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HomeMy WebLinkAboutAgenda Report - March 15, 2023 C-0804 CITY OF s p t CALIFORNIA AGENDA ITEM Can? COUNCIL COMMUNICATION AGENDA TITLE: Adopt Resolution Authorizing the City Manager to Execute a Fee Payment Agreement for 2459 Maggio Circle (Liberty Self Storage) MEETING DATE: March 15, 2023 PREPARED BY: Public Works Director RECOMMENDED ACTION: Adopt resolution authorizing City Manager to execute a Fee Payment Agreement for 2459 Maggio Circle (Liberty Self Storage). BACKGROUND INFORMATION: Liberty Self Storage, L.P. (Owner) has submitted building permit applications (No. B2021-3232 and B2021-3233) to construct two storage buildings on the property known as 2459 Maggio Circle (shown in Exhibit A). Payment of Development Impact Mitigation (DIM) Fees ($233,195.46) is required as part of the building permit conditions. The Owner requested to enter into a Fee Payment Agreement on December 15, 2022, with the City to allow payment of the DIM fees in fourteen (14) equal semi-annual installments ($18,637.68) plus interest over a seven-year period. Interest would be charged at the current Local Agency Investment Fund (LAI F) rate plus one percent (3.07%). The City Manager currently has authority to approve Fee Payment Agreements having a term of seven years or less and up to $50,000. Since the fees due are more than $50,000, Council approval of the agreement is required. The letter requesting the fee payment agreement (attached as Exhibit B) explains that the project can provide economic benefit to the Lodi Community and that there is a significant financial need to defer the fee payment. Considering the positive economic impacts to the City, Staff is recommending the City Council to authorize the City Manager to execute the Fee Payment Agreement for 2459 Maggio Circle (Liberty Self Storage). FISCAL IMPACT: While this Council action has no impact, the approved Fee Payment Agreement would allow for the successful completion of the storage buildings which supports new revenues for the City. FUNDING AVAILABLE: Not Applicable. C "- U=2 Charles E. Swimley, Jr Public Works Director Prepared by Karissa Kiriu, Associate Civil Engineer CES/KTVK/cdb Attachment cc City Attorney, Magdich Deputy Public Works Director/City Engineer, Chang Associate Civil Engineer, Kiriu Junior Engineer, Wiman Liberty Self Storage, L.P., Owner APPROVED: " ..... . Stephen Schwabauer, City Manager \\cvcfilv02\pubwks$\WP\DEV_SERV\Developments\Commercial-Industrial\Maggio 2427 & 2459\Fee Payment Agreement\CC_Maggio 2459.doc 3/112023 leg 175 le i 187 20i 7 215 221 227 23 3 'J - Hv, r 12 < 1 eillf rl� n Ln 3 Harn Ln. 2442 mag9to Gtr. k � N Harney Lri_ Legend ❑ Parcel Outline SOFTBALL ; City Limits Landmarks tj STADIUM n ARCH THEATRE CITYBUILDINGS TRAIN CITYHALL Railroads ,� COURT Waterbodies DOGPARK Street Names FIRESTATIONS ❑ Basins Map Scale Notes 2459 Maggio Circle Liberty Self Storage 1:2,257 376 0 188 W GS_1984_Web_Mercator_Auxi liary_Sph e re © City of Lodi Geographic Information Systems 376 Feet This map is a user generated static output from an Internet mapping site and is for reference only. Data layers that appear on this map may or may not be accurate, current, or otherwise reliable. THIS MAP IS NOT TO BE USED FOR NAVIGATION December 15, 2022 City of Lodi Karissa Kiriu, Associate Civil Engineer Lodi CA SUBJECT: 2459 Maggio Circle, Lodi CA 925242- DIM fee deferment Hi Karissa, We are requesting a Fee Payment Agreement for our development at 853 North Cluff Avenue. 1) The project constructs 142,000 sq. feet of RV, Boat and conditioned storage. The project will produce substantial economic benefit including property tax revenue, sales tax revenue and provide opportunity for employment. 2) The project has a significant need that will be partially mitigated by the agreement. Due to significant increases in construction costs the project would benefit from paying the fees over a seven-year period. Overall construction pricing has nearly doubled since the commencement of this development. Please let us know what additional information is required. Sincerel4erlf Storage LP Cliff Lenzi, Member WHEN RECORDED, RETURN TO: City Clerk City of Lodi 221 West Pine Street Lodi, CA 95240 FEE PAYMENT AGREEMENT 2459 MAGGIO CIRCLE, Lodi, CA APN: 062-410-36 THIS AGREEMENT is made and entered into by and between the CITY OF LODI, a California municipal corporation, hereinafter referred to as "City" and LIBERTY SELF STORAGE, L.P., a California limited partnership, 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 1, AS SHOWN ON THE PARCEL MAP, FILED IN THE OFFICE OF THE RECORDER OF SAN JOAQUIN COUNTY ON JULY 10TH, 2020 IN BOOK 26 OF PARCEL MAPS AT PAGE 169. Owner desires to comply with existing City ordinances and policies regarding payment of the Development Impact Mitigation Fees as set forth in Title 15, Chapter 15.64, respectively, of the Lodi Municipal Code; however, Owner has requested payment of the Development Impact Mitigation Fees be made in fourteen (14) equal semi-annual installments over a seven (7) year period. The City Manager will approve the payment of fees in fourteen (14) equal 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 agrees to pay Development Impact Mitigation Fees in the amount of TWO HUNDRED THIRTY-THREE THOUSAND ONE HUNDRED NINETY-FIVE DOLLARS AND 46/100 ($233,195.46) in fourteen (14) equal semi-annual payments of EIGHTEEN THOUSAND SIX HUNDRED THIRTY-SEVEN DOLLARS AND 68/100 ($18,637.68), including interest at the rate of 3.07 percent. The principal amount represents the Impact Fees as shown on the attached Development Impact Mitigation Fee Summary Sheets, attached hereto as Exhibit A and made a part hereof. 2. The first installment payment shall be due and payable no later than July 1, 2023. All subsequent payments are due no later than January 1 and July 1 of each calendar year thereafter until the fees are paid in full. 3. Each payment shall be credited first on interest due and the remainder on principal as set forth in the Fee Payment Amortization Schedule, attached hereto as Exhibit B and made a part hereof. 4. Upon sale, transfer, or any other conveyance of the real property, described hereinabove, all fees payable under this Agreement shall become immediately due and payable to City. This Agreement shall have no right of assignment. Fee Payment Agreement - Maggio 2459 Page 1 of 4 5. If Owner fails to meet any specified installment payment asset forth above within fifteen (15) days following the due date, the City Manager, City Council, or designee, may serve written notice upon Owner for breach of this Agreement and declare the default of Owner. 6. In the event of any such notice of breach and default, Owner shall have the duty to pay, in full, the balance of the required fees then due and owing to City. 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 interest thereon, and does not make such payment within five (5) 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 interest thereon and for any excess cost or damage occasioned City thereby, including attorney's fees and costs. 7. A copy of this 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 under this Agreement 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: Charlie Swimley, 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: Cliff Claudio Lenzi Member Liberty Self Storage, L.P. 415 Crocker Avenue Pacific Grove, CA 93950 [The balance of this page is intentionally left blank.] Fee Payment Agreement - Maggio 2459 Page 2 of 4 9. The signatories of this Agreement represent that they are authorized to enter into this Agreement on behalf of the Party for whom they purport to represent. IN WITNESS WHEREOF, the parties hereto have set their hands the day, month and year appearing opposite their names. CITY OF LODI, a California municipal corporation Dated: 2023 By: Dated: Approved as to form: Dated: Stephen Schwabauer, City Manager Attest: Olivia Nashed, City Clerk LIBERTY SELF STORAGE, L.P., a California limited partnership 2023 By: Cliff Claudio Lenzi, Member Janice D. Magdich, City Attorney 2023 Fee Payment Agreement - Maggio 2459 Page 3 of 4 CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT CIVIL CODE 41189 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of San Joaquin On Date personally appeared _ me, Insert Name and Title of the Officer Names) ofSigner(s) Who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature: Fee Payment Agreement - Maggio 2459 Page 4 of 4 EXHIBIT A CITY OF LODI Development Impact Mitigation Fee xl PUBLIC WORKS DEPARTMENT Summary Sheet - Revised ESTIMATE 1/31/2023 Subdivision: Name Tract # File # Parcel: 2459 Maggio Circle B2021-3232 Address Permit # Lodi, CA 95240 Developer/Owner: Liberty Self Storage LP Name 415 Crocker Avenue, Pacific Grove, CA 93950 Address Project Description: _Building A (35,687 SF warehouse) including installation of one (1) 1.5 -inch water meter and one 1 400 am /480 volt/three phase electrical panel on a 4.55 acre site GP Land Use Category: APN 062-410-36 Parcel Project (if different) Fee Ca ❑ Account # F Ad'. B (t) T 1 Water Facilities 56200000.57501 $ 10,404.00 12) PWDF03 1.00 $ 10,404.00 2 Wastewater Facilities 53300000.57501 $ 15,308.00 (3) PWDF02 1.00 $ 15,308.00 3 Storm Drainage Facilities 53500000.57501 $ 0.00(4) PWDF04 0.00 $ 0.00 4 Street Improvements 30800000.57501 $ 653.00 PWDF05 35.69 $ 23,303.61 5 Police Protection Facilities 43500000.57501 $ 207.00 PWDF07 35.69 $ 7,387.21 6 Fire Protection Facilities 43600000.57501 $ 250.00 PWDF08 35.69 $ 8,921.75 7 Parks & Recreation Facilities 43700000.57501 $ 318.00 PWDF09 35.69 $ 11,348.47 7a Neighborhood Park Facilities 43900000.57501 $ 0.00 15) PWDF13 0.00 $ 0.00 8 General City Facilities 43800000.57501 $ 231.00 PWDF10 35.69 $ 8,243.70 9 Electrical Facilities 50500000.57501 $ 7,080.00 te/ PWDF01 1.00 $ 7,080.00 10 Art in Public Places 43400000.57504 $ 26.00 PWDF11 35.69 $ 927.86 11 South Wastewater Trunk Line 53300000.57505 $ 0.0011) PWDF12 0.00 $ 0.00 12 Non -Potable Water Facilities 56200000.57506 $ 89.00 IPWDF14 35.69 $ 3,176.14 Total 1-12: $ 96,100.74 Total: $ 96,100.74 F = Fee per unit B = Number of units due prior to Occupancy T = Total Fee for service category = FXB. Notes: 1. he buildingg is comprised of industrial use based an information provided on the subject building permit. 2. The Water Ca achy Fee isbased on ane [i } 1.inch water meter For the parcel 3. The Wastewater Capacity Fee is based on water meter size. Wastewater capacity based on one (1) 1.5 -inch water meter. 4 The Storm Drain faplites fee paid 211 711 9 87 (Maggio Industrial Park Unit No. 1). 3. Neighborhood Park Fee does rsoi apply to this pros1ect lacatron. 6. Electncal Faciiities Fee is based on an 400 amp14130 Vdt three phase panel. 7. South Wastewater Trunk Line imppact fee does not apply to this pproject locasion. 8. Development Impact Mitigation [❑IM} Fee estimate based on inlvrmation provided wish the sutl ct building permit and utilizing the 2023 DIM Fee Schedule {fee schedule subject 1p change]. Development Impact Mitigation Fees due shall be based on the effective schedule at final inspection. By: Approved: Record M -- Date Billed: Date Paid: UWP\DEV_SERV\Developments\Commercial-Industrial\Maggio 2427 & 2459\DIM fees\B2021-3232 Maggio 2459 Building A DIM Fees2023 CITY OF L O D I Development Impact Mitigation Fee PUBLIC WORKS DEPARTMENT Summary Sheet - Revised ESTIMATE 1 /31 /2023 Subdivision: Name Tract # File # Parcel: 2459 _Maggio Circle B2021-3233 Address Permit # Lodi, CA 95240 Developer/Owner: Liberty Self Storage LP Name 415 Crocker Avenue, Pacific Grove, CA 93950 Address Project Description: Building B (77,280 SF warehouse) GP Land Use Category: APN 062-410-36 Parcel Project (if different) Fee Category Account # F Ad'. B (1) T 11_ Water Facilities 56200000.57501 $ 0.00'121 PWDF03 0.00 $ 0.00 P Wastewater Facilities 53300000.57501 $ 0.00(1) PWDF02 0.00 $ 0.00 3 Storm Drainage Facilities 53500000.57501 $ 0.00(2) PWDF04 0.00 $ 0.00 4 Street Improvements 30800000.57501 $ 653.00 PWDF05 77.28 $ 50,463.84 5 Police Protection Facilities 43500000.575011 $ 207.00 PWDF07 77.28 $ 15,996.96 6 Fire Protection Facilities 43600000.575011 $ 250.00 PWDF08 77.28 $ 19,320.00 7 Parks & Recreation Facilities 43700000.575011 $ 318.00 PWDF09 77.28 $ 24,575.04 7a Neighborhood Park Facilities 43900000.57501 $ 0.00'13) PWDF13 0.00 $ 0.00 8 General City Facilities 43800000.57501 $ 231.00 PWDF10 77.28 $ 17,851.68 9 Electrical Facilities 50500000.57501 $ 0.002) PWDF01 0.00 $ 0.00 10 Art in Public Places 43400000.57504 $ 26.00 PWDF11 77.28 $ 2,009.28 11 South Wastewater Trunk Line 53300000.57505 $ 0.001(1) PWDF12 0.00 $ 0.00 12 Non -Potable Water Facilities 56200000.57506 $ 89.00 PWDF14 77.28 $ 6,877.92 Total 1-12: $ 137,094.72 Total: $ 137,094.72 F = Fee per unit B = Number of units T = Total Fee for service category = FxB. due prior to Occupancy Notes: 1. The building is comprised of industrial use based on information provided on the subject building permit. 2. Fees for items 1-3 and 9 billed on Permit #82021-3232 for Lot 1. 3. Neighborhood Park Fee does not apply to this project location. 4. South WastewaterTrunk Line imact fes does 5. Development Impact Miliganon DIM] not apply to this project location. Fee estimate based on information provided with the sub'ecl building parmit and utilizing the 2023 (fee schedule subfectto change. Development Impact Miligalion Fees due shall be based on toe effective schedule at final inspection. DIM Fee Schedule By: Approved: Record #: Date Billed: Date Paid: K:\WP\DEV_SERV\Developments\Commercial-Industrial\Maggio 2427 & 2459\DIM fees\B2021-3233 Maggio 2459 Building B DIM Fees2023 FEE PAYMENT AMORTIZATION SCHEDULE 2459 Maggio Circle (APN 062-410-36) Total Fees: $233,195.46 Interest Rate: 3.07% (2.07% LAIF rate plus 1 %) Term: 7 years LEXHIBIT B ('hark Tntnlc Payment No. Unpaid Balance Semiannual Payment Principal Interest 1 $233,195.46 $18,637.68 $15,058.13 $3,579.55 $18,637.68 2 $218,137.33 1 $18,637.68 $15,289.27 $3,348.41 $18,637.68 3 $202,848.06 $18,637.68 $15,523.96 $3,113.72 $18,637.68 4 $187,324.10 $18,637.68 $15,762.25 $2,875.42 $18,637.68 5 $171,561.84 $18,637.68 $16,004.20 $2,633.47 $18,637.68 6 $155,557.64 $18,637.68 $16,249.87 $2,387.81 $18,637.68 7 $139,307.77 $18,637.68 $16,499.30 $2,138.37 $18,637.68 8 $122,808.47 $18,637.68 $16,752.57 $1,885.11 $18,637.68 9 $106,055.90 $18,637.68 $17,009.72 $1,627.96 $18,637.68 10 $89,046.18 $18,637.68 $17,270.82 $1,366.86 $18,637.68 11 $71,775.36 $18,637.68 $17,535.93 $1,101.75 $18,637.68 12 $54,239.43 $18,637.68 $17,805.10 $832.58 $18,637.68 13 $36,434.33 $18,637.68 $18,078.41 $559.27 $18,637.68 14 $18,355.92 $18,637.68 $18,355.92 $281.76 $18,637.68 $233,195.46 $27,732.04 $260,927.50 RESOLUTION NO. 2023-56 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXECUTE A FEE PAYMENT AGREEMENT FOR 2459 MAGGIO CIRCLE (LIBERTY SELF STORAGE) WHEREAS, Liberty Self Storage, L.P. (Owner) has submitted building permit applications (No. B2021-3232 and No. B2021-3233) to construct two storage buildings on the property known as 2459 Maggio Circle; and WHEREAS, payment of Development Impact Mitigation (DIM) Fees ($233,195.46) is required as part of the building permit conditions; and WHEREAS, on December 15, 2022, the Owner requested to enter into a Fee Payment Agreement with the City to allow payment of the DIM fees in fourteen (14) equal semi-annual installments ($18,637.68) plus interest over a seven-year period and interest would be charged at the current Local Agency Investment Fund (LAIF) rate plus one percent (3.07%); and WHEREAS, staff recommends authorizing the City Manager to execute a Fee Payment Agreement for 2459 Maggio Circle (Liberty Self Storage). NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the City Manager to execute a Fee Payment Agreement for 2459 Maggio Circle (Liberty Self Storage); and BE IT FURTHER RESOLVED, pursuant to Section 6.3q of the City Council Protocol Manual (adopted 11/6/19, Resolution No. 2019-223), the City Attorney is hereby authorized to make minor revisions to the above -referenced document(s) that do not alter the compensation or term, and to make clerical corrections as necessary. Dated: March 15, 2023 I hereby certify that Resolution No. 2023-56 was passed and adopted by the City Council of the City of Lodi in a regular meeting held March 15, 2023 by the following votes: AYES: COUNCIL MEMBERS — Bregman, Craig, Nakanishi, and Mayor Hothi NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None ' �•�L �'J1/1.z�7 PAMELA M. FARRIS Assistant City Clerk 2023-56