Agenda Item Wording:
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Developer Reimbursement Agreement and Appropriation of Funds - Authorize the City Manager to execute the reimbursement agreement with Visalia Parkway Partners Inc., for Visalia Parkway Phase 2 widening from west of Dans Lane to Woodland Street, in the amount of $3,281,799.52 with modified payment terms; and further authorize the additional appropriation of $1,788,400 from the Transportation Impact Fee Fund.
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Prepared by:
Sarah MacLennan, Assistant Engineer, sarah.maclennan@visalia.city, (559) 713-4271
Adrian Rubalcaba, Sr. Project Manager, adrian.rubalcaba@visalia.city (559) 713-4507
Jason Huckleberry, Director of Eng & Bldg, jason.huckleberry@visalia.city, (559) 713-4495
Department Recommendation:
Staff recommends that City Council:
1. Authorize the City Manager to execute a development reimbursement agreement with Visalia Parkway Partners Inc., for arterial roadway improvements along Visalia Parkway from Dans Lane to Woodland Street in the amount of $3,281,799.52 with modified payment terms consisting of monthly progress payments; and
2. Authorize an additional appropriation of $1,788,400 from the Transportation Impact Fee Fund (241) for FY 25/26.
Summary:
The Visalia Parkway commercial center, a 28.7-acre commercial site located at the southwest corner of Mooney Boulevard and Visalia Parkway, was approved by Planning Commission on April 13, 2020. Per the project conditions of approval, Visalia Parkway (a 4-lane arterial roadway) was required to be widened to its ultimate southerly right of way limits extending from Mooney Boulevard to west of Dans Lane. The widening is to be completed in two phases, with Phase 1 being along the developments parcel frontage, between Mooney Boulevard and Woodland Street, and Phase 2 offsite improvements extending Visalia Parkway widening from Woodland Street to just west of Dans Lane.
Phase 1 is currently under construction and largely complete, and its associated reimbursement agreement was previously approved by Council on September 3, 2024. Phase 2 construction is slated to begin upon execution of the Phase 2 reimbursement agreement. The Visalia Parkway widening improvements include additional pavement, concrete medians, streetlights, sidewalk, parkway, landscaping, and utilities (adding the south half of the arterial roadway).
The total amount to be reimbursed for Visalia Parkway Phase 2 offsite improvements is $3,281,799.52. The reimbursement would be due in the form of cash payments to the developer for the eligible facilities as the work progresses until completion. The reimbursement agreement specifies monthly progress payments to be available to the developer for work completed. This is a deviation from standard procedures, typically the reimbursement would be made after all work is completed and accepted by the City. This project is unique as it is supplementary work being performed by a development project for improvements not fronting the project itself. The additional $3,281,799.52 of arterial road work begins slightly west of the project site and extends one-half mile further west of the project site. A warranty bond to protect against defects for a year following the Notice of Completion will be required, which is standard policy for improvements installed by a private development.
Background Discussion:
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 City of Visalia budgeted $1.5 million from Measure R Local (131) for the construction of 6' of pavement, curb and gutter, sidewalk, streetlights, and landscaping along the southern portion of Visalia Parkway Phase 2 street widening during FY 22/23 budget cycle. This project was created to construct roadway frontage improvements typically associated with the developer's responsibility adjacent to a development project. The remaining balance due falls under the TIF program reimbursement stipulations for supplemental improvements installed by a private development.
On April 10, 2025, the reimbursement agreement for Phase 2 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, Engineering and Building, 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:
Cash reimbursement of $3,281,799.52 will be from the Transportation Impact Fee (241) and Measure R Local (131) Funds.
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Visalia Parkway Widening - Mooney to Dans (CP0551) |
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Project Budget: |
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Measure R Local Fund (131) |
$1,500,000 |
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Total Budget |
$1,500,000 |
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Estimated Costs: |
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Staff costs & misc. expenditures |
$6,515.40 |
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Reimbursement Agreement Amount |
$3,281,799.52 |
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Total Project Costs: |
$3,288,314.92 |
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Total Budget Deficit |
$(1,788,314.92) |
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Appropriation Request - TIF Fund 241 |
$1,788,400 |
Prior Council Action:
September 3, 2024 - Council authorized the City Manager to execute the reimbursement agreement for improvements of Visalia Parkway Phase 1 from Woodland Ave to Mooney Boulevard
Other:
August 8, 2024 - Development Reimbursement Review Committee reviewed and recommended for approval the reimbursement agreement for Phase 1 of the Visalia Parkway commercial center
April 10, 2025 - Development Reimbursement Review Committee reviewed and recommended for approval the reimbursement agreement for Phase 2 of the Visalia Parkway commercial center
Alternatives: None.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to Authorize:
1. The City Manager to execute a reimbursement agreement with Visalia Parkway Partners Inc., for arterial roadway improvements along Visalia Parkway from Dans Lane to Woodland Street in the amount of $3,281,799.52 with modified payment terms consisting of monthly progress payments; and
2. An additional appropriation of $1,788,400 from the Transportation Impact Fee Fund (241).
Environmental Assessment Status: N/A
CEQA Review: N/A
Deadline for Action: 8/4/2025
Attachments:
1. Aerial Exhibit
2. DRAFT Reimbursement Agreement