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

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Report to City Council Regarding Satisfaction of Development Impact Fees Agreement with John Reichel March 6, 2001 Page 2 of 5 Most of the residential tracts included in the CFD were approved by the City before or shortly after the formation of the CFD. At the time, the City of Colton had but a few established development impact fees — most notably parks and drainage. The City has over the last few years added several new fees, including police, fire, library, city hall, and traffic among others. On November 1, 2001 Sunwest Enterprises submitted a request that the City Council find that certain fee obligations that would otherwise apply to the Developer's remaining properties within the CFD be deemed satisfied. Generally, the basis of this finding would be that fees were previously paid or that improvements were constructed that would have otherwise been funded by the development impact fees to be levied. To impose the full levy of fees upon the remaining properties would place an unfair burden upon these properties and constitute a double taxation. The Developer has also requested compensation for oversizing sewer and water facilities and for consideration to complete certain improvements originally intended to be financed through CFD 89- 2. The Developer indicated that a commercial center was contemplated on approximately 12.8 acres of his landholdings and that the City could expect annual sales tax revenues of $241,000 upon completion. To process the claim, the City Council directed staff to negotiate with the Developer and establish findings of fact related to the issues raised. The City Council also appointed an Ad Hoc Committee to review the issue and make a recommendation to the City Council. Discussion Legal Authorities Staff evaluated the Developer's request for fee credits with regard to the City's ordinances permitting such relief. Principally, Ordinance 0-00-02 provides: 1. That "the City Council is empowered to grant deferral, waiver or reduction of any fee imposed by that ordinance if, in the opinion of the City Council, properly supported by specific findings, deferral would allow a better or fairer financing arrangement to be developed and imposed, or where waiver or reduction is required because imposition of such fee or fees in full would cause inequities." 2. That "where it is determined that the development impact fees imposed ... are to construct the same improvements funded by a community facilities district, and previous contributions have been made by a developer to fund these improvements, said developer shall receive a credit in the amount that was contributed toward such improvements as an offset to the fees imposed by the Ordinance." In addition, Section 12.32.110 of the Colton Municipal Code provides that the City may negotiate reimbursement agreements with developers for the construction of oversized improvements. This authority was considered in the evaluation of the requests for consideration related to sewer and water system improvements. The development of a commercial shopping center on approximately 12.8 acres of property consisting of 120,000 square feet of commercial space was a major consideration in staff's evaluation of the Developer's request. The Developer's request was initially premised upon the