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HomeMy WebLinkAboutAgenda Statement 1988/01/19 Item 13 COUNCIL AGENDA STATEMENT I tern 13 ITEM TITLE: Meeting Date 1/19/88 Public Hearing: To consider the adoption of an urgency ordi nance estab 1 i shi ng a development impact fee for streets and highways for the eastern area SUBt4ITTED BY: REVIEWED BY: Interim Ordi nance Estab1 i shi ng an interim development fee to pay for transportation facilities in the eastern area Ordinance ;;;(2S-/ Establishing a development impact fee to pay for trans'portati on faci 1 i ti es in the City's eastern territories . / ~~rf ,'" G~ "r:!".!,'" M',lD ADOPTION Director of Public Works ryr :OL.~'-''''-' l\~,'_"'- 'u City ManagerJ~1W (4/5ths Vote: Yes~No_ On February 19, 1986, the City Council adopted a schedule of development impact fees for the EastLake development area. The fees at that time were used to ensure that EastLake pai d their fair share of the cost of specific street improvements outside of their development which also included a four-1 ane interim fac il ity in the SR-125 corri dor. Si nce then the Counc il has retained a consulting team to update the EastLake development fee program to apply to the City's entire eastern area and to be finalized in conjunction ~Iith the adoption of the City's General Plan revision. Since the City's General Plan revision won't be finalized until later this year and since there a re currently developments and buil di ng permi ts that wi 11 be approved in the eastern area before adoption of the General Plan, it is staff's recommendation that an interim ordi nance be estab1 i shed at thi s time to go into effect immediately in order to collect transportation fees from the developments in the eastern area. It is intended that these fees be modified from time to time, but specifically to be looked at the time the General Plan Amendment is fi na lly adopted. RECOMMENDATION: Adopt the ordinances establishing an interim development fee in the Eastern Territories. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: When EastLake I was approvea , n February of 1986, the EastLake Development Impact Fee was adopted to ensure that EastLake paid their fair share of street and highway facilities in the eastern area which were beyond the boundaries of the EastLake Development. The streets withi n the EastLake Development were pai d for di rectly by EastLake or by an assessment di stri ct and were not part of the EastLake Development Impact Fees. Since that time the concept of the EastLake Development Impact Fees have been expanded and incorporated into the report which is attachea called the "Chula Vista Interim Eastern Area Development Impact Fees for Streets dated December 1987." Page 2, Item 13 Meeting Date~/19/88 The major change between the now proposed fee and the EastLake Development Impact Fee is a change in street financing policy. That is all streets that are of a category of major or prime - 4 1 anes or 6 1 anes di vi ded by a medi an and limited access from adjoining properties - are now included whether or not those facilities are offsite from a particular project. Developers who build those facilities will be reimbursed by the funds collected from this fee if their costs are higher than their responsibility. Basis of Apportionment Willdan Associates; the consulting engineers, developed the method of spreading the cost. Cost estimates for all of the facil ities that will be built were calculated. Those facilities and estimates are listed on page g of the attached report. The philosophy used is that a necessary system of major streets and hi ghways in the eastern area is needed to serve future development. There are also some streets that are not major facilities in the Bonita/Sweetwater area which are needed to serve future developments but have no other way of being financed, such as Central Avenue. The basis of apportioning costs is that everyone in the eastern area will benefit from the construction of the streets. Their benefit will be in proportion to the number of trips generated per day from their property and is based upon SANDAG traffic generation figures. In effect, each development will be buying a sha re of the enti re ci rcul ati on system in the eastern area, and wi 11 not be payi ng just the streets adjacent to their development. The total number of equivalent dwelling units is calculated based on trip generation factors and proposed de vel opments per Scenari 0 2 in the benefi t area. As can be seen on page 10, the total cost of the facilities is divided by the number of equivalent dwelling units to calculate the total fee per dwelling unit as follows: Development Impact Fees Category Single family detached DU Single family attached DU ~lul ti -fami ly DU Commerci al acre Industri al acre Total 2,101 1,681 1,260 84,040 63,030 Tabl e 1 on Page 5 of the attached report gi ves a 1 i sti ng by development for the projects within the current City boundaries. It also lists the total of the anticipated developments based on Scenario 2 of the City's General Plan Update for those developments outside the City but within the City's Sphere-of-Influence. One exception to that is that development south of Tel egraph Canyon Road to the south ri dge between Orange Avenue and Telegraph Canyon Road is included in the benefit area even though it is not within our Sphere-of-Influence (United Enterprises). Page 3, Item 13 Meeting Dat(..1/19/88 In the future, as more accurate cost estimates are completed, the General Plan Amendment is fi nal i zed, and additi onal streets are added or del eted, or as a more accurate estimate of the total number of dwell i ng uni ts is supp 1 i ed, the cost per DU can be modified. East "H" Street Development Program One of the provisions of this impact fee is that the previously adopted East "H" Street Development Program will be resci nded and that program wi 11 be folded into the development impact fee program. There is approximately $1.2 mill i on that the City fronted in the constructi on of East "H" Street that was to be reimbursed. A project titled "Reconstruction of Existing Facilities" (page 42) is a project that will pay approximately $120,000 per year to the Ci ty of Chul a Vi sta over a 10 year peri od to be used for general street projects in the eastern area and/or operation of street facil ities such as traffic signals, street lights, etc. that would otherwise be the responsibil ity of the City's general revenues such as general fund and gas taxes. Thi s is the vehi cl e that is bei ng used to reimburse the City for the City's previous investment is East "H" Street since the East "H" Street program is being rescinded. Other Development Impact Fees In December, the City Council adopted development impact fees for parks in the eastern area which included fees for both neighborhood and community parks. There are other fees that the staff is working on that will be charged to developments in the eastern area primari ly for those developments' share of libraries and other civic facilities such as civic center expansion, city yard, etc. A report has been completed for the 1 ibrary system development program and staff will be returning to Council in the near future with a development impact fee for library facil i ty in the eastern area. At a later date, as studies and responsibilities for the city yard and civic center are determined, it is staff's intention to also include fees for those facilities for the eastern areas. The Purpose and Use of the Development Impact Fee As stated earlier, the purpose of the development impact fee, just like with EastLake is to equitably share the responsibility for providing the circulation system in the eastern area. Fees will be collected as building permits are pulled and any fees in the program could be used to build any of the facil ities as priorities are determined by City Council. However, as a practical matter, because of the need for the facilities prior to all of the development, developers will be pioneering facilities such as, or similar to, East "H" Street, Tel egraph Lanyon Road and getti ng credi ts and reimbursements for those facilities. The development impact fee would mainly be used to collect fees from smaller developments where it would be impractical to require them to build major street facilities. It will al so serve as a basis of equi tably shari ng the responsibi 1 ity and determi ni ng reimbursements and credits as the larger developers install facilities included in the program. / Page 4, Item 13 Meeting Date~1J788 Developer Meetings All the developers listed on page b, table 1, have been sent copies of the reports and have been invited to two meetings held to discuss the report, one on September 2 and one in December. Several questions have arisen and modifications have been made to answer those questions. However, other issues may not have been compl eted to the full sati sfaction of each developer and they have all been invited to thi s meeti ng and may make a presentati on to certain aspects that they may be dissatisfied with. At this point, the developments wi thi n the County woul d not fall under the control of the City. The City has requested that the County adopt a simil ar ordi nance for the City's Sphere-of-Influence. However, to date, they have not done so and staff will be encouraging the County staff to have them take a similar action. FISCAL IMPACT: The program will generate as eastern area in the amount of over $71 mill ion. the control of the City of Chul a vi sta but wi 11 other funding sources. the area develops in the This funding will be under not come out of the Ci ty' s WPC 3473E /~ ' ~~~ 1 by the City u~cil of ~ Chuia Vista, Call1ornla i l Dated , . .;ZMl~ , ~b1:~~ Chula Vista, C:;iifornla 'k" c Dated rf /