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060424 CED Underground Utility Waiver Agenda Report

City Council - Successor Agency - Housing Authority
June 4, 2024

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060424 CED Underground Utility Waiver Agenda Report
Meeting
June 4, 2024
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City Council - Successor Agency - Housing Authority
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Agenda Report
Fullerton City Council
MEETING DATE: June 4, 2024
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: SUNAYANA THOMAS, DIRECTOR OF COMMUNITY AND ECONOMIC DEVELOPMENT PREPARED BY: Sunayana Thomas, director of community and economic development SUBJECT: FOX BLOCK PROJECT UNDERGROUND UTILITY WAIVER REQUEST

SUMMARY
This item requests City Council approve an underground utility requirement waiver for certain utility poles within the Fox Block project, developed by Fox Harbor LLC, in accordance with Fullerton Municipal Code (FMC) Section 16.05.060.

PROPOSED MOTION
Approve the underground utility requirement waiver request in accordance with Fullerton Municipal Code Section 16.05.060.

ALTERNATIVE OPTIONS
Approve the Proposed Motion
Deny the request
Other options brought by City Council.

STAFF RECOMMENDATION
Staff recommends the Proposed Motion.

CITY MANAGER REMARKS
Due to the nature of the project, the financial strain this would place on the project, and the public benefits involved such as the parking garage, as City Manager I recommend the underground utility waiver.

PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statements:

Fiscal and Organizational Stability
Infrastructure and City Assets.

FISCAL IMPACT
None.

BACKGROUND AND DISCUSSION
City Council approved the Fox Block Commercial and Retail project Disposition and Development Agreement (DDA) on November 15, 2022 to facilitate multiple former redevelopment agency parcels development. The partnership project secured entitlements with unanimous support from Planning Commission and City Council. The project, located on 1.4+ acres of property next to the historic Fox Theater, involves adaptive reuse of a restaurant and former dance studio building, converting them into multiple food and beverage establishments. This project would transform a surface parking lot into an outdoor food hall with a microbrewery and transition a vehicular street to a fully pedestrian thoroughfare and gathering space with outdoor community amenities.

FMC Section 16.05.060 requires underground utilities for new construction to enhance aesthetic appeal and safety. Undergrounding existing and new poles would cost approximately $460,000, The financial burden to underground utilities could derail the project financial feasibility, impacting project delays and financing assurance.

This project represents a substantial investment in the community. Staff anticipates the project would generate significant economic benefits, including job creation, tax revenue and revitalization of the area. Granting this waiver would allow the project to proceed without undue financial strain, balancing fiscal responsibility with community development goals to bring the project to fruition.

Attachments:

Attachment 1 – Utility Site Map
cc: City Manager Eric J. Levitt
Underground Utility Waiver – Fox Block
April 4, 2024 - Page 2

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