1993 02 16 RDA Minutes LA QUINTA REDEVELOPMENT AGENCY
MINUTES
FEBRUARY 16, 1993
Regular meeting of the La Quinta Redevelopment Agency was called to
order by Mayor Pena.
PRESENT: Mrs. Bangerter, Mr. Mccartney, Mr. Perkins, Mr. Sniff,
Chairman Pena
ABSENT: one
CONFIRMATION OF AGENDA
Ms. Honeywell, Legal Counsel, asked that a Closed Session item
regarding the County of Riverside withholding tax-increment payment
under potential litigation pursuant to Government Code Section
54956.9 and the matter of the WES Disposition and Development
Agreement and acquisition of properties in the Cove be added to the
Closed Session agenda under negotiations pursuant to Government
Code Section 54956.8
MOTION It was moved by Mr. Sniff, seconded by Mrs. Bangerter that
the matters pertaining to the WES DDA and County of Riverside be
added to the Closed Session agenda as outlined. Motion carried
unanimously.
PUBLIC COMMENT None
BUSINESS SESSION
1. APPROVAL OF CONTRACT CHANGE ORDER FOR IRRIGATION SYSTEM
RELOCATION CALLE TAMPICO IMPROVEMENTS.
Mr. Speer, Ass't. City Engineer, advised that there was a 20'
wide swath of the date grove on Tampico at the northeast
corner of Eisenhower that was given to the City by the Fritz
Burns Foundation. There were trees on it which were sold and
after we started construction, it was discovered there as a
private irrigation system in the portion of land that was
given to the City. In order to keep the irrigation system
functional, there is a need to modify it. The Contract Change
Order is in the amount of $39,195.00, which is within the 10%
contingency allocated for this project.
Mr. Sniff questioned the type and size of line and Mr. Speer
recommended that this matter be continued so he could research
those questions.
The Board concurred.
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Redevelopment Agency Minutes 2 February 16, 1993
2. CONSIDERATION TO APPROPRIATE ADDITIONAL FUNDING TO THE PHASE
IV COVE IMPROVEMENT PROJECT TO COVER COSTS INCURRED DURING
CONSTRUCTION.
MOTION It was moved by Mr. Sniff, seconded by Mr. Mccartney
to appropriate the additional funding to the Phase IV Cove
Improvement Project for costs incurred during construction.
Motion carried unanimously.
3. CONSIDERATION OF AFFORDABLE HOUSING AGREEMENT WITH COACHELLA
VALLEY LAND REGARDING PROVISION OF LOW MODERATE HOUSING IN THE
COVE.
Chairman Pena and Mrs. Bangerter left the dias advising that
they would be abstaining due to conflicts of interest.
Mr. Genovese, Interim Executive Director, advised that this
item entails the funding of thirty 30) units, 20 of which are
rental and 10 of which are home-buyer.
Frank Spevacek, presented a map of the Cove depicting the
locations of the 20 rental units and the 10 for-sale
properties. This is a two-component program. The first
component would involve 10 for-sale units where the Agency
will be providing a subsidy of up to $7,000 per unit to cover
closing costs and dawn-payment assistance. CVL and Bill
Cusack own all 10 of these units and will be selling them to
moderate-income households. The assistance will be provided
in he form of a second trust-deed in which principal and
interest payments would accrue until the units are sold. At
that time, when the first home-buyer that steps up and
purchases the unit sells the unit, the Agency will get the
principal and interest back along with an additional seven
percent 7%) of the units' appreciation for that time-frame.
The program component will involve a total cost of $70,000 to
the Agency with each $7,000 increment being funded as each
unit closes.
The second component involves twenty 20) units that will be
a part of a Section 8 rental subsidy program. Those units
will be rented to very-low income households that would also
qualify for Housing Authority Section 8 Certificates. With
this program component, the Agency will provide $20,000 per
unit for a total of $400,000 that would also be issued in the
form of a second trust-deed that would be repaid once the
program is completed within five years. Principal and
interest repaid or pledged toward purchase of the units if the
Agency elected to buy the units for additional housing
programs. That will earn the Agency approximately $587,000
over the life of the five-year term of the loan in principal
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Redevelopment Agency Minutes 3 February 16, 1993
and interest. This component also involves a $2,000 per year
subsidy for its property management and maintenance. CVL will
continue to own the units, rent them and maintain them for the
life of the agreement.
The agreement provides that the Agency will, on an annual
basis, look at the cost of the renting and maintenance cost of
these rental units and then provide up to $2,000 per unit per
year or a subsidy between the actual costs and the limit set-
forth. That program component could cost an additional
$200,000 to the Agency over the same five-year program.
Mr. Perkins questioned the definition of very-low income" and
Mr. Spevacek advised that it's based on a family that earns
50% or less of the median income for Riverside County. Based
upon a family of four that would be a family earning $18,300
annually.
Mr. Perkins questioned the City's requirements and what it
presently has and Mr. Spevacek advised that they are currently
putting together a comprehensive housing plan. Currently, it
appears that during a 40-year period we have to make
approximately 4,000 units available to very-low, low and
moderate-income households. To date, we have approximately 15
units that would give us credit toward that 4,000.
Mark Huebsch, Agency Counsel, pointed Out that we're dealing
with vacant property, so we don't expect to have any
replacement housing issues. He noted that if approved, at the
next meeting of the Council, they will be asked to approve a
resolution that will give the Agency the flexibility to use
not only the housing set-aside funds from Project Area No. 1,
but also from Project Area No. 2.
Bill CuSack, General Partner of C. V. Land, advised that this
has been a very complex issue to put together and complimented
the City's legal counsel and consultants on the work they've
done.
RESOLUTION NO. RA 93-1
A RESOLUTION OF THE LA QUINTA REDEVELOPMENT AGENCY APPROVING
AN AFFORDABLE HOUSING AGREEMENT WITH COACHELLA VALLEY LAND, A
CALIFORNIA LIMITED PARTNERSHIP AND WILLIAM J. CUSACK
PERTAINING TO PROPERTY LOCATED IN THE LA QUINTA REDEVELOPMENT
PROJECT AND PROJECT NO. 2 OF THE CITY OF LA QUINTA AND
AUTHORIZING THE EXECUTION OF SAID AGREEMENT.
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Redevelopment Agency Minutes 4 February 1?, 1993
It was moved by Mr. Perkins, seconded by Mr. Mccartney that
Resolution No. RA 93-1 be adopted. Motion carried with
Chairman Pena and Mrs. Bangerter absent.
4 TRANSMITTAL OF TREASURER'S REPORT DECEMBER 31, 1992.
MOTION It was moved by Mr. Perkins, seconded by Mrs.
Bangerter that the Treasurer's report dated December 31, 1992
be received and filed. Motion carried unanimously.
BUSINESS SESSION NO. 1.......continued?.......
Mr. Speer advised that the pipe that will be installed at
$25.00 per lineal foot is 12' PVC. The existing pipe is
thought to have been concrete mortar-lined pipe, which is not
salvageable. The valves should be at a not-to-exceed amount of
$405. We will pay the material cost plus the allowed mark-up
in the specifications and then a fixed fee for the labor.
MOTION It was moved by Mr. Sniff, seconded by Chairman Pena
to approve the Contract Change Order for the irrigation system
relocation on Calle Tampico Improvements Project No. 92-12
in an amount not to exceed $39,195. Motion carried
unanimously.
CONSENT CALENDAR
1. APPROVAL? OF DEMAND REGISTER DATED FEBRUARY 16, 1993.
2. AWARD OF BID FOR PROJECT NO. 93-01 SEWER CONNECTIONS TO LOW
BIDDER HENDRICKSON CONSTRUCTION, INC.
MOTION It was moved by Mr. Sniff, seconded by Mrs. Bangerter
to approve the Consent Calendar as recommended. Motion
carried unanimously.
DEPARTMENT REPORTS
Transmittal of Statement of Financial Position December
31, 1992.
PUBLIC HEARINGS None
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Redevelopment Agency Minutes 5 February 1?, 1993
CLOSED SESSION
a. Discussion of negotiations pursuant to Government Code Section
54956.9
Riverside County
b. Discussion of negotiations pursuant to Government Code Section
549S6 B
WES Disposition and Development Agreement and Acquisition
of Properties in the Cove
Council reconvened to regular session.
Mark Huebsch of Stradling, Yocca, Carlson & Rauth, Agency Legal
Counsel and Frank Spevacek, Principal of Rosenow, Spevacek Group
RSG) Agency Consultants, returned to make a report to the Agency
regarding their discussion with Mr. Walt Stockman regarding certain
issues.
MOTION It was moved by Mr. Sniff, seconded by Mr. Mccartney that
regarding six 6) housing units proposed for sale Saldivar,
Rigney, Aguilar, Ferrarro, Bliss, and Perez) the Agency and the
Developer would split the costs excess to the housing ost that
would be affordable for the particular homebuyers in questions; the
assistance provided by the Agency would be reallocated from the
total already approved by the Agency in respect to the WES
transaction; the staff was authorized and directed to negotiate an
amendment to implement the details of this motion; the Executive
Director was directed to proceed to close the six 6) units at the
earliest feasible time consistent with the terms of the existing
agreement including without limitation provisions relating to
affordable housing costs); the Executive Director, Attorneys, and
Consultants were directed to proceed to close the transactions
without necessity of formalizing an agreement, which agreement was
to be brought back to the Agency Board at a later time for
ratification.
Mr. Stockman indicated that the motion was acceptable in substance
to him.
Motion carried with Mrs. Bangerter not present, having been excused
prior to consideration of the Stockman item.
There being no further business, the meeting was adjourned.
AUNDRA L. JUHOLA Secretary
La Quinta Redevelopment Agency
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