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1996 E.G. Williams Development Corp - Fifth Implementation AgrmtFIFTH IMPLEMENTATION AGREEMENT by and between the LA QUINTA REDEVELOPMENT AGENCY "AGENCY" W E.G. WILLIAMS DEVELOPMENT CORPORATION "DEVELOPER" This FIFTH 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 entered into that certain First Restated and Amended Disposition and Development Agreement dated September 30, 1994 (the "Restated and Amended DDA"); and WHEREAS, the parties entered into a First Amendment to the Restated and Amended DDA on March 5, 1996 to provide for a portion of the units to be sold at market rate without affordability restrictions thereby allowing a greater number of low income units to be produced; and WHEREAS, the parties entered into an initial Implementation Agreement dated June 19, 1995, to clarify and revise certain attachments to the Restated and 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 dated July 10, 1995 as certain attachments of the Restated and 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 entered into a Third Implementation Agreement on October 19, 1995 to (i) provide greater flexibility with respect to second trust deed assistance by allowing closing costs to be funded out of the originally approved amount and (ii) increase the "Maximum Purchase Price"; and WHEREAS, the parties entered into a Fourth Implementation Agreement on July 10, 1996 in order to reimburse Developer for certain costs associated with the construction of additional improvements that were not included in the Restated and Amended DDA and to fulfill the Agency's obligations pursuant to the Agreement and Escrow Instructions for Sale and Acquisition of Unimproved Real Property between the Agency and Desert Sands Unified School District dated October 18, 1994; and WHEREAS, general economic conditions and circumstances of Developer require immediate revisions in the implementation of the First Amendment to the Restated and Amended DDA in order to encourage the sale of the constructed units in a timely manner; and NOW, THEREFORE, the Agency and the Developer do hereby agree as follows: 1. Pursuant to Section 1 of the First Amendment to the Restated and Amended DDA, which amends Section 101 of the Restated and Amended DDA, the Agency shall forgive the repayment of the Six Thousand Five Hundred Dollar ($6,500) per market rate unit as set forth therein. 2. Pursuant to Section 2 of the First Amendment to the Restated and Amended DDA, which amends Section 102 of the Restated and Amended DDA, the "Maximum Purchase Price" shall be reduced to the following: "Maximum Purchase Price" means: (i) as to Model 1, One Hundred Seven Thousand Nine Hundred Ninety Dollars ($107,990); (ii) as to Model 2, One Hundred Twelve Thousand Nine Hundred Ninety Dollars ($112,990); and (iii) as to Model 3, One Hundred Sixteen Thousand Nine Hundred Ninety Dollars ($116,990). Each of the foregoing Model 1, Model 2, and Model 3 shall be of a quality and size as specified by the terms of the Specific Plan." 4. Pursuant to Section 5 of the First Amendment to the Restated and Amended DDA, which amends Section 404 of the Restated and Amended DDA, the number of Lower Income Ownership Units shall be decreased from ten (10) units to six (6) units and the number of Low Income Ownership Units shall increase from (10) to fourteen (14) units to fourteen (14) to eighteen (18) units. 5. Pursuant to Section 1 of the Third Implementation Agreement, with respect to Restated and Amended DDA, the non -recurring closing costs shall be an amount up to $5,000 per unit 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 to very low and low income home buyers. 6. This agreement is solely an implementation of the Restated and Amended DDA, the First Amendment to the Restated and Amended DDA and the Third Implementation Agreement and only makes necessary revisions to effectuate the purpose of providing affordable for sale housing for low to moderate income qualified buyers as well as those revisions necessary to effectuate the purpose of developing the project in a manner that allows federal tax credit enhancement. IN WITNESS WHEREOF, the Agency and the Developer have signed this Agreement on the respective dates set forth below. 1996 LA QUINTA REDEVELOPMENT AGENCY STANLEY SNIFF, airman �. 2 ATTEST: SAUNDRA L. JUH LA, Secretary La Quinta Redevelopment Agency Approved as to form: 41 DAWN HONEYWELL, Agency Counsel La Quinta Redevelopment Agency E.G. WILLIAMS DEVELOPMENT CORPORATION "Developer" By Its j1y29.1