2011 04 05 RDA&0 4 4 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
Regular Meeting
TUESDAY, APRIL 5, 2011
3:00 P.M. Closed Session / 4:00 P.M. Open Session
Beginning Resolution No. RA 2011- 016
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. Persons identified as negotiating parties are not
invited into the Closed Session meeting when acquisition of real property is considered.
CONFERENCE WITH THE AGENCY'S REAL PROPERTY NEGOTIATOR,
DOUGLAS R. EVANS, PURSUANT TO GOVERNMENT CODE SECTION
54956.8 CONCERNING POTENTIAL TERMS AND CONDITIONS FOR THE
ACQUISITION AND/OR DISPOSITION OF REAL PROPERTY LOCATED
SOUTHEAST OF THE MILES AVENUE AND WASHINGTON STREET
INTERSECTION AND NORTH OF THE WHITEWATER CHANNEL (APN 604-
Redevelopment Agency Agenda 1 April 5, 2011
0,101
630-027►. PROPERTY OWNER / NEGOTIATOR: CP DEVELOPMENT LA
QUINTA, LLC, RICHARD OLIPHANT
RECESS TO CLOSED SESSION
RECONVENE AT 4:00 P.M.
4:00 P.M.
PUBLIC COMMENT
At this time members of the public may address the Redevelopment Agency on any matter
not listed on the agenda. Please complete a "request to speak" form and limit your
comments to three minutes.
CONFIRMATION OF AGENDA
APPROVAL OF MINUTES
APPROVAL OF MINUTES OF MARCH 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 APRIL 5, 2011
2. APPROVAL OF AN APPROPRIATION FOR CAPITAL PROJECTS FROM THE
PROCEEDS OF THE 2011 FINANCING AUTHORITY AND 2011
REDEVELOPMENT AGENCY BOND ISSUES
3. APPROVAL OF AN ASSIGNMENT
BETWEEN THE CITY OF LA
REDEVELOPMENT AGENCY FOR
REVOCABLE LICENSE AGREEMENT
QUINTA FARMS. LLC
BUSINESS SESSION - NONE
STUDY SESSION — NONE
AND ASSUMPTION AGREEMENT
QUINTA AND THE LA QUINTA
THE CONTRACT SERVICES AND
BETWEEN THE AGENCY AND LA
CHAIR AND BOARD MEMBERS' ITEMS — NONE
0102
Redevelopment Agency Agenda 2 April 5, 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.
1. PUBLIC HEARING TO CONSIDER A RESOLUTION OF THE LA QUINTA
REDEVELOPMENT AGENCY ADOPTING THE FISCAL YEAR 2011-2012
THROUGH 2O15-2016 CAPITAL IMPROVEMENT PROGRAM AND MAKING
CERTAIN FINDINGS PURSUANT TO HEALTH AND SAFETY CODE SECTION
33445(a)
A. RESOLUTION ACTION
ADJOURNMENT
The next regular meeting of the Redevelopment Agency will be held on April 19,
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 April 5,
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 April 1, 2011.
DATED: 31311 2-o11
VERONICA J ON CINO, 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.
0103
Redevelopment Agency Agenda 3 April 5, 2011
a,
�444"
c7" 5
�GF`tiIOF
RDA MEETING DATE: April 5, 2011
ITEM TITLE: Demand Register Dated
April 5, 2011
RECOMMENDATION:
It is recommended the Redevelopment Agency Board:
Receive and File the Demand Register Dated
April 5, 2011 of which $3,703,236.34
AGENDA CATEGORY:
BUSINESS SESSION
CONSENT CALENDAR I
STUDY SESSION
PUBLIC HEARING
PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA
`F'd,r 4 CP4��
`N OF'I'�5�'
COUNCIL/RDA MEETING DATE: April 5, 2011
ITEM TITLE: Approval of an Appropriation for Capital
Projects From the Proceeds of the 2011 Financing
Authority and 2011 Redevelopment Agency Bond
Issues
*19161hTilILIOe
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
�11-
STUDY SESSION:
PUBLIC HEARING:
Approve an appropriation of $68,475,000 for capital projects from the proceeds of the
2011 Financing Authority and 2011 Redevelopment Agency Bond Issues, subject to
the signing of the bond purchase agreements.
FISCAL IMPLICATIONS:
The 2011 Financing Authority and Redevelopment Agency Bond issues are scheduled
to close the first week of April. The following is the estimated net proceeds that will
be available along with the requested appropriations:
6nndlssue
Taxable
Taxable
Taxable
Taxable
Project Area No.1
Project Area No
Project Area No
Financing Authority
Pro'ects
Non -housing
Non-housin
Housin
Hou long
Subtotal
Estimated Net Procaeda
$ 27,830,000
$ 4,275,000
$ 11,000,000
It 25,370,000
$ 68475,000
Requested Appropriations
SiNerRock Public Infnastruchme
Impovements
23,180,853
23,180,853
Fred Wadng Drive RecOnstruction-
Washington St to Adams St
2,012,779
2,012,779
Miles Ave RecOnsWction- Adams St to
573,221
573.221
Dune Palms Rd
City Entrence Monuments $ Landscape
Improvements
1.689,000
1 fi89,o00
SilverRock Entry Feature B Public Roads
4,649,147
4.849,147
Washington Street Apanments
7,611,810
7,611,810
Washington Street Testa Property
11,000,000
4,243.415
15,243415
13,514,775
13,514,775
Dune Palm at Weshvadl Ho A ailments
TOWIre uesteda pro natlone1
$ 27830,000
$ 4,275,000
$ 11000000
i $ 25,370,000
$ 68,475000
CHARTER CITY IMPLICATIONS:
None.
201=011 1 1 Total
1,216,631 1 1 24,397,484
2,012,T19
573221
1,689.000
393017 5,042,164
10,640.862 18,252,672
15,243,415
- 13.514.n5
0114
BACKGROUND AND OVERVIEW:
On February 15, 2011, the Agency authorized the staff to begin the process to issue
bonds. There are various factors that go into the size of a bond issue, which
ultimately result in the net amount of cash received from the bond proceeds. These
factors include the projected tax increment revenue collections, the rating given by
Standard & Poor's, the interest rate environment in the municipal bond market, the
type of bond issue — tax exempt or taxable, other municipal agencies issuing debt at
the same time, and alternative investments for investors to consider. The amount of
cash that is estimated to be deposited in the first part of April 2011 is $68,475,000.
The actual amount of bond proceeds will not be known until the bond purchase
contracts are signed.
All Capital Improvement Projects are accounted for in the City Capital Project Fund
(Fund 401). This is done to comply with Government Accounting Standards Board
(GASB) 34 which requires that the City track capital projects and determine if they
should be reported as a fixed asset. The City was an early implementer of GASB 34 in
June 30, 2001 and has been using Fund 401 in a similar fashion, even before GASB
34, since the mid 1990's.
Within Fund 401, individual project budgets are set up to track the expenditures and
the sources of revenue used to pay for the expenditures. Many individual project
budgets have more than one funding source to pay for the costs of the project. In all
cases, the estimated revenue and appropriation amounts for each individual capital
projects must agree which is the case in this report.
Once completed, these assets will be reported in the Comprehensive Annual Financial
Report (CAFR). The CAFR reports the financial activity of the City, the La Quinta
Redevelopment Agency, the La Quinta Housing Authority and the La Quinta Financing
Authority.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Redevelopment Agency include:
1. Approve an appropriation of $68,475,000 for capital projects from the proceeds
of the 2011 Financing Authority and 2011 Redevelopment Agency Bond Issues,
subject to the signing of the bond purchase agreements; or
pl15
2. Do not approve an appropriation of $68,475,000 for capital projects from the
proceeds of the 2011 Financing Authority and 2011 Redevelopment Agency Bond
Issues, subject to the signing of the bond purchase agreements; or
3. Provide staff with alternative direction.
Respectfully submitted,
A&rt+aaw,---
'-
John M. Falconer, Finance Director
Approved for submission by:
Thomas P. Genovese, Executive Director
0?16
T4ht 4 ZP Qum rry
COUNCILIRDA MEETING DATE: April 5, 2011
ITEM TITLE: Approval of an Assignment and Assumption
Agreement Between the City of La Quinta and the La
Quinta Redevelopment Agency for the Contract Services
and Revocable License Agreement between the Agency
and La Quinta Farms, LLC
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION: _
CONSENT CALENDAR: 3
STUDY SESSION:
PUBLIC HEARING:
Approve an Assignment and Assumption Agreement between the City of La Quinta
and the La Quinta Redevelopment Agency for the Contract Services and Revocable
License Agreement between the Agency and La Quinta Farm, LLC, and authorize the
Executive Director to execute the same (Attachment 1).
FISCAL IMPLICATIONS:
None for this action.
BACKGROUND AND OVERVIEW:
On August 4, 2009, the La Quinta Redevelopment Agency entered into a Contract
Services and Revocable License Agreement (the "Agreement") with Precision
Landleveling, Inc. to manage and maintain the entire 290 acres of undeveloped
property at SilverRock Resort for PM10 purposes.
Precision Landleveling, Inc. was provided a revocable license to farm up to 50 acres of
property, at no cost to the City, to grow and sell fruits and vegetables. This operation
would be separate from the management of the undeveloped property, as indicated in
the Agreement. The Agreement provides flexibility for the farming portion to be
relocated on the undeveloped property, if necessary.
On July 8, 2010, an Assignment and Assumption Agreement and Consent was
approved to allow La Quinta Farms, LLC to assume all of the rights and obligations of
Precision Landleveling, Inc. under the Agreement.
In light of the Governor's proposal to eliminate redevelopment agencies by July 1,
2011, La Quinta Redevelopment Agency transferred the Agency's property at
SilverRock to the City on March 4, 2011. Since the property has been transferred, the
rights and obligations of the Agency under the Agreement should similarly be
transferred. The attached Assignment effectuates the transfer.
FINDINGS AND ALTERNATIVES:
Alternatives available to the Agency Board include:
1. Approve an Assignment and Assumption Agreement between the City of La
Quinta and the La Quinta Redevelopment Agency for the Contract Services and
Revocable License Agreement between the Agency and La Quinta Farms, LLC,
and authorize the Executive Director to execute the same; or
2. Do not approve an Assignment and Assumption Agreement between the City of
La Quinta and the La Quinta Redevelopment Agency for the Contract Services
and Revocable License Agreement between the Agency and La Quinta Farms,
LLC; or
3. Provide staff with alternative direction.
Respectfully submitted,
- , iz L
Edie Hylton
Community Services Director
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachment: 1. Assignment and Assumption Agreement
ATTACHMENT 1
ASSIGNMENT AND ASSUMPTION AGREEMENT
This ASSIGNMENT AND ASSUMPTION AGREEMENT (this "Assignment") is
entered into by and between LA REDEVELOPMENT AGENCY, a public body,
corporate and politic ("Assignor"), and CITY OF LA QUINTA, a California municipal
corporation and charter city ("Assignee"), as of this _ day of April, 2011, with
reference to the following facts:
A. Assignor and Precision Landleveling Inc, a California corporation
("Precision"), entered into that certain Contract Services and Revocable License
Agreement dated on or about August 4, 2009, pertaining to, among other things,
the management and maintenance of the SilverRock Resort property (the
"Agreement").
B. On or about July 8, 2010, Precision assigned all of its rights and
obligations under the Agreement to La Quinta Farms, LLC, a California limited
liability company.
C. On or about March 4, 2011, Assignor transferred all of its interests in
the SilverRock Resort property to Assignee.
D. Assignor now desires to assign and transfer to Assignee, and
Assignee desires to accept from Assignor, all of Assignor's right, title and interest
in and to the Agreement.
NOW THEREFORE, Assignor and Assignee agree as follows:
1. Assignment. Assignor hereby assigns, conveys, transfers and
delivers to Assignee all of Assignor's right, title, and interest in and to the
Agreement, and Assignee hereby accepts such assignment and agrees to assume
performance of all terms, covenants and conditions occurring or arising under the
Agreement as of the date of this Assignment.
2. Assumption of Obligations. By acceptance of this Assignment,
Assignee hereby agrees to assume all of Assignor's right, title, and interest in and
to the Agreement, and Assignee agrees to timely discharge, perform or cause to be
performed and to be bound by all of the liabilities, duties and obligations imposed in
connection with the Agreement from and after the date of this Assignment to the
same extent as if Assignee had been the original party thereto.
3. Further Assurances. Each party hereto hereby agrees to
execute any additional documents, and take any further actions necessary to effect
or evidence the assignment and assumption set forth in Section 1 and Section 2
above.
882/015610-0002 _ o
1165172.01 a03129111 _ 1
4. Miscellaneous. This Assignment shall be binding on and inure
to the benefit of the parties and their respective successors and assigns. The
paragraph headings of this Assignment are for convenient reference only and shall
not be used in interpreting this Assignment.
5. California Law. This Assignment shall be governed by and
interpreted in accordance with the internal laws of the State of California, without
regard to conflict of law principles.
882015610 0002 _
1165172.01 a03/29/11 —� 0120
IN WITNESS WHEREOF, Assignor and Assignee have executed this Assignment as
of the date and year first above written.
"Assignor"
LA QUINTA REDEVELOPMENT AGENCY, a
public body, corporate and politic
in
ATTEST:
Thomas P. Genovese, Executive Director
Veronica J. Montecino, CMC
Secretary, La Quinta Redevelopment Agency
APPROVED AS TO FORM:
M. Katherine Jenson, Agency Counsel
La Quinta Redevelopment Agency
"Assignee"
CITY OF LA QUINTA, a California municipal
corporation and charter city
M
ATTEST:
Veronica J. Montecino, CMC
City Clerk
APPROVED AS TO FORM:
Thomas P. Genovese, City Manager
M. Katherine Jenson
City Attorney
892,015610-0002
1165172.01 a0329/11
'a
T-itY 4 4 a"
AGENDA CATEGORY:
COUNCIL/RDA MEETING DATE: April 5, 2011
BUSINESS SESSION: _
ITEM TITLE: Public Hearing to Consider a Resolution
Adopting the Fiscal Year 201 1-2012 Through 2015- CONSENT CALENDAR:
2016 Capital Improvement Program and Making Certain STUDY SESSION:
Findings Pursuant to Health and Safety Code Section
33445(a) PUBLIC HEARING: '
RECOMMENDATION:
Conduct a public hearing pursuant to Health and Safety Code Section 33679 and
adopt a Resolution of the La Quinta Redevelopment Agency approving the expenditure
of funds for improvements set forth in the Fiscal Year 201 1-2012 through 2015-2016
Capital Improvement Program (CIP), making certain findings pursuant to Health and
Safety Code Section 33445(a) with respect to such expenditures, and authorizing the
use of La Quinta Redevelopment Agency (RDA) funding for the improvements
identified in the CIP.
FISCAL IMPLICATIONS:
Adoption of the Resolution makes certain findings regarding the projects identified in
the Fiscal Year 201 1-2012 through 2015-2016 CIP. The findings relate to the use of
Redevelopment Agency Project Area No. 1 funds for improvements within or
contiguous to Project Area No. 1 and to use Project Area No. 2 funds for projects
within or contiguous to Project Area No. 2.
The first year of the five-year forecast, or capital budget, will be included in the City's
annual operating budget. When the City Council approves the annual operating budget
for Fiscal Year 2011-2012, it will also authorize the expenditure of $65,526,489 for
Fiscal Year 2011-2012 capital project expenditures.
0)22
The projects proposed to receive Redevelopment Agency funding during Fiscal Year
2011-2012 will be directly impacted if the State chooses to abolish Redevelopment
Agencies.
CHARTER CITY IMPLICATIONS:
RDA funding is proposed to be used on several of the projects identified within the
Capital Improvement Plan. These projects will be subject to State prevailing wage
requirements.
BACKGROUND AND OVERVIEW:
On March 15, 2010, staff presented the draft Fiscal Year 2011-2012 through Fiscal
Year 2015-2016 CIP to the City Council for review and discussion during the Study
Session. Following discussion, it was the consensus of the City Council that the CIP
be addressed during a public hearing on April 5, 2011.
During the Study Session, staff presented several RDA Project Area funded projects for
Council's consideration that were not included in the discussion draft. The projects
included:
Fred Waring Drive Reconstruction (Washington Street to Adams)
Miles Avenue Reconstruction (Adams Street to Dune Palms Road)
City Entrance Monuments & Landscape Improvements
Dune Palms Road at Westward Ho Apartments
Washington Street Senior Housing (Testa)
Washington Street Apartments Rehabilitation
Each of these projects and their associated costs are included within the CIP and
scheduled to receive funding during Fiscal Year 2011-2012.
Because the last two projects (e.g., those located on Washington Street) involve the
RDA funding the construction of publicly owned buildings, California Health and Safety
Code Section 33679 requires that the City Council hold a public hearing on the
proposed RDA funding for those projects, and that the RDA prepare a summary report
that (i) estimates the amount of RDA tax increment required for those projects, (ii) sets
forth the facts supporting the findings required to be made pursuant to Health and
Safety Code Section 33445(a) for those projects, and (iii) sets forth the redevelopment
purpose of the proposed funding for those projects. The summary report, a copy of
which is attached to this report as Attachment 1, has been prepared by staff and has
been made available for public review and inspection.
' 0??3
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency include:
1. Conduct a public hearing pursuant to Health and Safety Code Section 33679
and adopt a Resolution of the La Quinta Redevelopment Agency approving the
expenditure of funds for improvements set forth in the Fiscal Year 201 1-2012
through 2015-2016 Capital Improvement Program (CIP),d making certain
findings pursuant to Health and Safety Code Section 33445(a) with respect to
such expenditures, and authorizing the use of La Quinta Redevelopment Agency
(RDA) funding for the improvements identified in the CIP; or
2. Conduct a public hearing pursuant to Health and Safety Code Section 33679
and do not adopt a Resolution of the La Quinta Redevelopment Agency
approving the expenditure of funds for improvements set forth in the Fiscal Year
2011-2012 through 2015-2016 Capital Improvement Program (CIP) and making
certain findings pursuant to Health and Safety Code Section 33445(a) with
respect to such expenditures, and do not authorize the use of La Quinta
Redevelopment Agency (RDA) funding for the improvements identified in the
CIP; or
3. Provide staff with alternative direction.
Respectfully submitted,
thy R,,[.1 . ,}7
�� .�.
Attachment: 1. Summary Report
Approved for submission by:
Thomas P. Genovese, Executive Director
0324
RESOLUTION NO. RA 2011-
A RESOLUTION OF THE LA QUINTA
REDEVELOPMENT AGENCY APPROVING THE
EXPENDITURE OF FUNDS FOR CERTAIN
IMPROVEMENTS SET FORTH IN THE FISCAL
YEAR 2011-2012 THROUGH 2O15-2016
CAPITAL IMPROVEMENT PLAN AND MAKING
CERTAIN FINDINGS PURSUANT TO HEALTH
AND SAFETY CODE SECTION 33445(a) WITH
RESPECT TO SUCH EXPENDITURES
WHEREAS, pursuant to Government Code Section 66002, the City of
La Quinta ("City") is required to review and adopt a Capital Improvement Plan (the
"Plan"); and
WHEREAS, the Redevelopment Agency is required to conduct a noticed
public hearing for consideration and adoption of the Plan; and
WHEREAS, notice of the public hearing has been given pursuant to
Government Code Section 65090; and
WHEREAS, the Plan is a five-year planning instrument used by the
Redevelopment Agency to identify capital improvement needs and to coordinate
financing and timing of those needs in a manner that maximizes the return to the
public; and
WHEREAS, the Plan is a statement of the Redevelopment Agency's goals,
objectives and priorities for a five-year Plan and the financial commitments required
to accomplish those objectives; and
WHEREAS, the Fiscal Year 2011-2012 through 2015-2016 Plan proposes
approximately $123,389,158 in improvement projects and $138,220,579 of
unfunded additional improvement projects over the five-year period, commencing
on July 1, 2011 and ending June 30, 2016; and
WHEREAS, the amount allocated from the Plan for first -year projects, called
the "Capital Budget," proposes $65,526,489 in improvements, as shown in Exhibit
1, which is attached hereto and made a part of this Resolution; and
WHEREAS, there is inadequate funding within the City's General Fund or .
from other sources to completely and fully fund the improvements identified within
the Capital Budget; and
0125
Resolution No. RA 2011-
Capital Improvement Plan
Adopted: April 5, 2011
Page 2
WHEREAS, the completion of the improvements identified within the Capital
Budget that are located inside La Quinta Redevelopment Project Area No. 1
("Project Area No. 1"), which are identified on Exhibit 1 as funded by "PA #1" (the
"Project Area No. 1 Improvements"), will help to obtain the goals and objectives of
Project Area No. 1 as well as to afford an opportunity to eliminate conditions of
blight in Project Area No. 1; and
WHEREAS, the completion of the improvements identified within the Capital
Budget that are located inside La Quinta Redevelopment Project Area No. 2
("Project Area No. 2"), which are identified on Exhibit 1 as funded by "PA #2" (the
"Project Area No. 2 Improvements"), will help to obtain the goals and objectives of
Project Area No. 2 as well as to afford an opportunity to eliminate conditions of
blight in Project Area No. 2; and
WHEREAS, with the legislative body's consent and the satisfaction of certain
specified requirements set forth in Health and Safety Code Section 33445, the
California Community Redevelopment Law (Health and Safety Code Section 33000 et
seq.) (the "CRU) 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, certain of the Project Area No. 2 Improvements involve
construction of new publicly owned affordable housing buildings (the "Washington
Street Work"); and
WHEREAS, Health & Safety Code Section 33679 requires that before a
redevelopment agency can expend tax increment funds to fund the cost of the
installation and construction of publicly owned buildings the agency must prepare a
Summary Report to consider the agency's proposed payment for such installation
and construction, that the agency's board of directors and the legislative body
conduct a noticed joint public hearing with respect to the proposed payment, and
that the approval of the proposed payment be accompanied by certain findings and
determinations; and
WHEREAS, a Summary Report for the Washington Street Work has been
prepared and the joint public hearing has been conducted in accordance with
applicable requirements of law; and
WHEREAS, the Agency Board of Directors has considered all the information
and evidence set forth in the Summary Report and presented by persons wishing to
appear and be heard concerning the impact of the Washington Street Work on
Project Area No. 2 and the City as a whole; and
0326
Resolution No. RA 2011-
Capital Improvement Plan
Adopted: April 5, 2011
Page 3
WHEREAS, the Washington Street Work and all of the other Project Area No.
2 Improvements are in accordance with the Redevelopment Plan for Project Area
No. 2 and are of benefit to Project Area No. 2 and the City of La Quinta; and
WHEREAS, the Project Area No. 1
Redevelopment Plan for Project Area No.
and the City of La Quinta; and
Improvements are in accordance with the
1 and are of benefit to Project Area No. 1
WHEREAS, all action required of the Agency to be taken precedent to review
and consideration of the Washington Street Work and all of the other Project Area
No. 2 Improvements, and the Project Area No. 1 Improvements by the Agency
have been taken in accordance with applicable law.
NOW THEREFORE, BE IT RESOLVED, by the La Quinta Redevelopment
Agency, as follows:
SECTION 1. The above recitations are true and correct.
SECTION 2. Pursuant to Health and Safety Code Section 33445(a), the
Agency finds and determines that:
A. The Project Area No. 1 Improvements are of benefit to Project Area
No. 1, by helping to eliminate blight within Project Area No. 1, in that
the Project Area No. 1 Improvements consist of public infrastructure
improvements, and the Redevelopment Plan for Project Area No. 1
provides for the elimination, and prevention of the spread, of blight
and blighting influences through the installation, construction, or re-
construction of streets, utilities, and other public facilities and
improvements.
B. The Project Area No. 2 Improvements (other than the Washington
Street Work, which is addressed in Paragraph C below) are of benefit
to Project Area No. 2, by helping to eliminate blight within Project
Area No. 2, in that the Project Area No. 2 Improvements (other than
the Washington Street Work, which is addressed in Paragraph C
below) consist of public infrastructure improvements and one property
acquisition, and the Redevelopment Plan for Project Area No. 2
provides for the elimination, and prevention of the spread, of blighting
influences through the installation, construction, reconstruction,
redesign, or reuse of streets, utilities, curbs, gutters, sidewalks, traffic
control devices, flood control facilities and other public improvements,
and also provides for property acquisition as a means of eliminating
and preventing the spread of blighting influences.
0)27
Resolution No. RA 2011-
Capital Improvement Plan
Adopted: April 5, 2011
Page 4
C. The Washington Street Work is of benefit to Project Area No. 2, by
providing housing for low- or moderate -income persons, in that the
Washington Street Work consists of the construction of additional
affordable housing units and necessary on- and off -site improvements.
D. No other reasonable means of financing the Project Area No. 1
Improvements or the Project Area No. 2 Improvements are available to
the community, for the following reasons: (i) City monies are
dedicated to critical police, fire, and other necessary expenditures,
including other capital improvement projects; (ii) the only practical
means of paying for the Project Area No. 1 Improvements and the
Project Area No. 2 Improvements is to use Agency funding; (iii)
without Agency funding for the Project Area No. 1 Improvements and
the Project Area No. 2 Improvements the Project Area No. 1
Improvements and the Project Area No. 2 Improvements would not be
completed, all to the detriment of Project Area No. 1 and Project Area
No. 2.
E. The Project Area No. 1 Improvements and the Project Area No. 2
Improvements are consistent with the Agency's implementation plan
adopted pursuant to Health and Safety Code Section 33490 (the
"Implementation Plan"), in that improving public infrastructure and
facilities within Project Area No. 1 and Project Area No. 2 are goals
set forth in the Implementation Plan, and acquiring the Village Area
Land described in Exhibit 1 and performing the Washington Street
Work are proposed projects set forth in the Implementation Plan.
SECTION 3. The Agency's expenditure for the Project Area 1 Improvements
and the Project Area No. 2 Improvements is necessary to effectuate the purposes
of the Redevelopment Plans for Project Area No. 1 and Project Area No. 2 and is in
the best interests of the City of La Quinta.
SECTION 4. The Capital Budget is hereby included in the Agency's Fiscal
Year 2011-2012 operating budget, which appropriates funds for specific facilities,
equipment and improvements, and the Agency hereby approves the Agency's
funding of the Project Area No. 1 Improvements and the Project Area No. 2
Improvements.
0)28
Resolution No. RA 2011-
Capital Improvement Plan
Adopted: April 5, 2011
Page 5
PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta
Redevelopment Agency held on this 5th day of April 2011, by the following vote to
wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
VERONICA J. MONTECINO, CIVIC, Secretary
La Quinta Redevelopment Agency
(Seal)
APPROVED AS TO FORM:
M. KATHERINE JENSON, Agency Counsel
La Quinta Redevelopment Agency
TERRY HENDERSON, Chairperson
La Quinta Redevelopment Agency
0329
ATTACHMENTI
SUMMARY REPORT
FOR THE EXPENDITURE OF TAX INCREMENT REVENUE
BY THE LA QUINTA REDEVELOPMENT
ON THE WASHINGTON STREET APARTMENT REHABILITATION PROJECT
PURSUANT TO HEALTH & SAFETY CODE SECTIONS 33445 AND 33679
The La Quinta Redevelopment Agency ("Agency') is the redevelopment agency activated by the
City Council of the City of La Quinta ("City' or "City Council" as appropriate) pursuant to the
California Community Redevelopment Law (Health & Safety Code § 33000 et seq.).
The Agency and City Council have scheduled a joint public hearing for April 5, 2011 to consider
the Agency's use of up to $7,611,810 of proceeds from the 2011 Series 'A' La Quinta Financing
Authority Local Agency Taxable Bonds and $3,362,058 of proceeds from the 2004 Low &
Moderate Income Housing Bond Proceeds; and $7,278,804 from Project Area 2 Low &
Moderate Tax Income Tax Increment Fund, for a total of $18,252,672, to fund the construction
of 24 new affordable units, a commons building, two units to house an on -site management and
maintenance personnel, the substantial rehabilitation of 72 units affordable to very low and low
income seniors and special needs residents, construction of a sound wall, and to pay off an
existing loan with Provident Bank. Debt service payments for these bonds are funded by La
Quinta Redevelopment Project No. 2 housing tax increment revenue. All of these facilities will
be subsequently owned by the La Quinta Housing Authority.
Pursuant to Health and Safety Code Sections 33445 and 33679, whenever the Agency
proposes to use tax increment funds to acquire land and/or to pay for the construction or
installation of a publicly owned building, the Agency and City Council must hold a public hearing
on the use of the tax increment funds for that purpose. At the conclusion of the public hearing,
the Agency and City Council may adopt resolutions approving the use of Agency tax increment
funds for that purpose.
Prior to the public hearing, Health and Safety Code Section 33679 requires that the Agency
prepare a summary report that:
• Estimates the amount of tax increment revenue proposed to be used to acquire land and
pay for the construction of any publicly owned building, including interest payments.
• Provides an explanation of how the acquisition of land or the installation or construction of
the publicly owned buildings, facilities, structures, or other improvements are of benefit to
the project area by helping to eliminate blight within the project area or providing housing for
low- or moderate -income persons.
• Provides an explanation as to why no other reasonable means of financing the installation or
construction of the publicly owned buildings, facilities, structures, or other improvements are
available to the community.
• Describes how the expenditure of tax increment revenue for the acquisition of land or the
cost of buildings, facilities, structures, or other improvements is consistent with the
implementation plan adopted pursuant to Section 33490.
0330
Describes the redevelopment purpose for which the tax increment revenue is being used to
pay for the land and construction of the publicly owned building.
BACKGROUND
In October 2008, the La Quinta Redevelopment Agency purchased the Washington Street
Apartments, a 72-unit senior and special needs affordable housing complex on approximately
6.39 acres. The units were built in 1980, and are in need of substantial rehabilitation. An
existing manager's unit and commons building will be demolished and replaced as part of the
rehabilitation. In addition, there is an existing block wall that separates the property from
Washington Street, a major north -south arterial that connects the City of La Quinta to the 110
freeway. Preliminary noise readings show that the wall does not attenuate the noise level to
City of La Quinta Noise Standards; therefore, a sound wall will be designed and constructed as
part of this project.
The project will be completed in two phases. These include:
• Phase 1 — Design and construction of a sound wall along the property's western boundary
(Washington Street); design and construction of 24 new one -bedroom units.
Phase 2 — Rehabilitation of the existing 72 units. Residents will be temporarily relocated to
the new one -bedroom units, 24 households at a time. The vacated 24 units will be
rehabilitated, and the residents will be moved back into their units. This process will occur
three times, until all 72 units have been rehabilitated.
SUMMARY REPORT ITEMS
Estimates of the amount of tax increment revenue proposed to be used pay for the
construction of any publicly owned building, including interest payments.
The total estimated cost to construct these publicly -owned facilities is $18,252,672, not including
interest expense. The estimated design and construction costs are as follows:
Engineering
698,000
Construction
13,646,238
Professional
773,200
Contingency
1,435,234
Loan Payoff
1,700,000
Total
18,252,672
It is estimated that total interest costs for the Series 2011 and 2004 Bond proceeds used to fund
these improvements will be $12,576,125, for a total estimated cost of $30,828,797.
An explanation of how the acquisition of land or the installation or construction of the
publicly owned buildings, facilities, structures, or other improvements are of benefit to
the project area by helping to eliminate blight within the project area or providing
housing for low- or moderate -income persons.
0:131
These publicly -owned buildings and facilities will be located in La Quinta Redevelopment
Project Area No. 2 which was established in May 1989. A condition cited for establishing the
Project Area was to increase and improve the community's supply of affordable housing. At that
time, there was a lack of quality affordable housing in the Project Area. The rehabilitation of the
existing Washington Street Apartment units and the addition of 24 new units will address this
condition. The rehabilitation of the aging units will improve the surrounding neighborhood, and
increase property values.
An explanation as to why no other reasonable means of financing the buildings,
facilities, structures, or other improvements, are available to the community.
In light of the current economic situation in the nation, State, and locally, the continuing
reallocation of City and Agency funds to resolve the State budget deficit, and existing City
funding obligations towards police, fire, other public safety, recreation, administrative,
operations and maintenance purposes, the City does not have the capacity to fund these
improvements without the use of Project No. 2 tax increment revenue.
A description as to how the expenditure of tax increment revenue for the acquisition of
land or the cost of buildings, facilities, structures, or other improvements is consistent
with the implementation plan adopted pursuant to Section 33490.
This project is listed under the Housing Program component of the Agency's Implementation
Plan as amended on January 19, 2010, pursuant to Section 33490.
Describe the redevelopment purpose for which the tax increment revenue is being used
to pay for the land and construction of such publicly owned building.
The Redevelopment Plan for Project No. 2 identifies the goal of promoting rehabilitation of
existing housing stock; and increasing, improving, and preserving the supply of housing
affordable to very low, low and moderate income households. Using tax increment revenue to
fund the rehabilitation and new construction of Washington Street Apartments will implement the
goal contained in the Redevelopment Plan by providing rehabilitated and new housing stock
affordable to very low and low income seniors and special needs residents.
This summary report has been prepared in compliance with Health and Safety Code Section
33679. A photocopy may be obtained from the Agency Secretary/City Clerk by paying the usual
photocopy fee regularly charged by the Agency and City.
0132
p:F
0"33