2018 Development Agreements - Annual ReportCity of La Quinta
CITY COUNCIL MEETING: October 16, 2018
STAFF REPORT
AGENDA TITLE: RECEIVE AND FILE ANNUAL REPORT OF ACTIVE
DEVELOPMENT AGREEMENTS
RECOMMENDATION
Receive and file annual report of active development agreements.
EXECUTIVE SUMMARY
The La Quinta Municipal Code requires annual Council review of active
development agreements (DA).
Four active development agreements were reviewed including the
Centre Pointe, Legacy Villas, Signature at PGA West, and SilverRock
Resort development projects. Centre Pointe development is currently
out of compliance.
The Planning Commission reviewed the report on July 24, 2018 with no
further recommendations to the City Council. Updates have been
included in this report.
FISCAL IMPACT
The Centre Pointe development is out of compliance with DA terms.
BACKGROUND/ANALYSIS
The periodic review of DAs is required by the City Council at least every 12
months from the date the DA was entered into until the expiration of the
agreement. Last year, five active DAs were reviewed (Attachment 1) and
identified. Of the five, Village Park Animal Hospital, was determined to be in
full compliance with no further obligations. The remaining agreements are
summarized in the table below. The Centre Pointe Development is not in
compliance with DA terms.
CONSENT CALENDAR ITEM NO. 2
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Active Development Agreements
Project
Name
Applicant Project
Description
Effective
Date
Status
1 Centre Pointe Centre
Pointe
Development
LQ, LLC
50-acre Mixed-use
development at
SEC of Washington
Street and Miles
Avenue
July 17,
2003
(Expires
2053)
Under
Review
2 Legacy Villas Centex
Homes
280 residential
units at NWC of
Coachella and
Eisenhower
November
20, 2003
(Expires
2053)
Compliance
Mitigation
Fees are
being
collected
3 Signature
(PGA West)
Villas,
Haciendas,
Estates
Crown Pointe
Partners,
LLC
264
condo/townhome
units at PGA West
August 18,
2008
(Expires
2058)
Compliance
Mitigation
Fees are
being
collected
4 SilverRock
Resort
SilverRock
Development
Company,
LLC
Development of
the SilverRock
Resort including
luxury hotel,
lifestyle hotel,
luxury branded
residential, shared
services and
conference center,
and mixed-use
village.
October 29,
2014
(expires
October 29,
2044)
Compliance
Site
Development
Permits for
Planning
Areas 2-6
recently
approved
and
construction
anticipated
to
commence.
The Centre Pointe, Legacy Villas, and Signature developments are within the
Tourist Commercial District, with representative land uses that include tourist
and resort oriented commercial uses that generate transit occupancy tax
revenue. These projects included DAs for a per unit payment to the City for
potential loss of anticipated general fund revenues from transient occupancy
tax as a result of the use of these sites for a residential resort development
instead of a traditional tourist commercial use, such as a hotel.
The Centre Pointe development included partial construction of casitas and
sanctuary villas that are subject to payment of one-time and annual mitigation
fees to the City, unless the City receives $546,131 minimum annual transient
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occupancy tax (TOT) for three consecutive years generated by the
development. The Finance Department has reported that this threshold has
not been met and they are required to continue payment of mitigation fees.
The Centre Pointe homeowner association (HOA) has requested information
via public records request to verify if the TOT threshold has been met.
Discussions between Staff and HOA continue.
The Legacy Villas and Signature developments comply with DA terms for
mitigation payment obligations. Summaries of each DA are provided as
Attachments 2-5.
ALTERNATIVES
The Council may request Staff commence proceedings to enforce, modify, or
terminate the Centre Pointe DA if the Council determines that the applicant has
not complied in good faith with DA terms.
Attachments: 1. Map of developments with active development
agreements
2. Centre Pointe Development Agreement Summary
3. Legacy Villas Development Agreement Summary
4. Signature Development Agreement Summary
5. SilverRock Resort Development Agreement Summary
Prepared by: Cheri Flores, Senior Planner
Approved by: Danny Castro, Design and Development Director
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SH-111
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EISENHOWER DR
50TH AVE JEFFERSON ST Source: Esri, DigitalGlobe, GeoEye, Earthstar Geographics,CNES/Airbus DS, USDA, USGS, AeroGRID, IGN, and the GISUser Community
Development Agreement Project Locations
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CREATED FEBRUARY 24, 2017
CENTRE POINTE
LEGACY VILLAS
SILVERROCK
SIGNATURE
ATTACHMENT 1
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Centre Pointe Development Agreement (DA2003-0006)
Project Description: 134-room hotel, 136 condo/casita units, residential
development of 54 detached homes, 14 market rate homes, 40 affordable homes, 2
restaurants, medical office, surgical facility, 132-suite retirement community, 72-
suite assisted living, and a 32-bed memory care facility.
Applicant: Centre Pointe Development LQ, LLC
Case No.: Development Agreement 2003-006, Ord 409, 423, 455 and 504
(4 DA amendments approved)
Related Case: Specific Plan 2001-055
Effective Dates: July 17, 2003, Expires July 17, 2053 (50 YEARS)
Terms:
• Developer to construct 134-guest room hotel, 136 condo/casitas units, 13
courtyard cluster villas, 54-unit residential development, 14 market rate
homes, 40 affordable homes, two restaurants, medical office/ surgical
facility, 26 sanctuary villas.
• Development of a Casitas HOA
• CASITAS DEVELOPMENT: A resort-style condominium with 136
condominium/casitas units.
One-time Mitigation: $1,500 for each unit with payment due upon the first
close of escrow.
Annual Mitigation: Each July 1 the Casitas HOA shall pay annual mitigation
fee of $150 for each unit sold to a purchaser. Fee shall not be required to be
paid for any operative year in which the City has received transient
occupancy taxes derived from the Suites Hotel parcel, casitas parcel, and
sanctuary villas parcel which equals or exceeds $546,131 for the applicable
operative year.
If City received minimal annual TOT ($546,131) in each of three consecutive
operative years, the Casitas Development HOA’s obligation to pay the annual
mitigation fee shall be terminated.
• SANCTUARY VILLAS DEVELOPMENT: A development containing 26
sanctuary villas.
One-time Mitigation: $2,150 for each unit with payment due upon the first
close of escrow.
Annual Mitigation: Each July 1 the Casitas HOA shall pay annual mitigation
fee of $150 for each unit sold to a purchaser. Fee shall not be required to be
paid for any operative year in which the City has received transient
ATTACHMENT 2
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occupancy taxes derived from the Suites Hotel parcel casitas parcel, and
sanctuary villas parcel which equals or exceeds $546,131 for the applicable
operative year.
If City received minimal annual TOT ($546,131) in each of three consecutive
operative years, the Sanctuary Villas Development HOA’s obligation to pay
the annual mitigation fee shall be terminated.
• Developer develops a neighborhood park.
• Contribution towards landscape improvements
Status: Under Review to determine compliance with one-time and
annual mitigation payments for Casitas and Sanctuary Villas
• Casitas and Sanctuary Villas (partially constructed)
• Applebee’s restaurant (complete)
• Homewood Suites by Hilton La Quinta (complete)
• The Palms La Quinta retirement community (complete)
• Eisenhower Medical Center (complete)
• 2nd sit-down restaurant (vacant)
• Pioneer Park (complete)
To view the CP Development La Quinta LLC Development Agreement please use the
following web address:
https://lqdocs.laquintaca.gov/WebLink/DocView.aspx?id=20723&searchid=97fda75
b-ba06-4ee4-baf6-b22fc917c23a&dbid=1
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LEGACY VILLAS DA TERMS (DA 2003-007)
Project description: 280-unit Residential Resort on 44.61 Acres
Applicant: Centex Homes
Case No.: Development Agreement 2003-007
Related Case: Specific Plan 2003-065, Site Development Permit 2003-778,
Environmental Assessment 2003-478
Effective Dates: Development Agreement is considered effective on December
12, 2003 and expires December 11, 2053 (50 YEARS).
Terms:
• A one-time mitigation fee of $2,500 per unit constructed in the project due
on or before the date the building permit is issued for each unit.
• Annual mitigation fee which is collected by the HOA at $1,000 per year per
unit that has been sold to an owner. The HOA then forwards to the City of La
Quinta.
• The Annual mitigation fee is reduced from $1,000 to $500 per year if the City
receives TOT from rental units in the project that exceeds $500,000 for three
consecutive years during the term of the Development Agreement and can
be totally eliminated if the City has received TOT from rental units in the
Project in excess of $1,000,000 for any three consecutive operating years
during the life of the Development Agreement.
• Any rentals are subject to TOT.
• Rental Tracking System by HOA.
Status: Compliance
Actual amount for 2017/18 is $346,813.65
Projected amount for 2018/19 is $360,304
To view the Centex Homes Development Agreement please use the following web
address:
https://lqdocs.laquintaca.gov/WebLink/DocView.aspx?id=20844&searchid=ad3e8b1
e-3d90-4f6b-a68e-9eb5b47804f6&dbid=1
ATTACHMENT 3
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EDENROCK (SIGNATURE) DA TERMS (DA2006-011)
Project Description: 264 condo/townhome units (83 courtyard, 79 Manor
triplexes and 102 Village units) on 41.95 acres.
Development Agreement entered into for purposes of payment to City a per unit
upfront payment for potential loss of anticipated general fund revenues from
“Transient Occupancy Tax” as a result of the use of the site for a residential resort
instead of a traditional tourist commercial use such as a 1,000-room resort hotel,
conference center and 100,000 square feet of resort retail.
Applicant: Crowne Pointe Partners, LLC
Case No.: Development Agreement 2006-011, Ordinance 457
Related Case: SP 83-002, Amendment No. 6, GPA 2006-107, ZC 2006-127,
Tentative Tract Map 33226, SDP 2006-852
Effective Dates: August 18, 2008 and expires August 18, 2058 (50 YEARS)
Terms:
• Compliance with Conditions of Approval
• Recordation of Covenants, Conditions and Restrictions
• Payment to the City for each unit .75% of the developer’s full sale price of
the unit upon close of escrow, inclusive of all developer-installed options
and upgrades, with the amount of such sales price verified by the City.
• Payment of Fair Share Improvements as identified in mitigation measures
11.0-3 and 11.0-4 of the project EIR.
Status: Compliance
• Project construction in initial stages
• Mitigation fees are being collected
• 2017/18 - $56,915.29 (14 units sold, including the models)
To view the Crowne Pointe Partners Development Agreement please use the
following web address:
https://lqdocs.laquintaca.gov/WebLink/DocView.aspx?id=43952&searchid=5cee4ba
e-3071-479a-ba63-3387e875ebd6&dbid=1
ATTACHMENT 4
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SILVERROCK DA TERMS (DA 2014-1001 Ord. 520)
Project description: Development of a resort development as follows:
Area Project Components Acres
PA 1 Modification of existing Golf Course 173
PA 2 a 140-room luxury hotel with spa and fitness
center (170,000 sq. ft.)
17 acres
PA 3 35 luxury-branded residential homes 14 acres
PA 4 shared service/conference facility 12 acres
PA 5 lifestyle hotel 200-(170,000 sq. ft.) 10 acres
PA 6 luxury-branded residential development (66
units)
10 acres
PA 7 Mixed-Use Village Area 1 (150 units) 10.5 acres
PA 8 Resort Residential Village (160 units) 32
PA 9 Mixed Use Village Area II (80 units) 15
Applicant: SilverRock Development Company, LLC
Effective Dates:
• Development Agreement entered into on November 19, 2014 and expires
November 19, 2044 (30 YEARS).
• Amendment 1 to the DA was entered into on October 29, 2015
Case No.: Development Agreement 2014-1001, Ordinance 520
Related Cases: SDP 2016-005, SDP 2016-0009
Purpose (Amendment 1): Refinements to Site Map and detailed schedule of
Performance for Developer to perform predevelopment tasks.
The agreement proposed to eliminate uncertainty in planning and secure orderly
development, ensure a desirable and functional community environment, provide
effective and efficient development of public facilities, infrastructure, and services
appropriate for the development of the Project, and assure attainment of the
maximum effective utilization of resources within the City.
Key points of the Agreement:
• Establishment of a vested right to execute and fulfill the development program
in accordance with the SilverRock Resort Specific Plan and applicable zoning
regulations in force when the Agreement goes into effect.
• Permit and development impact fees are to be paid in accordance with those
fees in force and effect as of the effective date of the Agreement.
• Any non-city development fees, such as the CVMSHCP or TUMF fees, will be
collected at the rate in effect at the standard time of collection.
• Developer is responsible for executing development in accordance with identified
development program.
ATTACHMENT 5
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• Developer acknowledges responsibility for CEQA mitigation monitoring.
• The Agreement is to be reviewed at least annually in order to ensure compliance
with provisions.
Status: Compliance
• Site Development Permits for PA 2, 3, 4, 5, and 6 Approved
• A contract amendment regarding the development agreement
terms and project schedule is currently being prepared.
To view the Silver Rock Development Agreement please use the following web
address:
https://lqdocs.laquintaca.gov/WebLink/1/doc/44920/Page1.aspx
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