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Section 5

Program of Implementation Measures

5.10 Introduction

This specific plan has been adopted by City Ordinance and shall be utilized as a customized zoning diagram for the lands within the specific plan area, effective upon annexation of the North Star property.  Where specific regulations are included in this document they shall replace and supercede the prevailing zoning, land use, and development standards of the City of Grass Valley.  Where regulations are not included in this specific plan, the prevailing regulations of the City shall apply.

This specific plan may be amended in accordance with the City's prevailing procedure for amendment of the General Plan and/or Zoning Ordinance, including public hearings at both the Planning Commission and City Council level.  Amendments to the General Plan are by resolution and amendments to the specific plan are by ordinance.

All processing procedures for development permits, use permits, building permits, allowed uses, appeals, and all administrative procedures shall be in accordance with the prevailing standards of the City as applied to other properties.

This section addresses the cost of providing infrastructure to North Star Specific Plan area and describes how these necessary improvements will be funded.

5.20 Capital Improvement Program

The capital improvement program for the specific plan infrastructure is generally defined in Section 4.  Prior to occupancy of any development within the specific plan area, those portions of the required infrastructure needed to serve the development shall be installed to the satisfaction of the City of Grass Valley.   Preliminary cost estimates and financing options are discussed below.

5.30 Cost of Capital Improvements

The estimated cost of the specific plan capital improvements as described in Section 4 are tabulated in Table 5.1.  The contributions of the developer(s) to off-site capital improvements are estimated (in year 2003 dollars) in Table 5.2.  Developments within the specific plan area shall pay the prevailing AB1600 and development fees, less any credits for school and park dedications, and for actual construction of capital improvement program projects.

Table 5.1 Preliminary Infrastructure Cost Estimate (Year 2003 Dollars)
Infrastructure Item Description	Estimated Cost
Streets and Drainage	$ 17,000,000
Rear Alleys	1,600,000
Streets and Drainage  (off-site Smith/Crestview Extension and Freeman Lane, to be shared by other benefitting projects)	2,000,000
Trails (off-street only, the pedestrian walkways and near road paths included in street estimate)	500,000
Transit Stops	500,000
Water	5,000,000
Sewer	7,500,000
Drainage outside of streets and detention facilities	2,500,000
Underground Utilities, except Natural Gas	3,700,000
Natural Gas	1,500,000
Common Landscaping	2,500,000
TOTAL:	$ 44,300,000
Notes: 1.         Cost estimates do not include engineering, plan check, and inspection fees. 2.         Utility estimates do not include utility deposits or capacity charges, which can be substantial. 3.         Off-site improvement estimates do not include right-of-way acquisition costs.

Table 5.2 Preliminary NORTH STAR Development Mitigation Fees for Capital Improvements (Based on 2002-2003 Fee Schedule)
Capital Improvement Item	Estimated Fees
Regional Traffic	$2,000,000
City-wide Traffic	1,725,000
Police	550,000
Fire	2,000,000
Administration	850,000
Parks and Recreation	260,000
Schools	8,000,000
Drainage	550,000
Off-Site Road Circulation	2,000,000
TOTAL:	$ 17,935,000
Notes: 1. Water and Sewer capacity (hookup) fees are not included in the above detail. 2. The above fees for park and recreation, fire services, and for schools could be reduced by the value of land dedications in lieu of fees. 3. Traffic fees could be reduced if the developer completes actual construction of regional or city-wide traffic improvements.

5.40 Infrastructure and financing options

City's Capital Improvement Program

Under California law, the City annually updates its City-wide Capital Improvement Program (CIP) and related developer fee schedule.  The fees are often referred to as AAB1600 fees@ named after the State Assembly bill that authorized the fees.  The CIP includes a list of capital improvements or equipment acquisitions that must be undertaken in a fixed time period to serve new growth in the City.  From this information, fees are computed that new development will pay at the time of building permit issuance.  Capital improvements and fee calculations can be assessed in different zones of benefit within the City if necessary.  The current CIP is constant City-wide.  

If the project were built under the current fee schedule, it would generate approximately $17,935,000 in fees as outlined in Table 5.2 above.  Annexation of the subject land area and approval of the specific plan will trigger an update to the City's CIP and fee schedule, which could change the developer fees or focus fees to the project area as a zone of benefit.

Private Funding and/or Financing

All infrastructure described in Section 4, located within the boundaries of North Star, will be installed at the developer's expense.  Off-site improvements will be partially funded by the developer, on a pro-rata basis, shared with other benefitting future development.

As an example, the off-site access road known as the Smith/Crestview extension, connecting the project area to Highway 49 south of the McKnight Way interchange will be included in the City's Capital Improvement Program and development fees will be collected from all benefitting future development. 

Typically, the developer will utilize cash or private financing to phase-in infrastructure improvements to serve development within North Star.  This method of financing is the most commonly used throughout Western Nevada County.  The City of Grass Valley and other service providers shall approve the extent of infrastructure required for any development project.

Private Funding with Reimbursement

In some instances, the developer may practically be required to make public benefit improvements in advance of the City's collection of sufficient funds through development fees or other sources.  In such cases, the City and developer shall enter into an agreement providing that the developer shall be reimbursed for this work from other benefitting properties on a pro-rata benefit basis.

Public Financing

The developer may propose, and the City may sponsor, alternative public financing methods such as Mello-Roos or Assessment District Bonds.  However, past experiences with public financing in Wildwood Estates, Scotia Pines, and Whispering Pines have proven to be unsatisfactory.  It appears that the major problem with these projects was the absorption rate of improved parcels was over-estimated to the point that long term assessment payments created financial hardship for the developer.

Any use of public financing should be carefully scrutinized to make sure that property valuations, construction cost estimates, parcel sale absorption rates, and build-out pro-formas are carefully and conservatively prepared.  With such care, public financing options would prove to be satisfactory.

Grant Funding

Grant funding may be an option for limited infrastructure improvements.  As an example, the State of California's Community Development Block Grant Program (CDBG) might provide a grant or low interest loan to a project that either (1) provided affordable housing, or (2) created permanent Atarget income@ jobs.  This program sometimes allows for money loaned to be repaid the City and reused.  On the down side, this type of program requires considerable advanced planning, a competitive grant application, and on-going administration and monitoring.  Other sources of grant funding may be available for the restoration of historic buildings and the development of recreation facilities.

Subdivision Improvement Agreement

Subdivisions within North Star are allowed to benefit from the option that allows map recording prior to construction, if the developer first enters into a secured improvement agreement with the City of Grass Valley.  Under this standard procedure, a developer enters into an agreement with the City to complete all construction within twelve to  eighteen months of recording a subdivision or parcel map.  The developer also provides a financial guarantee to the City in an amount approved by the City Engineer.  If the work is not completed in time, the City may call in the financial guarantee and use the money available to complete the subdivision improvements.

5.50 Phasing of Development and Infrastructure

The development of infrastructure and creation of lots within North Star shall be generally consistent with the phasing plan described in Section 9, or as otherwise approved by the City of Grass Valley.

It is the intention of the specific plan that lands within the North Star Specific Plan will be developed based on free market demand.  The Specific Plan anticipates the development of different types and sizes of homes aimed at different target markets.  The developer, with City approval, reserves the right to phase the development in various locations to meet the prevailing market demand.  The extent of infrastructure for any given phase will be approved by the City as part of the tentative map, development permit, and/or use permit process.  These processes include opportunities for public review and comment.

Construction of the Smith/Crestview Extension off-site roadway will be timed to be constructed at the point in time where traffic generation triggers the need for the facility, as determined by the City of Grass Valley.

See Section 9 and the prevailing development agreement accompanying this Specific Plan for additional details on phasing of development and infrastructure.

5.60    Financing of Public Land Improvements

The specific plan designates several parcels for public use, including:

1. Land south of the Pelton Wheel and Glenn Jones Park for dedication to the City as an addition to the park.
2. Land surrounding the central shaft area to be offered for dedication to the City as a public park.
3. The North Star House parcel to be deeded to a mutually agreeable entity for the purpose of preservation and restoration.
4. The school site dedication to be deeded to the school district(s) for school expansion purposes.
5. Other park and open space areas as described in Section 3.57.

The property owners and future developer are not required to contribute financially to the planning or improvement of these parcels.  Improvement programs and funding options will be determined in each case by the entity receiving the dedication.  The value of the dedications themselves will be counted toward the estimated capital improvement mitigation fees outlined in Table 5-2.  North Star/Grass Valley LLC will retain architectural and site planning control of dedicated sites.

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