Placement: Resolutions
Action Requested: Motion / Vote
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Resolution 23-R67, 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 Riverland/Kennedy II, 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 is the remaining balance of the credit as of a defined date.
Presentation Information: Staff is not giving 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 Riverland/Kennedy II, 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 Riverland/Kennedy II, 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. Riverland / Kennedy provided documentation to the City that identified a City Road Impact Fee credit of $6,419,226.27 based on the Third Amendment to the SW Annexation Agreement. This credit amount was verified by the City of Port St. Lucie’s Finance Department on October 23rd, 2012. As of March 31st, 2023, Riverland / Kennedy has utilized Road Impact Fee Credits for 2,400 permits for a total credit utilization of $2,805,600. The Credit utilization, even after adoption of the Mobility Fee, has been based on the City’s 2013 Road Impact Fee Schedule per adopted agreements between the City and Riverland / Kennedy.
Issues/Analysis: As of March 31st, 2023, Riverland / Kennedy II, LLC had an existing City Road Impact Fee credit balance of $3,613,626.27. It is recommended that the City establish a Credit Account for Riverland / Kennedy with a balance of $3,613,626.27. This amount does not reflect any utilization of City Road Impact Fee credit on or after April 1st, 2023. Thus, the credit amount will need to be updated accordingly to account for any credit utilization as of April 1st, 2023. As Riverland / Kennedy continues to submit building permit applications, the credit balance will continue to be debited per the 2013 City Road Impact Fee Schedule 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: Riverland/Kennedy II, LLC.
Attachments:
1. Resolution 23-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: 9841
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.