FROM:
Engineering
SUBJECT:
Title
Storm Drain Development Impact Fee Credit Agreement related to Ventana Specific Plan with HDO4, LLC
End
RECOMMENDATION:
Recommendation
Approve Storm Drain Development Impact Fee Credit Agreement related to Ventana Specific Plan with HDO4, LLC.
End
COUNCIL GOALS:
• To invest in the City’s infrastructure (streets, sewers, parks, etc.) by providing for the development of new infrastructure.
DISCUSSION:
On July 5, 2022, the City of Fontana’s Planning Commission recommended certification of the Supplemental Environmental Impact Report for the Ventana at Duncan Canyon Specific Plan Amendment Project (SCH. No. 2021100400) (“Supplemental EIR”), and approved MCN20-099R1, SP Amendment No. 21-001, and GP Amendment No. 21-006. On July 26, 2022, the City of Fontana’s City Council certified the Supplemental EIR and approved MCN20-099R1, SPA Amendment No. 21-001, and GPA No. 21-006 within the Ventana Specific Plan.
Chapter 21, Article VI - Construction and/or Dedication In-Lieu of Development Impact Fees (Section 21-151 through 21-154) of the Fontana Municipal Code establishes a policy allowing in-lieu fee credit agreements between the City and developers. This provides an alternative method for satisfying a developer’s obligation to mitigate impacts from the development other than through payment of development impact fees.
Developer has constructed the portion of the storm drain improvement, and in connection with the Ventana Specific Plan and Developer’s cost to construct the Storm Drain Improvements was Five Million Four Hundred Sixty-Three Thousand One Hundred Fifty Dollars ($5,463,150) (“Improvement Value”), thus exceeding the Fair Share Obligation by Five Million One Hundred Seventy-Four Thousand One Hundred Seven and 41/100 Dollars ($5,174,107.41). To partially compensate Developer for the difference between the Improvement Value and the Fair Share Obligation, the City has agreed to provide Developer with a storm drain development impact fee credit in the amount of Five Hundred Ninety-Nine Thousand Nine Hundred Dollars ($599,900) that may be applied against future Storm Drain Development Impact Fees imposed in connection with future development within the same Master Storm Drain Plan benefit area.
FISCAL IMPACT:
The approval of the Development Impact Fee Credit Agreement results in a reduction of the Developer’s Storm Drain Impact Fee payable in connection with future development within the same Master Storm Drain Plan benefit area.
MOTION:
Approve staff recommendation.