HomeMy WebLinkAboutItem 4.06 Sewer Capacity Assistance Dublin Brewing Coor
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DATE:
TO:
FROM:
SUBJECT
STAFF REPORT
CITY COUNCIL
January 19, 2016
Honorable Mayor and City Councilmembers
CITY CLERK
File #1100 -65
Christopher L. Foss, City Manager �?14 "
Request to Modify Sewer Capacity Assistance for Dublin Brewing Company,
formerly known as Amador Station Bar & Grill
Prepared by Erin Steffen, Management Analyst
EXECUTIVE SUMMARY:
In Fiscal Year 2014 -15, the City Council allocated resources via the Sewer Capacity Assistance
Program to Amador Station Bar & Grill, to be used at 7400 Amador Valley Boulevard to offset
costs for improvement. Amador Station Bar & Grill has requested that the approval to enter into
the agreement be revised in the following ways: 1) relocate the allocation to the business' new
location at 7370 and 7372 San Ramon Road; and 2) revise the business name from " Amador
Station Bar & Grill" to "Dublin Brewing Company."
FINANCIAL IMPACT:
If the City Council provides direction to Staff to proceed, there could be minor legal fees
associated with the review of the agreements for sewer capacity.
RECOMMENDATION:
Staff recommends that the City Council, by motion, approve the request to revise the approval
for Dublin Brewing Company.
Submitted By
Economic Development Director/
Public Information Officer
DESCRIPTION:
"'� Reviewed By
Assistant City Manager
In May 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 2 ITEM NO. 4.6
stimulate economic growth in the community. The Program is designed to support large and
small businesses and to 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.
On July 21, 2015, the City Council approved a request by Amador Station Bar & Grill for four
Dwelling Unit Equivalents (DUE) (value: approximately $67,708 in DSRSD fees), to be used at
7400 Amador Valley Boulevard (Attachment 1). After the request was approved, the business
owner decided to move the location of the business to 7370 and 7372 San Ramon Road.
Additionally, the name of the business has been changed from " Amador Station Bar & Grill" to
"Dublin Brewing Company." In November 2015, the applicant submitted a request to revise the
allocation of the DUE to the new business name and location.
On December 4, 2015, Staff presented the request to the Standing Economic Development
Committee, which indicated its support for the change. The request falls under the Committee's
purview to provide policy guidance and direction on economic development activities. The
Committee has requested that the full City Council consider the request.
If the City Council gives direction to proceed with revising the DUE allocation, Staff will prepare
the necessary agreements between the City, DSRSD, and the applicant / property owner for the
City Manager to execute per Resolution 53 -10 (Attachment 2).
NOTICING REQUIREMENTS /PUBLIC OUTREACH:
1101
ATTACHMENTS: 1. July 21, 2015 Staff Report Requesting Sewer Capacity Assistance
2. Resolution No. 53 -10
Page 2 of 2
or r�(r
DATE:
TO:
FROM:
SUBJECT:
STAFF REPORT
CITY COUNCIL
July 21, 2015
Honorable Mayor and City Councilmembers
Christopher L. Foss, City Manager '
.i
Request for Sewer Capacity Assistance
Prepared by Hazel L. Wetherford, Business Manager
EXECUTIVE SUMMARY:
CITY CLERK
File # 600 -40
The City received requests from 7400 Amador LLC (dba Amador Station Bar & Grill) and East
Bay Enterprise Inc. (dba Firehouse Subs) to participate in the City's Sewer Capacity Assistance
Program. Amador Station has purchased the vacant property located at 7400 Amador Valley
Blvd. (located in the Downtown Specific Plan area), and Firehouse Subs has signed a lease for
a commercial suite at 5252 Dublin Blvd., Suite 530 (Persimmon Place shopping center located
in the Eastern Dublin Specific Plan area). Both 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, approve both 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.
Page 1 of 3 ITEM NO. 4.9
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
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 4.83 unreserved Dwelling Unit Equivalents (DUE)
available citywide and the available allocation per user type is outlined in the chart below:
Amador Station Bar & Grill
The City received a request to participate in the program from Amador Station Bar & Grill, which
purchased the vacant property located at 7400 Amador Valley Blvd. (located in the Downtown
Specific Plan area). Amador Station will be an approximately 3,873 sq. ft. casual dining
restaurant. DSRSD has estimated a requirement of 9.52 DUE for this tenant. Through the
Program, Amador Station falls within the Casual Dining user type and within the 3,500 sq. ft. —
5,000 sq. ft. category. Based on the above criteria, the City would be able to assist them with
up to 50% of their regional and local sewer fees; however, the Standing Economic Development
Committee's recommendation is to assist them with 4 DUE (value: approximately $57,708 in
DSRSD fees). This allocation of 4 DUE to Amador Station would leave an unreserved balance
of approximately 0.83 DUE in the Program.
Firehouse Subs
The City also received a request to participate in the program from Firehouse Subs, which has
signed a lease for an approximately 1,602 sq. ft. commercial suite at 5252 Dublin Blvd., Suite
530 (Persimmon Place shopping center located in the Eastern Dublin Specific Plan area).
Firehouse Subs is a family - friendly restaurant specializing in hot subs. DSRSD has estimated a
requirement of 2.12 DUE for this tenant. Through the Program, Firehouse Subs falls within the
Casual Dining (excluding fast food) user type and within the less than 3,500 sq. ft. category.
Based on the above criteria, the City would be able to assist them with up to 75% of their
regional and local sewer fees; however, the Standing Economic Development Committee's
Page 2 of 3
Greater than 5,000 sf - 50%
Fine Dining
Between 3,500 and 5,000 sf -
75%
Less than 3,500 sf - 100%
Casual Dining
Greater than 5,000 sf - 25%
(excluding fast food)
Between 3;500 and 5;000 sf -
5010
Less than 3,500 sf - 75%
Specialty Food
Greater than 5,000 sf - 50%
(Coffee, Deli, Bakery, etc.)
Between 3;500 and 5;000 sf -
7510
Less than 3,500 sf - 100%
EntertainmentlNightlife
Greater than 5,000 sf - 50%
{Wine Bars[Taprooms,
Between 3;500 and 5;000 sf -
75%
etc.)
Less than 3,500 sf - 100%
Amador Station Bar & Grill
The City received a request to participate in the program from Amador Station Bar & Grill, which
purchased the vacant property located at 7400 Amador Valley Blvd. (located in the Downtown
Specific Plan area). Amador Station will be an approximately 3,873 sq. ft. casual dining
restaurant. DSRSD has estimated a requirement of 9.52 DUE for this tenant. Through the
Program, Amador Station falls within the Casual Dining user type and within the 3,500 sq. ft. —
5,000 sq. ft. category. Based on the above criteria, the City would be able to assist them with
up to 50% of their regional and local sewer fees; however, the Standing Economic Development
Committee's recommendation is to assist them with 4 DUE (value: approximately $57,708 in
DSRSD fees). This allocation of 4 DUE to Amador Station would leave an unreserved balance
of approximately 0.83 DUE in the Program.
Firehouse Subs
The City also received a request to participate in the program from Firehouse Subs, which has
signed a lease for an approximately 1,602 sq. ft. commercial suite at 5252 Dublin Blvd., Suite
530 (Persimmon Place shopping center located in the Eastern Dublin Specific Plan area).
Firehouse Subs is a family - friendly restaurant specializing in hot subs. DSRSD has estimated a
requirement of 2.12 DUE for this tenant. Through the Program, Firehouse Subs falls within the
Casual Dining (excluding fast food) user type and within the less than 3,500 sq. ft. category.
Based on the above criteria, the City would be able to assist them with up to 75% of their
regional and local sewer fees; however, the Standing Economic Development Committee's
Page 2 of 3
recommendation is to assist them with the remaining unreserved balance of approximately 0.83
DUE (value: approximately $14,049 in DSRSD fees). This allocation of 0.83 DUEs to Firehouse
Subs would leave a zero balance in the Program.
Staff believes that the investment of sewer capacity at both 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 June 22,
2015, 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 recommends that the City Council, by motion, approve both requests to participate in the
City's Sewer Capacity Assistance Program. If the City Council gives direction to proceed with
the allocations, Staff will prepare the necessary agreements between the City, DSRSD, the
property owner, and the applicant for the City Manager to execute per Resolution 53 -10
(Attachment 1).
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
None.
1. 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 4t" day of May, 2010, by the following vote:
AYES: Councilmembers Biddle, Hart, Scholz, and Mayor Sbranti
NOES: None
ABSENT: Councilmember Hildenbrand
ABSTAIN: None
Mayor
ATTES
City Clerk
Reso No. 53 -10, Adopted 5 -4 -10, Item 8.1 Page 2 of 2
ON SRp
DUBLIN +
SAN RAMON
SERVICES ; � '01 [dieeo"_rrrr iy
DISTRICT
April 21, 2010
Ms. Joni Pattillo
City Manager
City of Dublin
100 Civic Plaza
Dublin, CA 94568
Subject: Letter of Agreement for the Administration of
Unused City of Dublin Sewer Capacity
Dear Joni:
-316
7051 Dublin Boulevard
Dublin, California 94568
Phone: 925 828 0515
FAX: 925 829 1180
wwwAsrsd,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 BQD and SS, for the proposed
use. Such determination will be based, in the sole discretion of the District Engineer, on
oub »n Sail Raman ;c:,ncc4 Disl ,ct is a A Uic Entity EXHIBIT A
Ms. Joni Patillo
Page 2
April 21, 2014
Y h� 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 tune.
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.
Sincerely,
BERT L. MICHALCZYK
General Manager
ACCEPTED for CITY OF DUBLIN
JONI PATTILLC Date
City Manager
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 Patilio
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
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