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HomeMy WebLinkAbout2023-04-18; City Council; ; Agreement with Woodside 05S, LP to Pay the La Costa Town Square Parcel 3 Residential Project’s Fair Share Cost of Improvements to Rancho Santa Fe Road and Olivenhain RoadCA Review GH Meeting Date: April 18, 2023 To: Mayor and City Council From: Scott Chadwick, City Manager Staff Contact: Roxanne Muhlmeister, Assistant Finance Director roxanne.muhlmeister@carlsbadca.gov, 442-339-2417 Subject: Agreement with Woodside 05S, LP to Pay the La Costa Town Square Parcel 3 Residential Project’s Fair Share Cost of Improvements to Rancho Santa Fe Road and Olivenhain Road District: 4 Recommended Action Adopt a resolution approving an agreement between the City of Carlsbad and Woodside 05S, LP to pay the fair-share cost of improvements to Rancho Santa Fe Road and Olivenhain Road for the La Costa Town Square Parcel 3 Residential Project (CT 2017-003). Executive Summary The City Council's approval is needed for an agreement between the city and Woodside 05S, LP, the developer of the La Costa Town Square Parcel 3 Residential Project, so that Woodside has an alternative method of paying $534,280 to the city, for its fair share obligation of construction costs to improve segments of Rancho Santa Fe Road and Olivenhain Road. Explanation & Analysis Carlsbad has traditionally required developers to pay for building streets and other civic infrastructure needed to support development projects. The city divided Carlsbad into 12 local facilities management zones to carry out improvements to roads, water and wastewater service and other essential city facilities needed to support new development. The management plan for Local Facilities Management Zone 11 requires a financing plan for the construction of segments of Rancho Santa Fe Road and Olivenhain Road. Funding for road improvement projects had been a major concern of the city and property owners in the area for many years, and during the late 1980s and 1990s road improvements affected the development of about 2,400 acres in southeast Carlsbad. Staff worked with property owners in local facilities management zones 11, 12 and a small portion of 6, in anticipation of forming a community facilities district that would have funded the construction of certain road improvements, as required by the local facilities management plans. April 18, 2023 Item #1 Page 1 of 20 The proposed district was intended to provide property owners and the city with a feasible funding mechanism to ensure that funds would be available to construct the road improvements. However, delays in the formation of the district delayed development for property owners who had otherwise satisfied the conditions and mitigation measures of their development plans. To eliminate the delays, the City Council began allowing property owners to pay their fair share obligations for road improvements by entering into payment agreements authorized by California Government Code Section 53313.51. The payment agreements allow the developers to satisfy their fair share obligations by using a City Council approved cost allocation method, which is based on the number and type of units developed (e.g., single-family detached units or single-family attached units). The City Council adopted Resolution No. 2009-154 that provided an amended rate and method for determining the fair share obligation for funding the construction of Rancho Santa Fe and Olivenhain Roads in the amount of $7,400 per equivalent dwelling unit. Since late 1993 property owners have signed 20 fair share cost agreements that were approved by the City Council. These agreements allow developers to pay their fair share amount in lieu of forming a community facilities district. The payment of fair share obligations under these agreements funded the design and construction of the road improvements by the city. Five major road projects have been funded by this funding mechanism: • Olivenhain Road from Amargosa Drive to El Camino Real • Rancho Santa Fe Road from Olivenhain Road south into Encinitas • The intersection of Rancho Santa Fe Road and Olivenhain Road, including Olivenhain Road between Rancho Santa Fe Road and Los Piños Circle • Rancho Santa Fe Road from La Costa Avenue to San Elijo Road • Rancho Santa Fe Road from San Elijo Road to Melrose Drive Staff are now requesting the City Council approve an agreement with Woodside 05S, LP for its fair-share cost of road improvements for the La Costa Town Square Parcel 3 Residential Project. This project is located within Local Facilities Management Zone 11, as shown on the attached location map (Exhibit 2). The project consists of the construction of: • 76 single-family attached units • 19 multi-family units Approving the agreement allows the La Costa Town Square Parcel 3 Residential Project to proceed through the development approval process by providing a funding mechanism to satisfy the circulation infrastructure financing requirements in the Zone 11 Local Facilities Management Plan. The La Costa Town Square Parcel 3 Residential project is the final property in the once proposed district area to be developed and will be the last to pay its fair share obligation. Fiscal Analysis The total cost of the Rancho Santa Fe Road and Olivenhain Road project totaled more than $50 million. The project was funded from several sources, including payment agreements with property owners, $6 million from Communities Facilities District No. 1 and federal grant April 18, 2023 Item #1 Page 2 of 20 funding. Woodside 05S, LP will pay its fair share obligation of $534,280, based on the number and type of equivalent dwelling units for the La Costa Town Square Parcel 3 Residential Project. Next Steps With the City Council’s approval, the payment agreement will be executed and, once the funding obligation is paid, the requirements of Local Facilities Management Plan for Zone 11 will be satisfied in lieu of formation of a community facilities district. Environmental Evaluation The City Council certified an Environmental Impact Report (EIR 01-02) for the La Costa Town Square project and approved the project on Aug. 18, 2009. A condition of project approval is payment of the fair share funding obligation for Rancho Santa Fe Road and Olivenhain Road. These roadway improvements, as well as other completed road projects, were financed through funds generated by the property owners, and were subject to previously completed environmental review. CEQA Guidelines 15162 through 15168 set the standards by which a previously certified environmental impact report may be relied upon. It can be determined that this payment agreement is consistent with the previously approved EIR, and that no subsequent or supplemental review is required. Exhibits 1. City Council resolution 2. Location map 3. Fair share cost agreement with Woodside 05S, LP for the La Costa Town Square Parcel 3 Residential Project (CT 2017-003) April 18, 2023 Item #1 Page 3 of 20 RESOLUTION NO. 2023-109 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING AN AGREEMENT BETWEEN THE CITY OF CARLSBAD AND WOODSIDE 055, LP TO PAY THE FAIR SHARE COST OF IMPROVEMENTS TO RANCHO SANTA FE ROAD AND OLIVENHAIN ROAD FOR THE LA COSTA TOWN SQUARE PARCEL 3 RESIDENTIAL PROJECT {CT 2017-0003) WHEREAS, the City of Carlsbad City Council, has determined it necessary, desirable and in the public interest to approve an agreement with Woodside 055, LP for the developer to pay its fair-share cost of improvements to Rancho Santa Fe Road and Olivenhain Road for the La Costa Town Square Parcel 3 Residential Project {CT 2017-0003); and WHEREAS, Woodside 055, LP intends to build 76 single family attached units and 19 multi-family units in Local Facilities Management Plan, Zone 11; and WHEREAS, pursuant to Section 21.90.130 of the Carlsbad Municipal Code and Local Facilities Management Plan, Zone 11, development permits cannot be issued until a developer provides a financial guarantee for its fair-share cost of improvements, which for Zone 11, includes segments of Rancho Santa Fe Road and Olivenhain Road; and WHEREAS, Government Code Section 53313.51 allows for an agreement between the city and a developer for the construction of public improvements with a lifespan greater than five years; and WHEREAS, the City Council finds that the financial guarantee provisions for improvements to Santa Fe Road and Olivenhain Road may be satisfied through a payment agreement between Woodside 05S, LP and the city, where the property owner agrees to pay its fair-share of construction costs for Rancho Santa Fe Road and Olivenhain Road based on the number of equivalent dwelling units for the La Costa Town Square Parcel 3 Residential Project, and where the city finances the necessary improvements; and WHEREAS, the City Council finds that Woodside 055, LP may satisfy Condition No. 43 of Planning Commission Resolution .No. 7391 dated December 2, 2020, which requires the developer to comply with all conditions and mitigation measures of Zone 11 Local Facilities Management Plan, by entering into the payment agreement with the city; and EXHIBIT 1 April 18, 2023 Item #1 Page 4 of 20 WHEREAS, on August 18, 2009, City Council certified an Environmental Impact Report (EIR 01- 02)for the La Costa Town Square project and approved the project, and the California Environmental Quality Act, or CEQA, Guidelines 15162 through 15168 set the standards for which a previously certified environmental impact report may be relied upon, and WHEREAS, it can be determined that the Agreement to Pay Fair Cost with Woodside 05S, LP is consistent with the previously approved EIR 01-02 and no subsequent or supplemental CEQA review is required. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1.That the above recitations are true and correct. 2.That the agreement entitled "Agreement to Pay Fair Share Cost of La Costa Town Square Parcel 3 Residential Project (CT 2017-003)" is approved, and the Mayor is authorized to execute the Agreement. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 18th day of April, 2023, by the following vote, to wit: AYES: NAYS: ABSTAIN: ABSENT: Blackburn, Bhat-Patel, Acosta, Burkholder, Luna. None. None. None. KEITH�or L SHERRY FREISINGER, City Clerkr-(SEAL) April 18, 2023 Item #1 Page 5 of 20 RANCH O S A N T A F E R D L A C O S T A A V ESFERA ST RAN C H O S A N T A F E R D CADEN C I A S T V E N A D O S T PIR A G U A S T LEVANTE ST SITIO LIM A AZAHAR S T RAN C H O S A N T A F E R D ( A B A N D O N E D ) CA M I N O D E L O S C O C H E S PLOTTED BY: Andy Chang PLOT DATE: 3/8/2023 PATH: Z:\Emad_Elias\LocationMap\LaCostaTownSquareParcel3.mxd PROJECT NAME EXHIBITPROJECTNUMBERCT2017-0003 2LA COSTA TOWN SQUARE PARCEL 3 LOCATION MAP CARLSBAD VISTA SAN MARCOS ENCINITAS OCEANSIDE SITE Vicinity MapNot to Scale CT2017-0003 Not to Scale SITE April 18, 2023 Item #1 Page 6 of 20 April 18, 2023 Item #1 Page 7 of 20 Exhibit 3 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City Clerk CITY OF CARLSBAD 1200 Carlsbad Village Drive Carlsbad,CA 92008 Space Above This Line for Recorder's Use Assessor Parcel No. 223-050-73-00 AGREEMENT TO PAY FAIR SHARE COST OF LA COSTA TOWN SQUARE PARCEL 3 RESIDENTIAL (CT 2017-003) ("AGREEMENT") WHEREAS, the undersigned Property Owner at this time is processing for development with the City of Carlsbad (hereinafter referred to as "City") a development project known and identified as La Costa Town Square Parcel 3 Residential (CT 2017-003), which consists of seventy-six (76) single family attached residential units and nineteen (19) multi-family residential units (hereinafter referred to as the "Project"); and, WHEREAS, the legal description for the Project is shown on Exhibit "A" attached hereto and incorporated herein by reference; and, April 18, 2023 Item #1 Page 8 of 20 WHEREAS, City has determined the Project is subject to a fair share obligation for the construction costs of Rancho Santa Fe and Olivenhain roads for properties that benefit from the city's financing of these necessary improvements, and WHEREAS, Condition No. 43 of Planning Commission Resolution No. 7391 dated December 2, 2020, recommending approval of Carlsbad Residential Tract Map No. 2017- 0003 (CT 2017-0003), and requires the developer to comply with all conditions and mitigation measures required as part of Zone 11 Local Facilities Management Plan; and, WHEREAS, pursuant to section 21.90.130 of the Carlsbad Municipal Code and pursuant to Local Facilities Management Plan, Zone 11, development permits cannot be issued until the developer provides a financial guarantee towards its fair-share cost of improvements, which for Zone 11, includes segments of Rancho Santa Fe Road and Olivenhain Road; and, WHEREAS, the City and Property Owner desire to agree to an alternative method of financing the improvements described in Section 1 herein that will allow Property Owner to discharge its fair share obligation for said improvements in lieu of, the formation of Community Facilities District No. 2 ("District"); and, WHEREAS, the City Council agrees that Property Owner, upon entering into this Agreement and wpon payment of the fair share described herein, has met the requirement originally referenced in City Council Resolution No. 2009-232 dated September 15, 2009, and as set forth in Condition No. 43 of Planning Commission Resolution No. 7391 dated December 2, 2020 and further delineated in the Local Facilities Management Plan, Zone 11, to provide a financial guarantee for the construction of those improvements described in Section 1 below; and, WHEREAS, Property Owner voluntarily enters into this Agreement with respect to the Project; and, April 18, 2023 Item #1 Page 9 of 20 WHEREAS, the City Council has determined that due to the size of the proposed development, there will be no major impact on the circulation system at the present time if development of the Project is allowed to proceed with sufficient financial guarantees for the construction of Property Owner's fair share of the circulation improvements. NOW, THEREFORE, in consideration of proceeding with the processing of the Project, the undersigned Property Owner and City hereby agree and certify to the following: 1. Property Owner hereby agrees to pay its fair share obligation for the construction and installation and/or financing of the following improvements (hereinafter "Improvements") which are generally described as follows: a) Rancho Santa Fe Road North Phase 1 (RSF No.1) La Costa Avenue to east of Mahr Reservoir b) Olivenhain Road Widening, and intersection improvements at Olivenhain and El Camino Real c) Rancho Santa Fe Road North Phase 2 (RSF No. 2) Phase 1 End to Melrose Drive. d) Rancho Santa Fe Road South (RSF So.) (Assumes Secondary Arterial Standard -Encinitas City Boundary to Olivenhain Road Full Improvements). 2. The cost of construction, engineering, environmental mitigations, legal and other incidental expenses as set forth in the Improvements Budget will be funded by the monies collected by the City for this purpose. 3. The City reserves its right to form the District to fund the Improvements, consistent with Council Policy No. 33. And the Property Owner acknowledges its right to notice of and participation in all phases of formation under the "Mello-Roos Community Facilities Act of 1982," and expressly waives the proceedings required and all limitations contained in Title 5, Division 2, Chapter 2.5 of the California Government Code and nonetheless with full knowledge of such rights, completely and forever waives such rights. Specifically, Property Owner hereby consents to the proceedings, as needed, and waives any right to protest the formation of the District and the ordering of the improvements under April 18, 2023 Item #1 Page 10 of 20 applicable California statutes and consent to and support formation of said District with respect to the Project. 4. Property Owner agrees to pay to City, or provide, its fair share for the Improvements described in Section 1. Said payment, or provision, shall be made in the manner described in Exhibit 11 811 , Rate and Method for Determining Fair Share Obligation Rancho Santa Fe and Olivenhain Road, which is incorporated herein by reference. Payment by Property Owner of its fair share of improvement costs as determined by City Council and set forth herein will satisfy their obligations for the construction of the Improvements as referenced in City Council Resolution No. 2009-232 dated September 15, 2009, as described in Section 1, as required by Condition No. 43 of Planning Commission Resolution No. 7391 dated December 2, 2020 and further delineated in the Local Facilities Management Plan, Zone 11, subject to adjustment as described in Section 9 herein. 5. Property Owner acknowledges that without this Agreement to pay its fair share and participate in the financing of the Improvements the Property Owner would be precluded from obtaining final map approvals or building and other development permits under the provisions of the General Plan, Chapter 21.90 of the Carlsbad Municipal Code, applicable zone plan, financing plans and related documents until a satisfactory financing program has been developed to fund the construction of the Improvements described in Section 1, unless a the District is formed. 6. Property Owner hereby waives its right to challenge the amount, establishment or imposition of said fair share and further waive any rights to pay said fair share under protest. 7. This Agreement does not affect, in any way whatsoever, the obligation of Property Owner to pay any other fees or assessments associated with Property Owner's development and/or to post improvement bonds as required by the City Engineer. Nor does this Agreement relieve Property Owner from providing other public facilities required under conditions placed upon the Project by the City. April 18, 2023 Item #1 Page 11 of 20 8. Property Owner agrees that payment of its fair share is not a fee and waives any and all rights to notice of or challenges to the establishment or imposition of said fair share as a fee under provisions of Government Code section 66000 et seq., or any successor or related statutes. 9. a) If the City exercises its reserved right to form the District subsequent to the payment by Property Owner for the fair share agreed to pursuant to this Agreement, Property Owner's financial obligation will be recalculated using the taxing formula established for the District for the Improvements described in Paragraph 1. If that obligation is lower than the amount previously paid or provided by Property Owner to City, City shall refund any excess, in the manner described below. b) Any refund shall be made from funds available within the special fund established by the City for the construction of Improvements, and shall not be an obligation of City's General Fund or other City revenue sources. c) No reimbursement is required until the City Council determines that sufficient funds are available. Any refund to Property Owner shall not include interest. d) Any payment received by the City under this Agreement shall be deposited in a special interest-bearing fund and may only be used to fund the construction of the Improvements. 10. Upon completion of the Improvements, the City Engineer shall determine the total cost of all phases of the Improvements and all related work ("Costs"), and the Finance Director shall determine the total amount of revenue including fees, taxes, interest earned on funds restricted to use only on the Improvements, and other sources of funds received by the City dedicated to paying for the construction of the Improvements ("Revenues"). The Finance Director shall then compare the amount of Costs and Revenues to determine if there are any excess Revenues as described below. April 18, 2023 Item #1 Page 12 of 20 a) The total amount of excess Revenues shall be determined by deducting the amount of the project Costs from the available Revenues. Total project Costs shall include all costs to plan, design, construct, mitigate environmental impacts, inspect, and otherwise complete the Improvements to the satisfaction of the City Engineer, including applicable charges for City staff services. Total Revenues shall include all monies held by the City dedicated exclusively to the construction of the Improvements. b) The amount of the refund due to any party shall be based on the proportion of that party's payments under this Agreement based on its proportional share of Equivalent Dwelling Units constructed or to be constructed by that party, weighted as described in Exhibit B, divided by the total number of EDUs constructed or to be constructed. The amount of the refund shall be determined by multiplying the proportional share computed above by the total amount of excess Revenues. c) In order to share in the refund of any portion of the excess Revenues, the eligible party must request to be included in the distribution of excess Revenues. Each request must be accompanied by documents indicating clear title to the refund unless the request is being made by the party who originally paid the taxes to the City under a prepayment Agreement. d) The Finance Director shall compute the amount of the refund due each party as described above. Funds may be disbursed to the eligible parties following City Council approval of such refunds. e) If the City does not receive requests for refund from all eligible parties within the specified period, and all funds cannot be disbursed as provided by this section, any remaining funds shall be held in a special fund to be used to support road and roadway maintenance in and around the Improvements, as determined to be necessary by the City Engineer, and approved by the City Council. f) As a courtesy to all interested parties, the City will maintain a file of those individuals or companies entitled to a refund, and will mail notices of refund availability to April 18, 2023 Item #1 Page 13 of 20 the names and addresses. It is the eligible party's responsibility to notify the City if the right to any refunds under this section is assigned to another party, or if there is a change in name or address for the eligible party. The City takes no responsibility for the accuracy of the information included in this file, and is under no obligation to locate persons or entities that are entitled to refunds. Failure to notify any party of the availability of excess Revenues shall not obligate the City in any way to extend or modify the above refund procedures. 11. Compliance with this Agreement will be accepted by City as an alternate to the method described in the current Local Facilities Management Plan for local facilities Management Zone 11 for financing the Improvements described in Paragraph 1. This Agreement does not require City to issue building permits or other development permits or grant approvals or relieve Property Owner of the obligation to comply with all applicable provisions of law, including but not limited to Carlsbad Municipal Code Titles 18, 19, 20 and 21. 12. Compliance with the provisions of this Agreement is a condition of all future discretionary approval for the Project. If Property Owner does not comply with the provisions of this Agreement, approval of the Project will not be consistent with the General Plan, the Growth Management Program, and the Local Facilities Management Plan, Zone 11, and all subsequent discretionary approvals and permits for the Project may be withheld by City. 13. In addition, the City will not approve any pending final maps, issue grading, building or other development permits or take any discretionary action until the Property Owner has complied with the terms of this Agreement due to be satisfied at the time such approval is required. 14. The City may, at its discretion, elect to pursue any remedy, legal or equitable against Property Owner and Property Owner's successors, heirs, assigns, and transferees of the Project to secure compliance with this Agreement. 15. City shall not, nor shall any officer or employee of City, be liable or responsible for any loss or damage incurred by Property Owner or any successor or assign of Property Owner, or by any occupant in Property Owner's buildings, as a result of the exercise of any April 18, 2023 Item #1 Page 14 of 20 remedies provided to City in this Agreement. Property Owner agrees to indemnify City for any liabilities incurred by City as a result of City's exercise of these remedies. 16. This Agreement and the covenants contained herein shall be binding upon and inure to the benefit of the successors, heirs, assigns, and transferees of Property Owner with respect to the Project only and City, and shall run with the Project and create an equitable servitude upon the Project. 17. All notices provided for under this Agreement shall be in writing and shall be delivered in person or served by certified mail postage prepaid. Delivery of notice to Property Owner shall be presumed to have been made on the date of mailing regardless of receipt by Property Owner. Notices required to be given to Property Owner shall be delivered to: WOODSIDE 05S, LP Attn: Vice-President 1250 Corona Pointe STE 500 Corona, CA 92879-1762 Notices to the City shall be delivered to: City of Carlsbad Attn: Assistant Finance Director 1635 Faraday Avenue Carlsbad,CA 92008 Each party shall notify the other immediately of any change that would require any notice delivered hereunder to be directed to another party. 18. This Agreement shall be recorded but shall not create a lien or security interest in the property. 19. The undersigned Property Owner further states, under penalty of perjury, that they are Owner of the property as described herein on Exhibit "A", or an authorized agent of the Owner, and have the authority to execute this Agreement, including the binding authorizations herein. April 18, 2023 Item #1 Page 15 of 20 (Remainder of Page Intentionally Left Blank) April 18, 2023 Item #1 Page 16 of 20 PROPERTY OWNER WOODSIDE 05S, LP, a California limited partnership (sign here) C fA -r t5 C, ~ lJ er s P (print name here) \{ v (title) C... ~ (' [ 5 . c.,, {,u:~ lM ltJ 4:C 5 @wood c;, I <!Ji!.,, (e-mail address) ~ t. t ~W\ , .. om, ". **By: (sign here) (print name here) (title) (e-mail address) CITY OF CARLSBAD, a municipal corporation of the State of California By: Mayor ATTEST: SHERRY FREISINGER City Clerk If required by City, proper notarial acknowledgment of execution by contractor must be attached. lf a corporation, Agreement must be signed by one corporate officer from each of the following two groups. Group A Chairman, President, or Vice-President Group B Secretary, Assistant Secretary, CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation. APPROVED AS TO FORM: CINDIE K. McMAHON, City Attorney BY: ------------Deputy City Attorney April 18, 2023 Item #1 Page 17 of 20 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of th~ .individual , • who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California "f/ County of ______ ~~~~--~ ' ! . ~ On-----~~~---before me, E. Velazquez Pena, Notary Public (insert name and title of the officer) pqrsonally appeared , • , , 1(J __ , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. · WITNESS my hand and official seal. ) i············i , E, VELAZQUEZ PENA : ' • Notary Publlc • California z ;! ; Riverside County is z Commission # 2304007 - 1ir-f Comm. Expires Oct 2, 2023 . (Seal) I April 18, 2023 Item #1 Page 18 of 20 EXHIBIT "A" LEGAL DESCRIPTION Real Property in the City of Carlsbad, County of San Diego, State of California, more particularly described as follows: Parcel 3 of City of Carlsbad Minor Subdivision No. 04-08, in the City of Carlsbad, County of San Diego, State of California, according to Parcel Map No. 20982 filed in the office of the County Recorder of San Diego County on July 11, 2012, as File No. 2012-0402964 of official records. Assessor's parcel number: 223-050-73-00 (Remainder of Page Intentionally Left Blank) April 18, 2023 Item #1 Page 19 of 20 EXHIBIT "B" RATE AND METHOD FOR DETERMINING FAIR SHARE OBLIGATION RANCHO SANTA FE AND OLIVENHAIN ROADS The City Council shall use the following rate and method for determining the fair share obligation for funding the construction of Rancho Santa Fe and Olivenhain Roads due from property conditioned to participate in the financing of these facilities. This calculation is done as part of an Agreement titled AGREEMENT TO PAY FAIR SHARE ("Agreement") which has been voluntarily entered into by the City of Carlsbad and certain property owner. The following rate and method shall be used to determine the fair share and amount due from any property owner wishing to take advantage of this alternate funding mechanism. Basis for Cost Allocation The basis for allocation of costs to property conditioned with the financing of the improvements described in the Agreement shall be the Equivalent Dwelling Unit ("EDU"), which is defined per product classification as follows: Product Classification Single Family -Detached Units Single Family -Attached Units Multi-Family Units Churches Commercial/Industrial and other Equivalent Dwelling Units 1.0 EDU 0.8 EDU 0.6 EDU 4.0 EDU per Acre 10.0 EDU per Acre The number of each type of unit included in a development shall be determined by the City Engineer based on the most recent final map submitted to the City for approval. The EDU determination for non-residential development shall be made by the City Engineer when such a determination is requested by the property owner. The City Engineer may request additional information from any property owner as may be necessary to make his determination. The City Engineer is not required to make a determination on the number of EDUs for any project until adequate information is available. The City Engineer's determination shall be submitted to the City Council in the table below. The City Council shall make the final determination of the number of EDUs to be used in computing the fair share obligation for any project. April 18, 2023 Item #1 Page 20 of 20 Fair Share Amount and Method of Payment The fair share amount, as previously determined by the City Council, was $10,250 for each EDU. On June 23, 2009, through Resolution No. 2009-154, City Council approved a partial refund of the fair share amount totaling $2,850 for each EDU to property owners who satisfied their fair share obligation prior to June 23, 2009. As a result, the fair share amount is now assessed at $7,400 for each EDU. The City shall collect $7,400 for each EDU as determined by the City Council. This amount shall be collected in one payment of $7,400 per EDU to be paid prior to City Council consideration of final map approval as described below. 1) Prior to the approval of a final map by the City Council, the property Owner shall pay to the City an amount equal to the number of EDUs included in said final map, as determined by the City Engineer, times $7,400. If the City Council determined that the City Engineer's calculation of the number of EDUs included on the final map is in error, the City Council shall direct the City Engineer to amend his calculations and direct staff to bring the final map back for approval when such correction has taken place. Funds must be paid to the City before the final map will be scheduled for City Council consideration. Computation of Fair Share Obligation La Costa Town Square CT 2017-003 Units Covered by EDU Cost per CT No. Type of Unit Agreement per unit 1.0 EDU Amount Due CT 2017-003 Single Family 76 0.80 $7,400 $449,920 Attached Units CT 2017-003 Multi Family Units 19 0.60 $7,400 $84,360 Total $534,280 2) If the property owner has already obtained a final map for units conditioned with the financing of Rancho Santa Fe and Olivenhain Road, the property owner shall pay to the City the net amount due shown above prior to entering into this Agreement.