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Hat Ranch sets new standard for growth fees
hat  ranch map
The location of the Hat Ranch project.

Hat Ranch was originally envisioned by Richland Communities a decade ago as an 800-home age restricted community with the existing 30,000-square-foot mansion converted into a clubhouse.

Once it was determined converting the mansion into a public use facility to meet earthquake standards was cost prohibitive, Richland went back to the drawing board.

They came up with an 800 plus home project that was slammed in packed meetings in 2015 as being somehow low-income, based on the density.

Now, eight years later, the project envisioned for 184 acres in southeast Manteca has been approved with less homes  —  738  overall.

And judging by the development agreement hammered out between the City of Manteca and Richland, the future buyers will be anything but low-income.

That’s because in addition  to having to qualify for homes with today’s construction costs buyers will also have to shoulder prices that absorb enhanced fees as well as cover ongoing community facilities district fees that are by far more expensive than neighbors that once panned the Hat Ranch as a low-income affair.

The Manteca Planning Commission on Thursday recommended that the City Council approve a development agreement with Richland that included an add-on $10,333 per home fee that provides:

*$2,000 (overall $1,476,000)  to fund a new police headquarters.

*$2,003 (overall $1,478,214) to fund a new fire engine.

*$1,500 (overall $1,107,000) to go toward Phase IV sewer expansion and help pay for the city’s wastewater management plan.

*$1,500 (overall $1,107,000)  that will go toward improvements of the city’s water, sewer and street networks beyond impact fees already charged.

*$1,600 (overall $1,180,800) to go toward the purchase of CNG powered solid waste collection trucks.

*$1,400 (overall  $1,033,200)  available for the council to use at their discretion.

The  $7.4 million fees upfront are in addition to existing growth-related fees including sewer and water capacity connections that requires the developer to pay between  $45,000 and $70,000 — depending upon the square footage and location of the home in reference to major street impacts — at the time they request a building permit for a house.

Richland also agreed to an overall community facilities district — in addition to a separate one for schools — to generate revenue above and beyond existing property and sales tax to help pay for an expansion of frontline police officers and firefighters.

It also covers future street maintenance needs for the neighborhood.

What that means, is the Hat Ranch streets won’t take away from street maintenance funds needed elsewhere in older potions of the city.

It is an ironclad obligation requiring those who purchase Hat Ranch homes when they are built or on the resale market in future years to essentially fund roughly one police officer and one firefighter using a community facilities district fee tax.

That’s on top of the public safety funds the 738 households would generate through property and sales tax.

As such, per home the Hat Ranch will deliver more revenue to the city’s coffers upfront and on an ongoing basis than any other project approved to date in Manteca.

In exchange, Richlands has a 15-year time window to build the project with an option to extend  it by five years.

 

To contact Dennis Wyatt, email dwyatt@mantecabulletin.com