HomeMy WebLinkAboutWathen Castanos-JP Holdings, LLC Escrow Documentation 5.21.24 ReadyOId Republic Title Co. of St. Louis, Inc.
AVILLA RANCH PROJECT ; Code: 11562
BALANCE SHEET
Printed By: Megown, Joe
Mon, May 2A,2024:4:08 PM
Page:1
Order Date:
Location:
Bldg Type
Lender
Address:
Owner
Address:
0510312023 Closing Date: 00/00100
AVILLA RANCH PROJECT
SAN LUIS OBISPO, CA
Sq Ft: 0 Garage:
CITY OF SAN LUIS OBISPO
AVILA RANCH DEVELOPERS, INC
Type Ck # Date Party
Address
Telephone:
Fax:
Telephone:
Fax:
VndrVoucher# Voucher Deposit Balance
D 140439
D 140444
D ftA441
D 140446
D 140445
D 140447
D 140443
D 140440
D 140442
c 34086
D 141548
D 141547
D 141549
D 141545
D 141546
D 141550
D 141895
D 143548
D 144755
D 145231
D 146289
D 147',159
D 148353
05/03/23
05/03/23
05/03/23
05/03/23
05/03/23
05/03/23
05/03/23
05t03t23
05/03/23
05119t23
06121t23
06t21t23
06121t23
06t21t23
06t21t23
06121t23
07to6t23
09t20123
11t17t23
12t11t23
ozt02t24
03t19t24
05t16t24
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2,840.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0,00
1 ,136,000.00
19,000.00
19,000.00
19,000.00
19,000.00
19,000.00
19,000.00
19,000.00
19,000,00
0.00
19,000.00
19,000.00
19,000.00
19,000.00
19,000.00
19,000.00
266,000.00
266,000.00
171,000.00
152,000,00
152,000.00
247,000.00
190,000.00
1,136,000.00
1,155,000.00
1,174,000.00
1,193,000.00
1,212,000.00
1,231,000.00
1,250,000.00
1,269,000.00
1,288,000.00
1,285,160.00
1,304,160.00
1,323,160.00
1,342,160,00
1,361,160,00
1,380,160.00
1,399,160.00
1,665,160.00
1,931,160.00
2,102,160.00
2,254,160.00
2,406,160.00
2,653,160.00
2,843,160.00
CITY OF SAN LUIS OBISPO
AVILA RANCH DEVELOPERS,
AVILA RANCH DEVELOPERS,
AVILA RANCH DEVELOPERS,
AVILA RANCH DEVELOPERS,
AVILA RANCH DEVELOPERS,
AVILA RANCH DEVELOPERS,
AVILA RANCH DEVELOPERS,
AVILA RANCH DEVELOPERS,
OLD REPUBLIC TITLE
AVILA RANCH DEVELOPERS,
AVILA RANCH DEVELOPERS,
AVILA RANCH DEVELOPERS,
AVILA RANCH DEVELOPERS,
AVILA RANCH DEVELOPERS,
AVILA RANCH DEVELOPERS,
AVILA RANCH DEVELOPERS,
AVILA RANCH DEVELOPERS,
AVILA RANCH DEVELOPERS,
AVILA RANCH DEVELOPERS,
AVILA RANCH DEVELOPERS,
AVILA RANCH DEVELOPERS,
AVILA RANCH DEVELOPERS,
oro |6lslfor: AVILLA RANCH PROJ 2,840.00 2,846,000,00
Old Repuhlic Title Co. of St. Louis, lnc.AVILLA RANCH PROJECT ; Code: 11562Breakdown DescriptionPayee / StatusOriginalBudgetVndr Vchr # lnvoiceChange CunentBudgetAmounlLine ltem DetailPrinted By: Megown, JoeMon, May 20,2024:4:O8 PMPage:4Payments Made Remain BudgetBreakdown CodeCheck / Date00610062006300640065006600670068006900700071007200730074007500760077007800790080LOT 135LOT 137LOT 138LOT 139LOT 140LOT 141LOI 142LOT 143LOT 144LOT 145LOT 146LOT 147LOT 148LOT 149LOT 150LOT 151LOT 152LOT t53LOT 154LOT 15519,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.0019,000.00'19,000.0019,000.0019,000.00{9,000.0019,000.0019,000.000.000.000.000.000.000.000.000.000.000.000.000.000.000-000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.00
OId Repuhlic Title Co. of St. Louis, Inc.Line ltem DetailPrinted By: Megown, JoeMon, May 2A,2024: 4:08 PMPage:5AVILLARANCH PROJECT ; Code:11562Breakdown Code Breakdown Description Original Budget Change Cunent Budget Payments Made Remain BudgetCheck/ Date P"V"" / S0081 LoT 164 19,000.00 0.00 19,000.00 0.00 19,000.000082 LOT 165 19,000.00 0.00 19,000.00 0.00 19,000.000083 LOT 166 19,000.00 0.00 19,000.00 0.00 19,000.000084 LOT 167 19,000.00 0.00 19,000.00 0.00 19,000.000085 LOT 168 't9,000.00 0.00 19,000.00 0.00 {9,000.000086 LOT 169 19,000.00 0.00 19,000.00 0.00 19,000.000087 LOT 170 19,000.00 0.00 19,000.00 0.00 19,000.000088 LOT 171 19,000.00 0.00 19,000.00 0.00 19,000.0099999 DISBURSING FEE 2,840.00 0.00 2,840.00 2,840.00 0.00Paid CK# 34086 on 05/19/23 OLD REPUBLIC TITLE df 2,840.00.- Totalfor: AVILLA RANCH PROJ1,674,840.000.00 1,674,840.002,840.00 1,672,000.00
WGP
DEVELOPERS
May 3,2024
VIA Email: ttwav@slocitv.org
Timothea Tway, Community Development Director
Community Development Depa rtment
City of San Luis Obispo
919 Palm Street
San Luis Obispo, California 93401
VIA Email: di ohnson@slocitv.org
Derek Johnson, City Manager
City Manager's Office
City of San Luis Obispo
990 Palm Street
San Luis Obispo, California 93401-
Re: REVISED BUIIDING PERMIT FEES P AID UNDER PROTEST AN D NOTICE TO CURE
Applications for Building Permit
Property Owner: Avila Ranch Developers, lnc.
Builder: WCP Developers, LLC
Project: Tract Map 3089 Phase 1, Avila Ranch, San Luis Obispo, CA
[ots: Lots 154,155, L64-I71'
Dear Ms. Tway:
As you know, Avila Ranch Developers, lnc. and WCP Developers, LLC (collectively
"Developers")are the owner and developer, respectively, of Tract Map No. 3089 Phase 1, the
first phase of the 72o-unit Avila Ranch project ("Avila Ranch").
As you also know, the City of San Luis Obispo ("City") has issued building permits for the
construction of residential dwelling units at Avila Ranch; and, Developers have been paying,
under protest forthe reasons setforth herein,the development impactfees being assessed with
each of those permits.
On March 28,2023, under the threat of litigation, Developers and the City entered that
certain Tolling and Escrow Agreement, thereby tolling all Claims, as the term is defined therein
for the Term of the Tolling Agreement. Pursuant to the Tolling Agreement, the Parties agreed to
establish an escrow account with Old Republic Title Company ("Escrow") for the purposes of
2505 Alluvial Avenue . Clovis, CA 93611 ' t (559) 432-8181
License #1035148 . Broker License #02055906
depositing those portions of the development impact fees which are in dispute. To that end, the
Parties agreed that the City would deposit the sum of Sl-,1-35,000.00 into the escrow,
representing that portion of fees previously paid by Developers under protest. The Parties also
agreed that Developers would deposit 519,000.00 of the total fees required with each
Application for Building Permit submitted concurrently with this letter (the "Permit
Applications")intothe same Escrow, representingthose portions of the following development
impact fees imposed by the City: Water, Wastewater, TIF Avila LOVR Subarea Single Family
Residential, TIF LOVR Base Fee (SF); Police Citywide Base Fee {SF) and Fire Citywide Base Fee (SF)
being paid under protest (collectively "Contested Fees"). Additionally, to the extent that
Developers are entitled to fee credits, the City would apply those fee credits againstthe fees
owed for each building permit, calculated based only upon uncontested fee amounts.
Developers are now submitting applications for ten (L0) additional building permits ([ots
154, 155 and t64-171, inclusivel and with this letter Developers provide the City with notice,
pursuant to Section 66020 of the Government Code, that Developers aretendering a portion of
the Contested Fees under protestl:
lot 154 12273 sll
Amount
Total Fees Before TIF Credits s6s,319.0e
Credit for Uncontested Portion of TIF Avila LOVR Subarea SFR (s2,640.68)
Credit for Uncontested Portion of TIF LOVR Base Fee (SF)(S 10,e77.s3 )
Deposit for Contested Portion of All DlF, including contested
portion of TIF
{s 1e,ooo,oo)
Adjusted Admin. Fee Re DIF (S1Bs.o8)
Balance Due with Permit $32,515.80
1 Note that because Developers originally submitted applications for the above described lots in 2022,the City has
applied the fees amounts in effect lr:'2022.
* Receipt forDeposit into Escrow attached hereto.
Lot 155 (1900 sf)
Total Fees Before TIF Credits s64,298.21
Credit for Uncontested Portion of TIF Avila LOVR Subarea SFR ($2,640.68)
Credit for Uncontested Portion of TIF LOVR Base Fee (SF){S 10,977.s3)
Deposit for Contested Portion of All DlF, including contested
portion of TIF
(s1s,000.00)
Adjusted Admin. Fee Re DIF (S 18s.08)
Balance Due with Permit 53L,494.92
2
Lot 154 (1811 sf)
Total Fees Before TIF Credits S64,04s.11
Credit for Uncontested Portion of TIF Avila LOVR Subarea SFR (S2,640.68)
Credit for Uncontested Portion of TIF LOVR Base Fee (SF)(510,977.s3)
Deposit for Contested Portion of All DlF, including contested
portion of TIF
(519,000.00)
Adjusted Admin. Fee Re DIF (S18s.08)
Balance Due with Permit $31,245.82
Lot 155 (1708 sf)
Total Fees Before TIF Credits s53,ss2.90
Credit for Uncontested Portion of TIF Avila LOVR Subarea SFR ($z,o+o.os1
Credit for Uncontested Portion of TIF LOVR Base Fee (SF)($ 10,e77.s3 )
Deposit for Contested Portion of All DlF, including contested
Portion of TIF
(s 19,000.00)
Adjusted Admin. Fee Re DIF (5 rss.oal
Balance Due with Permit s30,749.61
Lot 165 (1900 sf)
Total Fees Before TIF Credits 564,298.2r
Credit for Uncontested Portion of TIF Avila LOVR Subarea SFR (52,540.68)
Creditfor Uncontested Portion of TIF LOVR Base Fee (SF)(s10,977.s3)
Deposit for Contested Portion of All DlF, including contested
Portion of TIF
(S1e,ooo.oo)
Adjusted Admin. Fee Re DIF (S 18s.08)
Balance Due with Permit 531,494.92
Lot 167 (181r sf)
Total Fees Before TIF Credits 564,049.11
Creditfor Uncontested Portion of TIF Avila LOVR Subarea SFR (s2,640.68)
Creditfor Uncontested Portion of TIF LOVR Base Fee (SF)(S10,e77.s3)
Deposit for Contested Portion of All DlF, including contested
portion of TIF
(S1e,ooo.oo)
Adjusted Admin. Fee Re DIF (518s.08)
Balance Due with Permit 531,245.82
Lot 168 11900 sf)
Total Fees Before TIF Credits 564,298.21
Credit for Uncontested Portion of TIF Avila LOVR Subarea SFR (52,e +o.os;
Credit for Uncontested Portion of TIF LOVR Base Fee (SF)($ 10,e77.s3 )
Deposit for Contested Portion of All DlF, including contested
Portion of TIF
(51s,oo0.oo)
Adjusted Admin. Fee Re DIF (s 18s.08)
Balance Due with Permit s31,494.92
3
Lot 169 {1811 sf)
Total Fees Before TIF Credits 564,049.11
Creditfor Uncontested Portion of TIF Avila LOVR Subarea SFR (52,640.68)
Credit for Uncontested Portion of TIF LOVR Base Fee (5F)(510,e77.s3 )
Deposit for Contested Portion of All DlF, including contested
portion of TIF
(S 1s,ooo.oo)
Adjusted Admin. Fee Re DIF (518s.08)
Balance Due with Permit 53L,24s.82
Lot 170 (1811 sf)
Total Fees Before TIF Credits 564,049.Lt
Credit for Uncontested Portion of TIF Avila LOVR Subarea SFR (S2,640.68)
Credit for Uncontested Portion of TIF LOVR Base Fee {SF)(510,977.s3 )
Deposit for Contested Portion of All DlF, including contested
portion of TIF
($ 1e,ooo.oo)
Adjusted Admin. Fee Re DIF (s 18s.08)
Balance Due with Permit $31,245.82
Lot 171 (1708 sf)
Total Fees Before TIF Credits 563,ss2.90
Credit for Uncontested Portion of TIF Avila LOVR Subarea SFR (s2,640,68)
Credit for Uncontested Portion of TIF LOVR Base Fee (SF)($ 10,977,s3)
Deposit for Contested Portion of All DlF, including contested
portion of TIF
(s 1e,000.00)
Adjusted Admin. Fee Re DIF (518s.08)
Balance Due with Permit $30,749.61
ln summary:
1. Total TIF Avila LOVR Subarea SFR Credit Received: 526,406.80
2. Total TIF LOVR Base Fee (SF) Credit Received: 5109,775.30
3. Total Contested Fees Deposited into Escrow: 5190,000.00
4. Total FeesTendered: 531-3,483.06
Pursuant to the terms of the Tolling Agreement, Developers will continue to tender when
due and under protest each Contested Fee as to any and all Applications for Building Permit
subsequently submitted by Developers with respect to Avila Ranch
Statement of Protest
The basis for the objections supporting Developers' protest include the facts and law
placed into the record in the following correspondence to the City:
4
a. The July 5,2022, email correspondence with Shelly Stanwyck, Assistant City Manager,
attached.
b. The September 1, 2O22,letter to David Fleishman, of Richards, Watson & Gershon,
contract counsel to the City, attached.
This statement of protest incorporates the above referenced correspondence and
includes, but is not limited to, the following facts, law, and objections:
1. The City approved Avila Ranch, including the Development Agreement in October
2017. Section 4.01.1 of the October 3, 2OL7, Development Agreement provides:
Except as the Parties may otherwise agree, the rules, regulations and
official policies applicable to the Project and the Property during the Term
of this Development Agreement shall be those set forth in this
Development Agreement and, except as otherwise set forth herein, the
rules, regulations and officialpoliciesof City{including the plans, municipal
codes, ordinances, resolutions and other local laws, regulations, capital
facilities fees and policies of City) in force and effect on the Effective Date
(col lectively, "Applicable Law").
ln the case of the Avila Ranch, the Development Agreement isthe vehicle by which the
development impact fees were imposed on Avila Ranchz.
Sections 5.04.2 (b) and (c)authorize the Cityto adjust these development impactfees
not more than once a year with changes no greaterthan the inflation index identified
upon imposition of the fee. The inflationary index utilized by the City to adjust all fees,
including development impact fees, prior to 2018 was the All Urban Consumer Price
lndex, Los Angeles area (hereinafter, "CPl").
2. On April 3, 2018, the City and Avila Ranch entered into an agreement ("Letter
Agreement"), which was subsequently incorporated into the First Amendment to the
Development Agreement. The Letter Agreement was entered directly in response to
the City's 2018 efforts to update the TIF/LOVR portion of the Capital Facilities Fee
Program.
The Letter Agreementacknowledges thatAvila Ranch had concerns regardingtheCity's
proposed Traffic lmpactFee portion of the 2018 Capital FacilitiesFee Program and its
application to Avila Ranch. ln speaking with Andy Mangano, (1) as noted above, the
TIF and LOVR fee were in flux at the time the Development Agreement was adopted;
(2) in 2013, the City was moving forward with a revision of impact fees and the
2 The Legislative Counsel issued an opinion interpreting "imposed" to mean the actual application of the fee to a particular
development in the course of the approval plocess. (Legislative Counsel Opinion No. 1885 l, July 20, 1998. Additionally' the term
"impoiition of fees" was interpreted by the appellate court to mean that it occurs at the time the local agency requires the fees, not
at the time the fees must b e paid. (Ponderosa Hontes, Inc. v. Cifi, of San Ramon (1994) 23 Cal. App. 4i' 1761.)
5
adoption of the Capital Facilities Fee Program; (3)Avila Ranch was not in agreement
with the methodology and/or assumptions being made with respect to the LOVR Fee
and its application to Avila Ranch (Avila Ranch was being charged more than its
proportionate share);and (4) as a result Avila Ranch was opposing the Traffic lmpact
Fee ("TlF") portion of the Capital Facilities Fee Program ('CFFP").
Notwithstanding its concerns, Avila Ranch agreed not to oppose the TIF/CFFP if the City
and Avila Ranch entered into a binding agreement to implement the terms of the
Development Agreement, that provides, in consideration of Avila Ranch not opposing
the TIF/CFFP, City agreed to complete and present to Council no laterthan August 1,
2018, an AB 1600 nexus study to update the LOVR Subarea Fee taking into
consideration the current land use designations for Avila Ranch.
3. On April 16,2079, the City Council adopted an ordinance (inffoduced on April 2,2}t9l
amending Section 5.04.2 of the Avila Ranch Development Agreement as follows:
(b) fthe Developer shall be required lo pay all Ciry+vide;Airye*4*e+speeifiellar
te+Ss€s-laltef 8€s+€{'OJ-R-}&ter€SasgekPaer.F€es, and Frolect-specifi c
derelopment impact fees, excluding selver and rvater rmpact feeg addressed io
section 5.04.2(c) irnmediatel."* beloi.r'. lor the Project's fair share of the cosf to
mitigate Project impacts as idenilfied in the Final Emironmeotal Impact Repon
(FEIR), Specifrc Plan, condrtions of approral o,r othenvise specified in the
Derrloprnent Agreaneot in effect *'hen each hnal map is recorded in accordance
rrith AB 1600 analysis- Ciry ma;v adjust der'.elopmeal impact fees not more than
once a year wi0r changes no greater tlnn the inJlation iado< identified upon
imposrtron of the fee. The De"eloxr shall be req
Road fLO!T.) Lrrrcfianee lmpact Fees as revired etnerallv cotlsistent rtu'ith the
snoact tbe meihodoloqv srt fort! iB fteApril 3. 2018 letter aEeemetrt belwee$
the C,t-r'e!C-Q$jlgg9l'
Thus, the Airport Area Specific Plan development impact fees were stricken from those
fees imposed on Avila Ranch. While the Los Osos Valley Road (LOVR) lnterchange
lmpact Fees remained an obligation of Avila Ranch, by this amendment, Avila Ranch
agreed to pay a revised fee which was consistent with the terms of the Letter
Agreement.
4. On July 2,20L9, the Council adopted Resolution 1,1029 amending the Los Osos Valley
Road lnterchange lmpact Fee Program, pursuant to the nexus study described in the
Letter Agreement as follows:
6
f
l.
lnfrastructurc Project Prior
fstinratc
Neir
Estimate
Rcason for lnercasc
Orcun & 'l mk F[m Roundlbout
PffP nlject il4
s I,?00,ux)s2.750.000 Projccl sopc incre0sd duc lo manliciFled
drrin{gc affccF ud concsponding dcstgn
changm.
('rlilbnria & Trft Roumhhrut
lligm & Tank Farm lnl. Widcning
PFnP Prciec, flj
s1.500.(100
s2,000000
s L750.0tx)
52J00,000
(bnsrru(r$n & Rrght of \\'nt.. Co$ls tli[lrcI
Thr[ Pr('li[ilnrI Fslinillcs._
Pmjcct scopc ircrc$cd to inclurk dsign
co*ls ps llvilo Rnnch Dmloprunt
Acncncnl.
t.lligucrr: Widcning {tsridge b !lks} &
Sidervillks {vrchcll to Cill Liilits}
I'l:FI' I't|ictr il I _i
t655,0(Xr st $07.68ri !stinrxl.s highcr lhiltr originully anticipitlcd.
I'rrlcct rc,'1.* rncr(,L.ud h) rrchrlr rlcsigl
and righl ol rwy {osls pcr Avrlu Runch
l)sclonDrnl A!rc(rncnt
'lbhl Cost Inercfts: SI.952.il8l{
5. On November 30, 2021., the City and Avila Ranch entered into the Tract 3089 Phase L
Subdivision Agreement as a condition of the City approving the Avila Ranch Phase 1
Final Map.
On page 3 of the Subdivision Agreement, Avila Ranch agreed to comply with the
conditions established by the City Council and pay the fees as indicated in Exhibits 1
and 2 of the Subdivision Agreement. ldentifying "water, wastewater and
transportation" as lmpact Fees, footnote l provides, "All lmpact Fees are adjusted
annually (July 1) based on CPl."
This footnote reaffirmsthe meaning of Sections 5.04.2 (b) and (c) of the Avila Ranch
Development Agreement that (1) the development impact fees identified in the
Development Agreement are to be adjusted once annually by the inflationary index
identified atthe time of imposition; and (2)the inflationary index utilized at the time
of imposition was the CPI (All Urban Consumer Price lndex, Los Angeles area).
6. To properly calculatethe development impact fees applicable to Avila Ranch the City
must look to the Avila Ranch Development Agreement, the First Amendment thereto
and the various subsequent agreements to determine which development impact fees
are applicable to Avila Ranch. The City must then determine the amount of each
applicable fee as of October 3,2OI7, the date Avila Ranch was approved. The City is
then entitled to adjust those fees once annually by the All-Urban Consumer Price lndex,
Los Angeles area. The City has not done so.
7. ln202I, the City issued Avila Ranch building permits for forty-four (44l,singlefamily
dwellingunits. Whilethereissomevariationresultingfromthesizeofeachunit,Avila
Ranch paid the following development impact fees for a single-family residence over
L,400sf :
7
Fee
s 948.40
5 41,,s37.62
*Fire was onlycharged to the fi rst 22of Ihe 44 permits
8. Taking into consideration the agreed upon 2019 modification to the LOVR Subarea Fee
(discussed above), Avila Ranch has determined which impact fees were in place in2OI7
and calculated annual fee increases utilizing the CPl. Based thereon, Avila Ranch
asserts that when the City issued the first 44 Phase l building permits the City
overcharged Avila Ranch the sum of Five Hundred Seventeen Thousand Forty and
26hOO Dollars (5517,O40.26), as detailed below:
.az 5 29,7s4.81 $ Lt,78z.7s 220.so
S qo,soo.zs 741.67 719.O8 257 879.76
Total overpayment 5 517,040.26
+Fire was only charged to the first 22 of the 44 permits
** Based upon the 2019 LOVR Subarea Fee Program update
9. Subsequently, on June 27,2O22, City staff advised Avila Ranch that development
impact fees were being increased, across the board, bV 24.52% utilizing the California
Construction Cost lndex ("CCCl"). The City advised that of July L, 2022, Avila Ranch
would be charging the following development impact fees:
8
Water 5 13,767.02
Wastewater S 12,785.98
Fire*5 676.87
Police 5 794.64
5 2,564.71.LOVR Sub Area
LOVR Base TIF
Fee Paid Should llave Paid OverPaid 44Lots
s 13.767.02 S 12,689.72 s r,o77.30Water
s 12,78s.98 5 4,292.85 S 8,493.13Wastewater
Fire*5 676.87 613.20s s 53.57
s 5 794.64Police5 794.64
LOVR Sub Area (Add On
Fee)**
5 2,s64.17 5 2,357.7s S 206.96
s 1,147.0sLOVR Base TIF (Subarea)**5 10 948.40 s 9,801.3s
First 22 Permits+
Second 22 Permits*
2023
5 5r,722.57
10. ln processing applications for building permits the City has advised that Developers
must pay the following impact fees for Lots L7, 1.8, L9 and 20 prior to the issuance of
the building permits.
Fees Amount
Water 5t3,787.02
Wastewater s12,7Ss.98
TIF Avila LOVR Subarea Single Family
Residentia I
52,s64.7L
TIF LOVR Base Fee (SF)$i-0,948.40
Fire Citywide Base 5o
Police Citywide Base So
Note that the fees being demanded by the City for Lots 17, L8,19 and 20 are not
consistent with the 2022/23 Notice of New Fees and do not include the Police or Fire
Development lmpact Fees.
11. Although the City has not imposed the 202212023 Development lmpact Fees as the
City advised it would do as of July 1, 2022; and, the City is now not imposing the Police
or Fire Development lmpact Fees, the fees being charged for Lots L7,18,19, and 20
are not calculated correctly or consistent with the Avila Ranch Development
Agreement, the April 2O!8 Letter Agreement, the First Amendment to the
Development Agreement or the Tract 3089 Phase 1 Subdivision Agreement.
12. Avila Ranch should only be charged the following development impact fees in the
amounts shown below, receiving a credit of 5561.64 per unit against the Fire
Development lmpact Fee. Note the below fees have been established based on the
fees in place as of October 2017, adjusted annuallyfrom 2017 based upon the CPI:
I
S 17,142.69Water
Wastewater 5 t5,921,.02
5 842.84F ire
Pol i ce S 9s9.49
S g,rgg.ssLOVR Sub Area
LOVR Base TIF s 13,632.95
Fee Amount
Water s r3,692.2L
Wastewater s 4,531.98
Fi re S oor.oa
Police s
LOVR Sub Area (Add On Fee)5 2,s44.0t
LOVR Base TIF (Subarea)s 10,s7s.66
5 32,1os.so
Developers reserve the right to make additional objections as facts, documentation and
information come to light.
Reservation of Rights and
Request for Reimbursement of All Contested Fees Paid Under Protest
Nothing in this letter shall be construed to waive any rights of Developers or consent to
any terms or conditions of the City imposed or included as a matter of course in connection with
Applications for Building Permitor otherwise not specificallyand expressly waived or agreed to
by Developers.
Nothing herein affects or otherwise Developers' assertion that Avila Ranch is due
a refund of Five Hundred Seventeen Thousand Forty and 26/LOO (55L7,040.26) for overpayment
of development impact fees paid with the first forty-four (44) building permits issued. By this
letter, Developers also requests reimbursement of any and all Contested Fees paid to the City by
Developers, and any and all interest or other amounts statutorily or otherwise owed to
Developers relating thereto. (See, e.g., Govt. Code, S 66020 (e).)
Developers reserve all rights to seek further administrative and judicial relief, and all
damages,fees, andother amounts to which itmayentitled under California lawandthe laws of
the United States.
The Disputed Fees Are lnvalid as Unlawful Special Taxes
Because the Contested Fees are being imposed in violation of adopted ordinances (i.e.
the Development Agreement"), the Contested Fees have not been adopted in accordancewith
applicable legislative standards, they are an ad hoc exaction. They thereby "special taxes" rather
than "fees" and are invalid in the absence of the necessary voter approval required by the
California Constitution (Propositions L3, 62, and 2I8; Article Xlll(A), (C) and (D).) (See also,
Government Code 55 50076-50077.\
The Disputed Fees Are Arbitrary and
Deny Due Process and Equal Protection of the Laws.
The disputed fees have been set on an arbitrary basis, without demonstrating a clear and
reasonable connection to legislative authorizations necessarily required for such impositions.
Arbitrary fees or conditions of approval violate constitutional guarantees of substantive due
process. Such arbitrary and discriminatory actions violate constitutional rights to due process of
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law and to the equal protection of the law (Genesis Environmental v. San Joaquin Valley Air
Pollution Control District (2003) 113 Cal.App.4th 597).
Request for Administrative Remedies Exhaustion Confirmations.
Please advise if there are any further administrative remedies that are not presently being
exercisedthatareavailableorwhicharerequiredtobeexhausted priortothecommencement
of legal action.
Conclusion.
We appreciate timely processing of any required permits, as required under Government
Code Section 66020(a)(2), notwithstanding the pendency of the Protest.
Sincerely,
Michael P. Slater
General Counsel
Avila Ranch Developers, lnc.
WCP Developers, LLC
cc:J. Christine Dietrick, City Attorney, via email
David Fleishman, Richards, Watson & Gershon, via email
Vanessa Nicols, via hand delivery
Andrew Skanchy, Downey Brand, via email
Joshua E. Peterson, Avila RanchA&CP Developers, via email
Attac h me nts:
. July 5,2022, Email to Shelly Stanwyck, attached to the September 15, 2022, protest letter and
incorporated herein by reference.
. September 1,2022, Letterto David Fleishman, attached tothe September 15,2022, protestletter and
incorporated herein by reference.
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