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HomeMy WebLinkAbout14768 RESOLUTION NO. 14768 A RESOLUTION AUTHORIZING THE EXTENSION OF THE CONDITIONAL WAIVERS OF FEES RELATING TO WASTEWATER UTILITY TAP AND PLANT INVESTMENT FEES AND GRANTING WAIVERS FOR OTHER DEVELOPMENT FEES PERTAINING TO THE PUEBLO SPRINGS APARTMENT COMPLEX LOCATION ON THE SOUTHWEST CORNER OF NORTH PUEBLO BOULEVARD AND WEST 31ST STREET IN THE CITY OF PUEBLO FINDINGS OF FACT a. The City Council finds and determines that it has been several years since a large-scale apartment complex has been developed in the City of Pueblo; and, b. The lack of new large-scale apartment complexes in the City has a negative impact on the City’s economic development; and, c. The construction of the Pueblo Springs Apartments 18.2-acre complex within the corporate limits of the City of Pueblo will result in the recovery of sales and use tax revenue associated with the project and future real property tax revenue in amounts far in excess of Wastewater Utility fees and other development fees waived by this Resolution; and, d. The waiver of fees for Wastewater Utility tap and plant investment fees and other development fees as authorized by this Resolution is for a public purpose and in furtherance of a municipal function and will enhance economic development in the City; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, and acting as the governing board of the City’s Wastewater Utility Enterprise, that: SECTION 1. The City of Pueblo, acting by and through its Wastewater Utility Enterprise, hereby grants a waiver of wastewater utility tap and plant investment fees up to a maximum amount of $317,020 to the Pueblo Springs Apartments, located in the southwest corner of North Pueblo Boulevard and st West 31 Street in the City. SECTION 2. The City of Pueblo hereby grants a waiver of other development fees including commercial site plan review fees, fire department inspection fees, concrete permit fees, and fees in-lieu of park land/development fees up to a maximum amount of $60,000 related to the Pueblo Springs Apartments project. SECTION 3 The waivers of wastewater utility fees and other development fees as provided in this Resolution will expire on July 31, 2022, unless on or before that date, Pueblo Springs Apartments provides the City with satisfactory proof of the following: 1. With respect to Pueblo Springs Apartments 18.2-acre complex, successful completion of the following milestones: a. Rezoning of the property. b. Subdivision of the property. 2. Issuance of a Building Permit for construction of the Pueblo Springs Apartments by the Pueblo Regional Building Authority. SECTION 4. The July 31, 2022 deadline specified in Section 3 shall be extended as follows, upon the occurrence of the following events: a. If the U.S. Department of Housing and Urban Development (“HUD”) does not approve the financing for the Pueblo Springs Apartments by July 31, 2022, the deadline shall be extended for an additional six (6) months. b. If HUD requires that the development Pueblo Springs Apartments occur in two (2) or more phases, the July 31, 2022 deadline shall be extended for the second and each succeeding phase of development. SECTION 5. This Resolution shall not serve as a precedent for the granting of waivers of Wastewater Utility and other development fees in the future. The decision to grant a waiver of wastewater utility tap and plant investment fees, and other development fees to Pueblo Springs Apartments was based on the particular facts surrounding the Pueblo Springs Apartments development. As was done with Pueblo Springs Apartments, future requests for waivers of Wastewater Utility fees and other development fees shall be considered on a case-by-case basis. SECTION 6. The officers of the City are authorized to perform any and all acts consistent with the intent of this Resolution to implement the policies and procedures described herein. SECTION 7. This Resolution shall become effective immediately upon passage and approval. INTRODUCED December 13, 2021 BY: Ed Brown MEMBER OF CITY COUNCIL APPROVED: PRESIDENT OF CITY COUNCIL ATTESTED BY: CITY CLERK City Clerk’s Office Item # M-5 BACKGROUND PAPER FOR PROPOSED RESOLUTION COUNCIL MEETING DATE: December 13, 2021 TO: President Lawrence W. Atencio and Members of City Council CC: Nicholas A. Gradisar, Mayor VIA: Marisa Stoller, City Clerk FROM: Scott Hobson, Acting Director of Planning and Community Development SUBJECT: A RESOLUTION AUTHORIZING THE EXTENSION OF THE CONDITIONAL WAIVERS OF FEES RELATING TO WASTEWATER UTILITY TAP AND PLANT INVESTMENT FEES AND GRANTING WAIVERS FOR OTHER DEVELOPMENT FEES PERTAINING TO THE PUEBLO SPRINGS APARTMENT COMPLEX LOCATION ON THE SOUTHWEST CORNER OF NORTH PUEBLO BOULEVARD AND WEST 31ST STREET IN THE CITY OF PUEBLO SUMMARY: Attached is a Resolution authorizing the City of Pueblo to grant a twelve (12) month extension of conditional waivers of fees for wastewater utility tap and plant investment fees totaling $317,020 and other development fees totaling an additional estimated $60,000 requested by the developer of the Pueblo Springs Apartments, located in the southwest corner of North Pueblo Boulevard st and West 31 Street. PREVIOUS COUNCIL ACTIONS: City Council has previously approved Resolution No. 14433 on July 13, 2020, granting conditional waivers of fees for wastewater utility tap and plant investment fees totaling $317,020 for the Pueblo Springs Apartments, located in the southwest corner of North Pueblo Boulevard and West st 31 Street in the City of Pueblo.. BACKGROUND: City Council approved Resolution No. 14433 on July 13, 2020 granting conditional waivers of fees for wastewater utility tap and plant investment fees totaling $317,020 for the Pueblo Springs Apartments. The waiver of these fees was granted through July 31, 2021, unless on or before that date, the developer satisfactorily completed the following milestones: a. Annexation of the 20-acre parcel into the corporate limits of the City of Pueblo b. Rezoning of the property within the City. c. Subdivision of the property. These milestones have progressed, but not within the original timeline established in the July 13, 2020 Resolution. This Resolution extends the grant of the fee waivers for a one-year period to an expiration date of July 31, 2022. The original owner of the property sold the property to the apartment developer, Emery Chukly, in 2020 which resulted in the resubmittal of the annexation petitions creating nearly a 12 month in a delay in the completion of the annexation of property into the City. The annexation was approved by City Council on November 10, 2021. The initial zoning of the property within the City was approved by City Council on November 22, 2021. A two-lot subdivision application was submitted by the developer on October 6, 2021 and is scheduled to be reviewed by the City Planning & Zoning Commission (“P&Z”) on December 8, 2021. Following the P&Z review the subdivision will be scheduled for Part 1 approval by City Council at the end of January 2022. The Part 2 approval and recording of the subdivision will likely be completed by April 2022. In addition to the Wastewater Fee waivers, the applicant is requesting the waiver of fees in-lieu of park dedication assessments, commercial multi-family site plan fees, fire inspection and concrete inspection fees for this project. This new apartment project, while taking approximately a year longer than originally envisioned, will significantly impact the need for new large-scale multifamily housing within the City of Pueblo. The addition of approximately 300 new apartment units will result in the recovery of sales and use tax revenue associated with the construction of the project and future real property tax revenue in amounts far in excess of the fee waivers. FINANCIAL IMPLICATIONS: The Wastewater Utility will not receive tap and plant investment fees, and the General Fund and Park Escrow Fund will not receive fees for this project as follows: Fee Type Amount Tap Fees $171,820 Plant Investment Fees $145,200 Park Escrow Funds $ 51,520 Commercial Site Plan Fees $ 2,500 Fire Inspection Fees $ 1,500 Concrete Inspection Fees $ 100 Total $372,640 BOARD/COMMISSION RECOMMENDATION: Not applicable to this Resolution. STAKEHOLDER PROCESS: Not applicable to this Resolution. ALTERNATIVES: Failure to approve this Resolution will likely significantly delay or make the Pueblo Springs Apartments Project financially unfeasible. RECOMMENDATIONS: Approval of the Resolution. Attachments: Proposed Resolution