2023 Legacy Villas - TOT Mitigation Fee - correspondenceRUTAN
• William H. Ihrke
RUTAN & TUCKER, LLP
August 15, 2023
VIA E-MAIL and CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Corey L. Todd, Esq.
Tinnelly Law Group
27101 Puerta Real; Suite 250
Mission Viejo, CA 92691
E-mail: ctodd@tinnellylaw.com
Re: Legacy Villas at La Quinta Homeowners Association
Transient Occupancy Tax Mitigation Fee
Notification of Reduced "Annual Mitigation Fee" Payment
Dear Mr. Todd:
E-mail: bihrke@rutan.com
I am in receipt of a copy of your letter dated August 4, 2023, addressed to Danny Castro at
the City of La Quinta ("City"), and M. Katherine (Kathy) Jenson of this office. As an initial matter,
Kathy Jenson is retired. I am the City Attorney for the City of La Quinta and have been since
2014. As such, please address all future correspondence or inquiries to my attention.
I reviewed your letter, forwarded to me by Mr. Castro, and have spoken with City staff in
the City's Finance Department. City staff have reviewed their files, and the City's records do not
support the Legacy Villas Homeowners Association's ("HOA") assertion that it has met the
thresholds for modifying the TOT Mitigation Fee, as those are set forth in the Development
Agreement by and Between the City of La Quinta ("City") and Centrex Homes, a Nevada General
Partnership, DBA Centex Destination Properties ("Developer")" recorded on December 12, 2003,
in the official records of the Riverside County Recorder's Office as Document No. 2003-972732
("Development Agreement"). Specifically, the City's records reflect that while the threshold was
met for Fiscal Years 2022/23 and 2021/22, the threshold for 2020/21 was not met.
The City is happy to make arrangements for a date and time during regular business hours,
if requested, for the HOA' s authorized representatives to come to City Hall to review the City's
records relating to TOT receipts and the relevant documents used to calculate the thresholds for
modifying the TOT Mitigation Fee. Because some of the City's records will contain personal
identifying information and other information that is not subject to disclosure under the California
Public Records Act (Gov. Code, § 7920.000 et seq.), the City will ask the HOA Board of Directors
to confirm it has the authority to consent, on behalf of HOA members and Legacy Villas
homeowners, to disclosure of confidential information, such as the amount of TOT paid by a
homeowner and/or paid by an identified address in Legacy Villas. Assuming the HOA Board of
Rutan & Tucker, LLP 1 18575 Jamboree Road, 9th Floor
Irvine, CA 92612 1 714-641-5100 1 Fax 714-546-9035
Orange County 1 Palo Alto 1 San Francisco 1 Scottsdale 1 www.rutan.com
698/015610-0006
19494385.5 a08115/23
RUTAN
RUTAN A TUCKCR, LLP
Corey L. Todd, Esq.
August 15, 2023
Page 2
Directors has such authority, and the HOA Board of Directors expressly consents on behalf of the
HOA to have confidential information disclosed, the City will allow for the HOA's designated
representatives to review these relevant City records.
Relatedly, I have attached the current invoice for the TOT Mitigation Fee. Delivery of this
invoice is by attachment to this letter, and the invoice will not be sent by separate mailing.
Remittance may be directed to the City's Finance Department as instructed in the invoice. If you
have questions concerning the invoice, or any prior invoices, please contact Rosemary Hallick in
the City's Finance Department at rhallick@laquintaca.gov.
Thank you for your attention to this matter.
Very truly yours,
RUTAN & TUCKER, LLP
William H. Ihrke
WHI:zc
Attachment: TOT Mitigation Fee Invoice
cc: Department of Design & Development, City of La Quinta
Finance Department, City of La Quinta
698/015610-0006
19494385.5 a08/15/23
Attachment
City Quinta
Cvathtia, 78-495ofLa Calle Tampico
GEM of the DESERT— La Quinta, CA 92253
Phone: 760-777-7000
Billed To:
Legacy Villas Homewoners Association
48-800 Legacy Drive
La Quinta, CA 92253
CUSTOMER ACCOUNT: 0007
INVOICE
DATE: 8/10/2023
INVOICE: INV01808
DUE DATE: 9/11/2023
TOTAL DUE: 433,704.21
ITEM DESCRIPTION
UNITS
PRICE
AMOUNT
TOT Mitigation
TOTAL THIS INVOICE
280.00 1,548.94
433,704.21
433,704.21
This invoice is for FY 2022-2023 Annual TOT Mitigation Fee for Legacy Villas. The amount due
for each unit (280 units) is $ 1,548.94. The increase is a result of the change in the
consumer price index as of March 2023.
For questions, contact Daniela Batuta at 760-777-7019
REMIT TO:
City of La Quinta
Attn: Finance Department
78-495 Calle Tampico
La Quinta, CA 92253
A copy of this invoice should accompany your check. Thank you!
Page 1
TINNELLY
ORANGE COUNTY
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Mission Viejo, CA 92691
949.588.0866
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LAW GROUP
BAY AREA
6701 Koll Center Parkway
Suite 250
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650.425.9444
TINNELLY LAW GROUP
A Professional Corporation
tinnellylaw.com
August 4, 2023
27101 Puerta Real — Suite 250
Mission Viejo, CA 92691
P: 949.588.0866
F: 949.588.5993
ctodd@tinnellylaw.com
Via U.S. Mail & Certified Mail. Return -Receipt Requested.
and Electronic Marl
dcastro@laqurntaca.gov
City of La Quinta
Atm: Community Development Director
78-495 Calle Tampico
La Quinta, California 92253
City of La Quinta
Atm: Danny Castro
78-495 Calle Tampico
La Quinta, California 92253
Rutan & Tucker, LLP
Atm: M. Katherine Jenson
611 Anton Boulevard, Suite 1400
Costa Mesa, CA 92626
Ref. #: 14368
RE: Legacy Villas at La Quinta Homeowners Association
Transient Occupancy Tax Mitigation Fee
NOTIFICATION OF REDUCED "ANNUAL MITIGATION
FEE" PAYMENT
Dear Community Development Director, Mr. Castro, and Ms. Jensen:
Our firm serves as general counsel to the Legacy Villas at La Quinta Homeowners
Association ("Association"). In that capacity we are informed of the "Development
Agreement by and Between the City of La Quinta ("City") and Centrex Homes, a
Nevada General Partnership, DBA Centex Destination Properties ("Developer")"
recorded on December 12, 2023, in the official records of the Riverside County
Recorder's Office as Document No. 2003-972732 ("Development Agreement").
In accordance with Article 3, Section 3.3.3 of the Development Agreement, the
Association has been obligated to remit an "Annual Mitigation Fee" related to the
Transient Occupancy Tax ("TOT"), amounting to one thousand dollars ($1,000.00) for
each rented residential unit, known as the "Villas La Quinta Unit Fee." However, as per
the terms outlined in the Development Agreement, if the City has received TOT for
rentals within the Association exceeding five hundred thousand dollars ($500,000.00)
for three consecutive operating years, the Annual Mitigation Fees for the next Operative
Year shall be reduced to five hundred dollars ($500.00) per unit, plus the increase after
being adjusted for the Consumer Price Index for Urban Wage Earners. (Development
Agreement, Art. 3, Sect. 3.3.3, 3.3.4).
City of La Quinta
August 4, 2023
Page 2 of 2
14368/221277
The purpose of this letter is to inform you that the Association has successfully fulfilled its obligations
by completing the required Annual Mitigation Fee for three (3) consecutive operating years, adjusted
with the Consumer Price Index, totaling in excess of $500,000.00, as outlined in the Development
Agreement with the City. As a result, moving forward, the Association will only be required to pay
$500.00 per unit, plus the annual increase from the Consumer Price Index, for the "Annual Mitigation
Fee."
Should the City have any further questions or require any additional information, please do not hesitate
to contact our office. We are here to assist and ensure a seamless continuation of the agreed-upon
arrangements.
Thank you for your attention to this matter.
CLT:ba
Very truly yours,
TINNELLY LAW GROUP
COREY L. TODD, ESQ.
TINNELLY LAW GROUP
A Professional Corporation
27101 Puerta Real, Suite 250 1 Mission Viejo, CA 92691