HomeMy WebLinkAbout2013-03-26 - AGENDA REPORTS - RIVER VILLAGE QUIMBY (2)CONSENT CALENDAR
DATE:
SUBJECT:
DEPARTMENT
Agenda Item: 12
CITY OF SANTA CLARITA
AGENDA REPORT
City Manager Approval
Item to be presented by:
March 26, 2013
h
Rick Gould
RIVER VILLAGE QUIMBY AGREEMENT WITH NEWHALL
LAND COMPANY
Parks, Recreation, and Community Services
RECOMMENDED ACTION
1. City Council authorize the City Manager to enter into an escrow agreement to hold
$1,000,000 as security for the net value Villa Metro Project Quimby obligations.
Authorize staff to request distribution of escrow proceeds if River Village Park
improvements are not completed in a manner consistent with the City's agreement with the
Newhall Land Company made and entered into January, 2008.
BACKGROUND
The final two entitled residential land developments by the Newhall Land Company within the
City of Santa Clarita are called River Village and Villa Metro. These two projects lie on either
side of the Santa Clara River east of Bouquet Canyon Road. The River Village Project is
partially developed and consists of medium -to -large, single-family dwellings. The construction
of small, single family homes in Villa Metro is anticipated to commence shortly. This item was
brought before the Council on July 10, 2012, to consider a draft.agreement intended to satisfy
certain conditions of approval for the project. Contained within the approved agenda item was
Council's authorization to hold an irrevocable offer of dedication for a staff -approved property at
an appraised value of no less than $900,000 as security for the net value of the Villa Metro
Project Park Improvement Fees (Quimby) obligation.
Newhall Land Company had requested that the City accept an irrevocable offer of dedication for
a parcel of land as security against the satisfaction of Quimby fees for the Villa Metro Project.
The various private recreation facilities built and pending in the River Village Project, together
with the 5.2 -acre public park that ties Central Park to the Santa Clara River, will nearly satisfy
the Quimby obligations for both projects. Even without potential reductions to the the Villa
app Flo tUED
Metro development, the remaining net Quimby fees for both are estimated at a maximum of
$700,000.
On June 7, 2012, a duly noticed meeting of the City Council Development Subcommittee was
held to discuss topics related to the fulfillment of conditions of approval for two residential
subdivision projects in the City entitled by the Newhall Land Company. The subcommittee
recommended that this item be presented to the Council for consideration.
During the July 10, 2012, meeting, the Council authorized the City Manager to hold a dedication
of a parcel of land with an appraised value of at least $700,000. Newhall Land Company has
since requested that the land dedication be replaced with a cash deposit in escrow in the City's
favor.
The cash amount proposed to be placed in escrow is $1,000,000 and its release would be
contingent on the same factors outlined in the property dedication agreement brought before the
City Council on July 10, 2012. Staff believes that this new escrow proposal presents better
security to the satisfaction of the Quimby obligations and is in support of this change.
ALTERNATIVE ACTIONS
Other action as determined by the City Council.
FISCAL IMPACT
The City would not receive the cash Quimby fees owed by the Villa Metro Project under the
proposed agreement unless Newhall Land Company fails to complete its development of public
park spaces within the River Village Project by the end of calendar year 2014. This would be
consistent with all previous residential projects generated by Newhall Land Company in that they
have historically built sufficient qualifying recreational facilities to more than offset the
obligations created by their developments.