CC Resolution 1995-063^"I" IL
RESOLUTION 95-63
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF LA QUINTA APPROVING A FIRST
AMENDMENT TO DISPOSITION AND
DEVELOPMENT AGREEMENT BY AND
BETWEEN LA QUINTA REDEVELOPMENT
AGENCY AND BUILDING HORIZONS
WHEREAS, the La Quinta Redevelopment Agency the Agency") and Building
Horizons the Developer") entered into a certain Disposition and Development Agreement, dated
as of September 30, 1994 the DDA") for the disposition and development of certain private and
public improvements within the La Quinta Redevelopment Project the Prcject"); and
WHEREAS, the Developer and the Agency are proceeding to perform their respective
obligations pursuant to the DDA; and
WHEREAS, the Developer and the Agency desire to enter into a first amended DDA
to modify the DDA with respect to the Agency Assistance and the definition of the tAffordable
Housing Cost" which the parties agree will create more favorable terms for the moderate income
purchaser in the form attached hereto as Exhibit A" incorporated herein, which constitutes the First
Amendment"); and
WHEREAS, the approval and execution of the First Amendment will facilitate the
orderly completion of improvements by the Developer as contemplated in the DDA and in
flirtherance of the Redevelopment Plan for Project Area No* I the Redevelopment Plan"); and
WHEREAS, the Agency is authorized to use tax increment revenues to increase,
improve, and preserve the community's supply of low- and moderate-income housing available at
affordable housing cost pursuant to Health and Safety Code Section 33334*2 and
WHEREAS, the Agency and the City Council of the City of La Quinta have conducted
a duly noticed joint public hearing regarding the proposed acquisition and disposition of real property
in accordance with California Health and Safety Code Sections 33431 and 33433; and
WHEREAS, the staff report pertaining to the First Amendment, which has been on
display prior to the joint public hearing in accordance with Section 33433 of the California Health
and Safety Code Section 33433, contains a detailed description of the provisions of the Amendment;
NOW, THEREFORE, the City Council of the City of La Quinta does resolve as
follows:
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Resolution 95-63
Section 1 The First Amendment is exempt under the California Environmental Quality
Act pursuant to California Code of Regulations Section 15303(a) due to the fact that the project
consists of construction of two residential units on two previously existing lots.
Section 2. The City Council flirther finds and determines that: a) the approval of the
First Amendment will promote the objectives of the Redevelopment Plan and promote the health,
safety and welfare of the citizens of the City of La Quinta; b) the Amendment is consistent with the
orderly development of the improvements to be provided by the Developer pursuant to the DDA; and
the Amendment provides for the enhanced ability for moderate income individuals to purchase a
newly developed unit to increase the community's supply of moderate units pursuant to Health and
Safety Code Section 33334.2.
Section 3. The City Council approves the First Amendment in the form of Exhibit A".
PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta City
Council held on this 13th day of July, 1995, by the following vote, to wit:
AYES: Council Members Cathcart, Perkins, Sniff, Mayor Pena
NOES: *one
ABSENT: Council Member Bangerter
ABSTAIN: None
City of La Quinta, California
AT E T:
AUNDRA L. JU A, City Clerk
City of La Quinta, California
APPROVED AS TO FORM:
DAWN HONEYWELL, *ity Attorney
City of La Quinta, California
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EXHIBIT"A"
FIRST AMENDMENT TO
DISPOSITION AND DEVELOPMENT AGREEMENT
BY AND BETWEEN
LA QUINTA REDEVELOPMENT AGENCY
AND
BUILDING HORIZONS
THIS FIRST AMENDMENT 9'First Amendment") is entered into this day of
1995, by and between the LA QUINTA REDEVELOPMENT AGENCY Agency")
and BUILDING HORIZONS Developer").
RECITALS
WHEREAS, the Agency and the Developer entered into a Disposition and Development
Agreement, dated September30, 1994 the DDA"), a copy of which is on file as a public record with
the City Clerk of the City of La Quinta and which is incorporated herein by reference; and
WHEREAS, the Agency and the Developer desire to amend the DDA with respect to the
Agency Assistance and the definition of the Affordable Housing Cost" which the parties agree will
create more favorable terrns for the moderate income purchaser.
AGREEMENT
NOW, THEREFORE, the Agency and the Developer do hereby agree to amend the DDA as
follows:
Section 1. Amend subsection 201(u) of the DDA relating to 1Agency Assistance" to read
as follows:
ii) Agency Funds for the Construction Loan in an amount not to exceed
$85,000 for each of the housing units shall be dispersed according to a combination
of a construction schedule and invoice documentation to be approved by the Agency
Executive Director pursuant to the Construction Promissory Note and repayment
secured by the Construction Deed of Trust Attachrnent Nos. 6 and 7) respectively).
The dispersements may exceed the individually budgeted categories but in no event
may the total dispersement per house exceed $85,000.
Secti on 2. Amend the first paragraph of subsection 201 iii) of the DDA relating to
Agency Assistance" to read as follows:
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iii) Home Buyer Assistance flinds which shall be in the form of a second
trust deed loan to assure the affordability of the housing unit to moderate income
buyers as defined in Section 401 hereof in an approximate amount not to exceed
TwentyThousand Dollars $20,000) pursuant to the Buyer Promissory Note and
Second Trust Deed Attachment Nos. 8 and 9).
Section 3. Amend the fffst paragraph of subsection 401(2)(a) of the DDA relating to the
definition of Affordable Housing Cost" to read as follows:
a) Affordable Housing Costit shall be that purchase price which would
result in maximum monthly housing payments for a thirty 30) year mortgage for that
portion of the purchase price which is to be paid in the form of loan proceeds under
currently prevailing mortgage loan rates or the interest rate of any below-market
mortgage program for which such purchaser has obtained a first trust deed loan, for
the moderate income group calculated pursuant to Health and Safety Code Section
50052.5, which sets forth the following formula:
Section 4. Amend the first paragraph of subsection 4(A)(1,) of the Buyer Promissory Note
Attachment No.8 of the DDA) relating to the definition of Affordable Housing Cost" to read as
follows:
a) Affordable Housing Cost" shall be that purchase price which would
result in maximum monthly housing payments for a thirty 30) year mortgage for that
portion of the purchase price which is to be paid in the form of loan proceeds under
currently prevailing mortgage loan rates or the interest rate of any below-market
mortgage program for which such purchaser has obtained a first trust deed loan, for
the moderate income group calculated pursuant to Health and Safety Code Section
50052.5, which sets forth the following formula:
Section 5. Amend item 6 of the Hypothetical Example on the Maximum Sales Price
Illustration Attachment No.12 of the DDA) to read as follows:
6. Down payment on house a minimum of 3% of Sales Price.
Section 6. This First Amendment and the provisions of the DDA which remain in effect
collectively cQnstitute the Amended DDA." The Amended DDA integrates all of the terms and
conditions of agreement between the parties, and supersedes all negotiations or previous agreements
between the parties with respect to the subject matter hereof.
Section 7. Each of the parties hereto warrants and represents to the other that it has the
full power and authority to enter into and execute this First Amendment, that all authorizations and
approvals required to make this First Amendment binding upon such party have been obtained, and
that the person or persons executing this First Amendment on behalf of such parties has been fully
authorized to do so.
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The effective date of this First Amendment shall be the date of execution by the Agency*
1995 REDEVELOPMENT AGENCY OF THE
CITY OF LA QUINTA
By:
STANLEY SNIFF, Chairman
ATTE ST:
SAUNDRA L. JUHOLA, Secretary
APPROVED AS TO FORM:
Dawn C* Honeywell
Agency Counsel
BUILDING HORIZONS
By:
Its:
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