2004 Washington-III, Ltd - DIF ReimbursementDEVELOPMENT IMPACT FEE REIMBURSEMENT AGREEMENT
WASHINGTON PARK RETAIL CENTER - TRACT 30903
Washington Street Improvements
THIS DEVELOPMENT [MPACT EE EIMBURSEMENT AGREEMENT ("Agreement')
is entered into this day of F , 2004, by and Washington 111, LTD, a California
Limited Partnership ("Developer"), and the City of La Quinta, California, a California
Municipal Corporation ("City").
RECITALS:
A. The Developer is improving property in the City of La Quinta known as the
Washington Park Retail Center, Tract 30903, located south of Highway 111, north of
Avenue 47 and east of Washington Street ("Development").
B. Conditions of Approval for the Development obligate the Developer to make
Arterial Core Improvements that include an 18-foot wide landscaped median and a 12-
foot wide strip of street pavement, as delineated in Exhibit A of this Agreement, to that
section of Washington Street that adjoins the Development ("Required Improvements").
C. Pursuant to the City Development Impact Fee Program ("Program"), adopted
June 5, 1999 and revised March 5, 2002, the Developer is required to pay Development
Impact Fees ("Fees") to fund these and other improvements as the Development is
constructed. Said Fees include a Transportation Improvement Fee component
("Transportation Fee") that funds regional serving transportation improvements.
D. Pursuant to Section 10, Implementation, B. Administration, of the Program, if the
City requires a developer, as a condition of project approval, to construct facilities or
improvements for which impact fees have been, or will be, charged to that project, the
impact fee imposed on that development project for that type of facility should be
adjusted to reflect a credit for the cost of those facilities or improvements, or in the
alternative, reimbursement may be provided.
E. The Developer has requested that the City reimburse the Developer for the costs
the Developer will incur for the Required Improvements.
F. The City Engineer has reviewed the scope and costs associated with the
Required Improvements and determined that the Required Improvements are included
in the Program and are eligible for reimbursement, subject to the cap referenced in
Recital H.
G. The City Engineer has determined that the Program established a total budget of,
$598,900 for all eligible improvements involving that segment of Washington Street
44082\26088l 2A
I th
between Highway 111 and Avenue 47 ("Washington Street Improvements"). The
Required Improvements encompass a segment of Washington Street that runs from
Simon Drive to Avenue 47, which is sixty-five and six -tenths percent (65.6%) of the total
Washington Street Improvements. Therefore, the maximum Transportation Fee
reimbursement funding that the Developer may receive for the Required Improvements
is sixty-five and six tenths percent (65.6%) of the Program budget for the Washington
Street Improvements or $392,878.
H. The City Finance Department has reviewed the Fees that the Development is
scheduled to pay and has determined that the Development is required to pay
Transportation Fees in excess of those that would be reimbursed to the Developer
through this Agreement.
NOW, THEREFORE, it is agreed by and between the parties hereto as follows:
1. Responsibilities of Developer. The Developer shall construct the Required
Improvements, as delineated in Exhibit A, and shall bear all costs associated with said
improvements. The Required Improvements shall be constructed in accordance with all
applicable City and State codes and regulations, including securing bonds and
guarantees pursuant to Section 14.16.180 of the Municipal Code of the City of La
Quinta. The Developer agrees that the Required Improvements will be completed no
later than 24 months after both parties execute this Agreement.
2. Responsibilities of City. After the Required Improvements are accepted by the
City Council as complete, the City shall reimburse the Developer for the cost actually
incurred and documented by Developer for the cost items set forth in Exhibit "A" for the
Required Improvements. The amount of the reimbursement shall in no event exceed
$392,878. The documentation submitted by Developer is subject to the review and
approval of the Public Works Director, and must be adequate to demonstrate the
expenditure of the costs by Developer for the items listed on Exhibit "A".
3. Warranty. Developer agrees to obtain from the contractor(s) constructing the
Required Improvements a warranty in favor of the City to repair or replace of faulty work
or materials for a period of one year following the date that the Required Improvements
are accepted by the City Council.
4. Disputes. In the event of any dispute arising under this Agreement, the injured
party shall notify the injuring party of its contentions by submitting a claim therefore.
The injured party shall continue performing its obligations incurred herein so long as the
injuring party commences to cure such injuring action within ten (10) days of service of
such notice and completes the cure within forty-five (45) days after the notification, or
such longer period as may be agreed upon by both parties to this Agreement.
5. Attorney's Fees. If either party commences an action against the other arising
out of or in connection with -this Agreement, the prevailing party shall be entitled to
recover reasonable attorney's fees and legal costs from the losing party.
44082\260881v2A 2
6. Indemnification. Developer agrees to indemnify, defend and hold City and its
officers, employees, agents, representatives; and assigns ("Indemnified Parties")
harmless from and against any losses, claims, demands, actions, or causes of action, of
any nature whatsoever, arising out of or in any way connected with: (1) the design or
construction of the Required Improvement or (2) the performance of Developer, its
contractors, officers, employees, agents, or representatives under this Agreement. In
the event that any of the Indemnified Parties are made a party to any action, lawsuit, or
other adversarial proceeding in any way involving such losses, claims, demands,
actions, or causes of actions ("Claims"), Developer shall provide a defense to the
Indemnified Parties, or at the City's option, reimburse the Indemnified Parties for their
costs of defense, including reasonable attorneys' fees, incurred in defense of such
Claims. In addition Developer shall be obligated to promptly pay any final judgment or
portion thereof rendered against the Indemnified Parties.
7. City Officers and Employees; Non -Discrimination. No officer or employee of City
shall be personally liable to Developer or any successor in interest in the event of any
default or breach by City or for any amount that may become due to Developer or to its
successor or for breach of any obligation of the terms of this Agreement.
8. Term ofAgreement. This Agreement shall remain in full force and effect for
three years following the date it has been executed by both parties.
9. Notice. Any notice, demand, request, consent, approval, or communication
either party desires or is required to give to the other party or any person shall be in
writing and either served personally or sent by prepaid, first-class mail to the address
set forth below. Notice shall be deemed communicated forty-eight (48) hours from the
time of mailing if mailed as provided in this Section.
To City: City of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
760/777-7075
Attn: City Engineer
To Developer: Washington 111, LTD.
c/o Jack Tarr Development Company
30240 Rancho Viejo Road - Suite B
San Juan Capistrano, CA 92675
10. Assignment of Agreement. Neither party may assign its obligations hereunder
to any assignee without the knowledge and consent of the other party hereto which
other party shall not unreasonably withhold consent. Assignment may be made only to
an assignee willing, financially capable and competent to carry out the assignor's
obligations.
44082\260881 v2A
11. General Provisions.
A. Except as otherwise provided herein, the terms, conditions, covenants, and
agreements set forth herein shall apply to and bind the heirs, executors, administrators,
assigns, and successors of the parties hereto.
B. Neither party to this Agreement relies upon any warranty or representation
not contained in this Agreement.
C. This Agreement shall be governed by and interpreted with respect to the
laws of the State of California.
D. Any failure or delay by either party in asserting any of its rights and remedies
as to any default shall not operate as a waiver of any default or of any rights or
remedies provided for herein.
E. This Agreement may be amended at any time by the mutual consent of the
parties by an instrument in writing signed by both parties.
12. Severability. In the event that any provision or provisions of this Agreement are
held unenforceable, all provisions not so held shall remain in full force and effect.
13. Authority of Signatories. The persons executing this Agreement on behalf of the
parties hereto warrant that they are duly authorized to execute this Agreement on behalf
of said parties and that by so executing this Agreement the parties are formally bound to
the provisions of this Agreement.
44082\260881 V2A 4
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and
year first written above.
CITY OF LA QUINTA:
Tom Genovese, City Manager
ATTEST:
ti J e S. Gree4CCityy,Cler
City. of La Quinta
DEVELOPER:
Approved as to Form:
M. Kath rine Jenso , City Attorney
City of La Quinta
Date
WASHINGTON 111, LTD., a California limited partnership
("Washington")
By: Old Anchor Inc., a California Corporation
Its: General Partner
By:
Jac Oldham
It's: President
Date
44082\260881 v2A
5
Exhibit A
REQUIRED IMPROVEMENTS/ESTIMATED QUANTITIES AND COST
TRACT 30903.
WASHINGTON STREET IMPROVEMENTS
AC 4" over 8" Base
AC Subgrade Preparation
Mobilization (Move -In)
Remove Existing AC Pavement
Type D Curb only (6")
Striping
Traffic Control
Median Landscape
Plan Check and Inspection
Civil Engineering Fee
Landscape Design Fee
Contingency
Total
Quantity Estimated
Unit Unit Price. Estimate Cost
SF
$1.25
21,312
$26,640
SF
$0.30
21,312
$6,394
EA
$5,000.00
1
$5,000
SF
$0.30
35,520
$10,656
LF
$6.00
3,320
$19,920
LS
$5,000.00
1
$5,000
LS
$5,000.00
1
$5,000
LF
$3.00
24,919
$74,757
%
2%
$3,067
$20,000
$6,000
%
10%
$18,243
$200,677
44082\260881v2A 6
P.O. Box 1504
78-495 CALLE TAMPICO (760) 777-7000
LA QUINTA, CALIFORNIA 92253 FAX (760) 777-7 101
April 28, 2004
WASHINGTON I 11, LTD.
c/o Jack Tarr Development Company
30240 Rancho Viejo Road, Suite B
San Juan Capistrano, CA 92675
Gentlemen:
Please find enclosed a fully executed Development Impact Fee Reimbursement Agreement, by and
between the City of La Quinta and Washington III, LTD, to fund additional improvements to
Washington Street associated with the Washington Park development.
Should you have any questions, please contact Timothy Jonasson at (760) 777-7075.
Sincerely,
REGENIA HENSLEY
Deputy City Clerk
Enclosure
c: Tim Jonasson, Public Works Director/City Engineer
4
Y - I.—
OFT4
COUNCILI"A MEETING DATE: January 6, 2004
ITEM TITLE: Approval of a Reimbursement Agreement
Between the City of La Quinta and Washington 1 1 1,
LTD for Improvements to Washington Street and
Appropriation of Funds
RECOMMENDATION:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
7
Approve a Reimbursement Agreement between the City of La Quinta and Washington
1 1 1, LTD, to credit or reimburse the Washington 1 1 1, LTD for Developer Impact Fee
Program (DIF) eligible improvements to Washington Street associated with the
Washington Park development in an amount not to exceed $392,878, authorize the
City Manager to execute the necessary documents, and appropriate $392,878 from
the City's Transportation DIF fund.
FISCAL- IMPLICATIONS:
Sufficient funding is available within the City's Transportation DIF fund account,
Account No. 250-000-300-290, unreserved funds, to support staff's recommendation.
CITY CHARTER IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
Washington 1 1 1, LTD is currently building the Washington Park retail center located
east of Washington Street and south of Highway 111. Tenants include a Target
department store, a Washington Mutual Bank, and related retail tenants. When this
project was approved, it was conditioned to install landscaped medians and travel lane
improvements on Washington Street. These improvements are listed as Arterial Core
Improvements in the City's DIF and are slated to be funded through DIF funds. Per the
DIF, if the City requires a developer, as a condition of project approval, to construct
facilities or improvements for which impact fees have been, or will be, charged to that
project, the impact fee imposed on that development project for that type of facility
C10 DIF.doc
should be adjusted to reflect a credit for the cost of those facilities or improvements.
Washington 1 1 1, LTD will be constructing median and transportation lane
improvements and is seeking either a Transportation Fee credit, or direct
reimbursement, for the cost of these improvements.
The attached Agreement facilitates DIF Transportation Fee credit or cost
reimbursement for these improvements. The Agreement established a total cost of
$392,878, which is the DIF cost allocation for these improvements. Further, the
Agreement provides that the improvements will be completed no later than 24 months
after both parties execute the Agreement, and that the Transportation Fee credit or
actual cost reimbursement, will not occur until the City Engineer accepts the
improvements. The developer's engineer estimates that the improvements will cost
$172,077, as indicated on Exhibit A of the Agreement. This cost estimate is based
upon preliminary improvement plans. The Agreement provides for a fee credit or
actual cost reimbursement for an amount up to $392,878. This amount represents
the City Engineer's estimate for these improvement costs that was included in the
2002 DIF update. If actual costs are less than the DIF cost estimate, the developer
will receive Transportation Fee credit, or cost reimbursement, for the lesser amount.
FINDINGS AND ALTERNATIVES:
The alternatives available to the City Council include:
1. Approve a Reimbursement Agreement between the City of La Quinta and
Washington 1 1 1, LTD, to credit or reimburse the Washington 1 1 1, LTD for
Developer Impact Fee Program (DIF) eligible improvements to Washington Street
associated with the Washington Park development in an amount not to exceed
$392,878, authorize the City Manager to execute the necessary documents,
and appropriate $392,878 from the City's Transportation DIF fund; or
2. Do not approve a Reimbursement Agreement between the City of La Quinta and
Washington 1 1 1, LTD, to credit or reimburse the Washington 1 1 1, LTD for
Developer Impact Fee Program (DIF) eligible improvements to Washington Street
associated with the Washington Park development in an amount not to exceed
$392,878, do not authorize the City Manager to execute the necessary
documents, and do not appropriate $392,878 from the City's Transportation
DIF fund; or
3. Provide staff with alternative direction.
2
Respectfully submitted,
Tim Jon8t on! Public Works ❑irector
Approved for submission by:
Thomas P. Genovese, City Manager
Attachment: 1. Development Impact Fee Credit Agreement
KI