Council Chambers
150 S. Palm Ave.
Rialto, CA 92376
City of Rialto
Legislation Details (With Text)
File #: Version: 115-132 Name: TAB 6
Status:Type: Resolution Agenda Ready
File created: In control:3/2/2015 City Council
On agenda: Final action:3/10/2015
Title: Request City Council to (1) Adopt Resolution No. 6707 Approving Construction and Credit Agreement by and between the City of Rialto and Lewis-Hillwood Rialto Company, LLC and (2) Adopt Budget Resolution No. 6708 Appropriating Funding for the Construction and Credit Agreement related to the Medline Project.
(ACTION)
Sponsors:
Indexes:
Code sections:
Attachments:
Exhibit A - Medline Construction and Credit Agreement REV 3.pdf Exhibit B - Construction Credit Worksheets (3.2.15)
Exhibit C - City Resolution Approving a Construction and Credit Agreement with LHR Exhibit D - Budget Resolution
Action ByDate Action ResultVer.
For City Council Meeting of March 10, 2015
TO: Honorable Mayor and City Council
APPROVAL: Michael Story, City Administrator
FROM: Robb Steel, Assistant City Administrator/ Development Services Director Request City Council to (1) Adopt Resolution No. 6707
Approving Construction and Credit
Agreement by and between the City of Rialto and Lewis-Hillwood Rialto Company, LLC and (2) Adopt Budget Resolution No. 6708 Appropriating Funding for the Construction and Credit Agreement related to the Medline Project.
(ACTION)
BACKGROUND:
Pursuant to the Second Amended and Restated Contract of Sale for Areas B, C, and D dated September 25, 2102, (the “Contract of Sale””), by and between the City of Rialto and Lewis-Hillwood Rialto Company, LLC (LHR), LHR has the option to purchase and develop approximately 436 acres of land that previous contained Rialto Airport Municipal Airport (the “Airport Property”).
LHR entered into a Purchase and Sale Agreement with Medline Industries, Inc. (Medline PSA) for a
55.2 acre development parcel that is part of the Airport Property. On January 27, 2015, the City Council approved Resolution No. 6689, which approved an Addendum to the Renaissance Specific Plan (RSP) for the consolidation of thirteen (13) parcels of land and the construction of a 1,070,320 square foot distribution center (the “Medline Project”).
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File #: 15-132, Version: 1
On January 27, 2015, the City’s Design Review Committee (the “DRC”) reviewed the Precise Plan of Design for the Medline Project (PPD 2365) and established Conditions of Approval (COA) for the development of the Medline Project. The COA’s require Medline/LHR to construct certain off-site public improvements including the construction of Locust Avenue along the Project’s frontage and the construction of a master planned sewer line and storm drain in Locust Avenue (the “Public Improvements”).
Pursuant to the Medline PSA, LHR will construct most of the off-site public improvements identified within the COA and deliver Medline a finished development parcel. Most of the public improvements required by the COA are master planned facilities and/or are listed within the City’s Development Fee Nexus Studies. Section 3.33.010 of the Rialto Municipal Code, permits the City Administrator to negotiate and enter into Construction and Fee Credit Agreement, subject to the approval of the City Council. LHR requests approval of a Construction and Credit Agreement with the City related to the construction of the Public Improvements in Locust Avenue (Exhibit A).
ANALYSIS/DISCUSSION
:
Under the terms of the Construction and Credit Agreement the City will reimburse or credit the LHR/Medline for the cost of constructing the following improvements:
1. Construct Locust Avenue (half-width + travel lane) along the Project’s frontage (approximately 2,000 lineal feet from Miro Way northerly to the DCT Project).
2. Construct master planned storm drain from Miro Way northerly to the existing storm drain facilities constructed by the DCT Project (approximately 1,750 lf).
3. Construct master planned sewer line within Locust Avenue along Project frontage (approximately 1,000 lf).
The estimated cost of these Public Improvements is summarized below and further described in Exhibit B
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File #: 15-132, Version: 1
LHR/Medline will pay various Development Impact Fees related to the Medline Project. The LHR/Medline will pay development impact fees in excess of the fee credits requested, with the exception of the Wastewater Collection DIF. The fee credit for the Wastewater Collection DIF will be limited to the amount of the DIF Fee paid ($85,040). Pursuant to Section 3.33.100 of the Rialto Municipal Code, the developer shall not be entitled to a fee credit or reimbursement for any construction costs exceeding the developer’s obligation for development impact fees for the type of public facility constructed.
Additionally, the Construction and Credit Agreement provides for a credit against the RSP Specific Plan/Environmental Impact Report (RSP/EIR) Fee obligation. In consideration for LHR’s previous expenditures related to the processing and approval of the RSP/EIR, the City shall grant a credit of $166,577 to offset the RSP Fee Obligation (the “RSP/EIR Fee Credit”). There shall be no reconciliation or accounting related to the application of the RSP/EIR Fee Credit based on the previously adopted fee program for the RSP/EIR Fee.
ENVIRONMENTAL IMPACT:
The Public Improvements are master planned facilities that have been have been analyzed as part of the Program EIR for the Renaissance Specific Plan and California Environmental Quality Act (CEQA) review for Medline Project. On November 8, 2010 the City certified the EIR for the Renaissance Specific Plan and on November 10, 2010 filed the Notice of Determination for the EIR.
On January 27, 2015 the City Council approved and certified the Addendum to the EIR for the Renaissance Specific Plan, which was prepared for the Medline Project. A Notice of Determination for the Medline Project was filed on January 28, 2015.
Approval of the Construction and Credit Agreement is an administrative or fiscal action by the legislative body and will not will result in any additional a direct or indirect physical change in the environment than what was already analyzed (Section 15378(b) of the CEQA Guidelines).
GENERAL PLAN CONSISTENCY:
The City of Rialto has identified several goals and objectives within the City’s General Plan through which the City looks to improve the community.
Goal 3-1: Strengthen and diversify the economic base and employment opportunities and maintain a positive business environment.
Goal 3-6: Require that all developed areas within Rialto are adequately served with essential public services and infrastructure.
Goal 3-7: Upgrade public infrastructure as an inducement to promote private investment.
LEGAL REVIEW:
The City Attorney reviewed and approved the staff report, the Construction and Credit Agreement and the Resolutions.
FINANCIAL IMPACT:
Development impact fees are paid at issuance of building permits. Medline will receive credits at building permit issuance for the estimated eligible improvement costs, paying the net amount. Upon Project completion, the final costs will be verified and reconciliation reimbursements to Medline or payments made to the City.
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File #: 15-132, Version: 1
The City will reimburse or provide credits to Medline in the amounts stated above.
Revenues will be recognized and expenditures will be charged to the appropriate Development Impact Fee accounts. With the exception of the Wastewater Collection Fee, the City expects to collect DIF fees exceeding the DIF credits granted.
RECOMMENDATION:
1. Adopt Resolution No. 6707 Approving a Construction and Credit Agreement by and between the City of Rialto and Lewis-Hillwood Rialto Company.
2. Approve a Budget Resolution No. 6708 appropriation the following expenditures related to the Construction and Credit Agreement as follows:
a. Storm Drainage Development Impact Fee Fund Account No. 230-500-4720-3001, in the amount of $599,902.
b. Regional Traffic Development Impact Fee Fund Account No. 250-500-4313-3001, in the amount of $489,405; and
c. Wastewater Collection Development Impact Fee Fund Account No. 660-500-7150-3001, in the amount of $85,040.
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