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Current Council Agenda and Past Meeting Information

 

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 Mitigation Ordinance

Prepared by: Gina Rozenski, Redevelopment Manager

Submitted by: Howard Sword, Community Development Director

RECOMMENDATION
Authorize the Agricultural Land Mitigation Fees at the Sunset Industrial Complex be waived in accordance with the Agricultural Land Mitigation Ordinance

PREVIOUS ACTION
 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.

BACKGROUND
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.

FISCAL IMPACT
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).

Attachment: Resolution

RESOLUTION NO.

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; and

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 vote:
 

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