Title
Agreement: Park Impact Fee Credit Agreement for Cove Park and Appropriating Funding to Capital Improvement Project (L19005200)
End
FileID
File ID: 2019-00748
Location
Location: District 4
Recommendation:
Recommendation
Adopt a Resolution: 1) approving the Park Impact Fee Credit Agreement with Beazer Homes Holdings, LLC for Cove Park; and 2) authorizing the City Manager or the City Manager’s designee to: a) execute the Agreement; b) increase the revenue budget in the Department of Youth, Parks & Community Enrichment FY2018/19 operating budget by $110,556 (Park Development Impact Fee Fund, Fund 3204) to account for City costs to be paid by the Developer pursuant to the Agreement; c) increase the expense budget by $94,731 (Fund 3204) in the River Oaks (Cove) project (L19005200); and, d) increase the expenditure budget by $15,825 (Fund 3204) in the PA-9 Art in Public Places project (L19920900).
Contact: Dana Mahaffey, Senior Planner (916) 808-2762; Raymond Costantino, Park Planning and Development Services Manager, (916) 808-1941; Department of Youth, Parks, & Community Enrichment
Body
Presenter: None
Attachments:
1-Description/Analysis
2-Location Map
3-Cove Park Master Plan
4-Resolution
5-Exhibit A - Turnkey Agreement
Description/Analysis
Issue Detail: Beazer Homes Holdings, LLC (Developer) is the master developer of The River Oaks/The Cove development project that is currently under construction in South Natomas. The Developer has opted to develop the subdivision’s park as turnkey park in lieu of paying the Park Development Impact Fee. Turnkey parks are developer-funded and constructed under the terms of a Park Development Impact Fee Credit Agreement, which provides the developer with early issuance of Park Development Impact Fee Credits to be applied towards building permits within the subdivision exchange for security to ensure that the developer completes park construction.
The River Oaks/The Cove development project is located north of West El Camino Avenue, between I-80 and Natomas West Drainage Canal. The neighborhood park site at The Cove is a 2.11 gross/1.8 net-acre parcel located within the subdivision. The approved Park Master Plan includes the following amenities: 1) Tot Lot with Shade Structure, 2) Covered Picnic Area, 3) Half-Court Basketball Court, 4) Concrete Walkways, 5) Open Turf Play Area, 6) Site Furnishings, and 7) Low Water Use Planting. The approved park name is Cove Park.
Policy Considerations: The River Oaks/The Cove project was approved on August 30, 2018 and found to be consistent with the City’s General Plan. Providing parks and recreation facilities is also consistent with the City’s strategic plan to enhance livability in Sacramento’s neighborhoods by expanding park, recreation, and trail facilities throughout the city.
Economic Impacts: None
Environmental Considerations: The Planning and Design Commission approved the Addendum to a previously adopted Environmental Impact Report (P01-132) and approved Mitigation Monitoring Program and approved The River Oaks/The Cove project on August 30, 2018. The proposed action to facilitate development of the park was included in the project as approved. The City has completed review of the park as required by the California Environmental Quality Act (CEQA). None of the circumstances identified in CEQA Guidelines Section 15162 (e.g., change in circumstances or new information that identifies a new significant effect) are present. No further CEQA review is required.
Sustainability: The Park Master Plan has been reviewed for consistency with the goals, policies, and targets of the City’s Sustainability Master Plan (SMP) and the Parks and Recreation Sustainability Plan (PRSP). The park will advance the goals, policies, and targets of these plans by reducing greenhouse gas emissions and air pollution through the addition of trees and other plantings and improving health of residents through the access to a diverse mix of wellness activities. Individual products have not been chosen at this level of development, but the design will include products from recycled materials, if available, and shade covering for less heat gain. The park development will include sustainable design using water efficient irrigation design controlled by the centralized irrigation system, low water-use shrubs and groundcover, and use of native tree plantings.
Commission/Committee Action: On March 7, 2019, the Parks and Recreation Commission reviewed and recommended approval of the Cove Park Master Plan. On April 16, 2019, the City Council adopted the Cove Park Master Plan and park naming.
Rationale for Recommendation: The Park Development Impact Fee Credit Agreement with Beazer Homes Holdings, LLC allows the Developer to construct Cove Park in lieu of paying the Park Development Impact Fees.
Financial Considerations: The Park Impact Fee budget for the park was established using FY2018/19 figures and based upon the percentage of the total park dedication requirement. That portion of the park budget that is eligible for PIF credits for the 2.11-acre park, for a total budget of $791,250. Total construction costs for the park is expected to exceed the PIF credit amount. The total City costs to oversee development of this park is $130,556. The Developer has previously paid $20,000 towards the Park Master Plan and staff costs incurred during the master planning service agreement process, which will be credited against the City actual costs incurred. Therefore, the total City costs to be paid by the Developer pursuant to the Agreement is $110,556. The total costs consist of City costs ($94,731) and funds for PA-9 Art in Public Places project ($15,825).
Development of parks creates an ongoing cost for park maintenance and utilities based on the size of the park. The annual maintenance cost for this 1.8-acre park is approximately $15,000 per acre or $27,000. The Cove development project will fund such costs through formation of or annexation into a parks maintenance district with the assessments paid by the homeowners.
Local Business Enterprise (LBE): The Developer is funding the construction of the park; therefore, the City’s LBE requirements do not apply.