Agenda Item Wording:
title
Developer Reimbursement Agreement - Authorize the City Manager to execute a development reimbursement agreement with TMT for arterial roadway improvements constructed with the Visalia Oaks Marketplace development located at the southeast corner of Visalia Parkway and Mooney Boulevard and authorize additional appropriation of $1.2 million from the Transportation Impact Fee Fund for Fiscal Year 2025/2026.
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Prepared by:
Adrian Rubalcaba, Sr Project Manager, (559)713-4507, Adrian.rubalcaba@visalia.city
Jason Huckleberry, Director of Eng & Bldg, (559) 713-4495, jason.huckleberry@visalia.city
Department Recommendation:
The Engineering and Building Department recommends that Council authorize the City Manager to execute the development reimbursement agreement with TMT, LLC for arterial roadway improvements constructed with the Visalia Oaks Marketplace commercial development totaling $2,301,664.07 and authorize an additional appropriation of $1.2 from the Transportation Impact Fee Fund for FY 25/26.
Summary:
The Visalia Oaks Marketplace is situated at the southeast corner of Mooney Blvd and Visalia Parkway and was developed by TMT, LLC In accordance with City requirements, the project constructed arterial and collector frontage improvements along Visalia Parkway, Mooney Blvd (State Route 63), and Mid Valley Avenue. All improvements associated with the Visalia Oaks Marketplace are complete and have been accepted by the City.
The developer seeks reimbursements totaling $2,301,664.07 for improvements constructed and right of dedications with the project in accordance with the City’s Transportation Impact Fee program. The attached Exhibit 1 of this staff report details the reimbursable components of the project. All reimbursement costs have been reviewed and approved by the City’s internal Developer Reimbursement Review Committee (DRRC) comprised of management staff from the Finance Department, Planning & Community Preservation Department, and the Engineering and Building Department.
Development reimbursements related to transportation projects on arterial and collector roadways are programmed annually in the CIP program (CIP9130), allocating $1,100,000 annually. To provide for several recent development reimbursement agreements, an additional appropriation from the Transportation Impact Fee fund is necessary in the amount of $1.2 million to satisfy this agreement.
Background Discussion:
The Visalia Oaks Marketplace is a retail commercial site located on the southeast corner of W. Visalia Parkway and S. Mooney Boulevard. The site consists of thirteen (13) commercial parcels created under Parcel Map 5359 that recorded in March of 2022. The site is currently occupied with an Aldi’s grocery store with additional commercial projects currently in development, including a Farmer Boys restaurant and fueling station and convenience store.
The commercial project constructed arterial roadway improvements to Visalia Parkway, and Mooney Blvd, as well as collector street improvements to Mid Valley Avenue. These improvements were extensive, consisting of curb, gutter, sidewalks, arterial street pavement, median curbs, median landscaping, traffic signal modifications, and street lighting.
Visalia Parkway is an arterial roadway that is funded through the Transportation Impact Fee (TIF) program. Consequently, portions of the required public improvements and right of way dedications on Visalia Parkway are eligible for reimbursement under the City’s impact fee program. Additionally, traffic signal modifications constructed with the project TIF funded and reimbursed through the program.
The total amount to be reimbursed to the developer is $2,301,664.07 for improvements and right of way dedication. The reimbursement will be made through a combination of cash payments for TIF already paid and future cash payments to the developer as additional projects within the project site developer and contribute transportation impact fees to the program.
Fiscal Impact: Cash reimbursement of $2,301,664.07 will be from the Transportation Impact Fee Fund (241). Timing of reimbursement payments will coincide with project transportation impact fee payments made as projects develop. Per TIF program requirements, the total reimbursement shall be paid at a maximum of two years from project Notice of Completion or final permit inspection approval.
Prior Council Action: The Visalia Oaks Marketplace project site was discussed and approved for annexation at the February 16, 2021 Council meeting.
Other: None
Alternatives: City Council may deny the requested authorization if citing issues with the development reimbursement agreement not being in accordance with City Municipal code.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to authorize the City Manager to execute the reimbursement agreement with TMT, LLC for arterial roadway improvements constructed with the Visalia Oaks Marketplace commercial development and appropriate $1.2 million from the Transportation Impact Fee Fund for Fiscal Year 2025/2026.
Environmental Assessment Status: Complete
CEQA Review: N/A
Deadline for Action: 6/16/2025
Attachments:
1. Draft Reimbursement Agreement
2. Exhibit 1 - Reimbursement Summary