Item 11.1 - CC-LRA 02/11/2025
RIVERBANK CITY COUNCIL / LOCAL REDEVELOPMENT AUTHORITY
AGENDA ITEM NO. 11.1
SECTION 11: NEW BUSINESS
Meeting Date: February 11, 2025
Subject: Consider Petition from Riverbank 108, LLC to Waive the Storm Drain System Development Fee and Reduce the Traffic System Development Fee for the Tractor Supply Project Located on Patterson Road
From: Marisela H. Garcia, City Manager
Submitted by: Joshua Mann, Director of Community Development
RECOMMENDATION
It is recommended that the City Council consider the petition from Riverbank 108, LLC to waive payment for the Storm Drain System Development Fee and reduce Traffic System Development Fee which will be assessed on the construction of the Tractor Supply Project at permit issuance.
SUMMARY
Riverbank 108, LLC submitted a written request (see Attachment 1 – Waiver Request Letter) to waive payment for their Storm Drain System Development Fee and reduce Traffic System Development Fee which will be assessed on the construction of the Tractor Supply Project. There is currently no administrative process to consider waiver requests at staff level and therefore, the request has been brought forward to the City Council for consideration.
BACKGROUND
On December 17, 2024 the Planning Commission granted approval for a new development located on Patterson Road (adjacent to Dutch Bros. Coffee). The approved project consists of an entirely new commercial development that will be anchored with a 23,729 sq. ft. Tractor Supply Company (TSC) building with a 20,000 sq. ft. outdoor display area, a 16,000 sq. ft. retail building, and two Quick Service Restaurants (QSRs). The approved project is now entering its construction phase.
Item 11.1 - CC-LRA 02/11/2025
The City currently collects System Development Fees at Building Permit issuance to defray the impact of new development as authorized by Government Code §66000- 66025. The City’s System Development Fee program is codified in §150.30 titled “System Development Fees” which establishes the authority for imposing and charging the fees.
System Development fees are collected in order to:
1) To provide an adequate and constant method for the financing of the unfunded portion of need systems development costs throughout the city, reasonably related to projected community growth.
2) To promote the orderly and efficient expansion of public improvements to adequately meet the domestic and economic needs of the community and to minimize adverse fiscal and environmental impacts of new development. 3) To ensure the continuation of necessary services including, but not limited to, police and general administrative services.
4) To establish equitable methods for minimizing public facility and service costs to the city associated with new development.
As defined within Riverbank’s municipal code, System Development Fees are charged to new construction, including the expansion of and/or the addition to an existing, nonresidential structure, to mitigate the unfunded portion of the determined impact of the development.
On December 23, 2024, the City received a request from Riverbank 108, LLC to waive the Storm Drain System Development Fee for the project and reduce the Traffic System Development Fee by 60% for the Tractor Supply building. Since the development includes multiple buildings, the request proposes the following:
• Waiver of all Storm Drain System Development Fees for all buildings within the development. Based on current building permit estimates, this includes $141,662 for the Tractor Supply building and $95,520 for the 16,000 sq. ft. retail building.
The fee for the two quick-service restaurants (QSRs) is currently unknown, as their designs have not yet been completed. However, similar QSR developments have incurred storm drain fees of approximately $15,000 each, suggesting an estimated total of $30,000 for both. As a result, the total anticipated Storm Drain System Development Fee waiver is approximately $267,182.
• Reduction of the Traffic System Development Fee by 60% for the Tractor Supply building only. All other buildings within the project site would be required to pay the full Traffic System Development Fee or pursue a separate agreement through City Council action. Based on current building permit estimates, the reduced Traffic Fee for the Tractor Supply building would be $74,129 (down 60% from the full fee of $185,323).
For this proposed waiver request, the payment at building permit issuance would include all other System Development Fees, including the Water Fee, Sewer Fee, Police/General Government Fee, 5% Administrative Fee, and all standard permit fees, along with the fee
Item 11.1 - CC-LRA 02/11/2025
collected by staff for Stanislaus County. The waiver would apply exclusively to Riverbank’s Storm Drain System Development Fee and a 60% reduction in the Traffic Fee for the Tractor Supply building. This waiver does not cover plan check fees or fees imposed by other agencies, such as the fire district or school district. Riverbank 108, LLC may negotiate separately with those agencies to waive or defer their fees.
ANALYSIS
The City Manager and the Director of Community Development have reviewed the request submitted by Riverbank 108, LLC. The supporting information included detailed data from the Institute of Transportation Engineers (ITE) Trip Generation Manual, demonstrating that Tractor Supply stores generate significantly fewer trips per square foot than high-traffic retailers such as supermarkets, department stores, and discount warehouses (e.g., Walmart, Ralphs Supermarket, or Costco). After evaluating the potential impacts of this project, the following determinations were made:
1) The site design incorporates a large stormwater retention pond, with additional land available for future expansion, ensuring that all stormwater is contained entirely on-site. As a result, the development will not contribute runoff to the City’s storm drain system, thereby eliminating any impact on municipal stormwater infrastructure.
2) Granting a 60% reduction in the Traffic System Development Fee ensures that the fee more accurately reflects the actual traffic impact of the Tractor Supply building, rather than applying a one-size-fits-all approach. This reduction promotes fair and proportional fee assessment, aligning costs with real-world trip generation data.
Additionally, it supports economic development by encouraging investment in businesses that generate lower traffic volumes, helping to attract and retain commercial enterprises without imposing excessive financial burdens.
Waiving and/or reducing fees can drive economic development by attracting businesses, promoting desirable land use, and supporting small and medium-sized enterprises. It ensures that fees are proportionate to actual infrastructure impact, preventing businesses from overpaying for services they do not utilize. Additionally, reducing upfront costs enhances the city’s competitiveness for investment, fosters job creation, and accelerates project completion, leading to earlier revenue generation through property and sales taxes. Overall, fee waivers serve as a strategic tool to encourage business growth while maintaining a fair and balanced approach to development costs. Based on this analysis, staff recommends that the City Council consider waiving the Storm Drain System Development Fee for the entire project and reduce the Traffic System Development Fee by 60% for the Tractor Supply building.
FUTURE CONSIDERATION
The City's current System Development Fee (SDF) program does not provide an administrative process for fee waivers or negotiations for fee reductions. Staff encourages
Item 11.1 - CC-LRA 02/11/2025
the City Council to consider establishing an administrative procedure that would allow the City Manager to waive or defer fees up to a specified dollar amount. Should the Council support this direction, staff will return at a later date with a proposed ordinance amendment for consideration.
FINANCIAL IMPACT
The System Development Fee program is designed to collect impact fees for the infrastructure needed to support new growth city-wide. A thorough evaluation of each proposed project is essential to assess potential funding shortfalls that may arise from granting waiver requests. In the case presented, the Storm Drain fee of approximately $267,182 would be waived, and the Traffic Fee for the Tractor Supply building would be reduced to $74,129, representing a 60% reduction from the original fee of $185,323. As a result, the total estimated financial impact is approximately $378,376.
STRATEGIC PLAN
This item is indirectly related to the City’s Strategic Plan through fee program updates.
ATTACHMENT
1. Riverbank 108, LLC Waiver Request Letter
2. CC Resolution 2025-XXX
_______________________________________
Riverbank 108, LLC.
9454 WILSHIRE BOULEVARD SUITE 210 BEVERLY HILLS, CA 90212 P: (310) 277-4697 [email protected]
December 23, 2024 VIA EMAIL
Mr. Joshua Mann
Community Development Director
City of Riverbank
6707 3rd Street
Riverbank, CA 95367
RE: Riverbank 108 Project Fees: Storm Water and Traffic Impact Hi Joshua:
Per our previous discussions on this matter, I am writing to start the formal process to have the following city fees associated with our Riverbank 108 project waived (storm water) and reduced (traffic).
1. Storm Water Fees
Based on the estimates provided by the City, the storm water fee for the Tractor Supply building is $141,662.00 and the fee for the 16,000sf Retail building is $95,520.00. That total amount is:
$237,182.00*. *Please note this total does not include the storm water fees that will be requested by the city for both of our two quick-serve buildings.
We are requesting the storm water fees for all four buildings within our project be waived. Our request for this waiver is based on the fact that our development is required, by mandate from the City, to contain all storm water onsite. To accomplish this, we will construct an onsite open basin that will capture all of the project’s storm water and that water will percolate down into the aquapher, never connecting to nor impacting the City’s storm water infrastructure.
We understand if we were able to sheet drain our storm water out onto City streets or if the City had storm water infrastructure we could direct connect to, the City storm water fees would be warranted to allow the City to recompense for the additional load to the system. However, that is not the case with our project.
Therefore, we ask the City waive all storm water fees for all four buildings within our project.
ATTACHMENT 1
2. Traffic Impact Fees
Every municipality has their own formula for calculating traffic impact fees. The City of Riverbank uses a fixed multiplier of $7.81 per square foot for every type of commercial use.
Other municipalities use a variable dollar amount based on the specific type of commercial use and the amount of traffic generated by that specific use. Utilizing a variable method allows for an accurate and fair assessment of traffic impact fees for both the city and the project developer.
As mentioned, Riverbank's current method charges the same $7.81 per square foot whether it’s a Tractor Supply, Walmart, Ralphs, Home Depot, Ace Hardware, etc., as if to say all commercial uses generate the same number of trips per 1,000 square feet of retail space and therefore all would have the same impact to the City’s streets, resources and infrastructure. However, based on traffic data, the Tractor Supply will have infinitely less daily vehicle trips than a Walmart (or the others) and therefore, substantially less impact on city streets, resources and infrastructure.
I asked my traffic engineer to put together the analysis (on page 4) using data from the Institute of Transportation Engineers (ITE) Trip Generation Manual, both 10th and 11th editions. (the ITE is the gold standard used by Caltrans and all others when analyzing traffic data.) As you can see in the examples below, Tractor Supply is a surprisingly low trip generating retail use compared to other types of retail uses:
1. A Home Depot generates 219% more daily trips than Tractor Supply.
2. A Ralphs supermarket generates 670% more daily trips than Tractor Supply.
3. An Ace Hardware generates 122% more daily trips than Tractor Supply.
4. A Dunn-Edwards paint store generates 58% less trips than a Tractor Supply store.
5. A mom and pop local retailer would generate substantially less trips than a Tractor Supply.
Therefore, we ask the city, in all fairness, to consider reducing the amount of Traffic Impact Fees assessed on the Tractor Supply building. The current assessment is 23,729 square feet x $7.81 = $185,323.00. We are requesting a reduction of 60% (an assessed Traffic Impact Fee of $74,129.00) which we feel is more than fair to the city based on the low trip counts that are generated by a Tractor Supply store vs. the other retail uses.
Please let me know if you have any questions.
We look forward to your response.
Thank you,
Bradley A. Sobel
Managing Member, The Sobel Company, Inc.
Keith Higgins
Traffic Engineer
ITE TRIP GENERATION RATES
PEAK TOTAL
ITE DAILY RATE DAILY
LAND USE TRIP HOUR TRIPS %
CODE RATE PM TSC (23.7) DIFFERENCE
Hardware/Paint Store (per 1,000 sq. ft.) (DUNN-EDWARDS) 816 8.07 2.98 191 -57.64% Tractor Supply Store (per 1,000 sq. ft.) (10th Edition) 810 14.00 1.40 332 100.00% Tractor Supply Store (per 1,000 sq. ft.) (11th Edition) 810 N/A 1.40 N/A N/A Building Materials and Lumber Store (per 1,000 sq. ft.) (ACE HARDWARWE) 812 17.05 2.25 404 121.79% Discount Home Furnishing Superstore (per 1,000 sq. ft.) (HOME GOODS) 869 20.00 1.57 474 142.86% Department Store (per 1,000 sq. ft.) (BLOOMINGDALES) 875 22.88 1.95 542 163.43% Sporting Good Superstore (per 1,000 sq. ft.) (DICKS) 861 23.78 2.14 564 169.86% Bed and Linen Superstore (per 1,000 sq. ft.) 872 N/A 2.22 N/A N/A Factory Outlet Center (per 1,000 sq. ft.) 823 26.59 2.29 630 189.93% Home Improvement Superstore (per 1,000 sq. ft.) (HOME DEPOT) 862 30.74 2.29 729 219.57% Office Supply Superstore (per 1,000 sq. ft.) (STAPLES) 867 N/A 2.77 N/A N/A Electronics Superstore (per 1,000 sq. ft.) (BEST BUY) 863 41.05 4.25 973 293.21% Discount Club (per 1,000 sq. ft.) (COSTCO) 857 42.46 4.19 1,006 303.29% Free-Standing Discount Store (per 1,000 sq. ft.) (DOLLAR TREE) 815 53.87 4.86 1,277 384.79% Strip Retail Plaza (<40k) (per 1,000 sq. ft.) 822 54.45 6.59 1,290 388.93% Automobile Parts Sales (AUTOZONE) 843 54.57 4.90 1,293 389.79% Toy/Children's Superstore (per 1,000 sq. ft.) 864 N/A 5.00 N/A N/A Variety Store (per 1,000 sq. ft.) (WALMART) 814 63.66 6.70 1,509 454.71% Apparel Store (per 1,000 sq. ft.) (ROSS) 876 66.40 4.12 1,574 474.29% Supermarket (per 1,000 sq. ft.) (RALPHS) 850 93.84 8.95 2,224 670.29% Notes:
1. Trip generation rates published by Institute of Transportation Engineers (ITE) "Trip Generation Manual," 11th Edition, 2021, unless otherwise noted.
2. Trip generation rates for "(10th Edition)" published by Institute of Transportation Engineers (ITE) "Trip Generation Manual," 10th Edition, 2017.
3. sq. ft. = square feet.
4. N/A = ITE does not publish a rate for this category.
CC/LRA – 02/11/2025
CC Resolution 2025-
CITY OF RIVERBANK
RESOLUTION 2025-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RIVERBANK TO
APPROVE THE WAIVER OF STORM DRAIN SYSTEM DEVELOPMENT FEES AND
A REDUCTION OF THE TRAFFIC SYSTEM DEVELOPMENT FEES FOR THE RIVERBANK 108, LLC / TRACTOR SUPPLY PROJECT
LOCATED ON PATTERSON ROAD
THE CITY OF RIVERBANK CITY COUNCIL (HEREAFTER REFERRED TO AS THE “CITY COUNCIL”) DOES HEREBY RESOLVE THAT:
WHEREAS, it is necessary as established in the Riverbank Municipal Code for the proper and effective operation of City Government to establish, amend, or authorize fees for services in order to provide for the financial support of City Government; and WHEREAS, from time to time, the City Council reviews the fees to ensure that they are adequately supporting the operation of City Government; and WHEREAS, on December 17, 2024, the City of Riverbank Planning Commission held a Public Hearing and approved the Patterson Road Retail project including a 23,729 sq.ft. Tractor Supply building, 16,000 sq.ft. Retail Building, and two Quick Service Restaurants; and
WHEREAS, on December 23, 2024, the City received a formal request from Riverbank 108, LLC to waive the Storm Drain System Development Fee for the Tractor Supply - Patterson Road Retail Project and to approve a 60% reduction in the Traffic System Development Fee for the Tractor Supply building; and WHEREAS, the Tractor Supply - Patterson Road Retail project will be assessed the following estimated Storm Drain System Development Fees for the project on their Building Permit:
Storm Drain System Development Fee Amount
Tractor Supply Store (23,729 sq. ft) $141,662.00
Retail Building (16,000 sq. ft) $95,520.00
Quick Service Restaurant #1 $15,000.00
Quick Service Restaurant #2 $15,000.00
Total Storm System Development Fees $267,182.00
ATTACHMENT 2
CC/LRA – 02/11/2025
CC Resolution 2025-
WHEREAS, the 23,729 sq.ft. Tractor Supply building will be assessed the following estimated Traffic System Development Fees for the project on their Building Permit:
Traffic System Development Fee Amount
Tractor Supply Building (23,729 sq. ft) $185,323.00
Traffic System Development Fee
Reduced by 60% $74,129.00
WHEREAS, for this proposed waiver, the payment at building permit issuance would include the Water fee, Waste Water fee, Police/General Government fee, 5% Administrative Fee, and all the normal permit fees, plus the fee staff collects for Stanislaus County; and
WHEREAS, this waiver for Riverbank’s Storm Drain System Development Fee would only apply to the entire proposed development and does not include waiving any plan check fees or fees imposed by any other agency such as the Fire District, School District, or County; and
WHEREAS, this waiver for a 60% reduction in Riverbank’s Traffic System Development Fee would only apply to the Tractor Supply building (23,729 sq. ft) and does not include waiving any plan check fees or fees imposed by any other agency such as the Fire District, School District, or County.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Riverbank hereby approves a 60% reduction in Traffic System Development Fees for the Tractor Supply building and waives the Storm Drain System Development Fees for the Project, totaling $267,182.
PASSED AND ADOPTED by the City Council of the City of Riverbank at a regular meeting held on the 11
th day of February, 2025; motioned by Councilmember ______, seconded by Councilmember ______, and upon roll call was carried by the following vote of ___:
AYES:
NAYS:
ABSENT:
CC/LRA – 02/11/2025
CC Resolution 2025-
ABSTAINED:
ATTEST: APPROVED:
_____________________________ __________________________ Gabriela Hernandez, CMC Rachel Hernandez
City Clerk Mayor
Item 11.2 – CC/LRA – 02/11/2025
RIVERBANK CITY COUNCIL / LOCAL REDEVELOPMENT AUTHORITY
AGENDA ITEM NO. 11.2
SECTION 11: NEW BUSINESS
Meeting Date: February 11, 2025
Subject: Discussion on the Direction for the Vacant City Property Located at the NW Corner of Kentucky Ave and Eleanor Road
From: Marisela H. Garcia, City Manager
Submitted by: Michael Patton, Parks and Recreation Director
RECOMMENDATION
It is recommended that the City Council provides direction to city staff on the financial direction related to the city owned property located at the Northwest corner of Kentucky Ave and Eleanor Road.
SUMMARY
In the early 2000’s, the City of Riverbank purchased 10 acres of agricultural property on the East side of town located at the intersection of Eleanor Avenue and Kentucky Avenue.
The intent of the purchase was to use property to house a future parks corporation yard.
The purchase of the property was also in conjunction with the Riverbank Oakdale Transportation Authority (ROTA). The goal was to have a location for ROTA to have a dedicated maintenance facility for their fleet. Since the purchase, ROTA has merged with Stanislaus Regional Transit (StaRT).
The Parks and Recreation is interested in the option to sell the property and utilize the funds received from the sale on other park projects in the city, specifically as seed money to develop the Stanislaus Street and Jackson Avenue property into park space.
BACKGROUND
In 2007, the City of Riverbank purchased 10 acres of agricultural property on the East side of town located at the intersection of Eleanor Avenue and Kentucky Avenue. The intent of the purchase was to use property to house a future parks corporation yard. The purchase of the property was also in conjunction with the Riverbank Oakdale Transportation Authority (ROTA). Since the purchase, ROTA has merged with Stanislaus Regional Transit (StaRT). Since the purchase, the property has remained vacant. In 2024,
Item 11.2 – CC/LRA – 02/11/2025
the Parks and Recreation Department learned of the property and its intention to be used for the department. Department staff began reviewing the property and learned that nearby neighbors had been using the property for grazing. Staff have discussed if plans to develop a parks corporation would be in the near-to-long-term future. In discussions, staff would need to grow exponentially in order to demand the need of land for a parks corporation yard. With the property being vacant for 18 years, the department recommends selling the property to address current demands in regards to parks and recreation.
If the sale of this property were to happen, Parks and Recreation staff have discussed how the city could use the funding received. In 2024, the city council voted to re-designate a 2 acre property located at the intersection of Stanislaus Street and Jackson Avenue from affordable housing to a local park. This decision was made due to the neighborhood not having a local park nearby. The department would propose that the revenue received from the land sale could be used as seed money to develop the Stanislaus and Jackson property into a park.
Staff is seeking direction from the city council on their interest in keeping or selling this property. Should Council decide to proceed with this option, the City will bring back a formal agenda item to initiate the process delineated by the State of California Surplus Land Act to dispose of the property.
FINANCIAL IMPACT
Direction provided to staff in regards to this property will have no financial impact at this time. In the scenario that council provides direction to pursue the sale of the property, the city would eliminate the asset owning the property and in turn receive an influx of cash to be used on other projects. If the city council elects to retain the property, the city will continue the responsibility of maintaining the property until the city is prepared to develop or sell at a later date.
STRATEGIC PLAN
The City’s Strategic Plan has a goal to ‘maintain and refresh the parks, trails, and facilities to provide exceptional experiences.’ An objective of that goal is ‘seek ways to provide amenities and facilities to underserved/ aging neighborhoods.’ The Parks and Recreation Department is suggesting the sale of a property that was purchased nearly 20 years ago and focus the revenue received from the sale to focus on serving areas in town lacking parks, such as the two-acre property on at Jackson and Stanislaus.
ATTACHMENTS
1. Aerial View of Property
2. Property Survey
3. Assessor’s Valuation of Property in 2009-2010
4. Grant Deed
5. Certificate of Acceptance
Item 11.2 – CC/LRA – 02/11/2025
ATTACHMENT 1
AERIAL VIEW OF PROPERTY
ATTACHMENT 2