RDA Resolution 2006-011
RESOLUTION NO. RA 2006-011
A RESOLUTION OF THE LA QUINT A REDEVELOPMENT
AGENCY APPROVING AN AGREEMENT FOR PURCHASE
AND SALE AND ESCROW INSTRUCTIONS BY AND
BETWEEN THE LA QUINT A REDEVELOPMENT AGENCY
AND THE TESTA FAMILY LIMITED PARTNERSHIP, A
CALIFORNIA LIMITED PARTNERSHIP, FOR THE
AGENCY'S PURCHASE OF APPROXIMATELY 7.5 ACRES
OF REAL PROPERTY FOR AFFORDABLE HOUSING
PURPOSES
TESTA FAMILY LIMITED PARTNERSHIP
PURCHASE AND SALE AGREEMENT
WHEREAS, the La Ouinta Redevelopment Agency ("Agency") is a
public body, corporate and politic, organized and existing under the California
Community Redevelopment Law (Health & Safety Code Section 33000, et seq.)
("CRL"); and
WHEREAS, pursuant to the CRL, the City Council of the City of La
Ouinta ("City" or "City Council," as applicable) approved and adopted the
Redevelopment Plan ("Redevelopment Plan") for Project Area No. 2 ("Project
Area"), on May 16, 1989, by Ordinance No. 139; and
WHEREAS, a fundamental purpose of the CRL is to expand the supply
of low- and moderate-income housing (Health & Saf. Code, ~ 33071); and
WHEREAS, the Agency staff has negotiated an Agreement for
Purchase and Sale and Escrow Instructions ("Agreement") with The Testa Family
Limited Partnership, a California limited partnership ("Seller"), for the Agency's
purchase of approximately 7.5 acres of real property located on the east side of
Washington Street south of Hidden Valley Road in the Bermuda Dunes
neighborhood, in unincorporated territory in the County of Riverside (the
"Property"), for Five Million Forty-Four Thousand Dollars ($5,044,000); and
WHEREAS, one of the conditions to the closing under the Agreement
is that the City has completed annexation proceedings for the Property, and that
such annexation has occurred, will occur simultaneously with the closing, or is
imminent; and
Resolution No. RA 2006-011
Testa Family Limited Partnership
Purchase and Sale Agreement
Adopted: September 5. 2006
Page 2
PURCHASE AND SALE, concurrently with the consideration of this
Agreement, the Agency Board is considering a Financing Agreement by and
between the Agency and the City that provides for the City to loan funds to the
Agency to pay for all costs incurred by the Agency pursuant to the Agreement prior
to the City's annexation of the Property into City limits (the "Financing
Agreement"); and
WHEREAS, the Agreement provides the Agency with a due diligence
period during which the Agency will (i) perform tests and inspections of the
Property, and (ii) process the annexation of the Property into the City; and
WHEREAS, subsequent to the City's annexation of the Property into
the City and the. Agency's acquisition of. the Property, the Agency Board
contemplates commencing the necessary actions to amend the Redevelopment Plan
to include the Property in the Project Area; and
WHEREAS, the Agreement is in accordance with the Redevelopment
Plan and is of benefit to the Project Area and the City of La Ouinta.
NOW, THEREFORE, BE IT RESOLVED BY THE LA OUINTA
REDEVELOPMENT AGENCY AS FOLLOWS:
Section 1. That the above recitals are true and correct and incorporated
herein.
Section 2. The Agreement, a copy of which is on file with the Agency
Secretary, is hereby approved, subject to the Agency's and City Council's approval
of the Financing Agreement. The Agency Executive Director and Agency Counsel
are hereby authorized and directed to make final modifications to the Agreement
that are consistent with the substantive terms of the Agreement approved hereby,
and the Agency Executive Director is authorized to thereafter sign the Agreement
on behalf of the Agency.
Section 3. The Agency Executive Director is authorized and directed, on
behalf of the Agency, to (i) sign such other and further documents, including but
not limited to escrow instructions that require the Agency's signature, and (ii) take
such other and further actions, as may be necessary and proper to carry out the
terms of the Agreement.
Resolution No. RA 2006-011
Testa Family Limited Partnership
Purchase and Sale Agreement
Adopted: September 5, 2006
Page 3
PASSED, APPROVED, and ADOPTED at a regular meeting of the
La Ouinta Redevelopment Agency held this 5th day of September, 2006, by the
following vote:
AYES: Members Adolph, Henderson, Kirk, Chair Osborne
NOES: None
ABSENT: Member Sniff
ABSTAIN: None
M. 0 ORNE, Agency Chair
La Ouinta Redevelopment Agency
ATTEST:
~.bo~ -iJ-~~
DEBORAH H. POWELL, Interim Agency Secretary
La Ouinta Redevelopment Agency
(SEAL}
APPROVED AS TO FORM:
M. KA THE NE JENSON,
La Ouinta Redevelopment