2016-02-02 ORD 533 2nd Reading - Signature at PGA West Dev Agrmt Amd 1City of La Quinta
CITY COUNCIL MEETING: February 2, 2016
STAFF REPORT
AGENDA TITLE: SECOND READING AND ADOPTION OF ORDINANCE NO. 533 AMENDING
THE EXISTING DEVELOPMENT AGREEMENT WITH RREF II-CWC LAQ, LLC. FOR THE
SIGNATURE PROJECT SITE TO REMOVE TWO PARCELS (LOTS 97 AND T) FROM THE TERMS OF
THE AGREEMENT; AND FIND THE PROJECT EXEMPT FROM FURTHER REVIEW PURUSANT TO
SECTIONS 15182 OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
RECOMMENDATION
Adopt Ordinance No. 533 on second reading, and make a finding of exemption under the
California Environmental Quality Act.
EXECUTIVE SUMMARY
• At the January 19, 2016, Council meeting, Council approved a motion to take up
and introduce Ordinance No. 533 on first reading, which will amend the existing
development agreement with RREF II-CWC LAQ, LLC. for the Signature residential
project.
• By law, a second reading of an ordinance must occur, followed by adoption and a
30-day posting period, before an ordinance may take effect.
FISCAL IMPACT – None.
BACKGROUND/ANALYSIS
Signature at PGA West, a 230-unit residential development, is under construction on a
42-acre site in the heart of the PGA West specific plan (Attachment 2). The Eden Rock at
PGA West project and the Agreement were approved in 2008. California West purchased
the property from the Eden Rock developer in 2013 and assumed the Agreement.
As part of the California West purchase, two parcels within the tract map boundaries
were sold to the La Quinta Resort to expand the parking lot for the PGA West Stadium
Course clubhouse (Attachment 3). Lot 97 (0.46 acres) is designated on the tentative map
with parking improvements, while Lot T (0.07 acres) is a common lot between a
residential lot and the existing clubhouse parking. Development cannot occur on Lot 97
until a Site Development Permit is approved. An application has not been filed.
As these parcels will not be part of the Signature project, the La Quinta Resort has
requested that California West remove them from the Agreement; therefore, this
amendment has been prepared.
Development agreements are discretionary actions subject to Planning Commission
review and City Council approval, and represent a mutual agreement between the City
and the ownership interest. A development agreement may be amended in whole or in
part only by mutual consent of all parties involved.
CONSENT CALENDAR ITEM NO.
There have been no objections to this amendment. California West has worked with the
City Attorney’s Office to prepare the amendment language (Exhibit A of Resolution),
which only references the two parcels being removed from the Agreement; there are no
other changes. Therefore, only the amendment language has been provided for
consideration.
ALTERNATIVES
As Council approved this ordinance at first reading, staff does not recommend an
alternative.
Prepared by: Monika Radeva, Executive Assistant
Approved by: Susan Maysels, City Clerk
ORDINANCE NO. 533
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA
QUINTA, CALIFORNIA, APPROVING AN AMENDMENT TO A
DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY
OF LA QUINTA AND RREF II-CWC LAQ, LLC.
CASE: DEVELOPMENT AGREEMENT 2015-0001
(DA 2006-011, AMENDMENT NO. 1)
WHEREAS, California Government Code Section 65864 et seq. (the
“Development Agreement Law”) authorizes cities to enter into binding development
agreements with persons having a legal or equitable interest in real property for the
development of such property, all for the purpose of strengthening the public planning
process, encouraging private participation and comprehensive planning, and
identifying the economic costs of such development; and
WHEREAS, the Planning Commission of the City of La Quinta, California did, on
the 8th day of December, 2015, hold a duly noticed Public Hearing to consider a
recommendation on an Amendment (Exhibit A) to the subject Development
Agreement, and after hearing and considering all testimony and arguments, did adopt
Planning Commission Resolution 2015-010, recommending to the City Council
approval of Development Agreement 2015-0001 (DA 2006-011, Amendment 1); and,
WHEREAS, the City Council of the City of La Quinta, California did, on the 19th
day of January, 2016, hold a duly noticed Public Hearing to consider an amendment to
a Development Agreement by and among the City of La Quinta and RREF II-CWC LAQ,
LLC for property located within the original PGA West Specific Plan area, bounded by
PGA Boulevard on the south and west, the PGA Stadium Course and Clubhouse to the
north and east; said property being the subject of the proposed amendment is
described as follows:
LOT 97 AND LOT T OF TR 36537-1, MB 442,
PGS 55 THROUGH 63 OF MAPS
WHEREAS, the Community Development Department published a public
hearing notice in The Desert Sun newspaper on January 8, 2016 as prescribed by the
Municipal Code regarding this proposal. Public hearing notices were also mailed to all
property owners within 500 feet of the project site; and,
WHEREAS, at said City Council Public Hearing, upon hearing and considering all
testimony and arguments, if any, of all interested persons wanting to be heard, said
City Council did make the following mandatory findings to justify approving the
proposed Amendment to the Development Agreement:
Ordinance No. 533
Development Agreement 2015-0001 – Signature at PGA West
(Development Agreement 2006-011, Amendment No.1)
Adopted:
Page 2 of 4
1. The proposed Amendment to the Development Agreement is internally
consistent with the goals, objectives, and policies of the General Plan and
the PGA West Specific Plan 83-002, Amendment 6, in that it will not conflict
or otherwise interfere in promoting residential development in a controlled
and logical manner that is compatible with the surrounding land uses and
the current Signature project approvals.
2. The proposed Amendment to the Development Agreement is compatible
with the uses authorized in and the regulations prescribed for the Tourist
Commercial land use district applicable to the property and the PGA West
Specific Plan.
3. The proposed Amendment to the Development Agreement conforms with
the public convenience and general welfare by providing for requisite private
improvements and conforms to good land use practice by facilitating a
long-range comprehensive approach to development of the site.
4. Approval of the proposed Amendment to the Development Agreement will
not be detrimental to the health, safety and general welfare since adequate
provisions exist in previous City approvals to provide for the necessary
project improvements contemplated under the Amendment.
5. Approval of this proposed Amendment to the Development Agreement will
not adversely affect the orderly development of the subject or surrounding
properties nor affect preservation of area-wide property values, but rather
will enhance them by facilitating orderly, planned project area development
consistent with the approved PGA West Specific Plan.
6. Consideration and adoption of this proposed Amendment to the
Development Agreement has been accomplished pursuant to California
Government Code Section 65864 et seq. and the City of La Quinta Municipal
Code Section 9.250.030, which governs Development Agreements.
WHEREAS, all actions required to be taken by the City precedent to the adoption
of this Ordinance have been regularly and duly taken.
NOW, THEREFORE, the City Council of the City of La Quinta, California does
ordain as follows:
SECTION 1. APPROVAL: The City Council hereby approves and adopts this
Amendment (Exhibit A) to the Development Agreement in the form presented to the
City Council concurrent with the approval and adoption of this Ordinance, and
authorizes and directs the City Manager to sign said Amendment to the Development
Ordinance No. 533
Development Agreement 2015-0001 – Signature at PGA West
(Development Agreement 2006-011, Amendment No.1)
Adopted:
Page 3 of 4
Agreement on behalf of the City, and the City Clerk to record the Amendment to the
Development Agreement in the Official Records of Riverside County in accordance
with applicable law.
SECTION 2. ENVIRONMENTAL: The La Quinta Community Development Department
determined that this application is exempt from further review pursuant to the
provisions of the California Environmental Quality Act (CEQA) under Section 15182
(Residential Projects Pursuant to a Specific Plan). A Determination of Substantial
Conformance was previously adopted by the La Quinta City Council on December 3,
2013, for the Signature at PGA West, with respect to the previously approved Eden
Rock at PGA West project, for which an Environmental Impact Report (SCH
#2007061056) was certified by the La Quinta City Council on April 15, 2008; and,
SECTION 3. EFFECTIVE DATE: This Ordinance shall be in full force and effect thirty
(30) days after its adoption.
SECTION 4. POSTING: The City Clerk shall certify to the passage and adoption of this
Ordinance, and shall cause the same to be posted in at least three public places
designated by resolution of the City Council, and shall cause this Ordinance and its
certification, together with proof of posting, to be entered into the Book of Ordinances
of this City.
PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City
Council held on this ___ day of February, 2016, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_______________________
LINDA EVANS, Mayor
City of La Quinta, California
ATTEST:
_____________________________________
Susan Maysels, City Clerk
City of La Quinta, California
Ordinance No. 533
Development Agreement 2015-0001 – Signature at PGA West
(Development Agreement 2006-011, Amendment No.1)
Adopted:
Page 4 of 4
APPROVED AS TO FORM:
_____________________________________
WILLIAM H. IHRKE, City Attorney
City of La Quinta, California
EXHIBIT A – ORDINANCE NO. 533
RECORDING REQUESTED BY
AND WHEN RECORDED
MAIL TO
City of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
Attn: City Clerk
Space Above This Line for Recorder’s Use
(Exempt from Recording Fee per Gov’t Code § 27383)
AMENDMENT NO. 1 TO DEVELOPMENT AGREEMENT
THIS AMENDMENT NO. 1 TO DEVELOPMENT AGREEMENT ("Amendment
No. 1") is made and entered into as of _________________, 2016 ("Effective Date") by and
between the CITY OF LA QUINTA, a California municipal corporation and charter city
organized and existing under the Constitution of the State of California (the “City”), and
RREF II-CWC LAQ, LLC, a California limited liability company (“Developer”).
R E C I T A L S:
A. The City and Developer's predecessor in interest, Crowne Pointe Partners, LLC,
an Oregon limited liability company ("Crowne Pointe"), entered into that certain Development
Agreement dated August 18, 2008, and recorded on September 18, 2008, as Instrument No.
2008-0509913, in the Official Records of the County of Riverside (the "Development
Agreement").
B. Crowne Pointe assigned all of its right, title, interest and obligations in, to and
under the Development Agreement to Developer and Developer accepted such assignment and
assumed the performance of all of the terms, covenants and conditions occurring or arising under
the Development Agreement on or after the effective date of such assignment, pursuant to that
certain Assignment and Assumption Agreement by and between Crowne Pointe, as "Assignor",
and Developer, as "Assignee", dated as of March 24, 2014 and recorded on March 28, 2014 as
Instrument No. 2014-0115107 in the Official Records of the County of Riverside (the
"Assignment and Assumption Agreement").
C. On or about March 13, 2015, Developer, as "Seller", and LQR Golf LLC, a
Delaware limited liability company ("LQR Golf"), as "Buyer", entered into that certain Property
Acquisition and Joint Escrow Instructions ("Property Acquisition Agreement") whereby
1
Developer agreed to sell to LQR Golf certain property described as Lot 97 and Lot T of Final
Tract Map No. 36537-1 (the "Subject Property").
D. As a condition to the consummation of the sale of the Subject Property by
Developer to LQR Golf pursuant to the Property Acquisition Agreement, LQR Golf has
requested that the Development Agreement be amended so as to exclude the Subject Property
from the terms and conditions of the Development Agreement.
E. City and Developer now wish to amend the Development Agreement so as to
exclude from Exhibit "A" to the Development Agreement the Subject Property.
F. The La Quinta Planning Commission and the La Quinta City Council have
determined that this Amendment No. 1 is consistent with the City’s General Plan and the
Specific Plan, including the goals and objectives thereof.
G. All actions taken by City have been duly taken in accordance with all applicable
legal requirements, including the California Environmental Quality Act (Public Resources Code
Section 21000, et seq.) ("CEQA"), and all other requirements for notice, public hearings,
findings, votes and other procedural matters.
I. On , 201 the City Council adopted its Ordinance No.
approving this Amendment No. 1.
A G R E E M E N T:
NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated
herein by this reference, and for valuable consideration the receipt and sufficiency of which is
hereby acknowledged, the parties hereto agree as follows:
1. The Development Agreement is hereby amended to remove and exclude from the
Legal Description of the Site, as set forth as Exhibit "A" to the Development Agreement, that
certain real property more particularly described as follows:
Lot 97 and Lot T of Tract 36537-1, as shown by Map on file in Book 442, Pages
55 through 63, inclusive, of Maps, Records of Riverside County, California
2. Except as otherwise expressly provided in this Amendment No. 1, all of the terms
and conditions of the Development Agreement shall remain in full force and effect.
3. In the event of any action between City and Developer seeking enforcement of
any of the terms and conditions to this Amendment No. 1, the prevailing party in such action
shall be awarded, in addition to damages, injunctive or other relief, its reasonable costs and
expenses, including without limitation its expert witness fees and reasonable attorney’s fees.
4. This Amendment No. 1 shall be construed according to its fair meaning and as if
prepared by both parties hereto.
5. This Amendment No. 1 shall be governed by the internal laws of the State of
California and any question arising hereunder shall be construed or determined according to such
2
law. The Superior Court of the State of California in and for the County of Riverside, or such
other appropriate court in such county, shall have exclusive jurisdiction of any litigation between
the parties concerning this Amendment No. 1. Service of process on City shall be made in
accordance with California law. Service of process on Developer shall be made in any manner
permitted by California law and shall be effective whether served inside or outside California.
6. Time is of the essence of this Amendment No. 1 and of each and every term and
provision hereof.
7. A waiver of a provision hereof, or modification of any provision herein contained,
shall be effective only if said waiver or modification is in writing, and signed by both City and
Developer. No waiver of any breach or default by any party hereto shall be considered to be a
waiver of any breach or default unless expressly provided herein or in the waiver.
8. Signatures of the parties transmitted by facsimile shall be deemed binding.
However, each party agrees to submit their original signature to the other party within five (5)
business days after execution hereof.
9. This Amendment No. 1 may be executed in counterparts, each of which, when
this Amendment No. 1 has been signed by all the parties hereto, shall be deemed an original, and
such counterparts shall constitute one and the same instrument.
10. The person(s) executing this Amendment No. 1 on behalf of each of the parties
hereto represent and warrant that (i) such party is duly organized and existing, (ii) they are duly
authorized to execute and deliver this Amendment No. 1 on behalf of said party, (iii) by so
executing this Amendment No. 1 such party is formally bound to the provisions of this
Amendment No. 1, and (iv) the entering into this Amendment No. 1 does not violate any
provision of any other agreement to which such party is bound.
[Balance of page intentionally left blank]
3
IN WITNESS WHEREOF, City and Developer each hereby represents that it has read
this Amendment No. 1, understands it, and hereby executes this Amendment No. 1 to be
effective as of the day and year first written above.
Date:____________________, 201
"DEVELOPER"
RREF II-CWC LAQ, LLC,
a California limited liability company
By: California West Construction, Inc.,
a California corporation
Its Authorized Agent
By:
Name:
Title:
Date:____________________, 201
"CITY"
CITY OF LA QUINTA, a California municipal
corporation and charter city organized and
existing under the Constitution of the State of
California
By:
City Manager
ATTEST:
Susan Maysels, City Clerk
APPROVED AS TO FORM:
RUTAN & TUCKER, LLP
By:
William H. Ihrke, City Attorney
4
A notary public or other officer completing this
certificate verified only the identity of the
individual who signed the document to which
this certificate is attached, and not the
truthfulness, accuracy, or validity of that
document.
STATE OF CALIFORNIA )
) ss.
COUNTY OF )
On , 2015, before me,
, Notary Public, 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 instrument 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.
Notary Public
5
A notary public or other officer completing this
certificate verified only the identity of the
individual who signed the document to which
this certificate is attached, and not the
truthfulness, accuracy, or validity of that
document.
STATE OF CALIFORNIA )
) ss.
COUNTY OF )
On , 2015, before me,
, Notary Public, 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 instrument 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.
Notary Public
6
Ordinance No. 533
Development Agreement 2015-0001 – Signature at PGA West
(Development Agreement 2006-011, Amendment No.1)
Adopted: February 2, 2016
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF LA QUINTA )
I, SUSAN MAYSELS, City Clerk of the City of La Quinta, California, do hereby certify the
foregoing to be a full, true, and correct copy of Ordinance No. 533, which was
introduced at a regular meeting on the 19th day of January, 2016, and was adopted
at a regular meeting held on the 2nd day of February, 2016, not being less than 5 days
after the date of introduction thereof.
I further certify that the foregoing Ordinance was posted in three places within the
City of La Quinta as specified in the Rules of Procedure adopted by City Council
Resolution No. 2014-013.
__________________________________________
SUSAN MAYSELS, City Clerk
City of La Quinta, California
DECLARATION OF POSTING
I, SUSAN MAYSELS, City Clerk of the City of La Quinta, California, do hereby certify that
the foregoing ordinance was posted on ____ February, 2016, pursuant to Council
Resolution.
__________________________________________
SUSAN MAYSELS, City Clerk
City of La Quinta, California