Title
First Reading of Ordinance No. 19-1017, Amending Development Agreement to Extend Pass-Through Reimbursements for Constructed Stormwater Facility
Body
RECOMMENDED ACTION (Motion):
Staff recommends that the City Commission approve the first reading of Ordinance No. 19-1017.
BACKGROUND:
The City entered into an agreement with John Jones Construction, Inc. (Jones) in 2008, which included the construction of a stormwater facility by Jones to accommodate 442 current and future lots in the Thayer Road Pond area. The cost of construction was to be reimbursed to Jones by future developers in the area to the extent that lots were issued a building permit within the life of the agreement.
Now, with the Development Agreement scheduled to expire in December of 2019, and with remaining potentially developable lots for which Jones could receive pass-through reimbursement, Jones desires to extend the term of the agreement. Under Oregon Revised Statute 94.504(8)(a), the maximum duration of a development agreement with a city is fifteen years, which would extend the agreement to March of 2023, however, Jones desires a longer period.
In order to facilitate a longer reimbursement period, a new agreement, where both parties provide consideration, can be executed. Along with extension of the reimbursement period, the City would like to discuss potential transportation improvements in the area with Jones. The amendment proposed with Ordinance No. 19-1017 would extend the term of the existing reimbursement period to December 31, 2020, and allow the City and Jones adequate time to negotiate an extended agreement.
BUDGET IMPACT:
Amount: N/A; the reimbursements are pass-through transactions
FY(s): N/A
Funding Source: N/A