1993 E.G. Williams Development Corp - MOU for Affordable Housing ProjectMEMORANDUM OF UNDERSTANDING
FOR THE
AFFORDABLE HOUSING PROJECT
BETWEEN
WILLIAMS DEVELOPMENT CORPORATION
AND THE
LA QUINTA REDEVELOPMENT AGENCY
December 7, 1993
The La Quinta Redevelopment Agency ("Agency") and Williams Development Corporation
("Developer/Operator") enter into this Memorandum of Understanding ("MOU") pertaining to
the Affordable Housing Project on the terms and provisions set forth below.
The Agency and the Developer/Operator hereby agree as follows:
Purpose of MOU. This MOU is a nonbinding document that outlines the business points of a
proposed property transfer and development financing transaction between the Agency and
the Developer/Operator for the Affordable Housing Project. The Agency will embody these
and other relevant business points in a draft Disposition and Development Agreement
(" DDA"); the DDA will be a contract between the Agency and the Developer/Operator that
establishes the responsibilities, financing obligations, and scheduled performance for all parties
to this transaction for the development and operation of the Affordable Housing Project.
2. The Affordable Housing Project. The Affordable Housing Project ("Project") involves the
proposed transfer, by the Agency, of approximately 24 acres of property for the development
of 152 single- and multifamily residential units by the Developer/Operator. These units will be
affordable to very low, low, and moderate income households. Further, the
Developer/Operator will be required to construct a 5-acre park/floodwater detention basin.
The specific components of this Project are as follows:
Single -Family Product: 62 single-family detached homes on 5,000 square foot lots.
Floor Plans/Sales Price:
15 units - 1,260 SF/three bedroom; price - $106,900
25 units - 1,358 SF/three bedroom; price - $111,900
22 units - 1,510 SF/four bedroom; price - $115,900
All units will be marketed and sold to very low, low, and moderate income households
pursuant to the following unit mix:
Very low income units 10 (16%)
Low income units 10 (16%)
Moderate income units 42 (68%)
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Affordability covenants will be required so that the very low, low, and moderate income units
will be sold at resale prices affordable to the designated very low, low, and moderate income
households.
Senior Housing Product: 90 units on 8 acres.
Floor Plans:
80 one -bedroom units at 600 SF each
10 two -bedroom units at 800 SF each
The units will be rented to very low and low income seniors; the first -year rent will be as
follows:
$195-$350
$295-$450
$395-$450
Affordability covenants will be recorded against all 90 units that will require that the units will
be affordable to very low and low income senior households.
Park/Floodwater Detention Basin
The Project will feature a 5-acre passive park that will also serve as a floodwater detention
basin for site runoff. A portion of the 5-acre site will be excavated to allow for the collection
of storm water runoff; the entire site will be improved with lawn, and playground equipment
will be installed on the park site.
Project Site. The Project Site is located in La Quinta Redevelopment Project No. 1 and is
part of a larger 36.15-acre property the Agency is currently acquiring; approximately 24 acres
of this property will be used for this Project, with the remaining 12 acres proposed to be sold
to Desert Sands Unified School District ("School District"). The School District proposes to
construct an elementary school at this location. The Project Site is generally located north of
Calle Tampico in the Village of La Quinta, northeast of Desert Club Drive and Calle Tampico.
4. Developer/Operator Project Responsibilities. The Developer/Operator shall be responsible for
the following activities:
a. The Developer/Operator will initiate and fund the costs associated with the preparation of.
a Project Site boundary survey required for the preparation of the tentative and final tract
maps; soils testing; a Phase II hazardous materials contamination analysis for soils and
groundwater; tentative and final subdivision tract maps; tentative and final infrastructure
improvement plans; tentative and final grading plans; a specific plan that encompasses the
single-family residential, the multifamily residential, and the 5-acre park detention basin;
and all required environmental review activities.
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b. The Developer/Operator shall be responsible for undertaking necessary rough and final
grading for the construction of the park/detention basin, and the single- and multifamily
developments. Further, if contracted for by the School District, the Developer/Operator
may also be responsible for the rough and final grading required to construct the
elementary school and accessory improvements.
c. The Developer/Operator shall be responsible for the funding and construction of all on -
and oft -site improvements required for the development of the residential uses and the
park/detention basin. Further, if contracted for by the School District, the
Developer/Operator may also be responsible for the construction of on- and off -site
improvements required for the elementary school.
d. The Developer/Operator shall be responsible for the design, financing, construction, and
sale of the 62 single-family units. Further, the Developer/Operator warrants that the units
will be sold to very low, low, and moderate income households in the numbers indicated in
item 2 above. Further, the Developer/Operator warrants that said units will feature long-
term affordability covenants that will maintain each unit's affordability to its designated
household.
e. The Developer/Operator shall be responsible for the design, financing, and construction of
the 90-unit senior citizen multifamily complex. Further, the Developer/Operator shall
subsequently own and operate said complex, and warrant that the unit rent rates shall be
affordable to very low and low income households as designated in item 2 above. Said
units shall feature long-term affordability covenants that will maintain each unit's
affordability to its designated household.
f The Developer/Operator shall be responsible, on initial lease -up and annually thereafter,
for submitting to the Agency tenant income computation and certification data for all
tenants in the senior citizen multifamily complex, and certify that each tenant meets the
eligibility requirements for very low and low income households.
5. Agency Project Responsibilities. Agency responsibilities will include the following:
a. The Agency will pursue the acquisition of the approximately 36.15-acre Project Site.
b. The Agency will provide up to $3,864,373 in financial assistance to the
Developer/Operator to secure single and multifamily units that will be affordable to very
low, low, and moderate income households. This assistance may be provided in one or
more of the following forms:
• selling the 11-acre site for the single-family housing and the 8-acre site for the
multifamily senior citizen housing to the Developer/Operator for $1.00;
funding part or all of the construction of Project required on- and off -site infrastructure
improvements, including the required park and storm detention basin; and
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• funding silent second trust deed mortgages (applicable to the single-family component)
in amounts ranging from approximately $8,076 for each assisted moderate income unit,
to $37,700 to $71,800 for each assisted very low and low income unit.
6. Actions Subsequent to MOU Execution. In order to implement the provisions of this MOU,
the Agency and Developer/Operator hereby agree to undertake the following actions to
implement the provisions of this MOU. Both parties will commit to make every effort to
initiate and make every attempt to complete said actions on or before February 15, 1994.
• Prepare, process, and record tentative and final parcel maps which shall subdivide the
Project Site into 4 parcels.
• Prepare and process the necessary environmental documents upon receipt of application
and processing fee from Developer/Operator.
• Prepare and adopt a DDA.
• Initiate the preparation of a specific plan that encompasses the entire Project Site.
APPROVED AND ACCEPTED BY:
La Quinta Redevelopment Agency
de l &Ixi,
Robert L. Hunt, Executive Director
Date:
Williams Development Corporation
E.G. Williartis, CE /
Date:
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MEMORANDUM OF UNDERSTANDING
FOR THE
AFFORDABLE HOUSING PROJECT
BETWEEN
WILLIAMS DEVELOPMENT CORPORATION
AND THE
LA QUINTA REDEVELOPMENT AGENCY
December 7, 1993
The La Quinta Redevelopment Agency ("Agency") and Williams Development Corporation
("Developer/Operator") enter into this Memorandum of Understanding ("MOU") pertaining to
the Affordable Housing Project on the terms and provisions set forth below.
The Agency and the Developer/Operator hereby agree as follows:
Purpose of MOU. This MOU is a nonbinding document that outlines the business points of a
proposed property transfer and development financing transaction between the Agency and
the Developer/Operator for the Affordable Housing Project. The Agency will embody these
and other relevant business points in a draft Disposition and Development Agreement
("DDA"); the DDA will be a contract between the Agency and the Developer/Operator that
establishes the responsibilities, financing obligations, and scheduled performance for all parties
to this transaction for the development and operation of the Affordable Housing Project.
2. The Affordable Housing Project. The Affordable Housing Project ('Project") involves the
proposed transfer, by the Agency, of approximately 24 acres of property for the development
of 152 single- and multifamily residential units by the Developer/Operator. These units will be
affordable to very low, low, and moderate income households. Further, the
Developer/Operator will be required to construct a 5-acre park/floodwater detention basin.
The specific components of this Project are as follows:
Single -Family Product: 62 single-family detached homes on 5,000 square foot lots.
Floor Plans/Sales Price:
15 units - 1,260 SF/three bedroom; price - $106,900
25 units - 1,358 SF/three bedroom; price - $111,900
22 units - 1,510 SF/four bedroom; price - $115,900
All units will be marketed and sold to very low, low, and moderate income households
pursuant to the following unit mix:
Very low income units 10 (16%)
Low income units 10 (16%)
Moderate income units 42 (68%)
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Affordability covenants will be required so that the very low, low, and moderate income units
will be sold at resale prices affordable to the designated very low, low, and moderate income
households.
Senior Housing Product: 90 units on 8 acres.
Floor Plans:
80 one -bedroom units at 600 SF each
10 two -bedroom units at 800 SF each
The units will be rented to very low and low income seniors; the first -year rent will be as
follows:
$195-$350
$295-$450
$395-$450
Affordability covenants will be recorded against all 90 units that will require that the units will
be affordable to very low and low income senior households.
Park/Floodwater Detention Basin
The Project will feature a 5-acre passive park that will also serve as a floodwater detention
basin for site runoff. A portion of the 5-acre site will be excavated to allow for the collection
of storm water runoff, the entire site will be improved with lawn, and playground equipment
will be installed on the park site.
3. Project Site. The Project Site is located in La Quinta Redevelopment Project No. 1 and is
part of a larger 36.15-acre property the Agency is currently acquiring; approximately 24 acres
of this property will be used for this Project, with the remaining 12 acres proposed to be sold
to Desert Sands Unified School District ("School District"). The School District proposes to
construct an elementary school at this location. The Project Site is generally located north of
Calle Tampico in the Village of La Quinta, northeast of Desert Club Drive and Calle Tampico.
4. Developer/Operator Project Responsibilities. The Developer/Operator shall be responsible for
the following activities:
a. The Developer/Operator will initiate and fund the costs associated with the preparation of
a Project Site boundary survey required for the preparation of the tentative and final tract
maps; soils testing; a Phase II hazardous materials contamination analysis for soils and
groundwater; tentative and final subdivision tract maps; tentative and final infrastructure
improvement plans; tentative and final grading plans; a specific plan that encompasses the
single-family residential, the multifamily residential, and the 5-acre park detention basin;
and all required environmental review activities.
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b. The Developer/Operator shall be responsible for undertaking necessary rough and final
grading for the construction of the park/detention basin, and the single- and multifamily
developments. Further, if contracted for by the School District, the Developer/Operator
may also be responsible for the rough and final grading required to construct the
elementary school and accessory improvements.
c. The Developer/Operator shall be responsible for the funding and construction of all on -
and oft -site improvements required for the development of the residential uses and the
park/detention basin. Further, if contracted for by the School District, the
Developer/Operator may also be responsible for the construction of on- and off -site
improvements required for the elementary school.
d. The Developer/Operator shall be responsible for the design, financing, construction, and
sale of the 62 single-family units. Further, the Developer/Operator warrants that the units
will be sold to very low, low, and moderate income households in the numbers indicated in
item 2 above. Further, the Developer/Operator warrants that said units will feature long-
term affordability covenants that will maintain each unit's affordability to its designated
household.
e. The Developer/Operator shall be responsible for the design, financing, and construction of
the 90-unit senior citizen multifamily complex. Further, the Developer/Operator shall
subsequently own and operate said complex, and warrant that the unit rent rates shall be
affordable to very low and low income households as designated in item 2 above. Said
units shall feature long-term affordability covenants that will maintain each unit's
affordability to its designated household.
f The Developer/Operator shall be responsible, on initial lease -up and annually thereafter,
for submitting to the Agency tenant income computation and certification data for all
tenants in the senior citizen multifamily complex, and certify that each tenant meets the
eligibility requirements for very low and low income households.
5. Agency Project Responsibilities. Agency responsibilities will include the following:
a. The Agency will pursue the acquisition of the approximately 36.15-acre Project Site.
The Agency will provide up to $3,864,373 in financial assistance to the
Developer/Operator to secure single and multifamily units that will be affordable to very
low, low, and moderate income households. This assistance may be provided in one or
more of the following forms:
• selling the 11-acre site for the single-family housing and the 8-acre site for the
multifamily senior citizen housing to the Developer/Operator for $1.00;
• funding part or all of the construction of Project required on- and off -site infrastructure
improvements, including the required park and storm detention basin; and
lagwnte\ SMou
• funding silent second trust deed mortgages (applicable to the single-family component)
in amounts ranging from approximately $8,076 for each assisted moderate income unit,
to $37,700 to $71,800 for each assisted very low and low income unit.
6. Actions Subsequent to MOU Execution. In order to implement the provisions of this MOU,
the Agency and Developer/Operator hereby agree to undertake the following actions to
implement the provisions of this MOU. Both parties will commit to make every effort to
initiate and make every attempt to complete said actions on or before February 15, 1994.
• Prepare, process, and record tentative and final parcel maps which shall subdivide the
Project Site into 4 parcels.
• Prepare and process the necessary environmental documents upon receipt of application
and processing fee from Developer/Operator.
• Prepare and adopt a DDA.
• Initiate the preparation of a specific plan that encompasses the entire Project Site.
F.199 I �K�hlTII`�I71'i
La Quinta Redevelopment Agency
4tai'CJ41IA",,
Robert L. Hunt, Executive Director
Date: 1 /i.'?+
Williams Development Corporation
E.G. Willia s, CEO
Date:
j i
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