Loading...
2012 05 01 SACITY AS SUCCESSOR AGENCY TO THE LA QUINTA REDEVELOPMENT AGENCY Agendas and staff reports are available on the City's web page: www.la-quinta.org AGENDA CITY COUNCIL CHAMBER 787495 Calle Tampico I La Quintai California Regular Meeting TUESDAY. MAY 1. 2012 AT 4:00 P.M. Beginning Resolution No. SA 2012-007 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 APRIL 17, 2012 CONSENT CALENDAR NOTE: Consent Calendar items are routine in nature and can be approved by one motion. 1. APPROVAL OF DEMAND REGISTER DATED MAY 1, 2012 2. APPROVAL OF REVISED SUCCESSOR AGENCY ADMINISTRATIVE BUDGETS FOR JANUARY-JUNE 2012, AND JULY-DECEMBER 2012 CITY AS SUCCESSOR AGENCY TO RDA 1 MAY 1, 2012 BUSINESS SESSION - NONE STUDY SESSION - NONE DEPARTMENT REPORTS 1. UPDATE ON STATE DEPARTMENT OF FINANCE REVIEW OF THE RECOGNIZED OBLIGATION PAYMENT SCHEDULES FOR THE PERIODS OF JANUARY-JUNE 2012, AND JULY-DECEMBER 2012 ADJOURNMENT The next regular meeting of the City as Successor Agency to the La Quinta Redevelopment Agency will be held on May 15, 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 I, 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 27, 2012. DATED: April 26, 2012 SUSA� S, Interi ity Clerk City of La Quinta, California 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 2 MAY 1, 2012 TaY °F jha" CITY SA EETING DATE: May 1, 2012 ITEM TITLE: Approval of Demand Register Dated May 1, 2012 AGENDA CATEGORY: BUSINESS SESSION: _ CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: RECOMMENDATION: It is recommended the Successor Agency of the La Quinta Redevelopment Agency: Receive and File the Demand Register Dated May. 1, 2012 of which $80,775.95 Represents Successor Agency Expenditures as detailed below: Vendor: Account #: Amount: Purpose: Rosenow Spevacek Group 231-9001-702.32-07 $11,326.58 Housing Compliance Rosenow Spevacek Group 232-9002-702.$2-07 $872.50 Coral Mountain Rosenow Spevacek Group 232-9002-702.32-07 $832.50 Torre Nissan Rosenow Spevacek Group 237-9001-702.32-07 $10,864.04 Admin SA 1 Rosenow Spevacek Group 238-9002-702.32-07 $5,350.96 Admin SA 2 Rutan & Tucker 231-9001-702.32-01 $1,320.00 Retainer Rutan & Tucker 231-9001-702.32-01 $2,111.43 Habitat for Humanity Rutan & Tucker 231-9001-702.32-01 $72.00 SA Foreclosure Rutan & Tucker 232-9002-702.32-01 $660.00 Retainer Rutan & Tucker 232-9002-702.32-01 $190.12 Housing 48/Adams Rutan & Tucker 232-9002-702.32-01 $1,824.50 SA Coral Mountain DDA Rutan & Tucker 232-9002-702.32-01 $72.00 SA Washington St Apt Rutan & Tucker 232-9002-702.32-01 $860.00 Miles/Washington St Rutan & Tucker 237-9001-702.32-01 $660.00 Retainer Rutan & Tucker 237-9001-702.32-01 $15,735.46 SA AB26 Implementation Rutan & Tucker 238-9002-702.32-01 $1.320.00 Retainer Rosenow Spevacek Group 231-9001-702.32-07 $14,086.35 Housing Compliance Rosenow Spevacek Group 232-9002-702,32-07 $1,665.00 Coral Mountain Rosenow Spevacek Group 232-9002-702.32-07 $2,940.00 Torre Nissan Rosenow Spevacek Group 237-9001-702.32-07 $5,368.38 Admin SA 1 Rosenow Spevacek Group 238-9002-702.32-07 $2,644.13 Admin SA 2 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 pursuantto 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 ABX126, are limited to the extent of the total sum of property tax revenues it receives pursuant to part 1.85 of ABX126 (e.g., Health and Safety Code Sections 34170 — 374190) and the value of assets transferred to it as Successor Agency forthe dissolved La Quinta Redevelopment Agency. 4Repecffully submitted, John M. Falconer, Finance Director Approved for submission by: Mark Weiss, Interim Executive Director AGENDA CATEGORY: COUNCII SQMEETING DATE: May 1, 2012 BUSINESS SESSION: _ ITEM TITLE: Approval of Revised Successor Agency Administrative Budgets for January -June 2012 and July- CONSENT CALENDAR: _ December 2012 STUDY SESSION: PUBLIC HEARING: RECOMMENDATION: Approve the revised Successor Agency Administrative Budgets for the periods of January through June 2012 and July 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. The administrative allowance is calculated as a percentage of the total amount listed on the Recognized Obligation Payment Schedules ("ROPS"). For the period of January 2012 through June 2012, ABx1 26 provides for an administrative allowance of 5% of the total BOPS. The Department of Finance ("DOF"), upon review of the BOPS, has determined that certain line items must be reclassified from enforceable obligations to administrative expenses. The DOF has also recalculated the 5% administrative allowance and concluded that it is $835,495 for this time period. For the period of July 2012 through December 2012, ABx1 26 provides for an administrative allowance of 3% of the total listed on the ROPS. The DOF, upon review of the BOPS, has determined that certain line items must be reclassified from enforceable obligations to administrative expenses. The DOF has recalculated the 3% administrative allowance and concluded that it is $384,357 for this time period. In both cases, the DOF's figures are different from staff's calculation. Staff is working with DOF to ascertain why there is a difference. In the meantime, it is prudent to amend the budgets based on DOF's numbers. Amending the BOPS pursuant to DOF's conclusions changes the SA administrative budgets and therefore, the amended budgets must be reviewed and approved by the SA. BACKGROUND AND OVERVIEW: On April 3, 2012, the SA reviewed and approved administrative budgets for the time periods listed above. The following day, the Oversight Board approved the administrative budgets as well. It should be noted the DOF is not required to review administrative budgets, but it does review the BOPS. Staff submitted the BOPS to the DOF on April 6, 2012. The DOF requested additional information regarding several contracts listed on the BOPS, which staff provided. On April 17, 2012, the DOF contacted staff via letter, which is included as Attachment 1. The DOF did not address the contracts it had identified for review, but instead required the reclassification of several items from enforceable obligations (which are paid from tax increment) to administrative expenses (which are paid from the administrative cost allowance). These items include legal and consulting costs related to ABx1 26 implementation; agreements between the former Redevelopment Agency and City for staff, overhead, and rent expenses; records storage costs for SA documents; and costs for on-line municipal code related to the SA. (Please see SA Department Report regarding ROPS for specifics.) Reclassifying these items to administrative expenses, and incorporating the DOF's administrative allowance calculations changed the SA administrative budgets. For the January 2012 through June 2012 SA administrative budget (Attachment 2), the higher administrative allowance provides for more staff and overhead costs to be covered Conversely, the lower administrative allowance for the July 2012 through December 2012 SA budget (Attachment 3) translates into less money to cover staff and overhead costs, no coverage for rent, and less for other miscellaneous items. Staff has added a footnote for this budget that, at the end of December 2012, unused balances in other line items will be applied to rent. To clarify the difference between the Successor Agency administrative budget and ROPS, the Successor Agency administrative budgets itemize the expenditures for the 5% and 3% administrative allowance provided by ABx1 26. The ROPS itemize project -specific costs, which includes staff, legal, and consulting costs to administer each project. The SA budgets will be reviewed by the Oversight Board at its May 2, 2012 meeting. The budgets will then be forwarded to the County Auditor/Controller's office, so they can calculate the total property tax to be distributed to the Successor Agency in June 2012. FINDINGS AND ALTERNATIVES: The alternatives available to the Successor Agency include: 1. Approve the revised Successor Agency Administrative Budgets for the periods of January through June 2012, and July through December 2012; or 2. Do not approve the revised Successor Agency Administrative Budgets for the periods of January through June 2012, and July through December 2012; or 3. Provide staff with alternative direction. Respectfully submitted, c Debbie Powell Economic Development/Housing Manager Approved for submission by: Mark Weiss, Interim Executive Director Attachments: 1. Letter from DOF dated April 17, 2012 2. Administrative Budget for January through June 2012 3. Administrative Budget for July through December 2012 ATTACHMENT ENT Ok Ca "� 2 W IIII D O R * DEPARTMENT ,/�G OF EOMUND G. BROWN JR. - GOVERNOR r �I,RRNM {� 1w1� A N C 91 9 L BTA6 0 SACRAMENTO GAS 9681 4.3706 6 w .60P.".Gav April 17, 2012 Debbie Powell, Economic Development/Housing Manager City Manager's Office City of La Quinta PO Box 1504 La Quints, CA 92247-1504 Dear Ms. Powell: Pursuant to Health and Safety Code (HSC) section 34177 (1) (2) (C), the City of La Quinta (City) Successor Agency submitted a Recognized Obligation Payment Schedule (ROPS) to the California Department of Finance (Finance) on April 6, 2012, for the periods of January through June 2012 and July through December 2012. Finance staff contacted you for clarification of items listed in the ROPS. HSC section 34171 (d) lists enforceable obligation (EO) characteristics. Based on a sample of line items reviewed and application of the law, the following do not qualify as EOs: Administrative expenses totaling $1,870,639 for the January through June 2012 period. HSC section 34171 (b) limits administrative expenses for fiscal year 2011-12 to five percent of property tax allocated to the successor agency or $250,000, whichever is greater. Five percent of the property tax allocated is $835,495. Therefore, $1,870,639 of the claimed $2,706,134 in administrative expenses is not an ED. The following were considered administrative expenses: o Proj Area 1 — Items 1, 2, 3, 8, and 9 o Proj Area 2 — Items 1, 2, 9, and 10 o Proj Areas 1 and 2 — Items 11 and 12 Administrative expenses totaling $209,623 for the July through December 2012 period. HSC section 34171 (b) limits administrative expenses in fiscal years after 2011-12 to three percent of property tax allocated to the successor agency or $250,000, whichever is greater. Three percent of the property tax allocated is $384,357. Therefore, $209,623 of the claimed $593,980 in administrative expenses is not an EO. The following were considered administrative expenses: o Proj Area 1 — Items 1, 2, and 3 o Proj Area 2 — Items 1 and 2 o Proj Areas 1 and 2 — Items 11, 12, and 13 As authorized by HSC section 34179 (h), Finance is returning your ROPS for your reconsideration. This action will cause the spec ROPS items noted above to be ineffective until Finance approval. Furthermore, items listed on future ROPS will be subject to review and may be denied as EOs. If you believe we have reached this conclusion in error, please provide further evidence that the items questioned above meet the definition of an EO. Please direct inquiries to Evelyn Suess, Supervisor or Mindy Patterson, Lead Analyst at (916) 322-2985. Sincerely, , 4/0 MARK HILL Program Budget Manager cc: Ms. Pam Elias, Chief Accountant Property Tax Division, Riverside County Auditor -Controller Ms. Jennifer Baechel, Business Process Analyst II, Riverside County Auditor -Controller Ms. April Nash, Supervising Accountant, Riverside County Auditor -Controller ATTACHMENT 2 SUCCESSOR AGENCY/OVERSIGHT BOARD dANJUNE 2012 ADMINISTRATIVE BUDGET PERSONNEL $483,441 Includes base salary plus benefits. Successor Agency Administration $345,580 Oversight Board Administration $137,861 SUPPLIES & SERVICES CONTRACT SERVICES $199.000 This account provides for legal, consulting, and audit services plus a portionof League of California Cities and California Redevelopment Agency dues related to technical assistance and tranining for implementation of ABx1 26 Audits as required by ABx1 26 $8,000 League of California Cities Dues & Seminars/Webinars relat ad to ASO 26 $1,500 2011-2012 CRA Dues & Seminars/Webinam related to ABx1 26 $4,500 Legal Services for Successor Agency $120,000 Consulting Services for Successor Agency $65,000 SUPPLIES AND PUBLICATIONS $2,100 This account provides for various office supplies and publiwtions to be used by SA and OB staff and board members Successor Agency Supplies & Publications $1,350 Oversight Board Supplies & Publications $750 PRINTINGIMAILINGIADVERTISING $5,000 $5,000 This account provides for required mailings, a ends printing and legal advertising INFORMATION TECHNOLOGY $11,250 This account provides for annual replacement charges for information technology items such as computers, printers, and computer related items attributable to SA/OB; and support/hosting for SA/OB web pages, which are required by ABx1 26 1 $10,000 Com uter Document Storage related to Successor A en - $1,165 OnLine Muni Code related to Successor Agency $85 RENTAL OF SPACE IN CITY HALL (Per previous agreement between City of La Quints and former RDA) $134,704 $134 704 TOTAL ADMINISTRATIVE BUDGET $835,495 FUNDING SOURCES: 5% ADMINISTRATIVE ALLOWANCE $535,496 as calculated by the Department of Finance in letter dated 4-17-12 ATTACHMENT SUCCESSOR AGENCY/OVERSIGHT BOARD JULY-DEC 2012 ADMINISTRATIVE BUDGET PERSONNEL $212,507 Includes base salary plus benefits. Successor Agency Administration $139,158 Oversight Board Administration - $73,349 SUPPLIES 8 SERVICES CONTRACT SERVICES $163,000 This account provides for legal, consulting, and audit services plus a portion of League of California Cities and California Redevelopment Agency dues related to technical assistance and tranining for implementation of ABxt 26 Audits as required by ABxi 26 $6,000 League of California Cities Dues & Seminars/Webinars relat ad to ABx1 26 $500 Seminars/Webinars related to ABx1 26 $500 Legal Services for Successor Agency $120,000 Consulting Services for Successor Agency $36,000 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 Successor Agency Supplies & Publications $1,350 Oversight Board Supplies & Publications $750 PRINTING/MAILING/ADVERTISING $1,000 $1,000 This account provides for required mailings, agenda printing and legal advertising INFORMATION TECHNOLOGY $6 250 This account provides for annual replacement charges for information technology items such as computers, printers, and computer related items attributable to SA/OB; and support/hosting for SA/O8 web pages, which are required by ABx1 26 $5,000 Computer Document Storage related to SucoessorAgency $1,165 OnLine Muni Code related to Successor Agency $85 RENTAL OF SPACE IN CITY HALL (Per previous agreement between City of La Quints and former RDA' $0 $0 TOTAL ADMINISTRATIVE BUDGET $384,857 FUNDING SOURCES: 3% ADMINISTRATIVE ALLOWANCE $384,857 as calculated by the Department of Finance in letter dated 4-17-12 -Unused balances in other line items will be applied to Rent Department Report: 1 City as Successor Agency To The La Quinta Redevelopment Agency MEMORANDUM TO: Honorable Mayor and Members of the Successor Agency FROM: Mark Weiss, Interim Executive Director f1' DATE: May 1, 2012 SUBJECT: Update on State Department of Finance Review of the Recognized Obligation Payment Schedules for the Periods of January - June 2012 and July - December 2012 On April 6, 2012, staff forwarded to the Department of Finance ("DOF") the Recognized Obligation Payment Schedules ("BOPS") for the periods of January through June 2012, and July through December 2012. Both BOPS had been previously approved by the Successor Agency and Oversight Board. On April 10, 2012, the DOF requested additional information on several agreements listed on the ROPS, including Habitat for Humanity, Coral Mountain, RBF (for SRR canal relocation), RSG (for Washington Street Apartments project management), and USDA and Provident Bank deeds of trust for Washington Street Apartments. Staff forwarded the agreements along with a letter of explanation to the DOF (Attachment 1). The DOF responded with a letter dated April 17, 2012 (Attachment 2), that did not address the agreements listed above, but did identify several line items that it considers to be administrative expenses to be paid from the administrative cost allowance, and therefore, are not enforceable obligations to be paid with tax increment apart from the costs allowance. These items include the contracts of Rutan & Tucker and RSG, Inc. related to implementation of ABx1 26; a contract with RSG to perform affordable housing compliance activities; agreements between the former RDA and City for staff, overhead, and rent expenses; computer record storage related to Successor Agency documents; and online municipal code costs related to the Successor Agency. The DOF also recalculated the administrative budget allowance. The DOF returned the BOPS for reconsideration by the Oversight Board and resubmission to the DOF for review. The DOF stated the BOPS is ineffective until DOF approval, and that having these items listed as enforceable obligations will cause further scrutiny of future BOPS. Because the April 17`h letter did not address the DOF's initial concerns with the Habitat, Coral Mountain, RBF, Rutan, and RSG agreements, and the USDA and Provident Bank loans, staff contacted the DOF for clarification. In an email dated April 19, 2012 (Attachment 3), the DOF stated they agreed with the supporting documentation provided by staff; therefore these items are enforceable obligations that can be listed on the ROPS. Therefore, in order to comply with the DOF's letter of April 17`h, staff has amended both BOPS accordingly, removing Rutan & Tucker's contract for legal services related to the implementation of AB1x 26 and Rosenow Spevacek Group's contract related to implementation of ABx1 26; agreements between the former RDA and City for staff, overhead, and rent expenses; computer record storage related to Successor Agency documents; and online municipal code costs related to the Successor Agency from the ROPS and placing them into the Successor Agency Administrative Budgets. The DOF's calculation of the Administrative Budget Allowance has also been incorporated into the amended BOPS. The RSG contract for affordable housing compliance will be moved to the Housing Authority budget. The amended ROPS are included as Attachment 4. (The Successor Agency, via Resolution 2012-005, authorized and directed 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.) ABx1 26 does not require the Successor Agency to approve the DOF's changes to the BOPS, but does require Oversight Board approval. Therefore, the Oversight Board will consider the amended BOPS at its May 2, 2012 meeting. The re -categorization of these items to administrative expenses changes the Successor Agency administrative budgets for these time periods. These items are included on today's Successor Agency consent agenda with further explanation. Attachments: 1. Letter to DOF dated April 12, 2012 2. Letter from DOF dated April 17, 2012 3. Email from DOF dated April 19, 2012 4. Amended ROPS for periods January -June 2012 and July - December 2012 ATTACHMENT IAA I r i tl P.O. Box 1504 LA Qcn-rn, Cnt.iroiexiA 92247-1,504 78-495 Cni.i.r:'Fkm, co (760) 777-7000 LA QUINIA, r.Al.IPORN1A 92253 FAX (760) 777-7101 Via Electronic Mall April 12, 2012 Ms. Mindy Patterson Lead Analyst California Department of Finance 915 L Street Sacramento, CA 95814 RESPONSE TO DOF INQUIRY REGARDING THE LA QUINTA SUCCESSOR AGENCY RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR JANUARY TO JUNE 2012 Dear Ms, Patterson: The La Quinta Successor Agency received your April 10, 2012 e-mail seeking additional information related to several items on its Recognized Obligation Payment Schedule ("ROPS"), which was approved by the Oversight Board on April 4, 2012 and subsequently submitted to the Department of Finance on April 6, 2012, Transmitted with this cover letter, please find the contracts and other documentation you requested for the items identified in your e-mail. The specific items your e-mail identified from the January to June 2012 ROPS were as follows: Project Area 1 • Habitat for Humanity agreement for construction of mutual self help homes (line item 5) • RBF Consulting contract for SilverRock Resort Infrastructure design and engineering (line item 6) Project Area 2 • Coral Mountain Partners, LP Disposition and Development Agreement (line item 4) • Any contracts that have been issued under this DOA • Status of the Coral Mountain project • Rosenow Spevacek Group contract for development and implementation of the Washington Street Apartments rehabilitation project (line item 5) • Loan agreement and repayment schedule for United States Department of Agriculture for a Rural Development Loan (line items 6 and 7) • Loan agreement and repayment schedule for Provident Savings Bank loan We have formulated the rest of this letter to provide some basic explanation of these projects and contracts to assist you in your review. As described below, the former La Quinta Redevelopment Agency ("Agency") was very actively pursuing a number of important projects, largely related to implementation of affordable housing — a critical issue in the rapidly growing Coachella Valley. All but one of your inquires relate to the Agency's effort to provide affordable housing. To date, the Agency has created 1,059 affordable units, and was mandated to create another 1,248 over the next 17 years. Habitat for Humanity agreement for construction of mutual self help homes The opportunity for residents to purchase a single family home, even on an average salary, is one of the true challenges Californians face. Thus, on August 23, 2010, the Agency and Habitat for Humanity entered into a public -private partnership to construct two, for -sale, single family homes available to low income families. Because of this successful partnership, the original agreement was amended on February 1, 2011 to develop an additional five homes to be built over a five year period between July 1, 2013 and June 30, 2018. Though it was the Agency's hope to develop these homes expediently, Habitat for Humanity is also engaged in the construction of homes in nearby communities and thus could not deploy its resources until 2013. We nonetheless believe that this is an enforceable obligation as defined in Health & Safety Code Section 34171(d)(1)(E). RBF Consulting contract for SllverRock Resort Infrastructure design and engineering The Agency had been pursuing the development of the SilverRock property for recreation and economic development purposes since 2002. The contract with RBF Consulting was executed on August 16, 2006 to facilitate a variety of activities related to infrastructure needed to expand municipal services and preserve health and safety at the SilverRock property including a hydrology study, street improvement plans, and other engineering efforts. However, the services RBF is currently engaged in are complementary to other related water facility projects in the area, specifically working with the Coachella Valley Water District ("CVWD") to study transmission and alignment options for the aging All American Canal. The Canal is a critical component in the domestic water system in the east Coachella Valley. It transports water from the Colorado River to ground water recharge basin, agricultural, and other users. The Canal has subsided throughout the Coachella Valley, but not as it travels through SilverRock; therefore, flows are severely restricted. RBF is working with CVWD to craft options to rebuild this segment of the Canal. The Canal alignment options study is underway and should be completed by July 2012. This contract is an enforceable obligation as defined in Health & Safety Code Section 34171(d)(1)(E). Coral Mountain Partners, LP Disposition and Development Agreement, Status, and Contracts The current Disposition and Development Agreement with Coral Mountain Partners ("DDA") was entered into on January 4, 2011. However, this is only the most recent in a series of agreements stemming back to 2007 necessary to develop 176 affordable multi -family units on approximately 10 acres. Extensive work has been performed to prepare for this development over the last five years including: • Purchase of the property by the Agency • Construction of a street * providing access to the site • Realignment of an Intersection to provide safe access to both the site and the adjoining school district facility • Several phase one and . other environmental investigations • Preparation of a specific plan • Preparation and certification of an environmental impact report • Preparation and procurement of entitlements • Preparation of architecture and design work • Site engineering and grading • Public input process and outreach to neighboring property owners • Securing building permits On April 4, 2012, the Oversight Board to the Successor Agency to the La Quints Redevelopment Agency unanimously approved the DDA, and the dedication of the property and the funding necessary to complete the implementation this development. The Oversight Board affirmatively concluded that the agreement should not be terminated pursuant to Health & Safety Code Section 34181(a). We note that this decision was not taken up for review by the DOF, and is now final. The developer, Coral Mountain Partners, is currently securing 4 percent tax market credits pursuant to the DDA. As you can see, this project is in full swing. Construction will begin in August 2012. When completed, it will provide housing to 36 very low, 138 low income households, and 2 moderate income households. This contract is an enforceable obligation as defined in Health & Safety Code Section 34171(d)(1)(E) The funding source for this line item is listed on the ROPS as a combination of Low and Moderate Income Housing Funds and Redevelopment Property Tax Trust Fund/Tax Increment. The Successor Agency believed at the time that being an enforceable obligation, this project would be eligible for funding from future tax increment. However, the Successor Agency is able to fund this project with accumulated Low and Moderate Income Housing Funds, if that is the preference of the DOF. The developer has included a letter which provides further information regarding this project, including a listing of their contracts under the DDA. To date, the developer has expended over $2.8 million. Rosenow Spevacek Group contract for development and implementation of the Washington Street Apartments rehabilitation project The Agency went to great lengths to facilitate the rehabilitation of the Washington Street Apartment complex. The Agency first purchased this property in 2007 after assuring the Farmer's Home Administration, United States Department of Agriculture that the Agency would substantially rehabilitate the complex. The Department recently sent a letter indicating that its approval of the transfer was predicated on the commitment the Agency had made relating to the rehabilitation. Then, the City annexed this property into the City of La Quints, and the Agency subsequently amended a project area in 2010 to add this property. Seventy-two of the 73 units are currently restricted to very low income seniors and special needs residents pursuant to previous underwriting by the Farmer's Home Administration, United States Department of Agriculture. The complex is 32 years -old, and rapidly deteriorating. Planned improvements include unit rehabilitation, a new recreation building and community amenities, updated appliances and fixtures, more energy efficient windows and HVAC systems, new carports to protect residents from extreme heat, and an improved noise barrier on Washington Street. The La Quinta Housing Authority will then record 55-year affordability covenants to preserve the affordability of the units to very low and low Income senior and handicapped households. Performance on the contract entered into on March 30, 2011 with Rosenow Spevacek Group in order to facilitate the rehabilitation is well underway. A variety of tasks are already completed including: all preliminary design work, negotiation of an agreement with the US Department of Agriculture, demolition of certain structures, architectural design work, engineering plans, and civil engineering related to wastewater infrastructure. This contract is an enforceable obligation as defined in Health & Safety Code Section 34171(d)(1)(E). Loan agreement and repayment schedule for United States Department of Agriculture Rural Development Loan and Provident Savings Bank loan Both of these loans are associated with the Washington Street Apartments described above. The prior owner maintained significant debt on the property and as a part of the transaction to acquire the property, the Agency assumed two of the existing loans. The USDA loan originated in 1980 with the development of the complex. The Agency assumed the loan on October 14, 2008 as a part of the purchase of the property. The Provident Savings Bank loan originated in 2001, and was assumed by the Agency on October 28, 2008, also as a part of the purchase of the Washington Street Apartment complex and property. These loans are enforceable obligations as defined in Health & Safety Code Section 34171(d)(1)(B) and (E) We hope this letter and enclosed attachments satisfies your data request. We are happy to provide you anything further necessary for your review. Please contact Debbie Powell, Economic DevelopmenUHousing Manager at (760) 777-7073 should you have any questions. Thank you for your consideration. (Sincerely, Mark Weiss Interim Executive Director Successor Agency to La Quinta Redevelopment Agency cc: M. Katherine Jenson, Successor Agency Counsel Frank Spevacek, Rosenow Spevacek Group Debbie Powell, Economic Development/Housing Manager Enclosures: Contract with Habitat for Humanity Contract with RBF Consulting Coral Mountain DDA Letter from Coral Mountain Partners, L.P. Loan Agreement with USDA Loan Agreement with Provident Bank ATTACHMENT 2 I W IIII D 6 M * DEPARTMENT OF EDMUND G. BROWN JR. - GOVERNOR �11�RN1' FINANCE 915 L STNE ■ SACRAMENTO CA ■ 99614.9906 C w .00p.cA.Guv April 17, 2012 Debbie Powell, Economic Development/Housing Manager City Manager's Office City of La Quinta PO Box 1504 La Quinta, CA 92247-1504 Dear Ms. Powell: Pursuant to Health and Safety Code (HSC) section 34177 (1) (2) (C), the City of La Quinta (City) Successor Agency submitted a Recognized Obligation Payment Schedule (ROPS) to the California Department of Finance (Finance) on April 6, 2012, for the periods of January through June 2012 and July through December 2012. Finance staff contacted you for clarification of items listed in the ROPS. HSC section 34171 (d) lists enforceable obligation (EO) characteristics. Based on a sample of line items reviewed and application of the law, the following do not qualify as EOs: Administrative expenses totaling $1,870,639 for the January through June 2012 period. HSC section 34171 (b) limits administrative expenses for fiscal year 2011-12 to five percent of property tax allocated to the successor agency or $260,000, whichever is greater. Five percent of the property tax allocated is $835,495. Therefore, $1,870,639 of the claimed $2,706,134 in administrative expenses is not an EO. The following were considered administrative expenses: o Proj Area 1 — Items 1, 2, 3, 8, and 9 o Proj Area 2 — Items 1, 2, 9, and 10 o Proj Areas 1 and 2 — Items 11 and 12 Administrative expenses totaling $209,623 for the July through December 2012 period. HSC section 34171 (b) limits administrative expenses in fiscal years after 2011-12 to three percent of property tax allocated to the successor agency or $250,000, whichever is greater. Three percent of the property tax allocated is $384,357. Therefore, $209,623 of the claimed $593,980 in administrative expenses is not an ED. The following were considered administrative expenses: o Proj Area 1 — Items 1, 2, and 3 o Proj Area 2 — Items 1 and 2 o Proj Areas 1 and 2 — Items 11, 12, and 13 As authorized by HSC section 34179 (h), Finance is retuming your ROPS for your reconsideration. This action will cause the speck ROPS items noted above to be ineffective until Finance approval. Furthermore, items listed on future ROPS will be subject to review and may be denied as EOs. If you believe we have reached this conclusion in error, please provide further evidence that the items questioned above meet the definition of an EO. Please direct inquiries to Evelyn Suess, Supervisor or Mindy Patterson, Lead Analyst at (916) 322-2985. Sincerely, // �L�l 4 w.414 MARK HILL Program Budget Manager cc: Ms. Pam Elias, Chief Accountant Property Tax Division, Riverside County Auditor -Controller Ms. Jennifer Baechel, Business Process Analyst II, Riverside County Auditor -Controller Ms. April Nash, Supervising Accountant, Riverside County Auditor -Controller ATTACHMENT 3 D2 - Attachment.3 subject: FW: La Quinta ROPS From: Patterson, Mindy [mailto:Mindy.Patterson@dof.ca.gov] Sent: Thursday, April 19, 2012 12:47 PM To: Deborah Powell Subject: RE: La Quinta ROPS Hi Debbie, The letter you received are the results of our review for the re -reviewed the other items we originally questioned and agreed with the supporting Mindy Patterson From: Deborah Powell [mailto:dpowell@la-quinta.org] Sent: Wednesday, April 18, 2012 4:50 PM To: Patterson, Mindy Subject: FW: La Quinta ROPS Hello Mindy, Jan -June ROPS. We documents. Does the attached letter from Mr. Hill constitute the response to the BOPS inquiry by DOF on April 10, 2012? 1 guess I'm a bit confused, because Mr. Hill's letter references other items listed in the RODS, and not the items in question. Thank you for your help! Debbie Powell, Economic Development/Housing Manager city Manager's office City of La Quinta dpowell@la-quinta.org (760) 777-7073 (760) 777-7101 fax From: Sneed, Jonathan [mailto:Jonathan.sneed@dof.ca.gov] Sent: Wednesday, April 18, 2012 1:58 PM To: Deborah Powell cc: pelias@co.riverside.ca.us; jbaechel@co.riverside.ca.us; anash@co.riverside.ca.us subject: La Quinta ROPS Pursuant to Health and Safety code (HSC) section 34177 (1) (3), you submitted an Oversight Board approved Recognized Obligation Payment Schedule (RODS) to the California Department of Finance (Finance). Finance recently contacted you to get further clarification for items listed in the RODS. There are certain items listed in your BOPS that we do not believe qualify as Enforceable obligations. Please see the attached document: Page 1 7onathan A. Sneed Department of Finance - BT&H 916-322-2263 jonathan.sneed@dof.ca.gov D2 - Attachment 3 Page 2 Nana &ReM'e nl An,: la euinta Re eb ment Amn Pmpd AR4,) W.1 RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS) For Fiscal Year 2011012 Per ABx1 as H 6SdvC SFeeon UIST, UtSkAU1TT Souitt of Project Name) Total Outstanding Debt or Prynent Is: P ntsb month Jan'12 Feb'12 March'12 A d'12 M '12 June'12 Total DeMObi' adon Payee Description Obi ation Levend) PA 1, Agreement for Fame Purchase and La Oulnta Palms Purchase and rehabilitation of blighbad 1) Rehabiliaton Program Realty foreclosed homes for rental or resale to income Qualified tenaritsfouvers $3.200,000 "A,E $0 PA 1, Horne Purchase and Rehabilitation City of La Ouinta Project Management Cos6StaBTim. Non ta) Program is Successor Personnel Agency $320,000 "A,E $0 PA 1, Home Pumhas2 and Rehabilitation Rulan & Tucker Project ManagementCoslsLegal tc) Program - $160,000 "A,E $O PA 1, Habitat for Humanity Agreement for Habitat for Program Will require abtal expeMifote of up to None for period covered by CorsWcBon of mutual sell MID homes to Humanity $1,100,000 for five homes to be constructed over this ROPS;Scheduta is from 2) provide affordable tousirp five fiscal years for Lea- and Moderao4=ma FY 2013-2014 to 2017-2018; Homing qualBied buyers. BRat is$1,100000 - E SO PA 1, Habitat for Humanity Agreement City of La Ouinta Project Management Costs -Staff Time,Non- Estim. Total for FY 2013-2014 2a) Personnel to 2017-2018: $110,000 , E $0 PA 1, Habitat for HMnanity Agreement Ruin&Tucker Project ManagemenlCosisiegal, preparation of Estim. Total for FY 2013-2014 col required loan and legal documents to 2017-2018: $55,000 E SO PA1, SilverRack Resort Infrastructure RGFConeiiting Design and engineering of iMasouclure o $50,000 for period covered by 3) Design and Engineering supped development of SllverRock Resod this ROPS. Total is $759,875 "B,E $25,000 $25000 $50,000 PA 1, Donesde Water & Sanitation CoachellaValoy Future Infrastwaire impivemeno required for System Installation and Irrigation Water District development ofSilvediock Resod by Domestic 4) Agreement for SflverRoek Resort - Water& Sanitation System lnstaSabon and iDevftmnt ImigabonAgreement $14,825,644 E 30 Grand TOtalforPA1 - $0 $0 $0 $0 $25000 $25000 $50000 -THE FUNDING FOR ME PAYMENT WAS ADVANCED Firm THE ACCOIIM M MED BEFORE THE COMNA THE SUCCESSOR AGENCYS POSITION IS MAT THESE PAYMENTS SWUM BE FROM THE REOEVEIAPNEM PROPERTY TM TRUST FIMDf MINCREMENT ISO ME OF PAYMENT E), BUT DUE TO TIE TOUNG OF ME PAYMENT, FUNDS FROM THAT SOURCE WERE NOT MADE AVNIABLE TO ME SUCCESSOR AGENCY. ^ SBEPRESENTSTEFXISILNOAOREEMERTBEIWEENTHEFORMERRDk MID ECRYFORBTAFFTME THIS sou OveuAP wmx THE aokvasTRArnE euoGEr. Baa�at Project Name/ - Total Outstangirp DeM or Prymenl (aae P mans moMl Jan'12 Feb'12 M.h'12 A nl'12 M '12 1 June'12 1 Total Debt Obligation P Oescn can Obl' agon Legend) ,: a ..sa-... C}`' ib4"u �Jt ®itil'e"• . M�„,x: .�_;._.. .. .c��'rvm^.mu'r:.m:r A Law eM abEe�em Nouemg Fmns B Bead Pmaeds C Reserve Bslame B AdmmsbaWe Coal Nloaoo E RN owmeM Pm To Twat Fund[Taa lmmn t F Oaa: .uaM b ABO 25 Bed'oe a11T] 1 Page 2 of Name of Redevelopment Agency: La Ouinta Redevelopment Agency Project Area(s) No. 2 RECOGNIZED OBLIGATION PAYMENT SCHEDULE (BOPS) For Fiscal Yar2011-2012 Source of Payment Payments by month . Total Outstanding (Sae Pmct Name1DebtObI' n Pape Description Debt or Obligation L Jan'12 Feb'12 Mamh'12 A ril'12 MaY 12 Jure'12 Total PA 2, Tare Nissan Owner Participation Mega Dealer Investment to upgrade and expand auto $900,000 for period Agreement LLC/Robed N. La dealership facilities (monthly figures am covered by this 1) - Tone, Inc. estimates based on OPA Schedule of ROPS. Total Performance) oN'gation:$1,500,000 B $160,000 $185,000 $185,000 $185,000 $185,000 $900,D00 PA 2, Tom Nissan Omer Participation City of La Ouinta Project Management Costs -Staff Time, Is) Agreement as Successor Non -Personnel Agency $10,432 " C,E $1,043 $1,D43 $1.043 $1,044 $1,043 $5,216 PA 2, Torre Nissan Owner Participation Rotas & Tucker Project Management Costs -Legal 1b) Agreement E7,200 "C E $720 $720 $720 E720 $720 $3,600 PA2, Tone Nissan Owner Participation Rose" Project Management Costs-ConsWOng 1c) Agreement Spevacek Group, Semses Inc. $20,000 " C,E $2,000 $2,000 $2,000 $2,000 $2,000 $10,000 PA 2, Cord Mountain Partners Disposition Coral Mountain Construction of 176 affordable units aM Development Agreement Parmers, LP (monthryfgums are estimates based on 2) DDA Schedule of Pedormance) $29900,000 A 1 $96.697 $64434 $1,759,119 $1,704,386 $1704386 $IJ04,386 $7,033,408 PA 2, Coral Mountain Partners Dispostion City of la Ouinta Project Management Costs - Staff Time, 2a) and Development Agreement as Successor Non -Personnel Agency $80,568 ^A,E $2,238 $2,230 $2,238 $2,238 $2,237 $2,237 $13,426 PA 2, Coral Mountain Parmers Disposition Rutan&Tucker Project Management Costs - Legal 2b) and Development Agreement $43,200 "A,E $1,200 $1,200 $1,200 $1,200 $1,200 $1.200 $7,200 PA 2, Coral Mountain Partners Disposition Rosenow Project Management Costs - Consulting 2c) and Development Agreennand Spevacek Group, Services Inc. $144,000 " A,E $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $24,000 PA 2, Development and Implementation Rosenow Rehabilitation of 30 year -old units and Services Contract for Washington Street Spevacek Gmup, consburibn of new units for a very -low 3) Aparhnents Rehabilitation Project Inc. income senior and special creeds housing complex $1,471,200 ^A,E $50,000 $50,000 PA Z Washington Street Aparmtments, USDA-RD Lean agreement assumed on 10-31-08 for United Stales Dept of AgdcultuaRural purchase of Washington Street 4) Development Lean Aparments $760,721 E $3,200 $3,200 $3,200 $3,200 $3,200 $3,ZD0 $19,200 PA 2, Washington Street Apartments, Provident Lean agreement assumed on 10.1-08 for Provident Savings Bank Loan Savings Bank purchase of Washington Street 5) ApaMtens$1,57ZO31 7873$12,873 E $128- $12 $12,873 $12,873 $1$873 $77238 Pape 3 of 7 Source of payment Payments by month Total Outstanding (See Pried Nam/Debt Ohli abon P Dewrlptipn Debt or Obligation L e Jan'12 Feb'12 Manch'12 A ril'12 Ma'12 June'12 Total PA2, Construction of Washington Street La Ouinta Written commitment to US Department of 6) Apartments Site Improvm eents & Rehabilitation Housing Authority Agriculture Rural Developnnent to RehaMlitate & Construct Improvements N Washington Street Apadments $18,906,474 " B,E $0 PA 2, Washington Street Apartnents City of La Ouinta Project Management Costs - StafTime, 6a) Rehabilitation Project as Successor Non -Personnel Agency $1,&90,647 "A,E $0 PA 2. Washington Street Apartments Rulan&Tucker Pmject Management Costs -Legal fib) Rehabilitation Pmject $945,324 "A,E $0 Grand Total for PA 2 $120208 $301708 $1971393 $1916660 $1916660 $1916659 $8143288 "THE FUNDING FOR THE PAYMENT WAS ADVANCED FROM THE ACCOUNT LISTED BEFORE THE COMMA. THE SUCCESSOR AGENCY'S POSITION IS THAT THESE PAYMENTS SHOULD BE FROM THE REDEVELOPMENT PROPERTY TAX TRUST FUNDITAX INCREMENT (SOURCE OF PAYMENT E), BUT DUE TO THE TIMING OF THE PAYMENTS, FUNDS FROM THAT SOURCE WERE NOT MADE AVAILABLE TO THE SUCCESSOR AGENCY. —THIS REPRESENTS THE EXISTING AGREEMENT BETWEEN THE FORMER RDA AND THE CITY FOR STAFF TIME. THIS WILL OVERLAP WITH THE ADMINISTRATIVE BUDGET. ...w....Moc A Lax a -A Mederala Houurq WMa B SoM Pmceade C Re. Balances D MrnnskaAve Cal Al.. E Redevelo m t PmwM Tm TaW Fundlfax naeirent F ere®.peno.w b ABxt 2e, seder abtn(I)(0(F) Page 4 of 7 Name of Redevelopment Agency: La Quints Redevelopment Agency Project Area(s) No.1 and No. 2 RECOGN¢ED OBLIGATION PAYMENT SCHEDULE For Fiscal Year 2011.2012 Boom of Payment aymems by month Total Outstanding Debt (see Proct Name/)ebt ONi ation Payee Description or Obligation Le Jan'12 Feb'12 March'12 April'12 Ma '12 June'12 Total 1994 Tax Allocation Bonds - Tax US Bank Bonds to fund projects i) Exempt $2,470,000 'C,E $90,155 $90,155 1998 Tax Allocation Bonds -Tax US Bank Bonds to fund projects - - 2) Exempt $21,185,000 'C,E $651,463 $551,463 2001 Tax Allocation Bonds -Tax US Bank Bonds to fund projects 3) Exempt $48,000,000 'C,E $1,215,360 $1,215,360 4) 2002 Tax Allocation Bonds - Tax US Bank Bonds to fund projects 'C,E Exempt $34,380,000 $871,341 1 $871,341 5) 2003 Tax Allocation Bonds - US Bank Bonds to fund projects Taxable $22,775,000 'C,E $719,378 $719,378 6) 2004 Tax Allocation Bonds -Tax US Bank Bonds to fund projects 'C,E Exempt $79,345,000 $2,029,553 $2,029,553 n 2011 Tax Allocation Bonds- US Bank Bonds to fund projects `C,E Taxable $28,850,000 $1,085,884 $1,085,884 91 2011 Tax Allocation Bonds - US Bank Bonds to fund projects Taxable $6,000,000 'C,E $239,384 $239,394 Annual continuing disclosure_ Wiklan Financial Preparation of Annual continuing 9) Statements Services disclosure reports per Federal regulations $250,000 E $0 Bond holder fees US Bank Fees for holding administration 10) and distribution of bond proceeds - $60,000 E $0 City of La Cuinta Adminsitrative Cost Allowance as Successor Pursuant to H & S Code Section :$835,495 11 Administrative Budget Agency 34171(b) $6,250,000 "D $139,249 $139,249 $139,249 $139,249 $139,249 $139,249 Grand Total this page Grand Total for PA 1 (page 1) Grand Total for PA 2 (pages 3.4) GRAND TOTAL 'MARCH BOND PAYMENT TO BE ADVANCED FROM RESERVES AND REIMBURSED BY REDEVELOPMENT PRPERTY TAX TRUST FUND NOTE: All oustanding bond obligation figures are principal only `*Administrative Allowance for this period calculated by Department of Finance in letter dated April 17, 2012 Page 5 of 7 Source of Payment Payments by month I Total Outstanding Debt tSas Project NamelDebt Obli ation Payee Descnption or Ot anon to nd Jan'12 I Feb'12 I Mamh'12 I Apn7'12 I May'12 June'12 Total A tm and Moderate Housing Funds B Bond Pmceeds c Reserve Balances D Adminishalie cost Abamm E Redmlopmerd PmpedyTo Trust Fund7fa Increment F Omenpumuantb ABaf 26,Section34177 1( Page 6 of 7 Name of Redevelot La Ouinta Redevelopment Agency Project Area(s) No.1 and No. 2 ENFORCEABLE OBLIGATION PAYMENT SCHEDULE Per AS 26 • Section 34167 and 34169 Project Name / Funding Total Due During Fiscal Payments by montlt Jan'12 Feb'12 March'12 Apol'12 May'12 June Total Debt Obligation Payee Description Source Year Negotiated pass County General Taxing Agency . 1) through Fund Payment E $14,803,383 $7,038,972 $7,038,972 Negotiated pass County library 8 Taxing Agency 2) through Fire Payment E $6,253,362 $4,028,675 $4,028,675 Negotiated pass Desert Sands Taxing Agencyme )3) through USD Paynt E $6,978,820 53,338,992 $3,338,992 Negotiated pass Coache0a Valley Taxing Agency 4) through USD Payment E 5834,077 $0 f0 Negotiated pass College of the Taxing Agency 5) through Desert Payment E $7,594,426 E764,681 $764,fi81 Statutory/Neg. Office of Taxing Agency 6) pass through Education Payment E $621,622 $246,117 $246,117 Statutory pass City of La Ouinta Taxing Agency 7) through through . Payment $157,832 $0 $0 Statutory pass Resource Taxing Agency 8) through Conservation Payment E $1,032 $0 $O Negotiated pass CV Water District Taxing Agency 9) through Payment E $2,332,104 $1,133,775 $7,133,715 StaWtorylNeg. DesertRecreation Taxing Agency 10) pass through - District Payment E 5787,670 $62,255 $62,255 Statutory pass CV Public Taxing Agency 11) through Cemetery Payment E - $9,999 $0 EO Negotiated pass CV Taxing Agency 12) through Vector/Mosquito Payment E 1 $824,321 1 $391,974 $391,974 Grand Total for PA l and PA 1 $17,005,441 $0 $0 $17,005,441 Page 7 of 7 Name of Redevelopment Agency: La Quinta Redevelopment Agency Project Area(s) W.1 RECOGNIZED OBLIGATION PAYMENT SCHEDULE (BOPS) For Fiscal Year 2012.2013 Par Mal 26 • Hub & Safety Code Section 34167, 34169 & 34177 J Source o Payment Payments by month Project Name/ Debt Total Outstanding Debt or (See Obligation Payee Description Obli ation L end July'12 Aug'12 Sept'12 Oct'12 Nov'12 Dec'12 Total PA 1, Agreement La Quinta Palms Purchase and rehabilitation of Agreementtotal: for Home Purchase Realty blighted foreclosed homes for $3,200,000 1) and Rehabilitation rental or resale to income Program qualified tenants/buyers E 1 $0 PA1, Home City of La Quints Project Management Costs -Staff Purchase and Time, Non -Personnel la) Rehabilitation Proqram $320,000 E $0 PA 1, Home Rutan & Tucker Project Management Costs - Purchase and Legal 16) lProqram Rehabilitation $160,000 E $0 PA 1, Habitat for Habitalfor Program will require a total None for period covered Humanity Humanity expenditure of up to $1,100,000 by this ROPS; Schedule is Agreement for for five homes to be constructed from FY 2013-2014 to Construction of over five fiscal years for Low- 2017-2018; total is 2 mutual self help and Moderate -income Housing $1,100,000 homes to provide qualified buyers affordable housing , E $0 PA 1, Habitat for City of La Quinta Project Management Costs -Staff Estim. Total for IY 2013- " 2a) Humanity Time, Non -Personnel 2014 to 2017-2018: Agreement $110,000 E $0 PA 1, Habitat for Ruben & Tucker Project Management Costs- Estim. Total for FY 2013- 2b) Humanity Legal, preparation of required 2014 to 2017-2018: Agreement loan and legal documents $55,000 E $0 PA 1, SilverRock RBF Consulting Design and engineering of $35,000 for period Resort infrastructure to support covered by this ROPS; 3) Infrastructure development ofSilverRock Agreement total: $759,875;1 Design and Resort E $35,000 $35,000 Grand Total for PA 1 $35,000 $0 $0 $0 $0 $0 $35,000 Page 1 of 7 Source o I Payment I Payments by month Project Name/ Debt I Total Outstanding Debt or (See Obligation Payee Description Obligation Leoend)July'12 I Aug'12 Sept'12 Oct'12 Nov'12 I Dec'12 Total A Low and 6lodemte Housing Funds B Bond Proceeds C Reserve Balances D AdministraMe Cost Allowance E Redevelopment Property Tax Trust Fundrrax Increment F Other -pursuant to ABxi 26, Section 34177 1 1 F Name of Redevelopment Agency: La Quints Redevelopment Agency Project Area(s) No.2 DRAFT RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS) For Fiscal Year 2012.2013 Source of Payment Payments by month Project Name/Debt Total Outstanding Debtor (See Ob' ation Payee Description Obligation nit) Juy'12 Aug'12 Sept'12 Oct'12 Nov'12 Dec'12 Total PA2, Torre Nissan Mega Dealer Imssbnent to upgrade and $600,000 for period Owner Participation LLCIRobed N. La expand auto dealership facilities covered by this ROPS; Agreement Torre, Inc. (monthly figures are estimates Agreement total: 1) based on OPA Schedule of. $1,500,000 Performance) B $200,000 $200,000 $21)(1,000 $600,000 PA 2, Tome Nissan City of La Quints Project Management Cos&Sha0 Omer Participation Time, Nor -Personnel 1a) Agreement $6,201 E $2,067 $2,067 $2,067 $6,201 PA 2, Tone Nissan Ruben 8 Tucker Project Management Costs -Legal Owner Participation 11b) Agreement $3,000 E $1,000 $1,000 $1,000 $3,000 PA 2, Torre Nissan Rosenow Project Management Costs - Owner Participation Spevacek Group, Consulting Services 1c) Agreement Inc. $2,160 E $720 $720 $720 $2,160 PA 2, Coral Mountain Coral Mountain Construction of 176 affordable $21,000,000 cmered by Partners Disposition Partners, LP units; tax credit lender may this ROPS; Agreement and Development require SA luncts for agreement total: $29,000,000 2) Agreement be deposited into an escrow account A $21,000,000 $21,000,000 PA 2, Coral Mountain City of La Quints Project Management Costs- Staff Partners Disposition Time, No Personnel 21) and Development Agreement $84,510 E $2,817 $2,817 $2,617 $2,817 $2,817 $2,817 $16,902 Page 3 of 7 Source of Payment Payments by month I Project Name/Debt Total Outstanding Debt or (See Obl' anon P Description Obligation red) JLd '12 Aug'12 Sept'12 Oct'12 Nov'12 Dec'12 Total PA 2, Corot Mountain Rutan 8 Tucker Project Management Costs - Partners Disposition Legal 2b) and Development Agreement $36,000 E -$1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $7,200 PA 2, Coral Mountain Rosenow Project Management Costs - Partners Disposition Spevacek Group, Consultlng Services 2c) and Development Inc. Agreement $120,000 E $4,000 $4,000 1 $4,000 $4,000 1 $4,000 1 $4,000 $24,000 PA 2, Development Rosenow Rehabilitation of 30 year -old units and Implmwtafim Spevacek Group, and construction of new units for a Services Contract for Inc.. very -low income senior and 3) Washington Street special needs housing complex Agreement total: Apanhnenls $1,471,200 Rehabiftation Project A,E $0 PA 2, Washington USDA-RD Loan agreement assumed on 10- Street ApaMrents, 31-08 for purchase of Washington United States Dept of Street Apartments 4) Agriculture -Rural Development Loan $760,721 E $3,200 $3,200 $3,200 $3,200 1 $3,200 $3,200 $19,200 PA 2, Washington Provident Loan agreement assumed on 10- Street Apartments, Savings Bank 1-08 for purchase of Washington Provident Savings Street Apartments 5) Bank Loan $1,572,031 E $12,873 $12,873 $12,873 $12,873 $12,873 $12,873 $77,238 PA 2, Construction of La Quints Written commibnent to US Washington Street Housing Authority Deparhnent of Agriculture Rural - Aparbr ents Site Development to Rehabilitate 8 6) m Improveents 8 Construct Improvements to Rehabilitation Washington Street ApaMrents $18,906,474 B,E $0 PA 2, Washington City of La Quinta Project Management Costs -Stag - StreetApaMienis Tme, Non-Pewnnel ea) Rehabilitation Project $1,890,647 E $0 Page 4 of 7 Source of I payment Payments by month 1 I Project NameMebt Total Outstanding Debt or (see Obli ation Payee Description Obligation nd) J '12 Aug'12 Sept'12 Oct'12 Nov'12 Dec'12 Total PA 2, Washington I Rutan $ Tucker Project Management Costs - fib) Street Aparbnents Legal Rehabilitation Project $945,324 E $0 Grad Total for PA $21227877 $227677 $2278T7 $24090 $24090 $24090 $21755901 �. A Lmr ard Moderate Housing Funds B Bond Proceeds C Reserve Balances D AdmmSbaWe Cast Allowance E Redeueapmenl Pmperly Tex Trust Fundrrex lnctenard F Daer ursuam to ASx126, Becton 3417711 Page 5 of 7 Name of Redevelopment Agency: La Quinta Redevelopment Agency Project Area(s) No.1 and No.2 DRAFT RECOGNIZED OBLIGATION PAYMENT SCHEDULE For Fiscal Year 2012.2013 Total Outstanding Source of payment Payments by month Project Name/Debt Debtor (See Oblitiation Payee Description Obligation a July92 Aug'12 Sept'12 Od'12 Nov'12 Dec'12 Total 1994 Tax Allocation US Bank Bonds to fund projects 1) Bonds -Tax Exempt $2,470,000 E $2,560,155 $2,560,155 1998 Tax Allocation US Bank Bonds to fund projects 2) Bonds - Tax Exempt $21,185,000 E 1 $691,463 $691.463 2001 Tax Allocation US Bank Bonds to fund projects 3) Bonds -Tax Exempt $48,000,000 E $1,215,360 $1,215,360 2002 Tax Allocation US Bank Bonds to fund projects 4) Bonds -Tax Exempt $34,380,000 E $1,606,341 $1,606,341 2003 Tax Allocation US Bank Bonds to fund projects , 5) Bonds -Taxable $22,775,000 E $1,279,378 $1,279,378 2004 Tax Allocation US Bank Bonds to fund projects Bonds - Tax Exempt 6) $79,345,000 E $3,919,553 $3,919,553 2011 Tax Allocation US Bank Bonds to fund projects Bonds -Taxable 7) $28,850,000 E $1,085,884 $1,085,884 2011 Tax Allocation US Bank Bonds to fund projects Bonds -Taxable 8) $6,000.000 E $274,384 $274,384 Page 6 of 7 Total Source of I Outstanding - Payment ayments by month Project Name/Debt Debtor (See Obl' ation Payee Descrip0on Obligation Legend) Jul '12 A '12 Sept'12 Oct'12 Nov'12 Dec'12 Total Annual continuing Wildan Financial Preparation of Annual continuing disclosure Statements Services disclosure reports per Federal 9) regulations $250,000 E $10,000 $10,000 Bond holder fees US Bank Fees for holding administration and distribution of bond proceeds 10) $60,000 E $10,410 $1,530 $1,530 $13,470 Success or Agency City of La Ouinta Administrative Allowance provided - Administrative Budget as Successor by ABz1 26 (3%of total ROPS) Agency 11 $ 6,250,000 'D $64,052__L $64,059 $64,059 $64,059 $64,059 $64,059 $384,357 Grand Total for This Page - $74,469 1 $65,589 IMP8,1107 1 $ 74,059 1 $8059 1 $54,1159 1 $13,04a,345 Grand Total for PA 1 (Page 1) $35,000 Grand Total for PA 2 (Pages 3-5; not including $21M deposit into escrow account for Coral Mountain and $600K for Tone Nissan; both to be paid from bond proceeds) $1155,901 GRAND TOTAL - $13,231,246 NOTE: AN oustanding bond obligation figures are principal only 'Administrative Mlowance for this period calculated by Department of Finance in letter dated April 17, 2012 Low and Moderate Housing Fulls Bond Proceeds Reserve Balances Administrative Cost Allowance Redevebpmenl Properly TaY Trust Fundfrax Increment Page 7 of 7