HomeMy WebLinkAboutSLO Homeless TIF Credit Conclusion - Tim BochuI’ve reviewed the issue of trip generation and the City’s Transportation Impact Fee program for the
CAPSLO Homeless Center. Here are my conclusions:
Conclusion:
We can support a recommendation that the Council give the Homeless Center a full crediting of their
Citywide Transportation Impact Fees ($72,300) as part of the full dedication of the right of way for
Elks Lane realignment. This dedication will be used as part of the future Prado Road/US 101
Interchange project.
We have yet to establish a full funding program for the Prado Road interchange project. The project
will still need to satisfy Condition of Approval #16 and enter into an agreement to participate in a
future funding program for the Prado Road Interchange, if one is established. Additional credit for the
ROW dedication for Elks will help offset those future fees.
Project Trip Generation and TIF Calculation.
George Garcia estimates that the facility will have a maximum of 110 Beds based upon current
design.
While trip generation rates for this type of use are not frequent, the City of San Diego has identified a
trip generation rate for this type of facility as 2 trips/bed for their average daily trip (ADT).
We concur that this trip rate would be adequate for assessing new trips associated with the project.
Therefore new trips for Fee Calculation purposes would be:
110 Beds X 2 trip/bed = 220 Trips per day
The current Citywide Transportation Impact Fees is $335/trip therefore the potential TIF Amount
for the project would be:
220 trips X $335/trip = $72,300
Prado Road Interchange Sub Area Fee
As discussed before, the City has yet to establish a full funding program for the Prado Road
Interchange project. The subject property that the Homeless Services Center is occupying is part of a
larger group of parcels that have been discussed as needing to participate in a contribution fee area
due to its close proximity to the interchange location.
As part of project approval the City established condition of approval #16 which states:
16. Prior to commencement of construction the project shall either:
a. Pay a fair share participation of the Prado Road Interchange/Overpass project to the
satisfaction of the Director of Public Works; or
b. Enter into an agreement with the City to pay a future fair share amount or participate
in other public financing program toward the Prado Road Interchange/Overpass as
adopted by the Council.
The City has yet to establish a full financing program for the Prado Road Interchange. Part of the
Interchange project is contained within the Citywide TIF program. This component of the project is
for collection of funds from projects not in close proximity to the interchange.
It is anticipated that the City will develop a Sub Area Fee program similar to that established for the
Los Osos Valley Road Interchange that will collect contributions from development projects in close
proximity to US 101/Prado Road. The subject property is anticipated to be part of a Sub Area Fee
program.
Elks Lane Dedication Offset
Elks Lane set aside for dedication to the City is estimated at 38,768 sq. ft. (G. Garcia email dated 6‐9‐
2015). Part of this roadway would have been required for improvement as part of development of
the Center except they are being deferred because the final elevations and geometrics of the
interchange are not yet determined.
Although the former property owner discounted the 40 Prado property cost as part of selling the
property to RTA/CAPSLO, the cost of the property dedication of ELKS lane can be used as credit to
offset City transportation fees.
The purchase price for the property was $2,250,000 and was for approximately 437,120 sq. ft. for
the two parcels acquired. This results in a per footage cost of approximately $5.15/sq. ft. which is
consistent with amounts paid for other right of way in the vicinity.
$2,250,000/437,120 sq. ft. = $5.15/sq. ft.
Utilizing the area dedicated for Elks Lane these results in a potential value for the land to be
dedicated to the City of:
$5.15 X 38,768 = $199,550
This amount would fully offset the calculated Citywide TIF fees required to be paid by the project.
The remaining value would have likely been required as part of dedication and improvement of the
roadway as part of project approval.
Potential Prado Road Sub Area Fee
The City has yet to establish a full funding program for the Prado Road Interchange project. Pursuant
to COA #16 the project is required to participate in any funding program established by the City to
help fund the interchange.
Applying the Citywide TIF credit to the offsetting valuation of the Elks Lane dedication leaves
$127,250 that may be used to offset these future fee obligations.
$199,550 ‐ $72,300 = $127,250 (can be used to offset future fee requirements)