HomeMy WebLinkAboutAGENDA REPORT 1999 0303 CC REG ITEM 10DTO:
FROM:
DATE:
SUBJECT:
MOORPARK CITY COUNCIL
AGENDA REPORT
Honorable City Council
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ITEM 10' 1)'
CITY OF MOORPARK, CALXFO%NIA
City Council Meeting
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John E. Nowak, Assistant City Manager dzr�
22 February 1999 (Council Meeting of 03- 03 -99)
Consider a Deferral of Certain Development Fees
for the Westgate Plaza Development Project.
BACKGROUND: Dr. DeeWayne Jones is proposing a commercial
development on Los Angeles Avenue west of the Mission Bell
Plaza referred to as Westgate Plaza. He has requested
financial assistance from the City of Moorpark and the
Moorpark Redevelopment Agency. A combination of deferral
of certain development fees and a short -term loan are
presented for the Council's and Agency's consideration.
DISCUSSION: Dr. DeeWayne Jones is proposing to develop the
Westgate Plaza on Los Angeles Avenue. It is an
approximately 57,0000 square foot commercial development
containing a health club, offices, two restaurants and a
medical urgent care facility. Dr. Jones submitted a
request for the City of Moorpark to provide financial
assistance for the project. The Council's Budget and
Finance Committee has reviewed the request and is proposing
for consideration that a combination of deferral of
development fees and a short -term loan be used. The fee
deferral is presented for the Council's consideration with
the loan being presented to the Redevelopment Agency Board
for consideration.
Certain development fees are required to be paid by a
developer at the time permits are pulled. On some
occasions the Council has agreed to defer the payment of
Deferral of Development Fees
Meeting of 03 March 1999
Page 02
these fees to a time later than when permits were pulled,
as was the case for the Mission Bell Plaza project. The
following City fees have been identified for the Westgate
Plaza project with the estimated amount of those fees.
LA Avenue Area of Contribution $ 15,520
Landscape Fee $ 2,800
Intersection Improvement Fee $ 12,350 (a)
Park System Contribution $ 14,000
Art and Public Places $ 5,600
Police Facility Fee $ 10,645
Library Fee $ 5,000
Traffic Management System Fund $100,000 (b)
(a) This amount is an estimate based on % of the Mission
Bell Plaza fee.
(b) This amount is a maximum with the actual amount based
on the revised formula being prepared by the County
Air Quality Board.
These fees total $165,915
In addition the project is subject to payment of its share
of Assessment District 92 -1. Principal and interest has
been accruing on this cost and as of January 1999 a total
of $263,082 was owed.
If the City Council entertains the concept of deferring
these fees, the following conditions are proposed.
(1) The deferred development fees carry an interest rate
of eight percent (8 %) simple interest with interest
payments due on a semi - annual basis. (This is the
same interest rate as charged on the Mission Bell
Plaza project.) If there were a default on interest
payments, the City would be able to call its secured
interest.
(2) The principal amount be due and payable in full on the
earlier of the developer obtaining permanent financing
on the project or two (2) years from the date the
first building permit is issued.
00604,9
Deferral of Development Fees
Meeting of 03 March 1999
Page 03
(3) The Assessment District fee continue to accrue
interest at the LAIF rate pursuant to the current
agreement and that the full amount of principal and
accrued interest be due and payable on the earlier of
the developer obtaining permanent financing on the
project or two (2) years from the date the first
building permit is issued.
(4) Prior to execution of any agreement by the City some
form of assurance be provided that permanent financing
will be available for the development which includes
payment of the deferred fees.
(5) The City obtains some secure interest in the property.
(6) The Redevelopment Agency guarantees the payment of the
development fees to the City.
If the City Council concurs with this action, staff will
prepare the appropriate agreement documents for
presentation and action by the Council. Staff would also
recommend the developer be required to pay all City out -of-
pocket expenses for the preparation and recordation of the
required documents.
RECOMMENDATION: Direct staff as deemed appropriate.
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