ND La Quinta Partners/Ave 52 Median 07
. '
CITY OF LA QUINTA
DEVELOPMENT IMPACT FEE REIMBURSEMENT AGREEMENT
TRACT MAP NO. 29894-2
STREET AND RAISED LANDSCAPE MEDIAN IMPROVEMENTS TO AVENUE 52
(All American Canal Bridge to East of Madison Street)
THI~EIMBURSEMENT AGREEMENT (the "Agreement") is made and entered into this
I:Jl day of "Uf':L1 Ono~ , 2007, by and between ND La Quinta
Partners, LLC a Delaware limited liability company, hereinafter referred to as "Developer", and
the City of La Quinta, California, a California Municipal Corporation (the "City").
RECITALS
A. Developer is the subdivider and developer of property in the City of La Quinta subject
to the provisions of Tract 29894-2 ("Tract") which area is currently known as The
Hideaway and which lies east of Jefferson Street and west of Madison Street between
Avenue 54 and Avenue 52. The Agreement excludes all other tracts within the
Hideaway Development.
B. Conditions of Approval for Tentative Tract Map No. 29894 (attached to the Plan as
Exhibit B) adopted by the City Council on November 21, 2000, obligate Developer to
make Arterial Core Improvements that included construction of the inside lanes of
travel and an 18-foot wide landscaped median, as delineated in Exhibit A of this
Agreement, to that section of Avenue 52 that adjoins the Tract ("Required
Improvements").
C. The City has identified source of funds from which it desires to reimburse Developer for
the Required Improvements at a point in the future to be determined by the City. The
fund source is the Transportation Component of the Development Impact Fee. All land
developments in the City are required to pay Development Impact Fees ("Fees")
pursuant to the Development Impact Fee Program ("Program"), adopted by the City on
June 15, 1999 and revised July 5, 2006. A portion of Development Impact Fee
known as the "Transportation Component" provides future funding for specific arterial
street improvements located throughout the City.
D. Currently, the Transportation Component of the 2006 DIF Program contains cost
details for Avenue 52 (Jefferson Street to % Mile East of Madison Street). The cost
details (Exhibit B) reflect a DIF totaling $3,244,108.88 for Avenue 52 (Jefferson
Street to % Mile East of Madison Street). The Required Improvements for Avenue 52
are estimated to comprise of $1,344,690. The $1,344,690 shall be referred to
hereinafter as the "Budget Amount". However, this estimate includes the pro rata
distribution percentage that was subject to change due to the DIF updated prior to
completion of work.
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E. The Developer has requested that the City reimburse the Developer for cost of street
improvements on Avenue 52 between the All American Canal Bridge and East of Madison
Street that are eligible for reimbursement pursuant to the Program.
F. The City Engineer has reviewed the scope and cost associated with Required
Improvements and determined that the Required Improvements are included in the Program
and are eligible for reimbursement, subject to the cap referenced in Recitals G and H.
G. The City Engineer has determined that the Program established a total budget of
$1,740,310 for all eligible improvements involving that segment of Avenue 52 between
Jefferson Street and Madison Street. However, the Developer has not constructed all of the
eligible Required Improvements because of previous obligations of properties along the north
side and the proposed City of La Quinta CIP Project 2005-02 and improvements to be
constructed by Tract Map No. 30138 and therefore is eligible for only $1,344,690 of the
budget.
H. The City Engineer has determined that no further street improvements to Avenue 52
between the All American Canal Bridge and Madison Street are required by the developer and
therefore is ineligible for further DIF Reimbursement outside of this Agreement.
AGREEMENT
NOW, THEREFORE, it is agreed by and between the parties hereto as follows:
1. Responsibilities of Developer. Developer has constructed portions of the Required
Improvements (Partial Work Completed), as delineated in Exhibit A, and has borne all
cost associated with said improvements. The Required Improvements were 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.
2. Responsibilities of Citv:
(a) Approval or Disapproval of Expenses. The City Engineer shall either approve or
disapprove the invoices and submit the approved invoices for credit and/or
reimbursement in accordance with this Agreement. The City Engineer shall provide
Developer with a written explanation for any portion of an invoice that is disapproved.
Developer recognizes that the City Engineer's approval of the costs does not
guarantee that the costs will be reimbursed. Instead, the City Engineer approval is a
condition precedent necessary for the costs to be processed for credit or
reimbursement.
(b) Reimbursement from the DIF. Developer is eligible for reimbursement at some point
in the future from the Transportation Component Fees collected on other projects.
Developer recognizes that at this point in time, the City cannot commit to a time
certain for reimbursement, in as much as the City is entitled to establish the priority of
Reimbursement Agreement -Avenue52DIFagreement-vl 2.DOe
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spending for the Transportation Component Fees. Developer further recognizes that the
City Council has indicated that it will be considering a policy regarding the priority of
reimbursement, and that this reimbursement will be subject to the policy. In no event
will the amount of reimbursement exceed the Budget Amount ($1,344,690).
3. DisDutes. 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 (ten) 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.
4. Attornev's Fees. If either party commences an action against the other arising out of or
in connection with this Agreement, including the filing of a lien or other legal action to
compel payment of the Reimbursement, the prevailing party shall be entitled to recover
reasonable attorney's fees and legal costs from the losing party.
5. Indemnification. Developer shall defend, indemnify and hold harmless City, its officers,
. employees, representatives and agents ("Indemnified Parties"), from and against those
actions, suits, proceedings, claims, demands, losses, costs, and expenses, including
legal costs and attorneys' fees, arising out of any liability or claim for liability, for injury
to or death of person(s), for damage to property (including property owned by City) and
for errors and omissions committed by Developer, its officers, employees
representatives, and agents, which arise out of acts or activities of Developer's or
Developer's Officers, employees, agents or representatives ("Claims"), whether or not
such act or activity is authorized by this Agreement, except to the extent of such loss
as may be caused by City's own negligence or that of its officers or employees. In the
event the Indemnified Parties are made a party to any action, lawsuit, or other
adversarial proceeding in any way involving such Claims, Developer shall provide a
defense to the Indemnified Parties, or at the City's option, reimburse the Indemnified
Parties 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 Parities.
6. Citv Officers and Emplovees; 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 which may become due to Developer or to its
successor or for breach of any obligation of the terms of this Agreement.
7 . Term of Aareement. This Agreement shall remain in full force following the date it has
been executed by both parties until the listed Funding Source has paid the allowable
Developer claims.
8. 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
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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
Attn: City Engineer
(760) 777-7075
To Developer:
ND La Quinta Partners, LLC
80-955 Avenue 52
P.O. Box 1482
La Quinta, CA 92247
Attn: John P. Gamlin
(760) 391-5072
9. Assionment of Aoreement. The Developer may not assign, sublet, hypothecate,
encumber, or transfer (whether voluntarily or involuntarily) its obligations hereunder to any
party without the prior written consent of the City, which consent may be withheld in the
City's sole and absolute discretion.
10. 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.
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F. This Agreement may be executed in counterparts, which when taken together, shall
constitute one fully executed document.
11 . 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.
12. Authoritv of Sionatories. 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.
* * * * *
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and
year first written above.
CITY OF LA QUINTA:
/
Thomas P. Genovese, City Manager
/2/~7
Date
ATTEST:
Approved as to Form:
I"'---.-
Veronica Monte .
City of La Qui ta
M. Katherine Je n, City Attorney
City of La Quinta
Developer: ND La Quinta Partners, LLC
80-955 Avenue 52
P.O. Box 1482
La Quinta, CA 92247
BY' ~Q!;C: ~
Date @
Title: John Gamlin, Senior Vice President - East of Madison, LLC_
By:
Date
Title:
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CALIFORNIA ALL.PURPOSE ACKNOWLEDGMENT
State ot California
County of k\v~\ct-e-
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to be the person(s) whose narne(s) isl!lte
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capacity(ies), and that by his/fler/thQ(,r
signature(s) on the instrument the person(s), or
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WITNESS my hand and official seal.
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-Signature of Notary Public
OPTIONAL
Though the mformation below /$ not required by law, it may prove valuable to persons relymg on the document and could prevent
fraudulent removal and reattachment of this form to another document
Description of Attached Document
Title or Type of Document:
Document Date:
Number of Pages:
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer
Signer's Name:
.
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D Individual
D Corporate Officer - Title(s):
D Partner - D limited D General
D Attorney-in-Fact
D Trustee
D Guardian or Conservator
D Other:
Signer Is Representing:
@ 1999 National Notary AssoCIation' 9350 De Solo Ave . PO Box 2402 . Chatsworth. CA 91313-2402' wwwnallonalnolaryorg
Prod No 5907
Reorder Call Toll-Free 1-800-876.6827
Exhibit A
AVENUE 52 - All American Canal Bridge to Madison Street
DIF PROGRAM IMPROVEMENTS - TRACT 29894-2
MAXIMUM REIMBURSEMENT FUNDING
AVENUE 52 STREET AND
MEDIAN IMPROVEMENTS
- (All American Canal
to Madison Street)
Work Com Dieted (Eligible for DIF Reimbursementl
Item # Description Units
Unit Cost
Quantitv Total Cost
1 Street and Landscaped Median L.S.
Improvements
- Required Off-Site Street
Improvements Eligible for
Reimbursements from Development
Impact Fee Fund (Per Tetra Tech
Plan Set No. 04015, Sta. 39 + 00 to
62 + 80)
$1,344,690
1 $1 ,344,690
Maximum Reimbursement Funding
For Required Improvements (not to exceed):
$1,344,690
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Exhibit B
July 5, 2006 DIF Cost Detail
Avenue 52 (Jefferson Street to Y, Mile East of Madison Street)
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CITY OF LA QUINTA: DEVELOPMENT IMPACT FEE (OIF) COST DETAIL
Project Type: Primary Arterial
Project:
Avenue 52 (Jefferson Street to 1/2 mile east of Madison)
D . ti
eSCrlPt, on
The proposed improvements include the installation of median island, median island landscape, irrigation and
electrical, and the adjustment of the centerline profile to implement urban drainage concept for the future
widening of the north and south sides, from Jefferson Sl. to Madison; and the installation of half a median
island, median island landscape, irrigation and electrical and the adjustment of the centerline profile to
Implement urban drainage concept for future widening of the south side, from Madison Sl. to 1/2 mile east 0
Madison.
ITEM DESCRIPTION UNITS QUANTITY UNIT ELIGIBLE
COST DIF COST
1 MOBILIZATION LS 1 $208.921.63 $208,921.63
2 TRAFFIC CONTROL LS 1 $189,928.75 $189,928.75
3 DUST CONTROL LS 1 $81,787.50 $81,787.50
4 UNCLASSIFIED FILL CY 4500 $14.00 $63,000.00
5 UNCLASSIFIED EXCAVATION CY 4500 $14.00 $63,000.00
6 6" CURB LF 13200 $10.00 $132,000.00
7 4.5" AC OVER 6" AB SF 198000 $2.65 $524.700.0C
8 SIGNING AND STRIPING LS 1 $25.000.00 $25.000.0
9 LANDSCAPE SF 118800 $3.50 $415,800.~
10 IRRIGATION SF 118800 $2.50 $297,000.0
11 ELECTRICAL SF 118800 $2.50 $297,000.0
SUB TOTAL ~2,298, ~R
I Design:l .L:l9,tl' .
1 InspectionIT esting/Survey:1 178.105.6
Estimated Soft Costs: 1 City Admin:lI $114.906.891
Contlngencv:tl $423.144.641
Jul-06 Total Estimate:1I $3.244,108.881
Note: The project also includes the construction of a new outside lane adjacent to Polo Estates.
July 5, 2006 Update
Appendix J (8 of 20)
Exhibit C
July 5, 2006 DIF Fee by Development Category
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City of La Quinta - Development Impact Fee Study
F. SUMMARY OF IMPACT FEES
Table Sol summarizes the recommended impact fees by development category and facility type.
The amounts shown in that table based on the analysis in subsequent sections of this report.
SI,930
DU S1930 S67
DU St.127 S39
}:SF S3n9 S130
General Com }:SF $3 039 SI06 $3 ]2
Tourist Com Room S982 S34 S1165
OolfCourses Acre S363 S13 S544
G. PROJECTED REVENUE
Table 8-2 shows projected total revenue from impact fees, from now to build out, assuming that
the fees are adopted as recommended and that all development anticipated in this report actually
occurs. Note that projected revenue is given in current dollars.
Tnm ol1ation
Parks .
Civic Center
Fire Station
Libraries
Communi Centers
Street and Park Maintenance
TOTAL
$44 509035
$\ 058823
$\2971,484
$1,817 542
$47906\5
$\ 00579\
$1,492 \95
$78 645 484
1 RcsidentilJ- Single Family Detached
2 Dwel1ing Unit
3 Residential- Single Family Attached
4 Residential-Multi family and otha-
S 1.000 Square Feet ofOross Building Area
6 Project Revenue in current dollars
July 5, 2006 Update
Page 4