TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
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Public Improvement Agreement with Great Dragon, LLC for Site Approval PL22-0027, located at 13787 Oaks Avenue.
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RECOMMENDATION
Approve a Public Improvement Agreement with Great Dragon, LLC, for Site Approval PL22-0027, located at 13787 Oaks Avenue, and authorize the City Manager to execute all necessary documents on behalf of the City.
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FISCAL IMPACT
There is no direct fiscal impact to the City. All costs associated with the required public improvements will be borne by the Developer. In addition, the Developer has paid an in-lieu fee for the future undergrounding of overhead utility improvements. The funds deposited will be applied toward the undergrounding work when it is determined to be feasible as part of a future Capital Improvement Project.
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
On May 17, 2023, the Chino Planning Commission approved Site Approval PL22-0027 for the construction of a single-tenant, 20,000-square-foot industrial building on a 1.11-acre site located at 13787 Oaks Avenue (Exhibit A). The project is intended to accommodate a wholesale and distribution business for shoes.
The Engineering Conditions of Approval (COA) require the construction of various public improvements along the project frontage, including curb, gutter, sidewalk, streetlights, asphalt concrete pavement, landscaping, sewer, water, and recycled water improvements. To ensure completion of these improvements, the developer is required to enter into a Public Improvement Agreement (PIA) and provide the necessary improvement securities.
Final engineering has been completed, and the developer is currently constructing the required public improvements. The required bonds have been submitted in accordance with City requirements, and all costs associated with the improvements are borne solely by the developer.
The PIA was delayed from City Council consideration to allow staff and the developer time to finalize terms related to undergrounding overhead utilities along the project frontage, as required by the Conditions of Approval and City Code. However, due to existing overhead transmission lines, which don't require undergrounding, the utility poles would need to remain in place to support those utilities. Since the project frontage represents only a small portion of this segment of Oaks Avenue, staff determined that partial undergrounding of the utilities would provide limited benefit. As a result, staff concluded that an in-lieu fee, consistent with City Code, would be more appropriate to support a future, more comprehensive underground project along this corridor. The City and developer subsequently agreed to a fair-share contribution, and the developer has provided a lump-sum payment of $239,184 to be applied toward a future Capital Improvement Project. An engineer’s estimate of this work is attached as Exhibit C.
ISSUES/ANALYSIS
The requirements made at the time of project approval have been met by the execution of the PIA for Site Approval PL22-0027 and by posting the necessary securities to guarantee the construction of public improvements conditioned for this development. The City Attorney reviewed and approved the PIA, which is attached as Exhibit B.
Attachments - Exhibit A - Map
Exhibit B - PIA