Development Impact Fees Agreement with John Reichel (dba Sunwest Enterprises)

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REQUEST FOR FEE CREDITS/WAIVERS SUNWEST ENTERPRISES (Traffic Impact Fees) formula as illustrated in Exhibit E is 7.74 units per commercial acre based upon a lot coverage assumption of 22.5%. Staff recommends use of a factor of 7.75 residential units per commercial acre. Based upon this factor, a. traffic signalization fee would apply to all commercial uses based upon $2,065.38 per acre. This approach has the advantage of simplicity in administration and is consistent with prior practice on properties within the CFD 89-2. It acknowledges that the CFD funded improvements that were in excess of normal tract requirements. The Developer is still required to pay a traffic impact fee but at a rate much lower than the current fee schedules provide. Ordinance 0-00-02 Approach Ordinance 0-02-00 provides that if the City can determine that the improvements completed by the Developer would have otherwise been the burden of the traffic impact fee program, then it would be appropriate to grant a credit for the value of these improvements toward the traffic impact fees currently due. The Developer constructed improvements that staff believes qualify under this definition. In fact, the Official Statement for CFD 89-2 specifically states that the Developer(s) are constructing regional sewer, water, street and landscaping improvements. The Developer(s) constructed improvements in excess of what would normally have been conditioned had the projects not been included in a CFD. The appropriate evaluation in accordance with Ordinance 0-00-02 would be to identify each street project constructed by the CFD, establish the total construction cost, determine what percentage if any qualified as a regional improvement under our current fee ordinance, and then apportion the eligible costs to the appropriate Developer(s). Staff has attempted to complete this evaluation as illustrated in Exhibit F attached hereto. The difficulty with this approach is determining ten years after project approval, what improvements would have been a condition of approval of a tract map or a mitigation measure under CEQA and which ones would have been a City responsibility. In addition, the favorable financing terms provided by the CFD may have been a consideration for the expanded scope of improvements. In any event, staff has attempted to construct the analysis by assuming that all off-site street improvements qualified as traffic impact fee eligible projects. Based upon assessment, the appropriate fee credit would be $353,456 for the subject Developer. Under this approach, the Developer is entitled to a credit against actual fees assessed under the current schedules. This would render the Developer's remaining acreage traffic fee satisfied given the proposed developments and current fee schedules. Financial Impact Because the strict application of the City's Ordinances appears to present a more favorable outcome for the Developer, the Ad Hoc Committee's recommendation is to apply the Developer's basic formula for calculating traffic impact fees. This formula is as follows: $266.50 per residential unit in CFD 89-2 and $1,066.00 per commercial acre in CFD 89-2. 5of7