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2011 01 18 RDA&# 4 644dja 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 Special Meeting TUESDAY, JANUARY 18, 2011 2:30 P.M. Closed Session / 4:00 P.M. Open Session Beginning Resolution No. RA 2011-002 CALL TO ORDER Roll Call: Agency Board Members: Adolph, Evans, Franklin, Sniff, Chairperson Henderson 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 - NONE RECESS AND RECONVENE AT 4:00 P.M. Redevelopment Agency Agenda 1 January 18, 2011 001 pn, ER111201h 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 JANUARY 4, 2011. 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 JANUARY 18, 2011. 2. RECEIVE AND FILE TREASURER'S REPORT DATED NOVEMBER 30, 2010. 3. RECEIVE AND FILE REVENUE & EXPENDITURES REPORT DATED NOVEMBER 30, 2010, AND INVESTMENT SUMMARY REPORT FOR QUARTER ENDING DECEMBER 31, 2010. 4. ADOPTION OF A RESOLUTION APPROVING THE APPROPRIATION OF $15,000 FROM REDEVELOPMENT PROJECT AREA NO. 1 NON -HOUSING TAX INCREMENT FUNDS FOR THE PURCHASE OF TAX -DEFAULTED PROPERTY LOCATED ON CALLE ESTADO, EAST OF AVENIDA BERMUDAS, AND WEST OF DESERT CLUB DRIVE FROM THE COUNTY OF RIVERSIDE TREASURER -TAX COLLECTOR AND MAKING CERTAIN FINDINGS PURSUANT TO HEALTH AND SAFETY CODE SECTION 33445. BUSINESS SESSION - NONE STUDY SESSION - NONE CHAIR AND BOARD MEMBERS' ITEMS - NONE Redevelopment Agency Agenda 2 n...' 002 January 18, 2011 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. JOINT PUBLIC HEARING OF THE CITY COUNCIL AND REDEVELOPMENT AGENCY 1. JOINT PUBLIC HEARING TO CONSIDER ADOPTION OF A RESOLUTION OF THE REDEVELOPMENT AGENCY RECOMMENDING TO THE CITY COUNCIL APPROVAL OF THE PROPOSED FIFTH AMENDMENT TO THE REDEVELOPMENT PLAN FOR PROJECT AREA NO. 2 AND CONFIRMING THE FIFTH AMENDMENT IS CATEGORICALLY EXEMPT PER CEQA GUIDELINE SECTION 15320. A. RESOLUTION ACTION ADJOURNMENT The next regular meeting of the Redevelopment Agency will be held on February 1, 2011, 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 18, 2011, 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 January 14, 2011. DATE¢ January 14, 2011 VERONICA J.�11ONTECINO, City Clerk City of La Qu/inta, 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 ."' 003 January 18, 2011 Q•'!f- 5 CFM of Qti RDA MEETING DATE: January 18, 2011 ITEM TITLE: Demand Register Dated January 18, 2011 RECOMMENDATION: It is recommended the Redevelopment Agency Board: Receive and File the Demand Register Dated January 18, 2011 of which $608,028.81 AGENDA CATEGORY: BUSINESS SESSION CONSENT CALENDAR STUDY SESSION PUBLIC HEARING PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA aro.� 004 a `y OF'Ct1P' COUNCIL/RDA MEETING DATE: January 18, 2011 ITEM TITLE: Transmittal of Treasurer's Report as of November 30, 2010 RECOMMENDATION: It is recommended the Redevelopment Agency Board: Receive and File. AGENDA CATEGORY: BUSINESS SESSION: s� CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: PLEASE SEE RELATED BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA 'ae...i 005 F`y OF'CKti� COUNCIURDA MEETING DATE: January 18, 2011 ITEM TITLE: Transmittal of Revenue and Expenditure Report for November 30, 2010 and Investment Summary Report for the Quarter Ending December 31, 2010 RECOMMENDATION: Receive and File. FISCAL IMPLICATIONS: None. CHARTER CITY IMPLICATIONS: lrem BACKGROUND AND OVERVIEW: AGENDA CATEGORY: BUSINESS SESSION: _ CONSENT CALENDAR: 13 STUDY SESSION: PUBLIC HEARING: Transmittal of the November 30, 2010 Statement of Revenue and Expenditures and Investment Summary Report for the Quarter Ending December 31, 2010 for the La Quinta Redevelopment Agency. Respectfully submitted, aJohn M. Falconer, Finance Director ro,,.J 006 Approved for submission by: Thomas P. Genovese, Executive Director Attachments: 1. Revenue and Expenditures Report, November 30, 2010 2. Investment Summary Report for the Quarter Ending December 31, 2010 n«.:) 007 2 ATTACHMEN I 1 07101/2010 • 11/30/2010 LA OUINTA REDEVELOPMENT AGENCY ADJUSTED REMAINING % REVENUE SUMMARY BUDGET RECEIVED BUDGET RECEIVED PROJECT AREA NO. 1: LOW/MODERATE TAX FUND: Tax Increment 9,912,200.00 0,00 9,912,200.00 0.000% Allocated Interest 46,800.00 1,266,53 45,533.47 2.710% Non Allocated Interest 0,00 699.90 (699.90) 0.000% Miscellaneous revenue 0.00 0.00 0.00 0.000% Non Allocated Interest 0.00 0.00 0.00 0.000% LORP-Rent Revenue 0.00 0.00 0,00 0.000% 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 0.00 0.00 0.000% Williams Note Payment 0.00 23,029.00 (23,029.00) 0,000% Transfer In 0,00 40.000.00 (40000.00) 0.000% TOTAL LOW/MOD TAX 10,109,000.00 64,995.43 10,044,004,57 0.640% DEBT SERVICE FUND: Tax Increment 39,648,800.00 0.00 39,648,800,00 0.000% Allocated Interest 0.00 0.00 0.00 0.000% Non Allocated Interest 0.00 1,643.37 (1,543.37) 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 4,438,934.00 3,019,679.27 1,419,254.73 68,030% TOTAL DEBT SERVICE 44,087,734.00 3,021,222,64 41,066,511.36 6.850% CAPITAL IMPROVEMENT FUND Pooled Cash Allocated Interest 8,200,00 8,322,27 (122.27) 101.490% Non Allocated Interest 30,400.00 9,030A7 21.369.83 29.700% Developer Agreement Funding 0,00 6,499.00 (6,499,00) 0.000% Sale of Land Proceeds 0.00 0.00 0.00 0.000% Rental Income 0.00 0.00 0.00 0.000% Litigation Proceeds 0.00 0.00 0.00 0.000% Transfers In 5,000,000.00 0,00 5,000,000,00 0,000% TOTAL CAPITAL IMPROVEMENT 5,038,600.00 23,851,44 5,014,748,56 0.470% -9.- 008 s LA OUINTA REDEVELOPMENT AGENCY EXPENDITURE SUMMARY PROJECT AREA NO V LOW/MODERATE TAX FUND: DEBT SERVICE FUND: CAPITAL IMPROVEMENT FUND: ADJUSTED 11/30/10 REMAINING BUDGET EXPENDITURES ENCUMBERED BUDGET PERSONNEL 0.00 ODD 0.00 0.00 SERVICES 373,040,00 79,475.28 0.00 293,55472 LO RENTAL PROGRAM 000 0,00 0.00 0.00 2n0 TRUST DEED PROGRAM 0.00 0.00 0.00 0,00 HABITAT FOR HUMANITY 250,000 00 0.00 0.00 250,000.00 LAND ACQUISITION 0.00 0,00 0.00 0.00 LOW MOD HOUSING PROJECTS 0.00 0.00 000 0.00 FORECLOSURE 1039,735.00 4,859.10 0.00 1,034,875,90 REIMBURSEMENT TO GEN FUND 947,565.00 394,820.00 0.00 552,745,00 TRANSFERS OUT 5,023,W8.00 3351,322.61 000 1671755.39 TOTAL LOW/MOD TAX SERVICES 484,400.00 7,77000 0,00 476,630B0 BOND PRINCIPAL 3,330,000.00 3.330,000.00 0.00 0.00 BOND INTEREST 6,941,435. 00 3,523,119.38 0,00 3,418,315,62 INTEREST CITY ADVANCE 1720,000.00 716,666.85 0,00 1,003,333.15 PASS THROUGH PAYMENTS 22,738,549.00 404,81275 0.00 22.333,736.25 ERAF SHIFT 0,00 0.00 0,00 0.00 TRANSFERS OUT 8963138.00 2,576126,97 0,00 6, 387,011.03 TOTAL DEBT SERVICE PERSONNEL 0.00 0.00 0.00 0.00 SERVICES 700,900.00 174,89357 0,00 526,006.43 LANDACOUISITION 0,00 0.00 0,00 0.00 ASSESSMENT DISTRICT 0.00 0,00 0.00 0.00 ADVERTISING -ECONOMIC DEV 000 0,00 0.00 000 ECONOMIC DEVELOPMENT 0.00 0.00 0,00 0.00 BOND ISSUANCE COSTS 0.00 0.00 0.00 000 CAPITAL -BUILDING 0.00 0.00 0.00 0.00 REIMBURSEMENT TO GEN FUND 426,693,00 177.790.00 0.00 248903.00 TRANSFERS OUT 45799,861.00 212,924.52 0.00 45,586,936.48 TOTAL CAPITAL IMPROVEMENT �...) 009 El 07/01/2010-11/3012010 LA OUINTA REDEVELOPMENT AGENCY ADJUSTED REMAINING % REVENUE SUMMARY BUDGET RECEIVED BUDGET RECEIVED PROJECT AREA NO. 2: LOW/MODERATE TAX FUND: Tax Increment 5.573,400.00 0.00 5,573,400.00 0.000% Allocated Interest 50,800.00 3,847.58 46,952.42 7.570% Non Allocated Interest 2,500.00 0.00 2,500.00 0.000% Wash St Apts Interest Income 3,600,00 381,07 3,218.93 10.590% WSA Fed Govt Assistance Pymts 451,400.00 149,949.00 301,451.00 33.220% 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 53,877.64 109,422.36 32.990% Wash S[Apts Other Revenues 4,200.00 1,865.18 2,334.82 44.410% 2nd Trust Deed Repayment 0,00 8,719.00 (8,719.00) 0.000% 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 6,296,000,00 218,639.47 6,077,360.53 3.470% 2004 LOW/MODERATE 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 8,700.00 3,280.75 5,419.25 37,710% Transfer In 0.00 0.00 0,00 0.000% TOTAL LOW/MOD BOND 8,700.00 3,280.75 5,419.25 37.710% DEBT SERVICE FUND: Tax Increment 22,293,800.00 0.00 22,293,800.00 0.000% Allocated Interest 0.00 0.00 0.00 0.000% Non Allocated Interest 0.00 3,379.34 (3,379,34) 0.000% Interest Advance Proceeds 0.00 0.00 0.00 0.000% Transfer in 2,947,648,00 1.268,838.66 1,678,809,34 43.050% TOTAL DEBT SERVICE 25,241,448.00 1,272,218,00 23,969,230.00 5.040% CAPITAL IMPROVEMENT FUND: Allocated Interest 5,100.00 593.61 4,506,39 11.640% Non Allocated Interest 6,000.00 1,200A8 4,799.52 20.010% Misc Revenue 0,00 0.00 0.00 0.000% Sale of land 0.00 0.00 0.00 0.000% Transfers In 4,300,000.00 0.00 4,300000.00 0.000% TOTAL CAPITAL IMPROVEMENT 4,311,100.00 1,794.09 4,309,305.91 0.040% 1....� 010 5 LA QUINTA REDEVELOPMENT AGENCY EXPENDITURE SUMMARY PROJECT AREA NO. 2: ADJUSTED 11/30/10 REMAINING BUDGET EXPENDITURES ENCUMBERED BUDGET LOW/MODERATE TAX FUND: 2004 LOW/MODERATE BOND FUND PERSONNEL 0,00 0,00 000 0,00 SERVICES 473,500.00 142,440.66 0.00 331,059,34 WASH ST APTS OTHER EXPENSES 429,300,00 113,353.83 0.00 315.946.17 2ND TRUST DEEDS 0.00 0.00 0 00 0.00 LOW MOD HOUSING PROJECTS 3,000.00 360.00 0,00 2,650.W FORECLOSURE ACQUISITION 450,000.00 0,00 0.00 450,000.00 VISTA DUNES PARK 0.00 0.00 0,00 0.00 LAND ACQUISITION 0,00 0,00 0,00 0.00 WSA PRIN/PROVIDENT LOAN 27,525,00 8,921.40 0.00 18,603.60 WSA PRIN/USDA LOAN 11,788.00 3,753.01 0,00 8, 034.99 WSA INTEREST/PROVIDENT LOAN 126,949.00 42,570.08 0.00 84,378,92 WSA INTEREST/USDA LOAN 73,494,00 9.543.07 0.00 63,950.93 REIMBURSEMENT TO GEN FUND 551,63400 229,845.00 0.00 321789.00 TRANSFERS OUT 17,64Q437.00 1287487.22 0.00 10, 36094978 TOTAL LOW/MOD TAX0.00 HOUSING PROGRAMS 0.00 0,00 0,00 0.00 LAND 0.00 0.00 0.00 0.00 TRANSFERS OUT 75]W.00 0,00 000 75,70T00 TOTAL LOW/MOD BOND DEBT SERVICE FUND: SERVICES 255,100,00 3,025.00 0,00 252,W500 BOND PRINCIPAL 125,000.00 125000.00 000 0.00 BOND INTEREST 293,272,00 148,23T50 0.00 145,034.50 INTEREST CITY ADVANCE 1,656.500.00 690.220.00 0.00 96Q280.00 PASS THROUGH PAYMENTS 18,935,710.00 0.00 0.00 18, 935,71000 ERAF SHIFT 4,850,687,00 0.00 0.00 4,850,687.00 TRANSFERS OUT 6251993.00 1265B38.66 0,00 4983154.34 TOTAL DEBT SERVICE CAPITAL IMPROVEMENT FUND: PERSONNEL 0.00 0,00 0.00 0.00 SERVICES 172,15000 19,119,40 000 153,030,60 CAPITAL 0.00 0.00 0.00 0.00 ECONOMIC DEVELOPMENT ACTIVITY 2,300.000,00 0.00 0.00 2,3W,00000 REIMBURSEMENT TO GEN FUND 76,611 W 31 925.00 0.00 44,686.00 • 'n.uJ O l l 6 A I I ACHMENT 2 0 c 00 E E N m 0 m a V O m m nj N 0 0^ O r 0 0 0 0 0 0 0 N m 0 m m N O Q @ O m o o m r m > � �iroovior0000000m O @ � m N N N O O N M N N > O O OJ r m m OO m m > p 0 0 0 N O r O 0 0 0 0 0 0 T N O p O r N O 0 O LL O @ @ @ @ @ @ @ @ @ @ @ @ N O 0 j N - - - - - - - - - - (D (D X X X X X x X x x X x X @@ N O U N U O O N@@ Z Z Z Z Z Z Z Z Z Z a a v v a a a v v a a a C C C C C C C C C C C C J J J J J J J J J J J J — — — — — — — — — — LL — @ mmmmmmmmmmmm H m m J J J J J J J 7 J J J J N J J N N N N N N N N N N N N E Y Y Y Y Y Y Y N m m Y Y Y d N N N N N N N N NN N (0 0 0 O O c c 0 0 O O c c 0 0 c C O O O (n N 0 (J @ w U m N N N �a�.ma�dodo>>o m- m m yrn- QVIN QQQQQ��a O 5 O J J 0 0 0 O O@ O O K= K= 2 x K K K K O O K o v o a v o 0 0 0 o m m m 0 0 0 0 0 0 0 0 0 o m m m N N N 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 tnNNUNUytnNNNt/J (n v u 0 U O N n� m� � 3 N 012 4 ZP Qu&rry 46 F,y OF'CKEO COUNCIL/RDA MEETING DATE: January 18, 2011 ITEM ITEM TITLE: Adoption of a Resolution Approving the Appropriation of $15,000 From Project Area No. 1 Non -Housing Tax Increment Funds for the Purchase of Tax -Defaulted Property Located on Calle Estado, East of Avenida Bermudas and West of Desert Club Drive From the County of Riverside Treasurer -Tax Collector and Making Certain Findings Pursuant to Health and Safety Code Section 33445 RECOMMENDATION: ETC! OWI17:1KOlr a0161WIIA BUSINESS SESSION: _ CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Adopt a Resolution of the Redevelopment Agency approving the appropriation of $15,000 from Project Area No. 1 Non -Housing Tax Increment Funds for the purchase of tax -defaulted property from the County of Riverside Treasurer -Tax Collector and making certain findings pursuant to Health and Safety Code Section 33445. FISCAL IMPLICATIONS: The purchase of the tax -defaulted property would result in an expenditure of approximately $15,000 from the CIP — Village Land Acquisition Account (Acct. No. 401-1845-551-74-01). These are non -housing tax increment funds for Project Area No. 1. This cost includes the City's responsibility to pay for all costs associated with the sale, including notifications and public notices. If the property is redeemed prior to the proposed sale, the expenditures on the noticing costs are not refundable. BACKGROUND AND OVERVIEW: On September 16, 2010, the City was notified of all properties that had become subject to the Tax Collector's Power of Sale and would be placed up for public auction. Under the provisions of the Revenue and Taxation Code, State of California, the City may file an objection to the public sale on any property within the City limits. 013 Upon reviewing the list of properties that were subject to the forthcoming auction, staff identified a 4,982 square foot (.11 acre) vacant lot on Calle Estado that is available. The purchase price is $12,573.46, which is approximately $2.52 per square foot. The County requires the buyer to cover costs associated with legal noticing and various reports. Staff notified the County of its interest in purchasing the property. The County requires the City Council adopt a resolution objecting to the sale, and the resolution is on today's Council agenda. Once the County receives and approves the City's resolution, it will prepare an Agreement of Sale for the City to enter into with the County Treasurer -Tax Collector to purchase this parcel. The funding for Village land acquisitions was identified in the Capital Improvement Program approved by Council on April 20, 2010. As part of that program, the funds for the purchase of this parcel will come from this account. The purchase of this property is consistent with the goals of the La Quinta Redevelopment Agency's Implementation Plan for Fiscal Years 2009-2010 through 2013-2014. The findings to approve this appropriation are as follows: Eliminate Blight — Eliminate and prevent the spread of conditions of blight, which includes underutilized properties. This small, vacant parcel fits this criterion for blight, since it is substandard in size. Improve Public Infrastructure and Facilities — Improve inadequate drainage infrastructure, improve and/or provide electric, gas, telephone, and wastewater infrastructure to both developed and undeveloped properties. This undeveloped parcel currently has no infrastructure improvements. Purchase and future development of this property will address this issue. Remove Impediments to Development — Address parcels of property that are of irregular form and/or shape, are inadequately sized for proper usefulness and development, and/or are held in multiple ownership. This has been a major impediment to development in the Village, where small parcels with multiple owners and inflated land values are common. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency Board include: 1. Adopt a Resolution of the Redevelopment Agency approving the appropriation of $15,000 from Project Area No. 1 Non -Housing Tax Increment Funds for the purchase of tax -defaulted property from the County of Riverside Treasurer -Tax Collector and making certain findings pursuant to Health and Safety Code Section 33445; or ��) _ 014 2. Do not adopt a Resolution approving the appropriation of $15,000 from Project Area No. 1 Non -Housing Tax Increment Funds for the purchase of tax -defaulted property from the County of Riverside Treasurer -Tax Collector; or 3. Provide staff with alternative direction. Respectfully submitted, — /q4aax�r� Douglas Ft. Eyhns Assistant City Engineer — Development Services Approved for submission by: Thomas P. Genovese, Executive Director ww•� 015 RESOLUTION NO. 2011- A . RESOLUTION OF THE LA QUINTA REDEVELOPMENT AGENCY OF THE CITY OF LA QUINTA CALIFORNIA MAKING CERTAIN FINDINGS PURSUANT TO HEALTH AND SAFETY CODE SECTION 33445 AND AUTHORIZING THE EXPENDITURE OF FUNDS TO PURCHASE A TAX - DEFAULTED PROPERTY FROM THE RIVERSIDE COUNTY TREASURER -TAX COLLECTOR WHEREAS, the parcel (APN 770-152-007) is located in La Quinta Redevelopment Project Area No. 1 (the "Project Area"); and WHEREAS, the purchase and improvement of the parcel would afford the Redevelopment Agency the opportunity to address the blighting conditions; and WHEREAS, there is inadequate funding within the City's General Fund or from other sources to purchase the parcel or to construct the public improvements on the parcel, which improvements will improve the appearance of the area and will enhance pedestrian access within the Village; and WHEREAS, it would be in the best interest of the public for the City to purchase the property and to improve the property. NOW, THEREFORE, BE IT RESOLVED, by the La Quinta Redevelopment Agency of the City of La Quinta, California, as follows: SECTION 1. The above recitals are true and correct and are adopted as the findings of the Agency Board. SECTION 2. The Agency Board hereby authorizes Agency funding to be utilized for the purchase of the property from the Riverside County Treasurer -Tax Collector. SECTION 3. Pursuant to Health and Safety Code Section 33445, the Agency finds and determines that: A. The purchase of the property and its improvement will be a direct benefit to the Project Area and to the immediate neighborhoods in which the property is located. The benefits include improvement of pedestrian access within the Village and the beautification of the area. B. No other reasonable means of financing the purchase and development of the property is available to the community. "'� 016 Resolution 2011- Tax-Defaulted Property Purchase Adopted: January 18, 2011 Page 2 C. The purchase and improvement of the property will assist in the elimination of one or more blighting conditions inside the Project Area, and is consistent with the Redevelopment Agency's implementation plan adopted pursuant to Section 33490. PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta Redevelopment Agency held on this 18th day of January 2011, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: VERONICA J. MONTECINO, CMC, Secretary La Quinta Redevelopment Agency (SEAL) APPROVED AS TO FORM: M. KATHERINE JENSON, Agency Counsel La Quinta Redevelopment Agency City of La Quinta, California TERRY HENDERSON, Chairperson La Quinta Redevelopment Agency w,,: � O i l WRITTEN AGREEMENT UPDATING PRIOR AGREEMENTS BETWEEN THE CITY OF LA QUINTA AND THE LA QUINTA REDEVELOPMENT AGENCY REGARDING RENTAL CHARGES FOR USE OF CITY HALL AND ALLOCATION OF OVERHEAD AND ADMINISTRATIVE COSTS THIS WRITTEN AGREEMENT UPDATING PRIOR AGREEMENTS BETWEEN THE CITY OF LA QUINTA AND THE LA QUINTA REDEVELOPMENT AGENCY REGARDING RENTAL CHARGES FOR USE OF CITY HALL AND ALLOCATION OF OVERHEAD AND ADMINISTRATIVE COSTS ("Agreement") is made and entered into this 18th day of January, 2011, by and among the LA QUINTA REDEVELOPMENT AGENCY, a public body corporate and politic ("Agency"), and the CITY OF LA QUINTA, a charter city and municipal corporation ("City"). RECITALS WHEREAS, Agency is a public body, corporate and politic, organized under the California Community Redevelopment Law (Health & Safety Code § 33000 et seq.); and WHEREAS, City is a municipal corporation and a charter city of the State of California organized and existing under the Constitution of the State of California; and WHEREAS, Agency occupies the La Quinta City Hall facility; WHEREAS, Agency has paid rent to the City based upon its proportionate historical use of the La Quinta City Hall facility; WHEREAS, Agency files an annual Statement of Indebtedness with the County of Riverside setting forth the remaining balances of its rental obligation that are due until the expiration of the project areas. For fiscal year 2010-2011 through fiscal year 2018/2019, the outstanding indebtedness reported in the Statement for rental payment for Project Area 1 and Project Area 2 represented $1,208,584 each, for a total of $2,417,708. These amounts represent 40% of the remaining debt service of the 1996 Lease Revenue Refunding Bond issue costs. The percentage attributed to the Agency (40%) was determined based upon the historically estimated staff time required by the Agency to provide administrative and program support to advance its objectives. WHEREAS, once the 1996 Lease Revenue Refunding Bond are retired, the annual rental payment beginning in fiscal year 2019-2020 will be $150,000 for Project Area No. 1 and $150,000 for Project Area No. 2. The Agency will provide rental payment to the City, which payments will amount to $2,250,000 for Project Area No. 1 (through fiscal year 2033/34) and $3,150,000 for Project Area No. 2 for a total of $5,400,000 (through fiscal year 2039/2040). WHEREAS, Agency annually reimburses the City for the costs of staff and overhead based upon the portion of the staff s work relating to the implementation of the Redevelopment Plans for Project Areas No. 1 and No. 2. 119/015610-0042 114855901 a01/19/11 J 018 WHEREAS, with regarding to Agency administration and overhead not related to affordable housing, Agency has filed an annual Statement of Indebtedness with the County of Riverside setting forth the remaining balances of obligations that are due until the expiration of the project area. The outstanding indebtedness reported in the Statement for overhead/administration for Project Area 1 is $1,011,588 and for Project Area 2 is $124,256 for a total of $1,135,844. For the life of the project areas, this cost in anticipated to be an additional amount of $23,000,000 in Project Area No. 1 and $3,625,000 in Project Area No. 2, for a total of $26,625,000 in overhead/administration. WHEREAS, with regarding to Agency administration and overhead related to affordable housing, Agency files an annual Statement of Indebtedness with the County of Riverside setting forth the remaining balances of obligations that are due until the expiration of the project area. The outstanding indebtedness reported in the Statement for the entire Low & Moderate Housing Set Aside Program for Project Area 1 is $302,971,888 and for Project Area 2 is $229,076,850. Within these amounts will be funds set aside for the Overhead/Administration of the Low & Moderate Housing Set Aside Program. For Fiscal Year 2010/2011 the amounts were $713,564 and $420,085, which were provided by the Agency to the City. An additional $16,100,000 in Project Area No. 1 and $11,600,000 in Project Area No. 2 will be required in overhead/administration after FY 2010/2011 until the expiration of the Project Areas to complete Low and Moderate Income Projects. AGREEMENT NOW, THEREFORE, in consideration of the mutual covenants and promises hereinafter contained, Agency and City agree as follows: Section 1. Agency Rental Payments for Use of City Hall. Agency shall continue to make annual rent payments for the use of City Hall through the fiscal year 2033/2034 for Project Area No. 1, and through fiscal year 2039/2040 for Project Area No. 2. The rental payments shall be in the amount shown on Exhibit "A". Section 2. Agency Reimbursement to City for Non -Housing Administration/Overhead. Agency shall continue to make annual payments to the City for its proportionate share of administration and overhead relating to non -housing Agency activities. The payments shall be in the amount shown on Exhibit "B". Section 3. Agency Reimbursement to City for Housing_ Administration/Overhead. Agency shall continue to make annual payments to the City for its proportionate share of administration and overhead relating to housing Agency activities. The payments shall be in the amount shown on Exhibit "C". Section 4. Entire Agreement; Amendments. This Agreement shall constitute the entire agreement of the parties. This Agreement may be amended or modified only by an agreement in writing signed by the parties. I I9/015610-0042 -2- 1148559.01 a0I/ MU] 'e6dA019 Section 5. Severability of Provisions. No provision of this Agreement that is held to be unenforceable or invalid shall affect the remaining provisions, and to this end all provisions of this Agreement are hereby declared to be severable. N WITNESS WHEREOF, the parties have caused this Agreement to be executed by their authorized representatives, as of the date first above written. "AGENCY" LA QUINTA REDEVELOPMENT AGENCY go ATTEST: Secretary APPROVED AS TO FORM: Agency Counsel Executive Director "CITY" CITY OF LA QUINTA By: City Manager ATTEST: City Clerk APPROVED AS TO FORM: City Attorney 119/015610-0042 -3- _ 114855901 a01/19/11 1 020 poi 1 EXHIBIT "A" SCHEDULE OF RENTAL PAYMENTS [SEE LIST ON FOLLOWING PAGE] 119/015610-0042 _ 1148559.01 s01/19/11 _4 SCHEDULE OF NON -HOUSING ADMINISTRATION AND OVERHEAD REIMBURSEMENTS [SEE LIST ON FOLLOWING PAGE] 119/015610-0042 _5— .�c�a l O 1148559.01 e01/19/11 EXHIBIT "C" SCHEDULE OF HOUSING ADMINISTRATION AND OVERHEAD REIMBURSEMENTS 119/015610-0042 1148559.01 a01/19/11 w 023 Rental Reimbursement Bond Principal 40.00% 50%O Annual PA 50% 2 Annual Debt service Total City Hall RDA Portion PA 1 Debt service 10/11 6,044,270 2,417,708 1,208,854 134,505 1,208,854 134,505 134,704 269,010 269,408 11/12 5,371,745 2,148,698 1,074,349 134,704 1,074,349 939,645 134,626 269,252 12/13 4,698,224 1,879,290 939,645 134,626 134,270 805,019 134,270 268,540 13/14 4,025,094 1,610,038 805,019 134,609 670,749 134,609 269,218 14/15 3,353,743 1,341,497 670,749 536,140 134,616 536,140 134,616 269,232 15/16 2,680,696 1,072,279 803,048 401,524 134,288 401,524 134,288 268,576 16/17 17/18 2,007,620 1,336,179 534,472 267,236 133,628 267,236 133,628 267,256 267,216 18/19 668,038 267,215 133,608 133,608 133,608 6,037,124 133,608 1,208,854 2,417,708 Subtotal 30,185,608 12,074,245 6,037,124 1,208,854 150,000 150,000 300,000 19 /20 19/21 150,000 150,000 300,000 150,000 150,000 300,000 21/22 150,000 150,000 300,000 22/23 150,000 150,000 300,000 23/24 150,000 150,000 300,000 24/25 150,000 150,000 300,000 25/26 150,000 150,000 300,000 26/27 150,000 150,000 300,000 27/28 150,000 150,000 300,000 28/29 150,000 150,000 300,000 29/30 150,000 150,000 300,000 30/31 150,000 150,000 300,000 31/32 150,000 150,000 300,000 32/33 150,000 150,000 300,000 33/34 0 150,000 150,000 34/35 0 150,000 150,000 35/36 0 150,000 150,000 36/37 0 150,000 150,000 37/38 0 150,000 150,000 38/39 0 150,000 150,000 39/40 2,250,000 3,150,000 5,400,000 Subtotal 3,458,854 4,358,854 7,817,708 Total EXHIBIT A "'.19 024 Overhead/Administrative Reimbursement 10/11 13/14 14/15 15/16 16/17 17/18 18/19 20/21 21/22 22/23 24/2 PA 1 PA 2 Total 1,011,588 124,256 1,135,844 27/28 28/29 29/30 30/31 31/32 32/33 35/36 36/37 37/38 38/39 39/40 Subtotal Total 1,000,000 125,000 1,125,000 1,000,000 125,000 1,125,000 1,000,000 125,000 1,125:000 1,000,000 125,000 1,125,000 1,000,000 125,000 1,125,000 1,000,000 125,000 1,125,000 1,000,000 125,000 1,125,000 1,000,000 125,000 1,125,000 1,000,000 125,000 1,125,000 1,000,000 125,000 1,125,000 1,000,000 125,000 1,125,000 1,000,000 125,000 1,125,000 1,000,000 125,000 1,125, 000 1,000,000 12 5, 000 1,125,000 1,000,000 125,000 1,125,000 1,000, 000 125,000 1,125,000 1,000,000 125,000 1,125,000 1,000,000 125,000 1,125, 000 1,000,000 125,000 1,125,000 1,000, 000 125,000 1,125,000 1,000,000 125,000 1,125, 000 1,000,000 125,000 1,125, 000 1,000,000 125,000 1,125,000 0 125,000 125,000 0 125,000 125,000 0 125,000 125,000 0 125,000 125,000 0 125,000 125,000 0 125,000 125,000 23,000,000 3,625,000 26,625,000 24,011,588 3,749,256 27,760,844 ") 025 EXHIBIT B Low and Moderate Income Housing Overhead/Administrative Reimbursement 10/11 14/15 15/16 16/17 17/18 20/21 21/22 22/23 23/24 27/28 28/29 29/30 30/31 31/32 32/33 35/36 36/37 37/38 38/39 39/40 Subtotal PA 1 PA 2 Total 713,564 420,085 1,133,649 700,000 400,000 1,100,000 700,000 400,000 1,100,000 700,000 400,000 1,100,000 700,000 400,000 1,100,000 700,000 400,000 1,100,000 700,000 400,000 1,100,000 700,000 400,000 1,100,000 700,000 400,000 1,100,000 700,000 400,000 1,100,000 700,000 400,000 1,100,000 700,000 400,000 1,100,000 700,000 400,000 1,100,000 700,000 400,000 1,100,000 700,000 400,000 1,100,000 700,000 400,000 1,100,000 700,000 400,000 1,100,000 700,000 400,000 1,100,000 700,000 400,000 1,100,000 700,000 400,000 1,100,000 700,000 400,000 1,100,000 700,000 400,000 1,100,000 700,000 400,000 1,100,000 700,000 400,000 1,100,000 0 400,000 400,000 0 400,000 400,000 0 400,000 400,000 0 400,000 400,000 0 400,000 400,000 0 400,000 - 400,000 16,100,000 11,600,000 27,700,000 Total 16,813,564 12,020,085 28,833,649 EXHIBIT C ",9,0 026 RESOLUTION NO. RA 2011- A RESOLUTION OF THE LA QUINTA REDEVELOPMENT AGENCY, APPROVING A FUNDING AGREEMENT FOR FUTURE PUBLIC IMPROVEMENTS AND AFFORDABLE HOUSING IN THE CITY OF LA QUINTA, AND MAKING CERTAIN FINDINGS PURSUANT TO HEALTH AND SAFETY CODE SECTION 33445(a) AND 33420.2 WITH RESPECT TO THE AGENCY'S EXPENDITURE WHEREAS, the La Quinta Redevelopment Agency ("Agency"), pursuant to Health and Safety Code Section 33445, is authorized to provide funding for the development of publicly owned improvements; and WHEREAS, the City of La Quinta ("City") and Agency mutually desire to enter into a Funding Agreement for Future Public Improvements and Affordable Housing in the City of La Quinta (the "Agreement") to, among other things, set forth their respective obligations with respect to the funding of certain public improvements which are outlined on Exhibit "A" and Exhibit "B" of the Agreement (collectively, the "Public Improvements ); " and WHEREAS, City does not have the funding to plan, design, or build the Public Improvements without Agency funding; and WHEREAS, to ensure that the Public Improvements are completed in a timely manner, the Agency and City wish to enter into the Agreement; and WHEREAS, City, Agency, and the La Quinta Housing Authority wish to ensure the continued provision of affordable housing within the community to serve the needs of existing and future residents who qualify as moderate income, low income, and very low income; and WHEREAS, City has been assigned the following affordable housing obligations pursuant to the Regional Housing Needs Assessment for the years 2008-2014: Very Low Income — 1,065 dwelling units, Low Income — 724 Dwelling Units, and Moderate Income — 796 Dwelling Units; and WHEREAS, to ensure that adequate housing is provided for persons within Moderate Income, Low Income, and Very Low Income households, the Agency wishes to transfer to the City or Authority its future Low and Moderate Income Housing Funds that are not previously pledged for other purposes in order to fund o..:-I 027 Resolution No. RA 2011- Funding Agreement Adopted: January 18, 2011 Page 2 the affordable housing projects listed on Exhibit C of the Agreement ("Housing Projects"); and WHEREAS, City and Authority do not have the funding to plan, design, or build the Housing Projects without Agency funding; and WHEREAS, to ensure that the Housing Projects are completed in a timely manner and that the City's residents of all income categories have descent, safe and sanitary housing, the Agency desires to fund the Housing Projects through the Agreement. WHEREAS, graffiti is a significant blighting condition within Project Area 1 and 2; WHEREAS, with other demands on the City's general fund, it ability to timely and fully remove graffiti within Project Area 1 and 2 has been impaired; and WHEREAS, the annual cost of graffiti removal in Project Area 1 and 2 is $138,000; WHEREAS, the Agency wishes to fund the removal of graffiti in Project Area 1 and 2 through the execution of the Agreement. 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 hereby finds and determines that: A. The Public Improvements to be constructed within or contiguous to Project Area No. 1 are of benefit to Project Area No. 1 by helping to eliminate blight within Project Area No. 1, in that said Public 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 Public Improvements to be constructed within or contiguous to Project Area No. 2 are of benefit to Project Area No. 2 by helping to eliminate blight within Project Area No. 2, in that said Public Improvements consist of public infrastructure improvements and one property acquisition, and the Redevelopment Plan for Project Area No. if- ) 028 A Resolution No. RA 2011- Funding Agreement Adopted: January 18, 2011 Page 3 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 property acquisition as a means of eliminating and preventing the spread of blighting influences. C. No other reasonable means of financing the Public 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 Public Improvements is to use Agency funding; (iii) without Agency funding for the Public Improvements, the Public Improvements would not be completed, all to the detriment of Project Area No. 1 and Project Area No. 2. D. The Public 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. Section 3. The Agency's expenditure for the Public 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 Agreement, a copy of which is on file with the Agency Secretary, is hereby approved, and the Agency Executive Director is hereby authorized and directed to sign the Agreement. Section 5. Pursuant to Health and Safety Code Section 33420.2, the Agency Board finds and determines that because of the magnitude and severity of the graffiti within Project Area No. 1 and 2, the funding for and the graffiti removal provided for in the Agreement is necessary to effectuate the purposes of the Redevelopment Plan for Project Area No. 1 and 2, and that the foregoing actions will assist with the elimination of blight, as defined in Health and Safety code Section 33031. PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta Redevelopment Agency held on this 18th day of January , 2011, by the following vote to wit: AYES: NOES: �� '� 029 Resolution No. RA 2011- Funding Agreement Adopted: January 18, 2011 Page 4 ABSENT: ABSTAIN: TERRY HENDERSON, Chair La Quinta Redevelopment Agency ATTEST: VERONICA J. MONTECINO, CMC, AGENCY SECRETARY La Quinta Redevelopment Agency APPROVED AS TO FORM: M. KATHERINE JENSON, Agency Counsel La Quinta Redevelopment Agency ".1.0 030 FUNDING AGREEMENT FOR FUTURE PUBLIC IMPROVEMENTS AND AFFORDABLE HOUSING IN THE CITY OF LA QUINTA THIS FUNDING AGREEMENT ("Agreement') is made and entered into this 18th day of January, 2011, by and among the LA QUINTA REDEVELOPMENT AGENCY, a public body corporate and politic ("Agency"), the CITY OF LA QUINTA, a charter city and municipal corporation ("City"), and the LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic ("Authority"). RECITALS WHEREAS, Agency is a public body, corporate and politic, organized under the California Community Redevelopment Law (Health & Safety Code § 33000 et sue.); and WHEREAS, City is a municipal corporation and a charter city of the State of California organized and existing under the Constitution of the State of California; and WHEREAS, Authority is a public body, corporate and politic, organized under the California Housing Authorities Law (Health & Safety Code § 34200 et se .); and WHEREAS, Agency, pursuant to Health and Safety Code Section 33445, is authorized to provide funding for the development of publicly owned improvements; and WHEREAS, City and Agency mutually desire to enter into this Agreement to set forth their respective obligations with respect to the funding of certain public improvements (collectively, the "Public Improvements") outlined on Exhibit "A" and Exhibit "B", which exhibits are attached hereto and incorporated herein by this reference; and WHEREAS, it is estimated that the costs of Public Improvements is $210,010,897; and WHEREAS, City does not have the funding to plan, design, or build the Public Improvements without financial assistance from the Agency; and WHEREAS, to ensure that the Public Improvements are completed in a timely manner, the Agency wishes to fund $210,010,897 to the City from its future receipts of non -housing Tax Increment that is not currently encumbered for other purposes; WHEREAS, City, Agency, and Authority wish to ensure the continued provision of affordable housing within the community to serve the needs of existing and future residents who qualify as moderate income, low income, and very low income; and WHEREAS, City has been assigned the following affordable housing obligations pursuant to the Regional Housing Needs Assessment for the years 2008-2014: Very Low Income — 1,065 dwelling units, Low Income — 724 dwelling units, and Moderate Income — 796 dwelling units; and 119/015610-0042 1148483 04 a01/18/11 w... i 031 WHEREAS, to ensure that adequate housing is provided for persons within Moderate Income, Low Income, and Very Low Income households, the Agency wishes to pay to the City and/or the Authority its future Low and Moderate Income Housing Proceeds that are not previously encumbered for other purposes in order to fund the affordable housing projects listed on Exhibit C ("Housing Projects"); and WHEREAS, City and Authority do not have the funding to plan, design, or build the Housing Projects without the Agency funding; and WHEREAS, to ensure that the Housing Projects are completed in a timely manner and that the City's residents of all income categories have decent, safe and sanitary housing, the Agency wishes to pay $589,886,674 to the City and/or Authority from its future receipts of Low and Moderate Income Set Aside of the Tax Increment that is not currently encumbered for other purposes; WHEREAS, graffiti is a significant blighting condition within Redevelopment Project Areas 1 and 2; WHEREAS, with other demands on the City's general fund, it ability to timely and fully remove graffiti has been impaired; and WHEREAS, the annual cost of graffiti removal in Redevelopment Project Areas I and 2 is $138,000; WHEREAS, the Agency wishes to fund the removal of graffiti in the City from the execution of this Agreement until the dates specified below. AGREEMENT NOW, THEREFORE, in consideration of the foregoing Recitals, which are incorporated herein by this reference, and the mutual covenants and promises hereinafter contained, Agency and City agree as follows: Section 1. Agency Payment for Public Improvements. Agency hereby agrees to pay to City the amount of ($210,010,897) ("Public Improvements Funding") from its future non -housing tax increment funds for Redevelopment Project Areas No. 1 and 2 that are not encumbered for other purposes. The Public Improvements Funding shall be used to plan, design, and construct the Public Improvements. No portion of the Public Improvements Funding shall be used for any purpose not permitted by Health and Safety Code Section 33445. The portion of the Public Improvements Funding derived from Project Area No. I will be used to fund the Public Improvements locate in or immediately adjacent to Project Area No. 1. The portion of the Public Improvements Funding derived from Project Area No. 2 will be used to fund the Public Improvements located in or immediately adjacent to Project Area No. 2. No portion of the Public Improvements Funding for the Public Improvements shown in Exhibit "C" shall be utilized prior to the completion of the public hearing process required by Health & Safety Code Section 33679. 119/015610-0042 _2_ 1148483 04 a01/18/11 Section 2. Agency Payment for Affordable Housing. Agency hereby agrees to pay to City and/or the Authority (as determined by the City Council) the amount of ($589,886,674) ("Affordable Housing Funding") from the future Low and Moderate Income Set Aside of the tax increment funds for Redevelopment Project Areas No. 1 and 2 that are not encumbered for other purposes. The Affordable Housing Funding shall be used to plan, design, and construct the Housing Projects. The City shall be responsible for the expenditure of the Affordable Housing Funds and for compliance with all legal requirements imposed on the funds. Section 3. Agency Payment for Graffiti Removal. Agency hereby agrees to pay to City the amount of $138 000 ("Graffiti Removal Funding") for each fiscal year, beginning with the 2010-2011 fiscal year, from its future non - housing tax increment funds for Redevelopment Project Areas No. 1 and 2. The funding shall be allocated as follows: $82,800 for Project Area No. 1, and $55,200 for Project Area No. 2. The Graffiti Removal Funding shall be used solely for graffiti removal in Project Area Nos. 1 and 2. The Graffiti Removal Funding shall be in the amounts shown on Exhibit "D". Section 4. Entire Agreement Amendments. This Agreement shall constitute the entire agreement of the parties. This Agreement may be amended or modified only by an agreement in writing signed by the parties Section 5. Severability of Provisions. No provision of this Agreement that is held to be unenforceable or invalid shall affect the remaining provisions, and to this end all provisions of this Agreement are hereby declared to be severable. Lend — signature page follows] 119/015610-0042 1148483.04 A 1/18/II 033 -3 .nN '� IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their authorized representatives, as of the date first above written. "AGENCY" ATTEST: Secretary APPROVED AS TO FORM: Agency Counsel ATTEST: City Clerk APPROVED AS TO FORM: City Attorney ATTEST: City Clerk 119/0156 IM042 114E4s7 04 aOI/IVI I LA QUINTA REDEVELOPMENT AGENCY go Chairman "CITY" CITY OF LA QUINTA By: Mayor "AUTHORITY" LA QUINTA HOUSING AUTHORITY am -4- 0.3 4 APPROVED AS TO FORM: Authority Legal Counsel 119/015610-0042 1148483.04 a01/18/11 -5- 035 EXHIBIT "A" PUBLICLY OWNED IMPROVEMENTS IN LA QUINTA NOT SUBJECT TO HEALTH AND SAFETY CODE SECTION 33679 [SEE LIST ON FOLLOWING PAGE] 119/015610-0042 1148483 04 a01/18/11 0.36 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o O o o O O o 0 o o o o 0 o 0 o o o o 0 00000000000o0000000000000000 ooao0o 0 v��vi aiv000v�nc600� 6C6 n 1 o o o o a oar o o o o o 0 of mww0Q0"0000nnmoonnomn0000mwnno00000 Q 0 O O N O N w (O , N O n M QQ Q MOO LO N n-7 w 0 0 0 w w n w w 0 0 0 06 0 w w Q w n MN-,w w.-OQ M wM wO0M Om M w MM M M t00 w Q n Q M Q N M- w O n O Q Q Q m N w Q Q '1'lq Q No Q O N Q Cq m N r L 0 3 N_ ^ w O R r E C y ^ C 3 E 2co> C U ^ w m N o O w > d o o Wm-- mo 47N CEc of Ew mnm ^ Uc ct mmEU E a a�°•�(c(pp' mom U u�mim pic Cw wJ ayy„ SOU>'C >> m = Y E m o E NO m> >w U�0EY 00LCJE OUmm- jL 6 co 4O_- w E O. C O N 0 C-W(n� J m O m¢ � C w O N pE 8O > N O w m N c J C 'O 'O a C m w N c U r E m mo>mo �'��cE °-o ommwE=T�'Eomw Km - cw c �¢Ea m2 o'm a6i cmay2—mm(nmm�u+ acmes o a cmF'E Ew¢o_a2wcm�o�Wmya.cacsJ J J Z - 'O 'Yl 'm C w Vl « L w J m °1 O E w L �mmmrn �(oi gN�pc acimv_vUhama�>m U¢ T C—- @ m m @ C C tO w N J 3 J@ @ �' C O O m@> O a> C O N Y C p ,�. p N m> N ._ ._ T C w m C C C C .- @ N m o o a`mw 8— E..p Cmc`°� 5wo0) �rnrnmrnUL ¢ aNm>ma��v� @�m�mw�cwiNmm��'cu(wi (�i (wicU a T�gEEim�mmoDomwoca3wam Ec0>.oE�E�mm ¢ w cmm(nx��orn�rnyo-mm>(�.«.K mmm>ommmmmwm p m y a w m u p o c c m ?� ¢ w ry N c a 3¢ m r r r r r o K m� c wE��o�m�m a3icm�awim"¢w3 c'o OE am= "3333`'t U5m�amg�@'mvmmLv7pmw 2wJm=mwwwm ¢x�00 657¢23x� nx�u 2a¢xi�zpu �a3zzzzr`O Sc r 0000000000000000000000000000000 000000000000000000000000000000o 0 c w .=co ui .=o(�(o ui�a000000000000co� a6��000vio � c Nw o�nwwMnwwMoonw000000Mn�o��000�o M( w O O M w 0 0 0 �O O O n N M M 0 0 0 0 •- O 6ON10 Ld(NOr M N mwmvuniw V (w'1 W O(OOr�000wO0aOD Q(`w'1 (00 �-�rl: wR �(pNMNm n (D N CNN � CoM� (D��00 Nw (6 (O N � r > C. a E 'o w o w m m E w 0 a ^ y � V w m > G J c mE 't a > m I=.00w cn m wE E o @ 16 .`o0>cE a c d> m� U,�� mCC om w m > o d a u o U p a w uQ w N ao m e o wmm cco w Kw Jo o 0 c'o � E E u a@ m> w w w c E U Z w'O m .� g 0 - O w 0 w NC C v'O m m U C7 J m pO O O w >wE,ma ¢ aid_Ym a\m EE EC NK=w@ �wCm,v.Uw@p:?c awt6 a dC¢C.. mm(DE :O )T 0C w@ w w Im�KL •LVw�- L�oTGui ¢pamOnV =a o=`m�V�i@na� �w @C.@(� dvC�mm�aaw �`,oD c ¢a wm@wmwam � a"o pYDEVU m� ¢� co OOONOCOOOT COmO ULLIO mm@Nco N===r m w @ N C C' N O@ > > N OLNL>N > > > O@ > > . O (7 3in'coN(7m»w¢>¢�¢ C� U�(nz(naU2¢¢¢zrz(nU r EXHIBIT A 40141J- 037 EXHIBIT `B" PUBLICLY OWNED IMPROVEMENTS IN LA QUINTA SUBJECT TO HEALTH AND SAFETY CODE SECTION 33679 [SEE LIST ON FOLLOWING PAGE] 119/015610-0042 _ 1148483.04 a01/I8/11 _7 0138 38 Exhibit B - Project Areas 1 and 2, Public Improvements With Buildings RDA PA 1 SilverRock Clubhouse Community Center (Expansion of Senior Center) Corporate Yard Phases II and III Black Box Theater Village Area Parking Structure Fritz Burns Pool Improvements (Expansion) RDA PA 2 Corporate Yard Phases 2 and 3 5 Bus Shelters Grand Total RDA PA 1 and 2: Total Cost 23,332,283.00 3,000,000.00 4,082,504.00 3,000,000.00 7,500,000.00 1,500,000.00 Subtotal: 42 , 414, 787.00 Total Cost 1,936,290.00 625,000.00 Subtotal: 2,561,290.00 44,976,077.00 039 EXHIBIT B EXHIBIT "C" AFFORDABLE HOUSING PROJECTS [SEE LIST ON FOLLOWING PAGE] 119/015610-0042 1148483.04 a0V18/11 �...� 040 EXHIBIT "C" La Quinta Redevelopment Agency Affordable Housing Production The La Quinta Redevelopment Agency ("RDA") is required to produce 2,307 units of affordable housing. To date, the RDA has provided a total of 1,059 units of affordable housing. Therefore, the RDA is required to produce an extra 1,069 units. On -Going Project Production Summary — The City has acquired certain parcels of land for the purposes of building affordable housing. All of the following projects have involved significant costs to the RDA for the purposes of acquisition, environmental evaluation, preliminary planning, demolition of blighted structures, and/or rehabilitation plans. Project Anticipated Area Project Name Description Expenditure Substantially rehabilitate 72 very -low income senior and special needs units owned by the RDA; Washington Street construct up to 83 additional very -low income senior 2 Apartments units on adjacent RDA -owned property $18,200,000 Approx 95 unit multi -family complex; if Agency is Dune able to acquire adjacent 39,000 sf property, unit 2 Palms/Westward Ho count increases to 95 $18,000,000 Potential 32 loft dwellings on Agency -owned 35,000 Village Live -Work sq. ft. parcel; Agency looking to acquire adjacent 1 Housing 15,000 s . ft. parcel to expand project $8,700,000 Provide funding to continue building HFH homes on 1 Habitat for Humanity Agency and HFH-owned vacant lots $525,000 Purchase and rehab of foreclosed homes; 6 Foreclosed Home purchased and 5 rehabbed to date; plan to continue 1 & 2 Purchase Program program $3,200,000 $48,625,000 To complete these projects which will result in. 287 units of very low-, low- and moderate -income units, an additional $48,625,000 in funding will be required. Future Project Production Summary — In addition to the 1,059 affordable units already produced plus the existing projects described above, the RDA is required to produce an additional 961 units of affordable housing. In order to achieve the RDA state mandated production requirements, the RDA will be demolition to acquire additional land and fund planning and construction efforts. In order to account for future increases in land and construction costs, the need to build higher density housing due to the decreasing availability of vacant land, and potential that the Agency will need to develop affordable housing outside of its Redevelopment Project Areas thus will need to build two dwellings for each dwelling it receives credit for, the Agency will need to budget $563,227 per unit or $541,261,674 to satisfy its affordable housing production requirements. EXHIBIT C 041 119/015610-0042 1148483 04 a07/I8/II EXHIBIT "D" GRAFFITI REMOVAL FUNDING [SEE LIST ON FOLLOWING PAGE] 0 042 Graffiti Removal 10/1 11/1 12/1 13/1 14/1 15/1 16/1 17/1 18/1' 19/2, 20/2, 21/2; 22/21, 23/2j 24/2' 25/2t 26/2-, 27/2F 28/2� 29/3( 30/31 31/32 32/33 33/34 34/35 35/36 36/37 37/38 38/39 39/40 Total 60% PA 1 40% PA 2 Total 1 82,800 55,200 138,000 2 82,800 55,200 138,000 3 82,800 55,200 138,000 4 82,800 55,200 138,000 5 82,800 55,200 138,000 6 82,800 55,200 138,000 7 82,800 55,200 138,000 3 82,800 55,200 138,000 3 82,800 55,200 138,000 82,800 55,200 138,000 t 82,800 55,200 138,000 ! 82,800 55,200 138,000 1 82,800 55,200 138,000 1 82,800 55,200 138,000 i 82,800 55,200 138,000 i 82,800 55,200 138,000 82,800 55,200 138,000 82,800 55,200 138,000 82,800 55,200 138,000 82,800 55,200 138,000 82,800 55,200 138,000 82,800 55,200 138,000 82,800 55,200 138,000 82,800 55,200 138,000 0 55,200 55,200 0 55,200 55,200 0 55,200 55,200 0 55,200 55,200 0 55,200 55,200 0 55,200 55,200 1,987,200 1,656,000 3,643,200 EXHIBIT D �•••`? 043 c&t!t 4 4 Qumm COUNCIL/RDA MEETING DATE: January 18, 2011 ITEM TITLE: Joint Public Hearing to Consider Adoption of a Resolution of the Redevelopment Agency Recommending to the City Council Approval of the Proposed Fifth Amendment to the Redevelopment Plan for Project Area No. 2 and Confirming the Fifth Amendment is Categorically Exempt per CEQA Guideline Section 15320 RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: / Conduct a Joint Public Hearing with the City Council to receive all evidence concerning the Fifth Amendment to the Redevelopment Plan for Redevelopment Project No. 2. Close the Joint Public Hearing and consider one of the following actions: • If written objections are received at or prior to the close of the hearing, direct staff to prepare written responses to the written objections which would be considered at a meeting to be held on February 1, 201 1; or • If written objections are not received, adopt a Resolution recommending to the City Council approval of the Fifth Amendment to the Redevelopment Plan for the Redevelopment Project Area No. 2. FISCAL IMPLICATIONS: None. The expenditures for the Fifth Amendment have been included in the Agency's 2010-2011 Budget. BACKGROUND AND OVERVIEW: In July 2008, the Redevelopment Agency ("Agency") initiated an Amendment to the Redevelopment Plan for La Quinta Redevelopment Project No. 2 ("Redevelopment Plan") for the purposes of adding a 73 unit apartment complex parcel and a vacant parcel ("Fifth Amendment") to La Quinta Redevelopment Project Area No. 2 ("Project Area No. 2"). Combined, these contiguous parcels are 12.42 acres in size and are located east of Washington Street and south of Hidden River Road ("Added Area"); they were annexed into the City in December 2007 and are noncontiguous to Project Area No. 2. The Agency owns the vacant parcel 1...131 044 and apartment complex, and intends to rehabilitate the apartment complex and construct new affordable apartment homes on the vacant parcel. The California Redevelopment Law ("CRL") mandates that the Agency secure 2,307 affordable dwellings by 2029. These dwellings must feature covenants to insure that they remain affordable to very -low, low- or moderate -income households for 45 to 55 years (55 years for rental -units and 45 years for owner - occupied units). To date, the Agency has secured 1,059 affordable units. (This number may fluctuate due to covenants being lost during the year.) The construction and rehabilitation of the Added Area properties would contribute to this effort by substantially rehabilitating the existing 73 unit apartment complex and constructing up to 83 new affordable units. Per the CRL, a redevelopment agency must produce two affordable units for every one unit it receives credit for, if the properties are located outside of a redevelopment agency's project area; the agency receives a one for one credit if the dwellings are located in a project area. In order to receive one for one credit for the 156 substantially rehabilitated and new affordable units located in the Added Area, the Agency elected to include the Added Area in Project Area No. 2 by initiating the Fifth Amendment. The City Manager's Department -Development Services Division has determined that this application is Categorically Exempt from further environmental review pursuant to the provisions of Section 15320 (Class 20) of the California Environmental Quality Act (CEQA). Class .20 refers to changes in the organization or reorganization of local governmental agencies where the changes do not change the geographical area in which previously existing powers are exercised. Because the Added Area lies within the City's boundaries, this exemption is applicable. To date, a number of steps have been completed in the Amendment process. In July 2008 the Planning Commission approved the Preliminary Plan for the Fifth Amendment and authorized its transmittal to the Agency, who approved the Preliminary Plan in July 2008. A portion of the Added Area (the 73 unit apartment complex) was a part of the Riverside County Desert Communities Project Area Palm Desert Sub -Area. In May 2010 the Board of Supervisors approved the detachment of the apartment complex property so that the Agency could add this property to Project Area No. 2. On October 12, 2010, the Planning Commission made a report and recommendation that the Fifth Amendment is in conformance with the General Plan. Finally, on November 2, 2010, the City Council and the Agency Board consented to holding the Joint Public Hearing on the Fifth Amendment on January 18, 2011. Fifth Amendment Summary The proposed Fifth Amendment: 1. Adds the Added Area properties to Project Area No. 2. 2. Amends and updates the Redevelopment Plan, resulting in a new document (Attachment 1 ) that is consistent with the General Plan and other applicable land use policies, consistent with current redevelopment practices and legal requirements, and incorporates all prior amendments. The Fifth Amendment does not change any other provisions of the Redevelopment Plan. Section 33320.2 of the CRL states that unblighted properties that are not contiguous to a project area may be included in a project area if they are predominantly being used for the construction and rehabilitation of low- or moderate -income housing. A redevelopment agency may add said properties to its project area as long as it is not doing so for the purpose of obtaining tax increment, and the redevelopment agency will not use the power of eminent domain in that area. The Agency is electing to not receive tax increment revenue from the Added Area, and the Agency's eminent domain authority in Project Area No. 2 expired in May 2001; the Agency is not proposing to reinstate the authority to use eminent domain. Attachment 2 is the Redevelopment Agency's Report to the City Council for the Fifth Amendment ("Report"). The Report provides information, documentation, and evidence to assist the Agency with their consideration of the Fifth Amendment, and in making various determinations in connection with its adoption. The Report was made available for review by the general public and affected taxing entities. Community Outreach A community information meeting was. conducted on January 10, 2011 to provide Project Area No. 2 and Added Area property owners, residents, businesses, taxing entities, and the general public with the opportunity to learn more about the Fifth Amendment. The meeting took place in the Council Chambers. Notice of the community meeting was provided as part of the Notice of Joint Public Hearing that was mailed via first class delivery to all property owners, residents, businesses and taxing agencies in Project Area No. 2. Six people attended the community information meeting, and had general questions regarding the Fifth Amendment. Several were concerned that the amendment would affect their tenancy in the nearby mobile home park. The attendees were assured that the Fifth Amendment will only add the Washington Street Apartment property and adjacent vacant parcel 046 to Project Area No. 2; and that the Redevelopment Agency does not currently have power of eminent domain. Joint Public Hearing The CRL requires that the City Council and Agency conduct public hearings on the Fifth Amendment before the Agency considers a resolution approving and recommending the Fifth Amendment. In lieu of conducting separate hearings, Section 33355 of the CRL permits the City Council and Agency to hold a single joint public hearing. On November 2, 2010, both the City Council and the Agency adopted resolutions consenting to the Joint Public Hearing. The CRL requires that the Joint Public Hearing Notice be published in a newspaper of general circulation not less than once a week for four successive weeks prior to the Hearing, and mailed to all affected taxing entities via certified mail, return receipt requested. Further, the notice must be mailed to all affected property owners and, where addresses are available, residents and businesses at least 30 days prior to the hearing via first-class mail. Notice of the Hearing was provided by the following actions: (1) publication of the Notice of Joint Public Hearing in The Desert Sun on December 23 and 30, 2010, and on January 6 and 13, 201 1; (2) the notice was mailed to 9,165 Project Area No. 2 and Added Area property owners, business owners, and residential and business tenants on December 15, 2010 via first class mail; and (3) a notice was mailed to all affected taxing entities via certified mail, return receipt requested, on December 15, 2010. During the Hearing, the Agency may receive a staff presentation and hear all evidence and testimony for and against approval of the Fifth Amendment. The staff presentation will highlight important information and findings in the Amended and Restated Plan and the Agency's Report. Following the staff presentation, various documents will be entered into the record, the Agency Secretary will review any pertinent written correspondence received, and then members of the public will be given the opportunity to speak on the Fifth Amendment. Following all public testimony, the Joint Public Hearing will be closed. If written comments are received, the Agency may adopt the Fifth Amendment only after consideration of these objections and adoption of written findings in response, at a date not less than one week after the Joint Public Hearing. Consideration of the Fifth Amendment and other actions would take place at a Joint Agency/City Council Public Hearing to be held on February 1, 2011. If written comments are not received, the Agency may adopt a resolution approving and recommending the Council approve and adopt the Fifth Amendment. ,...:�_ 0147 FINDINGS AND ALTERNATIVES: Conduct the Joint Public Hearing and upon receiving all testimony, close the hearing and: 1. If written responses are received, direct staff to prepare written responses to written objections received prior to and during the Hearing and present such responses to the Agency for consideration on February 1, 201 1; or 2. If written responses are not received, approve and recommend to the City Council adoption of the Fifth Amendment to the Redevelopment Plan for the Redevelopment Project Area No. 2; or 3. Close the Hearing and provide staff with alternate direction. Respectf submitted, Douglas K Evans, Assistant City Manager — Development Services Approved for submission by: Thomas P. Genovese, Executive Director Attachments: 1. Amended and Restated Redevelopment Plan to the La Quinta Redevelopment Project Area No. 2 2. Report to the City Council on the Fifth Amendment to the Redevelopment Plan for the La Quinta Redevelopment Project Area No. 2 (including the Amended Five Year Implementation Plan) ,a.. -0 048 RESOLUTION NO. RA 2011 A RESOLUTION OF THE LA QUINTA REDEVELOPMENT AGENCY APPROVING AND RECOMMENDING ADOPTION BY THE CITY COUNCIL OF THE FIFTH AMENDMENT TO THE REDEVELOPMENT PLAN FOR THE REDEVELOPMENT PROJECT AREA NO. 2 FIFTH AMENDMENT TO REDEVELOPMENT PROJECT AREA NO. 2 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, the City Council of the City of La Quinta ("City Council") approved and adopted the Redevelopment Plan ("Redevelopment Plan") for Redevelopment Project Area No. 2 ("Project Area"), 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, the Agency has prepared a proposed (i) Fifth Amendment to the Redevelopment Plan ("Fifth Amendment") to add approximately 12.42 acres to the Redevelopment Project Area No. 2 ("Project Area"); and (ii) Amended and Restated Redevelopment Plan for Project Area No. 2 for purposes of implementing the Fifth Amendment ("Amended and Restated Plan"); and WHEREAS, the Agency has prepared a Report to the City Council ("Report") on the proposed Amended and Restated Plan that includes all information required by Sections 33352 and 33457.1 of the CRL. Such Report and Amended and Restated Plan were presented to the City Council and copies of the Amended and Restated Plan and the Report are on file with the Agency Secretary and were made available for public inspection prior to the Joint Public Hearing of the Agency and the City Council on the Fifth Amendment; and WHEREAS, the City Manager's Department -Development Services Division has determined that the Fifth Amendment is. Categorically Exempt from further environmental review pursuant to the provisions of Section 15320 (Class 20) of the California Environmental Quality Act (CEQA); and WHEREAS, a Joint Public Hearing regarding the Fifth Amendment was duly noticed and held on the 18`h day of January, 2011, by the Agency and City Council pursuant to law, and the Agency and City Council received testimony concerning ....:J 049 -1- Resolution No. RA 2011- Fifth Amendment to the Redevelopment Plan for Redevelopment Project Area No. 2 Adopted: January 18, 2011 Page 2 the Fifth Amendment. The Agency evaluated the Report and all evidence and testimony for and against the adoption of the Fifth Amendment. NOW, THEREFORE, THE LA QUINTA REDEVELOPMENT AGENCY DOES HEREBY RESOLVE, ORDER, AND DETERMINE AS FOLLOWS: Section 1. The Fifth Amendment, a copy of which has been presented to the Redevelopment Agency and is now on file with the Agency Secretary, is hereby approved. Section 2. The Agency hereby recommends approval and adoption by the City Council of the Fifth Amendment and hereby recommends that the City Council amend by ordinance the Redevelopment Plan .for the La Quinta Redevelopment Project Area No. 2 in accordance with the Fifth Amendment. Section 3. The Agency Secretary shall certify as to the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED at a regular meeting of the La Quinta Redevelopment Agency held this 18th day of January, 2011, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: TERRY HENDERSON, Chair La Quinta Redevelopment Agency ATTEST: VERONICA MONTECINO, Agency Secretary La Quinta Redevelopment Agency 050 Resolution No. RA 2011- Fifth Amendment to the Redevelopment Plan for Redevelopment Project Area No. 2 Adopted: January 18, 2011 Page 3 APROVED AS TO FORM: M. KATHERINE JENSON, Agency Counsel La Quinta Redevelopment Agency ATTACHMENT 1 LA OUINTA REDEVELOPMENT AGENCY 78-495 CALLE TAMPICO, LA QUINTA, CA 92253 AMENDED AND RESTATED REDEVELOPMENT PLAN La Qulnta Redevelopment Project Area No. 2 2011 DRAFT ROSENOW SPEVACEK GROUP INC. - (J,_ 0152 Section I. (100) Introduction.................................................................................................. 1 SECTION Il. (200) GENERAL DEFINITIONS.......................................................................... 1 SECTION 111. (300) PROJECT AREA BOUNDARIES.............................................................. 2 SECTION IV. (400) REDEVELOPMENT PLAN OBJECTIVES ................................................ 2 SECTION V. (600) REDEVELOPMENT ACTIONS.................................................................. 3 A. (501) General................................................................................................................. 3 B. (502) Property Acquisition.............................................................................................. 4 1. (503) Acquisition of Real Property............................................................................ 4 2. (504) Acquisition of Personal Property ...................................................................... 4 1. (506) Owner and Tenant Participation...................................................................... 4 2. (507) Participation Agreements................................................................................ 4 (508) Certificates of Conformance....................................................................................... 5 E. (509) Cooperation with Public Bodies............................................................................. 5 F. (510) Property Management........................................................................................... 5 G. (511) Payments to Taxing Agencies to Alleviate Financial Burden ................................. 5 H. (512) Relocation of Persons Displaced by a Redevelopment Project ............................. 6 1. (513) Relocation Program......................................................................................... 6 2. (514) Relocation Benefits and Assistance................................................................ 7 I. (515) Demolition, Clearance, Public Improvements, and Site Preparation ...................... 7 J. (519) Rehabilitation and Moving of Structures by the Agency ......................................... 7 K. (522) Property Disposition and Development................................................................. 8 L. 528 Provision for Low and Moderate Income Housing ...................10 SECTION V1. (600) USES PERMITTED IN PROJECT AREA NO. 2......................................12 A. (601) Map and Uses Permitted......................................................................................12 B. (602) Major Land Uses..................................................................................................12 C. (603) Public Uses..........................................................................................................12 D. (606) Conforming Properties.........................................................................................13 E. (607) Nonconforming Uses............................................................................................13 F. (608) Interim Uses.........................................................................................................13 G. (609) General Controls and Limitations.........................................................................14 I. (622) Building Permits...................................................................................................16 SECTION VII. (700) METHODS FOR FINANCING THE PROJECT.........................................16 A. (701) General Description of the Proposed Financing Methods.....................................16 B. (702) Tax Increments....................................................................................................17 C. (703) Agency Bonds......................................................................................................18 D. (704) Other Loans and Grants.......................................................................................18 E. (705) Rehabilitation Loans. Grants, and Rebates..........................................................19 SECTION Vill. (800) ACTIONS BY THE CITY........................................................................19 SECTION IX. (900) ADMINISTRATION AND ENFORCEMENT.............................................19 SECTION X. (1000) DURATION OF THIS PLAN...................................................................20 SECTION XI. (1100) PROCEDURE FOR AMENDMENT.........................................................20 n..O �. 053 EXHIBITS EXHIBIT A REDEVELOPMENT PLAN MAP EXHIBIT B PROJECT AREA BOUNDARIES EXHIBIT C PROPOSED REDEVELOPMENT PROJECTS ROSENOW SPEVACEK GROUP INC. ro"�_� 054 SECTION I. (100) INTRODUCTION This is the Amended and Restated Redevelopment Plan for the La Quinta Redevelopment Project Area No. 2 located in the City of La Quinta, County of Riverside, State of California. This Plan consists of the text (sections 100 through 1100), the Redevelopment Plan Map (Exhibit A), the legal descriptions of the Project Area No. 2 Boundaries (Exhibit B) and a listing of the proposed public agency redevelopment projects (Exhibit C). This Amended and Restated Redevelopment Plan has been prepared by the La Quinta Redevelopment Agency pursuant to the Community Redevelopment Law of the State of California (Health and Safety Code Section 33000, et. seq.), the California Constitution and all applicable laws and ordinances. It provides the Agency with powers, duties and obligations to implement and further the program generally formulated for the redevelopment, rehabilitation and revitalization of Project Area No. 2. This Plan does not present a specific plan for the redevelopment, rehabilitation and revitalization of any area within Project Area No. 2. Instead, it establishes a process and framework for implementation. This Plan is based upon the PFelimisaFy Wan SECTION 11. (200) GENERAL DEFINITIONS The following definitions will be used generally in the context of this Amended and Restated Redevelopment Plan unless otherwise specified herein: /_- B. "Agency" means the La Quinta Redevelopment Agency. C. "Agency Board" means the governing body of the La Quinta Redevelopment Agency. D. "City" means the City of La Quinta, California. E. "City Council' means the City Council of the City of La Quinta, California. F. "County' means the County of Riverside, California. G. "Disposition and Development Agreement' means the contractual agreement between the owner participant and/or developer that sets forth terms and conditions for redevelopment. H. "Map" means the Redevelopment Plan Map, attached hereto as Exhibit A. �...�_ 055 J. "Person" means an individual(s), or any public or private entities. K. "Plan" means the Amended and Restated Redevelopment Plan for the La Quinta Redevelopment Project Area No. 2. L. 'Planning Commission" means the Planning Commission of the City of La Quinta, California. M. 'Project Area No. 2" means the territory this Plan applies to as shown on Exhibit A, which includes both the Original and Added Areas. N. 'Redevelopment Law" means the Community Redevelopment Law of the State of California (California Health and Safety Code, Sections 33000 et. seq.) as it now exists or is hereafter amended. O. "State" means the State of California. SECTION Ill. (300) PROJECT AREA NO. 2 BOUNDARIES The boundaries of Project Area No. 2 are illustrated on the Map attached hereto and incorporated herein as Exhibit A. Project Area No. 2 consists of the Original Area and the Added Area. The legal descriptions of the boundaries of the PFejeGtAFea is Original and Added Areas are as described in Exhibit B, attached hereto and incorporated herein. SECTION IV. (400) REDEVELOPMENT PLAN OBJECTIVES Implementation of this Plan is intended to achieve the following objectives: A. To remedy, remove, and prevent physical blight and economic obsolescence in Project Area No. 2 through implementation of the Plan. B. To expand the commercial base of the community. C. To encourage the cooperation and participation of residents, business, business persons, public agencies and community organizations in the redevelopment/revitalization of Project Area No. 2. D. To upgrade the general aesthetics of the commercial enterprises to improve their economic viability. E. To provide for the expansion, renovation and relocation of businesses within Project Area No. 2 to enhance their economic viability. To improve and/or provide electric, gas, telephone, water, and wastewater facilities to both developed and subdivided undeveloped properties within Project Area No. 2. F. To recycle and/or develop underutilized parcels to accommodate higher and better economic uses, improving the financial viability of the City. G. To address inadequate street improvements and roads that vary in width and degree of improvement as they cross Project Area No. 2. 2 ao...J. 056 H. To alleviate inadequate drainage improvements that constrain the development of various parcels in Project Area No. 2, the cost of which cannot be borne by private enterprise acting alone. I. To address parcels of property that are inadequately sized for proper usefulness and development and which are held in divided and widely scattered ownerships. J. To remedy depreciating property values and impaired investments. K. To provide opportunities and mechanisms to increase sales tax, business license tax and other revenues to the City. SECTION V. (600) REDEVELOPMENT ACTIONS A. (501) General The Agency proposes to eliminate and prevent the spread of blighting influences, and to strengthen the economic base of Project Area No. 2, and the community through: 1. The installation, construction, reconstruction, redesign, or reuse of streets, utilities, curbs, gutters, sidewalks, traffic control devices, flood control facilities and other public improvements. 2. The rehabilitation, remodeling, demolition or removal of buildings, structures and improvements. 3. The rehabilitation, development or construction of affordable housing in compliance with State law. 4. Providing the opportunity for participation by owners and tenants presently located in Project Area No. 2 and the extension of preferences to occupants desiring to remain or relocate within the redeveloped Project Area. 5. Providing relocation assistance to displaced residential and nonresidential occupants. 6. The development or redevelopment of land by private enterprise or public agencies for purposes and uses consistent with the objectives of this Plan. 7. Managing of any property acquired by the Agency. 8. Assisting in providing financing for the construction of residential, commercial and industrial buildings to increase the residential, commercial and industrial base of the City and surrounding area, and the number of temporary and permanent jobs in the City and surrounding area. 9. To accomplish these actions and to implement this Plan, the Agency is authorized to use all the powers provided in this Plan and all powers now or hereafter permitted by law. { 3 ,�...u. 057 B. (502) Property Acquisition 1. (503) Acquisition of Real Property The Agency may acquire real property by any means authorized by law, including by gift, grant, exchange, purchase, cooperative negotiations, lease or any other means authorized by law The Agency may acquire structures without acquiring the land upon which those structures are located. The Agency may acquire any interest in real property. The Agency shall not acquire property to be retained by an owner pursuant to a participation agreement if the owner fully performs under the agreement. The Agency shall not acquire real property on which an existing building is to be continued on its present site and in its present form and use without the consent of the owner, unless, (1) such building requires structural alterations, improvement, modernization, or rehabilitation, or (2) the site or lot on which the building is situated requires modification is size, shape or use, or (3) it is necessary to impose upon such property any of the standards, restrictions and controls of this Plan and the owner fails or refuses to participate in the Plan by executing a participation agreement. (504) Acquisition of Personal Property Where necessary in the execution of this Plan, the Agency is authorized to acquire personal property in Project Area No. 2 by any lawful means. C. (606) Participation by Owners and Tenants (506) Owner and Tenant Participation The Agency shall promulgate rules for owner and tenant participation which may be amended from time to time. The Agency shall consider reasonable preference to persons who are owners or tenants in Project Area No. 2 to continue in or re-enter the redeveloped area if they otherwise meet the requirements prescribed by this Plan and the Agency's rules governing owner participation and re-entry; such rules allow for "Owner Participation Agreements' with the Agency. The Agency desires participation in redevelopment by as many owners and business tenants as possible. However, participation opportunities shall necessarily be subject to and limited by such factors as the expansion of public facilities; elimination and changing of land uses; realignment of streets; the ability of the Agency and/or owners to finance acquisition and development in accordance with this Plan; and any reduction in the total number of individual parcels in Project Area No. 2. (507) Participation Agreements Under a participation agreement the participant shall agree to rehabilitate, develop, or use the property in conformance with the Plan and be subject to the provisions hereof. In the agreement, participants who retain real property shall be required to join in the recordation of 058 such documents as are necessary to make the provisions of this Plan applicable to their properties. In the event a participant breaches the terms of a participation agreement, the Agency shall declare the agreement terminated and may acquire the real property or any interest therein. Where the Agency determines that a proposal for participation is not feasible, is not in the best interests of the Agency or City, or that redevelopment can best be accomplished without affording an owner or tenant an opportunity to execute a participation agreement, the Agency shall not be required to execute such an agreement with that owner or tenant. (508) Certificates of Conformance The Agency is authorized to make determinations of those properties which conform to this Plan, If such a determination is made by the Agency, the Agency may issue a Certificate of Conformance to qualifying properties and such property will not be subject to acquisition by eminent domain under this Plan so long as the property continues to conform to this Plan and to such further terms and conditions as the Agency may require, by conditioning the issuance of a Certificate of Conformance as necessary or appropriate to carry out this Plan. E. (509) Cooperation with Public Bodies Certain public bodies are authorized by State law to aid and cooperate with or without consideration, in the planning and implementation activities authorized by this Plan. The Agency shall seek the aid and cooperation of such public bodies and shall attempt to coordinate Plan implementation activities with the activities of such public bodies in order to accomplish the purposes of redevelopment and the highest public good. The Agency, by law, is not authorized to acquire real property owned by public bodies without consent of such public bodies. The Agency, however, shall seek the cooperation of all public bodies which own or intend to acquire property in Project Area No. 2. Any public body which owns or leases property in Project Area No. 2 will be afforded all the privileges of owner and tenant participation if such public body is willing to enter into a participation agreement with the Agency. All plans for development of property in Project Area No. 2 by a public body shall be subject to Agency approval. The Agency may impose on all public bodies the planning and design controls contained in and authorized by this Plan ensure that present uses and any future development by public bodies will conform to the requirements of this Plan. The Agency is authorized to financially (and otherwise) assist to public entity in the cost of public land, buildings, facilities, structures or other improvements (within or outside Project Area No. 2) which land, buildings, facilities, structures, or other improvements are of benefit to the Project. F. (510) Property Management During such time as property if any, in Project Area No. 2 is owned by the Agency, such property shall be under the management and control of the Agency. Such property may be rented or leased by the Agency pending its final disposition for redevelopment. G. (511) Payments to Taxing Agencies to Alleviate Financial Burden As provided for in Health and Safety Code Section 33401, the Agency may pay an amount of money in lieu of taxes in any year during which it owns property in Project Area No. 2. Such payment shall be made directly to the City, County or special district, including, but not limited „- J_ 059 to, a school district, or other public corporation for whose benefit a tax would have been levied upon such property had it not been exempt. A proportionate share of any amount of money paid by the Agency to any city and county pursuant to this subdivision shall be disbursed by the city and county to any school district with territory located within a redevelopment project area in the city and county. 'Proportionate share", as used in this section, means the ratio of the school district tax rate, which is included in the total tax rate of the city and county. The Agency may also pay to any taxing agency with territory located within a project area other than the community which has adopted the project, any amounts of money which the Agency has found are necessary and appropriate to alleviate any financial burden or detriment caused to any taxing agency by a redevelopment project. The payments to a taxing agency in any single year shall not exceed the amount of property tax revenues which would have been received by that taxing agency if all the property tax revenues from Project Area No. 2 had been allocated to all the affected taxing agencies without regard to the division of taxes required by Section 33670, except that a greater payment may be established by agreement between the Agency and one or more taxing agencies, except a school district, if the other taxing agencies agree to defer payments of one or more years in order to accomplish the purposes of the project at an earlier time than would otherwise be the case. The amount of any greater payments shall not exceed the amount of payment deferred. The payments shall be approved by a resolution, adopted by the Agency, which shall contain findings, supported by substantial evidence, that the redevelopment project will cause or has caused a financial burden or detriment to the taxing agency and that the payments are necessary to alleviate the financial burden or detriment. The requirement that the Agency may make payments to a taxing entity only to alleviate a financial burden or detriment, as defined in Section 33012 of the Redevelopment Law, and only after approval by a resolution which contains specified findings, shall apply only to payments made by the Agency pursuant to an agreement between the Agency and a taxing entity which is executed by the Agency on or after the effective date of amendments to Section 33401 of the Redevelopment Law enacted by the Statutes of 1984. H. (512) Relocation of Persons Displaced by a Redevelopment Project (513) Relocation Program In accordance with the provisions of the California Relocation Assistance Act (Government Code Section 7260 et. seq.) the guidelines adopted and promulgated by the California Department of Housing and Community Development (the 'Relocation Guidelines") and the Relocations Rules, procedures and guidelines adopted by the Agency, the Agency shall provide relocation benefits and assistance to all persons (including families, business concerns and others) displaced by Agency acquisition of property in Project Area No. 2. Such relocation assistance shall be provided in the manner required by the Relocation Guidelines. In order to carry out a redevelopment project with a minimum of hardship, the Agency will assist displaced households in finding decent, safe and sanitary housing within their financial means and otherwise suitable to their needs. The Agency shall make a reasonable effort to relocate displaced individuals, families, and commercial and industrial establishments within Project Area No. 2. The Agency is also authorized to provide relocation for displaced persons outside Project Area No. 2. 060 2. (514) Relocation Benefits and Assistance The Agency shall provide all relocation benefits required by law and in conformance with the Relocation Guidelines, Relocation Assistance Act, and the Redevelopment Law. I. (515) Demolition, Clearance, Public Improvements, and Site Preparation 1. (516) Demolition and Clearance The Agency is authorized, for property acquired by the Agency or with the approval of the owner thereof, to demolish, clear or move buildings, structures, and other improvements from any real property in Project Area No. 2 as necessary to carry out the purposes of this Plan. 2. (517) Public Improvements To the extent permitted by law, the Agency is authorized to install and construct or to cause to be installed and constructed the public improvements and public utilities (within or outside Project Area No. 2) necessary to carry out the purposes of this Plan. Such public improvements include, but are not limited to, over or underpasses, bridges, streets, curbs, gutters, sidewalks, street lights, sewers, storm drains, traffic signals, electrical distribution systems, natural gas distribution systems, cable TV systems, water distribution systems, parks, plazas, playgrounds, motor vehicle parking facilities, landscaped areas, schools, civic, cultural and recreational facilities. A list of proposed public agency redevelopment projects is set forth in Exhibit C. The Agency, with the prior consent of the City Council, may pay all or part of the value of the land for and the cost of the installation and construction of any building, facility, or other improvements which is publicly owned either within or outside Project Area No. 2 upon a determination by resolution of the Agency Board and the City Council: (1) that such buildings, facilities, structures and other improvements are of benefit to Project Area No. 2 or the immediate neighborhood in which Project Area No. 2 is located; (2) that no other reasonable means of financing such buildings, facilities, structures or other improvements are available to the City. When the value of such land or the cost of the installation and construction of such building, facility or other improvement, or both, has been, or will be, paid or provided for initially by the community or other public corporation, the Agency may enter into a contract with the City or other public corporation under which it agrees to reimburse the City or other public corporation for all or part of the value of such land or all or part of the cost of such building, facility or other improvements, or both, by periodic payments over a period of years. Any obligation of the Agency under such contract shall constitute an indebtedness of the Agency for the purposes of carrying out this Plan. 3. (518) Preparation of Building Sites The Agency may develop as a building site any real property owned or acquired by it. In connection with such development it may cause, provide, undertake or make provisions with other agencies for the installation, or construction of parking facilities, streets, utilities, parks, playgrounds and other public improvements necessary for carrying out the Plan in Project Area No. 2. J. (519) Rehabilitation and Moving of Structures by the Agency 1. (520) Rehabilitation and Conservation The Agency is authorized to rehabilitate and conserve, or to cause to be rehabilitated and conserved, any building or structure in Project Area No. 2 owned by the Agency. The Agency is also authorized to advise, encourage, and assist (through a loan program or otherwise) in the rehabilitation and conservation of property in Project Area No. 2 not owned by the Agency. The Agency is also authorized to acquire, restore, rehabilitate, move and conserve buildings of historic or architectural significance. It shall be the purpose of this Plan to allow for the retention of as many existing businesses as practicable and to add to the economic life of these businesses by a program of voluntary participation in their conservation and rehabilitation. The Agency is authorized to conduct a program of assistance and enforcement to encourage owners of property within Project Area No. 2 to upgrade and maintain their property consistent with this Plan and such standards as may be developed for Project Area No. 2. The extent of rehabilitation in Project Area No. 2 shall be subject to the following limitations: a. The rehabilitation of the structure must be compatible with land uses as provided for in this Plan. b. Rehabilitation and conservation activities on a structure must be carried out in an expeditious manner and in conformance with the requirements of this Plan and such property rehabilitation standards as may be adopted by the Agency and the City. c. The expansion of public improvements, facilities and utilities. d. The assembly and development of properties in accordance with this Plan The Agency may adopt property rehabilitation standards for the rehabilitation of properties in Project Area No. 2. The Agency shall not assist in the rehabilitation or conservation of properties which, in its opinion, are not economically and/or structurally feasible. 2. (521) Moving of Structures As necessary in carrying out this Plan, the Agency is authorized to move or to cause to be moved any standard structure or building which can be rehabilitated to a location within or outside Project Area No. 2 owned by the Agency. K. (522) Property Disposition and Development 1. (523) Real Property Disposition and Development a. (524) General For the purposes of this Plan, the Agency is authorized to sell, lease, exchange, subdivide, transfer, assign, pledge, encumber by mortgage or deed of trust, or otherwise dispose of any interest in real property. To the extent permitted by law, the Agency is authorized to dispose of real property by negotiated lease or sale without public bidding. Before any interest in real property of the Agency acquired in whole or in part, directly or indirectly with tax increment moneys is sold, leased, or otherwise disposed of for development pursuant to this Plan, such sale, lease or disposition shall be first approved by the City Council and Agency Board after public hearing. 062 Except as permitted by law, no real or personal property owned by the Agency, or any interest therein, shall be sold or leased to a private person or private entity for an amount less than its fair market value, unless the Agency determines that such lesser consideration is necessary to effectuate the purposes of the Plan. The real property acquired by the Agency in Project Area No. 2, except property conveyed to it by the City, shall be sold or leased to public or private persons or entities for redevelopment and use of the property in conformance with this Plan. Real property may be conveyed by the Agency to the City and, where beneficial to Project Area No. 2, to any other public body without charge or for amount less than fair market value. All purchasers or lessees of property shall be obligated to use the property for the purposes designated in this Plan, to begin and complete redevelopment of such property within a period of time which the Agency fixes as reasonable, and to comply with other conditions which the Agency deems necessary to carry out the purposes of this Plan. During the period of development in Project Area No. 2, the Agency shall insure that all provisions of this Plan and other documents formulated pursuant to this Plan are being observed, and that development of Project Area No. 2 is proceeding in accordance with applicable development documents and time schedules. All development, whether public or private, must conform to this Plan and all applicable federal, state, and local laws, including without limitation the City's planning and zoning ordinances, building, environmental and other land use development standards; and must receive the approval of all other appropriate public agencies. b. (525) Purchase and Development Documents To provide adequate safeguards to ensure that the provisions of this Plan will be carried out and to prevent the recurrence of blight, all real property sold, leased, or conveyed by the Agency as well as all property subject to participation agreements, shall be made subject to the provisions of this Plan by leases, deeds, contracts, agreements, declarations of restrictions, provisions of the planning and zoning ordinances of the City, conditional use permits, or other means. Where appropriate, as determined by the Agency, such documents or portions thereof shall be recorded in the office of the Recorder of the County. Leases, deeds, contracts, agreements, and declarations of restrictions of the Agency may contain restrictions, covenants, covenants running with the land, rights of reverter, conditions subsequent, equitable servitudes, or any other provisions necessary to carry out this Plan. The Agency shall reserve such powers and controls in Disposition and Development agreements as may be necessary to prevent transfer, retention, or use of property for speculative purposes and to insure that redevelopment is carried out pursuant to this Plan. All property in Project Area No. 2 is hereby subject to the restriction that there shall be no discrimination or segregation based upon race, color, creed, religion, national origin, ancestry, sex, or marital status in the sale, lease, sublease, transfer, use occupancy, tenure or enjoyment of property in Project Area No. 2. All property sold, leased, conveyed, or subject to disposition and development agreements shall be expressly subject by appropriate documents to the restriction that all deeds, leases, or contracts for the sale, lease, sublease or other transfer of land in Project Area No. 2 shall contain such nondiscrimination and nonsegregation clauses as are required by law. 9 a..•J 063 c. (526) Development of Publicly Owned Improvements To the extent now or hereafter permitted by law, the Agency, with the consent of the City Council, is authorized to pay for, develop, or construct any building, facility, structure, or other improvement either within or outside Project Area No. 2 for itself or for any public body or entity to the extent that such improvement would be of benefit to Project Area No. 2. The Agency, is authorized to financially (and otherwise) assist any public entity in the cost of public land, buildings, facilities, structures or other improvements (within or outside Project Area No. 2) to the extent permitted by law. (527) Personal Property Disposition For the purposes of this Plan, the Agency is authorized to sell, lease, exchange, transfer, assign, pledge, encumber, or otherwise dispose of personal property which is acquired by the Agency. L. (528) Provision for Low and Moderate Income Housing 1. (529) Definition of Terms The terms "affordable rent," 'replacement dwelling unit," "persons and families of low or moderate income" and "very low income households' as used herein shall have the meanings as defined by the Redevelopment Law and other State and local laws and regulations pertaining thereto. (530) Authority Generally The Agency may, inside or outside Project Area No. 2, acquire land, donate land, improve sites, or construct or rehabilitate structures in order to provide housing for persons and families of low or moderate income. 3. (531) Replacement Housing Whenever dwelling units housing persons and families of low or moderate income, as defined by the Redevelopment Law, are destroyed or removed from the low and moderate income housing market as part of a redevelopment.project, the Agency shall, within four years of such destruction or removal, rehabilitate, develop or construct, or cause to be rehabilitated, developed or constructed, for rental or sale to persons and families of low or moderate income an equal number of replacement dwelling units at affordable housing costs within the City in accordance with all of the provisions of Section 33413 and 33413.5 of the Redevelopment Law, and as otherwise required by law. 4. (532) New or Rehabilitated Dwelling Units Developed Within Project Area No. 2 Pursuant to Section 33413 of the Redevelopment Law at least thirty percent (30%) of all new or rehabilitated dwelling units developed within Project Area No. 2 by the Agency shall be available at affordable housing costs for persons and families of low and moderate income; of such thirty percent (30%), not less than fifty percent (50%) thereof shall be available to and occupied by very low income households. At least fifteen percent (15%) off all new or rehabilitated units developed within Project Area No. 2 by public or private entities or persons other than the Agency shall be available at affordable housing costs for persons and families of low and moderate income; and of such fifteen percent (15%), not less than forty percent (40%) thereof • 10 ""'vim 064 shall be available for very low income households. The percentage requirements set forth in this Section shall apply independently of the requirements of Section 531 and in the aggregate to the supply of housing to be made available pursuant to this Section and not to each individual case of rehabilitation, development or construction of dwelling units. The Agency shall require, by contract or other appropriate means, that whenever any low and moderate income housing units are developed within Project Area No. 2, such units shall be made available on a priority basis for rent or purchase, whichever the case may be, to persons and families of low and moderate income displaced by a redevelopment project; provided, however, that failure to give such priority shall not affect the validity of title to the real property upon which such housing units have been developed. 5. (533) Duration of Dwelling Unit Availability The Agency shall require that the aggregate number of dwelling units rehabilitated, developed or constructed pursuant to Sections 531 and 532 of this Plan shall remain for persons and families of low and moderate income and very low income households, respectively, for not less than the period set forth in Section 609 of this Plan in relation to residential uses. 6. (534) Relocation Housing If insufficient suitable housing units are available in the City for use by persons and families of low and moderate income displaced by a redevelopment project, the Agency may, to the extent Of that deficiency, direct or cause the development, rehabilitation or construction of housing units within the City, both inside and outside Project Area No. 2. (535) Increased and Improved Supply Pursuant to Section 33334.2 of the Redevelopment Law, not less than 20 percent of all taxes which are allocated to the Agency pursuant to subdivision (b) of Section 33670 of the Redevelopment Law and Section 702(2) of this Plan shall be used by the Agency for the purposes of increasing and improving the City's supply of low and moderate income housing available at affordable housing cost, as defined by Section 50052.5 of the Health and Safety Code, to persons and families of low or moderate income, as defined in Section 50093 of the Health & Safety Code, and very low income households, as defined in Section 50105 of the Health & Safety Code, unless one or more of the following findings are made annually by resolution: (1) that no need exists in the City to improve or increase the supply of low and moderate income housing in a manner which would benefit Project Area No. 2 and that this finding is consistent with the housing element of the City's General Plan; or (2) that some stated percentage less than 20 percent of the taxes which are allocated to the Agency pursuant to Section 702(3) of this Plan is sufficient to meet such housing need of the community and that this finding is consistent with the housing element of the City's General Plan; or (3) that a substantial effort to meet low and moderate income housing needs in the City is being made and that this effort, including the obligation of funds currently available for the benefit of the City from the state, local, and federal sources for low and moderate income housing alone or in combination with the taxes allocated under Section 33334.2 of the Redevelopment Law, is equivalent in impact to the funds otherwise required to be set aside pursuant to said Section. In carrying out the purposes of Section 33334.2 of the Redevelopment Law, the Agency may exercise any or all of its powers including, but not limited to, the following: 1. Acquire land or building sites; .' «...G. 065 2. Improve land or building sites with on -site or off -site improvements; 3. Donate land to private or public persons or entities; 4. Construct buildings or structures; 5. Acquire buildings or structures; 6. Rehabilitate buildings or structures; 7. Provide subsidies to or for the benefit of persons or families of very low, low or moderate income; and 8. Develop plans, pay principal and interest on bonds, loans, advances, or other indebtedness or pay financing or carrying charges. The Agency may use these funds to meet, in whole or in part, the replacement housing provisions in Section 531 above. These funds may be used inside or outside Project Area No. 2 provided, however, that funds may be used outside Project Area No. 2 only if findings of benefit to Project Area No. 2 are made as required by Section 33334.2 of the Redevelopment Law. The funds for this purpose shall be held in a separate low and Moderate Income Housing Fund until used. Any interest earned by such Low and Moderate Income Housing Fund shall accrue to the Fund. SECTION VI. (600) USES PERMITTED IN PROJECT AREA NO. 2 A. (601) Map and Uses Permitted The Map attached hereto as Exhibit A and incorporated herein illustrates the location of Project Area No. 2 boundaries, the immediately adjacent streets, and existing public rights -of -way and public easements. The land uses permitted by this Plan shall be those permitted by the City of La Quinta General Plan. Land uses set forth in this Plan shall be those permitted by the City of La Quinta General Plan may be revised from time to time upon approval by Resolution of the governing board of the Agency, provided, however, that all such uses shall be consistent with the City of La Quinta General Plan. B. (602) Major Land Uses Major land uses in Project Area No. 2 include: Residential, Commercial, and Public. The areas shown on the map may be used for any of the various levels of uses specified for or permitted within such areas of the General Plans and local codes and ordinances. C. (603) Public Uses (604) Public Street Layout. Rights -of -Way and Easements The public Street system for Project Area No. 2 is illustrated on the Map. The street system in Project Area No. 2 shall be developed in accordance with the Circulation Element of the General Plan. Primary streets in Project Area No. 2 include Fred Waring Avenue, Miles Avenue, Highway 111, Westward Ho Drive, Avenue 48, Avenue 50, Washington Street Adams Street, 12 066 Dune Palms Road, and Jefferson Street. Project Area No. 2 also includes many local collector streets. Certain streets and rights -of -way may be widened, altered, abandoned, vacated, or closed by the City as necessary for proper development of Project Area No. 2. Additional public streets, alleys and easements may be created by the Agency and City in Project Area No. 2 as needed for proper development and circulation. The public rights -of -way shall be used for vehicular and/or pedestrian traffic as well as for public improvements, public and private utilities, and activities typically found in public rights -of -way. In addition, all necessary easements for public uses, public facilities, and public utilities may be retained or created. 2. (605) Other Public. Quasi -Public and Open Space Uses Both within and where appropriate outside of Project Area No. 2, the Agency is authorized to permit, establish, or enlarge public, quasi -public, institutional, or non profit uses, including schools, community center, auditorium and civic center facilities, criminal justice facilities, park and recreational facilities, parking facilities, transit facilities, libraries, hospitals, and educational, fraternal, philanthropic and charitable institutions or other similar associations or organizations. All such uses shall be deemed to conform to the provisions of this Plan provided that such uses conform with all other applicable laws and ordinances and that such uses are approved by the City. The Agency may impose such other reasonable restrictions as are necessary to protect development and uses in Project Area No. 2. D. (606) Conforming Properties The Agency may, at its sole and absolute discretion, determine that certain real properties within Project Area No. 2 meet the requirements of this Plan, and the owners of such properties may be permitted to remain as owners of conforming properties without a participation agreement with the Agency, provided such owners continue to operate, use, and maintain the real properties within the requirements of this Plan. A certificate of conformance to this effect may be used by the Agency and recorded. An owner of a conforming property may be required by the Agency to enter into a participation agreement with the Agency in the event that such owner desires to (1) construct any additional improvements or substantially alter or modify existing structures on any of the real property described above as conforming; or (2) acquire additional property within Project Area No. 2. E. (607) Nonconforming Uses The Agency is authorized but not required to permit an existing use to remain in an existing building in good condition if the use does not conform to the provisions of this Plan, provided that such use is generally compatible with existing and proposed developments and uses in Project Area No. 2. The Agency may authorize additions, alterations, repairs or other improvements in Project Area No. 2 for uses which do not conform to the provisions of this Plan where such improvements are within a portion of Project Area No. 2 where, and in the determination of the Agency, such improvements would be compatible with surrounding Project Area uses and development. F. (608) Interim Uses Pending the ultimate development of land by developers and participants, the Agency is authorized to use or permit the use of any land in Project Area No. 2 for interim uses not in 13 „.j_ C 6 7 conformity with the uses permitted in this Plan. Such interim use shall conform to all applicable City codes. G. (609) General Controls and Limitations All real property in Project Area No. 2 is hereby made subject to the controls and requirements of this Plan. No real property shall be developed, redeveloped, rehabilitated, or otherwise changed after the date of the adoption_ of the Plan except in conformance with the provisions of this Plan. The land use controls of this Plan shall apply for a period of forty (40) years for uses other than residential uses. For residential uses, the land use controls of this Plan shall apply for a period of twenty (20) years with respect to all of Project Area No. 2. The type, size, height, number and use of buildings within Project Area No. 2 will be controlled by applicable City planning and zoning ordinances consistent with the General Plan, and as provided in Section 601 of this Plan. 1. (610) New Construction All construction in Project Area No. 2 shall comply with all applicable State and local laws in effect from time to time. In addition to applicable codes, ordinances, or other requirements governing development in Project Area No. 2, additional specific performance and development standards may be adopted by the Agency to control and direct redevelopment activities in Project Area No. 2. 2. (611) Rehabilitation Any existing structures within Project Area No. 2 which the Agency shall approve for retention and rehabilitation shall be repaired, altered, reconstructed, or rehabilitated in such a manner that it will meet the following requirements: be safe and sound in all physical respects, be attractive in appearance and not detrimental to the surrounding uses. 3. (612) Number of Buildings and Dwelling Units The total number of buildings in Project Area No. 2 shall be regulated by the City General Plan. Project Area No. 2 currently includes approximately 5,935 dwelling units. 4. (613) Open Spaces and Landscaping The approximate amount of open space to be provided in Project Area No. 2 is the total of all areas so designated in the Land Use Element of the City of La Quinta General Plan, and those areas in the public rights -of -way or provided through site coverage limitations on new development as established by this Plan. Landscaping shall be developed in Project Area No. 2 to ensure optimum use of living plant material in conformance with City standards. 5. (614) Limitations on Type, Size and Height of Buildings Except as set forth in other sections of this Plan, the type, size, and height of buildings shall be as limited by the applicable federal, state and local statutes, ordinances and regulations. 6. (615) Sians All signs shall conform to City requirements. Design of all proposed new signs shall be submitted prior to installation to the Agency and/or City for review and approval pursuant to the procedures permitted by this Plan. New signs must contribute to a reduction in sign blight. 14 _ (68 (616) Utilities The Agency shall require that all utilities be placed underground whenever physically possible and economically feasible. 8. (617) Incompatible Uses Except as permitted by the City, no use or structure which is by reason of appearance, traffic, smoke, glare, noise, odor, or similar factors incompatible with the surrounding areas or structures shall be permitted in any part of Project Area No. 2. 9. (618) Nondiscrimination and Nonsegregation There shall be no discrimination or segregation based upon race, color, sex, marital status, religion, national origin, or ancestry permitted in the sale, lease, sublease, transfer use, occupancy, tenure, or enjoyment of property in Project Area No. 2. 10. (619) Subdivision of Parcels No parcels in Project Area No. 2, including any parcel retained by a participant, shall be consolidated, subdivided or re -subdivided without the approval of the appropriate City body, and, if necessary for purposes of this Plan, the Agency. 11. (620) Minor Variations The Agency is authorized to permit minor variations from the limits, restrictions and controls established by this Plan. In order to permit any such variation, the Agency must determine that: The application of certain provisions of the Plan would result in practical difficulties or unnecessary hardships inconsistent with the general purposes and intent of the Plan. There are exceptional circumstances or conditions applicable to the property or to the intended development of the property which do not apply generally to other properties having the same standards, restrictions, and controls. Permitting a variation will not be materially detrimental to the public welfare or injurious to property or improvements in the area. Permitting a variation will not be contrary to the objectives of the Plan. No such variation shall be granted which permits other than a minor departure from the provisions of this Plan. In permitting any such variation, the Agency shall impose such conditions as are necessary to protect the public health, safety, or welfare, and to assure compliance with the purposes of the Plan. Any such variation permitted by the Agency hereunder shall not supersede any other approval required under City codes and ordinances. H. (621) Design for Development Within the limits, restrictions, and controls established in the Plan, and subject to the provisions of Sections 601 and 609, herein, the Agency is authorized to establish heights of buildings, land coverage, setback requirements, design criteria, traffic circulation, traffic access, and other development and design controls necessary for proper development of both private and public areas within Project Area No. 2. � 15 r »'.� 069 No new improvement shall be constructed, and no existing improvement shall be substantially modified, altered, repaired or rehabilitated except in accordance with this Plan and any such controls and architectural, landscape and site plans submitted to and approved in writing by the Agency. Additionally, in the case of property which is the subject of a Disposition and Development or participation agreement with the Agency, such property shall be developed in accordance with the provisions of such agreement. One of the objectives of this Plan is to create an attractive and pleasant environment in Project Area No. 2. Therefore, such plans shall give consideration to good design, open space and other amenities to enhance the aesthetic quality of Project Area No. 2. The Agency shall not approve any plans that do not comply with this Plan. I. (622) Building Permits Any building permit that is issued for the construction of any new building or any addition, construction, moving, conversion or alteration to an existing building in Project Area No. 2 from the date of adoption of this Plan must be in conformance with the provisions of this Plan, any Design for Development adopted by the Agency, any restrictions or controls established by resolution of the Agency, and any applicable participation or other agreements. The Agency is authorized to establish permit procedures and approvals required for purposes of this Plan. A building permit shall be issued only after the applicant for same has been granted all approvals required by the City and the Agency at the time of application. SECTION VII. (700) METHODS FOR FINANCING THE PROJECT A. (701) General Description of the Proposed Financing Methods Upon adoption of this Plan by the City Council, the Agency is authorized to finance this Plan with assistance from local sources, the State of California and/or the Federal Government, property tax increments, interest income, Agency bonds, donations, loans from private financial institutions or any other legally available source. The Agency is also authorized to obtain advances, borrow funds, issue bonds, and create indebtedness in carrying out this Plan. The principal and interest on such indebtedness may be paid from tax increments or any other funds available to the Agency. Advances and loans for survey and planning and for the operating capital for administration of this Plan may be provided by the City until adequate tax increment or other funds are available to repay the advances and loans. The City or other public agency, as it is able, may also supply additional assistance through issuance of bonds, loans and grants and in -kind assistance. Any assistances shall be at terms established by an agreement between the Agency, City and/or other public agency. As available, gas tax funds from the State of California and the County of Riverside may be used for the street system. The Agency may issue bonds and expend their proceeds to carry out the Plan. The Agency is authorized to issue bonds if appropriate and feasible in an amount sufficient to finance all or any part of Plan implementation activities. The Agency shall pay the principal and interest on bonds of the Agency as it becomes due and payable. 1, 16 n 70 The Agency is authorized to obtain advances, borrow funds and create indebtedness in carrying out this Plan. The principal and interest on such advances, funds, and indebtedness may be paid from tax increments or any other funds available to the Agency. B. (702) Tax Increments All taxes levied upon taxable property within the Prejeet Ori final Area each year by or for the benefit of the State of California, County of Riverside, City of La Quinta, and district or other public corporation (hereinafter called "taxing agencies") after the effective date of the ordinance of the City approving this Plan, shall be divided as follows: That portion of the taxes which would be produced by the rate upon which the tax is levied each year by or for each of said taxing agencies upon the total sum of the assessed value of the taxable property in the Projesi Original Area as shown upon the assessment roll used in connection with the taxation of such property by such taxing agency, last equalized prior to the effective date of such ordinance, shall be allocated to and when collected shall be paid into the respective taxing agencies as taxes by or for said taxing agencies on all other property are paid (for the purpose of allocating taxes levied by or for any taxing agency or agencies which did not include the territory in the Project Original Area on the effective date of such ordinance but to which such territory has been annexed or otherwise included after such effective date, the assessment roll of the County of Riverside last equalized on the effective date of said ordinance shall be used in determining the assessed valuation of the taxable property in the Prejeot Original Area on said effective date); and That portion of said levied taxes each year in excess of such amount shall be allocated to and when collected shall be paid into a special fund of the Agency to pay the principal of and interest on bonds, loans, moneys advanced to, or indebtedness (whether funded, assumed, or otherwise) incurred by the Agency to finance or refinance in whole or in part, this Plan. Unless and until the total assessed valuation of the taxable property in the Prsjest Original Area exceeds the total assessed value of the taxable property in the Project Ori final Area as shown by the last equalized assessment roll referred to in paragraph (1) hereof, all of the taxes levied and collected upon the taxable property in the Prejest Original Area shall be paid to the respective agencies. When said bonds, loans, advances, and indebtedness, if any, and interest thereon, have been paid, all moneys thereafter received from taxes upon the taxable property in the Prejeet Original Area shall be paid into the funds of the respective taxing agencies as taxes on all other property are paid. That portion of tax revenues allocated to the Agency pursuant to paragraph (2) above which are attributable to increases in the rate of tax imposed for the benefit of any affected taxing agency which levy occurs after the tax year in which the ordinance adopting this Plan becomes effective shall be allocated to such affected taxing agency to the extent that the affected taxing agency has elected in the manner required by law to receive such allocation. The Agency is authorized to make pledges as to specific advances, loans and indebtedness as appropriate in carrying out the Plan. The portion of taxes allocated and paid to the Agency pursuant to subparagraph (2) above is irrevocably pledged to pay the principal of and interest on loans, monies advanced to, or indebtedness (whether funded, refunded, assumed, or otherwise) incurred by the Agency to finance or refinance, in whole or in part, the redevelopment program for Project Area No. 2. The number of dollars of taxes which may be divided and allocated to the Agency pursuant to Section 33670 of the Redevelopment Law from the Original Area shall not exceed $250 aiillien !fir 1 O 71 ,� $1.5 billion dollars, except by amendment of this Plan. There is no time limit on when the Agency may establish or incur loans advances or indebtedness. this Section 702 to Pay to indebtedness or other obligation C. (703) Agency Bonds The Agency is authorized to issue bonds from time to time, if it deems it appropriate to do so, in order to finance all or any part of Plan implementations activities. Neither the members of the Agency nor any persons executing the bonds are liable personally on the bonds by reason of their issuance. The bonds and other obligations of the Agency are not a debt of the City, or the State, nor are any of its political subdivisions liable for them, nor in any event shall the bonds or obligations be payable out of any funds or properties other than those of the Agency; and such bonds and other obligations shall so state on their face. The bonds do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction. The amount of bonded indebtedness, to be repaid in whole or in part from such allocation of taxes, which can be outstanding at one time shall not exceed $100 million adjusted annually in accordance with the Consumer Price Index (CPI), or an acceptable replacement index in the event the CPI ceases to be published, without an amendment of this Plan. Such limitation is exclusive of (1) any payments to the taxing agencies to alleviate financial burden made by the Agency pursuant to Section 33401 of the Redevelopment Law and Section 511 of this Plan and (2) any funds required by Section 33334.2 of the Redevelopment Law and Section 535 of this Plan to be deposited by the Agency in a Low and Moderate Income Housing Fund as a result of such payments to taxing agencies. Provided however, that the total amount of bonded indebtedness, to be repaid in whole or in part from allocation bonds which can be outstanding at one time shall not exceed $200 million. D. (704) Other Loans and Grants Any other loans, grants, guarantees or financial assistance from the Federal Government, the State of California, or any other public or private source will be utilized, if available, as appropriate in carrying out this Plan. In addition, the Agency may make loans as permitted by law to public or private entities for any of its redevelopment purposes. 072 ,$ E. (705) Rehabilitation Loans. Grants, and Rebates The Agency and the City may commit funds from any source to programs of residential and commercial rehabilitation for the purposes of loans, grants, or rebate payments for self -financed rehabilitation work. The rules and regulations for such programs shall be those which may already exist or may be developed in the future. The Agency and the City shall seek to acquire grant funds and direct loan allocations from State and Federal sources, as they may be available from time to time, for the carrying out of such programs. SECTION Vill. (800) ACTIONS BY THE CITY The City shall aid and cooperate with the Agency in carrying out this Plan and shall take all actions necessary to ensure the continued fulfillment of the purposes of this Plan and to prevent the reoccurrence of spread in the area of conditions causing blight. Actions by the City may include, but shall not be limited to, the following: trrstitutieR Initiation and completion of proceedings for opening, closing, vacating, widening, or changing the grades of streets, alleys, and other public rights -of- way, and for other necessary modifications of the streets, the street layout, and other public rights -of -way in Project Area No. 2. Such action by the City shall include the requirement of abandonment and relocation by the public utility companies of their operations in public rights -of -way as appropriate to carry out this Plan, provided that nothing in this Plan shall be considered to require the cost of such abandonment, removal, and relocation be borne by others than those legally required to bear such costs. 2. 'ns".- `Initiation and completion of proceedings necessary for changes and improvements to publicly -owned properties. 3. Performance of the above, and of all other functions and services relating to public health, safety, and physical development normally rendered in accordance with a schedule which will permit the redevelopment of Project Area No. 2 to be commenced and carried to completion without unnecessary delays. 4. Imposition whenever necessary of appropriate design controls within the limits of this Plan in Project Area No. 2 to ensure their proper development and use. 5. Provisions for administration/enforcement of this Plan by the City after development. 6. The undertaking and completion of any other proceedings necessary to carry out the Project. 7. The expenditure of any City funds in connection with redevelopment of Project Area No. 2 pursuant to the Plan. SECTION IX. (900) ADMINISTRATION AND ENFORCEMENT Upon adoption, the administration and enforcement of this Plan or other documents implementing this Plan shall be performed by the City or the Agency, as appropriate. The provisions of this Plan or other documents entered into pursuant to this Plan may also be enforced by court litigation by either the Agency or the City. Such remedies may include, but {� to "' 0 73 are not limited to, specific performance, damages, re-entry, injunctions, or any recorded provisions which are expressly for the benefit of owners of property in Project Area No. 2 may be enforced by such owners. SECTION X. (1000) DURATION OF THIS PLAN Except for the non-discrimination and non -segregation provisions which shall run in perpetuity, the provisions of this Plan shall be effective, and the provisions of other documents formulated pursuant to this Plan may be made effective, for 40 41 years from the effective date of adoption of this-Rlaa the original Redevelopment Plan by the City Council by Ordinance No. 139 (Mav the Added Area; provided, however, that the Agency may issue bonds and incur obligations pursuant to this Plan which extends beyond the termination date, and in such event, this Plan shall continue in effect for the purpose of repaying such bonds or other obligations, as determined by the City Council. SECTION XI. (1100) PROCEDURE FOR AMENDMENT This Plan may be amended by means of the procedure established in Sections 33450- 33458 of the Redevelopment Law or by any other procedure hereafter established by law. { 20 ,....J. 074 EXHIBIT A: LA QUINTA REDEVELOPMENT PROJECT AREA NO. 2 N ®?: \, V• •'^ .• • �,- /, 0 0.1250,25 0.5 0.75 1 •••••') 075 21 EXHIBIT B LEGAL DESCRIPTION LA QUINTA REDEVELOPMENT PROJECT AREA NO. 2 ORIGINAL AREA THE BOUNDARY OF THE REDEVELOPMENT PROJECT AREA 2 Is ILLUSTRATED ON THE MAP ATTACHED HERETO, THE LEGAL DESCRIPTION OF THE BOUNDARY OF SAID AREA IS DESCRIBED AS FOLLOWS: ALL THAT AREA IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, BEING PORTIONS OF SECTIONS 19,20,28,29,30,31 AND 32, TOWNSHIP 5 SOUTH, RANGE 7 EAST AND OF SECTION 25, TOWNSHIP 5 SOUTH, RANGE 6 EAST, SAN BERNARDINO BASE AND MERIDIAN DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEAST CORNER OF SAID SECTION 32, SAID POINT BEING AT THE INTERSECTION OF THE CENTERLINE OF JEFFERSON STREET AND THE CENTERLINE OF AVENUE 50 AS SHOWN ON PARCEL MAP NO. 20469, PARCEL MAP BOOK 140, PAGES 95 THROUGH 100 INCLUSIVE, RECORDS OF SAID COUNTY, SAID CORNER ALSO BEING THE NORTHEAST CORNER OF SECTION 5, TOWNSHIP 6 SOUTH, RANGE 7 EAST, SAN BERNAR- DINO BASE AND MERIDIAN AND THE POINT OF BEGINNING OF LA QUINTA REDEVELOPMENT PROJECT OF THE LA QUINTA REDEVELOPMENT AGENCY, SAID CITY OF LA QUINTA; 1. THENCE, ALONG THE SOUTH LINE OF SAID SECTION 32 AND SAID CENTERLINE OF AVENUE 50, N89 51'29'1 W, 2645.41 FEET; 2. THENCE, N89 51'OS"W, 2620.30 FEET TO THE SOUTHEAST CORNER OF SAID SECTION 31; 3. THENCE, ALONG THE SOUTH LINE OF SAID SECTION 31. AND CONTINUING ALONG SAID CENTERLINE OF AVENUE 50, N89 58'39"W, 2656.69 FEET TO THE SOUTH ONE -QUARTER CORNER OF SAID SECTION 31 AS SHOWN ON TRACT NO. 3448, MAP BOOK 58, PAGES 20 AND 21, RECORDS OF SAID COUNTY; 4. THENCE, CONTINUING ALONG SAID SOUTH LINE OF SECTION 31 AND SAID CENTERLINE OF AVENUE 50, S89 59'54"W, 25.00 FEET TO THE CENTERLINE OF WASHINGTON STREET; 5. THENCE, ALONG SAID CENTERLINE OF WASHINGTON STREET, N00 00'06"W, 1293.71 FEET TO THE BEGINNING OF A CURVE CONCAVE WESTERLY AND HAVING A RADIUS OF 2000.00 FEET; 6. THENCE, NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 13 28'00" AN ARC DISTANCE OF 470.08 FEET; 7. THENCE, N13 28'06'tW, 92.18 FEET TO THE BEGINNING OF A CURVE CONCAVE EASTERLY AND HAVING A RADIUS OF 1989.00 FEET; 8. THENCE, NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 18 40'00" ANARC DISTANCE OF 648.01 FEET; 9. THENCE, N05 11'54E, 109.08 FEET TO AN ANGLE POINT IN SAID CENTERLINE OF WASHINGTON STREET AS SHOWN ON TRACT NO. 3455, MAP BOOK 58, PAGES 30 AND 31, RECORDS OF SAID COUNTY; w') n 616 22 My •✓ - 10. THENCE, CONTINUING ALONG SAID CENTERLINE OF WASHINGTON STREET, N06 11'54"E, 715.99 FEET TO THE BEGINNING OF A CURVE CONCAVE WESTERLY AND HAVING A RADIUS OF 4500.00 FEET; 11. THENCE, NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 06 25'00" AN ARC DISTANCE OF 503.96 FEET TO A POINT ON A LINE PARJLLEL WITH AND 20.00 FEET WESTERLY, MEASURED AT RIGHT ANGLES, OF THE WEST LINE OF THE NORTHEAST ONE -QUARTER OF SAID SECTION 31 AS SHOWN ON ABOVE SAID PARCEL MAP NO. 20469; 12. THENCE, ALONG SAID PARALLEL LINE AND ALONG SAID CENTERLINE OF WASHINGTON STREET, N00 13'06"W, 1469.67 FEET TO A POINT ON THE NORTH LINE -OF SAID SECTION 31 AND THE CENTERLINE OF 48TH STREET AS SHOWN ON PARCEL MAP NO. 13975, PARCEL MAP BOOK 66, PAGES 26 AND 27, RECORDS OF SAID COUNTY; 13. THENCE, ALONG SAID NORTH LINE OF SECTION 31 AND SAID CENTERLINE OF 48TH STREET, S89 24'12"W, 2692.01 FEET TO THE NORTHWEST CORNER OF SAID SECTION 31' 14. THENCE, ALONG THE WEST LINE OF SAID SECTION 31, S00 51'09"E, 188.70 FEET TO THE SOUTHEAST CORNER OF ABOVE SAID SECTION 25, TOWNSHIP 5 SOUTH, RANGE 6 EAST AS SHOWN ON TRACT NO. 3249, MAP BOOK 56, PAGES 35 AND 36, RECORDS OF SAID COUNTY; 15. THENCE, ALONG THE SOUTH LINE OF SAID SECTION 25,N89 29'43'W, 2646.64 FEET TO THE SOUTH ONE -QUARTER CORNER OF SAID SECTION 25 AND A POINT ON THE WESTERLY BOUNDARY OF SAID CITY OF LA QUINTA; 16. THENCE, ALONG SAID WESTERLY BOUNDARY, N54 43'28"E, 4907.92 FEET TO THE SOUTHWEST CORNER OF THE EAST ONE-HALF OF THE NORTHWEST ONE -QUARTER OF ABOVE SAID SECTION 30, TOWNSHIP 5 SOUTH, RANGE 7. EAST AS SHOWN ON TRACT NO. 2117, MAP BOOK 40, PAGES 81, 82 AND 83, RECORDS OF SAID COUNTY; 17. THENCE, ALONG THE SOUTH LINE OF SAID NORTHWEST ONE -QUARTER OF SECTION 30, N89 30'45"E, 1333.82 FEET TO THE CENTER OF SAID SECTION 30 AND THE CENTERLINE OF ABOVE SAID WASHINGTON STREET; 18. THENCE, ALONG THE EAST LINE OF SAID NORTHWEST ONE -QUARTER OF SECTION 30 AND SAID CENTERLINE OF WASHINGTON STREET, N00 2115fJ, 2652.98 FEET TO THE NORTH ONE -QUARTER CORNER OF SAD SECTION 30 AND THE SOUTH ONE -QUARTER CORNER OF ABOVE SAID SECTION 19, TOWNSHIP 5 SOUTH, RANGE 7 EAST, AS SHOWN ON RECORD OF SURVEY, FILED IN BOOK 25, PAGE 89 OF RECORDS OF SURVEY, RECORDS OF SAID COUNTY; 19. THENCE, ALONG THE WEST LINE OF THE SOUTHWEST ONE -QUARTER OF SAID SECTION 19 AND ALONG THE CENTERLINE OF WASHINGTON STREET, N0019'30"W, 199.55 FEET TO A POINT ON THE CENTERLINE OF STATE HIGHWAY 111, SAID POINT BEING ON A CURVE CONCAVE SOUTHERLY AND HAVING A RADIUS OF 2500.00 FEET, A RADIAL OF SAID CURVE TO SAID POINT BEARS N34 10'57"E; , THENCE, WESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 26 47'06" AN ARC DISTANCE OF 1168.72 FEET; 21. THENCE, N82 36'09"W, 364.57 FEET TO A POINT ON THE WESTERLY BOUNDARY OF SAID CITY OF LA QUINTA; 22. THENCE, ALONG SAID WESTERLY BOUNDARY N26 11'00"E, 295.03 FEET TOP THE BEGINNING OF A CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 300.00 FEET; 23. THENCE, NORTHEASTEFL ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 62 4426" AN ARC DISTANCE OF 328.51 FEET TO THE SOUTHERLY LINE OF THE COACHELLA VALLEY STORMWATER CHANNEL; 24. THENCE, ALONG SAID SOUTHERLY LINE AND CONTINUING ALONG SAID WESTERLY BOUNDARY, N88 55'26"E, 261.56 FEET TO THE BEGINNING OF A CURVE CONCAVE SOUTHERLY AND HAVING A RADIUS OF 2000.00 FEET; 25. THENCE, EASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 23 00'42" AN ARC DISTANCE OF 803.26 FEET TO THE CENTERLINE OF ABOVE SAID WASHINGTON STREET AND A POINT ON THE BOUNDARY OF SAID CITY OF LA QUINTA AS DESCRIBED IN ANNEXATION NO. I TO SAID CITY; THE FOLLOWING COURSES 26 THROUGH 60 INCLUSIVE ARE ALONG SAID BOUNDARY OF THE CITY OF LA QUINTA AS DESCRIBED IN SAID ANNEXATION NO. I. 26. THENCE, ALONG SAID CENTERLINE OF WASHINGTON STREET, NOD 19'30"W, 22.50 FEET TO THE BEGINNING OF A CURVE CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 2000.00 FEET; 27. THENCE, NORTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 45 00'00" AN ARC DISTANCE OF 1570.80 FEET; 28. THENCE, N45 19'30"W, 366.56 FEET TO A POINT OF INTERSECTION WITH THE CENTERLINE OF MILES AVENUE; 29. THENCE, CONTINUING N45 19'30"W, 1780.98 FEET TO THE BEGINNING OF A CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 2000.00 FEET; 30. THENCE, NORTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 44 04'57" AN ARC DISTANCE OF 1538.77 FEET TO THE NORTH LINE OF SAID SECTION 19, SAID NORTH LINE ALSO BEING THE CENTERLINE OF FRED WARING DRIVE; 31. THENCE, ALONG SAID NORTH LINE AND SAID CENTERLINE, N89 40'49"E, 5347.98 FEET TO THE NORTHWEST CORNER OF ABOVE SAID SECTION 20; 32. THENCE, ALONG THE NORTH LINE OF SAID SECTION 20 AND SAID CENTERLINE, N89 40'49"E, 5306.32 FEET TO THE NORTHEAST CORNER OF SAID SECTION 20 AND THE CENTERLINE OF 3EFFERSON STREET; 33. THENCE, ALONG THE EAST LINE OF SAID SECTION 20 AND SMD CENTERLINE OF JEFFERSON STREET, S00 19'il"E, 2652.65 FEET TO THE EAST ONE -QUARTER CORNER OF SAID SECTION 20 AND THE CENTERLINE OF MILES AVENUE; 34. THENCE, ALONG THE SOUTH LINE OF THE NORTH ONE-HALF OF SAID SECTION 20 AND SAID CENTERLINE OF PILES AVENUE, S89 40'49W, 2654.00 FEET TO THE CENTER OF SAID SECTION 20 AND THE CENTERLINE OF DUNE PALMS ROAD; 35. THENCE, ALONG THE WEST LINE OF THE EAST ONE-HALF OF SAID SECTION 20 AND SAID CENTERLINE OF. DUNE PALMS ROAD, S00 19'II"E, 2644.00 FEET TO THE SOUTH ONE -QUARTER CORNER OF SAID SECTION 20 AND THE CENTERLINE OF 46TH AVENUE; 24 - .....0_ 078 36, THENCE, ALONG THE SOUTH LINE OF SAID SECTION 20 AND SAID CENTERLINE OF 46TH AVENUE, N89 40'49"E, 2654.00 FEET TO THE NORTHEAST COPNER OF ABOVE SAID SECTION 28 AND THE CENTERLINE OF JEFFERSON STREET; 37. THENCE, ALONG THE NORTH LINE OF SAID SECTION 28 AND THE CENTERLINE OF 46TH AVENUE, N89 40'49"E, 1315.52 FEET TO THE NORTHWEST ONE - QUARTER OF THE NORTHWEST ONE -QUARTER OF SAID SECTION 28; 38. THENCE, ALONG THE EAST LINE OF SAID NORTHWEST ONE -QUARTER OF THE NORTHWEST ONE —QUARTER OF SECTION 28, S00 13'45"W, 215.41 FEET TO THE NORTHERLY LINE OF ABOVE SAID COACHELLA VALLEY STORNWATER CHANNEL; 39. THENCE, ALONG SAID NORTHERLY LINE, S44 36'15"w, 530.60 FEET TO THE BEGINNING OF A CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 3000.00 FEET; 40. THENCE, SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 01 55'00" AN ARC DISTANCE OF 100.36 FEET; 41. THENCE, S00 13'45"W, 651.48 FEET TO A POINT ON THE SOUTHERLY LINE OF SAID COACHELLA VALLEY STOR)WATER CHANNEL, SAID POINT BEING ON A CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 3500.00 FEET, A RADIAL OF SAID CURVE TO SAID POINT BEARS S33 41'05"E; 42. THENCE, SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 01 51'27" AN ARC DISTANCE OF 113.47 FEET TO THE NORTHEASTERLY CORNER OF TRACT NO. 3505, MAP BOOK 57, PAGES 7 AND 8, RECORDS OF SAID COUNTY; 43. THENCE, ALONG THE EASTERLY LINE OF SAID TRACT NO. 3505, S33 41105sE, 120.00 FEET TO A POINT ON A CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 3620.00 FEET, A RADIAL OF SAID CURVE TO SAID POINT BEARS S33 41'05"E; 44. THENCE, NORTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 00 40'40" AN ARC DISTANCE OF 42.82 FEET; 45. THENCE, S34 21'45"E, 212.90 FEET TO THE MOST EASTERLY CORNER OF SAID TRACT NO. 3505; 46. THENCE, ALONG THE SOUTHERLY LINE OF SAID TRACT NO. 3505, S71 23'42"W, 171.16 FEET; 47. THENCE, S55 41"5"W, 140.85 FEET; 48. THENCE, S63 05'45"W, 278.73 FEET; 49. THENCE, S82 32'25"W, 127.18 FEET TO A POINT ON A CURVE CONCAVE WESTERLY AND HAVING A RADIUS OF 325.00 FEET, A RADIAL OF SAID CURVE TO SAID POINT BEARS N89 42'04"E; 50. THENCE, SOUTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 10 3743" AN ARC DISTANCE OF 60.29 FEET; 51. THENCE, N89 29'14"W, 169.87 FEET; 52. THENCE, S00 30'46"W, 20.00 FEET; 53. THENCE, N89 29'14'W, 160.00 FEET TO THE EAST LINE OF ABOVE SAID SECTION 29 AND THE CENTERLINF: OF JEFFERSON STREET; 54. THENCE, ALONG SAID EAST LINE OF SECTION 29 AND SAID CENTEPLINE OF JEFFERSON STREET, S00 30'46"W, 659.08 FEET TO THE EAST ONE —QUARTER CORNER OF SAID SECTION 29; 55, THENCE, ALONG THE NORTH LINE OF THE SOUTHEAST ONE-OUARTEP OF SAID 25 ""•� 079 SECTION 29 AND ALONG THE CENTERLINE OF STATE HIGHWAY 11 1, 56. THENCE, 500 30'40"W, 1371.54 FEET; 57.. THENCE, N89 02'35"W, 56.84 FEET; 58. THENCE, S45 23'25"W, 479.28 FEET; 59. THENCE, 589 52'06"E, 2152.45 FEET TO THE EAST LINE OF SAID SECTION 29 AND THE CENTERLINE OF JEFFERSON STREET; 60. THENCE, ALONG SAID EAST LINE OF SAID SECTION 29 AND SAID CENTERLINE OF JEFFERSON STREET, SOO 35'25"W, 1049.62 FEET TO THE SOUTHEAST CORNER OF SAID SECTION 29 AND THE END OF ANNEXATION NO. 1 OF SAID CITY OF LA QUINTA; 61. THENCE, ALONG THE ORIGINAL EASTERN BOUNDARY OF THE CITY OF' LA QUINTA AND ALONG THE EAST LINE OF ABOVE SAID SECTION 32 AND ALONG SAID CENTERLINE OF JEFFERSON STREET AS SHOWN ON ABOVE SAID PARCEL MAP NO. 20469, S00 03'12"E, 2664.05 FEET TO THE EAST ONE -QUARTER CORNER OF SAID SECTION 32; 62. THENCE, S00 02'48"E, 2587.48 FEET TO THE SOUTHEAST CORNER OF SAID SECTION 32 AND THE POINT OF BEGINNING. CONTAINING AN AREA OF 3116 ACRES, MORE OR LESS. 16, �.. 080z6 EXHIBIT B CONT. LEGAL DESCRIPTION LA QUINTA REDEVELOPMENT PROJECT NO. 2 ADDED AREA (FIFTH AMENDMENT) A portion of the south half of the northwest one -quarter of Section 18, Township 5 South, Range 7 East, San Bernardino Base and Meridan, in the County of Riverside, State of California, described more particularly as follows: Beginning at the west one -quarter corner of said Section 18, said comer being on the existing boundary of the City of La Quinta and on the centerline of Washington Street the following courses: Course 1. Thence, North 0°08'34" East along the westerly line of said Section 18 and centerline of Washington Avenue a distance of 664.02 feet to the northwest corner of the south half of the south half of government lot 2 said corner also being on the centerline of Hidden River Road as shown on Parcel Map No. 12323; Course 2. Thence North 89034'27' East along the northerly line of said south half of the south half of Section 18 and centerline of Hidden River Road a distance of 475.34 feet to a point that is 11.00 feet easterly of northwest corner of Lot D of said Parcel Map No. 12323; Course 3. Thence South 0°08'34 West parallel to said westerly line of said Lot D and the westerly line of Parcel 2 of said Parcel Map No. 12323 a distance of 400.31 feet to a point on the southerly line of said Parcel 2, said point also being on the northerly property line of that parcel of land described in deed to Testa Family Limited Partnership Il, recorded December 26, 1995 as document number 426898 in the office of the County Recorder of said Riverside County; Course 4. Thence North 89034'28" East along the Northerly line of said Testa Family land a distance of 849,23 feet; Course 5. Thence South W20'37East 265.62 feet to the southerly line of said Testa Land, said point also being on the east -west centerline of said Section 18; Course 6. Thence South 89°39'27 West along said east -west centerline of Section 18 and southerly of said Testa Family land 1326.81 feet to the point of beginning. Area = 12.42 Acres, more of less 6 3 D O !t John PLS 46613 Date 1 � 081 27 EXHIBIT C PROPOSED REDEVELOPMENT PROJECTS PUBLIC AGENCY REDEVELOPMENT PROJECTS STORM DRAIN SYSTEM Coachella Valley Stormwater Channel La Quinta Evacuation Channel General Storm Drains - various locations WATER SYSTEM Main Line Distribution Center SEWER SYSTEM Lift Sanitation (Jefferson & CVSC) Main Lines (to lift stations) BRIDGES Washington Street at Whitewater Jefferson Street at Whitewater Avenue 50 at La Quinta Channel Adams at Whitewater Avenue 48 at La Quinta Channel Dune Palms at Whitewater STREET IMPROVEMENTS East/West Streets Fred Waring Drive Westward Ho Drive Highway 111 Avenue 48 Avenue 50 North/South Streets Washington Street Adams Street Dune Palms Road Jefferson Street Hidden River Road RAISED MEDIANS Highway 111 Washington Street Jefferson Street TRANSIT TURNOUTS 14 Locations TRAFFIC SIGNALS Route 111 at Washington 0, ,•p•••" /1 Up2 28 V Route 111 at Adams Route 111 at Dune Palms Route 111 at Jefferson Washington at Fred Waring Washington at Miles Jefferson at Fred Waring Jefferson at Miles Jefferson at Avenue 48 Jefferson at Avenue 50 COMMUNITY DEVELOPMENT PROGRAMS Provide commercial development funds Provide funds for demolition of dilapidated structures Provide funds for planning services to conduct design/implementation program studies COMMUNITY FACILITIES Develop new fire department facility and related equipment to service Project Area No. 2 Develop new parks to service Project Area residents HOUSING PROGRAMS All housing programs will be funded by the 20% housing set aside program. Senior Housing Program Increase and/or retain affordable senior housing units. Develop new senior housing projects. Facilitate reverse mortgages for senior homeowners. First Time Homebuyer Program Provide mechanism and financial support by which young families can purchase homes in the City of La Quinta. New Housing Affordability Cooperate with City to support policies and procedures to require a portion of all new housing units be affordable to families of low to moderate income. The program will include both rental and ownership elements. Housing Rehabilitation Program Provide opportunities for housing rehabilitation on a City-wide basis. Relocation Housing Provide Relocation Housing Assistance when necessary. '°•••,; 083 29 Al "1 ACHNIENT 2 REDEVELOPMENT AGENDY OF THE CITY OF LA QUINTA 78495 Calle Tampico - La Ouinta, CA 92253 REPORT TO THE CITY COUNCIL Fifth Amendment to The Redevelopment Plan For La Quinta Redevelopment Project Area No. 2 LA QUINTA REDEVELOPMENT AGENCY NOVEMBER 2, 2010 TABLE OF CONTENTS INTRODUCTION .................................. Background............................................ Project Area No. 2................................ AddedArea .......................................... Fifth Amendment ............................. 7"... Plan Amendment Process ..................... Contents of this Report ......................... LA QUINTA REDEVELOPMENT PROJECT AREA NO. 2 Redevelopment Agency of the City of La Quinta ...............................................................................................- ........................................................................................................1 ...........................................................................I.....................1 ...............................................................................................I.....1 ........................................................................................................3 ........................................................................................................4 .......................4 SECTION A: REASONS FOR THE FIFTH AMENDMENT, INCLUDING DESCRIPTION OF THE PROPOSED PROJECTS AND HOW SUCH PROJECTS WILL IMPROVE OR ALLEVIATE BLIGHT IN THE ADDED AREA ............ 6 Project Area Location ..............6 Reasons for Including the Added Area........................................................................................................6 Fifth Amendment to the Redevelopment Plan.............................................................................................6 Determination as to Whether the Added Area is Predominantly Urbanized............................................7 A Description of Specific Projects the Agency May Pursue and How Potential Projects will Address Continuing Redevelopment of the Added Area..........................................................................................7 Substantial Rehabilitation of Affordable Housing ..........8 Constructionof Affordable Housing.............................................................................................................8 Summary ....................... ...................................8 SECTION B: DESCRIPTION OF THE PHYSICAL AND ECONOMIC BLIGHTING CONDITIONS EXISTING IN THE ADDEDAREA...........................................................................................................................................9 LegalConditions for Finding blight.............................................................................................................9 SECTION C: FIVE-YEAR IMPLEMENTATION PLAN......................................................................................10 SECTION D: EXPLANATION OF WHY THE ELIMINATION OF BLIGHT IN THE ADDED AREA CANNOT BE ACCOMPLISHED BY PRIVATE ENTERPRISE ACTING ALONE OR THROUGH OTHER FINANCING ALTERNATIVES OTHER THAN TAX INCREMENT FINANCING.............................................................................................11 SECTION E: PROPOSED METHOD OF FINANCING, INCLUDING THE ECONOMIC FEASIBILITY OF THE FIFTH AMENDMENT...............................................:........................................................................................12 Methodof Financing................................................................................................................................... 12 Financial Assistance from City, State, and/or Federal Government......................................................... 12 Lease or Sale of Agency -Owned Property................................................................................................ 12 Participatingin Development.................................................................................................................... 12 ^� Property Tax Increment.. ..................... ... . .. . ....... ...... .... ...... ..... .... ...... ..... ...... .... ................. 12 a „••• �� 085 LA QUINTA REDEVELOPMENT PROJECT AREA NO. 2 Redevelopment Agency of the City of La Quinta I...... 13 BondedDebt ................ ..... .......... ....... ................... ...................... .... ............. ............ ...... .................... 13 OtherAvailable Sources........................................................................................................................... 13 Proposed Method of Financing............................................................................................... .................. 15 Economic Feasibility Analysis.................................................................................................................. SECTION F: METHOD OF RELOCATION.....................................................................................................16 SECTION G: ANALYSIS OF THE PRELIMINARY PLAN..................................................................................17 SECTION H: REPORT TO THE PLANNING COMMISSION............................................................................18 SECTION I: REPORT OF THE PROJECT AREA COMMITTEE..........................................................................19 SECTION J: STATEMENT OF CONFORMANCE TO THE GENERAL PLAN........................................................20 SECTION K: ENVIRONMENTAL DOCUMENTATION ........ SECTION L: REPORT OF THE COUNTY FISCAL OFFICER SECTION M: NEIGHBORHOOD IMPACT REPORT ........................................... Relocation.................................................................................................................................................... 23 ......................... 23 TrafficCirculation.............................................................................................................. EnvironmentalQuality................................................................................................................... ............ 24 Availability of Community Facilities and Services.................................................................................. 24 Affect of School Population and Quality of Education........................................................................... 24 Property Taxes and Assessments............................................................................................................ 25 Low and Moderate Income Housing Program.......................................................................................... 25 ...................... 21 ......22 .................23 SECTION N: SUMMARY OF AGENCY'S CONSULTATIONS WITH AFFECTED TAXING ENTITIES AND RESPONSE TO SAID ENTITIES CONCERNS REGARDING THE PLAN..............................................................................27 APPENDIX A: AMENDED FIVE YEAR IMPLEMENTATION PLAN AND HOUSING COMPLIANCE PLAN UPDATE APPENDIX B: PRELIMINARY PLAN APPENDIX C: STATEMENT OF PREPARATION so..-j. 086 • Introduction BACKGROUND The La Quinta Redevelopment Agency ("Agency") is amending the Redevelopment Plan for the La Quinta Redevelopment Project Area No. 2 ("Redevelopment Plan") to add approximately 12.42 acres of territory to the La Quinta Redevelopment Project Area No. 2 ("Project Area"). This would be the Fifth Amendment to the Redevelopment Plan ("Fifth Amendment"). The purpose for the Fifth Amendment is to preserve and expand the City of La Quinta's ("City") supply of affordable housing by substantially rehabilitating and developing affordable multifamily housing using redevelopment funds. The proposed Fifth Amendment is being prepared in conformance with California Community Redevelopment Law, Health and Safety Code Section 33000 et. seq. ("CRL"). This Report to the City Council ("Report") provides reasons for the Fifth Amendment and describes its potential outcome as required by the CRL. PROJECT AREA NO. 2 The La Quinta Redevelopment Agency was established in 1983. Project Area No. 2 was established in May 1989 by Ordinance No. 139 to primarily address infrastructure deficiencies that limited private sector investment in commercial and residential development, and to increase and improve the community's supply of affordable housing. The Redevelopment Plan was subsequently amended on December 20, 1994 by Ordinance No. 259 to conform to new legal requirements. It was amended again on February 3, 2004 by Ordinance No. 399 to increase the limit on the amount of tax increment revenue the Agency may receive, and again on March 16, 2004 by Ordinance Nos. 403 and 404 to extend the,duration of the Redevelopment Plan by one year. The Project Area encompasses approximately 3,116 acres and is located in the northern portion of the City. It is generally bound by Fred Waring Drive on the north, Jefferson Street on the east and Avenue 50 to the south. The western border varies between Washington Street and Eisenhower Drive. The Project Area consists of commercial, industrial, single and multifamily residential, retail, vacant lots, and recreational uses. ADDED AREA The proposed area to be added through the Fifth Amendment ("Added Area") consists of properties located in the City of La Quinta, Riverside County, California, approximately half a mile north of the Project Area (shown in Exhibit A). It is generally bound by Hidden River Road to the north, Washington Street to the west, and the Mediterra Apartments along Darby Road to the south. The eastern border varies between Byron Place and Lima Hall Road. The Added Area consists of three (3) properties encompassing 12.42 acres. The La Quinta General Plan designates these properties for High Density Residential (HDR). One of the parcels is developed with a 73- unit apartment complex (72 one -bedroom units and 1 2-bedroom manager's unit) with 72 of the units restricted to very low and low income seniors and special needs residents pursuant to previous underwriting by the Farmer's Home Administration, United States Department of Agriculture. The Agency plans to substantially rehabilitate the units and record 55 year affordability covenants when the complex is substantially rehabilitated. The other two parcels are undeveloped and the Agency intends to develop a 68 additional multi -family dwellings that will be affordable to very low and low income households, senior and handicapped households. Exhibit A identifies the Project Area and Added Area. m.•.J` 087 LA QUINTA REDEVELOPMENT PROJECT AREA NO. 2 Redevelopment Agency of the City of La Quinta FIFTH AMENDMENT The purpose of the Fifth Amendment is to preserve and expand the City's supply of affordable housing by substantially rehabilitating and developing new low income multifamily housing within the Added Area using redevelopment funds. The Fifth Amendment is being prepared in conformance with the CRL. This document is the Agency's Report to the City Council on the Fifth Amendment. It has been prepared pursuant to Sections 33457.1 and 33352 of the CRL. Section 33457.1 of the CRL states that any reports and information required by Section 33352, to the extent warranted by a proposed redevelopment plan amendment, shall be prepared and made available to the public prior to a public hearing on the proposed redevelopment plan amendment. Similarly, Section 33451.5 of the CRL requires the preparation of a report in connection with certain redevelopment plan amendments, including amendments that change the boundaries of the project area, for delivery to the Department of Finance and the Department of Housing and Community Development no later than 45 days prior to the public hearing on the proposed redevelopment plan amendment. This Report is intended to provide the Agency Board and City Council with reports and information that are required by Sections 33352, 33451.5 and 33457.1 to be prepared for the adoption of the Fifth Amendment. Section 33320.2 (a) of the CRL provides that when adding territory to a redevelopment project area, the area may be either contiguous or noncontiguous. All noncontiguous areas shall be either blighted or necessary for effective redevelopment. An unblighted, noncontiguous area shall be conclusively deemed necessary for effective redevelopment if the following is applicable: • The area being added is being used predominantly for the construction and rehabilitation of low- or moderate -income housing; • The area being added is not included for the purpose of obtaining tax increment; and • The redevelopment agency will not use the power of eminent domain in that area. The Added Area meets these provisions. Therefore, this Report does not prove whether blight exists in the Added Area. Furthermore, Section 33368 of the CRL states that the decision of a legislative body is final and conclusive, and it shall thereafter be conclusively presumed that a project area is a blighted area as defined by Section 33031 of the CRL. Thus, this Report does not show whether blight remains in the Project Area. The Agency is pursuing the Fifth Amendment in order to preserve and enhance existing affordable housing, and to develop new affordable housing. Further, the Agency will be selling these units to a non-profit operator who will pay limited or no property taxes. Thus, the Agency is not pursuing this Fifth Amendment for the purpose of obtaining tax increment revenue. Finally, the Agency's eminent domain authority expired in 2001, therefore, eminent domain cannot be used in the Added Area. Amending the Redevelopment Plan to include the Added Area will assist the Agency's effort to increase the supply of affordable housing in the Added Area for the surrounding region. If the Fifth Amendment is adopted, the Agency will use redevelopment funds to substantially rehabilitate the existing property and construct an additional affordable multifamily housing on the undeveloped parcels within the Added Area. As part of the Fifth Amendment, the Agency has prepared an Amended and Restated Redevelopment Plan for Project Area No. 2 ("Amended and Restated Plan") to incorporate changes from the Fifth Amendment and from four prior amendments that were approved and recorded by ordinance but were never incorporated into the text. This creates one cohesive document that is easier for redevelopment staff to reference for administrative purposes, rather than having to interpret five separate amending ordinances. n•. 089 LA QUINTA REDEVELOPMENT PROJECT AREA NO. 2 Redevelopment Agency of the City of La Quinta PLAN AMENDMENT PROCESS This Report is one of several documents that the CRL requires the Agency to prepare during the plan amendment process; it is intended to provide a comprehensive description of the Fifth Amendment. Over the past several months, the City Council, Agency, City's Planning Commission, affected taxing agencies, and the community at large have had an opportunity to study and comment on the Fifth Amendment. The City Council approved a Survey Area on June 17, 2008. A Preliminary Plan was prepared and approved by the Planning Commission on July 8, 2008 and by the Agency on July 15, 2008. The Planning Commission submitted a report and recommendation to the Agency and City Council concerning the conformity of the Fifth Amendment to the General Plan at its meeting of October 12, 2010. The Planning Commission determined that the Amended and Restated Plan conforms to the General Plan of the City of La Quinta and that the uses permitted within the Added Area are the same uses designated in and permitted by the City's General Plan. This Report and the final text of the Amended and Restated Plan will be considered by the Agency and the City Council at a joint public hearing on January 18, 2011. All Project Area and Added Area (collectively referred to as the "Amended Project Area") property owners and affected taxing agencies will receive notice of this public hearing by mail and through the publication of public notices in a local newspaper. If the Fifth Amendment is approved by the City Council after the public hearing, the Agency will send a copy of the adopted ordinance to the governing bodies of all affected taxing entities, the Riverside County Assessor, and the Riverside County Auditor -Controller. A Negative Declaration for the Fifth Amendment will be considered on January 18, 2011. CONTENTS OF THIS REPORT The contents of this Report to the City Council are presented in fourteen sections, which generally correspond to the subdivisions presented in Section 33352 of the CRL. The sections are as follows: Section A: Reasons for the Fifth Amendment, Including a Description of the Proposed Projects and How Such Projects will Improve or Alleviate Blight in the Added Area Section B: A Description of the Physical and Economic Blighting Conditions Existing in the Added Area Section C: Five -Year Implementation Plan Section D: Explanation of Why the Elimination of Blight in the Added Area Cannot be Accomplished by Private Enterprise Acting Alone or Through Other Financing Alternatives Other Than Tax Increment Financing Section E: Proposed Method of Financing, Including the Economic Feasibility of the Fifth Amendment Section F: Method of Relocation Section G: Analysis of the Preliminary Plan Section H: Report of the Planning Commission Section I: Report of Project Area Committee Section J: Statement of Conformance to the General Plan Section K: Environmental Documentation --Section L: Report of the County Fiscal Officer r ��0 "�� 090 LA QUINTA REDEVELOPMENT PROJECT AREA NO. 2 Redevelopment Agency of the City of La Quinta Section M: Neighborhood Impact Report Section N: Summary of the Agency's Consultations with Affected Taxing Entities and a Response to Said Entities' Concerns Regarding the Fifth Amendment Appendix A: La Quinta Redevelopment Project Area No. 2 Amended Five Year Implementation Plan Appendix B: Preliminary Plan Appendix C: Statement of Preparation <.�_ 091 Reasons for the Fifth Amendment, Including Description of the Proposed Projects and How Such Projects Will improve or Alleviate Blight in the Added Area PROJECT AREA LOCATION The Project Area encompasses approximately 3,116 acres and is located in the northern portion of the City. It is generally bound by Fred Waring Drive on the north, Jefferson Street on the east and Avenue 50 to the south. The western border varies between Washington Street and Eisenhower Drive. The Project Area consists of commercial, industrial, single and multifamily residential, retail, vacant lots, and recreational uses. The proposed Added Area is noncontiguous to the Project Area; approximately half a mile north of the Project Area. It is generally bound by Hidden River Road to the north, Washington Street to the west, and the Mediterra Apartments on Darby Road to the south. The eastern border varies between Byron Place and Lima Hall Road. A map of the Project Area and Added Area is included as Exhibit A. This section provides reasons for adopting the Fifth Amendment. As mentioned in the introduction, this Report is not required to document blighting conditions in the Added Area nor the Project Area pursuant to Sections 33320.2 and 33368 of the CRL. REASONS FOR INCLUDING THE ADDED AREA The purpose of the Fifth Amendment is to preserve and expand the City's affordable housing by substantially rehabilitating and developing affordable multifamily housing within the Added Area. The Agency has an obligation and commitment to provide affordable housing using Agency resources and funds as required by the CRL. The CRL requires that the Agency secure 2,307 affordable units. These units must have covenants to ensure that they remain affordable to very low, low or moderate income households for 45 to 55 years (45 years for owner -occupied units and 55 years for rental units). To date, the Agency has secured, or is in the process of securing, 1,507 units. The anticipated rehabilitation and construction of affordable units in the Added Area would contribute to this effort. Pursuant to the CRL, a redevelopment agency must produce two affordable units for every one unit it receives credit for, if the properties are located outside of a redevelopment project area; the redevelopment agency receives a one -for -one credit if the dwellings are located in a redevelopment project area. Therefore, the Agency is proposing to amend the Redevelopment Plan to add the Added Area to the Project Area to maximize credit for the creation of affordable housing. FIFTH AMENDMENT TO THE REDEVELOPMENT PLAN The proposed Fifth Amendment adds approximately 12.42 acres of are area noncontiguous to the existing Project Area. Pursuant to Section 33320.2 of the CRL, the Added Area is necessary for effective redevelopment because it will be used for the construction and rehabilitation of low and moderate income housing. The Added Area would not be utilized to collect tax increment. The Fifth Amendment would not alter land use policies, financial or time limits, or any other component of the Redevelopment Plan, nor would it change the terms of any financial obligation of the Project Area. The Fifth Amendment would accomplish redevelopment by providing financial and administrative tools to invest in preserving and developing affordable housing. "—J 092 LA QUINTA REDEVELOPMENT PROJECT AREA NO. 2 Redevelopment Agency of the City of La Quinta Draft text of the Amended and Restated Plan has been prepared that includes all items required by the CRL and conforms to the La Quinta General Plan. The Amended and Restated Plan incorporates changes from the proposed Fifth Amendment. In addition, it has been amended to incorporate changes from four prior amendments to the Redevelopment Plan. The prior amendments were made by ordinance only; no changes were made to the original Redevelopment Plan text as a whole document. An Amended and Restated Plan has been prepared in order to combine the changes from all amendments into one document that is easier to reference for legal and administrative purposes. The following change has been incorporated into the Amended and Restated Plan for the Fifth Amendment: • Incorporates the Added Area into the Redevelopment Plan for the purposes of developing and substantially rehabilitating law and moderate income housing. The Added Area has its own time and financial limits based on the date the ordinance adopting the Fifth Amendment is approved. The following changes have been incorporated from four prior amendments that were not incorporated into the existing plan text: • Incorporates changes from the Fourth Amendment (adopted on March 16, 2004 by Ordinance No. 404) repealing the time limit to incur loans, advances and indebtedness for the Project Area. • Incorporates changes from the Third Amendment (adopted on March 16, 2004 by Ordinance No. 403) increasing the duration of the Redevelopment Plan's effectiveness by one year. • Incorporates changes from the Second Amendment (adopted on February 3, 2004 by Ordinance No. 399) increasing the limit on the number of tax dollars which may be allocated to the Agency from this Project Area to $1.5 billion. • Incorporates changes from the First Amendment (adopted on December 20, 1994 by Ordinance No. 259) to change the time limit on when the Agency may repay loans, advances and indebtedness and receive property tax increment to ten (10) years from the termination of the effectiveness of the Redevelopment Plan. (The First Amendment also changed the time limit on when the Agency may incur loans, advances and indebtedness; however this time limit was repealed by the Fourth Amendment as noted above.) DETERMINATION AS TO WHETHER THE ADDED AREA IS PREDOMINANTLY URBANIZED A redevelopment project area is considered predominantly urbanized if at least 80 percent of the land has been or is developed for urban uses, or if it is an integral part of one or more areas developed for urban uses that are surrounded by parcels that have been or are developed for urban uses. The Added Area consists of three (3) parcels. One of the parcels has a 73 unit multifamily apartment complex. The other two parcels are vacant but are an integral part of an area developed for urban uses that are surrounded by parcels that have been or are developed for urban uses. Uses adjacent to the vacant parcels include multifamily housing to the north and south, residential housing and vacant land to the east, and commercial and residential single and multifamily housing to the west. The vacant parcels are an integral part of the area because the parcels have been zoned for residential use, indicating that it was intended to be developed to fit in with the surrounding area. The Agency intends to conform to the zoning of the vacant parcels by developing a new multifamily housing project that is affordable to very low and low income residents. A DESCRIPTION OF SPECIFIC PROJECTS THE AGENCY MAY PURSUE AND HOW POTENTIAL PROJECTS WILL ADDRESS CONTINUING REDEVELOPMENT OF THE ADDED AREA The proposed Fifth Amendment includes a general description of affordable housing projects that may be undertaken by the Agency in the Added Area. If the Fifth Amendment is adopted, specific projects and programs identified in the Amended Five Year Implementation Plan, attached in Appendix A, as required by the CRL will be undertaken. The following identifies and discusses potential projects the Agency intends to 1mplete. 7 r^.•�. 093 LA QUINTA REDEVELOPMENT PROJECT AREA NO. 2 Redevelcpmr nl Agency of the City of La Quinta SUBSTANTIAL REHABILITATION OF AFFORDABLE HOUSING The Agency purchased the existing multifamily housing complex in 2008. Seventy-two (72) of the 73 units are currently restricted to very low income seniors and special needs residents pursuant to previous underwriting by the Farmer's Home Administration, United States Department of Agriculture. The multifamily housing complex is approximately 30 years old. The Agency will substantially rehabilitate 72 of the rent - restricted units and demolish the manager's unit and community building to construct new community amenities. Proposed improvements include unit rehabilitation, a new recreation building and community amenities, updated appliances and fixtures, more energy efficient windows and HVAC systems, new carports to protect residents from extreme heat, an improved noise barrier and streetscape on Washington Street. The Agency will record 55-year affordability covenants to preserve the affordability of the units to very low and low income senior and handicapped households. CONSTRUCTION OF AFFORDABLE HOUSING The Agency will develop a multifamily housing complex restricted to very low and low income seniors and special needs households. The Agency intends to build approximately 68 new units which will include a manager's unit and a unit for maintenance personnel. SUMMARY The purpose of the Fifth Amendment is to preserve and expand the City's supply of affordable housing by substantially rehabilitating and developing affordable multifamily housing within the Added Area using redevelopment funds. The Agency has an obligation and commitment to providing affordable housing using Agency resources and funds as mandated by the CRL. The proposed Fifth Amendment adds approximately 12.42 acres of noncontiguous territory to the Project Area pursuant to Section 33320.2 of the CRL. The Added Area is necessary for effective redevelopment because it will predominantly be used for the construction and rehabilitation of low or moderate income housing. The Added Area would not be utilized to collect tax increment nor would the agency use the power of eminent domain for the acquisition of property in the Added Area. The Agency plans to substantially rehabilitate 72 units restricted to very low income senior and disabled residents and build approximately 68 new units for very low and low income special needs and senior households. 8 �. «...0 094 Description Of The Physical And Economic Blighting Conditions Existing In The Added Area LEGAL CONDITIONS FOR FINDING BLIGHT Section 33320.2(a) of the CRL provides that an unblighted, noncontiguous area may be included in a project area if it is deemed necessary for effective redevelopment. One of the reasons an area may be deemed necessary for effective redevelopment is if it is used predominantly for the construction and rehabilitation of low or moderate income housing, as long as that area is not included for the purpose of obtaining tax increment and the redevelopment agency will not use the power of eminent domain on that area. The Added Area will only be used for the construction and rehabilitation of low or moderate income housing, will not be included to collect tax increment, and will not be subject to eminent domain. Thus, the Added Area does not have to be blighted as defined by the CRL and this Report does not need to prove that blight exists in the Added Area. Furthermore, Section 33368 of the CRL states that the decision of a legislative body is final and conclusive, and it shall thereafter be conclusively presumed that a project area is a blighted area as defined by Section 33031 of the CRL. Thus, this Report does not need to show that blight remains in the existing Project Area. The Project Area was originally established in 1989 primarily due to flood control and circulation system deficiencies, which were major impediments to private sector investment, and to increase and improve the community's supply of affordable housing. Additionally, economic development activities were impacted by parcels subdivided in a manner that limited their development in accordance with the City's General Plan due to their unusual configuration or small size. The City could not adequately fund the required improvements without redevelopment. The Agency has funded major infrastructure improvement projects since the Redevelopment Plan was adopted, both in conjunction with private developers, landowners, and with the City. As of the last amendment to the Redevelopment Plan in 2003, a need for approximately $20.9 million of non - housing improvements remained. The Agency continues to make improvements to eliminate remaining infrastructure deficiencies and property configuration impediments in the Project Area. ,..,:j - 0 9 5 Proposed Method Of Financing, Including The Economic Feasibility Of The Fifth Amendment Section 33352 of the CRL requires that a report of an agency to a legislative body include information on the proposed method of financing, including information on the economic feasibility of the Added Area. The Added Area will not collect tax increment pursuant to Section 33670 of the CRL; however, the Agency will utilize funding from the existing Project Area to implement activities in the Added Area. METHOD OF FINANCING The Agency is permitted to finance redevelopment of the existing Project Area from the following resources: • Tax Increment Revenues; • Bonded Debt; • Financial Assistance from the City, County, State of California and/or Federal Government; • Proceeds from lease or sale of Agency -owned property; • Loans from private financial institutions; and • Any other legally available source. The more typical sources of redevelopment financing that may be employed in the existing Project Area to fund redevelopment activities in the Added Area are described below. FINANCIAL ASSISTANCE FROM CITY, STATE, AND/OR FEDERAL GOVERNMENT The Agency may obtain loans and advances from the City for planning, construction, and operating capital. The City may also defer payments on Agency loans for land purchases, benefiting the Agency's cash flow. Such assistance may be employed to meet short term cash flow needs. As available, other funds such as state -apportioned road funds, state housing and infrastructure bond funds, state and federal transportation funds, and federal Community Development Block Grants (CDBG) will be appropriately utilized in conjunction with Agency funds for costs of project implementation. LEASE OR SALE OF AGENCY -OWNED PROPERTY Under the existing Redevelopment Plan, the Agency may sell, lease, or otherwise encumber its property holdings to pay the costs of project implementation. PARTICIPATING IN DEVELOPMENT If the Agency enters into agreements with property owners, tenants, and/or other developers that provide for revenues to be paid or repaid to the Agency, such revenues may be used to pay project implementation costs. PROPERTY TAX INCREMENT The Agency will not collect property tax increment as provided for in Section 33670(b) of the CRL from the Added Area. However, the Agency does collect property tax increment from the existing Project Area to employ tax increment financing to fund redevelopment activities. Tax increment revenue is intended to fund ongoing redevelopment activities and to pay indebtedness incurred by the Agency. Indebtedness includes 12 096 LA QUINTA REDEVELOPMENT PROJECT AREA NO. 2 Redevelopment Agency of the City of La Quinta principal and interest on loans, monies advanced, or debts (whether funded, refunded, assumed, or otherwise) incurred by the Agency to finance or refinance, in whole or in part, redevelopment activities. Tax increment revenues are distributed to address an array of obligations. As required by Section 33334.2 of the CRL, 20 percent of the Project Area's tax increment revenue is deposited into the Agency's Housing Fund for the purposes of increasing, improving, and preserving the community's supply of low and moderate income housing. Monies from the Housing Fund will be used to fund rehabilitation and development of affordable housing in the Added Area. Additionally, since the Agency looks at both of its redevelopment project areas (Redevelopment Project Area Nos. 1 and 2, or "Project Areas") when implementing its housing mandate, Housing Fund revenue from both Project Areas will be pledged for affordable housing activities in the Added Area. The remaining 80 percent of the tax increment revenue is used to pay for Agency obligations to taxing entities, debt service costs, and other program expenditures such as infrastructure, capital facilities, and economic development programs within the Project Area. The Redevelopment Plan has no time limit to incur debt and permits the Agency to collect tax increment revenue until May 2040 from the existing Project Area. None of the existing time or financial limits in the Redevelopment Plan for the existing Project Area will be affected by the Fifth Amendment. The effectiveness of the Redevelopment Plan for the Added Area will expire 30 years from the date the ordinance that approves the Fifth Amendment is adopted- • k 11 9 �7YY Under the current Redevelopment Plan, the Agency has the capacity to issue bonds and/or notes for any of its corporate purposes, payable in whole or in part from tax increment revenue generated from the existing Project Area. Any bonds issued by the Agency are the responsibility of the Agency, and neither the City nor its taxpayers are liable for debt service on the bonds. Redevelopment bonds are typically issued based on current cash flows, without regard to the potential increase in revenues that may lie ahead. The Fifth Amendment would not change any bonded debt provisions in the Redevelopment Plan. Bond money issued to the Agency may be used to fund redevelopment projects in the Added Area if they are allocated for affordable housing activities. OTHER AVAILABLE SOURCES Any other loans, grants, or financial assistance from the federal government, or any other public or private source will be utilized, as available and appropriate. The Agency will also consider use of the powers provided by the CRL to provide construction and other funds for appropriate projects. Where feasible and appropriate, the Agency may use assessment district and/or Mello -Roos bond financing to pay for the costs of public infrastructure, facilities, and operations. PROPOSED METHOD OF FINANCING One source of project financing for the Added Area is the Housing Fund from both of the existing Project Areas. The Agency aggregates its housing production fulfillments among both Project Areas to create more affordable housing opportunities where they are most needed, rather than limiting affordable housing production in one area. Twenty percent (20%) of the gross tax increment revenues from the Project Areas are deposited into the Housing Fund annually. Table 1 presents a detailed preliminary forecast of housing funds from tax increment revenues for the Project Areas. The projections assume a conservative 3 percent annual growth rate of assessed values within the Project Areas. The cumulative Housing Fund revenue projected from fiscal year 2010-11 to the last year the Project Areas may collect tax increment revenue is $417,508,221 and remaining revenue for program administration and new construction and rehabilitation projects of $198,013,957 after debt service payments. t�------------ ------------------ ��'* � 13 ro-.. J 09 LA QUINTA REDEVELOPMENT PROJECT AREA NO. 2 Redevelopment Agency of the City of La Quinta Housing Fund Cash Flow Forecast Table 1 La Quinta Redevelopment Project Area Nos. 1 and 2 Fiscal Year Debt Service Funds for Program Housina Fund Revenue 2004 Administration & 2010-11 8,772,851 4,780,134 13,552,985 5,949,931 7,603,054 2011-12 9,043,926 4,925,629 13,969,555 5,945,331 8,024,224 2012-13 9,323,133 5,075.489 14,398,622 5,949,106 8.449,516 2013-14 9,610,717 5,229,844 14,840,561 5,949,056 8,891,505 2014-15 9,906,928 5,388,831 15,295,759 5,950,306 9,345,452 2015-16 10,212,026 5,552,586 15,764,612 5,946,556 9,818,056 2016-17 10,526,276 5,721,255 16,247,531 5,947,369 10,300,162 2017-18 10,849,954 5,894,983 16,744,937 5,947,144 10,797,793 2018-19 11,183,342 6,073,924 17,257,266 5,945,619 11,311,647 2019-20 11,526,732 6,258,233 17,784,964 5,947,531 11,837,433 2020-21 11,880,423 6,448,070 18,328,494 5,947.356 12,381,137 2021-22 12,244,726 6,643,603 18,888,329 5,949,831 12,938,498 2022-23 12,619,957 6,845,002 19,464,959 5,949,431 13,515,528 2023-24 13,006,445 7,052,443 20,058,889 5,945,894 14,112,995 2024-25 13,404,528 7,266,108 20,670,636 5,948,956 14,721,680 2025-26 13,814,554 7,486,182 21,300,735 5,947,831 15,352,904 2026-27 14,236,880 7,712,858 21,949,738 5,946,331 16,003,407 2027-28 14,671,876 7,946,335 22,618,211 5,945,831 16,672,379 2028-29 15,119,922 8,186,816 23,306,737 5,945,831 17,360,906 2029-30 8,434,511 8,434,511 5.945,831 2,488,680 2030-31 8,689,637 8,689,637 5,950,331 2,739,306 2031-32 8,952,417 8,952,417 5,947,788 3,004,630 2032-33 9,223,081 9,223,081 5,948,200 3,274,881 2033-34 9,501,864 9,501,864 5,945,800 3,556,064 2034-35 9,789,011 ___ 9,789,011 5,950,075 3,838,936 2035-36 10,084,772 10,084,772 10,084,772 2036-37 10,389,406 10,389,406 10,389,406 2037-38 2038-39 Total $ 221,955,195 $ 195,553,025 $ 417,508,221 $ 148,693,269 268,814,952 NPV@ 6.0% $133,942,991 Source: County of Riverside Auditor -Controller, Redevelopment Agency of the City of La Quinta 14 ° �- 098 LA QUINTA REDEVELOPMENT PROJECT AREA NO. 2 Redevelopment Agency of the City of La Quinta f*9Z0lIIs] 1iI ON W_FI1714 Yr%\2I1W&I&I Redevelopment of the Added Area may involve $24,252,458 of public investment in order to substantially rehabilitate and develop affordable housing. Table 2 documents the projected sources and uses of tax increment revenue projected from the Project Area. Sources and Uses of Funds -Added Area Table 2 La Quinta Project Area No. 2 Sources Housing Fund Revenue (See Table 1) $ 268,814,952 Uses Substantial Rehabilitation $ 7,067,400 72 units plus common area, manager's unit and site improvements New Construction $ 17,185,058 Up to 68 new units on vacant parcels Source. Redevelopment Agency of the City of La Quints e 15 »...� Ogg Method Of Relocation The Fifth Amendment does not alter the Method of Relocation for the Project Area. The Added Area will adhere to the Method of Relocation for the Project Area. The Agency will also adhere to the State Relocation Guidelines, consisting of the State Relocation Law (Government Code 7260 through 7277), and the California Relocation Assistance and Real Property Acquisition Guidelines as established in the California Code of Regulations, Title 25, Chapter 6 (collectively "Relocation Guidelines"). If relocation is necessary, the Relocation Guidelines ensure that the Agency will meet its relocation responsibilities to any families, persons, businesses, or nonprofit local community institutions to be temporarily or permanently displaced as a consequence of the implementation of the Redevelopment Plan. No persons or families of low and moderate income shall be displaced unless and until there is a suitable housing unit available and ready for occupancy by the displaced person or family at rents comparable to those at the time of their displacements. 16 a»'� 100 Analysis of the Preliminary Plan Section 33352(g) of the CRL requires the inclusion of an analysis of the Preliminary Plan for the Amended Project Area, An Amended and Restated Preliminary Plan ("Preliminary Plan") was prepared to amend the Project Area boundaries. On July 8, 2008 the Planning Commission approved a Preliminary Plan for the Amended Project Area by Resolution No. 2008-046. The Preliminary Plan was subsequently approved and accepted by the Agency on July 15, 2008 by Resolution No. 2008-003. In accordance with Section 33324 of the CRL, the Preliminary Plan describes the boundaries of the Amended Project Area and includes general statements of land uses and of the layout of principal streets, population densities, building intensities and standards proposed as the basis for the redevelopment of the Amended Project Area. The Preliminary Plan addresses how the Amended Project Area would attain the purposes of the CRL. The Preliminary Plan also discusses how the proposed redevelopment of the Amended Project Area is consistent with the community's general plan and described the impact of the project upon residents of the Amended Project Area and surrounding neighborhoods. A copy of the Preliminary Plan is attached as Appendix B. The Fifth Amendment conforms to the standards and provisions of the Preliminary Plan, as detailed below: • Project Area Location and Description: This section of the Preliminary Plan describes the boundaries of the Project Area and Added Area. The proposed boundaries are identical to those described in the Preliminary Plan. • General Statement of Proposed Planning Elements: This section of the Preliminary Plan states that Amended Project Area's land uses, proposed layouts of principal streets, proposed population densities, proposed building intensities, and proposed building standards shall be subject to and controlled by the General Plan, Zoning Ordinance, and other local codes, as amended from time to time. These planning elements are incorporated into the Redevelopment Plan and are not affected by the Fifth Amendment. Additionally, the Fifth Amendment does not propose any changes to population or development densities or land use designations. • Attainment of the Purposes of the CRL: This section of the Preliminary Plan generally sets forth the objectives of the Amended Project Area. To this end, the Redevelopment Plan contains a detailed list of redevelopment goals that permit the Agency to complete its redevelopment program to eliminate persistent blighting conditions in the Amended Project Area in accordance with the CRL. • Consistency with the Citv's General Plan: The Preliminary Plan and the Redevelopment Plan conform to the standards, policies and provisions of the General Plan, as they exist or are hereafter amended. • General Impact of the Proposed Proiect Upon the Residents of the Project Area and Surrounding Neighborhoods: This section of the Preliminary Plan states that residents in and around the Added Area will benefit from a greater supply of affordable housing. Other impacts associated with the implementation of the Fifth Amendment have been assessed and analyzed in the Negative Declaration, addressed in Section K of this Report, and the Neighborhood Impact Report, addressed in Section M of this Report. The Redevelopment Plan provides the Agency with the redevelopment tools and policies necessary to achieve positive impacts and mitigate negative impacts. 17 101 H Report to the Planning Commission Section 33352(h) of the CRL requires inclusion of a report of the Planning of the City of La Quinta ("Planning Commission"). The Planning Commission adopted its report on the conformity of the Fifth Amendment with the City's General Plan on October 12, 2010 by Resolution No. 2010-021. Pursuant to the Planning Commission's action, the Fifth Amendment is in conformity with the City of La Quinta General Plan. r.. 1 102 Report of the Project Area Committee A Project Area Committee ('PAC') does not exist for the Fifth Amendment. Pursuant to Section 33385.3 of the CRL, a Project Area Committee ('PAC") is required if the Agency proposes to amend a redevelopment plan to: (1) grant the authority to the Agency to acquire by eminent domain property on which persons reside in a project area in which a substantial number of low and moderate income persons reside; or (2) add territory in which a substantial number of low and moderate income persons reside and grant the authority to the Agency to acquire, by eminent domain, property on which persons reside in the added territory. The proposed Fifth Amendment does not do either of these things; thus not requiring the formation of a PAC. Agency staff and consultants continue to have on -going discussions with the residents in the Added Area to discuss desired property improvements. Staff anticipates that these meetings will continue as the Fifth Amendment is considered. Further, Agency staff will be conducting a community meeting on January 10, 2011 to field additional questions and discuss the Fifth Amendment with stakeholders and interested parties. Notice of the workshop will be included in the notice of the joint public hearing, which will be mailed to taxing agencies on December 1, 2010 and property owners on December 13, 2010. I �nJ 103 Statement of Conformance to the General Plan I Section 333520) of the CRL requires a report of General Plan conformance per Section 65402 of the Government Code. As set forth in Section H, the Planning Commission determined that the Fifth Amendment is in conformity with the City's General Plan on October 12, 2010. 20 ""'� 104 Environmental Documentation Section 33352(k) of the CRL requires the inclusion of the report prepared pursuant to Section 21151 of the Public Resources Code. Reporting for the proposed Fifth Amendment consists of a determination that the Fifth Amendment is Categorically Exempt per the California Environmental Quality Act (Public Resources Code Section 21000 et seq., "CEQA") Section 15320 Class 20. The Fifth Amendment will only affect the boundaries of the existing Project Area No. 2. There are no other changes to the Redevelopment or approval of specific development projects and associated physical changes. The Fifth Amendment will facilitate the continued implementation of the Redevelopment Plan by the Agency in the same manner in which it is currently being implemented. P7-4 21 b�.1 105 Report of the County Fiscal Officer A report of the county auditor -controller in accordance with Section 33328 of the CRL is not required for the Fifth Amendment because the Added Area will not obtain the allocation of taxes pursuant to Section 33670 of the CRL. The Agency sent a Statement of Preparation to the Riverside County Auditor -Controller on September 15, 2010. At the time this Report was written, the Agency had not received a response from the County Auditor -Controller. A copy of the Statement of Preparation is included in Appendix C. {' -- ---- - ----- — --------- -- — 22 �� ? 06 Neighborhood Impact Report The CRL requires that a Neighborhood Impact Report discuss the impact the Fifth Amendment will have on low and moderate persons or families in the following areas: relocation, traffic circulation, environmental quality, availability of community facilities and services, effect on school population and quality of education, property assessments and taxes, and other matters affecting the physical and social quality of the neighborhood. Additional issues that the neighborhood impact report must address include: the number of low or moderate - income dwelling units to be removed or destroyed; the number of low or moderate income persons or families expected to be displaced; the general location of housing to be rehabilitated, developed or constructed; the number of dwelling units planned for construction or rehabilitation to house persons and families of low or moderate income (other than replacement housing), the projected means of financing the aforementioned dwelling units; and the projected timetable for meeting a redevelopment plan's relocation, rehabilitation, and replacement housing objectives. RELOCATION The Agency anticipates that the rehabilitation of the existing 72 income restricted very low income housing units within the Added Area will result in the temporary displacement of affordable housing units. As a public agency formed under the provisions of state law, the Agency is required to adhere to the State Relocation Law (Government Code Sections 7260 through 7277) and follow the California Relocation Assistance and Real Property Acquisition Guidelines ("State Guidelines') as established in the California Code of Regulations, Title 25, Chapter 6. Prior to commencement of any acquisition activity that may cause substantial displacement (other than an insignificant amount of non-residential displacement), the Agency will adopt a specific relocation plan in conformance with the State Guidelines. To the extent appropriate, the Agency may supplement those provisions provided in the State Guidelines to meet particular relocation needs of a specific project. Such supplemental policies, if adopted in the Agency's sole discretion, will not involve reduction, but instead enhancement of the relocation benefits required by State Law. TRAFFIC CIRCULATION An Initial Study and Negative Declaration was prepared to assess traffic and other environmental impacts of the proposed Fifth Amendment. The IS/ND concluded the proposed Fifth Amendment would result in no significant traffic impacts. When the original Redevelopment Plan was adopted many traffic and circulation programs impacted traffic circulation in the Project Area. The Redevelopment Plan includes numerous improvements to the traffic and circulation system to alleviate the existing deficiencies and provide for improvements that will mitigate future traffic increases resulting from new development. The City's General Plan would control the land use designations and intensities of the Amended and Restated Plan; its implementation would not create locally or cumulatively significant impacts beyond what is anticipated pursuant to the General Plan. The Added Area does not deviate from the current Redevelopment Plan's land use policies which mirror those in the General Plan. The Fifth Amendment does not propose any change in land use designations or existing General Plan policies. LA QUINTA REDEVELOPMENT PROJECT AREA NO. 2 Redevelopment Agency of the City of La Quinta ENVIRONMENTAL QUALITY The IS/ND reviewed the environmental impacts of the proposed Fifth Amendment and concluded the proposed Fifth Amendment itself would not result in any significant impacts. As stated in the proposed Amended and Restated Plan, all development must conform to the City's General Plan and other applicable State and local building codes and controls. Because the proposed Fifth Amendment does not propose uses or intensities beyond the General Plan and other related land use policy documents, adherence to adopted General Plan and land use policies will ensure that implementation of the proposed Fifth Amendment would lessen or avoid potential impacts. This would ensure that the quality of the environment is maintained. During implementation of the Amended and Restated Plan, implementation projects may warrant further environmental review analysis as required by CEQA. AVAILABILITY OF COMMUNITY FACILITIES AND SERVICES The IS/ND determined that the Fifth Amendment would not have significant impact on public facilities including fire protection, police protection, schools, and parks. The proposed Amended and Restated Plan provide that any redevelopment activity is subject to, and consistent with, the policies set forth in the City's General Plan, Zoning Ordinance, and local codes and ordinances, as they now exist or are hereafter amended; the General Plan incorporates policies to mitigate impacts on public services and facilities. Implementation of the proposed Amended and Restated Plan and their proposed projects are expected to improve the City's existing community facilities and services. The proposed Amended and Restated Plan will allow the Agency to utilize tax increment revenues to provide for the upgrading of existing, and construction of new, community facilities, which will be of benefit to the Project Areas. AFFECT OF SCHOOL POPULATION AND QUALITY OF EDUCATION The Added Area consists of three (3) parcels that are zoned for High Density Residential (RH). One of the parcels is comprised of a 73 unit apartment complex with 72 income restricted units that are occupied by very low and low income senior and handicapped households. The adjoining parcels are vacant. The Agency intends to substantially rehabilitate 72 income restricted units apartment complex and continue to rent the units to very low and low income senior and handicapped households, and to construct affordable housing for low income residents 55 years and older, and handicapped residents on the adjoining parcel. The existing manager's unit along with the community center will be demolished and replaced with new community amenities. One of the 68 units constructed will be designated for as a manager's unit. The Amended Project Area is served by the Desert Sands Unified School District ("Desert Sands USD") and Desert Community College District. It is projected to be only two school -aged children in the Added Area; therefore, the Agency anticipates no impact on grades 5-12 schools. The Agency has existing pass through agreements with Desert Sands USD and Desert Community College District. The existing pass through agreement with Desert Sands USD provides that the Agency shall retain 50% of the tax increment revenue generated by Desert Sands USD's 37,16% property tax levy and the remaining 50% is paid to Desert Sands USD. The existing pass through agreement with the Desert Community College District provides that the District receive 50% of the tax increment revenue generated by the District's 7.72% property tax levy. The Added Area will only be used for the construction and rehabilitation of low or moderate income housing and will not be included to collect tax increment. Therefore, the Fifth Amendment does not alter the allocation of property tax payments made to these agencies. 24 4 108 LA QUINTA REDEVELOPMENT PROJECT AREA NO. 2 Redevelopment Agency of the City of La Quinta PROPERTY TAXES AND ASSESSMENTS The Redevelopment Plan call for various methods of financing their implementation. Because redevelopment agencies do not have the constitutional authority to impose taxes, implementation of the proposed Amended and Restated Plan will not cause an increase in property tax rates. Rather, the principal method of financing redevelopment will be the utilization of tax increment revenues generated by the Project Area. Tax increment financing reallocates property tax revenues generated by increases in the assessed value of property in the Project Area. Although redevelopment of the Project Area will increase the assessed valuation, the property owners in the Project Area will not experience increases in property taxes beyond those normally allowed by other state law and state constitutional provisions. LOW AND MODERATE INCOME HOUSING PROGRAM Number of Dwelling Units Housing Low and Moderate Income Households Expected to be Destroyed or Removed by Redevelopment of the Added Area The Added Area contains a 73-unit apartment complex with 72 of the units income restricted and occupied by very low and low income senior and special needs households. The Agency intends to substantially rehabilitate these units. Households may be temporarily displaced during the substantial rehabilitation process but these units will not be destroyed or removed by implementation activities. Number of Persons and Families of Low and Moderate Income Expected to be Displaced by the Redevelopment of the Added Area There are 97 very low and low income individuals that reside in the Added Area. The substantial rehabilitation of the existing 72 income restricted units apartment complex may temporarily displace these individuals. General Location of Replacement Low and Moderate Income Housing to be Rehabilitated, Developed and Constructed The Agency is required by the CRL to replace within four years, by a variety of means, any low and moderate income dwelling units removed by a project. A commitment to do so is contained in Section 531 of the proposed Amended and Restated Plan. Construction of replacement low and moderate income housing will be dependent upon land availability, market conditions and availability of funds. Number of Dwelling Units Housing Persons of Low and Moderate Income Planned for Construction or Rehabilitation Other than Replacement Housing Based upon the projections contained in the Agency's FY 2004-05 to 2013-14 Housing Compliance Plan Update for the Project Areas, the Agency must secure 2,307 affordable units of which 925 must be affordable to very low income households. At the end of FY 2008-09, the Agency has secured 1,052 affordable units in the Project Areas, of which 558 are affordable to very low income individuals and households. This leaves the need to secure an additional 1,255 affordable units and 367 very low income households in the Project Areas. Projected means of Financing Rehabilitation and New Construction of Housing for Low and Moderate Income Households The Agency intends to utilize not less than 20 percent of its tax increment revenues to finance the rehabilitation, construction and purchase of, and mortgage assistance to, housing for low and moderate income households, in accordance with the provisions of the CRL as it now exists or may hereafter be amended. The Agency will also cooperate with the City to pool funds and resources beyond the tax 25 log LA QUINTA REDEVELOPMENT PROJECT AREA NO. 2 Redevelopment Agency of the City of La Quinta increment set aside funds if it is determined to be necessary by both legislative bodies in order to improve the City's affordable housing stock. Projected Timetable for Meeting the Redevelopment Plans' Relocation, Rehabilitation and Replacement Housing Objectives The substantial rehabilitation of the existing 72 income restricted units and new construction 68 units will be completed in phases to avoid the permanent displacement of existing households. The Agency anticipates to initially construct 26 units of which two (2) of the units will be for the property manager and maintenance personnel and 24 units will be used for the temporary relocation of households. The existing units would be substantially rehabilitated in groups of 24 units at a time. The households residing in these units will be temporarily relocated to the newly constructed 24 units until substantial rehabilitation is complete. The remaining construction of 42 new units is unknown at this time. Summary of Agency's Consultations with Affected Taxing Entities and Response to Said Entities Concerns Regarding the Plan Section 33352(n) of the CRL requires a summary of the agency's consultations with affected taxing entities, or the agency's attempts to consult with the taxing entities, and the agency's response to any written objections or concerns. On September 15, 2010, the affected taxing agencies and the State Board of Equalization were sent a Statement of Preparation for the Fifth Amendment. As part of the mailing, the Agency offered to consult with the affected taxing entities pursuant to Section 33328 of the CRL. On December 1, 2010, the affected taxing entities were sent a copy of the Amended and Restated Plan. As part of this mailing, the Agency again offered to consult with the affected taxing entities pursuant to Section 33328 of the CRL. In accordance with Section 33452 of the CRL, the Agency transmitted notice of the joint public hearing via certified mail, return receipt requested, to the governing body of each affected taxing entity on December 1, 2010. 27 `�•- - 111 Appendix A Amended Fourth Five Year Implementation Plan Fiscal Years 2009-10 Through 2013-14 (f'? ---- ---- - -- ---- ---- - - - --2-8 --- 112 AMENDED FOURTH FIVE YEAR IMPLEMENTATION PLAN LA QUINTA REDEVELOPMENT AGENCY Fiscal Years 2009-10 THROUGH 2O13-14 Prepared by: J INTEI LIGENt COMMUNITY OEVELOVNEXt TABLE OF CONTENTS INTRODUCTION................................................................................................................................. 3 LegalAuthority.................................................................................................................................................................. 3 ImplementationPlan Objectives................................................................................................................................ 3 DocumentOrganization................................................................................................................................................ 4 WHAT IS REDEVELOPMENT?..........................................................................................................5 The Public Value & Benefits of Redevelopment...................................................................................5 BLIGHT... .... ...................................................................................................................................................................... __ 5 TAX INCREMENT FINANCING ................... ............ ......... -......................... ....................................... ................. - ....... 6 20 Percent Low and Moderate Income Housing Set -Aside Fund..............................................................6 Pass -Through Payments............................................................................................................................7 Rtnta TnkP=%AKOVC — AFRAF Pavmcntc ___...........................7 WHAT IS A REDEVELOPMENT PLAN? ..... ......................... :................................. .................................................... 7 ABOUT THE AGENCY & PROJECT AREAS....................................................................................9 ACCOMPLISHMENTS........................................................................................................................12 REDEVELOPMENTPLAN GOALS...................................................................................................15 REDEVELOPMENT WORK PROGRAM...........................................................................................17 REDEVELOPMENT (NON -HOUSING) CASH FLOW....................................................................23 INTRODUCTION...............................................................................................................................26 Affordable Housing Work Program .................................................. -................................................................ .... 27 AFFORDABLE HOUSING COMPLIANCE......................................................................................32 Blueprint for Agency Housing Activities.............................................................................................32 HOUSINGPRODUCTION ..... ...... ..-............................................ .............. .................................................................... 32 REPLACEMENT HOUSING.., .................. ................................. ..................... ............... _ ........................................... 37 HOUSING PROGRAM CASH FLOW ANALYSIS.................................................................................................38 Expendituresby Household Types.........................................................................................................................38 PRIOR FIVE-YEAR HOUSING FUND EXPENDITURES ........... ................................................ - ............ ......... ...41 Units Assisted by Housing Fund............................................................................................................. 41 Housing Units Constructed During Prior Implementation Plan Without Housing Funds ......................... 41 APPENDIX1......................................................................................................................................44 Summary of Pass Through Agreements.............................................................................................. 44 ProjectNo. 1.....................................................................................................................................................................44 Coachella Valley Mosquito Abatement District....................................................................................... 4 Coachella Valley Unified School District................................................................................................. 44 CoachellaValley Water District............................................................................................................... 44 County General Fund, Library, and Fire Districts.................................................................................... 45 Desert Community College..................................................................................................................... 45 Desert Sands Unified School District...................................................................................................... 45 StatutoryPass Through Payments......................................................................................................... 46 ProjectNo. 2.....................................................................................................................................................................47 Coachella Valley Community College District......................................................................................... 47 Coachella Valley Mosquito and Vector Control District........................................................................... 47 Coachella Valley Recreation and Park District ..... ............... -........................... ..... .......... ...... .................. 47 Coachella Valley Water District............................................................................................................... 4i a...0 _ 114 Countyof Riverside................................................................................................................................. 47 Riverside County Superintendent of Schools.......................................................................................... 47 Desert Sands Unified School District...................................................................................................... 47 Statutory Pass Through Payments......................................................................................................... 47 APPENDIX2......................................................................................................................................49 Redevelopment Project Inventory........................................................................................................49 APPENDIX3......................................................................................................................................50 Glossaryof Housing Terms....................................................................................................................50 Durationof Affordability Covenants..................................................................................................................... 50 Affordability Income and Cost Levels....................................................................................................................51 .. J, 115 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 Amended 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 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). This Implementation Plan amends the Implementation Plan that was adopted on January 19, 2010. LEGAL AUTHORITY In 1993, the Legislature passed Assembly Bill 1290 (Chapter 942, Statutes of 1993), which enacted the California Community Redevelopment Law Reform Act and made sweeping changes to state redevelopment law (Health and Safety Code §§33000 et seq.) ("CRL"). The Legislature passed this legislation as part of a major effort to increase both the effectiveness and accountability of redevelopment agencies. One notable change was the addition of Article 16.5 (§§33490 et seq.) to the CRL, which required redevelopment agencies to adopt five year implementation plans for all project areas on or before December 31, 1994, and every five years thereafter. CRL Section 33490(a) requires that an implementation plan present: • The redevelopment agency's goals and objectives, programs, and projects within the project areas for the next five years, including estimated expenditures, • An explanation of how the goals and objectives, programs, projects, and expenditures will eliminate blight and promote affordable housing within the project areas, and • A separate section that addresses the redevelopment agency's affordable housing responsibilities, including an agency's projected low and moderate income housing fund expenditures and plan to produce and/or replace affordable housing. Given these required contents, an implementation plan serves as more than just a compliance document that only adheres to the CRL's legal mandates. An implementation plan also affords the opportunity to thoughtfully craft a purposeful and deliberate strategy that guides redevelopment agency investment 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. «. 116 Provide educational and informative background about the Agency's role, powers, and tools and a historical overview of the Agency. 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 and 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. ' 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. Ell 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 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 303,946. Full and part time jobs created in just one year (Fiscal increment revenue - issuing bonds to raise investment capital, Year 2006-07). buying and selling property, investing in public infrastructure and facilities, and creating affordable housing opportunities. 78,750 units of affordable Redevelopment allows local governments to eliminate physical housing built or rehabilitated since by redevelopment and economic blight in a designated redevelopment project agencies.es. area. A redevelopment project area is established when an area exhibits conditions of both physical and economic blight 18,522 units of low and moderate (§§33030 and 33031) as described below. income housing expected to be built or refurbished over the next two years. BLIGHT $2 billion. State and local taxes The CRL emphasizes redevelopment's role in eliminating generated through blighting conditions and defines blight as physical and 9 9 9 P Y redevelopment construction ' economic liabilities that affect the health, safety, and general activities in Fiscal.Year 2006-07. welfare of a community. CRL Section 33030 describes a blighted area as being predominantly urbanized and 20% of property tax revenues substantially affected by detrimental physical and economic generated from redevelopment activities must used to conditions to such an extent that the community cannot o increase supply of affordable reasonably be revived without redevelopment. The physical housing. and economic conditions that cause blight as defined as follows: 2nd largest (under of affordable housing in California after the Physical Conditions (CRL §33031(a)) federal government. • Buildings with serious code violations, dilapidation, or deterioration such that it is unsafe or unhealthy for a person to live or work. • Conditions that prevent or substantially hinder the viable use or capacity of buildings or lots. • Adjacent or nearby incompatible uses that prevent development. Source: California Redevelopment • Existence of subdivided lots that are in multiple Association, 2009. ownership and whose physical development has 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 that have led to problems of public safety and welfare. • A high crime rate that constitutes a threat to the 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 taxes will be generated. When a redevelopment ant project area is adopted, the current assessed values of all the properties within project area boundaries are designated as the base year value a t .k (§33328). As assessed values increase, tax increment revenue is generated from the growth in property values over the Figure 1 - Tax Increment Financing base year 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 then charged 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 6 p."' 119 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. 1 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 -through 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 prior pass -through agreements with the Agency. The CRL establishes set formulas for statutory payments. Appendix 1 contains a summary of Agency's pass -through agreements and 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 include the 20 percent Housing Fund deposits. State Takeaways - SERAF Payments As in prior State fiscal crises, the 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 2009-10 and 2010-11. 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 $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 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. 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 7 a,�.• 120 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 ("Original Area') which was adopted in 1989, and also amended several times since adoption (collectively referred to as the "Redevelopment Plans"). The Fifth Amendment for Project No. 2 was adopted on , to 12.42 acres to Project No. 2 ("Added Area'). es,.. 121 ABOUT THE AGENCY & PROJECT AREAS History and Profile The area of La Quinta first emerged in the early 1.8th 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, facilitate economic development, expand recreation opportunities, and revitalize the La Quinta Village. Project No. 1 is bounded by 50`h Avenue to the north, Avenida Montezuma to the west, 601" Avenue to the south, and Jefferson and Madison Streets to the east. The Original Area of Project No. 2 was established in May 1989 to remove 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 Fred Waring Drive to the north, Washington Street to the west, 501" Avenue to the south, and Jefferson Street to the east. On , the Added Area was added to Project No. 2 to increase and improve the community's supply of affordable housing. The Added Area is located east of Washington Street and south of Hidden River Road. The Project Areas are shown on the following map. 9 122 ..' i ';k u a -am. N7, �n� �? a ee • � ,� �. LA OUINTA REDEVELOPMENT PROJECT AREAS NOS. 1 & 2 10 123 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 Expires November 2024 Incur Indebtedness No time limit Repay Indebtedness/ November 2034 Receive Tax Increment Eminent Domain Expired March 2007 PROJECT NO. 2 ORIGINAL AREA Redevelopment Plan Adopted May 1989 Expires May 2030 Incur Indebtedness No time limit Repay Indebtedness/ Expires May 2040 Receive Tax Increment Eminent Domain Expired May 2001 PROJECT NO. 2 ADDED AREA Redevelopment Plan Adopted February 2011 Expires February 2041 Incur Indebtedness No time limit Repay Indebtedness/ No Tax Increment Receive Tax Increment' Eminent Domain No Authority ' The Agency many not receive tax increment pursuant to Section 33676 of the CRL. „••.- 124 ACCOMPLISHMENTS Achievements in Communitv 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 been 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 and Redevelopment Agency staff will continue to work on the retention, expansion, and recruitment of auto franchises in the existing Auto Center and other Highway 111 properties. To date several opportunities are currently being investigated. Wolff -Waters. Located in Project No. 2, Wolff Waters is a multi -family complex that features rents affordable to very - low and low income family households. This 218 unit complex is located northwest of the intersection of Avenue 48 and Dune Palms Road. The design and development program embraced sustainable design and construction materials/practices, and the development may be eligible to achieve LEED Silver certification. The complex opened in December 2009. There are 1,200 persons on the residency waiting list. Village Access. The Village is the prime commercial district in Project 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, given that La Quinta is a golf -oriented community, the Agency recently implemented the Phase I Golf Cart Plan. This 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. 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, construction, and retention of .a non- profit management company. . . o , �...' 125 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. 13 126 SECTION II: REDEVELOPMENT IMPLEMENTATION PLAN 14 ""-'j 127 REDEVELOPMENT PLAN GOALS 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, and recreational development. Improve Public Infrastructure and Facilities. Improve public facilities and public infrastructure. Improve inadequate drainage infrastructure. Improve and/or provide electric, gas, telephone, and wastewater infrastructure to both developed and ACCESS undeveloped properties. Expand Commercial Base. Expand the Project Area's Commercial Base by working with property owners along commercial corridors to enhance the business p environment, and encouraging private investment through capital improvements INVEST and public facilities. Promote Job Growth. Promote local job opportunities by facilitating private II<' investment in commercial areas. WORN Ensure Quality Design and Development. Implement design and use standards 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 development, 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. COLLA BOP Alt 15 0 0 128 I Project No. 2 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. Eliminate Blight. Remedy, remove, and prevent physical blight and economic obsolescence through implementation of the Redevelopment Plan. Improve Public Infrastructure and Facilities. Improve and/or provide electric, gas, telephone, water, and wastewater facilities to both developed and subdivided undeveloped properties within the Project Area. Address inadequate street (a11 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 by private enterprise acting alone. O Expand Commercial Base. Expand the commercial base of the community. u Provide for the expansion, renovation and relocation of businesses within the Project 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 depreciating property values and impaired investments. Ensure Quality Design and Development. Upgrade the general aesthetics of the commercial enterprises to improve their economic viability. PRESERVE 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. Housing for All. Promote the rehabilitation of existing housing stock. Increase, °>o improve, and preserve the supply of housing affordable to very low, low and moderate income households. 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O w L w O F a T p N N w c 7 c C rn w c m o w w �-0 o>,E= ZU > O N N 0 O w w o a o 0 2 n o cci E m a Y C L L G C O a .aF�'mmN@ w: n�m(D .o=0c`6ic3m C U N w a 2 J E C C m 7 T 0 p _ N N N `m o 0E 3 Y M a >m CD d o na 0 E_ 4)wa�E aE_o rnin� 00 c 0a o 3 L N m o rn w 0 N O OI C a C 134 rt 0 0 L a Y O 3 w E a O w w v N ® [§/{ \/ \) 7© ME } ®»&®!r®a «wfW=Ca0 a12!>2««;r®;« `§:eg=»f=, ,l�ela� e�. e!,-:�r * k/�(+{)�%)k��))-k2}/\*0(®2- �(60 ZAc&o ` t�«�r\-=w°0\CD e \0CD /§ - -_ \�}W,o `Co °`�f§ ®ff§w k = - �)�,3 -- -O(F5 - ; If:(Vm -w`��k± `��^� lwt��2± 2 k0> - l2a�±�a [®0W- {Zf#}�±-© ( �j/\§,{\)�]|\=�)i\§w Ezz= ©ir|m0 > §\){`\)ae/_$,[2;>a -sE[ cm - - t 2 \ !»!*`®°^e°`«\2&0 : ;©Gafl/BE)-7'-2 �k{{)();) ])!)/\37E[�al24&5w7e§=I7= o n ] 135 REDEVELOPMENT (NON -HOUSING) CASH FLOW Five Year Work Plan Budget 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 zero percent 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 would lead 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 implementing its projects and programs. Due to the State's effort to take redevelopment funds to balance 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 SERAF 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 payment; the remaining $13,582,367 will be funded from reallocating capital projects and debt service funds, and available 2010-11 non - housing tax increment revenue. The Agency 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 N' 136 Five Year Cash Flow Forecast - Project No. 1 Debt Service & Ca ital Projects Funds TABLE 3 FISCAL YEAR r• r 2010AITotal Beginning Balance (July 1) E69,113,834 i S50,698,267 $31,614,221 7TVI,448,528 1 L12,591,103 54,169,600 55,469,671 57.133,761 58,647,774 60.613,208 REVENUES Tax Increment 10,00Q000 58,84f,7741 60,613,208 General Fund Loan Proceeds $296,234,014 TOTAL REVENUES 64,169,600 II TOTAL FUNDS AVAILABLE E1T4,283,434 E106,167,938 E88,647,984 580,296,302 573,304,311 10,833,900 10,033,900 11,158,917 11,493,685 856,158,898 EXPENDITURES Housing Set Aside Taxing Agency Payments 20,632,818 20.599,515 20,615,869 20,618,321 2,620,823 0,620,823 E103,087,745 Bond Debt Service 9.886,421 9.885,959 9,885,720 9,886,679 9,886,756 $49,431,635 City Hall & Contract Payments 757,633 756,625 757,882 770,326 782,703 $3,825,170 General Fund Loan Interest Payments 1,720.000 1,720.000 1,720.000 1.720,000 1,720,000 SERAF Payments 23,582.367 2,648,961 4,850,687 2,701,940 2.755.979 2,811,099 2,867,321 E$8,600,000 64 $13,785,299 Administration/Operating Expenses ProgramslProjects 3,523,068 23,305.089 20,305,089 20,305,089 18.010,511 $85,448,845 TOTALEXPENDITURES 73,585,167 74,663,716 67,199,456 67,605,199 65,726,609 $348,770,146 ENDING BALANCE $50,698,267 E31,514,223 $21,448,528 512,691,103 E7,577,702 Five Year Cash Flow Forecast - Project No. 2 Debt Service &Capital Projects Funds TABLE 4 r9 r t FISCAL YEAR 20Beginning Balance (July 1) $20,274,630 1 $17,26d,510 574,875,415 515,890,789 $17,406,574 REVENUES Tax Increment 28,339,800 28,339,800 29,189,994 30,065,694 31710,BBJ TOTAL REVENUES E28,339,800 528,139,800 E29,189,994 530,065,694 E31,710,887 E147,646,175 TOTAL FUNDS AVAILABLE E48,614,430 545,604,310 E44,065,409 $45,956,483 $49,117,461 5,668,000 18,208,992 419,550 306,240 1,000,000 700,000 1,319,393 3,727,745 31,349,920 5,668,000 18.165,820 418,272 305,814 1,000,000 700,000 1.345,781 3.125,209 30,728,895 5,838,040 18,215,820 416,738 306,117 1,000,000 700.000 1,372,696 325,209 28,174,620 6,013,181 16,579,294 419,819 312.265 1.000,000 700,000 1,400,150 125209 28,549,909 6,193,576 1B,950,018 417,516 318,528 1,000,000 700,000 1,428,153 - 29,007,791 E92,119,934 $92,119,934 $2,091,896 S1,548,964 $3,500,000 $6,866,174 E7,303,371 $147,811,131 EXPENDITURES Housing Set Aside Taxing Agency Payments Non -Housing Bond Debt Service City Hall & Contract Payments General Fund Loan Interest Payments Hwy 111 General Fund Loan Payment Administration/Operating Expenses Programs/Projects _ TOTAL EXPENDITURES ENDING BALANCE 577,264,570 E14,875,415 E15,890,789 517,40fi,574 E20,109,670 24 137 SECTION III: HOUSING COMPLIANCE PLAN UPDATE zs 138 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 planning period (Fiscal Years 2004-05 to 2013-14) ("Compliance Period"). The Agency is required to allocate 20 percent of the tax increment revenue it receives from the Project Areas to increase and improve housing affordable to very 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 all 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 of these affordable dwellings must be affordable to very low income households. If the Agency directly develops affordable 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: • Housing Production — The Agency must ensure that a percentage of the housing units constructed or substantially rehabilitated by the Agency or the private sector within the Project Areas are affordable to very low, low and moderate income households. • Replacement Housing — The Agency 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. • Expenditures by Household Types — The Agency must comply with certain proportionality requirements in their 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. al 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 Agency purchased the Washington Street Apartments, located at Washington Street and Hidden River Road, in 2008- The property's 72 of the 73 units are currently restricted to very low income seniors and special needs residents pursuant to previous financial assistance from the federal government, acting through the Farmer's Home Administration, United States Department of Agriculture. The Agency plans to substantially rehabilitate the units and record additional affordability covenants in compliance with the CRL. The Agency also plans to develop a new multifamily housing complex on two adjacent vacant lots with approximately 83 low income units. These sites are located in the Added Area of Project No. 2 LIVE 2009-10 to $24,252,458 2013-14 3 Costs are subject to change, and completion of these projects may require future action by the Agency- 4 The Report to the City Council for the Fifth Amendment to the Redevelopment Plan for La Ouinta Redevelopment Project Area No. 2 indicates approximately 68 units will be constructed based and an Agency expenditure of $24,252,458 based on the most current site plan from the time the Report was written. This project is in the design phase and number of units and Agency expenditure is subject to change. This project will be updated during the Mid-term Review. 27 140 Proposed Affordable Housing Projects and Programs ProjecVDescn peon Dune Palms/Highway 111: The Agency purchased a 19.5 acre site in 2007 with the 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 environmental review and entitlement processes; the developer, the Shovlin Companies, is currently designing the multi- family housing component. The Agency anticipates concluding an affordable housing agreement by the second quarter of 2010. 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. CentrePointe: The Agency has an affordable housing agreement that requires this 9.45 acre site to be developed with 40 moderate income single family units. The developer has not been able to secure financing and is currently generating alternative affordable housing development proposals. The Agency anticipates receiving these proposals from the developer during the first quarter of 2010, and will then evaluate their financial feasibility. If a viable financing option is identified, the Agency will proceed to renegotiate the affordable housing agreement to accommodate the new housing configuration. This property is located in Project No. 2 TABLE 5 $27,250,000 a 2009-10 to 2013-14 LIVE ' 2009-10 to To be '",:P; 2013-14 determined LIVE Proposed Affordable Housing Projects and Programs TABLE 5 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. u The Village Live -Work Housing: The Agency purchased this 35,000 square foot parcel in 2007 and is currently preparing site plans to evaluate the feasibility of developing 32 loft dwellings. It is also exploring expanding this site to include the adjoining 15,000 square foot parcel. The goal is to develop live -work dwellings that would be affordable to moderate income households. This site is located in Project No. 1. y 2009-10 to $g 150XIC) '"t 2013-14 Live 02009-10 to $4,350,000 2013-14 Live 29 142 Proposed Affordable Housing Projects and Programs TABLE 5 f y y t �1 ha n Fnreclnsed 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 income family households. If the dwellings are sold, the Agency will provide silent second trust deed mortgage loans to insure affordable housing costs. If market conditions limit 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. Approximately five homes may be rehabilitated through this program. ❑ La Quinta Rental Housing Program Landscape Improvements: The Agency purchased dilapidated single family homes in Project No. 1; 25 of the original 50 homes remain in the Agency's inventory. In order to receive housing credit, the Agency has been substantially rehabilitating these units and then selling them to very low and low income family households. As part of this rehabilitation effort, the Agency is installing new landscape materials which will meet or exceed the City's drought tolerant planting palette. 30 2009-10 to 2013-14 $3,200,000 LIVE A2009-10 $40,000 LIVE ".' . 143 Proposed Affordable Housing Projects and Programs TABLE 5 ''yy °+.' w a �* id'r��''}��tr• e a "yy'�,, y ,�an L',: Xd as i+ i '�bsr bk �� to .. nib °A �0� wVlf.4" ➢ � � x.A FPS ��'i 5®.� d..�n w .ea '."�a ❑ 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 continue to seek land acquisition opportunities in the Project Areas. Declining vacant land values and abandoned housing developments are generating new properties within the residential and commercial districts that may accommodate multi -family and mixed -use affordable housing. 31 ' c 2009-10 to $500,000 Y" 2013-14 LIVE ' 2009-10 to i'� $22,000,000 :eA 2013-14 LIVE 144 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 mandated by Sections 33413(b)(4) and 33490(a)(2) and (3) of the CRL. Specifically, it presents a forecast of the number 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. 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 any required approval of a specific program, project, or expenditure from community or the Agency. The 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. HOUSING PRODUCTION Since 1976, redevelopment agencies have 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 and substantially 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 required to be available 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 to each dwelling unit created or substantially rehabilitated unless so required by an agency. Appendix 3 provides a glossary of terms related to affordable housing covenants, affordability limits, and inclusionary unit satisfaction. . The Inclusionary 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 estimated the total number units that will be constructed or substantially rehabilitated in the Project Areas and applied the formulas outlined in the CRL. The following inclusionary housing analysis takes into account all residential construction or substantial rehabilitation that occurred within the Project Areas since their 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 a... ; 145 TABLE 6 inclusionary mousing vongauun IS..._ -x `� 4p4 Y• 4R ,Y. �%�I J.. ,t �e W R '\� #..Y {'jl>•�7 ryU_.►�YVImyL�J I:WIYJ „ rf4� "�P 'C 1 e ,,Aq 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) 963 385 Total Units' 2,568 3,852 6,420 Compliance Period 2004-05 through 2008-09 (Actual) 125 Total Units' 910 970 1,880 0 80 80 306 2009.10 through 2013-14 (Projected) 57 Total Unitsz 500 451 951 0 0 0 143 Next Compliance Period (First Five Years) 2014-15 through 2018-19 (Projected) 10 Total Units3 42 120 162 0 0 0 24 Remaining Plan Duration 2019-20 through 2024/2030 (Projected) Total Units 942 140 1,082 0 0 0 162 65 Total Redevelopment Plan Duration 2,307 925 _:.-5 Ft 786 6A37 15.223 0 80 8D utal UIIIW ' Units built or substantially rehabilitated in the Project Areas as reported by the La Quinta Planning Department, 7 Units predicted based on entitled vacant land. 3 Units predicted based on potential building activity on unentitled vacant land. 4 Units predicted based on potential build out on vacant land zoned for residential use. s The total number of units anticipated to built in the Project Areas during the duration of the Redevelopment Plans is greater than what was predicted when the Third Implementation Plan was adopted in 2005. This is due to a land use change on several commercial parcels to residential uses and a development program that was revised to build condo units instead of hotel units. Note: Numbers may not appear to add correctly due to rounded decimals As Table 6 shows, residential development projected throughout the duration of the Redevelopment Plans is estimated to generate a need for 2,307 affordable income restricted units, including 925 very low income units. 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 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 <... 146 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. 34 147 __ o-,.,a....#;__ TABLE 7 Prior to 2004 Adoption tnrougn ivus-94 (Actual) - - 1994-95through 2003-04 (Actual) 562 259 Seasons 91 45 Stockman 11 8 Williams 16 6 Cove Rental Housing (Sold & Unsold) 50 44 CVHC - Cove Homes 7 5 Building Horizons 16 0 Agency Acquisition/Rehabilitation 1 0 Second Trust Deed Program 101 0 Mira Flores Single Family 23 0 Residential Rehabilitation Program 4 1 MiraFlores Multifamily 118 70 Aventine 20 0 Mountain View 14 0 Hadley Villas 80 80 Compliance Period 2004-05through 2008-09(Actual)' 500 299 Building Horizons 3 1 Second Trust Deed Program 48 1 Residential Rehabilitation Program 2 2 Watercolors 149 0 Vista Dunes 80 79 CVHC Wolff Waters 218 216 2009-10through 2013-14 (Projected) 475 111 Washington Street3 156 73 DunePalms/Highway 1113 180 36 CentrePointe 40 0 Dune Palms/Westward H03 60 0 The Village Live -Work Housing3 - 32 0 Foreclosed Home Rehabilitation 5 0 Habitat for Humanitv _ 2 2 2014-15through 2018-19(Projected)' 400 130 Remaining Plan Duration 2019-20through 202412030' 380 126 [Total Redevelopment Plan Duration 198311989 to 202412030 2,307 925 ' Does not include units from the Silverhawk multifamily development. Covenanted units were lost due to foreclosure. 2 Target housing production figures required to meet production requirements. ' Properties owned and/or controlled by the City Note: Numbers may not appear to add correctly due to rounded decimals. 35 b, 148 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. I Hsin Fulfillment TABLE 8 Inc us ;— onary g 4i "A. , K Prior to 2004 Total Units Required (Adoption through 2003-04) Total Units Produced (Adoption through 2003-04) Remaining Need as of June 30, 2004 Total Units Required (Adoption through 2003-04) Total Units Produced (Adoption through 2003-04) Remaining Need as of June 30, 2004 1,672 552 1.120 669 259 410 Compliance Period Total Units Required (2004-05 through 2013-14) 449 182 Total Cumulative Units Required (Adoption through 2013-14)' 1,569 592 Total. Units Produced (2004-06 through 2013-14) 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) 24 10 Total Cumulative Units Required (Adoption through 2018-19)' 618 191 Total Units Produced (2014-15 through 2018-19) 400 130 Remaininn Need as of June 30, 2019 218 61 Total Units Required (2019-20 through 2024/2030) 162 65 Total Cumulative Units Required (Adoption through 2024/2030)' 380 126 Total Units Produced (2019-20 through 2024/2030) 380 126 Remaining Need at End of Plan Duration - Total Redevelopment Plan Duration (198311989 to 2024/2030) Total Units Required 2,307 925 Total Units Produced 2,307 925 Remaining Need ' Equals sum of remaining need from prior period plus total units required from current period 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 %... 1 q� 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 in the Project Areas. According to Agency records, no affordable units were destroyed in the Project Areas from the adoption of the Redevelopment Plans through June 30, 2004. From July 1, 2004, through June 30, 2009, records show that 92 very low income units were destroyed at the Vista Dunes Mobilehome Park. These units were replaced by 79 very low income multifamily units at the same site and 216 very low income multifamily units at the Wolff Waters development, creating a surplus of 203 very low income units. In all, from adoption of the Redevelopment Plans through June 30, 2009, there were a total of 206 more affordable units produced than were destroyed in the Project Areas. Summary of Replacement Units v Demolished Units TABLE 9 I i+�J _ (I�EfuZ3Nliim Throuah 6/30/2004 Demolished 0 0 0 0 Replaced 0 Armluc (17wfmin 0 Through 6/30/2009 Demolished 92 193 UZ 0 Vista Dunes MHP 92 193 92 Replaced 298 740 295 3 Vista Dunes Multifamily 80 174 79 1 CVHC Wolff Waters 218 566 216 2 Surplus (Deficit) _ 206 547 203 3 Cumulative Surplus (Deficit) Through June 30, 2009 206 547 203 During the remainder of the Compliance Period, the Agency anticipates that one project will result in the temporary displacement of 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. 37 150 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 TABLE 10 ig � •• _ iR r. .. 11' 1 _ 1 1 9' LtAlV91D U'nL✓Y•� BEGINNING BALANCE (July 1) $30 816,669 $33,341,3831 $26,061,557 I $10,396,679 $518,417 REVENUES Housing Set Aside 16,501,900 16,501,900 16,996,957 17,506,866 18,032,072 E85,539,695 $5,139,000 Other Income 1.281.1001 1,281,100 1 792,900 765,700 ;A8,272,5661 1,018,200 E19,050,272 590,678,fi95 TOTAL REVENUES $17,783,000 1 $171783,000 I TOTAL AVAILABLE FUNDS $48,599,669 1 $51,124,3831 543,851,414 I 528,669,24 $519,568,689 EXPENDITURES Deb[ Service 6,390,291 6,390,333 6,383,502 6,379,595 1,949,472 $27,493,193 General Fund Reimbursement 1,179,905 1.099,403 1,099,403 1,099,403 1,036,762 721,830 $5,514,876 $3,736,670 Contract/Miscellaneous 798,090 6,890,000 773,090 16,800,000 721,830 25,250,000 721,830 19,950,000 14,800,000 813,690,000 Programs/Projects TOTAL EXPENDITURES E15,258,286 525,062,826 E33,454,735 E28,150,828 E18,508,064 5120,434,739 ENDING BALANCE E33,341,383 526,061,557 510,396,679 E518,417 $13060,625 EXPENDITURES BY HOUSEHOLD TYPES Effective January 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 very low and low income housing, and in proportion to the low income population under the age of 65. The 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 38 .... 151 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." 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 to the new age targeting requirement. Table 11 presents the minimum Housing Fund expenditure thresholds for very low and low income units, as well as the maximum housing expenditure thresholds for age -restricted units over the two different time periods discussed above. TABLE 11 Yroporuufldl CAIJCIIUILUIG f�Glluu cu. c..a C a' 1 1 1 "@'ue t e° 1 1 1. 9 1 t' ey., t v �� a. 1 1 1 • RHNA Targeting g g RHNA Targeting Income Level Allocation Requirement Allocation 2006- Requirement 1998-2005 (% of Total) 2014 (Units) (%of Total) (Units)' Very Low (min) 178 37% 1,065 a 41 /o Low (min) 103 22% 724 28% Moderate/Unrestricted max 196 410/0 796 31° a 100% 477 100% 2,585 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 -Restricted max 2 3,173 13% 595 27% 23,694 100% 2,203 100% ' Southern California Association of Governments Regional Housing Needs Assessment 2 Age -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). ' "Age -restricted" means any housing unit that is not available to all persons regardless of age. 39 152 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. Proportional Expenditure Fulfillment TABLE 12 ry 2001-02 to 2004-05 (Actual) Second Trust Deed 53,673 4,734,124 1.756,071 - - 166,045 6,543,568 826,429 Cove Rental Housing Program 826,429 - 25,590 12,795 46,930 37,795 85,316 Residential Rehabilitation Assessment/Sewer Subsidy 127,246 55,336 66,294 - 248,877 Building Horizons - 169,500 137,750 307,250 276,411 Mountain View - 276,411 - - 1,087,000 1,087,000 Hadley Villas 1,087,000 - 17,438 8,719 17,438 Miraflores Watercolors - - 558,643 3,329,444 3,888,087 3,888,087 Vista Dunes 6,968,893 88,214 - 7,057,107 8,845,000 CVHClWolff Waters 8,763,853 - 81,147 - Total 17,852,685 5,530,398 5,799,698 5,187,646 29,182,782 % of Total 61% 19% 20% 18% 100% %Re aired 37%min. 22%min. 41%max. 13%max. 2005 06 to 2008-09 (Actual) Second Trust Deed 575,501 638,001 85,500 85,500 - 1,299,002 331,050 Cove Rental Housing Program 322,338 8,712 - 191,050 Building Horizons 95,525 - 95,525 - 2,334,922 6,841,878 - 9,176,800 9,176,800 Watercolors Vista Dunes 24,034,341 - 304,232 - 24,338,673 CVHC Wolff Waters 28,519,264 - 264,067 - 4,162,710 28,783,331 9,019,206 Washington St. Prop. Acq. 4,220,526 4,798,680 - - 9,983,222 Shovlin Property Acquisition 5,989,933 3,993,289 - Total 63,757,427 11,773,605 7,591,202 13,425,010 83,122,234 % of Total 77% 14 % 9 % 16 % 100°% 2009 10 to 2013-14 (Proposed) Washington Street (Senior) 8,516,667 9,683,333 - 18,200,000 - 18,200,000 27,250,000 Dune Palms/Highway 111 5,450,000 21,800,000 - Unknown CentrePointe Dune Palms/Westward Ho - 6,000,000 61000,000 - 12,000,000 Village Live -Work - - 6,400,000 - - 6,400,000 4,500,000 Foreclosed Home Rehab - 4,500,000 - 40 000 Rental Housing Program 40,000 500,000 Habitat for Humanity 500,000 - _ 22,00,000 Land Acquisition - 22,000,000 - Total 14,506,667 63,983,333 12,400,000 18,200,000 90,890,000 % of Total 16% 70% 14% 20% 100% 2005-06 to 2013-14 (Actual & Proposed) Total 78,264,094 75,756,938 19,991,202 31,625,010 174,012,234 %of Total 45% 44% 11°% 18% 100% % Required 41 % min. 28% min. 31 % max. 27% max. 40 153 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 - 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 of the Compliance Period. PRIOR FIVE-YEAR HOUSING FUND EXPENDITURES Units Assisted by Housing Fund 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 the past implementation plan period (2004-05 through 2008-09). The CRL also requires a recap of the number, location, level of affordability, and the amount of Housing Funds expended on units available to families with children. Table 13 summarizes these statistics: TARI F 13 Housing Fund Expenditures 2004-05 through 20U8-09 - _ t osw+- UMMOMM " a 1 a �� . ( 44p °•'nY.� d�p'��RaY3 BM Ct'' Second Trust Deed 18 676,801 8 300,800 14 526,401 40 1 504 002 Cove Rental Housing Program 37 322,338 1 a,nz u ----•--- 25,000 Residential Rehabilitation 0 - 0 - 1 25.000 95,525 1 2 191,050 Building Horizons 1 95,525 0 33 - 2,032,446 1 116 7,144,354 149 9,176,800 Watercolors 0 - 0 - 75 3,500.000 75 3,500,000 Silverhawk (Last Units) 0 - 1 392,446 80 31, 102,631 Vista Dunes 79 31.003.234 0 - 2 345,214 218 37,628.331 CVHC Wolff Waters 216 37,283,117 0 - 200 9,983,222 Shovlin Property Acquisition 120 5,989,933 80 3,993,289 0 - 9,019,206 Washington St. Apts. Pro2. Ac . 73 4,220,526 83 4,798 680 0 - 156 Total 644 E 79,691,474 205 E 11,133,927 210 E 12,028,940 959 S 102,461,292 Housin b Housin E - Very Low 9' - Low Inc.. g Moderate Very Low Housing 4 Total Spent on ` Total Housing Affordable Age Category Spent on Inc. Units 'Inc. Spen4on Units Inc. Units' Inc. Units Expenditures Moderate Inc. Units LowUnits Units m _ . - •�r marIMMIMMM Units far Families 471 75,319494 88 a,mr,uaa ,� -- --- Total 544 E 79,591,474 205 E 11,133,927 210 E 12,028,940 959 S 102,461,292 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 inclusionary housing obligations. Housing Units Constructed During Prior Implementation Plan Without Housing Funds Since 2005, no affordable 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). _a 154 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 produced 116 affordable units in Fiscal Year 1996-97. The project has 58 very low income units and 58 low income units. CL 155 APPENDICES 43 156 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. [VaSILx4622093L Coachella Valley Mosquito Abatement District Pursuant to the August 8, 1984, "Settlement and General Release and Cooperation Agreement" between the Coachella Valley Mosquito Abatement District, the City of La Quinta and the Agency, the Mosquito Abatement District is to receive its full 100 percent share of the District's 1.43 percent levy of the net tax increment (net of Housing Fund deposits). The levy shall not exceed 1.43 percent and it is currently 1.38 percent. This pass -through obligation is senior to all bond debt service payments. Coachella Valley Unified School District On April 2, 1991, the Agency and the Coachella Valley Unified School District entered into the "Agreement for Cooperation between the Coachella Valley Unified School District and the City of La Quinta and the La Quinta Redevelopment Agency." This Agreement provides for a fixed series of payments to be made by the Agency to the Coachella Valley Unified School District. The remaining payments are indicated below, Payment Date Amount Payable July 1, 2009 $396,875.25 January 1, 2010 $404,812.75 July 1, 2010 $404,812.75 January 1, 2011 $412,909.25 July 1, 2011 $412,909.25 January 1, 2012 $421,167.25 July 1, 2012 $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 any refunding 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. m .. i 157 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": Fiscal Years Annual Payment 2000-01 through 2002-03 $1,803,705 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 require 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 proceeds. Desert Community College The Agency entered into the "Agreement for Cooperation between the Desert Community College District and the La Quinta Redevelopment Agency" on December 21, 1993. Until Fiscal Year 2005-06, the Agency retained all of the Desert Community College District's ("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 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. Desert Sands Unified School District On December 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 in Fiscal Year 2005-06, the fiscal year following the fiscal year in which the Agency's cumulative tax increment revenues 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. 45 p 158 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 the 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 agencies 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 the first adjusted based year assessed valuation (i.e., the valuation existing as of Fiscal Year 2004-05), plus (B) Starting in the 11th year of payments (i.e., Fiscal Year 2015-16), the payment is equal to the 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 tax increment 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 31st 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. m 159 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 The agreement provides that the Agency shall retain 100 percent of the tax increment revenue generated by the Park District's 2.13 percent property tax levy. This revenue, however, must be expended on identified park -related capital improvements. Due to the 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 District's share of annual tax increment revenue. Coachella Valley Water District The agreement provides that the Water District shall receive 100 percent of the tax increment revenue generated by the Water District's 7.67 percent property tax levy. County of Riverside The Agency's Cooperation Agreement with the County of Riverside provides for full payment of the tax increment revenue generated by the County General Fund (25.53 percent), Library District (2.80 percent), and Fire District (6.02 percent) property tax levies. Additionally, the Agency is paying the County $1.4 million over the next 3 years to reimburse the County for tax increment revenue generated by the County's General Fund property tax levy the Agency retained during the initial years of the Redevelopment Plan. Riverside County Superintendent of Schools This agreement provides that the Superintendent of Schools shall receive 50 percent of the tax increment revenue generated by the Superintendent of Schools' 4.18 percent property tax levy. Desert Sands Unified School 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 47 160 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. � 6d I a„ 162 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 R 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 units 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 restrict 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 in this 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 the purchase of covenants, substantial rehabilitation, and new construction that are located within the boundaries of the Project Areas can be counted on a one -for - one basis. If the units are located outside of the Project Areas they 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. Mutual Self-help Housing: Mutual self-help housing refers 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-help housing 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. DURATION OF AFFORDABILITY COVENANTS Prior to January 1, 2002: for no less than the period of land use controls established in the redevelopment plan. After January 1. 2002: for the longest feasible time, but not less than 55 years for rental housing and 45 years for owner 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 so 163 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 of 60 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. La Quinta Redevelopment Agency 78-495 Calle Tampico La Quinta, CA 92253 (760) 777-7000 Adopted January 19, 2010 Prepared By: 00) INTELLIGENT COM MUNIiY GFVEIO>MEN1 a^ 'i 164 Appendix B Preliminary Plan 29 N".) 16,5 LA QUINTA REDEVELOPMENT AGENCY 78-495 Calle Tampico, La Qulnta, CH 92253 Preliminary Plan Fifth Amendment to the Redevelopment Plan for the La Quinta Redevelopment Project Area No. 2 INTELLIGENT COMMUNITY DEVELOPMENT POSEMOW SPEVACEN GROUP INC T • - N... 166 PRELIMINARY PLAN La Quinta Redevelopment Agency TABLE OF CONTENTS INTRODUCTION...........................................................................................................................1 ProjectArea No. 2.............................................................................................................. 1 Preliminary Plan................................................................................................................. 7 PROJECT AREA NO. 2 AND ADDED AREA LOCATION & DESCRIPTION ......................2 ProjectArea No. 2.............................................................................................................. 2 Proposed Added Area ................ :....................................................................................... 2 GENERAL STATEMENT OF PROPOSED PLANNING ELEMENTS.....................................2 Land Uses........................................................................................................................... 2 Proposed Layout of the Principal Streets of the Added Area .......................................... 3 ProposedPopulation Densities......................................................................................... 3 Proposed Building Densities.............................................................................................. 3 Proposed Building Standards............................................................................................ 3 ATTAINMENT OF THE PURPOSES OF THE LAW................................................................ 3 CONFORMANCE TO THE CITY'S GENERAL PLAN.......... ......... 3 GENERAL IMPACT OF PROPOSED PROJECT UPON RESIDENTS OF THE PROJECT AREA & SURROUNDING NEIGHBORHOODS........................................................................3 EXHIBIT A: ADDED AREA MAP .......... EXHIBIT B: ADDED AREA LEGAL DESCRIPTION.... Wlvy Laserfiche DocumenlsTreliminary Plan PA 2 Amend (2).doc ................. 5 �7 16% PRELIMINARY PLAN La Quinta Redevelopment Agency INTRODUCTION This is the Preliminary Plan ("Preliminary Plan") for the Fifth Amendment to the La Quinta Redevelopment Agency's ("Agency") Redevelopment Project Area No. 2 ("Project Area No. 2"). The Agency is initiating redevelopment plan amendment proceedings to add approximately 12.42 acres of property ("Added Area") to Project Area No.2. This would be the fifth amendment to the Redevelopment Plan for Project Area No. 2 ("Redevelopment Plan"). The purpose is to preserve and expand the community's supply of affordable housing by substantially rehabilitating an existing 73 unit apartment complex, and developing new affordable multifamily units. The proposed Redevelopment Plan amendment ("Fifth Amendment") is being prepared in conformance with California Community Redevelopment Law, Health and Safety Code Section 33000 et. sea. ("CRL"). The Added Area lies approximately half a mile north of Project Area No. 2 (shown in Exhibit A and described in Exhibit B), and is generally bound by Hidden River Road to the north, Washington Street to the west, and the Mediterra Apartments along Darby Road to the south. The eastern border varies between Byron Place and Lima Hall Road. Project Area No. 2 The La Quinta Redevelopment Agency was established in 1983. The Agency adopted its first redevelopment project in November 1983. Project Area No. 2 was established in May 1989 by Ordinance No. 139 to primarily address infrastructure deficinencies that limited private sector investment in commercial and residential development. The Redevelopment Plan was subsequently amended on December 20, 1994 by Ordinance No. 259 to conform to new legal requirements. It was amended again on February 3, 2004 by Ordinance No. 399 to increase the limit on the amount of tax increment revenue the Agency may receive, and again on March 16, 2004 by Ordinance Nos. 403 and 404 to extend the duration of the Redevelopment Plan by one year. Preliminary Plan O PSG This Preliminary Plan designates the boundaries of the proposed Added Area and provides a general description of the Added Area. It has been prepared for the Planning Commission of the City of La Quinta ("Planning Commission") who, pursuant to CRL, must review and approve the Preliminary Plan. It will then be transmitted to the Agency Board for final action. If the Board approves this Preliminary Plan, the redevelopment plan amendment process will formally begin. In accordance with CRL Section 33324, this Preliminary Plan must: • Describe the boundaries of the proposed Added Area; • Contain a general statement of land uses and layout of principal streets, population densities, building intensities and standards proposed as the basis for the redevelopment of the Added Area; • Demonstrate how the purposes of the CRL would be attained by redevelopment of the Added Area; • Demonstrate how the Fifth Amendment is consistent with the community's General Plan; and • Describe, generally, the impact of the Fifth Amendment on residents of the Added Area, the existing Project Area and the surrounding neighborhoods. Page 1 a... ' 168 PRELIMINARY PLAN La Quinta Redevelopment Agency PROJECT AREA NO. 2 AND ADDED AREA LOCATION & DESCRIPTION Project Area No. 2 Project Area No. 2 encompasses 3,116 acres and is located in the northern portion of the City of La Quinta. It is generally bound by Fred Waring Drive on the north, Jefferson Street on the east and Avenue 50 to the south. The western border varies between Washington Street and just beyond Eisenhower Drive. Project Area No. 2 is developed with a mix of residential, commercial, institutional and recreational uses. Added Area The Added Area consists of noncontiguous properties located in the City of La Quinta, approximately half a mile north of the Project Area No. 2. (shown in Exhibit A). The Added Area is 12.42 acres in size and currently subdivided into 3 parcels. The land use is designated for High Density Residential, as governed by the City's General Plan. Two of the three parcels are developed with a 73 unit apartment complex; the dwellings are affordable to very low and low income seniors and disabled residents; the remainder of the properties are vacant land. The Agency intends to rehabilitate the apartment complex, and develop a new complex up to 16 dwelling units per acre. The new dwellings will be affordable to very low and low income 55 years and older households. Section 33320.2 (a) of the CRL provides that when adding territory to a redevelopment project area, the area may be either contiguous or noncontiguous. All noncontiguous areas shall be either blighted or necessary for effective redevelopment. An unblighted, noncontiguous area shall be conclusively deemed necessary for effective redevelopment if that area is being used predominantly for the construction and rehabilitation of low- or moderate -income housing, as long as that area is not included for the purpose of obtaining tax increment and the redevelopment agency will not use the power of eminent domain in that area. The Added Area meets these provisions. The Agency is pursuing the Fifth Amendment in order to preserve and enhance existing affordable housing, and to develop new affordable housing. Further, the Agency will be selling these units to a non-profit operator who will pay limited or no property taxes. Thus, the Agency is not pursuing this Fifth Amendment for the purpose of obtaining tax increment revenue. Finally, the Agency's eminent domain authority expired in 2001. It cannot use this authority in the Added Area because it does not have eminent domain authority. GENERAL STATEMENT OF PROPOSED PLANNING ELEMENTS The Fifth Amendment will not alter the planning elements contained in the Redevelopment Plan. These planning elements are the applicable provisions of the City's General Plan, Zoning Ordinance, and other state and local guidelines, as they may be amended from time to time. Land Uses The permitted land uses will be those authorized by the City's General Plan and Zoning Ordinance, as amended from time to time, and all applicable state and local codes and guidelines. O RSC Page 2 a.. ; 169 PRELIMINARY PLAN La Quinta Redevelopment Agency Proposed Layout of the Principal Streets of the Added Area Exhibit A presents the principal streets within the Added Area. The principal streets include Washington Street and Hidden River Road. The layout of principal streets and shall conform to the General Plan as currently adopted or hereafter amended. Proposed Population Densities The population densities will conform to the General Plan and Zoning Ordinance, as currently adopted or as hereafter amended, and all other applicable codes and ordinances. Population densities will increase when the vacant parcels are developed up to 16 dwelling units per acre pursuant to its designated land use. Proposed Building Densities Building densities will be in accordance with the General Plan and Zoning Ordinance, as they now exist or are hereafter amended. Proposed Building Standards Building standards shall conform to the building requirements of applicable State statues, and local codes and ordinances. ATTAINMENT OF THE PURPOSES OF THE LAW The Fifth Amendment will attain the purposes of the CRL by preserving and rehabilitating existing affordable housing, and constructing new affordable housing. The Agency intends to rehabilitate the existing 73 unit multi -family apartment complex and record 55 year affordability covenants. These covenants will insure that these dwellings will remain affordable to very low and low income households for 55 years. This complex is 30 years old and is needs substantial rehabilitation. The Agency also intends to facilitate the development of up to 84 new affordable dwellings that will remain affordable to very low and low income 55 year and older households for 55 years. In the process, the Agency will also improve on- and off -site drainage, and improve both the local and regional street systems. CONFORMANCE TO THE CITY'S GENERAL PLAN This Preliminary Plan is consistent with the City's General Plan because land uses, layout of the principal streets, and other development standards incorporate existing General Plan policies. The Amended Plan will not institute land use or other planning policies not otherwise permitted by the General Plan. GENERAL IMPACT OF PROPOSED PROJECT UPON RESIDENTS OF THE PROJECT AREA & SURROUNDING NEIGHBORHOODS O' R S G The Agency does not envision that the proposed Project (rehabilitating the existing 73 unit apartment complex and developing the new affordable dwellings) will impact either the Project Area or the surrounding neighborhoods. The Project will: Page 3 (q PSG PRELIMINARY PLAN La Quinta Redevelopment Agency • Rehabilitate the existing apartment complex and site to current City standards. These improvements will also include ingress and egress improvements, traffic circulation improvements, and storm water drainage improvements. • Develop the vacant parcels with up to This new development will conform to will expand the community's supply o income households. 84 new multi -family affordable dwellings. current City standards. These dwellings housing affordable to very low and low The Agency does not envision that these improvements will have an impact on the residents of Project Area No. 2 nor the surrounding neighborhoods. It will not impact Project Area No. 2 residents because it is not adjacent to the project area. The traffic circuation and drainage improvements will enhance the surrounding neighborhood. The Added Area residents will be impacted because they must be tempoarilly relocated while their dwellings are rehabilitated. The Agency will be preparing a relocation strategy to assist these residents during this process. Once these units are rehabilitated, the residents will then enjoy new rehabilitated dwellings. Page 4 PRELIMINARY PLAN La Quinta Redevelopment Agency EXHIBIT A LA QUINTA REDEVELOPMENT PROJECT AREA NO. 2 - FIFTH AMENDMENT Proposed Added Area ProjectAr � ®Ro oizsoss as ots I-- . H ..... Miffs O PSG Page 5 pm . ) 1 ?Z PRELIMINARY PLAN La Quinta Redevelopment Agency EXHIBIT B LEGAL DESCRIPTION OF THE AREA TO BE ADDED BY THE FIFTH AMENDMENT TO THE REDEVELOPMENT PLAN FOR THE LA QUINTA REDEVELOPMENT PROJECT AREA NO. 2 A portion of the south half of the northwest one -quarter of Section 18, Township 5 South, Range 7 East, San Bernardino Base and Meridan, in the County of Riverside, State of California, described more particularly as follows: Beginning at the west one -quarter comer of said Section 18, said comer being on the existing boundary of the City of La Ouinta and on the centerline of Washington Street the following courses: Course 1. Thence, North 0008'34" East along the westerly line of said Section 18 and centerline of Washington Avenue a distance of 664.02 feet to the northwest comer of the south half of the south half of government lot 2 said comer also being on the centerline of Hidden River Road as shown on Parcel Map No. 12323; Course 2. Thence North 89°34'27" East along the northerly line of said south half of the south half of Section 18 and centerline of Hidden River Road a distance of 475.34 feet to a point that is 11.00 feet easterly of northwest comer of Lot D of said Parcel Map No 12323; Course 3. Thence South 0°08'34 West parallel to said westerly line of said Lot D and the westerly line of Parcel 2 of said Parcel Map No. 12323 a distance of 400,31 feet to a point on the southerly line of said Parcel 2, said point also being on the northerly property line of that parcel of land described in deed to Testa Family Limited Partnership II, recorded December 26, 1995 as document number 420898 in the office of the County Recorder of said Riverside County; Course 4. Thence North 89°34'28" East along the Northerly line of said Testa Family land a distance of 849.23 feet; Course 5. Thence South 0620'37"East 265.62 feet to the southerly line of said Testa Land, said point also being on the east -west centerline of said Section 18; Course 6. Thence South 89039'27 West along said east -west centerline of Section 18 and southerly of said Testa Family land 1326.81 feet to the point of beginning. Area = 12.42 Acres, more of less John F. Young, PLS 466 O RSG rtooa ' 30 og 'i FNo kA 9" Date v s Page 6 eo r, 1 �3 Appendix C Statement of Preparation 30 STATEMENT OF PREPARATION OF AN AMENDMENT TO THE REDEVELOPMENT PLAN FOR THE LA QUINTA REDEVELOPMENT PROJECT AREA NO. 2 DATE: September 9, 2010 VIA CERTIFIED MAIL RETURN RECEIPT REQUESTED TO: 1. AUDITOR -CONTROLLER, ASSESSOR, AND BOARD OF SUPERVISORS OF THE COUNTY OF RIVERSIDE, AND 2. STATE BOARD OF EQUALIZATION (VIA OVERNIGHT MAIL), AND 3. GOVERNING BODIES OF ALL OTHER POTENTIALLY AFFECTED TAXING AGENCIES Pursuant to Sections 33327 and 33328.3 of the California Community Redevelopment Law (Health & Safety Code Section 33000 et seq.; the "Law"), you are hereby notified that the La Quinta Redevelopment Agency ("Agency") has initiated the process to add territory to the La Quinta Redevelopment Project Area No. 2 ("Project Area"). Pursuant to the Law, the Agency will be undertaking proceedings to amend the Redevelopment Plan for the Project Area to add the area identified on Exhibit 1 and described on Exhibit 2 ("Added Area"). The Added Area was a part of the Riverside County Desert Communities Project Area Palm Desert Sub -Area. On May 25, 2010 the Board of Supervisors of the County of Riverside adopted Ordinance No. 898 approving the detachment of the Added Area. It is the intention of the Agency to use the Added Area to rehabilitate existing, and construct new, low or moderate income housing pursuant to Section 33320.2 of the Law. The Added Area will not be used to obtain taxes pursuant to Section 33670 of the Law. Due to this fact, the preparation of a report containing the information set forth in Sections 33328 and 33328.3 of the Law is not required. Thus, the Agency is not requesting a report of county taxing officials nor is it requesting assessed valuations for the preceding five years. However, a reply from the County Auditor Controller acknowledging receipt of this Statement of Preparation is requested. Pursuant to Section 33328 of the Law, the Agency is inviting affected taxing entities to consult with the Agency regarding these matters. If you have any questions or would like to consult with the Agency, please contact Douglas Evans, Assistant City Manager - Development Services at (760) 777-7031 or via email at devans@Ia-quinta.o�cr. . Respectfully submitted, LA QUINTA REDEVELOPMENT, AGENCY Thomas P. Genovese Executive Director cc: Douglas R. Evans, Assistant City Manager - Development Services EXHIBIT 2 LEGAL DESCRIPTION OF THE AREA TO 13E ADDED BY THE FIFTH AMENDMENT TO THE REDEVELOPMENT PLAN FOR THE LA QUINTA REDEVELOPMENT PROJECT AREA NO. 2 A portion of the south half of the northwest one -quarter of Section 18, Township 5 South, Range 7 East, San Bernardino Base and Meridian, in the County of Riverside, State of California, described more particularly as follows: Beginning at the west one -quarter corner of said Section 18, said corner being on the existing boundary of the City of La Quinta and on the centerline of Washington Street the following courses: Course 1. Thence, North 0008'34" East along the westerly line of said Section 18 and centerline of Washington Avenue a distance of 664.02 feet to the northwest corner of the south half of the south half of government lot 2 said comer also being on the centerline of Hidden River Road as shown on Parcel Map No. 12323; Course 2. Thence North 89034'27" East along the northerly line of said south half of the south half of Section 18 and centerline of Hidden River Road a distance of 475.34 feet to a point that is 11.00 feet easterly of northwest corner of Lot D of said Parcel Map No. 12323; Course 3. Thence South 0008'34 West parallel to said westerly line of said Lot D and the westerly line of Parcel 2 of said Parcel Map No. 12323 a distance of 400.31 feet to a point on the southerly line of said Parcel 2, said point also being on the northerly property line of that parcel of land described in deed to Testa Family Limited Partnership 11, recorded December26, 1995 as document number426898 in the office of the County Recorder of said Riverside County, Course 4, Thence North 89034'28" East along the Northerly line of said Testa Family land a distance of 849,23 feet; Course 5. Thence South 0020'37"East 265.62 feet to the southerly line of said Testa Land, said point also being on the east -west centerline of said Section 18; Course 6. Thence South 89°39'27 West along said east -west centerline of Section 18 and southerly of said Testa Family land 1326.81 feet to the point of beginning. Area = 12.42 Acres, more of less John F. Young, PLS 4 C' o g Date