City of Corona
Staff Report
400 S. Vicentia Ave.
Corona, CA 92882
File #: 22-0169
REQUEST FOR CITY COUNCIL ACTION
DATE: 03/02/2022
TO: Honorable Mayor and City Council Members
FROM: Planning and Development Department
SUBJECT:
Request by Pacific Ventures Management to have the City initiate a request to the Western Riverside Council of Governments for early reimbursement of the Transportation Uniform Mitigation Fee in the amount of $3,355,000 for the Cajalco Road local street improvements paid by the developer of the Bedford Communities.
EXECUTIVE SUMMARY:
The master developer of the Bedford Communities is requesting an early reimbursement of the Transportation Uniform Mitigation Fee (TUMF) for the local street improvements paid by the developer and covered by the TUMF program. The local street improvements involved the widening of Cajalco Road from Interstate 15 to Temescal Canyon Road and from Interstate 15 to Bedford Canyon Road beyond the area of the Cajalco Interchange improvements. The City completed construction of the improvements in March 2021. The request for early reimbursement would be submitted by the City to the Western Riverside Council of Governments (WRCOG), which is the government entity that collects the TUMF and oversees the local street improvements in the TUMF program. The TUMF reimbursement for the local street improvements is $3,355,000.
RECOMMENDED ACTION:
That the City Council provide staff with direction on submitting a request to the Western Riverside Council of Governments on the consideration of an early TUMF reimbursement for the local street improvements paid by the developer of the Bedford Communities and constructed by the City.
BACKGROUND:
The City of Corona and the Western Riverside Council of Governments (WRCOG), which is a Joint Powers Agency comprised of the County of Riverside and 18 cities in western Riverside County, entered into a Memorandum of Understanding (MOU) on March 7, 2018 for Transportation Uniform Mitigation Fee (TUMF) credit. The MOU is specifically for TUMF credit for monetary contributions from the developer of the Bedford Communities. The Bedford Communities project is located in the Arantine Hills Specific Plan and was approved for 1,621 housing units, plus the potential for another City of Corona Page 1 of 4 Printed on 2/28/2022
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File #: 22-0169
Arantine Hills Specific Plan and was approved for 1,621 housing units, plus the potential for another 185 units of age-restricted housing. The project location is west of Interstate 15 and on the south side of Cajalco Road.
The project was approved by the City in May 2016. The developer also entered into a Development Agreement with the City, which was adopted on June 1, 2016. Per the agreement, the developer was required to pay a fair share cost of the Cajalco Interchange improvement based on the project’s impact to the circulation system. The developer’s fair share cost of the interchange improvement was 32.5 percent of the total cost. Additionally, the developer agreed to advance the funding for the remaining unfunded portion of the interchange improvement, which was 67.5 percent of the total construction cost. The unfunded portion was to eventually be funded by other development projects in the area and through the Western Riverside County TUMF program.
The TUMF Nexus Study shows an estimated cost of $44,251,000 for the Cajalco Interchange improvement, which is identified as a regionally significant transportation improvement. The study also identified local zone improvements, which included improvements on Cajalco Road beyond the boundary of the intersection. The local street improvements on Cajalco Road had a maximum cost of $3,355,000. This is in addition to the $44,251,000 obigation mentioned above.
Cajalco TUMF Improvements Nexus Study Costs
Funding Source Amount
Cajalco Interchange Improvement (RCTC)
TUMF Nexus Study Cost $44,251,000
Cajalco Local Street Improvements (WRCOG)
TUMF Nexus Study Cost $3,355,000
Total Cost $47,606,000
Pursuant to the Development Agreement, the developer advanced the transportation improvement funds to the City for the construction of the Cajalco Interchange improvement and the street improvements on Cajalco Road. The City and the developer entered into an Improvement and Credit/Reimbursement Agreement for the TUMF program on June 20, 2018. The credit/reimbursement agreement allows the City to issue the developer TUMF credit against the project for each building permit issued within the project. The developer’s funding of the construction cost for the Cajalco Interchange improvement and street improvements on Cajalco Road resulted in a TUMF credit of $47,606,000. Once the TUMF credit is exhausted, the developer is eligible to receive a reimbursement of the TUMF if the actual credit exceeds the developer’s TUMF obligation. The developer’s TUMF obligation for the project is $11,083,685, leaving a potential TUMF reimbursement of $36,522,315 to the developer (Estimated TUMF Credit $47,606,000 minus Developer’s TUMF Obligation $11,083,685 = TUMF Reimbursement $36,522,315).
To date, the developer of the Bedford Communities has been issued a TUMF credit of $2,734,496.
The TUMF credit balance on the project is $ 44,871,504.
The TUMF reimbursement is administered by two separate entities, WRCOG and the Riverside County Transportation Commission (RCTC). WRCOG manages the TUMF associated with local City of Corona Page 2 of 4 Printed on 2/28/2022
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File #: 22-0169
County Transportation Commission (RCTC). WRCOG manages the TUMF associated with local streets under the authority of the TUMF Zone. RCTC manages the regional TUMF program, which covers improvements to arterial roads that have a regional significance on the Regional System of Highways and Arterials. The street improvements paid by the developer for the widening of Cajalco Road from Interstate 15 to Temescal Canyon Road and from Interstate 15 to Bedford Canyon Road are local street improvements under the TUMF Zone, which is managed by WRCOG. The improvements paid by the developer for the Cajalco Interchange is a regional improvement, which is managed by RCTC.
ANALYSIS:
The developer discussed with WRCOG the possibility of getting a TUMF early reimbursement on the local street improvements portion, which was paid by the developer for the widening of Cajalco Road. The TUMF improvement falls within the TUMF Zone program managed by WRCOG and was identified in the TUMF Nexus study with a maximum cost of $3,355,000. The City’s MOU with WRCOG also identifies this improvement to receive a TUMF credit for the monetary contribution provided by the developer. The City completed construction of the improvements in March 2021.
WRCOG explained to the developer and the City that WRCOG staff will only present the discussion to the WRCOG Executive Committee if the request for reimbursement is made by the City. A TUMF reimbursement is normally considered when the project is completed and the project’s TUMF credit has been exhausted. The Bedford Communities consist of four development phases. Only Phase 1 has been completed and the developer still has TUMF credit available. WRCOG staff further stated that their request would be to receive direction from the Committee to determine if staff should even consider processing an early reimbursement request.
City staff did ask WRCOG if early TUMF reimbursement would jeopardize future funding opportunities in the City. WRCOG said funding is administered through their Zone Administrative Plan and not WRCOG staff. The Zone Technical Advisory Committee is responsible for the prioritization of projects, selection of the lead agency for each project, and review of all projects for consistency within the Zone. Therefore, early TUMF reimbursement does not have any effect on future TUMF-related projects.
The TUMF reimbursement is paid from funds collected through the TUMF program. This fee is a regional impact fee and not a local impact fee. The fees collected for TUMF go directly to WRCOG and are not retained by the City. Therefore, the proposed request does not have a financial impact on the City.
FINANCIAL IMPACT:
The proposed request will have no financial impact on the City. TUMF is a regional impact fee and not a local development impact retained by the City.
ENVIRONMENTAL ANALYSIS:
The proposed request is not considered a project under the California Environmental Quality Act City of Corona Page 3 of 4 Printed on 2/28/2022
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File #: 22-0169
(CEQA) and not subject to environmental analysis.
PREPARED BY: JOANNE COLETTA, PLANNING AND DEVELOPMENT DIRECTOR City of Corona Page 4 of 4 Printed on 2/28/2022
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