Council tables Liberty Business Park infrastructure-fee proposal after developers and landowners raise concerns

The Escalon City Council on March 12 voted to table consideration of a plan-area infrastructure impact fee and the Nexus study for the Liberty Business Park specific plan area after public testimony raised concerns about the fee’s assumptions and potential effect on development.

City planning staff and consultant Jalen French told the council the fee is intended to recoup infrastructure costs tied to the 2007 specific plan and to require new development to pay its proportionate share under the Mitigation Fee Act (California Government Code section 66000). The plan-area fee would direct funds from new development into a fund for roads, utilities and other infrastructure in the 78-acre plan area north of Highway 120.

Multiple council members said they supported the idea of ensuring developers pay for needed infrastructure but urged caution. One council member asked for more input from a proposed economic development committee and said the council should avoid rushing a long-term strategy that could discourage investment.

Matthew Weber, attorney for Weldway property owners Mr. and Mrs. Yates, urged the council to delay the fee. Weber said the Nexus analysis assumes buildout consistent with the 2007 plan — including hotels and large commercial footprints — that he called unrealistic today. He told council the proposed fee could require Mr. Yates to pay roughly $1 million into a fund that would not by itself allow the city to build needed infrastructure, potentially “tak[ing] money away from Mr. Yates” and discouraging development.

Other landowners and a land-use attorney also urged the council to recast the plan to reflect current market realities; one speaker recommended reviewing the ALH analysis submitted to council. Councilmembers expressed concern that parts of the fee — such as a $1 million line item for a water tower and a $400,000 sound wall — lacked clear explanation in the staff report.

The council considered procedural questions about an existing deferred utilities agreement for Weldway, adopted in 2022, which allows utilities extensions to be delayed under set triggers; staff said a plan-area fee, if adopted, would likely require revisiting that agreement.

After discussion the council moved to table the item to a future meeting to allow for further review and stakeholder engagement; staff said current entitlements and Deferred Utilities Agreement terms remain in effect and would not be immediately changed by tabling the fee. The council also asked staff to invite one or more developers and the property owners back to provide additional detail before any future action.

The motion to table carried by voice vote.