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6?t? 6OURCil
en?
CHY COUNCIL CHAMBER
78495 Calle Tampico
La Quinta, California 92253
Special Meeting
June 28, 1994 12:00 P.M.
CALL TO ORDER Beginning Res. No.94-43
a. Pledge of Allegiance Ord. No.253
b. Roll Call
CONFIRMATION OF AGENDA
PUBUC COMMENT
BUSINESS SESSION
1. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA APPROVING AND
AUTHORIZING THE EXECUTION OF THE DISPOSITION AND DEVELOPMENT AGREEMENT
BY AND BETWEEN THE LA QUINTA REDEVELOPMENT AGENCY AND E.G. WILLIAMS
DEVELOPMENT CORPORATION AND MAKING CERTAIN FINDINGS IN CONNECTION
THEREWITH.
A) RESOLUTION ACTION.
Cu)SED SESSION
1. Discussion of negotiations with the La Quinta City Employees Association pursuant to
Government Code Section 54957 Meet and Confer Process.
M)JOURN]NT
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ing -> 10 DECLARA1ON OF PO?HNG
I, Saundra L. Juhola, City Clerk of the City of La Quinta, California, do hereby declare that the foregoing agenda
for the Special City Council meeting of June 28,1994 was posted on the outside entry to the Council Chatnber, 78-
495 Calle Tampico and on the bulletin board at the La Quinta Chamber of Commerce on Friday, June 24, 1994.
DATED: June 24 1994
SAUNDRA L. JUHOLA, City Clerk
City of La Quinta, California
PUBLIC N?CE
The La Quinta City Council Chamber is handicapped accessible. If special equipment is needed for the
hearing impaired, please call the City Clerk's Office at 777-7025, 24-hours in advance of the meeting and
accommodations will be made.
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CITY COUNCIL
MEETING DATE: June 28,1994 AGENDA CATEGORY:
BUSINESS SESSION: I
ITEM TITLE: Resolution of the
City Council of the City of CONSENT CALENDAR:
La Quinta Approving and
Authorizing the Execution of STUDY SESSION:
the Disposition and
Development Agreement by and PUBLIC HEARING:
Between the La Quinta
Redevelopment Agency and
E.G. Williams Development
Corporation and Making Certain
Findings in Connection
Therewith
RECOMMENDATION:
Move to adopt Resolution 94- approving and authorizing the
execution of the Disposition and Development Agreement by and
between the La Quinta Redevelopment Agency and E.G. Williams
Development Corporation.
FISCAL IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
In December of 1993, the La Quinta Redevelopment Agency approved
a Memorandum of Understanding MOU") with E.G. Williams
Development Corporation Developer") that set forth the business
points of an Affordable Housing Project Project"). Said Project
involves the development of 62 single-family homes to be sold to
very low, low, and moderate income owner-occupied households, and
91 multifamily apartments to be rented exclusively to very low and
low income senior citizen households. At the same meeting, the
Agency Board also approved a Purchase and Sale Agreement between
the Agency and Landmark Land Company/Resolution Trust Corporation
RTC"). The Purchase and Sale Agreement provided for Agency
acquisition of an approximately 35.23-acre site Site") located
north of Calle Tampico, east of the extension of Desert Club Drive,
in the Village of La Quinta. The Site is proposed to be developed
with the Project, a flood control detention basin, and an
elementary school to be constructed by Desert Sands Unified School
* District on 10.0 acres). The Site purchase escrow closed on June
13, 1994; the total Site purchase cost was $1,225,000.
* 1
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ing -> 10Subsequent to the above actions, Agency staff, legal counsel, and
Developer representatives pursued the drafting of a Disposition and
Development Agreement DDA") that would implement the Project.
Attachment 1 to this report presents a Summary Report on the DDA,
and Attachment 2 embodies the DDA. The DDA provides for the
conveyance of up to 25.23 acres of the Site to the Developer for
the construction of the Project and the 5-acre flood control
detention basin. Said property will be conveyed for a price of
$1.00; the total value of the property to be conveyed, established
at the purchase price the Agency paid for the Site, is $877,016.
Further, the DDA provides an additional $3,654,414 in financial
assistance to construct on-site and off-site infrastructure
improvements, and the flood control detention basin, which are
required to facilitate Project development. Both the Site purchase
and infrastructure assistance costs will be funded by the Agency's
low and moderate income housing fund.
The single-family ownership housing will be sold to 10 very low
income, 10 low income, and 42 moderate income households at costs
affordable to said households; the DDA establishes the prices for
the three product types of $106,900, $111,900, and $115,900. The
91 rental housing dwellings will be leased to 44 very low income,
31 low income, and 16 moderate income households. First-year unit
rents will range from $341 to $500 per month. All of the 153 units
will feature affordability covenants that will maintain each unit's
affordability to the applicable household income level for a 35-
year term.
Due to the different financing requirements for the ownership and
rental housing components, the DDA provides for the conveyance of
either, or all, of the sites required for the development of the
particular housing type. For example, the DDA provides that the
ownership housing and detention basin parcels may be conveyed to
the Developer, and the Developer can then access the applicable on-
and off-site infrastructure assistance. Additionally, as an
alternative the DDA provides that the rental housing parcel may be
conveyed, with the corresponding amount of on- and off-site
infrastructure assistance then provided. The final alternative is
one in which the DDA provides that the entire 25.23-acre site may
be conveyed with the corresponding infrastructure assistance then
provided.
The reason for incorporating the three conveyance options is that
the Developer is seeking Low Income Housing Tax Credit equity to
assist in the construction of the rental housing. Tax credits are
subject to state allocation, which occurs once or twice a calendar
year. The Developer will be submitting an application for the July
1, 1994 cycle; however, if the Developer is not successful, the
next application period is planned to be the first quarter of 1995.
Without tax credit equity, the rental housing component cannot
feature the number of very low and low income units without
additional Agency assistance.
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ing -> 10Environmental Assessment #94-274 has been completed. Based upon
this assessment, it has been determined that the proposed agreement
will not have a significant adverse impact on the environment. A
Negative Declaration of Environmental Impact is recommended for
adoption.
FINDINGS AND ALTERNATIVES:
A total of $4,531,430 $877,016 in land and $3,654,414 in
improvements) would be provided to the Developer through the DDA
for this Project. In return, the Agency will receive the
following: 54 ownership and rental dwellings that would be
affordable to very low income family/senior households; 41
ownership and rental dwellings that would be affordable to low
income family/senior households; 58 ownership and rental dwellings
that would be affordable to moderate income family/senior
households; a 5-acre detention basin that would service the flood
control needs of the Project, and potentially the greater Cove
area; and the off-site infrastructure improvements required for the
construction of an elementary school on a 10-acre parcel contiguous
to the Project site. Agency staff and School District
representatives are finalizing negotiations that will lead to
District acquisition of the 10-acre parcel, and District funding of
school site related off-site improvements.
Alternatives to the Project proposal as provided for in the DDA are
as follows:
Reduce the amount of very low and low income dwelling units
to be provided for by the Project which would concurrently
reduce the required amount of Agency assistance. Doing this
would lower Agency expenditures; however, this would also
reduce the number of very low and low income units that
feature affordability covenants) the Agency would cause to be
developed. Pursuant to the Redevelopment Law, the Agency has
set criteria it must achieve to promote the production of
residential dwellings affordable to very low and low income
households. Through the DDA, the Agency achieves the maximum
number of very low and low income affordable dwellings in a
cost effective manner, and within the legal parameters
prescribed by state law.
city of La Quinta
Attachments:
1. Summary Report
2. Disposition and Development Agreement DDA")
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