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1993 10 05 RDA Minutes LA QUINTA REDEVELOPMENT AGENCY MINUTES OCTOBER 5, 1993 Regular meeting of the La Quinta Redevelopment Agency was called to order by Chairman Pena. PRESENT: Members Bangerter, Mccartney, Perkins, Sniff, Chairman Pena. ABSENT: None CONFIRMATION OF AGENDA Confirmed APPROVAL OF MINUTES MOTION It was moved by Members Bangerter/Sniff that the Minutes of September 21,1993 be approved as submitted. Motion carried unanirnously. PUBLIC COMMENT Roberta Stanford, 51-863 Avenida Obregon, submitted a letter and petition of approximately 700 signatures requesting that the original Phase V plan be completed in its entirety with full street improvements. Donna no last name given), 51-720 Rubio, asked that the installation of curbs and gutters be installed at the time sewers are being installed during the Phase V project instead of waiting another year and tearing the streets up once again. Completing this project street by street would improve the entire City. Audrey Ostrowsky, P.O. Box 351, commented that the residents of the lower Cove are requesting that streetS, curbs, and gutters be added to the Phase V project. Member Sniff directed staff to meet with those who submitted the petition at an early date to discuss this concern Member McCartney noted that there is a budget review coming up in November and he wished to see us look at the current revenue projects to see what we can do to put curbs and gutters into this project. He wished to see staff meet with these individuals to review options. BIB] 07-18-1996-U01 07:50:13AM-U01 RDAMIN-U02 10-U02 05-U02 1993-U02 Redevelopment Agency Minutes 2 October 5, 1993 BUSINESS SESSION CONSIDERATION OF A RESOLUTION APPROVING A SECOND AFFORDABLE HOUSING AGREEMENT COACHELLA VALLEY LAND. Chairman Pena and Member Bangerter abstained due to conflicts of interest and left the dais. Mr. Genovese, Ass't City Manager, advised that the second affordable housing agreement was modeled after the current existing program. This agreement between the Agency, Coachella Valley Land and William Cusack would cause the expenditure of approximately $1,040,000 of the 20% housing set-aside funds over the next five years. There would be 20 moderate income ownership units and 30 very-low income rental units. In response to Member McCartney, Mr. Genovese advised that the Agency would subsidize a maximum of $2,000 per year for each of the 30 rental units for property management and maintenance. This agreement would remain in effect for five years at which time the City would have the option to buy back the homes. The total subsidy for these rental units at the end of the five years at $60,000 per year would be $300,000 maximum for five years. He explained that there would be no return on these funds should we buy the units back for the purpose of keeping these homes in the very low- income category. Council Member Mccartney stated that he would like this to see agreement divided into two agreements one into an ownership agreement that deals with the 20 single-family dwellings which would have a maximum price of $103,000 and the other into a rental agreement. He was supportive of the ownership agreement because homeowners treat homes differently than renters. He expressed his concern about tenants in rental homes knowing that the Agency pays for the maintenance of the units. He felt putting $300,000 into 30 units was excessive and didn't think that the subsidy feature on the rental units makes good economical sense for the Redevelopment Agency. Bill Cusack, General Partner of Coachella Valley Land, commented that this program was originally developed to reduce the Agency's expense in providing housing for very low-income people, which this program did. They had informed the Agency at the beginning that they would need up to 50 units in order to operate economically. He advised that Section 8 tenants are not aware that the Agency is paying for repairs on their units. This program provides for very low-income housing for less money per unit than any other program. He stated that separating the program and eliminating the 30 units would place them in an extremely difficult position, because they have spent a tremendous amount of money based on the basis that this program would go forward. If that portion of the agreement was eliminated, they would be placed in a position to BIB] 07-18-1996-U01 07:50:13AM-U01 RDAMIN-U02 10-U02 05-U02 1993-U02 Redevelopment Agency Minutes 3 October 5, 1993 eliminate the 20 units currently under this program. In response to Member Perkins, Mr. Cusack stated that it was his understanding that at the end of the five years the Agency would purchase these homes. The interest on the money that has been advanced and is accruing and goes toward the purchase of these homes. Effectively at the end of five years, the Agency has a $30,000 down payment on currently priced $103,000 houses. In response to Member Mccartney, Mr. Cusack stated that the $2,000 per unit for maintenance is to protect them from potential loss. They do not make a profit from repairs and maintenance on these homes. They are doing this on behalf of the Agency. Member Perkins felt that the Agency is obligated to continue this program and be supported staff's recommendation. RESOLUTION NO. RA 93-10 A RESOLUTION OF THE LA QUINTA REDEVELOPMENT AGENCY APPROVING A PROPOSED AFFORDABLE HOUSING AGREEMENT BY AND AMONG THE LA QUINTA REDEVELOPMENT AGENCY, COACHELLA VALLEY LAND, A CALIFORNIA LIMITED PARTNERSHIP AND WILLIAM J. CUSACK PERTAINING TO PROPERTY LOCATED WITHIN THE PROJECT AREA OF THE LA QUINTA REDEVELOPMENT PROJECT AND MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH. It was moved by Members Perkins/Sniff that Resolution No. RA 93-10 be adopted. Motion carried with Member Mccartney voting NO and Chairman Pena and Member Bangerter absent. 2. CONSIDERATION OF APPROVAL OF AMENDMENT TO THE CONTRACT SERVICES AGREEMENT WITH STEVENSON, PORTO & PIERCE FOR REDEVELOPMENT AGENCY PROJECT AREA NO.1) AMENDMENT EIR PREPARATION. Mr. Genovese, Ass't City Manager, advised that pursuant to the settlement agreement with the County of Riverside the Agency is proposing to proceed with an amendment to Project Area No.1 rather than proceed with the merger of Project Area No.1 and No. 2. Therefore, the environmental Impact Report relating to the proposed merger needs to be modified making it necessary to amend the existing contract to provide for these services. The current fiscal year budget contains sufficient funds for the remainder of the contract and the proposed amendment of $4' 800. BIB] 07-18-1996-U01 07:50:13AM-U01 RDAMIN-U02 10-U02 05-U02 1993-U02 Redevelopment Agency Minutes 4 October 5, 1993 MOTION It was moved by Members Sniff/Bangerter to approve the amendment to the Contract Services Agreement for the Redevelopment Plan Environmental Impact Report with Stevenson, Porto & Pierce, Project Area No. 1 Motion carried unanimously. 3. TRANSMITTAL OF TREASURER'S REPORT DATED AUGUST 31, 1993. MOTION It was moved by Members Sniff/Bangerter to receive and file the August 31, 1993 Treasurer's Report. Motion carried unanimously. CONSENT CALENDAR 1. APPROVAL OF DEMAND REGISTER DATED OCTOBER 5, 1993. 2. APPROVAL OF SCHEDULE OF ACTIONS AMENDMENT TO THE REDEVELOPMENT PLAN FOR THE LA QUINTA REDEVELOPMENT PROJECT NO.1). 3. APPROVAL OF TERMINATION OF GROUND LEASE BY AND BETWEEN THE LA QUINTA REDEVELOPMENT AGENCY AND THE JOHN W. KOENIG COMPANIES. MOTION It was moved by Members Sniff/McCartney that the Consent Calendar be approved as recommended. Motion carried unanimously. DEPARTMENT REPORTS None CHAIR AND BOARD MEMBERS ITEMS None PUBLIC HEARINGS None BIB] 07-18-1996-U01 07:50:13AM-U01 RDAMIN-U02 10-U02 05-U02 1993-U02 Redevelopment Agency Minutes 5 October 5, 1993 CLOSED SESSION a. Discussion of on-going litigation pursuant to Government Code Section 54956.9(a) La Quinta vs. Banque Audi 111db Case No.63888. The Board reconvened with no action being taken. There being no further bu?iness, the meeting was adjourned. R$)Pec7tfuly> submitted, DRAL<J??LA, Secretary La Quinta Redevelopment Agency BIB] 07-18-1996-U01 07:50:13AM-U01 RDAMIN-U02 10-U02 05-U02 1993-U02