RDA Resolution 2001-05 RESOLUTION RA 2001-05
A RESOLUTION OF THE LA QUINTA REDEVELOPMENT
AGENCY INDUCING THE DEVELOPER TO UNDERTAKE THE
ACQUISITION AND DEVELOPMENT OF THE PROJECT AS
HEREIN DESCRIBED, AUTHORIZING APPLICATION TO THE
CALIFORNIA DEBT LIMITATION ALLOCATION COMMITTEE
FOR ISSUANCE OF PRIVATE ACTIVITY BONDS FOR THE
PROJECT, DECLARING THE AGENCY'S OFFICIAL INTENT
TO REIMBURSE CERTAIN EXPENDITURES FROM THE
PROCEEDS OF INDEBTEDNESS, AND CONFIRMING THE
AGENCY'S APPROVAL OF THE PROJECT
WHEREAS, the La Quinta Redevelopment Agency ("Agency"), pursuant
to a resolution adopted therefor, entered into that certain Affordable Housing
Agreement, dated on or about December 20, 2000 ("Agreement"), with DC & TC, LLC
or its successor ("Developer") for the development of an affordable 118-unit senior
citizen rental apartment complex to remain affordable for a period of 55 years (the
"Project") located in the City of La Quinta ("City"); and
WHEREAS, concurrent with the Agency's approval of the Agreement and
the Project described in the Agreement, the Agreement and the Project described
therein were also approved by the City Council of the City ("City Council") by adoption
of a resolution approving the Agreement pursuant to the California Community
RedeVelopment Law (Health & Safety Code § 33000 et seq.), in particular Health and
Safety Code Section 33433; and
WHEREAS, the purpose of the Agreement and the Project is to address
the need for housing available to senior citizens whose income does not exceed
moderate income as defined in California law; and
WHEREAS, by and through their respective approval of the Agreement,
the Agency and the City Council approved the Project; and
WHEREAS, the Agreement provides for assistance by the Agency to the
Project in the form of a long-term subordinated loan to be repaid from project
revenues; and
WHEREAS, Developer intends to apply for 4% Low Income Housing Tax
Credits; and
WHEREAS, Developer has also requested that the Agency consider the
issuance of certain tax-exempt bond financing in a principal amount not less than
$8,000,000 but not more than $9,000,000, pursuant to applicable provisions of
federal law and federal income tax regulations to assist in the development of the
Project (the "Bonds"); and
WHEREAS, it is in the public interest and for the public benefit that the
Agency declare its approval of the use of 4% Tax Credits for the Project and the
Agency's official intent to assist the Project through the issuance of the Bonds.
Resolution RA 2001-05
Resolution of Inducement
Adopted: October 2, 2001
Page 2
NOW, THEREFORE, BE IT RESOLVED, by the La Quinta Redevelopment
as follows:
1. The Agency has previously approved the Project and in conjunction with the
City Council is undertaking the necessary steps under the California Community
Redevelopment Law, in particular Health and Safety Code Section 33433, and
subject to the exercise of the Agency's legislative discretion pursuant to the
California Community Redevelopment Law, to increase the Agency' assistance
by an additional $3,500,000, for a total amount of subordinated long-term debt
assistance to the project of $9,500,000 by amendment of the Affordable
Housing Agreement.
2. The Agency hereby approves of the Developer's application for 4% Tax Credits.
3. The Agency, subject to all applicable requirements and procedures, intends to
issue the Bonds in an amount not less than $8,000,000 but not more than
$9,000,000 for the purpose of paying a portion of the costs of developing the
Project.
4. The Agency declares that a portion of the proceeds of the Bonds, not exceeding
the issuance amount may be used for reimbursement of expenditures for the
acquisition and development of the Project that are paid before the date of initial
execution and delivery of the Bonds, all in accordance with applicable law.
5. The Developer shall be responsible for the payment of all present and future
costs in connection with the issuance of the Bonds, including but not limited to
any fees or expenses incurred by the Agency in anticipation of the issuance of
the Bonds, the cost of issuing any official statement, rating agency costs, bond
counsel fees and expenses, underwriting discount and costs, trustee fees and
expenses, and the cost of printing the Bonds. The payment of principal,
redemption premium, if any, and purchase price and interest on the Bonds shall
be solely the responsibility of the Developer. The Bonds shall not constitute a
debt of the Agency.
6. The Agency shall have the right, in its sole discretion, to select bond counsel,
underwriter, disclosure counsel, and other professional consultants of its
choosing in connection with the issuance of the Bonds. The fees and expense
of bond counsel and any professional employed by the Agency in connection
with the issuance of the Bonds shall be paid solely from the proceeds of the
Bonds or directly by the Developer.
7. The Agency Executive Director is hereby authorized and directed, for and in the
name of and on behalf of the Agency, to (i) make an application to the California
Debt Limitation Allocation Committee for an allocation of private activity bonds
for the financing of the Project, (ii) pay the application fee for the application
submittal to the California Debt Limitation Allocation Committee, (iii) take such
actions as necessary pertaining to the Certification of Posting of Required
Performance Deposit, and (iv) take such other and further actions as may be
required to implement the foregoing described application and the purposes of
this Resolution.
Resolution RA 2001-05
Resolution of Inducement
Adopted: October 2, 2001
Page 3
8. The adoption of this Resolution shall not obligate (i) the Agency to provide
financing to the Developer for the acquisition or development of the Project or
to issue the Bonds for purposes of such financing; (ii) the Agency or any
department thereof or the City of La Quinta or any department thereof, to
approve any application or request for, or take any other action in connection
with, any environmental, General Plan, zoning, or any other permit or other
action necessary to effectuate the Project.
9. The Agency hereby approves of and memorializes the public approval process
set forth in the pertinent subsections of 26 U.S.C. § 147.
10. This Resolution is approved expressly for the purpose of satisfying the
requirements of federal law with respect to issuance of the Bonds and for the
purpose of inducing the Developer to undertake the acquisition and development
of the Project.
11. This Resolution shall take effect immediately upon its adoption.
PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta
Redevelopment Agency held on this 2"~ day of October, 2001, by the following vote,
to wit'
AYES' Members Adolph, Perkins, Sniff, Chair Henderson
NOES: None
ABSENT' Member Pe~a
ABSTAIN: None
TERRY ,FJlENDERSON, Chairperson
La Quin~a Redevelopment Agency
ATTEST:
La Quinta Redevelopment Agency
(Agency Seal)
Resolution RA 2001-05
Resolution of Inducement
Adopted: October 2, 2001
Page 4
APPROVED AS TO FORM:
CoL~sel
La Quinta Redevelopment/Agency