HomeMy WebLinkAbout2001-04-26 - AGENDA REPORTS - GVR FUNDING (2)CITY OF SANTA CLARITA
AGENDA REPORT
City Manager
Item to be presented Ly: Steve Stark
UNFINISHED BUSINESS
DATE: April 26, 2001
SUBJECT: GOLDEN VALLEY ROAD FUNDING, CONSTRUCTION, AND
ACQUISITION AGREEMENT AMENDMENT
DEPARTMENT: Administrative Services
RECOMMENDED ACTION
1. The City Council, acting on behalf of the City, and as the legislative body of CFD No.
99-1, adopt Resolution, approving an amended and restated Funding, Construction, and
Acquisition Agreement, in connection with Golden Valley Road, and approving the
purchase of a 12 -acre parcel referenced therein.
2. The City Council, acting as the legislative body of CFD No. 99-1, adopt Resolution,
considering certain changes and modifications to CFD No. 99-1, and calling a public
hearing thereon.
In 1998, the City entered into a Development Agreement with Spirit Properties Ltd.
(Spirit") to develop a 200 -acre business park. On August 4, 1999, the City entered into a
Funding, Construction, and Acquisition Agreement (the "Funding Agreement") with Spirit
which provided that the City construct Phase I of Golden Valley Road extension in
conjunction with the Hart School District and the Santa Clarita Valley Facilities
Foundation.
Currently, the Phase I portion of Golden Valley Road is 85% complete and is expected to be
finished toward the end of May 2001. Phase 11 and III are the next critical links that will
extend Golden Valley Road north to Soledad Canyon Road. Originally, Phases 11 and III
were to be funded, using public financing, by establishing a community facilities district
and issuing Mello Roos bonds.
Through several public proceedings, the community facilities district was formed with the
intent to issue bonds for road construction. Since that time, business conditions changed,
and the idea of publicly financing the road was no longer considered an option for Santa
Clarita Business Park As a result Admin- tr '
> e ative Services has been working with the
Agenda item
GOLDEN VALLEY ROAD AGREEMENT AMENDMENT
April 24, 2001— Page 2
Transportation and Engineering Services Department and representatives from the Santa
Clarita Business Park in finalizing a revised plan for financing and constructing Golden
Valley Road Phases II and III.
Negotiations have taken place over the last two months with Santa Clarita Business Park
in order to ensure that under the new agreement both the City and the Developer are
mutually benefiting from the development of the business park and the construction of
Golden Valley Road Phases II and III. The new plan has the City constructing Phase III of
Golden Valley Road and Santa Clarita Business Park constructing Phase II of Golden
Valley Road. Both parties believe this plan will allow Golden Valley Road Phases II and III
to be constructed in a cost-effective and timely manner. The general terms of the new
agreement are as follows:
1. Santa Clarita Business Park will pay its Bridge and Thoroughfare Fees in advance,
totaling an estimated $4.6 million.
2. The City will construct Phase III, using dirt that will be moved from the site, Hart
Foundation, and the Santa Clarita Business Park property onto Golden Valley Road
Phase III and the 12 -acre property.
3. Santa Clarita Business Park agrees to contribute an additional $5 million to the fly -over
by providing funds, through a community facilities district, to construct interim traffic
improvements until a permanent traffic solution is built at the Golden Valley Road and
Soledad intersection. The City will also be provided benefits in the form of traffic
signals being installed with additional parking for the City's Sports Complex. A
summary is provided below:
$2.25 million Interim Improvements and Intersection Construction
$2.0 million Credit for Impact on Lost Pad Acreage
$.750 million Traffic Signals and Parking Lot
$5.0 million TOTAL
4. The City will modify the Community Facilities District lien on the Santa Clarita
Business Park property to include only parcels that will be contributing to the $2.25
million contribution to the fly -over.
5. Santa Clarita Business Park will construct Phase II of Golden Valley Road.
6. The City will purchase the 12 -acre property for $2.3 million, less the cost of improving
the site to the standard outlined in the Development Agreement.
7. The City will give Santa Clarita Business Park Bridge and Thoroughfare credits, in lieu
of paying cash for Phase II construction costs, in the amount not to exceed $1.5 million.
Additionally, a maximum of $1.5 million Bridge and Thoroughfare credits will be given
for construction of storm drains on Golden Valley Road.
GOLDEN VALLEY ROAD AGREEMENT AMENDMENT
April 24, 2001— Page 3
This new agreement will supercede the existing Funding Agreement but in no way
eliminates the obligations of the parties to construct Golden Valley Road. The City believes
this agreement will help facilitate the construction of Golden Valley Road in the most
efficient way.
ALTERNATIVE ACTIONS
1. City Council not approve an amended and restated Funding, Construction, and
Acquisition Agreement and not adopt a resolution considering certain changes and
modifications to CFD No. 99-1.
2. Other action as determined by City Council
FISCAL IMPACT
Santa Clarita Business Park will pay its Bridge and Thoroughfare fees, estimated at $4.6
million, up front. The City will use these fees to construct Golden Valley Road Phase III.
ATTACHMENTS
Amended and restated Funding, Construction, and Acquisition Agreement (Available in
City Clerk's reading file.)
Resolution approving an amended and restated Funding, Construction, and Acquisition
Agreement
Resolution considering certain changes of modifications to CFD No. 99-1
Amended CFD Report (Available in City Clerk's reading file.)
Map
SS:FO:hds
..d1\GVRAmmd2