Riverside Co/Flood Control & Water Cons. Taxing Entity Comp. 14AGREEMENT FOR TAXING ENTITY COMPENSATION
This Agreement for Taxing Entity Compensation (this "Agreement'), dated for reference
purposes as of October.20, 2014, is entered into by and among the following public agencies (all
of which are collectively referred to herein as the "Parties" and as the "Taxing Entities"):
City of La Quinta, a California municipal corporation ("City");
County of Riverside, a political subdivision of the State of California ("County");
'Riverside County Flood Control and Water Conservation District, a public agency ,
("RCFCWCD");
Riverside County Regional Parks and Open Space District, a public agency ,
("RCRPOSD")��
RECITALS
A. Pursuant to Assembly Bill 26 from the 2011-12 First Extraordinary Session of the
California Legislature ("ABxl 26") and the California Su reme. Court's decision in California
Redevelopment Association v. Matosantos (2011) 53 Cal.4t 231, effective February 1, 2012; the
La Quinta Redevelopment Agency ("Redevelopment Agency" or "RDA") was dissolved, and
pursuant to Health & Safety Code Section 34173 as amended by Assembly Bill 1484 ("AB
1484"), the La Quinta Successor Agency became the successor -in -interest by operation of law to
the Redevelopment Agency (the "Successor Agency").
B. Pursuant to Health and Safety Code Section 34191.5, the Successor Agency
prepared a Long -Range Property Management Plan ("LRPMP") that addresses disposition of
the real property formerly owned by theRedevelopmentAgency.
C. On August 6, 2014, the LRPMP was approved by Resolution of the Oversight
Board to the Successor Agency (the "Oversight Board"), a seven -member board established
pursuant to Health and Safety Code Section 34179 that includes representatives appointed by the
Taxing Entities, as specified.
D. On August 22, 2014, the State Department of Finance ("DOF") approved the
LRPMP.
E. This Agreement is negotiated and entered into by the Parties pursuant to the
LRPMP as approved by the DOF. As such, this Agreement relates to the disposition and use of
former RDA real property assets governed by the LRPMP and shall control the distribution to
the Taxing Entities of proceeds received by the City for the disposition and use of the former
RDA real property assets identified in this Agreement. To the extent there may be a conflict
between any provision of law and the terms and conditions of this Agreement, this Agreement
shall control pursuant to Health and Safety Code section 34191.3.
NOW THEREFORE, the Parties agree as follows:
1. Purpose. This Agreement is executed with reference to the facts set forth in the
foregoing Recitals, which are incorporated into this Agreement by this reference. The purpose of
698/015610-0120
7244869.5 a10/20/14
this Agreement is to address the allocation of certain prospective revenues among the taxing
entities that share in the property tax base ("Tax Base") for property located within the
redevelopment project areas formerly administered by the Redevelopment Agency.
2. Special Districts and Funds. The governing boards of certain of the Taxing
Entities administer certain special districts and funds that receive allocations of property taxes
from the Tax Base. The governing board of the County is authorized to execute this Agreement
on behalf of such special districts and funds governed and administered by the County and shall
cause any Net Unrestricted Proceeds (as defined below) to be distributed to those special districts
and funds, as applicable, including but not limited to the Riverside County ERAF fund(s), any
Riverside County library fund(s), and Riverside County flood control district.
3. Parcels to be Conveyed to City for Future Development Consistent with LRPMP.
The LRPMP provides that, pursuant to Health. & Safety Code Section 34191.5(c)(2), certain
parcels formerly owned by the Redevelopment Agency shall be transferred by the Successor
Agency to the City for future development, which parcels are listed in Exhibit "A" attached
hereto and incorporated by reference (collectively referred to herein as the "Development
Property").
4. Parcels May Be Conveyed to Public Agencies for Governmental Uses. The
Parties agree that the LRPMP may provide, pursuant to Health & Safety Code Section
34191.5(c)(2), that certain parcels formerly owned by the Redevelopment Agency will be
transferred by the Successor Agency to the City for continued governmental uses. No
compensation will be paid to the City or to the Taxing Entities in connection with the transfers of
these parcels for continued governmental uses, as approved by the DOF in the LRPMP.
5. . Covenant to Distribute Specified Proceeds to Taxing Entities Upon Sale of
Development Property. The City agrees that, consistent with the LRPMP approved by DOF,. the
City shall remit Net Unrestricted Proceeds to the Riverside County Auditor -Controller's Office
("Auditor -Controller") for distribution to the Taxing Entities. "Net Unrestricted Proceeds"
shall mean the proceeds of sale received by the City for the sale of the Development Property,
less: (i) costs incurred by City for expenses in connection with the management and disposition
of the Development Property, including without limitation, costs incurred for property
management, maintenance, insurance, marketing, appraisals, brokers' fees, escrow, closing costs,
survey, title insurance, attorneys' and consultants' fees, and other reasonable costs incurred,
including reasonable compensation for City staff performing functions associated with the
management, maintenance and disposition of the Development Property, and (ii) any proceeds of
sale that are restricted by virtue of the source of funds (e.g. grant funds or the proceeds of bonds)
that were used for the original acquisition of the Development Property.
6. Sale Procedures and Proceeds; Distribution to Taxing Entities. Upon the
subsequent conveyance of the Development Property from the City to any private (non-public
agency) third party, the City shall remit to the Auditor -Controller the Net Unrestricted Proceeds
(if any) -received by the City from the conveyance of the Development Property within 30 days
after receipt by the City. The Auditor -Controller thereafter shall have the obligation to distribute
to the Taxing Entities in accordance with each Taxing Entity's pro rata share of the Tax Base
(pursuant to Health and Safety Code Section 34188 or other applicable law) the Net Unrestricted
698/015610-0120
7244869.5 a10/20/14 -2-
Proceeds remitted to the Auditor. -Controller by the City pursuant to this Agreement. The Parties
acknowledge and agree that City is obligated to convey the Development Property consistent
with the LRPMP and terms and conditions governing the disposition of the Development
Property by and between the purchaser of the parcels that comprise the Development Property.
The Parties further acknowledge and agree that, due to the encumbrances and restrictions
attached to and running with the Development Property, the value of the Development Property
(or any portion thereof) shall be the amount of money the City receives for the conveyance of the
Development Property (or any portion thereof) at the time of that conveyance to a private (non-
public agency) third party, and such value shall be used to determine the Net Unrestricted
Proceeds to be remitted to the Auditor -Controller pursuant to this Agreement.
7. Reservation of Rights Re: Compensation Agreement. The Successor Agency
interprets Health and Safety Code Sections 34191.3 and 34191.5 to mean that; once a long-range
property management plan has been approved by DOF, it supersedes all .other provisions of the
statute relating to the disposition and use of the former redevelopment agency's real property,
and agreements with taxing entities are not required in connection with the disposition of a
successor agency's real property to the sponsoring city for governmental uses or for subsequent
disposition for future development. Nevertheless, pursuant to DOF direction, the City enters into
this Agreement with the Taxing Entities to address the disposition of Development Property
pursuant to the LRPMP. If a court order,. legislation, or DOF policy reverses the requirement
issued by the DOF to enter into this Agreement, the Parties acknowledge that the City shall have
no obligation to enter into this Agreement with the Taxing Entities, and in such event, the City
shall be permitted to convey the Development Property even if this Agreement has not been
executed by all Taxing Entities. Notwithstanding the foregoing, the City agrees that. it shall
comply with the LRPMP, as approved by DOE, and make a payment of Net Unrestricted
Proceeds (if any) to the Taxing Entities pursuant to this Agreement.
8. Miscellaneous Provisions.
8.1 Notices. Except as otherwise specified in this Agreement, all notices to be sent
pursuant to this Agreement shall be made in writing, and sent to the Parties at their respective
addresses specified on the signature pages to this Agreement or to such other address as a Party
may designate -by written notice delivered to the other Parties in accordance with this Section. In
addition to any other method of delivery agreed upon between respective Parties, all such notices
shall be sent by: (i) personal delivery, in which case notice is effective upon delivery; (ii)
Electronic mail (e-mail) or facsimile, in which case notice shall be deemed delivered on the next
business day after confirmation that the intended recipient received the notice via e-mail or
facsimile; (iii) certified or registered mail, return receipt requested, in which case notice shall be
deemed delivered on receipt if delivery is confirmed by a return receipt; or (iv) nationally
recognized overnight courier, with charges prepaid or charged to the sender's account, in which
case notice is effective on delivery if delivery is confirmed by the delivery service.
8.2 Headings; Interpretation. The section headings and captions used herein .are
solely for convenience and shall not be used to interpret this Agreement. The Parties agree that
this Agreement shall not be construed as if prepared by one of the Parties, but rather according to
its fair meaning as a whole, as if all Parties had prepared it.
698/015610-0120
7244869.5 a10/20/14 -3-
z
8.3 Action or Approval. Whenever action and/or approval by City is required under.
this Agreement, the City Manager or his or her designee may act on and/or approve such matter
unless specifically provided otherwise, or unless the City Manager determines in his or her
discretion that such action or approval requires referral to City Council for consideration.
8.4 Entire Agreement. This Agreement, including exhibits attached hereto and
incorporated. herein by this reference, contains the entire agreement among the Parties with
respect to the .subject matter hereof, and supersedes all prior written or oral agreements,
understandings, representations or statements between the Parties with respect to the subject
matter hereof.
8.5 Non -Waiver. No waiver of a breach, failure of any condition, or any right or
remedy contained in or granted by the provisions of this Agreement shall be effective unless it is
in writing and signed by the Party charged with or claimed to have waived any such provision.
8.6 Amendment. This Agreement may be amended or modified, in whole or in part,
only in writing and only if signed by the Party or Parties to be bound by the amendment or
modification.
8.7 Severability. If any term, provision, or condition of this Agreement is held by a
court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement
shall continue in full force and effect unless an essential purpose of this Agreement is defeated
by such invalidity or unenforceability.
8.8 No Third Party Beneficiaries. Except as expressly set forth herein, nothing
contained in this Agreement is intended to or shall be deemed to confer upon any person, other
than the Parties and their respective successors and assigns, any rights or remedies hereunder.
8.9 Parties Not Co -Venturers; Independent Contractor; No Agency Relationship.
Nothing. in this Agreement, is intended to or shall establish the Parties as partners, co -venturers,
or principal and agent with one another. The relationship of the Parties shall not be construed as
a joint venture, equity venture, partnership or any other relationship.
8.10 Governing Law; Venue. This Agreement shall be governed by and construed in
accordance with the laws of the State of California without regard to principles of conflicts of
laws. Any action to enforce or interpret this Agreement shall be filed and heard in the Superior
Court of Riverside County, California.
8.11 Counterparts. This Agreement may be executed in counterparts, each of which
shall be an original and all of which taken together shall constitute one instrument. The
signature page of any counterpart may be detached therefrom without impairing the legal effect
of the signature(s) thereon provided such signature page is attached to any other counterpart
identical thereto having additional signature pages executed by the other Parties. Any executed
counterpart of this Agreement may be delivered to the other Parties by e-mail attachment or
facsimile and shall be deemed as binding as if an originally signed counterpart was delivered.
698/015610-0120
7244869.5 a10/20/14
SIGNATURES ON FOLLOWING PAGES
Is
IN WITNESS WHEREOF, the Parties have executed this Agreement by their authorized
representatives as indicated below. ,
Attest:
CITY OF LA QUINTA, a California Municipal Corporation
t Digitally signed by FrankJ. Spevacek
DN: serial Number=g8x45h14dsg5g957, c=US, st=California,
1=La Quinta, o=FrankJ. Spevacek; -n=Frank J. Spevacek
Date:2014.10.31 10:44:03 0700'
By:
Name:
Title:
C Digitally signed by City of La Quinta
,.c= S,st=Cumbera,I=La Quinta,
�c=US, ,lalNumbe,=6fml Quinta,
o=Ci of La Quinta, cn=City of La
® Quinta;
/ Date: 2014.11.03 08:21 :38 -08'00'
City Clerk
Approved as to form:
City Attorney
Address for Notices:
To City Hall: City of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
Attention: City Manager
with a copy to: Rutan & Tucker, LLP
611 Anton Blvd., Suite 1400
Costa Mesa, CA 92626
Attention: William H. Ihrke, Esq.
SIGNATURES CONTINUED ONFOLLOWING PAGES
698/015610-0120
7244869.5 a10/20/14 —5—
e f 1'
COUNTY OF RIVERSIDE, a political subdivision of the State of California, and for
county -administered special districts and funds.
By:
Name: Jeff Stone
Title: Chairman of the Board of Supervisors
Attest by:
Approved as to form:
County Counsel
Address for Notices:
County of Riverside
Administrative Center
4080 Lemon Street, 5th Floor
Riverside, California 92501
698/015610-0120
7244869.5 a10/20/14 -6-
FLOOD CONTROL AND WATER CONSERVATION DISTRICT, a public agency.
Name: Jeff Stone
Title: Chairman of the Board of Supervisors
Attest by:
Approved as to form:
District Counsel
Address for Notices:
County of Riverside
Administrative Center .
4080 Lemon Street, 5th Floor
Riverside, California 92501
698/015610-0120
7244869.5 a10/20/14 -7-
REGIONAL PARKS AND OPEN SPACE DISTRICT, a public agency.
M.
Name: Jeff Stone
Title: Chairman of the Board of Supervisors
Attest by:
Approved as to form:
District Counsel
Address for Notices:
County of Riverside
Administrative Center
4080 Lemon Street, 5th Floor
Riverside, California 92501
698/015610-0120
7244869.5 a10/20/14
-8-
EXHIBIT "A"
DEVELOPMENT PROPERTY
Assessor's Parcel Nos.:
776-150-024 and 770-200-027
• 776-150-025
• 777-490-015
777-490-016
777-060-063, 777-060-066, 777-060-067 and 777-060-069
777-490-005
777-490-009
776-150-022 and 777-490-01 1
777-490-012
777-490-013
• 777-490-014
698/015610-0120 EXHIBIT. A
7244869.4 a10/20/14
L7
Alt
M
It
............... ...............
52NDAVE,
f.
La Quinta
Property Transfer
Public Use Parcels to Transfer
September 23, 2014
City of La Quinta
Planning Division
Community Development Department
TQ: Frank J. Spevacek, City Manager
FROM: Kimberly Weiss, Content Editor/Writer` .
DATE: October 30, 2014
RE; Compensation Agreement from County of Riverside
Attached for your signature are.two (2) original agreements;.
The County asked that the signature pages be executed by the City prior to taking
the agreement to their Board.
Please sign and return to the City Clerk for processing and distribution.
Susan Maysels
From: Dasika, Rohini <RDasika@rceo.org>
Sent: Tuesday, November 04, 2014 2:55 PM
To: Susan Maysels
Subject: RE: Compensation Agreement with La Quinta & Riv Cty & 2 Districts
Not necessary —thanks!
From: Susan Maysels [mailto:Smaysels@la-quinta.org]
Sent: Tuesday, November 04, 2014 2:55 PM
To: Dasika, Rohini
Subject: RE: Compensation Agreement with La Quinta & Riv Cty & 2 Districts
Rohini,
The City has initiated secure digital signature use for the City Manage and City Clerk. This type of electronic
signing is now accepted by the federal gov't, state gov't, Riverside County Recorder, title companies, etc. The
documents I would mail to you would be exactly as you can .print them out from your computer. I'm happy to
mail two paper copies if desired.
Susan Maysels I City Clerk
City of La Quinta
78495 Calle Tampico ° La Quinta, CA 92253
760.777.7123
smaysels@la-quinta.org
From: Dasika, Rohini [mailto:RDasika@rceo.org]
Sent: Tuesday, November 04, 2014 2:14 PM
To: Susan Maysels
Cc: Chris Escobedo; Kim Weiss
Subject:: RE: Compensation Agreement with La Quinta & Riv Cty & 2 Districts
Will the paper copies be with a wet signature? I will need these sent to:
Rohini Dasika
Riverside County Executive Office
4080 Lemon Street, 4th Floor
Riverside, CA 92501
From: Susan Maysels [mailto:Smaysels@la-quints_ .org]
Sent: Monday, November 03, 2014 8:47 AM
To: Dasika, Rohini
Cc: Chris Escobedo; Kim Weiss
Subject: Compensation Agreement with La Quinta & Riv Cty & 2 Districts
Dear Rohini Dasika,
Attached is the digitally -executed Compensation Agreement between La Quinta and Riverside County, the
Flood Control District and the Parks District. Please return one fully executed agreement to me at the address
below for city files.
If you would like two paper copies by mail, please provide the name and address of the person to whom it
should be sent.
Thank you.
Yours truly,
Susan Maysels City Clerk
City of La Quinta
a
^;
78495 Calle Tampico La Quinta, CA 92253
Ph. 760.777.7123
smaysels@la-guinta.org
Website I Map
W; h 2
Please note: The County Administrative Center
is open Monday through Friday. Business hours
for the County Executive Office are Monday
through Friday, 8:00 a.m. to 5:00 p.m.
This email is confidential and intended solely for the use of the individual(s) to whom it is addressed. The information
contained in this message may be privileged and confidential and protected from disclosure.
If you are not the author's intended recipient, be advised that you have received this email in error and that any use,
dissemination, forwarding, printing, or copying of this email is strictly prohibited. If you have received this email in error
please delete all copies, both electronic and printed, and contact the author immediately.
Please note: The County Administrative Center is open Monday through Friday. Business hours for the County Executive
Office are Monday through Friday, 8:00 a.m. to 5:00 p.m.
Susan Maysels
From: Susan Maysels
Sent: Monday, November 03, 2014 8:47 AM
To: 'RDasika@RCEO.org'
Cc: Chris Escobedo; Kim Weiss
Subject: Compensation Agreement with La Quinta & Riv Cty & 2 _Districts
Attachments: Zdone - Riv Cty Flood District Parks District.pdf
Dear Rohini Dasika,
Attached is the digitally -executed Compensation Agreement between La Quinta and Riverside County, the
Flood Control District and the Parks District. Please return one fully executed agreement to me at the address
below for city files.
If you would like two paper copies by mail, please provide the name and address of the person to whom it
should be sent.
Thank you.
Yours.truly,
Susan Maysels i City Clark
u`
City of La Quinta
78495 Calle Tampico La QLiinta, CA 92253
Ph. 760.777.71.23
smaysels@la-guinta.org
Website I Map
1
Susan Maysels.
From:
Wanda Wise -Latta
Sent:
Friday, October 31, 2014 10:49 AM
To:
Susan Maysels (Smaysels@la-quinta.org)
Subject:
FW: Riv Cty agr for review & signature
Attachments:
Riv Cty Flood District Parks District (2).pdf
Below is Frank's email authorizing the placement of his digital signature on the attached document. Thank
you.
Wanda Wise -Latta I Executive Assistant
City of La Quinta
78495 Calle Tarnpico ,� La Quinta, CA 92253
760,777.7030
wlatta@la-guinta.org
From: Frank Spevacek
Sent: Friday, October 31, 2014 10:29 AM
To: Wanda Wise -Latta (wlatta &Ia-quinta.org)
Cc: Susan Maysels (Smaysels,@L-,quinta.org)
Subject: FW: Riv Cty agr for review & signature
Wanda
I have reviewed and approve this agreement. Please affix my electronic signature. Thank you.
From: Susan Maysels
Sent: Thursday, October 30, 2014 3:18 PM
To: Frank Spevacek
Subject: Riv Cty agr for review & signature
Susan Maysels j City Clerk
City of La Quinta
78495 Calle Tampico La Quinta, CA 92253
760.777.7123
s_maysels@la-guinta.org
1
Susan Maysels
From:
Sent:
To:
Subject:
Attachments:
Susan,
See below for delivery.
Kim
Kim Weiss
Thursday, October 30, 2014 9:33 AM
Susan Maysels
FW: Follow Up
For Signature Compenation Agreement Co. of Riv..pdf .
Kimberly Weiss i Content Editor/Writer
City of La Quinta
78495 Calle Tampico - La Quinta, CA 92253
760.777.7035
kweiss@la-guinta.org
From: Chris Escobedo
Sent: Thursday, October 30, 2014 7:44 AM
To: Kim Weiss
Subject: FW: Follow Up
Can. we get this on over to Rohini ASAP?
Chris Escobedo I Assistant to City Manager
City of La Quinta
78495 Calle Tampico - La Quinta, CA 92253
760.777.7010
cescobedo@la-guinta.org
From: Dasika, Rohini [mailto:RDasika@rceo.org]
Sent: Thursday, October 30, 2014 7:44 AM
To: Chris Escobedo
Cc: Willis, Anita; Kim Weiss
Subject: RE: Follow Up
That will be great. Thanks!
From: Chris Escobedo [mailto:Cescobedo@la-quinta.org]
Sent: Thursday, October 30, 2014 7:43 AM
To: Dasika, Rohini
Cc: Willis, Anita; Kim Weiss
Subject: RE: Follow Up
1
Great, yes that's no problem at all. We'll have that signature page executed and to you well before
November 12th. Will PDF be acceptable for now and we can overnight the originals?
Chris Escobedo I Assistant to City Manager
City of La Quinta
y 78495 Calle Tampico La Quinta, CAf92253
760.777.7010
cescobedo@la-guinta.org
From: Dasika, Rohini [mailto:RDasika@rceo.org]
Sent: Thursday, October 30, 2014 7:40 AM
To: Chris Escobedo
Cc: Willis, Anita
Subject: RE: Follow Up
Good Morning Chris:
I'm looking at the Agreement, and I will need the signature page executed by the City. Typically we need all approvals
before we go to the Board of Supervisors.
Let me know if this can be complete by November 12.
In the meantime, I am forwarding the staff report and agreement to Parks and Flood so they can get everything -ready
for their Boards.
Thanks, and give me a call if you have any questions.
From: Chris Escobedo [mailto:Cescobedo0a-quinta.org]
Sent: Wednesday, October 29; 2014 11:48 AM
To: Dasika, Rohini
Subject: Follow Up
Great speaking with you. Here's my contact info.
Chris Escobedo I Assistant to City Manager
City of La Quinta
78495 Calle Tampico La Quinta, CA 92253
Ph. 760.777.7016
Website I Map
through Friday, 8:00 a.m. to 5:00 p.m.
Please note: The County Administrative Center
is open Monday through Friday. Business hours
for the County Executive Office are Monday
This email is confidential and intended solely for the use of the individual(s) to whom it is addressed. The information
contained in this message may be privileged and confidential and protected from disclosure.
If you are not the author's intended recipient, be advised that you have received this email in error and that any use,
dissemination, forwarding, printing, or copying of this email is strictly prohibited. If you have received this email in error
please delete all copies, both electronic and printed, and contact the author immediately.
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SUBMITTAL TO THE BOARD OF SUPERVISORS
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
FROM: Executive Office
SUBMITTAL DATE:
November 13, 2014
SUBJECT: Approval of Agreement for Taxing Entity Compensation for City of La Quinta
RECOMMENDED MOTION: That the Board of Supervisors approve and authorize the Chairman of
the Board of Supervisors to execute the Agreement for Taxing Entity Compensation (Agreement) by and
between the City of La Quinta, the County of Riverside, and Riverside County Regional Park and Open
Space' District, (collectively referred to as "Taxing Entities").
BACKGROUND:
Summary
Pursuant to Assembly Bill 1484 (AB 1484), successor agencies (SAs) are required to prepare a Long
Range Property Management Plan ,(LRPMP) which sets forth the strategy and process of the SA in the
use and disposition of the former Redevelopment Agency real property assets (Properties). The goal of
each SA is to dispose of the Properties expeditiously and in a manner that will maximize value to the
affected Taxing Entities, while still advancing the planning objectives. for which the Properties were
originally acquired.
(continues on next page)
COST 1 $ . 0 $ 0 $
NET COUNTY COST $ 0 $ 0 $
SOURCE OF FUNDS: N/A
C:E.O. RECOMMENDATION:
County Executive Office Signature
Rohini Dasika
Senior Management Analyst
d0 $ 0 Consent ❑ Policy
01
Budget Adjustment: NIA
For Fiscal Year: 14/15
APPROVE
BY•
MINUTES OF THE BOARD OF SUPERVISORS
On motion of Supervisor Benoit, seconded by Supervisor Ashley and duly carried, IT
WAS ORDERED that the above matter is approved as recommended.
Ayes: Stone, Benoit and Ashley.
Nays: None Kecia Harper -Them
Absent: Jeffries and Tavaglione Cle r
Date: November 24, 2014 B .
xc: E.O. eputy
Prev. Agn. Ref.:
District: 4 1 Agenda Number:
3-10
SUBMITTAL TO THE BOARD OF SUPERVISORS, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
FORM 11: Approval of Agreement for Taxing Entity Compensation for City of La Quinta
DATE: November 13, 2014
PAGE: 2 of 3
BACKGROUND:
Summary (continued)
The Successor Agency to the Redevelopment Agency of the City of La Quinta (City Agency) prepared a
LRPMP that their Oversight Board approved on August 6, 2014, and the State Department of Finance (DOF)
subsequently approved on August 22, 2014.
Included in the allowable use and disposition strategies for successor agency owned property, as set forth in
Health and Safety Code Section 34191.5 (c)(2), is the conveyance of parcels from the City Agency to the city
for future development (Development Property), and conveyance of the parcels from the City Agency to the
city for governmental use (Transfer Property). The City Agency is proposing to transfer the parcels listed in
Exhibit "A" to the, City of La Quinta for future development of property and for continued governmental uses.
Neither Taxing Entities nor the City of La Quinta will receive compensation for Transfer Property. The attached
Agreement sets forth the terms of the covenant to distribute specified proceeds to Taxing Entities upon sale of
the Development Property.
The compensation agreements provide for the allocation of sale proceeds to taxing entities received in
connection with the sale of real property assets held by the. former Redevelopment Agency. In La Quinta's
case, the Department of Finance has approved the former Redevelopment Agency transferring the property to
the City for the limited value (La Quinta obtained appraisals from an independent MAI certified appraiser). The
16 properties in question have limited value since they were purchased and improved with tax-exempt bond
proceeds. Internal Revenue Service regulations governing the use of tax-exempt bond proceeds essentially
prohibit the sale of these properties at a value no greater than $1.00 for each property. These restrictions
cannot be removed without paying off the $97 million in tax-exempt bonds, which is not expected to occur until
2033.
The City is currently working toward securing a property tax revenue -generating development at the SilverRock
Resort. In order to facilitate this development, the City desires to include approximately 30 acres of this
property with other City -owned properties at SilverRock that are not subject to the Compensation Agreement.
The development proposed at SilverRock includes hotels, mixed use retail, and resort residential. The
proposed projects are projected to create property tax revenue at project build out.
Compensation agreements must be approved by all nine taxing entities, including the County of Riverside,
Coachella Valley Water District, Coachella Valley Resource Conservation District, Coachella Valley Public
Cemetery, Coachella Valley Mosquito & Vector Control District, Desert Community College District (College of
the Desert), Desert Recreation District, Desert Sands Unified School District, and Riverside County Office of
Education. Approval of this agreement does not affect redevelopment pass through agreements.
Pursuant to the Agreement, upon the conveyance of the Development Property from the City to any private
third party, the City shall remit net unrestricted proceeds to the Riverside County Auditor -Controller's Office for
distribution to the Taxing Entities within thirty (30) days after receipt by the city. The Agreement further details
that the City is obligated to convey the Development Property consistent with the LRPMP and terms and
conditions governing the disposition of the Development Property by and between the purchaser of the. parcels
that comprise the Development Property.
Staff recommends approval and execution of the attached Agreement
i
SUBMITTAL TO THE BOARD OF SUPERVISORS, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
FORM 11: Approval of Agreement for Taxing Entity Compensation for City of La Quinta
DATE: November 13, 2014
PAGE: 3 of 3
Impact on Citizens and Businesses
The approval and execution of the agreement will benefit the citizens and businesses of Riverside County
through increased property tax revenues upon project completion to all affected Taxing Entities.
aNHE1NI DGCUMENT 1S FULLY EXECUTED RETURN
ij—
to Riv si& Caunty C lcr'L of t11e Board, Stop 1016
Post office Box 1141, Riverside, ra 92502-1147
Thank you.
AGREEMENT FOR TAXING ENTITY COMPENSATION
This Agreement for Taxing Entity Compensation (this "Agreement"), dated for reference
purposes as of November 3, 2014, is entered into by and among the following public agencies
(all of which are collectively referred to herein as the "Parties" and as the "Taxing Entities"):
City of La Quinta, a California municipal corporation ("City");'
County of Riverside, a political subdivision of the State of California ("County");
Riverside County Regional Parks and Open Space District, a public agency
("RCRPOSD")
RECITALS
A. Pursuant to Assembly Bill 26 from the 2011-12 First Extraordinary Session of the
California Legislature ("ABx1 26") and the California S7reme Court's decision in California
Redevelopment Association v. Matosantos (2011) 53 Cal.4 231, effective February 1, 2012, the
La Quinta Redevelopment Agency ("Redevelopment Agency" or "RDA") was dissolved, and
pursuant to Health & Safety Code Section 34173 as amended by Assembly Bill 1484 ("AB
1484"), the La Quinta Successor Agency became the successor -in -interest by operation of law to
the Redevelopment Agency (the "Successor Agency").
B. Pursuant to Health and Safety Code Section 34191.5, the Successor Agency
prepared a Long -Range Property Management Plan ("LRPMP") that addresses disposition of
the real property formerly owned by the Redevelopment Agency.
C. On August 6, 2014, the LRPMP was approved by Resolution of the Oversight
Board to the Successor Agency (the "Oversight Board"), a seven -member board established
pursuant to Health and Safety Code Section 34179 that includes representatives appointed by the
Taxing Entities, as specified.
D. On August 22, 2014, the State Department of Finance ("DOF") approved the
LRPMP.
E. This Agreement is negotiated and entered into by the Parties pursuant to the
LRPMP as approved by the DOF. As such, this Agreement relates to the disposition and use of
former RDA real property assets governed by the LRPMP and shall control the distribution to
the Taxing Entities of proceeds received by the City for the disposition and use of the former
RDA real property assets identified in this Agreement. To the extent there may be a conflict
between any provision of law and the terms and conditions of this Agreement, this Agreement
shall control pursuant to Health and Safety Code section 34191.3.
NOW THEREFORE, the Parties agree as follows:
1. Purpose. This Agreement is executed with reference to the facts set forth in the
foregoing Recitals, which are incorporated into this Agreement by this reference. The purpose of
this Agreement is to address the allocation of certain prospective revenues among the taxing
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,NOV 2 4 2014 �� b
4
entities that share in the property tax .base ("Tax Base") for property located within the
redevelopment project areas formerly administered by the :Redevelopment Agency.
2. Special Districts and Funds. The governing .boards of certain of the Taxing
Entities administer certain special districts and funds that receive allocations of property taxes
from the Tax Base. The governing board of the County is authorized to execute this Agreement
on behalf of such special districts and funds governed and administered by the County and shall
cause any Net Unrestricted Proceeds (as defined below) to be distributed to those special districts
and funds, as applicable, including but not limited to the Riverside County ERAF fund(s) and
any Riverside County library fund(s).
3. Parcels to be Conveyed to City for Future Development Consistent with LRPMP.
The LRPMP provides that, pursuant to Health & Safety Code Section 34191.5(c)(2), certain
Parcels formerly owned by the. Redevelopment Agency shall be transferred by the Successor
Agency to the City for future development, which parcels are listed in Exhibit' A" attached
.hereto and incorporated by reference (collectively referred to herein as the "Development
Property").
4. Parcels May Be Conveyed to Public Agencies for Governmental Uses. The
Parties agree that the LRPMP may provide, pursuant to Health & Safety Code Section
34191.5(c)(2), that certain parcels formerly owned by the Redevelopment Agency will be
transferred by the Successor Agency to the City for continued governmental uses. No
compensation will be paid to the City or to the Taxing Entities in connection with the transfers of
these parcels for continued governmental uses, as approved by the DOF in the LRPMP.
5.` Covenant to Distribute Specified Proceeds to Taxing, Entities Upon Sale of
Development Property. The City agrees that, consistent with the LRPMP approved by DOF, the
City shall remit Net Unrestricted Proceeds to the Riverside County Auditor -Controller's Office
("Auditor -Controller") for distribution to the Taxing Entities. "Net Unrestricted Proceeds"
shall mean the proceeds of sale received by the City- for the sale of the Development Property,
less: (i) costs incurred by City for expenses in connection with the management and disposition
of the Development Property, including without limitation, costs , incurred for property
management, maintenance, insurance, marketing, appraisals, brokers' .fees, escrow, closing costs,
survey, title insurance, attorneys' and consultants' fees, and other reasonable costs incurred,
including reasonable compensation for City staff performing functions associated with the
management, maintenance and disposition of the Development Property,, and (ii) any proceeds of
sale that are restricted by virtue of the source of funds (e.g. grant funds.or the proceeds of bonds)
that were used for the original acquisition of the Development Property.
6. Sale Procedures and Proceeds,• Distribution to Taxing Entities. 'Upon the
subsequent conveyance of the Development Property from the City to any private (non-public
agency) third party, the City shall remit to the Auditor -Controller the Net Unrestricted Proceeds
(if any) received by the City from the conveyance of the Development Property within 30 days
after receipt by the City. The Auditor -Controller thereafter shall have the obligation to distribute
to the Taxing Entities in accordance with each Taxing Entity's pro rats- share of the Tax Base
(pursuant to Health and Safety Code Section 34188 or other applicable law) the Net Unrestricted
Proceeds remitted to the Auditor -Controller by the City pursuant to this Agreement. The Parties
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acknowledge and agree that City is obligated to convey the Development Property consistent
with the LRPMP and terms and conditions governing the disposition of the Development
Property by and between the purchaser of the parcels that comprise the Development Property.
The Parties further acknowledge and agree that, due to the encumbrances and restrictions
attached to and running with the Development Property, the value of the Development Property
(or any portion thereof) shall be the amount of money the City receives for the conveyance of the
Development Property (or any portion thereof) at the time of that conveyance to a private (non-
public agency) third party, and such value shall be used to determine the Net Unrestricted
Proceeds to be remitted to the Auditor -Controller pursuant to this Agreement.
7. Reservation of Rights Re: Compensation Agreement. The Successor Agency
interprets Health and Safety Code Sections 34191.3 and 34191.5 to mean that, once a long-range
property management plan has been approved by DOF, it supersedes all other provisions of the
statute relating to the disposition and use of the former redevelopment agency's real property,
and agreements with taxing entities are not required in connection with the disposition of a
successor agency's real property to the sponsoring city for governmental uses or for subsequent
disposition for future development. Nevertheless, pursuant to DOF direction, the City enters into
this Agreement with the Taxing Entities to address the disposition of Development Property
pursuant to the LRPMP. If a court order, legislation, or DOF policy reverses the requirement
issued by the DOF to enter into this Agreement, the Parties acknowledge that the City shall have
no obligation to enter into this Agreement with the Taxing Entities, and in such event, the City
shall be permitted to convey the Development Property even if this Agreement has not been
executed by all Taxing Entities. Notwithstanding the foregoing, the City agrees that it shall
comply with the LRPMP, as approved by DOF, and make a payment of Net Unrestricted
Proceeds (if any) to the Taxing Entities pursuant to this Agreement.
8. Miscellaneous Provisions.
8.1 Notices. Except as otherwise specified in this Agreement, all notices to be sent
pursuant to this Agreement shall be made in writing, and sent to the Parties at their respective
addresses specified on the signature pages to this Agreement or to such other address. as a Party
may designate by written notice delivered to the other Parties in accordance with this Section. In
addition to any other method of delivery agreed upon between respective Parties, all such notices
shall be sent by: (i) personal delivery, in which case notice is effective upon delivery; (ii)
Electronic mail (e-mail) or facsimile, in which case notice shall be deemed delivered on the next
business day after confirmation that the intended recipient received the notice via e-mail or
facsimile; (iii) certified or registered mail, return receipt requested, in which case notice shall be
deemed delivered on receipt if delivery is confirmed by a return receipt; or (iv) nationally
recognized overnight courier, with charges prepaid or charged to the sender's account, in which
case notice is effective on delivery if delivery is confirmed by the delivery service.
8.2 Headings-, Interpretation. The section headings and captions used herein are
solely. for convenience and shall not be used to interpret this Agreement. The Parties agree that
this Agreement shall not be construed as if prepared by one of the Parties, but rather according to
its fair meaning as a whole, as if all Parties had prepared it.
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8.3 Action or Approval.. Whenever action and/or approval by City is required under
this Agreement, the City Manager or his or her designee may act on and/or approve such matter
unless specifically provided otherwise, or unless the City Manager determines in his or her
discretion that such action or approval requires referral to City Council for consideration.
8.4 Entire AgrLeement. This Agreement, including exhibits attached hereto and
incorporated herein by this reference, contains the entire agreement among the. Parties with
respect to the subject matter hereof, and supersedes all prior written or oral agreements,
understandings, representations or statements between the Parties with respect to the subject
matter hereof
8.5 Non -Waiver. No waiver of a breach, failure of any condition, or any right or
remedy contained in or granted by the provisions of this Agreement shall be effective unless it is
in writing and signed by the Party charged with or claimed to have waived any such provision.
8.6 Amendment. This Agreement may be amended or modified, in whole or in part,
only in writing and only if signed by the Party or Parties to be bound by the amendment or
modification. .
8.7 Severability. If any term, provision, or condition of this Agreement is held by a
court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement
shall continue in f0 force and effect unless an essential purpose of this Agreement is defeated
by such invalidity or unenforceability.
8.8 No Third Party Beneficiaries. Except as expressly set forth herein, nothing
contained in this Agreement is intended to or shall be deemed to confer upon any person, other
than the Parties and their respective successors and assigns, any rights or remedies hereunder.
8.9 Parties Not Co -Venturers,• Independent Contractor; No Agency Relationship.
Nothing in this Agreement is intended to or shall establish the Parties as partners, co -venturers,
or principal and agent with one another. The relationship of the Parties shall not be construed as
a joint venture, equity venture, partnership or any other relationship.
8.10 Governing Law; Venue. This Agreement shall be governed by and construed in
accordance with the laws of the State of California without regard to'principles of conflicts of
laws. Any action to enforce or interpret this Agreement shall be filed and heard in the Superior
Court of Riverside County, California.
8.11 Counterparts. This Agreement may be executed in counterparts, each of which
shall be an original and all of which taken together shall constitute one instrument.. The
signature page of any counterpart may be detached therefrom without impairing the legal effect
of the signature(s) thereon provided such signature page is attached to any other counterpart
identical thereto having additional signature pages executed by the other Parties. Any executed
counterpart of this Agreement may be delivered to the other Parties by e-mail attachment or
facsimile and shall be deemed as binding as if an originally signed counterpart was delivered.
SIGNATURES ONFOLLOWING PAGES
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IN WITNESS WHEREOF, the Parties -have executed this Agreement by their authorized
representatives as indicated below. '
CITY OF LA QUINTA, a California Municipal Corporation
Digitally signed by Frank Spevacek
DN:"serial Number=g8x45h14dsg5g957,c=U5,st=California,
f i=La Quinta, o=FrankJ. Spevacek, cn=FrankJ. Spevacek
' Date: 2014.10.31 10:44.03-07'00'
By:
Name:
Title:
Attest:
Digitally signed by City of La Quinta.
DN: serialNumber=6fmhzhdhvQz93cr,
4+4t�,�c=US, st—=California, l=La Quinta,
o=Gty of La Quinta, cn=Cityof La
Quinta.
Date: 2014.11.0308:2138-08'00' '
City Clerk
Approved as to form:
City Attorney
Address for Notices:
To City Hall: City of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
Attention: City Manager
with a copy to: Rutan & Tucker, LLP -
611 Anton Blvd., Suite 1400
Costa Mesa, CA 92626
Attention: William H.' Ihrke, Esq.
SIGNATURES CONTINUED ON FOLLOWING PAGES
698/015610-0120
j 7244869.5 a1020/14 -5- `
COUNTY OF RIVERSIDE, a political subdivision of the Siate of California, and for
county -administered. special districts and funds.
By:
ATTEST:
Nam S KE �
. A RP -I EM, Irk
Title: Chairman of the Board of Supervisors By DEP TY
Attes
Approved as to form:
PdGtj Counsel ,Wlu-re, 4/so/ -
Address for Notices:
County of Riverside
Administrative Center
4080 Lemon Street, 5th Floor
Riverside, California 92501
6981015610-0120
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-6-
REGIONAL PARKS AND OPEN SPACE DISTRICT, a public agency..
By;.
Name: Kevin Jeffries ATTEST
KE I !~ P H-IHOA Clerk
Title: Chairman of the Board of Directors
DEPU
Attest by:
Approved ash f9rm:
Ai
Zis ct Counsel sj, �,,, Loc.•ss��
Address for Notices:
County of Riverside
Administrative Center
4080 Lemon Street, 5th Floor
Riverside, California 92501
698/015610-0120
7244869.5 al l/D3/14 ' 1-
Riverside County Board of Supervisors .
Request to Speak
Submit request to Clerk of Board (right of podium),
Speakers are entitled to three (3) minutes, subject
to Board Rules listed on the reverse side of this form.
SPEAKER'S NAME:
Address:
(only if follow-up mail response requested)
City: Zip:
Phone #•
Date: �A�ghda #
PLEASE STATE YOUR VOSITION BELOW:
Position on `Regular" (non -appealed) Agenda Item:
Support _Oppose Neutral
Note: If you are here for an agenda item that is filed
for "Appeal", please state separately your position on
the appeal. below:
Support Oppose Neutral
I .give my 3 minutes to:
BOARD RULES
Reauests to Address Board on "Agenda" Items•
You may request to be heard on a published agenda item. Requests to be
heard must be submitted to the Clerk of the Board. before the scheduled
meeting time. .
Reauests to Address Board on items that are "NOT" on the
Agenda:
Notwithstanding any other provisions of these rules, member of the public shall
have the right to :address the . Board during the mid -morning "Oral
Communications" segment of the published agenda. Said purpose for address
must pertain to issues which are under the direct jurisdiction of the Board of
Supervisors. YOUR TIME WILL BE LIMITED TO THREE (3) MINUTES.
Power Point Presentations/Printed Material:
Speakers who intend to conduct a formalized Power Point presentation or provide
printed material must notify the Clerk of the Board's Office by 12 noon on the
Monday preceding the Tuesday Board meeting, insuring that the Clerk's Office has
sufficient copies of all%printedmaterials and at least one (1) copy of the Power
Point CD. Copies of printed material given to the Clerk (by Monday noon deadline)
will. be provided to each Supervisor. If you have the need to use the overhead
"Elmo" projector at the Board meeting, please insure your material is clear and
with proper contrast, notifying the Clerk well ahead of the meeting, of. your intent
to use the Elmo.
Individual Speaker Limits:
Individual `-speakers are limited to a maximum of three (3) minutes.
Please step up to the podium when the Chairman calls your name and begin
speaking immediately. Pull the microphone to your mouth so that the Board,
Audience, and audio recording system hear you clearly. .Once you start speaking,
the "green" podium light will light. The "yellow" light will come on when you have
one (1) minute remaining. When you have 30 seconds remaining; the "yellow"
light will begin flash, indicating you must quickly wrap up your comments. Your
time is up when the "red" light flashes. The Chairman adheres to a strict three
(3) minutes per speaker. Note: if you intend to give your time to a
"Group/Organized Presentation', please state so clearly at the very
bottom of the reverse side of this form.
Group/Organized Presentations:
Group/organized presentations with more than one (1) speaker will be limited to
nine (9) minutes at the Chairman's discretion. The organizer of the presentation.
will automatically receive the first three (3) minutes, with the remaining six (6)
minutes, relinquished by other speakers, as requested by them on a completed
"Request to Speak" form, and clearly indicated at the front bottom of the form.
Addressina the Board & Acknowledgement by Chairman:
The Chairman will determine what order the speakers will address the Board, and
will call on all speakers in pairs. The first speaker should. immediately step to the
podium and begin addressing the Board. The second speaker should take up a
position in one of the chamber aisles in order to quickly step up to the podium
after the preceding speaker. This is to afford an efficient and timely Board
meeting, giving all attendees the opportunity to make their case. Speakers are
prohibited from making personal attacks, and/or using coarse, crude, profane or
vulgar language while speaking to the Board members, staff, the general public
and/or meeting participants. Such behavior, at the discretion of the Board
Chairman may result in removal from the Board Chambers by Sheriff Deputies.