Title:
Title
Allocation of Sewer Credits to ACEF- Martin Folsom, LLC for the 65 East Student Housing Project at 6620 Folsom Boulevard
End
FileID
File ID: 2019-01712
Location
Location: 6620 Folsom Boulevard, District 3
Recommendation:
Recommendation
Adopt a Resolution allocating 127 Economic Development Treatment Capacity Bank Credits to ACEF- Martin Folsom, LLC for the 65 East Student Housing Project at 6620 Folsom Boulevard.
Contact: Leslie Fritzsche, Economic Investment Manager, 916 808-5450, Office of Innovation and Economic Development
Body
Presenter: None
Attachments:
1-Description/Analysis
2-Resolution
Description/Analysis
Issue Detail: ACEF- Martin Folsom, LLC (a corporation formed by Symphony Development and the Martin Group) has applied for 127 Economic Development Treatment Capacity Bank Credits (“Credits”) for the 65 East Student Housing Project at 6620 Folsom Boulevard (“Project”). The Project will bring 223 units of needed student housing in two buildings, a six-story mixed-use building and a parking garage to the 65th Street area. Currently the site contains both a parking area and a vacant commercial building.
Policy Considerations: The City’s Office of Innovation and Economic Development Strategy goals include supporting physical development and investment in the city with efforts to create jobs, improve quality of life and provide the necessary infrastructure to attract development and businesses. With the City’s 2035 General Plan as part of the economic development goals, one of the commitments is to promote and support such projects to make Sacramento the most livable city in America as well as to support and encourage effort to implement key development projects that meet the City’s revitalization and redevelopment goals.
Economic Impacts: This residential new construction project is expected to create approximately 338 total jobs (195 jobs directly and 143 jobs through indirect and induced activities) and result in approximately $55.36 in total economic output ($35.83 million direct output and another $19.53 million of output through indirect and induced activities).
The indicated economic impacts are estimates calculated using a calculation tool developed by the Center for Strategic Economic Research (CSER). CSER utilized the IMPLAN input-output model (2009 coefficients) to quantify the economic impacts of a hypothetical $1 million of spending in various construction categories within the City of Sacramento in an average one-year period. Actual impacts could differ significantly from the estimates and neither the City of Sacramento nor CSER shall be held responsible for consequences resulting from such differences.
Environmental Considerations: The Project was subject to environmental review during the approval of its entitlements. The allocation of sewer credits implements the project and no CEQA review is required.
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: The Sacramento Regional County Sanitation District (“SRCSD”) established an Economic Development Treatment Capacity Bank (the “Bank”) in June 2000. Creation of the Bank was made possible by SRCSD’s purchase of unused sewer capacity from industrial users. The Bank allocated the Credits to SRCSD’s member agencies, which in turn allocate the Credits to new development projects in accordance with SRCSD’s guidelines and their own guidelines. The City received a total of 8,993.10 credits.
Since 2001, the City has participated in the Bank under a series of agreements, the first of which was City Agreement No. 2001-054, a memorandum of understanding with SRCSD. As required by these agreements, the City Council approved guidelines for allocating Credits by the adoption of Resolution 2006-456. This application for 127 Credits, meets the Council approved guidelines for allocating Credits, because the 65 Street East project qualifies as “infill” and “residential” development under the City’s 2035 General Plan. This long-awaited project includes 223 units for students at 65th Street and Folsom Boulevard. The Project is scheduled to break ground in spring 2020 and be completed by summer 2022.
Financial Considerations: None
Local Business Enterprise (LBE): Not applicable.