COUNCIL AGENDA ITEM NO. 11
Meeting Date: February 8, 2005
Subject/Title: Authorize the Agricultural Land Mitigation Fees at the Sunset
Industrial Complex be waived in accordance with the Agricultural Land
Prepared by: Gina Rozenski, Redevelopment Manager
Submitted by: Howard Sword, Community Development Director
Authorize the Agricultural Land Mitigation Fees at the Sunset Industrial
Complex be waived in accordance with the Agricultural Land Mitigation
City Council authorized the purchase of approximately 40 acres of property
located at the northeast corner of Tresch and Sunset Roads.
City Council authorized various consultant contracts to master-plan and
prepare environmental documents for approximately 132 acres of city owned
land northeast of Tresch and Sunset Roads to include a 49.2 acre Wastewater
Treatment Plant, 2.7 acre Solid Waste Plant, 37.7 Sports Park, 13.3 acre
Corporation Yard and a 28.4 acre Industrial Complex.
On March 9, 2004, the City Council received, as an informational item, the
Final Map for Subdivision 8588 for Sunset Industrial Complex.
On April 13, 2004, the City Council approved the form of Purchase
Agreements and Grant Deeds for the first phase of 12 sales, and authorized
the City Manager to execute documents necessary to close the transactions.
On June 7, 2004, the second Final Map for Subdivision 8842 Sunset
Industrial Complex was recorded.
From April 2004 to September 2004, eleven escrows closed.
On September 14, 2004, the City Council approved the configuration for
subdividing the northerly portion of Sunset Industrial Complex, and directed
staff to draft three Purchase Agreements.
On September 28, 2004, the City Council approved the sale of Lot 4.
The City purchased a 40-acre parcel off Sunset Road in 1999 for the
expansion of the adjacent sports complex by 16± acres, and to implement an
economic development strategy by zoning the remaining acres for industrial
land use in the 2001 General Plan update. The City’s intention was to
execute an economic strategy by selling parcels within the Sunset Industrial
Complex to end-users. The sale revenues to the City will be then used to
reimburse the City for its cost of the land, planning, engineering and a
portion of the infrastructure improvements. The sales revenues will also
reimburse the Redevelopment Agency for paying a portion of the cost of
improvements. Therefore, both the City and the Agency expect to receive full
reimbursement for their out-of-pocket costs associated with developing the
Sunset Industrial Complex as parcels are sold. Any excess receipts from the
proceeds of the sales beyond the actual costs shall be shared between the
City and Agency in amounts equitable to their contributions.
The original conceptual plan for Sunset Industrial Complex included nine
large parcels for industrial end-users. Responses to our Summer 2003 sales
offering indicated a need for more industrial-zoned property than what is
available at Sunset Industrial Complex. To accommodate the majority of the
requests, the original site plan was revised to include cul-de-sac
configurations. This provided the City an opportunity to accommodate as many
buyers as possible within the Sunset Industrial Complex, while also
configuring the industrial complex in a suitable geometry for truck traffic
patterns and efficient site development. It is anticipated that over 500
jobs will be created at Sunset Industrial Complex.
The City’s Agricultural Land Mitigation Ordinance requires an in-lieu fee be
paid to offset the loss of farmland resources over one acre in size to any
non-agricultural use. The agricultural mitigation fee for Sunset Industrial
Complex is $149,436. Since the applicant for Sunset Industrial Complex is
the City, the City is the responsible party to pay this fee.
The Ag Land Mitigation Ordinance provides:
“For non-residential projects that the city council determines are important
for economic development purposes, some or all of the mitigation
requirements of this chapter (the in-lieu fee), may be waived.”
The Sunset Industrial Complex was an economic development strategy
envisioned by the City and Agency because developers did not want to take
the risk of developing an industrial subdivision where there is no market
history for such a venture. Also, by creating an industrial park, relocation
of incompatible industrial land uses from Brentwood Boulevard could be
accomplished. This relocation will act as a catalyst for revitalization of
the Brentwood Boulevard corridor, as well as save existing industrial jobs.
Other industrial businesses that enjoyed operating for many years within the
City were being squeezed out by the new homes and complaints. Revenues and
jobs were lost to the County and surrounding cities. Retention of these
businesses is important to the City, and creation of an industrial park
within the City’s jurisdiction encouraged the return of light and medium
industrial businesses that left the City over the past several years. The
Sunset Industrial Complex has been successful in achieving its goals.
Property values will increase by over $23M and, most importantly, the
project will create more than 500 jobs.
Staff recommends the City Council find the job creation at Sunset Industrial
Complex, the return of businesses that previously left the City and the
voluntary relocation of industrial users from Brentwood Boulevard meets the
definition of “economic development purposes” and therefore warrants the
authorization by the City Council to waive the agricultural mitigation fee
as allowed by the Ordinance.
Eighty percent of agricultural mitigation fees are deposited into a trust
account used solely for farmland mitigation purposes. Twenty percent of the
fees are used for administrative costs. The waiver of agricultural
mitigation fees will save the Sunset Industrial Complex, CIP Project No.
336-3128, $149,436 (28 acres x $5773/acre).
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD AUTHORIZING THE
AGRICULTURAL LAND MITIGATION FEES BE WAIVED IN ACCORDANCE WITH THE
AGRICULTURAL LAND MITIGATION ORDINANCE FOR THE SUNSET INDUSTRIAL COMPLEX,
CIP PROJECT NO. 336-3128
WHEREAS, on January 12, 1999, City Council authorized the purchase of
approximately 40 acres of property located at the northeast corner of Tresch
and Sunset Roads; and
WHEREAS, on February 8, 2000, City Council authorized the master-plan and
environmental documents for approximately 132 acres of city-owned land
northeast of Tresch and Sunset Roads to include a Wastewater Treatment Plan,
Solid Waste Plan, Sports Park, Corporation yard and Industrial Complex; and
WHEREAS, on July 23, 2002, the City Council adopted Ordinance No. 710
approving the PD Zoning for Sunset Industrial Complex; and
WHEREAS, on November 26, 2002, the City Council approved a sales strategy
for properly located at the Sunset Industrial Complex and adopted criteria
for the selection of successful candidates to purchase the subject property;
WHEREAS, sales offerings, following Council-approved guidelines, to purchase
property in the Complex were distributed to interested buyers in late Summer
2003. Responses to the sales offerings indicated a need for more
industrial-zoned property than what is available at Sunset Industrial
Complex. Over 27 acres were requested, while Sunset Industrial had only 21.7
original acres to sell; and
WHEREAS, on October 28, 2003, the City Council approved the Sunset
Industrial Complex sales strategy criteria ranking and approved the
preliminary lot layout which included the cul-de-sac site plan to
accommodate more buyers; and
WHEREAS, on April 2, 2004, the first Final Map for Subdivision 8588 for
Sunset Industrial Complex was recorded; and
WHEREAS, on June 7, 2004, the second Final Map for Subdivision 8842 for
Sunset Industrial Complex was recorded; and
WHEREAS, on September 14, 2004, the City Council approved the configuration
for subdividing the northerly portion of Sunset Industrial Complex, and
directed staff to commence subdivision activities to create two additional
parcels of approximately five acres; and
WHEREAS, the City’s implementation of its economic development strategy to
zone 28 acres at Sunset Industrial Complex for industrial use is in
compliance with the 2001 General Plan update; and
WHEREAS, the Sunset Industrial Complex has successfully provided an
opportunity for the return of light and medium industrial businesses that
previously left the City, and the voluntary relocation of industrial users
from Brentwood Boulevard, and has sold to over 15 light and medium
industrial end-users that will generate over 500 jobs and increase property
values by over $23,000,000; and
WHEREAS, the City adopted Ordinance 683 on August 28, 2001, establishing an
Agricultural Land Mitigation Ordinance to offset the loss of farmland
resources permanently changed to non-agricultural use; and
WHEREAS, the Agricultural Land Mitigation Ordinance allows the City Council
to determine whether non-residential projects are important for economic
development purposes and therefore a candidate for consideration to waive
the Agricultural Land Mitigation fee.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brentwood
that job creation and economic development strategies at Sunset Industrial
Complex meet the definition of “economic development purposes” and therefore
warrants the authorization by the City Council to waive the agricultural
mitigation fee as allowed by the Agricultural Land Mitigation Ordinance.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at
a regular meeting held on the 8th day of February 2005 by the following