City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
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File ID: 2023-01242 10/17/2023 Consent Item 5.
Appropriation of Railyards Development Impact Fee Funds for Developer Reimbursement File ID: 2023-01242
Location: District 4, Represented by Mayor Steinberg
Recommendation: 1) Adopt a Resolution a) authorizing the City Manager or the City Manager’s designee to transfer $2,023,000 from the Railyards Development Impact Fee Fund (Fund 3211) available fund balance to the Railyards Fee District MYOP Project (I06132100) (Fund 3211); and b) authorizing the City Manager or the City Manager’s designee to disburse $2,021,211.69 pursuant to City agreement 2021-1042.
Contact: Sini Makasini, Senior Development Project Manager, (916) 808-7967, [email protected]; Sheri Smith, Special Districts Manager, (916) 808-7204, [email protected], Department of Finance
Presenter: None
Attachments:
1-Description/Analysis
2-Resolution
Additional Description/Analysis
Issue Detail: The Railyards Financing Plan (Finance Plan) was adopted by Council Resolution No. 2016-0380 and has been updated on various occasions. It includes the Railyards Development Impact Fee Program (Fee Program) aimed at ensuring the timely construction of backbone infrastructure and public facilities for the development of the Railyards Specific Plan Area (RSP) and to provide equity among landowners.
Article IX in chapter 18.56.940 of the Sacramento City Code established the Railyards Development Impact Fee (Fee) that is an integral part of the Railyards Finance Plan, which authorizes the City to reimburse developers that construct or advance fund the construction of the backbone infrastructure
File ID: 2023-01242 10/17/2023 Consent Item 5.
or public facilities needed to serve the RSP area and imposes Fees on developers. In September 2021, the City and Downtown Railyard Venture, LLC (Developer) entered into City Agreement 2021- 1042 (Agreement) to reimburse the Developer for construction of a portion of Bercut Avenue within the RSP.
Policy Considerations: The recommended actions are consistent with City Code Chapter
18.56.940, Article IX related to reimbursement for the construction of projects, with the intention of the Finance Plan adopted in 2016 and updated in 2018 and 2022, and with the Agreement. Council appropriation of the funds is required by City Charter section 116.
Economic Impacts: Not applicable.
Environmental Considerations:
California Environmental Quality Act (CEQA): The City of Sacramento has prepared and certified the following environmental documents related to the potential activities to be funded by City Agreement No. 2021-1042:
· Railyards Specific Plan EIR, SCH No. 2006032058 (certified November 2007) · Sacramento Intermodal Transportation Facility Tier 1 and Tier 2 Environmental Assessment and Section 4(f) Evaluation (published August 2009) · Addendum to the Railyards Specific Plan EIR (certified April 9, 2012) · Railyards Specific Plan Update Subsequent EIR, SCH 2006032058 (Certified October 2016)
· Addendum to the Railyards Specific Plan EIR (certified January 19, 2021) Collectively the above documents are referred to herein as the “SEIR”.
Sustainability:
The proposed actions implement the Finance Plan and Fee Program, support new residential and non-residential development needed to meet the population growth projections outlined in the General Plan. The Fee Program framework ensures that the City is not taking on the full cost of infrastructure to support new development, but rather that new growth pays for its fair share of infrastructure costs, thereby allowing the City to develop in a sustainable manner.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: Adopting the proposed resolution will provide for the appropriation of Fee revenue to reimburse the Developer for the construction of improvements pursuant to the Agreement.
File ID: 2023-01242 10/17/2023 Consent Item 5.
Financial Considerations: The reimbursement is funded by revenue collected from Railyards developers who pay the Fee when building permits are issued. The fees are collected only within the boundaries of RSP area and may only be used for the purposes outlined in the Finance Plan. The collection of the Fees and associated interest are accounted for in a separate fund (Fund 3211).
The recommended actions will not affect the City’s cash-flow requirements and will not impact any other City funds, including but not limited to the General Fund. All cash and interest in the Fee Program are restricted for investment or use purposes.
Local Business Enterprise (LBE): Not applicable.
RESOLUTION NO. 2023-
Adopted by the Sacramento City Council
Resolution Approving the Appropriation and the Reimbursement of Railyards Development Impact Fee Revenues and Associated Interest
BACKGROUND
A. The Railyards Finance Plan, adopted by Resolution No. 2016-0380 and updated in 2018 by Resolution No. 2018-0383, in 2022 by Resolution No. 2002- 0205, (the "Finance Plan"), authorizes the Railyards Development Impact Fee Program (the "Fee") to provide for the timely acquisition or construction of designated Fee Program backbone infrastructure and public facilities for the development of the Railyards Specific Plan.
B. On September 10, 2021, the City entered into a Reimbursement and Credit Agreement with Downtown Railyard Venture, LLC (the “Developer”) for construction of a portion of Bercut Drive (the “City Agreement No. 2021-1042”).
C. Fee revenues amounting to approximately $2,023,000 are available for reimbursement.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The City Council finds that background statements A through C are true and correct.
Section 2. The City Manager or the City Manager’s designee is authorized to make any necessary budgetary adjustments and is hereby authorized to transfer $2,023,000 from available fund balance (Fund 3211) to the Railyards Fee District MYOP Project (I06132100) (Fund 3211).
Section 3. The City Manager or the City Manager’s designee is hereby authorized to reimburse $2,021,211.69 to the Developer pursuant to City Agreement No. 2021-1042.