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CC Resolution 1996-075^Mr RESOLUTION NO.96 75 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA APPROVING THE REVISED POLICY, AND APPLICATION PROCESS FOR THE FORMATION OF LAND BASED FINANCING DISTRICTS AND RELATED FEE WHEREAS, the City of La Quinta on January 1 5, 1991 adopted Resolution No. 91-2 establishing an administrative processing fee; and WHEREAS, the Mello-Roos Community Facilities Act of 1 982, Improvement Act of 1911, Municipal Improvement Act of 1913, and the Improvement Bond Act of 1 915 allows the payment of a fee to accompany a written request or petition requesting the creation of a Land Based Financing District to compensate the legislative body for all costs incurred in conducting proceedings to create such a District. NOW, THEREFORE, BE IT RESOLVED AND ORDERED BY THE CITY COUNCIL OF THE CITY OF LA QUINTA, THAT: SECTION 1: This Resolution hereby revokes Resolution No.91-2 adopted January15, 1991. SECTION 2: A fee of fifteen thousand dollars $15,000) is hereby established to compensate the City Council for all costs incurred in creating Land Based Financing Districts. SECTION 3: That the Policy for Formation of Land Based Financing Districts and Application Process attached as Attachment No.2 be adopted. PASSED, APPROVED AND ADOPTED at a regular meeting of the La Quinta City Council, held on this * day of October, 1 996 by the following vote, to wit: AYES: Council Members Adolph, Henderson, Perkins, Sniff, Mayor Holt NOES: None ABSENT: None ABSTAIN: None GLENDA L. HOLT, Mayor City of La Quinta, California BIB] 09-01-1998-U01 11:16:58AM-U01 ADMIN-U01 CCRES-U02 96-U02 75-U02 ^MrResolution No.96-75 Page 2 UNDRA L. J OLA, City Clerk City of La Quinta, California APPROVED AS TO FORM: DAWN C. HONEYW City of La Quinta, California BIB] 09-01-1998-U01 11:16:58AM-U01 ADMIN-U01 CCRES-U02 96-U02 75-U02 ^Mr ATTACHMENT NO. 2 *jIIjj,)L*PA1**tijiI(AA * POLICY FOR FORMATION OF LAND BASED FINANCING DISTRICTS INTRODUCTION The City of La auinta will consider developer or property owner initiated applications requesting the formation of community facilities or assessment Districts and the insurance of bonds to finance eligible public facilities necessary to serve newlv devAloping commercial, industrial andlor residential projects. Generally, only regional or community serving public facilities such as malor streets and arterials, highway improvements and freeways, flood or drainage improvements. sewers, telepholie ducts, electrical conduits, water improvements, libraries, fire stations and transit improvements including public parking facilities) may be eligible for this financing program. Facilities will be financed in accordance with the provisions of the Municipal Improvement Act of 1 913 and the Improvement Bond Act of 1915, or the Mello-Roos Community Facilities Act of 1 982. Fxisting neighborhoods may apply to the City for the use of the assessment financing to fund local or neighborhood serving facilities, such as streets, alleys and sidewalk improvements, in accordance with the Improvement Act of 1911 or the Municipal Improvement Act of 1 91 3 and the Improvement Bond Act of 191 5. The City shall make the determination as to whether a proposed District shall proceed under the provisions of the Assessment Acts or the Mello-Roos Community Facilities Act. The City may confer with other District consultants and the applicant to learn of any unique District requirements such as regional serving facilities or long-term development phasing, prior to making any final determination. All City and consultant costs incurred in the evaluation of new development, District applications and the establishment of Districts will be paid by the applicant(s) by advance deposits in those instances where a proposed District has been initiated by a party or parties other than the City. The City may incur expenses for analyzing proposed assessment or community facilities districts where the City is the principal proponent of the formation or financing of the District. Expenses not legally reimbursable by the District shall be borne by the applicant. 1 BIB] 09-01-1998-U01 11:16:58AM-U01 ADMIN-U01 CCRES-U02 96-U02 75-U02 ^Mr OVERVIEW OF APPLICATION PROCESS Early communication with the City is encouraged to assist applicants in evaluating the feasibility of available financing programs and to discuss program procedures. The following details a typical District application review and approval process. 1 Pr*applicatlon Conference: Applicant meets with the Assistant City Manager and Finance Director for Commercial Development; or, the Community Development Director and Finance Director for residential development to discuss the proposed project and application procedures. 2. Pre-application Submission: Applicant submits a pre-application. 3. Project Review: The City Staff will meet to discuss the pre.application, including any issues raised and further information that might be required. If necessary, applicant submits revised pre-application. Once the District's application is accepted by City Staff, it will be reviewed by a City assessment and Mello-Roos financing team consisting of, but not limited to, the City Manager1 Assistant City Manager, Community Development Director, Finance Director, and City Attorney, based on the needs of the prolect. If the prolect is denied, a letter will be sent advising the applicant of the denial. If the prolect is to be considered, an application packet will be sent to the applicant. When the application is returned for processing, it must include the initial $15,000.00 processing fee. 4. Application Pvocmlng: Upon City Staff's determination that the application package is complete, City Staff prepares a report to the City Manager, or the designee, who will then forward the application for district formation and prolect financing, along with the City Manager's recommendation of additional financing tearn members or consultants. to the City Council for further action. If the City Manager determines that the prolect does not meet the community's needs, the application fee* less accrued expenses, will be refunded to the applicant. 6. City Council Consideration: The City Council grants or denies the application. If approval is granted, the City Council directs the City Manager, or the designee, to engage additional consultants. which may include, but not be limited to; a certified appraiser, financial advisor, underwriter, bond counsel, and assessment engineer. This includes negotiatIon of necessary contracts, and the collection of additional developer deposits, as necessary. 2 BIB] 09-01-1998-U01 11:16:58AM-U01 ADMIN-U01 CCRES-U02 96-U02 75-U02 ^Mr 7. Project Initiation: City Staff submits contracts, reimbursement agreements, bond documents and other pertinent items for consideration to the City Council, as required.. B. Project Implementation: Applicant, City Staff and consultants meet to determine preliminary project schedule and begin work necessary to complete District formation and financing. GENERAL REQUIREMENTS District Cost Deposits and Reimbursements All City and consultant costs incurred in the evaluation of District applications and the establishment of Districts shall be paid by the applicant through advance deposits. The City shall not incur any expenses for processing and administering Assessment Districts or CFDS. Expenses not chargeable to the District shall be directly borne by the applicant. Each application for the formation of an Assessment District or CFD shall be accompanied by an initial deposit in the amount determined by the City to fund initial consultant and staff costs associated with district.review and implementation. The deposit is $15,000.00. If additional funds are needed to off-set costs and expenses incurred by the District, the City shall make written demand upon the applicant for such funds and the applicant shall comply with demand within fourteen 14) calendar days of receipt of such notice. If the applicant fails to make any deposit of additional funds for the proceedings, the City may, as its sole option, suspend all proceedings until receipt of such additional deposit. The deposits shall be used by the City to pay coats and expenses incurred by the City incident to the proceedings, including, but not limited to, legal. engineering, appraisal, special tax consultant and financlai advisory fees and expenses; administrative costs and expenses; required notifications; and printing and publication of legal matters. The District shall refund any unexpended portion of the deposits upon the following conditions: 1. The District is not formed; 2. The proceedings for formation of the DIstrIct or issuance of Bonds is disapproved by the City; or 3. The proceedings for formation of the District or issuance of Bonds is abandoned in writing by the applicant. 3 BIB] 09-01-1998-U01 11:16:58AM-U01 ADMIN-U01 CCRES-U02 96-U02 75-U02 ^MrPursuant to this adoption of a reimbursement resolution, the applicant shall be entitled to reimbursement from Bond proceeds for all reasonable costs and expenses incident to the proceedings and* construction of the Public Facilities as provided under the Mello-Roos Act, the 1911 Act, or the 1 913 Act. All such costs and expenses will be limited to those District-related consultants hired by the City and invoices shall be verified by the City as a condition of reimbursement. The applicant or property owner shall not be entitled to reimbursement from Bond proceeds for any of the expenses specified as follows: 1. In-house administrative and overhead expenses inourred by the applicant; 2. Interest expense incurred by the applicant on moneys advanced or expended during the proceedings and construction of public facilities; and 3. Any 6ther costs and expenses incurred by the applicant which are not otherwise authorized for reimbursement under the Mello-Roos Act, the 1911 Act or the 1913 Act. Under no circumstances shall the City accrue or pay any interest on any portion of the deposit. Neither the City nor the District shall be required to reimburse the applicant or property owner from any funds other than the proceeds of Bonds issued by the District. Use Of Consultants The City shall either select or have the right of refusal over all consultants necessary for the formation of the District and the issuance of Bonds, including the underwriter(s)1 bond counsel, financial advisor, assessment engineef, appraiser, market absorption study consultant, and the special tax consultant. City Staff may confer with the applicant, but consent of the applicant is not required in the determination by the City of the consulting and financing team. The need for district consultants and the ***pe: of their services shall be determined by City Staff on a case-by-case basis with consideration given to market conditions and the nature of the District and financing(s). Eligible Public Facilities Facilities to be financed must be Public FacIlities for which the City? or a public agency as determined appropriate by the City, will be the owner or will have normal operating and maintenance responsibility. The types of public facilities eligible to be financed are: 4 BIB] 09-01-1998-U01 11:16:58AM-U01 ADMIN-U01 CCRES-U02 96-U02 75-U02 ^Mr* 1. Streets and Roads. 2. Utilities and Drainage. *acilities. 3. Regional Public Facilities as permitted under the Mello-Roos Act). Parks and library facilities may be financed on a case-by-case basis. The City has final determination as to any facility's eligibility for financing, as well as the prioritization of Public Facilities to be included within a District financing. Use of Bond proceeds for grading and right-of-way acquisition will be reviewed by the City and bond counsel on a case-by-*ase basis. Property Owner Support In the instance of multiple property owners, the applicant shall be required to produce letters evidencing support by the other property owners for the scope and establishment of the District as an attachment to the District application. Formation of the District will require proof of overwhelming support of the other property owners to be included in the proposed District, unless there is an overriding need for the Public facilities, or the applicant is willing to separately fund the Public Facilities on the non-participating property(s). Land Use Approvals The City will accept applications for the formation of Assessment Districts andlor CFDS only when properties to be included within a proposed district have City site plan and other applicable zoning approval. VsIue-To-Lien Ratio The District or improvement area) property value-to-lien ratio should be at least 4.0 to 1 after including in an appraisal the value of the financed Public Facilities to be installed and including as part of the lien any prior or pending special taxes or improvement liens. lndtvtdua* properties within the boundaries of the proposed District muSt also meet a minimum value-to-lien test of 3.0 to. 1 on a parcel-by-parcel basis. The value-to-lien ratio shall be determined based upon an independent certified appraisal bf the proposed Oistrlct. The appraisal shall be coordinated by and under the direction of the City. All costs associated with the preparation of the appraisal report shall be paid by the applicant through the advance deposit mechanism. The appraisal shall be conducted In accordance with criteria established by the City. In every case, the appraisal shall employ either a discounted cash flow analysis or use bulk sale comparables. 5 BIB] 09-01-1998-U01 11:16:58AM-U01 ADMIN-U01 CCRES-U02 96-U02 75-U02 ^MrUpon receiving an appraisal and determining the value-to-lien ratio, the City shall apply the following criteria: 1. If the value-to-lien ratio is 4.0 to 1 or greater, the City will not require a letter of credit or other security to secure payment of the special taxes or assessments to be levied annually on properties within the District. However, letters of credit or other security may be required for individual parcels within the District that have a value-to-lien of less than 3.0 to 1. 2. If the value-to-lien ratib is less than 4.0 to 1, the City shall require letters of credit or other security to secure payment of the special taxes or assessments on properties within the District or may elect to abandon the District. Security *or new development, the applicant or property owner must demonstrate itS financial plan and ability to pay all assessments and/or special taxes. before full build-out has taken place. Additional security such as credit enhancement may be required by the City in certain instances. If the City requires letters of credit or other security, the credit enhancement shall be insured by an institution in a form and upon terms and conditions satisfactory to the City. All fees payable on the letter of credit or other security shal. be the sole responsibility of the applicant or developer, not the City or the District. Any security required to be provided by the applicant shall be dlsch8rged bythe City upon the opinion of a certified appraiser retained by the City. that a value-to-lien ration of 4.0 to 1 has been attained. Prior to the City Council's approval of District formation, any property owner that will be responsible for more than 10 percent of the aggregate special taxes or assessment installments within* tn* district will, at Cl* Staws requess, provide detailed * information regarding the following: 1. Legal structure ot the title-holding entity, and the legal structure of the owners or partneis thereof;. 2. Detail*dl, externally prepared financial statements of the property-owning entity and, if th* owning entitiirisa subsidiary or affiliate of another entity? detailed audited ftuiancial statemeints of such parent 0! affillate* Thre* years' statements are required; 3. A list of bank, credit or' investment references wihir the City m.y contact; 6 BIB] 09-01-1998-U01 11:16:58AM-U01 ADMIN-U01 CCRES-U02 96-U02 75-U02 ^Mr 4. A list of other cities or agencies in which the developer or its parent or affiliate company have participated in financing district formation and bond sales; and 5. A comprehensive property development financial pro forma detailing development costs and funding sources, whether from equity, bank, investor or bond proceeds sources. The pro forma must clearly identify timing and amount of private funds required to develop the project and pay the installments or taxes pending prolect completion and sale. The developer will be expected to demonstrate the level of certainty of obtaining and the sources of such private funds. The City will use the above information in assessing whether or not to proceed with formations of the District. Disclosure The City shall determine, in its sole judgment after consultation with attorneys and experts, what financial and development information provided by the developer will be disclosed in the Official Statement for the bonds. The City intends to*generalIy follow the procedures and recommendations set forth in the California Debt Advisory Commission's publication Disclosure Guidelines for Land-Bused Securities. The developer will be required to review such disclosure, and to sign a certificate that the disclosure is complete and accurate, and that it does not fail to include material facts. The City will also determine, in its sole judgement, after consultation with attorneys and experts, what financial and development information provided by the developer will be included in annual secondary market disclosure materials required by Securities and Exchange Commission Rule 1 5c2-1 2. The developer will execute an agreement with the City pledging to provide the required data according to a given schedule. Generally, the developer's obligation to provide continuing disclosure data will terminate when. the developer's share of total debt service revenues falls below a threshold of 10-25%. The City will make its best* efforts not to disclose any information in the initial offering not reviewed and approved by the developer(s). Applicants should be aware that, absent such review and approval, the City may not issue any bonds. Terms and Condidons Of BGnds All terms and conditions of the bonds. shall be established by the City. The City will control, manage and invest all District insured Bond proceeds, Unless otherwise authorized by the City, the following shall serve as Bond requirements: 7 BIB] 09-01-1998-U01 11:16:58AM-U01 ADMIN-U01 CCRES-U02 96-U02 75-U02 ^Mr 1. A reserve fund equal to approximately 10 percent of the issue's par value will be established. * 2. The special taxes or annual assessments shall be levied for the first fiscal year following sale of the Bonds for which they may be levied. Interest shall not be funded capitalized) beyond the earliest interest payment date for which sufficient special tax revenues or annual assessment will be available for payment of interest. 3. The repayment of principal shall begin on the earliest date for which sufficient special tax revenues or anhual assessments can be made available. 4. Beginning with commencement of the repayment of principal, annual debt service shall be level. 5. The maximum special tax shall be established to assure that the annual revenue produced by levy of the maximum special tax shall be equal to at least 110% of the average annual debt service. 6. In instances where multiple series of Bonds are to be issued, the City shall make a final determination as to which Public *acilities are of the highest priority and those Public Facilities will be financed first and will be subject to the earliest or most senior lien. 7. The City may require that each new District bond financing refund any prior liens, if they exist on properties included in the District in' order to avoid subordinated Iiens* Instances where prior liens may not require funding are: 1) where refunding prior liens will result in higher interest cost, 2) where there can be assurance that prior liens may pose no marketing problems for the new District Bonds, or 3) where refunding prior liens may present future administrative difficulties to the City or other affected public entities. Disclosure to Purchasers The applicant or property owner will be required to disclose this and any other special tax, assessment or other liens on individual parcels to existing and future property owners. In addition to all requirements of law, the City shall require the applicant to provide disclosure of such information to the purchasers of propeTw within the District and the terms and conditions of Bonds issued on behalf of the District. Such disclosure requirement shall Include notifications to potential property purchasers, as * well as methods to notify subsequent property purchasers. 8 BIB] 09-01-1998-U01 11:16:58AM-U01 ADMIN-U01 CCRES-U02 96-U02 75-U02 ^MrAcquisition Provisions The City generally will provide for acquisition Districts. The City shall have final determination as to whether and to what extent it will allow the financing of Public Facilities through acquisition. In the event the acquisition provisions of the 1 91 3 Act or the Mello-Roos Act are usedf the City and the applicant or property owner shall mutually agree upon Public Facilities to be acquired and the method of deterniming reasonable acquisition cost. A funding and acquisition agreement shall be required and approved by the City Council on or prior to the adoption of the resolution of intention to form the District. Exceptions to these Policies The City may find in limited and exceptional instances that a waiver to any of the above stated policies is warranted given identified special City benefits to be derived from such waiver. Such waivers are granted only by action of the City Council and based upon specific public purpose, economic andlor health and safety findings. 9 BIB] 09-01-1998-U01 11:16:58AM-U01 ADMIN-U01 CCRES-U02 96-U02 75-U02 ^Mr 0 CITY OF LA QUINTA PRE-APPLICATION FOR LAND BASED FINANCING DISTRICTS Official Company Name: Any DBA's:___________________________________________________ Official Mailing Address:________________________________________________________ Telephone: Fax:__________________________________ Project Location: must be within City limits) Types of Public Improvement(s): Type of Financing: Assessment District D or Mello Roos District D Amount of Financing Requested:* Requested Date Funds Available For Construction:____________________________ Will 3 Years of Financial Statements Be Provided D Yes * No Contact Person: Title: Telephone: Fax:__________________________________ BIB] 09-01-1998-U01 11:16:58AM-U01 ADMIN-U01 CCRES-U02 96-U02 75-U02 ^Mr *44- Within the constraints of these provisions, the City of La Quinta has developed the following fee schedule to be used in the program: 1 At the time an application is submitted. a filing fee in the amount of $1 5,000.00 will be required. FOR OFFICE USE ONLY ApplicatiQn No* Date Received CITY OF LA QUINTA LAND BASED FINANCING PROJECT ELIGIBILITY REVIEW Q ASSESSMENT DISTRICT Q MELLO ROOS The information requested on this form is necessary to process or a request for financial assistance from the City of La Quinta Assessment District and Mel!o Roos Program. Fill in all the blanks using WNONEN or *NOT APPLlCABLE* where necessary If the figure given is an estimate, put NEST.n after the figure. If more space is needed for any specific answer to a questiQn, us* a separate sheet. The information submitted in this form will not be made public without prior notice to the applicant. Please enclose the last three 3* fiscal year-end financial statements plus any interim statements available. Return two signed copies of this application to: City of La Quinta, Finance Department POBoxlS04 78-495 CaIle *ampico La Quinta, California 92253 Signature Title Date 1 BIB] 09-01-1998-U01 11:16:58AM-U01 ADMIN-U01 CCRES-U02 96-U02 75-U02 ^Mr PETITION/PROPOSED OWNER OF THE PROJECT A. Official Company Name:_______________________________________________ Any DBA's:______________________________________________ Official Mailing Address:__________________________________________________ Telephone:( Fax:( Company Headquarters and address of each operating location in California:_______________________________________________________________ B. Business Organization: Corporation Partnership__________________ Sole Proprietorship Other describe) Is the proposed owner a subsidiary or aflillated directly or indirectly with. any other organization?_____________ If so, indicate relationship 8nd name of related organization: If corporation, indicate state of incorporation: and date qualified to do business in California if incorpQrated elsewhere): C. Offi*Ar* Nnme & Hnme Addr*a *uinnan Affil*tinni President 2 BIB] 09-01-1998-U01 11:16:58AM-U01 ADMIN-U01 CCRES-U02 96-U02 75-U02 ^Mr Vice President Finance) Secretary Directors D. List name and home address of equity owners of 10% or more. If publicly held, indicate stock exchange traded on. If partnership, list General a*id Limited Partners and interest owned bV each. If trust, list beneficiaries. $ of Equity NAmA Home AddrA*n Interest Owned E. Name, business address, and phone number of officer to whom all notices and communications concerning the project should be sent: 3 BIB] 09-01-1998-U01 11:16:58AM-U01 ADMIN-U01 CCRES-U02 96-U02 75-U02 ^MrF. Counsel to Applicant: Name: Address:______________________________________________________________ TeI*phnne: I G. Bond Counsel on proposed project if known):* Name:__________________________________________________ Address:______________________________________________________________ TAl*nhonA: H. Principal Bank(s) of Account with name and phone of contact person: Name: *pnt*ct: Address:___________________________________________________________ TAlephonA I Name: CnntAct.* Address:___________________________________________________________ Tnlanhnne'. I I Investment Bank* for proposed project if known):e Name: Cpntact.* Addrm.* TAlAnh*ne.* I 1 *NOTE: Bond COUflI.' and Investment benkei afe subject to the appfOVal of City of La culuita 4 BIB] 09-01-1998-U01 11:16:58AM-U01 ADMIN-U01 CCRES-U02 96-U02 75-U02 ^MrJ. Company History. 1. Description. of Development Projects completed. 2. List all tax exempt financing prolects Have any of these projects ever been in default? Yes No If yes, please provide project name and locatiQn K. A description, if applicable, of the statewide size and locat*on of the development projects of th* Applicant includinG related person and principal users. L. Attach copies of the year-end Financial Statements for each of the last three 3) years, or for as many years as are available. 1. For public corporations, Form 1 OK's plus most recent form 1 OQ. 5 BIB] 09-01-1998-U01 11:16:58AM-U01 ADMIN-U01 CCRES-U02 96-U02 75-U02 ^MrII. PROPOSED PROJECT: A. Development concept: Narratve Description, including renderings if available). B. Proposed Facilities off-site) to be constructed with Bond Proceeds describe). C. Off-site Cost Breakdown. D. Does applicant now own the site of the proposed facility? If not, has applicant entered into an option or commitment or other agreement to purchase the land? If so, please attach a copy of such agreement. E. If project is located within the City, please identify prior contact with City officials regarding the facility certification of prior contact required). F. Estimated useful life of buildings, equipment or off-site improvements. G. Give brief narrative explaining why project is being undertaken. H. Does the proposed prolect involve, in whole or in part, any of the following: residential real property; sports facilities: commercial property or industrial land development activities? Yes_______ No_______ If yes, please explain. I. Proposed commencement date of acquisition or construction of the public facilities: J. Estimated date on which facilities will: Start construction: Completion date:_________________ K. Attach an initial study for purposes of environmental impact. Will the facilities meet zoning requirements at the proposed location? Has Specific Plan or Tract Map received approval by the City Council? 6 BIB] 09-01-1998-U01 11:16:58AM-U01 ADMIN-U01 CCRES-U02 96-U02 75-U02 ^Mr L. Please list the date; purpose and amount of any of the costs proposed to be financed in connection with the proposed project which have been incurred prior to the date cf this application: Date Purpose Amount M. Please summarize any capital expenditures paid or incurred in La Quinta within the last three 3) years. Ill. COST OF THE PROJECT State the costs reasonably necessary to the acquisition of the site andlor construction of the propsed project together with any m*chinery and equipment necessary or convenient in connection therewith, and including any utlities. access roads or apportionment facilities, A. Land and Facilities 1. Contract Price $________________ 2. Legal, Fiiin* Misc. $________________ 3. Fees, Permits, andlor Taxes $________________ Subtct* $________________ B. Architectural and Engineering C. Construction *o8ts.* 1. Sit* Preparation $_________________ 2. Materials $________________ 3. Construction Contracts $, 4. Labor $_________________ 5. UtihUes Connect.o* Subtotal $_________________ 7 BIB] 09-01-1998-U01 11:16:58AM-U01 ADMIN-U01 CCRES-U02 96-U02 75-U02 ^MrD. Interest during construction $_________________ E. Financing, legal, Miscellaneous From To* $_______________ Please specify) F. Contingency if appropriate) $__________________ TOTAL $_____________ NOTE: Project costs may not include working capital, other than construction loans. Generally, only costS paid or incurred after application is accepted can be reimbursed out of bond proceeds. IV. PL*ASE OUTLINE YOUR DETERMINATION OF VALUE OF THE PROPOSED PROJECT TO BE FINANCED. Att**h re*9nt *nprAi**lRI V. PUBLIC BENEFITS OF PROJECT A description of the public benefits which would occur from undertaking the project. If applicable, information in this section is to be given for both the applicant and all other entities that will be principal users of the facilities). A. Resource Conservation 1. Explanation and documentation of estimated conservation of energy, mineral or natural, cultivated resources arising out of the project. 2. Explanation and documentation of th* reduction of waste, improvement of recovery or intensification of utilization of resources that otherwise would be 1e58 intensively utilized1 wasted or not recovered. B. Other Benefits 1. Will project contribute to the improvement of detrimental environmental factors? 2. Will project contribute to the revitalization of a deteriorated area, or will it increase economic usefulness of an area? B BIB] 09-01-1998-U01 11:16:58AM-U01 ADMIN-U01 CCRES-U02 96-U02 75-U02 ^Mr 3. Estimate of increased local and state taxes, fees and other revenues due to the completion of the project. Attach proposed Special Tax Spread, if available). 4. Estimate of decreases of public service costs by virtue of completion of the project such as decreased welfare or unemployment costs*. VI. PUBLIC DETRIMENT A description of any public detriment from issuance of bonds in the maximum amount proposed in the application. A. Employment displacement will the completion of the project contribute to job displacements. B. Energy, mineral or natural or cultivated resource conservation will the completion of the project lead to increased utilization of resources? 1. Estimate of increased utilization of resources. 2. Estimate of increases in cost to th. public due to increased utilization. C. Does construction of the project* or completion of the project, have any adverse environmental impacts, including additional waste disposal? 1. Estimate of the environmental impacts. 2. Include copies of any required Environmental Impact Reports. PURLICLY HELD COMPANIES Copies of the annual report to stockholders for each of the last three 3) years. If applicable, include copies of any registration statements, prospectuses and 1 *K's filed with the Securities and Exchange Commission within each of the last three 3) years, and copies of the applicant's last 1 *Q and most recent 8-K. 9 BIB] 09-01-1998-U01 11:16:58AM-U01 ADMIN-U01 CCRES-U02 96-U02 75-U02 ^Mr lMPOi*TANT NOTICE TO APPLICANT Approval for financial assistance by City of La Quinta Is determined by the information presented In this application. Any changes in the status of the proposed project from the facts presented herein and the Exhibits attached hereto, could disqualify the project and cause it to be ineligible for financial assistance. In general, commencement of construction or any award of contract for the final acquisition. of the proposed project, prior to formal approval by the City where such construction or acquisition is to be financed by a tax-exempt issue, is likely to resuft in the appilcation being considered ineligible for approval. The following information and schedule must be attached as Exhibits to the application: SCHEDULE A Housing Classification SCHEDULE B Debt Service by Housing Types SCHEDULEC Types of Public Facilities to be Constmctud SCHEDULE D Housing Charactedatics SCHEDULE E Appraisal/Market Value SCHEDULE F Proposed Debt Service Schedule 10 BIB] 09-01-1998-U01 11:16:58AM-U01 ADMIN-U01 CCRES-U02 96-U02 75-U02