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HomeMy WebLinkAbout20-Development Services CITY OF SAN BERNARDINO REQUEST FOR COUNCIL ACTION From: Valerie C. Ross, Director Subject: Resolution relating to deferral of certain C development impact fees for single family Dept: Development Services residential development. Date: February 26, 2008 MCC Date: March 17,2008 Synopsis of Previous Council Action: 1996. The Mayor and Common Council adopted a fee deferral program (Reso. No 96-66). 1999. The Mayor and Common Council adopted a fee deferral program ( Ord. No. MC-1045). February 21, 2008. The Legislative Review Committee recommended adoption of a development impact fee deferral program. Recommended Motion: That said resolution be adopted. c ~ t. KI#- Valerie C. Ross Contact Person: valerie C Fo" Phone: 5357 Supporting data attached: Staff Report & Reso. Ward: Citywide FUNDING REQUIREMENTS: Amount: $ N/A Source: Acct. Description: Finance: Council Notes: c Agenda Item No. ~ 3/17/D8 '" S ~: c c c CITY OF SAN BERNARDINO REQUEST FOR COUNCIL ACTION STAFF REPORT Subject: Resolution relating to deferral of certain development impact fees for single family residential development. Background: On February 21, 2008, the Legislative Review Committee considered a "Housing Market Economic Stimulus Package" proposal from the Baldy View Chapter of the Building Industry Association (BIA). Staff was asked to return to LRC with recommendations on most of the requests, but asked to go forward to the Mayor and Common Council with the fee deferral proposal. Requesting that payment of development impact fees be deferred until final inspection or a specified period of time, as opposed to collecting up front with issuance of building permits is not that unusual. In 1996, the Mayor and Common Council adopted a similar program to help stimulate single family residential development. That program was in effect for a year. In 1999, the Mayor and Common Council again adopted a fee deferral program that was later repealed. Homebuilders must borrow money for the land, engineering, testing costs, plan checking and permit fees, and development impact fees, not to mention the materials needed to build the houses and infrastructure. They must pay interest for the entire time that they borrow the money. The builder cannot pay the bank back until they get cash flow by selling homes. If they must pay the development impact fees to a city before they sell houses, the cost of the house will naturally increase, since the interest adds an end cost to the project. If the City allows homebuilders to defer payment of development impact fees until later in the process, the homebuilder will not have to borrow money for those up front, thereby reducing the end cost of a home. The fees recommended for deferral include those listed below. This program would allow the deferral of these impact fees until the release of utilities is issued or eighteen months from the issuance of the Building Permit, whichever is less. The developer/applicant would pay the impact fees in effect at the time of collection of fees. The program would include single family residential subdivisions of five or more houses/lots. . Law Enforcement Facilities, Vehicles, and Equipment . Fire Suppression Facilities, Vehicles, and Equipment . Regional Circulation System . Local Circulation System . Quimby Act Parkland and Open Space Acquisition and Park Improvement . AB 1600 Parkland and Open Space Acquisition and Park Improvement . Library Facility and Collection . Public Meeting Facilities . Aquatics Facilities . Storm Drain Development 2 c c c Staff will also be proposing an administrative processing fee to be paid at the time of payment of the deferred fees. That will require a public hearing and staff will be processing that item separately. Development Services and the City Clerk's Office prepare, process, and record the agreement with the homebuilder related to fee deferrals. Financial Impact: No impact to the City. Recommendation: Adopt Resolution. 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AMENDING RESOLUTION NO. 2006-97 RELATING TO THE DEFERRAL OF CERTAIN DEVELOPMENT IMPACT FEES. BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1: Resolution No. 2006-97 is hereby amended to add Subsection C to Section 3 of Resolution No. 2006-97, to read as follows: "C. For the construction of new single-family homes in subdivisions of five or more lots or parcels, the following fees may be deferred at the request of the owner of the property until the release of utilities is issued or eighteen (18) months from the issuance of the Building Permit, whichever is less: Law Enforcement Facilities, Vehicles, and Equipment; Fire Suppression Facilities, Vehicles, and Equipment; Regional Circulation System; Local Circulation System; Quimby Act Parkland and Open Space Acquisition and Park Improvement; AB 1600 Parkland and Open Space Acquisition and Park Improvement; Library Facility and Collection; Public Meeting Facilities; Aquatics Facilities; and Storm Drain Development. The owner of the property must personally guarantee payment of the fees, sign documents authorizing the City to place a lien on the property in the amount of the fees, agree to place the payment of the fees in any escrow for the sale of the property, authorize the City to demand payment in any such escrow, and pay an administrative fee set by resolution of the Mayor and Common Council. The amount of the fees due shall be the amount in effect at the time of collection of the fees. In no event shall utilities be released until the fees are paid, except that electrical service may be released at the discretion of the building official where necessary for security or maintenance purposes." -#- JD 03-- 17-0~ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AMENDING RESOLUTION NO. 2006-97 RELATING TO THE DEFERRAL OF CERTAIN DEVELOPMENT IMPACT FEES. I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a meeting thereof, held on the day of , 2008, by the following vote, to wit: Council Members: AYES NAYS ABSTAIN ABSENT ESTRADA BAXTER BRINKER DERRY KELLEY JOHNSON MC CAMMACK City Clerk The foregoing resolution is hereby approved this day of ,2008. Patrick J. Morris, Mayor City of San Bernardino Approved as to form: JAMES F. PENMAN, City Attorney By:L 1,~ () 2