Ponderosa gets extension on park fees Ponderosa gets extension on park fees (May 07, 2004)

Split council vote leaves door open for new arguments on lowering charges
by Dolores Fox Ciardelli

The City Council on Tuesday approved an extension for Ponderosa Homes to pay park fees on the 172-unit senior apartment it is building as part of the Busch Property project. The Gardens at Ironwood Senior Apartments will include 138 affordable units.

The developer had asked that the in-lieu park fees be waived, postponed or lowered to the rate charged when the project was OK'd in August 2002, rather than those that went into effect in April 2003. The amount is $606,000 vs. $1.4 million.

The City Council voted 3-1, with Councilman Matt Campbell absent, to postpone the fees until January 2005, but also left the door open for the developer to come back to the council to appeal for a lower fee. The postponement includes paying for lost interest earnings, estimated at $19,000.

Councilwoman Kay Ayala voted against the motion, arguing that the decision had already been made by a prior council and the item should be settled once and for all Tuesday night.

Mark Sweeney of Ponderosa Homes reported to the council that construction has begun, and the first building will be occupied by November. Ponderosa is building a park as part of the project, he noted, which includes 191 homes as well as the senior apartments.

"We have a 2-1/2-acre park," said Sweeney. "The seniors in this project in the affordable units will have access to that park and don't have to pay for it. The homeowners will pay for it. We will subsidize the park so they can use it."

"This project is over budget," he added. "We're enhancing the landscape ... and looking at making it as attractive as possible for the seniors." He also pointed out that the units will be affordable in perpetuity and rentals will be based on 50-60 percent of median household income, while other such projects have a time limit and are not as affordable.

The developer requested the postponement to coincide with payments from the project's tax credit investor, according to the staff report.

E-mail a friend a link to this story.