Agenda Item Wording:
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Developer Reimbursement Agreement at Visalia Parkway - Authorize the City Manager to execute the reimbursement agreement for improvements of Visalia Parkway Phase 1 from Woodland Ave to Mooney Boulevard.
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Deadline for Action: 9/3/2024
Submitting Department: Community Development
Contact Name and Phone Number:
Sarah MacLennan, Assistant Engineer - (559)713-4271, sarah.maclennan@visalia.city <mailto:sarah.maclennan@visalia.city> Chris Crawford, City Engineer - (559) 713-4331, chris.crawfrod@visalia.city <mailto:chris.crawfrod@visalia.city> Jason Huckleberry, Director of Eng & Building- (559)713-4495, jason.huckleberry@visalia.city <mailto:jason.huckleberry@visalia.city>
Department Recommendation:
Staff recommends authorizing the City Manager to execute the reimbursement agreement in the amount of $1,910,923.43 for improvements constructed along Visalia Parkway, from Woodland Ave to Mooney Boulevard, associated with the commercial development at the southwest corner of Mooney Blvd and Visalia Parkway.
Background Discussion:
The Visalia Parkway commercial center, a 28.7-acre commercial site located at the southwest corner of Mooney Boulevard and Visalia Parkway, was approved in March 1, 2022. Per the project conditions of approval, Visalia Parkway was required to be widened to its ultimate southerly right of way limits along the parcel frontage, as well as westerly to Dans Lane. The Visalia Parkway widening was to be completed in two phases with the first phase to be along the development frontage from Mooney Boulevard to Woodland Street. The second phase is to extend Visalia Parkway improvements to Dans Lane. Phase 1 improvements consisting of street widening, concrete medians, utilities, and a new traffic signal at the commercial entrance are nearing completion. A separate agreement for Phase 2 improvements will be processed soon, as that work will begin later this year.
Under Resolution No. 2008-58, adopted by City Council on December 1, 2008, the City will reimburse the developer for a portion of improvements made to streets designated in the City of Visalia Circulation Element as arterial and collector streets. Under Ordinance 2013-01, approved by Council on April 15, 2013, amendments were made to the timing of reimbursement paid by the City for private construction of planned transportation facilities. Per the TIF program stipulations, the developer will be fully reimbursed through credit of the Transportation Impact Fee (TIF) due at the time of building permit issuance and any balance remaining to be paid in cash within specific time periods following the issuance of a Notice of Completion.
The total amount to be reimbursed for the Visalia Parkway Phase 1 is $1,910,923.43. Impact fees were paid by a third-party developer for each building permit issued within the adjacent commercial development: therefore, credits were not applied at the time of building permit issuance for the development. Reimbursement would be due in the form of a cash payment to the developer of the off-site improvements.
Phase 1 total reimbursement amount for Visalia Parkway is $1,910,923.43.
• TIF paid to date by commercial development within the project: $354,608.98
• Remaining TIF fees anticipated to be due for the project: $2,819,780.93
On August 8, 2024, the reimbursement agreement for Phase 1 of the Visalia Parkway commercial center was reviewed and recommended for approval by the Development Reimbursement Review Committee (DRRC). The DRRC is comprised of staff from the Community Development and Finance Departments. The DRRC reviewed the reimbursement to ensure that the costs are reasonable compared to the City’s costs for comparable capital projects.
Reimbursement will be dispersed as development occurs.
Fiscal Impact:
Cash reimbursement of $1,910,923.43 will be from the Transportation Impact Fee Fund (241).
Prior Council Action: none
Other:
On August 8, 2024, the Development Reimbursement Review Committee reviewed and recommended for approval the reimbursement agreement for Phase 1 of the Visalia Parkway commercial center.
Alternatives: None
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to authorize the City Manager to execute the reimbursement for improvements of Phase 1 of the Visalia Parkway commercial center from Woodland Ave to Mooney Boulevard.
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Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments:
1. Aerial Exhibit