2013 03 13 OBX
I
I
Oversight Board agendas and staff
reports are now available on the City's
web page. www.la-ouinta.om
OVERSIGHT BOARD
OF THE SUCCESSOR AGENCY TO
LA QUINTA REDEVELOPMENT AGENCY
AGENDA
CITY HALL COUNCIL CHAMBERS
78-495 Calle Tampico, La Quinta
SPECIAL MEETING on WEDNESDAY, MARCH 13, 2013 at 2:00 P.M.
CALL TO ORDER
1. Roll Call
2. Pledge of Allegiance
PUBLIC COMMENT
At this time members of the public may address the Board 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 the minutes of February 20, 2013
BUSINESS ITEMS
1. Resolution Directing the Successor Agency to Transfer to the City of La
Quinta certain Governmental Use Properties; Resolution Ratifying and
Approving the Sale of Certain Properties; Resolution Ratifying the Use of
Redevelopment Funds for the Highway 111 Median Island Improvements
OVERSIGHT BOARD
OF THE SUCCESSOR AGENCY TO
LA QUINTA REDEVELOPMENT AGENCY
MINUTES
WEDNESDAY, FEBRUARY 20, 2013
CALL TO ORDER
A regular meeting of the Oversight Board of the Successor Agency to La Quinta
Redevelopment Agency was called to order at 2:02 p.m. by Chairperson Pena.
PRESENT: Board Members Marshall, Maysels, Nelson (2:10 p.m.),
Osborne and Chairperson Pena
ABSENT: Board Members Ellis and McDaniel
STAFF PRESENT: Frank J. Spevacek, Executive Director of the Successor Agency,
Kathy Jenson, City Attorney and Robbeyn Bird, Finance Director
PUBLIC COMMENT - None
CONFIRMATION OF AGENDA - Confirmed as Submitted
APPROVAL OF MINUTES
Motion - A motion was made by Board Members Maysels/Osborne to approve the
Oversight Board Minutes of December 5, 2012, as submitted. Motion passed 4
ayes, 0 abstain, 3 absent.
1. Adoption of a Resolution Approving the Successor Agency Budget for July
2013 through December 2013
MOTION - A motion was made by Board Members Osborne/Marshall to
adopt Resolution No. OB 2013-001. Motion passed 4 ayes, 0 noes, 3
absent.
Note: Board Member Nelson arrived and joined the meeting at this
point.
RESOLUTION NO. OB 2013-001
A RESOLUTION OF THE OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO LA QUINTA REDEVELOPMENT
AGENCY APPROVING THE SUCCESSOR AGENCY
ADMINISTRATIVE BUDGET FOR THE PERIOD OF JULY
2013 THROUGH DECEMBER 2013
2. Resolution Approving a Recognized Obligation Payment Schedule of the
Former La Quinta Redevelopment Agency for the Period of July 2013
through December 2013
MOTION - A motion was made by Board Members Maysels/Osborne to
adopt Resolution No. OB 2013-002. Motion passed 5 ayes, 0 noes, 2
absent.
RESOLUTION NO. OB 2013-002
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 JULY 2013
THROUGH DECEMBER 2013; 21 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 $1,718,831 IN 2004 TAX-
EXEMPT HOUSING BOND PROCEEDS DURING THE JULY
- DECEMBER 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
REPORTS AND INFORMATION ITEMS
1. Update on D.O.F. & State Controller's Activities
OVERSIGHT BOARD 2 February 20, 2013
FUTURE MEETING DATE
Staff indicated that the next Oversight Board meeting is scheduled for March 6,
2013 at 2:00 p.m.
ADJOURNMENT
There being no further business, it was moved by Board Members Osborne/Nelson
to adjourn this meeting at 2:28 p.m. Motion passed unanimously.
Oversight Board Secretary
City of La Quinta, California
OVERSIGHT BOARD 3 February 20, 2013
C&hf 4 4 a"
OVERSIGHT BOARD MEETING DATE: March 13, 2013 AGENDA CATEGORY:
ITEM TITLE: A RESOLUTION DIRECTING THE SUCCESSOR BUSINESS SESSION: —
AGENCY TO TRANSFER TO THE CITY OF LA QUINTA CERTAIN
GOVERNMENTAL USE PROPERTIES; A RESOLUTION RATIFYING CONSENT CALENDAR:
AND APPROVING THE SALE OF CERTAIN PROPERTIES; A STUDY SESSION:
RESOLUTION RATIFYING THE USE OF REDEVELOPMENT FUNDS FOR THE HIGHWAY 111 MEDIAN ISLAND IMPROVEMENTS
PUBLIC HEARING:
RECOMMENDED ACTION:
Adopt the following resolutions:
1. A Resolution of the Oversight Board of the City as Successor Agency to the La
Quinta Redevelopment Agency Directing the Successor Agency to Transfer to the
City of La Quinta Certain Governmental Use Properties Pursuant to Health and
Safety Code Section 34181
2. A Resolution of the Oversight Board of the City as Successor Agency to the La
Quinta Redevelopment Agency Ratifying and Approving the Sale by the Former La
Quinta Redevelopment Agency to the City of La Quinta of Certain Properties
Pursuant to Health and Safety Code Section 34181;
3. A Resolution of the Oversight Board of the City as Successor Agency to the La
Quinta Redevelopment Agency Ratifying and Approving the Payment by the Former
La Quinta Redevelopment Agency for certain Highway 111 Median Island
Improvements.
FISCAL IMPACT:
Unknown at this time. Staff is awaiting the outcome of the State Auditor Asset
Transfer Review and the Department of Finance Due Diligence Review.
BACKGROUND/ANALYSIS:
On February 4, 2013, the State Controller's Office (SCO) initiated an audit of the
assets that the former Redevelopment Agency transferred or sold to the City of La
Quinta pursuant to Health and Safety Code Section 34167.5. The audit covered
January 1, 2011 to June 30, 2011 time period. Upon completing their work, the SCO
staff conducted an exit conference and they identified three transfers that could be
ratified and/or approved by the Oversight Board. They further stated that if the
Oversight Board ratified or approved these transfers, the SCO would not be inclined to
classify them for claw back. The SCO is conducting these audits to identify assets
that may be clawed back by the SCO.
The SCO auditors recommended that the Oversight Board adopt resolutions approving
and ratifying the three transfers prior to the issuance of the SCO's report. These items
are described below in greater detail.
1. Ten governmental use properties were transferred by the former La Quinta
Redevelopment Agency ("RDA") to the City of La Quinta during the January
1,2011 — June 30, 2011 timeframe (Attachment 1) On June 28, 2011 ABx1 26
was signed by the Governor. As a result of various provisions in ABx1 26, as well
as a general order issued by the SCO, the City transferred the ten governmental use
properties to the Successor Agency.
The SCO auditors deemed the properties as existing or future public/government
facilities for which no compensation was paid by the City. The SCO auditors
recommended that the Oversight Board direct the Successor Agency to transfer
these properties back to the City.
2. Two properties — the commercial/hotel development pads comprising approximately
86 acres of SilverRock Resort (the "SRR Properties") and 9.89 acres on Highway
111 north of the Coral Mountain project (the "Highway 111 Property") — were
purchased by the City from the RDA for their fair market value. The City
commissioned an appraisal from Capital Realty Analysts in February 2011. Capital
Realty Analysts valued the SRR Properties at $4,875,000 and the Highway 111
Properties at $3,445,000. Copies of the appraisals are on file with the City Clerk.
The SCO auditors recommended that the Oversight Board ratify and approve these
sales.
3. On June 14, 2011, the RDA and City entered into a Financing Agreement,
pursuant to which the RDA agreed to loan $1,276,516 to the City's Transportation
Impact Fee Fund to pay for the cost to construct improvements within the Highway
111 median island. A contract was awarded to Marina Landscape, Inc. to
construct the improvements. The total amount funded was $678,679. The
undisbursed portions of the loan were repaid to the RDA.
The SCO auditors recommended that the Oversight Board ratify and approve the
transfer of $678,679 pursuant to the Financing Agreement.
2
ALTERNATIVES:
None.
Respectfully submitted,
au -,Mu
RobbeyrV Bird, CPA
Finance Director
Attachments: 1. List of 10 Non -Housing Public Use Properties Transferred
From the RDA to the City between Jan 1, 2011 and June
30, 2011 for Public Use Purposes.
3
EXHIBIT W
LIST OF PUBLIC USE PROPERTIES
1. The 243 acres of vacant land purchased with tax exempt bond proceeds intended and
zoned for public use at the southwest corner of Jefferson Street and Avenue 52 with the
SilverRock Resort project;
2. A portion of the Fitz Burns Park;
3. The La Quinta Museum;
4. The portion of the La Quinta Parking Lot paved with shade structures;
5. The parking lot behind the Village Community Police Station;
6. The public parking lot in the La Quinta Village;
7. The landscaped lot next to the Senior Center;
8. Pioneer Park;
9. La Quinta Park; and
10. The .3 acre landscape lot— Parcel Map 33588 at the southwest corner of Highway 111
and Dune Palms Road.
RESOLUTION NO. OB 2013-
A RESOLUTION OF THE OVERSIGHT BOARD OF THE
CITY AS SUCCESSOR AGENCY TO THE LA QUINTA
REDEVELOPMENT AGENCY DIRECTING THE
SUCCESSOR AGENCY TO TRANSFER TO THE CITY OF
LA QUINTA CERTAIN GOVERNMENTAL USE
PROPERTIES PURSUANT TO HEALTH AND SAFETY
CODE SECTION 34181
WHEREAS, the Oversight Board of the City as Successor Agency to the La
Quinta Redevelopment Agency ("Oversight Board" or "Successor Agency," as
applicable) has been established to direct the Successor Agency to take certain actions
to wind down the affairs of the former La Quinta Redevelopment Agency ("Agency") in
accordance with the California Health and Safety Code; and
WHEREAS, the City Council of the City of La Quinta ("City Council" or "City," as
applicable) approved and adopted (i) the Redevelopment Plan for La Quinta Project Area
No. 1 ("Project Area No. 1 " or "Project Area No. 1 Redevelopment Plan," as applicable)
on November 29, 1983, by Ordinance No. 43, as amended on December 20, 1994, by
Ordinance No. 258, on August 19, 2003, by Ordinance No. 388, and on March 16,
2004, by Ordinance No. 402; and (ii) the Redevelopment Plan for La Quinta
Redevelopment Project Area No. 2 ("Project Area No. 2" or "Project Area No. 2
Redevelopment Plan," as applicable) on May 16, 1989, by Ordinance No. 139, as
amended on December 20, 1994, by Ordinance No. 259, on February 3, 2004, by
Ordinance No. 399, on March 16, 2004, by Ordinance No. 403, and on March 16,
2004, by Ordinance No. 404; and
WHEREAS, the Agency was engaged in activities to execute and implement
the Project Area No.1 Redevelopment Plan and the Project Area No.2
Redevelopment Plan pursuant to the provisions of the California Community
Redevelopment Law (Health and Safety Code § 33000, at seq.) ("CRL"); and
WHEREAS, pursuant to the authority granted in Health and Safety Code
section 33220, the City and the Agency worked cooperatively to implement
redevelopment projects and to provide funding necessary to effectuate the
completion of redevelopment projects; and
WHEREAS, pursuant to this cooperative effort, numerous public use
properties were acquired, developed, and/or prepared for development as publically
owned City facilities available for public use, a list of which is attached hereto as
Exhibit A and incorporated herein by this reference (the "Public Use Properties").
The City has assumed operation of the Public Use Properties. The Public Use
Resolution No. OB 2013-
Transfer of Public Use Properties
Adopted: March 13, 2013
Page 2
Properties were and are intended for use by the City for municipal purposes for
ongoing efforts to redevelop, provide recreational opportunities, revitalize and/or
eliminate blight in the Agency's redevelopment project areas; and
WHEREAS, during the time period of January 1, 2011, to June 30, 2011,
the City executed certificates of acceptance for the deeds designed to transfer
ownership of the Public Use Properties from the Agency to the City (the "Agency
Deeds"), and the Agency Deeds, along with the certificates of acceptance, were
recorded in the official records of the County of Riverside; and
WHEREAS, none of the transfers of the Public Use Properties, or any of the
related documents and actions, were challenged within the applicable statute of
limitations; and
WHEREAS, as part of the 2011-12 State budget bill, the California
Legislature enacted and the Governor of California signed, ABx1 26 requiring that
each redevelopment agency be dissolved; and
WHEREAS, an action challenging the constitutionality of ABx1 26 and
companion bill ABx1 27 was filed in the California Supreme Court by the California
Redevelopment Association, the League of California Cities, and two individual
cities; and
WHEREAS, on December 29, 2011, the Court upheld ABx1 26 and struck
down as unconstitutional ABx1 27; and
WHEREAS, AB 26 states, in part, that "[t]he Legislature hereby finds that a
transfer of assets by a redevelopment agency [after January 1, 20111 is deemed
not to be in the furtherance of the [CRL1 and is thereby unauthorized," that
"[c]ommencing [February 1, 20121, ... arrangements between the city ... that
created the redevelopment agency and the redevelopment agency are invalid...;"
and that "[alll ... properties [and] buildings ... of the former redevelopment agency
are transferred on [February 1, 20121, to the control of the successor agency;" and
WHEREAS, on or about April 20, 2012, the California State Controller issued
correspondence stating, in part, that "[ilf your city ... received any assets from a
redevelopment agency after January 1, 2011, your city ... hereby is ordered to ...
reverse the transfer and return the applicable assets to the successor agency of the
relevant redevelopment agency;" and
Resolution No. OB 2013-
Transfer of Public Use Properties
Adopted: March 13, 2013
Page 3
WHEREAS, Assembly Bill 1484 ("AB 1484") was signed by the Governor of
California on June 27, 2012, making changes to AB 26 and certain additional
changes to the CRL; and
WHEREAS, on October 2, 2012, the City Council adopted Resolution No
2012-053, pursuant to which the City Council (i) rescinded its previous acceptance
of the transfers of the Public Use Properties and authorized the processing of
documentation confirming the Successor Agency's ownership of the Public Use
Properties; and
WHEREAS, pursuant to Health and Safety Code Section 34181(a), the
Oversight Board may direct the Successor Agency to transfer ownership of those
assets that were constructed and used for a governmental purpose to the
appropriate public jurisdiction; and
WHEREAS, because the Public Use Properties were and are intended for use
by the City for municipal purposes, the City is the appropriate public jurisdiction to
whom the Public Use Properties should be transferred; and
WHEREAS, during the Successor Agency's exit interview with the auditors
from the State Controller's Office, the auditors recommended that the Oversight
Board direct the Successor Agency to transfer the Public Use Properties to the City
pursuant to Health and Safety Code Section 34181(a); and
WHEREAS, notice of the action proposed to be taken by the Oversight Board
pursuant to this Resolution was duly published in accordance with the requirements
of Health and Safety Code Section 34181(f); and
WHEREAS, all other legal prerequisites to the adoption of this Resolution
have occurred.
NOW, THEREFORE, BE IT RESOLVED that the Oversight Board of City as
Successor Agency to the La Quinta Redevelopment Agency, does hereby resolve as
follows:
Section 1. Recitals. The Recitals set forth above are true and correct and
incorporated herein by reference.
Section 2. Transfer of Public Use Properties. The Oversight Board hereby directs
the Successor Agency to transfer ownership of the Public Use Properties to the
City pursuant to Health & Safety Code section 34181.
Resolution No. OB 2013-
Transfer of Public Use Properties
Adopted: March 13, 2013
Page 4
Section 3. Severability. If any provision of this Resolution or the application
thereof to any person or circumstance is held invalid, such invalidity shall not affect
other provisions or applications of this Resolution which can be given effect
without the invalid provision or application, and to this end the provisions of this
Resolution are severable. The Oversight Board hereby declares that it would have
adopted this Resolution irrespective of the invalidity of any particular portion
thereof.
Section 4. Certification. The Oversight Board Secretary shall certify to the
adoption of this Resolution.
PASSED, APPROVED, AND ADOPTED at the meeting of the Oversight Board
of the City as Successor Agency to the La Quinta Redevelopment Agency held this
13' day of March, 2013, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
JOHN PENA, Chairperson
Oversight Board of the Successor Agency
to La Quinta Redevelopment Agency
ATTEST:
Vianka Orrantia
Oversight Board Secretary
EXHIBIT "A"
LIST OF PUBLIC USE PROPERTIES
1. The 243 acres of vacant land purchased with tax exempt bond proceeds
intended and zoned for public use at the southwest corner of Jefferson Street
and Ave. 52 within the SilverRock Resort project;
2. A portion of the Fritz Burns Park;
3. The La Quinta Museum;
4. The portion of the La Quinta Parking Lot paved with shade structures;
5. The parking lot behind the Village Community Police Station;
6. The public parking lot in the La Quints Village;
7. The landscaped lot next to the Senior Center;
8. Pioneer Park;
9. La Quinta Park; and
10. The .3 acre landscape lot — Parcel Map 33588 at the southwest corner of
Highway 111 and Dune Palms Road.
RESOLUTION NO. OB 2013-
A RESOLUTION OF THE OVERSIGHT BOARD OF THE
CITY AS SUCCESSOR AGENCY TO THE LA QUINTA
REDEVELOPMENT AGENCY RATIFYING AND
APPROVING THE SALE BY THE FORMER LA QUINTA
REDEVELOPMENT AGENCY TO THE CITY OF LA QUINTA
OF CERTAIN PROPERTIES PURSUANT TO HEALTH AND
SAFETY CODE SECTION 34181
WHEREAS, the Oversight Board of the City as Successor Agency to the La
Quinta Redevelopment Agency ("Oversight Board" or "Successor Agency," as
applicable) has been established to direct the Successor Agency to take certain actions
to wind down the affairs of the former La Quinta Redevelopment Agency ("Agency") in
accordance with the California Health and Safety Code; and
WHEREAS, the Agency was engaged in activities to execute and implement
the Project Area No.1 Redevelopment Plan and the Project Area No.2
Redevelopment Plan pursuant to the provisions of the California Community
Redevelopment Law (Health and Safety Code § 33000, at seq.) ("CRL"); and
WHEREAS, pursuant to its powers under the CRL, the Agency acquired the
following two properties intended for future redevelopment purposes: (1) a 9.89-
acre property on Highway 111 east of Dune Palms Road, which was the site of a
now abandoned mobile home park, and (2) 86 acres within the City's SilverRock
Resort, which are identified for future resort/commercial development (the "Future
Development Properties"); and
WHEREAS, the Agency caused the preparation of appraisals of the Future
Development Properties in 2011, and thereafter, the City and Agency entered into
purchase and sale transactions whereby the City agreed to and did acquire the
properties in exchange for paying to the Agency the fair market value of the Future
Development Properties ($8,320,000); and
WHEREAS, during the time period of January 1, 2011, to June 30, 2011,
the City executed certificates of acceptance for the deeds designed to transfer
ownership of the Future Development Properties from the Agency to the City (the
"Agency Deeds"), and the Agency Deeds, along with the certificates of
acceptance, were recorded in the official records of the County of Riverside; and
WHEREAS, none of the transfers of the Future Development Properties, or
any of the related documents and actions, were challenged within the applicable
statute of limitations; and
Resolution No. OB 2013-
Ratification of Agency Sale to City of Development Properties
Adopted: March 13, 2013
Page 2
WHEREAS, as part of the 2011-12 State budget bill, the California
Legislature enacted and the Governor of California signed, ABx1 26 requiring that
each redevelopment agency be dissolved; and
WHEREAS, an action challenging the constitutionality of ABx1 26 and
companion bill ABx1 27 was filed in the California Supreme Court by the California
Redevelopment Association, the League of California Cities, and two individual
cities; and
WHEREAS, on December 29, 2011, the Court upheld ABx1 26 and struck
down as unconstitutional ABx1 27; and
WHEREAS, AB 26 states, in part, that "[tlhe Legislature hereby finds that a
transfer of assets by a redevelopment agency [after January 1, 20111 is deemed
not to be in the furtherance of the [CRL] and is thereby unauthorized," that
"[clommencing [February 1, 2012], ... arrangements between the city ... that
created the redevelopment agency and the redevelopment agency are invalid...;"
and that "[alll ... properties [and] buildings ... of the former redevelopment agency
are transferred on [February 1, 20121, to the control of the successor agency;" and
WHEREAS, on or about April 20, 2012, the California State Controller issued
correspondence stating, in part, that "[ilf your city ... received any assets from a
redevelopment agency after January 1, 2011, your city ... hereby is ordered to ...
reverse the transfer and return the applicable assets to the successor agency of the
relevant redevelopment agency;" and
WHEREAS, Assembly Bill 1484 ("AB 1484") was signed by the Governor of
California on June 27, 2012, making changes to AB 26 and certain additional
changes to the CRL; and
WHEREAS, pursuant to Health and Safety Code Section 34181(a), the
Oversight Board is required to direct the Successor Agency to dispose of all assets
and properties of the former Agency; and
WHEREAS, during the Successor Agency's exit interview with the auditors
from the State Controller's Office, the auditors recommended that the Oversight
Board ratify and approve the sale of the Future Development Properties by the
Agency to the City pursuant to Health and Safety Code Section 34181(a); and
Resolution No. OB 2013-
Ratification of Agency Sale to City of Development Properties
Adopted: March 13, 2013
Page 3
WHEREAS, notice of the action proposed to be taken by the Oversight Board
pursuant to this Resolution was duly published in accordance with the requirements
of Health and Safety Code Section 34181(f); and
WHEREAS, all other legal prerequisites to the adoption of this Resolution
have occurred.
NOW, THEREFORE, BE IT RESOLVED that the Oversight Board of City as
Successor Agency to the La Quinta Redevelopment Agency, does hereby resolve as
follows:
Section 1. Recitals. The Recitals set forth above are true and correct and
incorporated herein by reference.
Section 2. Ratification and Approval of Agency Sale to City. The Oversight
Board hereby ratifies and approves the Agency's sale to the City of the Future
Development Properties pursuant to Health & Safety Code Section 34181.
Section 3. Severability. If any provision of this Resolution or the application
thereof to any person or circumstance is held invalid, such invalidity shall not affect
other provisions or applications of this Resolution which can be given effect
without the invalid provision or application, and to this end the provisions of this
Resolution are severable. The Oversight Board hereby declares that it would have
adopted this Resolution irrespective of the invalidity of any particular portion
thereof.
Section 4. Certification. The Oversight Board Secretary shall certify to the
adoption of this Resolution.
PASSED, APPROVED, AND ADOPTED at the meeting of the Oversight Board
of the City as Successor Agency to the La Quints Redevelopment Agency held this
13th day of March, 2013, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Resolution No. OB 2013-
Ratification of Agency Sale to City of Development Properties
Adopted: March 13, 2013
Page 4
JOHN PERA, Chairperson
Oversight Board of the Successor Agency
to La Quinta Redevelopment Agency
ATTEST:
Vianka Orrantia
Oversight Board Secretary
RESOLUTION NO. OB 2013-
A RESOLUTION OF THE OVERSIGHT BOARD OF THE
CITY AS SUCCESSOR AGENCY TO THE LA QUINTA
REDEVELOPMENT AGENCY RATIFYING AND
APPROVING THE PAYMENT BY THE FORMER LA
QUINTA REDEVELOPMENT AGENCY FOR CERTAIN
HIGHWAY 111 MEDIAN ISLAND IMPROVEMENTS
WHEREAS, the Oversight Board of the City as Successor Agency to the La
Quinta Redevelopment Agency ("Oversight Board" or "Successor Agency," as
applicable) has been established to direct the Successor Agency to take certain actions
to wind down the affairs of the former La Quinta Redevelopment Agency ("Agency") in
accordance with the California Health and Safety Code; and
WHEREAS, the City Council of the City of La Quinta ("City Council" or "City," as
applicable) approved and adopted (i) the Redevelopment Plan for La Quinta Project Area
No. 1 ("Project Area No. 1 " or "Project Area No. 1 Redevelopment Plan," as applicable)
on November 29, 1983, by Ordinance No. 43, as amended on December 20, 1994, by
Ordinance No. 258, on August 19, 2003, by Ordinance No. 388, and on March 16,
2004, by Ordinance No. 402; and (ii) the Redevelopment Plan for La Quinta
Redevelopment Project Area No. 2 ("Project Area No. 2" or "Project Area No. 2
Redevelopment Plan," as applicable) on May 16, 1989, by Ordinance No. 139, as
amended on December 20, 1994, by Ordinance No. 259, on February 3, 2004, by
Ordinance No. 399, on March 16, 2004, by Ordinance No. 403, and on March 16,
2004, by Ordinance No. 404; and
WHEREAS, the Agency was engaged in activities to execute and implement
the Project Area No.1 Redevelopment Plan and the Project Area No.2
Redevelopment Plan pursuant to the provisions of the California Community
Redevelopment Law (Health and Safety Code § 33000, et seq.) ("CRL"); and
WHEREAS, pursuant to the authority granted in Health and Safety Code
section 33220, the City of La Quinta ("City") and the Agency worked cooperatively
to implement redevelopment projects and to provide funding necessary to
effectuate the completion of redevelopment projects; and
WHEREAS, pursuant to this cooperative effort, and in accordance with the
authority granted in Health and Safety Code Section 33445, on or around June 14,
2011, the Agency entered into a Financing Agreement with the City (the
"Financing Agreement") pursuant to which the Agency loaned the City One Million
Two Hundred Seventy -Six Thousand Five Hundred Sixteen Dollars ($1,276,516)
(the "Agency Loan") to be used by the City to pay for the cost of installing certain
Resolution No. OB 2013-
Ratification of Agency Sale to City of Development Properties
Adopted: March 13, 2013
Page 2
landscaping, irrigation, and lighting improvements within the median island on
Highway 111, from Adams Street to Jefferson Street (the "Improvements"); and
WHEREAS, on June 28, 2011, the City entered into a contract with Marina
Landscape, Inc. to construct the improvements (Project 2009-03). in reliance on the
loan agreement, and Project 2009-03 has been completed and Marina Landscape
has been fully paid; and
WHEREAS, as part of the 2011-12 State budget bill, the California
Legislature enacted and the Governor of California signed, ABx1 26 requiring that
each redevelopment agency be dissolved; and
WHEREAS, an action challenging the constitutionality of ABx1 26 and
companion bill ABx1 27 was filed in the California Supreme Court by the California
Redevelopment Association, the League of California Cities, and two individual
cities; and
WHEREAS, on December 29, 2011, the Court upheld ABx1 26 and struck
down as unconstitutional ABx1 27; and
WHEREAS, AB 26 states, in part, that "[tjhe Legislature hereby finds that a
transfer of assets by a redevelopment agency [after January 1, 20111 is deemed
not to be in the furtherance of the [CRL1 and is thereby unauthorized," that
"[clommencing [February 1, 20121, ... arrangements between the city ... that
created the redevelopment agency and the redevelopment agency are invalid...;"
and that "[alll assets ... of the former redevelopment agency are transferred on
[February 1, 20121, to the control of the successor agency;" and
WHEREAS, on or about April 20, 2012, the California State Controller issued
correspondence stating, in part, that "[i]f your city ... received any assets from a
redevelopment agency after January 1, 2011, your city ... hereby is ordered to ...
reverse the transfer and return the applicable assets to the successor agency of the
relevant redevelopment agency;" and
WHEREAS, Assembly Bill 1484 ("AB 1484") was signed by the Governor of
California on June 27, 2012, making changes to AB 26 and certain additional
changes to the CRL; and
WHEREAS, during the Successor Agency's exit interview with the auditors
from the State Controller's Office, the auditors recommended that the Oversight
Board (i) ratify and approve the Agency's provision of the Agency Loan to the -City
Resolution No. OB 2013-
Ratification of Agency Sale to City of Development Properties
Adopted: March 13, 2013
Page 3
pursuant to the Financing Agreement, (ii) confirm that the funds comprising the
Agency Loan were contractually committed to a third party for the expenditure of
such funds, and (iii) confirm that the funds comprising the Agency Loan are not
subject to an order by the Controller to be returned to the Successor Agency; and
WHEREAS, notice of the action proposed to be taken by the Oversight Board
pursuant to this Resolution was duly published in accordance with the requirements
of Health and Safety Code Section 34181(f); and
WHEREAS, all other legal prerequisites to the adoption of this Resolution
have occurred.
NOW, THEREFORE, BE IT RESOLVED that the Oversight Board of City as
Successor Agency to the La Quinta Redevelopment Agency, does hereby resolve as
follows:
Section 1. Recitals. The Recitals set forth above are true and correct and
incorporated herein by reference.
Section 2. Ratification and Approval of Agency Sale to City. The Oversight
Board hereby ratifies and approves the Agency's loan of $1,276,516 to the
Developer Impact Fund and the payment of funds by the former Redevelopment
Agency funds for .(Project 2009-03). The Oversight Board further finds that the
payment to the contractor were in reliance on the loan agreement. The Oversight
Board confirms that the funds comprising the Agency Loan were contractually
committed to a third party for the expenditure of such funds, and further confirm
that the funds comprising the Agency Loan are not subject to an order by the
Controller to be returned to the. Successor Agency.
Section 3. Severability. If any provision of this Resolution or the application
thereof to any person or circumstance is held invalid, such invalidity shall not affect
other provisions or applications of this Resolution which can be given effect
without the invalid provision or application, and to this end the provisions of this
Resolution are severable. The Oversight Board hereby declares that it would have
adopted this Resolution irrespective of the invalidity of any particular portion
thereof.
Section 4. Certification. The Oversight Board Secretary shall certify to the
adoption of this Resolution.
Resolution No. OB 2013-
Ratification of Agency Sale to City of Development Properties
Adopted: March 13, 2013
Page 4
PASSED, APPROVED, AND ADOPTED at the meeting of the Oversight Board
of the City as Successor Agency to the La Quinta Redevelopment Agency held this
131h day of March, 2013, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
JOHN PENA, Chairperson
Oversight Board of the Successor Agency
to La Quinta Redevelopment Agency
ATTEST:
Vianka Orrantia
Oversight Board Secretary