02 - Laserfiche WebLink

THE CITY OF 2 CITY COUNCIL AGENDA REPORT 2 pLEASANTON° September 4, 2012 City Manager TITLE: ADOPT A RESOLUTION REGARDING THE LOWER INCOME HOUSING FEE FOR THE MERCEDES-BENZ OF PLEASANTON EXPANSION (PUD- 81-30/PUD-85-O8) SUMMARY Mercedes-Benz of Pleasanton is currently constructing a new 72,150 square foot show room and service facility at its Owens Drive auto dealership. The project, involves the removal of existing facilities, including the former Chevys Tex Mex Restaurant, the relocation of auto dealership driveways and additional parking facilities. Once completed, the dealership will have improved customer and vehicular access, a consolidated design that improves the overall appearance and functionality of the site and additional capacity that may increase sales and service. Currently, all new and expansion commercial projects, are subject to payment of the City's Lower Income Housing Fee (LIHF). However, as part of the project's fee review, Mercedes-Benz requested a fee waiver of the Lower Income Housing Fee on the basis that the expansion will result in significantly fewer employees than the previous development, which included the former Chevys Tex Mex Restaurant. Staff reviewed the request and concurs that a waiver is appropriate and as such, this report recommends the fee be waived. The estimated LIHF for the development is $172,962 and total development fees without the LIHF are estimated at $459,600. RECOMMENDATION Approve the attached resolution waiving the Lower Income Housing Fee in the amount of $172,962 for the Mercedes-Benz of Pleasanton expansion project. FINANCIAL STATEMENT The Lower Income Housing Fund currently has a fund balance of $16 million. Approving the recommended fee waiver will not reduce the existing fund balance. However, denying the fee waiver would increase the fund balance by $172,962.