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2021-001 DH Resolution - Bellasara TR 31732DIRECTOR HEARING RESOLUTION NO. 2021 – 001 A RESOLUTION OF THE DIRECTOR OF THE DESIGN AND DEVELOPMENT DEPARTMENT OF THE CITY OF LA QUINTA AMENDING THE AMENDED FINAL MAP FOR TRACT NO. 31732 AND THE CONDITIONS OF APPROVAL THEREOF, AND AUTHORIZING THE CITY MANAGER TO SIGN RELATED ASSIGNMENTS AND AMENDMENTS TO THE SUBDIVISION IMPROVEMENT AGREEMENTS RELATING THERETO WHEREAS, a final subdivision map of Tract No. 31732 (“Original Tract Map”) in the City of La Quinta, County of Riverside, State of California, was approved by the City Council of the City of La Quinta (“City Council”) on or about March 21, 2006, and subsequently filed with the Official Records of the Riverside County Recorder on April 20, 2006, in Book 401 pages 22-33 of said county; and WHEREAS, the Original Tract Map was amended by that certain Amendment No. 2 (“Amendment”) filed with the Official Records of the Riverside County Recorder on or about August 23, 2017, in Book 456 pages 97-106 of said county (the Original Tract Map and the Amendment are collectively referred to as the “Final Map”); and WHEREAS, the owner of the real property described by the Final Map (“Real Property”) is Project LQ, LLC, a California limited liability (“Owner”), as successor- in-interest and purchaser for value thereof; and WHEREAS, in connection with the acquisition of the Real Property, the Owner’s predecessor-in-interest assumed that certain Subdivision Improvement Agreements (2), both dated July 5, 2007, and both as amended August 1, 2017, (the “Existing SIAs”), to complete certain tasks and construct certain on-site and off-site improvements as required by the Final Map and other entitlements applicable to the property subject to the Final Map (collectively, the “Development Obligation(s)”); and WHEREAS, the Owner has requested certain amendments to the conditions of approval for the Final Map (“Conditions of Approval”), a copy of which are on file with the City Engineer, and are available for review upon request; and WHEREAS, the Owner has requested that the Conditions Of Approval to the Final Map be amended to allow a lien contract (“Lien Contract”) pursuant to Government Code Section 66499(a)(4) and La Quinta Municipal Code Section 13.28.030 to replace for a period agreed upon by the City the security currently provided by the payment and performance bonds under Government Code Section 66499(a)(1) and the Existing SIAs (the “Existing Payment/Performance Bonds”); and WHEREAS, the City is authorized to accept the Lien Contract, under the provisions of Government Code Section 66499(a)(4), La Quinta Municipal Code Section 13.28.030, and Section 1(E) of City Council Resolution No. 96-27 Director Hearing Resolution No. 2021 – 001 Tract 31732; Project: Bellasara Second Assignment and Assumption Agreements with Lien Contracts by and among the City of La Quinta, VTL Palizada, LLC, and Project LQ, LLC Adopted: March 23, 2021 Page 2 of 5     (“Resolution 96-27”), provided the Conditions Of Approval for the Final Map are appropriately amended, the findings are made in accordance with Sections 1(E) and 2(B) of Resolution 96-27, and the Existing SIAs are appropriately amended upon approval of the amendments to the Conditions of Approval; and WHEREAS, the Director of the Design & Development Department for the City of La Quinta has the authority to review and approve amendments to final maps pursuant to La Quinta Municipal Code Section 13.04.060; and WHEREAS, the Existing SIAs are to be amended to accommodate the requested ability to use the Lien Contract as temporary substitute security for the Existing Payment/Performance Bonds by those certain SECOND ASSIGNMENT AND AMENDMENT TO SUBDIVISION IMPROVEMENT AGREEMENTS (2) for the OFF-SITE IMPROVEMENTS and ON-SITE IMPROVEMENTS, substantially in the forms attached to this Resolution as Exhibits “A” and “B” and attachment thereto (collectively, the “SIA Second Assignment/Amendments”); and WHEREAS, it shall be a condition of the amendments to the Conditions Of Approval that, in any event, the Lien Contract shall be replaced by payment and performance bonds required under the Conditions Of Approval and Existing SIAs no later than three (3) years after the date of recordation of the Lien Contract, as set forth in the SIA Second Assignment/Amendments; and WHEREAS, a Mitigated Negative Declaration was adopted by the City of La Quinta City Council on January 20, 2004, under Environmental Assessment 2003- 492. The Design and Development Department has determined that the proposed project is consistent with this previously approved project, as no changes to the map itself are proposed; and WHEREAS, it shall be a further condition of the amendments to the Conditions Of Approval that the pending Final Tract Map No. 37959-R for reversion to acreage of the Real Property be held in abeyance by the City but may be recorded if the Owner fails to replace the Lien Contract with payment and performance bonds as required by the Conditions Of Approval and Existing SIAs, as set forth in the SIA Second Assignment/Amendments and this Resolution; and WHEREAS, the Design and Development Director of the City of La Quinta, California did, on the March 23, 2021, hold a duly noticed Public Hearing to consider a request by Project LQ, LLC for an amendment to the final map; and WHEREAS, the Design and Development Department published a public hearing notice in The Desert Sun newspaper on March 13, 2021 as prescribed by the Municipal Code. Public hearing notices were also mailed to all property owners within 500 feet of the site; and Director Hearing Resolution No. 2021 – 001 Tract 31732; Project: Bellasara Second Assignment and Assumption Agreements with Lien Contracts by and among the City of La Quinta, VTL Palizada, LLC, and Project LQ, LLC Adopted: March 23, 2021 Page 3 of 5     WHEREAS, at said Public Hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons desiring to be heard, said Design and Development Director confirmed it has met all requirements from La Quinta Municipal Code Chapter 13.20 Final Maps and Parcel Maps. NOW THEREFORE, THE DIRECTOR OF THE DESIGN & DEVELOPMENT DEPARTMENT OF THE CITY OF LA QUINTA HEREBY RESOLVES AS FOLLOWS: SECTION 1.The Recitals and findings therein are true and correct and incorporated by reference into this Resolution. SECTION 2.The Final Map Conditions of Approval are hereby amended to read as follows: A new Condition 36.A is added to read as follows: 36.A.1. Upon the approval of the resolution adopting this condition, a lien contract (“Lien Contract”), executed by the property owner (“Owner”) and recorded in the Official Records of Riverside County, California, in accordance with Government Code Section 66499(a)(4), La Quinta Municipal Code Section 13.28.030, and Section 1(E) of City Council Resolution No. 96-27 (“Resolution 96-27”), may be used as temporary substitute security for payment and performance bonds (“Payment/Performance Bonds”) required pursuant to these conditions of approval and those certain Subdivision Improvement Agreements (2), both dated July 5, 2007, and both as amended on or about August 1, 2017, and both as amended on or about even date of the resolution adopting this condition by those certain SECOND ASSIGNMENT AND AMENDMENT TO SUBDIVISION IMPROVEMENT AGREEMENTS (2) for the OFF-SITE IMPROVEMENTS and ON-SITE IMPROVEMENTS (respectively) and attachment thereto (collectively, the “SIAs”). Such a Lien Contract may serve as temporary substitute security for a period of not more than three (3) years from the date of the Lien Contract’s recordation; provided, however, that if a Lien Contract is executed and recorded, then prior to the issuance of any permit, including a grading or building permit, or the commencement of installation or construction of any portion of the improvements required by the SIAs, whichever occurs first, the Owner shall procure and post for the benefit of the City the Payment/Performance Bonds required pursuant to these conditions of approval and the SIAs in amounts satisfactory to the City; and provided further that, in any event, the Lien Contract shall be replaced by the Payment/Performance Bonds required pursuant to these conditions of approval and the SIAs in amounts satisfactory to the City no later than three (3) years after the date of the Lien Contract’s recordation. 36.A.2. Pursuant to Government Code Section 66499(a)(4), La Quinta Municipal Code Section 13.28.030, and Section 1(E) of Resolution 96-27, the City finds and determines the following: Director Hearing Resolution No. 2021 – 001 Tract 31732; Project: Bellasara Second Assignment and Assumption Agreements with Lien Contracts by and among the City of La Quinta, VTL Palizada, LLC, and Project LQ, LLC Adopted: March 23, 2021 Page 4 of 5     a.It would not be in the public interest to require the installation of the required improvement[s] subject to the security provided by the Lien Contract sooner than two years after the recordation of the Amended Final Map; b.The lien provides at least three (3) times the value of the estimated costs of the improvements secured by the Lien Contract and includes the power of sale of the real property, and all buildings and improvements thereon or that may be erected upon or made thereto, together with all hereditaments and appurtenances thereunto belonging, or in any wise appertaining, and the reservations, remainders, rents, issues, and profits thereof. c.The collateral value of the real property has been established to the satisfaction of the City based on an appraisal approved by the City. 36.A.3. For as long as the Lien Contract is and remains recorded against the real property, the Owner shall have the obligation to pay the City the administration fee established pursuant to Section 2(B) of Resolution 96-27, as such fee may be calculated and invoiced by the City to the Owner. A new Condition 36.B is added to read as follows: 36.B. In the event the Owner fails to replace the Lien Contract with the Payment/Performance Bonds by the third anniversary of the date of recording the Lien Contract (as those terms are defined in Condition 36.A above), the City may record the pending Final Tract Map No. 37959-R, providing for reversion to acreage of the real property subject to the Amended Final Map. SECTION 3.The Existing SIAs are hereby amended by the SIA Second Assignment/Amendments, and are hereby incorporated into this Resolution by this reference. SECTION 4.The City Manager, or authorized designee, is hereby authorized, on behalf of the City to execute the SIA Second Assignment/Amendments, and to take any required actions to carry out the terms of this Resolution. ADOPTED THIS 23RD DAY OF MARCH 2021, BY THE DIRECTOR OF THE DESIGN AND DEVELOPMENT DEPARTMENT OF THE CITY OF LA QUINTA. _________________________ DANNY CASTRO Design and Development Director City of La Quinta, California Director Hearing Resolution No. 2021 – 001 Tract 31732; Project: Bellasara Second Assignment and Assumption Agreements with Lien Contracts by and among the City of La Quinta, VTL Palizada, LLC, and Project LQ, LLC Adopted: March 23, 2021 Page 5 of 5 ATTEST ________________________ Monika Radeva, City Clerk City of La Quinta, California APPROVED AS TO FORM: _________________________ William H. Ihrke, City Attorney City of La Quinta, California ________________________ Willi m HIhkeCit Atto ne EST