2012 04 17 SACITY AS SUCCESSOR ACENCY
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 I La Quinta, California
Regular Meeting
TUESDAY, APRIL 17, 2012 AT 4:00 P.M.
Beginning Resolution No. SA 2012-006
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 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 APRIL 3, 2012
CONSENT CALENDAR
NOTE: Consent Calendar items are routine in nature and can be approved by one motion.,
APPROVAL OF DEMAND REGISTER DATED APRIL 17, 2012
..0-01
CITY AS SUCCESSOR AGENCY TO RDA 1 APRIL 17, 2012v
2. RECEIVE AND FILE TREASURER'S REPORT DATED FEBRUARY 29, 2012
3. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT FOR FEBRUARY
29, 2012, AND INVESTMENT SUMMARY REPORT FOR THE QUARTER
ENDING MARCH 31, 2012
4. ADOPTION OF A RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR
TO EXECUTE CERTIFICATES OF ACCEPTANCE FOR DEEDS AND OTHER
CONVEYANCES
5. APPROVAL OF AN APPROPRIATION TO FUND A LOAN TO CORAL
MOUNTAIN PARTNERS, LP FOR THE CONSTRUCTION OF A 176-UNIT
AFFORDABLE HOUSING DEVELOPMENT EAST OF THE INTERSECTION OF
DUNE PALMS ROAD/HIGHWAY 111
BUSINESS SESSION - NONE
STUDY SESSION — NONE
REPORTS AND INFORMATIONAL ITEMS
1 . OVERSIGHT BOARD MINUTES OF MARCH 7, 2012
ADJOURNMENT
The next regular meeting of the City as Successor Agency to the La Quinta Redevelopment
Agency will be held on May 1, 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.
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 April 13, 2012.
DATED: April 13, 2012
SUSAN MAYSELS, Interim City Clerk
City of La Quinta, California
APRIL 17, 2012
0
CITY AS SUCCESSOR AGENCY TO RDA 2
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 Calls Tampico, La Quints, California, 92253, during normal business
hours.
1#
CITY AS SUCCESSOR AGENCY TO RDA 3 APRIL 17, 2012
. .6 003
Tit�p 4 4 Oka
COUNCIL&EETING DATE: April 17, 2012
ITEM TITLE: Approval of Demand Register Dated
April 17, 2012
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
It is recommended the Successor Agency of the La Quinta Redevelopment Agency:
Receive and File the Demand Register Dated
April 17, 2012 of which $0.00
Represents Successor Agency Expenditures as detailed below:
Vendor: Account M Amount: Purpose:
None
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.
In M11 I
Respectfully submitted,
'44/1 dxw��
M. Falconfer, Finance Director
Approved for submission by:
Mark Weiss, Interim Executive Director
..to ,
005
T-df 4 4 a"
CITY[EKIHA / FA MEETING DATE: April 17, 2012 AGENDA CATEGORY:
BUSINESS SESSION:
ITEM TITLE: Receive and File Treasurer's Report dated
February 29, 2012 CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDATION:
It is recommended the Successor Agency to the La Quinta Redevelopment Agency:
Receive and file.
PLEASE SEE RELATED BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA
006
witit 4 4 Qamrry
e8UW1Eu%B* MEETING DATE: April 17,2012
ITEM TITLE: Receive and File Revenue and Expenditure
Report for February 29, 2012 and Investment
Summary Report for the Quarter Ending March 31,
2012
RECOMMENDATION:
Receive and File.
FISCAL IMPLICATIONS:
None.
CHARTER CITY IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: 3 sA
STUDY SESSION:
PUBLIC HEARING:
Receive and File the Statement of Revenue and Expenditures for February 29, 2012
and Investment Summary Report for the Quarter ending March 31, 2012 for the
Successor Agency to the La Quinta Redevelopment Agency.
Respectfully submitted,
�yJohn
0 007
Approved for submission by:
— I Lt' " L'-
Mark Weiss, Interim �Executive Director
Attachments: 1 . Revenue and Expenditures for February 29, 2012
1 2. Investment Summary Report dated March 31, 2012
�E$
2
SUCCESSOR AGENCY
REVENUE SUMMARY
0710112011 - 0212912012
ADJUSTED REMAINING %
BUDGET RECEIVED BUDGET RECEIVED
PROJECT AREA NO. I Adnnih
County of �versida
Pooled Cash Allocated Interest
Non Allocated Interest
Transfers In
TOTAL PA I
PROJECT AREA NO. 2 Admin
County of Ruver.,da
Pooled Cash Allocated Interest
Non Allocated Interest
Transfers In
TOTAL PA 2
TOTAL SUCCESSOR AGENCY - ADIMN
PROJECT AREA NO. I Progrann
County of Rtyerside
Pureed Cash Allocated Interest
Non Allocaled Interest
Transfers In
TOTAL PA I
PROJECT AREA NO. 2 Program
County of Fb�erurde
Pooled Cash Allocated Interest
Non Allocated Interest
Transfers In
TOTAL PA 2
286,54000
0,00
286.540.00
0,000%
000
000
000
0000%
coo
000
0,00
0 m0%
0�00
000
000
0,000%
206,540,04)
000
286.540.00
0 OW%
141.13100
0.00
141,131,D)
0000%
000
000
000
0,00%
0,00
0,00
ow
0000%
0.00
-- 000
000
0000%
141,131,00
000
141 131 �00
'LD00%
427,671.M
5.432.44&00
000
5,432,448.00
0Cw%
0�00
(100
0,00
0000%
0.00
0.00
0.00
0.000%
8,976.264 00
8,979,5,13 611
(3,27961)
100.0,10%
14�408,712.00
8,979,543.61
5,429.168,39
62.320%
1,493.269d(t
0,00
1.493,269 00
G,WO%
0.00
0,00
000
0,000%
0.00
000
0�00
0000%
555.178,00
393,140b(5
162,037,N
70810%
2,048.447 00
393.14006
1.665,23M 94
19 190%
TOTAL SUCCESSOR AGENCY - PROGRAM 16,457,159.130 9,372,683,67 7.013,1.475 33 56950%
TOTAL SUCCESSOR AGENCY 16,884,830.00 9,372,683,67 7512,14633 55510%
ME
SUCCESSOR AGENCY TO THE
LA QUINTA REDEVELOPMENT AGENCY
REVENUE SUMMARY
PROJECT AREA NO. I
LOWINIODERATE TAX FUND:
Tax Increment
Allocated Interest
Non Allocated Interest
Miscellaneous revenue
Non Allocated Interest
Home Sales Pnoneeds
Sale of Land
Sewer Subsidy Rein-bursernabints
Rehatodfitabon Loan Repayments
2nd Trust Deed Repayment
Wthams Note Payment
Transfer In
TOTAL LOWIMOD TAX
DEBT SERVICE FUND:
Tax Increment
Allocated Interest
Non Allocated Interest
Interest - County Loan
Interest Advance Procaeds
Transfers In
TOTAL DEBT SERVICE
CAPITAL IMPROVEMENT FUND
Pooled Cash Allocated Interest
Non Allocated Interest
Developer Agreement Funding
Sale of Land Proceeds
Rental Income
Litigation Proceeds
Transfers In
TOTAL CAPITAL IMPROVEMENT
0710112011 - OV29?2012
ADJUSTED REMAINING %
BUDGET RECEIVED BUDGET RECEIVED
4.123,224.00
4.123,22439
(0.39)
100.000%
"'(500.00
7,332,91
37,267.09
16A40%
0.00
1,039.40
(1,039.40)
0.000%
0.00
1,226.22
(1,226.22)
0.00%
0.00
0.00
0.00
0g00%
0.00
0.,X
0.00
0,000%
0.00
0.00
0.00
0.000%
0.00
1,467.84
(1,467.84)
0.000%
D.W
0.00
0.00
0.000%
0�00
0.00
0.00
0.000%
000
000
000
0000%
000
0,00
000
0,000%
4,167,824,00
4,134,290.76
33-533.24
99.200%
16,5t)5,087.00
16 505.087.35
(035)
100go0%
3.000nO
(13,122.95)
16,122.95
437430%
0go
0.00
0.00
0.000%
000
0.00
000
0�000%
0,00
0.00
0.00
0.00%
11,647,690,00
11,850 870,33
(3 28033)
100.030%
25,355,677,00
28 342 834.7�
12,M2.27
99S50%
25,700.00
(7,742.60)
33,44280
-30,130%
18.800.00
4.423.55
14.376,45
23�530%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0g00%
5,000,000.00
0.00
5.000,000.00
0.000%
5,041�2���-g.070%
2011 TAXABLE HOUSING BOND FUND:
Pooled Cash Allocated Interest
0,00
0�00
0.00
0.000%
Non Allocated Interest
6,000,00
5,624.62
(624.62)
112,490%
Developer Agreement Funding
000
0.00
0�00
0�000%
Sale of Land P ... earls
0,00
0,00
000
0 00%
Rental Income
0,00
0.00
0,00
0000%
Litigation Proceeds
0.00
0.00
0.00
0 00o%
Transfers In
0.00
0.00
0.00
0,000%
TOTAL 2011 TAXABLE HOUSING BOND
5,00000
5,624.62
(624.62)
112490%
1, lis 010
SUCCESSOR AGENCY TO THE
LA QUINTA REDEVELOPMENT AGENCY
REVENUE SUMMARY
PROJECT AREA NO, 2
LOWIMODERATE TAX FUND:
Tax Increment
Allocated Interest
Non All ... had Interest
Developer funding
2rd Trust Deed Repayment
Sale of Land
Transfer In
TOTAL LOWIMOD TAX
2004 LOWIMODERATE BOND FUND:
Allocated Interest
Home Sale Proceeds
Non Allocated Interest
Transfer In
TOTAL LOWIMOD BOND
DEBT SERIACE FUND:
Tax Increment
Allocated Interest
Non Allocated Interest
Interest Advance Proceeds
Transfer In
TOTAL DEBT SERVICE
CAPITAL IMPROVEMENT FUND'
Allocated Interest
Non Allocated Interest
Misc Revenue
Sale of land
Transfers In
TOTAL CAPITAL IMPROVEMENT
07MI12011 - 02`29=12
ADJUSTED REMAJINING %
BUDGET RECEIVED BUDGET RECEIVED
2,341.482�00
2,341,482,34
(0,34)
100000%
60,800,00
23,986.01
36,813.99
39A50%
0,00
0.00
0.00
0�000%
0.00
0,00
0.00
0,000%
0.00
8.7".99
(8,744,99)
0,000%
0.00
0.00
0.00
0.000%
0.00
0�00
000
0.000%
2,402,202�00
2,374,213�3,1
28,068,66
98,830%
0.00
0.00
000
0000%
0.00
0.00
0.00
0.000%
5:0.00
311.00
189.00
62.200%
O.DO
0.00
0.00
0.000%
500.00
311.OG
18900
62.200%
9,365,929.00
9,365,929.37
(0.37)
100.000%
200.00
(15.7S8.12)
15,9813.12
-7894.060%
0.00
262.00
(262.00)
0,000%
0.00
0.00
0.00
0,000%
1,453,098.00
1,338.607.38
114,4W.62
92120%
10,819,227 00
10,689,010.63
130.216.37
98.800%
0.00
2,19543
(2.195.43)
0,000%
76,802.00
44,678,04
32,123.96
58,170%
(Loo
0.00
000
(L0D0%
0.00
0.00
0,00
0,000%
1,650,00.00
0.00
1,650,000 00
0.000%
4687347
1 67992853
2,710%
2011 TAXABLE NOIN�HOUSIING BOND FUND:
Pooled Cash Allocated Interest
89,356.00
0,00
B9.356,00
D.000%
Non Allocated Interest
0.00
103.00
(103.00)
0�000%
Developer Agreement Funding
0�00
0,00
ODO
0.000%
Sale of Land Proceeds
000
0,00
0.00
0000%
Rental Income
000
0.00
0.00
0000%
Litigation Proceeds
0.00
0.00
0.00
0000%
Transfers In
0,00
0.00
0.00
0.000%
TOTAL 2011 TAXABLE NON -HOUSING BOND
89,356.00
103,00
69.253.00
0,120%
Oil
SUCCESSOR AGENCY
ADJUSTED
OV29112
REIAAJNING
EXPENDITURE SUMMARY
BUDGET
EXPENDITURES
ENCUMBERED
allMET
237 PROJECT AREA NO. I:
SERVICES
99,864 00
0 00
Goo
99,1584LOO
REIMBURSEMENT TO GEN FUNC
186 6% Do
192.928 W
000
16.27200)
TRANSFERS OUT
Bw
0 DO
000
0 00
TOTAL PA I - Admin
238 PROJECTAREAN0.2-
231 PROJECTAREANOJ�
SERVICES
49,196,D)
coo
0,00 49.19600
REIMBURSEMENT TO GEN FUN[
91,935,D)
46,200,00
oba 45.735 00
TRANSFERS OUT
Bw
Bou
a 00 0,00
TOTAL PA 2 - Minki
141.131 M
TOTAL SUCCESSOR AGENCY - AxftWn
421,611.00
SERVICES
36,40000
0 30
Goo
W.400 GO
BOND PRINCIPAL
0.00
0.00
000
000
BONDINTEREST
5,393,338,00
0 m
000
5,393,338 00
REIMBURSEMENT TO GEN FUNC
2.710,G)
0 00
0 GO
2,71000
TRANSFERS OUT
0�00
000
0 00
000
TOTAL PA I - Pmgmm
232 PROJECT AREA NO. 2
SERVICES
51,60)w
0 DO
0 00
5l'oBo w
BOND PRINCIPAL
DONDINTEREST
1409,17900
0 00
0 00
1 409,179 W
REIMBURSEMENT TO GEN FUN[
32,4WB0
a 00
Bw
490 DO
TRANSFERS OUT
a Do
0 00
DO
.32
0 w
TOTAL PA 2 - Pr"mm
1.493,269,130
0 00
TOTAL SUCCESSOR AGENCY - P.,..
6 925,/1 f 00
TOTAL SUCCESSOR AGENCY
.1.41" 012
N
SUCCESSOR AGENCY TO THE ADJUSTED OV2WI2 REMAINING
LA QUINTA REDEVELOPMENT AGENCY BUDGET EXPENDITURES ENCUMBERED BUDGET
EXPENDITURE SUMMARY
PROJECT AREA NO. 1:
LOWIMODERATE TAX FUND
SERVICES
522 850 00
28781418
O'N
235,035,62
2�d TRUST DEED PROGRAM
520,W0,00
81,000 00
0,00
439.000 00
HABITAT FOR HUMANITY
300.160.00
5.100,00
000
295 060 00
LANDACQUISITION
000
000
000
0,00
LOW MOD HOUSING PROJECTS
000
000
000
000
FORECLOSURE
80000000
000
0 w
800,00000
REIMBURSEMENT TO GEN FUN[
46174100
413 550 �
0,00
48,19094
TRANSFERS OUT
9,531,166 00
601 0711. "
0
1:3132 4gl5l
TOTAL LOINNOD TAX
n 73
.!22T
a MI
5 7!6 27
DEBT SERVICE FUND:
SERVICES
Q9,212 00
QS524,30
0.00
M7 70
BOND PRINCIPAL
3,540,000.00
3,540,000.00
000
0 00
BONDINTEREST
3,418.315.W
3,418,31563
000
(0.63)
PASS THROUGH PAYMENTS
9,820.486.01)
9,820.484 57
000
1."
ERAF SHIFT
0.03
0,00
000
1100
TRANSFERS OUT
1687757400
11 8MI853 71
0,00
4 996 720 29
TOTAL DEBT SERVICE
34tMUT00 ------
CAPITAL IMPROVEMENT FUND:
SERVICES
205,700.00
66,M3,07
am
IM,W6,93
REIMBURSEMENT TO GEN FUNC
271,985,00
213,739.21
0�00
N,245 79
TRANSFERS OUT
31 171 576 00
10274.919.10
0 00
20.8%65690
TOTAL CAPITAL IMPROVEMENT
31!649:26EW
10'Sbg.491,38
2011 TAXABLE HOUSING BOND(MO)
SERVICES
11,00000
867822
0.00
2.321 78
TRANSFERS OUT
25,526,567.00
12 157
0160
255 5 4.gI2011 63
TOTAL Mll TAXABLE HOUSING BOND
20!747 5
Uo
2 5�6 41
013
SUCCESSOR AGENCY TO THE ADJUSTED OV29112 REMAINING
LA QUINTA REDEVELOPMENT AGENCY BUDGET EXPENDITURES ENCUMBERED BUDGET
EXPENDITURE SUMMARY
PROJECT AREA NO, 2�
LOVINODERATE TAX FUND:
SERVICES
2ND TRUST DEEDS
325,390 W
0.0
170,040.31
0GO
im,ug.69
LOW MOD HOUSING PROJECTS
3 (XX) 00
0�0)
O.W
Gw
O.W
am
FORECLOSURE ACQUISITION
450:000.w
o.m
000
3,(XX)GO
450 000.W
REIMBURSEMENT TO GEN FUN[
261620.00
2U,544,62
0.00
27,075.38
TRANSFERS OUT
TOTAL LOWIMOD TAX
13,552,022 00
14.59,,uJz vu
2 US 511 N
2,950,L96_W------GZ
0 w ---
m
110 955150 7063
TT,)64,
20" LOWIMODERATE BOND FUND
HOUSING PROGRAMS
000
000
0 m
000
�AND
TRANSFERS OUT
0 w
3307,15500
O.W
�313
000
000
'�IM151�22227
TOTAL LOVINOD BOND
33U0j.gl227 7
u uv
;17
7
DEBT SERVICE FUND:
SERVICES
BOND PRINCIPAL
2,16,058,W
241,542 80
om
4,525,20
BONDINTEREST
380 OW�00
252,757,W
130,M 00
252,75707
O.W
000
250,M�00
PASS THROUGH PAYMENTS
8,215.043.W
8,019,032,65
000
(0,07)
196 010.35
ERAF SHIFT
000
&DO
000
000
TRANSFERS OUT
3,65561600
200561547
0 w
165
TOTAL DEBT SERVICE
CAPITAL IMPROVEMENT FUND:
I
DO. 503160 613
I
SERVICES
CAPITAL
99845,00
6367151
o.m
W.1 73 49
REIMBURSEMENT TO GEN FUN[
000
91,592,w
0,00
63,074,11
000
000
000
28517.89
TRANSFERS OUT
TOTAL CAPITAL IMPROVEMENT
1 796 9� w
79,50308
000
1,717,440 92
T=T-
2011 RDA 2 TAXABLE BOND FUND:(417)
SERVICES
IlSmoo
8,49131
o.m
3.W8 69
ECONOMIC DEVELOPMENT
0 w
0.00
1,5W,OOO.W
TRANSFERS OUT
2 422 W W
2.T6559.1"2
0,00
2 420 286 18
TOTAL RDA NO. 2 TAXA13LE BOND
,::�4*00
'T T S
,..% 1 014
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CityMHA /FA MEETING DATE: April 17, 2012
ITEM TITLE: Adoption of a Resolution Authorizing the
Executive Director to Execute Certificates of Acceptance
for Deeds and Other Conveyance
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT C ALENDAR.
STUDY SESSION:
PUBLIC HEARING:
Adopt a Resolution of the City of La Quinta as Successor Agency to the Dissolved La
Quinta Redevelopment Agency ("Successor Agency") authorizing the Executive
Director to execute Certificates of Acceptance for deeds and other conveyances that
have been approved for acquisition and/or acceptance by the Successor Agency, or
that involve the acceptance of easements or right-of-ways.
FISCAL IMPLICATIONS:
None.
CHARTER CITY IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
The Successor Agency must authorize the acquisition of easements and/or real
property. The Successor Agency must also authorize the recording of all easements,
deeds and other conveyance instruments. Government Code §27281 states: "Deeds
or grants conveying any interest in or easement upon real estate to a political
corporation or governmental agency for public purposes shall not be accepted for
recordation without the consent of the grantee evidenced by its certificate or
resolution of acceptance attached to or printed on the deed or grant. "
Government Code §27281 also states: "A political corporation or governmental
agency, by a general resolution, may authorize one or more officers or agents to,
accept and consent to such deeds or grants. "
0 016
The proposed resolution grants the Executive Director, and in her/his absence, the
Interim, Acting or Assistant Executive Director authority to execute certificates of
acceptance for deeds and other conveyances that have been approved for acquisition
and/or acceptance by the Successor Agency. The resolution also grants the authority
for the acceptance of easements or right-of-ways.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Successor Agency include:
1 Adopt a Resolution of the Successor Agency authorizing the Executive Director
to execute Certificates of Acceptance for deeds and other conveyances that
have been approved for acquisition and/or acceptance by the Successor
Agency, or that involve the acceptance of easements or right-of-ways; or
2. Do not adopt a Resolution authorizing the Executive Director to execute
Certificates of Acceptance for deeds and other conveyances; or
3. Provide staff with alternative direction.
Respectfully submitted,
Susan Maysels, lnterin�pity Clkk
Approved for submission by:
" 2� 0-1�—
Mark Weiss, Interim Executive Director
if 017
RESOLUTION NO. SA 2012 -
A RESOLUTION OF THE CITY OF LA QUINTA ACTING
AS THE SUCCESSOR AGENCY TO THE DISSOLVED LA
QUINTA REDEVELOPMENT AGENCY AUTHORIZING THE
EXECUTIVE DIRECTOR TO EXECUTE CERTIFICATES OF
ACCEPTANCE FOR DEEDS AND OTHER CONVEYANCES
WHEREAS, Government Code Section 27281 requires that deeds or grants
conveying any interest in or easement upon real estate to a governmental agency
for public purposes shall not be accepted for recordation without the consent of the
governmental agency evidenced by its certificate or resolution of acceptance
attached to or printed on the deed or grant; and
WHEREAS Government Code Section 27281 also states that a governmental
agency, by a general resolution, may authorize one or more officers or agents to
accept and consent to such deeds or grants.
NOW, THEREFORE, BE IT RESOLVED by the City of La Quinta Acting as the
Successor Agency to the Dissolved La Quinta Redevelopment Agency ("Successor
Agency") as follows:
Section 1. The Executive Director is authorized on behalf of the Successor
Agency, to execute acceptances and consents for all deeds, grants and other
conveyances, transmitting any interest in real estate for public purposes where
such acquisitions, acceptances and/or consents were approved by the Successor
Agency. The Executive Director is also authorized to execute acceptances and
consents that involve the acceptance of easements or right-of-way for public
improvements without the prior approval of the Successor Agency, as such
approval is granted in this Resolution.
Section 2. If the Executive Director is unavailable to execute the acceptance and
consent, the Interim, Acting or Assistant Executive Director is so authorized.
PASSED, APPROVED, and ADOPTED at a regular meeting of the Successor
Agency held on this 17 1h day of April 2012 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
6 018
Resolution No. SA 2012-
Executive Director Signature Authorization
Certificates of Acceptance
Adopted: April 17, 2012
Page 2 of 2
DON ADOLPH, Chairperson
City of La Quinta Acting as Successor
Agency to the Dissolved La Quinta
Redevelopment Agency
ATTEST:
Susan Maysels, Interim Secretary
City of La Quinta Acting as Successor Agency
to the Dissolved La Quinta Redevelopment Agency
(AGENCY SEAL)
APPROVED AS TO FORM:
M. KATHERINE JENSON, Attorney
City of La Quinta Acting as Successor Agency
to the Dissolved La Quinta Redevelopment Agency
to 019
FAMEETINGDATE: April 17, 2012
ITEM TITLE: Approval of an Appropriation to Fund a
Loan to Coral Mountain Partners, L.P. for the
Construction of a 1.76-Unit Affordable Housing
Development East of the Intersection. of Dune Palms
Road/Highway 111 and a Transfer of the Funds to the
La Quinta Housing Authority
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Approve an appropriation of $21,540,268 to fund a loan to Coral Mountain Partners,
L.P., pursuant to a Disposition and Development Agreement, for the development of
the 176-unit Coral Mountain Apartments affordable housing community, and a transfer
of the funds to the La Quinta Housing Authority, subject to the final action of the
Department of Finance's review of that Agreement.
FISCAL IMPLICATIONS:
The Disposition and Development Agreement ("DDA") with Coral Mountain Partners,
L.P., provides for a loan of up to $29,000,000 of former La Quinta Redevelopment
Agency ("LQRDA") housing funds, which are now held by the Successor Agency, to
facilitate the development of 176 affordable multi -family units. The DDA also provides
that the La Quinta Housing Authority ("Authority") as the "housing successor" to the
former LQRDA will lease a 9.89 acre parcel to Coral Mountain Partners, L.P. for a
minimum of 55 years, with the option for two 1 0-year extensions. At the conclusion
of the ground lease, the real property and all of the improvements will revert to the
Authority.
A total of $7,459,732 was previously appropriated to the Coral Mountain Project. To
fully fund the $29,000,000 loan, another $21,540,269 ' must be appropriated from
Low/Mod funds on hand. Therefore, funds must be re -allocated from other projects as
follows:
020
Dune Palms Road Street Work For Previously Planned
Adjacent Affordable Housing Project PA 2
$
1,704,573
Washington Street Apartments — PA 2
$
7,008,718
Low/Mod Available Fund Balance PA 1
$
3,000,000
Low/Mod Available Fund Balance PA 2
$
9,826,978
Total Prior Appropriation to other projects $21,540,269
It should be noted the above -listed funds for Washington Street Apartments consist
only of the PA 2-low/mod funds on hand that were previously appropriated for the
project. The Agency Board had also appropriated 2004 tax-exempt bond proceeds for
the project. The staff's recommendation will be to use a combination of 2004 tax-
exempt bond proceeds and the 2011 taxable bond proceeds to fund construction of
Washington Street Apartments. The Washington Street Apartments project is
currently on hold until the State makes a determination, or legislation is passed,
allowing Successor Agencies/Ho using Successors to retain the 2005 and 2011 bond
proceeds.
Because the proposed affordable housing project at Dune Palms/Westward Ho cannot
be funded due to the dissolution of redevelopment, the accompanying Dune Palms
Street Improvement project is no longer proceeding.
On April 10, 2012, staff was notified that the Department of Finance ("DOF") is
reviewing certain items on the Successor Agency's Recognized Obligation Payment
Schedule (ROPS), including the Coral Mountain DDA. The DOF's review is scheduled
to be completed by April 20, 2012. Given this fact, staff plans to delay the transfer of
funds associated with this appropriation until after the DOF has confirmed the DDA is
an enforceable obligation.
BACKGROUND AND OVERVIEW:
The LORDA approved this DDA in January 2011 after years of negotiation. 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; an appropriation is needed to
formally dedicate these funds to this project. This investment will facilitate the
development and operation of a 1 76-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 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
If 021
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.
The Oversight Board of the Successor Agency to La Quinta Redevelopment Agency
reviewed this item at its April 4, 2012 meeting. The Oversight Board adopted
Resolution No. OB 2012-007 (Attachment 1), authorizing the Housing Authority to
administer and implement the DDA, including, without limitation, the leasing of the
property and the provision of financial assistance to Coral Mountain Partners, L.P.;
and, determining that the Oversight Board will not direct the Successor Agency to
terminate or renegotiate the DDA.
Pursuant to ABx1 26, the DOF has three business days to review the actions of an
oversight board. If the DOF requests a review of an oversight board action, it then has
10 days from the date of its request to approve the oversight board action or return it
to the oversight board for reconsideration. Staff transmitted this action to the DOF
immediately after the Oversight Board meeting on April 4, 2012 at 4:45 p.m.;
therefore, the DOF had until April 9, 2012 to request a review. The DOF has not
requested a review of the Oversight Board action, but, as explained above, the DOF
has requested a review of the Coral Mountain DDA in connection with its review of the
ROPS. Staff will therefore wait until that review is completed before making the fund
transfer.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Successor Agency include:
Approve an appropriation of $21,540,269 to fund a loan to Coral Mountain
Partners, L.P., pursuant to a Disposition and Development Agreement, for the
development of the 1 76-unit Coral Mountain Apartments affordable housing
community, and a transfer of the funds to the La Quinta Housing Authority,
subject to the final action of the Department of Finance's review of that
Agreement; or
2. Do not approve an appropriation of $21,540,269 to fund a loan to Coral
Mountain Partners, L.P., pursuant to a Disposition and Development Agreement,
for the development of the 176-unit Coral Mountain Apartments affordable
housing community; or
3. Provide staff with alternative direction.
I'll 022
Respectfully submitted,
Debbie Powell
Economic Development/Housing Manager
Approved for submission by:
Mark Weiss, Interim City Manager
Attachment: 1 . Oversight Board Resolution 2012-007
.. 4 023
ATTACHMENT I
RESOLUTION NO. OB 2012-007
A RESOLUTION OF THE OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO LA QUINTA REDEVELOPMENT
AGENCY MAKING CERTAIN ACKNOWLEDGMENTS AND
APPROVALS WITH RESPECT TO THE CORAL
MOUNTAIN PROPERTY AND DISPOSITION AND
DEVELOPMENT AGREEMENT AND AUTHORIZING THE
CONTINUED ADMINISTRATION AND IMPLEMENTATION
OFTHESAME
WHEREAS, the Oversight Board of the Successor Agency to La Quinta
Redevelopment Agency ("Oversight Board") has been established to direct the City
of La Quinta, in its capacity as "successor agency," to take certain actions to wind
down the affairs ' of the former La Quinta Redevelopment Agency ("Agency") in
accordance with the requirements of Assembly Bill 26, also known as chapter 5,
Statutes 2011, First Extraordinary Session, which added Part 1.8 and Part 1.85 of
Division 24 of the California Health and Safety Code ("ABxl 26"); and
WHEREAS, the Agency and Coral Mountain Partners, L.P. (the "Developer"),
entered into a Disposition and Development Agreement dated January 4, 2011 (the
"DDA"), pursuant to which the Agency agreed to lease to the Developer certain
real property owned by the Agency and located in the City of La Quinta (the
"Property"), and to provide the Developer with certain financial assistance, and the
Developer agreed to develop and operate on said real property an affordable
housing rental project (the "Project"); and
WHEREAS, on January 2, 2012, the City Council of the City of La Quinta
("City Council" or "City," as applicable) adopted City Council Resolution No. 2012-
002, affirmatively electing to be the "successor agency" to the former Agency; and
WHEREAS, on January 17, 2012, the La Quinta Housing Authority
("Authority") adopted Housing Authority Resolution No. 2012-02, electing to be
the "housing successor" to the former Agency; and
WHEREAS, pursuant to Health and Safety Code section 34175(b), added by
Part 1.85 of Division 24 of the California Health and Safety Code ("Part 1.85"), on
February 1, 2012, the DDA and the Property were transferred to the control of the
City, in its capacity as "successor agency" to the former Agency; and
WHEREAS, pursuant to Health and Safety Code Section 34177(g), added by
Part 1.85, on March 7, 2012, the City, in its capacity as the "successor agency"
to the former Agency, (i) assigned all of its interests in the DDA to the Authority;
I
024
Resolution No. OB 2012-007
Approval of Coral Mountain DDA
Adopted: April 4, 2012
Page 2
and (ii) quitclaimed all of its interests in the Property to the Authority; and
NOW, THEREFORE, the Oversight Board of the Su ccessor Agency to La
Quinta Redevelopment Agency does hereby resolve as follows:
SECTION 1. The above Recitals are true and correct.
SECTION 2. The City of La Quinta is the "successor agency" to the former La
Qui�ta —Redevelopment Agency.
SECTION 3. The La Quinta Housing Authority is the "housing successor" to the
former La Quinta Redevelopment Agency.
SECTION 4. The DDA and the Property are both "housing assets" of the former La
Quinta Redevelopment Agency, as that term is used in Health and Safety Code
Sections 341 76(a) and 341 77(g).
SECTION 5. The Authority has the right and authority to administer and implement
the DDA, including, without limitation, the leasing of the Property and the provision
of financial assistance to the Developer pursuant to the terms thereof, and no
further approvals or authorizations are required by the Oversight Board with respect
to the same.
SECTION 6. The Oversight Board has determined not to terminate or renegotiate
the DDA pursuant to its authority under Health and Safety Code Section 34181 (e).
PASSED, APPROVED and ADOPTED at a regular meeting of the Oversight
Board of the Successor Agency to the La Quinta Redevelopment Agency held this
4 1h day of'April, 2012 by the following vote, to wit:
AYES: Board Members Ellis, Marshall, Maysels, McDaniel, Osborne and
Chairperson Pefia
NOES: None
ASSENT: Board Member Nelson
ABSTAIN: None
Resolution No. OB 2012-007
Approval of Corat Mountain DDA
Adopted: April 4, 2012
Page 3
ATTEST:
Oversight Board
( vl,
JOHWRMA, hairperson
Oversight Board of the Successor Agency
to La Quinta Redevelopment Agency
026
sj'�
Reports & Informational Items:
OVERSIGHT BOARD
OF THE SUCCESSOR AGENCY TO
LA QUINTA REDEVELOPMENT AGENCY
MINUTES
MARCH 7, 2012
A special meeting of the Oversight Board of Successor Agency to La Quinta
Redevelopment Agency was called to order at 4:00 p.m. by Interim City Manager,
Mark Weiss.
PRESENT: Board Members Ellis, Marshall, Maysels, McDaniel, Nelson, Osborne,
Chairperson Pefia
ABSENT: None
-PUBLIC COMMENT - None
CONFIRMATION OF AGENDA - Confirmed
PRESENTATIONS
1 . Introduction of Board Members:
Wade Ellis, Director of Fiscal Services, Desert Community College District;
Appointed by Chancellor of California Community College
Heidi Marshall, Asst. Director, Economic Development Agency for County of
Riverside; Appointed by Supervisor John Benoit
Susan Maysels, City of La Quinta Employee; Appointed by Mayor of La
Quinta
Cindy McDaniel, Asst. Superintendent, Business Services, Desert Sands
Unified School District; Appointed by Riverside County Office of Education
Peter Nelson, President of Coachella Valley Water District Board of Directors;
Appointed by Coachella Valley Water District Board of Directors
Lee Osborne, City of La Quinta Council Member; Appointed by Mayor of La
Quinta
11' 027
John Pefia, Resident of City of La Quinta, Appointed by Supervisor John
Benoit
2. Swearing in of Board Members
Board Members were sworn in by the City of La Quinta Interim City Clerk.
BUSINESS ITEMS
1 . Election of Chair and Vice -Chair
The vote was done by ballot.
Chairperson: Board Member Pefia - 5 votes; Board Member Ellis 1 vote;
Board Member Marshall - 1 vote.
MOTION: A motion was made by Board Members Osborne/Maysels to
elect John Pefia as Chairperson of the Oversight Board. Motion carried by a
vote of 7 ayes, 0 nays.
Vice Chairperson: Board Member Osborne - 6 votes; Board Member
Maysels - 1 vote
MOTION: A motion was made by Board Members Nelson/Ellis to elect
Board Member Osborne as Vice Chairperson of the Oversight Board. Motion
carried by a vote of 7 ayes, 0 nays
2. Designation of Contact Person for Department of Finance Inquiries Motion to
appoint Interim Executive Director as Contact Person
Pursuant to the Health & Safety Code, the Board must designate a person
for the Department of Finance for any inquiries regarding actions taken by
the Board. Staff recommended the Interim Executive Director as contact
person.
MOTION: A motion was made by Board Members Maysels/McDaniel to
appoint the Interim Executive Director as contact person for Department of
Finance inquiries. Motion carried unanimously.
3. Consideration of a Resolution Establishing the Date, Time and Location for
Meeting of the Oversight Board of Successor Agency to La Quinta
Redevelopment Agency
OVERSIGHT BOARD MINUTES 2 MARCH 7, JO 12
W
The Board adopted a resolution to meet on the Wednesday after the first and
third Tuesday of the month at 2:00 p.m. beginning Wednesday, March 21,
2012. However, staff recommended canceling the March 21, 2012
meeting due to complex issues on the next agenda. Therefore, the next
Board meeting will be Wednesday, April 4,2012.
MOTION: A motion was made by Board Members Nelson/Osborne to
adopt Resolution No. OB 2012-001 establishing the date, time and location
of Oversight Board meetings as the Wednesday after the first and third
Tuesday of the month at 2:00 p.m. at La Quinta City Hall, 78495 Calle
Tampico, La Quinta, California. Motion carried by vote of 7 ayes, 0 nays.
4. Consideration of a Resolution Adopting Bylaws and a Resolution Adopting
Rules of Procedure of the Oversight Board of Successor Agency to La Quinta
Redevelopment Agency
Board Member Maysels commented that the local practice of numbering
minute actions is obsolete and of no use to the Board minutes. Maysels
recommended that the reference to minute actions in Section 9 be deleted
from the Rules of Procedures and as well as the word "Minute Order" on the
first line of Section 9(a).
MOTION: A motion was made by Chairperson Pefia/Vice Chair Osborne to
adopt Resolution No. 2012-002 Bylaws and Resolution No. 2012-003 Rules
of Procedure as amended. Motion carried by vote 7 ayes, 0 nays.
Public comment:
Kay Wolff, 77-927 Calle Ensenada, La Quinta
Ms. Wolff had questions regarding understanding the Oversight Board:
How is the public to be educated on the responsibilities of the Board,
the disposition of money and property that were under the
Redevelopment Agency?
2. When will Conflict of Interest Statements be filed and available to the
public?
3. How can a member of the Successor Agency oversee himself on this
Board?
4. How can former council members now oversee actions relating to his
or her prior RDA decisions?
OVERSIGHT BOARD MINUTES 3 MARCH 7 2012
029
Interim Executive Director Weiss indicated that the Board can add these items to
the next agenda packet to address these questions.
Chairperson Pefia stated that meetings are open to the public and will be
advertised. He indicated that Conflict of Interest Form 700 will be completed by all
Board members and must be filed by April 2, 2012.
Vice Chairperson Osborne added that the State Legislature dictates the composition
of the Board.
INFORMATIONAL ITEMS
1 . Purpose of Oversight Board
Staff presented staff report.
Board Member Nelson asked if the attachments to the staff report were the
actual law and if it was a complete summary of Oversight Board
responsibilities. Staff indicated that it is complete.
Board Member Nelson asked if the total amount of indebtedness of the
Successor Agency will be presented to the Board. Staff stated that it will be
presented in the annual budget and a summary report would be prepared for
the Board at the next meeting.
Vice Chairperson Osborne noted that there may be differences in
interpretation of the law between the City and County with regard to
sending property tax funds to the city for debt service on bonds. He asked if
the resolution to those issues would come before the Oversight Board.
Kathy Jenson explained how the bond payments are made. The bond
payments are listed on the Recognized Obligation Payment Schedule. The
payment schedule will come before the Board for approval.
2. Overview of Former La Quinta Redevelopment Agency
Frank Spevacek, Principal, RSG, Inc., presented report.
Vice Chairperson Osborne asked about the changing laws in Sacramento and
was concerned that the Board Members would be in a position of making a
decision and the laws could change and could possibly negate what the
Board has done.
OVERSIGHT BOARD MINUTES 4 MARCH 7, 2012
030
Mr. Spevacek explained that one of the duties of the Oversight Board is to
look at existing bond issues and determine if it makes economic sense to
either pay off those bond issues or restructure them to lower the amount of
property tax revenue needed to retire that debt. There are currently
legislative proposals in Sacramento to allow the Successor Agency to keep
non -housing bond proceeds as well as potentially housing bond proceeds.
At this time, this Agency has approximately $12 million/$1 3 million of non -
housing bond proceeds available and approximately $28 million of housing
bond proceeds available. If these legislative proposals are successful and the
Successor Agency and the La Quinta Housing Authority can keep those
funds, than decisions regarding those bonds would not be part of the
Board's oversight.
Mr. Spevacek mentioned the Recognized Obligation Payment Schedule
("ROPS"), needs to move forward. A project known as the Coral Mountain
development proposal must also be addressed shortly. The Developer is
going to be applying for tax credits on March 16, 2012. They will not get
the award of tax credits until May 2012. The former Redevelopment
Agency, when it was in existence, was looking to fund a $29 million
commitment to facilitate that development through housing fund cash that
the Agency was accruing over about the last three years. So that proposal
will be brought forward by staff to see if 1) it meets with the Board's
approval and 2) if it,does and because it is on the ROPS, it would then be
sent up to the State for their blessing or contention. If the legislation
passes, then it will be a non -issue; if it doesn't pass and the Board looked
favorably on it and the State didn't, than we get into a gray area, which is
one of the facets of ABx 1 26 (the legislation the Board is operating under).
The second project is the Torre Nissan remodel. Currently, that facility has
been demolished. The showroom is a series of tents and temporary
structures and inventory is now displayed throughout their blacktop facility.
The Agency committed through an owner participation agreement to provide
$1.5 million to facilitate the remodel. The fund designated for that are
taxable Project Area No. 2 bonds, of which out of the $3.9 million proceeds
amount, $1.5 million is designated for the Torre Nissan remodel. This issue
will be brought forward in April to seek Board approval. If the Board agrees
with that proposal and it is approved, then those funds would be designated
for Torre Nissan, sent up to the State Department of Finance for review. If
they do not give it their blessing, then we fall into the gray area again. At
this point, staff is trying to balance moving some proposal forward for Board
consideration because third parties that are under contract, are on a set time
frame to move forward. The Board needs to facilitate their time frames and
their funding needs and at the same time, there are no absolute guarantees
in terms of what the State's position will be or what the Board's collective
position will be on blessing or not blessing pending projects.
OVERSIGHT BOARD MINUTES 5 MARCH 7, 2012
. M 031
Vice Chairperson Osborne asked for clarification on the State's review of all
Board decisions. The State has three days after each Board meeting to
question any decision and ten days to approve the action or return it to the
Board for reconsideration. If the Board does not hear anything from the
State, it is assumed that they have agreed or allowed the Board to move
forward with what they decided.
CHAIR AND BOARD MEMBERS' ITEMS — None
ADJOURNMENT
There being no further business, it was moved by Board Members Nelson/McDaniel
to adjourn. Motion carried unanimously.
Respectfully submitted,
LORI LAFOND
Oversight Board Secretary
OVERSIGHT BOARD MINUTES 6 MARC� 71,2012
032