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Home My WebLink About2009/08/04 Item 4 ',,'.. -.:,. ',<< CITY COUNCIL AGENDA STATEMENT ~!ff:. CITY OF ~- - CHULA VISTA ITEM TITLE: SUBMITTED BY: REVIEWED BY: 8/04/09, Item~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FIRST AMENDMENTS TO THE DEVELOPMENT IMPACT FEE PAYMENT PLAN PROGRAM AGREEMENTS ("A1\1ENDMENTS") WlTH OTAY RANCH VILLAGE II- PC-l3, LLC, FOR THE VILLAS DE AVILA MODEL UNITS AND THE CASITAS DE A VILA MODEL UNITS, AUTHORIZING THE CITY MANAGER TO EXECUTE THE AMENDMENTS ON BEHALF OF THE CITY, MID DIRECTING THE CITY CLERK TO RECORD THE AMENDMENTS WITH THE COUNTY RECORDER OF THE COUNTY OF SAN DIEGO DIRECTOR OF DEVELOPME"'l SERVIC~UTY CITY tvIANAGER CITY MANAGER ~ _ ASSISTANT CITY MANAGER 7 / 4/5THS VOTE: YES D NO ~ SUMMARY , .. On February 6, 2009, Ordinance 3120 established the Development Impact Fee Program, which allows the development community to enter into an agreement to defer the payment of development impact fees (DIFs). On May 12, 2009, by Resolution 2009-105, the City ofChula Vista approved two Development Impact Fee Payment Plan Agreements with Otay Ranch Village II-PC-13, LLC. After approval of the resolution, the Developer requested that Transportation Development Impact Fee (TDIF) credits be applied to the project, resulting in a reduction in the amount to be deferred. This Amendment addresses the applied TDIF Credits as well as adjustments to the Casita de Avila project due to a change in residential product type. ENVIRONMENTAL REVIEW The City's Envirorunental Review Coordinator has revie\ved the proposed .activity for compliance with the California Envirorunental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section l5060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. . RECOMMENDATION Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not applicable. 4-1 8/04/09,IteUl~ Page 2 of 4 DISCUSSION As a result of the current downturn in development and the continued tightening of the credit Ularket, the burden created by the payment of fees at building permit issuance has increased. Local developers and the Building Industry Association (BIA) approached the City requesting consideration of an extended payment plan program. The City Council approved an Ordinance establishing the Development Processing and Impact Fee Payment Plan, which became effective on February 6, 2009. The Ordinance provides a framework for individual projects to enter into payment plan agreements with the City, to be brought forward to Council for approval. The program is intended as a temporary response to the current housing market slump, and as such, will expire on December 30, 2010. Participation in the program requires the developer enter into an agreement with the City. On May 12, 2009, Council approved agreements with Otay Ranch Village II-PC-13 for the Villas de Avila and Casita de Avila model home units. Otay Ranch Village II-PC-13 is proposing to build 4 units in Villas de Avila and 3 units in Casita de Avila. Both projects are located in Otay Ranch Village 2 R-13, which is situated west of La Media Road, South of Santa Venetia Street and East of Santa Victoria Avenue. Villas de Avila This resolution would approve the first amendment to the original agreement with Otay Ranch Village II-PC-13 for the model home units of Villas de Avila. At the time the agreement was approved, transportation development impact fee credits were not applied to the project. Since then, the Developer has requested that their credits be applied and that their overall fees to be deferred be adjusted to reflect the applied credits. After applying the TDIF credits, the total amount due prior to final inspection of the project is $53,652.87. This is a reduction in their remaining TDIF obligation in the amount of $35,129.52 (see Table 1). For further information please see Attachment 1. Table 1 Existing DevelopUlent IUlpact Fee Pro raUl A reeUlent TDIF Other Fees $36,216.00 $63,456.62 $99,672.62 $0.00 $0.00 $12,219.26 $37.135.89 $52,538.79 $89,674.68 Sub-Tolal First AUlendUlent to the AgreeUlent TDIF $ I 086.48 $0.00 $1,114.08 I Amount includes interest calculated at 2.54% 4-2 8/04/09, Item~ Page 3 of 4 Other Fees $63,456.62 $0.00 $52,538.79 Sub-Total $64,543.10 $12,219.26 $53,652.87 DIFFERENCE ($35,129.52) $0.00 ($35,129.52) Casita de Avila This resolution would also approve the first amendment to the agreement with Otay Ranch Village II-PC-13 for the model home units of Casita de Avila. After Council approval of the agreement, recalculation of some of the project's DIFs is required due to an incorrect land use designation for the Casita de Avila units. The Casita de Avila units are designated as condominium units, however, because they are detached condominium units, the Public Facilities Development Impact Fee (PFDIF) and the Poggi Canyon Development Impact Fee are required to consider them single-family dwelling units. As a result, the PFDIF and the Poggi Canyon Development Impact Fee increased in the amount of $1,401.00 and $300.00 respectively. The Developer has also requested that TDIF credits be applied to the Casita de Avila project, resulting in a TDIF reduction of$26,347.14. Accounting for the adjusted land use and TDIF credit application, results in a reduction to their overall fees of$24,646.14 (see Table 2). For further information see Attachment 2. Table 2 Existing Development Impact Fee Pro ram A reement TDIF $27,162.00 $0.00 $27,851.91 PFDIF $24,804.00 $0.00 $25,434.02 Poggi $900.00 $0.00 $922.86 Other Fees $27,222.86 $11,411.09 $16,213.40 Sub-Total $80,088.86 $11,411.09 570,422.19 Proposed First Amendment to the A reement TDIF $814.86 $0.00 $835.56 PFDIF $26,205.00 $0.00 $26,870.61 Poggi $1,200.00 $0.00 $1,230.48 Other Fees $27,222.86 511,411.09 516,213.38 Sub- Total $55,442.72 $11,411.09 $45,150.03 DIFFERENCE ($24,646.14) $0.00 ($24,646.14) DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the properties, which are the subject of this action. 1 Amount includes interest calculated at 2.54% 4-3 8/04/09,IteDl~ Page 4 of 4 CURRENT FISCAL IMP ACT There is no impact to the processing fees as approved in the original agreements. The expected processing fees to be collected for Villas de Avila is $12,219.26 and $11,411.09 for Casitas de Avila. These amounts are to be collected at the time of building permit issuance. ONGOING FISCAL IMPACT The balance to be paid at the call for final inspection is expected to be collected in a future fiscal year. The deferred amount will accrue interest until payment at final inspection. Interest earnings are estimated at $1,329.03 for Villas de Avila and $1,118.40 for Casita de Avila. ATTACHMENTS 1. Fee Table for Villas de Avila 2. Fee Table for Casita de Avila Prepared by: Chester Bautista, Associate Civil Engineer, Development Services Department H:\ENGINEERIAGENDAICAS2009\08-04-09ICAS First Amendment to the deferral agreement. doc 4-4 Attachment 1 Payment Schedule Villas de Avila Models (BR08-0028 to BR08-0029) Account 1600 1700 3000 3100 4000 4100 4200 4300 4400 4500 4600 5010 5120 5140 6000 8085 8086 Description Sewer Administrative Fee Sewer Capacity Fee (18.4) Traffic Signal Fee (18.2) Res Construction Tax (18.3) OIF Transportation . OIF Public Fac Admin OIF Civic etr OIF Police OIF Corp Yard OIF Library OIF Fire OIF Recreation Poggi Cyn Grav Sewer OIF NPOES Fee Otay Ranch Res Pedestrian Bridge Pedestrian Bridge 2 TOTALS 2.54% Balance of Deferred Fees Interest' Balance Due @ Final Inspection $ 90.00 $ 2.29 $ 92.29 $ 10,434.00 $ 265.02 $ 10,699.02 $ 952.00 $ 24.18 $ 976.18 $ 1,725.00 $ 43.82 $ 1,768.82 $ . 1,086.48 $ 27.60 $ 1,114.08 $ 2,128.00 $ 54.05 $ 2,182.05 $ 9,312.00 $ 236.52 $ 9,548.52 $ 6,764.00 $ 171.81 $ 6,935.81 $ 1,352.00 $ 34.34 $ 1,386.34 $ 5,652.00 $ 143.56 $ 5,795.56 $ 3,576.00 $ " 90.83 $ 3,666.83 $ 4,288.00 $ 108.92 $ 4,396.92 $ 1,200.00 $ 30.48 $ 1,230.48 $ 356.00 $ 9.04 $ 365.04 $ 104.36 $ 2.65 $ 107.01 $ 1,628.00 $ 41.35 $ 1,669.35 $ 1,676.00 $ 42.57 $ 1,718.57 $ 52,323.84 $ 1,329.03 $ 53,652.87 Interest Rate at 2.54% CA State Local Agency Investment Fund (LAIF) Quarter Ending 12/31/08 Apportionment Rate Revised 07/02/2009, decrease in OfF Transportation due to Otay Ranch TOIF Credits 4-5 Attachment 2 Payment Schedule Casita de Avila Models (8R08-0031 to 8R08-0033) Account 1600 1700 3000 3100 4000 4100 4200 4300 4400 4500 4600 5010 5120 5140 6000 8085 8086 Description Sewer Administrative Fee Sewer Capacity Fee (18.4) Traffic Signal Fee (18.2) Res Construction Tax (18.3) OfF Transportation DIF Public Fac Admin DIF Civic Ctr DIF Police OfF Corp Yard 01 F Library DIF Fire DIF Recreation Poggi Cyn Grav Sewer DIF NPDES Fee Otay Ranch Res Pedestrian Bridge Pedestrian Bridge 2 TOTALS 2.54% Balance of Deferred Fees Interest' Balance Due @ Final Inspection $ 135.00 $ 3.43 $ 1 38.43 $ 10,434.00 $ 265.02 $ 10,699.02 $ 892.50 $ 22.67 $ 915.17 $ 1,350.00 $ 34.29 $ 1,384.29 $ 814.86 $ 20.70 $ 835.56 $ 1,689.00 $ 42.90 $ 1,731.90 $ 7,374.00 $ 187.30 $ 7,561.30 $ 4,695.00 $ 119.25 $ 4,814.25 $ 1,263.00 $ 32.08 $ 1,295.08 $ 4,239.00 $ 107.67 $ 4,346.67 $ 3,729.00 $ 94.72 $ 3,823.72 $ 3,216.00 $ 81.69 $ 3,297.69 $ 1,200.00 $ 30.48 $ 1 ,230.48 $ 444.00 $ 11.28 $ 455.28 $ 78.27 $ 1.99 $ 80.26 $ 1,221.00 $ 31.01 $ 1,252.01 $ 1,257.00 $ 31.93 $ 1,288.93 $ 44,031.63 $ 1,118.40 $ 45,150.03 Interest Rate at 2.54% CA State Local Agency Investment Fund (LAIF) Quarter Ending 12/31/08 Apportionment Rate Revised 07/02/09, decrease in DIF Transportation due to Otay Ranch TDIF Credits and change in PFDIF classification for detached condominiums 4-6 RESOLUTION NO. 2009 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FIRST AwIENDMENTS TO THE DEVELOPMENT IMPACT FEE PAYMENT PLAN PROGRAM AGREEMENTS ("AMENDMENTS") WITH OTAY RANCH VILLAGE II-PC-I3, LLC, FOR THE VILLAS DE A VILA MODEL UNITS AND THE CASITA DE A VILA MODEL UNITS, AUTHORIZING THE CITY MANAGER TO EXECUTE THE AL\1ENDMENTS ON BEHALF OF THE CITY, AL'JD DIRECTING THE CITY CLERK TO RECORD THE AMENDMENTS WITH THE COUNTY RECORDER OF THE COUNTY OF SAN DIEGO WHEREAS, the City Council approved Ordinance No. 3120 establishing the Development Processing and Impact Fee Payment Plan, which became effective on February 6, 2009; and WHEREAS, in Villas de Avila, Otay Ranch Village II-PC-13 proposes to develop 2 residential units in Otay Ranch Village 2 Neighborhoods R-I3; and WHEREAS, in Casita de Avila, Otay Ranch Village II-PC-I3 proposes to develop 3 residential units in Otay Ranch Village 2 Neighborhoods R-13; and WHEREAS, Otay Ranch Village II-PC-I3, LLC. owns both properties for Villas de A vila and Casita de A vila CProperty") and agrees that they are responsible for all of the development impact fees owed for the project; and WHEREAS, the City Council approved Resolution No. 2009-105, on May 12, 2009, approving the Development Processing and Impact Fee Payment Plan Agreements for Villas de Avila and Casita de Avila; and WHEREAS, because of adjustments in DlF Credits and land use, an Amendment is needed to reflect these adjustments in the Development Processing and Impact Fee Payment Plan Agreements; and WHEREAS, by executing these Amendments, the City is securing the payment of the adjusted deferred fees. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista hereby: 1. Approves the First Amendment to the Development Impact Fee Payment Plan Program Agreements with Otay Ranch Village II-PC-I3 for Villas de Avila and Casita de Avila. 2. Authorizes the City Manager to execute the Amendments on behalf of the City. 4-7 3, Directs the City Clerk to record the Amendments with the County of San Diego Recorder. Presented by ,1 /1/ Appro,\(ed as to fo~ ;/' / \ 7/1;' , /.,......,.-u ,~ Gary Halburt Director of Development Services 4-8 THE ATTACHED AGREEMENT HAS BEEN REVIEWED Al'ID APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORt\l1ALL Y SIGNED UPON AP,P OV T CITY OUNt' Dated: 7 FIRST A1 MENT TO THE LIEN AND DEVELOPMENT IMP ACT FEE PAYMENT PLAN PROGRAM AGREEMENT BETWEEN OTA Y RANCH VILLAGE II-PC-13, LLC AND THE CITY OF CHULA VISTA FOR VILLAS DE A VILA A MODEL HOME UN1TS 4-9 , RECORDING REQUESTED BY, ""ill WHEN RECORDED MAIL TO: CITY OF CHULA VISTA Attn: No transfer tax is due as this is a conveyance to a public agency of less than a fee interest for which no cash consideration has been paid or received For Recorder's Use Only FIRST AMENDMENT TO THE LIEN AND DEVELOPMENT IMPACT FEE PAYMENT PLAN PROGRAM AGREEMENT THIS A,VlENDMENT TO LIEN A,'1D DEVELOPMENT ]I.'!PACT FEE PAYMENT PLA,'1 PROGRA,'\1 AGREElvlENT ("Agreement"), dated ,20-, for reference only and executed on the date on which the last party signs, by and between Olav Ranch Villae:c II.PC.13 LLC ("Owner"), and the CITY OF CHULA VISTA, a California municipal corporation and charter city ("Ciry") with reference to the following facts: A Owner is the owner of that certain real property in the City OfChula Vista, County of San Diego, State of California, more particularly described on Exhibit "A" attached ("Property"). B. On May 12, 2009 the City Council afthe City approved the Resolution No. 2009-105, The Development Impact Fee Payment Plan Program Agreement for Villas de Avila ~fodc1 Home Units, Document No. "Original Agreement" with Otay Ranch Village n.PC-13, LLC. C. Due to adjustments in the application of Development Impact Fee credits, City Staff and Owner agree that an amendment is needed for the Original Agreement to reflect the correct amount of deferred fees. NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS. 1. Exhibit "B" in the original agreement is replaced by Exhibit "B" attached to this Agreement. 2. All other terms and condition not expressly modified by this Agreement shall remain in full force and effect. 3. The Owner agrees and is obligated to pay all costs associated with the recording of the Agreement. 4. Each signatory to this Agreement represents, warrants, and certifies that he/she has the authority to .:nter into this Agreement on behalf of the Owner, the agencies/companies/trusts, respective officers, directors, and/or trustees they represent (collectively "Applicams") and that this Agreement shall be binding upon and constitute an obligation of the Applicants. [NEXT PAGE IS SIGNATURE PAGE] 4-10 IN WITNESS WHEREOF, this Agreement is executed by the CITY OF CHULA VISTA acting by and through it's Mayor or designated and authorized representative thereto, and by the Owner/Applicant. OTAY RA.,'1CH VrLLAGE I1-PC-13, A Delaware Limited Liability Company, Date: By Its Date: THE CITY OF CHULA VISTA, A California mWlicipal corporation By Is Approved as to form and legality this _ day of ,20 Bart Miesfeld, City Attorney By: City Attorney 4-11 THE ATTACHED AGREEtvfENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTOR1'ITY'S OFFICE AND WILL BE FORMALLY SIGNED UPON APPROVAL BY THE CITY COUNCIl: ) / . / / Dated: 1- FIRST tvfE TO THE LIEN AND DEVELOPtvfENT IMP ACT FEE P A YtvfENT PLAN PROGRAM AGREEtvfENT BETWEEN OT A Y RANCH VILLAGE II - PC-I3, LLC AND THE CITY OF CHULA VISTA FOR CASITA DE A VILA MODEL HOtvfE UNITS 4-12 RECORDING REQUESTED BY, AND WHEN RECORDED MAIL TO: CITY OF CHULA VISTA Attn: No transfer tax is due as this is a conveyance to a public agency ofless than a fee interest for which no cash consideration has been paid or received For Recorder's Use Only FffiSTAMENDMENT TO THE LIEN At~D DEVELOPMENT IMP ACT FEE PAYMENT PLAN PROGRAlVI AGREEMENT THIS fuVlE~DMENT TO LIEN AND DEVELOPMENT IMP ACT FEE PAYMENT PLMI PROGRAM AGREEMENT ("Agreement"), dated .20-, fOf reference only and executed on the date on which the last party signs, by and between Olav Ranch Villae:e IT-PC.13 LLC ("Owner"), and the CITY OF CHULA VISTA, a California municipal corporation and charter city ("City") with reference to the following facts: A. Owner is the owner of that certain real property in the City OfChula Vista, County of San Diego, State of Cali fomi a, more particularly described on Exhibit "A" attached ("Property"). B. On May 12.2009 the City Council of the City approved the Resolution No. 2009-105. The Development Impact Fee Payment Plan Program Agreement for Casita de Avila Model Home Units, Document No. "Original Agreement" with Otay Ranch Village II-PC.13, LLC. C. Due to adjustments in the land use designation, City Staff and Owner agree that an amendment is needed for the Original Agreement to reflect the correct amount of deferred fees. NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS. I. Exhibit "B" in the original agreement is replaced by Exhibit "B'" attached to this Agreement. 2. All other terms and condition not expressly modified by this Agreement shall remain in full force and effect. 3. The Owner agrees and is obligated to pay ail costs associated with the recording of the Agreement. 4. Each signatory to this Agreement represents, warrants, and certifies that he/she has the authority to enter into this Agreement on behalf of the Owner, the agencies/companies/trusts, respective officers, directors, and/or trustees they represent (collectively "Applicants") and that this Agreement shall be binding upon and constitute an obligation of the Applicants. [NEXT PAGE IS SIGNATURE PAGE] 4-13 IN" WITNESS WHEREOF, this Agreement is executed by the CITY OF CHULA VISTA acting by and through it's Mayor or designated and authorized representative thereto, and by the Owner/Applicant. OTA Y RANCH VILLAGE II-PC-13, A Delaware Limited Liability Company, Date: By Its Date: THE CITY OF CHULA VISTA, A California municipal corporation By Is Approved as to form and legality this ~dayof .20 Bart Miesfe!d, City Attorney By' City Attorney 4-14