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Developer would pay county $46.5 million for subdivision
9/22/2005 | by LARRY PARSONS, Herald Staff Writer
Developers of the 1,400-home East Garrison subdivision on Fort Ord would pay Monterey County an estimated $46.5 million for the project site over the next decade under a tentative development deal.
The proposed land price and other financial details for the flagship county redevelopment project at Fort Ord are outlined in a 197-page development agreement reached between negotiators for the county and East Garrison Partners. The document was released on the county Web site this week.
"I think we have a fair deal," Ron Lundquist, interim county public works director, said Wednesday. He was the lead county negotiator on the development deal during the past six months.
"We finally got a deal," said Keith McCoy, project director for East Garrison Partners. "We're happy with it. It's taken a while, but I think it's going to be a good project for everyone."
The proposed agreement is the last piece of a complete project package that will be considered by the Board of Supervisors on Oct. 4.
In addition to homes -- of which 30 percent would be produced at below-market prices -- the East Garrison project calls for a village retail center, a fire station, parks, an arts colony and historic district with about two dozen old Army buildings, and other features.
The project has been in the works for several years, but this spring, the frustrated developers asked the Board of Supervisors to directly intercede in the negotiations.
"It's just a really complicated project," McCoy said. "The county has never done a project like this. It was a big education for them and a big education for us."
So far, the East Garrison project -- which features a compact "new urbanism" design -- has met with widespread public support. In August, county planning commissioners unanimously approved the plan, saying it was the right project in the right location.
"This is an area we would like to see get developed. It's really the redevelopment of a portion of Fort Ord," Lundquist said.
If supervisors approve the project next month, construction would start next spring and the first homes could be on the market by 2008, McCoy said.
East Garrison Partners is composed of Woodman Development, William Lyon Homes and Urban Community Partners.
In an interview, Lundquist outlined major financial terms in the proposed development agreement. He said the deal calls for:
• East Garrison Partners to pay the county $1.5 million as an initial land payment. A much larger amount of money -- estimated by county consultants at $45 million -- for the land would be paid by the developers under a profit-sharing deal over the 10-year buildout of the subdivision.
"We believe it's a fair price," Lundquist said.
• A $3.5 million contribution from East Garrison Partners to help finance a fire station, sheriff's substation, library and other public facilities.
• East Garrison Partners to pay about $50 million in development fees to the Fort Ord Reuse Authority to help finance roads, utilities and other base reuse infrastructure.
• East Garrison Partners to put up $2 million toward the arts center-historic district.
• The county spending $5 million in property taxes created by the new development for the historic-arts district, $9 million to help finance low-cost housing and $5.5 million for public facilities.
• The county creating community facilities and services districts to finance and maintain about $20 million worth of public infrastructure through property assessments and special taxes.
In all, 30 percent -- or 420 -- of the homes will be priced below market rates -- 20 percent for low- and moderate-income households and 10 percent for workforce-level households.
"Every phase has to have a certain amount of affordable housing," McCoy said.
www.co.monterey.ca.us/
Go to: montereyherald.com to read the county's mission statement.
Read the full article at http://www.montereyherald.com/mld/montereyherald/news/12711973.htm
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