ADMINISTRATIVE REPORT
MEETING DATE: August 5, 2026 AGENDA CATEGORY: Consent - Agreements TO: Honorable Mayor and City Council
FROM: Phillip Burns, Development Services Director
DATE: July 15, 2026
SUBJECT: Transportation Impact Fee credit agreement with Encanto Holdings, LP and South Allen Partners, LLC
(not to exceed $49,990.32) for tract 7334 Phase 2 located at the northeast corner of South Allen Road and Panama Lane (Ward 5)
RECOMMENDATION:
Staff recommends approving the agreement.
BACKGROUND:
The Metropolitan Bakersfield Transportation Impact Fee program assures that new development bears a proportionate share of the cost of capital expenditures necessary to provide a regional transportation system consistent with the Circulation Element of the Metropolitan Bakersfield General Plan. Funds collected from transportation impact fees are used for the purpose of capital improvements to the transportation facilities contained within the Regional Transportation Facilities (RTI F) List. The Phase III RTIF list was adopted December 17, 2008 (Resolution 218-08). Such improvements shall be of the type as are made necessary by new development, including, but not limited to widening of roadways or installation of a traffic signal. No funds generated by the program are used for periodic or routine maintenance.
When a developer is required to construct an improvement that is on the Regional Transportation Facilities List, the developer is eligible to receive a credit against the traffic impact fees for that project.
The developer must submit a credit request, project description, and a complete cost estimate consistent with the unit costs established by the facilities list.
As a requirement of development of Tract Map 7334, Encanto Holdings, LP and South Allen Partners, LLC have constructed Panama Lane to full 1/2 width from Tract 7334 Phase 2 west boundary to the Phase 2 east boundary. The City has listed these improvements on the Phase III Regional Facilities List as required facilities for the orderly development of the transportation infrastructure required by the expected development of the Metropolitan Bakersfield General Plan. The City has budged $49,990.32 for the construction of these improvements. Encanto Holdings, LP and South Allen Partners, LLC wish to receive a transportation impact fee credit (not to exceed $49,990.32) for the construction of the above- listed improvement. The credit will be applied to Tract 7334 Phases 1 and 2, as listed on Exhibit C.
FISCAL IMPACT:
The credit is given to cover future transportation impact fees in exchange for work completed by the developer that is on the Regional Transportation List. There is no impact to the City’s General Fund.
COUNCIL GOAL:
Reliable Infrastructure
ATTACHMENTS:
TIF Credit Agreement