REPORT TO THE CITY COUNCIL
FROM: JENNIFER CLARK, Director
Planning and Development Department
THROUGH: ISRAEL TREJO, Planning Manager
Planning and Development Department
BY: ROB HOLT, Supervising Planner
Planning and Development Department
SUBJECT
Title
Approve a Project-Specific Tax Sharing Agreement Between the City of Fresno and the County of Fresno Regarding California-Willow No. 4 Reorganization for approximately 79.75 acres of property located on the southeast and southwest corners of the East California Avenue alignment (railroad right-of-way) and South Willow Avenue (Council District 5).
Body
RECOMMENDATION
Staff recommends that Council approve the Project-Specific Tax Sharing Agreement Between the City of Fresno and the County of Fresno Regarding California-Willow No. 4 Reorganization.
EXECUTIVE SUMMARY
The City Council unanimously approved Annexation Application No. P22-00411, Pre-zone Application No. P22-00442, Vesting Tentative Tract Map No. 6345, and related Environmental Assessment No. T-6345/P22-00411/P22-00442 on November 3, 2022. The County of Fresno and City of Fresno have not had a master Tax Sharing Memorandum of Understanding (MOU) since August 29, 2020 and have not been successful in negotiating a successor agreement as of today. This Project-Specific Agreement is necessary for the applicant’s annexation application to continue through the LAFCo process and to start the process of building 199 housing units in the City of Fresno. The Fresno County Board of Supervisors will be required to approve this agreement for the annexation application to continue through the LAFCo process. The agreement itself will be discussed in the Background section of this report starting in the third paragraph.
BACKGROUND
Annexation Application No. P22-00411, Pre-zone Application No. P22-00442, and Vesting Tentative Tract Map No. 6345 came before the City Council on September 29, 2022, where it was continued to the November 3, 2022 agenda at the applicant’s request. It was heard and unanimously approved by Council with an amendment to the annexation boundary on November 3, 2022. The Developer has agreed to the amendment to the annexation boundary that was included in Councilmember Chavez’s motion to approve the project: 1) exclude the Pilibos parcels that lay north of the East California Avenue alignment from the proposed rezone and annexation.
This application was brought forward on behalf of D. R. Horton. Vesting Tentative Tract Map No. 6345 consisting of 36.75 acres of property has been approved for 199 single-family homes. This annexation includes one additional parcel totaling 79.75 acres.
The Administration has been meeting with Fresno County to develop a new Master Tax Sharing Agreement. Various proposals have been discussed, but as of today the City and the County have not reached an agreement. In the absence of a Master Tax Sharing Agreement, the City and County are obligated by state law to negotiate separate standalone agreements on a project-by-project basis. At the request of the Developer, the City initiated the process to develop a standalone tax sharing agreement for this project on February 6, 2023.
The Standalone Tax Sharing Agreement for this project uses the allocations for real property tax sharing that were part of the now expired 2003 MOU, 62 percent to the County and 38 percent to the City. In order to create an agreement that evidences revenue neutrality for the City as required by Fresno Municipal Code Section 15-6104, this agreement includes Section 3.a which creates a condition precedent to this agreement that requires the developer to make up for revenue shortfalls in the provision of police and fire services. Annexation in Community Facilities District (CFD) No. 18 will offset Police and Fire costs associated with the annexation.
Another element of this agreement is for the City to accept conveyances from the County for road rights-of-way along South Willow Avenue and the East California Avenue alignment as described in Exhibit A.
Once the roads right-of-way for South Willow Avenue and the East California Avenue alignment are conveyed to the City by the County, the City will be able to provide street maintenance services for these roadways. City jurisdiction over these roadways will allow for a more streamlined and uniform development of these streets to City standards, including all planned travel lanes, bike lanes, curbs, gutters, sidewalks, and roadway lighting.
ENVIRONMENTAL FINDINGS
This item is not a project as defined by the California Environmental Quality Act.
LOCAL PREFERENCE
Local preference was not implemented because this project does not include a bid or award of a construction or service contract.
FISCAL IMPACT
Entering into this agreement is not anticipated to result in a direct impact on the General Fund. Any indirect impacts will be addressed by the mechanisms described above in the staff report.
Attachments:
Exhibit A - Project-Specific Tax Sharing Agreement