TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
title
Miscellaneous Residential Amenities Development Impact Fee Credit Reconciliation Through May 31, 2025, for Various Preserve Development Projects.
end
RECOMMENDATION
Approve the Miscellaneous Residential Amenities Development Impact Fee (DIF) Credit Reconciliation through May 31, 2025, for various Preserve development projects; and authorize the City Manager to execute all the necessary documents on behalf of the City.
body
FISCAL IMPACT
There is no direct fiscal impact on the City.
Staff will continue to conduct annual reconciliations of the Miscellaneous Residential Amenities DIF credits and reimbursements and will return to the City Council periodically with updated reconciliations until all outstanding obligations and balances under the applicable agreements have been fully resolved.
Public improvements financed through Community Facilities District No. 2003-3 are not eligible for cash reimbursement under the City’s Development Impact Fee Program. Such improvements may only be recognized as Miscellaneous Residential Amenities DIF credits to the extent permitted under the applicable agreements and consistent with the City’s Miscellaneous Residential Amenities DIF Program requirements.
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:
• Financial Stability
• Responsible Long-Range Planning
• Public Service Excellence through Internal and External Partnership
|
Revenue: Click or tap here to enter text. |
Expenditure: |
|
Transfer In: Click or tap here to enter text. |
Transfer Out: Click or tap here to enter text. |
BACKGROUND
Before the City Council for consideration is a Miscellaneous Residential Amenities Development Impact Fee (DIF) Credit Reconciliation associated with various Preserve development projects and related public improvements constructed by the City's master developer, Lewis Companies ("Lewis"). The reconciliation provides a comprehensive accounting of Miscellaneous Residential Amenities DIF credits issued, non-CFD (Community Facilities District No. 2003-3) cash reimbursements processed, validated eligible costs, and remaining credit balances through May 31, 2025.
Over the years, the City and Lewis have entered into multiple DIF agreements establishing the framework for the issuance of Miscellaneous Residential Amenities DIF credits and reimbursements for eligible growth-related public improvements within The Preserve Specific Plan area. Eligible improvements generally include recreational and community amenities that support new development, including the Southern California Edison (SCE) Trail, paseos, trails, and related residential amenity improvements.
The reconciliation includes eligible improvements constructed pursuant to the following DIF agreements:
|
Contract No. |
Project Description |
|
2025-189 |
SCE Trail Improvements |
|
2023-163 |
Main Street Core Commons |
|
2023-249 |
Block 9 Independence (Tract 16420-4) |
|
2024-277 |
Block 3A (Tract 16420-5) |
|
2026-209 |
Block 11 (Tract 16420-6) |
Pursuant to the applicable agreements, City staff and Lewis completed a comprehensive reconciliation of all Miscellaneous Residential Amenities DIF construction credits issued, credits utilized, reimbursements processed, and remaining balances through May 31, 2025. The reconciliation determined that a total of $8,708,744.11 in eligible DIF credits has been established under the applicable agreements. Of that amount, $8,636,470.00 has been utilized through a combination of DIF credit application, leaving a remaining Miscellaneous Residential Amenities DIF credit balance of $72,274.11.
|
DIF Credit Summary |
Credit Amount |
|
Contract Nos. 2025-189 (SCE Trail Improvements) and 2023-163 (Main Street Core Commons) |
$6,577,746.11 |
|
Contract Nos. 2023-249, 2024-277, and 2026-209 (Future Residential Amenity Improvements) |
$2,130,998.00 |
|
Total Residential Amenity DIF Credits Issued |
$8,708,744.11 |
|
Less: DIF Credits Utilized and Reimbursements Processed Through May 31, 2025 |
($8,636,470.00) |
|
Remaining Residential Amenity DIF Credit Balance |
$72,274.11 |
ISSUES/ANALYSIS
Consistent with the applicable agreements and the City's ongoing administration of the Miscellaneous Residential Amenities DIF Program, staff completed a comprehensive reconciliation of all Miscellaneous Residential Amenities DIF credits issued, credits utilized, and remaining balances associated with eligible residential amenity improvements constructed within The Preserve Specific Plan area through May 31, 2025. The reconciliation was performed to verify the accuracy of existing DIF records, confirm remaining obligations and balances under the various agreements, and establish an updated baseline for future administration of the City's Miscellaneous Residential Amenities DIF Program and proposed DIF Nexus Study Update.
Accordingly, no additional Miscellaneous Residential Amenities DIF credits beyond the previously approved amounts have been issued at this time. Any future DIF credits associated with remaining eligible improvements will remain subject to completion of the improvements, City acceptance, verification of eligible costs, and compliance with the applicable agreements and Miscellaneous Residential Amenities DIF Program requirements.
Approval of this item will finalize the City's Miscellaneous Residential Amenities DIF Credit Reconciliation through May 31, 2025, bring the related DIF records current, improve the accuracy and defensibility of the City's DIF accounting records, and establish an updated baseline for future administration of the City's Development Impact Fee Program as staff continues implementation of the proposed Development Impact Fee Nexus Study Update.
Staff will continue conducting periodic reconciliations of Miscellaneous Residential Amenities DIF credits and anticipate returning with future reconciliation items as necessary to ensure all related agreements, balances, and obligations remain current and accurately reflected within the City's DIF program records.
Attachment: Exhibit A - Miscellaneous Residential Amenities DIF Credit Reconciliation