Title
Department of Transportation recommending the Board receive information and provide input on items related to the Missouri Flat Master Circulation and Financing Plan Phase II. Staff recommending the Board:
1) Approve the draft Technical Memorandum 1-9 Summary of Net Fiscal effects of the project (Attachment B);
2) Receive a status report on the draft CEQA Initial Study findings for the project; and
3) Receive and file the updated MC&FP Phase II project schedule (Attachment C). (Est. Time: 1 Hr.)
FUNDING: Missouri Flat Master Circulation and Financing Plan Phase II Funds.
Body
DISCUSSION / BACKGROUND
The goals of the Missouri Flat Master Circulation and Financing Plan (MC&FP) Phase II are to:
• Accommodate the expansion of a vital commercial center in El Dorado County.
• Improve the County’s fiscal well-being.
• Establish the framework for revenue collection that will fund specific improvements identified in the Missouri Flat area.
• Allow for discretionary approvals of commercial development in the Missouri Flat area.
• Alleviate existing/projected traffic congestion.
The Board approved the original Missouri Flat MC&FP in December 1998. The MC&FP is comprised of a policy and action framework intended to relieve existing road deficiencies and create additional capacity for planned commercial development in the commercial area surrounding the Missouri Flat Road and Highway 50 interchange (Project Area). The MC&FP incorporated the following objectives:
• Alleviate existing traffic congestion.
• Create adequate capacity to meet County General Plan Level of Service (LOS) policy.
• Establish a vital commercial center in the County.
• Improve the County’s fiscal well-being.
• Establish the framework for revenue collection that would fund specific improvements identified in the Project Area.
• Construct improvements to Missouri Flat Road.
Originally envisioned as one funding plan, the MC&FP was subsequently divided into two phases after the November 1998 passage of Measure Y, which excluded certain improvements contained in the funding plan. Approval of the initial phase of MC&FP (Phase I) coincided with the approval of a number of commercial projects proposed for the Project Area, including Wal-Mart, the El Dorado Villages Shopping Center, and Sundance Plaza. Since 1998, a number of retail projects have been constructed in the Project Area, including Wal-Mart and the El Dorado Villages Shopping Center.
MC&FP Phase I limits commercial development in the Project Area to about 730,000 square feet. With approximately 500,000 commercial square feet constructed in the Project Area to date, current approved and proposed commercial projects in the Project Area exceed remaining capacity in Phase I. In addition, further development in the Project Area would require an updated evaluation of requisite transportation improvements, including the need for an ultimate highway interchange solution at Missouri Flat Road. These two factors have triggered the potential implementation of MC&FP Phase II. Numerous Board meetings have been held on the progress of the MC&FP Phase II project including those held on February 6, 2018 (Item 22) and March 28, 2017 (Item 37).
The predominant proposed MC&FP Phase II transportation improvement is the Missouri Flat Road Interchange Phase 2. At the February 6, 2018 meeting (Item 22), the Board selected as the preferred alternatives, the Diverging Diamond #1 and #2, and Hook Ramp options and directed staff to use these alternatives to develop the financing plan and allow these alternatives to be reconsidered during future studies. (See Attachment A for additional projects for MC&FP Phase II). Many of the proposed transportation improvements for MC&FP Phase II will be included in the updated Traffic Impact Mitigation (TIM) Fee program. Should the MC&FP Phase II not be approved, the TIM Fee program will increase predominantly in TIM Fee Zones 3 and 2, to cover the cost of these proposed improvements.
EPS has now completed TM 1-9, Missouri Flat Master Circulation and Financing Plan (MC&FP) Phase II Fiscal Impact Analysis (Attachment B) which examined whether the Project will generate adequate revenues to meet the cost of providing new development with County municipal services (e.g., general government, public protection, etc.). Additionally, the second objective was to quantify the net fiscal impacts to the County’s General Fund net of a maximum percentage of property tax and sales tax revenues generated by retail/commercial uses. These revenues may be used to help fund requisite capital improvements to support new development.
The conclusion was that Project development, both including and excluding all estimated property and sales tax revenues generated by Project development, is estimated to result in an annual net fiscal surplus for the County General Fund.
Ascent Environmental is preparing an Initial Study comparing the updated Project land use and transportation projects in MC&FP Phase II against the Approved Environmental Document for the MC&FP Phase I to determine the scope of CEQA review necessary to proceed with implementing Phase II. Some additional analysis is required to complete the Initial Study. This additional analysis is generally a function of CEQA requirements that have been added since the approval of the MC&FP Phase I EIR. After the Initial Study is complete, it can be determined if any additional environmental documentation is required. If an Addendum or Supplemental to the EIR is required, staff will process a new contract with Ascent Environmental to complete the work.
Attachment C is a schedule for the completion of the tasks to implement Phase II. Additional environmental work is included as optional tasks.
ALTERNATIVES
The Board could choose to not approve the draft Technical Memorandum 1-9, and could direct staff to consider other assumptions and methodology to estimate the net fiscal impacts of the project. It should be noted that this could impact the timeline for the MC&FP Phase II next steps, which would also affect the timeline for the Traffic Impact Mitigation fee accelerated major update process.
PRIOR BOARD ACTION
Outlined in the Discussion / Background section above.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Planning and Building Department
Economic Development Division
CAO
CAO RECOMMENDATION / COMMENTS
It is recommended that the Board approve this item.
FINANCIAL IMPACT
There is financial impact associated with this agenda item. As staff works through the next steps for the MC&FP Phase II project, overall financial impacts over the long term will be identified.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT
Economic Development and Infrastructure. The Phase II Study will determine the extent of additional demand for retail development in the Project Area and the necessary roadway infrastructure to support economic growth.
CONTACT
Rafael Martinez, Director
Department of Transportation