RDA Resolution 1993-02 RESOLUTION NO. RA 93-2
A RESOLUTION OF THE LA QUINTA REDEVELOPMENT
AGENCY MAKING CERTAIN FINDINGS AND APPROVING THE
SECOND AGREEMENT FOR IMPLEMENTATION OF THE
DISPOSITION AND DEVELOPMENT AGREEMENT BY AND
BETWEEN THE LA QUINTA REDEVELOPMENT AGENCY AND
WES DEVELOPMENT COMPANY
WHEREAS, the La Quinta 3**deve1opment Agency hereinafter
referred to as the A*'.-*&cy*) under the provision of the
California Commun*;.t* **d*vPlopment Law, is engaged in
activities nec*r.b*k'* *r the execution of the Redevelopment
Plan for the La Q*.'n'-" Redevelopment Project, as heretofore
amended hereiriafter referred to 85 Project No. 1")'. and
WHEREAS, the Agency is further engaged in activities
necessary for the execution of the Redevelopment Plan for
Project No. 2 of the City of La Quinta, as heretofore amended
Project No. 2"); and
WHEREAS, WES Development Company the Developer") has
entered into an Agreement the Disposition and Development
Agreement" or DDA") with the Agency1 pursuant to the Agency
action taken by *esolution No. RA 92-5 on April 21, 1992; and
WHEREAS, the Developer also has entered into an Agreement
for Implementation of Disposition and Development Agreement
the"Implementation Agreement") with the Agency pursuant to an
Agency minute order action on October 20, 1992; and
WHEREAS, pursuant to the DDA and Implementation Agreement,
the Agency will convey up to thirty-six 36) parcels the
parcels") to the Developer to be developed as single family
detached housing units the units"), and the Developer will
make the units available for sale to Very Low, Lower and
Moderate Income households pursuant to Section 33334.2 of the
California Health and Safety Code and the units will be subject
to long-term affordability covenants; and
WHEREAS, the Agency and the Developer desire to enter into
a Second Agreement for Implementation of the Disposition and
Development Agreement the Second Implementation Agreement")
in order to clarify certain terms of the DDA, to authorize the
Agency to revise the assistance to be given to particular
purchasers of the units, and to authorize the Developer to sell
one unit at a price which is greater than an Affordable Housing
Cost; and
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IL,
RESOLUTION NO. RA 93-2
WHEREAS, the provision of affordable housing is
contemplated by Section 33334.2 and other provisions of the
Community Redevelopment Law and promotes the objectives of the
Redevelopment Plans for Project No. 1 and Project No. 2; and
WHEREAS, the provision of affordable housing pursuant to
the Disposition and Development Agreement and Implementation
Agreement will benefit each of Project No. 1 and Project No. 2;
WHEREAS, the Agency has reviewed the terms of the Second
Implementation Agreement.
NOW, THEREFORE, THE LA QUINTA REDEVELOPMENT AGENCY DOES
RESOLVE AS FOLLOWS:
Sectipnl
The Agency finds and determines that the use of Housing
Funds pursuant to the Disposition and Development Agreement and
Implementation Agreement will be of benefit to Project No. 1.
Se*tion2
The Agency finds and determines that the use of Housing
Funds pursuant to the Disposition and Development Agreement and
Implementation Agreement will be of benefit to Project No. 2.
Section*
The Second Implementation Agreement is hereby approved.
The Chairman of the Agency is authorized and directed to
execute the Second Implementation Agreement on behalf of the
Agency.
Sectipn4
The Chairman and Executive Director of the Agency are
authorized and directed to execute such further documents and
take such further actions as necessary to implement the Second
Implementation Agreement.
ADOPTED this 20th day of April 1993.
La Quinta Rede elopmen ency
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RESOLUTION NO. RA 93-2
I hereby certify that the foregoing Resolution was
duly and regularly adopted by the La Quinta Redevelopment
Agency at a regular meeting thereof held on the 20th day
of April 1993. by the following vote:
AYES: Mr. McCartney, Mr. Perkins & Vice Chairman Sniff
NOES: None
ABSENT: Mrs. Bangerter & Chairman Pena
ABSTAIN: None
Secretary
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RESOLUTION NO. RA 93-2
SECOND AGREEMENT FOR IMPLEMENTATION OF
DISPOSITION AND DEVELOPMENT AGREEMENT
THIS SECOND AGREEMENT FOR IMPLEMENTATION OF DISPOSITION AND
DEVELOPMENT AGREEMENT the Second Implementation Agreement")
is hereby made and entered into by and between the LA QUINTA
REDEVELOPMENT AGENCY, a public body corporate and politic the
Agency"), and WES DEVELOPMENT COMPANY, a California
corporation the Developer"), as of the date set forth below.
RECITALS
A. The Agency and the Developer have entered into a
Disposition and Development Agreement the DDA") dated as of
April 26, 1992, and an Agreement For Implementation of
Disposition and Development Agreement dated October 28, 1992
collectively, the DDA"). Pursuant to the DDA, the Agency
agreed to convey up to thirty-six 36) lots to the Developer,
and the Developer agreed to construct houses on those lots for
very low, lower and low- and moderate-income households.
B. By this Second Implementation Agreement, the Agency
and the Developer desire to clarify certain terms and
conditions of the DDA and to set forth further terms and
conditions consistent with the DDA in order to implement the
terms and intent of the DDA.
NOW, THEREFORE, the parties hereto agree as follows:
1. Sale of Houses at Affordable Housing Cost. The
Developer has proposed to sell six of the Restricted Units to
the following persons at the following prices:
a) 51-925 Avenida Bermudas: Edward Saldivar and
Esperanza Saldivar
Proposed Sales Pr*ce: $108,000
b) 52-848 Avenida Velasco: Cheryl Rigney
Proposed Sales Price: $102,536
c) 52-365 Avenida Navarro: Liza C. Bliss
Proposed Sales Price: $110,217
d) 51-620 Avenida Vallejo: Juan and Yesenia Perez
Proposed Sales Price: $110,217
e) 52-440 Avenida Obregon: Vicente Rodriguez and
Lucia Aguilar
Proposed Sales Price: $110,217
f) 52-185 Avenida Herrera: Felipe C. Ferro
Proposed Sales Price: $110,217
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RESOLUTION NO. RA 93-2
The Developer warrants and represents to the Agency that
Developer has entered a binding agreement with each of the
above persons for the purchase and sale of the identified
houses at the prices set forth above. In addition, prior to
and as a condition precedent to any disbursement of the Agency
Assistance for a particular Restricted Unit, the Developer
shall deliver to the Agency copies of all written documentation
of the original purchase price for that unit which in the
Agency*s reasonable determination supports and evidences such
original purchase price. The Agency consultant, Rosenow
Spevacek Group Inc. the consultant") has determined that each
of the above persons meets the applicable income restrictions
and is qualified to purchase a Restricted Unit under the DDA.
The Consultant has determined that the proposed purchasers of
Restricted Units a), b), c) and d) above are Lower Income
Households, and the proposed purchasers of Restricted Units e)
and f) above are Very Low Income Households. The Consultant
has further determined that, based upon the proposed sales
prices, applicable interest rates and purchaser down payments,
none of the proposed purchases would be at an Affordable
Housing Cost as required by Section 401 of the DDA and Section
50052.5 of the California Health and Safety Code.
Accordingly, the parties agree that the purchase price of
each of the above Restricted Units shall be decreased, and the
amount of Agency Assistance shall be increased, in an equal
amount, so that the purchase price will be set at an Affordable
Housing Cost. Therefore, the parties agree that the sales
prices of each of the above Restricted Units shall be as
follows:
a) 51-925 Avenida Bermudas Saldivar)
Sales Price: $104,625
Agency Assistance: $38,007
b) 52-848 Avenida Velasco Rigney)
Sales Price: $99,102
Agency Assistance: $38,066
c) 52-385 Avenida Navarro Bliss)
Sales Price: $106,758
Agency Assistance: $38,091
d) 51-620 Avenida Vallejo Perez)
Sales Price: $106,758
Agency Assistance: $38,091
e) 52-440 Avenida Obregon Rodriguez-Aguilar)
Sales Price: $106,603
Agency Assistance: $61,636
f) 52-185 Avenida Herrera Ferro)
Sales Price: $108,876
Agency Assistance: $59,361
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RESOLUTION NO. RA 93-2
The parties further agree that the total amount of Agency
Assistance required to be given with respect to other
Restricted Units under Section 201 of the DDA shall be reduced
by the total of increases in Agency Assistance made with
respect to the above six 6) parcels, so that the total amount
of Agency Assistance given is not changed. The amount of such
reductions in Agency Assistance and the identity of the
purchasers to whom the reductions shall apply shall be made in
the discretion of Agency staff, provided that Agency Assistance
to a Restricted Unit may only be reduced to such extent that
the Restricted Unit can still be sold at an Affordable Housing
Cost.
2. Sale of Com*leted House at Greater than Affordable
Housing* Cost. Notwithstanding the requirements of Section 401
of the DDA that the Developer sell all completed houses to Very
Low, Lower and Low- and Moderate-Income Households at an
Affordable Housing Cost, the Developer is authorized but not
required) to sell one house, located at 51-945 Avenida
Bermudas, to any person, regardless of income level, at any
price mutually agreeable to the Developer and the purchaser.
Agency Assistance shall be payable with respect to the purchase
of such parcel only if the purchase is made at an Affordable
Housing Cost to a Very Low, Lower, or Low- and Moderate Income
Household and meets the requirements set forth in the DDA.
Concurrently with the close of escrow for such sale, if the
sale is consummated at greater than an Affordable Housing Cost,
the Developer shall pay the Agency in full all amounts owing
upon the Developer promissory Note executed with respect to
such real property, and the Agency will execute a partial
release of the Developer Deed of Trust which secures such
Developer promissory Note. Furthermore, if such sale is at a
price which is greater than Affordable Housing Cost, the
Developer and the Agency shall execute and acknowledge a
Release of Conditions, Covenants and Restrictions, to be
prepared by Agency Counsel upon seven days notice by Developer
prior to closing escrow, which releases all of the covenants,
conditions and restrictions contained in the Grant Deed and the
Declaration of Conditions, Covenants and Restrictions recorded
with respect to such parcel, except for Sections 2 and 3 of the
Grant Deed with respect to non-discrimination), and the
portion of Section 1 of the Grant Deed which requires that the
parcel be used in accordance with the Redevelopment plan.
3. No Other Changes. Except as provided to the contrary
in this Second Implementation Agreement, the terms of the DDA
shall remain in full force and effect as written. All terms
used herein and not defined herein but defined in the DDA shall
have the meanings given to such terms in the DDA.
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RESOLUTION NO. RA 93-2
IN WITNESS WHEREOF, the parties have executed this Second
Implementation Agreement as of the respective dates set forth
below.
LA QUINTA REDEVELOPMENT
AGENCY, a public body,
corporate and politic
Dated: 1993
Chairman
AGENCY"
ATTEST
Secretary
APPROVED AS TO FORM:
Stradling, Yocca, Carlson & Rauth
Agency Counsel
WES DEVELOPMENT COMPANY, a
California corporation
Dated: 1993 By:
Walter E. Stockinan,
President
DEVELOPER"
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