A public hearing concerning the proposed Provinsalia project has been scheduled for Feb. 12. The project proposes construction of several single family and multifamily housing units, a golf course, trail system, clubhouse and interpretive center east of Dam Road.
According to data provided by city staff and presented by Clearlake City Administrator Dale Neiman, the financial impacts the project is expected to have on city services are not adverse. Furthermore, the project is expected to result in an increase of sales and property tax revenues.
“Provinsalia will financially benefit the city because the services the city will have to provide will be substantially less compared to the rest of the community and it will produce higher revenues that will benefit the residents of the city who will not live in Provinsalia,” Neiman reported.
The two largest revenue sources for the city are sales taxes and property taxes. According to data provided by city staff, the city currently receives $99 per person in sales tax revenues and $54 per person for police services from Prop. P for a total of $153 per person. Assuming that the average household income for residents in Provinsalia is $61,000, the sales tax and Prop. P revenues would be $523 per person for Provinsalia.
“Therefore, Provinsalia would produce 242 percent more in sales tax revenues to support police and other governmental services,” Neiman states in the staff report concerning the project.
The average value of residential and multifamily units in Provinsalia is expected to be $240,000 per unit. Assuming such, the city would receive $240 per unit annually in property taxes. In a comparison study, staff looked at 90 homes on Uhl Avenue to determine the amount of property tax received by the city. According to staff the average property tax the city receives from the 90 homes is $79. Using this methodology staff projects that residents of Provinsalia would provide 204 percent more in property taxes to the city to help provide services compared to the average home in Clearlake.
Calls for police services are expected to be much less from Provinsalia than other parts of the community. During the last year and a half, 50 calls for service were reportedly received from residents who live north of Burns Valley Road, which staff sites as similar to the Provinsalia project. There were 2,070 calls for service reportedly received from the mobile home parks in the south part of the city on Old Highway 53. “This corresponds to 4,040 percent more calls for service between the two areas,” Neiman reported.
Provinsalia will be required to form a maintenance district that will require property owners to pay an annual fee to fully maintain the internal streets, Provinsalia Avenue off-site, the drainage facilities on-site, the trail system, the recreation area and a fire buffer area. According to city staff, as such there will be no financial impact on the city in terms of street and drainage maintenance.
The purpose of the public hearing is to allow members of the public to comment on the draft and final Environmental Impact Reports (EIRs). The project has been in the draft stage for several years. The Final EIR was presented in April 2008.
The Planning Commission has reviewed the information contained in those documents and is recommending that the city council certify the EIR as adequate, amend the General Plan, adopt the draft Specific Plan and rezone the property.
Documents related to the Provinsalia project are available for public review at Clearlake City Hall during regular business hours.
Contact Denise Rockenstein at drockenstein@clearlakeobserver.com or call her directly at 994-6444, ext. 11.
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