TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
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Chino Preserve Development Corporation - Development Impact Fee Credit & Reimbursement Agreement Tract Map No. 16420-5 (Block 3).end
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RECOMMENDATION
Approve a Development Impact Fee Construction credit/reimbursement agreement with Chino Preserve Development Corporation for Tract Map No.16420-5 (Block 3) for $4,077,734 and authorize the City Manager to execute the necessary documents on behalf of the City.
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FISCAL IMPACT
Credits issued to the developer will be deducted from the actual project costs once the final cost accounting has been reviewed and approved by the City Engineer. Upon the final acceptance of the public improvements by the City Council, staff will continue to monitor the fund balance in the appropriate Development Impact Fee Fund and begin making progress payments to the developer until the terms of the agreement are fulfilled. Each progress payment will require an appropriation of funds and therefore, each payment will be brought back to the City Council for approval.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Responsible Long-Range Planning
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BACKGROUND
In 2008, the City’s Planning Commission approved an “A” level Master Site Approval and Tentative Tract Map No. 16420 to subdivide 522 acres of land generally located south of Pine Avenue, west of Hellman Avenue, and north and east of Chino Corona Road for what is known as the South of Pine area in The Preserve. The purpose of the original Master Site Approval was to establish large parcels, and phase major backbone street systems for both future residential and non-residential development within the master plan area.
On February 23, 2022, the City’s Planning Commission conditionally approved a Development Modification to the Master Site Approval and Tentative Tract Map No. 16420. The modification removed the phased development concept originally approved, divided the larger land area into smaller lots to be reconveyed for development, and established improvement areas for future development. It is important to note that the Developer Modification also incorporated conditions of approval for improvements along Pine Avenue for associated developments within the larger project area to help facilitate needed improvements to the area.
Subsequently, on September 19, 2022, the City’s Planning Commission approved Master Site Approval PL21-0045 and Tentative Tract Map No. 20446 to create 114 numbered lots and 7 lettered lots to accommodate 114 single-family homes (known as “Block 3”). This project is generally located on the north side of Chino Corona Road between Main Street and Legacy Park Street as shown in Exhibit A. Tract Map No. 16420 (as amended) will dedicate and require surety for portions of offsite improvements within the Tentative Tract Map No. 20446 area. Furthermore, Tentative Tract Map No. 20446 is intended to be recorded in two phases. Each phase may be recorded independently of the other. As a result, Chino Preserve Development Corporation requested approval of Tract Map No.16420-5 Final Map, which subdivides 24.91 acres within Block 3 as shown on Exhibit B, which was approved by the City Council on November 21, 2023.
The Engineering Conditions of Approval (COA) for Block 3 requires public improvements including, but not limited to curb, gutter, sidewalk, streetlights, asphalt concrete pavement, median/parkway landscape, sewer, water, recycled water, and drainage improvements on East Preserve Loop, Chino Corona Road, and Legacy Park Street. To guarantee the completion of these public improvements, the developer entered into a Subdivision Improvement Agreement with the City and provided the necessary securities for the improvements. The final engineering for Tract Map No. 16420-5 is substantially complete and the developer is desiring to pull building permits for this development soon.
Some of the required public improvements are master-planned facilities and are included in the City’s Preserve Sewer Development Impact Fee (“DIF”) program. The DIF Ordinance provides that if, as a condition of approval of a development project, a developer constructs a public facility identified in the DIF Nexus and Calculation Report, for which a DIF is imposed, Developer shall be eligible to receive reimbursement and a fee credit toward the DIFs imposed on the development project for the same type of public facility so constructed and shall be entitled to credit for eligible costs of constructing the public facilities; thus, necessitating a construction credit and reimbursement agreement with the City.
ISSUES/ANALYSIS
The requirements made at the time of tentative map approval have been met by the execution of the Subdivision Improvement Agreement for Tract Map No. 16420-5 and by posting the necessary securities to guarantee the construction of public improvements conditioned for Block 3.
Additionally, upon the final acceptance of the public improvements the developer will submit its backup documentation to the City, the City Engineer will review the final accepted/approved "as-built" plans, specifications, and supporting documentation and will determine what costs are eligible for reimbursement. There may be a possibility that the eligible costs approved by the City Engineer exceed the original estimate of $4,077,734. If that is the case, City staff will include the updated costs for the project in the next annual update to the Nexus Report. Additionally, once the final cost accounting is approved, staff will bring back to the City Council an action to appropriate funds to make progress payments and apply DIF credits issued to the Developer for Tract Map No. 16420-5 until the terms of the agreement are fulfilled.
Therefore, staff recommends that the City Council approve a construction credit/reimbursement agreement with Chino Preserve Development Corporation for $4,077,734.
The City Attorney reviewed and approved the construction credit/reimbursement agreement, which is attached as Exhibit C.
Attachments: Exhibit A - Location Map Master Site Approval PL21-0045
Exhibit B - Location Map Tract Map No. 16420-5
Exhibit C - Construction Credit & Reimbursement Agreement