HomeMy WebLinkAboutItem 8.2 Stanforth Holding Sewer Cap Assistanceor
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DATE:
TO:
FROM:
SUBJECT
STAFF REPORT
CITY COUNCIL
September 3, 2013
Honorable Mayor and City Councilmembers
Joni Pattillo City Manager""'
CITY CLERK
File # 470 -50
Request for Sewer Capacity Assistance from Stanforth Holding Company, LLC
Prepared by Linda Smith, Economic Development Director
EXECUTIVE SUMMARY:
The City received a request from Stanforth Holding Company, LLC, owners of Grafton Station,
to participate in the City's Sewer Capacity Assistance Program. Stanforth proposes to use the
assistance to partially offset the costs associated with two future food tenants, Little Sheep and
the Dumpling Factory.
FINANCIAL IMPACT:
If the City Council provides direction to Staff to proceed, there could be legal fees associated
with the review of the agreement for sewer capacity.
RECOMMENDATION:
Staff recommends that the City Council authorize the allocation of sewer capacity to Stanforth
Holding Company LLC.
Submitted By
Economic Development Director
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
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 up to twenty -five percent (25 %) of the DSRSD
Page 1 of 2 ITEM NO. 8.2
connection fees that would otherwise be paid by the applicant. The Program currently has 14
unreserved Dwelling Unit Equivalents (DUE) available citywide and a reserve of 28 DUE in the
Downtown Specific Plan area.
The City received a request to participate in the program from Stanforth Holding Company, LLC
(Attachment 1), who is the owner of the Grafton Station shopping center. The City Council is
being asked to consider this request seeking sewer capacity assistance to offset costs
associated with the tenant improvement costs for two new proposed restaurants, Little Sheep
and the Dumpling Factory.
Little Sheep is a family -style restaurant planning to occupy approximately 4,130 sq. ft. and will
serve Hot Pot similar to Japanese Shabu - Shabu. Their concept is fresh and healthy eating.
This will be their fourth location, with successful restaurants in San Mateo, Union City and
Cupertino.
The Dumpling Factory (aka: New Shanghai) will consist of approximately 6,600 sq. ft.,
including private dining rooms with the ability to accommodate anywhere from 18 to 40 persons.
The restaurant will serve healthy, high -end Shanghai food and authentic Xio Lung Pao,
commonly known as steamed dumplings.
Through the Program, the City would be able to assist Stanforth with the allocation of between
five or six DUEs (value: approximately $ 80,000 to $96,750 in DSRSD fees) of the 14 DUEs of
excess sewer capacity that the City has unreserved citywide.
Staff believes that the investment of sewer capacity at this location 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 recommends that the City Council authorize, by motion, the allocation from the City's
excess capacity. Prior to permit issuance, 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 2).
NOTICING REQUIREMENTS /PUBLIC OUTREACH:
1101
ATTACHMENTS: 1. Letter from Stanforth Holding Company, LLC
2. Resolution No. 53 -10 Approving a Letter of Agreement with the
Dublin San Ramon Services District (DSRSD) for the Administration
of Unused City of Dublin Sewer Capacity
Page 2 of 2
Stanfoith Holding Company, LLC
July 30, 2013
Linda Smith, Economic Development Director
City of Dublin
100 Civic Plaza
Dublin, CA 94568
Re: Sewer Capacity Assistance Program
Grafton Station Shopping Center
Dear Linda:
We are seeking to participate in the City of Dublin's Sewer Capacity Assistance Program for new
restaurant locations at the Fallon Gateway Shopping Center. We currently have leases signed
with two (2) restaurants in need of additional sewer capacity as follows:
Little Sheep 9.2 DUE's
The Dumpling Factory 14.74 DUE's
Total 23.94 DUES
We understand that, if approved, the City could provide us a credit of 25% of the DSRSD sewer
connection fees for these businesses.
Id you have any questions or need any additional information, please feel free to contact
tn(925) 463 -1666.
ly yours,
m
M
�Y40�80 GRAFTON STREET, SUITE 2001, DUBLIN, CA 94568�LA9�9�
TEL: 925- 463 -1666 FAX: 925 -463 -1861
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
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