AgdaPkt 2008-07-28 Clsd and Reg - Laserfiche WebLink

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7A Page 1 REPORT , . To the Honorable ~ayor~ncJ . Ctty ColJllc:il F..Qm ttu~ CL .,Ma"~' ,.. July 28, 2008 SUBJECT Amendment of the General Improvement District 1-64 Development Agreement, and amendment of the General Improvement District 1-64 budget as included in the proposed Capital Improvement Program budget for Fiscal Years 200812009 and 2009/2010. RECOMMENDATION 1. Approve and authorize, by motion, proposed amendment to the General Improvement District 1-64 budget as included in the Capital Improvement Program budget for Fiscal Years 200812009 and 200912010 2. Introduce an ordinance to amend the terms of the General Improvement District 1-64 Development Agreement between Keech Properties. LLC, and the City to a. exclude development in Area H from the terms of the Agreement, and b. update the General Improvement District 1-64 Facility Fee for Fiscal Years 2007/2008,2008/2009, and 2009/2010 BACKGROUND General The General Improvement District 1-64 ("GID 1-64") budget is contained in the Capital Improvement Program ("CIP"). The terms of the GID 1-64 Development Agreement, between Keech Properties, LLC, and the City, govern the GID 1-64 budget and influence the CIP budget. Please see attached report -"The GID 1-64" for a more detailed discussion of the Development Agreement and the history of the GID 1-64. GID 1-64 The GID 1-64 was formed to enable the development of Redwood Shores. During periods of extensive development activity, developers pay for the reclamation and infrastructure required for new development in Redwood Shores, receive reimbursement from an existing and solvent Facilities Fees fund, and then contribute to that same Facility Fees fund when application for Building Permits are made. Both the developer and the City benefit during ongoing development as the GID 1-64 "pays it forward". Funds replenished via the Facility Fee become available to reimburse subsequent waves of development. GID 1-64 - Exclusion of Area H Area H - "The Preserve" is the last major Redwood Shores development. As result. the GID 1-64 nears the end of its useful life. The reimbursement mechanism that previously accommodated ongoing development is inapplicable. As well, the developer's anticipated cost of improvements to Area H are significantly increased by the requirement to provide a levee system. The developer's anticipated costs well exceed projections of GID 1-64 funds available, including any facilities fees that might be 'generated by Area H development, to reimburse the developer. If 'subject to the '