Agenda Item No: K.6
AGENDA REPORT
DATE: December 3, 2024
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Ordinance 2024-10
Second Reading and Adoption of Ordinance 2024-10 Approving the Sixth Amendment to the Amended and Restated Development Agreement Between the City of Fairfield and Canon Partners LLC Regarding Land in the Train Station Specific Plan Area
Funding Source: N/A
Contact: Meily M Sheehan, (707) 428-7474
RECOMMENDED ACTION
Provide second reading and adopt Ordinance 2024-10.
STATEMENT OF ISSUE
A public hearing on the request of Helen Andrews and David Stroud, for a 6th Amendment to the existing Amended and Restated Development Agreement between the City of Fairfield and Canon Partners, LLC.
The Amended and Restated Development Agreement covers approximately 1,570 acres of land located approximately one -half mile east of Peabody Road on Vanden Road's west and east sides. The Amendment proposes to increase the maximum industrial northeast impact fee rate allowed and update several definitions to reference the current 2022 Nexus Fee Studies (Resolution No. 2022 -146) and associated Impact Fee Ordinance (Resolution No. 2022-269).
DISCUSSION
Background Information: On August 16, 2011, the City Council entered into a Development Agreement (DA) with Canon Station LLC regarding approximately 1,570 acres within the Train Station Specific Plan (TSSP) Area. Canon Station LLC is the master developer of the One Lake Neighborhood, known as Planning Area 4 and Planning Area 5 in the TSSP. The council has since authorized 5 amendments to the DA modifying a collection of topics, including conservation easement recordation timing, CFD language, a biological mitigation exhibit, infrastructure improvement timing, and p rocedural components.
However, the key provisions of the agreement remain as follows:
1. Guarantees for the right to develop up to 3,101 dwelling units and 4.6 million square feet of office and industrial building floor area; and
2. Transfer of approximately 100 acres of City-owned land to Canon Station LLC in exchange for the 204-acre Kelley Property for public park and open space uses, monetary compensation, and other considerations; and
3. Construction of various public improvements by Canon Station LLC, including a new fire station, park improvements, and road improvements; and
4. Establishment of various Community Facilities Districts (CFDs) to pay for infrastructure and municipal services, including public safety (police and fire), park maintenance, a nd open space maintenance; and
5. Requirement that Canon Station LLC preserve more than 1,000 acres in open spaces within and in the vicinity of the TSSP Area. Preservation is to be achieved by establishing a conservation easement on these lands.
Concurrently with the progression of the DA, Canon Station LLC transferred a portion of its interest in the project to a similarly named but independent third party: Canon Partners LLC. As part of the transaction, Canon Station LLC transferred approximately 316 acres of industrial property, along with the related developer rights and responsibilities, to Canon Partners LLC. This industrial property is better known as Planning Area 6 (PA6) of the TSSP. In 2015, Canon Station LLC, Canon Partners LLC, and the City formalized this transfer by signing an “Assignment of Rights and Assumption of Obligations Under Development Agreement.” This action officially assigned the development rights and obligations for PA6 to Canon Partners LLC, allowing the City to work directly with Canon Partners LLC on the development of PA6.
In 2013, the City adopted a series of fees to address development impacts, including the need for transportation improvements, in support of developing land under the Canon Station Development Agreement and other areas. In 2022, following a detailed study, the City updated several of these fees, including those that address transportation impacts.
Proposed Amendment: Canon Partners LLC is proposing changes to several definitions in the DA to align with the 2022 Fee Study. While most of the proposed changes are minor and procedural, one significant amendment affects the formula for calculating industrial impact fees.
Currently, the DA sets the transportation impact fee for industrial development by using a weighting relative to a low -density single-family home. The DA identifies the total transportation impact fee for low-density single -family units as an "Equivalent Dwelling Unit” (EDU). The DA weights industrial development relative to one EDU at 0 .04 per 1,000 square feet. When fees were originally adopted in 2013, this weighting equaled a traffic impact fee for industrial development of roughly $1.00 per square foot. This rate, even with inflation factored in, does not provide sufficient funds t o construct the roadway infrastructure needed to serve industrial development in PA6.
Canon Partners LLC is proposing to increase the maximum EDU factor for industrial development from
0.04 to 0.134, effectively raising the impact fee to $4 per square foot. This amendment would allow for a higher transportation impact fee to be charged for industrial development, and better cover the required infrastructure costs.
General Plan and Specific Plan Consistency: Government Code Section 65868.5 requires th at a DA be consistent with the General Plan and any Specific Plan. The General Plan designates land within the TSSP as the “Special Study Area.” The Specific Plan identifies the land subject to the DA as Planning Areas 4, 5, 6, 7, and 8. Of the Planning Ar eas listed, 6 is slated for industrial development and are subject to the proposed 0.134 EDU factor. The council previously found the existing DA to be consistent with the General Plan and Specific Plan. The General Plan includes policies that require new residential development to fund the cost of its infrastructure needs. The TSSP recognizes the need to update impact fees to fund infrastructure as detailed in various policies under Section 14.8.5 Financing of Public Improvements and Facilities of the Specific Plan.
Environmental Review: An Environmental Impact Report (EIR) was previously prepared and certified by the City for the TSSP in 2011. The City previously found that the impacts of development under the existing DA are within the scope of the EIR c ertified by the Council in 2011 for the TSSP. The proposed changes are consistent with the TSSP and do not pose environmental impacts greater than those found to be within the scope of the TSSP’s EIR.
FINANCIAL IMPACT
N/A
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
The Planning Commission unanimously approved Resolution No. PC2024 -11, recommending that the council adopt the proposed ordinance, which would approve a 6th Amendment to the Amended and Restated Development Agreement between the City of Fairfield and Canon Partners LLC.
At the November 19, 2024, meeting, the City Council held a public hearing that was duly noticed in the Daily Republic on November 6, 2024. At said meeting, the council approved the introduction and first reading of Ordinance 2024-10.
ALTERNATIVE ACTION
The council may deny the proposed DA amendment. In this circumstance, the maximum EDU factor for industrial development would remain at 0.04, which may impact the timing to complete the required infrastructure.
COORDINATED WITH
City Attorney’s Office, City Manager’s Office and Public Works.
STAFF CONTACT
Meily M Sheehan, Principal Planner
(707) 428-7474
[email protected]
ATTACHMENTS
Attachment 2: Proposed Ordinance
Attachment 3: Proposed Amendment