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HomeMy WebLinkAbout8.2 Pastime Brew Sewer Capacity Assistor 19 82 /ii � 111 DATE: TO: FROM: SUBJECT STAFF REPORT CITY COUNCIL June 17, 2014 Honorable Mayor and City Councilmembers CITY CLERK File #1100 -65 Christopher L. Foss, City Manager " Request for Sewer Capacity Assistance Prepared by Hazel L. Wetherford, Senior Economic Development Analyst EXECUTIVE SUMMARY: The City received requests from Pastime Brew LLC (dba Three Sheets Craft Beer), Patxi's Pizza, and Great Harvest Bread Company to participate in the City's Sewer Capacity Assistance Program. Three Sheets Craft Beer is in contract to lease a commercial suite located at 7046 Village Parkway, Patxi's Pizza is in contract to lease a commercial suite at Persimmon Place, and Great Harvest Bread Company is in contract to lease a commercial suite at The Eclipse located at the Eastern Dublin Transit Center. All three businesses propose to use the assistance to offset the costs for their improvements. FINANCIAL IMPACT: If the City Council provides direction to Staff to proceed, there could be legal fees associated with the review of the agreements for sewer capacity. RECOMMENDATION: Staff recommends that the City Council, by motion, provide direction regarding the requests to participate in the City's Sewer Capacity Assistance Program. Submitted By Economic Development Director/ Public Information Officer DESCRIPTION: ', Reviewed By Assistant City Manager On May 4, 2010, the City Council adopted Resolution 53 -10 approving a Letter Agreement with the Dublin San Ramon Services District (DSRSD) for the Administration of Unused Sewer Capacity for the City of Dublin. Commonly referred to as the Sewer Capacity Assistance Program, the Program allows the City to market its excess sewer capacity as an economic development incentive program to help Page 1 of 3 ITEM NO. 8.2 stimulate economic growth in the community. The Program is designed to support large and small businesses and encourage the recruitment, renovation or re -use of properties in Dublin. The Program allows the City to provide a credit of the DSRSD sewer connection fees that would otherwise be paid by the applicant. The Program currently has approximately 29 unreserved Dwelling Unit Equivalents (DUE) available citywide and the available allocation per location is outlined in the below chart- Three Sheets Craft Beer Taproom The City received a request to participate in the program from Three Sheets Craft Beer, which is in contract to lease an approximately 2,900 sq. ft. commercial suite located at 7046 Village Parkway. Three Sheets Craft Beer Bar is a specialty craft beer taproom. DSRSD has estimated a requirement of 2.86 DUE for this tenant. Through the Program, Three Sheets falls within the Village Parkway District, and the City would be able to assist them with the full allocation (100 %) of approximately 2.86 DUEs (value- approximately $46,195 in DSRSD fees) of the approximately 29 DUEs of excess sewer capacity that the City has unreserved. The 2.86 DUEs is 100% of the 2.86 DUEs estimated by DSRSD. Patxi's Pizza The City also received a request to participate in the program from Patxi's Pizza, which is in contract to lease an approximately 2,500 sq. ft. commercial suite at Persimmon Place. Patxi's Pizza is known for their friendly neighborhood restaurant which specializes in fresh deep dish pizzas. DSRSD has estimated a requirement of 5.57 DUEs for this tenant. Through the Program, Patxi's Pizza falls within the Dublin Transit Center /Dublin Crossing designation, and the City would be able to assist them with the allocation of approximately 4.18 DUEs (value- approximately $67,419 in DSRSD fees) of the approximately 29 DUEs of excess sewer capacity that the City has unreserved. The 4.18 DUEs is 75% of the 5.57 DUEs estimated by DSRSD. Great Harvest Bread Company The City also received a request to participate in the program from the Great Harvest Bread Company, which is in contract to lease an approximately 1,865 sq. ft. commercial suite at The Eclipse. Great Harvest Bread Company is known for its healthy bakery which specializes in freshly - milled whole grain baking products from scratch as well as sandwiches and breakfast items. DSRSD has estimated a requirement of 2.25 DUEs for this tenant. Through the Program, Great Harvest Bread Company falls within the Dublin Transit Center /Dublin Crossing designation, and the City would be able to assist them with the full allocation of approximately 2.25 DUEs (value- approximately $41,782 in DSRSD fees) of the approximately 29 DUEs of Page 2 of 3 Greater than 5,000 sf -50% Greater than 5,000 sf -50% Greater than 5,000 sf -25% Greater than 5,000 sf -50% Greater than 5,000 sf -50% Fine Dining Between 3,500 and 5,000 sf- 75% Between 3,500 and 5,000 sf- 75% Between 3,500 and 5,000 sf -50 % Between 3,500 and 5,000 sf -75% Between 3,500 and 5,000 sf -75% 25% (Less than 3,500 sf- 100% (Less than 3,500 sf- 100% Less than 3,500 sf- 75% Less than 3,500 sf- 10)% Less than 3,500 sf- 1001 Greaterthan 5,000 sf 25% Greaterthan 5,000 sf -25% Greaterthan 5,000 sf -25% Greater than 5,000 sf 25% Greater than 5,000 sf 25% Casual Dining (Between 3,500 and 5,000 sf -50 % (Between 3,500 and 5,000 sf -50 % Between 3,500 and 5,000 sf- 25% Between 3,500 and 5,000 sf- 50% Between 3 50© and 5,000 sf- 50% 25% (excluding fastfood( (Less than 3,500 sf -75% (Less than 3,500sf -75% Less than 3,500sf -50% Lessthan3,500sf -75% Less than 3,500 sf 75% Greaterthan 5,000 sf -501 Greaterthan 5,000 sf -50% Greaterthan 5,000 sf -25% Greater than. 5,000 sf 50% Greater than 5,000 sf 50% Specialty Food (Between 3,500 and 5,000 sf -75 % (Between 3,500 and 5,000 sf -75 % Between 3,500 and 5,000 sf- 5)% Between 3,500 and 5,000 sf- 75% Between 3 50© and 5,000 sf- 75% 25% (Coffee, Dell, Bakery, etc.) (Less than 3,500 sf- 1001 (Less than 3,500 sf- 100% Less than 3,500 sf- 75% Less than 3,500 sf - 130% Less than 3,500 sf - 100% Greater than 5,000 sf -50% Greater than 5,000 sf -50% Greater than 5,000 sf -50% Greater than 5,000 sf -50% Greater than 5,000 sf 50% Enteitainment[Nightlife (Wine BarslTaprooms, etc.( Between 3,500 and 5,000 sf - 75% Between 3,500 and 5,000 sf - 75% Between 3,500 and 5,000 sf - 75% Between 3,500 and 5,000 sf - 75% Between 3,500 and 5,000 sf - 75% 25% (Less. than 3,500 sf - 100% (Less than 3,500 sf - 100! Less than 3;500 sf - 100% Less than 3;500 sf - 100% Less than 3,500 sf - 100% Three Sheets Craft Beer Taproom The City received a request to participate in the program from Three Sheets Craft Beer, which is in contract to lease an approximately 2,900 sq. ft. commercial suite located at 7046 Village Parkway. Three Sheets Craft Beer Bar is a specialty craft beer taproom. DSRSD has estimated a requirement of 2.86 DUE for this tenant. Through the Program, Three Sheets falls within the Village Parkway District, and the City would be able to assist them with the full allocation (100 %) of approximately 2.86 DUEs (value- approximately $46,195 in DSRSD fees) of the approximately 29 DUEs of excess sewer capacity that the City has unreserved. The 2.86 DUEs is 100% of the 2.86 DUEs estimated by DSRSD. Patxi's Pizza The City also received a request to participate in the program from Patxi's Pizza, which is in contract to lease an approximately 2,500 sq. ft. commercial suite at Persimmon Place. Patxi's Pizza is known for their friendly neighborhood restaurant which specializes in fresh deep dish pizzas. DSRSD has estimated a requirement of 5.57 DUEs for this tenant. Through the Program, Patxi's Pizza falls within the Dublin Transit Center /Dublin Crossing designation, and the City would be able to assist them with the allocation of approximately 4.18 DUEs (value- approximately $67,419 in DSRSD fees) of the approximately 29 DUEs of excess sewer capacity that the City has unreserved. The 4.18 DUEs is 75% of the 5.57 DUEs estimated by DSRSD. Great Harvest Bread Company The City also received a request to participate in the program from the Great Harvest Bread Company, which is in contract to lease an approximately 1,865 sq. ft. commercial suite at The Eclipse. Great Harvest Bread Company is known for its healthy bakery which specializes in freshly - milled whole grain baking products from scratch as well as sandwiches and breakfast items. DSRSD has estimated a requirement of 2.25 DUEs for this tenant. Through the Program, Great Harvest Bread Company falls within the Dublin Transit Center /Dublin Crossing designation, and the City would be able to assist them with the full allocation of approximately 2.25 DUEs (value- approximately $41,782 in DSRSD fees) of the approximately 29 DUEs of Page 2 of 3 excess sewer capacity that the City has unreserved. The 2.25 DUEs is 100% of the 2.25 DUEs estimated by DSRSD. Staff believes that the investment of sewer capacity at all three locations will further assist in the City's economic development efforts to bring high quality retail and restaurants to the Dublin community that will likely result in higher sales tax revenues to the City. Staff presented the requests to the Standing Economic Development Committee on May 12, 2014 and on June 9, 2014, and they were supportive of the requests. These requests fall under the Committee's purview to provide policy guidance and direction on economic development activities. The Committee is requesting that the full City Council consider the request. Staff is seeking City Council direction at this time before investing time and associated legal fees in drafting the necessary agreements. If the City Council gives direction to proceed with the allocations, Staff will prepare the necessary agreements between the City, DSRSD, and the property owner /applicant for the City Manager to execute per Resolution 53 -10 (Attachment 1). NOTICING REQUIREMENTS /PUBLIC OUTREACH: 1101 ATTACHMENTS: 1. Resolution No. 53 -10 Page 3 of 3 RESOLUTION NO. 53 -10 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN * * * * * * * * * ** APPROVING A LETTER OF AGREEMENT WITH THE DUBLIN SAN RAMON SERVICES DISTRICT (DSRSD) FOR THE ADMINISTRATION OF UNUSED CITY OF DUBLIN SEWER CAPACITY WHEREAS, the City Council of the City of Dublin (the "City ") is desirous of improving the economic viability of the community through the establishment of certain economic incentive programs; and WHEREAS, in an attempt to attract new businesses or retain and /or expand existing businesses that will provide additional jobs and generate additional tax revenues for the City, as well as for certain residential projects that will likely result in greater economic activity in Dublin, Staff is requesting City Council consideration of an agreement with the Dublin San Ramon Services District (DSRSD) that will allow the City to provide unused City sewer capacity rights to new and /or existing businesses and /or projects; and WHEREAS, the proposed program would require the City, DSRSD, property owner and applicant to enter into a agreement permitting the re- allocation of regional and local sewer capacity rights, and the agreement will be recorded with the Alameda County Recorder's Office, and WHEREAS, the City Council finds it is in the public interest to enter into this agreement because the City and its residents will benefit from increased revenues received from both sales tax revenue that it may not otherwise receive, and from the increase in the property taxes as a result of improvements to the property; and WHEREAS, the City Council further finds that the City and its residents may also benefit from the creation of new jobs in the City that will occur when a new business is established or an existing business is expanded; and WHEREAS, the City Council further finds that the City and its residents may also benefit from the creation of construction jobs created from residential projects that are developed. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby approve the Letter of Agreement with the Dublin San Ramon Services District (DSRSD) for the Administration of Unused City of Dublin Sewer Capacity (attached as Exhibit A). BE IT FURTHER RESOLVED that the City Manager is authorized to execute the agreement substantially in the form attached hereto and to undertake such action as may be necessary and desirable to carry out the intent of this resolution. Page 1 of 2 PASSED, APPROVED AND ADOPTED this 4th day of May, 2010, by the following vote: AYES: Councilmembers Biddle, Hart, Scholz, and Mayor Sbranti NOES: None ABSENT: Councilmember Hildenbrand ABSTAIN: None ATTES City Clerk Reso No. 53 -10, Adopted 5 -4 -10, Item 8.1 Page 2 of 2 Mayor DUBLIN SAN RAMON SERVICES DISTRICT Ms. Joni Pattillo City Manager City of Dublin 100 Civic Plaza Dublin, CA 94568 April 21, 2010 Subject: Letter of Agreement for the Administration of Unused City of Dublin Sewer Capacity Dear Joni: 3aG �2l 7051 Dublin Boulevard Dublin, California 94568 Phone: 925 828 0515 FAX: 925 829 1180 www.dsrsd.com As you are aware, at the request of the City of Dublin (City), on March 2, 2010, the Board of Directors of Dublin San Ramon Services District (District) adopted Resolution No. 9 -10 (Attachment A) authorizing the City to transfer unused sewer capacity allocated to City properties to commercial properties where the City would like to stimulate economic growth. The resolution requires a Letter of Agreement between the City and District to define the administrative procedures for the administration of the program. 'In addition, on April 20, 2010, the District Board of Directors adopted Resolution No. 14 -10 (Attachment B) authorizing the City to also transfer unused sewer capacity to residential development. Upon the City's approval and acceptance, evidenced by your signature below, this letter will serve as the required Letter of Agreement. The procedures for administering the unused capacity transfer program shall be as follows: • City shall provide to District Engineer, David A. Requa, a letter providing the name of (and contact information for) the applicant for the new, expanding, or relocating business (hereinafter, "commercial project ") or residential development project (hereinafter, "residential project" or collectively "project ") the City is supporting, the name of (and contact information for) the owner(s) of the property on which the project is located (if different than the applicant for the project) and the number of dwelling unit equivalents ( "DUEs ") the City desires to allocate to the project. • The District Engineer shall have the discretion to determine whether the number of DUEs the City desires to allocate to the project are consistent with the wastewater flow characteristics, including volume and strength in terms of BOD and SS, for the proposed use. Such determination will be based, in the sole discretion of the District Engineer, on Dublin San Ramon Sendces Distnct is a Public Entity EXHIBIT A Ms. Joni Patillo Page 2 April 21, 2010 yy 4 • information concerning the wastewater flow characteristics provided by the Applicant, and/or on a schedule of wastewater flow characteristics for the category or categories of use classifications determined by the District Engineer to be most applicable to the proposed use. • The Applicant shall be responsible for complying with the District Code' with respect to commencing wastewater service, including the acquisition of all additional DUES determined to be necessary, the application for a Sewer Permit and compliance with all conditions thereto, and for paying all fees and charges attributable to the project. • Prior to and as a condition of District issuance of a Sewer Permit authorizing a commercial project to proceed, City shall sign an agreement with the District, the applicant, and the landowner (if a person different from the applicant) regarding management of the DUEs allocated for the project, which agreement shall be in the form attached hereto as Attachment C, which form of agreement shall be revised to conform to changes made from time to time to pertinent portions of the District Code. • City shall provide District written notification should the applicant's commercial project fail and the City desires to transfer the allocated DUES back to the City from the owner of the property. • The aggregate total of DUEs allocated under this program shall not exceed sixty -six and two- thirds (66 2/3) DUEs at any time. No letter request dated after December 31, 2011 by the City to allocate DUES will be honored by District unless approved by the District Board of Directors. If this Letter of Agreement is satisfactory to the City, please sign and return one copy to the District. The District is pleased to have this opportunity to assist the City in these challenging economic times. ACCEPTED for CITY OF DUBLIN JONI PATTILLO City Manager Sincerely, /l A BERT L. MICHALCZYK General Manager Date 1. This is the District Code of the Dublin San Ramon Services District, which contains the pertinent rules and regulations as adopted by the District's Board of Directors from time to time. Ms. Joni Patillo Page 3 April 21, 2010 Attachments: (A) DSRSD Board Resolution No. 9 -10 (B) DSRSD Board Resolution No. 14 -10 (C) Dublin Sewer Capacity Transfer Agreement cc: D. Requa H' \FNGDF.Pllnent Item c\FNC'M -M 17I TRT rN\nl M All —t;—V .n , of A o.ne.. , _ n_kj; , r;.,.,t .t.,w a .. S� a i