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Home My WebLink About15507RESOLUTION NO. 15507 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 ST NORTH PUEBLO BOULEVARD AND WEST 31 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: BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, 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 $677,600 to the Pueblo Springs Apartments, located in the southwest corner of North Pueblo st Boulevard and 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 $55,620 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 December 31, 2024, unless on or before that date, Pueblo Springs Apartments provides the City with satisfactory proof of the following: 1. Final recording of the Pueblo Springs Apartments subdivision plat. 2. Issuance of a Building Permit for construction of the Pueblo Springs Apartments by the Pueblo Regional Building Authority. SECTION 4. The December 31, 2023 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 December 31, 2024, the deadline shall be extended for an additional six (6) months b. If HUD requires that the development of the Pueblo Springs Apartments occur in two (2) or more phases, the December 31, 2024 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: February 26, 2024 BY: Dennis Flores MEMBER OF CITY COUNCIL APPROVED: PRESIDENT OF CITY COUNCIL ATTESTED BY: CITY CLERK City Clerk's Office Item # M5 Background Paper for Proposed Resolution COUNCIL MEETING DATE: February 26, 2024 TO: President Mark Aliff and Members of City Council CC: Mayor Heather Graham VIA: Marisa Stoller, City Clerk FROM: Scott Hobson, Acting Director 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 ST WEST 31 STREET IN THE CITY OF PUEBLO SUMMARY: Attached is a Resolution authorizing the City of Pueblo to grant an additional extension of conditional waivers of fees for wastewater utility tap and plant investment fees totaling a maximum of $677,600 for 242 multi-family residential units and other development fees totaling an additional estimated $55,620 requested by the developer of the Pueblo Springs Apartments. The Pueblo Springs Apartment Project is located at st the southwest corner of North Pueblo Boulevard and West 31 Street. PREVIOUS COUNCIL ACTION: City Council has previously approved Resolution No. 14433 on July 13, 2020, Resolution No. 14768 on December 13, 2021, Resolution No. 15258 on June 12, 2023 granting conditional waivers of fees for wastewater utility tap and plant investment fees totaling $653,400 through June 30, 2024 for the Pueblo Springs Apartments Project. BACKGROUND: This Resolution would extend the timeframe for the granting of the requested conditional waivers of city wastewater utility tap and plant investment fees based on the 2024 wastewater fee schedule and other development fees totaling a maximum of $733,200 in fee waivers. The requested fee waivers are based on the adopted 2024 wastewater enterprise fee schedule. The approved wastewater tap and plant investment fee increased between 2021 to 2024 resulting in an increase of the requested fee waivers for the 242 multi-family residential units by $24,200 from the amount approved in Resolution No. 15258 dated June 12, 2023. The waivers will also be automatically extended in the event of the following: a. If the U.S. Department of Housing and Urban Development (“HUD”) does not approve the financing for the Pueblo Springs Apartments by December 31, 2024, the deadline shall be extended for an additional six (6) months. b. If HUD requires that the development of the Pueblo Springs Apartments occur in two (2) or more phases, the December 31, 2024 deadline shall be extended for the second and each succeeding phase of development. The annexation of the Pueblo Springs Apartments property 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 approved by City Council on May 23, 2022. The applications, other requested waivers, except for the fire and concrete inspection fees, have been granted and those applications have been completed. The addition of approximately 242 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 based on 242 multi-family units at the 2024 rate schedule, and the General Fund and Park Escrow Fund will not receive fees for this project as follows: Fee Type Amount Tap Fees $471,900 Plant Investment Fees $205,700 Park Escrow Funds - completed $ 51,520 Commercial Site Plan Fees -completed $ 2,500 Fire Inspection Fees $ 1,500 Concrete Inspection Fees $ 100 Total $733,220 BOARD/COMMISSION RECOMMENDATION: Not applicable to this Resolution. STAKEHOLDER PROCESS: Not applicable to this Resolution. ALTERNATIVES: Failure to approve this Resolution will significantly delay the Pueblo Springs Apartments Project or make it financially unfeasible. RECOMMENDATION: Approval of the Resolution. ATTACHMENTS: 1. Wastewater Tap and Plant Investment Fees 2. Commitment for HUD financing Pueblo Springs Apts