HomeMy WebLinkAbout2005-05-24 - AGENDA REPORTS - TRACT 52385 B&TDIST REFUND (2)CONSENT CALENDAR
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SUBJECT:
DEPARTMENT:
Agenda Item: �a
CITY OF SANTA CLARITA
AGENDA REPORT
City Manager Approval:
Item to be presented by:
May 24, 2005
APPROPRIATE FUNDS TO REFUND BRIDGE AND
THOROUGHFARE DEPOSIT FOR TRACT NO. 52385
Building and Engineering
City Council appropriate $517,440.00 from the Eastside Bridge and Thoroughfare (B&T) District
to Account No. 4362-8001 and direct staff to refund previously paid B&T funds in the same
amount. The refund will be distributed accordingly: $320,812.80 to Land America Lawyers Title
(62 percent), and $196,627.20 (38 percent) to HackerBraly Trust Account at Bank of Santa
Clarita.
BACKGROUND
In April 2001, Zephyr Newhall Limited Partnership (Zephyr) and the City entered into an
agreement to fund and build the segment of Golden Valley Road between Siena Highway and
Green Mountain Drive. This stretch of road is located in Tract No. 48892 in the southern portion
of the City. The "Funding Agreement for Golden Valley Road/VTTM 48892 Costs" was
amended on May 27, 2003 to include D.R. Horton (Horton) when that developer took over the
project.
Per the original agreement, Zephyr intended to build Golden Valley Road in Tract No. 48892,
receive B&T credits for the infrastructure improvements, and then use those credits to satisfy the
B&T obligation for other Zephyr projects in the Eastside B&T District. Such use is allowed
under Eastside B&T District policy and is common practice in each of the City's four B&T
districts.
In 2003, Zephyr Newhall sold its land in Tract No. 48892 to Horton, but retained a portion of the
future Golden Valley Road B&T credits. Those credits, when issued, were to be used to pay the
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B&T obligation for Tract Nos. 52385 and 53419; territory within the Eastside B&T District
located in the vicinity of the future Sierra Highway/Golden Valley Road intersection.
The Golden Valley Road construction project was delayed and is just now nearing completion;
however, Zephyr moved forward with development plans for Tract No. 52385 in 2004. The
project timelines did not match and Zephyr was not able to use B&T credits to fulfill its B&T
obligation. In May 2004, the City agreed that the B&T fees for Tract No. 52385, when paid,
would be set aside and held by the City until such time that credits were issued for Golden Valley
Road. When that happened, the Zephyr B&T credits would then be used to satisfy the B&T
requirements for Tract No. 52385, and the $517,440.00 that Zephyr paid to the City as a deposit
would then be refunded.
On April 15, 2005, the City issued $2,130,000.00 in Eastside B&T credits for work completed on
Golden Valley Road in Tract No. 48892. Pursuant to a subsequent lawsuit, that credit was
distributed to Zephyr Newhall and Draper Partners. Now that the credits have been issued,
Zephyr can use its credit balance to fulfill the B&T obligation for Tract No. 52385. With the
B&T fees satisfied through credits, the City can now reimburse Zephyr Newhall and Draper
Partners the $517,440.00 that was paid to the City in 2004.
This item will fulfill the agreement between the City and Zephyr, and allow the funds being held
on deposit to be reimbursed back to the developer.
ALTERNATIVE ACTIONS
Other action as determined by the City Council.
FISCAL IMPACT
The Eastside B&T District currently has a deficit fund balance of $895,046.00. The
reimbursement payment of $517,440.00 will increase the deficit fund balance to $1,412,486.00.
The District has continued current operations through the use of loan proceeds from the General
Fund as well as other Bridge and Thoroughfare funds. These loan proceeds have provided the
District with the necessary available cash to fund operations and projects. The District's current
available cash is $6,642,301.00. This cash, in conjunction with additional available Developer
Fee loans of up to $5,000,000.00, is sufficient to cover the remaining current year appropriations
of $7,729,951.00, as well as future anticipated developer reimbursements and reservations.
ATTACHMENTS
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