About 20 years ago, the Hollister City Council had the developer
of Crestview Estates and Valley View Estates build oversized sewer
facilities to accommodate future growth.
About 20 years ago, the Hollister City Council had the developer of Crestview Estates and Valley View Estates build oversized sewer facilities to accommodate future growth. Last week, the council acknowledged that it owes Hollister Development Associates nearly $1 million for the oversized facilities, and agreed to pay back the builder through a fee charged to future developments in the area.
That fee will start at $883 and will adjust with the interest rate of equal to the California Local Agency Investment Fund.
The issue goes back to 1991, when Hollister made the agreement with the involved partners building Valley View and Crestview estates on about 135 acres of Hollister’s southeast side.
The fee – which will be reimbursed to the developer when collected by the city – would affect future developers building units on the southeast side of Hollister and adjoining areas of San Benito County, according to a city report on the matter.
The fee was calculated by adding the construction cost, $560,196, with the interest amount, $374,282, and then dividing it by the estimated number of dwelling units that could connect to the system, with an average of four units per acre. For the purposes of a fee, a dwelling unit is estimated to generate 225 gallons per day, according to the city.
