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Kaiser Fiscal Impact and Development Agreement 3 April 5, 2010 Update on the Development Agreement: Using the results of the Fiscal Impact Analysis as well as existing City policies for development, staff and Kaiser have been working to negotiate the term of a development agreement for the project. Although terms have not been finalized, some general points of agreement thus far are as follows. • It is appropriate for Kaiser to make a payment to a Community Impacts Fund to mitigate the fiscal impact of the Medical Center during the period between the opening of the first phase of the medical project and the completion of the retail project. Current estimates indicate that the Medical Center will open in 2014 with the retail development being completed a few years after. The amount of this payment will be based on the Fiscal Impact Assessment, but may also take into account the economic benefits of the project that the fiscal study did not consider. It is anticipated that this payment will mitigate five to six years of negative fiscal impact. • Kaiser's previous contribution of roughly $5 million toward the Marina interchange project has been deemed adequate to mitigate the impacts of the project, consistent with prior traffic analyses. • Given Kaiser's previous contribution to the Marina interchange project, EIR mitigation measures requiring construction of local street improvements, and Kaiser's willingness to participate in an assessment district to fund the maintenance of local infrastructure, a Development Fee for Streets and Infrastructure (DFSI) payment will not be required. However, the City will calculate the DFSI fee that would have applied to the project and Kaiser will pay an equivalent amount into the Community Impacts Fund. • Kaiser will pay all other City fees and charges consistent with existing City policies. • Kaiser will pay $655,877 to the City earmarked for the purchase of heavy rescue fire apparatus suited to serving the Project, consistent with any analysis by ACFD. • The City will provide vested entitlements for Phases 1 and 2 of the Medical Center for 25 years, and for the retail project for 15 years. • Nothing in the Development Agreement will negate the need for additional CEQA analysis for future phases of the project, consistent with applicable state laws and regulations. Attachments Draft Fiscal Impact Assessment for the Proposed Kaiser Permanente Medical Center prepared by Keyser Marston Associates, Inc., March 2010. G:\OBD\Files RDA\WSL-MacArthur Area\Kaiser Permanente Medical Center\Municipal Services Agreement\4-5-10 Agenda Prep\Staff Report. Info Only. doe