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1983: RDA area 1 - Redevelopment Plan - Proposed Oct. 1983KatzHollis Ll RD REPORT TO LA QUINTA CITY COUNCIL on the PROPOSED REDEVELOPMENT PLAN for the LA QUINTA REDEVELOPMENT PROJECT Prepared by KATZ, HOLLIS, COREN 6 ASSOCIATES, INC. for the LA QUINTA REDEVELOPMENT AGENCY October, 1983 111483 MMAAR10 Katz ®llls TABLE OF CONTENTS PAGE INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . 1 PART I. REASONS FOR SELECTION OF PROTECT AREA . . . . . . . I-1 II. DESCRIPTION OF PHYSICAL, SOCIAL AND ECONOMIC CONDITIONS EXISTING IN PROTECT AREA . . . . II-1 A. Existing Physical Conditions . . . . . . . . . II-1 1. Project Location . . . . . . . . . . . . . II-1 2. Land Uses and Acreages . . . . . . . . . . II-1 i' 3. Buildings and Structures . . . . . . . . . II-2 a. Age and Deterioration . . . . . . . . II-3 b. Defective Design and Character of Physical Construction . . . . . . . II-3 c. Mixed Character . . . . . . . . . . . II-4 d. Inadequate Sanitation . . . . . . . . II-4 4. Properties . . . . . . . . . . . . . . . . II-5 a. Lots (Parcels) Subject ito Flooding . . . . . . . . . . . . . II-5 b. Inadequate Public Improvements, Facilities and Utilities . . . . . . . II-7 1) Flood Control Facilities Deficiencies . . . . . . . . . . . II-7 2) Inadequate Street System . . . . . II-8 l3) Sever and Water System Defiencies . . . . . . . . . . . . II-8 4) other Deficiencies . . . . . . . . 1i-8 B. Existing Social Conditions . . . . . . .. . . . II-9 1. Project Area Population, Income and Housing . . . II-9 2. Project Area Crime • • . . . . • . . • . • II-10 C. Existing Economic Conditions . . . . . . . . . II-10 1. Project Area Businesses . . . . . . . . . II-10 2. Economic Dislocation and Disuse from Faulty Planning . . . . . . . . II-11 i 3. Cost of Public Services vs Tax Revenues Available . . . . . . . . . . . . II-11 4. Prevalence of Economic Maladjustment . . . II-12 (i) lu KatzHoffls PART PAGE III. PROPOSED METHOD OF FINANCING REDEVELOPMENT OF PROJECT AREA . . . . . . . . . . . . . . . . . . III-1 A. General Financing Methods Available to Agency . . . . . . . . . . . . . . . . . . . III-1 B. Tax Increment Financing Method. . . . . . . . . III-1 C. Estimated Project Costs . . . . . . . . . . . . III-3 D. Proposed Financing Method . . . . . . . . . . . III-3 E. Tax Increment Limitations and Requirements . . III-4 IV. PLAN AND METHOD OF RELOCATION . . . . . . . . . . . IV-1 A. Minimal Agency Displacement Anticipated . . . . IV-1 B. Relocation in the Event of Agency Displacement . . . . . . . . . . . . . . . . . IV-1 C. Rules and Regulations . . . . . . . . . . . . . IV-2 D. Agency Determinations and Assurances . . . . . IV-2 E. Replacement Housing Plan . . . . . . . . . . . IV-4 F. Relocation Assistance Advisory Program and Assurance of Comparable Replacement Housing IV-5 1. Administrative Organization . . . . . . . IV-5 a. Responsible Agency . . . . . . . . . . IV-5 b. Functions . . . . . . . . . . . . . . Iv-5 2. Relocation Office . . . . . . . . . . . . IV-7 3. Information Program . . . . . . . . . . . IV-7 4. Relocation Record . . . . . . . . . . . . IV-8 5. Relocation Resources Survey . . . . . . . IV-8 6. Relocation Payments . . . . . . . . . . . IV-8 7. Temporary Moves . . . . . . . . . . . . . IV-8 8. Last Resort Housing . . . . . . . . . . . IV-8 9. Grievance Procedures . . . . . . . . . . . IV-9 10. Relocation Appeals Board . . . . . . . . . IV-9 V. ANALYSIS OF PRELIMINARY PLAN . . . . . . . . . . . . V-1 VI. REPORT AND RECOMMENDATIONS OF PLANNING COMMISSION, AND REPORT REQUIRED BY SECTION 64502 OF GOVERNMENT CODE. . . . . . . . . . . . . . . . . . . . . . . . VI-1 Ll Katz®ills PART PAGE VII. RECORD OF MEETINGS WITH PROTECT AREA OWNERS, RESIDENTS, COMMUNITY ORGANIZATIONS AND OTHERS . . . VII-1 A. No Project Area Committee Formed for Project . VII-1 B. Consultations with Residents, Community organ- izations and Others . . . . . . . . . . . . . . VII-1 VIII. REPORT REQUIRED BY SECTION 21151 OF PUBLIC RESOURCES CODE (PROJECT ENVIRONMENTAL IMPACT REPORT) VIII-1 IX. REPORT OF COUNTY FISCAL OFFICER . . . . . . . . . . IX-1 X. REPORT OF FISCAL REVIEW COMMITTEE . . . . . . . . . X-1 XI. NEIGHBORHOOD IMPACT REPORT . . . . . . . . . . . . . XI-1 A. Impact on Residents in Project Area and Surrounding Area . . . . . . . . . . . . . . . XI-1 1. Relocation, Traffic Circulation, Environmental Quality and Community Facilities and Services . . . . . . . . . XI-1 2. School Population and Quality of Education XI-2 3. Property Assessments and Taxes . . . . . . XI-3 B. Relocation and Low and Moderate Income Housing XI-3 1. Housing Units to be Destroyed or Removed XI-3 2. Projected Residential Displacement . . . . XI-4 3. Number and Location of Replacement Housing XI-4 4. Number and Location of Low and Moderate Income Housing Planned, Other than Replace- ment Housing . . . . . . . . . . . . . . . XI-4 5. Financing Method for Replacement Housing Requirements . . . . . . . . . . . . . XI-5 6. Timetable for Provision of Relocation and Housing Objectives . . . . . . . . . . . . XI-5 XII. ANALYSIS OF REPORT OF COUNTY FISCAL OFFICER AND SUMMARY OF CONSULTATIONS WITH AFFECTED TAXING AGENCIES . . . . . . . . . . . . . . . . . . . . XII-1 A. Analysis of Report of County Fiscal Officer . . XII-1 1. Assessed Valuation of Project Area Property XII-1 2. First Year Taxes Available to Agency . . . XII-1 r] El KatzHollis PART XII (con't) 3. Property Tax Revenues Derived from Project Area . . . . . . . . . 4. Assessed Valuation Trend . . . . B. Summary of Consultations with Affected Taxing Agencies . . . . . . . . . . . . . . . . . . . . IO PAGE XII-2 XII-3 XII-1 FOLLOWING PAGE I-1 La Quinta Redevelopment Project Area . . . . . . . . I-1 II-1 Topographic Map . . . . . . . . . . . . . . . . . . II-2 II-2 Flood Insurance Rate Map Designations . . . . . . . II-6 II-3 La Quinta Subdivision . . . . . . . . . . . . . . . II-11 TABLES II-1 Land Uses and Estimated Acreages . . . . . . . . . . II-2 II-2 Dwellings and Dwelling Units Within Project Area . . II-3 II-3 Water System Deficiencies . . . . . . . . . . . . . II-8 II-4 Estimated Project Population . . . . . . . . . . . . II-9 II-5 Reported Crime Statistics for La Quinta . . . . . . II-10 III-1 Proposed Public Improvements and Facilities Projects III-3 III-2 Estimated Project Costs . . . . . . . . . . . . . . III-3 XII-1 Base Year (1983-84) Full Cash Values of Project Area . . . . . . . . . . . . . . . . . . . . . . . . XII-1 XII-2 Comparison of 1983-84 Project Area Revenue to Taxing Agency Total 1983-84 Revenues . . . . . . . . XII-2 (iv) LI. 11 Katz®llis REPORT TO CITY COUNCIL ON THE PROPOSED REDEVELOPMENT PLAN FOR THE LA QUINTA REDEVELOPMENT PROTECT INTRODUCTION This Report to the City Council ( "City Council") of the City of La Quinta ("City") on the proposed Redevelopment Plan ("Redevelopment Plan") for the La Quints. Redevelopment Project ("Project"), has been prepared for the La Quints. Redevelopment Agency ("Agency") pursuant to Section 33352 of the California Community Redevelopment Law (Health and Safety Code, Section 33000 et sec.). The purpose of this Report is to provide the information, documen- tation, and evidence required by Section 33352 of the Community Redevel- opment Law ("CRL") to accompany the proposed Redevelopment Plan when it is submitted by the Agency to the City Council. Such information, docu- mentation and evidence is provided to assist the Council in its consi- deration of the proposed Plan and in making the various determinations it must make in connection with the adoption of the proposed Plan. This Report is divided into 12 parts which generally correspond to the subdivisions contained within CRL Section 33352, with each part having a separate function as described in the summary listing which follows this paragraph. Certain parts of this Report, as noted in the summary, have been prepared by entities other than the Agency. Section 33352, however, requires the Agency to aggregate and submit such docu- ments as a part of this Report. Part No. and CRL Responsible Section No. Title Entity Part I Reasons for Selection of Project Area Agency [33352(a)] Part II Description of Physical, Social and Agency [33352(b)] Economic Conditions Existing in Proj- ect Area Part Iii Proposed Method of Financing Redevel- Agency [33352(c)] opment of Project Area Part IV Plan and Method of Relocation Agency [33352(d)] -1- C'h J 11 KatzHolfls Part No. and CRL Responsible Section No. Title Entity Part V Analysis of Preliminary Plan Agency [33352(e)] Part VI Report and Recommendations of Planning Planning Com- [33352(f)] Commission, and Report Required by mission [33352(h)] Section 65402 of Government Code Part VII Record of Meetings with Project Area Agency [33352(g)] Owners, Residents, Community Organiza- tions, and Others Part MI Report Required by Section 21151 of Pub- Agency [33352(1)] lic Resources Code (Project Environmen- tal Impact Report) Part IX Report of County Fiscal Officer Riverside (33352(j)] County Audi- tor -Controller Part X Report of Fiscal Review Committee Riverside [33352(k)] County repre- sentative to Fiscal Review Committee Part XI Neighborhood Impact Report Agency [33352(1)] Part XII Analysis of Report to County Fiscal Of- Agency [33352(m)] ficer and Summary of Consultations with Affected Taxing Agencies -2- KatzHollis Part I. REASONS FOR SELECTION OF PROJECT AREA The geographical area encompassed by the Project (the "Project Area") of the La Quinta Redevelopment Project, as selected by the Plan- ning Commission of the City of La Quints, 1s described in maps, tables and text in Part II of this Report to City Council and is shown on the Project Area Map as Map I-1 of this part of the Report to Council. The City of La Quinta is located on the west side of the Coachella Valley in Riverside County. The valley is within Southern California's portion of the Colorado Desert. The Project Area, with an estimated 11,200 acres, encompasses over 82 percent of the City. The City and Project Area are bordered to the south and west by the Santa Rosa Moun- tains, to the east by agricultural areas and the communities of Indio, Coachella, and Thermal, and to the North and northwest by Indian Wells, Palm Desert, Rancho Mirage and Cathedral City. Over half of the Project Area is mountainous and generally un- developable. Just over 10 percent of the Project Area (1,196 acres) is currently outside the corporate boundaries of the City, in unincorpor- ated Riverside County territory. As can be seen on Map I-1, the unin- corporated County territory is all that portion of the Project Area east of Jefferson Street. The entire Coachella Valley has historically been subjected to floods and flash floods that occur primarily during periods of intense Summer thunderstorms. While extensive flood control facilities have been constructed in other parts of the Valley, and to some degree in the northern portion of the City of La Quints, most of the City and Project Area 1s either unprotected or inadequately protected from such floods. The absence of adequate flood protection facilities has had a severe impact upon the City of La Quints. The type, location, character and scope of development has been affected. In addition, certain other physical, social and economic factors have exerted a negative influence on the City's growth and character. These factors, as well as the City's flood control problems, are described in detail in the next sec- tion (Part II) of this Report to City Council. The selection of the Project Area is in response to the many problems existing in the area and the need for an effective program for addressing such problems. In general, the redevelopment program within the Project Area will focus upon the following goals and objectives: 1. To eliminate and prevent the spread of blight and deterio- ration and to conserve, rehabilitate and redevelop the Project Area in accord with the General Plan, specific plans, the Redevelopment Plan and local codes and ordi- nances. REDEVELOPMENT PROJECT AREA BOUNDARY e i i LA'QUINTA REDEVELOPMENT PROJECT AREA CITY OF LA QUINTA REDEVELOPMENT AGENCY MAP 1-1 0 Katz Hollis 2. To encourage the investment of the private sector in the development and redevelopment of the Project Area by elimi- nating impediments to such development and redevelopment. A particular objective in this regard is the provision of necessary improvements required to protect Project Area properties from the danger of flooding due to rainwater runoff from surrounding mountains. 3. To encourage and provide for the orderly and proper develop- ment of undeveloped portions of the City in accordance with the Redevelopment Plan, the General Plan, and local codes and ordinances. 4. To promote the physical, social and economic well being of the Project Area, the City of La Quints, and its citizens. S. To promote the development of local job opportunities. 6. To provide for increased sales, business license, hotel occupancy and other fees and taxes to the City of La Quinta. The reasons for the selection of the Project Area may be summa- rized as follows: 1) The Project Area needs revitalization and upgrading. The Redevelopment Plan can assist the City to attain the real market poten- tial for the area, based on real market demands. 2) The Project Area suffers from the existence of inadequate public improvements, facilities and utilities; from substandard, dete- riorating, and obsolete buildings; and from a prevalence of depreciated values, impaired investments and economic maladjustment. 3) The blighting conditions are prevalent within the Project Area to such an extent that it constitutes a serious physical, social and economic burden on the City which cannot reasonably be expected to be reversed or alleviated by private enterprise acting alone. 4) Redevelopment of the Project Area will carry out and implement the policies and goals of the General Plan. The Redevelopment Plan will become an important tool for the City to achieve its long-range objec- tives for the Project Area and for the City. (I-2) El KatzHoffls Part II. DESCRIPTION OF PHYSICAL, SOCIAL AND ECONOMIC CONDITIONS Information presented in this Part iI of the Report to City Coun- cil relies upon various sources, including: -- A field survey of the Project Area conducted by Katz Hollis staff in September, 1983. -- Interviews with City staff and others outside City govern- ment, including selected Project Area owners. -- A review and analysis of various reports, documents, plans (including the General Plan) and other data provided by City staff. -- The Project Draft Environmental Impact Report, dated September, 1983, prepared by LSA, Inc. In general, all sources of data are cited throughout this Part II of the Report to City Council. A. Existing Physical Conditions 1. Project Location As described in Part I of this Report to City Council, and as shown on Map I-1 therein, the La Quints, Redevelopment Project encompasses the entire City south of Avenue 52, plus the area west of Eisenhower Drive and north of Calls Mazatlan and an additional 1,196 acres outside the eastern City boundary line between Avenue 54 and Avenue 58. 2. Land Uses and Acreages The Project Area contains several different land uses, with a few dominating overall. Open space and watershed uses are the most predomi- nant, followed by agriculture, residential, and resort (hotel/golf course) uses. Other more minor uses exist in the Project Area, including commercial, public facilities, and recreation. Agriculture uses are consolidated mainly along the eastern portion of the Project Area and extend into the central portion. Most of the agriculture is farmed as irrigated row crops. These agricultural uses are located on prime agricultural soils. Consequently, the land is con- sidered prime agriculture land and includes approximately 2,786 acres. Residential uses are confined primarily to two areas: the "Cove," and northern La Quints. M ICatzH®llis The Cove subdivision, while subdivided in the 1930's, has never been fully developed. Only about a third or less of all the lots currently have residences, although development is evenly distributed. (See photo Plate No. 22.) Northern La Quinta is currently being developed with attached condominiums. The La Quanta Hotel is located on the northwestern portion of the Project. Golf course uses surround the hotel, with fairways located in or adjacent to flood control facilities (Oleander Reservoir and flood evacuation channel). Generalized Project Area land uses and estimated acreages are presented in Table II-1. The major land use headings in Table II-1 are descriptive of the general character of the land areas denoted by the minor headings under them. Minor headings reflect corresponding land use designations from the three Riverside County General Plan Maps adopted by the City upon incorporation in 1982, and still applicable to the City. Just under 20 percent of the Project Area is developed or has ex- perienced limited development. This includes all areas designated by the General Plan Maps as low, medium, and high density as well as general commercial areas. The La Quinta Hotel and golf courses are primarily within these designations. Over one -quarter of the Project Area (25.9 percent) is either in agricultural use or is vacant land. These areas are designated very low density by the applicable General Plan Maps. Over half of the Project Area (52.0 percent) is in undeveloped, mountain- ous territory which is designated on the General Plan Map as open space and planned residential development, other agricultural lands, water problem area or mountainous area. The mountainous nature of much of the Project Area can be seen on May II-1. This map was made from a 1980 O.S. Geological Survey map which does not cover the entire City of La Quinta or Project Area. The portion of the City and Project Area not shown on Map II-1 is equally mountainous as the contiguous portion shown. Water courses (including Lake Cahuilla and portions of the La Quinta Hotel golf course) and equestrian trails account for another 3.6 percent of the Project Area. 3. Buildings and Structures The Project Area is characterized by the existence of buildings and structures, used or intended to be used for living, commercial, in- dustrial, or other purposes, which are unfit or unsafe to occupy for such purposes because of any one or a combination of the factors described below and illustrated in part by the photographs appearing on Plates 1 through 22. LfJ 0 100583 mmAAR10 Table II-1 La Quinta Redevelopment Agency La Quinta Redevelopment Project LAND USES AND ESTIMATED ACREAGES Land Uses Percent URBAN/DEVELOPED Acres of Total Low Density Residential 1,783 Medium Density Residential 96 High Density Residential 127 General Commercial 63 Total Urban/Developed 2,069 ( 18.5%) AGRICULTURAL/VACANT Very Low Density Residential 2,905 ( 25.9%) UNDEVELOPED/MOUNTAINOUS Open Space and Planned Residential 4,267 Open Space/Other Agricultural Lands/Water Problem Area/ Mountainous Area 1,560 Total Undeveloped/Mountainous 5,827 ( 52.0%) OTHER Water Course & Equestrian 399 ( 3.6%) TOTAL PROJECT AREA 11.200 (100.0%) Source: City of La Quinta Planning Department Katz, Hollis, Coren & Associates, Inc. u c E - 'a I� l� ------------ _.y ,NLr 0[,^ItlI PO m L. L L. L. i l � 1 r]0• SCALE 1.24000 0 o Qom m m m m m Nn CONTOUR INTERVAL W FEET .T110 LII.LS.t M<.[Nl 1.'Wl LOFIOV- N.nOIW 4LIM%TK YLmrI MNY 0 1" YI tl•ri01.. G10�OGI�L15WTI`T DENIER .M[u.Ii YW OS ry'.4lS Ol .NOLA.LLE VIORAI W[LTN43209] ti m mints ' MAP II-1 LA OUINTA REDEVELOPMENT PROJECT LA QUINTA, CALIFORNIA KatZH®llis a. Age and Deterioration In September, 1983, a field survey was completed to determine land uses, the condition of public improvements, and other Project Area characteristics. A non -technical structural condition analysis was com- pleted as a part of the field survey. Except for the La Quinta Hotel in the Northern La Quinta portion of the Project Area, and the handful of commercial businesses within the Cove area west of Washington Boulevard, almost all buildings within the Project Area are residential. of the 2,077 residential buildings in the Project Area, 2,024 are located within the Cove area, with the overwhelm- ing majority (1,961) west of Washington Street. A summary of Project Area dwellings and dwelling units is presented in Table II-2. Within the Cove area, there are a total of 6,268 lots including 117 commercial lots (34 lots are developed), 2,002 developed single- family lots and 26 multiple family units. A total of 25 commercial buildings are located within the Project Area, occupied by 43 tenants. In addition, a total of 402 hotel rooms are available on a seasonal basis for visitors to the City. Despite the fact that the original subdivision was laid out and streets. constructed in 1933, most of the housing and commercial uses within the Cove area are of recent origin. The 1959 U.S. Geological Survey Map shows a total of 331 dwellings in the area. The 1974 USGS Map shows 567 dwellings, a 71 percent increase in 15 years. The current count is just over 2,000 dwellings, giving a 256 percent increase in the last 10 years. Given these figures, approximately 16 percent of the Cove area dwellings are 25 years old or older. It is estimated that two-thirds or more of these older buildings were not constructed to ap- plicable Code requirements or have deteriorated to the point today where if inspected would be found to have one or more major code violations which would require major repairs to correct. At least 10 percent of all older dwellings have moderate to heavy structural deterioration, ' numerous code violations, and would require extensive reconstruction to bring them up to full code compliance. The cost of such reconstruction would likely exceed 50 percent of the value of such structures and there- fore would be of questionable economic feasibility. Demolition would be the probable alternative. Representative examples of Project Are build- ing conditions may be seen in Plates 20, 21 and 22. b. Defective Design and Character of Physical Construction Buildings of any type may suffer deterioration or disuse, or may Ask contribute to such problems in other buildings, because of inherent de - IN fects in the design or character of their physical construction. In some RatzH®lils cases such defects exist from the moment that a building is completed. In other cases, such defects evolve over time as uses within the building or within surrounding buildings change. Within the Project Area, for example, many of the older buildings are defective in terms of modern building, electrical, plumbing and health standards. A few such buildings are still served by a 2-line electrical hookup instead of the more modern 3-line service connection. Current code standards require a slightly elevated building pad in Proj- ect locations most susceptible to flooding (see Plate 18), but many re- sidences exist without such protection, having been constructed prior to the code requirement. C. Mixed Character Buildings and structures may generally be characterized by their uses. When more than one use is made of a building, or if two buildings of different uses exist on the same parcel or adjacent to each other on abutting parcels, then such buildings may be considered to be of mixed character. Some mixed character buildings have uses compatible with each other. Other buildings have uses which conflict. There are several examples of mixed character buildings within the Project Area. In one area a residence has been converted to a church. In another area, a residence has been converted to a used auto parts business ( see Plate 21). d. Inadequate Sanitation The Cove subdivision, formed in the 1930's has substandard ori- ginal metal pipeline that has corroded and deteriorated through the years. This has resulted in pressure loss, inadequate fire flows and poor water quality. Septic tank usage throughout the Cove area has also suffered from age and deterioration. Consequently, contaminants from septic tank leakage have infiltrated into the water lines. To overcome this health hazard, the water is heavily chlorinated, resulting in poor taste. The entire Cove area is on septic tank systems. Because of their age and small size, tanks have failed in many instances. This failure rate is increasing. Because of the small lot size and higher density in the Cove area, there is no remaining room to add more septic tanks when these failures occur. As a result of poor local drainage in the Cove, many spetic tanks have overflowed or have subsided from ground failure. Also, the soil conditions in many locations have reached their saturation point, pre- venting percolation, thus causing the system to backup and overflow. (II-4) ® 0 0 CD .i W X. Ln 5gp9 O O rl it i% G v P Y7 tr0- 0 7 1S M f a o c c H ° o E- m D N r d i A C m U E a d h ma. C 41 3 14 v cc A & A m 000 VRI Ifl NI N G rl a N NI � m 0 0 O F �ro a N II rl N N Q� I p � O OI O f0 .i OII 1-1D a� a+ E m � m C W C o of rf of ip11 N N m 3 O > -W p N O O O 1 N m m mU N N G rny� o 0 0l rll N N NII � w 0 3 G V NI c o rn o DI d � W .0 U 0 m m pppp (A 41 r-1 N Is W W 0 V 0 0 m G 71 +i 41 41 D 0 0 iC Oql 3 W MEC a yO yO •7 m C� m O� 7 O E .C- 7 A m 0 U 3 3 C c 0 a x U 04 Katz H®11 is 4. Properties The Project Area is characterized by properties which suffer from deterioration and disuse because of the factors described below and il- lustrated in part by the photographs appearing in Plates 1 through 22. a. Lots (Parcels) Subject to Flooding Flood control problems are the most important blight factor im- pacting the Project Area. The threat of floods and flash floods not only imperils existing properties, but has exerted a strong constraint on development. Within the Cove area, there are nearly 6,300 subdivided parcels. Less than one-third of these parcels are developed. Most of the vacant property in other parts of the Project Area cannot be devel- oped because costly major flood control facilities would be required to protect such development. Providing such facilities on a piecemeal, development -by -development basis, even if economically feasible (which it is not), would not be nearly as effective as planning and installing such facilities on an area -wide basis as is done in other Coachella Valley locations. The following paragraphs explain the source and nature of the flood problems afflicting the Project Area. The Coachella Valley and adjacent Santa Rosa Mountains are subject to intense, although infrequent, thunderstorm rainfall. Steep, mountain- ous terrain south of La Quinta (see Map II-1) rapidly sheds rainfall runoff, which concentrates in drainages with little infiltration and flows down into the lower, flatter elevations. Generally, "local storms" present the greater problem storms and flooding hazards in the Project Area. These storms occur mostly during the hot summer months, but have also occurred at other times of the year. Watershed basins throughout the Project Area boundary contribute to the concentration of runoff that flows into lowland valleys. The most significant watersheds are located south and west of the Cove subdivision. All watershed streams are intermittent, flowing for only short periods during and immediately following storms. The mountains are steep, rugged, and largely barren. Streams flow in a generally northerly to easterly direction, from elevations up to 5,100 feet above sea level, and empty onto the desert at below sea level elevations over large alluvial fans. The largest watershed system is Bear Creek in the western part of the area. The headwaters of this stream are about six miles southwest of La Quinta. Floodwaters of Bear Creek, after flowing in a northerly direction through the mountains, continues north along the western edge of the cove subdivision, generally contained by the existing levee. 11 11, KdtzHolliS There are several small unnamed streams, flowing easterly, which are adjacent to the Bear Creek basin emptying south of Lake Cahuilla. South of these, in order, are Devil Canyon, several unnamed streams, and Toro Canyon, whose drainage occupies the most southeasterly portion. In the past, flood waters have swept through the Project Area, resulting in both significant economic loss and threat to the safety of residents. Generally, flood runoff skirts the Cove subdivision. In the 1930's, a levee/channel was constructed along the west side of the sub- division to protect residences from the fury of Bear Creek runoff. Floodwaters have breached this levee on several occasions, resulting in localized flooding. The poor condition of the levee and inadequate design have precluded effective flood control. Similarly, mounds of earth have been formed by bulldozers to protect residences and property on the east side of the Cove subdivision. An adequate drainage system has never been built in the Cove sub- division. Roadways were constructed without curb and gutter improvements as well as without local storm drain facilities. Consequently, a large portion in the northern section of the subdivision experiences local street ponding and flooding during periods of heavy rainfall. Because the northern area of the subdivision is low, runoff from upstream sources collects in the streets and floods the neighborhoods. As shown in Map II-2, the Federal Insurance Management Agency's Flood Insurance Rate Map for the La Quints area shows most of the Cove area to be within flood zone B, while the entire northern portion is within flood zone A0. To overcome this problem, foundation pads must be raised a minimum of two feet, resulting in an additional $2,000 per pad improvement cost. The southern portion of the Cove area is not exposed to local nuisance drainage problems. Consequently, no special foundation pad treatments is required in this area. The existing levees and channels on the east and west sides of the Cove subdivision were not provided by the Coachella valley water District (CVWD) - the major governmental entity responsible for flood protection in the Coachella valley. Because they are not CVWD facili- ties, the district does not maintain them, nor does any other government- al entity. The lack of regular maintenance is evident, and in some lo- cations the channels are constricted and overgrown with brush and trees. On the east side of the Cove area, runoff has crested in the past and overflowed, flooding the downtown area. Avenue 52 has washed out and, on one occasion, a 6 to 8-foot trench scoured the roadway crossing. Several homes and vacant lands have been flooded in an area north of Avenue 52. I P 7. ' a el _ --O _t eiii� �� ELE3RU5 AV T_____ ze q' F_Ie '7r.0 E0AGE-PUS:! - P N AV it e gg fy,: 9 EA.a RON NO II NE JR 09 i L 3• �nq'S• ol�i. a� �iM� I fLLLE VgATLAN R Ty ...••. "ttt, Im<NR �a Aa Art t .J I e,¢ S p3 AVENIba TIYO------- rq VEN101 TWUNCA APANL �+NI • I p'::. i! Ell A'i iipw 3 s� ' _T I yx �. i ! •r+w' Y I MENIOA • ' ARITA y9A .. {N•a i ( r A rMA FONOA e '4 a A TORRES AV I --'�-; INT 1 b ea IT Project pours aryWRA a:::::; :: • , __ ' I a I i•' `'' ZONE A: Areas of 100-year flood; base flood el eaatlorrt and I"a'AN I 1 •: :::t: `• : flood hazard factors not determined. I I I ZONE AO: Areas of 100-year shallow flooding when depths t I i ♦- are between 1 and 3 feet; average depths of inun- I a I 11..,,•'. dati On are shown, but no flood hazard factors are A ' a , ' determined. ZONE A3: Areas of 100-year flood; base flood elevations and flood hazard factors are determined. ZONE E: Areas between limits of the 100-year flood and SOO- T year flood; or certain areas subject to 100-year flooding with average depths less than 1 foot or where the contributing drainage area is less than 1 square mile; or areas protected by levees from the base flood. MAP II-2 FLOOD INSURANCE RATE MAP DESIGNATIO Source: Federal Insurance Management Agency, in La Quinta Project Draft EIR, LSA, Inc., September, 1983 11 KatzH®llis Flood flows from Bear Creek and the other drainage described above spread onto the Coachella Valley floor and flow generally south, follow- ing the slight depression in the valley floor more or less parallel to the western mountains. This route crosses the Coachella Canal, and on July 23, 1949, such a flow damaged the canal, then in the last stages of construction. Should this event recur, structural damage to the canal would be expected, and heavy siltation by flood -borne debris would probably occur in portions of the underground irrigation water delivery system. Adjacent farms, now highly developed since the importation of dependable irrigation supplies, would experience more severe losses than have been experienced in the past. Lake Cahuilla County Park has been damaged in the past from flood- waters originating from two sources: floodwaters funneled into the Coachella Canal, and runoff flowing into the area from adjacent water- shed. As floodwaters flow along the east side of the Cove subdivision, round the mountain, and head south, they intersect the Coachella Canal. The heavy silt content contained in the flood runoff is deposited in the north end of Lake Cahuilla, reducing the lake's capacity. Dredging of the sediments is necessary to restore the lake to its proper depth. In 1978, runoff generated from watershed to the west of Lake Cahuilla flowed down into the area with such force that it damaged picnic and other facilities by the lake. If left unresolved, damage to these facilities could occur again in the future from a significant thunder- storm. In August of this year, an intense storm deposited 4.25 inches of rain in four days and caused moderate to locally heavy flooding within the Project Area. (The average annual rainfall for La Quinta is five inches.) Alert and rapid channel -deepening and embankment repair work prevented major damage from occurring to properties within the Cove area. Although an immense volume of water was generated by the storm, it was characterized by the CVWD General Manager and Chief Engineer as only a "4-year storm." (A storm of an intensity which would occur once every four years.) Evidence of the effects of the August, 1983 storm and earlier storms is shown in Plates 1 through 15. b. Inadequate Public Improvements, Facilities and Utilities 1) Flood Control Facilities Deficiencies Existing flood control facilities within and serving the Project Area are provisional at best, are poorly maintained if at all, and are KatzH®llis wholly inadequate to protect existing properties. The continual threat of annual flooding and the inadequacy of the existing facilities, as described in the foregoing section of this Report, have severely impacted existing properties and prevented desired new development from occurring. These problems and deficiencies can be addressed only on an area -wide basis through the planning and construction of a series of major improve- ments which would not only protect the La Quinta Project Area but would link up with other Coachella Valley flood control facilities. One of the major purposes of the proposed Redevelopment Plan is to provide for such improvements. Proposed flood control facilities and improvements are briefly described in the Redevelopment Plan, and are described in detail in the Project Environmental Impact Report included as Part VIII of this Report to City Council. 2) Inadequate Street Systems Regional access to the Project Area is via Washington Street and Jefferson Street from Highway 111 to the north, and via Avenue 52 from the east. Both Jefferson Street and Avenue 52 are modest two-lane road- ways but are shown on the General Plan as arterial highways requiring 110-foot rights -of -way. (See Plate 17.) When the original Cove subdivision was developed in 1933, surface streets were never engineered or constructed to specifications which are considered adequate by today's standards. Consequently, all roads in this area are substandard. These substandard conditions include reduced paving width (26-feet), no curbs and gutters, no storm drains, and no base material. Roadway conditions have since deteriorated resulting in numerous potholes and asphalt breakup. In addition, uncontrolled flood runoff caused by waters breaching the levee in 1978 have washed out por- tions of Avenida Montezuma. This condition has never been repaired. (see Plates 16, 17 and 18.) 3) Sewer and Water System Deficiencies Certain deficiencies within the Cove area sewer and water systems were previously described. In addition to these problems, the Southern California Water Company, La Quint& District Office, has identified several problems in their existing facilities serving the Project Area. These problems are summazied in Table II-3. 4) Other Deficiencies In the Cove area, the La Quinta Community Park is currently oper- ated and maintained by the Coachella Valley Parks and Recreation Dis- IF trict. This park provides a lighted baseball diamond, two basketball a ® ® 100383 Katz oll ➢➢ aS mm8AR10 Table II-3 La Quints. Redevelopment Agency La Quints. Redevelopment Project WATER SYSTEM DEFICIENCIES Order of Deficiency A. SOURCE MONITORING 1. All sources need complete chemical analyses for H-2 General Mineral, General Physical, and Inorganic Chemicals 2. Well 5 produces water with a concentration of ni- D trates exceeding 45/mg/l. (This well is blended with low nitrate water which is purchased from CVWD). B. SOURCES 1. Well 3 - Velasco a. The open hole in the casing needs plugging. H-3 C. STORAGE 1. The system has inadequate storage capacity. H-2 2. Reservoir 1 - North Madera a. Roof in need of repair H-3 3. Reservoir 2 - South Tecate a. Had one major leak in west side H-3 D. DISTRIBUTION SYSTEM 1. There may be inadequate pressure at meters in some H-2 areas of the South Pressure Zone during peak de - Alm mand. (Should be corrected in April, 1982.) 2. About 60% of the system is in poor condition and there H-2 are extensive substandard lines. 3. About 10 to 15% of the water mains are unprotected H-2 steel in poor condition. E. VALVE MAINTENANCE PROGRAM 1. The valve maintenance program is inadequate. D 2. Valve ties have not been established and recorded. D F. RELIABILITY OF SERVICE 1. All wells are electrically powered and there is no H-2 standby power provided at any of the wells. G. OPERATION, PLANNING AND MANAGEMENT 1. The Emergency Notification Plan is outdated. H-2 2. At Well 4 (Desert Club), the extra chlorine cylinder H-3 needs to be chained so it will not tumble over and interrupt service. 3. A Master Plan for orderly development of the system D to meet needs of the service area has not been pre- pared and submitted to this office. 4. The Well Drillers Report for all sources have not been D submitted. Order of Deficiency Legend: H - Health -related deficiency, with "H-l" being the most serious and in need of immediate correction. VW D - Deviation from good waterworks practice. Source: Southern California Water Company - La Quinta District, in La Quinta Project Draft EIR, LSA, Inc., September, 1983 2 E 11 KatzHollis courts, a children's play area, and a community center building. (see Plate 19.) Demand on La Quints. Park exceeds its facilities, therefore the park suffers from overuse and overcrowding. As infill development occurs in the Cove, recreation demand on La Quinta Park will be accel- erated, thus causing further overcrowding and decline of facilities. Consequently, a new community park is needed, preferably in the southern portion of the Cove. The City of La Quinta was incorporated in 1982. The City has had neither the time nor the funds to construct an administrative building in which to locate its small but growing staff. In the interim, the City has rented space for its staff in a commercial building located within the Project Area. B. Existing Social Conditions j1. Project Area Population, Income and Housing Statistics from the 1980 U. S. Census for Coachella Valley com- munities are available in a report compiled from summary reports by the ` Southern California Association of Government (SLAG) Census Data Center. La Quints is one of nine communities listed in the report, and the only one which was not incorporated at the time the census was taken. Later data on population and housing units was providedto the City upon its incorporation from the California State Department of Finance. Estimates of Project Area population and assumptions regarding income are based upon the SCAG and State reports. ,. Census data show a high (40 percent) vacancy rate for dwelling ` units within the City of La Quints. It is believed that most of these vacant units are located within the City's newer condominium develop- ments, almost all of which are outside the Project Area. (Many of the ( units within these developments are second homes, used on a seasonal basis.) Within the Project Area it is believed that turnover and seasonal vacancies total no more than 10 percent for the entire Cove area, and 20 percent for the condominiums in the Northern La Quinta area. Using these assumptions, it is estimated that 1,982 of the Project Area's 2,240 dwelling units are occupied. Using a factor of 2.75 persons per dwelling unit, it is estimated that the total permanent population within the Project Area is 5,451 persons. Project population estimates are presented in Table 1I-4. ( Approximately 70 to 75 percent of the Project population is t, estimated to be "white," non -Hispanic, with 25-30 percent of other race or ethnic origins. Moat of this latter population (15 to 20 percent) f falls within the Hispanic subcategory. ( (II-9) 13 KatzHollis Northern La Quinta Cove Area, West of Washington Cove Area, East of Washington Agricultural Areas 100583 cwAAR10 Table II-4 La Quinta Redevelopment Agency La Quinta Redevelopment Project ESTIMATED PROJECT POPULATION Dwelling Vacancy Occupied Times 2.75 Units Factor D.U.'s Persons/D.U. 120 40% 72 198 2,044 10% 1,840 5,060 56 10% 50 138 20 0 20 50 Total Occupied Dwelling Units Total Estimated Project Population Source: City of La Quinta Planning Department Katz, Hollis, Coren 8 Associates, Inc. �+�82 5-5" il El KatzH®llis No census data is available regarding household income. Certain assumptions may be made however, from other census data. Of the nine communities within the Coachella Valley, La Qunita ranked sixth in median value of owner -occupied dwelling units. Only Indio, Coachella and Desert Hot Springs had lower median values for owner -occupied units. It is believed that the majority of the City's owner -occupied housing is within the Cove portion of the Project Area. Given this assumption, together with the generally modest nature of Cove area residences, it can be con- cluded that income levels for the majority of Project Area households is within the moderate range, with a few lower income families, and even fewer higher income families. 2. Project Area Crime Table II-5 presents crime statistics for the period 1981 through August, 1983 for the City of La Quinta. Since the Project Area encom- passes over 82 percent of the entire City, including most of the resi- dential areas, the statistics presented in Table II-5 can be assumed to be reflective of the Project Area. The felony crimes of burglary and auto theft, and the misdemea- nor crimes of assault, disturbing the peace, petty theft and malicious mischief have been and apparently are continuing to be the major crime problems in the Project Area. Of the felony crime categories, only grand theft appears to be significantly declining, although if the present pace of burglaries continues, this crime will also show a decrease for the year. This may be in part due to an intensification of burglary preven- tion efforts by the City since its incorporation. It is clear, however, that residential burglaries have been a significant problem. Many of the houses within the Cove area have bars installed over the windows. C. Existing Economic Conditions 1. Project Area Businesses The City of La Quinta has very little existing commercial develop- ment. A new small commercial center has recently been developed along t' Highway 111, outside of the Project Area. "Downtown" La Quint& is lo- cated within the Project Area, centering around the La Quints. Park/Calle Estado/Avenida Bermudas area. Twenty-five commercial buildings contain- ing an estimated 43 tenants are located in this area. The La Quinta Hotel and La Quints, Golf Course, both located north of the Cove in the northern section of the Project Area, serve the local tourist business, which is becoming the mainstay of the area's economy, f rather than the diminishing, traditional agricultural industry of the vicinity. The arid climate and mild winters promote a large seasonal KatzH®llis 100383 MMAAR10 Table II-5 La Quinta Redevelopment Agency La Quinta Redevelopment Project REPORTED CRIME STATISTICS FOR LA QDINTA Type of Crime Felonies Homicide Robbery Assault Burglary Grand Theft Auto Theft Arson Narcotics Sex Crimes Miscellaneous Misdemeanors Assault Petty Theft Disturbing the Peace Drunk in Public Malicious Mischief Sex Crimes Miscellaneous Total *Through August, 1983 No. Crimes Reported 1981 1982 1983• 0 0 0 2 2 4 25 21 11 381 460 264 73 116 27 39 28 27 5 9 6 1 6 5 14 18 9 55 25 13 595 685 366 95 78 60 136 160 104 304 377 280 36 44 26 185 144 86 30 9 5 428 451 306 Source: Riverside County Sheriff's Department E in El KatzH®His population in the La Quinta area with peak residency occurring during winter months. The summer season shows a sharp decline in population due primarily to high temperatures. 2. Economic Dislocation and Disuse from Faulty Planning The overall impression of the commercial portion of the Project Area is that of stagnation or decline. While other communities within the Coachella Valley have experienced dramatic commercial growth in recent years, little growth has touched La Quints. This is not due to a lack of space. The downtown area is similar to the rest of the Cove area: two out of every three lots are vacant. It is difficult to com- prehend that the top photo in Plate 18 was taken at one of the major commercial intersections in downtown La Quints. The lack of commercial development, the economic dislocation and disuse, are clearly due to faulty planning. The original Cove subdivi- sion in 1933 was a superficial effort, with minimal improvements. It is likely that there was never a market for either commercial or residential development on the scale envisioned by the original subdividers. Being located in an unincorporated area, street maintenance, weed removal and other services provided within cities have not been high priorities in La Quinta. In recent years, as residential development has accelerated within the Project Area, it has not generally been matched by commercial development. It is probable that new businesses have been reluctant to enter an area which has so little aesthetic attraction. For major im- provement to occur, a significant development on the order of the new small shopping center on the north end of the City would have to be de- veloped. Aside from normal market considerations such as location, population, average income and other feasibility factors to be consi- dered, any such a development would be greatly dependent upon the developer's ability to acquire the land necessary for the site. In downtown La Quinta, acquisition of a 3-5 acre development site could conceivably involve having to deal with a dozen different owners even though the majority of the site may be vacant land. This is another legacy of the 1933 subdivision of the area into small lots. (Map II-3 shows the number of lots created within a portion of the Cove area by the original 1933 subdivisions.) 3. Cost of Public Services vs Tax Revenues Available The City of La Quinta was incorporated in 1982. Since the passage of Proposition 13, the process of incorporation involves the determination of and agreement upon an appropriate division of property taxes between the county and the newly created city. The proportion of property taxes allocable to the City of La Quinta is based upon Riverside County's estimated costs of operation and maintenance of La Quinta serv- ices and facilities. This does not reflect actual costs incurred by the 11 III 11 (s MAP OF LA QUINTA SUBDIVISIONS COMPILED FROM ASSESSORS MAPS J F OAVIDV . C E MAP 11-3 KatzH®His new city, nor does the City/County split address any capital expenditure needs. Thus, to fund actual operating costs and to set aside moneys into a capital improvement fund, the City must derive funds from sources other than property taxes, or must forego certain operation or mainten- ance expenditures. The City and the Project Area have major capital improvements needs, as detailed in earlier sections of this Report. The funding of such needs from property taxes is, in the absence of a redeveloment project providing for tax increment financing, not very Optimistic. Other funding sources such as sales tax and auto license fees will take considerable time to develop. Hotel occupancy taxes will eventually provide an important source of funding. In the meantime, the cost of maintaining, operating and otherwise providing for City and Project Area needs is in excess of the funding available from all funding sources. 4. Prevalence of Economic Maladjustment The City and Project Area are suffering from economic dislocation and disuse due to faulty planning which commenced in 1933 and carried forward to incorporation in 1982. In addition, the City and Project Area are impacted by a funding shortage in relation to operation, main- tenance and capital expenditure needs. The combined effort of these 10 problems is a prevalence of economic maladjustment. r�..�y 'v.tij �� •a 1 A • 41 rti. 14 Or • f, + 4''� f� � •�;�#fir � ^ ''l,k� l �i��+� i _� '. i.:. _ ♦��':`iJ.. •(� .DIY'. .. •'� Plate 1 V i,lry{III'. FLOODING AND FLASH FLOODS HISTORICALLY HAVE BEEN AND CURRENTLY CONTINUE TO BE A MAJOR PROBLEM IN THE PROJECT AREA . a► � s• •mow »J� {1.�`J' � � .�\ Flood erosion from major 1948 storm. Kennedy Ranch area, east of Jefferson Street. Plate 2 Looking north along Avenida Montezuma near Calle Ensenada in Cove area. Debris from July, 1976 storm. �v w ' �� �� 'I I K 1'.r *:--.1``v i �_ ��• ..:. -tom,; _ -. _ y� afar • �� / �� , ` �.`* _ 1•\ ^� Flood -eroded west Cove levee, breached during July, 1976 storm. Plate 4 r f r n Mr. -too k— Flood water flow at north end of west Cove channel, near Avenida Carranza and Calle Tar-mico. August, 1983 storm. FF-'-h &a 2Ir7---jrj7 - r-79-- s Plate 5 11 r Eroded west Cove channel, entering La Quinta Hotel golf course and Oleander Reservoir. August, 1983 storm. Overnight repair work required on west Cove channel at Avenida Montezuma and Calle Chihuahua. August, 1983 storm. Plate 7 M 8 F Looking west at flooded Avenue 52, at intersection of Washington Street. August, 1983 storm. PT Looking north at intersection of Washington Street and Avenue 52. August, 1983 storm. Plate 10 ,�� � •�. V J t. .�, tom. -! y ♦. �� >. � 5 (. , . r � - - ^' �` •t-.eve. ill il: li❑ ITAV .. y i+,�•" * c sy • - may_ _ ^r"�.�i•f �i�q ` __a- Erosion damage from August, 1983 storm to roadway leading into Lake Cahuilla Park. K� Intersection of La Fonda Avenue and Calle Iloilo three weeks after August, 1983 storm. Plate 14 11 El u • � ' �� Y� �� _ _ � .lam �� � Z • y Temporary dike at corner of Calle Yucatan and Calle Alvarado, three weeks following august, 1983 storm. New residence in Cove area, corner of Calle Chihuahua and Avenida Juarez constructed on elevated foundation pad with retaining wall to provide flood protection. Plate 15 11 ,0 Calle Paloma and Ave. Nuestra Calle Tampico and Calle Ronda Calle Jacumbra and Ave. La Fonda POORLY CONSTRUCTED STREETS 4%D MISSING SIDEWALKS, CURSS A%D GUTTERS ARE CHARACTERISTICS O= THE PROJECT AREA. --7 Calle Hueneme and Ave. Nuestra # Z Ave. Alvarado and Ave. Montezuma Plate 16 Looking north on Avenica' Montezurna near Calle Chihuahua three weeks after August, 1983 storm. Roadway has been washed out on numerous occasions in this area. Plate 18 Ell Another poorly maintained residence on Calle Paloma. Note iron bar gate for burglary protection. PROJECT AREA BUILDING CO�iDMONJS (Plate 20 through Pate 22) 7.w;; FL�f►.� Deteriorated residence on Calle Paloma north of Avenida Nuestra. Plate 20 ® 0 C'I n%iw � --T� �+.. ���c�. ��a'w �. 7�i�. r.Y ♦ 4:�-_+e.rr�'�.�Ii'1V '? �.\Y.r .. ten. Residence on Calle Paloma converted to church. Residence on north side of Avenida La Fonda west of Calle Guatemala used as used auto parts facility. Plate 21 0 Is 11 Northeast corner Avenida Juarez and Calle Arroba in Cove area. No sidwalks, curbs, gutters. Sporadic development. Southwest corner of same intersection as above photo. Plate 22 KatZH®llls Part III. PROPOSED METHOD OF FINANCING REDEVELOPMENT OF PROJECT AREA A. General Financing Methods Available to Agency The proposed Redevelopment Plan authorizes the Agency to finance the Project with financial assistance from the City, State of California, federal government, tax increment funds, interest income, Agency bonds, donations, loans from private financial institutions, the lease or sale of Agency -owned property, or any other available source, public or private. The proposed Plan provides the Agency with the powers, duties and obligations to implement and further a program generally formulated in the Plan for the redevelopment, rehabilitation and revitalization of the Project Area. The Plan does not present a specific plan or establish priorities for specific projects for the redevelopment, rehabilitation, or revitalization of any specific area within the Project Area. Instead, the Plan presents a process and a basic framework within which specific development plans will be presented, priorities for specific projects will be established, and specific solutions will be proposed, and by which tools are provided to the Agency to fashion, develop, and proceed with such specific plans, projects, and solutions. B. Tax Increment Financing Method In 1952 the voters of California approved an amendment to the State Constitution which authorized a unique method of financing the pub- lic costs associated with redevelopment. Based on this amendment, the California Legislature provided specific statutory authority in the Com- munity Redevelopment Law allowing local redevelopment agencies to use tax increment or tax allocation financing within formally designated redevel- opment project areas. This method has since become the model used by many other states. The basic theory behind tax increment financing is that redevelop- ment projects should pay for themselves. To bring this about, the Com- munity Redevelopment Law provides that when a redevelopment plan for a project area is adopted, the total current taxable value of all taxable property within the area is determined. (The current value is the value on the assessment rolls last equalized prior to the date that the rede- velopment plan is adopted. The last equalized roll is called the "base year roll," and the total taxable value of the taxable property within the project area shown on that roll is the "base year value.") After the base year value is determined, all taxing agencies who had been pre- viously receiving taxes continue to annually receive the taxes produced from the base year assessment roll. Any taxes which are produced from increases in taxable value in the project area above the base year value, U 0 tzH®llis however, are annually allocated to the redevelopment agency to pay the costs it has incurred in carrying out redevelopment activities in the project area. Increases in taxable value within redevelopment project areas may occur in the same manner and for the same reasons as increases in other areas. They may be due to routine annual reassessments (limited to a maximum increase of two percent by Proposition 13); they may arise from reassessments following changes in property ownerships or they may be occasioned by assessments of new developments being completed and placed on the assessment rolls. Within redevelopment project areas it is the third method - new developments - which is relied upon most heavily to produce increased values and tax increment revenues. And it 1s generally held that it is the redevelopment agency's actions in eliminating blight- ing conditions and providing other incentives in the project area which are the prime catalysts in bringing such new developments about. A redevelopment agency may incur project costs directly, or it may borrow money, issue bonds or enter into agreements to incur debt. Re- gardless of the method used to incur the debt, so long as such debt exists (and providing the agency has requested payment in the manner prescribed by law) the agency will annually receive the tax increment produced by the project area. When all loans, bonds, advances and other debts of the agency have been paid off - or in any year when no such debts have been incurred - then the tax increment funds are allocated to the county and other project area taxing agencies in the same manner as taxes produced by the base roll are allocated. Assuming there is taxable value above the base year value, and that the redevelopment agency has incurred project debts, tax increment revenues are payable to that agency during the first fiscal year which begins after January let following adoption of the project redevelopment plan. Thus, if a plan is adopted in 1983 and is effective prior to January 1, 1984, the agency would be able to claim tax increments from the project area (if any are generated) for the fiscal year commencing July 1, 1984. If the redevelopment plan is not adopted or effective until after January 1, 1984, the agency could not collect tax increments until the fiscal year which commenced on July 1, 1985. After project area values have increased sufficiently to create a moderate or higher annual tax increment "flow,* an agency may borrow against the future payment of such increment by issuing bonds or tax anticipation notes, and may fund interest as a part of such borrowing. Realistically, construction of major new developments would have to be commenced or firmly committed in the project area before the agency could issue tax allocation bonds. Other factors which would bear upon a poten- tial bond issue include the current market interest rate, the need to provide assured increment flow in excess of projected annual debt service 1atzHollls needs, the requirement to set aside 20 percent of all tax increment funds for low and moderate income housing purposes, and the provisions and requirements contained in any fiscal detriment alleviation agreements the agency may have entered into with affected taxing agencies. Until such time as sufficient tax incre- ment funds are assured for bond pur- poses, an agency would have to rely on loans or advances from the City, loans from other sources, or proceed on a "pay-as-you-go" basis from each year's annual tax increment allocation. C. Estimated Project Costs One of the primary purposes of the Project is to revitalize and upgrade a significant area of the City by eliminating the conditions of blight in the Project Area as evidenced by, among other things, the exis- tence of inadequate public improvements, facilities and utilities. The Agency proposes to eliminate such conditions by providing, or assisting in the provision of, some or all of the public improvements and facil- ities projects listed in Table III-1. The public improvements and facilities projects listed on Table III-1 have an estimated local cost (in 1983 dollars) of $15,600,000 and are not listed in order of priority. Such listing is not meant to be a limitation on the Agency's authority or methods in carrying out, and im- plementing the proposed Redevelopment Plan, nor is it an indication that such improvements are currently feasible or will be actually financed in whole or in part by tax increment or other revenues. In addition to the public improvements and facilities project costs estimated in Table III-1, the Agency may incur annual administra- tive costs for staff and consultant services, and may incur other costs for such purposes as land acquisition, demolition, owner participation, site occupant relocation or other activities related to redevelopment, and may set aside up to 20 percent of all tax increment funds received into a low and moderate income housing fund. The total estimated cost for these activities is $6,900,000, giving a total estimated Project cost of $22,500,000. Total estimated Project costs are shown on Table III-2. U. Proposed Financing Method Nominal advances for early survey and planning activities and Pro- ject administration have come and will continue to come from the City until Agency working capital from tax increments or other available sources is available. The Agency may agree to repay such loans and ad- vances from the City, including simple interest thereon. The Agency and City may enter into agreements under which the City would assist the Agency to provide public improvements and facilities projects, including Katz H®l l is CW0AAR1R10 Table III-1 La Quinta Redevelopment Agency La Quints. Redevelopment Project PROPOSED PUBLIC IMPROVMEMENT AND FACILITIES PROTECTS Flood control improvements and facilties, consisting of the following components: 1. West Drainage System - approximately 14,000 linear feet of training dike and channel system to intercept and channel flows from Bear Creek and other drainages. 2. East Drainage System - approximately 9,000 linear feet of training dike and channel system to intercept and channel all flows east of Bear Creek. 3. Cove Reservoir - a reservoir of up to 250 acre-feet storage capacity, with a 35-foot spillway to protect against flood damage, and a buried outlet from the Oleander Reservoir flood evacuation channel. 4. Other Supporting Facilities - such other dikes, channels, reservoirs, conduits, pumping stations, and other supporting facilities as may be necessary in conjunction with or addi- tion to the three facilities described above. Included within this category may be Dike No. 1, an earth fill dam located at the alluvial outwash fan of Bear Creek and unnamed tributaries. Dike No. 1 would provide 3,400 acre-feet of detention storage and would divert runoff through a mountain pass and down into storage facilities behind Dike Nos. 2 and 4. Floodwaters would ultimately be conveyed to the Avenue 64 evacuation channel And on to the Salton Sea. Would require a pumping station at Lake Cahuilla, but if constructed, Dike No. 1 would result in a scale -down of the three improvements above. Note: This listing of projects is set forth for planning purposes, and shall not be deemed as a limitation on the Agency's authority to implement the Redevelopment Plan. 10038 r_wAAR10 Katz 0ll is Table I1I-2 La Quinta Redevelopment Agency La Quinta Redevelopment Project ESTIMATED PROTECT COSTS Proposed Public Improvements and Facilities Projects (Table III-1) Project Administration Costs Escalation, Contingencies TOTAL Plus: Low and Moderate Income Housing (20% of Total Estimated Project Costs Below) TOTAL ESTIMATED PROTECT COSTS Note: $15,600,000 775,000 1,625,000 $18,000,000 4,500,000 $z2,soo,000 On August 4, 1983, the Agency and the City of La Quinta entered into an agreement with the County of Riverside which provides in part that prior to the County's final approval of the Redevel- opment Plan for the La Quinta Redevelopment Project, the Agency and the City shall endeavor to present to the County a method to be used in a "pass through" agreement whereby the County and all public agencies represented by the County's Board of Supervisors shall be reimbursed a mutually agreeable percentage of their prorata share of tax increment allocation occuring from the Project Area for the life and term of the Project. The above estimated Project costs do not include an estimated amount to be allocated to the Agency and "passed through" to the County and its dependent taxing agencies. ra 11 KatzHollis those listed in Table III-1, or to accomplish other Project purposes. Agency bonds or tax anticipation notes may be issued if needed and feasible to finance all or any portion of Project costs. The cost estimates shown for the public improvements and facili- ties projects in Table III-1 are local costs only, and do not necessarily reflect the total estimated cost of a given project. In some cases, the Agency may seek the participation of other funding sources, including developers, in Project financing. In every case, however, the Agency is committed to the principle of seeking total project financing from alter- native funding sources before committing to finance all or any portion of a project from tax increment funds. The proposed Redevelopment Plan limits the amount of tax increment dollars which may be allocated to the Agency to a cumulative total of $61,970,000, which includes debt service on any bonds or :notes the Agency may issue or interest bearing reimbursement agreements the Agency may enter into. The proposed Plan limits the principal amount of Agency bonded indebtedness which is to be repaid in whole or in part from tax increment funds to a total of $22,500,000 outstanding at any one time. Ah E. Tax Increment Limitations and Requirements In addition to the tax increment and bond limits discussed above, there are several other statutory requirements relating to the Agency's use of tax increment funds. The Agency is cognizant of such requirements and intends to fully adhere to them to the extent they are applicable to the Agency and to the Project. A summary of these requirements is pre- sented below. 1. Prior to paying all or part of the value of land for and the cost of installation and construction of any publicly owned building, facility, structure or other improvement within or outside the Project Area, the Agency will request the City Council consent to such payment and to determine: a. That such building, facility, structure or improve- ment is of benefit to the Project Area or the immediate neighborhood; and b. That no other reasonable means of financing the building, facility, structure or improvement is available to the Agency. 2. Prior to committing to use tax increment funds to pay for all or part of the value of the land for, and the cost of installa- tion and construction of, a publicly owned building (other than parking facilities) the Agency will request the City Council to hold a public hearing and to make the above determinations. In connection with such public hearing a summary will be prepared to: 11 11 Katz®llis a. proposed to be used interest payments); Show the estimated amount of tax increment funds to pay for such land and construction (including b. Set forth the facts supporting the Council's determinations; and C. Set forth the redevelopment purposes for which such expenditure is being made. 3. The Agency will not, without the prior consent of the City Council, develop a site for industrial or commercial use so as to provide streets, sidewalks, utilities or other improvements which the owner or operator of the site would otherwise be obligated to provide. 4. Prior to entering into any agreement to sell or lease any property acquired in whole or in part with tax increment funds, the Agency will request the City Council to approve such sale or lease after holding a public hearing. In connection with such public hearing the Agency shall make available a summary describing and specifying: a. The cost of the agreement to the Agency; b. The estimated value of the interest to -be conveyed or leased, determined at the highest uses permitted under the Redevelop- ment Plan; and C. The purchase price or the sum of the lease pay- ments, and, if the sale price or total rental amount is less than the fair market value of the interest to be conveyed or leased determined at the highest and best use consistent with the Redevelopment Plan, an ex- planation of the reasons for such difference. 5. Unless certain specified findings are made, not less than 20 percent of each year's tax increment funds allocated to the Agency will be set aside in a special fund for the purposes of increasing and improving the City's supply of housing for persons of low and moder- ate income and very low income households. 6. Although not statutorily mandated, the Agency will, upon the request of any taxing agency with territory within the Project Area which can demonstrate it has suffered a financial burden or detriment caused by the Project, consider making a payment to such agency to alle- viate such burden or detriment. Any such payment, however, would be sub- ject to the availability of funds to make such payment, after meeting required obligations. KatzH®llis Part IV. PLAN AND METHOD OF RELOCATION A. Minimal Agency Displacement Anticipated It is anticipated that minimal displacement of persons and busi- nesses will occur as a direct result of Agency implementation activities within the Project Area. The principal redevelopment activity to be pursued by the Agency after Project adoption will be the provision of new and the replacement of existing inadequate public improvements and facilities, chiefly the provision of flood control improvements and facilities, as detailed in Table III-1 in Part III of this Report. There may be some land acquisition by the Agency in the Project Area for public improvements purposes. The Plan also provides authority to the Agency to assemble land for development if necessary to accomplish the purposes of the Plan. The Agency may not use the power of eminent domain for such purpose on residentially zoned property. To the extent that the Agency acquires occupied property for public improvement or other pur- poses, or enters into agreements with developers or others under which occupants will be required to move, the Agency will cause or will be responsible for causing such displacement of occupants. The Agency is not responsible for any displacement which may occur as a result of pri- vate development activities not directly assisted by the Agency under a disposition and development, participation, other such agreement. Agency actions involving displacement, if any, will be phased in a manner to reduce potential problems arising from a number of persons or businesses being required to move in the same time period. B. Relocation in the Event of Agency Displacement As noted above, minimal displacement of persons, families, busi- nesses or tenants is anticipated under current Agency plans. If dis- placement occurs, however, the Redevelopment Agency will provide persons, families, business owners and tenants displaced by Agency Project Area activities with monetary and advisory relocation assistance consistent with the California Relocation Assistance Law (Government Code, Section 7260 et seq.), the State Guidelines adopted and promulgated pursuant thereto, Relocation Rules and Regulations adopted by the Agency, and the provisions of the Redevelopment Plan for the Project. The Agency will pay all relocation payments required by law. In addition, subject to the availability of funds, the Agency may make addi- tional relocation payments which in the Agency's opinion may be reason- ably necessary to carry out the purposes of the Redevelopment Plan. The following portions of this section of the Report to Council outline the general relocation rules and procedures which must be adhered to by the Agency in activities requiring the relocation of persons and businesses. Also identified in this section are the Agency determinations and assur- ances which must be made prior to undertaking relocation activities. The Agency's functions in providing relocation assistance and benefits are also summarized. (IV-1) 2 LI KatzHollis C. Rules and Regulations The Agency before undertaking or participating in an activity which will result in the displacement of persons shall adopt rules and regulations that: (1) implement the requirements of California Relocation Assistance Law (Government Code, Chapter 16 of Division 7 of Title 1, commencing with Section 7260) (the "Act"); (2) are in accordance with the provisions of the California Department of Housing and Community Develop- ment's Relocation Assistance and Real Property Acquisition Guidelines" (the "State Guidelines"); (3) meet the requirements of the California Community Redevelopment Law and the provisions of the Redevelopment Plan; (4) are appropriate to the particular activities of the Agency and not inconsistent with the Act or the State Guidelines. Such rules or regula- tions issued by the Agency shall be promptly revised as necessary, to conform to applicable amendments of the Act, the California Community Redevelopment Law or the State Guidelines. D. Agency Determinations and Assurances 1. The Agency may not proceed with any phase of a project or other activity which will result in the displacement of any person, business or farm until it makes the following determinations: a. Fair and reasonable relocation payments will be provided to eligible persons as required by law, the State Guidelines and Agency rules and regulations adopted pursuant thereto. b. A relocation assistance advisory program offering the services described in Article 2 of the State Guidelines will be established. C. Eligible persons will be adequately informed of the assistance, benefits, policies, practices and procedures, including grievance procedures, provided for in the State Guidelines. d. Based upon recent survey and analysis of both the housing needs of persons who will be displaced and available replacement housing and considering competing demands for that housing, comparable replacement dwellings will be available, or provided, if necessary, with- in a reasonable period of time prior to displacement sufficient in num- ber, size and cost for the eligible persons who require them. e. Adequate provisions have been made to provide or- derly, timely and efficient relocation of eligible persons to comparable replacement housing available without regard to race, color, religion, sex, marital status, or national origin with minimum hardship to those affected. f. A relocation plan meeting the requirements of law and the State Guidelines has been prepared. (IV-2) 1 11 KatzH®il$s 2. No person shall be displaced until the Agency has ful- filled the obligations imposed by the Act, the California Community Rede- velopment Law, the Redevelopment Plan, the State Guidelines and the Agency rules and regulations adopted pursuant thereto. 3. No persons or families of low and moderate income shall be displaced unless and until there is a suitable housing unit available and ready for occupancy by such displaced person or family at rents com- parable to those at the time of their displacement. Such housing units shall be suitable to the needs of such displaced persons or families and must be decent, safe, sanitary and an otherwise standard dwelling. The Agency shall not displace such person or family until such housing units are available and ready for occupancy. 4. Whenever all or any portion of the Project Area is de- veloped with low or moderate income housing units the Agency shall re- quire by contract or other appropriate means that such housing be made available for rent or purchase to the persons and families of low or mod- erate income displaced by the Project. Such persons and families shall be given priority in renting or buying such housing; provided, however, that failure to give such priority shall not affect the validity of ® title to real property. 5. If insufficient suitable housing units are available in the community for low and moderate income persons and families to be dis- placed from the Project Area, the City Council shall assure that suffi- cient land is made available for suitable housing for rental or purchase by low and moderate income persons and families. If insufficient suit- able housing units are available in the City for use by such persons and families of low and moderate income displaced by the Project, the Agency may, to the extent of that deficiency, direct or cause the development, rehabilitation or construction of housing units within the City, both inside and outside of the Project Area. 6. Permanent housing facilities shall be made available within three years from the time occupants are displaced, and pending the development of such facilities there will be available to such displaced occupants adequate temporary housing facilities at rents comparable to those in the City at the time of their displacement. 7. Whenever dwelling units housing persons and families of low or moderate income are destroyed or removed from the low and moderate income housing market as part of the Project, the Agency shall, within four years of such destruction or removal, rehabilitate, develop or con- struct, or cause to be rehabilitated, developed or constructed, for ren- tal or sale to persons and families of low or moderate income an equal number of replacement dwelling units at affordable housing costs within the Project Area or within the City. (IV-3) M $zHoIlls S. At least 30 percent of all new or rehabilitated dwelling units developed within the Project Area by the Agency, if any, shall be available at affordable housing cost to persons and families of low and moderate income. Of such 30 percent, not less than 50 percent thereof shall be available at affordable housing cost to, and occupied by, very low income households. At least 15 percent of all new or rehabilitated dwelling units developed within the Project Area by public or private entities or persons other than the Agency shall be available at afford- able housing cost to persons and families of low or moderate income. of such 15 percent, not less than 40 percent thereof shall be available at affordable housing cost to very low income households. These require- ments shall apply in the aggregate to housing in the Project :Area and not to each individual case of rehabilitation, development or construc- tion of dwelling units. The Agency shall require that the aggregate number of dwelling units rehabilitated, developed or constructed pursuant to these requirements remain available at affordable housing cost to persons and families of low and moderate income and very low income households, respectively, for not less than the period of the land use controls established in the Redevelopment Plan. E. Replacement Housing Plan ® Not less than 30 days prior to the execution of an agreement for acquisition of real property, or the execution of an agreement for the disposition and development of property, or the execution of a partici- pation agreement, which agreement would lead to the destruction or remov- al of dwelling units from the low- and moderate -income housing market, the Agency shall adopt by resolution a replacement housing plan. For a reasonable time prior to adopting a replacement housing plan by resolu- tion, the Agency shall make available a draft of the proposed replacement housing plan for review and comment by the Project Area committee, if any, other public agencies, and the general public. The replacement housing plan shall include those elements required by the Community Redevelopment Law. A dwelling unit housing persons of low or moderate income whose replacement is required by the Agency, but for which no replacement housing plan has been prepared, shall not be destroyed or removed from the low- and moderate -income housing market until the Agency has by resolution adopted a replacement housing plan. Nothing, however, shall prevent the Agency from destroying or removing from the low- and moderate -income housing market a dwelling unit which the Agency owns and which is an immediate danger to health and safety. The Agency shall, as soon as practicable, adopt by resolu- tion a replacement housing plan with respect to such dwelling unit. L 11 KatzHollis F. Relocation Assistance Advisory Program and Assurance of Comparable Replacement Housing The Agency shall develop and implement a relocation assistance advisory program which satisfies the requirements of the State Law and Article 2 of the State Guidelines and the Civil Rights Act and the Rum- ford Act. Such program shall be administered so as to provide advisory services which offer maximum assistance to minimize the hardship of dis- placement and to ensure that (a) all persons and families displaced from their dwellings are relocated into housing meeting the criteria for com- parable replacement housing contained in the State Guidelines, and (b) all persons displaced from their places of business or farm operations are assisted in reestablishing with a minimum of delay and loss of earn- ings. No eligible person shall be required to move from his dwelling unless within a reasonable period of time prior to displacement compar- able replacement dwellings or, in the case of temporary move, adequate replacement dwellings are available to such person. The following outlines the general functions of the Agency in providing relocation assistance advisory services. Nothing in this section is intended to permit the Agency to displace persons other than in a manner prescribed by law, the State Guidelines and the adopted Agency rules and regulations prescribing the Agency's relocation respon- sibilities. 1. Administrative Organization a. Responsible Agency The La Quinta Redevelopment Agency is responsible for providing relocation payments and assistance to site occupants (persons, families, business owners and tenants) displaced by the Agency from the Project Area, and the Agency will meet its relocation responsibilities through the use of its staff and consultants, supplemented by assistance from local realtors and civic organizations. b. Functions The Agency's staff and/or consultants will perform the following functions. 1) Prepare a Relocation Plan as soon as possible following the initiation of negotiations for acquisition of real property by the Agency and prior to proceeding with any phase of a public improve- ment or facility project or other implementation activity that will re- sult in any displacement other than an insignificant amount of non-resi- dential displacement. Such Relocation Plan shall conform to the require- (IV-5) KatzlH®ills ments of the Section 6038 of the State Guidelines. The Agency shall in- terview all eligible persons, business concerns, including non-profit organizations and farm operations to obtain information upon which to plan for housing and other accommodations, as well as to provide counsel- ing and assistance needs. 2) Provide such measures, facilities or services as needed in order to: a) Fully inform persons eligible for reloca- tion payments and assistance within 15 days following the initiation of negotiations for a parcel of land as to the availability of relocation benefits and assistance and the eligibility requirements therefor, as well as the procedures for obtaining such benefits and assistance, in ac- cordance with the requirements of Section 6046 of the State Guidelines. b) Determine the extent of the need of each such eligible person for relocation assistance in accordance with the re- quirements of Section 6048 of the State Guidelines. c) Assure eligible persons that within a reasonable period of time prior to displacement there will be available comparable replacement housing, meeting the criteria described in Section 6008(c) of the State Guidelines, sufficient in number and kind for and available to such eligible persons. d) Provide current and continuing informa- tion on the availability, prices and rentals of comparable sales and ren- tal housing, and of comparable commercial properties and locations, and as to security deposits, closing costs, typical down payments, interest rates, and terms for residential property in the area. e) Assist each eligible person to complete applications for payments and benefits. f) Assist each eligible, displaced person to obtain and move to a comparable replacement dwelling. g) Assist each eligible person displaced from his business or farm operation in obtaining and becoming established in a suitable replacement location. h) Provide any services required to insure that the relocation process does not result in different or separate treatment on account of race, color, religion, national organ, sex, mari- tal status or other arbitrary circumstances. 11 Katz®llis i) Supply to such eligible persons informa- tion concerning federal and state housing programs, disaster loan and other programs administered by the Small Business Administration, and other federal or state programs offering assistance to displaced persons. j) Provide other advisory assistance to eli- gible persons in order to minimize their hardships. As needed, such assistance may include counseling and referrals with regard to housing, financing, employment, training, health and welfare, as well as other assistance. k) Inform all persons who are expected to be displaced about the eviction policies to be pursued in carrying out the Project, which policies shall be in accordance with the provisions of Section 5058 of the State Guidelines. 1) Notify in writing each individual tenant and owner -occupant to be displaced at least 90 days in advance prior to requiring a person to move from a dwelling or to move a business or farm operation. 2. Relocation Office If a substantial number of persons will be displaced and the relo- cation staff's office is not easily accessible to those persons, the Agency will establish at least one appropriately equipped site office which is accessible to all the area residents who may be displaced and is staffed with trained or experienced relocation personnel. office hours should be scheduled to accommodate persons unable to visit the office during normal business hours. 3. Information Program The Agency shall establish and maintain an information program that provides for the following: a. Within 15 days following the initiation of negotia- tions and not less than 90 days in advance of displacement, except for those situations described in sub -section 6042(e) of the State Guide- lines, the Agency shall prepare and distribute informational materials (in the language most easily understood by the recipients) to eligible persons for Agency relocation benefits and assistance. b. Conducting personal interviews and maintaining personal contacts with occupants of the property to the maximum extent practicable. (IV-7) ® 0 KatzH®His c. Utilizing meetings, newsletters and other mecha- nisms, including local media available to all persons, for keeping occu- pants of the property informed on a continuing basis. d. Providing each person written notification as soon as his eligibility status has been determined. e. Explanation to persons interviewed of the purpose of the relocation needs survey, the nature of relocation payments and as- sistance to be made available, and encouragement to visit the relocation office for information and assistance. 4. Relocation Record The Agency shall prepare and maintain an accurate relocation re- cord for each person to be displaced as required by the State of Califor- nia. 5. Relocation Resources Survey The Agency shall conduct a survey of available relocation resources in accordance with Section 6052 of the State Guidelines. 6. Relocation Payments The Agency shall make relocation payments to or on behalf of eli- gible displaced persons in accordance with and to the full extent permit- ted by State Law and Article 3 of the State Guidelines. The obligations for relocation payments are in addition to any acquisition payments made pursuant to the Agency's real property acquisition guidelines, which may be adopted at the time the Agency's relocation rules and regulations are adopted. In addition, subject to the availability of funds, the Agency may make additional relocation payments which in the Agency's opinion may be reasonably necessary to carry out the purposes of the Redevel- opment Plan. 7. Temporary Moves Temporary moves would be required only if adequate resources for permanent relocation sites are not available. Staff shall make every effort to assist the site occupant in obtaining permanent relocation resources prior to initiation of a temporary move, and then only after it is determined that Project Area activities will be seriously impeded if such move is not performed. S. Last Resort Housing The Agency shall follow the State Law and the criteria and proce- dures set forth in Article 4 of the State Guidelines for assuring that if the Agency action results, or will result in displacement, and comparable (IV -a) KatzHollls El replacement housing will not be available as needed, the Agency shall use its funds or fund authorized for the Project to provide such housing. 9. Grievance Procedures The Agency shall adopt grievance procedures to implement the pro- visions of the State Law and Article 5 of the State Guidelines. The pur- pose of the grievance procedures is to provide Agency requirements for processing appeals from Agency determinations as to the eligibility, the amount of relocation payment, and for processing appeals from persons aggrieved by the Agency's failure to refer them to comparable permanent or adequate temporary replacement housing. Potential displacees will be informed by the Agency of their right to appeal regarding relocation payment claims or other decisions made affecting their relocation. 10. Relocation Appeals Hoard The Mayor of the City of La Quints shall appoint a relocation ap- peals board composed of five members, subject to the approval of the City Council. The relocation appeals board shall promptly hear all com- plaints brought by residents of the Project Area relating to relocation and shall determine if the Redevelopment Agency has complied with the applicable State relocation requirements and where applicable, federal regulations. The board shall, after a public hearing, transmit its find- ings and recommendations to the Agency. The members of the relocation appeals board shall serve without compensation, but each of the members shall be reimbursed for his necessary expenses incurred in performance of his duties, as determined by the City Council. 11 I Katz col l is Part V. ANALYSIS OF PRELIMINARY PLAN The Preliminary Plan for the La Quinta Redevelopment Project describes the boundaries of the proposed Project Area, contains general statements of land uses, layout of principal streets, population densities, building intensities and building standards proposed as the basis for the redevelopment of the Project Area. The Preliminary Plan also shows how the purposes of the Community Redevelopment Law would be attained through the redevelopment of the area, and states that with one exception the proposed redevelopment will conform to the General Plan of the City. The exception area, which generally lies east of Jefferson Avenue, will require a General Plan amendment. The Preliminary Plan also describes generally the impact of the Project upon .residents thereof and upon the surrounding neighborhood. The proposed Redevelopment Plan for the Project Area conforms with the standards and provisions of the Preliminary Plan. The Project Area boundary remains the same. The Redevelopment Plan proposes the same land uses and provides for all principal streets indicated in the Preliminary Plan. Building intensities are in compliance with limits established in the Preliminary Plan. Proposed building standards also remain the same. As set forth in the Preliminary Plan, the proposed Redevelopment Plan will attain the purposes of the California Community Redevelopment Law by the elimination of areas suffering from economic dislocation as a result of faulty planning or other reasons; by the replanning, redesign and rehabilitation and/or development of areas which are stagnant or improperly utilized, and which could not be accomplished by private enterprise acting alone, without public participation and assistance; and by protecting and promoting sound development and redevelopment of blighted areas and the general welfare of the citizens of the City by remedying such injurious conditions through the employment of appro- priate means. (V-1) 11 Katz®llis Part VI. REPORT AND RECOMMENDATIONS OF PLANNING COMMISSION. AND On November 11, 1983, the Planning Commission of the City of La Quinta adopted Resolution No. 83-6 which reported that the Commission found the proposed Project Redevelopment Plan conforms to the General Plan of the City of La Quints, and that the activities and undertakings which may be undertaken within the Project Area pursuant to the Plan conform to the General Plan. Resolution No. 83-6 also approved the $61,970,000 tax increment limitation set out in the Redevelopment Plan and any higher amount of such limitation as may be determined appropriate by the Agency to fulfill the specific objectives of the Plan; recommended that the language after the first sentence in Section 4 of Redevelopment Plan Exhibit "C" be deleted; recommended approval and adoption of the Redevelopment Plan; and included the report of the Planning Commission required by Section 65402 of the Government Code. A copy of the Planning Commission Resolution No. 63-6 is included with this Part VI of the Agency's Report to City Council. (VI-1) Eiji RESOLUTION NO.P•C. 83-6 RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LA QUINTA RECOMMENDING ADOPTION OF THE REDEVELOPMENT PLAN FOR THE LA QUINTA REDEVELOPMENT PROJECT WHEREAS, the La Quinta Redevelopment Agency has submitted to the Planning Commission a proposed Redevelopment Plan for the La Quinta Redevelopment Project which project includes lands within the City of La Quinta and certain lands within unincorporated territory of Riverside County; and WHEREAS, the Planning Commission of the City of La Quinta has formulated and adopted a Preliminary Plan for the Project; and WHEREAS, Section 33346 of the Community Redevelopment Law (Health and Safety Code, Section 33000 et seq.) provides that the Planning Commission is to review the proposed Redevelopment Plan and make its report and recommendation thereon to the Agency and the City Council, including a determination that the Redevelopment Plan conforms to the General Plan of the City of La Quinta; and WHEREAS, Section 33213 of the California Community 40 Redevelopment Law (Health and Safety Code, Section 33000 et seq.) provides in part that if the legislative body of one community authorizes the redevelopment of an area within its territorial limits by another community, the community so authorized may undertake the redevelopment of such area in all respects as if the area was within its territorial limits and its legislative body, agency and planning commission shall have all the rights, powers, and privileges with respect to such area as if it was within the territorial limits of the community so authorized; and WHEREAS, on August 30 , 1983, the Board of Supervisors of the County of Riverside, by Ordinance No. 605 , authorized the City of La Quinta to initiate the undertaking of redevelop- ment of the unincorporated territory of the County of Riverside included within the proposed La Quinta Redevelopment Project; and WHEREAS, Section 65402 of the Government Code provides in part: 1 "(a) If a general plan or part thereof has been adopted, no real property shall be acquired by dedication or otherwise for street, square, park or other public purposes, and no real property shall be disposed of, no street shall be vacated or abandoned, and no public building or structure shall be constructed or authorized, if the adopted general plan or part thereof applies thereto, until the location, purpose and extent of such acquisition or disposition, such street vacation or abandonment, or such public building or structure have been submitted to and reported upon by the planning agency as to conformity with said adopted general plan or part thereof. . . . "(c) A local agency shall not acquire real property for any of the purposes specified in paragraph (a) nor dispose of any real property, nor construct or authorize a public building or structure, in any county or city, if such county or city has adopted a general plan or part thereof, until the location, purpose and extent of such acquisition, disposition, or such public building or structure have been submitted to and reported upon by the planning agency having jurisdiction, as to conformity with said adopted general plan or part thereof. "• and WHEREAS, the above required reports and recommendations, including matters referred to in Section 33346 of the Health and Safety Code and Section 65402 of the Government Code, are to be made to the Agency and the City Council for their 40 consideration in acting on the adoption of the Redevelopment Plan; and WHEREAS, the Planning Commission has considered the proposed Redevelopment Plan, including the Draft Environmental Impact Report, and the General Plan of the City and other pertinent reports. NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of La Quinta as follows: 1. Findings. The Planning Commission hereby finds and determines that: (a) Pursuant to Section 33346 of the Community Redevelopment Law, the proposed Redevelopment Plan for the La Quinta Redevelopment Project (attached hereto as Attachment No. 1) conforms to the General Plan of the City of La Quinta. (b) Pursuant to Section 65402 of the Government Code, with respect to activities which may be undertaken within the Project Area pursuant to the Redevelopment Plan, and that as referred to in said section, such activities and undertakings conform to the General Plan of the City of La Quinta. -2- 6364P/2338/00 2. Report and Recommendations. (a) The Planning Commission hereby reports to the La Quinta Redevelopment Agency and the City Council of the City of La Quinta the findings referred to in Section 1 hereof, and recommends the approval and adoption of said Redevelopment Plan as submitted by the La Quinta Redevelopment Agency. The Planning Commission hereby approves the $61,970,000 tax increment limita- tion set out in said Redevelopment Plan and also approves any higher dollar amount of such limitation as may be determined appropriate by the La Quinta Redevelopment Agency to fulfill the specific objectives of the Redevelopment Plan. (b) It is further recommended that the language in section 4 of Exhibit "C" after the first sentence be deleted. 3. Transmittal. The Planning Director shall transmit a copy of this Resolution to the La Quinta Redevelopment Agency and the City Council of the City of La Quinta for consideration as part of the Agency's Report to the City Council pursuant to Section 33352 of the Community Redevelopment Law, and this Resolution shall be deemed the report and recommendations of the Planning Commission concerning the proposed Redevelopment Plan and contemplated public project and activities thereunder as required by applicable provisions of law. ADOPTED this 8th by the following vote: AYES: NOES: ABSENT: ATTEST: 1 day of November 1983, Commissioners Salas, Goetcheus, Imkamp, Thornburgh and Chairman Klimkiewicz None None CHAIRMAN Mr. Katz ®Ills Part VII. RECORD OF MEETINGS WITH PROJECT AREA OWNERS, RESIDENTS COMMUNITY ORGANIZATIONS AND OTHERS A. No Project Area Committee Formed for Project Section 33385 of the Community Redevelopment Law (CRL) provides that the City Council shall call upon the residents and existing commun- ity organizations in the Project Area to form a project area committee if the Project will result in the displacement of a substantial number of low and moderate income families. As described in Parts IV and XI, minimal site occupant displacement is anticipated to occur as a result of Agency activities in implementing the Plan. While there may be some Agency property acquisition for public improvements purposes, the Agency may not use the power of eminent domain to assemble residentially zoned property for development. Accordingly, on August 16, 1983, the City Council of the City of La Quints adopted Resolution No. 83-49 determining that the Project will not displace a substantial number of low and moder- ate income families, and that formation of a project area committee is not required and will not be formed. The City Council in this same resolution directed the Agency to consult with and obtain the advice of residents and the community organizations within the Project Area, and Afik to provide such residents and organizations with the Redevelopment Plan MP prior to its submission to the City Council. B. Consultations with In response to the City Council's direction, the Agency and City Council on October 21, 1983 held an adjourned regular meeting at 7:30 p.m. in the La Quinta Community Center for the purpose of providing in- formation and seeking public input into the Redevelopment Plan adoption process. A notice of this meeting (and Project Area boundary map) was published in the Indio Daily News on October 10, 1983. Copies of the notice and map were mailed to all Project Area assessees of record, com- munity organizations, businesses and property occupants. At the public meeting, the goals and objectives of the Project were discussed, slides depicting La Quints's flood problems were pre- sented, and a question/answer session was conducted. Copies of the pro- posed Redevelopment Plan and the Rules Governing Participation and Pre- ferences by Property Owners and Business Occupants in the La Quinta Project were available for inspection. A copy of the minutes of the October 10, 1983 combined adjourned Council/Agency/public meeting is included with this Part VII of the Report to City Council. Aft M I N U T E S CITY 101t4CIS - CITY OF LA QIINTA IA Q)IMA REDEYE OPMEW AGDCY ® An adjourned regular meeting of the City Council and Redevelopmnt Agent' held at the La Quinta Community Center, 77-861 Avenida Montezuma, La Quinta, California. C✓ c. � October 21, 1963 7:30 P.M. ? ^I 1. CALL TO ORDER A Mayor Beier called the :meting to order at 7:31 p.m. A. The Invocation was led by Mayor Baler. B. The Flag Salute was led by Assistant to the City Manager Jennings. 2. ROLL CALL Present: Council Members Allen, Cox, Henderson, Wolff and Mayor Baler. Absent: None. Also Present: City Manager Usher, Assistant to the City Manager Jennings and hell Weeks, General Manager/Chief Engineer of C.V.W.D. ' 3. PUBLIC COM Dn 4. WRITTEN CC MRNICATICNS 5. CCM• M FROM COUNCIL ME2 RS 6. HEARINGS 7. CONSENT CALEIZAR 8. BUSINESS SESSION A. The City Manager presented a series of slides depicting the results of past flooding incidents in la Quinta, and the need for permanent flood control improvements. Mr. Lowed 0. Weeks, General Manager and Chief Engineer of the Coachella Valley Water District, described the proposed flood control facilities. The City Manager described the method of financing and other matters relating to the proposer] Redevelopment Plan and Rules Governing Participation and Preferences by Property Owners and Business Occupants in the La Qui.nta Redevelopment Project, copies of which were available for inspection. The City Manager responded to questions from property owners, tenants and business paws regarding various elements of the RedeveloEnent Plan. RFSOLUrICN NO. 83-62. A RESOLUTION OF THE CITY Q77tCIL OF THE CITY OF IA Q12M, CALffORNIA, OXSENTL% 1O AND CALLING A JOINT PUBLIC HEARING CN THE REDEVELOPMENT PLAN FOR THE LA Q7INTA REDEVELOPMENT PROTECT. Moved by Council Member Wolff; seconded by Council Member Allen, to adopt Resolution No. 83-62. Unanimously adopted. RE9OIAYrI0N NO. RESOIJMCN OF i •U�` -- Ora•. r aa+ AGENCY SUB=INGTHE PROPOSED •a •• • , •• • u •• Sa w • • m • , ••.•••�» •E� E •• is •.• , • w v •,», E •• n •-+ a Moved by Agency Member Cox, seconded by Agency Member Wolff, to adopt Resolution No. RA-83-14. Unanimously adopted. - 9. ADJOUF[a•ENT Moved by Council Member Henderson, seconded by Cmnncil Member Coot, to adjourn. The adjourned regular meeting of the City COunncil and Redevelopmnt Agency was adjourned at 9:16 p.m., Friday, October 21, 1983, at the la Quinta Cammnnity Center, 77-861 Avenida Montezuma, Ia Quints, California. u l E 11 rl Katz offls Part VIII. REPORT CODE ( BY IMPACT PUBLIC After the Final Environmental Impact Report has certified by the Agency in accordance with State Law local procedures, it will be submitted separately to for inclusion in this Report to City Council. been prepared and and guidelines and the City Council (VIII-1) atzH®llis Part IX. REPORT OF COUNTY FISCAL OFFICER In accord with Section 33328 of the Community Redevelopment Law (CRL), the Riverside County Auditor -Controller, as the fiscal officer charged with responsibility of allocating tax increments under Section 33670 of the CRL, has prepared the attached report to the Redevelopment Agency and all taxing agencies located with the Project Area. Also attached is the portion of the Auditor -Controller's report which is prepared by the State Hoard of Equalization. In addition, as required by Section 33352(m) of the CRL, the Auditor -Controller's report is ana- lyzed by the Agency and such analysis is included in Part XII of this Report to City Council. (IX-1) County of Riverside Office of County Auditor -Controller County Administrative Center 4080 Lemon Street Rivenide, California 92501 Howard D. Stephetm CPA Telephone:(714) 787.2975 AuditorContro(ler - November 3, 1983 City of La Quinta Redevelopment Agency 78-105 Calle Estado La Quinta, California 92253 Re: Fiscal Information Gentlemen: In accordance with Health and Safety Code Section 33328, we submit the following fiscal information for La Quinta Rede- velopment Project. EXHIBIT A - Total assessed valuation of taxable property ® within the project area for the 1983-84 base year. EXHIBIT B - Affected taxing entities. EXHIBIT C - Total property tax revenue for each affected taxing entity from base year assessments (within the Project area). EXHIBIT D - Total property tax revenue for each affected taxing entity for the 1983-84 fiscal year, (within and without the Project area). HDS:jh cc: Supervisor Larson Co. Administrative Officer County Counsel County Assessor All Affected Taxing Entities Respectfully submitted, Howard D. Stephens Auditor -Controller Chairman, Fiscal Review Committee 11 El EXHIBIT A LA QUINTA REDEVELOPMENT PROJECT TOTAL ASSESSED VALUATION OF TAXABLE PROPERTY WITHIN THE -PROJECT AREA 1983-84 BASE YEAR SECURED UNSECURED STATE BOARD OF EQUALIZATION TOTAL SECURED AND UNSECURED 207,lo6,o83 407,248 see note 207,513�331 NOTE: State Board of Equalization Values for 1983-84 within the project area are not currently avail- able. EXHIBIT B C LA QUIPITA REDEVELOPMENT PROJECT AFFECTED TAXING ENTITIES County of Riverside County Free Library County Structural Fire Protection Supervisorial Road District 4 City of La Quinta Coachella Valley Unified School District Desert Sands Unified School District Coachella Valley Community College District Riverside County Superintendent of Schools Coachella Valley Public Cemetery District Coachella Valley Mosquito Abatement District Coachella Valley Recreation and Park District Coachella Valley Water District Coachella Valley Resource Conservation District ® ® EXHIBIT C LA QUINTA REDEVELOPMENT PROJECT TOTAL PROPERTY TAX REVENUE FOR EACH AFFECTED TAXING ENTITY FROM 1983-84 BASE YEAR ASSESSMENTS (G—LTHIN THE PROJECT AREA) Percent Total Affected Taxina Entities of Taxes Taxes County of Riverside 24.21 $ 502,390 County Free Library 2.84 58,934 County Structural Fire Protection 6.11 126,791 Supervisorial Road District #4 .13 2,698 City of La Quinta 6.64 137,789 Coachella Valley Unified School District 1.69 35,070 Desert Sands Unified School District 36.41 755,556 Coachella Valley Community College District 7.84 162,690 Riverside County Superintendent of Schools 4.27 88,608 Coachella Valley Public Cemetery District .35 7,263 Coachella Valley Mosquito Abatement District 1.43 293674 Coachella Valley Recreation and Park District 2.15 44,615 Coachella Valley dater District 5.89 122,225 Coachella Valley Resource Conservation District 04 830 Total 100.00 $2,075,133 NOTE: Above amounts represent the general levy (1%) only and do not include taxes from State Board of Equalization assessments or debt service. Il�Mt—. N �N uMt0 — looco c ID M_: O�QOtn N C�D.Qi �W ,?O�ON MN N m 0"10, . O 'M0� O 0§N01Q[ d co O E A H 0 O co M • 01 ti x m .0 INO0�coo,CRO aN)cItoNO �WO y4• NtiMI O�MC�,r1 TuU'OKaL U co n8co �O t-t-:;A ?� N y O CD I�O�rIO N.I ri O N m N .ml U S a a 0 O�c�po MN .i [ .i O (—f—N n S y Q m„ (•�'11f1 Mti �I00WOI�t+Y.O ? C m Wrl 1•' 4 6 0 F V C 2U H C O m 4 C w z w U W m aS WW r W i OS u.�� c% � �NOI O.Nd o O 0 and m a V m O�ti LC ?O]mN ri Nn d.•ISOO d as d H ri W 0 a �Omm IIlM0000�.-� �C OV c WW E+ N NOO H� N 0J m.y ,�O D\ M N Lam? i-i .a H F N NtiN NONOJ M Lco a O w O imN CD O i N OI>. mm wm W > m S O far O O y N m 'Coo of n s u u pEp ' W a 7 C .-I V Q o E ei H W O � ��•f 0 4 J O d Y U .Ui eyu 4Y .m•I 8 N G w U aF+ .mi m f .-I mL 4Nq a~+ugy mQ14 WNe g .mi .mi m a c m m o p 7O pe 0Om ..Oi elmNuiT.NCuati y d% 8AU9y@@A U N 0 m0 .i u u U ei C 9 G C u U 0 F..•1 as 00 00>100 ow 0 0A W 4.mi7Cdto m tc mm .0i V01 7 am+d g9 N .CI .�I LI V fi GA ma U+ W 0 1 m 0 Tw C m O a 0 0 0 0 0 E- .'imdE�a �cdm s o 10 m w d 0a >I- TTTT TTT 4 C 0A �2 C 0 C 0a+0000 m d 0 a d 0d d m or 0 d d d d ama.�d >v>u > a .+ u A2 d Em.0 ONddCpdmdd F A a d d d owm.mia.�-INti "i `"•1 mN aN.'i. .~i bo T T T> O m u 0 m 0 0 0 0 0 C J V77pp �+M LwL MLLLLL p •• 0000.060.09999 i 0 U 0 A 0000C40UUUU i O y STATIE OF CALIFORNIA STATE BOARD OF N STREET, SACRAMENTO, EQUALIZATION CALIFORNIA CONWAY N COLLIS ivn Gn ERNEST J. DROMENN�RG. S 80R 1799, SACRAMENTO. CALIFORNIA 95808) S.D~.is Dl 916/322-2323 November 1, 19E3 W EIAMMEENNETT T6 d DaI14r. [.d RICHARD NFV NS Fo, 1 D,~. P .a KENNETH CCITT - Cw 161. Soc.v.w.. -Mr. Howard D. Stephens Riverside County Auditor County Administrative Center 4080 Lemon Street, llth Floor Riverside, California 92501 Dear Mr. Stephens: DOUGLAS D. UILL E.Rvn.. Sawa) 33 Pursuant to Section 33328 et seq. of the Health and Safety Code, the 1983-84 assessed values of state -assessed property located within the boundaries of the proposed La Quinta Redevelopment Project are enclosed. The Board of Supervisors has given the City of La Quinta jurisdiction for redevelopment purposes over certain Tmincoeporated territory. These assessed values will continue to be valid if the project boundaries re- main fixed and the ordinance adopting and approving the redevelopment plan for this project becomes effective prior to August 20, 1984. JEH:jb Enclosure cc: Mr. Frank M. Usher 11 Very truly yours, Jay E. Hubert Area Office Administrator VALUATIO14 DIVISION Iil ® - La Quinta Redevelopment Project Company TAX -RATE AREA 20001 Southern California Gas Company General Telephone Company of California TAX -RATE AREA 20002 Southern California Gas Company General Telephone Company of California TAX -RATE AREA 20003 Southern California Gas Company General Telephone Company of California TAX -RATE AREA 20007 Southern California Gas Company General Telephone Company of California TAX -RATE AREA 20008 Southern California Gas Company General Telephone Company of California TAX -RATE AREA 58047 General Telephone Company of California GRAND TOTAL WITHIN PROJECT 1983-84 Assessed Values Land Improvements Personal 1,920 166,930 168,850 148,780 751,540 900,320 131,940 63,650 195,590 16,410 60,300 76,710 18,120 460 18,580 17,770 1,377,820 E KatzH®llis C Part R. REPORT OF FISCAL REVIEW COMMITTEE Section 33353 of the Community Redevelopment Law provides that a county or any affected taxing agency may call for the creation of a fis- cal review committee within 15 days after receipt. from a redevelopment agency a description and map of the boundaries of a proposed redevelop- ment project area and a statement that a plan for the redevelopment of the area is being prepared. To be composed of one representative from each of the affected taxing agencies (including the county), the commit- tee's purpose would be to report to the redevelopment agency on the fis- cal impact of the proposed redevelopment plan on each of the committee's members. In accord with Section 33327 of the Community Redevelopment Law, on September 6, 1983, the La Quinta Redevelopment Agency transmitted a boundary description, Project Area Map, and "Statement of Preparation of Redevelopment Plan or Amended Redevelopment Plan for the La Quinta Redevelopment Project" to the governing bodies of each affected taxing agency, to the Riverside County Auditor -Controller, Assessor and Tax Collector, and to the State Board of Equalization (SBE). In response to the request of the County of Riverside, a fiscal review committee was called for and formed for the La Quinta Redevelop- ment Project. A hearing of the fiscal review committee was held on November 7, 1983 at 10:00 a.m, in the Council Chambers of the La Quinta City Hall. Attendees at the fiscal review committee hearing were: Name and Title Taxing Agency Represented Howard Stevens, Auditor -Controller, Riverside County Riverside County and Chairman, La Quinta Project Fiscal Review Committee Linda Thomason, Administrative Analyst Gene L. Perry Robert H. Elrod, Ph.D., Superintendent Dennis J. Learn, Assistant Superintendent, Business Services JJj Riverside County Coachella Valley Water District Coachella Valley Unified School District Coachella Valley Unified School District 0 C tzH®llls Name and Title Gretchen A. Dockel, Acting Super- intendent Frank Guerrer, District Manager Michael J. Wargo, District Manager - Entomologist Frank Usher, City Manager, and Executive Director Lawrence J. Arceneaux, Jr., Vice President, Katz Hollis Allan A. Robertson, Vice Presient, Katz Hollis Taxing Agency Represented Coachella Valley Recreation and Park District Coachella Valley Recreation and Park District Coachella Valley Mosquito Abatement District City of La Quinta, La Quinta Redevelopment Agency La Quinta Redevelopment Agency La Quinta Redevelopment Agency At the hearing, the Auditor -Controller distributed copies of the fiscal officer's report on Project Area taxes and taxing agencies. (See Part IX of this Report to City Council.) The Auditor -Controller also distributed two reports, "Estimated Fiscal Impact on Affected Taxing Entities Resulting from Tax Increment Financing," and nTotal Fiscal Im- pact on Affected Taxing Entities Resulting from Tax Increment Financing Based on a Plan Limitation of $61,970,000." Copies of both of these reports are included in this Part X of the Agency's Report to City Council. During the hearing the La Quinta Agency Executive Director pre- sented information on the Project, particularly on the need for flood control facilities to serve the greater La Quints area. He explained that attempting to finance such improvements via special assessments would be, because of the vast area covered, impractical and unfair. Since the tax increment limit within the Plan is based entirely on flood facilities cost (plus administration and low and moderate income housing set -asides), other needed public improvements and facilities would have to be provided by special assessments or other such fees. Imposing all costs on new housing developments would add a high cost burden to their sales prices and perhaps jeopardize competitive position in the market. The representatives from the Coachella Valley Unified School Dis- trict stated that their district may be highly impacted by new housing developments within the Project Area in terms of potential new schools required to serve the population of such developments. They requested that methods be explored to alleviate this impact in such a way that the district would not suffer a loss of State funds as a consequence of such assistance. (X-Z) Ll n Katz®llis The representative from the Coachella Valley Mosquito Abatement District commented that he appreciated the proposed limited use of tax increment funding by the La Quinta Project. In response to a question concerning how much tax increment reve- nues might be generated by new developments expected to occur within the Project Area once the flood control problem had been solved, Mr. Usher distributed copies of a May, 1983 preliminary bond feasibility report completed by Katz Hollis, and a letter dated November 7, 1983 from Katz Hollis determining that the tax increment projection contained in their May, 1983 report was still a reasonable indication of the tax increment revenues to be generated. Copies of the Katz Hollis' May, 1983 report and November 7th letter are included in this Part % of the Report to City Council. The Auditor -Controller noted that the revenue projections con- tained in Katz Hollis' report could likely be considered to be in addi- tion to the annual revenues projected in his reports, which assume an annual 15 percent growth in Project Area taxable values. Members of the fiscal review committee were given copies of the preliminary draft of the La Quinta Redevelopment Agency's Report to the La Quinta City Council on the proposed Redevelopment Plan for the La Quints. Redevelopment Project. Copies of the proposed Redevelopment Plan and Draft environmental impact report for the Project had been previously transmitted to the members. The Auditor -Controller, as chairman of the fiscal review commit- tee, requested that any taxing agency who so desired could send addi- tional comments to his office by November 16, 1983 for inclusion in the report of the fiscal review committee. When the report of the fiscal review committee is issued, it will be added to this Report to City Council or will be submitted to the City Council for addition to this Report. (%-3) f0� .Y N if1 01 ri N fD I` MOB �O O �M O �Sp SSnC� Oo 0)N MtD co cc; ~ .1 . i NCO N N 11 I,l 19 MO W N N if1 M�L- N N U l �O M M n T S m M co N 01 In S S O\ O Ifn M a 0n N M m M S .Mi O N MN t-H 1n �o .o m O .o t-0) N N m 01S 10 N O �o H n N rIS N CO m C CSC N N O� C M S N SUS �O N t` �yrl aN N N S � l O �c N MOB M r1 In rl r-I � q N N t- O N N co C\ 0 lt�� N n co Ut "D . O w 111 CO M 4 \O M Ul Mr; O N S rf NIO O M � N N O,8 O O ti O NO N io N O co co m CV O 00 co co corn M 11 M 111 MS N N N O, O � r-1 M N co N O% S O� 1 N mo ON noo O MM Os H dM 0 e U\S O\ In VIM MOJ 0?r%C NS1NC? �NO .-� .O nw m mM \O00 S:a NN N r4 r~N-1 OC q J OJ C V d O-t tico a, O to M # U�N O O+-i m � OE M us U= MUD ll lcP O O, O in �O .O I N C O d N (��O O W OW O ImN n t�.1 m In rl .1 In �O fD h .r N ? 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L t�'•1 b m N 01 N ND N � O0 N N N W t~i H 0 r�'1 m M d G. > m M t+l cD ' � m va x a ��.7 m N .7 n o m O J b d �O O� to C% (� H 4 F O � ti .�1 N iWG u H N„ N N (+1 M w m L m >� m m >. m m A C m v C .mi c0 t0 N 03 J 00 Ol V m m t J S L 7 9 m m J rl J �i m m J u m c, a m O J C m J u O O n•I m m p O J m J c 0 u 0 J m aCs 7 O m J C m m m L a m w m m w m m T m m m pu O �. m O 3 O m L If�L 0 J 0 o N O M m 4m F� O A aO F Z O V d O H H G a 0 0 U a 1-1 H L' O W U 1.1 W O N O 7S r LA QUINTA REDEVELOPMENT PROJECT TOTAL FISCAL IMPACT ON AFFECTED TAXING ENTITIES RESULTING FROM TAX INCREMENT FINANCING BASED ON A PLAN LIMITATION OF 861 970 000 Percent Affected Entity of Taxes Total County of Riverside 24.21 $1510025937 County Free Library 2.84 1,759,948 County Structural Fire Protection 6.11 3,786,367 Supervisorial Road District ##4 .13 8o,561 City of La Quinta 6.64 4,114,808 Coachella Valley Unified School District 1.69 1,0475293 Desert Sands Unified School District 36.41 22,563,277 Coachella Valley Community College District 7.84 4,858,448 Riverside County Superintendent of Schools 4.27 2,646,119 Coachella Valley Public Cemetery District •35 216,895 Coachella Valley Mosquito Abatement District 1.43 886,171 Coachella Valley Recreation and Park District 2.15 1,332,355 Coachella Valley Water District 5:89 3,650,033 Coachella Valley Resource Conservation District 01E 24,788 Totals 100.00 $61,970,000 (PREPARED BY OFFICE OF RIVERSIDE COUNTY .'AUDITOR -CONTROLLER) ® 44-ci�i vim. eL KatzHollis November 7, 1983 Mr. Frank Usher City Manager City of La Quinta Post Office Box 1504 La Quinta, California 92253 Dear Mr. Usher: Per your request, we have reviewed our letter report of May 26, 1983, which presents estimates of tax increment revenue to be generated within the pro- posed La Quinta Redevelopment Project. The purpose of the review was the determination of whether the report is still a reasonable indication of tax increment to be generated and, as such, is suitable for presentation to the Fiscal Review Committee which has been convened as part of the redevelopment plan adoption process. In our opinion, the report still presents an "order of magnitude" portrayal of revenues which could be generated in the proposed Project. we are not aware of any new information which would require that we update the assump- tions or findings of the report. A substantial reason why no changes are required, however, is the highly speculative nature of the findings of the report. It is our understanding that, with the exception of the Arden development which is already underway, realization of all of the developments described in the report is dependent upon the installation of the flood control im- provements contemplated as part of the redevelopment activities in the Proj- ect Area. Also, because of the extended build -out period required for reali- zation of all the developments, there is little certainty as to their actual implementation or the faithfulness of their final forms to those assumed in the report. These uncertainties are disclosed in the report. If the specu- lative nature of the estimates is recognized, the report remains useful for the current, preliminary analyses being conducted by you and the Fiscal Re- view committee. In addition to the general caveat expressed above, we also wish to point out that the determination of bonding capacity included in the report may need updating. The assumed interest rate of 9.5% is currently available only to the strongest of tax allocation (tax increment) bond issues - primarily those having bond insurance as additional security for the bond holders. Unless the La Quinta issue could demonstrate comparable security, the inter- est rate on the bonds, if sold today, would probably be higher and the re-- suiting proceeds would be less than the amount shown in the report. Katz HoMs Coren a nssoaates, lrtG Fhanclal Consultants The Ovlatt Bulking 617 Soulh Olive Suite 710 Los Angeles, CA (213)629.3065 Sail Lake City, UT (801) 485-5151 San Frandsoo, CA (415) 788-0360 KatzHollis Mr. Frank Usher City of La Quinta November 7, 1983 Page 2 Inclusion of a bonding capacity determination in the report may obscure a funda- mental enigma regarding the implementation of the La Quinta Redevelopment Project. The sale of the bonds assumes that the anticipated development is underway and generating tax increment. However, the flood control improvements which are to be funded from the proceeds of the bond must be in place before the developments can get underway. The resolution of this "chicken or the egg" dilemma will be the major component of the implementation plan for the Project. Please call if you have any questions. Sincerely, RATZ, HOLLIS, COREN & ASSOCIATES, INC. 0/wrence J Arceneaux, Jr. L7A/mm 4 Kat: HOW. Caen e Ka tz H®D 1, s & Associates. IIX Financial Consultants The Ovmatt Budding 617 South Olive Suite 710 May 26, 1983 - Los Angeles. CA 90014 (213) 629 3M Mr. Frank Usher City Manager City of La Quinta Post Office Box 1504 La Quinta, California 92253 Dear Mr. Usher: Pursuant to our letter agreement with the City of La Quinta, we are pro- viding a tax increment projection and bond feasibility analysis for a _----- potential redevelopment project. This projection and analysis is based on information provided by the City and representatives of developers with projects within the proposed redevelopment area. The projections are limited to the increases in property tax values generated by the major developments identified by City staff and the developers. Those developments are the "Kennedy Ranch" and the "Hack Land" by Landmark Land Development Corporation,"Desert Gardens" by Ridgeway Ltd. and "Santa Rosa Cove" by the Anden Corporation. Much of the proposed deve- lopment is at this time in the conceptual planning phase and subject to - -- - change. The Schedule of Development provided as Table I, is based on change. the best information available at this time and should in no way be in- — - - terpreted as a representation that any of the proposed development will actually take place, or take place as scheduled. — — - - General Assumptions 1. Limited Taxable Value Increases - Taxable value increases are assumed to result from only the specifically identified new developments. No provision has been made to increase the value of real property annually by the maximum of two percent as permitted by Article XIII A of the Califor- nia Constitution. 2. Tax Rates - The tax rate has been limited to $1.00 per $100 of Taxa- ble value. 3. Dollar Value - All values are given in 1983 dollars. - - — 4. Land Values - All major land purchases are assumed to be complete and on the tax rolls by the 1983-84 base year. 5. Absorption Rates for Housing - Housing units are assumed to be sold by the lien date following construction. To the extent that units re- main unsold beyond those periods there would be an adverse impact on the amount of value added to the roll in any given year. Given the volume of housing units being added, slower absorption rates would not be unusual. 11 E 11 Katzlio➢lis Mr. Frank Usher City of La Quinta May 26, 1983 Page 2 Development Assumptions 1. Landmark Land Development Corporation "Kennedy Ranch" - The Kennedy Ranch is a 1600 acre parcel located adjacent to but outside the current boundary of the City of La Quinta. In order for development in this area to generate revenue for a La Quinta redevelopment proj- ect, the area would either have to be annexed into the City, or authorized as part of the project by Riverside County in accordance with Section 33213 of the Health and Safety Code. For purposes of this. projection, it is assumed that the Kennedy Ranch area will be part of the redevelopment project area. The proposed developments for the Kennedy Ranch area include: a. Four golf courses of 18 holes each, with a taxable improvement value of $1,026,000 each. Each golf course is to be started in the fall and com- pleted within 18 months. Fifteen percent of the total improvement value for each course is assumed to be added to the property tax rolls on the March 1st following the start of construction, with the remainder of the value to be added the following March 1st. The golf courses are currently scheduled to begin construction in 1983, 1984, 1986 and 1988. b. Club House - A 33,000 square foot clubhouse to be developed in conjunc- tion with the first golf course, with construction commencing in October of 1983 and completed by March 1, 1985. Total taxable improvement value of $2,475,000, with 15 percent of the value on the property tax rolls by March 1, 1984, and the remainder on the rolls by March 1, 1985. C. Hotel - A 600 room Class A hotel to begin construction in October, 1988 and be complete by October, 1990. Total improvement value of $50,400,000, with 15 percent of the value on the property tax rolls by March 1, 1989, 75 percent by March 1, 1990, and the remainder by March 1, 1991. d. Housing - Beginning in November of 1984, a minimum of 300 condominium housing units will be constructed each year for 15 years, with the units com- pleted, sold and added to the property tax rolls the March 1st 16 months fol- lowing the start of construction. The average unit cost is expected to be $200,000. Less estimated existing land values, the value added to the property tax rolls is assumed to be $198,000 per unit. The 'Hack Land" - The Hack Land development consists of a residential devel- opment on 193.8 acres surrounding an existing golf course. There are a total of 1,218 lots in the development. in accordance with the Developer's proforma, Katzllollis Mr. Frank Usher City of La Quinta May 26, 1983 Page 3 a total of 345 lots will be developed as residential units, with an average sales price of $280,000. Less existing land values, the value added to the property tax rolls is estimated to be $260,000 per unit.. It is anticipated that 57 units will be built, sold and added to the tax rolls by March 1, 1985, 84 units by March 1, 1986, 104 units by March 1, 1987, and 100 units by March 1, 1988. There will be 137 lots sold as developed lots,, 32 priced at $60,000 each and 105 at $100,000 each. Deducting for existing :Land values, the aver- age value for all of the lots added to the property tax rolls for each lot is $72,000. Thirty-seven lots are expected to be sold and added to the property tax rolls by March 1, 1986, 50 lots by March 1, 1987 and the remaining 50 by March 1, 1988. An additional 736 undeveloped lots are to be sold for multi- family and residential units. The total value added to the property tax rolls for these lots, after deducting estimated existing land values, is $2,000,000. Four hundred lots are expected to be sold and change ownership prior to March 1, 1986, 168 prior to March 1, 1987, and another 168 prior to March 1, 1988. only increases in land value have been added for developed and undeveloped lots. To the extent that these lots are further developed with structures, additional value would be added to the property tax rolls. 2. Ridgeway Ltd. "Desert Gardens" - The Ridgeway development would take place on a 524 acre parcel known as the "Ahmanson Farm" located in the eastern portion of the City. This development in particular has not been finalized as to sche- dule or specific types of development, and may be subject to significant changes. The developments listed represent the developer's "best guess" at this time as to the types of developments. a. A 27 hole golf course with a total added improvement value of $1,500,000. Construction would start in March of 1984 and be complete prior to March 1, 1986. Forty percent of the value is assumed to be on the property tax rolls by March 1, 1985 and the remainder by March 1, 1986. b. Hotel - A Class A hotel of 100 rooms and a total improvement value of $8,400,000. Construction commences on March of 1984 with completion by March of 1986. Forty percent of the improvement value to be added by March 1, 1985, and the remainder by March 1, 1986. c. A Spa and Athletic Club - As per the developer, the estimated improve- ment value to be added to the property tax rolls is $4,500,000, with 40 per- cent on the rolls by March 1, 1985 and the remainder by March 1, 1986. 11 KatzHollis Mr. Frank Usher City of La Quinta May 26, 1983 Page 4 d. Health Club - A 10,000 square foot health club with an estimated im- provement value of $680,000, with 40 percent added to the property tax rolls by March 1, 1985 and the remainder by March 1, 1986. e. Restaurant, Club, Lobby- A 50,000 square foot multi -use facility in- cluding a restaurant, clubhouse and lobby area. The estimated improvement value is $3,750,000, with 40 percent added to the property tax rolls by March 1, 1985 and the remainder by March 1, 1986. f. Meeting Room - A 10,000 square foot meeting roam building with an es- timated improvement value of $500,000, 40 percent of which would be on the property tax rolls by March 1, 1985 and the remainder by March 1, 1986. g. Condominiums - A 600 unit condominium development to take place in AM three phases of 200 units constructed each year, starting in March of 1984. The average selling price of each unit is expected to be $200,000. After deducting for existing land values, $187,000 in value is expected to be added to the property tax rolls for each unit. Sixty percent of each phase will be added to the March 1st following the commencement of construction, with the remainder of the values being added the following March 1st. 3. Anden Corporation The Anden Corporation is currently underway with a 648 unit condominium development built around existing golf courses. As of February of this year, 89 units had been completed. The prices on the concominiums range from $143,000 to $318,000, with the average price being $200,000. Less an estimated existing land value, the average value added to the property tax rolls is $180,000 for each unit. The value for 94 units is expected to be added by March 1, 1984, 75 units by March 1, 1985, 76 units by March 1, 1986, 100 units by March 1, 1987, 100 units by March 1, 1988, and 114 units by March 1, 1989. Tax Increment Projection For purposes of the tax increment revenue projection, it, is assumed that the project will be adopted with a 1983-84 base year. Subsequently, only devel- C k opment believed to be added to the tax rolls after March 1, 19* has been included as part of the revenue projections. The revenues have Seen calcu- lated on a conservative basis in that no provision has been made for increases in value due to reassessment of properties upon changes of ownership or for other developments within the project area. Additionally, only the one per- cent tax rate has been utilized, which understates tax revenue. E Kau lollis Mr. Frank Usher City of La Quinta May 26, 1983 Page 5 As indicated on Table I, incremental tax revenues of $174,000 are first generated in the project in 1984-85, and increase significantly each year. Table II indicates the net revenue available to the Agency after deducting 20 percent of the gross tax increment revenue to be set aside for low and moderate income housing as required by Section 33334.2 of the Health and Safety Code. Based on the net revenue available, it appears that there will be sufficient revenues generated by the developments to support a tax allocation bond issue. Bond Feasibility Analysis Based on the net revenues available, it appears that the 1985-86 tax incre- ment could support a bond issue yielding net bond proceeds in the amount of $3,918,000 (see Schedule I), and that the 1986-87 tax increment could sup- port a bond issue yielding net bond proceeds in the amount of $12,219,000 (see Schedule II). Revenue flows in later years could support significantly larger bond issues, and, depending upon the level of commitment of the pro- posed developments, it is possible that significantly larger bond issues could be supported in the early years of the project. Depending on the amount of bond proceeds required, and the time when such pro- ceeds would be needed, there are several alternative bond scenarios that the City may wish to consider. If the bond proceeds are required prior to or early in the development schedule, the following alternatives are suggested: 1. If the flood control improvements can be constructed and funded in phases, it may be possible to issue more than one series of bonds, with each additional series issued as funding is required. This approach has the ad- vantage of limiting the Agency's exposure on any individual issue, and add- ing to the security of the issue in that it would not require a future commit- ment to proceed with a development. The disadvantage of this alternative is that it reduces the available bond proceeds by additional issuances costs. It is also possible that it may be more difficult to issue future series due to uncertainties in future bond and real estate markets and legislative deci- sions. 2. Provide for a bond issue in 1984-85 sized on the revenues to be ge- nerated in a future year. An example of this approach is provided on the bottom of Schedule II. In this example, bond proceeds are used, along with tax increment, to fund two years of debt service. The advantage of this al- ternative is that only one bond issuance may be necessary. The disadvantage is that it would require firm future commitments on the part of the developers to carry out their projects as scheduled and it raises some question as to the marketability of such bonds in today's market. , - El KatzHolfis Mr. Frank Usher City of La Quinta May 26, 1983 Page 6 3. A third alternative would be the issuance of a short term bond anti- cipation note, not to exceed three years, to be taken out by a tax allocation bond issue. The advantages of this alternative is that the notes could be prepared and sold earlier, some potential early savings on interest costs, and the provision of future flexibility when issuing the tax allocation bonds. The disadvantage, like alternative two, is the level of commitment by devel- opers to future development may be greater than what is feasible today. Conclusions Having prepared the above analysis, it is our conclusion that within three years of adoption revenues generated from the identified proposed development could support a tax allocation bond issue to fund up to $10 million in flood control improvements. This conclusion is based on the premise that a rede- velopment agency is created, a redevelopment project area established and a redevelopment plan.approved, and the portion of the project area outside the current city boundaries is included in the project area, and all these activ- ities occur before the end of 1983. We note that there is legislation pending (AB 1545) that would significantly change the legal requirements for establish- ing a redevelopment project of the nature of the project contemplated by La Quinta. We offer no opinion that the rather ambitious development and marketing plan assumed in our analysis can be implemented as planned. This concludes our services under the letter agreement. Please call me if you have any questions. Should the City proceed with the proposed redevelop- ment project, we would welcome the opportunity to offer future assistance. Sincerely, KATZ, HOLLIS, COREN & ASSOCIATES, INC. WL C' C0"^cKt^B> Martin C. Coren MCC/so Enclosures C!I El m ��a g �s�"�$�0. o.r MNsnxs� n o�wp al nO� m � mn� o� n ..gym♦ nn „ O n M � w N � ! n ! N N N ^ r M N N q N � N O O N N p q 0 v � � m n ♦ ri m N n N �+ q N O S O w m r � m A ry ♦ n m N M r q q n 00 w m ry v m N r I N N r N N . O O rvl T N .Ni YNt O N ry O r ♦ O N V N N N p N O v O S O ! r mryi i m0 r n N N N p v N O O N O r r e o O V m m n H n n n n n M O M q N g �01n NOoaO$ r♦ m 0 n N 0 0 O li . m q ♦ N n N n n r li1 n p n p n. 0 3 m n lMwmC q `tl«j.171 m m ♦ow r ry ♦ M I7 M M ry A •1 p ry ! r w ry p M M N N T _ ✓ r wrwwi 4>i 3 0 w a 00 a • gQQg ✓ � w � a a a � M � � g .•r � ppp;111 p� � YY� �Y� .1 a� ��'J m .1 �J C� e� a ��.e1 S+p Ye � C 'Y tlO .■pO,1 e• 052683 �I J Table II City of La Quinta Proposed Redevelopment Project TAX INCREMENT REVENUES AVAILABLE (000's Omitted) Tax Increment Less Housing Net Revenues Revenues Set -Aside Available 1984-85 $ 174 $ 35 $ 139 1985-86 799 160 639 1986-87 2,426 485 1,941 1987-88 4,039 808 3,231 1988-89 5,427 1,085 4,342 1989-90 6,453 1,291 5,162 1990-91 7,508 1,502 6,006 1991-92 8,378 1,676 6,702 1992-93 9,122 1,824 7,298 1993-94 9,866 1,973 7,893 1994-95 10,610 2,122 8,488 1995-96 11,354 2,271 9,083 052683 rl i i ARL Schedule I City of La Quinta Proposed Redevelopment Project BONDING CAPACITY OF 1985-86 TAX INCREMENT 1985-86 Tax Allocation Bond Issue Incremental Tax Revenue Less: 20% Housing Set -Aside 25% Coverage Net Amount to Size Bond Issue Gross Bond Issue (25 yrs, 9.5%) Less: 5% Discount Issuance Cost Sub -Total Less: One Year's Debt Service in Reserve Fund Net Bond Funds Available $160,000 128,000 241,000 150,000 $ 799,000 288,000 S 511,000 $4,820,000 391,000 $4,429,000 511,000 53,918,000 052683 Schedule II City of La Quinta Proposed Redevelopment Project BONDING CAPACITY OF 1986-87 TAX INCREMENT 1986-87 Tax Allocation Bond Issue Incremental Tax Revenues Less: 20% Housing Set Aside 25% Coverage Net Amount to Size Bond Issue Gross Bond Issue (25 yrs., 9.5%) Less: 58 Discount Issuance Cost Sub -Total Less: 1 Year's Debt Service in Reserve Fund Net Bond Funds Available 1984-85 Tax Allocation Bond Issue sized on 1986-87 Revenues (Above) Net Revenues after provision for Reserve Fund Less: 2 Year's Funded Interest Plus: 2 Years Tax Increment Net Bond Funds Available $485,000 388,000 733,000 150,000 S 2,426,000 873,000 $ 1,553,000 14,655,000 883,000 13,772,000 1,553,000 §12,21�9,000 $12,219,000 2,784,450 9,434,550 778,000 $10,212,550 KatzH®llis Part %I. NEIGHBORHOOD IMPACT REPORT Section 33352(1) of the Community Redevelopment Law (CRL) requires the preparation of a neighborhood impact report if a redevelopment proj- ect contains low or moderate income housing. The purpose of the report is to describe in detail the impact of the project upon the residents of the project area and surrounding areas, in terms of relocation, traffic circulation, environmental quality, availability of community facilities and services, effect on school population and quality of education, property assessments and taxes, and other matters affecting the physical and social quality of the neighborhood. The neighborhood impact report is also to include: (a) the number of dwelling units housing persons and families of low or moderate income expected to be destroyed or re- moved from the low and moderate income housing market as part of a rede- velopment project; (b) the number of persons and families [households] of low or moderate income expected to be displaced by the Project; (c) the general location of housing to be rehabilitated, developed, or construct- ed pursuant to Section 33413 of the California CRL; (d) the number of dwelling units housing persons and families of low and moderate income planned for construction or rehabilitation, other than replacement hous- ing; (e) the projected means of financing the proposed dwelling units Aft for housing persons and families of low and moderate income planned for construction or rehabilitation; and (f) a projected timetable for meeting the plan's relocation, rehabilitation and replacement housing objectives. Because the Project Area contains dwelling units housing persons and families of low or moderate income, a neighborhood impact report is included herein. Due to the overlapping among the data required in the Environmental Impact Report, the Method or Plan for Relocation, the Physical, Social and Economic Conditions in the Project Area and the Neighborhood Impact Report - all of which are contained in this Report to City Council - cross-referencing is employed in order to reflect the most comprehensive data source and to avoid repetition where possible. A. Impact on Residents in Project Area and Surrounding Area 1. i and Services The Environmental Impact Report ("EIR"), contained in Part VIII of this Report to City Council, presents information on the potential Project impacts upon residents of the Project Area and the surrounding areas, in terms of relocation, traffic circulation, environmental quali- ty, availability of community facilities and services, and other matters affecting the physical and social quality of the neighborhood. Part II of this Report to Council, "Description of Physical, Social and Economic Conditions Existing in Project Area," also presents pertinent information MW I IJ M In izHollis concerning the above -named impacts to Project residents and adjoining neighborhoods. There are 1,982 occupied dwelling units and an estimated 5,451 persons residing in the Project Area. (This figure assumes an average of 3.00 persons per dwelling unit.) Future Project Area development will occur within areas now vacant or as in -fill development within the Cove area. Current plans do not envision land acquisition by the Agency except for public improvement purposes. The Agency is prohibited from using eminent domain to acquire residentially zoned property without the owner's permission. Any displacement which occurs as a result of Agency redevelopment activities would be mitigated by the relocation payments, advisory assistance, and replacement housing plan requirements imposed on the Agency, as described in detail in Part IV of this Report to City Council and in Part XI.B. below. 2. School Population and.Quality of Education The Project Area is served by the Desert Sands Unified School District, the Coachella Valley Unified School District, and the Coachella Valley Community College District. There are presently no schools locat- ed within the City or Project Area. Students are bussed to schools in other communities. A new elementary school to be located somewhere within the Cove area is the secondary planning stage by the Desert Sands District. The Desert Sands District has advised that its existing facili- ties are housed to capacity, that future enrollment increases from new residential development would have serious impact upon its facilities, and that the district has no current financial resources to provide additional school facilities. The district proposes a mitigation fee be paid by future developers in the amount of $628 per dwelling unit. Proposed and pending Project Area developments are summarized in the Draft EIR contained in Part VIII of this Report to City Council. The phasing of such new developments is presumed to occur over a 20-year period. The lengthy time period involved will tend to soften the impact of new developments on the affected school districts. If mitigation fees are collected, or if other mitigation measures are provided (such as developer/school site donations), then the potential impact of new resiential developments will be less. If the concerns expressed by the Desert Sands Unified School District cannot be addressed or mitigated, then the quality of education within the district may be adversely affected. (XI-2) KatzH011is 3. Property Assessments and Taxes in general the taxable valuations of property within the Project Area and adjoining the Project Area should increase as construction or reconstruction of public and other development improvements occurs. The Assessor may increase property valuations at the maximum rate of two per- cent per year allowed under Proposition 13, regardless of Project -related actions. In cases where property changes hands, the Assessor will likely assess the property at the newly recorded market value. Additionally, the Assessor will reassess the added value to property and improvements due to any new development or rehabilitation which occurs. Overall property values and tax -related impacts will be less for properties located farther away from the specific development activities inside the Project Area. The only other matters potentially affecting property taxes in the Project Area and surrounding areas would be the possibility of additional levies due to special assessment districts. There are no proposals for such districts at this time. A parcel evaluation would be undertaken at a later date should it be desired to create a special assessment district within the Project Area. It should also be noted that special assessment districts for various legally permitted purposes may be established by the City where feasible irrespective of whether a redevelopment project is adopted. B. Relocation and Low and Moderate Income Houses 1. Housing Units to Be Destroyed or Removed Specific Agency programs for the implementation of the Redevelop- ment Plan will generally be limited to the provision of public improve- ments and facilities, although some direct Agency land assembly may occur. Because of the Redevelopment Plan's prohibition against using eminent domain for residential land assembly, the number of dwelling units housing persons and families of low or moderate income expected to be destroyed or removed from the low and moderate income housing market by the Agency as part of the Redevelopment Project, if any, is not anticipated to be large. The Agency would be required to construct, develop or rehabilitate, or cause the construction, development or rehabilitation of, dwelling units equal in number to those destroyed or removed from the low and moderate income housing market as a result of Agency -assisted activities. Additionally, 20% of Project tax increment revenues received by the Agency must go to the provision of low and moderate income housing unless certain findings are made by the City Council in accordance with the California Community Redevelopment Law. 1 KatZH®flis 2. Projected Residential Displacement When actual displacement is contemplated, if at all, household relocation surveys will be undertaken in accordance with the Agency re- location rules and regulations. Until then, the actual number of house- holds eligible to receive Agency relocation benefits and assistance will not be known. However, as noted earlier, few of these displacements are anticipated to be the direct result of Agency activities. The Agency is required to conduct individual household surveys in order to determine the number, type and location of comparable replace- ment housing units and the required number of referrals thereto prior to displacement of any persons of low or moderate income. See Part IV of this Report to City Council for an overview of the steps in the reloca- tion process that must be undertaken by the Agency prior to displacing any person(s) or family(s). 3. Number and Location of Replacement Housin The specific number and type of replacement housing units required pursuant to Section 33413 of the California CRL, if any, are not known at this time. Most or all of, any such units constructed would be pro- vided within the Project Area. The City Council and the Agency will make findings necessary to provide such housing outside the Project Area and within the City, if necessary. If the Agency acquires property, enters into a Disposition and Development Agreement, Participation Agree- ment or other agreement, or undertakes any other activities requir- ing or causing the destruction or removal of housing units from the low- and moderate -income housing market, the Agency will provide the housing required pursuant to Section 33413 of the CRL. Although it is unlikely for the Agency to be directly responsible for removing dwelling units in the Project Area, if any such removal should happen, then dwelling units would be required to be constructed, rehabilitated, or developed by the Agency. The actual number of replacement dwelling units to be provided for in this manner would depend upon the specifics of actual Agency - related development requirements which are unknown at this time. 4. Number and Location of Low and Moderate Income Housing Planned Other than Replacement Housing The specific number and type as well as the location of low and moderate income housing units planned for construction or rehabilitation other than replacement housing units is not known at this time. The Agency presently has no plans to develop such units itself. As required by Section 33413 of the CRL, at least 15 percent of all new or rehabil- itated units developed within the Project Area by public or private entities or persons other than the Agency shall be available at afford- able housing cost to persons and families of low and moderate income. KatzH®llis E Of such 15 percent, not less than 40 percent thereof shall be available at affordable housing cost to very low income households. As permitted by Section 33413, these requirements will be applied in the aggregate to the Project Area as a whole, and not to each individual case of rehabili- tation, development, or construction of dwelling units. 5. Financing Method for Replacement Rousing Requirements The Agency will employ as necessary any of the methods outlined in Part III of this Report to City Council to meet replacement housing requirements and other obligations under the Redevelopment Plan and Community Redevelopment Law. Not less than 20 percent of all taxes which are allocated to the Agency pursuant to Section 33670 of Article 4 of the CRL shall be used by the Agency for purposes of increasing and im- proving the supply of low- and moderate -income housing available at af- fordable housing cost to persons and families of low or moderate income, unless certain findings prescribed in the law are made. In instances in which the Agency plans to enter into a Disposition and Development Agreement or Participation Agreement or other agreement wherein substantial private benefit to the party(s) to the agreement(s) are to be realized, if any, the Agency may consider requiring in such agreement(s) that all or portions of the replacement housing and/or relocation costs be assumed and paid to the Agency by such benefiting private persons(s) or entity(ies). 6. ect If replacement housing is to be provided pursuant to Section 33413 of Article 9 of the CRL, the Agency shall take necessary steps to cause the construction, rehabilitation or development of such housing in accor- dance with the time limits prescribed by law. The relocation plan(s) prepared by the Agency for a particular development activity shall contain schedules to insure comparable re- placement housing is available in accordance with the requirements of the CRL and the State Relocation Guidelines. E 11 11 KatzH®llis Part XII. ANALYSIS OF REPORT t FISCAL OFFICER AND SUMMARY OF TAXING AGENCIES A. Analysis of Report of County Fiscal Officer The report of the Riverside County Auditor -Controller (fiscal officer) on Project Area taxable values and revenues was submitted on November 3, 1983. A copy of the Auditor -Controller's report, as well as a report of the State Board of Equalization, dated November 1, 1983, de- tailing the state -assessed public utility values within the Project Area, is included in Part IX of this Report to City Council. The Audi- tor -Controller supplements his report with a report of projected taxable value and tax increment financing for the Project. Area. Included in this supplemental report is a projected fiscal impact. on affecting taxing entities utilizing a $61,970,000 plan limitation on tax allocations. Both the regular report and the supplemental report were distri- buted by the Auditor -Controller at the fiscal review committee hearing held on November 7, 1983. A copy of the supplemental report is included in the fiscal review committee section (Part X) of this Report to City Council. 1. Assessed Valuation of Project Area Property The base year (1983-84) full cash valuation of all property within the La Quinta Redevelopment Project Area, as reported by the County Auditor -Controller and the State Board of Equalization, is $208,891,151. A breakdown of this figure between the secured and un- secured tax rolls, and between locally and state assessed property is seen on Table XII-1. 2. First Year Taxes Available to Agency The Auditor -Controller's report is augmented by a six -year pro- jection of revenues which would be allocated to the Redevelopment Agency upon Project adoption (included in Part X of this Report to City Coun- cil). The Community Redevelopment Law requires this information to be provided for the first year such monies will be available, broken down by taxing agency and based upon data supplied by the Redevelopment Agency. The supplemental report of the County Auditor -Controller de- viates from these requirements, since the projection is based upon an assumed fifteen percent annual taxable value growth rates rather than on information provided by the Agency. No indication is given in the supplemental report of the Auditor - Controller as to the determination of the fifteen percent growth. It is ® probable that the Project Area has not historically, experienced the high degree of economic growth assumed by the Auditor -Controller. It would ap- lu 1'L KatzH®Ilis Table XII-1 La Quinta Redevelopment Agency La Quints Redevelopment Project BASE YEAR (1983-84) FULL CASH VALUES OF PROJECT AREA Total Secured Roll Locally Assessed $207,106,083 State Assessed 1,377,820 Unsecured Roll Locally Assessed 407,248 TOTAL $208.891,151 111483 mmAARl0 Source: Riverside County Auditor -Controller and State Board of Equali- zation Reports on La Quinta Redevelopment Project KatzH®llis would appear that the rate selected by the Auditor -Controller is spec- ulative and as a result tends to inflate the impact on taxing agencies in terms of assumed lost tax revenues. Further, the adoption and implementation of a redevelopment proj- ect does not result in a loss of property tax revenues as inferred by the report of the fiscal officer. Through the use of powers granted under the Community Redevelopment Law, it is anticipated that property tax revenues will be generated which could not have been expected absent the implementation of an active redevelopment project. As a result, much of the revenues shown in the Auditor -Controller's supplemental re- port as constituting a fiscal impact may not otherwise have been avail- able. 3. Property Tax Revenues Derived from Project Area The Auditor -Controller's report details the base year property tax revenue allocated to each Project Area taxing agency from the Proj- ecc Area base year valuation, and the total property tax revenues real- ized by each taxing agency from its respective taxing jurisdiction. Table XII-2 compares Project Area revenues of each entity receiving ® property tax revenues (except the City of La Quints) from the basic $1.00 per $100 taxable value tax rate to the total property tax revenues re- ceived by that entity within its entire jurisdiction. Total property tax revenue estimates for each taxing agency were computed by the Auditor -Controller from original 1982-83 tax charges, reportedly as a result of the unavailability of 1983-84 data. Total revenue for the City of La Quints, was excluded from the Auditor -Controller's computation since the City was not incorporated in time, and thus did not have a 1982-83 tax charge to be reflected and utilized in his report. Of the fourteen taxing agencies identified by the Auditor -Control- ler, one entity will have a significantly high amount of its tax reve- nues generated from the Project Area. The Coachella Valley Recreation and Park District, in total, will receive more than ten percent (10%) of its revenues from the property values in the base year of the La Quints. Redevelopment Project. By comparison, two taxing entities will have less than one percent (18) of their property tax revenue generated within the Project Area. They are identified in the Auditor -Controller's report as the County of Riverside (0.7468) and the Riverside County Superinten- dent of Schools (0.9838). Of the remaining taxing entities, three will have between five percent (58) and ten percent (10%) of their revenue so situated and seven will have less than five percent (58) of their prop- erty tax revenues within the Project Area. As reported by the Auditor -Controller, the combined property tax revenues to be derived by all taxing agencies from the Project Area during (XII-2) �p�r ap-�s 111483 KatzHollis mmAAR10 ® Table XII-2 La Quinta Redevelopment Agency La Quinta Redevelopment Project COMPARISION OF 1983-84 PROJECT AREA REVENUE TO TAXING AGENCY TOTAL 1983-84 REVENUES County of Riverside County Free Library County Structural Fire Protection Supervisorial Road District #4 City of La Quinta(3) Coachella Valley Unified School District Desert Sands Unified School District Coachella Valley Community College District Riverside County Superintendent of Schools Coachella Valley Public Cemetary District Coachella Valley Mosquito Abate- ment District Coachella Valley Recreation and Park District Coachella Valley Water District Coachella Valley Resource Conser- vation District TOTAL Taxing Agency Project Area Total Revenues(1) Total Revenues(2) $67,365,251 $ 502,390 1,956,708 58,934 2,591,840 126,791 209,671 2,698 N/A 137,789 8 Project Area Revenues to Total Revenues (0.7468) (3.0128) (4.8928) (1.2878) 2,347,204 35,070 (1.4948) 11,504,825 755,556 (6.5678) 6,447,353 162,690 (2.5238) 9,018,427 88,608 (0.9838) 115,071 7,263 (6.3128) 827,660 29,674 (3.5858) 435,208 44,615 (10.251%) 3,404,359 122,225 (3.5908) 11,252 830 (7.3768) 106.234.829 52.075.133 (1) Based on Fiscal Year 1982-83 tax charges by taxing entity, unadjusted for delinquencies. (2) Based on Base Year 1983-84 general levy (18), excluding State assessed valuation and debt service. (3) City of La Quinta reflected no 1982-83 tax charge. Source: Riverside County Auditor -Controller. ® 0 KatzH®His the 1983-84 base year from the basic $1 per $100 of assessed value (which represents 100% of taxable value on the tax rolls) is $2,075,133. This figure represents approximately one and nine -tenths percent (1.98) of the combined total amount of property tax revenues all taxing agencies will receive from their respective jurisdictions during the 1983-84 base year. 4. Assessed Valuation Trend The Auditor -Controller's report does not include a summary of the total taxable valuation of the Project Area property for the years pre- ceding the 1983-84 base year, as required in Section :33328 of the Commun- ity Redevelopment Law if requested by the Agency. The La Quinta Rede- velopment Agency did not request such a summary. B. Summary of Consultations with Affected Taxing Agencies Section 33328 of the CRL requires the Agency, prior to the publication of the notice of the joint Agency/City Council public hear- ing, to consult with each affected taxing agency with respect o the pro- posed Redevelopment Plan and to the allocation of tax increment revenues. The joint public hearing is scheduled for November 22, 1983; the date of the publication of the first notice of such hearing was October 24, 1983. on September 6, 1983, in accord with the California CRL, the Agency transmitted a Project boundary Legal Description, a Project Area Map depicting the boundary of the Project Area, and a Statement of Pre- paration of Redevelopment Plan or Amended Redevelopment Plan for the La Quints. Redevelopment Project to the governing bodies of all affected taxing agencies, the Riverside County Treasurer, Assessor, Tax Collector and Auditor -Controller, and to the State Board of Equalization. Included in the letter of transmittal to the governing bodies of affected taxing agencies was an Agency request to advise the Agency of the name, address and telephone number of the official whom should be contacted to arrange for consultations with respect to the proposed Project Redevelopment Plan. As summarized below, the Agency has had discussions and meetings with all affected taxing agencies regarding proposed Project activities and the potential fiscal impact of such activities upon the tax entities. Such discussions are expected to continue, and a supplemental summary of such discussion will, if necessary, be submitted to he City Council for addition to this Report to City Council. on July 25, 1983, a meeting of taxing agency representatives was t held in the La Quinta City Hall. Representatives from the County of Riverside, the Coachella Valley Recreation and Park District, the Coa- chella Valley Mosquito Abatement District, the Coachella Valley Water Dis- tzHo is trict (CVWD), the Coachella Valley Public Cemetary District, and the City of La Quinta attended the meeting. At this meeting, Mr. Lowell Weeks, General Manager and Chief Engineer of the CVWD, explained the need for and nature of flood control facilities in the greater La Quints area. The City Manager of La Quinta explained how the City proposed to use the redevelopment process to help correct this area -wide problem and other blighting conditions in the City of La Quinta. On September 27, 1983, the Agency's Executive Director met with Dr. Kenneth Meburg, Superintendent of Schools for the Desert Sands Uni- fied School District. The use of developer fees was discussed as a means of alleviating potential fiscal impact of the Project as outlined in a letter from the district to the La Quinta City Manager dated July 25, 1983. Discussions with the Desert Sands Unified School District continue. on September 27, 1983, a representative of the Agency met with Mr. John Richards, Secretary/Superintendent of the Coachella Valley Public Cemetary District. Mr. Richards expressed concern regarding the impact of redevelopment projects on district revenues, and stated that such projects tend to increase the cost of burying the poor. Mr. Richards did not explain how this increase is brought about, nor did he request any action by the La Quinta Redevelopment Agency to alleviate such pur- ported impact. On August 4, 1983, the Agency and the City of La Quinta entered into an agreement with the County of Riverside which provides in part that prior to the County's final approval of the Redevelopment Plan for the La Quinta Redevelopment Project, the Agency and the City shall en- deavor to present to the County a method to be used in a "pass through" agreement whereby the County and all public agencies representd by the County's Board of Supervisors shall be reimbursed a mutually agreeable percentage of their prorata share of tax increment allocation occuring from the Project Area for the life and term of the Project. on November 1, representatives of the Agency met with representa- tives of the County to discuss terms of the "pass through" agreement. County representatives have requested additional information from the Agency regarding future potential tax increment revenues and other in- formation. Agency representatives will provide such data and plan to continue working toward drafting the necessary "pass through" agreement. Katz ®IIIS DECLARATION PURSUANT TO GOVERNMENT CODE SECTION 7550 This Report to City Council for the La Quinta Redevelopment Project is prepared pursuant to an Agreement for Services by and between the La Quinta Redevelopment Agency and Katz, Hollis, Coren 6 Associates, Inc., dated , 1983, which Agreement provides for services involving preparation of certain reports and documents and the coordination of Agency staff activities. Total compensation under terms of the Agreement for Services is Nineteen Thousand Dollars ($19,000), including out-of-pocket expenses. Compensation for staff coordination services is payable at specified hourly rates.