Suisun to discuss California Forever agreement
The Suisun City Council will vote on a reimbursement agreement Tuesday evening that could see the city take another step toward annexing 22,873 acres of land owned by the development firm California Forever.
“The proposed development includes residential neighborhoods, industrial uses, open space, and infrastructure improvements,” the staff report from the council’s agenda explains.
The reimbursement agreement includes $3.5 million in public benefits to be paid within 30 days of a development agreement being signed, and could garner $6.5 million more on approval of the annexation from Solano Local Agency Formation Commission (LAFCO). The entire annexation effort will be funded by California Forever, and no burden is set to fall on taxpayers.
If the development moves forward with Solano County, and Suisun City declines a similar proposal, according to the agreement, California Forever would pay the city $1 million.
“California Forever agrees to reimburse the city for all reasonable costs incurred in processing CEQA documentation, annexation materials, and entitlement applications,” the staff report reads. “This includes consultant fees, legal services, and city staff time.”
That staff, according to the report would be made up partially of consultants and would answer to a Deputy City Manager with a proposed annual salary of $220,000.
“Based on preliminary and limited data currently available to staff, a conservative estimate indicates the need for a dedicated team of at least 10 to 15 professionals,” the staff report reads. “These individuals will bring expertise in land use planning, fiscal and financial modeling, infrastructure development, and environmental resource management and regulation.”
If the agreement is passed, California Forever will negotiate exclusively for annexation with Suisun City and Rio Vista for a minimum of one year. The reimbursement agreement will last three total years and can be terminated by either the city or the developer with 30 days’ notice. California Forever would also agree to indemnify the city from lawsuits due to the California Environmental Quality Act and “project processing,” and all disputes would be settled out of court.
“This agreement ensures the city is protected financially during the evaluation process and provides an opportunity to consider a large-scale development while preserving full discretion and regulatory authority,” the agreement reads.
The “Project”, as it is referred to in the agreement, will include a 5,726 “buffer zone” for Travis Air Force Base, 1,410 acres of Lambie Industrial Park and 15,737 acres of the Suisun Expansion Specific Plan. The project would see 15,000 residents by 2034, 50,000 residents by 2038 and 150,000 residents by 2048. Full buildout, reached in 2071, has no number associated with it, but would span both sides of Highway 113 and take up the majority of the space between Rio Vista and Suisun City’s current boundaries.
Rio Vista will engage in concurrent negotiations regarding 1,054 acres known as the Esperson Property, and could possibly also annex some of the property currently being planned for Suisun City. The two existing cities signed a Memorandum of Understanding earlier this year that expresses an intention to collaborate with one another on the annexation process and work together in good faith.
“Developer and City recognize that in connection with that potential annexation and entitlement process, the city of Rio Vista may desire to also expand further west and annex a portion of the proposed Project,” the agreement reads. “Developer and City agree to work collaboratively and in good faith with the city of Rio Vista regarding the respective annexations and entitlement processes.”
The agreement states four broad shared goals of the city and developer, the first of which outlines the use of a third party fiscal consulting firm and a public fiscal impact report prepared by that firm.
“The City and Developer recognize that any development must be fiscally sound, designed and financed in a manner that it pays the cost of municipal services, and produces a net tax surplus for the City,” the first goal reads.
The second goal binds the parties to provide “the greatest possible level of certainty and clarity” that the project will not draw resources from the city’s existing tax base, and that the project will provide a “net fiscal benefit” to improve services for existing Suisun City residents.
The third goal jointly commits to protecting Travis AFB, providing service members and their families with “housing, education, childcare, healthcare, and spousal employment.” The project will also include the aforementioned buffer area of over 1,500 acres to prevent encroachment.
Finally, the fourth goal outlines an agreement to “provide the earliest possible public benefits” to the city that the LAFCO and CEQA processes will allow. Possible uses of that funding include, but are not limited to, public safety, roadway and sidewalk improvement, city parks, marina improvements, and facade enhancements.
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