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HomeMy WebLinkAboutREDcodronph3council mEmoaandu mI► city of san tu>fs omspo,administaatlon Oepaatmen t DATE : September 3, 201 0 TO : City Counci l FROM : Michael Codron, Acting Assistant City Mana g SUBJECT : Tract 2707 Fee Request (Item PH-3 ) The attached letter was recently received from Watt Companies, the developer of Tract 2707 , also known as the Laurel Creek Subdivision . The developer is requesting that all fee amounts fo r the project be frozen for the duration of the project . Currently, vested rights are set to expire on December 7, 2010, and fees associated with construction permits submitted after that date woul d be levied at current rates . Staff is aware that a representative of Watt has contacted individual Council Members regardin g this situation, and the purpose of this memo is to inform the Council that a written request ha d been submitted to staff, and that a response is being prepared . A copy of the staff reponse will b e provided to the City Council when it is completed . Staff also wants to make it clear to Council Members that this fee request is completely unrelate d to Item PH-3 on the September 7th Council agenda . As noted on Page PH-3-2 of the agend a packet, approval of an amending map does not change any expiration dates . As a result, th e Council's decision on this item will have no effect on fees . /44142 C:Pye-COUNCI LEr-G,48 G~'lCwt AF,A©ErATTORNE Y *eon DCLERK/ORI GqDEPT HEAD S`R Pl b{iir~`'TbMt(~ T1Lcg-uwE rte: 5 u Cc i?N, s '-ry rvw,e G:\StafCodron\CAR\memos\Tract2707fees(memo).do c RED FILE MEETING AGENDA DAT % ITEM #Pf-O C~i'CDD DI RO"FIN DI RB-FIRE CHIE Ff3-PW DI R [POLICE CH FEfrRECDIRC~UTIL DI R EI-HR DI R RECEIVE D SEP 0 3 2010 SLO CITY CLERK August 17, 201 0 Tim Girvi n Chief Building Officia l City Of San Luis Obisp o 919 Palm Street San Luis Obispo, Ca 9340 1 Mr . Girvin , Per the recommendation of the City Manager's office,this letter formerly submits a request to the Building and Safety Department that freezes all City of San Luis Obisp o fees at the amounts required when Tract Map 2707 was recorded for the duration of th e project . As you are well aware, when the vesting rights of Tract Map 2707 expire, th e development will be subject to the fees at today's rates . Through a quick calculation , when the rights expire, approximately $1,815,690 .49 will be added to the cost of th e project in Building and Safety and other impact fees, the highest of which is the Wate r Impact Fee that will add $5,708/unit . With today's economic climate in mind, we have lowered the price of our homes and ar e still experiencing a very slow sales rate . This, coupled with a large fee increase, wil l slow the pace of development and may stop development altogether . The projec t makes less sense to build-out as we lose more money and the cost to build continues t o increase . I am aware that City staff is preparing a report to the City Council about this situatio n and how it may affect us and other builders as well . I am also aware that the answer to my request will most likely need to come from the City Council . Will you please proces s this request letter in order to put it in a position where the council can make a decision ? Thank you for assistance in this matter . Sincerely, cc : Michael Codron, City Ma ager Offic e WATT COMMUNITIE S 2716 Ocean Park Boulevard, Suite 2025, Santa Monica, California 90405 0h : 310 .314 .2400 fx : 310 .450 .380 2 www .wattcommunities .com