LQ & RDA & HA / Funding Agreement 11FUNDING AGREEMENT FOR FUTURE PUBLIC IMPROVEMENTS AND AFFORDABLE
HOUSING IN THE CITY OF LA QUINTA
THIS FUNDING AGREEMENT ("Agreement") is made and entered into this
18th day of January, 2011, by and among the LA QUINTA REDEVELOPMENT
AGENCY, a public body corporate and politic ("Agency"), the CITY OF LA QUINTA,
a charter city and municipal corporation ("City"), and the LA QUINTA HOUSING
AUTHORITY, a public body, corporate and politic ("Authority").
RECITALS
WHEREAS, Agency is a public body, corporate and politic, organized under
the California Community Redevelopment Law (Health & Safety Code § 33000 et
seq.); and
WHEREAS, City is a municipal corporation and a charter city of the State of
California organized and existing under the Constitution of the State of California;
and
WHEREAS, Authority is a public body, corporate and politic, organized under
the California Housing Authorities Law (Health & Safety Code § 34200 et seq.);
and
WHEREAS, Agency, pursuant to Health and Safety Code Section 33445, is
authorized to provide funding for the development of publicly owned
improvements; and
WHEREAS, City and Agency mutually desire to enter into this Agreement to
set forth their respective obligations with respect to the funding of certain public
improvements (collectively, the "Public Improvements") outlined on Exhibit "A" and
Exhibit "B", which exhibits are attached hereto and incorporated herein by this
reference; and
WHEREAS, it is estimated that the costs of Public Improvements is
$210,010,897; and
WHEREAS, City does not have the funding to plan, design, or build the
Public Improvements without financial assistance from the Agency; and
WHEREAS, to ensure that the Public Improvements are completed in a timely
manner, the Agency wishes to fund $210,010,897 to the City from its future
receipts of non -housing Tax Increment that is not currently encumbered for other
purposes;
WHEREAS, City, Agency, and Authority wish to ensure the continued
provision of affordable housing within the community to serve the needs of existing
and future residents who qualify as moderate -income, low-income, and very low-
income; and
WHEREAS, City has been assigned the following affordable housing
obligations pursuant to the Regional Housing Needs Assessment for the years
2008-2014: Very Low -Income — 1,065 dwelling units, Low -Income — 724 dwelling
units, and Moderate -Income — 796 dwelling units; and
WHEREAS, to ensure that adequate housing is provided for persons within
Moderate -Income, Low -Income, and Very Low -Income households, the Agency
wishes to pay to the City and/or the Authority its future Low- and Moderate -
Income Housing Proceeds that are not previously encumbered for other purposes in
order to fund the affordable housing projects listed on Exhibit "C" ("Housing
Projects"); and
WHEREAS, City and Authority do not have the funding to plan, design, or
build the Housing Projects without the Agency funding; and
WHEREAS, to ensure that the Housing Projects are completed in a timely
manner and that the City's residents of all income categories have decent, safe and
sanitary housing, the Agency wishes to pay $589,886,674 to the City and/or
Authority from its future receipts of Low- and Moderate -Income Set Aside of the
Tax Increment that is not currently encumbered for other purposes;
WHEREAS, graffiti is a significant blighting condition within Redevelopment
Project Area Nos. 1 and 2;
WHEREAS, with other demands on the City's General Fund, its ability to
timely and fully remove graffiti has been impaired; and
WHEREAS, the annual cost of graffiti removal in Redevelopment Project Area
Nos. 1 and 2 is $138,000;
WHEREAS, the Agency wishes to fund the removal of graffiti in the City
from the execution of this Agreement until the dates specified below.
2
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing Recitals, which are
incorporated herein by this reference, and the mutual covenants and promises
hereinafter contained, Agency and City agree as follows:
Section 1. Agency Payment for Public Improvements.
Agency hereby agrees to pay to City the amount of ($210,010,897) ("Public
Improvements Funding") from its future non -housing tax increment funds for
Redevelopment Project Area Nos. 1 and 2 that are not encumbered for other
purposes. The Public Improvements Funding shall be used to plan, design, and
construct the Public Improvements. No portion of the Public Improvements
Funding shall be used for any purpose not permitted by Health and Safety Code
Section 33445. The portion of the Public Improvements Funding derived from
Project Area No. 1 will be used to fund the Public Improvements located in or
immediately adjacent to Project Area No. 1. The portion of the Public
Improvements Funding derived from Project Area No. 2 will be used to fund the
Public Improvements located in or immediately adjacent to Project Area No. 2. No
portion of the Public Improvements Funding for the Public Improvements shown in
Exhibit "C" shall be utilized prior to the completion of the public hearing process
required by Health & Safety Code Section 33679.
Section 2. Agency Payment for Affordable Housing.
Agency hereby agrees to pay to City and/or the Authority (as determined by
the City Council) the amount of ($589,886,674) ("Affordable Housing Funding")
from the future Low and Moderate Income Set Aside of the tax increment funds for
Redevelopment Project Area Nos. 1 and 2 that are not encumbered for other
purposes. The Affordable Housing Funding shall be used to plan, design, and
construct the Housing Projects. The City shall be responsible for the expenditure
of the Affordable Housing Funds and for compliance with all legal requirements
imposed on the funds.
Section 3. Agency Payment for Graffiti Removal.
Agency hereby agrees to pay to City the amount of ($138,000) ("Graffiti
Removal Funding") for each fiscal year, beginning with the 2010-2011 fiscal year,
from its future non -housing tax increment funds for Redevelopment Project Area
Nos. 1 and 2. The funding shall be allocated as follows: $82,800 for Project Area
No. 1, and $55,200 for Project Area No. 2. The Graffiti Removal Funding shall be
used solely for graffiti removal in Project Area Nos. 1 and 2. The Graffiti Removal
Funding shall be in the amounts shown on Exhibit "D".
F
Section 4. Entire Agreement; Amendments.
This Agreement shall constitute the entire agreement of the parties. This
Agreement may be amended or modified only by an agreement in writing signed by
the parties.
Section 5. Severability of Provisions.
No provision of this Agreement that is held to be unenforceable or invalid
shall affect the remaining provisions, and to this end all provisions of this
Agreement are hereby declared to be severable.
[end — signature page follows]
G]
IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed by their authorized representatives, as of the date first above written.
"AGENCY"
LA QUINTA REDEVELOPMENT AGENCY
BY�/ i� i�� 11r-4/•
THOMAS P. GENOVESE,
Executive Director
ATTEST
c
VERONICA
Agency Sei
APPROVED AS TO FORM:
K4. I-ATH5AINE JE
Agency Counsel
ATTES
VERONICAv ,- MONTECINO, CMC
City Clerk
IYiINLVAI
NE JENSQN, City
"CITY"
CITY OF LA QUINTA
THOMAS P. GENOVESE
City Manager
5
"AUTHORITY"
LA Q INTA HOUSING AUT ORITY
yA��
THOMAS P. GENOVESE
City Manager
City
APBRUVED AS TO FORM:
r
WI. KATHERNE JENS
Authority Legal Coun
EXHIBIT "A"
PUBLICLY OWNED IMPROVEMENTS IN LA QUINTA NOT SUBJECT TO HEALTH
AND SAFETY CODE SECTION 33679
[SEE LIST ON FOLLOWING PAGE]
7
Exhibit A - Redevelopment Project Areas 1 and 2, Public Improvements Without Buildings
RDA PA 1
Washington/1-10 Interchange
SilverRock Phase @ Golf Course
SilverRock Phase 2 Infrastructure
SilverRock Entry Feature Road
Golf Cart - Phase 1
SilverRock Canal
Village Area Infill Improvements
Landscape Greens Project
Eisenhower Synchronization
Ahmanson Drive Street abnd Drainage Improvements
Village Land Acquisition
Ave 50 Bridge Improvements
Madison St Median Island Improvement Ave 54 to 56
Ave Bermudas Storm Drain Improvements
RDA 1 Roadway Reconstruction
City Hall Solar Panels
Library Senior Center Solar Panels
Co SilverRock Resort Irrigation and Pump Station Replacement
New Community Park
SilverRock Passive Park
Phase 2 Golf Cart
Calle Estado/La Fonda Mid Black Crossing
Madison Street (Ave 52 to Ave 54)
Avenue 50 (Washington Street to Madison Street)
Avenue 52 Street Improvements
Avenue 58 Street Improvements
New Traffic Signal (Jefferson Street at Avenue 54)
Traffic Signal Citywide Central Control Unit
New Traffic Signal (Eisenhower Drive at Montezuma)
Sound Attenuation Wall (E. Madison at Trilogy)
Sports Complex Field and Lighting Improvements
Total RDA PA 1:
Grand Total RDA PA 1 and 2:
Total Cost
RDA PA 2
Total Cost
128,311.00
A Street Extension (Dune Palms to Komar Ctr)
462,784.00
1,682,006.00
Hwy 111 Utility Underground
140,157.00
21,261,055.00
Jefferson Street Parkway Landscaping (Vista Grande to Westward
782,907.00
24,389,181.00
Drainage Improvements(NE Simon & Washington)
478,145.00
247,760.00
Dune Palms/Hwy 111
6,059.00
5,957,836.00
Adams Synchronization
81,524.00
63,176.00
Sidewalks - Various Locations
25,000.00
47,385.00
Handicap Ramps
10,000.00
136,857.00
Auto Dealer Parkway Redesign
17,000.00
197,638.00
MiraFlores Retention Basin Modifications
383,404.00
7,500,000.00
Washington St Dual Left at Ave 48
464,177.00
3,760,000.00
Hwy 111 Dedicated Right Turn at Washington Street
264,277.00
1,777,370.00
Washington St Drainage Improvements - Phase 2
313,296.00
317,888.00
Sidewalks
100,000.00
6,000,000.00
Handicap Ramps
40,000.00
1,000,000.00
Washington St Bridge Railing Replacement
535,177.00
1,000,000.00
Fred Waring Drive Reconstruction (Washington to Adams)
2,012,779.00
2,281,500.00
Miles Ave reconstruction (Adams to Dune Palms Dr)
767,403.00
20,000,000.00
Phase 3 - Washington St Drainage Improvements (St Francis of A;
1,131,997.00
10,000,000.00
A Street Extension (Dune Palms to Komar Ctr)
86,671.00
680,738.00
RDA 2 Roadway Reconstruction
4,000,000.00
115,271.00
City Entrance Monuments and Landscape Improvements
1,400,000.00
1,162,354.00
New Traffic Signal (Washington Street at Lake La Quinta)
430,000.00
1,274,108.00
Dune Palms Road Bridge Spanning the Whitewater River
12,408,000.00
2,648,311.00
Fred Waring Drive Median Island Landscape Improvements (Wash
3,998,464.00
6,935,011.00
Miles Avenue Median Curb/Median Landscape -
1,237,880.00
430,000.00
Palm Royale Median Island Improvements
86,671.00
550,000.00
Washington Street Bridge Railing
535,177.00
430,000.00
New Traffic Signal (Caleo Bay at Ave 47)
430,000.00
192,115.00
New Traffic Signal (Adams Street at Corporate Center)
430,000.00
6,400,000.00
New Traffic Signal (Dune Palms Road @ Corporate Center)
430,000.00
New Traffic Signal (Washington Street at Via Sevilla)
430,000.00
Traffic Signal Citywide Central Control Unit
550,000.00
Whitewater Channel Mult-use Trail
2,000,000.00
128,565,871.00 Total RDA PA 2:
165,034,820.00
36,468,949.00
i
EXHIBIT "B"
PUBLICLY OWNED IMPROVEMENTS IN LA QUINTA SUBJECT TO HEALTH AND
SAFETY CODE SECTION 33679
[SEE LIST ON FOLLOWING PAGE]
9
EXHIBIT B
Exhibit B - Project Areas 1 and 2, Public Improvements With Buildings
RDA PA 1
SilverRock Clubhouse
Community Center (Expansion of Senior Center)
Corporate Yard Phases II and III
Black Box Theater
Village Area Parking Structure
Fritz Burns Pool Improvements (Expansion)
RDA PA 2
Corporate Yard Phases 2 and 3
5 Bus Shelters
Grand Total RDA PA 1 and 2:
Total Cost
23,332,283.00
3,000,000.00
4,082,504.00
3,000,000.00
7,500,000.00
1,500, 000.00
Subtotal: 42,414, 787.00
Total Cost
1,936,290.00
625, 000.00
Subtotal: 2,561,290.00
44,976,077.00
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EXHIBIT "C"
AFFORDABLE HOUSING PROJECTS
[SEE LIST ON FOLLOWING PAGE]
11
EXHIBIT C
EXHIBIT "C"
La Quinta Redevelopment Agency Affordable Housing Production
The La Quinta Redevelopment Agency ("RDA") is required to produce 2,307 units
of affordable housing. To date, the RDA has provided a total of 1,059 units of
affordable housing. Therefore, the RDA is required to produce an extra 1,069
units.
On -Going Project Production Summary — The City has acquired certain parcels of
land for the purposes of building affordable housing. All of the following projects
have involved significant costs to the RDA for the purposes of acquisition,
environmental evaluation, preliminary planning, demolition of blighted structures,
and/or rehabilitation plans.
Project
Anticipated
Area
Project Name
Description
Expenditure
Substantially rehabilitate 72 very -low income senior
and special needs units owned by the RDA;
Washington Street
construct up to 83 additional very -low income senior
2
Apartments
units on adjacent RDA -owned property
$18,200,000
Dune
Approx 95 unit multi -family complex; if Agency is
2
Palms/Westward Ho
able to acquire adjacent 39,000 sf property
$18'00U00
Potential 32 loft dwellings on Agency -owned 35,000
Village Live -Work
sq. ft. parcel; Agency looking to acquire adjacent
1
Housing
15,000 s . ft. parcel to expand project
$8,700,000
Provide funding to continue building HFH homes on
1
Habitat for Humanity
Agency and HFH-owned vacant lots
$525,000
Purchase and rehab of foreclosed homes; 6
Foreclosed Home
purchased and 5 rehabbed to date; plan to continue
1 & 2
Purchase Program
program
$3,200,000
$48,625,000
To complete these projects which will result in 287 units of very low-, low- and
moderate -income units, an additional $48,625,000 in funding will be required.
Future Project Production Summary — In addition to the 1,059 affordable units
already produced plus the existing projects described above, the RDA is required to
produce an additional 961 units of affordable housing. In order to achieve the RDA
state mandated production requirements, the RDA will be required to acquire
additional land and fund planning and construction efforts.
In order to account for future increases in land and construction costs, the need to
build higher density housing due to the decreasing availability of vacant land, and
potential that the Agency will need to develop affordable housing outside of its
Redevelopment Project Areas thus will need to build two dwellings for each
dwelling it receives credit for, the Agency will need to budget $563,227 per unit or
$541,261,674 to satisfy its affordable housing production requirements.
12
EXHIBIT "D"
GRAFFITI REMOVAL FUNDING
[SEE LIST ON FOLLOWING PAGE]
13
EXHIBIT D
Graffiti Removal
10/1
11/1
12/1
13/1
14/1
15/1
16/1
17/1,
18/1'
19/21
20/2:
21/2:
22/2:
23/2�
24/2!
25/2!
26/2,
27/21
28/2�
29/3(
30/3]
31/32
32/33
33/34
34/35
35/3E
36/37
37/38
38/39
39/40
Total
60%
PA 1
40%
PA 2
Total
1 82,800
55,200
138,000
2 82,800
55,200
138,000
3 82,800
55,200
138,000
1 82,800
55,200
138,000
i 82,800
55,200
138,000
i 82,800
55,200
138,000
82,800
55,200
138,000
3 82,800
55,200
138,000
3 82,800
55,200
138,000
82,800
55,200
138,000
82,800
55,200
138,000
82,800
55,200
138,000
82,800
55,200
138,000
82,800
55,200
138,000
82,800
55,200
138,000
82,800
55,200
138,000
82,800
55,200
138,000
82,800
55,200
138,000
82,800
55,200
138,000
82,800
55,200
138,000
82,800
55,200
138,000
82,800
55,200
138,000
82,800
55,200
138,000
82,800
55,200
138,000
0
55,200
55,200
0
55,200
55,200
0
55,200
55,200
0
55,200
55,200
0
55,200
55,200
0
55,200
55,200
1,987,200 1,656,000 J,t)4a,ZVV
14