0.00
164,0664
4.
WASH ST APTS OTHER EXPENSES
429,3000D
322.812.76
0,00
106,487,24
0.00
2ND TRUST DEEDS
LOW MOD HOUSING PROJECTS
D.00
6,000.00
000
0.00
0.00
0.00
6,000.00
FORECLOSURE ACQUISITION
250,000.00
0.00
0,00
250.000.00
0.00
VISTA DUNES PARK
D00
0.00
0.00
0.00
0,00
0,00
0.00
LANDACQUISITION
WSA PRIN/PROVIDENT LOAN
25,325.00
22,98802
0.00
2,336,98
WSA PRIN/USDA LOAN
10,671,00
9.667.65
000
1.003.35
WSA INTERESTIPROVIDENT LOAN
129,149.00
118,613.55
0.00
10.53545
WSA INTERESTNSDA LOAN
74.611.00
474,86900
25,505.07
432,690,78
0.00
0.00
49,10593
42.178.22
REIMBURSEMENT TO GEN FUND
2,430.057.78
0,00
9,747.330.22
TRANSFERS OUT
12,177,388.00
TOTAL LOWIMOD TAX
2004 LOWIMODERATE BOND FUND
HOUSING PROGRAMS
824,00000
618,000.00
0.00
206,000.00
LAND
0.00
0.00
0.00
000
TRANSFERS OUT
73174000
((T 143702.471
000
-UZT--306f4-4'l47
2,875,442.4]
TOTAL LOWIMOD BOND
.F 5./40.01t
DEBT SERVICE FUND:
SERVICES
255,100.00
0.00
1,872.54
BOND PRINCIPAL
120,00000
120,000.00
120,000.00
0.00
000
0.00
BOND INTEREST
INTEREST CITY ADVANCE
299,550.00
1,656,528.00
299,550.00
1,518,48400
0,00
000
138,04400
PASS THROUGH PAYMENTS
18,291,681.00
9,036.446.03
000
9,255,23497
TRANSFERS OUT
455139900
455139932
000
(0T
fT9
TOTAL DEBT SERVICE
25,T T,158D��5
9 flfGif�-
00�9355�S
CAPITAL IMPROVEMENT FUND:
700.00
0,00
66D00
PERSONNEL
SERVICES
275,36000
93,239,22 39.22
0..78
782.12000
CAPITAL
000
0.00
0,00
0,00
ECONOMIC DEVELOPMENT ACTIVITY
0.00
000
0.00
0.00
REIMBURSEMENT TO GEN FUND
64,019.00
58,58225
0.00
5,436,75
TRANSFERS OUT
3,423,621.00
428,487.05
000
2,995,13395
TOTAL CAPITAL IMPROVEMENT
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COUNCIL/RDA MEETING DATE: July 20, 2010
ITEM TITLE: Approval of Amendment No. 3 to the
Exclusive Negotiation Agreement by and Between the
La Quinta Redevelopment Agency and VIP Motor Cars,
Ltd., for Property Located East of the Intersection of
Highway 111 and Dune Palms Road
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Approve Amendment No. 3 to the Exclusive Negotiation Agreement between the La
Quinta Redevelopment Agency and VIP Motor Cars, Ltd. and authorize the Executive
Director to execute the amendment.
FISCAL IMPLICATIONS:
None for this action.
BACKGROUND AND OVERVIEW:
On March 6, 2007, the Agency Board approved an Exclusive Negotiation Agreement
("ENA") with VIP Motor Cars, Ltd. for the purpose of developing auto service facilities
and luxury car dealerships. The project is located on approximately nine acres of
Agency -owned property east of Dune Palms Road and south of Highway 11 1 .
The ENA has been extended through the execution of a formal ENA Amendment,
approved by the Agency Board on October 23, 2008; by formal Agency Board action
on March 17, 2009 and December 15, 2009; and on three occasions by the Agency
Executive Director exercising his authority granted by Section VIII.Q of the ENA.
Current economic conditions have had an adverse effect on auto sales. VIP Motor
Cars still intends to develop Mercedes and BMW dealerships on the site, and both
brands remain committed to opening points in La Quinta. Therefore, the attached
Amendment No. 3 extends the ENA until March 31, 2011, with authority given to the
Executive Director to further extend the ENA another 120 days if needed.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency Board include:
1. Approve Amendment No. 3 to the Exclusive Negotiation Agreement between
the La Quinta Redevelopment Agency and VIP Motor Cars, Ltd. and authorize
the Executive Director to execute the amendment; or
2. Do not approve Amendment No. 3 to the Exclusive Negotiation Agreement
between the La Quinta Redevelopment Agency and VIP Motor Cars, Ltd.; or
3. Provide staff with alternative direction.
Respectfully submitted,
bu
Douglas R. E ans
Assistant City Manager -Development Services
Approved for submission by:
Q/ " o � � _�
Thomas P. Genovese, Executive Director
Attachment 1 : ENA Amendment No. 3
ATTACHMENTI
AMENDMENT NO. 3 TO EXCLUSIVE NEGOTIATION AGREEMENT
THIS AMENDMENT NO. 3 TO EXCLUSIVE NEGOTIATION AGREEMENT
("Amendment No. 3") is made and entered into as of July _, 2010, by and
between LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and
politic ("Agency"), and V.I.P. MOTOR CARS, LTD., a California corporation
("Developer").
RECITALS:
A. On or about December, 2007, the Agency and Developer entered into
that certain Exclusive Negotiation Agreement (the "ENA"), pursuant to which
Agency and Developer agreed to initiate exclusive negotiations for up to two
hundred and fifty-five (255) days concerning the possible sale by Agency to
Developer of certain real property owned in fee by the Agency for the Developer's
subsequent development thereon of three automobile operations, as more fully
described in the ENA.
B. Pursuant to authority granted in Section VIII.Q of the ENA, the
Agency's Executive Director extended the "Negotiation Period" (as that term is
defined in the ENA) for one hundred and twenty (120) days, until December 18,
2008.
C. On or about October 23, 2008, the Agency and Developer entered
into that certain Amendment No. 1 to Exclusive Negotiation Agreement, to extend
the Negotiation Period to May 1, 2009.
D. On or about March 17, 2009, the Agency Board authorized an
additional extension to the Negotiation Period, until December 31, 2009.
E. On or about December 15, 2009, the Agency Board authorized an
additional extension to the Negotiation Period, until March 31, 2010.
F. Pursuant to authority granted in Section VIII.Q of the ENA, the
Agency's Executive Director extended the "Negotiation Period" for one hundred
and twenty (120) days, until July 29, 2010.
G. As a result of current economic conditions, the parties now wish to
further extend the Negotiation Period until March 31, 2011.
AGREEMENT:
NOW, THEREFORE, in consideration of the foregoing recitals, which are
incorporated herein by this reference, and for valuable consideration, the receipt
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and sufficiency of which is hereby acknowledged, the parties hereto agree as
follows:
1. The ENA is hereby amended to extend the Negotiation Period until March 31,
2011 and, therefore the "End Date" as defined in ENA Section ILA, shall be March
31, 2011.
2. The ENA is hereby amended to provide that all actions required to be
performed during the "Second Due Diligence Period" and the "Third Due Diligence
Period" (as those terms are defined in ENA Sections II.0 and II.D) shall be
completed by the End Date.
3. The provision in ENA Section VIII.Q, which permits the Agency's Executive
Director to extend the time for Developer's performance by up to 120 days, shall
be restarted and the procedure in Section VIII.Q shall apply to any such extensions.
4. Except as otherwise expressly provided in this Amendment No. 3, all of the
terms and conditions of the ENA shall remain in full force and effect.
5. In the event of any action between Agency and Developer seeking
enforcement of any of the terms and conditions to this Amendment No. 3, the
prevailing party in such action shall be awarded, in addition to damages, injunctive
or other relief, its reasonable costs and expenses, including without limitation its
expert witness fees and reasonable attorney's fees.
6. This Amendment No. 3 shall be construed according to its fair meaning and
as if prepared by both parties hereto.
7. This Amendment No. 3 shall be governed by the internal laws of the State of
California and any question arising hereunder shall be construed or determined
according to such law. The Superior Court of the State of California in and for the
County of Riverside, or such other appropriate court in such county, shall have
exclusive jurisdiction of any litigation between the parties concerning this
Amendment No. 3. Service of process on Agency shall be made in accordance
with California law. Service of process on Developer shall be made in any manner
permitted by California law and shall be effective whether served inside or outside
California.
8. Time is of the essence of this Amendment No. 3 and of each and every term
and provision hereof.
9. This Amendment No. 3
when this Amendment No. 3
deemed an original, and suc
h
8821015610-0103 _
1052401.01 a07/14/10 -�
IN WITNESS WHEREOF, Agency and Developer each hereby represents that
it has read this Amendment No. 3, understands it, and hereby executes this
Amendment No. 3 to be effective as of the day and year first written above.
Date: 2010
"Developer"
V.I.P. MOTOR CARS, LTD.,
a California corporation
as
Its:
"Agency"
LA QUINTA REDEVELOPMENT AGENCY,
a public body, corporate and politic
Date: , 2010 By:
Agency Executive Director
ATTEST:
Veronica J. Montecino, Agency Secretary
APPROVED AS TO FORM:
RUTAN & TUCKER, LLP
By:
M
Katherine Jenson, Agency Counsel
882/015610-0103
1052401.01 a07/14/10 _3_
ci&lw44Q"
COUNCIL/RDA MEETING DATE: July 20, 2010
ITEM TITLE: Approval of Amendment No. 4 to the
Exclusive Negotiation Agreement by and Between the La
Quinta Redevelopment Agency and Desert Cities
Development, Inc., for Property Located East of the
Intersection of Highway 111 and Dune Palms Road
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Approve Amendment No. 4 to the Exclusive Negotiation Agreement between the La
Quinta Redevelopment Agency and Desert Cities Development, Inc., and authorize the
Executive Director to execute the amendment (Attachment 1).
FISCAL IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
On March 6, 2007, the Agency Board approved an Exclusive Negotiation Agreement
("ENA") with Desert Cities Development, Inc., for the purpose of developing
approximately 220 units of multi -family housing with rents affordable to low- and very
low-income households. The project is located on approximately 10 acres of Agency -
owned property near Dune Palms Road and Highway 1 1 1.
The ENA has been extended through the execution of three formal ENA Amendments,
the first executed on November 6, 2007, the second executed on October 23, 2008,
and the third on December 15, 2009; and on four occasions by the Agency Executive
Director exercising his authority granted by Section VIII.Q of the ENA. Because of
complexities involving environmental studies, including traffic and hydrology studies
requiring coordination with Desert Sands Unified School District, staff is still
negotiating with Desert Cities Development. The attached Amendment No. 4 extends
the ENA until December 30, 2010, with authority given to the Executive Director to
further extend the ENA another 120 days, if needed.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency Board include:
1. Approve Amendment No. 4 to the Exclusive Negotiation Agreement between
the La Quinta Redevelopment Agency and Desert Cities Development, Inc. and
authorize the Executive Director to execute the amendment; or
2. Do not approve Amendment No. 4 to the Exclusive Negotiation Agreement
between the La Quinta Redevelopment Agency and Desert Cities Development,
Inc.; or
3. Provide staff with alternative direction.
Respectfully submitted,
elr
WR.vanst
Douglas
Assistant City Manager —Development Services
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachment: 1. ENA Amendment No. 4
ATTACFVVIENT 1
AMENDMENT NO. 4 TO EXCLUSIVE NEGOTIATION AGREEMENT
THIS AMENDMENT NO. 4 TO EXCLUSIVE NEGOTIATION AGREEMENT
("Amendment No. 4") is made and entered into as of July , 2010, by and
between LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and
politic ("Agency"), and DESERT CITIES DEVELOPMENT, INC., a California
corporation ("Developer").
RECITALS:
A. On or about March 19, 2007, the Agency and Developer entered into
that certain Exclusive Negotiation Agreement (the "ENA"), pursuant to which
Agency and Developer agreed to initiate exclusive negotiations for up to one
hundred twenty (120) days concerning the possible sale by Agency to Developer of
certain real property owned in fee by the Agency for the Developer's subsequent
development thereon of a multifamily affordable rental housing project, all as more
fully described in the ENA.
B. The "Negotiation Period" (as defined in the ENA) has been extended
on multiple occasions, through the execution of three (3) formal ENA Amendments,
by the Agency Executive Director in the exercise of his authority pursuant to
Section VIII.Q of the ENA, and, most recently, pursuant to Agency Board approval.
C. As a result of the foregoing extensions, the current "Negotiation
Period" will terminate on July 29, 2010.
D. As a result of complexities involving environmental studies and
Stormwater retention issues, the parties now wish to further extend the
Negotiation Period until December 31, 2010.
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 ENA is hereby amended to extend the Negotiation Period until December
31, 2010 and, therefore the "End Date" as defined in ENA Section II.A, shall be
December 31, 2010.
2. The ENA is hereby amended to provide that actions required to be performed
during the "First Due Diligence Period," the "Second Due Diligence Period," and
882/015610-0103
1052392 01 .07/14/10 - �
"Third Due Diligence Period" (as those terms are defined in ENA Sections II.B, II.C,
and II.D) shall be completed by the End Date.
3. The provision in ENA Section VIII.Q, which permits the Agency's Executive
Director to extend the time for Developer's performance by up to 120 days, shall
be restarted and the procedure in Section VIII.Q shall apply to any such extensions.
4. Except as otherwise expressly provided in this Amendment No. 4, all of the
terms and conditions of the ENA shall remain in full force and effect; the terms and
conditions in this Amendment No. 4 shall supersede Amendment Nos. 1, 2, and 3.
5. 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.
6. This Amendment No. 4 shall be construed according to its fair meaning and
as if prepared by both parties hereto.
7. 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.
8. Time is of the essence of this Amendment No. 4 and of each and every term
and provision hereof.
9. 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.
[End — Signature Page Follows]
882/015610-0103 1052392.01 a07/14/10 -2_
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: , 2010
"Developer"
DESERT CITIES DEVELOPMENT, INC.,
a California corporation
Its:
"Agency"
LA QUINTA REDEVELOPMENT AGENCY,
a public body, corporate and politic
Date: , 2010 By:
Agency Executive Director
ATTEST:
Veronica J. Montecino, Agency Secretary
APPROVED AS TO FORM:
RUTAN & TUCKER, LLP
By:
M
Katherine Jenson, Agency Counsel
882/015610-0103
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