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 3 of 5 proposal to construct a shopping center producing substantial jobs and sales tax revenues for the City of Colton. The structuring of certain elements of the assistance contemplated herein, therefore, is predicated upon the timely development of a shopping center. The Developer's sales tax revenue projections are attached hereto as Exhibit A. Methodology and Findings The detailed staff analysis and findings are incorporated herein by reference as Exhibit B. These three ring binders were previously transmitted to the Ad Hoc Committee and all members of the City Council. City staff analyzed the request for fee consideration in five principal subject areas: • Water System Impact Fees • Sewer System Impact Fees • Park Development Impact Fees • Storm Drain Impact Fees • Traffic Impact Fees In general, the staff methodology was to establish a standard for review, conduct research regarding the facts of the claim, and make a recommendation consistent with the equitable foundation of the various City codes and procedures. The task was made somewhat more difficult due to the lack of immediately available records and the time that has lapsed since the CFD 89-2 was formed. Each department head responsible for the collection of the subject fees prepared a report and recommendation which was then submitted to the Developer for review. After several staff level meetings, the Ad Hoc Committee was convened to resolve any conflicting issues. Summary of Major Agreement Terms The major terms of the Agreement are summarized as follows: • The Agreement to credit fees is, in part, consideration for development of a commercial shopping center on not less than 12 acres of the Developer's remaining land acreage. • The Agreement shall be a final resolution of all claims for credit/construction related to Developer's interest in properties within CFD 89-2 (except for potential credits related to oversized water and sewer improvements on Tracts 14158 and 14159). • The Developer shall by the April 10, 2001 tax date, make payments to satisfy all outstanding obligations on either the general property tax or special tax liens for all properties subject to this Agreement within CFD 89-2 and shall thereafter remain current on all such obligations. The current outstanding balance owed by the Developer is approximately $178,807. The Developer shall thereafter remain current on all CFD 89-2 obligations. • The Agreement shall have a term of five years. If the commercial development component is substantially complete by the end of year 4, then the Developer shall have full entitlement to any unused credits/waivers prior to the end of year 5. Substantially complete shall be defined as having a final certificate of occupancy issued by the City for not less than 90,000 square feet of