Agenda Item Wording:
title
Developer Reimbursement Agreement - Authorize the City Manager to approve the developer reimbursement agreement for the River Run Ranch 8, 9 &10 subdivision located on the north side of East St. Johns Parkway between McAuliff Street and River Run Street.
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Agenda Date: 06/15/2026
Prepared by:
Luqman Ragabi, Associate Engineer, (559)713-4362, Luqman.ragabi@visalia.gov
Jason Huckleberry, Engineering & Building Director, (559)713-4495, jason.huckleberry@visalia.gov
Department Recommendation: Staff recommends authorizing the City Manager to execute the reimbursement agreement for right-of-way dedications along St. Johns Parkway and Tower Road associated with the River Run Ranch 8, 9 &10 subdivision.
Summary:
This item requests authorization for the City Manager to execute a reimbursement agreement for right-of-way dedications associated with the River Run Ranch 8, 9 &10 subdivision in the amount of $291,323.04. In accordance with the transportation impact fee program, the agreement provides transportation impact fee credits for eligible dedications along St. Johns Parkway and Tower Road (approximate Road 148 alignment, road to be officially named later), as recommended by the Development Reimbursement Review Committee.
Background Discussion:
The River Run Ranch 8, 9 &10 subdivision will create 68 residential lots. As part of the tentative map entitlement, the developer was required to dedicate right-of-way through an Irrevocable Offer of Dedication (IOD) for St. Johns Parkway, a designated collector roadway identified in the City's circulation element, and Tower Road, a designated arterial roadway identified in the City's circulation element.
St. Johns Parkway and Tower Road are designated collector and arterial roadways within the City's transportation impact fee (TIF) program, and portions of the required right-of-way dedication are eligible for reimbursement. The River Run Ranch 8, 9 &10 development is dedicating right-of-way necessary to accommodate these future improvements and the reimbursement is being provided through TIF credits.
As part of the subdivision requirements for River Run Ranch 8, 9 &10, the developer is required to pay cash-in-lieu fees for future improvements associated with St. Johns Parkway and Tower Road. These fees are collected by the City to help fund planned transportation improvements needed to serve future growth and development. The cash-in-lieu fees paid by the developer included costs associated with future roadway improvements such as pavement construction, curb and gutter, sidewalk, parkway improvements, and street lighting within the ultimate right-of-way. Because River Run Ranch 8-10 is dedicating right-of-way needed to accommodate these future improvements, reimbursement is being provided for eligible portions of the dedication through Transportation Impact Fee credits.
The total reimbursement amount is $291,323.04, which will be provided to the developer 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 total reimbursement amount has been fully accrued.
On February 18, 2025, the reimbursement agreement for the River Run Ranch Subdivision 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.
Fiscal Impact including annual maintenance and operating costs: Transportation Impact Fee credits in the amount of $291,323.04 will be applied to residential building permits within the River Run Ranch 8-10 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: None
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to authorize the City Manager to execute the reimbursement agreement for dedications completed by the River Run Ranch 8, 9 &10 subdivision.
Environmental Assessment Status: N/A
CEQA Review: N/A
Deadline for Action: 06/15/2026
Attachments:
1. Aerial Map
2. Draft Agreement
Strategic Goal: Indicates which City Strategic Goal(s) this item supports. Check all that apply.
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