Report Prepared by: Leah Brown, Senior Planner, Development Services Department
Title
SUBJECT: Approval of a Fee In-Lieu Agreement with Devonwood Apartments, LP, for a One-Time Infrastructure Contribution of $579,415
REPORT IN BRIEF
Approval of a Fee In-Lieu Agreement with Devonwood Apartments, LP, for a One-Time Infrastructure Contribution of $579,415 in Lieu of Community Facilities District No. 2003-2, Special Taxes for APN 058-220-048, through June 30, 2039.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the Fee In-Lieu Agreement with Devonwood Apartments, LP, for APN 058-220-048, providing for a one-time infrastructure contribution of $579,415 and exemption from CFD special taxes following payment through June 30, 2039; and,
B. Authorizing the acceptance of funds; and,
C. Authorizing the City Manager to execute the agreement, subject to City Attorney approval as to form; and,
D. Authorizing the Finance Office to make necessary budget adjustments.
Body
ALTERNATIVES
1. Approve the agreement as recommended; or,
2. Direct staff to seek modifications and return to Council; or,
3. Continue the item for additional information; or,
4. Deny the agreement.
AUTHORITY
Charter of the City of Merced, Section 200.
CITY COUNCIL PRIORITIES
As provided for in the 2026-2027 Adopted Budget and the City Council’s Pro-Housing Policies.
DISCUSSION
Devonwood Apartments, LP, owns the affordable housing development commonly known as River Canyon Apartments at 1535 Devonwood Drive, APN 058-220-048. The development is within Community Facilities District (CFD) No. 2003-2, which was established to provide services funded through special taxes.
River Canyon Apartments opened to lower-income residents in 2025 and provides 156 affordable one-, two-, and three-bedroom units on approximately 5.90 acres on the south side of Devonwood Drive, between Loughborough Drive and Austin Avenue. The gated development includes five (5) three-story apartment building...
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