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Soledad approves five-year deferral of development-impact fees to attract Marketplace retailer
Summary
The council approved a five-year deferred development-impact-fee agreement permitting Wood Investments to pay approximately $173,000 in impact fees over five years (payments start at certificate of occupancy) to support a prospective Ross store at the Marketplace. Staff said the deferral is structured as a repayable arrangement with interest (LAIF or 3% whichever lower).
The Soledad City Council approved Resolution 6370 on June 10, authorizing staff to negotiate and execute a deferred development-impact-fee agreement with Wood Investments Company Inc. to support a proposed retail development at the Marketplace site.
Economic Development Director Vatrice Truhir told the council the city received a confidential financial review under a nondisclosure agreement and concluded a fee deferral could materially improve project feasibility given current market conditions. Staff proposed a five-year repayment schedule with monthly payments starting when the developer obtains a certificate of occupancy; the total deferred amount was presented in staff materials as $172,948 (rounded in presentation to $173,000 for clarity). The interest rate is proposed as the Local Agency Investment Fund (LAIF) rate or 3%, whichever is lower.
Peter Orlando, representing the developer and Ross stores, said construction and financing markets remain challenging but that Wood Investments has experience with similar Ross transactions and is actively negotiating a lease. He told council that, if approved, the parties could close escrow within roughly 60–90 days and accelerate plan revisions and permitting.
Council members asked staff to confirm that the arrangement is a deferral rather than a waiver (staff emphasized it is a repayable deferral, not a gift), and discussed prevailing-wage triggers; city staff explained that prevailing-wage requirements would attach only if the city provided a direct subsidy or public-construction funding, which this deferral structure would not do. The council voted to approve the resolution with no objections recorded.
What’s next: Staff will finalize the agreement details with standard protections (repayment schedule, interest, and default remedies), and the developer expects to continue lease negotiations with Ross and proceed toward escrow and permitting if financing conditions remain favorable.
