2020 Chin Family Properties LP Settlement AgreementCITY COUNCIL MINUTES Page 2 of 16 MAY 19, 2020
EMERGENCY MANAGEMENT COORDINATOR; WILLIAM H. IHRKE,
CITY ATTORNEY
2. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
PURSUANT TO PARAGRAPH (1) OF SUBDIVISION (d) OF
GOVERNMENT CODE SECTION 54956.9. NAME OF CASE: CITY OF
LA QUINTA V. CHIN FAMILY PROPERTIES LIMITED
PARTNERSHIP, ET AL., RIVERSIDE COUNTY SUPERIOR COURT
CASE NO. PSC1803284
3. CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO
GOVERNMENT CODE SECTION 54957.6; CITY DESIGNATED
REPRESENTATIVE: CHRIS ESCOBEDO, DIRECTOR OF
COMMUNITY RESOURCES, AND EMPLOYEE ORGANIZATION: LA
QUINTA CITY EMPLOYEES’ ASSOCIATION, AND
UNREPRESENTED EMPLOYEES (VARIOUS POSITIONS IN ALL
CITY DEPARTMENTS)
COUNCIL RECESSED THE OPEN SESSION PORTION OF THE MEETING
AND MOVED INTO CLOSED SESSION AT 3:05 P.M.
MAYOR EVANS RECONVENED THE OPEN SESSION PORTION OF THE
CITY COUNCIL MEETING AT 4:06 P.M. WITH ALL MEMBERS PRESENT
REPORT ON ACTION(S) TAKEN IN CLOSED SESSION:
City Attorney Ihrke said the City Council considered the Closed Session items
out of Agenda order and reported the following pursuant to Government Code
Section 54950 et seq. (Brown Act):
CLOSED SESSION ITEM NO. 3 – the City Negotiator provided the City
Council with an update on labor negotiations, and pursuant to
Government Code Section 54957.1, subdivision (a)(6), negotiations
between the City and the La Quinta City Employee’s Association have
concluded, and the proposed Side Letter Agreement resulting from the
negotiations is on the Agenda tonight as Business Session Item No. 1
for review and consideration; and
CLOSED SESSION ITEM NO. 1 – the City Council discussed the threat
to public services and closure of facilities caused by the threat of the
spread of novel coronavirus disease 2019 (COVID-19), and received an
update on Round II COVID-19 Small Business Emergency Economic
Relief Program (Program), previously authorized by the City Council on
May 5, 2020, consisting of the Ad-hoc Committee’s recommendations
on the applicants who would be awarded loans under the Program.
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CITY COUNCIL MINUTES Page 15 of 16 MAY 19, 2020
and other relevant hygiene practices, in order to limit the spread of
COVID-19. Motion passed unanimously.
MOTION – A motion was made and seconded by Councilmembers
Radi/Sanchez to express Council’s support of the “Safer Together.
Greater Together.” Tourism Pledge as drafted and developed by the
Greater Palm Springs Convention and Visitors Bureau, and to proceed
accordingly. Motion passed unanimously.
CLOSED SESSION ITEM NO. 2 – pursuant to Government Code
Section 54957.1, subdivision (a)(3), the City Council received and
reviewed a copy of a settlement agreement from the defendant, Chin
Family Properties Limited Partnership (Defendant), the substance of
which involves the settlement of the pending eminent domain case and
acquisition of real property for right of way, preservation of housing
stock, and other public purposes.
The Substance of the settlement agreement is summarized as follows:
The pending roadway right-of-way and bridge project right-of-way
properties would be acquired by the City along with the remainder
of the real property (land and amenities) owned by the Defendant
at 46400 Dune Palms Road, commonly known as the Dune Palms
Mobile Home Park; and
Except for the right-of-way portions of the real property, there
would be no change in use, no relocation of mobile home park
residents, and no other modifications to existing tenants’
leaseholds interests by entering into this agreement; and
Public purposes for acquisition of mobile home park include
meeting current and projected Regional Housing Needs
Assessment (RHNA) numbers, preserving and promoting
affordable housing, and facilitating Senate Bill 330 (2019)
compliance; and
All-inclusive purchase price for the real property is $6,125,000 to
be acquired by use of restricted affordable housing funds; and
Part of the purchase price would be deposited into the state-
administered condemnation fund and would be used to acquire
the right-of-way, even if escrow does not close for the mobile
home park; and
Acquisition of all real property would be through an independent
escrow, with a due diligence period of 180 days, following the
opening of escrow, which would allow for environmental
inspection and other inspections; and
City has sole discretion to approve the inspections and accept any
conditions on title; and
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CITY COUNCIL MINUTES Page 16 of 16 MAY 19, 2020
Multiple representations and warranties for the City’s benefit are
provided by the Defendant concerning the condition of the real
property, as the property will be accepted “as-is” except as
provided in the agreement; and
If the City does not acquire the entire real property for the mobile
home park, the agreement allows the eminent domain action to
proceed for final roadway and bridge project right-of-way
acquisition.
MOTION – A motion was made and seconded by Councilmembers
Radi/Sanchez to approve and execute the settlement agreement subject
to non-substantive corrections for signature blocks for Defendant, and
other non-substantive corrections for insertions to exhibits. Motion
passed unanimously.
If and when the settlement agreement is completely signed and final,
upon inquiry of any person, the terms and conditions of the agreement
are subject to disclosure and would be available for inspection as a
public record.
Council encouraged businesses to partake in the CVB’s Tourism Pledge.
Council noted that the public comments received from the residents do not
fall on deaf ears, and Council is here to serve the community, and do what is
in the best interest and safest for the entire community.
Council noted Memorial Day is coming up, and the community will honor those
we’ve lost over the years that have served our country and have allowed us
to live in the freedoms that we are trying to get more of during this pandemic.
ADJOURNMENT
There being no further business, a motion was made and seconded by
Councilmembers Radi/Fitzpatrick to adjourn at 10:34 p.m. Motion passed
unanimously.
Respectfully submitted,
MONIKA RADEVA, City Clerk
City of La Quinta, California
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SETTLEMENT AGREEMENT AND ESCROW INSTRUCTIONS
This SETTLEMENT AGREEMENT AND ESCROW INSTRUCTIONS
("Agreement") is made as of this day of , 2020 ("Effective Date"), by and
between CHIN FAMILY PROPERTIES LIMITED PARTNERSHIP, a California limited
partnership ("Chin"), and CITY OF LA QUINTA, a California municipal corporation (the
"City").
RECITALS
A. Chin is the owner of that certain real property located at 46-400 Dune Palms
Road, in the City of La Quinta, County of Riverside, State of California, legally described
on Exhibit "A" (the "Real Property"), which Real Property is improved with a mobile
home park commonly known as "Dune Palms Mobile Estates," which as of a date prior to
City's activities on site, consisted of one hundred one (101) mobile home spaces, one (1)
single family residential unit, and appurtenant fixtures and improvements (the "Mobile
Home Park").
B. On June 7, 2018, City filed an eminent domain action entitled City of La
Quinta v. Chin Family Properties Limited Partnership, et al., Riverside County Superior
Court Case No. PSC1803284 to acquire a permanent easement for street and public
utility purposes over a portion of the Real Property (the "Eminent Domain Action" to
acquire the "Roadway Project Part Take"). The Eminent Domain Action was brought for
purposes of making pubic roadway improvements pursuant to the circulation element of
the La Quinta General Plan, and specifically the "Dune Palms Widening Project" (the
"Roadway Project").
C. Chin was named in the Eminent Domain Action as owner of record, along
with a number of other parties with various interests of record. Chin owns and operates
(through a management company) the Mobile Home Park.
D. On or about October 3, 2018, the Superior Court of the State of California
for the County of Riverside granted City's Motion for Prejudgment Possession of the
Roadway Project Part Take area and issued an Order granting the City prejudgment
possession of the Roadway Project Part Take area which became effective on November
14, 2018. As authorized by said Order, City took five mobile home spaces, including
those whose occupants were displaced and relocated prior to the November 14, 2018
date of prejudgment possession. City represents and warrants that all directly impacted
Mobile Home Park residents have been successfully relocated, and the area of the
Roadway Project Part Take has been vacated. Construction of Roadway Project
improvements is underway.
E. In addition to the taking for roadway improvements to Dune Palms Road
through the Eminent Domain Action, City planned and now intends to implement another
public works project, entitled the "Dune Palms Bridge Project" (the "Bridge Project").
The Bridge Project requires acquisition of additional right of way from the Mobile Home
Park, consisting of both permanent roadway and public utility easements, and temporary
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