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1994 09 20 RDA Minutes1 LA QUINTA REDEVELOPMENT AGENCY MINUTES September 20, 1994 Regular meeting of the La Quinta Redevelopment Agency was called to order by Chairman Sniff. PRESENT: Board Members Bangerter, McCartney, Pena, Perkins, Chairman Sniff ABSENT: None CONFIRMATION OF AGENDA Confirmed APPROVAL OF MINUTES MOTION It was moved by Board Members Bangerter/Mccartney to approve Minutes of August 2, 1994 as submitted. Motion carried unanimously. MOTION It was moved by Board Members Bangerter/Pena to approve Minutes of August 16, 1994 as submitted. Motion carried with Board Member McCartney abstaining. MOTION It was moved by Board Members Bangerter/Pena to approve Minutes of September 6, 1994 as submitted. Motion carried with Board Member McCartney abstaining. PUBLIC COMMENT None BUSINESS SESSION 1. CONSIDERATION OF A RESOLUTION ACKNOWLEDGING RECEIPT OF THE REDEVELOPMENT PLAN, THE DRAFT ENVIRONMENTAL IMPACT REPORT AND THE PRELIMINARY REPORT FOR AMENDMENT NO.1 TO TIIE LA QUINTA REDEVELOPMENT PROJECT NO. 1 AND AUTHORIZING TRANSMITTAL OF THE DOCUMENTS IN THE MANNER REQUIRED BY LAW. Mr. Spevacek, Rosenow Spevacek Group, Inc., financial consultant, advised that the Agency initiated the process to amend the Redevelopment Project No. 1 in February 1994. Staff requested Council to adopt the proposed resolution which will allow staff to transmit to the Planning Commission, the Project Area Committee, affected taxing agencies and environmental review agencies, the Draft Plan which sets forth the powers and authorities of the Agency, the Preliminary Report which describes the reasons for the plan amendment and the Draft Environmental Impact Report which describes the projected impacts the amendment would have upon the environment. According to the BIB] 07-15-1996-U01 03:03:25PM-U01 RDAMIN-U02 09-U02 20-U02 1994-U02 1Redevelopment Agency Minutes 2 September 20, 1994 planned schedule, staff will be requesting that a joint public hearing of the City Council and Redevelopment Agency be held to consider actions to formally adopt the amendment, probably in January, 1995. RESOLUTION NO. RA 94-16 A RESOLUTION OF THE LA QUINTA REDEVELOPMENT AGENCY ACKNOWLEDGING RECEIPT OF THE REDEVELOPMENT PLAN, THE DRAFT ENVIRONMENTAL IMPACT REPORT AND THE PRELIMINARY REPORT FOR AMENDMENT NO.1 TO THE LA QUINTA REDEVELOPMENT PROJECT NO.1 AND AUTHORIZING TRANSMITTAL OF THE DOCUMENTS IN THE MANNER REQUIRED BY LAW. It was moved by Board Members Bangerter/Pena to adopt Resolution RA 94-16 as submitted. Board Member McCartney referred to Pages 97 and 98 of the Draft EIR regarding recycling and diversion programs and noted that currently the City doesn't know how much is being diverted from the landfill and the figures listed are estimates only. Motion carried unan?mously. 2. TRANSMITTAL OF TREASURER'S REPORT DATED JULY 31, 1994. MOTION It was moved by Board Members Pena/Bangerter to receive and file the Treasurer's Report dated July 31, 1994. Motion carried unanimously. CONSENT CALENDAR APPROVAL OF DEMAND REGISTERS DATED AUGUST 16, SEPTEMBER 6 AND 20, 1994. 2. ACCEPTANCE 01, WHITEWATER/WASHINGTON STREET BRIDGE IMPROVEMENTS, PROJECT NO.92-3. MOTION It was moved by Board Members McCartney/Pena that the Consent Calendar be approved as submitted. Motion carried unanimously. DEPARTMENT REPORTS None BIB] 07-15-1996-U01 03:03:25PM-U01 RDAMIN-U02 09-U02 20-U02 1994-U02 1Redevelopment Agency Minutes 3 September 20, 1994 CHAIR AND BOARD MEMBER'S ITEMS None JOINT PUBLIC HEARINGS WITH THE CITY COUNCIL CONSIDERATION OF RESOLUTION APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE AGENCY AND BUILDING HORIZONS. Board Member Bangerter abstained from this issue due to a conflict of interest and left the dais. Mr. Spevacek, Rosenow Spevacek Group, Inc., financial consultant to the City, advised that, on August 16, 1994, staff had been directed to negotiate with representatives of the Building Horizons Group, an affiliate of the Boys and Girls Club of Coachella Valley, who had requested assistance from the City to facilitate the construction of single-family homes in the Cove. The proposed resolution would approve the Disposition and Development Agreement which generally puts their proposal in place. The agreement requires the following from the Agency: 1) to acquire two lots in the Cove, one of which is owned by the Agency and the other is in acquisition negotiations, with an estimated value of $40,000; 2) to provide up to $85,000 in construction-financing assistance to facilitate the construction of these two single-family homes. The two homes will be approximately 1400 square feet and designed in conformance with all City development standards and upon completion will be sold on the open-market to moderate-income household families for approximately $105,000 each. The funds will be repayed to the Agency when the homes are sold, at which time, the Agency will provide second-trust deeds for a term of approximately 33 years to insure that the two homes are sold at a cost affordable to moderate-income household families. The Building Horizons program is designed to teach junior and senior high-school students the construction trade. Mr. Scott Jones, Program Director for Building Horizons, Inc., said 39 students are currently enrolled in the program with three more applications received recently and both school districts have approved the curriculum. In response to Board Member Mccartney, Mr. Jones advised that they are ready to begin construction immediately and the program will last for the nine-month school year, expecting completion of the homes in mid-May. The Chairman declared the PUBLIC HEARING OPEN. There being no one wishing to speak, the Chairman declared the PUBLIC HEARING CLOSED. BIB] 07-15-1996-U01 03:03:25PM-U01 RDAMIN-U02 09-U02 20-U02 1994-U02 1Redevelopment Agency Minutes 4 September 20, 1994 RESOLUTION NO. RA 94-17 A RESOLUTION OF THE LA QUINTA REDEVELOPMENT AGENCY APPROVING AND AUTHORIZING THE EXECUTION OF THE DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE LA QUINTA REDEVELOP?NT AGENCY AND BUILDING HORIZONS, INC. AND MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH. It was moved by Board Members McCartney?Pena to adopt Resolution RA 94-17 as submitted. Motion carried with Board Member Bangerter abstaining. 2. CONSIDERATION OF RESOLUTION APPROVING THE FIRST AMENDED AND RESTATED DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE CITY AND WILLIAMS DEVELOPMENT COMPANY AND MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH. Mr. Spevacek, Rosenow Spevacek Group, Inc., financial consultant; advised that, on July 5, 1994, the Agency and City Council approved a Disposition and Development Agreement DDA) with Williams Development Corporation, which facilitated the construction of 62 single-family homes, 91 senior citizen multi-family apartments, a five- acre park retention basin, and related infrastructure improvements, on 23.23 acres located north of Calle Tampico and east of Desert Club Drive. Part of the funding structure involved the developer seeking tax-credit financing from the California Tax Allocation Board which will provide up to 40% of the funding necessary to construct the senior citizen housing component. In order to receive the allocation, certain modifications to the DDA are required. The first modification is a reduction of single-family units from 62 to 60, because the engineered Site plan shows that only 60 units will fit on the site. This modification will result in a concurrent reduction in the number of moderate-income units in the project from 42 to 40. It may also result in a reduction of needed funding from the Agency of $16,000. The second modification is a reclassification of one of the 91 multi-family units to a caretaker unit versus a rental unit. Modifications were made to definitions to allow for a road easement to be transferred to the developer, to be dedicated back to the City upon completion of road improvements, as well as other definitions which fit the tax-credit financing. The most substantial modification is requiring the developer to obtain letters of intent versus the binding construction- financing commitments previously required in the DDA. The developer is unable to obtain binding commitments unless he has possession of the property. The City will continue to be protected under the DDA by the Deed of Trust and Promissory Note that will be executed, which provides the Agency with a means to gain control of the property should the developer fail to follow through with his commitments. BIB] 07-15-1996-U01 03:03:25PM-U01 RDAMIN-U02 09-U02 20-U02 1994-U02 1Redevelopment Agency Minutes 5 September 20,1994 In response to Board Member Bangerter, Mr. Spevacek clarified that the proposed modifications does not change the manner in which the Agency would recover the property if necessary. Ms. Honeywell, City Attorney, advised that the purpose in transferring the property ownership earlier in the process is because the Tax Credit Allocation Board requires the developer to own the property at a point during their evaluation which is earlier than when a lender usually will give a final commitment on a loan. The Chairman declared the PUBLIC HEARING OPEN. There being no one wishing to speak, the Chairman declared the PUBLIC HEARING CLOSED. RESOLUTION NO. RA 94-18 A RESOLUTION OF THE LA QUINTA REDEVELOPMENT AGENCY APPROVING AND AUTHORIZING THE EXECUTION OF TIlE FIRST RESTATED AND AMENDED 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. It was moved by Board Members PenA/mCcartney to adopt Resolution RA 94-18 as submitted. Motion carried unanimously. CLOSED SESSION None There being no further business, it was moved by Board Members McCartney/Bangerter to adjourn. Motion carried unanimously. Resp?ctfillly submitted, UNDRA L. JUHOLA, Secretary La Quinta Redevelopment Agency BIB] 07-15-1996-U01 03:03:25PM-U01 RDAMIN-U02 09-U02 20-U02 1994-U02