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HomeMy WebLinkAbout10/21/2025 Item 6i, Tway and Munoz-Morris - Staff Agenda CorrespondenceCity of San Luis Obispo, Council Memorandum City of San Luis Obispo Council Agenda Correspondence DATE: October 21, 2025 TO: Mayor and Council FROM: Timmi Tway, Community Development Director Prepared By: Gabriel Munoz-Morris, Supervising Civil Engineer VIA: Whitney McDonald, City Manager SUBJECT: Item 6i – APPROVAL OF THE FINAL MAP FOR TRACT 3136, BULLOCK RANCH, 3580 BULLOCK LANE (FMAP-0168-2022) - AGENDA CORRESPONDENCE MEMO The following memorandum provides City staff responses to questions received regarding the Bullock Ranch Final Map approval. Staff determined it would be helpful to provide this memo to all Council Members and the public. The questions are below with staff’s response shown in italics: 1. There are 7 affordable units planned as part of this development, 5 medium and 2 low income eligible. Are these intended to be for sale units? If so, with the recent difficulty in finding eligible buyers for medium income, for sale units, did we consider changing the proportion of low vs. medium income units? Is that even a possibility? All affordable housing units in the Bullock Ranch tract will be for-sale units. At this time, it is not possible to amend the affordable housing unit makeup as the affordable housing units were conditioned as part of the project approval. Affordability levels cannot be changed without going back to the City Council to make an amendment to the resolution of approval. That process would be developer-driven and the developer of Bullock Ranch has not indicated that they are interested in requesting this change at this time. The City has also made recent changes to the Below Market Rate Standards to bring pricing for these units in line with what moderate and low-income households can afford, which should assist in efforts to find buyers. Item 6i – Approval of the Final Map for Tract 3136, Bullock Ranch, 3580 Bullock Lane Page 2 2. On page 198 of the packet, it notes that the developer needs to construct improvements including electric, gas, telephone and cable. Does this include fiber for high speed internet? The improvement plans on Bullock Lane will include electric, gas, and telephone lines per City Standard 6010, which governs the location of utilities in new streets. Engineering Standard 6010 includes a requirement for an additional spare conduit for City purposes in the joint trench for power and communications conduits. The City’s Information Technology team plans future fiber extension projects throughout the City utilizing this network of conduits that is extended during new street construction in developments. Engineering Standard 6010 does not also require additional conduits for future fiber lines owned by utility companies. 3. How are the following reimbursement fees/credits determined? a. Parkland Reimbursement Payment is to be paid prior to final map recordation in the amount of $844,800. Refer to Exhibit 2 for details. The developer of Tract 3063 and Tract 3066 dedicated parkland in excess of the City’s requirement at the time the Final Maps for those tracts were recorded. Due to this, the City and that developer entered into a Parkland Reimbursement Agreement, which identified “benefitting properties” that included the parcels that are now known as Bullock Ranch. The Reimbursement Agreement states that the Bullock Ranch project must pay $4,400 per multi-family unit constructed. The Bullock Ranch project includes 192 units. The $844,800 amount included in the Subdivision Agreement for Bullock Ranch is the fee required to be collected from Bullock Ranch and passed through to the developer of Tracts 3063 and 3066 under the Reimbursement Agreement. Item 6i – Approval of the Final Map for Tract 3136, Bullock Ranch, 3580 Bullock Lane Page 3 b. Public Infrastructure Reimbursement Payment is to be paid prior to final map recordation in the amount of $121,377 plus 2% per year. Refer to Exhibit 2 for details. The developer of Tract 3063 and Tract 3066 installed public infrastructure in greater size and capacity than required concurrent with the construction of the improvements conditioned for those tracts. This was done to avoid future upgrades to recently constructed infrastructure as other tracts in the Orcutt Area Specific Plan area developed. Due to this, the City and that developer entered into a Public Infrastructure Reimbursement Agreement, which identified “benefitting properties” that included the parcels that are now known as Bullock Ranch. The Reimbursement Agreement states that the Bullock Ranch project must pay its fair-share percentage of the cost to construct these facilities. Per the Reimbursement Agreement, the amount due escalates each year from the date of acceptance of the improvements by the City, which occurred in 2019. The $121,377 amount included in the Subdivision Agreement for Bullock Ranch is the fair-share fee estimate for Bullock Ranch at time of acceptance of the improvements. That fee is required to be escalated at 2% per year as detailed in Exhibit 2 of the Subdivision Agreement. The funds are required to be collected from Bullock Ranch and passed through to the developer of Tracts 3063 and 3066 under the Public Infrastructure Reimbursement Agreement. c. Reimbursement/Credit Agreement Fee is to be paid prior to final map recordation in the amount of $42,793.37. Refer to Exhibit 2 for details. The developer of Bullock Ranch is eligible for fee credits for construction of improvements which are also included in the City’s fee program. In order to be eligible for this reimbursement, the developer must enter into a Credit Agreement with the City. City staff and the developer previously worked to draft an agreement, which required payment by the developer for City staff time to prepare the agreement. The $42,793.37 amount cited in Exhibit 2 of the Subdivision Agreement represents the amount due from the developer for the preparation of this draft agreement. The fee is due prior to the Final Map recording, the City Council must approve the agreement, and the agreement must be fully executed prior to the issuance of the first building permit to receive any fee credits. 4. How is the “fair share” Bullock Ranch portion of the Bullock bike path being calculated since the improvements are not likely to be constructed until 29/30? The fair-share portion of the improvements that the developer will be responsible for paying will be the amounts identified in the Citywide and Orcutt Subarea Transportation Impact Fee programs. These amounts are determined based on the cost estimate to construct the improvements which is based off the anticipated date of construction. This is consistent with the requirements of the project conditions of approval.