Visalia Impact Fees On Front Burner
Commercial Development To See Lower Rate

Visalia - The Visalia city council will revisit an increase in commercial and office development fees imposed as recently as December after an outcry over how high the fees had been raised shook up city hall.

“They raised the fees something like 4 times the old rate and it was just too much” for business to swallow, says contractor Basil Perch.

“We had a lot of feedback,” says council member Greg Kirkpatrick, from local business people who argue the increase in fees changed the dynamic of projects they were working on - potentially a deal killer.

Visalia, like most cities, depends on commercial projects to increase jobs, sales and property tax revenues. “We are afraid the higher fees may end up being a disincentive to development,” says Visalia economic development director, Mike Olmos.

Most public of the cases was news from car dealer Don Groppetti that development of two new parcels on Ben Maddox for car dealerships would cost $1 million in transportation impact fees alone. “It’s just unbelievable,” says Groppetti.

The fees are based on the amount of traffic a project is expected to generate. “I am just moving a dealership down the block,” argues Groppetti, suggesting the fee is way out of whack regards the impact on traffic the showrooms will cause.

Olmos says council imposed the higher transportation impact fees December 17, 2004 based on the wish of the council to build out major streets ahead of development rather than wait for development to occur. The old policy on major streets had been that development on both side of the road would pay for outside road improvements and sidewalks with the city paying for inside lanes. That had a negative effect on higher traffic flows like on Caldwell where cars have to weave back and forth as the road changes from two lanes to four lanes, says Olmos.

To pay for a new policy to build out roads ahead of development the city imposed fees on different types of development including one fee for office and commercial, one fee for industrial and another fee for residential.

Olmos says the residential fee went from $1600 per unit to $3860 per unit.

But if commercial and office is about to be reduced the city will have to look to make up the shortfall from other types of development, suggests Kirkpatrick, that could be higher rates for residential development, he believes.

Olmos says the council will have to wrestle with whether they should change the road build-out policy or seek other sources of revenue.

Also on the February 22 agenda are expected higher fees for Parks and Recreation, Police and Fire, a new fee on General Facilities imposed on new building permits (see other story).

On the credit side, council is looking at a possible decrease in impact fees on projects planned in the case of in-fill development, says Olmos, since the streets, sewer and infrastructure are already in place. Just how in-fill development will be defined isn’t clear yet, says Olmos. But such a credit could increase development in the core area of the city rather than the outskirts where new infrastructure is typically needed.

On the agenda also is a possible multi story impact credit that could help increase the density of urban development here as an incentive to avoid sprawl.

City manager Steve Salomon says the city faces “ a tough challenge” in the case of road projects with a year-old estimate of a need to raise $200 million to build out planned roads with an increasing price of land and construction costs staring them in the face.

While many Visalians have waited what seems like decades for, Visalia property values to increase following the pattern seen elsewhere in the state. But now big increases in values - 30 to 50% by some accounts - joined with higher construction costs are now coming home to roost as jurisdictions like the city and school districts seek to pay for services, land and buildings with less support from both the state and federal government.

Kaweah Delta too, has the same problem announcing this week they would scale back expansion of their six-story tower because steel and concrete prices have raised the cost more than $30 million more than they had anticipated. Now they will dig into their reserves to fund fewer new beds than they wanted. The upshot - development costs are squeezing everybody. Like city impact fees - somebody will have to pay. Who knew that China’s appetite for concrete could mean higher health care bills in Visalia, California.

“California continues to fund the government’s budget shortfalls with our road money,” says Steve Salomon, and Bush’s new road plan calls for less money as well.

Growth may be making you feel better about the value your existing home has risen, but yet raising the cost of providing services here and may yet provide the incentive to slow that growth in the future because it becomes too expensive.

Visalia - All those rising home prices and land prices in Visalia may be good news for people who already own here. But for people coming in - expect to pay more in city fees when it comes to roads, parks, government buildings, police and fire. The city wants to increase fees to cover the costs of developing new facilities. Given the level of development cost increases here, the fees are having to be raised too, “There’s no free lunch” says council member Greg Kirkpatrick. “Development has to pay its way.”

At this month’s hearing on impact fees February 22nd council will take up transportation fees and three others, Parks and Recreation, Police and Fire, and General Facilities - the later being brand new.

Adding together Park and Recreation impact fees, police and fire impact fees and the new General Facilities impact fee, the proposal calls for raising the fee on a new single family home from its current level of $1119 or $2952 - almost triple.

City finance chief Eric Frost says the increase in fees is necessary “just to keep up” with current costs of acquisition and construction. For example, park land had been budgeted at $28,000 an acre in earlier fee schedule is now costing closer to $80,000 an acre. Add in the development costs, it comes to $120,000 an acres, says Frost.

The Police and Fire - Public Safety Impact Fee was first approved in 2001 generating about $800,000 in the past 2 and ½ years. Growth of the city means they need to fund $23.5 million in new facilities and $13.5 million in vehicles to be expanded in the next 6 years. They need to raise the fees to bring in nearly $19 million in the next 16 years. Due to county cutbacks in fire, the city expects it needs t move forward on funding two new fire stations in the northwest and southwest of the city. To fund all these the city is asking this fee jump for the current $191 per single family home to $632.

A city staff memo suggests even with the higher fee on single family homes the fees as a percentage cost of the home is in line with 2000 estimates. In 2000 the average house cost $147,000. In 2004 that has increased to $226,000. Adding together all city impact fees - not just these three - fees are $8980 or 3.9% of the average single family unit building permit including the land. About the same as it was in 2000.

Tulare - Tulare city council will meet this week in closed session and what it decides could help finalize plans for a third expansion of the Horizon Outlet center since the center opened in 1995.

“The outlet mall would like to expand,” says city manager Kevin Northcraft, “and they are working on design plans” assuming they can come to an agreement with adjacent property owner William Martin.

This will be the second time council has taken up the outlet mall issue in a closed door session. Tulare has a complex set of agreements with both Martin and Horizon over the future development of the outlet mall in town.

Martin is the property owner that actually solicited Horizon to come into Tulare locating on his old plum orchard and is arguably responsible for helping to build up Tulare’s big retail shopping magnet in the area near the outlet mall. Martin still retains 19.6 acres to the north of the center that Horizon is negotiating for, at least part of it.

This week the city council may make up its mind whether to come to an agreement with Martin over the future location for a 3 and ½ acre ponding basin that is now on Martin’s land right along Highway 99. Martin would like the ponding basin moved to the north allowing him to develop this part of his land and allowing the outlet mall to expand by 11 or 12 acres.

That would allow the mall to add about 110,000 sq ft of new stores opening about half of that by this coming holiday season.

They already have 170,000 sq ft of popular factory outlet stores like Gap, Liz Claiborne and Mikasa that draw thousands of visitors to Tulare from many miles away.

Martin says he is working with Horizon but needs the city’s help in relocating the ponding basin to a place “that makes more sense” to accommodate not just this development but other projects on the drawing board clear to Cartmill.

City manager Northcraft says all the interest in commercial development seen in the past year along 99 up to Cartmill has pushed demand. “Martin has multiple offers” for his property - about 16 visible acres just north of the outlet mall along 99.

But Northcraft says the city’s interest is to see expansion of the outlet mall because that would be best for Tulare. “Every other town around here has big box retailers but nobody else has a factory outlet mall.”

It’s how Tulare can generate extra sales tax dollars from out of town visitors.

Sources say Horizon is ready to build the next phase as soon as this spring with tenants to fill the space ready to go on 50,000 sq ft. Already the outlet mall has hired engineers to do a traffic study because they plan to change their approach into the mall. Also they are soliciting bids to do the design of the next phase despite the fact they have no contract as of yet.

Tulare developer Phil Mehan is also working with Martin on a location here for a new Boot Barn store and several restaurant pads next to the Galaxy Theatre.

Tulare County - Ivanhoe farmer Bob McKellar and partners have launched Family Farm Fresh which will begin delivery of fresh picked Tulare County produce to your front door starting March 1. A group of about 10 local family farmers have joined together to offer the new service designed to help the consumer get the freshest fruits and vegetables and local farmers a chance to cut out the middle man.

The idea has taken hold in other parts of the country - Community Supported Agriculture they call it.

McKellar was out of town this week, but office manager Mary Herndon says the group has already signed up some 60 households to take advantage of the service. “It is popular with many people who are short on time or can’t get to the Farmers Market in Visalia on Saturdays,” says Herndon, who also is the general manager of the Farmers Market.

Herndon says the assortment of some 12 to 14 produce items in bunches are delivered in a box no more than 24 hours after they are picked. A box like the one shown here cost $27 per week delivered with a minimum 4 week sign up. Discounts are available to customers signing up by the 28th of February and for customers who sign up for longer terms.

Herndon says there is also a one time $25 membership fee in the organization. But they’ll get that back at a free barbecue planned by the organization at the McKellar ranch March 6 at 32985 Rd. 164 near Ivanhoe.

Family Farm Fresh plans to deliver brown eggs from free range hens, cheese and olive oil in the near future. Produce items will change with the season with tree fruit coming in summer along with garlic, basil and grapes as an example. In winter look for vegetables, apples and oranges in your mix.

Family Farm Fresh doesn’t mind preaching to you about your diet. Their latest newsletter suggests “Mounds of evidence suggest that eating well balanced meals that include at least five servings of fruits and vegetables daily is part of a healthy lifestyle. The fruits and vegetables contain vitamins, minerals, fiber and yes - complex carbohydrates - not found in a pill from a bottle.”

Signing up as a Charter Member by February 28 also gives you additional discounts and a chance to enter a drawing for a free produce basket for the rest of 2005.

They also will tell you why community supported agriculture is important noting that “your money goes directly to a family farm. Every dollar of your share goes directly to the farm. A similar purchase at a supermarket may return a farmer as little as 20 cents on the dollar. By participating in our CSA you are supporting the farm’s year-round employees who are able to be paid steady and reasonable wages. Your financial support is a vote for family-based farms as the backbone of our agricultural production system.”

For more information about the program call 798-0557.

Construction Costs have raised the cost of Kaweah Delta's six-story tower from an estimated $106 million to $134.4 million and so the board this week decided to cut back the build-out of all six level to just four levels. Hospital administrators cited steel and concrete costs that have skyrocketed in the past year due to demand in the US and China. The increase in development costs are impacting the city of Visalia and VUSD as well as they struggle to deliver new facilities - like the new police stations - that have been on the drawing board (see front page articles). To fund the hospital expansion, the board voted to use reserves to move the project forward.

Tulare and Kings counties were low on a new statewide ranking of mental health by county. While some places like San Francisco has plenty of mental health providers, they rank lowest anyway due to the high value of emotional illness in the community. In the case of Tulare and Kings, the main factor in our low ranking appears to be the low number of providers for the population size, says the report done by the Petris Center. For example, the statewide average for psychiatrists are 14.5 per 100,000 population, while Kings County has just 1.58 per 100,000 - second lowest in the state and Tulare has just 4 psychiatrists for every 100,000 population. Tulare has just half the number of MDs compared to the state average, Kings just 40% of the state average. Kings has just over 2 psychologists for every 100,000 while the state average is over 30. Marin County has 145 for every 100,000. Counseling from Licensed Clinical Social Workers is more difficult in Kings County with just 25% the state average of providers per population.

The Visalia city council will hear alternatives on designs of the new Civic Center at their February 22 work session. The discussion led by consultant Bruce Race will determine if the new center will be urban or suburban, multi story, and if so how big and if the group favors an architectural style.

TCAG has submitted its road priorities to Congressman Devin Nunes for federal funding this coming budget year. Two priority projects included are the community Farm to Market program that paves rural roads in the county. Secondly, TCAG submitted a request for federal funds for Ave. 416 connecting 99 to Dinuba based on a high volume of traffic fatalities on the busy stretch of road. The request is for $15.4 million to widen the Tulare County portion of the road. In Kings County the request went to widen Highway 198 between Hanford and Highway 99 - a $63 million request through their new Congressman Jim Costa. With state transportation monies evaporating - jurisdictions have been eyeing federal sources for road funds. The House version of the transportation budget has been increased to $284 billion and is now supported by the President - potentially good news for California projects like these.

The annexation request by Packwood Creek developer Don Orosco is at the Visalia city planning commission this week and on to the city council on February 22. The annexation request is for nearly 54 acres that would come into the city as regional commercial. Orosco has filed a plan showing a large shopping center to the east of Lowes including a new 150,000 sf Costco and Costco gas station. The request will then be forwarded to LAFCO.

Also this week, owner of the current Costco Center filed plans with the city to put a bridge over Packwood Creek to line up the entrance to Lowes entrance off Cameron allowing you to go shopping center hopping without getting back on Mooney.

Bill Morgan is proposing a 160 unit multi family complex at Lovers Lane and K Rd. Morgan wants the city's planning commission to approve a density bonus on the project if he agrees to make available 27 units as affordable units dedicated for lower income people. The project would be permitted with just 123 units under the current zoning rules. The project would be 2-story. The apartments are one of the largest multi family proposals in town for some time. It is being heard by the planning commission this week.

Porterville got good news last week when the President's budget called for all of $8 million to begin design work on rebuilding Success Dam. "We're concerned given all the news that Corps of Engineer projects might not get funded this year," says Lower Tule Irrigation District general manager Dan Vink. Farmers on the Tule are getting just one third water supply for irrigation purposes over the next year until the dam is rebuilt to ensure the seismic safety of the current dam. Vink says water districts on the Tule will try to capture all the water released from the dam and other sources to recharge the aquifers. But he notes that the lack of surface water coming down the Tule in summer months is likely to have an effect on the aquifer particularly since farmers will be pumping more out.

Valley communities got $2000 less than the annual average in per capita in spending by the federal government, says a new Congressional report released this month. Even though the need may be greater, valley residents get less tax monies returning home than most people in the US. Congressman Devin Nunes used the report to point out the need to invest federal dollars in Highway 99. The valley is compared to Appalachia in many respects. A final report is due out in the next few months. It could lead to pilot programs for some severely impacted corridors, highlighting poverty like Highway 63 through Cutler-Orosi and Highway 99 from Traver to McFarland.

VUSD and its teachers will go into mediation on their contract dispute March 2. Teachers seek a raise and the district claims extending health benefits eats up increases in compensation they are offering.

Proteus on the chopping block in Bush's budget. The farm worker training program based in Visalia has been here before but has a tendency to survive.

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