1997 03 18 RDA Minutes LA QUINTA REDEVELOPMENT AGENCY
MINUTES
MARCH 1 8, 1 997
Regular meeting of the La Quinta Redevelopment Agency was called to order by
Chairman Sniff.
PRESENT: Board Members Adolph, Henderson, Holt, Perkins, Chairman Sniff
ABSENT: None
PUBLIC COMMENT None
CONFIRMATION OF AGENDA Confirmed
APPROVAL OF MINUTES
MOTION It was moved by Board Members Adolph/Holt to approve Minutes of
February 25 and March 4, 1 997 as submitted. Motion carried unanimously.
BUSINESS SESSION
1. CONSIDERATION OF ADOPTION OF A RESOLUTION TERMINATING THE FIRST
AMENDED AND RESTATED AGREEMENT BETWEEN WILLIAMS DEVELOPMENT
CORPORATION AND THE LA QUINTA REDEVELOPMENT AGENCY.
Mr. Spevacek, consultant with Rosenow Spevacek Group, Inc., advised that
the proposed resolution would terminate the First Restated and Amended
Disposition and Development Agreement with E. G. Williams Development
Corporation. The project*s DDA was adopted in July 1995 and provided for
the Agency to fund up to $4.1 million in financial assistance in the form of
providing the 29-acre site at the cost of $1 and funding up to $3.2 million in
on and off-site infrastructure improvement costs to facilitate the development
of 90 multi-family senior housing units, 60 single-family units, and a five-acre
flood control detention basin. The DDA has been amended two times to
accommodate tax credit financing and to modify the affordability mix of the
project. There are also five implementation agreements for this project to
accommodate changing market conditions and to provide an additional
$510,000 for the construction of infrastructure improvements at the adjacent
elementary school.
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He advised that the 90 senior housing units have affordability covenants and
have been constructed and rented. Approximately 30 single-family units have
been constructed of which 19-are sold and feature affordability covenants and
an additional unit is in escrow. The detention basin has been rough-graded and
some of the evacuation pumping system has been installed* but additional
improvements are still required pursuant to the Specific Plan, Tract Map, and
Conditional Use Permit. Market conditions have resulted in slow sales and on
December 31, 1996, the lender notified the Agency and E. G. Williams
Corporation that the construction loan was in default. On February 6, 1 997,
a Notice of Default was filed by the Agency and the developer was given 30
days to cure the default, but has not done so. Staff recommended that the
Agency terminate the DDA as the Agency has achieved its primary goal and
mission of the project by facilitating the construction of affordable housing
units that have provided the City with 90 multi-family units and 19 single-
family units with affordability covenants. This will free the developer from the
additional requirements of the affordability covenants and permit the project to
be reconfigured to facilitate current market conditions. The resolution will
terminate the DDA and reconvey the Agency*s interest in the unsold units and
undeveloped lots to the developer and release all Agency interest in the
project.
RESOLUTION NO. RA 97-01
A RESOLUTION OF THE LA QUINTA REDEVELOPMENT AGENCY OF THE CITY
OF LA QUINTA, CALIFORNIA, TERMINATING THE FIRST RESTATED AND
AMENDED DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE LA
QUINTA REDEVELOPMENT AGENCY AND THE E. G. WILLIAMS
DEVELOPMENT CORPORATION.
It was moved by Board Members Henderson/Perkins to adopt Resolution No.
RA 97-01 as submitted. Motion carried unanimously.
CONSENT Calendar
Mr. Genovese, Executive Director, asked that Item No.3 be pulled for separate action
given the City Council*s action on this matter
1. APPROVAL OF DEMAND REGISTER DATED MARCH 18, 1997.
2. TRANSMITTAL OF TREASURY REPORT DATED JANUARY 31, 1997.
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3. AUTHORIZATION TO SEND OUT A REQUEST FOR PROPOSALS FOR AUDITING
SERVICES AND APPOINT A SELECTION COMMITTEE.
4. APPROVAL OF A CONTRACT SERVICES AGREEMENT FOR REDEVELOPMENT,
HOUSING, AND ECONOMIC DEVELOPMENT WITH ROSENOW SPEVACEK
GROUP.
MOTION It was moved by Board Members Perkins/Adolph that the Consent
Calendar be approved as recommended with the exception of Item No. 3.
Motion carried unanimously.
Item No. 3.
MOTION It was moved by Board Members Adolph/Holt to renegotiate the
contract with Conrad & Associates for auditing services. Motion carried
unanimously.
*R!MENTREPORTS
1 TRANSMITTAL OF REVENUE & EXPENDITURES REPORT DATED JANUARY 31,
*997.
MOTION It was moved by Board Members Adolph/Holt to receive and file the
Revenue & Expenditures Report dated January 31, 1997. Motion carried
unanimously.
CHAIR AND BOARD MEMBERS* ITEMS None
PUBLIC HEARINGS None
Agency recessed to Closed Session.
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CLOSED SESSION
Board Members Adolph and Holt abstained from participating in closed session due
to a potential conflict of interest.
1. Conference with Agency*s real property negotiator pursuant to Government
Code Section 54956.8, concerning the potential terms and conditions of
acquisition and/or disposition of real property located at the northwest corner
of Highway 111 and Adams Street in the One-Eleven La Quinta Center.
Property Owner/Negotiator: Dick Oliphant.
Agency Board 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.
Respe fully submitted,
NDRA L. JU OLA, Secretary
La Quinta Redevelopment Agency
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