Title
Recommendation to Approve an Interfund Loan of Up to $1,200,000 from the General Fund to the Development Impact Fees (DIF) Parks Fund for the Repayment of the Parks DIF for the Cross Alameda Trail - Jean Sweeney Improvement Project and the Estuary Park Improvements. (Finance 2410)
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To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
Authorize an interfund loan in an amount of up to $1.2 million from the General Fund to the Parks Development Impact Fees (DIF). The terms of the loan include a repayment over a 10 year period with no pre-payment penalty and zero percent interest.
BACKGROUND
In June 2017, the City Council approved two interfund loans to the Parks Development Impact Fees Fund. One loan was for $900,000, funded by the Transportation Development Impact Fee Fund and used to finance construction of the Cross Alameda Trail - Jean Sweeney Improvement project. The second loan was for $1.4 million, funded equally by the General Fund and the FISC Fund and used to finance the Estuary Park Improvements project.
On June 4, 2019, the City Council approved a settlement agreement with CP VI Admirals Cove, LLC to refund $1,473,300 of Parks DIF. The developer originally paid the fee to the City in October 2018 conditioned with the outcome of litigation. The funds received were used to fully repay the previously approved interfund loan made by the Transportation DIF and make a partial payment on the General Fund/FISC loan. The developer provided a written protest because they did not think the Parks DIF fees were relevant to their project since it is a renovation rather than a new development.
DISCUSSION
In June 2017, the City Council approved two interfund loans to the Parks Development Impact Fees Fund. One loan was for $900,000 funded by the Transportation Development Impact Fee Fund and used to finance construction of the Cross Alameda Trail - Jean Sweeney Improvement project. The second loan for $1.4 million was funde...
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