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Home My WebLink About2002-03-26 - AGENDA REPORTS - SENIOR HOUSING FEE AGMT (2)CITY OF SANTA CLARITA AGENDA REPORT CONSENT CALENDAR DATE: March 26, 2002 City Manager Approval: Item to be presented SUBJECT: CANYON COUNTRY SENIOR HOUSING AGREEMENT DEPARTMENT: Administrative Services RECOMMENDED ACTION Steve Stark IMPACT FEE City Council approve Resolution, authorizing the implementation of the Deferred Impact Fee Agreement and reduction of Developer Impact Fees for the Canyon Country Senior Housing Agreement. 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 Resolution authorizing the implementation of the 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.) �`-F 6z2 Agenda Item :w CANYON COUNTRY SENIOR HOUSING March 12, 2002 — Page 2 ALTERNATIVE ACTIONS 1. Council not approve the agreement, and ask staff to reevaluate the points of the agreement. 2. 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\Cany=Con ySmiom.doc IMPACT FEE ANALYSIS Proposed 200 Unit Affordable Senior Housing Project The proposed 200 Unit Affordable Senior Housing Project is subject to provide $1,994,940 in City fees for Bridge and Thoroughfare District Fees, Parkland Dedication Requirement Fees, and Transit Impact Fees. The following table identifies the proposed impact fee requirement for the proposed project. PROPOSED PROJECT IMPACT FEES FEE TYPE FULL FEE Bride and Thoroughfare $1,400,000 Parkland Dedication $554,940 Transit Mitigation $40,000 TOTAL $1,994,940 Bridge and Thoroughfare District Fee The proposed 200 unit affordable senior housing project would be required to pay $1,400,000 in Bridge and Thoroughfare District Fees. However, the B & T fee assumes that the apartment would be rented at an average market rate. Fewer trips would be generated by a senior occupied apartment complex as opposed to a typical apartment complex. According to the Institute of Transportation Engineering Manual, a senior oriented apartment project produces approximately 55% fewer trips than a typical apartment project. A 55% reduction or subsidy in fees would be as follows: 55% of 1,400,000 = $770,000 $1,400,000 - $770,000 = $630,000 The project's total of $630,000 paid towards the Via Princessa Bridge and Thoroughfare District is more that the District would receive for funding based on the current CC (Community Commercial) zoning designation of the site. This analysis is based on the existing 5.84 acre CC (Community Commercial) site being developed as a commercial project, which would then be responsible for a B & T payment of $292,000. Therefore, with a reduction of the B & T fee, the proposed 200 unit senior housing project would still contribute $338,000 more than a commercial development at this site. However, this is only an estimate and the B & T Fee is scheduled to increase in the future and the applicant would be required to pay the fee in place prior to the issuance of Building Permits. This reduction is consistent with the Bouquet Canyon Senior Apartment Bridge and Thoroughfare fee reduction. BRIDGE AND THOROUGHFARE DISTRICT FEE FULL FEE PROJECT SUBSIDY NEW TOTAL SPECIFIC FEE REDUCTION $1,400,000 $770,000 0 $630,000 Parkland Dedication Requirement Fee The proposed 200 Unit Affordable Senior Housing Project will be required to pay $554,940 in Parkland Dedication Fees without any credit. However, the applicant can provide on-site recreational activities and receive Parkland Dedication Requirement Fee credit for 30% of the total required fee. Therefore in order to obtain a 30% fee subsidy, the applicant would need to provide approximately 24,173 square feet of on-site recreational space which is one third of the project's requirement or 55% of the required 1.85 acre requirement. The fees with a 30% reduction would equal $388,458 which would be a reduction of $166,482. PARKLAND DEDICATION REQUIREMENT FEE FULL FEE *PROJECT SUBSIDY NEW TOTAL SPECIFIC FEE REDUCTION $554,940 $166,482 0 $388,458 * The 30% reduction includes providing 24,173 square feet of on-site recreational space. Transit Impact Fees The City's Transit Impact Fee is calculated at $200 per unit. For the proposed project, the Transit Impact Fee would equal $40,000. The reduction/subsidy of the Transit Impact Fee for the Bouquet Canyon Senior Apartment project was based on a 50% reduction due to the Santa Clarita Valley (SCV) Senior Center's commitment to operate a van/tram for the project, and transit service and amenities that already existed near this location which served the site. The proposed project does not have existing transit service or amenities near the site. The Transit Impact Fee is required in order to ensure that additional services and amenities can be provided. However, the Senior Center will be providing transit service to the proposed project which will reduce the impact to the City's Transit Services. Therefore, Transit could support a fee subsidy of 25% which would equal $30,000 in Transit Impact fees. TRANSIT IMPACT FEE FULL FEE PROJECT SUBSIDY NEW TOTAL SPECIFIC FEE REDUCTION $40,000 $10,000 0 $30,000 TOTAL IMPACT FEES WITH RECOMMENDED REDUCTION FEE TYPE FULL FEE PROJECT FEE REDUCTION SUBSIDY DEVELOPER I OBLIGATION Bridge and Thora11 111 1 111 0 '.. 1 111 Parkland Dedication • 1 .. 0 Transit Mitigation TI $1,048,458 Therefore, with a fee reduction using a similar methodology as the Bouquet Canyon Senior Apartments the proposed 200 unit affordable senior housing project would be subject to pay $1,048,458 (B & T Fee, Parkland Fee, Transit Fee). e� 00 00 00 00 00 00 00 00 00 CD V V p eM d� er eM 'dam 10 .d 40 CD Ll- o 0 ce V 6 I v G6 ce 00 m m m m Lc co O m a o O O o o O m0 L- w 4 cli O °ao C11 C11 0 � 00 I acs 0 0 0 0 0 0 0 0 0 0 c m 00 Oo v 00 � cli ,a Bodo d co c11 d L- m d t, d ado b z U r O Cml9 Co 'dam tic N t m � O O O cc cc 0 A a 1%0 W N Lo H H H N CJ d �I d d 0 0 0 0 0 0 U o 0 0 0 0 0 0 C 0 0 0 o 0 0 0 0 0 0 0 0 0 �aaF m A m w er 1-t v v m lei N N 0 U o a m m m r m m m m a; N c cq �6 cq r cq y �a a c w Un 0 Ll co m 0 cq m t Un U'j cn L, <r o to cq v V m L- cl L- y o kr r� co � 1-4 co o co r C14 cq cc cc o z q m 0 0 r- m - cfl w cq L6 6 o C11 do to co O cq v to m m m r-1 N cq N N N m m m a° .� CV m !M to z n m m aq F