RDA Resolution 1996-002^#$ II
RESOLUTION RA 96-02
A RESOLUTION OF THE LA QUINTA
REDEVELOPMENT AGENCY APPROVING A FIRST
AMENDMENT TO THE FIRST Restated AND
AMENDED DISPOSITION AND DEVELOPMENT
AGREEMENT BY AND BETWEEN LA QUINTA
REDEVELOPMENT AGENCY AND E.G, WILLIAMS
DEVELOPMENT CORPORATION
WHEREAS, the Agency and the Developer entered into a Disposition and Development
Agreement, dated September 20, 1994 the DDA"), a copy of which is on file as a public record with
the City Clerk of the City of La Quinta and which is incorporated herein by reference; and
WHEREAS, the Agency and the Developer entered into a First Restated and Amended
Disposition and Development Agreement dated the 3Oth day of September, 1994 First Restated and
Amended DDA"), a copy of which is on file as a public record with the City Clerk of the City of La
Quinta and which is incorporated herein by reference; and
WHEREAS, the Agency and the Developer entered into a First Implementation Agreement
dated the 1*h day of June, 1995 and a Second Implementation Agreement dated the 5th day of July,
1995 collectively referred to as the Implementation Agreements"), copies of which are on file as
public record with the City Clerk of the City of La Quinta and are incorporated herein by reference;
and
WHEREAS, the Developer and the Agency are proceeding to perform their respective
obligations pursuant to the First Restated and Amended DDA; and
WHEREAS, the Developer and the Agency desire to enter into a First Amendment to the
First Restated and Amended DDA to modif* the First Restated and Amended DDA to provide for
a portion of the units to be sold at market rate without affordability restrictions thereby allowing a
greater number of low income units to be produced; and
WHEREAS, the approval and execution of the First Amendment will facilitate the orderly
completion of improvements by the Developer as contemplated in the First Restated and Amended
DDA and in furtherance of the Redevelopment Plan for Project Area No.1 the Redevelopment
Plan"); and
WHEREAS, the Agency is authorized to use tax increment revenues to increase, improve,
and preserve the community's supply oflow- and moderate-income housing available at affordable
housing cost pursuant to Health and Safety Code Section 33334.2; and
WHEREAS, the Agency and the City Council of the City of La Quinta have conducted a duly
noticed joint public hearing regarding the proposed acquisition and disposition of real property in
accordance with California Health and Safety Code Sections 33431 and 33433; and
3FEB19.3
BIB]
11-03-1997-U01
03:14:38PM-U01
ADMIN-U01
RDARES-U02
96-U02
02-U02
^#$ I
Resolution RA 96-02
WHEREAS, the staff report pertaining to the First Amendment, which has been on display
prior to the joint public hearing in accordance with Section 33433 of the California Health and Safety
Code Section 33433, contains a detailed description of the provisions of the Amendment;
NOW, THEREFORE, the La Quinta Redevelopment Agency does resolve as follows:
Section 1. The environmental review of a Negative Declaration for the original project
approval remains adequate.
Section 2. The Agency flirther finds and determines that: a) the approval of the First
Amendment will promote the objectives of the Redevelopment Plan and promote the health, safety
and welfare of the citizens of the City of La Quinta; 1,) the Amendment is consistent with the orderly
development of the improvements to be provided by the Developer pursuant to the First Restated and
Amended DDA; and c) the Amendment provides for the enhanced ability for low to moderate
income individuals to purchase a newly developed unit to increase the community's supply of low to
moderate units pursuant to Health and Safety Code Section 33334.2.
Section 3. The Agency approves the First Amendment in the form of Exhibit A" and
authorizes and directs the Chairman and Secretary to execute that First Amendment and such other
documents as may be determined by Agency Counsel to be necessary or appropriate to effectuate the
Amended and Restated DDA as now flirther amended.
PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta
Redevelopment Agency, held on this 5th day of March, 1996, by the following vote, to wit:
AYES: Board Members Adolph, Henderson, Perkins, Chairman Sniff
NOES: None
ABSENT: Board Member Bangerter
ABSTAIN: None
ATjST*,*
4RAL)*)*retary
La Quinta Redevelopment Agency
APPROVED AS TO FORM
i*
DAWN HONEYWELL, Agency Counsel
La Quinta Redevelopment Agency
3FEB19.3
BIB]
11-03-1997-U01
03:14:38PM-U01
ADMIN-U01
RDARES-U02
96-U02
02-U02
^#$ I
REPORT ON THE FIRST AMENDMENT TO THE
FIRST RESTATED AND AMENDED
DISPOSITION AND DEVELOPMENT AGREEMENT
BETWEEN
THE LA QUINTA REDEVELOPMENT AGENCY
AND
E.G. WILLIAMS DEVELOPMENT CORPORATION
TO IMPLEMENT AN AFFORDABLE HOUSING PROJECT
March 5, 1996
INTRODUCTION
This document is a report on the First Amendment to the First Restated and Amended Disposition
and Development Agreement Amended DDA") between the La Quinta Redevelopment Agency
Agency") and E.G. Williams Development Corporation Developer"). The purpose of the
Amended DDA is to modi* the First Restated and Amended Disposition and Development
Agreement between the Agency and Developer that was executed on September 30, 1994 DDA"),
and would provide for up to fifteen 15) of the units to be sold at market prices without affordable
restrictions. Further, flinds repaid to the Agency from the sale of the Market Rate Units would be
pledged to flind additional second trust deed mortgages for low income home buyers.
The DDA established a contractual obligation between the Agency and Developer to facilitate the
construction of a 15-unit residential development, a five acre flood control detention basin, and
related infrastructure improvements Project"). The residential development includes 91 senior
citizen multi-family rental dwellings, that feature rents affordable to very low income households,
and 60 single family dwellings that are being sold to very low, low, and moderate income home
buyers.
This Report generally describes the Project and the modifications to the DDA as presented in the
Amended DDA. Included as an attachment is the flill text of the Amended DDA Attachment A).
THE AFFORDABLE PROJECT
On June 13, 1994, the Agency acquired 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.
Approximately * 0.0 acres of the Site was conveyed to Desert Sands Unified School District, upon
which an elementary school is under construction. The remaining 25.23 acres was conveyed to the
Developer for the construction of 60 single-family homes, 91 multi-family apartments, and a five
acre flood control detention basin. The single-family dwellings are being sold to very low, low, and
moderate income owner-occupied households, and the multi-family units are being rented
exclusively to very low and low income senior citizen households. In order to achieve affordable
2WILL.2DDA
BIB]
11-03-1997-U01
03:14:38PM-U01
ADMIN-U01
RDARES-U02
96-U02
02-U02
^#$ housing costs for the targeted households, the DDA flirther provided for Site conveyance to the
Developer for a price of $1.00; the total value of the property, established at the purchase price and
related costs the Agency incurred to acquire the Site was $877,016. Further, the DDA provided an
additional $3,654,414 in financial assistance to construct both on- and off-site infrastructure
improvements, and the flood control detention basin; all of these improvements are required to
facilitate Project development. Both the Site purchase and infrastructure assistance costs were
flinded through the Agency's Low and Moderate Income Housing Fund.
To date, the Developer has constructed 33 of the 60 single family dwellings; of these, seven 7) units
have been sold and are occupied. The Developer has also constructed all 91 multi-family units,
which are currently being rented.
THE AMENDED DDA ITS PURPOSE
On January 2, 1996, Agency staff received a verbal request from the Developer to remove up to
fifteen moderate income housing units from the Agency's affordable housing program, and sell these
umts on a nonrestricted basis. The Developer stated that current market conditions are inhibiting the
sales of moderate income units to qualified households. The unit prices are in a range that is
competitive with other single-family developments within the vicinity that offer aggressive home
buyer incentives, but do not require the imposition of 30-year affordability covenants. As such, the
sales pace for the minimally assisted $1,000 per unit) moderate income units is slow, and the project
construction lender, First Interstate Bank, desires increased sales activity. Noneligible moderate
income home buyers have expressed interest in purchasing these units these home buyers are
noneligible because their incomes exceed $54,800 a year), and the Developer would like to capture
these sales and move the unsold units, thus alleviating the lender's concerns.
The modifications embodied in the Amended DDA are summarized as follows:
* Release of up to 15 units from affordability covenants
The Amended DDA provides that up to 15 of the 40 units designated for moderate income
home buyers may be sold to households whose incomes exceed the moderate income criteria
as established by State law) or $54,800 a year. These units Market Rate Units") will be
sold at a higher price than the covenant restricted units, and 30 year affordability covenants
will not be imposed.
* Increased sales price for market rate units
The Market Rate Units will feature a higher sales price than the remaining covenant
restricted units. This will provide flinds to reimburse the Agency for the Agency's
contribution to the land cost related to these units. The Amended DDA provides that the new
sales price for these Market Rate Units will be as follows:
ModelA $112,990
ModelB $117,990
ModeIC $121,990
2WILL.2DDA
BIB]
11-03-1997-U01
03:14:38PM-U01
ADMIN-U01
RDARES-U02
96-U02
02-U02
^#$ IR
Agency reimbursement of land cost for Market Rate Units and funding of additional
low income urnts.
The Developer will pay the Agency $6,500 per unit of the increased sales price for the
Market Rate Units. The Amended DDA provides that the Agency may dedicate these
monies to flind additional second trust deed mortgages for low income home buyers. Thus,
up to three of the remaining 25 moderate income units may be sold to low income
households.
**VI I **flA
BIB]
11-03-1997-U01
03:14:38PM-U01
ADMIN-U01
RDARES-U02
96-U02
02-U02
^#$ II
FIRST AMENDMENT TO FIRST
RESTATED AND AMENDED DISPOSITION AND DEVELOPMENT AGREEMENT
BY AND BETWEEN
LA QUINTA REDEVELOPMENT AGENCY
AND
E.G. WILLIAMS DEVELOPMENT CORPORATION
THIS FIRST AMENDMENT First Amendment") is entered into this day of
1995, by and between the LA QUINTA REDEVELOPMENT AGENCY
Agency") and E.G. WILLIAMS DEVELOPMENT CORPOR*ON Developer").
RECITALS
WHEREAS, the Agency and the Developer entered into a Disposition and Development
Agreement, dated September 20,1994 the DDA"), a copy of which is on file as a public record
with the City Clerk of the City of La Quinta and which is incorporated herein by reference; and
WHEREAS, the Agency and the Developer entered into a First Restated and Amended
Disposition and Development Agreement dated September 30, 1994 Restated and Amended
DDA"), a copy of which is on file as a public record with the City Clerk of the City of La Quinta and
which is incorporated herein by reference; and
WHEREAS, the Agency and the Developer entered into a First Implementation Agreement
dated June 19, 1995 and a Second Implementation Agreement dated July 5, 1995 collectively
referred to as the Implementation Agreements"), copies of which are on file as public record with
the City Clerk of the City of La Quinta and are incorporated herein by reference; and
WHEREAS, the Developer and the Agency desire to enter into a First Amendment to the
First Restated and Amended DDA to modi* the First Restated and Amended DDA to provide for
a portion of the units to be sold at market rate without affordability restrictions thereby allowing a
greater number of low income units to be produced; and
AGREEMENT
NOW, THEREFORE, the Agency and the Developer do hereby agree to amend the Restated
and Amended DDA as follows:
Section 1. Amend Section 101, Purpose of Agreement," subsection 5, to add the
following sentence at the end of the paragraph:
Notwithstanding the foregoing, an amount of up to fifteen 15) of the units shall be
sold at market rate without affordability restrictions thereby allowing a greater number of
low income units to be produced by providing Six Thousand Five Hundred Dollars $6,500)
BIB]
11-03-1997-U01
03:14:38PM-U01
ADMIN-U01
RDARES-U02
96-U02
02-U02
^#$ I
per market rate unit to be utilized by Agency to flind additional second trust deed subsidies
for low income units the Market Rate Payment"). The Market Rate Payment shall be paid
directly from escrow for the close of each unit to the Agency"
Section 2. Amend Section 102, to replace the definition of Maximum Purchase Price"
with the following:
Maximum Purchase Price" means: I) as to Model 1, One Hundred Twelve
Thousand Nine Hundred Ninety Dollars $112,990); ii) as to Model 2, One Hundred
Seventeen Thousand Nine Hundred Ninety Dollars $117,990); and iii) as to Model 3, One
Hundred Twenty-One Thousand Nine Hundred Ninety Dollars $*21,990). Each of the
foregoing Model 1, Model 2, and Model 3 shall be of a quality and size as specified by the
terms of the Specific Plan."
Section 3. Amend Section 324, Sale of Ownership Units," to replace the first paragraph
with the following:
With the exception of up to fifteen 15) market rate Ownership Units, the Developer
shall offer for sale all of the remainder of the Ownership Units to Qualifying Buyers at
Affordable Housing Cost and subject to recorded covenants enforceable by the Agency that
such Ownership Units shall remain available at Affordable Housing Cost for not less than
the Applicable Required Period. Such recorded covenants shall be substantially in the form
of the Resale Restriction Agreement and Option to Purchase Attachment No.10)."
Section 4. Amend Section 402, Commitment of Units for Affordable Housing," as
follows
With the exception of up to fifteen 15) market rate units, the Developer covenants
and agrees to make the Ownership Units available for sale to Qualifying Buyers and the
Rental Units available for rental to Qualifying Renters in conformity with this Agreement.
The respective ownership and rental units are to remain affordable for the respective periods
of time set forth in Sections 324 and 326 of this Agreement."
Section 5. Amend Section 404, Approval of Initial Purchasers," as follows:
Ten 10) Ownership Units shall be sold to households having incomes not in excess
of fifty percent 50%) of the area wide median income, the Lower Income Ownership
Units"); ten 10) to fourteen 14) of the Ownership Units shall be sold to households having
incomes not in excess of eighty percent 80%) of the area wide median income the Low
Income Ownership Units"); twenty-seven 27) to thirty-five 35) Ownership Units shall be
sold to households having incomes not in excess of one hundred twenty percent 120%) of
area wide median income the Moderate Income Ownership Units"), all as defined by the
Agency pursuant to Section 50052.5 of the California Health and Safety Code) and up to
fifteen 15) of the Ownership Units shall be sold at market rate on a nonrestricted basis the
Market Rate Units"). With the exception of the Market Rate Units, no transfer of an
Ownership Unit from the Developer or Owner to a purchaser shall occur until the Agency
2
BIB]
11-03-1997-U01
03:14:38PM-U01
ADMIN-U01
RDARES-U02
96-U02
02-U02
^#$ determines that a) the proposed purchaser intends to occupy the Ownership Unit as the
proposed purchaser's principal residence, b) the proposed purchaser is a Qualifying Buyer,
and c) the proposed transfer occurs at an Affordable Housing Cost as calculated using a
fixed rate mortgage. Prior to the conveyance of each Ownership Unit, the Developer shall
obtain and deliver to the Agency from each such proposed purchaser such information and
completed forms as the Agency shall request to certify the transfer price, proposed
purchaser's intent with respect to its residence in the Ownership Unit, and its gross income.
The Developer shall cooperate with the Agency in assisting such purchasers to prepare such
forms and provide any required information to the Agency in connection with the
Developer's original sale of the Ownership Unit. The Agency shall approve or disapprove
such proposed purchasers within seven 7) days of its receipt of all requested information,
forms and disclosure statements from such proposed purchasers. The Agency's approval or
disapproval shall be based only on the criteria set forth above in subsections a), b) and c).
If the Agency shall fail to approve or disapprove any such proposed purchaser within such
seven 7) day period, unless such time has been extended in writing by the Agency, the
proposed purchaser shall be deemed disapproved. The Developer shall use diligent efforts
to cause the Lower Income Ownership Units and the Low Income Ownership Units to be
sold and occupied in accordance with this Agreement at the earliest feasible time. Of every
ten 10) Ownership Units sold by the Developer pursuant to this Agreement, not less than
one 1) shall be a Lower Income Ownership Unit, and not less than one 1) shall be a Low
Income Unit. The Developer shall deliver to and have initialed by Owner(s) a disclosure in
form to be provided by the Agency which discloses that the Buyer/Agency Note provides for
shared appreciation. Ultimately, the complete configuration shall be ten 10) Lower Income
Units, ten 10) to fourteen 14) Low Income Units, twenty-seven 27) to thirty-five 35)
Moderate Income Units, and up to fifteen 15) Market Rate Units."
Section 6. Amend the first paragraph of Section 405, Buyer/Agency Loans," to read as
follows:
The purchaser(s) of each restricted Ownership Unit shall execute and deliver or
cause to be delivered to the Agency a Buyer/Agency Note in the form of Attachment No.9,
as such Note is completed by the Executive Director of the Agency or his designee based
upon Section 404 and the remaining provisions of this Agreement."
Section 7. Amend the first paragraph of Section 406, Covenants to Remain Affordable,"
to read as follows:
Prior to the conveyance of any of the restricted Ownership Units to the Qualifying
Buyers, the Developer shall execute and record the Declaration of Conditions, Covenants and
Restrictions in the Official Records of Riverside County, California, which shall provide all
of the following:"
Section 8. The following attachment to the Restated and Amended DDA shall be
amended as follows:
3
BIB]
11-03-1997-U01
03:14:38PM-U01
ADMIN-U01
RDARES-U02
96-U02
02-U02
^#$ a
I) Section 11(A) of the Scope of Development Attachment No.7), Corresponding
Ownership Improvements," shall be amended to read as follows:
Corresponding Ownership Improvements. This involves 60 single-family dwellings on
approximately 5,000 square foot lots; the dwellings will be configured and priced as follows:
Market Rate Price Restricted Price
* 15 units 1,260 square feet/three bedroom, 2 bath; price $112,990 $107,990
* 25 units 1,371 square feet/three bedroom, 2 bath; price $117,990 $112,990
* 20 units 1,533 square feet/four bedroom, 3 bath; price $121,990 $116,990
The dwellings will be constructed and sold in three 3) phases; the first two phases will involve twenty 20)
units each, with the third phase involving twenty 20) units.
On- and off-site improvements necessary for the development of the single-family homes will also be
constructed. These improvements and corresponding agency assistance are listed on Exhibit A to this
Attachment No.7, and further described in the Specific Plan and the CUP.
These improvements include the construction of a five 5) acre storm water detention basin, with a pum*
station and related flood control improvements."
Section 9. This First Amendment to the First Restated and Amended DDA and the provisions of the
Implementation Agreements and the Restated and Amended DDA, which remain in effect, collectively constitute
the *Amended DDA." The Amended DDA integrates all of the terms and conditions of agreement between the
parties, and supersedes all negotiations or previous agreements between the parties with respect to the subject matter
hereof.
Section 10. Each of the parties hereto warrants and represents to the other that it has the full power and
authority to enter into and execute this First Amendment, that all authorizations and approvals required to make this
First Amendment binding upon such party have been obtained, and that the person or persons executing this First
Amendment on behalf of such parties has been fully authorized to do so.
The effective date of this First Amendment shall be the date of execution by the Agency.
1996 REDEVELOPMENT AGENCY OF THE CITY OF LA
QUINTA
By:
STANLEY SNIFF, Chairman
4
BIB]
11-03-1997-U01
03:14:38PM-U01
ADMIN-U01
RDARES-U02
96-U02
02-U02
^#$AUEST:
SAUNDRA L. JUHOLA, Secretary
La Quinta Redevelopment Agency
APPROVED AS TO FORM:
DAWN C. HONEYWELL, Agency Counsel
La Quinta Redevelopment Agency
E.G. WILLIAMS DEVELOPMENT CORPORATION
By:
Its:
5
BIB]
11-03-1997-U01
03:14:38PM-U01
ADMIN-U01
RDARES-U02
96-U02
02-U02