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1995 E.G. Williams Development Corp - Third Implementation AgrmtTHE ORIGINAL THIRD IMPLEMENTATION AGREEMENT BY AND BETWEEN THE LA QUINTA REDEVELOPMENT AGENCY "AGENCY" AND E. G. WILLIAMS DEVELOPMENT CORPORATION "DEVELOPER" This Agreement was lost or never fully executed. Attached is the Agreement that was an attachment to the Staff Report dated October 3, 1995, an excerpt of the minutes approving the adoption of Resolution No. RA 95-14 approving the Third Implementation Agreement. THIRD IMPLEMENTATION AGREEMENT by and between the LA QUINTA REDEVELOPMENT AGENCY "AGENCY" and E.G. WILLIAMS DEVELOPMENT CORPORATION "DEVELOPER" 3-31MPLG AGM 000007 This THIRD IMPLEMENTATION AGREEMENT (the "AGREEMENT") is entered into by and between the LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic (the "AGENCY") and E. G. WILLIAMS DEVELOPMENT CORPORATION, a California corporation (the "DEVELOPER"). WHEREAS, the parties originally entered into that certain Disposition and Development Agreement dated July 5, 1994 (the "DDA"); and WHEREAS, the parties amended the DDA on the 20th day of September, 1994, (the "Amended DDA"); and WHEREAS, the parties entered into an initial Implementation Agreement to clarify and revise certain attachments to the Amended DDA to assist in obtaining Fannie Mae approval to enable the sale of low to moderate units; and WHEREAS, the parties entered into a Second Implementation Agreement as certain attachments of the Amended DDA required additional revisions in order to meet both HUD and Fannie Mae approval thereby allowing the for sale low and moderate units to be sold; and WHEREAS, the parties agree that greater flexibility is required in the way the previously authorized Second Trust Deed assistance may be utilized and a minor increase in the purchase price of the units is necessary to properly secure with a Second Trust Deed are the obligations of the home buyer; and WHEREAS, Section 406 of the Amended DDA contemplated that revisions may need to be made to the terms of the Agreement in order to achieve the purpose of providing affordable housing to low and moderate income buyers; and NOW, THEREFORE, the parties hereto agree as follows: Section 1. The Agency hereby authorizes the deletion of the requirement on Page 7 in the definition of "Qualifying Buyer" that the Qualifying Buyers shall contribute the "applicable closing costs" and allow the non -recurring closing costs to be funded out of the originally approved amount of up to approximately Sixty Thousand Dollars ($60,000) available for the Second Trust Deed assistance per unit applicable only to very low and low income home buyers. Section 2. The Agency hereby authorizes an increase in the "Maximum Purchase Price" definition on Page 6 to the following amounts: Modell $107,990 Modell $112,990 Model $116,990 Section 3. This agreement is solely an implementation of the Amended DDA and will allow for the revisions only of those items necessary to effectuate the purpose of providing affordable for sale housing for low to moderate income qualified buyers. 0000n,Q IN WITNESS WHEREOF, the Agency and the Developer have signed this Agreement on the respective dates set forth below. day of , 1995 LA QUINTA REDEVELOPMENT AGENCY ATTEST: SAUNDRA L. JUHOLA, Agency Secretary City of La Quinta, California Approved as to form: DAWN HONEYWELL, Agency Counsel City of La Quinta, California By STANLEY SNIFF, Chairman City of La Quinta, California E.G. WILLIAMS DEVELOPMENT CORPORATION am Its "Developer" 00000Q Tit4t 4 4Q" AGENDA CATEGORY: BUSINESS SESSION: I COUNCIL/RDA MEETING DATE: October 3, 1995 CONSENT CALENDAR: ITEM TITLE: STUDY SESSION: Consideration of a resolution of the Redevelopment Agency PUBLIC HEARING: approving a Third Implementation Agreement by and between the La Quinta Redevelopment Agency and E. G. Williams Development Company Approve the Third Implementation Agreement by and between the La Quinta Redevelopment Agency and E.G. Williams Development Corporation. None. The financial transaction embodied in this Agreement involves the reallocation of monies that were previously disbursed to E.G. Williams Development Company for this project. In June of 1994, the La Quinta Redevelopment Agency approved a Disposition and Development Agreement ("DDA") with E.G. Williams Development Company ("Developer's that provided affordable housing assistance to facilitate the development of 150 dwellings. Since that time, the Developer has proceeded to subdivide the property, install necessary on- and off -site infrastructure improvements, and commence the construction and sale of the single-family homes and the construction and release of the multifamily senior citizen dwellings. Subsequent to approving the DDA, project implementation activities surfaced necessary modifications; these modifications were primarily the result of shifting market conditions that required a reallocation of budgeted resources in order to ensure the sale and/or lease -up of the completed dwellings. The Agreement (Attachment 1) provides for further modifications to the DDA in order to accommodate current market conditions. The proposed modifications are as follows: • A reallocation of up to $60,000 of Agency approved and funded financial assistance to fund nonrecurring closing costs. Monies used for this purpose, estimated to be up to $2,700 per unit, shall be included in the Agency second trust deeds, and be applicable only to eligible very low and low income households. C011.002 000003 The maximum purchase price, as defined in the DDA, shall be increased by $990 for each of the three models as described below: $107,000 $107,990 $112,000 $112,990 $116,000 $116,990 This modification will provide the Developer with additional revenue to fund sale incentives for moderate income homebuyers. The Developer has provided evidence that indicates difficulties in selling moderate income affordable homes (that feature resale deed restrictions) in the current market without the ability to provide buyer incentives. In order to facilitate the timely sale of these units, it is recommended that the modifications, as outlined in the Agreement, be approved. The options available to the Agency are: 1. Approve the modifications as presented; 2. Deny the modifications and provide direction to staff. Development Director CC,H.002 000004 LA QUINTA REDEVELOPMENT AGENCY MINUTES October 3, 1995 Regular meeting of the La Quinta Redevelopment Agency was called to order by Chairman Sniff. PRESENT: Board Members Bangerter, Cathcart, Pena, Perkins, Chairman Sniff ABSENT: None relea coral ►11: MOTION - It was moved by Board Members Cathcart/Bangerter to approve Minutes of September 19, 1995 as submitted. Motion carried unanimously. 1. CONSIDERATION OF RESOLUTION APPROVING A THIRD IMPLEMENTATION AGREEMENT BY AND BETWEEN THE LA QUINTA REDEVELOPMENT AGENCY AND E. G. WILLIAMS DEVELOPMENT COMPANY. Board Member Pena abstained due to a conflict of interest and left the dais. Mr. Herman, Community Development Director, advised that this Third Implementation Agreement with Williams Development would provide for the reallocation of up to $60,000 of Agency approved and funded financial assistance to fund nonrecurring closing costs. The estimated $2,700 per unit to be used for this purpose should be included in the Agency's second trust deeds unless underlying circumstances exist which don't allow the recurring closing costs to be secured. It shall be applied only to eligible very -low and low- income households. He advised that the purchase price of each unit will increase $990. Redevelopment Agency Minutes 2 RESOLUTION NO. 95-14 October 3, 1995 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF LA QUINTA APPROVING A THIRD IMPLEMENTATION AGREEMENT BY AND BETWEEN THE LA QUINTA REDEVELOPMENT AGENCY AND E. G. WILLIAMS DEVELOPMENT CORPORATION. It was moved by Board Members Bangerter/Cathcart to adopt Resolution No. 95-14 as submitted. Motion carried with Board Member Pena ABSENT. 2. CONSIDERATION OF APPROVAL OF DEMAND REGISTER WIRE TRANSFER OF SEPTEMBER 14, 1"5 (WILLIAMS DEVELOPMENT). Board Member Petia abstained due to a conflict of interest and left the dais. MOTION - It was moved by Board Members Cathcart/Bangerter to approve the Demand Register Wire Transfer of September 14, 1995 (Williams Development). Motion carried with Board Member Pena ABSENT. 1. APPROVAL OF DEMAND REGISTER DATED OCTOBER 311995. 2. ACCEPTANCE OF PROJECT 95-01 — SEWER HOOK-UP SUBSIDY PROGRAM. Board Member Pefia abstained due to a conflict of interest and left the dais. MOTION - It was moved by Board Members Bangerter/Cathcart to approve the Consent Calendar as recommended. Motion carried with Board Member Peila ABSENT. 1 SM4,11,41 13 1513 UTFUTWISM ,: I; :►II :1: ; 1 u u ; Y u � The Agency Board recessed to Closed Session. RESOLUTION NO. RA 95-14 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING A THIRD IMPLEMENTATION AGREEMENT BY AND BETWEEN THE LA QUINTA REDEVELOPMENT AGENCY AND E.G. WILLIAMS DEVELOPMENT CORPORATION. THIRD IMPLEMENTATION AGREEMENT E. G. WILLIAMS DEVELOPMENT COMPANY WHEREAS, the La Quinta Redevelopment Agency, a public body, corporate and politic (the "Agency") and E. G. Williams Development Corporation, a California Corporation (the "Developer") entered into a Disposition and Development Agreement dated July 5, 1994 (the "DDA"); and WHEREAS, the parties amended the DDA on the 201" day of September, 1994(the "Amended DDA"); and WHEREAS, the parties entered into an initial Implementation Agreement to clarify and revise certain attachments to the Amended DDA to assist in obtaining Fannie Mae approval to enable the sale of low to moderate units; and WHEREAS, the parties entered into a Second Implementation Agreement on July 5, 1995, to make additional revisions in order to meet Fannie Mae approval; and WHEREAS, Section 406 of the Amended DDA contemplated that revisions may need to be made to achieve the purpose of providing affordable housing to low and moderate income buyers; and WHEREAS, the parties desire to enter into a Third Implementation Agreement (the "Agreement'), attached hereto as Exhibit "A" and incorporated herein by reference; NOW, THEREFORE, the Redevelopment Agency of the City of La Quinta does resolve and finds as follows: SECTION 1. The Agency finds and determines that: (a) the approval of the Agreement will promote the objectives of the Redevelopment Plan and promote the health, safety and welfare of the citizens of the City of La Quinta; and (b) the Agreement is consistent with the orderly development of the improvements to be provided by the Developer pursuant to the Amended DDA. SECTION 2. The Agency approves the Agreement in the form of Exhibit "A" and authorizes and directs the Chairman and the Secretary to execute that Agreement and such other documents as may be determined by Agency Counsel to be necessary or appropriate to effectuate the DDA as amended. PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta Redevelopment Agency held on this 3' day of October, 1995 by the following vote: AYES: Members Bangerter, Cathcart, Perkins, Chairman Sniff NOES: None ABSENT: Member Pena ABSTAIN: None ATTEST: UNDRA L. JUI-IdeA, Secretary Quinta Redevelopment Agency APPROVED AS TO FORM: DAWN C. HONEYWELL°, Attorney La Quinta Redevelopment Agency OA STANLE SNIFF, Ch i an La Quinta Redevelopment Agenc ATTACHMENT # I THIRD IMPLEMENTATION AGREEMENT by and between the LA QUINTA REDEVELOPMENT AGENCY "AGENCY" and E.G. WILLIAMS DEVELOPMENT CORPORATION "DEVELOPER" 3-31MPLG.AGM This THIRD IMPLEMENTATION AGREEMENT (the "AGREEMENT") is entered into by and between the LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic (the "AGENCY") and E. G. WILLIAMS DEVELOPMENT CORPORATION, a California corporation (the "DEVELOPER"). WHEREAS, the parties originally entered into that certain Disposition and Development Agreement dated July 5. 1994 (the "DDA"); and WHEREAS, the parties amended the DDA on the 20th day of September, 1994, (the "Amended DDA"); and WHEREAS, the parties entered into an initial Implementation Agreement to clarify and revise certain attachments to the Amended DDA to assist in obtaining Fannie Mae approval to enable the sale of low to moderate units; and WHEREAS, the parties entered into a Second Implementation Agreement as certain attachments of the Amended DDA required additional revisions in order to meet both HUD and Fannie Mae approval thereby allowing the for sale low and moderate units to be sold; and WHEREAS, the parties agree that greater flexibility is required in the way the previously authorized Second Trust Deed assistance may be utilized and a minor increase in the purchase price of the units is necessary to properly secure with a Second Trust Deed are the obligations of the home buyer; and WHEREAS, Section 406 of the Amended DDA contemplated that revisions may need to be made to the terms of the Agreement in order to achieve the purpose of providing affordable housing to low and moderate income buyers; and NOW, THEREFORE, the parties hereto agree as follows: Section 1. The Agency hereby authorizes the deletion of the requirement on Page 7 in the definition of "Qualifying Buyer" that the Qualifying Buyers shall contribute the "applicable closing costs" and allow the non -recurring closing costs to be funded out of the originally approved amount of up to approximately Sixty Thousand Dollars ($60,000) available for the Second Trust Deed assistance per unit applicable only to very low and low income home buyers. Section 2. The Agency hereby authorizes an increase in the "Maximum Purchase Price" definition on Page 6 to the following amounts: Modell - $107,990 Modell $112,990 Model $116,990 Section 3. This agreement is solely an implementation of the Amended DDA and will allow for the revisions only of those items necessary to effectuate the purpose of providing affordable for sale housing for low to moderate income qualified buyers. IN WITNESS WHEREOF, the Agency and the Developer have signed this Agreement on the respective dates set forth below. day of — , 1995 LA QUINTA REDEVELOPMENT AGENCI By STANLEY SNIFF, Chairman City of La Quinta, California ATTEST: SAUNDRA L. NHOLA, Agency Secretary City of La Quinta, California Approved as to form: DAWN HONEYWELL, Agency Counsel City of La Quinta, California E.G. WILLIAMS DEVELOPMENT CORPORATION 10 "Developer"