2012 10 16 SACITY AS SUCCESSOR ACIENCY
TO THE LAQUINTA REPEVELOPMENTACIENCY
Agendas and staff reports are
available on the City's web page:
www.la-quinta.org
AGENDA
CITY COUNCIL CHAMBERS
78-495 Calle Tampico I La Quinta, California
Regular Meeting
TUESDAY, OCTOBER 16. 2012 AT 4:00 P.M.
Beginning Resolution No. SA 2012-012
CALL TO ORDER
ROLL CALL
Agency Members: Evans, Franklin, Henderson, Osborne and Chairperson Adolph
CLOSED SESSION - NONE
PUBLIC COMMENT
At this time, members of the public may address the Successor Agency on any matter not
listed on the agenda. Please complete a "request to speak" form and limit your commen
to three minutes. The Successor Agency values your comments; however in accordance
with State law, no action shall be taken on any item not appearing on the agenda unless it
is an emergency item authorized by.GC 54954.2(b).
CONFIRMATION OF AGENDA
APPROVAL OF MINUTES
1 . APPROVAL OF MINUTES OF OCTOBER 2, 2012
CONSENT CALENDAR
NOTE: Consent Calendar items are routine in nature and can be approved by one motion.
1 APPROVAL OF DEMAND REGISTER DATED OCTOBER 16, 2012
CITY AS SUCCESSOR AGENCY TO.RDA 1 OCTOBER 16, 2012.9 001
2. APPROVAL OF AN ASSIGNMENT
BETWEEN CP DEVELOPMENT LA
RETIREMENT RESIDENCE, LP
AND ASSUMPTION AGREEMENT
QUINTA, LLC AND LA QUINTA
3. RECEIVE AND FILE TREASURER'S REPORT DATED AUGUST 31, 2012
4. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED AUGUST
31, 2012 AND INVESTMENT SUMMARY REPORT FOR THE QUARTER
ENDING SEPTEMBER 30, 2012
5. ADOPTION OF A RESOLUTION APPROVING AMENDMENT NO. 7 TO THE
DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN SUCCESSOR
AGENCY TO LA QUINTA REDEVELOPMENT AGENCY AND CP
DEVELOPMENT LA QUINTA, LLC I
BUSINESS SESSION - NONE
STUDY SESSION — NONE
REPORTS AND INFORMATIONAL ITEMS
1 . OVERSIGHT BOARD MINUTES DATED AUGUST 8, 2012
ADJOURNMENT
The next regular meeting of the City as Successor Agency to the La Quinta Redevelopment
Agency will be held on November 6, 2012, 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
1, Susan Maysels, Agency Secretary of the City as Successor Agency to the La Quinta
Redevelopment Agency, do hereby declare that the foregoing agenda was posted on the
outside entry to the Council Chamber at 78-495 Calle Tampico and on the bulletin boards
at 51-321 Avenida Bermudas and 78-630 Highway 111, on October 12, 2012.
DATED: October 11, 2b 12
SM441-1 J' - --�
VKA4AV
SUSAN MAYSELS, Aancyllecretary
Successor Agency to the
La Quinta Redevelopment Agency
CITY AS SUCCESSOR AGENCY TO RDA 2 OCTOBER 16, 2012o 002
Public Notices
• The La Quinta City Council Chamber is handicapped accessible. If special equipment is
needed for the hearing impaired, please call the City Clerk's Office at 777-7103, twenty-
four (24) hours in advance of the meeting and accommodations will be made.
• If special electronic equipment is needed to make presentations to the Successor Agency,
arrangement should be made in advance by contacting the City Clerk's Office at 777-7103.
A one (1) week notice is required.
• If background material is to be presented to the Successor Agency during a meeting, please
be advised that eight (8) copies of all documents, exhibits, etc., must be supplied to the City
Clerk for distribution. It is requested that this take place prior to the beginning of the
meeting.
• Any writings or documents provided to a majority of the Successor 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.
003
CITY AS SUCCESSOR AGENCY TO RDA 3 OCTOBER 16, 2012
MEETING DATE: October 16, 2012
ITEM TITLE: Approval of Demand Register Dated
October 16, 2012
RECOMMENDED ACTION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PURLIC HEARING:
It is recommended the Successor Agency of the La Quinta Redevelopment Agency:
Receive and File the Demand Register Dated
October 16, 2012 of which $150,245.00
Represents Successor Agency Expenditures as detailed below:
Vendor:
Account #:
Amount:
Purpose:
RBF Consulting Inc
231-9001-702.32-07
$820.00
Project Area 1
Lance, Soll, & Lunghard
237-9001-702.32-13
$2,500.00
AB1484 Due Diligence
Lance, Soll, & Lunghard
238-9002-702.32-13
$2,500.00
AB1484 Due Diligence
Torre Nissan
417-9002-702.80-05
$144,425.00
Disbursement Request
By adoption of Resolution No. 2012-002, the City of La Quinta has affirmatively elected to be
the Successor Agency of the La Quinta Redevelopment Agency. Pursuant to Health and
Safety Code Section 34177(a), the Successor Agency of the La Quinta Redevelopment
Agency shall continue to make payments required pursuant to an adopted enforceable
obligations payment schedule. The payments above are required pursuant to the enforceable
obligations payments schedule adopted by the La Quinta Redevelopment Agency on January
17,2012.
"I
Pursuant to Health and Safety Code Section 34173(e), the liability of the Successor Agency of
the La Quinta Redevelopment Agency, when acting pursuant to the powers granted under
ABX126, are limited to the extent of the total sum of property tax revenues it receives pursuant
to part 1.85 of ABX126 (e.g., Health and Safety Code Sections 34170 — 34190) and the value
of assets transferred to it as Successor Agency for the dissolved La Quinta Redevelopment
Agency.
EXECUTIVE SUMMARY:
None.
FISCAL IMPACT:
None.
BACKGROUND/ANALYSIS:
None.
ALTERNATIVES:
None.
Respectfully submitted,
Robbeyn Ord, Finance Director
005
Vefl-Tj2/HA/FA MEETING DATE: October 16, 2012 AGENDA CATEGORY:
ITEM TITLE: Approval of an Assignment and BUSINESS SESSION:
Assumption Agreement Between CP Development La
Quinta, LLC and La Quinta Retirement Residence, L.P. CONSENT CALENDAR: 2-
M11W&I 9:1.10] 0
PUBLIC HEARING:
RECOMMENDED ACTION:
Approve an Assignment and Assumption Agreement between CP Development La
Quinta, LLC and La Quinta Retirement Residence, L.P. for property located on
Seeley Drive within Centre Pointe, and authorize the Executive Director to execute
the agreement.
EXECUTIVE SUMMARY:
La Quinta Retirement Residences, L.P. has purchased a 9.5 acre lot from CP
Development La Quinta, LLC to develop a senior retirement community.
The sale and development of this property requires the Successor Agency to grant
its consent to assign all DDA and Development Agreement rights and obligations
specific to this parcel to La Quinta Retirement Residence, L.P. This is
accomplished via the Assignment and Assumption Agreement (Attachment 1).
BACKGROUND/ANALYSIS:
On December 18, 2003, the former La Quinta Redevelopment Agency entered into
a Disposition and Development Agreement ("DDA") with CP Development La
Quinta, LLC for the sale and development of 50 acres located at the southeast
corner of Washington Street and Miles Avenue. CP Development La Quinta has
developed what is now known as Centre Pointe, which includes a Homewood
Suites Hotel, Applebee's Restaurant, Eisenhower Medical Center and 44 casitas
units.
006
La Quinta Retirement Residence, L.P. purchased the 9.5 acre parcel that was
originally slated for affordable housing. The new property owner and developer,
Lenity Group, LLC, is proposing to develop a three-story retirement facility, four
duplex cottage units, an assisted living facility, and a memory care facility. The
project entitlements were approved by the Planning Commission on September 25,
2012; the Council will hold a public hearing on the project today.
ALTERNATIVES:
In order to facilitate the development of this parcel, the only option for the
Successor Agency is to approve the Assignment and Assumption Agreement and
authorize the Executive Director to executive the agreement.
Respectfully submitted,
Debbie Powell
Economic Development/Housing Manager
Attachment: 1 . Assignment and Assumption Agreement
007
ATTACHMENT 1
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City of La Quinta
P.O. Box 1504
La Quints, CA 92247
(Exernpi From Recording Fee per Gov't Code § 27383)
ASSIGNMENT AND ASSUMPTION AGREEMENT
This ASSIGNMENT AND ASSUMPTION AGREEMENT ("Assignment!') is
entered into this _ day of . 2012, by and between
CPDEVELOPMENT LAQUINTA, LLC, a California limited liability company
("Assignoe') and LAQUINTA RETIREMENT RESIDENCE LIMITED PARTNER-
SHIP, a Washington limited liability company ("Assignee") with reference to the
following:
A. Assignee is the owner in fee simple of certain property located at the
southeast comer of Miles Avenue and Washington Street in the City of La Quinta,
California (Parcel B"). Parcel B is more particularly described on Exhibit "A" attached
hereto and incorporated herein by this reference.
B. Assignee acquired Parcel B from Assignor, on or about July 1, 2011, for
the purpose of constructing thereon (i) a one hundred twenty-four (124) suite retirement
community located in five (5) single -story duplex cottages, (ii) a seventy-two (72) suite
assisted living community, and (iii) a thirty-two (32) bed memory care facility
(collectively, the "Senior Living Facility.")
C. Assignor originally acquired Parcel B, along with certain adjacent real
property (collectively, the "Center Pointe Property"), from the former La Quinta
Redevelopment Agency C'Ageucy") pursuant to the terms of that certain Disposition and
Development Agreement dated on or about December 18, 2003 ("Original DDA"), as
amended on or about October 28, 2004, on or about December 7, 2004, on or about
November 2, 2005, on or about October 20, 2006,,on or about August 23, 2007, and on or
about March 19, 2008 (collectively the "DDA Amendments"). The Original DDA, as
modified by the DDA Amendments, is hereinafter referred to as the "DDN'.
D. Concurrently with the execution of the Original DDA, the Agency and
Assignor entered into that certain Development Agreement, which was recorded in the
Official Records of the County Recorder for the County of Riverside C'Official Records")
on January 5, 2004 as Instrument No. 2004-0005256, and amended by that certain
Amendment No. I to Development Agreement executed on or about October 28, 2004
and recorded in the Official Records on November 8, 2004 as Instrument No. 2004-
0885063 that certain Amendment No. 2 to Development Agreement executed on or
about November 17, 2005 and recorded in the Official Records on December 19, 2005 as
M015610-0061
3112529.2 a09/20/12
EM
Instrument No. 2005-1045418, and that certain Amendment No. 3 to Development
Agreement executed on or about May 6, 2008 and recorded in the Official Records on
June 4, 2008 as Instrument No. 2008-030353 (as amended, the "Development
Agreement.")
E. Pursuant to the terms of the DDA and the Development Agreement, the
Center Pointe Property is to be used for a mixed use development project (the "Project'),
with Parcel B designated for a residential development that includes an affordable
housing component (the "Original Residential Component").
F. On June 28, 2011, the Governor signed Assembly Bill 26 CABxI 26")
and Assembly Bill 27 ("ABxI 27") from the 2011-12 First Extraordinary Session of the
California Legislature. ABxI 26 immediately suspended all redevelopment agency
activities, except continued performance of "enforceable obligations," and set forth a
process to dissolve redevelopment agencies and end redevelopment in California. ABxI
27 provided a "voluntary alternative redevelopment program," which would have
allowed redevelopment agencies to remain in existence and continue redevelopment, if
remittance payments were made to cover the State of California's budget shortfall for
fiscal year 2011-12 and were made in subsequent fiscal years to cover State costs.
A lawsuit was filed, challenging the constitutionality of both ABxI 26 and 27. The
California Supreme Court upheld the constitutionality of ABxI 26, revising the effective
dates of certain provisions, and struck down as unconstitutional ABxI 27. (California
Redevelopment Assn. v. Matosantos (2011) 53 Cal.0 231 ("CRA Case'). ABxI 26 is
chapter 5, Statutes 2011, First Extraordinary Session, which added Part 1.8 (suspension
provisions) and Part 1.85 (dissolution provisions) of Division 24 of the Health and Safety
Code. Under the CRA Case, all redevelopment agencies dissolved February 1, 2012.
Pursuant to Health and Safety Code section 341710), added by Part 1.85 of Division 24,
and City Council Resolution No. 2012-002, the City of La Quinta ffity") is the
"successor agency" to the former La Quinta Redevelopment Agency.
G. On June 27, 2012, the Governor signed Assembly Bill 1484 from the
2011-2012 Regular Session of the California Legislature ("AB 1484"), which established
that successor agencies are separate legal entities from the entities that provide for their
governance. As a result of AB 1484, the successor agency to the former Agency is now
formally the "City as Successor Agency to the La Quinta Redevelopment Agency" (the
"Successor Agency").
H. Concurrently with the execution of this Assignment, (i) the Successor
Agency and Assignee are entering into that certain Amendment No. 7 to Disposition and
Development Agreement C'DDA Amendmenf'), and (ii) the City and Assignee are
entering into that certain Amendment No. 4 to Development Agreement (the "DA
Amendment"). Pursuant to the DDA Amendment and DA Amendment (collectively, the
"DDA/DA Amendments"), each of the DDA and Development Agreement will be
modified to omit the Original Residential Component and add the Senior Living Facility.
The effectiveness of the DDA/DA Amendments is conditioned on the execution and
recordation of this Assignment,
98=15610,0061
3112529.2 aNW12 -2-
� 1 009
1. Assignor now desires to transfer to Assignee all of Assignor's rights and
responsibilities under the DDA and the Development Agreement to the extent that such
rights and responsibilities relate to Parcel B and to the development of the Senior Living
Facility.
NOW, THEREFORE, in consideration of the foregoing Recitals, which are
incorporated herein by this reference, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:
1. Assignor hereby assigns to Assignee all of Assignor's rights and
responsibilities under the terms of the DDA and the Development Agreement with
respect to Parcel B and the Senior Living Facility from and after the "Effective Date" (as
that term is defined in Section 4 below) of this Assignment (collectively, the "Assigned
Rights and Obligations".)
2. Assignee hereby accepts the foregoing assignment of the Assigned Rights
and Obligations, and agrees to be bound by the terms of the DDA and the Development
Agreement with respect to Parcel B and the Senior Living Facility.
3. The parties hereto acknowledge and agree that Assignee shall not be
responsible for any of the obligations of the DDA or the Development Agreement which
arise from ownership of any portion of the Center Pointe Property which arise prior to the
Effective Date hereof, or which arise from any portion of the Center Pointe Property
other than Parcel B after the Effective Date hereof As such, a default by Assignor under
either the DDA or the Development Agreement prior to the Effective Date hereof, or with
respect to any portion of the Center Pointe Property other than Parcel B after the
Effective Date hereof C'Assignor's Default") shall not be deemed a default by Assignee,
and Assignor shall indemnify, defend and hold harmless Assignee from any and all
losses, claims or liability, including without limitation reasonable attorneys' fees and
costs, arising from an Assignor's Default. A default by Assignee under either the DDA
or the Development Agreement with respect to Parcel B after the Effective Date hereof
C'Assignee's Default") shall not be deemed a default by Assignor, and Assignee shall
indemnify, defend and hold harmless Assignor from any and all tosses, claims or liability,
,including without limitation reasonable attorneys' fees and costs, arising from an
Assignee's Default.
4. This Assignment shall be deemed effective upon the written consent to
this Assignment by the City and the Successor Agency (herein referred to as the
"Effective Date").
5. Except as otherwise described in paragraph 4 above, the parties hereto
each warrant and represent that they have taken all necessary corporate action to
authorize the execution and performance of this Assignment and that the individuals
executing this document on behalf of the parties are authorized to do so, and by doing so,
create binding obligations as described herein of the party represented.
8VA15610-W61
3112529.2 aM/20/12 .3-
010
6. This Assignment shall be governed by the internal laws of the State of
Califomia, without regard to conflict of law principles.
7. This Assignment may be executed in counterparts, each of which, when
this Assignment has been signed by all the parties hereto, shall be deemed an original,
and such counterparts shall constitute one and the same instrument.
[End — Signature page follows]
98MI5610-0061
3112529.2 a09120112 -4- 4 . Oil
WHEREFORE, the parties hereto have executed this Assignment on the date first
written above.
"Assignor"
CP DEVELOPMENT LA QUINTA, LLC,
a California limited liability company
By: Oliphant Family Trust
Its: Member
By: — " U 4� (I
Richard R. Oliphant
Its: Trustee
By: Oliphant Enterprises, Inc.
Its: Manager
By:
Richard R. Oliphant
Its: President
"Assignee"
LA QUINTA RETIREMENT
RESIDENCE LIMITED PARTNERSHIP,
a Washington limited partnership
By: La Quinta GP LLC, a Washington
limited liability company
Its: General Partner
By: Hawthorn Management Services
Corp., a Washington corporation
Its: Manager
By:
Barton G. Colson
Its: President
UM15610�M]
3112529.2 &Wr"112 -5- 012
State of California
County of R) VeA
On before me, Notary
Public,
me and fitle of the officer)
personally appeared Ivi C111 6- Vd /r, r oui4—
who proved to me on the basis of satisfactory evidence t6 be the personKwhose narneK
)afaie subscribed to the within instrument, and acknowledged to me that he/sheAhe�,
executed the same in hi&UeW4wk authorized capacity(ies), and that by his4teii0ifteir
signature(s) on the instrument the person
person(s) acted, executed the instrument. K, or I the entity upon behalf of which the
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS y It d official seal. GLA&DISIMPRENZ
'IT
Commission # 1943564
Notary Riblic - California
tur Ri" side County
Signa e MX Comm. r0res Jul 9,2015
(seal)
State of California
County of
On before me, Notary
Public,
(here insert name and title of the officer)
personally appeared
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s)
is/are subscribed to the within instrumen� and acknowledged to me that he/she/they
executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Sign
(seal)
SMI5610-Ml
3112529.2 409M/12 -6-
013
CONSENT
By execution below, the City hereby (i) consents to the foregoing Assignment,
and (ii) releases CP from any further obligations under the DA with respect to Parcel B
and the Senior Living Facility.
CITY OF LA QUINTA, a California
municipal corporation and charter city
organized and existing under die laws of
the State of California
2012 By:
Frank Spevacek, City Manager
rall"ZI-19
Susan Maysels, City Clerk
APPROVED AS TO FORM:
RUTAN & TUCKER, LLP
M. Katherine Jenson, City Attorney
By execution below, the Successor Agency hereby (i) consents to the foregoing
Assignment, and (ii) releases CP from any further obligations under the DDA with
respect to Parcel B and the Senior Living Facility.
CITY AS SUCCESSOR AGENCY TO
THE LA QUINTA REDEVELOPMENT
AGENCY, a public body, corporate and
politic
Date: 2012 By:
Frank Spevacek, Executive Director
ATTEST:
Susan Maysels, Successor Agency
Secretary
APPROVED AS TO FORM:
RUTAN & TUCKER, LLP
By:
M. Katherine Jenson, Successor
Agency Counsel
88=5610-0061
3112529.2 aO9/20112 77-
0141
EXHIBIT "A"
LEGAL DESCRIPTION OF PARCEL B
Real pmpedy In the City of La QLdnta, ODunty of Riverside, State of California, described as
fbilows:
PARCEL B AS SHOWN ON LOT LINE ADJUSTMENT NO. 2006-452 AS EVIDENCED BY MENT
RECORDED APRL 19,2006 AS INSTRUMENT NO. 2DO6-0280726 OF OFFICIAL RECORDS, BEING
MORE PARMLARLY DESCRIBED AS FOLLOWS:
IN THE CrTY OF IA (MNTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA� PARCEL 8
TOGETHER WITH THAT PORTION OF PARCEL 7 OF PARCEL MAP NO. 31116, AS SHOWN BY MAP
ON FILE IN BOOK 212, AT PAGES 60 THROUGH 66, INCLUSIVE, OF PARCEL MAPSF RIVERSIDE
COUNTY RECORDS, BEING IN THE SOUTH HALF OF SECTION 19, TOWNSHIP 5 SMITH, RANGE
7 EAST� S.B.M., MORE PARTICULARLY DESCRIBED AS FOLLOWS:
BEGINNING AT THE MOST SOUTHERLY CORNER OF SAID PARCEL 8;
THENCE ALONG THE SOUTHEASTERLY, EASTERLY AND NORTHERLY BOUNDARY LINES OF SAID
PARCEL 8 THROUGH THE FOLLOWING FIVE (5) COURSES:
(1) NORTH 430 56! 4gr' EAST, A DISTANCE OF 152.65 FEET;
(2) THENCE NORTH 000 1Z IY'WEST� A DISTANCE OF 790.73 FEET,
(3) THENCE SOUTH 890 47' 47- WEST, A DISTANCE OF 239.56 FEET TO THE BEGINNING OF A
TANGENT CURVE, CONCAVE NORTHEASTERLY, HAVING.A RADIUS OF 80.00 FEEG
(4) THENCE NORTHWESTERLY ALONG THE ARC OF SAID CURVF, THROUGH A CENTRAL ANGLE
OF 450 2741"s AN ARC DISTANCE OF 63.48 FELT,
(5) THENCE TANGENT TO SM CURVE NORTH 440 44F 32- WEST, A DISTANCE OF 91.61 FEET
TO THE BEGINNING OF A NON -TANGENT' CURVE, CONCAVE NORTHWESTERLY, HAVING A
RADIUS OF 440.00 FEEIrt A RADIAL UNE PASSM THROUGH SAID POINT SEARS SOUTH 490
W 3 7- EAST,
THENCE SOUTHWESTERLY ALONG THE ARC OF SAID CURVE AND CONTINUING ALONG SAID
NORTHERLY LINE OF PARCEL 8 AND ALONG THE NORTHERLY LINE OF SAID PARCEL 7,
*THROUGH A CENTRAL ANGLE OF 236 54� 45", AN ARC DISTANCE OF 183.63 FEET TO THE
BEGINNING OF A COMPOUND CURVE, CONCAVE NORTHWESTERLYj HAVING A RADIUS OF
840.00 FEET, A RADIAL LINE PASSING THROUGH SAID POINT BEARS SOUTH 250 11152- EAST;
THENCE SOUrlHWESTERLY ALONG THE ARC OF SAID CURVE AND CONTINUING ALONG SAID
NORVERLY LINE OF PARCEL 7, THROUGH A CENTRAL ANGLE OF 040 07 080, AN ARC
DISTANCE OF 59.16 FEET TO THE MOST NORTHERLY NORTHWEST CORNER OF SAID PARCEL
7;
015
THENCE ALONG THE WESTERLY LINES OF SAID PARCEL 7 THROUGH THE FOLLOWING THREE
(3) COURSES:
(1) SOUTH 160 3T 14' EAST AND NON -TANGENT TO LAST SAID CURVE, AS DISTANCE OF 55.87
FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE WESTERLY, HAVING A RADIUS OF
250.00 FEET,
(2) THENCE SOUTHERLY ALONG T HE ARC OF SAID CURVE, THROUGH A CENTRAL. ANGLE OF
200 41'22", AN ARC DISTANCE OF 90.27 FEEr,
(3) THENCE TANGENT TO SAID CURVE SOUTH 04c 07 Or WEST, A DISTANCE OF 333.46 FEET
TO THE NORTHWESTERLY PROLONGATION OF THE SOUTHWESTERLY LINE OF SAID PARCEL 8,
THENCE LEAVING SAID WESTERLY LINES OF PARCEL 7 AND ALONG SAID PROLONGATION AND
SAID SOUTHWESTERLY LINE OF PARCEL 8, SOUTH 500,10F 13" EAST, A DISTANCE OF §2.88
FEET TO THE POINT OF BEGINNING.
EXCEPTING THEREFROM AGENCY EXCEPTS AND RESERVES FROM THE CONVEYANCE HEREIN
DESCRIBED ALL INTEREST OF THE AGENCY IN Ok GAS, HYDROCARBON SUBSTANICES AND
MINERALS OF EVERY KIND AND CHARACTER LYING MORE THAN FIVE HUNDRED (500) FEEr
BELOW THE SURFACE, TOGETHER WITH THE RIGHT TO DRILL INTO, THROUGH, AND To USE
AND OCCUPY ALL PARTS OFTHE PROPERTY LYING MORE THAN FIVE HUNDRED (5W) FEET
BELOW THE SURFACE THEROF FOR ANY AND ALL PURPOSES INCIDENTAL TO THE
EXPLORATION FOR AND PRODUCTION OF Oft, GAS, HYDROCARBON SUBSTANCES OR
MINERALS FROM SAID PROPERTY OR OTHER LANDS, BUT WITHOUT, HOWEVER, ANY RIGHT
TO USE EITHER THE SURFACE OF THE PROPERTY OR ANY PDRTIONTHEROF WITHIN FIVE
HUNDRED (500) FEET OF THE SURFACE FOR ANY PURPOSE OR PURPOSES WHATSOEVER, OR
TO USE THE PROPERTY IN SUCH A MANNER AS M CREATE A DIS71JRBANCE TO THE USE OR
ENJOYMENT OF THE PROPERTY, AS RESERVED IN THE DEED FROM LA QUINITA
REDEVELOPMENT AGENCYt RECORDED DECEMBER 09,2004 AS INSTRUMENT NO, 04-979137.
OF OFFICIAL RECORDS.
APN* 60+63D-027-6
882/015610-0061
3112529.2 aO9/20/12 016
SEE SHEET 2 FOR
ANNOTA71ON TABLES
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3112529.2 vO9/20112
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OF
AGENDA CATEGORY:
COUNCHJR(HA/HA MEETING DATE: October 16, 2012 BUSINESS SESSION:
ITEM TITLE: Receive and File Transmittal of Treasurer's CONSENT CALENDAR:
Reports as of August 31, 2012
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDED ACTION:
It is recommended the Successor Agency to the La Quinta Redevelopment Agency
Board:
Receive and file.
PLEASE SEE RELATED BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA
018
OF
AGENDA CATEGORY:
CITYJL;4HA/FA MEETING DATE: October 16, 2012 BUSINESS SESSION:
ITEM TITLE: Receive and File Transmittal o , f Revenue CONSENT CALENDAR: 4-
and Expenditure Report dated August 31, 2012 and
Investment Summary Report for the Quarter Ending STUDY SESSION:
September 30, 2012 PUBLIC HEARING:
RECOMMENDED ACTION:
Receive and File
EXECUTIVE SUMMARY:
Monthly and year-to-date revenues and expenditures of the Successor Agency to the
La Quinta Redevelopment Agency and Investment Summary Report for the Quarter
Ending September 30, 2012.
FISCAL IMPACT:
None.
BACKGROUND/ANALYSIS:
Receive and File Transmittal of the August 31, 2012 Statements of Revenue and
Expenditures for the Successor Agency to the La Quinta Redevelopment Agency and
Investment Summary Report for the Quarter Ending September 30, 2012.
ALTERNATIVES:
None.
Respectfully submitted,
Robbeyn Bir& Finance Director
Attachments: 1. Revenue and Expenditures Report for August 31, 2012
2. Investment Summary Report for the Quarter Ending
September 30, 2012 019
A I I AUHIVILIM I 'I
SUCCESSOR AGENCY
REVENUE SUMMARY
PROJECT AREA NO. I Admin (237)
County of Riverside
Pooled Cash Allocated Interest
Non Allocated Interest
Transfers In
TOTAL PA I
PROJECT AREA NO. 2 Admin (238)
County of Riverside
Pooled Cash Allocated Interest
Non Allocated Interest
Transfers In
TOTAL PA 2
TOTAL
PROJECT AREA NO. I Project (231)
County of Riverside
Pooled Cash Allocated Interest
Non Allocated Interest
Tmnsfers In
TOTAL PA I
PROJECT AREA NO. 2 Project (232)
County of Riverside
Pooled Cash Allomted Interest
Non Allocated Interest
Transfers In
TOTAL PA 2
- ADMIN
TOTAL SUCCESSOR AGENCY - PROGRAM
TOTAL SUCCESSOR AGENCY
0710112012 - OW3112012
ADJUSTED REMAINING %
BUDGET RECEIVED BUDGET RECEIVED
476,656.00
0.00
476.656.00
0�000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
15,400�00
0.00
15,400.00
0.000%
492,056.00
0.00
492,056.00
0.000%
323,939.00
0.00
323,939.00
0.000%
0.00
0.00
0.00
0.000%
0�00
0.00
0.00
0.000%
19,500�00
0.00
19,500.00
0.000%
343,439.00
0.00
343,439.00
0.000%
835,495.00 0.00 835,495.00 0.000%
0.00
0.00
0.00
0,000%
0.00
0.00
0.00
0.000%
0�00
0.00
0.00
0.000%
15,400.00
0.00
15,400.00
0.000%
15,400.00
0.00
15,400.00
0.000%
192,876.00
0.00
192,876.00
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0,000%
19,500.00
0.00
19,500.00
0.000%
212,37&00
0
�00212 376.00
0.000%
227,776.00 0.00 227,776.00 0�000%
1,063,271.00 0.00 1,1363,271.00 0.000%
1 020
RA
SUCCESSOR AGENCY
EXPENDITURE SUMMARY
ADJUSTED OSF31112 REMAINING
BUDGET EXPENDITURES ENCUMBERED BUDGET
PROJECT AREA NO. 1:
PROJECT AREA No. 2:
PROJECT AREA NO. 1:
PROJECT AREA NO. 2:
SERVICES 131,018.00 4,530.DO 0.00 126,488.00
REIMBURSEMENT TO GEN FUN[ W7,461.OD 51,244.00 0.00 256,217.00
TRANSFERS OUT 0.00 0.00 0.00 0.00
TOTAL PA I - Admin 438,41g.00 55.774.00 0.00 W2.705.W
SERVICES 0.00
0.00 0.00 0.00
REIMBURSEMENT TO GEN FUN[ 151,439.00
25,240.00 0.00 128,199.00
TRANSFERS OUT 0.00
0.00 0.00 0.00
TOTAL PA 2 - Admin 151,439.UF-
20,240.00 0.00 126.199.00
TOTAL SUCCESSOR AGENCY - Admin 589,918.DO
81,014.00 50B,904.
SERVICES
5,499,961.00
0.00
0.D0
5,499,961.00
BOND PRINCIPAL
0.00
0.00
O.OD
om
BONDINTEREST
0.00
0.00
O.OD
0�00
REIMBURSEMENT TO GEN FUN[
0.00
0.00
0.00
0.00
TRANSFERS OUT
1540000
0.00
0.00
TOTAL PA I - Pmgmm
5,015:361!00
0.00
0-�w
uls':V'm
SERVICES
0.00
0.00
0.00
0.00
BOND PRINCIPAL
BONDINTEREST
0.00
O.OD
O.OD
0.00
REIMBURSEMENT TO GEN FUN[
0.00
0.00
0.00
0.00
TRANSFERS OUT
212,376.00
0.00
TOTAL PA 2 - Progmm
212,376.00
0.00
2'!2':3'7'9'!0000
TOTAL SUCCESSOR AGENCY � Pmgmm b.tv'fulm 0.00 0.00 727.737.00
TOTAL SUCCESSOR AGENCY 6,317,655.00 81,014.00 0.00
021
SUCCESSOR AGENCY TO THE
0710112012 - 08/3112012
LA QUINTA REDEVELOPMENT AGENCY
ADJUSTED
REMAINING
%
REVENUE SUMMARY
BUDGET
RECEIVED
BUDGET
RECEIVED
PROJECT AREA NO. 11,
LOW/MODIERATE TAX FUND:
County of Riverside
6,227,990.00
0.00
6,227,990.00
0.000%
Allocated Interest
0.00
0.00
0.00
0.000%
Non Allocated Interest
0.00
495.75
(495.75)
0.000%
Miscellaneous revenue
0.00
0.00
0.00
0.000%
Non Allocated Interest
0.00
0.00
0.00
O.ODO%
Transfer In
0�00
0.00
0.00
0.000%
TOTAL LOWIMOD TAX
6,227,990.00
49&75
6,227,494.25
0.010%
DEBT SERVICE FUND:
County of Riverside
10,273,472.00
0.00
10,273,472.00
0.000%
Allocated Interest
0.00
0.00
0.00
0.000%
Non Allocated Interest
0�00
136.66
(136,66)
0.000%
Transfers In
0�00
0.00
0.00
0.000%
TOTAL DEBT SERVICE
10,273,472.00
136.66
10,273,335.34
0�1100%
CAPITAL IMPROVEMENT FUND
Pooled Cash Allocated Interest
0.00
0.00
0.00
0.000%
Non Allocated Interest
15,400.00
1,676.02
13,723.98
10.880%
Developer Agreement Funding
0.00
0.00
0.00
0.000%
Sale of Land proceeds
0.00
0.00
0.00
0.000%
Rental Income
0.00
0�00
0.00
0.000%
Litigation Proceeds
0.00
0.00
0.00
0.000%
Transfers In
0.00
0.00
0.00
0.000%
TOTAL CAPITAL IMPROVEMENT
15,400.00
1,676.02
13,723.98
10.880%
2011 TAXABLE HOUSING BOND FUND: (249)
pooled Cash Allocated Interest
0.00
0.00
0.00
0.000%
Non Allocated Interest
10,000.06-
3,953.27
6,046.73
39.530%
Developer Agreement Funding
0.00
0.00
0.00
0.000%
Sale of Land Proceeds
0.00
0.00
0.00
0.000%
Rental Income
0.00
0.00
0.00
0�000%
Litigation Proceeds
0.00
0.00
0.00
0-000%
Transfers In
0.00
0.00
0.00
0.000%
TOTAL 2011 TAXABLE HOUSING BOND
10,000.00
3,953.27
6,046.73
39.530%
022
13
SUCCESSOR AGENCY TO THE ADJUSTED 813112012 REMAINING
LA QUINTA REDEVELOPMENT AGENCY BUDGET EXPENDITURES ENCUMBERED BUDGET
EXPENDITURE SUMMARY
PROJECT AREA NO. 1,
LOWIMODERATE TAX FUND:
DEBT SERVICE FUND:
SERVICES
0.00
0.0D
0.00
0.00
BOND PRINCIPAL
2,071,650.00
0.00
0.00
2,071,650.00
BONDINTEREST
4,156,340.00
0.00
0.00
4.156,340.00
REIMBURSEMENT TO GEN FUNE
0.00
0.00
o.w
0.00
TRANSFERS OUT
471225200
1:61011314 '
0.00
10231725
TOTAL LOWIMOD TAX
0
75
4 g:g 4!7
u.w --i�
SERVICES 16,600.00 0.00 0.00 16'em.00
BOND PRINCIPAL 3,765,000.00 0.00 0.00 3,765,000.00
BONDINTEREST 6,491,872.00 0.00 0.00 6,491,872.00
CAPITAL IMPROVEMENT FUND:
SERVICES 0.00 0.00 0.00 0.00
REIMBURSEMENT TO GEN FUNE 0.00 0.00 0.00 0.00
TRANSFERS OUT 920907200 72�1
0 ON &0' '!QL'7 .
TOTAL CAPITAL IMPROVEMENT 9:209:0(1 2 m 0 9 .4 2
2011 TAXABLE HOUSING BOND(249)
SERVICES 0.00 0.00 0.00 0.00
TRANSFERS OUT 2551450200 0.00 0.00 2551450200
TOTAL 2011 TAXABLE HOUSING BOND 2*!014!bG2t0 0.00 0.00 ---- EtTZta2-.W-
023
.�j
SUCCESSOR AGENCY TO THE
LA QUINTA REDEVELOPMENT AGENCY
REVENUE SUMMARY
PROJECT AREA NO. 2:
LOWIMODERATE TAX FUND:
County of Riverside
Allocated Interest
Non Allocated Interest
Transfer In
TOTAL LOWIMOD TAX
2004 LOWIMODERATE BOND FUND:
Allocated Interest
Home Sale Proceeds
Non Allocated Interest
TransferIn
TOTAL LOWIMOD BOND
DEBT SERVICE FUND:
County of Riverside
Allocated Interest
Non Allocated Interest
Interest Advance Proceeds
Transfer In
TOTAL DEBT SERVICE
CAPITAL IMPROVEMENT FUND:
Allocated Interest
Non Allocated Interest
Ivisc Revenue
Sale of land
Transfers In
TOTAL CAPITAL IMPROVEMENT
2011 TAXABLE NON -HOUSING BOND FUND: (417)
Pooled Cash Allocated Interest
Non Allocated Interest
Developer Agreement Funding
Sale of Land Proceeds
Rental Income
Utigation Proceeds
Transfers In
TOTAL 2011 TAXABLE NON -HOUSING BOND
0710112012 - 0813112012
ADJUSTED REMAINING %
BUDGET RECEIVED BUDGET RECEIVED
2,665,855.00
0.00
2.665,855.00
0.000%
0.00
0.00
0.00
0.000%
0.00
36.26
(36.26)
0.000%
0.00
0.00
0.00
0.000%
21665,855.00
�36.26
2685818.74
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
580.48.
(580.48)
0.000%
0.00
0.00
0.00
0.000%
0.00
580.48
(580.48)
0.000%
941,946.00
0.00
941,946.00
0.000%
0.00
0.00
0.00
0.000%
0.00
145.26
(145.26)
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
941,946.00
145.26
941,800.74
0.020%
0.00
0.00
0.00
0.000%
19,500.00
0.00
19,500.00
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
19,500�00
0.00
19,500.00
0.000%
0.00
0.00
0.00
0.000%
0.00
274.00
(274.00)
0.000%
0.00
0.00
0.00
0,000%
0.00
0�00
0�00
0.000%
0.00
0.00
0�00
0�000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0�00
274�00
(274.DO)
0.000%
-1t, i - 0 2
SUCCESSOR AGENCY TO THE ADJUSTED Sal/2012 REMAINING
LA QUINTA REDEVELOPMENT AGENCY BUDGET EXPENDITURES ENCUMBERED BUDGET
EXPENDITURE SUMMARY
PROJECT AREA NO. 2:
LOWIMODERATE TAX FUND:
SERVICES
0.00
0.00
0.00
0.00
BOND PRINCIPAL
623,700.00
0.00
0.1))
623.700.00
BONDINTEREST
2,042,15&00
0.1))
0.00
2,042,155.00
REIMBURSEMENT TO GEN FUN[
0.00
0.01)
ODD
0.00
TRANSFERS OUT
1342973600
11�3122gl�Q
7
"oQ1,
TOTAL LOWIMOD TAX
16:065:591m
13 3!1
ZKM
2,765
2004 LOWIMODERATE BOND FUND
HOUSING PROGRAMS
0.00
0.00
0.00
0.00
LAND
0.00
0.00
0.00
0.00
TRANSFERS OUT
299769400
0.00
0.00
299769400
TOTAL LOWIMOD BOND
2!991!694!00
0.00
Z!997!694!00
DEBT SERVICE FUND:
SERVICES
0.00
0.00
0.00
0.00
BOND PRINCIPAL
175,01)).00
0.00
0.00
175,ODO.00
BONDINTEREST
757,646.00
0.00
0.00
757,646.DD
TRANSFERS OUT
ODD
0.00
0.00
0.00
TOTAL DEBT SERVICE
932.646.59 ----------------
0.00
932,W.W
CAPITAL IMPROVEMENT FUND:
SERVICES
0.00
0.00
0.00
0.00
CAPITAL
0.00
0.00
0.00
0.00
REIMBURSEMENT TO GEN FUN[
0�00
0.00
O'Do
0.00
TRANSFERS OUT
19 5w 00
0.00
0!
lgljg�l
TOTAL CAPITAL IMPROVEMENT
I
Imoto
0 010D
1
-
2011 RDA 2 TAXABLE BOND FUND:(417)
SERVICES
0.00
0.00
0.00
0.00
ECONOMIC DEVELOPMENT
753,649.00
370,246.00
0.00
383,403.00
TRANSFERS OUT
239978600
0.00
1
2 761gl!l
':T
TOTAL RDA NO. 2 TAXABLE BOND
3:153!435!OD
1
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2
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026 8
-R-EPORTS-& INFO.
ITEM NO.
OVERSIGHT BOARD OF THE SUCCESSOR AGENCY
TO LA QUINTA REDEVELOPMENT AGENCY
MINUTES
Regular Meeting
WEDNESDAY, AUGUST 8, 2012 at 2:00 P.M.
ROLL CALL - Present: Board Members Ellis, Marshall, Maysels, McDaniel,
Nelson, Osborne and Chairperson Pefia
Absent: Board Member McDaniel
A M-otionwas _made 4y__Board Members Osborne/Maysels to
excuse Board Member McDaniel; Motion carried unanimously
CONFIRMATION OF AGENDA - Confirmed
PUBLIC COMMENT
Don Adolph, Mayor of the City of La Quinta, thanked the Board for their service
and support on the Oversight Board. He said that the City is fortunate to have
such a wonderful Board and he is proud of how the Board stepped up to the plate
and is helping the City of La Quinta through the tough times we are currently
facing.
APPROVAL OF MINUTES
1. A motion was made by Board Members Maysels/Ellis to approve the minutes
from the June 6, 2012 Oversight Board meeting as submitted.
Motion carried 6 ayes, 0 nays, 1 absent.
BUSINESS ITEMS
1. Adoption of a Resolution Approving a Recognized Obligation Payment
Schedule of the Former La Quinta Redevelopment Agency for the Period of
January 2013 through June 2013.
Staff presented staff report.
Chairperson Pefia suggested commas in the amounts on the ROPS to make
sure there is no question regarding dollar amounts.
027
Staff indicated that $100,000 estimated for administrative allowance in the
ROPS was not spent. Chairperson Pefia asked if that $100,000 goes to the
State. Staff indicated the County would make the disbursement minus the
$100,000.
Board Member Osborne asked if, in the future, the $100,000 is a negative
figure, would that amount be added to our property tax disbursement.
Attorney Bill lhrke, Rutan & Tucker, for Kathy Jenson, Counsel for Successor
Agency, indicated that the provisions in the law that govern the
reconciliation process regarding the ROPS, seems to indicate that it could be
a situation where you would be able to get more from the redevelopment
property tax trust fund if you were short in the prior six month period. The
statute reads as though that would be the case — whether or not the
Department of Finance ("DOP) actually allows it or that the County Auditor -
Controller actually has the funds to do it is another question. Therefore, the
implementation may end up being different than what the statute seems to
allow. The DOF may allow you to hold on to the money to pay future
obligations when they become due in that next six month period. It remains
to be seen but most likely the money will not be forwarded or will be
directed by the Auditor -Controllers to be distributed to the other taxing
entities.
Board Member Maysels asked staff when the $6,900,000 would be
distributed. Attorney lhrke indicated January 2, 2013 is the day the
Successor Agency will physically receive the distribution.
Board Member Maysels asked if the money for July to December, 2012 has
been received. Staff indicated that the money was received in June and the
amount required to be paid for debt service has been transmitted to US Bank
to make the September 1, 2012 debt service payment.
Frank Spevacek, City Manager, informed the Board that the debt service
payments are due on September 1, 2012. When the former La Quinta
Redevelopment Agency ("LQRDA") was active, it kept a debt service reserve
fund — not bond funds but cash at the City because property taxes are
distributed in January and April and are not distributed again until January of
the following year. When there was supplemental property tax income
coming in, it allowed for better flow through the year but as the recession hit
and building and property sales stopped, monies were put in the debt service
reserve fund to make sure the September debt service payments would be
covered. The question is will there be enough property tax revenue left over
from the disbursement in June 2013 to have funds available to make the
September 2013 bond payments. Now that fund balances are being swept
away, if there is not enough cash coming in, then Oversight Boards are being
faced with the challenge of what to pay and what to default on.
OVERSIGHT BOARD ACTION MINUTES 2 AUGUST 8, 2012 - 0 . 028
Board Member Osborne asked if the insurance policies were still in place on
all the bonds. City Manager Spevacek stated that the insurance policies are
in place provided that the insurance companies are still in place. Some of
the companies that went bankrupt, if that occurred prior to the dissolution of
redevelopment, redevelopment agencies were required to replace the policy
with a debt service reserve. In the City's situation, our insurance policies are
still all in place and the only bonds that are not insured of the LQRDA are
those that were issued in 2011 — the housing bond as well as the Project
Area No. 2 bond. Those were not insured because at that point in time, the
bond insurance did not exist. All other bonds listed are insured and the
policies are valid.
Chairperson Pefia wanted to know if the City has set up a priority of what to
pay and not to pay in case obligations cannot be met. City Manager
Spevacek stated that has not been done yet, however, guidance from the
law states the first thing that gets cut would be administrative allocations,
second would be any third party obligations that may be less easy to
enforce, third would be any taxing agency payments and the fourth would be
bond payments. Currently, we are not fully expending the bond proceeds so
those bond proceeds that are taxable may be used if necessary to back fill
any shortfall.
Chairperson Pefia asked what agency would be responsible to collect if there
is a default on debt service payments. Attorney lhrke indicated most likely it
would be the State.
Board Member Osborne asked if the 2011 bonds were issued in respect to
Coral Mountain project and is the remainder still in the bank. City Manager
Spevacek stated that the bonds were not issued in relationship to Coral
Mountain but for Washington Street Apartments ("WSA"). The bond
proceeds that are being pledged over time are for the rehabilitation and
improvements at WSA. The issue before the Board today are the tax-exempt
bond proceeds left from 2004, there are severe limits on what those
proceeds can be used for, visa via they need to be used on affordable
housing. A portion of the 2011 taxable bonds are being pledged for WSA
but funding will not occur until after June 2013.
Board Member Maysels asked if the DOF will accept an amended ROPS since
the January 2013,through June 2013 is being done so many months in
advance. Attorney [hrke indicated that the statute provides for amending the
ROPS however, the DOF stated in correspondence in June 2012 that they
were done reviewing any further requested revisions to ROPS 1 and 2. If
there are remaining disputes, it can be taken care of during the process on
ROPS 3. The answer is yes, you can amend ROPS 3 but it comes down to
how the law is administered by the State.
OVERSIGHT BOARD ACTION MINUTES 3 AUGUST 8, 2012 ., 029
A motion was made by Marshall/Nelson to adopt Resolution No. OB 2012-
014 adopting a Resolution of the Oversight Board of the Successor Agency
to La Quinta Redevelopment Agency Adopting a Recognized Obligation
Payment Schedule for the Period January 2013 through June 2013
RESOLUTION NO. OB 2012-014
A RESOLUTION OF THE OVERSIGHT BOARD OF THE
SUCCESSOR AGENGY TO LA QUINTA REDEVELOPMENT
AGENCY 1) ADOPTING A RECOGNIZED OBLIGATION
PAYMENT SCHEDULE FOR THE PERIOD OF JANUARY
2013 THROUGH JUNE 2013; 2) APPROVING THE
CONTINUED IMPLEMENTATION OF THE WASHINGTON
STREET APARTMENTS REHABILITATION PROJECT, 3)
APPROVING THE EXPENDITURE OF $3,006,360 IN
2004 TAX-EXEMPT HOUSING BOND PROCEEDS AND
$15,523,220 OVER THE COURSE OF
IMPLEMENTATION, AND $2,450,250 IN 2004 TAX-
EXEMPT HOUSING BOND PROCEEDS DURING THE
JANUARY — JUNE 2013 ROPS PERIOD, 4) CONFIRMING
THAT THE HOUSING BOND PROCEEDS ARE HOUSING
ASSETS THAT ARE TO BE TRANSFERRED TO THE LA
QUINTA HOUSING AUTHORITY PURSUANT TO HEALTH
& SAFETY CODE SECTION 34176(b) IN ACCORDANCE
WITH THE ROPS SCHEDULE
Motion carried 6 ayes, 0 nays, 1 absent.
REPORTS AND INFORMATIONAL ITEMS:
1 . Summary of Redevelopment Agency Dissolution Budget Trailer Bill
Staff presented staff report.
Attorney [hrke explained the following revisions to the law under AB 1484 as
follows:
For purposes of the Oversight Board, it is important to remember the general
role remains the same where the Board has a fiduciary responsibility to the
holders of enforceable obligations and to the taxing entities.
Immunities to the Board have been slightly changed
Substantive changes to the law that will be brought before the Board will be
how housing assets are going to be dealt with on a going forward basis.
OVERSIGHT BOARD ACTION MINUTES 4 AUGUST 8, 2012 030
AB 1484 provides the Housing Authority to submit a list of housing assets to
the DOF pursuant to the law, and if the DOF approves that housing list, then
all those assets essentially get handed over to the Housing Authority for
affordable housing purposes. The non -housing LQRDA real property was
originally governed by a provision in AB 26 that would have required
expedited liquidation. Those provisions have been suspended under AB
1484 for the purposes of dealing with a finding of completion - meaning due
diligence review audits, which is an inventory of all assets of the LQRDA
including housing and non -housing. The accountants are still waiting for
further clarification on what they are supposed to be auditing. Once the
audits are completed, the Successor Agency will review those for approval.
The DOF will decide what remittance needs to be made by the Successor
Agency to do a "true -up payment." If everything balances out and everyone
agrees and that payment is made, the DOF will issue a finding of completion.
Once there is a finding of completion, this allows the Successor Agency,
along with the approval of the Oversight Board, to put together a property
management plan. Property management plans will be a governing
document as to how all non -housing redevelopment real property is to be
dealt with in the future. Assets will be covered in the audit as well.
Attorney Ihrke further explained that the due diligence audits have been
broken down into an audit of the low and moderate income housing fund and
an audit of everything else of the LQRDA. The audit of the housing fund
needs to be done soon — supposed to be completed by October 1, 2012.
The Oversight Board needs to have two public meetings to address that
audit; one needs to be for public hearing and the second for actual approval,
which can be no more than five business days after the first hearing. Once
the audit is approved, it must be forwarded to the DOF by October 15,
2012.
For all other assets subject to the later due diligence audit, which needs to
be done in December, is the same concept.
Concerning the ROPS, there have been significant changes by AB 1484 to
codify the process that was used in previous ROPS. The deadlines have
been moved up for approval process and the DOF has more time for review.
The law allows a meet and confer process, meaning that the Successor
Agency and DOF may need to have a meet and confer and depending on any
disputes or anything that the DOF wishes to have modified, an amended
ROPS may need to come back to the Board.
Another change the ROPS procedure is that the County Auditor -Controller
has a much more expanded role to the extent of being able to dispute what a
particular item may be on a ROPS. Ultimately, the DOF would review that as
well.
OVERSIGHT BOARD ACTION MINUTES 5 AUGUST 8, 2012 031
Board Member Maysels inquired about the issue with CPAs/audit and timing
of finalizing the audit by October 1, 2012 and how likely is that to happen
on time. Board Member Osborne indicated that on August 7, 2012, he
received notification from the State Board of Accountancy that the CPAs are
asked not to sign any agreements yet because they are trying to work out
the scope and procedures of the audits.
City Manager Spevacek explained that in terms of land assets, the LQRDA
land assets were primarily, if not almost exclusively, housing assets. The
schedule that was put together by staff was sent to the DOF and that
schedule can be used as the basis for the audit relating to what is needed to
be delivered on October 1,2012 In terms of financial assets, on the housing
side of the ledger, there are the bond proceeds, cash that is being dedicated
to the Coral Mountain development and that cash has moved from the
Successor Agency to the Housing Authority and by the end of this month,
will be sitting in an escrow account with the financing group that put
together the 4% tax credits for the Coral Mountain development. The only
assets on the non -housing ledger that the LQRDA held were the museum for
the City, the parking lot relating to the library and some odd landscape
parcels associated with the Washington and Miles development with
Homewood Suites. The LQRDA did not have any other land assets in its
possession. In terms of non -land assets that the LQRDA had, those included
roughly $9,000,000 of 2002 bond proceeds that were being reserved for
SilverRock until the economy collapsed and then about $5,000,000 of cash
that may have already been disbursed because it was used to pay for prior
obligations that the LQRDA had. When talking about "land assets" La
Quinta is different than other communities in that when redevelopment was
eliminated, the only assets the LQRDA held were relating to housing and if
the housing asset list is blessed by DOF, those will be removed and moved
to the Housing Authority and what's left is the parking lot, a museum and
some landscape parcels.
Board Member Nelson asked if there are any assets that would be subject to
the claw back. City Manager Spevacek stated that in 2011, prior to the
adoption of AB 26 and prior to the subsequent legal challenges, the LQRDA
repaid $40,000,000 of loans outstanding to the City general fund — those
funds could be subject to claw back per AB 1484. The second aspect is
that in 2011, prior to AB 26, the City obtained appraisals and purchased
from the LQRDA at the market value in 2011, the public and private parcels
at SilverRock, 9 acres of property on Hwy. 111 and a few other parcels.
Then, in June of 2011, the City purchased properties in the Village area,
about six or seven acres around La Quinta Park, between City Hall and Old
Town as well as another property northwest of Old Town using LQRDA
funds. So, those transactions could be subject to review.
OVERSIGHT BOARD ACTION MINUTES 6 AUGUST 8, 201 Z.ib. �: 032
Chairperson Pefia asked if there have been any other cities affected by the
claw back provisions. Attorney lhrke said he has not heard of any yet — he
believes the State Controller's office has been holding back to see what the
results are of the audits. He is not aware of any claw back prior to AB 1484
becoming law.
ADJOURNMENT — 2:53 p.m.
A motion was made by Board Members Maysels/Osborne to adjourn. Motion
passed unanimously.
Respectfully submitted,
Lori Lafond
Oversight Board Secretary
OVERSIGHT BOARD ACTION MINUTES 7
AUGUST8,201 2 033