CC Resolution 2000-159RESOLUTION NO. 2000-159
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LA QUINTA APPROVING AN AFFORDABLE HOUSING
AGREEMENT BY AND BETWEEN THE LA QUINTA
REDEVELOPMENT AGENCY AND DC & TC, LLC FOR AN
AFFORDABLE HOUSING DEVELOPMENT ON A SITE
WITHIN REDEVELOPMENT PROJECT AREA NO 2
WHEREAS, the La Quinta Redevelopment Agency ("Agency") is a public
body, corporate and politic, organized and existing under the California Community
Redevelopment Law ("Health & Safety Code § 33000 et seq.) ("CRL"); and
WHEREAS, pursuant to the CRL, the Agency and the City Council of the
City of La Quinta ("City" or "City Council," as applicable) previously approved and
adopted the Redevelopment Plan, as amended ("Redevelopment Plan") for Project
Area No. 2 ("Project Area"); and
WHEREAS, the Agency is required pursuant to Health and Safety Code
Section 33334.2 et seq. to expend monies in its Low and Moderate Income Housing
Fund to increase, improve, and preserve affordable housing in or serving the Project
Area; and
WHEREAS, the Agency now proposes to enter into an Affordable
Housing Agreement ("Agreement") with TC & DC, LLC, a California limited liability
company ("Developer") for the conveyance by the Agency of a site owned by the
Agency for development of an one hundred eighteen (118) unit "for rent" senior
apartment housing project on a site located within the Project Area, with all of the
units required to be developed as affordable units to be leased at an affordable
housing cost to seniors whose income does not exceed moderate income as defined
in California law (the "Project"); and
WHEREAS, the site proposed to be conveyed by the Agency to the
Developer is defined as the remainder parcel of Tract 28601-1 as shown on a map
filed in Book 278, Pages 86 through 90 of maps recorded in the records of Riverside
County (the "Site"); and
WHEREAS, the Site is a portion of the "Miraflores" housing development
project which in general consists of a three-phase development of single family
detached homes and an affordable senior citizen rental apartment complex (the
"Senior Apartments"); and
Resolution No. 2000-159
DC & TC, LLC
November 21, 2000
Page 2
WHEREAS, before the Agency may dispose of real property, acquired
with tax increment funds, for development the Agency and City Council must hold
a duly noticed joint public hearing on the proposed disposition; and
WHEREAS, notice of a joint public hearing of the Agency and City
Council concerning the Agreement and the proposed conveyance described in the
Agreement was given in accordance with the requirements of Health & Safety Code
Section 33433; and
WHEREAS, the Agency also timely prepared and made available for
public review a Summary Report of the proposed transaction in accordance with
Health & Safety Code Section 33433; and
WHEREAS, all action required of the City to be taken precedent to review
and consideration of the Agreement by the City Council have been taken in
accordance with applicable law;
NOW, THEREFORE, the City Council of the City of La Quinta hereby
resolves as follows:
1 . The City Council finds and determines:
A. That the sale of the Site as set forth in the Agreement, and the terms of
the Agreement, will provide housing for low or moderate income
persons, in that 118 units to be developed on the Site shall be leased at
an affordable housing cost to seniors whose incomes do not exceed
moderate income as defined in California law.
B. That the sale of the Site as set forth in the Agreement, and the terms of
the Agreement, are consistent with the Agency's adopted "Second Five -
Year Implementation Plan Project Areas No. 1 and 2," adopted by the
Agency in accordance with Health and Safety Code Section 33490, in
that (i) the goals and objectives set forth in the Implementation Plan
include increasing and improving the community's supply of affordable
housing, and (ii) the project on the Site is specifically identified as one
of the Agency's housing programs to be undertaken in the time period
covered by the Implementation Plan.
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DC & TC, LLC
November 21, 2000
Page 3
C. That the highest and best use of the Site in accordance with the
Redevelopment Plan is the development of the Site for affordable
housing and that the consideration to be paid by the Developer for the
Site is not less than the fair reuse value at its highest and best use in
accordance with the Redevelopment Plan, for the reasons set forth in
the Agency's Summary Report for the Agreement and the transaction
described in the Agreement prepared in accordance with Health and
Safety Code Section 33433, which Summary Report, a copy of which
is on file with the Agency Secretary, is incorporated herein by reference
as though fully set forth.
D. That the publicly owned improvements to be paid for by the Agency as
set forth in the Agreement are of benefit to the Project Area and to the
immediate neighborhood in which the Project is located, in that the
improvements are necessary to effect development of the Site and but
for the Agency's expenditure the public infrastructure improvements
would not be completed thus detrimentally affecting the Project and the
residents living adjacent to the Site.
E. That there are no other reasonable means available to the community of
paying for the publicly owned improvements to be paid for by the
Agency as set forth in the Agreement, other than Agency funding in that
City general funds, as set forth in the adopted City budget, are
earmarked for critical public health and safety expenditures, such as
police and fire protection, and for other, previously identified capital
improvement projects, and for City service programs, all of which cannot
be adjusted to accommodate City expenditure for these public
improvements, and thus Agency payment is the sole available source for
the publicly owned improvements to be paid for by the Agency as set
forth in the Agreement.
F. That the payment by the Agency for the publicly owned improvements
as set forth in the Agreement will facilitate the provision of housing for
low or moderate income persons, in that the publicly owned
improvements designated in the Agreement for Agency payment are
necessary for the development of the Site as an affordable housing
development because the economics of the Project do not permit the
Developer to pay for these improvements and still maintain a reasonable
return on investment, as set forth in the Summary Report prepared for
the Project.
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DC & TC, LLC
November 21, 2000
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G. That the payment by the Agency for the publicly owned improvements
to be paid for by the Agency as set forth in the Agreement is consistent
with the Agency's adopted "Second Five -Year Implementation Plan
Project Areas No. 1 and 2," adopted by the Agency in accordance with
Health and Safety Code Section 33490, in that (i) the goals and
objectives set forth in the Implementation Plan include increasing and
improving the community's supply of affordable housing, and (ii) the
Project n the Site is specifically identified as one of the Agency's
housing programs to be undertaken in the time period covered by the
Implementation Plan, (iii) the Project on the Site is specifically identified
as addressing inadequate public infrastructure and facilities.
H. That the Agency's expenditures for the onsite and offsite improvements
identified in the Agreement will facilitate, and result in, the new
construction of affordable housing units for low or moderate income
persons that are directly benefited by the improvements, in accordance
with the authorization to the Agency to expend monies in its Low and
Moderate Income Housing Fund for such purposes pursuant to Health
and Safety Code Section 33334.2(e).
I. That the Agency is further authorized under Health and Safety Code
Section 33449 which grants the Agency authority to improve sites in
order to provide housing for persons of low and moderate income, and
thus the Agency's expenditures for the Project, as set forth in the
Agreement, including but not limited to Acquisition Assistance, and,
Additional Assistance (as defined in the Agreement) is necessary and
proper for the development of the Site as an affordable housing project.
2. The City Council, pursuant to Health and Safety Code Section 33433, hereby
approved the Affordable Housing Agreement between the La Quinta
Redevelopment Agency and TC & DC, LLC.
3. In giving its approval as set forth in Paragraph 2 above, the City Council also
consents to the authority given by the Agency (i) to its Executive Director and
to the Agency Counsel to make final modifications to the Agreement that are
consistent with the substantive business terms of the form of Agreement
approved herein by the City Council, (ii) to its Executive Director to thereafter
sign the Agreement on behalf of the Agency, (iii) to its Executive Director to
Resolution No. 2000-159
DC & TC, LLC
November 21, 2000
Page 5
sign the Agreement on behalf of the Agency, (iii) to its Executive Director to
sign, on behalf of the Agency, such other and further documents, including but
not limited to attachments and exhibits to the Agreement that require the
Agency's signature, and to take such other and further actions, on behalf of
the Agency, as may be necessary and proper to carry out the terms of the
Agreement, and (iv) to its Executive Director, the Agency Counsel, and their
respective authorized designees, and each of them individually, to sign escrow
instructions on behalf of the Agency in order to effect the close of escrow
described in the Agreement.
PASSED, APPROVED and ADOPTED at a regular meeting of the La
Quinta City Council held on this 215t day of November, 2000, by the following vote,
to wit:
AYES: Council Members Adolph, Henderson, Perkins, Sniff, Mayor Pena
NOES: None
ABSENT: None
ABSTAIN: None
( O(L
JOH J. PENA, or
City of La Quinta, California
ATTEST:
JUNE EEK, CMC, City erk
City of La Quinta, California
(City Seal)
Resolution No. 2000-159
DC & TC, LLC
November 21, 2000
Page 6
APPROVED AS TO FORM:
06� A. t:,,
M. 6ATHERNE JENS N, City Attorney
City of La Quint Cali rnia