Oakdale approves $2.86 million reimbursement agreement for F Street Corridor infrastructure

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

Staff said Tesoro Homes installed D Street improvements (curb, gutter, sidewalk, pavement and landscaping) as a condition of its development; the developer is now eligible for reimbursement as other properties in the plan area develop and pay established fees. The reimbursement agreement totals $2,856,246.60, to be paid from collected capital facilities fees (CFF) and plan-area fees (PAF): approximately $999,000 (about 35%) from CFF and about $1,800,000 (about 65%) from PAF. Staff provided a cost exhibit breaking the total into project components: roughly $2,200,000 for streets, $265,000 for water, $131,000 for sewer and $211,000 for storm drainage.

Staff said the funds to reimburse the developer derive from fee revenue already designated for capital reimbursement and do not come from the city general fund. Council members asked procedural questions about timing and prior practice; staff said the city has used similar reimbursement structures previously for developers who install infrastructure benefiting later development and that the agreement formalizes when and how reimbursement occurs as related properties are built and fees collected.

A roll-call vote approved the agreement 4-1; Council member Petassi voted no. Staff told council the agreement does not change prior conditions of approval for other developments and noted credits already applied against previously paid fees.