Oakdale approves $2.856 million reimbursement agreement with Tesoro Homes for F Street Corridor infrastructure; vote 4-1

The Oakdale City Council on Feb. 18 approved a capital facilities fee and plan-area fee reimbursement agreement with Tesoro Homes Inc. to repay infrastructure costs installed in the F Street Corridor specific plan area.

City staff said the developer installed public infrastructure — curb, gutter, sidewalk, pavement, landscaping, water, sewer and storm drainage — that benefits subsequent development in the specific plan area. A finance plan established a total reimbursable cost of $2,856,246.60. The staff presentation showed an allocation of approximately 35% of the total (about $999,000) to be reimbursed from capital facilities fees (CFF) and 65% (about $1,800,000) from the plan-area fee (PAF).

Staff explained that the reimbursement uses developer-paid fees and future fees collected from additional residential development in the area to repay the developer for improvements that will also benefit other property owners. "This is a practice that the city has done previously," a staff member said, citing prior developer reimbursement arrangements for major street infrastructure.

Council members asked several process questions, and one council member expressed concern about the decision to reimburse the developer; the roll call vote was 4-1 in favor, with Council member Petassi voting no. The motion establishes a framework for credits to the developer as additional lots are developed and fees are collected.

Staff provided a breakdown of the improvements: roughly $2,200,000 for streets; $265,000 for water; $131,000 for sewer; and $211,000 for storm drainage, summing to the $2.856 million total shown in the staff exhibit. Staff said the agreement does not affect the city's general operating fund; reimbursements are expected from specific fee collections and credits tied to future building permits.