HomeMy WebLinkAbout2002-01-22 - AGENDA REPORTS - SENIOR HOUSING IMPACT FEES (2)UNFINISHED BUSINESS
DATE:
CITY OF SANTA CLARITA
AGENDA REPORT
City Manager Approval:
Item to be presented by: Enrique Diaz
January 22, 2002
SUBJECT: DEVELOPMENT IMPACT FEE ADJUSTMENTS AND DEFERRED
IMPACT FEE AGREEMENT FOR THE PROPOSED CANYON
COUNTRY 200 -UNIT AFFORDABLE SENIOR HOUSING PROJECT
LOCATED EASTERLY OF SIERRA HIGHWAY AT THE TERMINUS
OF THE PROPOSED FLYING TIGER DRIVE (DEVELOPER:
JULES SWIMMER)
DEPARTMENT: Planning and Building Services
RECOMMENDED ACTION
Conceptually approve the proposed impact fee adjustment and the deferred impact fee
agreement and direct staff to return to City Council at a later date to approve the impact
fee adjustment and finalize the deferred impact fee agreement subject to City Attorney
approval.
BACKGROUND
The applicant, Community Housing Development, Inc., is requesting impact fee assistance
for the 200 -unit affordable senior housing project that was presented to the City Council on
November 27, 2001. On that date the City Council unanimously approved the General Plan
Amendment, Conditional Use Permit, Variance, Negative Declaration, and held the first
reading of an Ordinance for a proposed Zone Change. There was no action on the
applicant's request for impact fee assistance at this meeting. However, the City Council
directed staff to return in January 2002 with some additional impact fee analysis.
Staff hired a financial consultant, Stan R. Hoffman Associates, Inc., to review the
applicant's pro forma. The pro forma identifies the applicant's economic assumptions with
regard to the proposed senior housing project. The financial consultant addressed two key
areas:
• Are the pro forma standards within industry standards?; and
• The appropriateness of their financial assistance request to adjust and/or defer the
City's Impact Fees.
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City Council Meeting
January 22, 2001
Page 2 of 3
ANALYSIS
Impact Fees
The applicant has requested impact fee assistance of approximately $1,994,940. The
proposed 200 -unit affordable senior housing project is required to pay $1,994,940 which
includes Bridge & Thoroughfare Fees, Parkland Dedication Fees, and Transit Impact Fees
(see Attachment A). Staff recommended a project specific impact fee reduction of $946,482
by not collecting the full fees ($1,994,940 fee), therefore reducing the developer's fee
obligation to $1,048,458. This reduction is based on the use and project amenities to be
provided by the applicant.
PROPOSED PROJECT IMPACT FEES
FEE TYPE
FULL FEE
PROJECT FEE
SUBSIDY DEVELOPER
Bridge and Thoroughfare
$1,400,000
REDUCTION
$770,000
OBLIGATION
0 $630,000
Parkland Dedication
$554,940
$166,482
0 $388,458
Transit Mitigation
$40,000
$10,000
0 $30,000
TOTAL
$1,994,940
$946,482
0 $1,048,458
Deferred Impact Fee Agreement
The developer's obligation with the proposed project fee reduction is $1,048,458 for the
three (3) fees (B & T, Parkland, and Transit). In order to assist the developer with the
proposed project, the financial consultant proposed that the total developer obligation be
paid and collected over a 13 year period through a deferred revenue agreement. The
deferred revenue agreement would allow the applicant to defer the payment of impact fees
to a later date. However, the City would still receive full payment of the Developer's
Obligation with minimal interest.
Through the deferred revenue agreement, the applicant would enter into an agreement over
a 13 year period. The City would receive annual interest payments at 3% on the principal
balance. Between Year 7 and Year 13, the developer would be required to make payments
of $50,000 per year to the principal balance. Once the developer's debt is paid from the
Project Cash Flow ($1,249,706), 75% of the Net Project Cash Flow would be paid to the City
as a principal reduction. Thus full payment to the City would occur no later than Year 13.
This analysis includes a 2.5% increase in rent for the project.
FISCAL IMPACT
An independently prepared fiscal impact analysis indicates that the project will have a
negative fiscal impact on the City's General Fund of $23,989 annually or $145,216 over the
City Council Meeting
January 22, 2001
Page 3 of 3
project's absorption period (five years). In determining the project's fiscal impacts to the
City's budget, the analysis assumes that full mitigation fees have been paid. With the
acceptance of the recommended action the City will be paid in full for all impact fees
associated with the project. The fee deferment plan will allow the developer to pay all fees
over a period of time in the amount of $1,048,458 (3% simple interest over 13 years will be
$341,044).
ALTERNATIVE ACTIONS
Impact Fees
1. Support a project specific impact fee reduction of $946,482 by not collecting the full fees
($1,994,940 full fee). The developer would have to pay impact fees totaling $1,048,458
(this would not include a deferred impact fee agreement).
2. Other action as determined by the City Council
Deferred Impact Fee Agreement
1. Support a Deferred Impact Fee Agreement with the applicant, Community Housing
Development, Inc., for the total amount of $1,048,458 to be paid at an increased
interest rate over a 13 year period (as opposed to the recommended 3% fixed rate).
2. Other action as determined by the City Council
ATTACHMENTS
Attachment A — Impact Fee Analysis
Attachment B — Deferred Fee Repayment Schedule
JJL: VPB:ed
s:\pbs\current\2001\01047\Council\Second Reading\ CCreport
ATTACHMENT A
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
$1,400,0001 $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 p
$30,000
TOTAL IMPACT FEES WITH RECOMMENDED REDUCTION
FP:I:'CYI'Is'
FULL FEE
PROJECT FHT.
SUBSIDY DEVELOPER
a—iTkl n '
Dedication
•„ ,,,
REDUCTION
$770,000
—$166,
OBLIGATION
$630,000
8
'gKM,,,
$1,994,940
$946,482
$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).
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