At least 125 construction jobs and 80 full-time health care positions are at risk if a local developer pulls the pin on an anticipated 110-room assisted living facility for seniors planned for the west side of town. The reason: fees assessed by the city for the project.
On Monday, Nov. 17, former Oakdale resident and current developer Patrick Corrigan and Erik Pilegaard of Oakshire Partners, LLC in Monterey asked the Oakdale City Council to reconsider certain city fees.
In January 2010, the city approved construction of a 119 residential unit senior housing project on 5.1 acres located at 1450 W. F St. The proposed project was planned to be an assisted living and independent senior housing community built in two phases.
According to Corrigan, in 2009 when he met with the planning department he was told the project was going to be charged $575,876 in city fees and permits. Due to the economy, the project was delayed and now he is being required to pay $2,414,213 in those same fees and permits to start the development.
“In the last five years, much time and money has been spent on creating a viable project that will enhance the City of Oakdale and its citizens,” Corrigan told City Manager Bryan Whitemyer in a Oct. 19 letter. “However within this time frame, the fees have more than tripled with an increase of $1,838,335!”
Corrigan said that he understands the city’s need for revenues, but the new fees structure adopted by the city has created a hardship on the viability of the project moving forward.
Corrigan asked the city that the park fees in the amount of $556,600 and the street fees in the amount of $312,730, totaling $869,330, be waived – a 46 percent reduction.
“The $2.4 million (including county costs) represents ten-percent of our project costs,” said Pilegaard when addressing the council. “Normally in California the costs for city and county fees and permits is only five-percent.”
Whitemyer claimed the current fee schedule for all development was adopted by the council in April, 2009 prior to Corrigan receiving approval for his project on January 6, 2010 and the fees have not changed.
Whitemyer also pointed out that the city would set a dangerous precedence by making fee reductions on a project-by-project basis and may create inequities for other projects or create a demand for fee reductions from other developers requesting the same treatment as Corrigan.
For the full story, read the Nov. 26 Oakdale Leader.