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1996 03 19 RDA Minutes LA QUINTA CITY REDEVELOPMENT AGENCY MINUTES March 19, 1996 Regular meeting of the La Quinta Redevelopment Agency on March 19, 1996 was called to order at the hour by Chairman Sniff. PRESENT: Board Members Adolph, Henderson, Holt, Perkins, Chairman Sniff ABSENT: None CONFIRMATION OF AGENDA Confirmed APPROVAL OF MINUTES MOTION It was moved by Board Members Adolph/Perkins to approve the Redevelopment Agency Minutes of March 5, 1996 as submitted Motion carried unanimously. PUBLIC COMMENT None BUSINESS SESSION 1. CONSIDERATION OF RETENTION OR SALE OF AGENCY-OWNED PROPERTY ON 50 DIFFERENT PARCELS OF LAND THROUGHOUT THE COVE EXACT ADDRESSES ARE ON FILE IN THE CITY CLERK'S OFFICE). Mr. Herman, Community Development Director, advised that in 1995 the Redevelopment Agency purchased 50 single-family homes from Coachella Valley Land for the purpose of reserving them as rental units for very-low income Section 8 households. Since their purchase, RSG has handled the management and maintenance of the units for the Agency. Ten of the fifty units are currently vacant, but five are expected to be rented by the end of the month.. Staff asked for direction on whether the Agency wished to continue managing the units or sell them to qualified very-low income households as the units become vacant. He advised that the establishment of a housing authority or community development commission should be considered should the Agency wish to continue the rental program. He also advised that the Agency should consider distributing a request for proposals to qualified property management firms to determine if it would be more cost effective to contract out the management and maintenance services. BIB] 07-02-1996-U01 12:24:55PM-U01 RDAMIN-U02 03-U02 19-U02 1996-U02 Redevelopm?nt Agency Minutes 2 March 9, 1996 In response to Board Member Adolph, Mr. Spevacek, of Rosenow, Spevacek Group, advised that the properties were purchased when C. V. Land went into bankruptcy and an unsuccessful attempt was made to get C. V. Land to rectify some of the maintenance problems since they were responsible for the properties not being properly maintained during their ownership. In response to Board Member Adolph, Ms. Honeywell, Agency Counsel, advised that not having a specific timeframe in mind beyond a few years to sell the properties would be considered a long-term basis." She advised that one section of redevelopment law speaks of properties not being owned by the Agency beyond one year, pointing out that the Agency is not intended for long-term property ownership business and that a plan to prepare and distribute an RFP during the next year for the purpose of transferring ownership of these properties would verify intent to sell. Board Member Henderson wasn?t sure that the City should be competing with the private real estate market at the present time. In response to Board Member Perkins, Mr. Spevacek advised that staff anticipated that these units would remain very-low income household units and, therefore, recommends that they be sold to qualified very-low income households as they become vacant and as the market is able to accept them. He advised that in order for it to be profitable for a local property management firm they would need a minimum dollar amount needs to be generated and that number is 50 units. Therefore, property management maintenance costs will increase as units are sold because of their would be less units generating income. Staff recommended that the Agency consider selling the units as qualified buyers become available; continue renting the units with Section 8 certificates in order not to compete with the real estate market; circulate an RFP to find out if it would be more cost effective to utilize a property management service, and consider either a housing authority or community development commission to avoid legal challenges that the Agency is in the long-term-basis" property management business. Board Member Perkins asked if it was likely that potential home buyers of these units would fail to qualify for the purchase of other homes in the Cove to which Mr. Spevacek responded yes. In response to Board Member Henderson, Mr. Spevacek advised that the sale of these units would be recorded at 75,000-?8O,0OO, not reflecting the Agency's housing subsidy, therefore, not affecting appraisal values. BIB] 07-02-1996-U01 12:24:55PM-U01 RDAMIN-U02 03-U02 19-U02 1996-U02 Redevelopment?nt Agency Minutes 3 March 19, 1996 In response to Board Member Perkins, Mr. Spevacek advised that he didn't see a market problem with the units being sold a few at a time over a six-month period. However, he advised that formation of a housing authority or community development commission should be considered if the Agency wishes to continue in the rental business. He advised that the units were purchased under the premise that they would be sold whenever possible. In response to Board Member Adolph, Mr. Spevacek advised that a lease- purchase program could be considered, but he wasn't sure that it would deal with the ownership circumstance nor was he sure how it would work with the Section 8 housing program. MOTION- It was moved by Board Members HoltlPerkins to maintain the rental housing program and continue to rent these units to Section 8 certificate very- low income households; and to sell these units as they become vacant to qualified very-low income households; and to consider establishment of either a housing authority or a community development commission who would retain title to these properties; and to circulate a request for proposals to qualified property management firms to determine if it is more cost effective to contract out property management and maintenance services. Mr. David Galvan, 54-510 Tyler Street, Thermal, commented that as a potential homebuyer, he wouldn't want home values to decrease in the Cove because of a second on his home. As a first time homebuyer in his family, he stated that he would like to live in La Quinta and if he's able to purchase one of these homes, he hopes to be able to renovate it in the future to increase its value. Motion carried unanimously. CONSENT CALENDAR APPROVAL OF DEMAND REGISTER DATED MARCH 19, 1996. 2. TRANSMITTAL OF TREASURY REPORT DATED JANUARY 31, 1996. MOTION It was moved by Board Members Perkins/Holt to approve the Consent Calendar as recommended. Motion carried unanimously. BIB] 07-02-1996-U01 12:24:55PM-U01 RDAMIN-U02 03-U02 19-U02 1996-U02 Redevelopment Agency Minutes 4 March 19, 1996 DEPARTMENT REPORTS 1. TRANSMITTAL OF REVENUE AND EXPENDITURES REPORT DATED JANUARY 31, 1996. MOTION- It was moved by Board Members Adolph/Holt to receive and fire the Revenue and Expenditures Report dated January 31, 1996. Motion carried unanimously. CHAIR AND BOARD MEMBERS' ITEMS None PUBLIC HEARINGS None The Agency recessed to Closed Session. CLOSED SESSION 1. Conference with Agency's real property negotiator pursuant to Government Code Section 54956?8, concerning potential acquisition and/or disposition of property, including terms and conditions. located at the southwest corner of Dune Palms Road and Highway 111. Property Owner Negotiator: Lee & Associates. Council reconvened with no decision being made which requires reporting pursuant to Section 54957.1 of the Government Code Brown Act). There being no further business, the meeting was adjourned. Re ctfully submitted, AUNDRA L JUHOLA Secretary La Quinta Redevelopment Agency BIB] 07-02-1996-U01 12:24:55PM-U01 RDAMIN-U02 03-U02 19-U02 1996-U02