AGENDA TITLE:
title
Adopt a Resolution Authorizing the City Manager to Execute a Fee Payment Agreement for 1337 East Kettleman Lane (TRU by Hilton Hotel) (PW)
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MEETING DATE:
August 21, 2024
PREPARED BY:
Public Works Director
recommendation
RECOMMENDED ACTION:
Adopt a resolution authorizing City Manager to execute a Fee Payment Agreement for 1337 East Kettleman Lane (Tru by Hilton Hotel).
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BACKGROUND INFORMATION:
Lodi True, LLC (Owner) submitted a building permit application (No. B2022-0186) to construct a hotel on the property known as 1337 East Kettleman Lane (shown in Exhibit A).
Payment of Development Impact Mitigation (DIM) Fees ($319,118.33) is required as part of the building permit conditions. The Owner requested to enter into a Fee Payment Agreement with the City to allow payment of the DIM fees in fourteen (14) equal semi-annual installments ($27,580.66) plus interest over a seven-year period. Interest would be charged at the current Local Agency Investment Fund (LAIF) rate plus one percent (5.30%). The City Manager has authority to approve Fee Payment Agreements having a term of seven years or less, and up to a value of $50,000. Since the fee amount is more than $50,000, Council approval of the agreement is required.
The letter requesting the fee payment agreement (attached as Exhibit B) explains that the project can provide economic benefit to the Lodi community and that there is a significant financial need to defer the fee payment. Considering the positive economic impacts to the City, Staff recommends that the City Council authorize the City Manager to execute the Fee Payment Agreement for 1337 East Kettleman Lane (Tru by Hilton Hotel).
STRATEGIC VISION:
2A. Economic Development: Develop long-term economic development strategy.
FISCAL IMPACT:
The approved Fee Payment Agreement supports the successful completion of the Tru by Hilton Hotel, which will generate new revenues for the City. The interest earned by the City...
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