GRESHAM CITY COUNCIL AGENDA ITEM TYPE: DECISION

Transcription

1 GRESHAM CITY COUNCIL AGENDA ITEM TYPE: DECISION Resolution No. 3254: Hilltop View Estates at Persimmon Water System Development Charge Credit Transfer Meeting Date: July 19, 2016 Agenda Item Number: E-3 Service Area: Environmental Services Service Area Manager: Steve Fancher REQUESTED COUNCIL ACTION Move to approve Resolution No to allow the transfer of $27, in Water System Development Charge credits from Hilltop View Estates at Persimmon subdivision to 3359 SE Powell Valley Road, which is approved for development of a 24-unit complex called Sierra Point. PUBLIC PURPOSE AND COMMUNITY OUTCOME Sheldon Development, Incorporated (Developer) has built public infrastructure which would have otherwise been built through a Capital Improvement Project (CIP) utilizing the Water System Development Charge (SDC) fund. The Gresham Revised Code allows Council to transfer SDC credits when a developer generates more than they can use for the original project. SDC credit transfer is a mechanism for the developer to recover more costs when building infrastructure that will serve the Gresham community. BACKGROUND As part of the Hilltop subdivision s public infrastructure needs, the Developer built 2,356 lineal feet of 16-inch water line in SE Butler Road from the terminus of where the water line existed in SE Butler to the project site. This line was listed in Resolution No as a water SDC fund-eligible project and is listed in the current CIP as SW4001. When a developer builds a project listed on the SDC project list, they receive SDC credit equal to the project cost listed in the applicable SDC resolution. In this case, the project generated $430, in water SDC credits. The 31-lot Hilltop subdivision will generate $128,743 in water SDCs, $106,147 of which were for improvements to the existing water infrastructure and $22,596 for reimbursement of existing infrastructure. SDC credits can only be used for the improvement portion of the SDC charges, therefore the remaining SDC credits on the Hilltop Subdivision are $324, Pursuant to Gresham Revised Code , SDC credits run with the land and may not be transferred to other properties, except as authorized by Council resolution. Sheldon Development, Incorporated is also in the process of finalizing the permits to construct a 24- unit apartment complex called Sierra Point located at 3359 SE Powell Valley Road. The Developer has requested that City Council allow him to utilize $27, of the remaining water SDC credits at Hilltop to cover the improvement portion of their water SDC at Sierra Point. If approved, Hilltop will have $297, unused SDC credits remaining. These credits will expire after 10 years if not otherwise transferred. In addition to being the developer, Sheldon Development, Incorporated owns both development sites. 1

2 RECOMMENDATION AND ALTERNATIVES Recommendation: Staff recommends that the City Council approve Resolution No to allow the transfer of $27, water SDC credits from Hilltop View Estates at Persimmon subdivision to 3359 SE Powell Valley Road. Alternatives: 1. Adopt the resolutions with deletions, additions or modifications. 2. Refer the proposal back to staff for additional consideration. This would result in a delay in granting the transfer. 3. Reverse the recommendations of staff and reject the Developer s request. This would mean the SDC credits would remain with Hilltop where they could not be utilized by the developer for the Sierra Point development. BUDGET / FINANCIAL IMPACT The Developer has built $430, in SDC creditable infrastructure that the City had planned to build through a capital improvement project using SDC funds. After the Hilltop Subdivision is built out, the site would have $324, remaining in their water SDC credit escrow account. The Developer is requesting to transfer $27, from that escrow account to pay for the improvement portion of their outstanding water SDC so that they do not have to pay the City out of pocket. PUBLIC INVOLVEMENT All property owners within 300 feet of the Hilltop and Sierra Point developments were notified of the proposed developments as part of the land use permit process. NEXT STEPS If approved, staff will transfer $27, from Hilltop s Water SDC escrow account to pay the outstanding water improvement SDC for Sierra Estates (Building Permit ). ATTACHMENTS A. Resolution No B. Request for Water SDC Credit Transfer from Carey Sheldon dated May 1, 2016 C. Hilltop Estates Subdivision Plat D. Sierra Point Site Plan FROM: Steve Fancher, Department of Environmental Services Director Ken Koblitz, Development Engineering Manager Michelle Kimble, Development Engineering Technician 2

3 REVIEWED THROUGH: Sharron Monohon, Budget & Financial Planning Director Bernard Seeger, Finance & Management Services Director David R. Ris, City Attorney Office of Governance and Management FOR MORE INFORMATION Staff Contact: Michelle Kimble Telephone: Staff Website: 3

4 RESOLUTION NO A RESOLUTION TRANSFERRING WATER SYSTEM DEVELOPMENT CHARGE CREDITS FROM HILLTOP VIEW ESTATES AT PERSIMMON SUBDIVISION TO SIERRA POINT APARTMENTS The City of Gresham Finds: A. The City collects system development charges (SDCs) from development to fund the construction of public infrastructure. Developers required to construct eligible public infrastructure receive SDC credits which reduce the amount of the SDCs the development is required to pay to the City of Gresham. B. The Hilltop View Estates at Persimmon (Hilltop) subdivision built public water infrastructure eligible for SDC credits The water SDC credits allocated to the Hilltop Subdivision exceed the amount of the water SDC required to be paid. C. Gresham Revised Code section states that water system development charge credits shall run with the land and may not be transferred to other properties, except as authorized by Council Resolution. D. Sheldon Development Incorporated, the developer and owner of the Hilltop Subdivision, has requested transfer of $27, of those excess credits to cover the improvement portion of the water system development charges to 3359 SE Powell Valley Road (1S3E11DD 02400), a property they also own and are developing as the 24-unit Sierra Point Apartments. THE CITY OF GRESHAM RESOLVES: $27, in water SDC credits allocated to Hilltop Subdivision are hereby transferred for use at 3359 SE Powell Valley Road (1S3E11DD 02400), which is currently being developed as the 24-unit Sierra Point Apartments. All remaining credits will remain with the Hilltop Subdivision until they are used by the Hilltop Subdivision, transferred by future Council resolution, or expire. Yes: No: Absent: Abstain: Passed by the Gresham City Council and effective on. Erik Kvarsten City Manager Shane T. Bemis Mayor Approved as to Form: David R. Ris City Attorney 1 RESOLUTION NO Y:\CAO\Resolutions\RES3254 6/21/16\PT

5 Attachment B

6 Attachment C SE 35TH TERRACE SE ATHERTON AVENUE SE MYRTLEWOOD LANE SE HOGAN RD Al l Su r N Co v e u n r y o s t y Est S Feet SE 38TH COURT SE BUTLER RD

7 Attachment D BP /13/16