1995 09 19 RDA Minutes LA QUINTA REDEVELOPMENT AGENCY
MINUTES
September 19, 1995
Regular meeting of the La Ouinta Redevelopment Agency was called to order by Chairman Sniff.
PRESENT: Board Members Bangerter, Cathcart, Pena, Perkins, Chairman Sniff
ABSENT: None
CONFIRMATION OF AGENDA Confirmed
APPROVAL OF MINUTES
MOTION It was moved by Board Members Perk Perkins/Cathcart to approve Minutes of August 1,
1995, August 15, 1995, and September 5, 1995 as submitted. Motion carried unanimously.
PUBLIC COMMENT None
BUSINESS SESSION
1. CONSIDERATION OF A HOUSING AGREEMENT WITH THE BUILDING
HORIZONS/BOYS & GIRLS CLUB FOR THE OF TWO
HOMES.
Board Member Bangerter abstained due to a conflict of interest and left the dais.
Mr. Herman, Community Development Director, advised that in 1994, the Agency
approved a pilot project with the Boys & Girls Club through the Building Horizons
Program wherein two lots in the Cove were purchased and a zer?interest construction loan
of $210,000 for two single-family homes was authorized. Upon sale of the homes the
difference between $2?0,000 and the amount needed to assist in low or moderate-income
home buyers would be provided and could range up to $40,000 per unit. This year's
Agreement will provide a loan of $210,000 to Building Horizons whose responsibilities
will be as follows: purchasing two construction lots, constructing and selling two, 1,200
sq ft. minimum single-family homes at affordable housing costs to low and/or moderate-
income households, ensuring the affordability covenants for a minimum of 30 years, and
repay the Agency loan less approximately $40,000 per unit. He advised that the Agency's
current policy requires the sale of at least one of the pilot-program units prior to the
release of additional funds and neither unit has been sold. However, during Closed
Session the Agency will be considering a request from Building Horizons to modify the
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original DDA which will help expedite the sale of the units. He advised that the Agency's
continued participation in this program needs to be decided as students have already been
enrolled through the School District, Adoption of the Agreement would allow the
Executive Director to fine tune" and execute the Agreement after all discussions are
completed.
Board Member Cathcart understood that the requirement was for one of the homes to be
in escrow.
Mr. Herman understood that the escrow has to be closed.
Ms. Honeywell, Legal Counsel, advised that that would be up to the discretion of the
Agency.
Mr. Herman advised that the Agency would not be responsible for acquiring lots or
monitoring the construction under the proposed Agreement.
Ms. Honeywell advised that the $210,000 loan would go directly into the escrow for
acquisition of the lots and the remainder of the funds would be applied to the construction.
In response to Board Member Cathcart, Mr Spevacek, Consultant with Rosenow Spevacek
Group, advised that potential buyers have been discussed, but they won't qualify unless
modifications are made to the existing policy that will allow more flexibility.
Mr. Herman advised that a public hearing would be necessary to modify the Disposition
and Development Agreement DDA) and the earliest that it could be agendized would be
the second meeting in October.
Board Member Cathcart felt that action on this matter should be postponed until after the
Closed Session.
Ms, Honeywell advised that the Agency could decide that it wants to move forward with
the new project and not include the same condition on the new DDA.
Board Member Pena advised that staff is asking for direction regarding the new DDA,
There have been changes in the real estate market that weren't previously anticipated and
a modification would make the policy more flexible.
Mr. Genovese, Executive Director, advised that this matter would have been agendized
for a future meeting after this evening's Closed Session had taken place, but it was brought
as a Business Session item this evening to possibly enable the program to move forward.
He advised that the Agency could reconvene and take action on the current DDA after the
Closed Session discussion if they wish. The current DDA was agendized for Closed
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Session discussion because of its policy implications on the DDA presently under
consideration.
Member Pena questioned the contractural relationship between Building Horizons and
the School District.
Ms. Lucia Moran, P.O. Box 1305, urged the Council to change the existing Agreement
from moderate to low/moderate-income households to allow the program to move forward.
She advised that there are people in the low/moderate-income range that are interested in
the properties.
Mr. Jim Ducatte, 81-750 Crown Way. Indio, felt confident that they can sell the homes
if certain modifications are made in the Agreement He explained that in the agreement
between the School District and the Boys & Girls Club, the School District gives the Boys
& Girls Club access to the students and the Boys & Girls Club is responsible for the
balance of the program. He advised that the School District gives the students credit for
the program and they are in the process of asking the District for financial assistance,
Mr. Richard Crockett, owner of La Quinta Properties, spoke about the sales and
technical aspects of the program. One of two potential buyers is categorized as a
moderate-income buyer, but it's difficult to make that income work for this price range
of home. He advised that the DDA requires a 3% down payment and it's very difficult
for low-income households to pay $6,000 to $7,000 down. He understood the intent to
get the homebuyer vested in the property, but stated that it's difficult to find buyers.
There are lenders available who will make loans with smaller down payments.
Board Member Perkins agreed that the initial down payment is difficult for some to make.
In response to Board Member Cathcart, Mr. Ducatte advised that lots have been identified
fo? this year's program.
The Agency concurred on continuing this matter until after the Closed Session.
a
2. TRANSMITTAL OF TREASURER'S REPORT DATED June 30, 1995 AND JULY
31, 1995.
MOTION It was moved by Board Members Cathcart/Pena to receive and file the
Treasurer's Reports dated June 30, 1995 and July31, 1995. Motion carried unanimously.
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CONSENT CALENDAR
1. APPROVAL OF DEMAND REGISTER DATED AUGUST 15, SEPTEMBER 5, AIND
SEPTEMBER 19, 1995.
MOTION It was moved by Board Members Cathcart/Bangerter that the Consent
Calendar be approved as recommended. Motion carried unanimously.
DEPARTMENT REPORTS
1 TRANSMITTAL OF REVENUE & EXPENDITURES REPORT DATED JULY 31,
1995.
MOTION It was moved by Board Members Cathcart/Perkins to receive and file the
Revenue & Expenditures Report dated July 31, 1995. Motion carried unanimously.
CHAIR AND BOARD MEMBERS' ITEMS None
PUBLIC HEARINGS None
The Agency recessed to Closed Session.
CLOSED SESSION
A. Conference with real property negotiator Mr. Thomas Bienek pursuant to
Government Code Section 54956.8, instructing the negotiator concerning concept,
terms, and site planning for the property located at the northeast corner of Adams
Street and Avenue 48.
B. Conference with real property negotiator pursuant to Government Code Section
54956.8 regarding the sale of Agency-owned property located at 53-880 Avenida
Villa.
C. Conference with real property negotiator Mr. Carlos Vigon pursuant to Government
Code Section 54946.8, instructing the negotiator concerning property acquisition for
the property located at the southeast corner of Calle Tampico and Eisenhower Drive.
D. Conference with real property negotiator concerning property located at 53-165 and
53-185 Eisenhower drive, pursuant to Government Code Section 54956.8, instructing
the negotiator concerning an amendment to the DDA. Negotiator: Boys & Girls
Club/Building Horizons.
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E. Conference with real property negotiator concerning the sale of real property located
at the northwest corner of Avenue 48 and Dune Palms Road. Negotiator: Desert
Sands Unified School District. Instructing the negotiator concerning price and terms
of payment for the acquisition of the property pursuant to Government Code Section
54956.8.
F. Conference with real property negotiator concerning property located on Calle
Tampico, west of Washington Street, pursuant to Government Code Section 54956.8,
instructing the negotiator concerning an amendment to the DDA negotiator: E. G.
Williams Development Company.
Agency reconvened.
Ms. Honeywell, Legal Counsel, announced that the Agency concluded a Closed Session under
Government Code Section 54956.8 concerning a potential amendment to the Building Horizons
Disposition and Development Agreement and directed staff to bring back the proposed amendment
for consideration after proper noticing proposed amendments are as follows.
1. That both low and moderate-income buyers are to be eligible.
2. That the requirement for a 3% down payment be deleted and that they be allowed 100%
financing.
3. That the promissory note and second trust deed be modified to conform to the Agency's
newer form of second trust deed financing program documents.
BUSINESS SESSION....................continued
1. CONSIDERATION OF A HOUSING AGREEMENT WITH THE BUILDING
HORIZONS/BOYS & GIRLS CLUB FOR THE CONSTRUCTION OF TWO
HOMES.
Board Member Bangerter continued to abstain on this matter due to a conflict of
interest and left the dais.
MOTION It was moved by Board Members Perkins/Pena to approve an Affordable
Housing Agreement with Building Horizons with amended language from Page 5 deleting
B-I re: certain number of units to be sold prior to funding these new units. Motion carried
with Board Member Bangerter ABSENT.
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There being no further business The Agency 13Board was adjourned
SAUNDRA L. JUHOLA OLA, Secretary
La Quinta Redevelopment Agency
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