HomeMy WebLinkAboutAgenda Report - March 19, 2008 E-07AGENDA ITEM Earl
&a% CITY OF LODI
W COUNCIL COMMUNICATION
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AGENDA TITLE: Adopt Resolution Approving Fee Payment Agreement for
1343 East Kettleman Lane (Tuscany Comfort Suites)
MEETING DATE: March 19,2008
PREPARED BY: Public Works Director
RECOMMENDEDACTION: Adopt a resolution approving a Fee Payment Agreement for
1343 East Kettleman Lane and authorizing the City Manager to
execute the agreement on behalf of the City.
BACKGROUND INFORMATION: The proposed project is located at 1343 East Kettleman Lane and
consists of an 89 -room hotel (Tuscany Comfort Suites).
The developer, KFP Galt, LLC, has requested a Fee Payment Agreement for Development Impact
Mitigation Fees and Wastewater Capacity Impact Fees for the proposed project ($420,496). The
developer has also requested that the payment of fees be made in twenty (20) equal semi-annual
installments ($28,005) over a ten-year period. Interestwould be charged at the current Local Agency
Investment Fund (LAIF) rate plus one percent (5.801 %). The City Manager currently has authority to
approve Fee Payment Agreements having a term of seven years or less. Since the requested term is ten
years, Council approval of the agreement is required. Staff feels that the developer's request for a
ten-year term is reasonable and recommends approval of the agreement.
FISCAL IMPACT: While the fee payment agreement reduces impactfee revenue in the
current year, the interest rate being charged will offset the loss of interest
earnings to the impact fee fund. Obviously, the degree of offset will depend
on the actual interest rates the City receives on its investments.
FUNDING AVAILABLE: Not applicable.
Richard C. Prima., r.
Public Works Dir
Prepared by Chris Boyer, Junior Engineer
Attachment
RCPICBIpmf
APPROVED: ^ --1
Blair Ki Manager
KMP\DEV_SERVICFeePmtAgmt 1343EKettlemandoc 3/14/200B
WHEN RECORDED, RETURN TO:
City Clerk
City of Lodi
221 West Pine Street
Lodi, CA 95240
FEE PAYMENT AGREEMENT
1343 E. Kettleman Lane
THIS AGREEMENT is made and entered into by and between the CITY OF LODI, hereinafter referred to
as "City" and KFP GALT LLC, hereinafter referred to as "Owner".
RECITALS:
Owner is the owner of that certain seal property situated in the City of Lodi, County of San Joaquin, and
described as follows:
See Exhibit A for legal description
Owner is desirous of complying with existing City ordinances and policies regarding payment of the
Wastewater Capacity Iiiipact Fee and Development Impact Mitigation Fees as set forth in Title 13, Chapter
13.12 and Title 15, Chapter 15.64, respectively, of the Lodi Municipal Code. However, Owner has
requested payment of the Wastewater Capacity Impact Fee and Development Impact Mitigation Fees in
twenty (20) equal semi-annual iiistallnients over a ten (10) year period.
Council of the City will approve the payment of fees in twenty (20) equal seri-annual installments on
condition that the owner first enter into and execute this agreement with the City.
NOW THEREFORE, in order to insure satisfactory performance by Owner of Owner's obligations under
said City Code, the parties agree as follows:
Owner agrees to pay Development Impact Mitigation Fees and Wastewater Capacity Impact Fee in the
combined amount FOUR HUNDRED TWENTY THOUSAND FOUR HUNDRED NINTY SIX AND
00/100 DOLLARS ($420,496.00) in twenty (20) equal semi-annual payments of TWENTY EIGHT
THOUSAND FOUR AND 57/100 DOLLARS ($28,004.57) at an interest rate of 5.801 percent. The
principal amount represents $174,120.00 for Developnient Impact Mitigation Fees and $246,376.00 for
the Wastewater Capacity Impact Fee as shown on the attached Development Impact Mitigation Fee
Suinniary Sheet (Exhibit B).
2. The first payment shall be due no later than July I, 2008. All subsequent payments are due no later
than January 1 and July 1 of each year.
3. Each payment shall be credited first on interest due and the remainder on principal.
4. Upon sale, transfer or any other coiiveyance of the property, all fees payable under this agreement shall
become immediately due and payable. This agreement shall have no right of assignment.
Fee Payment Agreement.doe Page 1 of 3
5. If Owner fails to meet any specified payment as set forth in Item #1 above within fifteen (15) days
following the due date, the City Manager or the City Council may seine written notice upon Owner for
breach of this agreement and the default of Owner.
6. In the event of any such notice of breach, Owner shall have the duty to pay, in full, the balance of the
required fees. If the Owner, within five days after the serving of notice, does not give the City written
notice of its intention to pay in full the balance of the unpaid development impact mitigation fees and
wastewater capacity impact fee, and does not make such payment within five days after its notice to
City, this agreement shall be considered void. City shall institute legal proceedings to recover the
balance of the unpaid fees and for any excess cost or damage occasioned City thereby.
7. A copy of the Agreement shall be recorded in the office of the San Joaquin County Records, P. O. Box
1968, Stockton, California 95201-1968.
8. All notices herein required shall be in writing, and delivered in person or sent by registered mail,
postage prepaid.
Notices required to be given to City shall be addressed as follows:
Richard C. Prima, Jr.
Public Works Director
City of Lodi
P. O.Box 3006
Lodi, CA 95240-1910
Notices required to be given to Owner shall be addressed as follows:
KFP Galt, LLC
2552 Cottonwood Dr.
Lodi, CA 95242
Fee Payment Agreement.doc Page 2 of 3
IN WITNESS WHEREOF, the parties hereto have set their hands the day, month and year appearing
opposite their names.
CITY OF LODI, a Municipal Corporation
Dated: 2008 By:
Blair King, City Manager
Attest:
Randi Johl, City Clerk
KFP GALT LLC
t
Dated: % 2008
Approved as to form:
D.Stephen Sc a�
Ci
City Attorney
Dated: 2008
Fee Payment Agreement.doc Page 3 of 3
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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
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WITNE S y ha a seal.
Plate Notary $aat Above Signature of Niawry P ibrlo
OPTIONAL
Though the information below is not required by law, It may prove valuable to parsons ralying on Ilia document
and could prevent fraudulent romoval anti reattachment of this form to another document.
Description of Attached Document. n
Title or Type aE Document: �rt-(.- Qc wJ�•��c` t YG, �e_s_ rtiR n �-
Document Date: -)-' - 0 6
Number of Pages
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2 Capacity(ies) Claimed by Signer
`5 Signer's Name:
Individual
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Panner —❑ Limited 3 General
❑ Attomey in Fact
D Trustee
G Guardian or Conservator
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Signer Is Representing:
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x}CITY OF LODI
PUBLIC WORKS DEPARTMENT
Development Impact Mitigation Fee
Summary Sheet
JUUUI V IJIV 11.
Name
Tract #
File #
Parcel: 1337 E. Kettleman Lane
Address
Permit #
AP #
Developer/Owner: KFP Management Inc.
Name
Address
Project Description: Tuscany Comfort Suites
GP Land Use Category: Industrial
Commercial Retail
Parcel
Project (if different)
Fee Category Account # P RAE Adj.
F A
T
1) Water Facilities 1821.6122 $ 5,046.00 0.64
$ 3,230.00 2.00
$ 6,460.00
2) Sewer Facilities • See Below
$ 0.00 2.00
$ 0.00
3) Storm Drainage Facilities 3261.6122 $ 18,454.00 1.33
$ 24,540.00 2.00
$ 49,080.00
4) Street Improvements 3321.6122 $ 14,355.00 2.08
$ 29,860.00 2.00
$ 59,720.00
5) Police Protection Facilities 12151.6122 $ 1,983.00 4.12
$ 8,170.00 2.00
$ 16,340.00
6) Fire Protection Facilities 12161.6122 $ 1,938.00 2.69
$ 5,210.00 2.00
$ 10,420.00
7) Parks & Recreation Facilities 12171.6122 $ 27,868.00 0.32
$ 8,920.00 2.00
$ 17,840.00
8) General City Fac. & Prog, Admin. 12181.6122 $ 8,012.00 0.89
$ 7,130.00 1 2.00
$ 14,260.00
Total 1-8:
$ 174,120.00
Wastewater Capacity Fee:
$ 246,376.00
Grand Total:
$ 420,496.00
due prior to project approval
P = Program Fee per Residential Acre Equivalent (RAE) per Resolution 2001-242 and 2004-238 as
adjusted in conformance with LMC 15.64.050.
RAE = Residential Acre Equivalent per LMC § 15.64.070, unless adjusted.
Adj. = Checked if RAE is adjusted, see Notes below.
F = Fee per acre (rounded to nearest $10.00) = P x RAE.
A = Gross acreage per LMC § 15.64.020A & 15.64.060 (rounded to nearest 0.01 acre).
T = Total Fee for service category = A x F.
Notes:
1, Wastewater Capacity Impact Fee is based on a 138 -bed hotel and 3 beds/sewer service
unit (SSU)and represents 46 SSU. Each SSU is $5,356.00
2. The fees are based on the January 2008 Development Impact Mitigation Fee Schedule.
By: Approved:
Record #:
Date Billed:
Date Paid: (Fee category 1 thru 8)
02/25/2008 Impact Fees /
RESOLUTION NO. 2008-42
A RESOLUTION OF THE LODI CITY COUNCIL
AUTHORIZING FEE PAYMENT AGREEMENT FOR
1343 EAST KETTLEMAN LANE
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
authorize the City Manager to execute a Fee Payment Agreement with KFP Galt, LLC,
for Development Impact Mitigation Fees and Wastewater Capacity Impact Fees for
project located at 1343 East Kettleman Lane.
Dated: March 19,2008
hereby certify that Resolution No. 2008-42 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held March 19, 2008, by the following
vote:
AYES: COUNCIL MEMBERS — Hansen, Hitchcock, Johnson, Katzakian,
and Mayor Mounce
NOES: COUNCIL MEMBERS— None
ABSENT: COUNCIL MEMBERS— None
ABSTAIN: COUNCIL MEMBERS— None
ANDI JOHL
City Clerk
2008-42