Elk Grove Scratches Out Check for $74k to Fast Food Giant

December 27, 2013 | In what amounted to a mis-classification resulting in an overcharge of road impact fees, the City of Elk Grove re...

December 27, 2013 |

In what amounted to a mis-classification resulting in an overcharge of road impact fees, the City of Elk Grove recently cut a refund check to the world's largest purveyor of fast food.

According to information posted to the December 13 Elk Grove City Council agenda, the city refunded McDonald's USA, LLC $74,893.50. Documentation obtained from the city reveal that McDonald's requested the refund claiming the city had misclassified the roadway impact fee levied on the fast food giant's newest Elk Grove outlet on Whitleock Parkway near the new Walmart store.

In a letter dated on September 16, 2013 from McDonald's area construction manager Efrain Corona, the fast food giant said that according to Heather Neff of the city's economic development department, the city charged road impact fees based on the established restaurant rate, not the shopping center rate it should have. Corona asserted the fee should have been $17,905 as it was part of the Walmart shopping center, not the $93,372 that McDonald's initially paid.

Interestingly, this is not the first snafu from the city regarding the area's newest McDonald's. Last month it was revealed this fast food store was not required to include outdoor trash cans as part of its design as the city does not explicitly require it.
 

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2 comments

Anonymous said...

Slow news day EGN? who really cares?

Anonymous said...

This is strange. The City's fee schedule on their web site shows the higher rate for a "restaurant with drive-thru". Have I eaten too many additive-filled big macs or am I hallucinating, but isn't that what this is???? I side with city staff on this and the city exec who overruled that staff, caved in, and let them off the hook should be sentenced to 30 days hard labor or a steady diet of big macs and fries for 30 days. Taxpayers to the rescue again!

To the poster above, it is not a slow news day any day the taxpayer's money is squandered for special interests, or greasing the skueeky wheel.

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