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2011 02 15 RDA&# 4 4v adja 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, FEBRUARY 15, 2011 2:00 P.M. Closed Session / 4:00 P.M. Open Session Beginning Resolution No. RA 2011-006 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 NOTE: Time permitting the Redevelopment Agency Board may conduct Closed Session discussions during the dinner recess. In addition, persons identified as negotiating parties are not invited into the Closed Session meeting when acquisition of real property is considered. 1. CONFERENCE WITH AGENCY'S LEGAL COUNSEL REGARDING PENDING LITIGATION, APARTMENTS AT LA QUINTA VILLAGE, L.P., ET AL V. LA QUINTA REDEVELOPMENT AGENCY, ET AL, RIVERSIDE SUPERIOR COURT CASE NO. RIC 1101382, PURSUANT TO GOVERNMENT CODE SECTION 54956.91a►. 01 Redevelopment Agency Agenda 1 February 15, 2011 2. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR, DOUGLAS R. EVANS, PURSUANT TO GOVERNMENT CODE SECTION 54956.8 CONCERNING POTENTIAL TERMS AND CONDITIONS OF ACQUISITION AND/OR DISPOSITION OF A PORTION OF 335± ACRES LOCATED AT THE SOUTHWEST CORNER OF AVENUE 52 AND JEFFERSON STREET. PROPERTY OWNER/NEGOTIATOR: CITY OF LA QUINTA, THOMAS P. GENOVESE. 3. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR, DOUGLAS R. EVANS, PURSUANT TO GOVERNMENT CODE SECTION 54956.8 CONCERNING POTENTIAL TERMS AND CONDITIONS OF ACQUISITION AND/OR DISPOSITION OF CERTAIN REAL PROPERTY IDENTIFIED AS APN: 600-020-047. PROPERTY OWNER/NEGOTIATOR: VIP MOTOR CARS, LTD., JERRY JOHNSON; AND CITY OF LA QUINTA, THOMAS P. GENOVESE. 4. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR, DOUGLAS R. EVANS, PURSUANT TO GOVERNMENT CODE SECTION 54956.8 CONCERNING POTENTIAL TERMS AND CONDITIONS OF ACQUISITION AND/OR DISPOSITION OF CERTAIN REAL PROPERTIES DESCRIBED AS FOLLOWS: APNs/PROPERTY OWNERS/NEGOTIATORS: 600-030-001 THROUGH -005, -008, AND -009, COACHELLA VALLEY HOUSING COALITION, JOHN MEALEY; 609-040-007, -023 AND -028, NATIONAL CORE, ALFREDO IZMAJTOVICH; 773-077-014, DESERT CITIES DEVELOPMENT, LLC, MICHAEL SHOVLIN. RECESS TO CLOSED SESSION RECONVENE AT 4:00 P.M. 4:00 P.M. PUBLIC COMMENT At this time members of the public may address the Redevelopment Agency on any matter not listed on the agenda. Please complete a "request to speak" form and limit your comments to three minutes. CONFIRMATION OF AGENDA APPROVAL OF MINUTES 1. APPROVAL OF MINUTES OF FEBRUARY 1, 2011. Redevelopment Agency Agenda 2 February 15, 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 FEBRUARY 15, 2011. 2. RECEIVE AND FILE TREASURER'S REPORT DATED DECEMBER 31, 2010. 3. RECEIVE AND FILE REVENUE & EXPENDITURES REPORT DATED DECEMBER 31, 2010. 4. AUTHORIZE THE EXECUTIVE DIRECTOR TO EXECUTE THE NECESSARY PROFESSIONAL SERVICE CONTRACTS FOR THE ISSUANCE OF TAX- EXEMPT AND TAXABLE OBLIGATIONS. 5. ADOPTION OF A RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO TAKE ALL NECESSARY ACTIONS TO TRANSFER REDEVELOPMENT AGENCY -OWNED NON -HOUSING PROPERTIES TO THE CITY OF LA QUINTA. 6. ADOPTION OF A RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO TAKE ALL NECESSARY ACTIONS TO TRANSFER REDEVELOPMENT AGENCY -OWNED HOUSING PROPERTIES TO THE LA QUINTA HOUSING AUTHORITY. BUSINESS SESSION 1. CONSIDERATION OF MID -YEAR BUDGET REPORT FOR FISCAL YEAR 2010-201 1 . A. MINUTE ORDER ACTION STUDY SESSION — NONE DEPARTMENT REPORTS 1. UPDATE OF THE FIVE-YEAR IMPLEMENTATION PLAN FOR THE LA QUINTA REDEVELOPMENT AGENCY. Redevelopment Agency Agenda 3 February 15,2011 0 n CHAIR AND BOARD MEMBERS' ITEMS — NONE PUBLIC HEARINGS — NONE ADJOURNMENT The next regular meeting of the Redevelopment Agency will be held on March 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 February 15, 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 1 1 1, on February 11, 2011. DATE February 1 , 2011 VERONICA . MONTECINO, City Clerk City of La Quinta, California Public Notice Any writings or documents provided to a majority of the Redevelopment Agency regarding any item on this agenda will be made available for public inspection at the City Clerk counter at City Hall located at 78-495 Calle Tampico, La Quinta, California, 92253, during normal business hours. Redevelopment Agency Agenda 4 February 15, 2011 0 " 04 ow �4a�w s GSM OF 9 RDA MEETING DATE: February 15, 2011 ITEM TITLE: Demand Register Dated February 15, 2011 RECOMMENDATION: It is recommended the Redevelopment Agency Board: Receive and File the Demand Register Dated February 15, 2011 of which $622,931.30 AGENDA CATEGORY: BUSINESS SESSION CONSENT CALENDAR STUDY SESSION PUBLIC HEARING PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA 0" 05 a F`k OF TK09 COUNCIL/RDA MEETING DATE: February 15, 2011 ITEM TITLE: Receive and File Transmittal of Treasurer's Report as of December 31, 2010 RECOMMENDATION: It is recommended the Redevelopment Agency Board: Receive and file. AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: PLEASE SEE RELATED BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA 0Ij " W__4� 4 64P Q(dara-4 COUNCIL/RDA MEETING DATE: February 15, 2011 AGENDA CATEGORY: ITEM TITLE: Receive and File Transmittal of Revenue BUSINESS SESSION: and Expenditure Reports dated December 31, 2010 CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: RECOMMENDATION: Receive and File FISCAL IMPLICATIONS: None. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: Please find the December 31, 2010 Statement of Revenue and Expenditures for the City of La Quinta Redevelopment Agency in Attachment 5 of the consideration of Mid -Year Budget Report for Fiscal Year 2010-201 1 staff report. Respectfully submitted, MJohM. Falconer, Finance Director 0"'�7 Approved for submission by: Thomas P. Genovese, Executive Director U09 a Fy OF TNE9 (;e� 4 X4PQw,try COUNCIL/RDA MEETING DATE: February 15, 2011 ITEM TITLE: Authorize the Executive Director to Execute the Necessary Professional Service Contracts for the Issuance of Tax -Exempt and Taxable Obligations RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Authorize the Executive Director to execute the professional services contracts necessary for the La Quinta Redevelopment Agency's issuance of tax-exempt and taxable obligations. FISCAL IMPLICATIONS: Retaining the bond team is the first step in the process of issuing debt which would raise proceeds for housing and non -housing projects. A preliminary analysis indicates that $55 million of Project Area (PA) 1 and $13 million of PA 2 tax exempt non - housing bonds may be issued, and $32.25 million of housing taxable bonds may be issued. The ultimate amount of bonds issued and the net proceeds are subject to market conditions at the time of the sale. The Agency Board will be provided with definitive principal amounts when the bond documents are submitted for future Agency approval. BACKGROUND AND OVERVIEW: Since the Agency last issued tax increment bonds in 2004, the municipal bond market has changed dramatically. The Agency can no longer obtain bond insurance to enhance our credit rating to the "AAA" level that previous issues have carried to market. The Agency must issue debt on a stand alone rating, which is currently an A+ by Standard & Poor's. This A+ rating, while very good, combined with the current uncertainties associated with the Governor's proposal to abolish redevelopment agencies will result in the Agency paying higher debt service costs (principal and interest) than in the past. In addition, the intention to issue taxable housing bonds, which has advantages in the structuring of affordable housing projects, will result in the housing bonds paying a higher interest rate than a non-taxable bond issue. The 0 economic and budget challenges surrounding States, Counties and Municipalities has created a market where investors perceive a greater level of risk in making a thirty year investment commitment and therefore are requiring a higher level of interest in return. While staff understands that this is not the optimum time to issue long term debt, the recent Governor's proposal to eliminate Redevelopment Agencies by June 30, 2011 has created the need for staff to investigate a possible borrowing before the June 30, 2011 expiration date. All fees associated with this bond issue would be paid from bond proceeds so no appropriations are necessary. Staff believes that due to the aforementioned circumstances, the City Council consider utilizing Section 3.32.050 C of the Municipal Code which states: "The city council may authorize award and execution of service contracts with no competitive proposals where experience with the proposed service provider has demonstrated competence and satisfactory performance or in the renewal or renegotiation of existing contracts for continuing services." Staff is proposing using the same bond team, subject to change by the Executive Director, which was used in 2004 for this bond issue: Underwriter: Wedbush Securities, Inc. — Robin Thomas Disclosure Counsel: Stradling Yocca Carlson & Rauth — David McEwen Bond & Escrow Trustee: U.S. Bank — Brad Scarbrough Pricing Consultant: Harrell & Associates — Suzanne Harrell The Agency is already under contract with Rutan & Tucker to have Bill Marticorena serve as Bond Counsel. In addition, RSG's 2007 contract provides that it will serve as Agency's Fiscal Consultant for the issuance of bonds. FINDINGS AND ALTERNATIVES: The alternatives available to the Redevelopment Agency Board include: 1. Authorize the Executive Director to execute the professional services contracts necessary for the La Quinta Redevelopment Agency's issuance of tax-exempt and taxable obligations; 2. Do not proceed with the steps necessary to issue tax-exempt and taxable obligations; or 3. Provide staff with alternative direction. 0110 Respectfully submitted, f4� -dGih �/L' John M. Falconer, Finance Director Approved for submission by: (/;Z) '• Thomas P. Genovese, Executive Director 0�11 Tit,/ 4 4 Qum& C F`y OF'ct�'O COUNCIL/RDA MEETING DATE: February 15, 2011 ITEM TITLE: Adoption of a Resolution Authorizing the Executive Director to Take all Necessary Actions to Transfer Redevelopment Agency -Owned Non - Housing Properties to the City of La Quinta RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Adopt a Resolution of the Redevelopment Agency authorizing the Executive Director, if and when he deems it appropriate, to take all necessary actions to transfer Redevelopment Agency -owned non -housing properties listed on Attachment 1 to the City of La Quinta, including obtaining the necessary appraisal and seeking a reduction in the Agency's debt to the City in the amount of the fair market value for certain parcels. FISCAL IMPLICATIONS: Most operation and maintenance costs for the subject properties are currently in the Agency Budget. If these properties are transferred, the costs will become General Fund obligations and will be considered in the Fiscal Year Budget 2011-2012. The cost to maintain the undeveloped portion of SilverRock averages $400,000 per year or $33,000 per month. If the properties are transferred to the City before the end of the current fiscal year, an appropriation from the General Fund will be brought forward to the City Council for consideration. BACKGROUND AND OVERVIEW: The Agency staff has completed an inventory of Agency -owned property that was acquired for purposes other than affordable housing. For many of the properties, the redevelopment process has been completed, and the City has already assumed responsibility for the operation and maintenance of the facilities. The others will be redeveloped at some point in the future. Staff is recommending that the Executive Director be authorized to take steps to transfer the properties listed on Attachment 1 from the Agency to the City as he deems appropriate. The properties are as follovy„s; 12 1. North La Quinta Park at the southeast corner of Dune Palms Road and Westward Ho. 2. La Quinta Museum at the southeast corner of Avenida Montezuma and Avenida Mendoza. 3. Village Parking Lot at the northwest corner of Avenida Bermudas and Avenida Montezuma. 4. Two paved lots behind the Police Substation on Avenida Navarro (previously leased by the Post Office). 5. Library parking lot. 6. Landscaped lot west of the Senior Center (planted with palm trees). 7. The undeveloped portion of SilverRock Resort, including the 240 acres designated for public improvement and the 85 acres designated for private development. 8. Pioneer Park on Seeley Drive south of Miles Avenue. 9. A remainder lot left over from the widening of Calle Sinaloa at the northeast corner of Calle Sinaloa and Eisenhower Drive. 10. The vacant commercial parcel on the south side of Highway 111 east of Dune Palms. 11. Street easement located at the SWC of Highway 111 and Dune Palms Road. With regard to all of these parcels with the exception of the development pads at SilverRock Resort and the Highway 1 1 1 /Dune Palms parcels, the properties either have been or will be improved with public infrastructure or public facilities. For these properties, the City is not required to compensate the Agency since the properties were always intended for public use. With regard to the commercial development parcels at SilverRock Resort and the Highway 1 1 1 /Dune Palms properties, those properties are intended for private development. As such, it would be necessary for the City to compensate the Agency for the fair market value of the property. As to the Highway 111/Dune Palms property, the City loaned the Agency $9,378,966 pursuant to a Financing Agreement to fund that acquisition. The current outstanding principal on that loan is $7,185,498. Should the Agency wish to effectuate a transfer of these properties which are ultimately slated for private development, staff's recommendations are as follows. 0:.113 With regard to the commercial development parcels (approximately 85 acres) at the SilverRock Resort, staff suggests that the Agency obtain an updated appraisal from Mike Scarcella as to the value of those parcels. Since the Agency currently owes the City approximately $39 million in prior loans, the Executive Director could be authorized to request the City to reduce the amount of those loans equal to the current value of the SilverRock Resort parcels. With regard to the Highway 1 1 1 /Dune Palms parcel, staff suggests that the Agency obtain an updated appraisal from Mr. Scarcella as to the current value of the property. The Executive Director could then request the City to forgive a portion of the Agency's debt to the City equal to the value of the property. If the Agency and City do not wish to effectuate this transfer, as an alternative, the Agency Counsel recommends that the Agency grant to the City a deed of trust on the parcel securing the City's remaining principal of $7,185,498. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency Board include: 1. Adopt a Resolution of the Redevelopment Agency authorizing the Executive Director, if and when he deems it appropriate, to take all necessary actions to transfer Redevelopment Agency -owned properties shown on Attachment 1 to the City of La Quinta, including obtaining the necessary appraisal and seeking a reduction in the Agency's debt to the City in the amount of the fair market value of certain of the parcels; or 2. Adopt a Resolution of the Redevelopment Agency authorizing the Executive Director, to take all necessary actions to transfer Redevelopment Agency -owned properties shown on Attachment 1 to the City of La Quinta, including obtaining the necessary appraisal and seeking a reduction in the Agency's debt to the City in the amount of the fair market value of certain of the parcels; or 3. Adopt a Resolution of the Redevelopment Agency authorizing the Executive Director, if and when he deems it appropriate, to take all necessary actions to transfer certain of the Redevelopment Agency -owned properties shown on Attachment 1 to the City of La Quinta and further authorize the Executive Director to execute a deed of trust in favor of the City on the Highway 1 1 1 /Dune Palms property to secure the City's remaining unpaid principal ($7,185,498). 4. Do not approve the transfers; or 5. Provide staff with alternative direction. V14 Respectfully submitted, DouAR.ns Assistant City Manager — Development Services Approved for submission by: Thomas P. Genovese, Executive Director Attachments: 1. Non -Housing Property List 0-115 ATTACHMENT RDA NON -HOUSING PROPERTY Description Use Vacant Land: Remainder lot purchased to widen Avenue 52 Public Improvement at Calle Sinaloa/Eisenhower Drive Street Easement located at the SWC Hwy 111 Public Improvement and Dune Palms Road Vacant land for future development on Hwy 111 Private Development east of Dune Palms Road Public Properties: Pioneer Park (Park Centre Pointe on Seeley Drivel Public Improvement North La Quinta Park Public Improvement Library parking lot and landscaped lot Public Improvement west of Senior Center Village Parking lot Public Improvement La Quinta Museum Public Improvement Parking lot behind Police Substation Public Improvement 0119 Resolution No. RA 2011-006 Transfer of Non -Housing Properties to City Adopted: February 15, 2011 Page 5 SilverRock Resort Redevelopment Agency- Owned Parcels by Parcel Number Parcel Number Acreage Use Lot A 7.41 Public Improvement Lot B .47 Public Improvement Lot C 4.54 Public Improvement Lot D 2.95 Public Improvement Lot E .85 Public Improvement Lot F 3.44 Public Improvement Lot G 2.77 Public Improvement Lot H 3.48 Public Improvement Lot 9 .59 Public Improvement Lot 10 55.78 Public Improvement Lot 12 31.27 Public Improvement Lot 13 1.17 Public Improvement Lot 14 3.72 Public Improvement Lot 15 31.63 Public Improvement Lot 16 8.94 Public Improvement Lot 18 73.43 Public Improvement Lot 20 2.43 Public Improvement Lot 21 7.15 Public Improvement Lot 22 1.46 Public Improvement Total 243.48 Lot 3 19.65 Private Development Lot 4 .78 Private Development Lot 5 11.84 Private Development Lot 6 9.93 Private Development Lot 8 18.51 Private Development Lot 11 8.63 Private Development Lot 19 13.79 Private Development Lot 23 3.82 Private Development Total 86.95 Parcel Map Number 33367 wgtS TIdw4laQuiRrw MEMORANDUM TO: Honorable Chair and Members of the Agency Board FROM: Thomas P. Genovese, Executive Director DATE: February 15, 2011 SUBJECT: Redevelopment Agency Consent Calendar Number 5 The RECOMMENDATION listed on page 1 and ALTERNATIVE Number 1 of the staff report are hereby amended to read: Adopt a Resolution of the Redevelopment Agency authorizing the Executive Director, if and when he deems it appropriate, to take all necessary actions to transfer Redevelopment Agency -owned non -housing properties listed on Attachment 1 to the City of La Quinta, including obtaining the necessary appraisal and seeking a reduction in the Agency's debt to the City in the amount of the fair market value for certain parcels and further authorize the Executive Director to execute a deed of trust in favor of the City on the Highway 1 1 1 /Dune Palms property to secure the City's remaining unpaid principal ($7,185,498). Thank you. 4 4a Qum& Anj OF rNE COUNCIL/RDA MEETING DATE: February 15, 2011 ITEM TITLE: Adoption of a Resolution Authorizing the Executive Director to Take All Necessary Actions to Transfer Redevelopment Agency -Owned Housing Properties to the La Quinta Housing Authority RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Adopt a Resolution of the Redevelopment Agency authorizing the Executive Director, if and when he deems it appropriate, to: (1) take all necessary actions to transfer Redevelopment Agency -owned housing properties listed on Attachment 1 to the La Quinta Housing Authority; and (2) take all steps necessary to have the La Quinta Housing Authority added to the title of the Washington Street Apartments. FISCAL IMPLICATIONS: It is estimated that with the transfer of these properties, funds will need to be added to the Housing Authority Budget to pay for dust control and weed abatement costs. It is estimated that $300 per vacant lot will be needed for weed abatement and approximately $2,000 per acre every three years will be needed for dust control of the larger project properties. Once these properties are transferred, the costs will become General Fund obligations and will be considered in the Fiscal Year Budget 201 1-2012. BACKGROUND AND OVERVIEW: The Housing Authority was established by the City Council to assist and implement the State's Redevelopment Law mandate to provide affordable housing. Properties that have been acquired by the Agency were purchased to address this mandate. To date, the City has provided 1,052 units for very low-, low-, and moderate -income families. Staff has been in the process of cataloging Agency and City property. In reviewing the Agency -owned housing properties, staff determined that a number of parcels may need to be transferred to the Housing Authority for on -going operation, maintenance purposes, and future disposition/development. With regard to the commercial development parcels (approximately 85 acres) at the SilverRock Resort, staff suggests that the Agency obtain an updated appraisal from Mike Scarcella as to the value of those parcels. Since the Agency currently owes the City approximately $39 million in prior loans, the Executive Director could be authorized to request the City to reduce the amount of those loans equal to the current value of the SilverRock Resort parcels. With regard to the Highway 1 1 1 /Dune Palms parcel, staff suggests that the Agency obtain an updated appraisal from Mr. Scarcella as to the current value of the property. The Executive Director could then request the City to forgive a portion of the Agency's debt to the City equal to the value of the property. If the Agency and City do not wish to effectuate this transfer, as an alternative, the Agency Counsel recommends that the Agency grant to the City a deed of trust on the parcel securing the City's remaining principal of $7,185,498. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency Board include: 1. Adopt a Resolution of the Redevelopment Agency authorizing the Executive Director, if and when he deems it appropriate, to take all necessary actions to transfer Redevelopment Agency -owned properties shown on Attachment 1 to the City of La Quinta, including obtaining the necessary appraisal and seeking a reduction in the Agency's debt to the City in the amount of the fair market value of certain of the parcels; or 2. Adopt a Resolution of the Redevelopment Agency authorizing the Executive Director, to take all necessary actions to transfer Redevelopment Agency -owned properties shown on Attachment 1 to the City of La Quinta, including obtaining the necessary appraisal and seeking a reduction in the Agency's debt to the City in the amount of the fair market value of certain of the parcels; or 3. Adopt a Resolution of the Redevelopment Agency authorizing the Executive Director, if and when he deems it appropriate, to take all necessary actions to transfer certain of the Redevelopment Agency -owned properties shown on Attachment 1 to the City of La Quinta and further authorize the Executive Director to execute a deed of trust in favor of the City on the Highway 1 1 1 /Dune Palms property to secure the City's remaining unpaid principal ($7,185,498). 4. Do not approve the transfers; or 5. Provide staff with alternative direction. V14 Respectfully submitted, DouAR.ns Assistant City Manager — Development Services Approved for submission by: Thomas P. Genovese, Executive Director Attachments: 1. Non -Housing Property List 0-115 RESOLUTION NO. 2011- A RESOLUTION OF THE LA QUINTA REDEVELOPMENT AGENCY AUTHORIZING THE EXECUTIVE DIRECTOR TO CONVEY CERTAIN REAL PROPERTY TO THE CITY OF LA QUINTA WHEREAS, the La Quinta Redevelopment Agency ("Agency") is a redevelopment agency organized and existing under the California Community Redevelopment Law ("Health & Safety Code § 33000 et seq.) ("CRL") and has been authorized to transact business and exercise the powers of a redevelopment agency pursuant to action of the City Council of the City of La Quinta ("City" or "City Council," as applicable); and WHEREAS, with the legislative body's consent and the satisfaction of certain specified requirements set forth in Health and Safety Code Sections 33445 and 33679, the CRL authorizes redevelopment agencies to expend tax increment funds to acquire real property for, and to fund the cost of the installation and construction of, publicly owned buildings, facilities, and improvements; and WHEREAS, pursuant to the provisions of Health and Safety Code Sections 33445 and 33679, the Agency has acquired ownership of several parcels of real property developed with public buildings, facilities and/or improvements (collectively, the "Public Facilities Properties"); and WHEREAS, the Public Facilities Properties are listed on Attachment 1 to this Resolution, which is incorporated herein by this reference; and WHEREAS, the Agency now desires to authorize the Executive Director, if and when the Executive Director deems it appropriate, to transfer ownership to the Public Facilities Properties to the City; and WHEREAS, the Agency has also acquired certain properties that are intended to be redeveloped by private parties, including the approximately 85 acres of commercial development pads at SilverRock Resort, and the approximately 10 acres of commercial property located south of Highway 111 and east of Dune Palms (collectively, the "Private Redevelopment Properties"); and WHEREAS, the Agency has commissioned appraisals of the current fair market value of the Private Redevelopment Properties which have not yet been completed; and V16 882/015610-0040 _ 1154380.01 a02/11/11 -] Resolution No. Approval of RDA Property Conveyances Adopted: February 15, 2011 Page 2 WHEREAS, if the City wishes to accept the Private Redevelopment Properties, it must pay the Agency the fair market value for the properties; and WHEREAS, the Agency currently has over $39 million in debt owed to the City. NOW, THEREFORE, the La Quinta Redevelopment Agency does hereby resolve as follows: SECTION 1. The Agency hereby approves the conveyances of the Public Facilities Properties to the City. SECTION 2. The Executive Director is authorized, if and when the Executive Director deems it appropriate, to convey to the City the Public Facilities Properties and to take such other actions and execute such other documents as may be necessary to implement and effect this Resolution on behalf of the Agency. SECTION 3. The Executive Director is authorized, if and when the Executive Director deems it appropriate, to convey to the City the Private Redevelopment Properties in exchange for a reduction in the Agency's debt to the City equal to the amount of the fair market value of the Private Redevelopment Properties as determined by the updated appraisal thereof, and to take such other actions and execute such other documents as may be necessary to implement and effect this Resolution on behalf of the Agency. SECTION 4. The Secretary shall certify to the adoption of this Resolution. PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta Redevelopment Agency held this 15th day of February, 2011. AYES: NOES: ABSENT: ABSTAIN: Terry Henderson, Chairperson La Quinta Redevelopment Agency 1l� 882/015610-0040 1154380.01 ae2/11/11 -2- Resolution No. Approval of RDA Property Conveyances Adopted: February 15, 2011 Page 3 ATTEST: VERONICA J. MONTECINO, CMC Secretary La Quinta Redevelopment Agency APPROVED AS TO FORM: M. KATHERINE JENSON, General Counsel La Quinta Redevelopment Agency 182/015610-0040 0,1118 1154380.01 a02/11/11 _3_ ATTACHMENT RDA NON -HOUSING PROPERTY Description Use Vacant Land: Remainder lot purchased to widen Avenue 52 Public Improvement at Calle Sinaloa/Eisenhower Drive Street Easement located at the SWC Hwy 111 Public Improvement and Dune Palms Road Vacant land for future development on Hwy 111 Private Development east of Dune Palms Road Public Properties: Pioneer Park (Park Centre Pointe on Seeley Drivel Public Improvement North La Quinta Park Public Improvement Library parking lot and landscaped lot Public Improvement west of Senior Center Village Parking lot Public Improvement La Quinta Museum Public Improvement Parking lot behind Police Substation Public Improvement 0119 Resolution No. RA 2011-006 Transfer of Non -Housing Properties to City Adopted: February 15, 2011 Page 5 SilverRock Resort Redevelopment Agency- Owned Parcels by Parcel Number Parcel Number Acreage Use Lot A 7.41 Public Improvement Lot B .47 Public Improvement Lot C 4.54 Public Improvement Lot D 2.95 Public Improvement Lot E .85 Public Improvement Lot F 3.44 Public Improvement Lot G 2.77 Public Improvement Lot H 3.48 Public Improvement Lot 9 .59 Public Improvement Lot 10 55.78 Public Improvement Lot 12 31.27 Public Improvement Lot 13 1.17 Public Improvement Lot 14 3.72 Public Improvement Lot 15 31.63 Public Improvement Lot 16 8.94 Public Improvement Lot 18 73.43 Public Improvement Lot 20 2.43 Public Improvement Lot 21 7.15 Public Improvement Lot 22 1.46 Public Improvement Total 243.48 Lot 3 19.65 Private Development Lot 4 .78 Private Development Lot 5 11.84 Private Development Lot 6 9.93 Private Development Lot 8 18.51 Private Development Lot 11 8.63 Private Development Lot 19 13.79 Private Development Lot 23 3.82 Private Development Total 86.95 Parcel Map Number 33367 wgtS TIdw4laQuiRrw MEMORANDUM TO: Honorable Chair and Members of the Agency Board FROM: Thomas P. Genovese, Executive Director DATE: February 15, 2011 SUBJECT: Redevelopment Agency Consent Calendar Number 5 The RECOMMENDATION listed on page 1 and ALTERNATIVE Number 1 of the staff report are hereby amended to read: Adopt a Resolution of the Redevelopment Agency authorizing the Executive Director, if and when he deems it appropriate, to take all necessary actions to transfer Redevelopment Agency -owned non -housing properties listed on Attachment 1 to the City of La Quinta, including obtaining the necessary appraisal and seeking a reduction in the Agency's debt to the City in the amount of the fair market value for certain parcels and further authorize the Executive Director to execute a deed of trust in favor of the City on the Highway 1 1 1 /Dune Palms property to secure the City's remaining unpaid principal ($7,185,498). Thank you. 4 4a Qum& Anj OF rNE COUNCIL/RDA MEETING DATE: February 15, 2011 ITEM TITLE: Adoption of a Resolution Authorizing the Executive Director to Take All Necessary Actions to Transfer Redevelopment Agency -Owned Housing Properties to the La Quinta Housing Authority RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Adopt a Resolution of the Redevelopment Agency authorizing the Executive Director, if and when he deems it appropriate, to: (1) take all necessary actions to transfer Redevelopment Agency -owned housing properties listed on Attachment 1 to the La Quinta Housing Authority; and (2) take all steps necessary to have the La Quinta Housing Authority added to the title of the Washington Street Apartments. FISCAL IMPLICATIONS: It is estimated that with the transfer of these properties, funds will need to be added to the Housing Authority Budget to pay for dust control and weed abatement costs. It is estimated that $300 per vacant lot will be needed for weed abatement and approximately $2,000 per acre every three years will be needed for dust control of the larger project properties. Once these properties are transferred, the costs will become General Fund obligations and will be considered in the Fiscal Year Budget 201 1-2012. BACKGROUND AND OVERVIEW: The Housing Authority was established by the City Council to assist and implement the State's Redevelopment Law mandate to provide affordable housing. Properties that have been acquired by the Agency were purchased to address this mandate. To date, the City has provided 1,052 units for very low-, low-, and moderate -income families. Staff has been in the process of cataloging Agency and City property. In reviewing the Agency -owned housing properties, staff determined that a number of parcels may need to be transferred to the Housing Authority for on -going operation, maintenance purposes, and future disposition/development. There are three large projects for which the Agency has acquired property to develop as affordable housing sites. These include Dune Palms Road/Westward Ho, Village property, and the Washington Street Apartments. With regard to the Washington Street Apartments, a full transfer is not possible at this point in time due to restrictions arising from the Rural Development loan previously provided to the project. However, with regard to that property, the Agency Counsel has suggested adding the Housing Authority to the title. There are currently 27 single-family homes that remain in the Agency's Rental Program that are managed by La Quinta Palms Realty. These houses are self-supporting in that the rents collected will continue to pay for all maintenance and operation costs. The Agency has an inventory of four vacant lots; three are typical 50' X 100' lots located in the Cove. The fourth is located west of City Hall on Calle Tamazula and is approximately 95' X 120'. It has been anticipated that these lots would be utilized to develop affordable homes sometime in the future. Upon transfer of these lots to the Housing Authority, weed abatement cost will need to be funded by the General Fund. Through its Home Foreclosure Purchase Program, the Agency has purchased nine foreclosed homes with three more in escrow. Seven houses have been completely rehabilitated and two are in the final stages of rehabilitation. Of these 12 houses, three are in escrow to be sold to low-income families. In addition, Agency staff is currently evaluating additional houses for potential purchases. Seven parcels have been purchased at the southeast corner of Dune Palms Road and Westward Ho Drive for approximately 86 (43 low- and 43 moderate -income) homes. A long-range plan of the Agency Board has been to provide a "Village Live -Work" complex in the Village. To accomplish this goal, the Agency purchased a parcel of land (consisting of 8 merged lots). The property is located on the north side of Avenida Montezuma between Avenida Navarro and Avenida Mendoza (across from the Community Park). Recently the Agency completed the process to annex and add land to Project Area No. 2 for the purpose of securing a very low-income senior/special needs complex - Washington Street Apartments. The Agency also owns the vacant parcel immediately south and adjacent to the Washington Street Apartments. Site planning and numerous studies have already been completed to rehabilitate the existing 72 units, add 26 new units, and construct an additional 42 units on the vacant parcel. All of these projects have been purchased for the purpose of providing affordable housing with covenants to ensure affordable housing is provided long into the future. Extensive staff time has been involved in preparing site plans, environmental studies, and preliminary engineering. Staff is recommending all three of these project sites be transferred to the Housing Authority. As noted above, the cost associated with on 0'23 going maintenance of these properties will be addressed in the Fiscal Year 201 1-2012 Budget in the event these housing sites are transferred. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency Board include: 1 . Adopt a Resolution of the Redevelopment Agency authorizing the Executive Director, if and when he deems it appropriate, to: (1) take all necessary actions to transfer Redevelopment Agency -owned housing properties shown on Attachment 1 to the La Quinta Housing Authority; and (2) take all steps necessary to have the La Quinta Housing Authority added to the title of the Washington Street Apartments; or 2. Do not approve the transfer; or 3. Provide staff with alternative direction. Respectfully submitted, gQ� oug as Evans Assistant City Manager — Development Services Approved for submission by: Thomas P. Genovese, Executive Director Attachments: 1. RDA Housing Property List 0"7 24 RESOLUTION NO. 2011- A RESOLUTION OF THE LA QUINTA REDEVELOPMENT AGENCY AUTHORIZING THE EXECUTIVE DIRECTOR TO CONVEY CERTAIN REAL PROPERTY TO THE LA QUINTA HOUSING AUTHORITY WHEREAS, the La Quinta Redevelopment Agency ("Agency") is a redevelopment agency organized and existing under the California Community Redevelopment Law ("Health & Safety Code § 33000 et seq.) ("CRL") and has been authorized to transact business and exercise the powers of a redevelopment agency pursuant to action of the City Council of the City of La Quinta ("City" or "City Council," as applicable); and WHEREAS, the City Council has established the La Quinta Housing Authority (the "Housing Authority") to function in the City in accordance with the California Housing Authorities Law (Health and Safety Code Section 34200 et seq.); and WHEREAS, a fundamental purpose of the CRL is to expand the supply of low- and moderate -income housing (Health & Safety Code, § 33071); and WHEREAS, the Agency, in fulfilling its purpose of expanding the supply of low- and moderate -income housing in the City of La Quinta, has acquired ownership of several single-family homes (collectively, the "Affordable Homes"), certain vacant parcels designated for future development of low- and moderate - income housing (collectively, the "Vacant Affordable Parcels"), and a rental apartment project commonly known as Washington Street Apartments ("Washington St. Apartments"); and WHEREAS, the specific location of the Affordable Homes, Vacant Affordable Parcels, and Washington Street Apartments are listed on Attachment 1 to this Resolution, which is incorporated herein by this reference; and WHEREAS, the Agency now desires to authorize the Executive Director, if and when the Executive Director deems it appropriate, to (i) transfer ownership to the Affordable Homes and the Vacant Affordable Parcels to the Housing Authority, (ii) add the Housing Authority to the title of the Washington St. Apartments, for purposes of operation and/or future rehabilitation or development; and NOW, THEREFORE, the La Quinta Redevelopment Agency does hereby resolve as follows: SECTION 1. The Agency hereby approves the conveyances of the Affordable Homes, Vacant Affordable Parcels, and Washington St. Apartments to the Housing Authority, as described in this Resolution and as listed on Attachment 1. F25 882/015610-0040 1154444.01 OM N I 4- Resolution No. Approval of RDA Property Conveyances Adopted: February 15, 2011 Page 2 SECTION 2. The Executive Director is authorized, if and when the Executive Director deems it appropriate, to convey to the Housing Authority the Affordable Homes, Vacant Affordable Parcels, and Washington St. Apartments, as described in this Resolution and as listed on Attachment 1, and to take such other actions and execute such other documents as may be necessary to implement and effect this Resolution on behalf of the Agency. SECTION 3. The Secretary shall certify to the adoption of this Resolution. PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta Redevelopment Agency held this 15`h day of February, 2011. AYES: NOES: ABSENT: ABSTAIN: TERRY HENDERSON, Chairperson La Quinta Redevelopment Agency ATTEST: VERONICA J. MONTECINO, CMC, Agency Secretary La Quinta Redevelopment Agency APPROVED AS TO FORM: M. KATHERINE JENSON, General Counsel La Quinta Redevelopment Agency 882/015610-0040 O ^ 6 1154444.01 .02/11/I1 -2- Fit if_[y:IJll:4 kiIIN RDA HOUSING PROPERTY Large Projects 600-030-001-005, 008, 009 609-040-007, 023 609-040-028 773-077-014 Vacant Land Dune Palms Property Washington Street Apartments Vacant land immediately south of Washington Street Apartments Ostrowsky vacant parcel (north of Community Park) 770-174-002 Vacant lot Calle Tamazula (south of Avenida La Fonda) 773-223-022 Vacant lot (NWC Avenida Herrera/Calle Sonora) 773-233-019 Vacant lot (Avenida Villa between Calle Durango/Calle Sonora 773-234-015 Vacant lot (Avenida Navarro between Calle Durango/Calle Sonora) Cove Rental Homes 770-166-019 51-395 Calle Kalima 773-083-021 51-395 Avenida Vallejo 773-152-015 51-805 Avenida Cortez 773-222-022 52-225 Avenida Vallejo 773-265-020 52-425 Eisenhower Drive 773-281-020 52-635 Avenida Diaz 773-295-017 52-565 Eisenhower Drive 773-321-013 52-985 Avenida Carranza 773-322-025 52-855 Avenida Ramirez 773-326-024 52-985 Eisenhower Drive 773-333-018 52-835 Avenida Villa 773-333-019 52-845 Avenida Villa 774-044-017 53-105 Avenida Obregon 774-044-020 53-155 Avenida Obregon 774-044-021 53-175 Avenida Obregon 774-053-017 53-105 Avenida Herrera 774-094-014 53-275 Avenida Navarro 774-122-016 53-565 Avenida Vallejo 774-131-013 53-523 Avenida Martinez 774-131-014 53-541 Avenida Martinez 774-143-017 53-825 Avenida Juarez 774-151-023 53-965 Avenida Diaz 0 �7 774-153-014 53-775 Avenida Alvarado 774-163-015 53-795 Avenida Herrera 774-175-007 53-880 Avenida Navarro 774-213-023 54-245 Avenida Herrera 774-232-032 54-280 Avenida Madero Home Foreclosure Purchases 773-212-011 77-330 Calle Sonora 773-221-001 52-020 Avenida Carranza 773-265-002 52-280 Avenida Velasco 773-282-005 52-608 Avenida Diaz 773-285-013 52-475 Avenida Carranza 773-292-020 52-685 Avenida Vallejo 773-302-020 52-681 Avenida Mendoza 773-323-008 52-900 Avenida Ramirez 774-1 13-010 53-710 Avenida Rubio 774-134-017 53-645 Avenida Navarro 774-171-010 53-940 Eisenhower Drive 774-211-006 54-150 Avenida Carranza 4a&Qu&r�, N OF TKe' COUNCILIRDA MEETING DATE: February 15, 2011 ITEM TITLE: Consideration of Mid -Year Budget Report for Fiscal Year 2010-2011 RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Approve a decrease of $ (9,413,762) in estimated property tax increment revenue. Approve an increase of $161,000 in estimated investment interest revenue. Approve an increase of $8,720 in 2°d Trust Deed revenues. Approve an increase of $273,029 in miscellaneous revenues. Approve an increase of $29,539,193 in transfers in and a decrease of $05,748,295) in transfers out. Approve a decrease in pass through payments of $(5,284,792). Approve an increase of $138,000 in appropriations for reimbursement to the General Fund for staff time related to Graffiti removal efforts. Approve an increase of $21,100 in County fees related to the collection of property taxes. Approve an increase of $4,506 for the Fiscal Year 2010-2011 Supplemental Educational Revenue Augmentation Funds (SERAF) payment. Approve a decrease of $(63,958) in interest expense for the payment of principal on the Highway 111 City loan. Receive and file the Mid -Year Budget Report. 0 :9 FISCAL IMPLICATIONS: During the annual budget process, staff estimates revenues and expenditures for the Redevelopment Agency (RDA) and at mid -year reassesses those estimates, which are through December 3153. As a result of staff's review, we are recommending the following budget changes totaling a net increase of $41,501,619 in revenues over expenditures to the RDA Fiscal Year 2010-2011 budget: REDEVELOPMENT AGENCY TAX (1) (2) (3) (4 (5) (5) (twau (8) (9) (10) (11) (12) (8)mm (7HO) Tex Interest Sale of R)-7 Pass Th. County SERAF1 (12)-(13) Fund Inoremenl Inwme goal Tonal "ad Tmmltta MAC Revenues Agee Reimb Fees Interest Hassles Espana. Net Reject Areal GeV$,.. (4,439,124) 6,600 23939,193 19,506619 (2.548,490) 2200, 4,855.193 3,900,000 6.208.903 13,297,716 RDA CIP 100,000 3.900,000 250,000 4,250,000 02,890 5,072,080 6,1AA80 (L904,880) Uov and Mod (1,109,792) 0 0 23,029 (1,086763) 0 0 (14,617,912) (14,617,912) 13.631,149 (5,594968) 105,6M 0 0 27,839, 193 223,029 22669656 (2,546490) 82,800 2,2W 4,855,193 (4645,832) (2254,129) 24,923,985 Prefect Area 2 Cadet Service (3.091.876) 49,600 1,700,000 (1,342,226) (2,736.302) 18,900 (4,914645) (7,632,01]) 6,289.271 RDA CIP 3,900 3,900 55,200 0 999,135 1,064,335 (1,050,435) 2N4 Mousing Fond 000 900 0 900 Love and Mod (772.920) 0 8]20 (164,290) 0 0 (12,101690) (12,101,590) 11,337,390 (3,fifi4,T96) R,400 8R0 0 1.700,000 0 (2,101,676) (2,236,302) 55,200 18,900 (4,914,645) (11,102,48J) (i8,8T0,310) 16,527,6M Toml (9,U],g62) 181,W0 B,i20 0 2),539,193 223929 20,568,180 (5284,792) 1360W 21,100 (59.452) (15.948295) 1 (4,933,439)1 41,501,619 Staff is proposing additional revenues and appropriation changes in Redevelopment Project Area Nos. 1 & 2 (Attachments 1 & 2) based upon the following: • Updated tax increment estimates; • Updated investment earnings forecasts; • Updated revenue collections from 2nd trust deed; • Updated analysis of Capital Improvement Projects; Transfers to fund the early repayment of City loans; • Pass through payments affected by updated tax increment estimates; • Updated costs from the County for collecting the Property taxes. BACKGROUND AND OVERVIEW: A comprehensive report is prepared annually at mid -year to inform the Agency Board for their consideration of any changes in the financial position of the Agency. The Mid -Year Budget Report involves a financial assessment of Agency operations. This report provides information on the RDA revenues, operations, capital projects and requests for budget transfers and/or new appropriations. 0 0 Provided as part of Attachment 3 is the revenue and expenditure detail for the RDA. Estimated Tax Increment Revenues The majority of the tax increment revenue for the RDA is received from the County in January and May; therefore, actual tax increment revenues have not been received as of December 31, 2010. The budget amounts have been adjusted to reflect the latest data from the County Auditor/Controller's office. Property taxes are adjusted to the tax roll information prepared by the County Auditor's office, which is received in January of each year. The earned tax increment equals the 50% benchmark. As a result of the tax roll information, the property tax revenues for Project Area 1 and 2 have been adjusted to reflect an 8.21 % decrease in tax increment revenue for Fiscal Year 2010-201 1 . This 8.21 % decrease will result in a decrease of $(4,135,201) in Project Area 1 and a decrease of $0,951,570) in Project Area 2 tax increment receipts from prior year collections for an overall decrease of $(6,086,771). REDEVELOPMENT AGENCY TAX (1) (2) (2Y(1)=(3) (4Y12'6 (4) (4H1) (5) (4)/(5}1009A (4)-(5) 10111 Eri Vear Entl 09/10 12/31/10 10111 Year End Variance Vear Entl Percent Change Description Butlget YTD Actual % Eametl Estimate aw:r (untler) Actual Change $ PAN1 Debt Service $35,209,626 $0 000% $17,604.813 $35,209,625 $0 $38,517,788 A859% ($3308.162) Low/Moderate Tax Increment 8,802,408 0 0.CWA 4,401,204 8,802,408 0 9,629,447 41.59% (827,039) Total Tax Increment 44,012,034 0 0.00% 22,006,017 4g012,034 0 48,147,235 -8.59% (4,135,201) A M2 Debt Service 19.201.924 0 0,00% 9,600,962 19,201,924 0 20,763,179 -7.52% (1,561,255) Low/Moderate Tax Increment 4,800,480 0 0,00% 2.400,240 4,80Q4B0 0 5,190,795 -7.52% (390,315) Total Tax Increment 24,002,404 0 1 0.00% 12,001,202 24,002,404 0 25,953,974 -7.52% (1,951,570) Totals $68,014,438 1 $0 1 000% $34,007,219 1 $68,014,438 1 $0 $74,101,209 1 E.21% ($6,OW,771) Estimated Interest Income Revenues Four factors went into the mid -year analysis for any changes in budgeted interest income revenue - (1) higher or lower interest rates, (2) greater or lesser than anticipated cash receipts, (3) greater or lesser than anticipated disbursements and (4) the timing of the cash receipts and cash disbursements. As a result, Debt Service PA 1 and 2 Funds, RDA PA 1 and PA 2 Capital Improvement Project Funds and the 2004 Housing Fund are projecting increases in interest income revenues. 0 31 Proceeds from 2"d Trust Deed Repayments Project Area 1 & 2 Low- & Moderate- Income Housing Funds have been receiving funds from the sale of Agency -assisted homes. The Agency will receive 2nd Trust Deed repayments of $8,720 from PA 2. Miscellaneous Revenues Most notably, the Agency received a payment of $23,029 from LINC Housing, to be applied toward accrued interest, on a Senior Apartment Note held by the Agency. In addition, the Agency has budgeted receiving a $250,000 payment from a developer in regards to the SilverRock Resort. Transfers In and Out Transfers in Staff is requesting an increase in the transfer in accounts of $29,539,193 pertaining to the early payoff of City loans approved by the Agency, subject to City Manager/Executive Director approval. Transfers Out Staff is requesting changes in transfer out accounts pertaining to requested changes in (1) Capital Projects and (2) the early payoff of the City loans as further detailed in Attachment 2. Transfers out - Capital Projects Staff is requesting a decrease in transfers out of $(26,578,022) related to the new Coral Mountain Apartment project. The entire amount of this multi -year project was appropriated earlier this year; however, only $2,421,978 is required in Fiscal Year 2010-2011. In addition, staff is requesting an appropriation of $78,311 for the Washington Street 1-10 Interchange project and is also requesting a decrease of $(141,488) in appropriations for the Highway 111 undergrounding project based on the recent signing of the Coral Mountain Apartment project agreement. Transfers out - Early payoff of City Loans Staff is requesting the elimination of $(18,646,289) in capital projects most notably $(17,945,424) in SilverRock Infrastructure funding to fund the early payoff of City loans. 0"32 Reduced Pass Through & Additional ERAF Appropriations Requested The Agency is required to pass through to other taxing entities that operate in the Project Area tax increment funds based upon negotiated or statutory agreements. Since the tax increment will decrease, these pass through amounts will decrease by $(5,284,792) to a total of $35.37 million. In addition to the $35.37 million passed through to other entities in the County of Riverside, the Agency is required to transfer an additional $4.86 million to the State of California in May 2011 and notify the County by March 1, 2011 of the RDA Board's intention to pay the SERAF payment. The SERAF payment had originally been budgeted in the FY 2010-2011 budget to be paid from PA 2 Debt Service Fund; however, staff is requesting that this payment now to paid for from PA 1 Debt Service Funds and appropriate an additional $4,506 based upon correspondence from the State Department of Finance. Additional RDA PA 1 and PA 2 Capital Project Fund Appropriations Requested Staff is requesting $138,000 for Graffiti removal of which $62,800 is budgeted in RDA PA 1 Capital Project Fund and $55,200 is budgeted in RDA PA 2 Capital Project Fund. Additional RDA PA1 and 2 Debt Service Fund Appropriations Requested Staff is requesting an increase of $2,200 for RDA PA1 Debt Service Fund for fees charged to the Agency for tax increment collections by the County pursuant to SB 2557 and an additional $18,900 for RDA PA 2 Debt Service Fund. In addition, staff is requesting a decrease of $(63,958) in interest expense because of an early payoff of principal on the Highway 1 1 1 loan. These proposed adjustments will result in an estimated increase in net revenues over appropriations of $24,923,985 in Project Area No. 1 and $16,577,634 in Project Area No. 2. FINDINGS AND ALTERNATIVES: The alternatives available to the Redevelopment Agency Board include: 1. Approve a decrease of $ (9,413,762) in estimated property tax increment revenue. Approve an increase of $161,000 in estimated investment interest revenue. Approve an increase of $8,720 in 2nd Trust Deed revenues. 0'33 Approve an increase of $273,029 in miscellaneous revenues. Approve an increase of $29,539,193 in transfers in and a decrease of $0 5,748,295) in transfers out. Approve a decrease in pass through payments of $(5,284,792). Approve an increase of $138,000 in appropriations for reimbursement to the General Fund for staff time related Graffiti removal efforts. Approve an increase of $21,100 in County fees related to the collection of property taxes. Approve an increase of $4,506 for the Fiscal Year 2010-2011 Supplemental Educational Revenue Augmentation Funds (SERAF) payment. Approve a decrease of $(63,958) in interest expense for the payment of principal on the Highway 111 City loan. Receive and file the Mid -Year Budget Report. 2. Do not approve the above changes; or 3. Provide staff with alternative direction. Respectfully submitted, ri John M. Falconer, Finance Director Approved for submission by: Thomas P. Genovese, Executive Director Attachments: 1. Mid -Year review budget worksheet 2. Mid -Year review budget detail 3. 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M- pa m N Q m m Q N O O O O O O O O Ky mm o oom c o m m M m N moo N_ >m omro m DO NN Nv �w rc 000 00 0000000 000 0000000 00000 000 00 000000 000 0000000 00000 o O O 0 f 0 o 00 N m Q m M M N 00 O O N O m m h 0 w NM 00 Ln r�mQmQ W INN �ON�(1 N(Om O(D i� Mm MO N-mM-mo 0o Nomwoo- N OO O r N m N-NrOvm m N m o m oo N O r QQ Q N(Or N-NWMWN _ M m N m m Q m N U Z W O a Z Z W a� w N >20 wmZ N www a�a ZO 5zzw awl gwm p Z xLL Q ul Qw K w 0 O 0 J L) �- Z W G O F ZO H O W Z Fes- Z O m W L) W W U Z wW �O FZ O 0ww ww wa- om W N O J(D W UQ2aZZ_>QO n p a0 = J a �w~ oa OWF�WzuxOaa a a 00-aa- a::) JMa ww0a=A-FWww_pno (7 O< OT�j WOF (If0OO O p = OW 0 QC)dWW Ua UQ- vow¢Z) w��zNUp,0� WJUaWWZUZ Z zHNQO00O-�oaa??mZ OmQ000 a0LLZ 0C-Lw01 0�f w�wzOWw � 0w¢waOWa a0n>NJLL>Q>3:33arra T mmm?aw� av)(.)w¢� M Z LL 0 Z O m w w 0 O f 0 0 N p Z w U ru w N m W 0 0 Z LL Z z W w O W a E a U 0 . 4 1 Department Report: o�• w5 F OF rKEO TO: Honorable Chair and Members of the Agency Board FROM: Douglas R. Evans, Assistant City Manager — Development Services DATE: February 15, 2011 SUBJECT: Department Report Regarding an Update of the Five Year Implementation Plan for the La Quinta Redevelopment Agency Staff will provide verbal update.