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HomeMy WebLinkAbout2002-03-12 - AGENDA REPORTS - CYNCNTRY SENIOR HOUSING (2)CITY OF SANTA CLARITA AGENDA REPORT CONSENT CALENDAR City Manager Approval: Item to be presented by: Steve Stark DATE: March 12, 2002 SUBJECT: CANYON COUNTRY SENIOR HOUSING DEFERRED IMPACT FEE AGREEMENT DEPARTMENT: Administrative Services RECOMMENDED ACTION City Council authorize the City Manager to finalize a Deferred Impact Fee Agreement, subject to approval of the City Attorney. BACKGROUND On January 22, the City Council conceptually approved the adjusted impact fee to reduce the Canyon Country Senior Housing Project (200 units) by $946,432. At the same meeting, the Council also conceptually approved the idea of having the developer defer the payment of their fees over time through a formal agreement with the City. As a result, staff is returning tonight to Council with a deferred Impact Fee Agreement. The following information summarizes the agreement as proposed for approval: • The total amount that the City will defer is not to exceed $1,048,458 in development impact fees. • The deferred impact fee agreement will be for thirteen years. • The developer agrees to pay 3% simple interest, beginning one year from the date that building permits are issued. • Developer will begin making a minimum payment of $50,000 at year seven and will continue until year thirteen. • After year ten, an additional minimum payment, consisting of 75% of the developers net cash flow, will be made to the City until year thirteen, when the total impact fees will be paid in full. (See attached payment schedule.) This agreement will assist the developer with the necessary impact fee deferment that will allow the senior development to take place in a timely manner. City staff believes this agreement is fair and will provide the adequate mechanism to make the development viable for the developer as was requested. Agenda •� E,h �k e � Item. CANYON COUNTRY SENIOR HOUSING March 12, 2002 — Page 2 ALTERNATIVE ACTION Council not approve the agreement, and ask staff to reevaluate the points of the agreement. Other action as determined by Council. FISCAL IMPACT The City fees of $1,048,458 and the interest of $232,264 will total $1,280,722. This amount will cover the costs of development impact fees for the project in a manner that will allow the developer to make the senior housing project viable. ATTACHMENTS Deferred Impact Fee Agreement available in City Clerk's Reading file. Resolution Impact Fee Analysis Deferred Fee Repayment Schedule SS:FO:hds Council\ C=ymCountrySmiws.dw