Blogging Bayport Alameda

July 2, 2019

It’s payback time

Filed under: Alameda — Lauren Do @ 6:02 am

Further fallout from the Boatworks litigation the City Council needs loan some money from the General Fund to the Parks Development Impact Fee since the fees from Admiral Cove needed to be paid back in anticipation of that lawsuit.

From the staff report:

In June 2017, the City Council approved two interfund loans to the Parks Development Impact Fees Fund. One loan was for $900,000 funded by the Transportation Development Impact Fee Fund and used to finance construction of the Cross Alameda Trail – Jean Sweeney Improvement project. The second loan for $1.4 million was funded equally by the General Fund and the FISC Fund and used to finance the Estuary Park Improvements project.

Both of the loans were to be repaid with future DIF revenue collected. In September 2018, the developer for the Admiral Cove project paid Parks DIF, which was used to fully repay the $900,000 loan from the Transportation DIF and make a partial payment on the second interfund loan. Finance and Parks staff were not aware that the developer made the payment of the fees under the protest.

On June 4, 2019, the City Council approved a settlement agreement with CP VI Admirals Cove, LLC to refund $1,473,300 of Parks DIF. Because money originally collected has been used to repay prior loans, there is no sufficient cash in the Parks DIF to refund the fees.

Staff recommends the City Council approve the Promissory Note (Exhibit 1) necessary to authorize the interfund loan and to allow Finance staff to record a loan in the City’s financial system as of June 30, 2018. The loan to be made from the General Fund is in the amount of up to $1.2 million to be repaid over a ten-year period. The loan bears zero interest and there is no pre-payment penalty. Staff is evaluating other eligible sources to cover the cost paid for the projects originally funded by the above mentioned interfund loans to free up cash to refund the DIF.

Awkward.

But the City Council is now going to re-examine the parks impact fee.  From a different staff report:

Under the revised fee structure, a developer of a single family home will pay a total fee per dwelling unit of $15,375 (which reflects a  reduced park fee of  $9,636) and a developer of a multifamily home will pay a total fee per dwelling unit of $11,555 (which reflects a reduced park fee of $7,040).

There’s also a consideration of a park fee credit if the developer provides park space above the amount required:

The recommended credit allows for a park fee credit for projects that provide public park land and facilities accessible to the public on-site in excess of the on-site open space required for the project by the Alameda Municipal Code (AMC). The recommended fee credit recognizes that if a project provides its on-site open space requirements as required by the AMC and then provides additional publicly accessible park space, then that additional publicly accessible park land reduces the need for the City to provide the additional public park land that the Ordinance would fund. The amount of the credit would be determined by subtracting the cost to the developer to provide the additional park land acreage from the amount of the fee.

 

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