Laserfiche WebLink
Agreements for the Development of the Crossroads at Washington <br />June 21, 2022 <br />Page 8 <br />2 <br />7 <br />6 <br />6 <br />Recordation of Agreement and Lien against Property: The Agreement will be <br />recorded in the Official Records of the County of Orange and the Agreement shall <br />contractually bind the owner to pay the development impact fees and shall <br />constitute a lien against the property. <br />The intended goal of the collection of development impact fees at the time of building <br />permit issuance is to ensure that the payment of the fees is completed prior to the vesting <br />of development rights by a project developer. Development impact fees for development <br />projects include customary fees to defray costs for the City to provide development <br />services under the permit, outside agency fees as applicable, and established <br />development impact fees. While deferral of collection of development impact fees is not <br />a routine practice, the Developer submitted their request under California Government <br />Code Section 66007 and the City is required to consider their request. <br />The collection of the development impact fees for a new residential development is to <br />generally fund planned acquisition and development of parks and open space within the <br />City to mitigate the impacts that new developments will have on the demand for parks <br />and open space within the City. While the request will defer the collection of the <br />development impact fees to a later time in the development process, it will not waive or <br />prevent the City from collecting the fees through protections and securities provided to <br />the City under the agreement. Furthermore, the fees will be paid prior to the actual <br />impact, as no residents will be allowed to occupy the Project until payment is received by <br />the City. <br />The Development Impact Fee Deferral Agreement has been pre-signed by Related to <br />acknowledge their acceptance of the terms. <br />Award of up to Eight Additional Project-Based Vouchers <br />On August 17, 2021, the City Council approved an award of up to seven project-based <br />vouchers and authorized the Executive Director of the Housing Authority to execute an <br />Agreement to enter into a Project-Based Vouchers Housing Assistance Payments <br />Contract. At the time of that approval, staff reported to the City Council that the <br />Developer’s costs had increased since their initial award in July 2019. Since that date, <br />the Developer’s costs have increased further. On May 6, 2022, Keyser Marston <br />Associates (“KMA”) reviewed the Developer’s pro forma (as of April 22, 2022) and <br />determined that the Project has an approximately $1.0 million additional financial gap due <br />to an increase in the interest rate on the permanent loan and increase in construction <br />costs. Given the extreme volatility within the construction industry at this time, the cost <br />estimates appear reasonable, and are similar to other affordable housing projects that <br />KMA has recently reviewed. <br />Therefore, staff are recommending approval of up to eight additional project-based <br />vouchers for the development of the Project to pay for an unanticipated increase in <br />development costs. This will bring the Housing Authority’s total contribution to the Project