The URL can be used to link to this page

Home My WebLink AboutAgenda Report - February 4, 1998 E-09CITY OF LODI COUNCII, COMMUNICATION AGENDA TITLE: Approve Wastewater Development Incentive for Scientific Specialties MEETING DATE: February 4, 1998 PREPARED BY: Public Works Director RECOMMENDED ACTION: That the City Council approve the following development incentive for Scientific Specialties: • Reimbursement for the cost of extending the 10 -inch sewer main in Thurman Street including ten percent (10%) for engineering, but not to exceed $25,000. BACKGROUND INFORMATION: Scientific Specialties is a local firm which manufactures small plastic items used by the medical industry. Its manufacturing facility is currently located at 1901 Ackerman Drive and has approximately 40 employees. The owners, Kenneth and Roberta Hovatter, are planning to relocate their facilities to a new site on the south side of Thurman Street which will provide room for future expansion (Exhibit A). The site will be developed in phases. The first phase includes the construction of a 51,900 square foot manufacturing facility, which will have an ultimate capacity of about 80 employees, and the construction of street improvements in Thurman Street. The second and third phases will add buildings totaling approximately 52,000 square feet. At ultimate capacity, the plant will have about 120 employees. In keeping with the City's ongoing economic development and business retention efforts, a fee payment agreement will be provided for development impact mitigation fees and sewer capacity fees associated with the first phase of the project. Based on a first phase development of 3.1 acres and 80 full-time employees, these fees will total $113,308. The payment agreement will be in conformance with the terms and conditions approved by Council on September 17, 1997, for standard fee payment agreements. In addition, staff recommends that the following development incentive be approved to assist the relocation and expansion efforts of this firm: Reimbursement by the City for the cost of extending the existing 10 -inch sanitary sewer main in Thurman Street, including 10% for engineering, but not exceeding $25,000. The total cost of the street improvements in Thurman Street will be on the order of $150,000. The City will be reimbursing the developer for a portion of those costs (approximately $25,000) for oversize lines in accordance with LMC §16.40. Existing Thurman Street improvements west of the project site were installed and paid for by the City. Reimbursement to the City for the cost of these improvements has not been required of recent industrial developments along the improved frontage, thus providing those developments with a substantial cost savings. APPROVED: , H. Dixon Flynn -- City Manager CSCIEINCNT.DOC 01/26/98 Approve Wastewater Development Incentive for Scientific Specialties February 4, 1998 Page 2 In view of this practice, staff recommends that the cost of the sanitary sewer main extension in Thurman Street, including 10% for engineering, be paid by the City. The current estimate for the cost of this work is $24,300. As a matter of information, in an effort to recover a portion of the costs of the Thurman Street improvements paid for by the City, staff will be bringing a request to Council at a later date to establish an area of benefit and reimbursement agreement for these improvements. The reimbursement agreement would affect only currently undeveloped parcels which benefit from the improvements. If Council approves the sewer payment incentive outlined above, the City will have paid for the entire sewer main in Thurman Street which will greatly simplify the reimbursement process. FUNDING: Sewer Utility Fund Funding Available: )X CCSL�v�Si.. Finance Directo %1 Ronsko Vorks Director Prepared by Sharon A. Welch, Associate Civil Engineer JLR/SAW/Im Attachment cc: Economic Development Coordinator Water/Wastewater Superintendent Associate Civil Engineer - Development Services Kenneth and Roberta Hovatter CSCIEINCNIDOC 1/28/98 y OFA OF • , 'FTi, 00 PUBLIC WORKS DEPARTMENT V ,• irk </FOFt EXHIBIT A C.T.T. Co LODI AVE. 0 � I1d6 h bi W Q m THURMAN ST. (Futur CD SCIENT FIC.SPECIALITIES ..tv�r.,: ree� PROPOSED SITE FUTURE EXPANSION INDUSTRIAL wy. N.T.S. CITY COUNCIL JACK A. 51EGLOCK, Mayor KEITH LAND Mayor Pro Tempore STEPHEN J. MANN PHILLIPA. PENNINO DAVID P. WARNER CITY OF LODI CITY HALL, 221 WEST PINE STREET P.O. BOX 3006 LODI, CALIFORNIA 95241-1910 (209) 333-6706 FAX (209) 333-6710 January 28, 1998 Mr. and Mrs. Kenneth Hovatter 1901 Ackerman Drive Lodi, CA 95240 H. DIXON FLYNN City Manager ALICE M. REIMCHE City Clerk RANDALL A. HAYS City Attorney SUBJECT: Approve Wastewater Development Incentive for Scientific Specialties Enclosed is a copy of background information on an item on the City Council agenda of Wednesday, February 4, 1998. 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 opportunity to address items on the consent calendar at the appropriate time. If you wish to write to the City Council, please address your letter to City Council, City of Lodi, P. O. Box 3006, Lodi, California, 95241-1910. Be sure to allow time 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 Alice Reimche, City Clerk, at 333-6702. If you have any questions about the item itself, please call Sharon Welch at 333-6800, ext. 659. Jac L. Ronsko Pubf Works Director J LRArn Enclosure cc: City Clerk NCSCIEINCNT.DOC