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Council approves up to $241,696 in impact‑fee reimbursement for Euseite Crossing improvements after debate
Summary
After discussion on whether the payment is discretionary or contractually required, Merced council approved up to $241,696 to reimburse (or credit) Euseite Crossing Shopping Center for public improvements fronting G Street. Staff said attachments to the agreement document the eligible items; council approved the appropriation unanimously.
Councilors voted unanimously on Nov. 3 to authorize execution of an impact‑fee credit/reimbursement agreement not to exceed $241,696 with the developer of the Euseite Crossing Shopping Center for right‑of‑way and frontage improvements.
City staff described the developer’s completed work at G Street frontage and a median and said the agreement includes line‑item exhibits and a phasing map documenting eligible work. In discussion, Council Member Smith pressed staff on whether the city was contractually obliged to reimburse the developer or whether the council retained discretion. “I do struggle with this — it feels like a little bit of a giveaway given that this impact was created by the development,” Smith said, while acknowledging that the city may be in a contractual position requiring reimbursement.
Staff responded that the city’s impact‑fee policy provides for reimbursement or credit when work benefits the broader public right‑of‑way and not exclusively the private project. A staff member summarized the reasoning: the developer’s off‑site improvements included medians and G Street frontage that “directly serve their particular project” but also enhance city infrastructure, and the agreement’s Exhibit B lists the improvements and budget.
Council members asked for clarification about which street segments were included (G Street vs. Euseite/Yuseimity Avenue) and staff confirmed the attached exhibit and maps show the G Street frontage as the reimbursable work. Staff also said the developer had paid previously assessed impact fees for earlier phases and the reimbursement applies to the eligible public portions of the improvements.
The council adopted the agreement and authorization for the reimbursement by motion.
Next steps: Staff will finalize contract language to correct any street‑name inconsistencies in the draft documents, incorporate the exhibit detail into the final agreement, and proceed with the payment or credit according to the approved terms.
