FROM:
City Manager's Office
SUBJECT:
Title
Resolution and Agreement to Waive Certain Development Impact Fees for the Water of Life Community Church Project.
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RECOMMENDATION:
Recommendation
Adopt Resolution No. 2025-015, approving a development impact fee waiver in the amount of $279,158.42 related to a project located at 16029 Arrow Blvd and authorizing the City Manager to execute documentation evidencing the City’s approval of the waiver and a development impact fee waiver agreement on behalf of the City.
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COUNCIL GOALS:
• Enhance the local environment for future generations and create a healthy economic and environmental future by adopting policies that promote compact and efficient development in new and existing communities.
• Invest in the City’s infrastructure (streets, sewers, parks, etc.) by providing for the development of new infrastructure.
DISCUSSION:
The Water of Life Community Church through City Link (“Developer”) recently completed development of a multi-use structure consisting of approximately 15,362 sf of office space, 3,625 sf of assembly space, and 8,373 sf of warehouse space for an approximate total of 27,360 sf in size ("Project"), on property located at 16029 Arrow Blvd., Fontana, CA 92335, in San Bernardino County, California ("Property"). The Project will include a food pantry storage with drive-in cooler and freezer, equipment mezzanine, loading dock with enclosed refuse bin, and vehicle storage area.
Developer operates facilities of similar size and nature to the Project within existing structures located in various buildings on Spring Street in Downtown Fontana (the “Existing Property”). At or around the time of the consideration of the attached Resolution, the Existing Property has been vacated and is scheduled to be, or will have been, demolished and therefore the Developer’s net impact on the City facilities as a result of the demolition of the Existing Property and the construction of the Project is expected to have an estimated net even impact on the City facilities warranting consideration of waiver of certain development impact fees (“DIF”) applicable to the Project approval process. In addition, Developer’s charitable operations within the City provides certain public benefits such as homeless outreach, including but not limited to providing housing and food pantry services to those in need within the City, and such activities furthers the City’s efforts of providing for the health, safety, and well-being of City residents.
Based upon the foregoing, Developer has requested a waiver of certain DIF from the City and due to the facts and circumstances the City is willing to waive the payment of certain DIF pursuant to the terms and conditions of the Development Impact Fee Waiver Agreement (“Agreement”) included in the attached Resolution. The DIF to be waived are only those impact fees imposed or levied by the City upon the Project on the Property, but such waiver does not apply to other fees and charges imposed by the City, nor shall it apply to fees levied by the County, School Districts or any other public agency. The key terms of the Agreement and for the waiver of the DIF are as follows:
1. The waiver shall only apply to the specific DIF identified in the Agreement imposed by the City. It shall not apply to any other fees or charges imposed by the City, including other DIF not otherwise included in the Agreement, nor shall it apply to fees imposed by the County, School District, or any other public entity.
2. The waiver of the DIF shall only apply to the Developer while the Developer occupies the Project and the Property. Should the Developer no longer occupy the Project the DIF will become due and payable.
3. Any subsidy that may potentially be provided from the City to the Developer (as defined in the Agreement) as a result of the waiver shall not exceed the de minimis threshold for public works projects which would trigger the requirement to pay prevailing wages. The Developer has agreed to indemnify the City generally and specifically for any violations in the requirement for providing prevailing wages related to the Project.
4. Developer shall execute the Agreement with the City to provide the terms and conditions for the DIF waiver.
FISCAL IMPACT:
The fiscal impact associated with the approval of the fee waiver is $279,158.42 which is revenue the City will not receive.
MOTION:
Approve the Resolution based upon staff recommendation.