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2012 04 03 SACITY AS SUCCESSOR ACIENCY TO THE LAQUINTA REPEVELOPMENTACENCY Agendas and staff reports are available on the City's web page: www.la-quinta.org AGENDA CITY COUNCIL CHAMBERS 78-495 Calle Tampico La Quinta, California 92253 Regular Meeting TUESDAY, APRIL 3, 2012 AT 4:00 P.M. Beginning Resolution No. SA 2012-004 CALL TO ORDER ROLL CALL Successor Agency Members: Evans, Franklin, Henderson, Osborne and Chairperson Adolph CLOSED SESSION - NONE PUBLIC COMMENT At this time members of the public may address the City Council acting as the legislative body for the City as Successor Agency to the dissolved La Quinta Redevelopment Agency on any matter not listed on the agenda. Please complete a "request to speak" form and limit your comments to three minutes. CONFIRMATION OF AGENDA APPROVAL OF MINUTES 1 . APPROVAL OF MINUTES OF MARCH 20, 2012 CONSENT CALENDAR NOTE: Consent Calendar items are routine in nature and can be approved by one motion. 1 APPROVAL OF DEMAND REGISTER DATED APRIL 3, 2012 CITY AS SUCCESSOR AGENCY TO RDA 1 APRIL 3, 2012 2. ADOPTION OF A RESOLUTION APPROVING AN AMENDED RECOGNIZED OBLIGATION PAYMENT SCHEDULE OF THE FORMER LA QUINTA REDEVELOPMENT AGENCY,FOR THE PERIOD OF JULY 2012 THROUGH DECEMBER 2012 3. APPROVAL OF AN AMENDED SCHEDULE OF PERFORMANCE FOR THE OWNER PARTICIPATION AGREEMENT AMONG THE FORMER LA QUINTA REDEVELOPMENT AGENCY, MEGA DEALER LLC, AND ROBERT N. LA TORRE, INC. FOR THE TORRE NISSAN DEALERSHIP LOCATED AT 79-125 HIGHWAY 111 4. APPROVAL OF A SUCCESSOR AGENCY ADMINISTRATIVE BUDGET FOR THE PERIOD OF JULY 2012 THROUGH DECEMBER 2012 BUSINESS SESSION - NONE STUDY SESSION 1 . DISCUSSION OF ITEMS FOR FUTURE OVERSIGHT BOARD CONSIDERATION ADJOURNMENT The next regular meeting of the City as Successor Agency to the La Quinta Redevelopment Agency will be held on April 17, 2012 commencing with closed session at 3:00 p.m. and open session at 4:00 p.m. in the City Council Chambers, 78-495 Calle Tampico, La Quinta, CA 92253. 1 DECLARATION OF POSTING 1, Susan Maysels, Interim City Clerk of the City as Successor Agency to the La Quinta Redevelopment Agency, do hereby declare that the foregoing agenda was posted on the outside entry to the Council Chamber at 78-495 Calle Tampico and on the bulletin boards at 51-321 Avenida Bermudas and 78-630 Highway 111, on March 30, 2012. DATED: March 30, 2012 SUSAN MAYSELS, Inte rn City Clerk City of La Quinta, California 4 002 CITY AS SUCCESSOR AGENCY TO RDA 2 APRIL 3, 2012 Public Notices • The La Quinta City Council Chamber is handicapped accessible. If special equipment is needed for the hearing impaired, please call the City Clerk's Office at 777-7103, twenty- four (24) hours in advance of the meeting and accommodations will be made. • If special electronic equipment is needed to make presentations to the City Council, arrangement should be made in advance by contacting the City Clerk's Office at 777-7103. A one (1) week notice is required. • If background material is to be presented to the City Council during a City Council meeting, please be advised that eight (8) copies of all documents, exhibits, etc., must be supplied to the City Clerk for distribution. It is requested that this take place prior to the beginning of the meeting. • Any writings,or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at the City Clerk counter at City Hall located at 78-495 Calle Tampico, La Quinta, California, 92253, during normal business hours. CITY AS SUCCESSOR AGENCY TO RDA 3 APRIL 3, 2012 r) CITY AS SUCCESSOR ACANCY TO THE LA QUINTA REDEVELOPMENT ACENCY ADDENDUM TO AGENDA Regular Meeting TUESDAY, APRIL 3, 2012 AT 4:00 P.M. CONSENT CALENDAR 5. ADOPTION OF A RESOLUTION APPROVING AN AMENDED RECOGNIZED OBLIGATION PAYMENT SCHEDULE OF THE FORMER LA QUINTA REDEVELOPMENT AGENCY FOR THE PERIOD OF JANUARY 2012 THROUGH JUNE 2012 NOTICE The Successor Agency is permitted to discuss and/or take action on this matter at its regular meeting where the matter was not first described on a duly noticed agenda because it has determined that there is a need for immediate action which cannot reasonably wait for the next regularly scheduled meeting. The need for immediate action came to the attention of the Successor Agency after the agenda had already been posted. This determination that a need for immediate action is to be made by two-thirds of the total membership of the Successor Agency §54954.2(b)(2). DATED: April 3, 2012 S�4� "rLf - ----- Susan Maysels, Interim City Clerk City of La Quinta, California .0 004 ir�;! I COUNCR&EETING DATE: April 3, 2012 ITEM TITLE: Approval of Demand Register Dated April 3, 2012 9 AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: RECOMMENDATION: It is recommended the Suc cessor Agency of the La Quinta Redevelopment Agency: Receive and File the Demand Register Dated April 3, 2012 of which $22,801.00 Represents Successor Agency Expenditures as detailed below: Vendor: Account M Amount: Purpose: Rutan & Tucker 245-9001-703.32-01 $1,140.00 Retainer Rutan & Tucker 245-9001-703.32-01 $2,418.00 Affordable Housing PA11 Rutan & Tucker 245-9001-703.32-01 $7,149.25 Redevelopment Legislation R I utan & Tucker 246-9002-703.32-01 $150-50 Miraflores Project Rutan & Tucker 246-9002-703.32-01 $570.00 Retainer Rutan & Tucker 246-9002-703.32-01 $1,163.50 Affordable Housing PA2 Rutan & Tucker 246-9002-703.32-01 $7,149.25 Redevelopment Legislation Rutan & Tucker 405-9001-702.32-01 $1,140.00 Retainer Rutan & Tucker 406-9002-702.32-01 $570.00 Retainer 005 Rutan & Tucker 406-9002-702.32-01 $107.50 Centre at La Quinta Rutan & Tucker 406-9002-702.32-01 $1,243.00 MilesMashington By adoption of Resolution No. 2012-002, the City of La Quinta has affirmatively elected to be the Successor Agency of the La Quinta Redevelopment Agency. Pursuant to Health and Safety Code Section 34177(a), the Successor Agency of the La Quinta Redevelopment Agency shall continue to make payments required pursuant to an adopted enforceable obligations payment schedule. The payments above are required pursuant to the enforceable obligations payments schedule adopted by the La Quinta Redevelopment Agency on January 17, 2012. Pursuant to Health and Safety Code Seciton 34173(e), the liability of the Successor Agency of the La Quinta Redevelopment Agency, when acting pursuant to the powers granted under ABX1 26, are limited to the extent of the total sum of property tax revenues it receives pursuant to part 1.85 of ABX1 26 (e.g., Health and Safety Code Sections 34170 — 374190) and the value of assets transferred to it as Successor Agency for the dissolved La Quinta Redevelopment Agency. Respectfully submitted, Approved for submission by: �-�V �-- a�-� - Mark Weiss, Interim F-xecutive Director 006 Tar 4 4 a" AGENDA CATEGORY: COUNCIL&EETING DATE: ADO 3, 2012 BUSINESS SESSION: ITEM TITLE: Adoption of a Resolution Approving an Amended Recognized Obligation Payment Schedule of CONSENT CALENDAR: the Former La Quinta Redevelopment Agency for the STUDY SESSION: Period of July 2012 through December 2012 I all .13 It ["JI WA 111 laig RECOMMENDATION: Adopt a Resolution approving the amended Recognized Obligation Payment Schedule for the period of July 2012 through December 2012. FISCAL IMPLICATIONS: Approval of the amended Recognized Obligation Payment Schedule ("ROPS") will result in an administrative budget allowance of approximately $391,373 (3% of total ROPS) if the ROPS and the budget are approved by the Oversight Board. BACKGROUND AND OVERVIEW: The Successor Agency approved a Recognized Obligation Payment Schedule for the period of July 2012 through December 2012 at its March 6, 2012 meeting. However, based on recent communication from the State Department of Finance ("DOF"), staff has made amendments to the ROPS for this period. The changes are being recommended by staff to avoid the DOF's threat that the payments to the City as Successor Agency could be delayed due certain items being included in the ROPS. The changes include: Under PA1, the DOF has questioned the enforceability of the agreement with La Quinta Palms Realty for purchase and rehabilitation of foreclosed homes. Staff believes this is an enforceable obligation and will leave it on the ROPS for Oversight Board consideration. However, staff has removed the monthly 007 payments from the schedule as of this point in time pending a determination on the enforceability of this agreement. Under PA2, the DOF has questioned the construction of Washington Street Improvements, given there is no construction contract in place. Staff contends this is an enforceable obligation, as the former RDA made a written commitment to the United States Department of Agriculture -Rural Development (USDA-RD) to complete the improvements. The USDA-RD noted that their decision to allow the transfer of the property to the former RDA was based on this commitment. Therefore, staff is leaving the item on the ROPS, but has removed the monthly payments from the schedule. Additionally, because the final disposition of housing bond funds is currently in question, the Washington Street Apartments project has been placed on hold. Therefore, payments originally listed in the ROPS under a contract with the Rosenow Spevacek Group for construction and bid document preparation have been removed from the monthly payment schedule. The two deeds of trust documents for the Washington Street Apartments are listed on the ROPS. The payments under the loans are made to Provident Savings Bank and to USDA - Rural Development. (See items 6 and 7 for Project Area 2.) In addition, the ABx1 26 does not recognize agreements between former redevelopment agencies and their sponsoring cities as enforceable obligations. Therefore, the agreement between the City of La Quinta and the La Quinta Redevelopment Agency to cover staff, overhead, and rent has been removed. These costs will now be covered by the Successor Agency administrative allowance. The Coral Mountain Disposition and Development Agreement, listed as item number 4 on the PA 2 ROPS schedule, has been changed. The tax credit lender will likely require the balance of the (former) La Quinta Redevelopment Agency (now Successor Agency) loan be deposited into an escrow account. The disbursement is shown on the ROPS; however, because the funding is from existing housing fund balance, and is not coming from future property tax disbursements, it has not been factored into the Successor Agency administrative allowance. Lastly, while the Owner Participation Agreement is listed on the ROPS, the payment to Torre Nissan have also been excluded from the total ROPS, as these are anticipated to be paid with 2011 Project Area No. 2 taxable bond proceeds the Successor Agency has on -hand, rather than being paid with future property tax disbursements; therefore, this amount cannot be factored into the Successor Agency administrative allowance. 008 On April 4, 2012, the Oversight Board will review the ROPS for January -June 2012 and July -December 2012. Staff will report back to the Successor Agency the outcome of the Oversight Board's review. FINDINGS AND ALTERNATIVES: The alternatives available to the Successor Agency include: 1 Adopt a Resolution approving the amended Recognized Obligation Payment Schedule for the period of July 2012 through December 2012; or 2. Do not adopt a Resolution approving the arnended Recognized Obligation Payment Schedule for the period of July 2012 through December 2012; or 3. Provide staff with alternative direction. Respectfully submitted, Debbie Powell Economic Development/Housing Manager Approved for submission by: Mark Weiss Interim Executive Director RESOLUTION NO. SA 2012 - A RESOLUTION OF THE CITY OF LA QUINTA ACTING AS THE SUCCESSOR AGENCY TO LA QUINTA REDEVELOPMENT AGENCY ADOPTING THE AMENDED RECOGNIZED OBIL IGATION PAYMENT SCHEDULE FOR THE PERIOD OF JULY 2012 THROUGH DECEMBER 2012 WHEREAS, the City Council of the City of La Quinta ("City Council" or "City," as applicable) approved and adopted (i) the Redevelopment Plan for La Quinta Project Area No. 1 ("Project Area No. 1" or "Project Area No. 1 Redevelopment Plan," as applicable) on November 29, 1983, by Ordinance No. 43, as amended on December 20, 1994, by Ordinance No. 258, on August 19, 2003, by Ordinance No. 388, and on March 16, 2004, by Ordinance No. 402; and (ii) the Redevelopment Plan for La Quinta Redevelopment Project Area No. 2 ("Project Area No. 2' or "Project Area No. 2 Redevelopment Plan," as applicable) on May 16, 1989, by Ordinance No. 139, as amended on December 20, 1994, by Ordinance No. 259, on February 3, 2004, by Ordinance No. 399, on March 16, 2004, by Ordinance No. 403, and on March 16, 2004, by Ordinance No. 404; and WHEREAS, the La Quinta Redevelopment Agency ("Agency") was engaged in activities to execute and implement the Project Area No. 1 Redevelopment Plan and the Project Area No. 2 Redevelopment Plan (collectively, the "Redevelopment Plans") pursuant to the provisions of the California Community Redevelopment Law (Health and Safety Code § 33000, et seq.) ("CRL"); and WHEREAS, as part of the 2011-12 State budget bill, the California Legislature enacted and the Governor signed, companion bill ABx1 26 requiring that each redevelopment agency be dissolved; and WHEREAS, an action challenging the constitutionality of ABx1 26 and ABx1 27 was filed in the California Supreme Court by the California Redevelopment Association, the League of California Cities, and two individual cities; and WHEREAS, on December 29, 2011, the Court upheld ABx1 26; and WHEREAS, Health and Safety Code Section 34169 requires successor agencies to prepare and adopt a "Recognized Obligation Payment Schedule" that lists all obligations of the former redevelopment agency that are enforceable within the meaning of subdivision (d) of Section 34167 for the period of July 2012 through December 2012; and I's 010 Resolution No. SA 2012- Adoption of Amended Recognized Obligation Payment Schedule Adopted: April 3, 2012 Page 2 WHEREAS, on March 6, 2012, the City of La Quinta acting as the Successor Agency to the La Quinta Redevelopment Agency adopted by Resolution Number SA 2012-002 approving a Recognized Obligation Payment Schedule for the period of July 2012-December 2012; and WHEREAS, the City of La Quinta acting as the Successor Agency to the La Quinta Redevelopment Agency wishes to amend the ROPS, which is permitted under Health & Safety Code Section 34177(a)(1); and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred. NOW THEREFORE, BE IT RESOLVED, by the City of La Quinta Acting as the Successor Agency to the La Quinta Redevelopment Agency, as follows: Section 1. Recitals. The Recitals set forth above are true and correct and incorporated herein by reference. Section 2. Adoption of a Recognized Obligation Payment Schedule. In order to enable the City of La Quinta as Successor Agency to strictly comply with ABx1 26, and based on the Recitals set forth above, the Successor Agency hereby adopts the Schedule attached hereto as Exhibit A as the Amended Recognized Obligation Payment Schedule for the period of July 2012 through December 2012. Pursuant to Health & Safety Section 341 73(e), the Successor Agency's liability, including, but not limited to, its liability for the obligations on the attached schedule is limited to the total sum of property tax revenues it receives pursuant to Part 1.85 of AB x1 26. Section 3. Implementation. The Successor Agency hereby authorizes and directs the Interim Executive Director to take any action and execute any documents necessary to implement this Resolution, and further authorizes the Interim Executive Director to forward the Amended Recognized Obligation Payment Schedule to the Oversight Board. Section 4. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution which can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The Successor Agency hereby declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion thereof. ..4 Oil Resolution No. SA 2012- Adoption of Amended Recognized Obligation Payment Schedule Adopted: April 3, 2012 Page 3 PASSED, APPROVED, AND ADOPTED at the meeting of the City of La Quinta Acting as the Successor Agency to the La Quinta Redevelopment Agency held this 3 d day of April, 2012, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: Don Adolph, Mayor City of La Quinta Agency to the La Agency ATTEST: SUSAN MAYSELS, Interim Secretary City of La Quinta Acting as Successor Agency To the La Quinta Redevelopment Agency (AGENCY SEAL) APPROVED AS TO FORM: M. KATHERINE JENSON, Successor Agency Counsel City of La Quinta Acting as Successor Agency To the La Quinta Redevelopment Agency Acting as Successor Quinta Redevelopment .' 4.00( rj� EXHIBIT A 24 0 2 R Zg EO m Iwo 0 E § 013 ..4 �2 A- =8 M 7t N2 'o E 0 EQ lo ow 2 mgn L E g A Li w 16 oc 014 �.Qo. 015 2 pq 0 0 tz . 42 B 0 mo &.. 16 E2 -8 M R -M 9 V-8 ts E 0 —9 19 .2i F 0 E -ig fi z CS z E . . E mm ID E E ? 12 E � 8 "r 2 m . -T m < I'll 016 Cl! oc� C4 < Z;l In 15 CY M E E 12 in L 32 < 0 E E Cr CIT E cli cli "a 017 cq Clt 0 rR -2 ja 20 Q a w - fo WE 13 E 'ji .5 ,g < Wi*,j crt Lck cl� .21 a 12 m m m w m m m m m m m m E E z M E -�T M5 C2 -.4 019 C6 0 0 0 E2 cs 0 N EE 42 22 12 12 jw r5 t 0 m 0 E Q m o E 0 z 32 0 0 E 2' 02 og 2 < jig 4 020 I cNp 4 4 Q" MEMORANDUM TO: Honorable Mayor and Members of the Successor Agency FROM: Mark Weiss, Interim City Manager O� DATE: April 3, 2012 SUBJECT: Successor Agency Consent Item No. 2 Attached is a revised Recognized Obligation Payment Schedule, which is Exhibit A to the resolution contained within this agenda item. The ROPS has been changed to reflect the State Department of Finance's requirement that each line item must include a total, whether actual or estimated, within the "Total Outstanding Debt or Obligation" column. In addition, on page 3, lines 3a, 3b, and 3c related to the Torre Nissan OPA have been corrected to track estimated payments for the OPA. This reduces the administrative allowance slightly, by a total of $341. Thank you. a 021 0 Lu 0 -a U: 1; 0 0 ti E z LS Ct CL 2 E Cl) =0 m mg C;i CZ E .6 > C=i CIE m.L C9 406 20 ak 0. t5 0 E 0 W -2 0 E 0.0 x 0 WE -M 2�sow -6 -60 2 v 0 M m E -E M < < m m CL 0 ci ig is C3 0 E 0 72 .0 E 0 W E 0 0 12 < E ED E 'E 2 E < 0 8w2 < 0 L < mw Mwom mooO m mmm 022 Cz Ci 1=0 m A2 ui C3 C�l Z5 .19 0 06 0 Z; .0 0 EL W G 2 .2 E2 C� E C=T E C6 0 Li C9 E2 12 F E E -5 > 0 Z 'U E > 15 m 0 0 mo E ig W 0 E n 76 —B Z w 0 m E a E 00 E 0 72 2 2 E 2? E 12 c < 0 S E < . M < . = ff x < < J�-- S <MUMW 023 C6 Z2 Ci za; rm USE 0 0 w 75 w C:t Ct CIF m 8 zi 12 -43 E E 15 ts 16 0 *e C5 t-3 u 12 024 IM fa 15 15 Clt cl� Cli Cli I=t Cli w L4 12 S r Cli E E Ew E2 w is % C3 10 E! o rz w 0 16 E ZM E V 15 r= i5 12 w -e z 12 1 E2, w �,Y.E 12 Ci 08 12 8 E 14 0 w < M V -E , 12 < mm cm WE iz, � to 025 Z�; CR r E ca CY cy m 1.5 .0 �14 V m 42 026 0 0 E li LIZ 0 cl� C'! CD IM ID C=� C=� C=t C3 0 0 E T .9 0 m 0 m m m 0 0 m m m w m E 2 o o E E E -9 .2 m mm M m . 0 158 < if .2 Im 021 E 2 Lq 15 Z crk w E 1� 15 'Ei E 42 Cc 72 w w �E L E < t5 a La .2 MO a E E ,6w C) E 26 E c 0 c 0 05 F-- 7 1� tz �, 11 r� .e 028 M Tay/ 4 4 a" AGENDA CATEGORY: COUNCILQ�MEETING DATE: April 3, 2012 BUSINESS SESSION: ITEM TITLE: Approval of an Amended Schedule of CONSENT CALENDAR: 3 Performance for the Owner Participation Agreement Among the former La Quinta Redevelopment Agency, STUDY SESSION: Mega Dealer, LLC, and Robert N. La Torre, Inc. for the PUBLIC HEARING: Torre Nissan Dealership Located at, 79-125 Highway '111 RECOMMENDATION: Approve an amended schedule of performance for the Owner Participation Agreement Among the former La Quinta Redevelopment Agency, Mega Dealer, LLC, and Robert N. La Torre, Inc. for the Torre Nissan Dealership Located at 79- 125 Highway 111. FISCAL IMPLICATIONS: None for this action. BACKGROUND AND OVERVIEW: On June 14, 2011, the former La Quints Redevelopment Agency ("Agency") entered into an Owner Participation Agreement ("OPA") with the owners of the Torre Nissan dealership. With the dissolution of redevelopment, by operation of law, the OPA has been transferred to the City, as the Successor Agency to the La Quinta Redevelopment Agency. The OPA provides for a Successor Agency investment of $1,500,000 to partially fund building rehabilitation and expansion improvements. The goal is to upgrade and expand the facility to incorporate the new corporate image required by Nissan Motor Company's "Nissan Retail Environmental Design (NREDI)" program, and to accommodate a new line of electric automobiles (the Nissan Leaf) and heavy duty commercial vehicles. Torre Nissan has completed the entitlement process to remodel its 15,193 square foot building and expand it by up to 11,377 square feet. The work is underway; Torre Nissan has demolished its showroom in preparation for the remodel and is currently operating in temporary office trailers. They have recently obtained It 029 building permits for the expansion portion of their improvements. However, due to various factors, including challenges with obtaining approvals from Nissan for their improvement plans, and various issues with engineering and hydrology design, they have fallen behind in the original Schedule of Performance (included as Attachment 1). The OPA allows the Interim Executive Director flexibility to modify the schedule within the various items of performance for a maximum of 180 days; however, the project must be completed and obtain a Certificate of Occupancy from the City within 12 months from the Effective Date of the OPA, which would be June 14, 2012. Torre Nissan cannot meet that schedule; they anticipate completion by the end of August 2012. Therefore, staff is recommending the Successor Agency approve an amended Schedule of Performance, with a date to obtain a City Certificate of Occupancy that is 16 months from the Effective Date, which would be October 14, 2012. This should allow sufficient time for construction delays (Attachment 2). FINDINGS AND ALTERNATIVES: The alternatives available to the Successor Agency include: 1 Approve an amended schedule of performance for the Owner Participation Agreement among the former La Quinta Redevelopment Agency, Mega Dealer, LLC, and Robert N. La Torre, Inc.. for the Torre Nissan Dealership Located at 79-125 Highway 111; or 2. Do not approve an amended schedule of performance for the Owner Participation Agreement; or 3. Provide staff with alternative direction. Respectfully submitted, Debbie Powell Economic Development/Housing Manager Approved for submission by: 9� Mark Weiss Interim Executive Director Attachments: 1 Original Schedule of Performance 4 030 2. Amended Schedule of Performance ATTACHMENT I SCHEDULE OF PERFORMANCE Item of Performance Time for Completion Developer's execution and acknowledgement Concurrently with Developer's execution of of the Operating Covenant. Agreement. 2. Agency recordation of the Operating Within five (5) days after Effective Date. Covenant. 3. Developer's preparation and submission of During the week of September 19-23, 2011. Developer Applications, including a complete application for a Site Development Permit (SDPA), which shall include: • Detailed Site Plans • Revised Site Plans • Lighting Plans (photometric) • "Conceptual" Landscaping Plans • Preliminary Grading Plans • "Conceptual" Floor Plans • "Conceptual" Elevations 4. Review of Developer Applications by Agency will use reasonable efforts to cause such applicable City departments and provision of review, and to obtain and provide to Developer any comments to Developer. any comments, during the week of September 26- 30,2011. 5. Developer to revise and resubmit (as During the week of October 10-14, 2011. necessary to address City comments) Developer Applications. 6. Re -review of Developer Applications by During the week of October 17-21, 2011. applicable City departments and preparation of conditions of approval. 7. Architectural and Landscape Review Agency will use reasonable efforts to cause such Committee to review Developer Applications review and comment, and shall use reasonable and provide any comment; Agency prepares efforts to cause City to prepare such report, during staff report. I the week of October 17-21, 2011. 031 Item of Performance Time for Completion 8. Planning Commission hearing and During the week of November 7-11, 2011. consideration of Developer Applications. 9. Developer's submission of application for During the week of November 7-11, 2011. building permits. 10. Plan check review by applicable City Agency will use reasonable efforts to cause such departments and preparation of any review, and to obtain and provide to Developer corrections to Developer. any corrections, during the week of November 14- 18,2011. 11. Developer to correct and resubmit (as During the period of November 2 1 -December 2, necessary to address City comments) plans. 2011. 12. Developer to submit to Agency proposed list No later than November 14, 2011. of Eligible Project Costs 13. Review of Developer's proposed list of Within 10 days after Agency's receipt. Eligible Project Costs by Agency 14. Developer to revise and resubmit (if Within 10 days after receipt of Agency comments. necessary) and obtain Agency approval of list of Eligible Project Costs 15. Plan check re -review by applicable City Agency will use reasonable efforts to cause such departments; Developer obtains issuance of re -review and the issuance of building permits (if building permits (if Developer entitled to Developer is entitled to issuance) during the week issuance). of December 5-December 9, 2011. 16. Developer constructs Project. During the period of December 5, 201 I —April 5, 2012. 17. Developer obtains certificate of occupancy for During the week of April 5-9, 2012. Project. This Schedule of Performance represents the parties' target dates. However, subject to Section 2.4 of the Agreement, this Schedule of Performance may be adjusted by the Agency Executive Director so long as Developer moves the Project forward and obtains a certificate of occupancy for the Project by no later than twelve (12) months from the Effective Date. This Schedule of Performance does not include the time of performance for all obligations arising under the Agreement; rather this schedule focuses only on the development schedule of the Project. The parties are referred to the Agreement for the total description of the parties' obligations and times for performance of matters not identified in this Schedule. The Developer understands that obligations contained in the Agreement may be conditions precedent to the Agency's obligations under this schedule. .. #I " 032 Nothing herein shall be construed to limit the City's legislative authority, which City may exercise, in City's sole and absolute discretion. In all cases where City action is required, Agency shall use reasonable efforts to cause City to take such action in the time prescribed herein. ..4 033 ATTACHMENT 2 , TORRE NISSAN AMENDED SCHEDULE OF PERFORMANCE Item of Performance Time for Completion Developer's execution and acknowledgement Concurrently with Developer's execution of of the Operating Covenant. Agreement. 2. Agency recordation of the Operating Within five (5) days after Effective Date. Covenant. 3. Developer's preparation and submission of During the week of September 19-23, 2011. Developer Applications, including a complete application for a Site Development Permit (SDPA), which shall include: • Detailed Site Plans • Revised Site Plans • Lighting Plans (photometric) • "Conceptual" Landscaping Plans • Preliminary Grading Plans • "Conceptual" Floor Plans • "Conceptual" Elevations 4. Review of Developer Applications by Agency will use reasonable efforts to cause such applicable City departments and provision of review, and to obtain and provide to Developer any comments to Developer. any comments, during the week of September 26- 30,2011. 5. Developer to revise and resubmit (as During the week of October 10-14, 2011. necessary to address City comments) Developer Applications. 6. Re -review of Developer Applications by During the week of October 17-21, 2011. applicable City departments and preparation of conditions of approval. 7. Architectural and Landscape Review Agency will use reasonable efforts to cause such Committee to review Developer Applications review and comment, and shall use reasonable and provide any comment; Agency prepares efforts to cause City to prepare such report, during staff report. the week of October 17-21, 2011. ., % 034 Item of Performance Time for Completion 8. Planning Commission hearing and During the week of November 7-11, 2011. consideration of Developer Applications. 9. Developer's submission of application for During the week of November 7-11, 2011. building permits. 10. Plan check review by applicable City Agency will use reasonable efforts to cause such departments and preparation of any review, and to obtain and provide to Developer corrections to Developer. any corrections, during the week of November 14- 18,2011. 11. Developer to correct and resubmit (as During the period of November 2 1 -December 2, necessary to address City comments) plans. 2011. 12. Developer to submit to Agency proposed list No later than November 14, 2011. of Eligible Project Costs 13. Review of Developer's proposed list of Within 10 days after Agency's receipt. Eligible Project Costs by Agency 14. Developer to revise and resubmit (if Within 10 days after receipt of Agency comments. necessary) and obtain Agency approval of list of Eligible Project Costs 15. Plan check re -review by applicable City Agency will use reasonable efforts to cause such departments; Developer obtains issuance of re -review and the issuance of building permits (if building permits (if Developer entitled to Developer is entitled to issuance) during the week issuance). of December 5-December 9, 2011. 16. Developer constructs Project. During the period of December 5, 201 I —April 5, 2012. 17. Developer obtains, certificate of occupancy for During the week of April 5 9, 2012. During the Project. week of October 8, 2012 This Schedule of Performance represents the parties' target dates. However, subject to Section 2.4 of the Agreement, this Schedule of Performance may be adjusted by the Agency Executive Director so long as Developer moves the Project forward and obtains a certificate of occupancy for the Project by no later than twelve (12) sixteen (16) months from the Effective Date. This Schedule of Performance does not include'the time of performance for all obligations arising under the Agreement; rather this schedule focuses only on the development schedule of the Project. The parties are referred to the Agreement for the total description of the parties' obligations and times for performance of matters not identified in this Schedule. The Developer understands that obligations contained in the Agreement may be conditions precedent to the Agency's obligations under this schedule. If 035 Nothing herein shall be construed to limit the City's legislative authority, which City may exercise, in City's sole and absolute discretion. In all cases where City action is required, Agency shall use reasonable efforts to cause City to take such action in the time prescribed herein. is 036 COUNCItiEDMEETING DATE: April 3, 2012 ITEM TITLE: Approval of a Successor Agency Administrative Budget for the Period of July 2012 through December 2012 RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR. STUDY SESSION: PUBLIC HEARING: Approve the Successor Agency Administrative Budget for the period of July 2012 through December 2012. FISCAL IMPLICATIONS: Per ABx1 26, the Successor Agency will be reimbursed for administrative costs related to Successor Agency (SA) and Oversight Board administration. For the period of July 2012 through December 2012, ABx1 26 provides for an administrative allowance of 3% of the amount listed on the ROPS covering the same time period. At this time, the Recognized Obligation Payment Schedule (ROPS) totals $13,045,750. Three percent of this total is $391,373. However, this total is subject to change based on review and approval by the Oversight Board and State Department of Finance (DOF). The administrative budget for this time period is estimated at $648,197 (Attachment 1). BACKGROUND AND OVERVIEW: ABx1 26, the "Dissolution Act," provides an administrative budget for the successor agencies to carry out wind -down activities of the former redevelopment agencies and to administer the Oversight Board. The Dissolution Act requires the successor agencies to prepare an administrative budget every six months. The estimates include staff time required to carry out Successor Agency and Oversight Board activities and administration, the cost of IT support, supplies, printing of agendas and agenda packets, posting, SA insurance, facility rental and associated facility costs, and certain legal and consulting costs. of ' 037 Once the successor agency reviews and al required to be considered and approved by the Oversight Board's meeting on April 4, While the Dissolution Act does not require the DOF, the DOF does review the action oversight board meeting takes place. Th could question an oversight board's apprc budget. FINDINGS AND ALTERNATIVES: The alternatives available to the Approve the Successor Agency A 2012 through December 2012; or 2. Do not approve the Successor AgE July 2012 through December 201 3. Provide staff with alternative Respectfully submitted, Debbie Powell Economic Development/Housing Manager Attachment: Administrative 2012 )ves the administrative budget, they are Oversight Board. This will take place at 12. ie administrative budgets be submitted to of the oversight boards the day after the efore, it could be assumed that the DOF al of a successor agency's administrative Agency include: inistrative Budgets for the period of July V Administrative Budgets for the period of or Approved for submission by: K I- :� 0-� Mark Weiss, Interim Executive Director for July 2012 through December MoKinall ATTACHMENT I SUCCESSOR AGENCY/OVERSIGHT BOARD JULY-DEC 2012 ADMINISTRATIVE BUDGET PERSONNEL $259,647 its Includes base salary plus benefits. succesw8gencyrw.m WOW ca , n $12.402 $16,902 "act Specific Staff Costs -Tom Nissan Project Specific Staff Costs -Coral Mountain SUPPLIES & SERVICES CONTRACT SERVICES $241,5 This amount provides for legal, consulting, and audit services plus a portion of League of California Cities and Calforma Redevelopment Agency dues related to technical assistance and tranining for implementation of ABx1 26 rW7 -UlmdbyA§�� Ug 07 ustriormis tansts Dues '6',f - 3�CR`A'-D'ue',r&rZ-- �--' $11:000 OZONE Will Legal Services for Successor Agency Legal Servioes�Coraf Mountain Legal Servioss-Torre Nissan Consulting Services for Successor Agency Consulting Services -Torre Nissan Consulting Servioes-Coral Mountain $120,01DO $7,200 $6,000 $66,000 $4,320 $24,000 SUPPLIES AND PUBLICATIONS $2,100 This account provides for various office supplies and publications to be used by SA and OB staff and board members Bill This amount provides for required mailings, agenda rinting, and legal advertising This amount provides for annual replacement charges for information technology items such as ocimputem, printers, and computer related items attributable to SAIOB; and support/hosting for SAIOB web pages, which am required by ABx1 26 airia'A RMAM) TOTAL ADMINISTRATIVE BUDGET $648,197 FUNDING SOURCES: DMI KS_TMTDeP'ALLGWAKCE JULY 2012-DECEMBER 2012 ROPS TOTAL ADMINISTRATIVE BUDGET "M $256,824 W411,1117 039 Tw9k 4 4 a" AGENDA CATEGORY; COUNCIL��EETING DATE: April 3, 2012 BUSINESS SESSION: ITEM TITLE: Adoption of a Resolution Approving an CONSENT CALEN Amended Recognized Obligation Payment Schedule of DAR: the Former La Quinta Redevelopment Agency for the STUDY SESSION: Period of January 2012 through June 2012 PUBLIC HEARING: RECOMMENDATION: Adopt a Resolution approving the amended Recognized Obligation Payment Schedule for the period of January 2012 through June 2012. FISCAL IMPLICATIONS: Approval of the amended Recognized Obligation Payment Schedule ("ROPS") will result in an administrative allowance (5% of total ROPS for this period) of approximately $853,847. This amount is subject to change, pending State Department of Finance final review of the ROPS. BACKGROUND AND OVERVIEW: The Successor Agency initially approved a Recognized Obligation Payment Schedule for the period of January 2012 through June 2012 at its February 21, 2012 meeting, and approved an amendment on March 20, 2012. The March 20, 2012 version of the ROPS was amended due to certain items being contested by the State Department of Finance ("DOF"). Staff is working with the DOF regarding these iterns. r Staff was informed late afternoon on Friday, March 30th that the DOF has added several requirements for the ROPS format. Initially, the DOF directed that payments for January 2012 be removed from the ROPS; now, the DOF wants January payments to be reflected on the ROPS, or they will not approve the ROPS. In addition, the DOF is requiring that total obligations be shown for every line item, including estimates for the total obligation for project -specific items such as staff time and consulting services. Because staff received the information after the agenda had been posted, and the ROPS for this period must be submitted to the 1 040 DOF and the County Auditor -Controller by April 15, 2012, staff is adding this item for action today. In an effort to include all obligations, in the PA2 schedule, staff added two deeds of trusts for the Washington Street Apartments; the payments are made to Provident Savings Bank and USDA -Rural Development. The payments for the Coral Mountain project in PA 2 have been increased to reflect the completion of entitlements, the cost of building permits, financing costs, and the initiation of construction activities. In addition, the monthly figures for building rent were incorrect on the last ROPS; the correct figures have been included in this ROPS. The last page is simply for informational purposes only - it lists the pass -through payments made by the former La Quinta Redevelopment Agency in January 2012; from now on, the County Aud itor- Control I er will handle all property tax distribution payments to taxing agencies. On April 4, 2012, the Oversight Board will review this ROPS and the ROPS for the period of July 2012-December 2012. Staff will report back to the Successor Agency the outcome of the Oversight Board's review. FINDINGS AND ALTERNATIVES: The alternatives available to the Successor Agency include: 1 Adopt a Resolution approving the amended Recognized Obligation Payment Schedule for the period of January 2012 through June 2012; or 2. Do not adopt a Resolution approving the amended Recognized Obligation Payment Schedule for the period of January 2012 through June 2012; or 3. Provide staff with alternative direction. Respectfully submitted, D� Debbie Pov�ell Economic Development/Housing Manager Approved for submission by: k_ J__ L <Z�1� Mark Weiss, Interim Executive Director to 041 RESOLUTION NO. SA 2012 - A RESOLUTION OF THE CITY OF LA QUINTA ACTING AS THE SUCCESSOR AGENGY TO LA QUINTA REDEVELOPMENT AGENCY ADOPTING AN AMENDED RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD OF JANUARY 2012 THROUGH JUNE 2012 WHEREAS, the City Council of the City of La Quinta ("City Council" or "City," as applicable) approved and adopted (i) the Redevelopment Plan for La Quinta Project Area No. 1 ("Project Area No. 1 " or "Project Area No. 1 Redevelopment Plan," as applicable) on November 29, 1983, by Ordinance No. 43, as amended on December 20, 1994, by Ordinance No. 258, on August 19, 2003, by Ordinance No. 388, and on March 16, 2004, by Ordinance No. 402; and (ii) the Redevelopment Plan for La Quinta Redevelopment Project Area No. 2 ("Project Area No. 2" or "Project Area No. 2 Redevelopment Plan," as applicable) on May 16, 1989, by Ordinance No. 139, as amended on December 20, 1994, by Ordinance No. 259, on February 3, 2004, by Ordinance No. 399, on March 16, 2004, by Ordinance No. 403, and on March 1,6, 2004, by Ordinance No. 404; and WHEREAS, the La Quinta Redevelopment Agency ("Agency") was engaged in activities to execute and implement the Project Area No. 1 Redevelopment Plan and the Project Area No. 2 Redevelopment Plan (collectively, the "Redevelopment Plans") pursuant to the provisions of the California Community Redevelopment Law (Health and Safety Code § 33000, at seq.) ("CRL"); and WHEREAS, as part of the 2011-12 State budget bill, the California Legislature enacted and the Governor signed, companion bill ABx1 26 requiring that each redevelopment agency be dissolved; and WHEREAS, an action challenging the constitutionality of ABx1 26 and ABx1 27 was filed in the California Supreme Court by the California Redevelopment Association, the League of California Cities, and two individual cities; and WHEREAS, on December 29, 2011, the Court upheld ABx1 26; and WHEREAS, Health and Safety Code Section 34169 requires successor agencies to prepare and adopt a "Recognized Obligation Payment Schedule" that lists all obligations of the former redevelopment agency that are enforceable within the meaning of subdivision (d) of Section 34167 for the period of January 2012 through June 2012; and 41 042 Resolution No. SA 2012- Adoption of Recognized Obligation Payment Schedule Adopted: April 3, 2012 Page 2 WHEREAS, on March 20, 2012, the City of La Quinta acting as the Successor Agency to the La Quinta Redevelopment Agency adopted by Resolution Number SA 2012-003 approving an amended Recognized Obligation Payment Schedule for the period of January 201 2-June 2012; and WHEREAS, the City of La Quinta acting as the Successor Agency to the La Quinta Redevelopment Agency wishes to amend the ROPS, which is permitted under Health & Safety Code Section 34177(a)(1); and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred. NOW THEREFORE, BE IT RESOLVED, by the City of La Quinta Acting as the Successor Agency to the La Quinta Redevelopment Agency, as follows: Section 1. Recitals. The Recitals set forth above are true and correct and incorporated herein by reference. Section 2. Adoption of a Recognized Obligation Payment Schedule. In order to enable the City of La Quinta as Successor Agency to strictly comply with ABx1 26, and based on the Recitals set forth above, the Successor Agency hereby adopts the Schedule attached hereto as Exhibit A as the Recognized Obligation Payment Schedule for the period of January 2012 through June 2012. Pursuant to Health & Safety Section 341 73(e), the Successor Agency's liability, including, but not limited to, its liability for the obligations on the attached schedule is limited to the total sum of property tax revenues it receives pursuant to Part 1.85 of AB x1 26. Section 3. Implementation. , The Successor Agency hereby authorizes and directs the Interim Executive Director to take any action and execute any documents necessary to implement this Resolution, and further authorizes the Interim Executive Director to forward the Recognized Obligation Payment Schedule to the Oversight Board. The Successor Agency further authorizes and directs the Interim Executive Director to make any modifications to the Recognized Obligation Payment Schedule required by the Oversight Board, Department of Finance, and/or State Controller. Section 4. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution which can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The Successor Agency hereby declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion thereof. 11 1 043 Resolution No. SA 2012- Adoption of Recognized Obligation Payment Schedule Adopted: April 3, 2012 Page 3 PASSED, APPROVED, AND ADOPTED at the meeting of the City of La Quinta Acting as the Successor Agency to the La Quinta Redevelopment Agency held this 3rd of April, 2012, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: Don Adolph, Mayor City of La Quinta Agency to the La Agency ATTEST: SUSAN MAYSELS, Interim Secretary City of La Quinta Acting as Successor Agency To the La Quinta Redevelopment Agency (AGENCY SEAL) APPROVED AS TO FORM: M. KATHERINE JENSON, Successor Agency Counsel City of La Quinta Acting as Successor Agency To the La Quinta Redevelopment Agency Acting as Successor Quinta Redevelopment of 044 ul 41 o G, 06 lb� wo �5 o 0 Eo E L 1 E E 2 2 pa 2 2 0 0 I m C5 2 4ff 0 2 E E E m m < 2 045 slit 132 A HIM T IM ps .1 046 S2 zo zo; zo; ZZ LLJ Lu �6 I In 0 —0 1 00 2 12 -2 E E E E E E o 2 a 42 1, E 1 z 1-2 a 0 t E E 0 .0 E 75 f2 ?. 0 E E z z E E V -n gn 2 < L E Ef E E 0 0 0 0 L � 2 < < < � < < < LIM LU VC :c a 0 12 21 E E E E E 2 8 E 3 R < Z5 Z3 :2 2 65 65 t nn E E E E E < E < -9 '6 S E E E 0 E Z E E Eu -. � 5 1 � I 2 6 C. E5 cc W < -6 c w m 00 0- Ro 0. WZ wz o -.5 'o 4 00 LLI oz� w w , z t- Wo Q.- -Z ow 0. ,,w o mm r: E 2 E2 S2 z MM ME 0 o 0 r ci 4 E E -ci Ia- s A d d Lq L4 LU Lu Lq w w w w w o Q 63 E G L 8L M Z a 2 2 4M o o 75 '0 m m m m w 0 < m m m m m m m m A m E m 0 0 o 5 .2 . . . o .2 . . . o E ZE = = E o E Am E '61 -cc E E E L 1! — — - — - - m o 0 < 0 CD 00 0 050 0 z '2. 00 0 Cc Lli 2 2 ,,1 051 zoo S2 0 w w 0 m z -5 E -E f -E F E r E E E E c E E 9 ig, 9 .12 -6 Q 0 2 —2 -2 2 19 2 2 r 2 2 z 1 Z, 1: 1 M, :E I E z;s w f z E Z;T R 052 T-itf 4 4 a" AGENDA CATEGORY: COUNCIL�EETING DATE: Aoril 3, 2012 BUSINESS SESSION: ITEM TITLE: Discussion of Items for Future Oversight Board Consideration CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: RECOMMENDATION: Review and discuss agenda items for future Oversight Board ("OB") consideration. FISCAL IMPLICATIONS: None for this action. BACKGROUND AND OVERVIEW: The purpose of this study session is to review the activities of former Redevelopment Agency ("RDA") that were in progress when the RDA was dissolved, and provide an outline of potential items to be discussed with the Oversight Board ("OB") in the near future. A. 2011 Redevelopment Agency Actions That Were Pending When the RDA Was Dissolved and Summary of Planned Actions (1) A $29,000,000 Disposition and Development Agreement ("DDA) with Coral Mountain Apartments L.P. (Michael Shoviin and John Durso). The Agency approved this DDA in January 2011 after years of negotiation. As the Board may recall, the efforts to utilize this site, formerly owned by the Mazzella family, for affordable housing date back to the 1990s. The DDA will facilitate the long-term ground lease of 9.89 acres of vacant property (located west of Costco), and the investment of up to $29,000,000 of Low- and Moderate -income Housing Funds. The Successor Agency ("SA") currently has the housing funds available to finance this $29,000,000 investment. This investment will facilitate the development and operation of a 176 unit apartment home complex that will be affordable to very low-, low- and moderate -income family households. The DDA also facilitates the construction of a secondary access road to Costco, the "A" Street/Dune Palms 053 Road signalized intersection, and the reconfiguration (to ensure safer access) of the Desert Sands Unified School District's bus yard. Entitlements are in place, and an application for 4% investment tax credits was submitted to the California Debt Limit Allocation Committee (CDLAC) on March 16, 2012; 4% tax credits are assured for this project and would provide $26,000,000 of tax credit equity and mortgage revenue bond financing. Construction will commence by August 2012. Planned Actions: The dissolution of the RDA and the uncertainties of the dissolution legislation have made it extremely problematic to obtain the necessary title insurance to proceed with the closing of this transaction. For that reason, the Oversight Board is being asked at its April 4 meeting to confirm that it does not wish to terminate the DDA. (2) A $1,471,200 contract with RSG involving the Washington Street Apartments. This agreement was approved in February 2011; it requires RSG to manage the design, entitlement, and construction bidding and management processes to substantially rehabilitate the 73-unit apartment complex, and to construct 24 new apartment units. All of these units would be rented to extremely low income senior and special needs households. Entitlements have been secured and the next phase entails preparing construction plans and construction bid specifications; however, all work has ceased pending the disposition of the housing funds and the 2011 Taxable Bond proceeds. $18,906,474 of the $25,519,447 bond proceeds and Redevelopment Property Tax Trust Fund/Tax Increment revenue is designated for this development. The Department of Finance ("DOF") has initially taken the position that the completion of the Washington Street Apartment project is not an enforceable obligation. Planned Action: Staff is exchanging correspondence with the DOF and attempting to establish that the rehabilitation of the units is legally mandated, based on the application the RDA submitted to the Federal Government in order to purchase the property. Staff is also monitoring the pending clean-up legislation (AB 1585) that will allow successor housing agencies to utilize existing housing fund balances and housing bond proceeds to complete affordable housing projects. If necessary, the SA staff will ask the OB to confirm that the 2011 housing bond proceeds may be used for this purpose. The bond indenture specifically states that the purpose of these proceeds was to fund projects for low and moderate income housing. (3) A $1,500,000 Owner Participation Agreement V'OPA ") with Torre Nissan. This OPA was approved in June 201 1.The OPA funds the remodel and expansion of the Torre Nissan store. The remodeled facility will embrace Nissan Motor Corporation's new brand image, and will feature expanded showroom and repair facility space to accommodate Leaf electric vehicles and Nissan Motors' new heavy duty commercial vehicles. The demolition and reconstruction has already commenced. !# 054 Entitlements have been secured and Torre Nissan has demolished their showroom. 2011 Project No. 2 Taxable Bond proceeds are pledged to this endeavor. Planned Action: Due to the uncertainty caused the adoption of AB 1 x 26 after the OPA was approved, Torre Nissan experienced certain delays and has fallen slightly behind in carrying out the remodel of its facility. It has requested a slight adjustment in its schedule of performance. The Successor Agency ("SA") is schedule to approve that modification at its April 3, 2012 meeting. While it is unclear under AB 1x26 if the OB must approve the modification, out of an abundance of caution, staff is requesting the OB to consent to the modification and to also affirmatively conclude that it will not seek to terminate the OPA. These items are schedule for the April 4 OB meeting. (4) A $3,200,000 agreement with La Quinta Palms Realty. This agreement was approved in F ebruary 2011. Its purpose is to provide for the purc hase and substantial rehabilitation of up to 30 foreclosed, severely dilapidated single family homes located in the Cove. La Quinta Palms Realty serves as the Housing Authority's agent to purchase and manage the rehabilitation of foreclosed, bank owned homes that are in need of substantial rehabilitation. The rehabilitated dwellings would be subsequently sold to low and moderate income households. Planned Actions: The DOF has initially taken the position that the agreement is not an enforceable obligation. In light of this, the contract is currently on hold. The SA staff if exchanging correspondence with the DOF on this issue. Staff is also monitoring the pending clean-up legislation (AB 1585) that will allow successor housing agencies to utilize existing housing fund balances and housing bond proceeds to complete affordable housing projects. If necessary, the SA staff will ask the OB to confirm that the 2011 housing bond proceeds may be used for this purpose. The bond indenture specifically states that the purpose of these proceeds was to fund projects for low and moderate income housing. (5) A $ 1, 100,000 amendment to an existing agreement with Habitat for Humanity. This agreement was approved in February 2011 for the purpose of constructing five mutual self-help single family homes in the Cove; this activity would commence in Fiscal Year 2013/2014 and conclude in Fiscal Year 2017/2018. Funding would be derived from the Redevelopment Property Tax Trust Fund. Planned Actions: The activities authorized in this agreement were not going to commence until Fiscal Year 2013/2014. In light of this, the contract is currently on hold. Staff is also monitoring the pending clean-up legislation (AB 1585) that will allow successor housing agencies to utilize existing housing fund balances and housing bond proceeds to complete affordable housing projects. If necessary, the SA staff will ask the OB to confirm that the 2011 housing bond proceeds or other housing funds may be used for this purpose. As stated above, the bond indenture specifically states that the purpose of these proceeds was to fund projects for low - and moderate -income housing. .055 (6) The 2011 Bonds - In 2011, the Agency issued taxable bonds that yielded $5,193,793 in non -housing proceeds and $25,519,477 in housing proceeds. Planned Actions: A majority of these bond proceeds remain on deposit with the trustee. With regard to the housing bonds, staff is also monitoring AB 1585, which, if passed, will allow successor housing agencies to utilize housing bond proceeds to complete affordable housing projects. If necessary, the SA staff will ask the 013 to confirm that the 2011 housing bond proceeds may be utilized for the housing projects referenced earlier in this report. As stated above, the bond indenture specifically states that the purpose of these proceeds were to fund projects for low and moderate income housing. With regard to the non -housing proceeds, a portion of those bond proceeds will be used to pay the Nissan OPA debt. As to the remaining proceeds, the SA staff intends to pursue enforcement of the bond covenant which states that the processed may only be used for the elimination of blight and other redevelopment purposes in Project Area No. 2. B. Issues Associated With Various RDA -Funded Properties That Were Never Owned by the RDA Several properties were purchased by the City in 2011 using RDA funds. These properties were never owned by the RDA. Therefore, no action is required to be taken by the SA at this time to dispose of these properties. It is uncertain whether the DOF will try to assert that these properties are subject to the clawback provisions of AB 1 x26. Given that the properties were never held by the Agency and therefore not transferred from the Agency to the City in the relevant time frame, the provisions appear to be inapplicable on their face. In the event that the properties do become subject to the clawback provisions, the SA could ultimately be directed to dispose of the properties. However, the City would continue to have land use authority over the properties. The City has already directed staff to initiate a review of the zoning and General Plan provisions governing the properties. The properties include the following: (1) 3.42 acres of property located east of Desert Club and south of Calle Tampico for $4,211,500 (see Attachment 1). (2) 4.24 acres of property located north and south of Francis Hack La Quinta Community Park for $5,287,638 (see Attachment 1). C. Properties Purchased from Agency By City for Fair Market Value. In 2011, the City bought properties in two locations from the Agency for what were assessed as the fair market value established through formal appraisals. The purchases were as follows: 9.89 acre commercial parcel located north of the Coral Mountain development, west of Costco and immediately south of Highway 111 for to 056 $3,445,000. The City received an appraisal in March 2011 and then purchased this property from the RDA on March 15, 2011 at the appraised value. 90.76 acre private use parcels located at SilverRock for $4,875,000. The City received an appraisal in April 2011 and then purchased the property from the RDA for the appraised value on May 3, 2011. Because the City paid fair market value for these purchases, it is not likely that the DOF would wish to unwind the transactions, as that would require the refunding of the purchase price paid by the City. Therefore, no action needs to be taken with regard to these transactions at this time. D. Properties Transferred from Agency to City for Public Use. The City conveyance of the 243.5 acre public use parcels at SilverRock in March 2011. The rationale for a zero land value conveyance was that these properties were purchased with tax exempt bond proceeds and as such, their use may be limited to public uses, and they are zoned for public golf course, public park and public facilities (e.g., clubhouse, Ahmanson house and infrastructure). E. Audit Per AB1 x 26, the former RDA's transactions since January 1, 2011 will be audited by the County Auditor -Controller. This audit will then provide the basis for subsequent OB and DOF review of all assets, and the basis for the DOF to determine if some of these transactions should be unwound. These audits must be complete by July 1, 2012 and submitted to the State Controller by July 15, 2012. F. Oversight Board Purview AB1 x 26 establishes an oversight board whose purpose is to review certain actions . of the SA and oversee the liquidation of redevelopment agency assets. Oversight board responsibilities that may apply to the SA are summarized below (please see Section 34181 of the Health and Safety Code for the specific language, which is presented in Attachment 2): Dispose of all assets and properties of the former redevelopment agency that were funded by tax increment revenues of the dissolved redevelopment agency; Cease performance in connection with and terminate all agreements that do not qualify as enforceable obligations; ­,% , 057 Terminate any agreement, between the dissolved redevelopment agency and any public entity located in the same county, that obligated the redevelopment agency to provide funding for debt service obligations of the public entity or for the construction, or operations, of facilities owned or operated by such public entity, in any instance where an oversight board has found that early termination would be in the interests of the taxing entities. Determine whether any contracts, agreements, or other arrangements between the dissolved redevelopment agency and any private parties should be terminated or renegotiated to reduce liabilities and increase net revenues to the taxing agencies. G. Department of Finance Purview The DOF is charged with the responsibility to review all of the determinations made by oversight boards. Further, the DOF can reverse what an oversight board has approved and has the final say on all transactions involving a former redevelopment agency's assets. The DOF also has the authority to review and reverse all of the former redevelopment agency's transactions that occurred since January 1, 2011. H. Future Oversight Board Agenda items. Successor Agency staff is charged with setting the agendas for Oversight Board meetings. Oversight Board Members may add items with a majority vote of the total membership. Based on the discussion above, staff is planning to schedule the following items for OB consideration: April 4, 2012: Approval of Recognized Obligation Payment Schedules for Jan -June 2012 and July -December 2012 Approval of - Successor Agency Administrative Budgets for the same time periods listed above * Adoption of a Conflict of Interest Code Review of the Coral Mountain Project and Authorization to Proceed with the DDA Review of the Torre Nissan Project and Authorization to Proceed with the OPA Review of Former LQRDA's Debts and Obligations (Per Board Member Request) rl 058 April 18, 2012: * Meeting may be canceled. May 9, 2012: * Status of Current Legislation Authorization to Use Housing Bond Proceeds for Washington Street Apartments Authorization to Use Bond Proceeds For Realignment of the All American Canal through SilverRock o Overview of Foreclosed Home Program and Habitat for Humanity Program Future Items: 9 Review of Audit 0 Approval of ROPS and SA Administrative Budgets every six months Respectfully submitted, Debbie Powell Economic Development/Housing Manager Approved for submission by: 1(\' I— � ---L Mark Weiss, Interim Executive Director of the Successor Agency to La Quinta Redevelopment Agency Attachments: 1 . Map of Village Properties 2. Health & Safety Code Sections34180 and 34181 .1 059 ATTACHMENT 2 34180. All of the following successor agency actions shall first be approved by the oversight board: (a) The establishment of new repayment terms for outstanding loans where the terms have not been specified prior to the date of this parL (b) Refunding of outstanding bonds or other debt of the former redevelopment agency by successor agencies in order to provide for savings or to finance debt service spikes; provided, however, that no additional debt is created and debt service is not accelerated. (c) Setting aside of amounts in reserves as required by indentures, trust indentures, or similar documents governing the issuance of outstanding redevelopment agency bonds. (d) Merging of project areas. (e) Continuing the acceptance of federal or state grants, or other forms of financial assistance from either public or private sources, where assistance is conditioned upon the provision of matching funds, by the successor entity as successor to the former redevelopment agency, in an amount greater than 5 percent. (f) (1) If a city, county, or city. and county wishes to retain any properties or other assets for future redevelopment activities, funded from its own funds and under its own auspices, it must reach a compensation agreement with the other taxing entities to provide payments to them in proportion to their shares of the base property tax, as determined pursuant to Section 34188, for the value of the property retained. (2) If no other agreement is reached on valuation of the retained assets, the value will be the fair market value as of the 2011 property tax lien date as determined by the county assessor. (g) Establishment of the Recognized Obligation Payment Schedule. (h) A request by the successor agency to enter into an agreement with the city, county, or city and county that formed the redevelopment agency that it is succeeding. (i) A request by a successor agency or taxing entity to pledge, or to enter into an agreement for the pledge of, property tax revenues pursuant to subdivision (b) of Section 34178. 34181. The oversight board shall direct the successor agency to do all of the following: (a) Dispose of all assets and properties of the former redevelopment agency that were funded by tax increment revenues of the dissolved redevelopment agency; provided, however, that the oversight board may instead direct the successor agency to transfer ownership of those assets that were constructed and used for a governmental purpose, such as roads, school buildings, parks, and fire stations, to the appropriate public jurisdiction pursuant to any existing agreements relating to the construction or use of such an asset. Any compensation to be provided to the successor agency for the transfer of the asset shall be governed by the agreements relating to the construction or use of that asset. Disposal shall be done expeditiously and in a manner aimed at maximizing value. (b) Cease performance in connection with and terminate all existing agreements that do not qualify as enforceable obligations. (c) Transfer housing responsibilities and all rights, powers, duties, and obligations along with any amounts on deposit in the Low and Moderate Income Housing Fund to the appropriate entity pursuant to Section 34176. (d) Terminate any agreement, between the dissolved redevelopment 061 agency and any public entity located in the same county, obligating the redevelopment agency to provide funding for any debt service obligations of the public entity or for the construction, or operation of facilities owned or operated by such public entity, in any instance where the oversight board has found that early termination would be in the best interests of the taxing entities. (e) Determine whether any contracts, agreements, or other arrangements between the dissolved redevelopment agency and any private parties should be terminated or renegotiated to reduce liabilities and increase net revenues to the taxing entities, and present proposed termination or amendment agreements to the oversight board for its approval. The board may approve any amendments to or early termination of such agreements where it finds that amendments or early termination would be in the best interests of the taxing entities. 0 ' 062