HomeMy WebLinkAboutAgenda Report - May 5, 2010 D-0707 AGENDA ITEM boo
CITY OF LODI
,. COUNCIL COMMUNICATION
Im
AGENDA TITLE: Adopt Resolution Revising Fee Payment Agreement for 1341 East Kettleman Lane
MEETING DATE:
PREPARED BY:
May 5, 2010
Public Works Director
RECOMMENDEDACTION: Adopt a resolution revising the Fee Payment Agreement for
1341 East Kettleman Lane.
BACKGROUND INFORMATION: The City Council, at the April 7, 2010 meeting, directed staff to
prepare an amended fee payment agreement that lowered the
interest rate, provided a delayed first payment, included an
adjustable rate of interest, and capped the interest rate. Staffs
recommendation is the Fee Payment Agreement will be revised each January 1 to reflect the LAIF rate
plus one percent in effect on that date. The initial interest rate would be 1.6 percent until the first
payment. Two first payment dates were discussed: July 1, 2011 and January 1, 2012. Staff is
recommending January 1, 2012 be the date for the first payment. In addition, staff is recommending that
the interest rate be capped at four percent (a maximum LAIF rate of three percent).
KFP Galt, LLC operates a business that generates substantial new property tax and occupancy tax
revenue for the City. KFP Galt, LLC has substantiated a significant financial need in its request for
consideration from the City. City staff has reviewed this request and, after consideration of the above
factors, recommends the balance of the Development Impact Mitigation Fees and Wastewater Capacity
Impactfees be paid per the attached amortization schedule.
Staff recommends adoption of a resolution that amends the Fee Payment Agreement to include a start
date of January 1, 2012, an initial interest rate of 1.6 percent, and semi-annual payments for a 10 -year
period.
FISCAL IMPACT: Not Applicable.
FUNDING AVAILABLE: Not Applicable.
F. Wally Sa lin
Public Works Director
Prepared by Wesley K. Fujitani, Senior Civil Engineer
FWSMKF/pmf
Attachment
cc: KFP Galt, LLC
APPROVED:
Blair Kin M ager
K:\WP\DEV SERV\C1341EKettleman_revised agmt.doc
4/23/2010
WHEN RECORDED, RETURN TO:
City Clerk
City of Lodi
221 West Pine Street
Lodi, CA 95240
REVISED FEE PAYMENT AGREEMENT
1341 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 real property situated in the City of Lodi, County of San Joaquin, and
described as follows:
Parcel 2, as shown on that certain parcel map filed for record March 14,
2008 in Book 24 of Parcel Maps, Page 176, San Joaquin County Records.
Owner is desirous of complying with existing City ordinances and policies regarding payment of the
Wastewater Capacity Impact 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 Municipa! Code. Owner had previously
entered into a Fee Payment Agreement with the City on March 19,2008 to cover these costs. However,
Owner has requested that this Agreement be revised to reflect the current Local Agency Investment Fund
(LAIF) interest rate.
Council of the City will approve the payment of the remaining fees in twenty (20) semi-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:
1. Owner has provided the City with three payments of TWENTY EIGHT THOUSAND FOUR AND
57/100 DOLLARS ($28,004.57). The remaining balance due for the Development Impact Mitigation
Fees and Wastewater Capacity Fees is now THREE HUNDRED SEVENTY ONE THOUSAND SIX
HUNDRED EIGHTY TWO AND 92/100 DOLLARS ($371,682.92).
2. Owner agrees to pay the balance of the Development Impact Mitigation Fees and Wastewater Capacity
Impact Fee in twenty (20) semi-annual payments at an interest rate of 1.600 percent as shown on the
attached Development Impact Mitigation Fee Payment Amortization Schedule Sheet (Exhibit A).
3. The first payment shall be due no later than January 1,2012. All subsequent payments are due no later
than January 1 and July 1 of each year.
4. Interest will be reset on January 1 of each year and charged at the LAIF interest rate plus one percent;
the interest rate shall not exceed 4 percent.
5. Each payment shall be credited first on interest due and the remainder on principal.
CFeePmtAgmt_1343EKettleman_Agreement.doe Page 1 of3
6. Upon sale, transfer or any other conveyance of the property, all fees payable under this agreement shall
become immediately due and payable. This agreement shall have no right of assignment.
7. If Owner fails to meet any specified payment as set forth in Item 42 through Item #4 above within
fifteen (15) days following the due date, the City Manager or the City Council may serve written notice
upon Owner for breach of this agreement and the default of Owner.
8. 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.
9. 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.
10. 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:
F. Wally Sandelin
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
CFeePmtAgmt_1343EKettleman_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: 200s By:
Blair King, City Manager
Dated: 200s
Approved as to form:
Randi Johl, City Clerk
KFP GALT LLC
D. Stephen Schwabaue
City Attorney
Dated: 200s
UeePmtAgmt_1343EKettleman_Agreement.doc Page 3 of 3
RESOLUTION NO. 2010-54
A RESOLUTION OF THE LODI CITY COUNCIL
AUTHORIZING THE CITY MANAGER TO EXECUTE
A REVISED FEE PAYMENT AGREEMENT FOR
1341 EAST KETTLEMAN LANE
---------------------------------------------=--------------------------
------------------------------------------------------------------------
WHEREAS, a Fee Payment Agreement with KFP GALT, LLC, for Development Impact
Mitigation Fees and Wastewater Capacity Impact Fees for 1341 East Kettleman Lane were
approved by the Lodi City Council on March 19,2008; and
WHEREAS, the agreement provided that the payment of fees be made in 20 equal semi-
annual installments over a ten-year period with interest being charged at the March 2008 Local
Agency Investment Fund (LAIF) rate plus one percent (5.801 %); and
WHEREAS, in the two years since the agreement was executed, the LAIF has dropped
to 0.60%, and KFP GALT, LLC has requested a revised Fee Payment Agreement using the
current LAIF rate plus one percent; and
WHEREAS, the Fee Payment Agreement will be revised each January 1 to reflect the
LAIF rate plus one percent in effect on that date. Staff also recommends that the interest rate
on the Fee Payment Agreement be capped at 4 percent (a maximum LAIF rate of 3 percent);
and
WHEREAS, staff is recommending that the first payment of this revised agreement be
due on January 1, 2012, with the remaining payments being made in 20 semi-annual
installments over a ten-year period.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
authorize the City Manager to execute a Revised Fee Payment Agreement with KFP Galt, LLC,
for Development Impact Mitigation Fees and Wastewater Capacity Impact Fees for project
located at 1341 East Kettleman Lane.
Dated: May 5, 2010
------------------------------------------------------------------------
------------------------------------------------------------------------
1 hereby certify that Resolution No. 2010-54 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held May 5, 2010, by the following vote:
AYES: COUNCIL MEMBERS— Hansen, Hitchcock, Johnson, Mounce, and
Mayor Katzakian
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS— None
ABSTAIN: COUNCIL MEMBERS— None
JOHL .
City Clerk
2010-54
Is] IW"01110Is] II
PHIL KATZAKIAN, Mayor
SUSAN HITCHCOCK,
Mayor Pro Tempore
LARRY D. HANSEN
BOBJOHNSON
-JOANNE-L. MOUNCE--
KFP Galt, LLC
2552 Cottonwood Drive
Lodi, CA 95242
CITY OF LODI
PUBLIC WORKS DEPARTMENT
CITY HALL, 221 WEST PINE STREET
P.O. BOX 3006
LODI, CALIFORNIA 95241-1910
(209)333-6706
FAX (209) 333-6710
EMAIL pwdept@lodi.gov
http:\\www.lodi.gov
April 26, 2010
SUBJECT: Adopt Resolution Revising Fee Payment Agreement for
1341 East Kettleman Lane
BLAIR KING
City Manager
RANDIJOHL
City Clerk
D. STEVEN SCHWABAUER
City Attorney
F. WALLY SAN D.ELIN
Public Works Director
Enclosed is a copy of background information on an item on the City Council agenda of
Wednesday, May 5, 2010. The meeting will be held at 7 p.m. in the
City Council Chamber, Carnegie Forum, 305 West Pine Street.
This item is on the consent calendar and is usually not discussed unless a
- Council Member requests discussion. The public is given an opportunityto address
items on the consent calendar at the appropriate time.
If you wish to write to the City Council, please address your letterto City Council,
City of Lodi, P.O. Box 3006, Lodi, California, 95241-1910. Be sure to allowtime for the
mail. Or, you may hand -deliver the letter to City Hall, 221 West Pine Street.
If you wish to address the Council at the Council Meeting, be sure to fill out a speaker's
card (available at the Carnegie Forum immediately prior to the start of the meeting) and
give it to the City Clerk. If you have any questions about communicating with the
Council, please contact Randi Johl, City Clerk, at 333-6702.
If you have any questions about the item itself, please call Wes Fujitani,
Senior Civil Engineer, at 333-6800, extension 2669.
F. Wally Sandelin
Y Public Works Director
FWS/pmf
Enclosure
cc: City Clerk
NC1341EKETTLEMAN_REVISED AGMT.DOC