Agenda Item Wording:
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Developer Reimbursement Agreement - Authorize the City Manager to execute the reimbursement agreement for road improvements completed with River Run Ranch, Phases 6 & 7 subdivision, located on the north side of East St. Johns Parkway between McAuliff Street and River Run Street.
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Prepared by:
Luqman Ragabi, Associate Engineer (559)713-4362, Luqman.ragabi@visalia.city
Adrian Rubalcaba, Sr. Project Manager (559) 713-4507, adrian.rubalcaba @visalia.city
Jason Huckleberry, Engineering & Building Department Director (559)713-4495, jason.huckleberry@visalia.city
Department Recommendation: Staff recommends authorizing the City Manager to execute the reimbursement agreement for right of way and improvements constructed along St Johns Parkway, associated with the River Run Ranch, Phase 6 & 7 subdivision.
Summary:
The City Council authorized the recording of the final map for the River Run Ranch Phases 6 & 7 subdivision on March 17, 2025, creating 92 residential lots. As part of the executed Subdivision Improvement Agreement, the developer was required to construct offsite improvements along St. Johns Parkway, a designated collector roadway.
St. Johns Parkway is included in the City’s Circulation Element and Transportation Impact Fee (TIF) Program and certain portions of the improvements, such as additional pavement width, right-of-way dedication, and miscellaneous work exceeding the developer’s base responsibilities, are eligible for reimbursement.
The total reimbursement amount is $285,220.83, which will be issued in the form of Transportation Impact Fee credits applied at the time of building permit issuance for homes within the subdivision. The credits will be distributed incrementally until the full amount has been expended.
Background Discussion:
As a condition of approval for the River Run Ranch Phases 6 & 7 subdivision, the developer entered into a Subdivision Improvement Agreement requiring construction of offsite improvements along St. Johns Parkway, a collector roadway identified in the City’s Circulation Element. Required improvements included the installation of curb, gutter, pavement, streetlights, and associated infrastructure.
St. Johns Parkway is a funded collector within the City’s Transportation Impact Fee (TIF) Program, certain portions of these required improvements are eligible for reimbursement. Specifically, improvements such as additional pavement width, right-of-way dedication, and miscellaneous work performed beyond the developer’s base responsibilities qualify for reimbursement in the form of TIF credits.
The total reimbursement amount was calculated to be $285,220.83. These credits will be applied incrementally at the time of building permit issuance for homes within the River Run Ranch subdivision until the full reimbursement amount has been reached.
To verify eligibility and cost reasonableness, the Development Reimbursement Review Committee (DRRC), comprised of staff from the Community Development and Finance Departments, reviewed the proposed reimbursement on February 18, 2025. The DRRC confirmed the reimbursement amount was consistent with the City’s costs for comparable capital projects and recommended approval of the reimbursement agreement.
Fiscal Impact: Transportation Impact Fee credits totaling $285,220.83 will be applied to residential building permits within the River Run Ranch 6 & 7 subdivision.
Prior Council Action: On March 17, 2025, Council authorized recordation of the final map for River Run Ranch 6 & 7
Other: On February 18, 2025, the Development Reimbursement Review Committee reviewed and recommended approval of the reimbursement agreement.
Alternatives: N/A
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to authorize the City Manager to execute the reimbursement agreement for road improvements completed with River Run Ranch, Phases 6 & 7 subdivision.
Environmental Assessment Status: Complete
CEQA Review: N/A
Deadline for Action: 7/21/2025
Attachments:
1. Aerial Map
2. Agreement