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2012 10 16 SACITY AS SUCCESSOR ACIENCY TO THE LAQUINTA REPEVELOPMENTACIENCY 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, OCTOBER 16. 2012 AT 4:00 P.M. Beginning Resolution No. SA 2012-012 CALL TO ORDER ROLL CALL Agency Members: Evans, Franklin, Henderson, Osborne and Chairperson Adolph CLOSED SESSION - NONE PUBLIC COMMENT At this time, members of the public may address the Successor Agency on any matter not listed on the agenda. Please complete a "request to speak" form and limit your commen to three minutes. The Successor Agency values your comments; however in accordance with State law, no action shall be taken on any item not appearing on the agenda unless it is an emergency item authorized by.GC 54954.2(b). CONFIRMATION OF AGENDA APPROVAL OF MINUTES 1 . APPROVAL OF MINUTES OF OCTOBER 2, 2012 CONSENT CALENDAR NOTE: Consent Calendar items are routine in nature and can be approved by one motion. 1 APPROVAL OF DEMAND REGISTER DATED OCTOBER 16, 2012 CITY AS SUCCESSOR AGENCY TO.RDA 1 OCTOBER 16, 2012.9 001 2. APPROVAL OF AN ASSIGNMENT BETWEEN CP DEVELOPMENT LA RETIREMENT RESIDENCE, LP AND ASSUMPTION AGREEMENT QUINTA, LLC AND LA QUINTA 3. RECEIVE AND FILE TREASURER'S REPORT DATED AUGUST 31, 2012 4. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED AUGUST 31, 2012 AND INVESTMENT SUMMARY REPORT FOR THE QUARTER ENDING SEPTEMBER 30, 2012 5. ADOPTION OF A RESOLUTION APPROVING AMENDMENT NO. 7 TO THE DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN SUCCESSOR AGENCY TO LA QUINTA REDEVELOPMENT AGENCY AND CP DEVELOPMENT LA QUINTA, LLC I BUSINESS SESSION - NONE STUDY SESSION — NONE REPORTS AND INFORMATIONAL ITEMS 1 . OVERSIGHT BOARD MINUTES DATED AUGUST 8, 2012 ADJOURNMENT The next regular meeting of the City as Successor Agency to the La Quinta Redevelopment Agency will be held on November 6, 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, Agency Secretary 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 October 12, 2012. DATED: October 11, 2b 12 SM441-1 J' - --� VKA4AV SUSAN MAYSELS, Aancyllecretary Successor Agency to the La Quinta Redevelopment Agency CITY AS SUCCESSOR AGENCY TO RDA 2 OCTOBER 16, 2012o 002 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 Successor Agency, 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 Successor Agency during a 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 Successor Agency 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. 003 CITY AS SUCCESSOR AGENCY TO RDA 3 OCTOBER 16, 2012 MEETING DATE: October 16, 2012 ITEM TITLE: Approval of Demand Register Dated October 16, 2012 RECOMMENDED ACTION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PURLIC HEARING: It is recommended the Successor Agency of the La Quinta Redevelopment Agency: Receive and File the Demand Register Dated October 16, 2012 of which $150,245.00 Represents Successor Agency Expenditures as detailed below: Vendor: Account #: Amount: Purpose: RBF Consulting Inc 231-9001-702.32-07 $820.00 Project Area 1 Lance, Soll, & Lunghard 237-9001-702.32-13 $2,500.00 AB1484 Due Diligence Lance, Soll, & Lunghard 238-9002-702.32-13 $2,500.00 AB1484 Due Diligence Torre Nissan 417-9002-702.80-05 $144,425.00 Disbursement Request 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. "I Pursuant to Health and Safety Code Section 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 — 34190) and the value of assets transferred to it as Successor Agency for the dissolved La Quinta Redevelopment Agency. EXECUTIVE SUMMARY: None. FISCAL IMPACT: None. BACKGROUND/ANALYSIS: None. ALTERNATIVES: None. Respectfully submitted, Robbeyn Ord, Finance Director 005 Vefl-Tj2/HA/FA MEETING DATE: October 16, 2012 AGENDA CATEGORY: ITEM TITLE: Approval of an Assignment and BUSINESS SESSION: Assumption Agreement Between CP Development La Quinta, LLC and La Quinta Retirement Residence, L.P. CONSENT CALENDAR: 2- M11W&I 9:1.10] 0 PUBLIC HEARING: RECOMMENDED ACTION: Approve an Assignment and Assumption Agreement between CP Development La Quinta, LLC and La Quinta Retirement Residence, L.P. for property located on Seeley Drive within Centre Pointe, and authorize the Executive Director to execute the agreement. EXECUTIVE SUMMARY: La Quinta Retirement Residences, L.P. has purchased a 9.5 acre lot from CP Development La Quinta, LLC to develop a senior retirement community. The sale and development of this property requires the Successor Agency to grant its consent to assign all DDA and Development Agreement rights and obligations specific to this parcel to La Quinta Retirement Residence, L.P. This is accomplished via the Assignment and Assumption Agreement (Attachment 1). BACKGROUND/ANALYSIS: On December 18, 2003, the former La Quinta Redevelopment Agency entered into a Disposition and Development Agreement ("DDA") with CP Development La Quinta, LLC for the sale and development of 50 acres located at the southeast corner of Washington Street and Miles Avenue. CP Development La Quinta has developed what is now known as Centre Pointe, which includes a Homewood Suites Hotel, Applebee's Restaurant, Eisenhower Medical Center and 44 casitas units. 006 La Quinta Retirement Residence, L.P. purchased the 9.5 acre parcel that was originally slated for affordable housing. The new property owner and developer, Lenity Group, LLC, is proposing to develop a three-story retirement facility, four duplex cottage units, an assisted living facility, and a memory care facility. The project entitlements were approved by the Planning Commission on September 25, 2012; the Council will hold a public hearing on the project today. ALTERNATIVES: In order to facilitate the development of this parcel, the only option for the Successor Agency is to approve the Assignment and Assumption Agreement and authorize the Executive Director to executive the agreement. Respectfully submitted, Debbie Powell Economic Development/Housing Manager Attachment: 1 . Assignment and Assumption Agreement 007 ATTACHMENT 1 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of La Quinta P.O. Box 1504 La Quints, CA 92247 (Exernpi From Recording Fee per Gov't Code § 27383) ASSIGNMENT AND ASSUMPTION AGREEMENT This ASSIGNMENT AND ASSUMPTION AGREEMENT ("Assignment!') is entered into this _ day of . 2012, by and between CPDEVELOPMENT LAQUINTA, LLC, a California limited liability company ("Assignoe') and LAQUINTA RETIREMENT RESIDENCE LIMITED PARTNER- SHIP, a Washington limited liability company ("Assignee") with reference to the following: A. Assignee is the owner in fee simple of certain property located at the southeast comer of Miles Avenue and Washington Street in the City of La Quinta, California (Parcel B"). Parcel B is more particularly described on Exhibit "A" attached hereto and incorporated herein by this reference. B. Assignee acquired Parcel B from Assignor, on or about July 1, 2011, for the purpose of constructing thereon (i) a one hundred twenty-four (124) suite retirement community located in five (5) single -story duplex cottages, (ii) a seventy-two (72) suite assisted living community, and (iii) a thirty-two (32) bed memory care facility (collectively, the "Senior Living Facility.") C. Assignor originally acquired Parcel B, along with certain adjacent real property (collectively, the "Center Pointe Property"), from the former La Quinta Redevelopment Agency C'Ageucy") pursuant to the terms of that certain Disposition and Development Agreement dated on or about December 18, 2003 ("Original DDA"), as amended on or about October 28, 2004, on or about December 7, 2004, on or about November 2, 2005, on or about October 20, 2006,,on or about August 23, 2007, and on or about March 19, 2008 (collectively the "DDA Amendments"). The Original DDA, as modified by the DDA Amendments, is hereinafter referred to as the "DDN'. D. Concurrently with the execution of the Original DDA, the Agency and Assignor entered into that certain Development Agreement, which was recorded in the Official Records of the County Recorder for the County of Riverside C'Official Records") on January 5, 2004 as Instrument No. 2004-0005256, and amended by that certain Amendment No. I to Development Agreement executed on or about October 28, 2004 and recorded in the Official Records on November 8, 2004 as Instrument No. 2004- 0885063 that certain Amendment No. 2 to Development Agreement executed on or about November 17, 2005 and recorded in the Official Records on December 19, 2005 as M015610-0061 3112529.2 a09/20/12 EM Instrument No. 2005-1045418, and that certain Amendment No. 3 to Development Agreement executed on or about May 6, 2008 and recorded in the Official Records on June 4, 2008 as Instrument No. 2008-030353 (as amended, the "Development Agreement.") E. Pursuant to the terms of the DDA and the Development Agreement, the Center Pointe Property is to be used for a mixed use development project (the "Project'), with Parcel B designated for a residential development that includes an affordable housing component (the "Original Residential Component"). F. On June 28, 2011, the Governor signed Assembly Bill 26 CABxI 26") and Assembly Bill 27 ("ABxI 27") from the 2011-12 First Extraordinary Session of the California Legislature. ABxI 26 immediately suspended all redevelopment agency activities, except continued performance of "enforceable obligations," and set forth a process to dissolve redevelopment agencies and end redevelopment in California. ABxI 27 provided a "voluntary alternative redevelopment program," which would have allowed redevelopment agencies to remain in existence and continue redevelopment, if remittance payments were made to cover the State of California's budget shortfall for fiscal year 2011-12 and were made in subsequent fiscal years to cover State costs. A lawsuit was filed, challenging the constitutionality of both ABxI 26 and 27. The California Supreme Court upheld the constitutionality of ABxI 26, revising the effective dates of certain provisions, and struck down as unconstitutional ABxI 27. (California Redevelopment Assn. v. Matosantos (2011) 53 Cal.0 231 ("CRA Case'). ABxI 26 is chapter 5, Statutes 2011, First Extraordinary Session, which added Part 1.8 (suspension provisions) and Part 1.85 (dissolution provisions) of Division 24 of the Health and Safety Code. Under the CRA Case, all redevelopment agencies dissolved February 1, 2012. Pursuant to Health and Safety Code section 341710), added by Part 1.85 of Division 24, and City Council Resolution No. 2012-002, the City of La Quinta ffity") is the "successor agency" to the former La Quinta Redevelopment Agency. G. On June 27, 2012, the Governor signed Assembly Bill 1484 from the 2011-2012 Regular Session of the California Legislature ("AB 1484"), which established that successor agencies are separate legal entities from the entities that provide for their governance. As a result of AB 1484, the successor agency to the former Agency is now formally the "City as Successor Agency to the La Quinta Redevelopment Agency" (the "Successor Agency"). H. Concurrently with the execution of this Assignment, (i) the Successor Agency and Assignee are entering into that certain Amendment No. 7 to Disposition and Development Agreement C'DDA Amendmenf'), and (ii) the City and Assignee are entering into that certain Amendment No. 4 to Development Agreement (the "DA Amendment"). Pursuant to the DDA Amendment and DA Amendment (collectively, the "DDA/DA Amendments"), each of the DDA and Development Agreement will be modified to omit the Original Residential Component and add the Senior Living Facility. The effectiveness of the DDA/DA Amendments is conditioned on the execution and recordation of this Assignment, 98=15610,0061 3112529.2 aNW12 -2- � 1 009 1. Assignor now desires to transfer to Assignee all of Assignor's rights and responsibilities under the DDA and the Development Agreement to the extent that such rights and responsibilities relate to Parcel B and to the development of the Senior Living Facility. NOW, THEREFORE, in consideration of the foregoing Recitals, which are incorporated herein by this reference, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. Assignor hereby assigns to Assignee all of Assignor's rights and responsibilities under the terms of the DDA and the Development Agreement with respect to Parcel B and the Senior Living Facility from and after the "Effective Date" (as that term is defined in Section 4 below) of this Assignment (collectively, the "Assigned Rights and Obligations".) 2. Assignee hereby accepts the foregoing assignment of the Assigned Rights and Obligations, and agrees to be bound by the terms of the DDA and the Development Agreement with respect to Parcel B and the Senior Living Facility. 3. The parties hereto acknowledge and agree that Assignee shall not be responsible for any of the obligations of the DDA or the Development Agreement which arise from ownership of any portion of the Center Pointe Property which arise prior to the Effective Date hereof, or which arise from any portion of the Center Pointe Property other than Parcel B after the Effective Date hereof As such, a default by Assignor under either the DDA or the Development Agreement prior to the Effective Date hereof, or with respect to any portion of the Center Pointe Property other than Parcel B after the Effective Date hereof C'Assignor's Default") shall not be deemed a default by Assignee, and Assignor shall indemnify, defend and hold harmless Assignee from any and all losses, claims or liability, including without limitation reasonable attorneys' fees and costs, arising from an Assignor's Default. A default by Assignee under either the DDA or the Development Agreement with respect to Parcel B after the Effective Date hereof C'Assignee's Default") shall not be deemed a default by Assignor, and Assignee shall indemnify, defend and hold harmless Assignor from any and all tosses, claims or liability, ,including without limitation reasonable attorneys' fees and costs, arising from an Assignee's Default. 4. This Assignment shall be deemed effective upon the written consent to this Assignment by the City and the Successor Agency (herein referred to as the "Effective Date"). 5. Except as otherwise described in paragraph 4 above, the parties hereto each warrant and represent that they have taken all necessary corporate action to authorize the execution and performance of this Assignment and that the individuals executing this document on behalf of the parties are authorized to do so, and by doing so, create binding obligations as described herein of the party represented. 8VA15610-W61 3112529.2 aM/20/12 .3- 010 6. This Assignment shall be governed by the internal laws of the State of Califomia, without regard to conflict of law principles. 7. This Assignment may be executed in counterparts, each of which, when this Assignment has been signed by all the parties hereto, shall be deemed an original, and such counterparts shall constitute one and the same instrument. [End — Signature page follows] 98MI5610-0061 3112529.2 a09120112 -4- 4 . Oil WHEREFORE, the parties hereto have executed this Assignment on the date first written above. "Assignor" CP DEVELOPMENT LA QUINTA, LLC, a California limited liability company By: Oliphant Family Trust Its: Member By: — " U 4� (I Richard R. Oliphant Its: Trustee By: Oliphant Enterprises, Inc. Its: Manager By: Richard R. Oliphant Its: President "Assignee" LA QUINTA RETIREMENT RESIDENCE LIMITED PARTNERSHIP, a Washington limited partnership By: La Quinta GP LLC, a Washington limited liability company Its: General Partner By: Hawthorn Management Services Corp., a Washington corporation Its: Manager By: Barton G. Colson Its: President UM15610�M] 3112529.2 &Wr"112 -5- 012 State of California County of R) VeA On before me, Notary Public, me and fitle of the officer) personally appeared Ivi C111 6- Vd /r, r oui4— who proved to me on the basis of satisfactory evidence t6 be the personKwhose narneK )afaie subscribed to the within instrument, and acknowledged to me that he/sheAhe�, executed the same in hi&UeW4wk authorized capacity(ies), and that by his4teii0ifteir signature(s) on the instrument the person person(s) acted, executed the instrument. K, or I the entity upon behalf of which the I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS y It d official seal. GLA&DISIMPRENZ 'IT Commission # 1943564 Notary Riblic - California tur Ri" side County Signa e MX Comm. r0res Jul 9,2015 (seal) State of California County of On before me, Notary Public, (here insert name and title of the officer) personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrumen� and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Sign (seal) SMI5610-Ml 3112529.2 409M/12 -6- 013 CONSENT By execution below, the City hereby (i) consents to the foregoing Assignment, and (ii) releases CP from any further obligations under the DA with respect to Parcel B and the Senior Living Facility. CITY OF LA QUINTA, a California municipal corporation and charter city organized and existing under die laws of the State of California 2012 By: Frank Spevacek, City Manager rall"ZI-19 Susan Maysels, City Clerk APPROVED AS TO FORM: RUTAN & TUCKER, LLP M. Katherine Jenson, City Attorney By execution below, the Successor Agency hereby (i) consents to the foregoing Assignment, and (ii) releases CP from any further obligations under the DDA with respect to Parcel B and the Senior Living Facility. CITY AS SUCCESSOR AGENCY TO THE LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic Date: 2012 By: Frank Spevacek, Executive Director ATTEST: Susan Maysels, Successor Agency Secretary APPROVED AS TO FORM: RUTAN & TUCKER, LLP By: M. Katherine Jenson, Successor Agency Counsel 88=5610-0061 3112529.2 aO9/20112 77- 0141 EXHIBIT "A" LEGAL DESCRIPTION OF PARCEL B Real pmpedy In the City of La QLdnta, ODunty of Riverside, State of California, described as fbilows: PARCEL B AS SHOWN ON LOT LINE ADJUSTMENT NO. 2006-452 AS EVIDENCED BY MENT RECORDED APRL 19,2006 AS INSTRUMENT NO. 2DO6-0280726 OF OFFICIAL RECORDS, BEING MORE PARMLARLY DESCRIBED AS FOLLOWS: IN THE CrTY OF IA (MNTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA� PARCEL 8 TOGETHER WITH THAT PORTION OF PARCEL 7 OF PARCEL MAP NO. 31116, AS SHOWN BY MAP ON FILE IN BOOK 212, AT PAGES 60 THROUGH 66, INCLUSIVE, OF PARCEL MAPSF RIVERSIDE COUNTY RECORDS, BEING IN THE SOUTH HALF OF SECTION 19, TOWNSHIP 5 SMITH, RANGE 7 EAST� S.B.M., MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE MOST SOUTHERLY CORNER OF SAID PARCEL 8; THENCE ALONG THE SOUTHEASTERLY, EASTERLY AND NORTHERLY BOUNDARY LINES OF SAID PARCEL 8 THROUGH THE FOLLOWING FIVE (5) COURSES: (1) NORTH 430 56! 4gr' EAST, A DISTANCE OF 152.65 FEET; (2) THENCE NORTH 000 1Z IY'WEST� A DISTANCE OF 790.73 FEET, (3) THENCE SOUTH 890 47' 47- WEST, A DISTANCE OF 239.56 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE NORTHEASTERLY, HAVING.A RADIUS OF 80.00 FEEG (4) THENCE NORTHWESTERLY ALONG THE ARC OF SAID CURVF, THROUGH A CENTRAL ANGLE OF 450 2741"s AN ARC DISTANCE OF 63.48 FELT, (5) THENCE TANGENT TO SM CURVE NORTH 440 44F 32- WEST, A DISTANCE OF 91.61 FEET TO THE BEGINNING OF A NON -TANGENT' CURVE, CONCAVE NORTHWESTERLY, HAVING A RADIUS OF 440.00 FEEIrt A RADIAL UNE PASSM THROUGH SAID POINT SEARS SOUTH 490 W 3 7- EAST, THENCE SOUTHWESTERLY ALONG THE ARC OF SAID CURVE AND CONTINUING ALONG SAID NORTHERLY LINE OF PARCEL 8 AND ALONG THE NORTHERLY LINE OF SAID PARCEL 7, *THROUGH A CENTRAL ANGLE OF 236 54� 45", AN ARC DISTANCE OF 183.63 FEET TO THE BEGINNING OF A COMPOUND CURVE, CONCAVE NORTHWESTERLYj HAVING A RADIUS OF 840.00 FEET, A RADIAL LINE PASSING THROUGH SAID POINT BEARS SOUTH 250 11152- EAST; THENCE SOUrlHWESTERLY ALONG THE ARC OF SAID CURVE AND CONTINUING ALONG SAID NORVERLY LINE OF PARCEL 7, THROUGH A CENTRAL ANGLE OF 040 07 080, AN ARC DISTANCE OF 59.16 FEET TO THE MOST NORTHERLY NORTHWEST CORNER OF SAID PARCEL 7; 015 THENCE ALONG THE WESTERLY LINES OF SAID PARCEL 7 THROUGH THE FOLLOWING THREE (3) COURSES: (1) SOUTH 160 3T 14' EAST AND NON -TANGENT TO LAST SAID CURVE, AS DISTANCE OF 55.87 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE WESTERLY, HAVING A RADIUS OF 250.00 FEET, (2) THENCE SOUTHERLY ALONG T HE ARC OF SAID CURVE, THROUGH A CENTRAL. ANGLE OF 200 41'22", AN ARC DISTANCE OF 90.27 FEEr, (3) THENCE TANGENT TO SAID CURVE SOUTH 04c 07 Or WEST, A DISTANCE OF 333.46 FEET TO THE NORTHWESTERLY PROLONGATION OF THE SOUTHWESTERLY LINE OF SAID PARCEL 8, THENCE LEAVING SAID WESTERLY LINES OF PARCEL 7 AND ALONG SAID PROLONGATION AND SAID SOUTHWESTERLY LINE OF PARCEL 8, SOUTH 500,10F 13" EAST, A DISTANCE OF §2.88 FEET TO THE POINT OF BEGINNING. EXCEPTING THEREFROM AGENCY EXCEPTS AND RESERVES FROM THE CONVEYANCE HEREIN DESCRIBED ALL INTEREST OF THE AGENCY IN Ok GAS, HYDROCARBON SUBSTANICES AND MINERALS OF EVERY KIND AND CHARACTER LYING MORE THAN FIVE HUNDRED (500) FEEr BELOW THE SURFACE, TOGETHER WITH THE RIGHT TO DRILL INTO, THROUGH, AND To USE AND OCCUPY ALL PARTS OFTHE PROPERTY LYING MORE THAN FIVE HUNDRED (5W) FEET BELOW THE SURFACE THEROF FOR ANY AND ALL PURPOSES INCIDENTAL TO THE EXPLORATION FOR AND PRODUCTION OF Oft, GAS, HYDROCARBON SUBSTANCES OR MINERALS FROM SAID PROPERTY OR OTHER LANDS, BUT WITHOUT, HOWEVER, ANY RIGHT TO USE EITHER THE SURFACE OF THE PROPERTY OR ANY PDRTIONTHEROF WITHIN FIVE HUNDRED (500) FEET OF THE SURFACE FOR ANY PURPOSE OR PURPOSES WHATSOEVER, OR TO USE THE PROPERTY IN SUCH A MANNER AS M CREATE A DIS71JRBANCE TO THE USE OR ENJOYMENT OF THE PROPERTY, AS RESERVED IN THE DEED FROM LA QUINITA REDEVELOPMENT AGENCYt RECORDED DECEMBER 09,2004 AS INSTRUMENT NO, 04-979137. OF OFFICIAL RECORDS. APN* 60+63D-027-6 882/015610-0061 3112529.2 aO9/20/12 016 SEE SHEET 2 FOR ANNOTA71ON TABLES PARCEL 5 L�lr mr- SCALE: I." - 200' MSA 4D Sam Bw am U&N lh� emm BRA15610-0061 3112529.2 vO9/20112 ?<,-C/L 80- ACCEW DN V PARCEL. 'Aw 13.515 AC. PARCEL a PARCM 3 LM UNE TO BE .---DELCTM PAROEL q3w 9.451 AC. PARCEL 8 ��AwusTeD LOET LINE 401 UNE 'WrO NE LOT DELETED ryiu I PARCEL 7 SEE DETAIL 'A' ON \ AT UPP9R LEFT y UNE x Olt 64/54694 NSLJ�TWG, INC N & AS= M DUSTM LOT UK TO BE OU&M eMM %mum I EXWW LOT UK TO RE" RAN= UmAw m CA 9= NO ADJUVID LOT UNE KM 4 VAX (M-MMM FJ3rRl= AC= 511 1 017 4P Qu&rcv OF AGENDA CATEGORY: COUNCHJR(HA/HA MEETING DATE: October 16, 2012 BUSINESS SESSION: ITEM TITLE: Receive and File Transmittal of Treasurer's CONSENT CALENDAR: Reports as of August 31, 2012 STUDY SESSION: PUBLIC HEARING: RECOMMENDED ACTION: It is recommended the Successor Agency to the La Quinta Redevelopment Agency Board: Receive and file. PLEASE SEE RELATED BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA 018 OF AGENDA CATEGORY: CITYJL;4HA/FA MEETING DATE: October 16, 2012 BUSINESS SESSION: ITEM TITLE: Receive and File Transmittal o , f Revenue CONSENT CALENDAR: 4- and Expenditure Report dated August 31, 2012 and Investment Summary Report for the Quarter Ending STUDY SESSION: September 30, 2012 PUBLIC HEARING: RECOMMENDED ACTION: Receive and File EXECUTIVE SUMMARY: Monthly and year-to-date revenues and expenditures of the Successor Agency to the La Quinta Redevelopment Agency and Investment Summary Report for the Quarter Ending September 30, 2012. FISCAL IMPACT: None. BACKGROUND/ANALYSIS: Receive and File Transmittal of the August 31, 2012 Statements of Revenue and Expenditures for the Successor Agency to the La Quinta Redevelopment Agency and Investment Summary Report for the Quarter Ending September 30, 2012. ALTERNATIVES: None. Respectfully submitted, Robbeyn Bir& Finance Director Attachments: 1. Revenue and Expenditures Report for August 31, 2012 2. Investment Summary Report for the Quarter Ending September 30, 2012 019 A I I AUHIVILIM I 'I SUCCESSOR AGENCY REVENUE SUMMARY PROJECT AREA NO. I Admin (237) County of Riverside Pooled Cash Allocated Interest Non Allocated Interest Transfers In TOTAL PA I PROJECT AREA NO. 2 Admin (238) County of Riverside Pooled Cash Allocated Interest Non Allocated Interest Transfers In TOTAL PA 2 TOTAL PROJECT AREA NO. I Project (231) County of Riverside Pooled Cash Allocated Interest Non Allocated Interest Tmnsfers In TOTAL PA I PROJECT AREA NO. 2 Project (232) County of Riverside Pooled Cash Allomted Interest Non Allocated Interest Transfers In TOTAL PA 2 - ADMIN TOTAL SUCCESSOR AGENCY - PROGRAM TOTAL SUCCESSOR AGENCY 0710112012 - OW3112012 ADJUSTED REMAINING % BUDGET RECEIVED BUDGET RECEIVED 476,656.00 0.00 476.656.00 0�000% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0.000% 15,400�00 0.00 15,400.00 0.000% 492,056.00 0.00 492,056.00 0.000% 323,939.00 0.00 323,939.00 0.000% 0.00 0.00 0.00 0.000% 0�00 0.00 0.00 0.000% 19,500�00 0.00 19,500.00 0.000% 343,439.00 0.00 343,439.00 0.000% 835,495.00 0.00 835,495.00 0.000% 0.00 0.00 0.00 0,000% 0.00 0.00 0.00 0.000% 0�00 0.00 0.00 0.000% 15,400.00 0.00 15,400.00 0.000% 15,400.00 0.00 15,400.00 0.000% 192,876.00 0.00 192,876.00 0.000% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0,000% 19,500.00 0.00 19,500.00 0.000% 212,37&00 0 �00212 376.00 0.000% 227,776.00 0.00 227,776.00 0�000% 1,063,271.00 0.00 1,1363,271.00 0.000% 1 020 RA SUCCESSOR AGENCY EXPENDITURE SUMMARY ADJUSTED OSF31112 REMAINING BUDGET EXPENDITURES ENCUMBERED BUDGET PROJECT AREA NO. 1: PROJECT AREA No. 2: PROJECT AREA NO. 1: PROJECT AREA NO. 2: SERVICES 131,018.00 4,530.DO 0.00 126,488.00 REIMBURSEMENT TO GEN FUN[ W7,461.OD 51,244.00 0.00 256,217.00 TRANSFERS OUT 0.00 0.00 0.00 0.00 TOTAL PA I - Admin 438,41g.00 55.774.00 0.00 W2.705.W SERVICES 0.00 0.00 0.00 0.00 REIMBURSEMENT TO GEN FUN[ 151,439.00 25,240.00 0.00 128,199.00 TRANSFERS OUT 0.00 0.00 0.00 0.00 TOTAL PA 2 - Admin 151,439.UF- 20,240.00 0.00 126.199.00 TOTAL SUCCESSOR AGENCY - Admin 589,918.DO 81,014.00 50B,904. SERVICES 5,499,961.00 0.00 0.D0 5,499,961.00 BOND PRINCIPAL 0.00 0.00 O.OD om BONDINTEREST 0.00 0.00 O.OD 0�00 REIMBURSEMENT TO GEN FUN[ 0.00 0.00 0.00 0.00 TRANSFERS OUT 1540000 0.00 0.00 TOTAL PA I - Pmgmm 5,015:361!00 0.00 0-�w uls':V'm SERVICES 0.00 0.00 0.00 0.00 BOND PRINCIPAL BONDINTEREST 0.00 O.OD O.OD 0.00 REIMBURSEMENT TO GEN FUN[ 0.00 0.00 0.00 0.00 TRANSFERS OUT 212,376.00 0.00 TOTAL PA 2 - Progmm 212,376.00 0.00 2'!2':3'7'9'!0000 TOTAL SUCCESSOR AGENCY � Pmgmm b.tv'fulm 0.00 0.00 727.737.00 TOTAL SUCCESSOR AGENCY 6,317,655.00 81,014.00 0.00 021 SUCCESSOR AGENCY TO THE 0710112012 - 08/3112012 LA QUINTA REDEVELOPMENT AGENCY ADJUSTED REMAINING % REVENUE SUMMARY BUDGET RECEIVED BUDGET RECEIVED PROJECT AREA NO. 11, LOW/MODIERATE TAX FUND: County of Riverside 6,227,990.00 0.00 6,227,990.00 0.000% Allocated Interest 0.00 0.00 0.00 0.000% Non Allocated Interest 0.00 495.75 (495.75) 0.000% Miscellaneous revenue 0.00 0.00 0.00 0.000% Non Allocated Interest 0.00 0.00 0.00 O.ODO% Transfer In 0�00 0.00 0.00 0.000% TOTAL LOWIMOD TAX 6,227,990.00 49&75 6,227,494.25 0.010% DEBT SERVICE FUND: County of Riverside 10,273,472.00 0.00 10,273,472.00 0.000% Allocated Interest 0.00 0.00 0.00 0.000% Non Allocated Interest 0�00 136.66 (136,66) 0.000% Transfers In 0�00 0.00 0.00 0.000% TOTAL DEBT SERVICE 10,273,472.00 136.66 10,273,335.34 0�1100% CAPITAL IMPROVEMENT FUND Pooled Cash Allocated Interest 0.00 0.00 0.00 0.000% Non Allocated Interest 15,400.00 1,676.02 13,723.98 10.880% Developer Agreement Funding 0.00 0.00 0.00 0.000% Sale of Land proceeds 0.00 0.00 0.00 0.000% Rental Income 0.00 0�00 0.00 0.000% Litigation Proceeds 0.00 0.00 0.00 0.000% Transfers In 0.00 0.00 0.00 0.000% TOTAL CAPITAL IMPROVEMENT 15,400.00 1,676.02 13,723.98 10.880% 2011 TAXABLE HOUSING BOND FUND: (249) pooled Cash Allocated Interest 0.00 0.00 0.00 0.000% Non Allocated Interest 10,000.06- 3,953.27 6,046.73 39.530% Developer Agreement Funding 0.00 0.00 0.00 0.000% Sale of Land Proceeds 0.00 0.00 0.00 0.000% Rental Income 0.00 0.00 0.00 0�000% Litigation Proceeds 0.00 0.00 0.00 0-000% Transfers In 0.00 0.00 0.00 0.000% TOTAL 2011 TAXABLE HOUSING BOND 10,000.00 3,953.27 6,046.73 39.530% 022 13 SUCCESSOR AGENCY TO THE ADJUSTED 813112012 REMAINING LA QUINTA REDEVELOPMENT AGENCY BUDGET EXPENDITURES ENCUMBERED BUDGET EXPENDITURE SUMMARY PROJECT AREA NO. 1, LOWIMODERATE TAX FUND: DEBT SERVICE FUND: SERVICES 0.00 0.0D 0.00 0.00 BOND PRINCIPAL 2,071,650.00 0.00 0.00 2,071,650.00 BONDINTEREST 4,156,340.00 0.00 0.00 4.156,340.00 REIMBURSEMENT TO GEN FUNE 0.00 0.00 o.w 0.00 TRANSFERS OUT 471225200 1:61011314 ' 0.00 10231725 TOTAL LOWIMOD TAX 0 75 4 g:g 4!7 u.w --i� SERVICES 16,600.00 0.00 0.00 16'em.00 BOND PRINCIPAL 3,765,000.00 0.00 0.00 3,765,000.00 BONDINTEREST 6,491,872.00 0.00 0.00 6,491,872.00 CAPITAL IMPROVEMENT FUND: SERVICES 0.00 0.00 0.00 0.00 REIMBURSEMENT TO GEN FUNE 0.00 0.00 0.00 0.00 TRANSFERS OUT 920907200 72�1 0 ON &0' '!QL'7 . TOTAL CAPITAL IMPROVEMENT 9:209:0(1 2 m 0 9 .4 2 2011 TAXABLE HOUSING BOND(249) SERVICES 0.00 0.00 0.00 0.00 TRANSFERS OUT 2551450200 0.00 0.00 2551450200 TOTAL 2011 TAXABLE HOUSING BOND 2*!014!bG2t0 0.00 0.00 ---- EtTZta2-.W- 023 .�j SUCCESSOR AGENCY TO THE LA QUINTA REDEVELOPMENT AGENCY REVENUE SUMMARY PROJECT AREA NO. 2: LOWIMODERATE TAX FUND: County of Riverside Allocated Interest Non Allocated Interest Transfer In TOTAL LOWIMOD TAX 2004 LOWIMODERATE BOND FUND: Allocated Interest Home Sale Proceeds Non Allocated Interest TransferIn TOTAL LOWIMOD BOND DEBT SERVICE FUND: County of Riverside Allocated Interest Non Allocated Interest Interest Advance Proceeds Transfer In TOTAL DEBT SERVICE CAPITAL IMPROVEMENT FUND: Allocated Interest Non Allocated Interest Ivisc Revenue Sale of land Transfers In TOTAL CAPITAL IMPROVEMENT 2011 TAXABLE NON -HOUSING BOND FUND: (417) Pooled Cash Allocated Interest Non Allocated Interest Developer Agreement Funding Sale of Land Proceeds Rental Income Utigation Proceeds Transfers In TOTAL 2011 TAXABLE NON -HOUSING BOND 0710112012 - 0813112012 ADJUSTED REMAINING % BUDGET RECEIVED BUDGET RECEIVED 2,665,855.00 0.00 2.665,855.00 0.000% 0.00 0.00 0.00 0.000% 0.00 36.26 (36.26) 0.000% 0.00 0.00 0.00 0.000% 21665,855.00 �36.26 2685818.74 0.000% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0.000% 0.00 580.48. (580.48) 0.000% 0.00 0.00 0.00 0.000% 0.00 580.48 (580.48) 0.000% 941,946.00 0.00 941,946.00 0.000% 0.00 0.00 0.00 0.000% 0.00 145.26 (145.26) 0.000% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0.000% 941,946.00 145.26 941,800.74 0.020% 0.00 0.00 0.00 0.000% 19,500.00 0.00 19,500.00 0.000% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0.000% 19,500�00 0.00 19,500.00 0.000% 0.00 0.00 0.00 0.000% 0.00 274.00 (274.00) 0.000% 0.00 0.00 0.00 0,000% 0.00 0�00 0�00 0.000% 0.00 0.00 0�00 0�000% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0.000% 0�00 274�00 (274.DO) 0.000% -1t, i - 0 2 SUCCESSOR AGENCY TO THE ADJUSTED Sal/2012 REMAINING LA QUINTA REDEVELOPMENT AGENCY BUDGET EXPENDITURES ENCUMBERED BUDGET EXPENDITURE SUMMARY PROJECT AREA NO. 2: LOWIMODERATE TAX FUND: SERVICES 0.00 0.00 0.00 0.00 BOND PRINCIPAL 623,700.00 0.00 0.1)) 623.700.00 BONDINTEREST 2,042,15&00 0.1)) 0.00 2,042,155.00 REIMBURSEMENT TO GEN FUN[ 0.00 0.01) ODD 0.00 TRANSFERS OUT 1342973600 11�3122gl�Q 7 "oQ1, TOTAL LOWIMOD TAX 16:065:591m 13 3!1 ZKM 2,765 2004 LOWIMODERATE BOND FUND HOUSING PROGRAMS 0.00 0.00 0.00 0.00 LAND 0.00 0.00 0.00 0.00 TRANSFERS OUT 299769400 0.00 0.00 299769400 TOTAL LOWIMOD BOND 2!991!694!00 0.00 Z!997!694!00 DEBT SERVICE FUND: SERVICES 0.00 0.00 0.00 0.00 BOND PRINCIPAL 175,01)).00 0.00 0.00 175,ODO.00 BONDINTEREST 757,646.00 0.00 0.00 757,646.DD TRANSFERS OUT ODD 0.00 0.00 0.00 TOTAL DEBT SERVICE 932.646.59 ---------------- 0.00 932,W.W CAPITAL IMPROVEMENT FUND: SERVICES 0.00 0.00 0.00 0.00 CAPITAL 0.00 0.00 0.00 0.00 REIMBURSEMENT TO GEN FUN[ 0�00 0.00 O'Do 0.00 TRANSFERS OUT 19 5w 00 0.00 0! lgljg�l TOTAL CAPITAL IMPROVEMENT I Imoto 0 010D 1 - 2011 RDA 2 TAXABLE BOND FUND:(417) SERVICES 0.00 0.00 0.00 0.00 ECONOMIC DEVELOPMENT 753,649.00 370,246.00 0.00 383,403.00 TRANSFERS OUT 239978600 0.00 1 2 761gl!l ':T TOTAL RDA NO. 2 TAXABLE BOND 3:153!435!OD 1 U�Ml 2 z t:'71 unat 1 audw ��6 A I FACHMENT 2 E E E Z; 0 0 0 C� Mal N � zt > 0 Om m 8 g g 6 0 4,6 0 0 C3 0 0 0 0 > 0,,�c � � 0- O� 6dOOO-a ..... . 6 0 0000� 0 ��;5?--ZOzzzzzzzzOzwzo z z 2 2 2 2 LO . . . . m m m m m m m m 0 0 0 0 0 0 0 0 0 0 0 c 0 c c c c 0 1 S? Q 2. 2: i� 2. 0 0 0 0 �c 0 < 0 mom aocco c c c c a c c c c a c c c w w m m m m m m m w m m m w m m m Ia E s I I 83 0 E 0 E t E 0 ,Eg E 0 E E ca 5 0 m 0 E E 0 0 , '6 �_c w 0 Z- Z5 E E 0 E 2 '05 E -0 E Z 22 a3 E E ri 0 LO 026 8 -R-EPORTS-& INFO. ITEM NO. OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO LA QUINTA REDEVELOPMENT AGENCY MINUTES Regular Meeting WEDNESDAY, AUGUST 8, 2012 at 2:00 P.M. ROLL CALL - Present: Board Members Ellis, Marshall, Maysels, McDaniel, Nelson, Osborne and Chairperson Pefia Absent: Board Member McDaniel A M-otionwas _made 4y__Board Members Osborne/Maysels to excuse Board Member McDaniel; Motion carried unanimously CONFIRMATION OF AGENDA - Confirmed PUBLIC COMMENT Don Adolph, Mayor of the City of La Quinta, thanked the Board for their service and support on the Oversight Board. He said that the City is fortunate to have such a wonderful Board and he is proud of how the Board stepped up to the plate and is helping the City of La Quinta through the tough times we are currently facing. APPROVAL OF MINUTES 1. A motion was made by Board Members Maysels/Ellis to approve the minutes from the June 6, 2012 Oversight Board meeting as submitted. Motion carried 6 ayes, 0 nays, 1 absent. BUSINESS ITEMS 1. Adoption of a Resolution Approving a Recognized Obligation Payment Schedule of the Former La Quinta Redevelopment Agency for the Period of January 2013 through June 2013. Staff presented staff report. Chairperson Pefia suggested commas in the amounts on the ROPS to make sure there is no question regarding dollar amounts. 027 Staff indicated that $100,000 estimated for administrative allowance in the ROPS was not spent. Chairperson Pefia asked if that $100,000 goes to the State. Staff indicated the County would make the disbursement minus the $100,000. Board Member Osborne asked if, in the future, the $100,000 is a negative figure, would that amount be added to our property tax disbursement. Attorney Bill lhrke, Rutan & Tucker, for Kathy Jenson, Counsel for Successor Agency, indicated that the provisions in the law that govern the reconciliation process regarding the ROPS, seems to indicate that it could be a situation where you would be able to get more from the redevelopment property tax trust fund if you were short in the prior six month period. The statute reads as though that would be the case — whether or not the Department of Finance ("DOP) actually allows it or that the County Auditor - Controller actually has the funds to do it is another question. Therefore, the implementation may end up being different than what the statute seems to allow. The DOF may allow you to hold on to the money to pay future obligations when they become due in that next six month period. It remains to be seen but most likely the money will not be forwarded or will be directed by the Auditor -Controllers to be distributed to the other taxing entities. Board Member Maysels asked staff when the $6,900,000 would be distributed. Attorney lhrke indicated January 2, 2013 is the day the Successor Agency will physically receive the distribution. Board Member Maysels asked if the money for July to December, 2012 has been received. Staff indicated that the money was received in June and the amount required to be paid for debt service has been transmitted to US Bank to make the September 1, 2012 debt service payment. Frank Spevacek, City Manager, informed the Board that the debt service payments are due on September 1, 2012. When the former La Quinta Redevelopment Agency ("LQRDA") was active, it kept a debt service reserve fund — not bond funds but cash at the City because property taxes are distributed in January and April and are not distributed again until January of the following year. When there was supplemental property tax income coming in, it allowed for better flow through the year but as the recession hit and building and property sales stopped, monies were put in the debt service reserve fund to make sure the September debt service payments would be covered. The question is will there be enough property tax revenue left over from the disbursement in June 2013 to have funds available to make the September 2013 bond payments. Now that fund balances are being swept away, if there is not enough cash coming in, then Oversight Boards are being faced with the challenge of what to pay and what to default on. OVERSIGHT BOARD ACTION MINUTES 2 AUGUST 8, 2012 - 0 . 028 Board Member Osborne asked if the insurance policies were still in place on all the bonds. City Manager Spevacek stated that the insurance policies are in place provided that the insurance companies are still in place. Some of the companies that went bankrupt, if that occurred prior to the dissolution of redevelopment, redevelopment agencies were required to replace the policy with a debt service reserve. In the City's situation, our insurance policies are still all in place and the only bonds that are not insured of the LQRDA are those that were issued in 2011 — the housing bond as well as the Project Area No. 2 bond. Those were not insured because at that point in time, the bond insurance did not exist. All other bonds listed are insured and the policies are valid. Chairperson Pefia wanted to know if the City has set up a priority of what to pay and not to pay in case obligations cannot be met. City Manager Spevacek stated that has not been done yet, however, guidance from the law states the first thing that gets cut would be administrative allocations, second would be any third party obligations that may be less easy to enforce, third would be any taxing agency payments and the fourth would be bond payments. Currently, we are not fully expending the bond proceeds so those bond proceeds that are taxable may be used if necessary to back fill any shortfall. Chairperson Pefia asked what agency would be responsible to collect if there is a default on debt service payments. Attorney lhrke indicated most likely it would be the State. Board Member Osborne asked if the 2011 bonds were issued in respect to Coral Mountain project and is the remainder still in the bank. City Manager Spevacek stated that the bonds were not issued in relationship to Coral Mountain but for Washington Street Apartments ("WSA"). The bond proceeds that are being pledged over time are for the rehabilitation and improvements at WSA. The issue before the Board today are the tax-exempt bond proceeds left from 2004, there are severe limits on what those proceeds can be used for, visa via they need to be used on affordable housing. A portion of the 2011 taxable bonds are being pledged for WSA but funding will not occur until after June 2013. Board Member Maysels asked if the DOF will accept an amended ROPS since the January 2013,through June 2013 is being done so many months in advance. Attorney [hrke indicated that the statute provides for amending the ROPS however, the DOF stated in correspondence in June 2012 that they were done reviewing any further requested revisions to ROPS 1 and 2. If there are remaining disputes, it can be taken care of during the process on ROPS 3. The answer is yes, you can amend ROPS 3 but it comes down to how the law is administered by the State. OVERSIGHT BOARD ACTION MINUTES 3 AUGUST 8, 2012 ., 029 A motion was made by Marshall/Nelson to adopt Resolution No. OB 2012- 014 adopting a Resolution of the Oversight Board of the Successor Agency to La Quinta Redevelopment Agency Adopting a Recognized Obligation Payment Schedule for the Period January 2013 through June 2013 RESOLUTION NO. OB 2012-014 A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENGY TO LA QUINTA REDEVELOPMENT AGENCY 1) ADOPTING A RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD OF JANUARY 2013 THROUGH JUNE 2013; 2) APPROVING THE CONTINUED IMPLEMENTATION OF THE WASHINGTON STREET APARTMENTS REHABILITATION PROJECT, 3) APPROVING THE EXPENDITURE OF $3,006,360 IN 2004 TAX-EXEMPT HOUSING BOND PROCEEDS AND $15,523,220 OVER THE COURSE OF IMPLEMENTATION, AND $2,450,250 IN 2004 TAX- EXEMPT HOUSING BOND PROCEEDS DURING THE JANUARY — JUNE 2013 ROPS PERIOD, 4) CONFIRMING THAT THE HOUSING BOND PROCEEDS ARE HOUSING ASSETS THAT ARE TO BE TRANSFERRED TO THE LA QUINTA HOUSING AUTHORITY PURSUANT TO HEALTH & SAFETY CODE SECTION 34176(b) IN ACCORDANCE WITH THE ROPS SCHEDULE Motion carried 6 ayes, 0 nays, 1 absent. REPORTS AND INFORMATIONAL ITEMS: 1 . Summary of Redevelopment Agency Dissolution Budget Trailer Bill Staff presented staff report. Attorney [hrke explained the following revisions to the law under AB 1484 as follows: For purposes of the Oversight Board, it is important to remember the general role remains the same where the Board has a fiduciary responsibility to the holders of enforceable obligations and to the taxing entities. Immunities to the Board have been slightly changed Substantive changes to the law that will be brought before the Board will be how housing assets are going to be dealt with on a going forward basis. OVERSIGHT BOARD ACTION MINUTES 4 AUGUST 8, 2012 030 AB 1484 provides the Housing Authority to submit a list of housing assets to the DOF pursuant to the law, and if the DOF approves that housing list, then all those assets essentially get handed over to the Housing Authority for affordable housing purposes. The non -housing LQRDA real property was originally governed by a provision in AB 26 that would have required expedited liquidation. Those provisions have been suspended under AB 1484 for the purposes of dealing with a finding of completion - meaning due diligence review audits, which is an inventory of all assets of the LQRDA including housing and non -housing. The accountants are still waiting for further clarification on what they are supposed to be auditing. Once the audits are completed, the Successor Agency will review those for approval. The DOF will decide what remittance needs to be made by the Successor Agency to do a "true -up payment." If everything balances out and everyone agrees and that payment is made, the DOF will issue a finding of completion. Once there is a finding of completion, this allows the Successor Agency, along with the approval of the Oversight Board, to put together a property management plan. Property management plans will be a governing document as to how all non -housing redevelopment real property is to be dealt with in the future. Assets will be covered in the audit as well. Attorney Ihrke further explained that the due diligence audits have been broken down into an audit of the low and moderate income housing fund and an audit of everything else of the LQRDA. The audit of the housing fund needs to be done soon — supposed to be completed by October 1, 2012. The Oversight Board needs to have two public meetings to address that audit; one needs to be for public hearing and the second for actual approval, which can be no more than five business days after the first hearing. Once the audit is approved, it must be forwarded to the DOF by October 15, 2012. For all other assets subject to the later due diligence audit, which needs to be done in December, is the same concept. Concerning the ROPS, there have been significant changes by AB 1484 to codify the process that was used in previous ROPS. The deadlines have been moved up for approval process and the DOF has more time for review. The law allows a meet and confer process, meaning that the Successor Agency and DOF may need to have a meet and confer and depending on any disputes or anything that the DOF wishes to have modified, an amended ROPS may need to come back to the Board. Another change the ROPS procedure is that the County Auditor -Controller has a much more expanded role to the extent of being able to dispute what a particular item may be on a ROPS. Ultimately, the DOF would review that as well. OVERSIGHT BOARD ACTION MINUTES 5 AUGUST 8, 2012 031 Board Member Maysels inquired about the issue with CPAs/audit and timing of finalizing the audit by October 1, 2012 and how likely is that to happen on time. Board Member Osborne indicated that on August 7, 2012, he received notification from the State Board of Accountancy that the CPAs are asked not to sign any agreements yet because they are trying to work out the scope and procedures of the audits. City Manager Spevacek explained that in terms of land assets, the LQRDA land assets were primarily, if not almost exclusively, housing assets. The schedule that was put together by staff was sent to the DOF and that schedule can be used as the basis for the audit relating to what is needed to be delivered on October 1,2012 In terms of financial assets, on the housing side of the ledger, there are the bond proceeds, cash that is being dedicated to the Coral Mountain development and that cash has moved from the Successor Agency to the Housing Authority and by the end of this month, will be sitting in an escrow account with the financing group that put together the 4% tax credits for the Coral Mountain development. The only assets on the non -housing ledger that the LQRDA held were the museum for the City, the parking lot relating to the library and some odd landscape parcels associated with the Washington and Miles development with Homewood Suites. The LQRDA did not have any other land assets in its possession. In terms of non -land assets that the LQRDA had, those included roughly $9,000,000 of 2002 bond proceeds that were being reserved for SilverRock until the economy collapsed and then about $5,000,000 of cash that may have already been disbursed because it was used to pay for prior obligations that the LQRDA had. When talking about "land assets" La Quinta is different than other communities in that when redevelopment was eliminated, the only assets the LQRDA held were relating to housing and if the housing asset list is blessed by DOF, those will be removed and moved to the Housing Authority and what's left is the parking lot, a museum and some landscape parcels. Board Member Nelson asked if there are any assets that would be subject to the claw back. City Manager Spevacek stated that in 2011, prior to the adoption of AB 26 and prior to the subsequent legal challenges, the LQRDA repaid $40,000,000 of loans outstanding to the City general fund — those funds could be subject to claw back per AB 1484. The second aspect is that in 2011, prior to AB 26, the City obtained appraisals and purchased from the LQRDA at the market value in 2011, the public and private parcels at SilverRock, 9 acres of property on Hwy. 111 and a few other parcels. Then, in June of 2011, the City purchased properties in the Village area, about six or seven acres around La Quinta Park, between City Hall and Old Town as well as another property northwest of Old Town using LQRDA funds. So, those transactions could be subject to review. OVERSIGHT BOARD ACTION MINUTES 6 AUGUST 8, 201 Z.ib. �: 032 Chairperson Pefia asked if there have been any other cities affected by the claw back provisions. Attorney lhrke said he has not heard of any yet — he believes the State Controller's office has been holding back to see what the results are of the audits. He is not aware of any claw back prior to AB 1484 becoming law. ADJOURNMENT — 2:53 p.m. A motion was made by Board Members Maysels/Osborne to adjourn. Motion passed unanimously. Respectfully submitted, Lori Lafond Oversight Board Secretary OVERSIGHT BOARD ACTION MINUTES 7 AUGUST8,201 2 033