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HomeMy WebLinkAboutr 10424 authorize fit director to cause an interfund loan for purposes of constructing a portion of prado tract 2342RESOLUTION NO.10424 (2013 Series) A RESOLUTION OF THE CITY OF SAN LUIS OBISPO AUTHORIZING TH E FINANCE AND INFORMATION TECHNOLOGY DIRECTOR TO CAUSE A N INTERFUND LOAN FOR THE PURPOSES OF CONSTRUCTING A PORTION O F PRADO ROAD FOR TRACT 234 2 WHEREAS,on October 12, 2004 the San Luis Obispo City Council adopted th e Margarita Area Specific Plan ("MASP") by City Council Resolution Number 9615 ; and WHEREAS,Chapter 2 .3 of the City's General Plan Land Use Element identifies th e Margarita Area as a Residential Expansion Area intended to accommodate San Luis Obispo's planned residential growth for the near future ; and WHEREAS,Prado Road is intended to serve as the primary east-west arterial servin g citywide and vehicle, transit, and bicycle traffic, relieving congestion along South Street & Tan k Farm Road, and providing improved emergency response times in those areas ; an d WHEREAS,establishing the east-west connection of Prado Road between Broad Stree t and Higuera Street at the earliest possible stage of development is a goal of the MASP and Cit y development process . However, because this goal is hindered by multiple and changing property ownerships and development phasing of individual properties, revised plans for phase d implementation of Prado Road are necessary ; an d WHEREAS,on March 7, 2006, the City Council adopted Resolution Nos . 9776 and 9777, approving, respectively, Vesting Tentative Tract Map ("VTTM's") Nos . 2342 and 2353 ; and WHEREAS,Section 5 .7 .2 of the Margarita Area Specific Plan and the Vesting Tentative Tract Map Nos . 2342 Condition of Approval l .g . provide that the Developer is to pay the costs o f designing, permitting and constructing Prado Road ; and WHEREAS,the City has determined that the most efficient, expedient, and effectiv e approach to coordinate the construction of Prado Road concurrent with the housing developmen t is for the Developer to construct Prado Road ; and WHEREAS,Sections 1 .4 and 1 .5 of the Economic Development Strategic Plan call fo r exploring financing strategies for infrastructure that address timing/costs and ensure that that ne w development is responsible for infrastructure costs only to the extent there is a nexus betwee n costs and project impacts ; an d WHEREAS .Section 1 .9 of the Economic Development Strategic Plan contains a strategy to work with developers that are willing to install infrastructure beyond their "fair share ' requirement as an expedient way to provide new infrastructure in the City's Expansion Areas ; and R 10424 Resolution No . 10424 (2013 Series ) Page 2 WHEREAS,in connection with obtaining a building permit for each office, single - family and multi-family unit within the Margarita Area Specific Plan area, Margarita Are a Specific Plan owners and/or developers are required to pay certain City-wide and Margarita Are a Specific Plan area Impact Fees to the City of San Luis Obispo ; and WHEREAS,the City of San Luis Obispo has adopted Chapter 16 .20 of the San Lui s Obispo Municipal Code to set forth the procedure and conditions for physical improvemen t standards and procedures, including the reimbursement of costs whenever improvements ar e required to be installed adjacent to property other than that being developed or in greater size o r capacity than required for the development of the property under consideration ; an d WHEREAS,Rescal LLC . (hereinafter "Developer") will construct a portion of Prad o Road as required by the conditions of approval and that this portion of Prado Road is in greate r capacity as required for the development of the property under consideration ; and WHEREAS,Section 9 .53 of the MASP provides that the roadway is constructed an d accepted by the City, fee credits equal to the amount of the cost of the facility or the cost of th e facility as estimated in the capital improvement plan, can be issued to the developer . The Developer can then apply them to offset fees imposed on his development or enter into a reimbursement agreement for any constructed facility that is oversized ; an d WHEREAS,a study prepared by Goodwin Consulting Group, Inc ., concluded that construction and related costs to design Prado Road as required by the conditions of approva l would be approximately $2,241,007 and that Tract 2342 MASP transportation fee contributio n for their residential component towards these improvements is approximately $534,856 based o n the MASP fees that took effect on July 1, 2012, leaving an estimated reimbursement amount o f $1,706,151 ; and WHEREAS,subsequent to the preparation of the Goodwin Consulting Group, Inc . report, the developer has received construction bid estimates for the Segment A section of th e Prado Road extension that will reduce this cost to $2,120,250 but will still leave a significan t amount of crediting and reimbursement necessary to compensate developer for advanced cost s beyond their fair share ; and WHEREAS,Section 66006 (b)(G) of the California Government Code allows for th e Interfund loan of development impact fees as defined under California Government Code 6600 0 et seq . if public improvements on which the Interfund loans will be expended is established, th e date on which the loan will be repaid and the rate of interest for the Interfund loan is established ; and WHEREAS,an Interfund loan of $434,128 in Margarita Area Park Fees for th e residential component of Tract 2342 will reduce the estimated amount of reimbursement t o $1,131,265 and that the loan of Margarita Area Park Fee account to the Margarita Are a Transportation Fee account will not impair or delay the delivery of the future park contemplate d in the MASP as it is estimated that the payment of Margarita Area Park Fees from other Resolution No . 10424 (2013 Series ) Page 3 development with the MASP will be collected prior to the future date when these funds will b e needed to construct this park ; an d WHEREAS,The City has found in connection with its review and consideration of this a Interfund loan that no subsequent or supplemental Environmental Impact Report is necessary o r required under CEQA because the credit of fees and reimbursement was analyzed and within th e scope of activities contemplated by the FEIR adopted for the MASP and VTTM's as required fo r implementation of the mitigation measures thereunder . NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Lui s Obispo as follows : SECTION 1 .Authorize the Finance and Information Technology Director to loan up to $454,128 of Tract 2342 MASP Park Improvement Fees account (via crediting) to the MAS P Transportation account for the reimbursement of actual eligible costs for the construction o f Prado Road as determined by the City Engineer, consistent with the approved reimbursemen t agreements under the terms specified in this Resolution . SECTION 2 . The loan contemplated under this agreement shall be for no more than 1 5 years and the interest rate shall be as close as administratively practical to the average rate o f return for City investments during the period of said loans as determined by the Finance an d Information Technology Director . Repayment of the loans made under this resolution may b e made at any time without penalty . SECTION 3 . Direct the Director of Finance & Information Technology to establish on e or Margarita Area Specific Plan account, or other accounts, as necessary to properly account fo r and track the Interfund loans described and authorized herein . SECTION 4 . As required under Section 66006 et seq ; the Finance and Informatio n Technology Director is hereby required to include in the City's annual Comprehensive Annua l Financial Report, outstanding Interfund loan amounts, a description of the improvements o n which the Interfund loan will be expended, repayment amounts and terms of Interfund loans , including but not limited to the date on which the Interfund loan will be repaid . SECTION 5 . This Interfund loan does not constitute a debt on behalf of the Genera l Fund and the City does not pledge the full faith and credit of the General Fund in approving thes e Interfund loans as described in this resolution . The Interfund loan shall not directly or indirectl y or contingently obligate the City to levy or pledge any form of taxation whatsoever or make an y appropriations for payments . SECTION 6 .The City reserves the right pursuant to conditions 1 .e . of Tracts Resolutio n Nos . 9776 and 9777, approving, respectively, Vesting Tentative Tract Map Nos . 2342 and 235 3 to form a community facilities district or other such financing mechanism that would fund an y final project costs for the construction of Prado Road as authorized under the approved VTTM's conditions of approval that are not contained in the Margarita Area Specific Plan Impact Fee Resolution No . 10424 (2013 Series ) Page 4 estimates or to repay the Interfund loan if not repaid during the term as specified in thi s agreement. SECTION 7 . Repayment of the interfund loan shall be made from MASP Transportatio n account fees collected from future development located in the Margarita Area . Collected MAS P Transportation Funds from future development other than the Developer shall first repay th e MASP Park Improvement account and once satisfied, may be used to reimburse developer for any remaining obligation . Upon motion of Council Member Carter, seconded by Council Member Carpenter, an d on the following roll call vote : AYES : Council Members Ashbaugh, Carpenter and Carter, and Mayor Mar x NOES : None ABSENT : Non e RECUSED : Vice Mayor Smith The foregoing resolution was adopted this 19th day of February 2013 . ATTEST :