2021-05-21 LQ Hospitality Group - Request to Release BondsBRENT D. ELLSWORTH, P.C.
ATTORNEY
4445 EAST HOLMES AVENUE, SUITE 106 PHONE: 480-654-3668 FAX: 480-654-3669
MESA, ARIZONA 85206-3398 E-MAIL: brent@brentellsworthlaw.com
May 21, 2021
Email: bilhrke@rutan.com
William H. Ihrke, Esq.
City Attorney, La Quinta, CA
Rutan & Tucker, LLP
18575 Jamboree Road, 91" Floor
Irvine, CA 92612
Re: City of La Quinta
Marriott Residence Inn
Dear Bill,
As you know from past correspondence, I represent LQ Hospitality Group, LLC ("LQ"),
the developer, owner and operator of the Marriott Residence Inn located in La Quinta, California.
I write to you in your capacity as City Attorney for the City of La Quinta (the "City") to seek your
assistance in obtaining a release from the City of the bond requirement set forth in the
Subdivision Improvement Agreement dated May 28, 2019, between the City and LQ (the
"Subdivision Agreement"), a copy of which is attached.
There have been issues regarding the participation of adjoining property owners in the
cost of improvements for access to the LQ property. The owner of the Komar Desert Center
property, adjacent to the LQ property on the East side, has declined to participate in such
improvements. The City owns the vacant property adjacent to the LQ property on the West side,
which is described as Lot 2 on the recorded Parcel Map No. 37683. I am enclosing a copy of an
email chain between City staff and LQ staff, confirming the City's agreement regarding
responsibility for construction of the connecting access to the LQ property from the Komar
property.
The May 7, 2020, email from Carlos Flores states in item (1): "Sunridge [i.e., LQJ
designs and constructs their portion of the access, the bond for this work is allowed to be
released when done satisfactorily, and City places additional conditions on other parcel [the
City's Lot 21 on this access needing to be constructed by future developer." LQ understood the
City intended to record a deed restriction against Lot 2 that would require the future developer of
Lot 2 to complete the improvements required to provide access to the LQ property from the
Komar property.
William H. Ihrke
May 21, 2021
Page 2
In reliance on this representation by the City, LQ, in good faith and with full knowledge,
consent and approval of the City, LQ revised its precise grading plan, received approval of the
revised plan from the City, and completed the improvements according to the revised plan.
The project passed final inspection and a Certificate of Occupancy was issued by the City
dated December 30, 2020 (copy enclosed). The Certificate of Occupancy certifies the project
was "in compliance with the provisions of the Building Code and the various ordinances of the
City regulating building construction and/or use."
Also enclosed is an email chain between Amy Yu to LQ staff, in which LQ requests
approval from the City for release of the bonds. This request from LQ followed delivery by LQ
to Ms. Yu of all items she requested to satisfy conditions of the bond release. On December 9,
2020, Ms. Yu wrote: "I plan on scheduling the acceptance of Residence Inn's improvements
and release of the bonds on the January 19, 2021, City Council meeting... I can release the
performance bond the next day on January 20, 2021 and then the labor & materials bond 90
days after. The City Attorney is working on the deed restriction. I can let you know once it is
recorded." On December 23, 2020, Ms. Yu wrote: "I still have you on the Jan 19, 2021
Council agenda to release your bond."
In spite of several requests by LQ to release the performance and labor & materials bonds,
the City has refused to release those bonds, forcing LQ to renew those bonds at considerable
unnecessary expense to LQ.
LQ has fulfilled its obligations under the Subdivision Agreement and revised precise
grading plan. Demand is made that the City release the bonds, as it is obligated to do under the
Subdivision Agreement and subsequent related commitments made by the City.
If my understanding of the facts as stated above is incorrect or if you feel there is a
legitimate reason the City has refused to release the bonds in question, please let me know.
Sincerely,
Brent D. Ellsworth
BDE/ov
Enclosures
1
Monika Radeva
From:Monika Radeva
Sent:Saturday, May 22, 2021 11:39 AM
To:Ihrke, Bill; Gilbert Villalpando; Amy Yu
Cc:Bryan McKinney; Carlos Flores; Monika Radeva
Subject:RE: Residence Inn by Marriott - La Quinta, CA
Attachments:LQ - ltr to B Ihrke (5-21-2021).pdf; SIGNED SIA - LQ Hospitality Group PM 37683.pdf; RE: Komar
Access Drawing to be implemented by adjacent development; RE: Bond Release Documents;
BCOM2018-0033 - CERTIFICATE OF OCCUPANCY.pdf; 2021-05-04 CC Minutes.pdf
Hi Bill, there was no reso – this was approved as a Consent Calendar Item No. 7, see page 5 of
the attached are the minutes reflecting the minute motion.
Thank you.
Monika Radeva, CMC | City Clerk
City of La Quinta
78495 Calle Tampico, La Quinta, CA 92253
Tel: (760) 777-7035
MRadeva@laquintaca.gov
From: Ihrke, Bill <bihrke@rutan.com>
Sent: Saturday, May 22, 2021 8:42 AM
To: Gilbert Villalpando <Gvillalpando@laquintaca.gov>; Amy Yu <Ayu@laquintaca.gov>; Monika Radeva
<mradeva@laquintaca.gov>
Cc: Bryan McKinney <Bmckinney@laquintaca.gov>; Carlos Flores <cflores@laquintaca.gov>; Ihrke, Bill
<bihrke@rutan.com>
Subject: Fwd: Residence Inn by Marriott ‐ La Quinta, CA
** EXTERNAL: This message originated outside of the City of La Quinta. Please use proper judgement and caution when opening
attachments, clicking links or responding to requests for information. **
Good Morning Gil & Amy ‐ I will draft and send a reply letter on my letterhead.
2
Monika‐ when you have a chance, can you forward the signed Resolution from 2 or 3 City Council meetings ago,
conditionally allowing for the release of the bonds for the Residence Inn? It eas the item when I specifically read‐in the
condition of recording a covenant, if that helps.
Also Monika ‐ the letter and attachments from Mr. Ellsworth should be included in the file for this matter. They are
public records.
Thanks all.
Bill
William H. Ihrke
18575 Jamboree Road, 9thFloor | Irvine, CA 92612
O. (714) 641‐5100 | D. (714) 338‐1863
bihrke@rutan.com |www.rutan.com
WE HAVE MOVED! Please update your records with our new address.
Begin forwarded message:
From: Brent Ellsworth <brent@brentellsworthlaw.com>
Date: May 21, 2021 at 4:54:23 PM PDT
To: "Ihrke, Bill" <bihrke@rutan.com>
Cc: Paul Welker <paul@sunridgeproperties.com>, Welker <Brian@sunridgeproperties.com>, Bradon
Welker <bradon@sunridgeproperties.com>, Brett Welker <brett@sunridgeproperties.com>, Gilbert
Villalpando <Gvillalpando@la‐quinta.org>, Carlos Flores <cflores@laquintaca.gov>,
bmckinney@laquintaca.gov, ayu@laquintaca.gov
Subject: Residence Inn by Marriott ‐ La Quinta, CA
Bill –
Please see attached letter.
Thank you.
‐Brent Ellsworth
Brent D Ellsworth, PC
4445 E Holmes Ave, Ste 106
Mesa, AZ 85206‐3398
tel. 480.654.3668
fax 480.654.3669
brent@brentellsworthlaw.com<mailto:brent.ellsworth@azbar.org>
POST IN A CONSPICUOUS PLACE
Certificate of Occupancy
Design and Development
Department
This Certificate is issued pursuant to the requirements of Chapter 1 Section 111
of the California Building Code, certifying that, at the time of issuance, this
structure was in compliance with the provisions of the Building Code and the
various ordinances of the City regulating building construction and/or use.
BUILDING ADDRESS: 79675 HIGHWAY 111
Use classification: RESIDENTIAL - HOTEL Building Permit No.: BCOM2018-0033
Occupancy Group: R-1/B/A-2/A-3 Type of Construction: V-A Land Use Zone: CR
Code Edition: 2016 Sprinkler Installed: YES Occupant Load: 706
By: JAKE FUSON Owner of Building: SUNRIDGE HOTEL GROUP c/o Paul Welker
Date: 12/30/2020 Address: 7255 E Hampton Ave. Suite 122
Building Official: AJ ORTEGA City, ST, ZIP: Mesa, AZ 85209
NO.
89
City of La Quinta
CITY COUNCIL MEETING: May 4, 2021
STAFF REPORT
AGENDA TITLE: ACCEPT OFF-SITE AND ON-SITE IMPROVEMENTS
ASSOCIATED WITH PARCEL MAP NO. 37683, RESIDENCE INN BY MARRIOTT,
LOCATED SOUTH OF HIGHWAY 111 AND NORTH OF VISTA CORALINA LANE
RECOMMENDATION
Accept the off-site and on-site improvements associated with Parcel Map No.
37683, Residence Inn by Marriott; authorize staff to release performance
security upon recordation of an instrument approved by the City Manager to
memorialize the reciprocal access to the Komar Desert Center; and direct
staff, after recordation of the instrument to memorialize reciprocal access to
the Komar Desert Center, to release the labor and materials security 90 days
after City Council acceptance of the improvements.
EXECUTIVE SUMMARY
Residence Inn by Marriott hotel is located south of Highway 111 and
north of Vista Coralina Lane (Attachment 1).
LQ Hospitality Group, LLC (Developer) has requested release of the
performance, labor, and materials securities.
Parcel Map No. 37683 (PM 37683) was subdivided into two parcels. The
Developer has completed the required off-site and on-site
improvements for Parcel 1 of PM 37683. The portion of the reciprocal
access on the Komar Desert Center property will be completed by the
future developer of Parcel 2 of PM 37683. Thus, staff recommends
acceptance, and release of the performance, labor, and materials
securities.
FISCAL IMPACT – None.
BACKGROUND/ANALYSIS
The Developer has completed the off-site and on-site improvements required
by Parcel 1 of PM 37683. The completed improvements include grading,
pavement, curb and gutter, curb ramps, signing and striping, storm drains,
catch basins, water and sewer improvements, landscaping, and survey
monumentation. Staff inspected the completed improvements and verified
they meet City-approved plans and standards.
CONSENT CALENDAR ITEM NO. 7
MOTION WAS REVISED BY STAFF
DURING CONFIRMATION OF AGENDA
90
PM 37683 was subdivided into two parcels. One parcel is occupied by the
Residence Inn by Marriott hotel and the other parcel is retained by the City
for future development. The potential future reciprocal access to the adjacent
Komar Desert Center is identified in the Komar Specific Plan and the traffic
impact analysis completed for the Dune Palms Specific Plan. The City Engineer
has determined that the reciprocal access between the hotel and Komar
Desert Center can be postponed as long as the City-owned parcel remains
vacant and unimproved. However, a recorded instrument approved by the City
is needed to memorialize the requirement for the future developer of the City-
owned parcel to obtain approval from Komar Desert Center to complete the
reciprocal access on their side prior to development of the City-owned parcel.
ALTERNATIVES
Accepting improvements is a ministerial action necessary for the release of
the improvement securities. Since the improvements have been inspected
and meet City standards, staff does not recommend an alternative action.
Prepared by: Amy Yu, Associate Engineer
Approved by: Bryan McKinney, P.E., Public Works Director/City Engineer
Attachment: 1. Vicinity Map
V I C I N I T Y M A P
NOT TO SCALE
ATTACHMENT 1
PARCEL MAP NO. 37683
AVE 48
91
CITY COUNCIL MINUTES Page 1 of 9 MAY 4, 2021
CITY COUNCIL
MINUTES
TUESDAY, MAY 4, 2021
CALL TO ORDER
A regular meeting of the La Quinta City Council was called to order at 3:00
p.m. by Mayor Evans.
This meeting provided teleconferencing accessibility pursuant to Executive
Orders N-25-20, N-29-20, N-33-20, N-35-20, and N-60-20 executed by the
Governor of California, in response to the state of emergency relating to novel
coronavirus disease 2019 (COVID-19) and enabling teleconferencing
accommodations by suspending or waiving specified provisions in the Ralph M.
Brown Act (Government Code § 54950 et seq.).
PRESENT: Councilmembers Fitzpatrick, Peña, Radi, Sanchez, Mayor Evans
ABSENT: None
STAFF PRESENT: City Manager McMillen, City Attorney Ihrke, City Clerk
Radeva, Deputy City Clerk Romane, Assistant to the City Manager Villalpando,
Community Resources Director Escobedo, Interim Finance Director Martinez,
Financial Services Analyst Hallick, Public Works Director/City Engineer
McKinney, and Design and Development Director Castro.
PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – None.
CONFIRMATION OF AGENDA
City Attorney Ihrke requested to pull Consent Calendar Item No. 7 for a
separate vote as staff would like to amend and include additional language in
the recommended action provided in the staff report on page 89 of the Agenda
Packet to ensure the labor and materials security is released upon recordation
of the instrument memorializing the reciprocal access to the Komar Desert
Center.
Councilmember Peña requested to pull Consent Calendar Item No. 14 for a
separate vote; and said he will recuse himself and abstain from discussion and
vote on this item due to a potential conflict of interest stemming from the
proximity of real property to this project.
Council concurred.
CITY COUNCIL MINUTES Page 4 of 9 MAY 4, 2021
5. ADOPT ORDINANCE NO. 592 AMENDING SECTIONS 14.16.040
AND 14.16.110 OF THE LA QUINTA MUNICIPAL CODE
RESPECTIVELY RELATED TO UNAUTHORIZED ENCROACHMENT
IN THE PUBLIC RIGHT-OF- WAY AND LIABILITY FOR DAMAGES
6. ADOPT ORDINANCE NO. 593 AMENDING THE LA QUINTA
MUNICIPAL CODE BY REMOVING REFERENCE TO A “DARK SKY
ORDINANCE” FROM SECTION 5.80.060
7. Pulled by City Attorney Ihrke for a separate vote >>> ACCEPT OFF-
SITE AND ON-SITE IMPROVEMENTS ASSOCIATED WITH PARCEL
MAP NO. 37683, RESIDENCE INN BY MARRIOTT, LOCATED
SOUTH OF HIGHWAY 111 AND NORTH OF VISTA CORALINA LANE
8. ADOPT RESOLUTION TO APPROVE TIME EXTENSION TO
COMPLETE ONSITE IMPROVEMENTS FOR PALO VERDE II
RESIDENTIAL DEVELOPMENT (TRACT MAP NO. 33336) LOCATED
ON THE NORTH SIDE OF AVENUE 58 AND WEST OF MADISON
STREET [RESOLUTION NO. 2021-014]
9. ADOPT RESOLUTION TO APPROVE FISCAL YEAR 2021/22
INVESTMENT POLICY [RESOLUTION NO. 2021-015]
10. ACCEPT CITYWIDE MISCELLANEOUS AMERICANS WITH
DISABILITIES ACT IMPROVEMENTS PROJECT NO. 2020-02
(COMMUNITY DEVELOPMENT BLOCK GRANT PROJECT NO.
4.LQ.41.20) LOCATED ON THE EAST SIDE OF JEFFERSON STREET
SOUTH OF AVENUE 50 AND SOUTHWEST CORNER OF
WASHINGTON STREET AND AVENUE 47
11. APPROVE AGREEMENT FOR CONTRACT SERVICES WITH FISHER
INTEGRATED, INC FOR VIDEO STREAMING AND WEBSITE
HOSTING SERVICES RELATED TO PUBLIC MEETINGS
12. APPROVE AMENDED UTILITY AGREEMENT WITH THE CITY OF LA
QUINTA AND THE IMPERIAL IRRIGATION DISTRICT FOR THE
DUNE PALMS ROAD BRIDGE PROJECT 2011-05/111205 FOR
RELOCATION AND THE UNDERGROUNDING OF EXISTING
ELECTRICAL FACILITIES
13. APPROVE THIRD AMENDMENT TO MEMORANDUM OF
UNDERSTANDING WITH THE COUNTY OF RIVERSIDE FOR A ONE-
YEAR EXTENSION FOR LIBRARY, MUSEUM AND MAKERSPACE
MANAGEMENT
CITY COUNCIL MINUTES Page 5 of 9 MAY 4, 2021
14. Pulled by Councilmember Peña for a separate vote >>> APPROVE
CHANGE ORDER NO. 1 TO CONTRACT WITH CONVERGINT
TECHNOLOGIES FOR THE CITYWIDE PUBLIC SAFETY CAMERA
SYSTEM (PSCS) PROJECT (PROJECT NO. 2020-03) FOR
INSTALLATION OF 12 STRAND FIBER, NEW CIRCUITS, CABLE
AND RADIO
15. APPROVE ADDENDUM NO. 2 TO THIRD AMENDMENT AND
RESTATEMENT OF JOINT POWERS AGREEMENT OF THE
COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS
ADMITTING THE TWENTYNINE PALMS BAND OF MISSION
INDIANS TRIBE AS A MEMBER
16. APPROVE DEMAND REGISTERS DATED APRIL 16, AND 23, 2021
MOTION – A motion was made and seconded by Councilmembers
Peña/Fitzpatrick to approve Consent Calendar Item Nos. 1 – 6, 8 – 13, 15,
and 16 as recommended, with Item Nos. 8 and 9 adopting Resolution Nos.
2021-014 and 2021-015, and Item Nos. 5 and 6 adopting Ordinance Nos. 592
and 593, respectively. Motion passed unanimously.
CONSENT CALENDAR ITEM NO. 7
The recommended action for this item was amended by City Attorney Ihrke at
Confirmation of Agenda by including additional language to ensure the labor
and materials security is released upon recordation of the instrument
memorializing the reciprocal access to the Komar Desert Center.
MOTION – A motion was made and seconded by Councilmembers Peña/Radi
to approve Consent Calendar Item No. 7 accepting the off-site and on-site
improvements associated with Parcel Map No. 37683, Residence Inn Marriott;
authorize staff to release performance security upon recordation of an
instrument approved by the City Manager to memorialize the reciprocal access
to the Komar Desert Center; and direct staff to release, after recordation of
the instrument to memorialize reciprocal access to the Komar Desert Center,
the labor and materials security 90 days after City Council acceptance of the
improvements. Motion passed unanimously.
CONSENT CALENDAR ITEM NO. 14
COUNCILMEMBER PEÑA SAID HE WILL ABSTAIN FROM DISCUSSION
AND VOTE ON CONSENT CALENDAR ITEM NO. 14 DUE TO A POTENTIAL
CONFLICT OF INTEREST STEMMING FROM THE PROXIMITY OF HIS REAL
PROPERTY TO THE PROJECT LOCATIONS