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2021- 31733 Project LQ, LLC & City - Lien Contract & Deed of TrustDOC # 2021-0201427 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO City of La Quinta 78-495 CaIle Tampico La Quinta, CA 92253 Attn: City Clerk 03/31 /2021 10:10 AM Fees: $0.00 Page 1 of 13 Recorded in Official Records County of Riverside Peter Aldana Assessor -County Clerk -Recorder —This document was electronically submitted to the County of Riverside for recording" Receipted by! MARIA #309 Space Above This Line for Recorder's Use (Exempt from Recording Fee per Gov't Code §6103 and §27383) LIEN CONTRACT AND DEED OF TRUST (Lien Contract as Security; Gov. Code Section 66499(a)(4)) THIS LIEN CONTRACT AND DEED OF TRUST ("Lien Contract's is entered into this 23 day of March 2021, by and between the CITY OF LA QUINTA, CALIFORNIA, a municipal corporation of the State of California ("City") and Project LQ, LLC, a California limited liability company ("Owner"). RECITALS A. Owner is the owner if fee of that certain unimproved real property located in the State of California, County of Riverside, City of La Quinta, more particularly described in the legal description attached hereto as EXHIBIT "A" and incorporated herein by this reference (the "Property"). B. A final subdivision map of Tract No. 31733 ("Original Tract Map" and "Tract," respectively) for the Property was approved by the City Council of the City of La Quinta ("City Council") on or about March 21, 2006, and subsequently fled with the Official Records of the Riverside County Recorder on April 20, 2006, in Book 401 pages 34-45 of said County; C. The Original Tract Map for the Property was amended by the Community Development Director at its Director's Hearing by that certain Amendment ("Amendment") filed with the Official Records of the Riverside County Recorder on or about July 5, 2007 in Book 423 pages 61-72 of said county (the Original Tract Map and the Amendment are collectively referred to as the "Final Map"). D. In connection with the acquisition of the Property, the Owner's predecessor -in - interest assumed those certain Subdivision Improvement Agreements (2), both dated July 5, 2007, and both as amended August 1, 2017 (the "Existing SIAs"), to complete certain tasks and construct certain on -site and off -site improvements as required by the Final Map and other entitlements applicable to the Property (collectively, the "Development Obligation(s)"). DOC #2021-0201427 Page 2 of 13 E. The City is authorized to accept the security proposed by Owner, known as a lien contract, under the provisions of Government Code Section 66499(a)(4). La Quinta Municipal Code Section 13.28.030, and Section I (E) of City Council Resolution No. 96-27 ("Resolution 96- 27"), and as provided for by those certain SECOND ASSIGNMENT AND AMENDMENT TO SUBDIVISION IMPROVEMENT AGREEMENTS (2) for both OFF -SITE IMPROVEMENTS and ON -SITE IMPROVEMENTS, both dated March 23 , 2021, and to which the form of this Lien Contract was attached (the "SIA Second Assignment/Amendments," and the Existing SIAs and SIA Second Assignment/Amendments are collectively referred to as the "SIAs" or "Subdivision Improvement Agreements"). F. In accordance with Government Code Section 66499(a)(4), La Quinta Municipal Code Sections 13.04.060 and 13.28.030, and Resolution 96-27, the City held a duly noticed public hearing and made the requisite findings and determinations to authorize the Owner to use this Lien Contract, and the secured interest in the Property perfected thereby, to serve as temporary security for the performance and completion of the Development Obligation(s) required pursuant to the Final Map and SIAs, as more particularly described in this Lien Contract NOW, THEREFORE, for good and valuable consideration, including the obligations herein and the trust herein created, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: Owner's Performance. a. Owner hereby grants to the City, in accordance with the terms and conditions of this Lien Contract, a first lien upon the Property, as security for the following obligations of Owner: (1) Construction of the improvements ("Improvements") specified in the Subdivision Improvement Agreements, in the estimated amount and for the purposes specified therein; provided, however, that Owner's obligation hereunder shall extend to the actual cost of construction of the Improvements, notwithstanding that such costs may exceed the estimate set forth therein; and (2) Payment of the fees or services ("Fees") required by the City in the amount required as a condition of approval of the Final Map. (3) All ofthe Developer Obligations and the obligations of Owner under this Lien Contract and under the Subdivision Improvement Agreements ("Obligations"). This lien secures said Improvements, Fees and Obligations (collectively, the "Secured Obligations"). b. Prior to obtaining any type of permit, including a grading or building permit, or commencing the installation and construction of any portion of the Improvements required by the Subdivision Improvement Agreements, whichever occurs first Owner shall deposit fees for inspections, tests and other related purposes,. and shall substitute payment and performance bonds E DOC #2021-0201427 Page 3 of 13 in amounts satisfactory to the City ("Suitable Future Bonds") in place of this Lien Contract. Owner shall make the deposits specified herein in the amounts prescribed for such purposes at the time the deposit is due. Owner also agrees to provide the Suitable Future Bonds in the amounts and for the purposes set forth in the Subdivision Improvement Agreements, except that the amounts shall be calculated using the estimated cost of the Improvement as of the time of the substitution of security, as ascertained by the City. C. Owner shall replace this Lien Contract with the Suitable Future Bonds on or before the third anniversary of the recordation of this Lien Contract. d. Owner's failure to replace this Lien Contract with the Suitable Future Bonds in violation of this Lien Contract shall be an event of default and shall entitle the City to any and all rights and remedies available to City at law or in equity_ e. In addition to any other rights and remedies available to City for Owner's failure to replace this Lien Contract with Suitable Future Bonds as provided herein, the City shall have the right to record Final Tract Map No. 37960-R, approved by the City Council on or about November 17, 2020, but held in abeyance for the allowance of the temporary substitute security perfected by this Lien Contract, whereby upon said recording of Final Tract Map No. 37960-R, the Property shall revert to acreage, and Final Tract Map No. 31733 shall terminate and be of no further force or effect. 2. Instrament Serves as Dull+ Acknowled-eed and Perfected DEED OF TRUST. For the purpose of securing payment and performance of the Secured Obligations, Owner (as "Trustorl hereby irrevocably and unconditionally grants, conveys, transfers and assigns to First American Title Company ("Trustee"), as trustee, in trust, WITH POWER OF SALE TOGETHER WITH THE RIGHT OF ENTRY AND POSSESSION, for the benefit and security of the City (as "beneficiary"), all present and fixture rights, titles, interests, estates, powers and privileges that Owner now has or may hereafter acquire in or to the Property; and said POWER OF SALE TOGETHER WITH RIGHT OF ENTRY AND POSSESSION expressly includes the power of sale of the real property, and all buildings and improvements thereon or that may be erected upon or made thereto, together with all hereditaments and appurtenances thereunto belonging, or in any wise appertaining, and the reservations, remainders, rents, issues, and profits thereof. Owner expressly intends that this Lien Contract create a secured interest in the Property for the benefit of City for the payment and performance obligations secured as identified herein, and this Lien Contract serves as a deed of trust under California law for purposes of creating and perfecting a secured interest in the Property as set forth herein. City's. Perfoznaance. Following the City's approval and receipt of the Suitable Future Bonds submitted by Owner pursuant to Paragraph 1 above and receipt of applicable Fees, the City shall release the Property from the provisions of this Lien Contract, and shall execute any necessary release to enable Owner or its transferee to clear the record of title of the Property so released of the lien herein imposed. DOC #2021-0201427 Page 4 of 13 4. Effect of Lien Contract. a. From the date of recordation of this Lien Contract, a lien shall attach to the Property which shall have the priority of a judgment lien in an amount necessary to secure and discharge all obligations contained in this Lien Contract and Subdivision Improvement Agreements, and any Fees. b. Unless written consent of the City is obtained, the Owner shall not convey, lien or encumber any portion of or interest in the Property covered by this Lien Contract until Suitable Future Bonds (or some other form of alternative security acceptable to the City) has been provided and this Lien Contract has been released. C. So long as this Lien Contract is utilized for security as described herein, offers of dedication for street purposes on the Property will not be accepted by the City. d. The City shall not have an obligation to subordinate its rights hereunder to any lender or encumbrancer unless substitute security in the form of the Suitable Future Bonds (or some other form of alternative security acceptable to the City) is secured by Owner. 5. Events of Default. Upon the occurrence of any one of the following events. Owner shall be deer ed in default hereunder: a. Failure by Owner to deposit fees for inspections, tests and other specific purposes or to substitute Suitable Future Bonds or other forms of security satisfactory to the City within the time allotted and as prescribed by this Lien Contract. b. Commencezncnt of any work on the Improvements by Owner, its agents or employees, prior to substitution of acceptable security, including, without limitation, Suitable Future Bonds, with the City in place of this Lien Contract. C. The appointment, pursuant to an order of a court of competent jurisdiction, of a trustee, receiver or liquidator of the Property or any part thereof, or of Owner. d. The filing by Owner of a petition in bankruptcy or for an arrangement or for reorganization pursuant to the Federal Bankruptcy Code or any similar law, federal or state, or the adjudication of Owner as a bankrupt or as insolvent by a decree of a court of competent jurisdiction, or the making of an assignment for the benefit of creditors, or the admission by Owner in writing of its inability to pay its debts generally as they become due, or the giving of consent by Owner to the appointment of a receiver or receivers of all or any part of its property, including the Property. e. The filing by any of the creditors of Owner or the reorganization of Owner pursuant to the Federal Banlcniptcy Code or any similar law, federal or state and the same is not discharged within ninety (90) days after the date of filing thereof. f Levy of any attachment or writ of execution against Owner and the Property whereby the Property is taken or occupied or attempted to be taken or occupied by someone other than Owner and such attachment or execution is not released within (60) days. 4 DOC #2021-0201427 Page 5 of 13 g. Sale of any lot or lots shown on the Final Map prior to release of the lien created by this Lien Contract, except as provided in Paragraph 4(b) above. h. Failure of Owner to pay the Fees described in Paragraph I (a)(2) above, at the time required. i. Breach by Owner of any other tern or condition of this Lien Contract, or Owner's failure to fully and faithfully discharge its obligations hereunder within the time specified herein. j. Failure to pay prior to delinquency any taxes, assessments, fees or other amounts the payment of which are secured by a lien against part or all of the Property. k. Failure of Owner to maintain liability insurance in the amount of at least $2,000,000.00 per occurrence and in the aggregate on the Property naming the City as an additional insured. 1. The occurrence of any waste, violation of an ordinance, violation of a condition of approval or nuisance on the Property which is not cured by Owner within thirty (30) days following written notice from the City. in. The breach or violation of any other subdivision improvement agreement, or lien contract between the City and Owner beyond any applicable notice and cure period. All references to Owner in this Paragraph 5 shall be deemed to include Owner's successors, assignees and transferees. 6. Cit 's Remedies. Upon the occurrence :af any of the events described in Paragraph 5 above the City -may, at -its o tion declare all obligations, amounts and indebtedness secured hereby hYdnediatel due and payable without any pgg�sentm6nt,demand rotest. or notice.•and take one or more of the actions below: a. Pursue any or all of the remedies provided in the Subdivision Improvement Agreements; b. Commence and maintain an action or actions to foreclose this lien by appropriate action in court or as provided by law for the non judicial foreclosure of mortgages or deeds of trust under power of sale pursuant to California Civil Code Sections 2924, 2924(b) and 2924(c), and Owner agrees that the amount of said lien shalt include attorneys' fees as provided in Paragraph 7(b) below. CITY will deposit with TRUSTEE this Lien Contract, certified copies of the Subdivision Improvement Agreements, and any receipts and evidence, of expenditures made and secured as TRUSTEE may require. If notice of default has been given as then required by- law, and after lapse of the time that may then be required by law, after recordation of -the notice of default, TRUSTEE, without demand on OWNER, will, after notice of sale having been given as required by law, sell the Property at the time and place of sale fixed by it in the notice of sale, either as a whole or in separate parcels as TRUSTEE determines, and in any order that it may determine, at public auction to the highest bidder. TRUSTEE may postpone sale of all or any portion of the Property by public announcement at the time and place of sale, and from time to time after that may postpone the sale by public announcement at the time fixed by the preceding postponement, and without further notice make the sale at the time fixed by the last 5 DCC #2021-0201427 Page 6 of 13 postponement; or TRUSTEE may, in its discretion, give a new notice of sale. CITY may rescind any notice of default at any time before TRUSTEE's sale by executing a notice of rescission and recording it. The recordation of the notice will constitute a cancellation of any prior declaration of default and demand for sale and of any acceleration of maturity of obligations affected by any prior declaration or notice of default. The exercise by CITY of the right of rescission will not constitute a waiver of any default then existing or subsequently occurring, or impair the right of CITY to execute other declarations of default and demand for sale, or notices of default and of election to cause the Property to be sold, nor otherwise affect the Lien Contract, the Subdivision Improvement Agreements, or any of the rights, obligations, or remedies of CITY or TRUSTEE. After sale, TRUSTEE will deliver to the purchaser its deed conveying the property sold, but without any covenant or warranty, express or implied. The recitals in the deed of any matters or facts will be conclusive proof of their truthfulness. Any Person, including Owner, TRUSTEE, or CITY, may purchase at that sale. If allowed by law, CITY, if it is the purchaser, may turn in the Lien Contract at the amount owing on it toward payment of the purchase price (or for endorsement of the purchase price as a payment if the amount owing exceeds the purchase price). TRUSTEE, upon the sale, will make (without any covenant or warranty, express or implied), execute and, after due payment made, deliver to a purchaser and its heirs or assigns a deed or other record of interest, as the case may be, to the Property sold, which will convey to the purchaser all the title and interest of Owner in the Property and will apply the proceeds of the sale in payment first, of the expenses of the sale together with the expenses of the trustee, including, without limitation, attorney fees, that will become due on any default made by OWNER, and also any sums that TRUSTEE or CITY have paid for procuring a search of the title to the Property subsequent to the execution of this Lien Contract; and second, of the Secured Obligations then remaining unpaid. TRUSTEE will pay the balance or surplus of the proceeds of sale, if any, to OWNER and its successors or assigns as its interests may appear; c. Cornmence and maintain an action or actions in any court of competent jurisdiction to foreclose this instrument as a mortgage or to obtain specific enforcement of the covenants of Owner hereunder, and owner agrees that such covenants shall be specifically enforceable by injunction or any other appropriate equitable remedy and that for the purposes of any suit brought under this subparagraph, Owner waives the defense of latches and any applicable statute of limitations; d. Estimate the cost of the work required to complete the Improvements which estimate shall be deemed a debt and obligation in a liquidated sum of Owner, and judicially or non judicialIy foreclose said lien in said amount; and e. Pursue any other remedy, legal or equitable including but not limited to those for the foreclosure of a lien, and Owner, and any of its successors, assignees and transferees, shall pay reasonable attorneys' fees as a cost in said proceedings. 7. General Provisions. a. Recordation. This Lien Contract shall be recorded by the City with the Recorder's Office of the County of Riverside immediately following execution of this Lien Contract by (1) all parties hereto, and (2) all parties having any record title interest in the subject real property, pursuant to Government Code Section 66436(a), acknowledging subordination of their interests to this Lien Contract. 6 DOC #2021-0201427 Page 7 of 13 b, Aitornevs' Tees. The City shall be entitled to reasonable attorneys' fees, paralegal fees, and other charges, expenses and costs incurred in enforcing its rights under this Lien Contract. C. Contisi ency. This Lien Contract shall not take effect until it has been approved by the City in accordance with law and recorded. d. Entire Agreement. This Lien Contract together with all attachments and other agreements expressly referred to herein, constitutes the entire agreement between the parties with respect to the subject matter contained herein. All prior or contemporaneous agreements, understandings, representations, warranties and statements, oral or written, are superseded. e. Further Assurances. The parties agree to perform such further acts and to execute and deliver such additional documents and instruments as may be reasonably required in order to carry out the provisions of this Lien Contract and the intentions of the parties. f. Govemim Law. This Lien Contract shall be governed, interpreted, construed and enforced in accordance with the laws of the State of Califbmr is without regard to conflict of law principles. g. Headings. Except when their terms and conditions are substantive to this Lien Contract, the captions and section headings used in this Lien Contract are inserted for convenience of reference only and are not intended to define, limit or affect the construction or interpretation of any term or provision hereof. h. Modification. WaNer. No modification, waiver, amendment or discharge of this Lien Contract shall be valid unless the same is in writing and signed by all parties. i. No Other Inducement. The making, execution and delivery of this Lien Contract by the parties hereto has been induced by no representations, statements, warranties or agreements other than those expressed herein. j. Sevefabitijy If any term, provision, covenant or condition of this Lien Contract is held to be invalid, void or otherwise unenforceable, to any extent, by any court of competent jurisdiction, the remainder of this Lien Contract shall not be affected thereby, and each term, provision, covenant or condition of this Lien Contract shall be valid. and enforceable to the fullest extent permitted by law. k. Indemnity. If the City or the Trustee is made a party to or is threatened with any litigation concerning this Lien Contract, the Subdivision Improvement Agreements, or the Property, or any part thereof or interest therein, or the actions or omissions of Owner on the Property, then Owner shall indemnify, defend and hold harmless the City and the Trustee (and their respective officials, officers, directors, employees, contractors, accountants, attorneys, and agents) for, from and against all liability by reason of said threat and/or litigation, including reasonable attorneys' fees and expenses incurred by the City as a result of any such threat and/or litigation, whether or not any such threat and/or litigation is prosecuted to judgment; provided, however, that the indemnification to be provided by Owner to the City pursuant to the terns of this paragraph shall not be applicable where the aforementioned liability, claint, suit, or action, is the result of the sole negligence or sole willful misconduct of the City. The City or the Trustee 7 DCC #2021-0201427 Page 0 of 13 may employ an attorney or attorneys to protect its. rights hereunder, and in the event of such employment following any breach of the foregoing obligation by Owner, Owner shall pay the City and the Trustee reasonable attorneys' fees and expenses incurred by the City or the' Trustee, whether or not an action is actually commenced against Owner or Trustee by reason of its breach. 1. Execution in Counterparts. This Lien Contract may be executed in counterparts, each of which shall be deemed an original, but which together shall constitute a single agreement. jsignatures on next page] 8 DCC #2021-0201427 Page 9 of 13 IN WITNESS WHEREOF, the Parties have caused this instrument to be executed as of the day and year first written above. "CITY" CITY OF LA QUINTA, a municipal corporation of the State of California J -n-mewillen, City Manager ATTEST: Monika Radeva, ity Clerk, City of La Quinta APPROVED AS TO FORM: William H. Ihrke, City Attorney, City of La Quinta OWNER Project LQ, LLC, a California limited liability company By: Paydar Properties, Inc., a California corporation, its Manager Hy: SIGNED IN COUNTERPART Reza Paydar, its President I DOC #2021-0201427 Page 10 of 13 IN WITNESS WHEREOF, the Parties have caused this instrument to be executed as of the day and year first written above. "CITY" CITY OF LA QUINTA, a municipal corporation of the State of California SIGNED IN COUNTERPART Jon McMillen, City Manager ATTEST: SIGNED IN COUNTERPART Monika Radeva, City Clerk, City of La Quinta APPROVED AS TO FORM: SIGNED IN COUNTERPART William H. Ihrke, City Attorney, City of La Quinta OWNER Project LQ, LLC, a California limited liability company By: Paydar Properties, Inc., a California corporation, its Manager By: _ Reza : ; '1 ut- 0 DCC #2021-0201427 Page 11 of 13 NOTARY ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed .the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California } County of Riverside } On March 31, 2021 before me, MONIKA RADEVA, Notary Public, personally appeared JON McMILLEN who proved to me on the basis ;of satisfactory evidence to be the persons} whose names} is/are subscribed to the within instrument, and acknowledged to me that he/she/they executed the same in his/hegtheir authorized capacity{i�, and that by his/ e signatures} on the instrument the persons} or the entity upon behalf of which the persons) 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. M091KA RAOEVA Notary pualic - CaiHomla 41,. lde County _ CommlWon / 2334260 Signature: "Y�M EX°"MW2 2024 (notary seal) DOCUMENT: Lien Contract and Deed of Trust, dated March 23, 2021, by and between the City of La Quinta and Project LQ, LLC Second Assignment and Amendment to Subdivision Improvement Agreement; Amended Tract Map No. 31733 Project Name: Bellasara - ©OC #2021-0201427 Page 12 of 13 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA } COUNTY OF4WERfffbE 5Q�h 01 cg Q ) on hbnj d MI , before m , _I%DW Y] ^_, Notary Public, personally appeared ' Rid, Vo dar who proved to me on the basis of satisfactory evidence to be the personal whose narneK Om subscribed, to the within instrument and acknowledged to me that executed the same in XDQwAheir authorized capacity(o, and that by �ir sigmature on the instrument the person or the entity upon behalf .ofwhich the personDq 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. Cart a No. ZHI367 NOTARY PUBLIC - CRLIFQRN rne: 30 DISGO COUNTY No ary Public 10 DOC #2021-0201427 Page 13 of 13 EXHIBIT "A" Legal Description of the Real Property LOTS 1 THROUGH 125, INCLUSIVE, AND LETTER LOTS "A" THROUGH "O", INCLUSIVE, " Q " THROUGH "CC", INCLUSIVE, OF AMENDED TRACT NO. 31733, IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 423 PAGES 61 THROUGH 72, INCLUSIVE OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 764-750-001 THROUGH 764-750-058 AND 764-750-060 THROUGH 764-750-069 AND 764-750-071 AND' 764-760-001 THROUGH 764-760-067 AND 764-760-071 THROUGH 764- 760-076 AND 764-760-078 THROUGH 764-760-082 City of La Quinta DIRECTOR’S HEARING: MARCH 23, 2021 STAFF REPORT AGENDA TITLE: ADOPT A RESOLUTION TO APPROVE AMENDED FINAL TRACT MAP 2021-0002 (TRACT MAP 31733 AMENDMENT) TO REVISE CONDITIONS OF APPROVAL REGARDING BOND REQUIREMENTS; APPLICANT: PROJECT LQ, LLC; PROJECT NAME: BELLASARA; CEQA: A MITIGATED NEGATIVE DECLARATION WAS ADOPTED FOR THIS PROJECT UNDER ENVIRONMENTAL ASSESSMENT 2003-493; LOCATION: NORTHEAST CORNER OF AVENUE 61 AND MONROE STREET APPLICANT/OWNER: PROJECT LQ, LLC REQUEST: AMEND FINAL TRACT MAP 31733 TO CHANGE CONDITIONS OF APPROVAL REGARDING BOND REQUIREMENTS CEQA: A MITIGATED NEGATIVE DECLARATION WAS ADOPTED FOR THIS PROJECT UNDER ENVIRONMENTAL ASSESSMENT 2003-493 LOCATION: NORTHEAST CORNER OF AVENUE 61 AND MONROE ST LEGAL: APN: 764-750-001 THROUGH 069, 764-760-011 THROUGH 077 RECOMMENDATION Adopt a resolution to approve Amended Final Tract Map 31733 (AFTM 2021-0002) and find the project consistent with Environmental Assessment 2003-493. EXECUTIVE SUMMARY • Tract Map 31733 was approved in 2006 and subsequently amended in 2007 for development as a single-family residential development (Attachment 1). • The owner is requesting changes to the conditions of approval for the map regarding bond requirements. No changes to the actual map configuration are proposed as part of this amendment. BACKGROUND/ANALYSIS Final Tract Map 31733 was approved in 2006 as the 33.88-acre southern half of a single-family residential project, located on the northeast corner of Avenue 61 and Monroe Street (Attachment 1). This map was amended in 2007 (Attachment 2). The northern half of the project was approved under Tract Map 31732. The Applicant/Owner made a request to modify the conditions of approval regarding PUBLIC HEARING NO. 2 29 ATTACHMENT 1 36 ATTACHMENT 2 37 38 39 40 41 42 43 44 45 46 47 48 ATTACHMENT 3 49 50 51 52 the bond requirements for the final map. After discussion between the Applicant and City of La Quinta City Attorney, a condition is proposed to be added which would result in executing a lien contract as a substitute for payment and performance bonds. The lien contract would serve as the substitute security for completion of on- and off-site improvements required under the project’s subdivision improvement agreement for a maximum three (3) year period. Prior to the issuance of any permit for the improvements required under the subdivision improvement agreement, the owner shall procure and post for the benefit of the City the payment/performance bonds required. If the owner fails to replace the lien contract with the payment/performance bonds at the end of the three (3) year period, the City may record the pending Final Tract Map No. 37960-R, providing for reversion to acreage of project site (Attachment 3). Final Tract Map No. 37960-R was conditionally approved by the City Council on November 17, 2020 for reversion to acreage purposes. AGENCY AND PUBLIC REVIEW Public Agency Review This request was sent to all applicable City departments and outside agencies, including the City’s Public Works Department and City Attorney. The City Engineer and City Attorney have reviewed and approved of the proposal, subject to the Conditions of Approval. Public Notice This project was advertised in The Desert Sun newspaper on March 13, 2021 and mailed to all property owners within 500 feet of the site. To date, no comments have been received. ENVIRONMENTAL REVIEW A Mitigated Negative Declaration was adopted by the City of La Quinta City Council on January 20, 2004 under Environmental Assessment 2003-493. The Design and Development Department has determined that the proposed project with this previously approved project, as no changes to the map itself are proposed. Report prepared by: Carlos Flores, Senior Planner Report reviewed by: Cheri Flores, Planning Manager Attachments: 1. Vicinity Map 2. Tract Map 31733 3. Tract Map 37960-R 30