Placement: Resolutions
Action Requested: Motion / Vote
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Resolution 24-R12, 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 Veranda St. Lucie Lands, LLC.
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Submitted By: Mary Savage-Dunham, Planning and 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 the remaining balance of the credit is as of a defined date.
Presentation Information: Staff is not giving a presentation.
Staff Recommendation: Move that the Council 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 Veranda St. Lucie Lands, 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 Veranda St. Lucie Lands, LLC.
2.Move that the Council provide direction to staff and table to a future date
Background: True Up Agreements are not intended to modify or replace any existing agreements. They are required to ensure moving forward under the Mobility Fee Ordinance that all parties agree to the 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. 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. The True Up Agreement in no way modifies the administration or implementation of Road Impact Fees or Mobility Fees consistent with legal and statutory requirements and general accounting practices.
Veranda St. Lucie Landing Holdings, LLC provided documentation to the City that identified a Road Impact Fee credit of $10,590,540 based on that certain Assignment and Assumption of Road Impact Fee Credit Agreements and Assignment of Road Impact Fee Credits and clarified by Agreement Regarding Assignment of Road Impact Fee Credits dated January 24, 2024.
Veranda St. Lucie Landing Holdings, LLC has submitted all required documentation. The remaining credit balance for Veranda St. Lucie Landing Holdings, LLC is $2,618,415.57 as of October 23rd, 2023. The documentation accurately reflects the Road Impact Fee Credit granted, the amounts assigned, and the remaining balance. This review in no way modifies any existing agreement nor does it any manner modify or override any policy of the City or the adopted Mobility Fee Ordinance. The documentation provided is consistent with the requirements of the adopted Mobility Fee Ordinance.
Notably, the credits assigned to Veranda St. Lucie Landing Holdings, LLC were rooted in County Road Credit Agreement and made usable to satisfy city road impact fees by virtue of the Third Amendment to Development Agreement with the City. This remaining credit balance can be used to satisfy either City fees or County fees. Consequently, the True-Up Agreement provides for Veranda St. Lucie Holdings, LLC to provide periodic documentation on use of such fees.
Issues/Analysis: Veranda St. Lucie Landing Holdings, LLC has entered into separate assignment agreements with five developers/parties (Divosta, Lennar, Waypoint, Taylor Morrison, and KH Mosaic). Each of these development interests will be required to enter into their own true-up agreements with the City of Port St. Lucie.
Financial Information: n/a
Special Consideration: n/a
Location of Project: Veranda St. Lucie Lands, LLC.
Attachments:
1. Resolution 24-R,
2. Exhibit “A” to Resolution -- True Up Agreement and Exhibits
3. NUE Review Memo
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: legal intake 24040-02
Legal Sufficiency Review:
Reviewed by Elizabeth L. Hertz, Senior Deputy City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, Interim City Attorney.