HomeMy WebLinkAbout09/21/1993, C-14 - REQUEST TO DEFER PARK-IN-LIEU AND WATER ACREAGE FEES FOR VILLA ROSA, TO ALLOW PAYMENT OF THESE FEES WITH THE CONSTRUCTION AND SALE OF EACH PHASE, RATHER THAN IN A LUMP SUM PRIOR TO OCCUPANCY OF THE FIRST UNIT OF THE ENTIRE DEVELOPMENT. ' r
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cityo san suis OBISPO -'
COUNCIL AGENDA REPORT ITEM NUMBER: '/
FROM: Arnold Jonas, Community Development Director
BY: Judith Lautner, Associate Planner
SUBJECT: Request to defer park-in-lieu and water acreage fees for
Villa Rosa, to allow payment of these fees with the
construction and sale of each phase, rather than in a
lump sum prior to occupancy of the first unit of the
entire development.
CAO RECOMMENDATION
Adopt a resolution to:
1) Determine that allowing payment of park-in-lieu and water
acreage fees on an incremental basis meets the intent of condition
10 of Resolution 7031 (1991 series) and consequently, the
development agreement;
and
2) Authorize staff to accept incremental payments of park-in-lieu
and water acreage fees, for the Villa Rosa project, with the
issuance of building permits for each phase of development.
DISCUSSION
Background
Stan Bell, the developer of Villa Rosa, is asking for a deferral of
his park-in-lieu and water acreage fee payments, in recognition of
the discounted prices being paid by many of the buyers. City
ordinances allow such deferrals to be made.
EVALUATION
1. What kind of fees are these? The developer is asking for
deferral of park-in-lieu and water acreage fees. Park-in-lieu
fees are intended to provide parkland and improvements for the
new residents of the development, and water acreage fees are
intended to assure an adequate, good quality water supply for
the new residents. The benefits from these fees, then, accrue
to the persons who will be living in the residential
development.
2 . The condition. The subdivision approval was with a condition:
10. The subdivider shall pay all applicable water and sewer
and park-in-lieu fees at the time of close of buyer
escrow and prior to final occupancy release of the first
unit by City. [Resolution 7031 (1991 Series) ]
The subdivision agreement, signed by the developer after
subdivision approval, says:
C-/VI*/
I��H�►�ii���►IIIII�Ipj�IlUlll MY Of san'tins OBISPO
Mia; COUNCIL AGENDA REPORT
Fee payment deferral request
Page 2
The subdivider shall pay water acreage fees of $23,200
(11 .6 Ac X $2000/Ac) at the time of final occupancy of
first unit per Condition 10 of Resolution #7031 .
and
The subdivider shall pay a park-in-lieu fee of
$151,991 .00 at time of final occupancy of first unit per
cond. 10 of Resolution #7031 (1991 series) .
The subdivider's request is to allow these fees to be paid
incrementally, rather than in a lump sum upon occupancy of the
first unit of the project. The first payment (due now) would
be for the first ten units, and would be approximately
$20, 610. If the Council supports a change to the payment
schedule, it should find that the change is consistent with
the intent of the subdivision condition.
3 . Can it be done? The subdivision regulations say, about park-
in-lieu fees:
"The land shall be dedicated and the fees shall be paid
at the time the final subdivision map is filed with the
city, unless the body which approved the application
approves a schedule for deferred dedication, payment of
in-lieu fees, or improvement. " (M.C. section 16.40. 090B)
The public services regulations say, about water acreage fees:
" .. .such charges shall be payable in advance upon
connection to the water system. " (M.C. section 13 . 04 . 090)
Thus such fees can be deferred by the City Council.
I
4. should it be done? The City Council should make a
determination if this deferral is appropriate, and if so, why.
In 1987, the City allowed the developer of the Parkwood
Village Apartments (Southwood Drive) to pay park-in-lieu and
construction unit fees over a period of 13 years, because 20%
of the apartments (34 units) are being rented to low- and
moderate-income tenants through the "Section 8" program
(administered by the Housing Authority) . Therefore, a
precedent for fee deferrals has already been set.
Certain fees are -needed up front, to pay the cost of
development. Costs for traffic signals, street improvements,
and installation of utility lines must be paid before or as
the costs are being incurred. Other fees, such as park-in-
lieu and water acreage fees, are intended to improve the parks
�II��►�NIIVIIIII�I� IIUIII city of san uuis OBispo
COUNCIL AGENDA REPORT
Fee payment deferral request
Page 3
system and the water supply system, to accommodate the
increased population represented by the development. These
fees are not absolutely needed until the residents actually
move in. Therefore, a deferral of such fees would not create
an undue hardship upon the City.
5. Should the present request be approved? Deferred payments
should routinely be allowed in cases where the project
provides an unusual public benefit. The most likely
extraordinary public benefit that a project could supply is
the provision of lower-cost housing. In the Parkwood example,
above, the Section 8 units were the justification for the fee
deferrals. In the present case, approximately half of the
development is targeted to moderate-income homebuyers, buyers
who must qualify through the Housing Authority. (As of August
16, 9 of 16 homes sold or in escrow were discounted 10 - 35%. )
Because income from sale of the discounted units is less than
from sales to non-qualified buyers, the developer has less (or
no) profit to use in the construction of succeeding phases.
Therefore, there is a reasonable need to defer the payment of
fees until succeeding units are built and sold.
Current City practice is to require payment of water acreage
and park fees with the issuance of building permits for each
phase of a particular development. The requirement imposed on
Villa Rosa to pay the entire amount due prior to occupancy of
the first unit constructed is an exception to normal process.
Thus is would be reasonable and equitable in the present case
to interpret the condition of approval as allowing incremental
fee payment in conformance with usual practice.
ALTERNATIVES
The Council may, by motion, 1) determine that fee deferrals are not
appropriate in this case; 2) continue action, with direction to
staff; or 3) allow a different payment arrangement.
FISCAL IMPACT
The impact of fee deferrals over time is unknown. The primary
costs would be bookkeeping and record-keeping costs and loss of
interest. Negotiated agreements can include requirements for
payment of interest.
Attached:
Resolution allowing fee deferral
Ordinance no. 7031
Subdivision agreement
Letters from applicant and representative explaining the request
C-lam 3
RESOLUTION NO. (1993 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
APPROVING THE DEFERRAL OF PARK-IN-LIEU AND WATER ACREAGE
FEES FOR VILLA ROSA (TRACT 2066) , AT 843 MUTSUHITO AVENUE
BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Finding. That this council, after
consideration of the staff report and the applicants' statements,
makes the following finding:
1. Allowing payment of park-in-lieu and water acreage fees on
an incremental basis meets the intent of condition 10 of
Resolution 7031 (1991 series) and consequently, of the
development agreement for Tract 2066.
SECTION 2. Action. Staff is hereby authorized to accept
incremental payments of park-in-lieu and water acreage fees, for
the Villa Rosa project (Tract 2066) , with the issuance of building
permits for each phase of development.
On motion of ,
seconded by and on the following roll call
vote:
AYES:
NOES:
ABSENT:
the foregoing resolution was passed and adopted this day
of , 1993 .
4,e
Resolution No. (1993 series)
Villa Rosa fee deferral
843 Mutsuhito Street
Page 2
Mayor
ATTEST:
City Clerk
APPROVED:
dittvAtt orn y
C_
RESOLUTION NO. 7031 (1991 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
APPROVING A VESTING TENTATIVE MAP FOR TRACT 2066, CREATING A 85-UNIT
RESIDENTIAL CONDOMINIUM PROJECT AT 843 MUTSUHITO AVENUE.
BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:
SECTION 1. VESTING TENTATIVE MAP. That this Council, after consideration
of public testimony, Vesting Tentative Map 2066 and the subdivider's supporting
information, the Planning Commission's recommendation, and the Community
Development Director's recommendations and reports thereon, hereby approves Vesting
Tentative Map 2066 creating a 85-unit, planned development residential condominium
project, as shown in Exhibit "A" attached, with the following findings and subdivision
exceptions, and subject to the following conditions:
Findings
1. The design of the subdivision is consistent with the general plan, subdivision and
zoning regulations.
2. The site is physically suited for the type and density of development allowed in
an R-3-PD zone.
3. The design of the tentative map and the proposed improvements are not likely to
cause serious health problems, substantial environmental damage or substantially
and unavoidably injure fish or wildlife or their habitat.
4. The design of the subdivision or the type of improvement will not conflict with
easements for access through (or use of property within) the proposed subdivision.
5. The proposed subdivision has been evaluated under the California Environmental
Quality Act and the City's Environmental Guidelines (Existing Facilities, Section
15301(o)), and the City Council hereby concurs with the Community Development
Director's negative declaration, subject to the following mitigation measures (note:
s asterisk refers to mitigation measures modified or added by the Planning
Commission):
C-/fry-b
R-7031
Council Resolution No. 7031 1991 Series)
Page 2
Land Use
'✓ 'A. Developer shall provide a minimum sideyard setback of 16 feet for unit 80,
with an architecturally compatible fence or wall, and a 10-foot wide
landscaped planter for visual screening and physical separation.
/ 'B; Developer shall provide a minimum building setback of 20 feet for unit 31,
s and provide a noise attenuation wall along the northeast property line of
Lot 89 to protect residential uses from vehicle traffic and loading noise.
The noise wall shall be architecturally integrated with the project using
landscaping and architectural detail, to the approval of the Architectural
Review Commission.
C. Residential units with wall openings facing the C-S zone shall incorporate
construction measures to ensure interior noise levels do not exceed 45 dBA
(Ldn), to the approval of the Chief Building Official. An acoustic engineer
shall recommend appropriate design measures for the units so that the 45
dBa sound level is not exceeded, and these measures shall be incorporated
in the building plans. Such measures may include, but are not limited to
double glazing, reduced window area, enclosed outdoor patios, and special
wall assemblies.
'D. A declaration to buyer shall be included in California Department of Real
Estate documents prepared for prospective buyers. The declaration shall
advise buyers that project is located adjacent to manufacturing and service-
commercial uses, and a homeless shelter. Industrial, service-commercial,
and shelter related activities may occur in the area, including commercial
truck traffic on Victoria Avenue.
Traffic and Circulation
Developer shall:
l E. Contribute toward the cost of installing a signal at the Lawrence
Drive/Broad Street intersection, prior to construction permit issuance.
Contribution amount shall be calculated by the City Engineer, and shall be
based on the project's proportionate share of the total traffic increase
(ADT) on Broad Street from Villa Rosa, OSH, and Stoneridge II, not to
exceed 25 percent of the total cost of the signal project.
F. Revise project design to provide a public street connection between
Lawrence Drive and Mutsuhito Avenue via Victoria Avenue. Developer
shall improve Victoria Avenue to city standards.
y' G. Contribute toward the cost of installing a second eastbound left-turn lane
from Broad Street onto Orcutt Road, prior to construction permit issuance.
Council Resolution No. 7031 (1991 Series)
Pa;e 3
Contribution shall be calculated by the City Engineer, and shall be based
on the project's proportionate share of the total traffic volume (ADT) on
Orcutt road.
H. Contribute toward the cost of widening Orcutt Road to four lanes east of
Broad Street, prior to construction permit issuance. Contribution shall be
calculated by the City Engineer, and shall be based on the project's
proportionate share of the total traffic volume (ADT) on Orcutt Road.
I. Contribute toward the cost of installing a grade separation at Orcutt Road
and the Southern Pacific Railroad right-of-way, prior to construction permit
issuance. Contribution shall be calculated by the City Engineer, and shall
be based on the project's proportionate share of the total traffic volume
(ADT) on Orcutt Road.
J. Revise the Orcutt Road driveway exit to restrict access to right-turn in and
right-turn out only, to the approval of the City Engineer.
Air Quality
Developer shall:
✓ K Incorporate bike and pedestrian trails into the project design to provide the
opportunity to connect with a planned citywide bike trail in or along the
Southern Pacific Railroad right-of-way, near the northeast corner of the site.
✓ 'L. Grant irrevocable offer for public pedestrian and bicycle access easements
from Broad Street to the future connection point at the site's northeast
comer and along the former Pacific Coast Railroad right-of-way, and install
footpath and bikeway improvements as approved by the Architectural
Review Commission.
V M. Contribute toward cost of installing a transit facility on the east side of
Broad Street between Lawrence Drive and Orcutt Road. Costs shall
include construction of a standard bus turnout, transit shelter, bus sign, trash
receptacle, and installation of public art and appropriate landscaping.
Contribution amount shall be calculated by the City Engineer, and shall be
based on the project's proportionate share of the total traffic increase
(ADT) on Broad Street from OSH, Villa Rosa, and Stoneridge H, not to
exceed 25 percent of the improvement's total cost.
N. Follow Air Pollution Control District guidelines to reduce fugitive dust
emissions during grading and site preparation, and exhaust emissions from
construction equipment. Prior to construction permit issuance, the
developer shall submit a plan describing measures to be taken during
construction to reduce emissions, to the approval of the Community
C-/'[r
Council Resolution No. 7031 (1991 Series)
Page 4
Development Director.
Plant Life
'O. Site design shall be modified where feasible to preserve Eucalyptus trees,
to the approval of the City Arborist and the Community Development
Director. Where preservation is not feasible, the trees to be removed shall
be replaced on a two for one basis with 15-gallon sized trees of a
comparable ultimate size and longevity.
Historic Resources
V P. A qualified archaeologist will instruct the project's construction contractors
in how to recognize resources that my be encountered. If excavations
I encounter archaeological resources, construction activities which may affect
them shall cease. The Community Development Director shall be notified
of the extent and location of discovered materials so that they may be
recorded by a qualified archaeologist. Disposition of artifacts shall comply
with state and federal laws. A note concerning this requirement shall be
included on the grading and construction plans for the project.
Q. Brick work shall be incorporated into the development of the site to recall
the historic use of the site.
R. The historic significance of the site shall be documented through the use
of a plaque, photographs and samples of the brick work incorporated into
a marker or kiosk on the project site for public display, possibly in
cooperation with the adjacent Orchard Supply Hardware project.
General
r� S. If the Community Development Director determines that the above
mitigation measures are either infeasible or ineffective, the Director may
modify the measures or add additional measures to better achieve the intent
of the original mitigation..
Subdivision Exceptions
The proposed exceptions to Subdivision Regulations to allow:
A. Reduced street widths from 40 feet to 28 feet on Victoria Avenue, from 40 feet
to 34 feet on Lawrence Drive, and from 40 feet to two 17-foot travel lanes on
Nutsuhito Avenue;
Council Resolution No. 1031 (1991 Series)
Page 5
B. Reduced street yards from 15 feet to 10 feet for units 43, 67, 68, 69, 79, 84, and
85; and from 15 feet to 7 feet for unit 44.
are hereby approved with the following findings:
A. The cost to the subdivider of strict or literal compliance with the regulations
is not the sole reason for granting the modifications.
B. The modifications will not be*detrimental to the public health, safety, or
welfare, or be injurious to other properties in the vicinity.
C. Granting the modifications is in accord with the intent and purpose of the
Subdivision and Zoning Regulations, and is consistent with the general plan
and with all applicable specific plans or other plans of the city.
Conditions
1. Subdivider shall submit a final map to the city for review, approval and
recordation.
2. Subdivider shall provide individual utilities to each unit (telephone, electric, gas,
water, and cable TV) to the satisfaction of the public utility agencies and the City
Engineer. All new utilities shall be placed underground. Water meters shall be
clustered in the public sidewalk to the approval of the City Engineer
3. Final map shall note a blanket easement over the common lot area, except under
the structures, for access to, installation and maintenance of underground public
utilities serving the site, to the approval of the City Engineer and affected utility
companies.
/4. Final map shall show a 6-foot public utilities easement and 10-foot wide street tree
easement along the project's public street frontages.
5. All on-site driveways, nonstructural parking improvements and utilities shall be
installed as subdivision improvements.
6. Subdivider shall prepare covenants, conditions and restrictions (CC&R's) to be
approved by the City Attorney and Community Development Director prior to
final map approval. CC&R's shall include the following provisions:
J a. Creation of a homeowners' association to enforce the CC&R's and provide
for professional, perpetual maintenance of all common area including
private driveways, sewer mains, drainage, parking lot areas, walls and fences,
lighting, recreation facilities, and landscaping in a first class condition
b. Grant to the city the right to maintain common area if the homeowners'
C-Oev.
Council Resolution No. 7031 (1991 Series)
Page 6
association fails to perform, and to assess the homeowners' association for
expenses incurred, and the right of the city to inspect the site at mutually
agreed times to assure conditions of CC&R's and final map are being made.
i c. No parking except in approved, designated spaces.
/ d. Grant to the city the right to tow away vehicles on a complaint basis which
are parked in unauthorized places.
e. Prohibition of storage or other uses which would conflict with the use of
garages for parking purposes.
f. No outdoor storage of boats, campers, motorhomes, or trailers nor long-
term storage of inoperable vehicles.
g. No outdoor storage by individual ,units except in designated storage areas.
I No change in city-required provisions of the CC&R's without prior City
Council approval.
i. Homeowners' association shall file with the City Clerk the names and
addresses of all officers of the homeowners' association within 15 days of
any change in officers of the association
j. Provision of appropriate "no parking"-signs and red-curbing along interior
f roadways as required by the City Fire Department.
'k. CC & Rs shall not prohibit outdoors clothes drying.
7. The portion of this site that participated in the McMillan Sewer Assessment
District may sewer to the Orcutt Road sewer main (lots 1 through 31). The
remaining lots 32 through 85 did not participate in said assessment district and
must sewer to the Broad Street sewer main. If gravity sewering lots 45 through
55 to Broad Street is not feasible, those lots may be sewered to Orcutt Road
provided all appropriate lift station fees are paid, as determined by the City
Engineer.
8. The public water mains serving this site shall loop from the water main in Orcutt
Road to the water main in Broad Street via the on-site driveway paralleling the
easterly and northerly boundaries and connecting said streets.
A second internally looped public water main may be constructed within the
driveway lying southerly and southwesterly of the four, most northeasterly,
buildings. All water meters shall be grouped in manifolds containing no more
than 6 meters each, to the satisfaction of the City Engineer.
C'
Council Resolution No. 7031 (1991 Series)
Page 7
All final grades and alignments of all public mains shall be subject to adjustments
as determined by and to the satisfaction of the City Engineer and Utilities
Engineer.
�9. An easement for public water facilities shall be granted to the City and shown on
the Final Map to the satisfaction of the City Engineer and Utilities Engineer. The
easement shall exempt the City from all responsibilities for the replacement of any
special pavements (other than asphalt concrete).
10. The subdivider shall pay all applicable water and sewer and park in-lieu fees at
time of close of buyer escrow and prior to final occupancy release of the first unit
by City.
11. Subdivider shall dedicate sufficient additional right-of-way at the easterly end of
Lawrence Drive to provide for a vehicle turnaround and landscaped median, to
the approval of the City Engineer.
12. Lawrence Drive, Mutsuhito Avenue, and Victoria Avenue shall be improved to the
satisfaction of the City Engineer, based on the following standards:
A. The subdivider shall improve Lawrence Dr. with a 4' detached sidewalk,
landscaped parkway, curb and gutter on the southerly side, 34' wide street
pavement (T.I. = 8.0) and A/C curb along the northerly side of the street.
The proposed sidewalk may meander, but shall be at least 6' wide wherever
connected to the curb, to the satisfaction of the City Engineer. The
subdivider shall install a retaining wall and erosion control landscaping and
irrigation along the northerly side of Lawrence Drive, to the approval of
the City Engineer and the Community Development Director.
B. Mutsuhito Avenue shall be improved with a 4' detached sidewalk and
landscape parkway along both sides, a raised median island, and full-width
street pavement (T.I. = 8.0). The median island and landscape parkways
proposed in Mutsuhito Ave. shall be maintained by the Homeowner's
Association. The width of the median island may require adjustment to
accommodate access requirements needed by the Fire Department (min. 20'
wide travel lane) and future truck traffic.
/'C. Victoria Avenue shall be improved with 4' detached sidewalk and 6'
landscaped parkway along the east side, with a 28' street paveout, and a 6"
concrete curb or A.C. berm and landscaping along the west side.
D. Interior streets shall be constructed using a T.I. of 5.5.
13. Final map shall note that all improvements within the Southern California Gas
Company easement shall be subject to approval by said gas company.
/Z
Council Resolution No. 70'1(1991 Series)
Page 8
14. All on-site grading shall be designed so as not to damage the off-site trees along
the easterly property line. All on-site trees shall be labeled, and trees to be
3 preserved shall be protected during construction, to the approval of the City
Arborist. Subdivider shall submit a tree protection agreement and acceptable
surety to guarantee protection and/or replacement of trees to be preserved, to the
approval of the Community Development Director.
15. The subdivider shall submit to the City Engineer a hydrology report, prepared by
a registered civil engineer, for the proposed site development.
1 16. All boundary monuments, lot corners and centerline intersections, curb return
points, and other survey data shall be tied to the City's control network. At least
two control points shall be used and a tabulation of the coordinates shall be
submitted with the final map or parcel map. A 5-1/4" diameter computer floppy
disk, containing the appropriate data for use in autocad for Geographic
Information System (GIS) purposes, is also required to be submitted to the City
Engineer.
"17. Subdivider shall install street trees along the Broad Street, Lawrence Drive,
Victoria Avenue and Mutsuhito Avenue street frontages, to city standards, and to
the satisfaction of the City Arborist and Architectural Review Commission.
18. Subdivider shall submit a common driveway agreement and easement for lots 88
and 89 to the Community Development Director for approval and recordation.
1
19. All grading shall comply with the recommendations contained in the soils report
for the proposed site development.
20. All units shall be numbered in accordance with an addressing.plan approved by
the Community Development Department.
21. Subdivider shall install a unit identification plan with directory at each of the
project entrances to the approval of the Community Development Director.
22. Subdivider shall install street lighting as determined by the City Engineer per City
and Pacific Gas and Electric standards.
23. Project construction activity, including grading operations, shall be limited to the
?C weekday hours from 7:00 a.m. to 5:00 p.m.
24. Subdivider shall submit a dust management plan to limit dust generation from
construction activities on the site and from construction vehicles transporting soil
to and from the site to the approval of the Community Development Director and
the Chief Building Official.
C-/4f-/3
Council Resolution No. 7031 (1991 Series)
Page 9
25. In lieu of solar water heating as required by the Condominium Regulations, the
developer may provide other energy-saving features, to the approval of the
Community Development Director. Such features shall, as a minimum, provide
equivalent long-term energy savings when compared to solar water heating
(including installation and life-cycle operation costs), and shall consist of
permanent features which are integral to the unit, such as dual glazing, thicker
wall or roof insulation, or energy-saving space heating. If solar water heating is
not installed, each unit shall be plumbed to accommodate the future installation
of solar water heating, including piping and water storage location (tank need not
be installed).
On motion of Councilwoman Rappa , seconded by
Councilman Reiss and on the following
roll call vote:
AYES: Councilmembers Rappa, Reiss, Pinard and Mayor Dunin
NOES: Councilmember Roalman
ABSENT. None
the foregoing resolution was passed and adopted this 17th
day of September 1991.
ayor on Dunin
ATTEST:
Q_ �
V
Pam Voges, i Clerk
C- /f/—/4d
Council Resolution No. 7031(1991 Series)
Page 10
APPROVED:
City Administrdtivd O cer
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Community Devellonnhent Director
Public Wo D ector
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EXHIBIT I
EXHIBIT 2
TRACT 2066
FEE AND BOND LIST
"Bonds" - Immrovements:
Amount Form/Surety Received
1. Faithful Performance $290,000.00 Letter of Credit 4/22/92 J'{
100% Public Improve & 15% Infl. & Contingency (MSB 7-184)
Rough Grading/Erosion Control $ 22,000.00 Letter of Credit 4/8/92
(MSB 7-185)
2. Labor & Materials $145,000.00 Letter of Credit 4/22/92 JK
50% of Faithful Perf (above)
3. Monumentation Trust Deposit $ 1,200.00 Letter of Credit 4/22/92 J?C
(MSB 7-186)
Fees-(to be deposited prior to final map)
A. Traffic Impact Fees
1. Traffic Signal - Lawrence Drive/Broad Street
0.25 x $ 125,000 = $ 31,250.00 uol�esNJ-o�O-sao
$ 1,000.00 - Cash C7V#;s3C 4/22/92
$ 30,250.00 Letter of Credit 4/22/92 JR
(MSS 7-187)
2. Second Eastbound Left Turn Lane - Broad/Orcutt
174/13200 x $ 35,000 = $ 460.00
3. Orcutt Road Widening
174/13200 x $ 400,000 = $ 5,273.00
4. Orcutt RR Grade Separation
174,13200 x $4,000,000 = S 52,727.00
S. Transit Facility
0.25 x $ 10,000 = $ 2,500.00
B. Plan Checking and Inspection Fees
1. Plan Checking Fee S 2,643.00 Paid 12/91
2. Construction Inspection Fee
a. Rough Grading & Erosion $ 4,108.00 Paid 4/8/92
b. Public Improvements S 3,750.00 - Cash C&W 1536 4/22/92
Future Fees:
Fees to be paid with building occupancy release per Condition 10 of Resolution #7031 (1991
series) . Note: Wastewater (Sewer) and Water impact fees are not applicable due to
vesting map status prior to enaction of Ordinance #1200 (1991 series)
4. Water acreage fee $ 23,200.00 050-0017-071-020
11.6Ac x $2000/Ac
5. Sewer Lift Station Fee $ 153.55 052-0017-074-030
0.37 Ac x $415/Ac
6. Park-in-lieu fee $151,991.00
no3/t2066ex2
jm5
C- ice-� 7
a 4369h- 000
STANLEY E. BELL
August 9 1993
ltE _
Arnold Jonas ,
Community Development Director At: 0 ly�i
City of San Luis Obispo
900 Palm cm OF SAN LUIS Oa:S�
San Luis Obispo , CA 93401 m ^
Dear Mryacnas :/4AV,r
RE: PARK-IN-LIEU AND WATER ACREAGE FEES - TRACT #2066
Last Fridav in our conversation we discussed the water acreage
fee of $23 , 200 and the park-in-lieu fee of $151 , 991 . As I
indicated to you, this is truly a huge amount ( 5175 , 191 ) that the
City is requesting at this time.
As you know, approximately half of the homes at Villa Rosa are
being sold at various discounts to people of modest incomes . As
I am sure you are also aware , this is not the most robust economy
that we have enjoyed. The first building of 10 homes is now
complete and we have a loan commitment to start the next 16
homes . of the 16 homes we are currently starting, half are being
sold to discounted buyers .
Although our sales are good considering the economic times , the
sales volume does not generate much cash flow and no profit at
this time. As we have already paid in excess of 5102 , 000 in City
fees , not including building permits , I would like to suggest
that an irrevocable demand be placed in escrow to automatically
pay the City the pro rata share of the above two fees . The parks
and water systems are not used until such time as a homebuyer
closes his/her escrow and so I don' t believe, from this
perspective , it creates a demand on City resources .
The incremental payment of these fees would not be unique to
Villa Rosa as I know of at least two other instances that the
City was able to accommodate the project in the above manner .
i 've always thought that the condition was meant to be handled in
an incremental fashion , which is fair to both the City and the
developer. I would like to request an affirmation from the City
to pay the fees concurrently as the homeowners ' escrows close .
Arnold, I appreciate your understanding and help in this matter .
If you have any questions or need more information , please call .
Sincere y,
Stanley E . Bell
Villa Rosa Company
Enclosures
C- 14e-lr
( SOi ) 773 - 5069 160 SILVER SHOALS SHELL BEACH , CALIFORNIA 93449
A-45-92-CC
STANDARD SUBDIVISION AGREEMENT
THIS AGREEMENT is dated this 5th day of Mav by and between
Villa Rosa Co. , A California Partnership, S. E. Bell, Inc. , A Calif crnia
Corporation as general partner, herein referred to as "Subdivider, " and
the CITY OF SAN LUIS OBISPO, herein referred to as the "City. "
RECITALS
REFERENCE IS HEREBY MADE to that certain proposed subdivision of real
property in the City of San Luis Obispo, County of San Luis Obispo,
State of California, a description of which is shown on final map of
Tract No. 2066, City of San Luis Obispo, California, as approved by the
City Council on the 5th day of Iry , 1992 .
The Subdivider desires that said Tract No. 2066 be accepted and
approved as a final map pursuant to the Subdivision Regulations of the
City of San Luis Obispo (Title 17 of the San Luis Obispo Municipal
Code) , and
It is a condition of said regulations that the Subdivider agree to
install the improvements as set forth on the plans therefore.
TERMS AND CONDITIONS:
In consideration of the foregoing, the Subdivider does hereby agree
to construct and install the following subdivision improvements in
accordance with said subdivision regulations, and in accordance with
approved plans and specifications on file in the office of the City
Engineer, City of San Luis Obispo, to wit:
1. CURB, GUTTERS AND SIDEWALKS
2. STREET BASE AND SURFACING
3 . WATER MAINS and SEWER MAINS, including sewer laterals to the property
line and water services to the curb stop.
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A-45-92-CC
4 . DRAINAGE STRUCTURES
5. ORNAMENTAL METAL ELECTROLIERS
6. ELECTRIC, GAS, TELEPHONE AND CABLE TELEVISION: In addition to the
inspection and approval of such facilities by the City, each public
utility shall be required to file a letter stating that the developer
has properly installed all facilities to be provided by him, and that
the said utility is prepared to provide service to residents upon
request.
7 . ANY & ALL OTHER IMPROVEMENTS shown on plans or required by City
regulations.
All of the above facilities shall be installed in the locations
designated and to the plans and specifications on file and approved by
said City Engineer.
The lines and grades for all of said improvements shall be established
by the Subdivider in accordance with said approved plans and
specifications.
The Subdivider agrees that the work of installing the above
improvements shall begin within thirty (30) days from the date of
recording of the final map, and that the work shall be completed within
eighteen (18) months of said recording date., unless an extension has
been granted by the .City, provided that if completion of said work is
delayed by acts of God or labor disputes resulting in strike action, the
Subdivider shall have an additional period of time equivalent to such
period of delay in which to complete such work. Any extension of time
hereunder shall not operate to release the surety on the Improvement
Security filed pursuant to this agreement. In this connection, the
surety waives the provisions of Section 2819 of the Civil Code of the
State of California.
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No building permits will be issued nor occupancy granted after the
expiration date of the agreement until completion and acceptance of all
public improvements unless specifically approved by the City.
The Subdivider does also agree to comply with the conditions
established by the Planning Commission and/or the City Council and has
paid, or agrees to pay, the necessary fees as indicated on the attached
Exhibits 1 and 2 .
The restoration of lost section corners and retracement of section
lines within the Subdivision shall be in accordance with Division 4 ,
Chapter 15 of the Land Surveyors Act of the Professions and Vocations
Code of the State of California, paragraph 8771 et seq.
The Subdivider attaches hereto, as an integral part hereof, and as
security for the performance of this agreement, an instrument of credit
or bond approved by and in favor of the City of San Luis Obispo, and
conditional upon the faithful performance of this agreement. Said
instrument of credit or bond is in the amount of $290, 000. 00, which is
the amount of the estimated cost of said public improvements. (See fee
and bond list, Exhibit 2 , attached, for tabulation of all fees and
"bonds" . ) Subdivider agrees to remedy any defects in the improvements
arising from faulty workmanship or materials or defective construction
of said improvements occurring within twelve (12) months after
acceptance thereof. In accordance with Sections 66499 . 7 and 66499. 9 of
the Government Code of the State of California, upon final completion
and acceptance of the work, City will release all but 10% of the
improvement security, that amount being deemed sufficient to guarantee
faithful performance by the Subdivider of his obligation to remedy any
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defects in the improvements arising within a period of one year
following the completion and acceptance thereof.
Completion of the work shall be deemed to have occurred on the date
which the City Council shall, by resolution duly passed and adopted,
accept said improvements according to said plans and specifications, and
any approved modifications thereto. Neither periodic nor progress
inspections or approvals shall bind the City to accept said improvements
or waive any defects in the same or any breach of this agreement.
If the Subdivider fails to complete the work within the prescribed
time, the Subdivider agrees that City may, at its option, declare the
instrument of credit or bond which has been posted by Subdivider to
guarantee faithful performance, forfeited and utilize the proceeds to
complete said improvements, or city may complete said improvements and
recover the- full cost and expense thereof from the Subdivider or his
surety.
The Subdivider agrees to deposit with the City a labor and materials
bond in the amount of 50% of the above described subdivision
improvements in accordance with State law.
Said Subdivider has paid the sum of $3, 750. 00 from which fee the City
will pay the salary and expenses of an inspector or inspectors to
inspect installation of said subdivision improvements, and for labor and
material costs by City to install signs and striping within the public
right-of-way as appropriate and certify that they have been completed
in accordance with the plans and specifications.
Title 16 of the San Luis Obispo Municipal Code, entitled
"Subdivision, " all plans and specifications on file with said City
Engineer as a part of said Subdivision Map, and all other documents
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filed with the City by the Subdivider and approved by the City Engineer
and Community Development Director, are hereby referred to for further
particulars in interpreting and defining the obligations of the
Subdivider under this agreement.
It is understood and agreed by and between the Subdivider and the
City hereto that this agreement shall bind the heirs, executors,
administrators, successors and assigns of the respective Parties to this
agreement.
It is agreed that the Subdivider will furnish copies of the successful
bidder's contract unit prices and total bid prices for all of the
improvements herein referred to.
IN WITNESS WHEREOF, this agreement has been executed by:
CITY OF SAN LUIS OBISPO SUBDIVIDER
Villa Rosa Co. , A California
Part a zhip
o4
YOR S.E ell, Inc. , A California
Cor oration, as General Partner
ATTEST:
a,,� I
CIT CLERK
APPROVED AS TO FORM:
t ( rn
City ngineer
hb3/sub-e9r�2M5
jms
5
C. 23
EXHIBIT 1
TRACT 2066
SUBDIVISION AGREEMENT
1. The Subdivider shall pay water acreage fees of $23 , 200 (11 . 6
Ac x $2000/Ac) at time of final occupancy of first unit per
Condition 10 of Resolution x#7031 (1991 series) . (Lots 1-89)
2 . The Subdivider shall pay a park-in-lieu fee of $151 . 991 . 00 at
time of final occupancy of first unit per cond 10 of
Resolution #7031 (1991 series) ) .
3 . The Subdivider shall pay sewer lift station fee for the
Rockview/Johnson system of $153 . 55 (0. 37 acres x $415/Ac) ,
payable as noted in 2 above.
4. The Subdivider shall install all on-site driveways,
nonstructural parking improvements and utilities shall be
installed as subdivision improvements.
5. The Subdivider shall install street trees along Broad St. ,
Lawrence, Victoria and Mutsuhito per condition 17 of
Resolution #7031 (1991 series) to the approval of the
Community Development Department and Public Works Department.
6. The subdivider has paid or posted surety to cover traffic
impact fees as prescribed in Resolution #7031 (1991 series)
as follows:
A. Traffic & Circulation Fees - Paid as indicated
1. Traffic Signal - Lawrence Drive/Broad Street
0. 25 x $ 125, 000 = $31, 250. 00
2. Second Eastbound Left Turn Lane - Broad/Orcutt
174/1320.0. x $ 35, 000 = $ 460. 00
3 . Orcutt Road Widening
174/13200 x $ 400, 000 = $ 5, 273 . 00
4 . Orcutt RR Grade Separation
174/13200 x $4 , 000, 000 = $52 ,727 . 00
B. Air Quality
1. Transit Facility
0. 25 x $ 10, 000 = $ 2 , 500. 00
$1, 000 to be deposited in cash. The remainder in the form of
an Irrevocable Commitment of Funds, Assigned Account or Bond.
The $1, 000 will be used in conjunction with a special traffic
signal study to be administered by City.
h_3!12066ex1
jms
Crawford Multari & Starr
planning architecture • public policy
August 24, 1993
Honorable Mayor and City Council
City of San Luis Obispo
Hand-delivered
CITY COU;:r1L
-.,d
Dear Mayor Pinard and Council Members, !GAS C�:�rO.
I am writing on behalf of Stan and Elizabeth Bell requesting a modification to a condition of
approval imposed on the Villa Rosa project regarding the timing of payment for certain fees.
Condition No. 10 of Tract 2066 states that ffe su ivi er s 1 pay applicable water...and park
in-lieu fees at the time of close of buyer escrow and prior to final occupancy release of rhe,first unit
by the City." In other words, the entire sum of these fees must be paid in advance of the
construction and sale of most of the units. These fees total over$175,000, which we must pay in
a lump stun now before proceeding with the construction of additional units.
We do not request that the fees be reduced or waived, but simply that we pay them as additional
phases and units are actually constructed and sold.
As you know, we have completed the first phase of 10 units at Villa Rosa. We continue to believe
that this project represents exemplary cooperation among the City, Housing Authority and private
developers to produce high quality units at prices lower than market rates. Sales have been good,
considering the economic times and market conditions,but the sales volume does not generate
much cash flow (and no profit at this time). We are ready to build the second phase of 16 more
homes. Half of these will be sold at discounted prices in accordance with our program. However,
before we can proceed,Condition 10 requires that we pay the full water acreage and park in-lieu
fees for all 85 units (again, over$175,000) in an upfront, lump sum.
We have already paid over$100,000 in City fees (not including building permits) and paying the
frill amount for water acreage and park in-lieu fees, frankly,jeopardizes our ability to proceed with
the construction of additional units. We are asking that the Council allow the payment of these fees
on appro rata.basis as additional units are built and sold. This would simply allow the payment to
Ep_ pace with our construction, s es�h flow. We are quite willing to place an irrevocable
demand in escrow on all units to automatically pay the City the pro rata share of the above two
fees. We are, of course, open to other approaches to guarantee payment of the fees.
We believe that there are several justifications for this approach. First, we suspect that had we and
the Council really thought about the wording of the condition, we might have changed it at the
beginning to allow pro rata payments as the units are actually built. In a relatively large (85-unit)
project to be constructed in several phases over a few years as the units are sold, some phased
payment of fees is surely reasonable. We believe that this approach has been used in at least two
other multiple unit projects in the past.
Second, this is an unusual project in that the developers are offering half of the units at below
market rate prices; they have forsaken some potential profits, in cooperation with the City and
Vila Rosa Park Fees
Page Z
Housing Authority, to help address a housing need in the City. Because cash flow and profits are
so low under these circumstances, some relief from massive upfront cash outlays can be justified.
The payment of the fees in this form is a genuine hardship.
Third, the impacts to the water and park systems from the project are not realized until the units are
actually built and people move in. Thus, it seems fair to allow the payment of fees to be "metered
out" as the units are constructed and sold.
In summary, we appreciate the cooperation and assistance of the City in making this project
become a reality. We are confident that the first phase demonstrates our commitment to quality and
to a program of discounted prices. The requirement to pay the park and water acreage fees for all
the units now, makes proceeding with the second phase difficult. Thus, we respectfully request
that Condition 10 be adjusted to allow the payment of these fees as additional units are built and
sold.
Thank you for your consideration. If you have questions or suggestions, please contact me or
Stan.
Sincerely,
Michael Multari
(on behalf of Stan and Elizabeth Bell)
cc: Community Development, CAO, City Clerk