TITLE
Recommendation to increase appropriations in the Capital Projects Fund (CP) in the Department of Public Works (PW) by $625,000 for infrastructure improvements. (Citywide)
DISCUSSION
On December 21, 2004, the City Council authorized the City Manger to execute a Development Agreement (Agreement) between the City of Long Beach (City) and the McDonnell Douglas Corporation (MDC) in care of Boeing Realty Company (Boeing), for the development of Douglas Park. The Agreement allows for a mixed-use master planned community at 3855 Lakewood Boulevard (Douglas Park). In 2009, the Agreement was revised as an Amended and Restated Development Agreement with the Boeing Company to address the rezone north of Cover Street, which eliminated the residential land use and expanded the office, retail and light industrial funds land uses, rerouted bike paths, and reconfigured and relocated open spaces.
In October 2009, the Boeing annual staff report reflected compliance with the original provisions of the 2005 Agreement, which gave Boeing vested rights to develop Douglas Park with the permitted uses of land, and with the density and intensity of uses specifically set forth in the project approvals, which included a major component of public and private improvements, including major road improvements and other project infrastructure. Pursuant to the Amended and Restated Development Agreement, Chapter 8.46 states that Boeing will provide project contribution funds (infrastructure payments) payable at specific milestones.
The City has received an infrastructure payment of $625,000 from the Boeing Company in FY 10 for the recording of the amended and restated Development Agreement. The infrastructure payment will be used for citywide infrastructure repairs and will be divided equally among the nine Council Districts.
This matter was reviewed by Deputy City Attorney Linda Trang on August 18, 2010 and by Budget Management Officer Victoria Bell on August 23, 2010.
TIMING CONSIDERATIONS
City Council action on this item is requested on September 7, 2010 to facilitate the implementation of citywide infrastructure repairs.
FISCAL IMPACT
An appropriation increase of $625,000 is requested in the Capital Projects Fund (CP) in the Department of Public Works (PW). No matching funds are required and there is no impact to the General Fund. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
MICHAEL P. CONWAY
DIRECTOR OF PUBLIC WORKS
APPROVED:
PATRICK H. WEST
CITY MANAGER