$1.3 MILLION FOUND TO HELP CITY PROJECT; COUNTY WILL CONTRIBUTE MORE FOR GOLDEN VALLEY ROAD.

Byline: Angela M. Lemire Staff Writer

An unexpected $1.3 million from Los Angeles County will ease the city's contribution to its planned $22 million Golden Valley Road construction project.

The county will contribute $4.2 million in special road district fees to Phase 1 of the project, according to county public works officials, who notified the city of its contribution last month. Having previously expected to receive $2.9 million from the county, the additional $1.3 million will reduce the city's planned general fund obligation for Phase 1 from $2.5 million to $1.2 million, city officials said.

County bridge and thoroughfare fees had accrued for the project prior to the city's formation in 1987, but to date had been unspent, Mayor Jo Anne Darcy said. Previous estimates were found too low after county officials discovered accounting errors, she added.

``It's certainly an important piece,'' said Steve Stark, director of administrative services. ``The additional money helps to fund the project, rather than borrow the money to complete the road. That's a big benefit to both the city and the citizens.''

Divided into three phases, funding for Golden Valley Road's $22 million extension from Soledad Canyon Road to Sierra Highway so far is planned as follows:

Phase 1, to run south from the future Via Princessa extension and intersection to Sierra Highway, is projected to cost $12.5 million for designs, right-of-way acquisitions and construction. Besides city and county contributions, the remaining $4.6 million will be raised through bridge and thoroughfare fees that the city demands of developers.

The city currently is negotiating with the William S. Hart Union High School District and Santa Clarita Valley Facilities Foundation to contribute to the construction of Phase 1. The Facilities Foundation plans to lease to the Hart District a high school site at the future Golden Valley Road/Via Princessa interchange.

Phase II, to run north from the future Via Princessa intersection to the former Bermite munitions plant property at Phase III, is projected to cost $3.85 million. Phase III, to link the northern expansion of Golden Valley Road with Soledad Canyon Road, is projected to cost $5.73 million.

Santa Clarita LLC, the owner of the Bermite property, has granted a right-of-way easement across a small portion of its property for Phase III.

Spirit Properties Limited - the developer of a 200-acre Santa Clarita Business Park proposed north of the future Via Princessa and east of the Bermite property - will contribute most funds for both Phases II and III, which are projected to cost a combined $9.5 million.

Spirit also has agreed to pay the city $5.3 million in bridge and thoroughfare developer fees and contribute half the administrative costs - about $35,000 - to buy bonds and form a special tax district to borrow funds for remaining infrastructure improvements. The remaining $3.2 million will come other past and future bridge and thoroughfare fees, Stark said.

A special tax levy to pay off that bonded debt would be assessed on all business properties to be subdivided within the future business park, according to Stark. The debt also would fund roughly $25 million for the construction of sidewalks, sewers and water lines to support the business park and surrounding community, city officials said.

The Santa Clarita City Council last month approved the formation of the community facilities district to initially be funded with up to $33 million in borrowed debt. Tuesday night the council authorized the issuance of the bonds.

Stark said he expects road construction on Phase 1 to begin by February and bonds to be issued in mid-January. The City Council is scheduled to award a construction contract for Phase 1 on Jan. 11 following a bidding process to end Dec. 29, he said.