25E - AGMT - DEFER PAYMENT 888 N. MAIN

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Eastcom Corporation Agreement November 20, 2018 Page 3 incentivize and encourage the adaptive reuse of eligible outdated commercial buildings through regulatory reliefs and reducing the high cost of retrofitting of these outdated buildings to meet current design, engineering, environmental, and procedural standards. In addition to the high costs associated with retrofitting, adaptive reuse projects also have a higher degree of unanticipated design and engineering challenges and delays because of the unknown preexisting conditions of the building can only be revealed once the actual work is underway. The collection of the RDF fee for a new residential development is to fund planned acquisition and development of parks and open space within the City to mitigate the impacts that new developments will have on the demand for parks and open space within the City. While the request will defer the collection of the RDF fee to a later time in the development process, it will not waive or prevent the City from collecting the fee through protections and securities provided to the City under the agreement. Furthermore, fee will be paid prior to the actual impact as no residents will be allow to occupy the building on the Property prior to payment. The deferral will not negatively impact the fiscal benefits to the City as the proposed deferral will accrue customary interest similarly earned under the City's established investment policies. The deferral will not establish an unintended precedent as this request would promote and demonstrate the ability to economically retrofit and convert an existing outdated 10 -story commercial office building on property that is located within the Adaptive Reuse Incentive Area and is an Eligible Building, as defined in the Adaptive Reuse Ordinance. STRATEGIC PLAN ALINGMENT Approval of this item supports the City's efforts to meet Goal No. 5 Community Health, Livability, Engagement and Sustainability, Objective No. 3 (facilitate diverse housing opportunities and support efforts to preserve and improve livability in Santa Ana neighborhoods). FISCAL IMPACT The total estimated fee to be deferred for the Project is estimated not to exceed $501,888.56 and is as detailed in the table below. Parks Residential Acquisition Fee FY18-19 Type Qty. Fee per Unit Fees Due Studio 86 $3,331.28 $286,490.08 1Bd 54 $3,331.28 $179,889.12 213d 8 $4,438.67 $35,509.36 TOTAL 148 $501,888.56 The final fee amount to be deferred will be determined at the time of permit issuance. The proposed deferral is for a twelve (12) month period or prior to issuance of the Occupancy Permit, whichever is first. 25E-3