Placement: Resolutions
Action Requested: Motion / Vote
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Resolution 23-R66, Authorizing the City Manager or His Designee to Enter into and Execute a True-Up Agreement for Road Impact Fee Credits between the City of Port St. Lucie and Verano Development, LLC.
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Submitted By: Mary Savage Dunham, Planning & Zoning
Strategic Plan Link: The City's Goal of high-quality infrastructure and facilities.
Executive Summary (General Business): The City’s Mobility Fee Ordinance agreed to honor existing agreements approved by the City that granted City Road Impact Fee Credits. As part of honoring these existing agreements, the Mobility Fee Ordinance included a requirement for a True Up Agreement. The intent of the True Up Agreement is to clearly identify the Road Impact Fee Credit granted by the City, the source of the credit, how much of the credit has been utilized towards City Road Impact Fee assessments, and what is the remaining balance of the credit as of a defined date.
Presentation Information: Staff will not make a presentation.
Staff Recommendation: Move that the Council Authorize the City Manager or his Designee to Enter into and Execute a True-Up Agreement for Road Impact Fee Credits between the City of Port St. Lucie and Verano Development, LLC.
Alternate Recommendations:
1. Move that the Council amend the recommendation and Authorize the City Manager or his Designee to Enter into and Execute a True-Up Agreement for Road Impact Fee Credits between the City of Port St. Lucie and Verano Development, LLC.
2. Move that the Council provide direction to staff, extend the timeframe for completion of this item and table to a future date.
Background: True Up Agreements are not intended to modify or replace any existing agreement. They are required to ensure moving forward under the Mobility Fee Ordinance that all parties agree to the prior credit granted, amount used to address assessments and the remaining balance. The remaining balance, as of a defined date, will be used to track the continued use of City Road Impact Fee credits to satisfy assessed City Road Impact Fees (i.e., fully offset mobility fees otherwise due under the Mobility Fee Ordinance based upon the 2013 City road impact fee schedule). Moving forward, any use of the credit, any adjustments to previously issued permits where credits were used, any reimbursement, or any underpayment will be adjusted based on the remaining balance. It is recognized that during the normal permit review process, sometimes there are adjustments that are required to address modifications to permits, expiration of permits, or utilization of credits or requirement for payment that were made in error. Verano Development, LLC provided documentation to the City that identified a City Road Impact Fee credit of $21,804,608 based on a City Road Credit Agreement dated September 5th, 2013.
Issues/Analysis: As of February 28th, 2023, Verano Development, LLC has utilized Road Impact Fee Credits for 2,235 permits for a total credit utilization of $3,168,746. The Credit utilization has been based on the City’s 2013 Road Impact Fee Schedule and for some permits, the City’s Mobility Fee schedule. As of February 28th, 2023, Verano Development, LLC had an existing City Road Impact Fee credit balance of $18,635,862. It is recommended that the City establish a Credit Account for Verano Development, LLC with a balance of $18,635,862. This amount does not reflect any utilization of City Road Impact Fee Credit or the request for reimbursement of Credit on or after March 1st, 2023. Thus, the Credit amount will need to be updated accordingly, with a beginning balance of $18,635,862 to account for any Credit utilization or reimbursement as of March 1st, 2023. As Verano continues to submit building permit applications, the Credit balance will continue to be debited per the 2013 City Road Impact Fee Schedule. Both Verano and any development interest it has properly assigned Credit to will draw down from the Credit pool of $18,635,862 until the Credit balance is depleted per the True Up Agreement terms.
Financial Information: n/a
Special Consideration: The deadline for completion of True Up Agreements is July 1, 2023, so if the Council does not act on this item, an extension of the deadline may be required.
Location of Project: Verano Development, LLC.
Attachments:
1. Resolution
2. Exhibit “A” to Resolution - True Up Agreement w/ Exhibits
3. NUE Review Letter
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: 9757
Legal Sufficiency Review:
Reviewed by Elizabeth L. Hertz, Senior Deputy City Attorney. Approved as to Legal form and sufficiency by James D. Stokes, City Attorney.