Staff Rpt 2023-01-17 HA - Prop Acq PSA Dune Palms Rd & Hwy 111 from Blackpoint PropertiesHOUSING AUTHORITY
MINUTES
TUESDAY, JANUARY 17, 2023
CALL TO ORDER
A regular quarterly meeting of the La Quinta Housing Authority was called to order at 7:07
p.m. by Chairperson Sanchez.
PRESENT: Authority Members: Fitzpatrick, McGarrey, Pena, and Chairperson
Sanchez
ABSENT: Authority Member Evans
VERBAL ANNOUNCEMENT — Authority Secretary Radeva made the required AB 23
announcement.
PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA — None
CONFIRMATION OF AGENDA — Confirmed
CONSENT CALENDAR
1. APPROVE HOUSING AUTHORITY SPECIAL MEETING MINUTES OF
DECEMBER 20, 2022
MOTION — A motion was made and seconded by Authority Members Pena/ McGarrey to
approve the Consent Calendar as recommended. Motion passed: ayes — 4, noes — 0,
abstain — 0, absent — 1 (Evans).
BUSINESS SESSION
1. ADOPT RESOLUTION TO APPROPRIATE FUNDS AND APPROVE AN
AGREEMENT FOR PURCHASE AND SALE AND ESCROW INSTRUCTIONS
WITH BP DUNE PALMS, LP, BY GENERAL PARTNER BLACKPOINT
PROPERTIES, LLC, TO ACQUIRE A PORTION OF CERTAIN REAL
PROPERTY COMPRISED OF APPROXIMATELY 5.2 ACRES, LOCATED ON
THE NORTHEAST CORNER OF HIGHWAY 111 AND DUNE PALMS ROAD
(APN: 600-030-018); CEQA: THE PROJECT IS EXEMPT FROM
ENVIRONMENTAL REVIEW PURSUANT TO SECTION 15061(b)(3) COMMON
SENSE EXEMPTION [RESOLUTION NO. HA 2023-001]
Authority waived presentation of the staff report.
Council discussed the front footage of the property needs to be designed in accordance
with the Highway 111 Corridor revisioning plan.
HOUSING AUTHORITY MINUTES
Page 1 of 2 JANUARY 17, 2023
MOTION — A motion was made and seconded by Councilmembers Pena/ Fitzpatrick to
appropriate funds from Fund 249 — Successor Agency 2011 Low/Mod Bond Fund in the
amount of $2,237,183 and Unassigned Reserves in the amount of $1,387,009 to be
transferred to the Land Acquisition account (Account No. 249-0000-74010), to be used
for this property acquisition and all associated closing costs and to adopt Resolution No.
HA 2023-001 to:
1) Find the project exempt from environmental review pursuant to California
Environmental Quality Act Section 15061 (b)(3) "Common Sense Exemption;" and
2) Approve an Agreement for Purchase and Sale and Escrow Instructions with BP
Dune Palms, LP, by General Partner Blackpoint Properties, LLC, to acquire a portion of
certain vacant real property comprised of approximately 5.2 acres, located on the
northeast corner of Highway 111 and Dune Palms Road (APN: 600-030-018); and
3) Authorize the Executive Director to execute the agreement substantially in the
form attached, allowing for minor and non -substantive changes:
A RESOLUTION OF THE LA QUINTA HOUSING AUTHORITY OF THE CITY OF LA
QUINTA, CALIFORNIA, APPROVING AN AGREEMENT FOR PURCHASE AND
SALE AND ESCROW INSTRUCTIONS BETWEEN THE LA QUINTA HOUSING
AUTHORITY AND BP DUNE PALMS, LP, BY GENERAL PARTNER BLACKPOINT
PROPERTIES, LLC, FOR A PORTION OF CERTAIN VACANT REAL PROPERTY
COMPRISED OF APPROXIMATELY 5.2 ACRES, LOCATED ON THE NORTHEAST
CORNER OF HIGHWAY 111 AND DUNE PALMS ROAD; IDENTIFIED AS
ASSESSOR'S PARCEL NUMBER 600-030-018
Motion passed: ayes — 4, noes — 0, abstain — 0, absent — 1 (Evans).
HOUSING AUTHORITY MEMBERS' ITEMS — None
ADJOURNMENT
There being no further business, it was moved and seconded by Authority Members
Pena/Fitzpatrick to adjourn at 7:14 p.m. Motion passed: ayes — 4, noes — 0, abstain — 0,
absent — 1 (Evans).
Respectfully submitted,
MONIKA RADEVA, Authority Secretary
La Quinta Housing Authority
HOUSING AUTHORITY MINUTES
Page 2 of 2 JANUARY 17, 2023
BUSINESS SESSION ITEM NO. 1
City of La Quinta
HOUSING AUTHORITY MEETING: January 17, 2023
STAFF REPORT
AGENDA TITLE: ADOPT RESOLUTION APPROVING AGREEMENT FOR
PURCHASE AND SALE AND ESCROW INSTRUCTIONS WITH BP DUNE PALMS,
LP, BY GENERAL PARTNER BLACKPOINT PROPERTIES, LLC, TO ACQUIRE A
PORTION OF CERTAIN REAL PROPERTY COMPRISED OF APPROXIMATELY 5.2
ACRES LOCATED ON THE NORTHEAST CORNER OF HIGHWAY 111 AND DUNE
PALMS ROAD (APN: 600-030-018); CEQA: THE PROJECT IS EXEMPT FROM
ENVIRONMENTAL REVIEW PURSUANT TO SECTION 15061 (b)(3) "COMMON
SENSE EXEMPTION"
RECOMMENDATION
Adopt a resolution to (1) find the project exempt from environmental review
pursuant to California Environmental Quality Act Section 15061 (b)(3)
"Common Sense Exemption" and (2) approve an Agreement for Purchase and
Sale and Escrow Instructions with BP Dune Palms, LP, by General Partner
Blackpoint Properties, LLC, to acquire a portion of certain vacant real property
comprised of approximately 5.2 acres, located on the northeast corner of
Highway 111 and Dune Palms Road (APN: 600-030-018); and authorize the
Executive Director to execute the agreement substantially in the form attached,
allowing for minor and non -substantive changes.
EXECUTIVE SUMMAKY
• The Housing Authority (Authority) is looking to purchase approximately
5.2 acres of vacant real property located west of the Home Depot Center
on Highway 111, on the northeast corner of Highway 111 and Dune Palms
Road ("Property") (Attachment 1), for an affordable housing
development.
• Property would be acquired using a mix of Authority funds and
Unassigned Reserves funding and will have a future affordable housing
development.
• Purchase of Property would further the City's goals of fostering mixed-
use development, affordable housing, multi -modal transportation, and
development of the Highway 111 Corridor as outlined in General Plan
2035.
FISCAL IMPACT
Total Property acquisition cost is $3,624,192 ($16 per square foot for 5.2
acres). An appropriation of funds from Fund 249 - Successor Agency (SA) 2011
Low/Mod Bond Fund is requested in the amount of $2,237,183 and Unassigned
Reserves in the amount of $1,387,009 to be transferred to the Land Acquisition
account (Account No. 249-0000-74010), which will be used for the Property
acquisition and all associated closing costs.
BACKGROUND/ANALYSIS
The Property is proposed to be developed as an affordable housing
development with a connecting thoroughfare to CV Link. The Property would be
acquired using a mix of Authority funds and General Plan Unassigned Reserves
funds. Development of the Property would support affordable housing
development as part of the Regional Housing Needs Assessment (RHNA)
requirement for the City, provide commercial opportunities for businesses, and
would further the development of the Highway 111 Corridor Plan, which
emphasizes mixed-use development.
Before the Authority can acquire the approximately 5.2 acres, the Property
must be subdivided in accordance with State and City laws under the
Subdivision Map Act (Gov. Code, § 66410 et seq.). Seller DP Dune Palms
(Seller) would be responsible for processing the required subdivision map
through the ordinary course as for any similarly situated parcel map brought
before the City. The proposed Agreement for Purchase and Sale and Escrow
Instructions (Agreement) includes as a condition precedent to closing escrow,
along with other conditions, the approval and recording of a City -approved
parcel map.
Assuming the subdivision of the Property is approved, the Seller will retain the
southern portion of the Property along Highway 111 comprised of two (2) new
parcels (proposed parcels 2 and 3), and the Authority will buy the northern
portion, approximately 5.2 acres (proposed parcel 1) that affronts Dune Palms
Road and the All American Flood Control Channel (Channel), as depicted in the
exhibits attached to the Agreement.
Seller has requested, as part of the transaction, the Authority be responsible
for completing any required undergrounding of electrical and teleconferencing
utilities along Dune Palms Road, including the portion of the Seller's retained
southern portion that runs from the southern boundary of the Channel to
Highway 111. The Seller would be responsible for completing any required
undergrounding of such utilities along Highway 111.
8
Additionally, the Seller anticipates installing a privately owned stormwater
outflow line from the Seller's retained portion of the Property, over the
Authority's northern portion of the Property, and into the Channel, as depicted
in Exhibit F attached to the Agreement. Seller has requested that the Authority
reimburse its proportionate costs, based upon the respective land area of the
northern Property and the southern Property, attributed to the Authority's use
of this outflow line pursuant to a separate reimbursement agreement, including
the cost incurred to address the surface stormwater running through the main
drive, and the cost of all related facilities in connection to this, that must be
approved and signed by the parties as a condition to closing escrow.
Because the stormwater and electric/teleconferencing utility work may not be
required or pursued, there are no estimated costs at this time to present to the
Authority for consideration. When costs for stormwater and or utility work is
known and/or required, Staff will return to the Authority to provide an update
and request any additional funding associated with these improvements.
AGENCY REVIEW
The Housing Commission considered this item at the November 9, 2022, special
meeting, and recommended Authority approval of the proposed Property
acquisition.
The Planning Commission considered this item at the December 13, 2022,
regular meeting, and adopted Planning Commission Resolution No. 2022-026
finding the proposed Property acquisition consistent with the La Quinta General
Plan and exempt from environmental review pursuant to California
Environmental Quality Act Section 15061 (b)(3) "Common Sense Exemption."
ENVIRONMENTAL REVIEW
The La Quinta Design and Development Department has determined that this
project is exempt from environmental review pursuant to Section 15061(b)(3)
"Common Sense Exemption," in that the action of purchasing this Property
would not have a significant effect on the environment.
ALTERNATIVES
The Authority may elect not to proceed with this proposed acquisition.
Prepared by:
Approved by:
Attachment:
Gilbert Villalpando, Director, City Manager's Office
Jon McMillen, Executive Director
1. Agreement for Purchase and Sale and Escrow Instructions
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LEGEND
■
Fee, Property in Question
Item 1/0,5- Easement for 501/115 road and utllpy
03122YI90a, Book 122, Page 274, of Official Records
Affects as deserlbed therein
Item No. 6- Easement for slope
09112YI969, Instrument No. 97998, of Official Records
Affects as described therein
Item No. 7 - Easement for pipeline
021101200A !mall -amend Ne_ 2009-0102470, of Official Records
Affects as described therein
Item No. 8- Easement for reciprocal and access
00520/2009. Instrument No 2008-0219086. et 01710121 R900,0S
Affects as descabed therein
Nem No. 10 . Easement for pipeline
0352912006, Instrument No. 2008.224084, of Official Records
Affects as described therein
Nem No. 11 - Easement for highway 111 widening
(Retention Basin)
02101/2007, Instrument No. 20014016261, of 0720121 Records
0212512007, Instrument No. 2007-0100825 of Official Records
Affects as described therein
Item No 12 - Easement for public utilities
Odd 0 01, Instrument No. 2007-0312286, of Official Records
Affects
as described therein
Fidelity National Title Company
1300 Dave Stree, 3M Roof
Neuf, Beeth, CA 92.0
Phare: (240) 782-2800 Fax (849)341-0251
Tele Order N0. 04201050, 51e1Im:M25 Report 08ted as 07 July 10, 2019
03wi10/ 0310 July 18, 2019 - FT
Reference:
A33362006 501501 100. 000-030-010-0
Property: vacant Land (Hwy 111 and Dunes Palm Road), La 0uin1a, Slate Of Caltforme
Data:
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P111 Showing that pollen of the West 1-111701 the West Ha If 08660 Northeast Quarter of Section 29, Township 5 Soutn, Range 7 East, San
Bernardino Base ane Mendian, In the County of lilversele State 51 Galore.
1BLKPNT/0026/PSA/01936165.DOCX 11 } 698/015610-
0040
18532321.9 a01110123
EXHIBIT "A"
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45
EXHIBIT "B-1"
SITE DEPICTION MAP
+1- 5.1 ACRES
RESIDENTIAL
@ 24 UNITS//AC
= +/- 120 UNITS
{BLKPNT/0026/PSA/01936165.DOCX 11 } 698/015610-
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18532321.9 a01/10/23
EXHIBIT "B"
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TENTATIVE PARCEL MAP N0. ___
NORTHEAST CORNER OF HIGHWAY 111 A DUNES PALMS ROAD
` N THE UN OF LA QUINT*, COUNTY OF RIVERSIDE. STATE OF CAUEORNIA
{BLKPNT/0026/PSA/01936165.DOCX 11 } 698/015610-
0040
18532321.9 a01/10/23
EXHIBIT "B"
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Jos_ » C Tiuxaw and Associates, Inc.
ChM EW9iaeeis arid Land Surveyors
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