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REQUEST 6F~R COUNCIL ACTION
From: ROGER G. HARDGRAVE
Subject: Adoption of Verdemont Area Public
Works Infrastructure Financing
Plan
Dept: Public Works
Date: 9-21-89
Synopsis of Previous Council action:
9-15-89 -- Proposed ordinance relative to issuance of building permits
in Verdemont Area failed.
Recommended motion:
That a public hearing on the proposed Verdemont Area Public Works
Infrastructure Financing Plan be set for 10:00 a.m. at the Council
meeting on 10-16-89.
cc:
/'
Marshall Julian
Jim Richardson
Jim Penman
Supporting data attached:
Roger G. Hardqrave
Staff Report,
Ordinance & Resolution
Phone:
5025
Contact person:
Ward:
5
FUNDING REQUIREMENTS:
Amount:
N/A
Source: (Acct. No.)
(Acct. Oescriotion.)
Finance:
Council Notes:
75-0262
Agenda Item No. _.:15
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CITY OF SAN BE~RDINO - REQUEST:)OR COUNCIL ACTION
From: ROGER G. HARDGRAVE
Dept: Public Works
Date: 10-31-89
Subject: Hearing on the Adoption of :i-
nance Adding Chapter 15.73 L
San Bernardino Municipal C-:::e,
to Require Purchase of Develop-
ment Rights in Verdemont Area
Synopsis of Previous Council action:
09-15-89 Proposed ordinance relative to issuance of building
permits in Verdemont Area failed.
Public Hearing set fCV" 10:00 a.m. on October 16, 19.89.
Hearing continued to 11-06-89.
10-02-89
10-16-89
Recommended motion:
1. That a public hearing on the proposed Verdemont Area Public
Works Infrastructure Financing plan be closed.
2. Adopt Ordinance.
3. Adopt resolution
cc: Marshall Julian
Jim Richardson
Jim Penman
Gene Klatt
OA~/~
Si~t
Supporting data attached:
Roger G. Hardgrave
Staff Report,
Ordinance & Resolution
Phone:
5025
Contact person:
Ward:
5
FUNDING REQUIREMENTS:
Amount:
N/A
Source: (Acct. No.)
(Acct. DescriPtion)
Finance:
Council Notes:
75-0262
/ /- 0 ~ - $' I
Agenda I tem No.
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CITY OF SAN BEpOARDINO - REQUEST:jOR COUNCIL. ACTION
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STAFF REPORT
Page 1 of 2
Concern has been expressed about the absence of a
complete system of public works infrastructure improvements in
the Verdemont Area. In response to that concern, a Verdemont
Area Public Works Financing Plan has been developed to raise the
revenue to finance the installation of public works improvements
on the existing streets. This approach would allow the improve-
ments to be installed at this time, before the area is fully
developed.
Improvements will be installed as depicted on the map
included in the Financing Plan. The improvements include full
width paving (on the established grade), curbs and gutters,
sidewalk, street lights, water mains, sewer mains, and possibly
landscaping, drainage, parks and a fire station. These improve-
ments would basically be constructed on the existing quarter mile
grid streets. Construction of these improvements will
necessarily be done in phases, as funds and staff are available.
An Engineering Study has been conducted to identify the
necessary improvements and prepare an estimate of cost. It has
also been determined that, based upon the new General Plan, a
total of 3,100 additional dwelling units can be built in the des-
ignated Verdemont Area.
The actual number is expected to be somewhat less, due to
physical constraints that will not allow the General Plan
densities to be achieved.
The total cost of
estimated at $22.9 million.
for the development right
These fees will be increased
all required improvements has been
This equates to a cost of $7,369.00
for each Single Family Residence.
by 15% after one year.
Property owners in the Verdemont Area will be afforded a
tvlO week period, after adoption of the program, to purchase
development rights for their parcel (s) . After this period has
elapsed, any unsold development rights will be offered to the
general public. In the event 60% of all rights are not sold
within 90 days, the Mayor and Common Council will have the option
to proceed or to order a refund of monies collected and consider
alternate methods of financing the program.
The sale of development rights to the general public will
be subject to a recall provision, whenever they are needed for a
proposed development. Rights will be recalled on the basis that
the last sold will be the first recalled. Any person that has a
right recalled will be paid at the current rate.
10-31-89
75;0264
CITY OF SAN BEft:'ARDINO - REQUEST"JOR COUNCIL ACTIO..,
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STAFF REPORT
Page 2 of 2
A notice will be mailed to every property owner wi thin
the Verdemont Area. This action will advise them of the need to
acquire development rights in order to secure a building permit,
and the two week period for owners to purchase rights.
The key to a successful plan is to create an incentive
for property owners, and perhaps members of the general public,
to purchase development rights at this time. It appears that
some of the incentives would be:
1. Avoid annual 15% escalation in cost.
2. Guaranteed availability of water and sewer mains (in
quarter mile grid streets).
3. Avoidance of need to construct transition sections
(horizontal and vertical) on through streets.
4. Guarantee two means of dedicated and paved access
roads.
5. Improve response time for emergency vehicles.
6. Enhance marketability of new homes by improved
appearance and access.
7. Avoid more drastic measures.
We recommend that the public hearing be closed and that
the ordinance adding Chapter 15.73 to the San Bernardino
Municipal Code be approved.
10-21-89
75-0264
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9/21/89
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RESOLUTION NO.
RESOLUTION OF THE CITY OF SAN BERNARDINO ADOPT:::' ~HE
VERDEMONT AREA PUBLIC WORKS INFRASTRUCTURE FINANCING PLAN.
RECITALS
WHEREAS, the Verdemont Area is e~~periencing a rapid rate
of development: and
WHEREAS, the existing public works infrastructure system
was installed many years ago to serve the few low density
residential units in the area; and
WHEREAS, the existing streets are not paved to the
planned ultimate width or grade, and are not improved with curbs
and gutters, sidewalk, street lights, landscaping, sewer and
water service; and
WHEREAS, the existing public works infrastructure system
is not adequate to accommodate the ever increasing volumes of
pedestrian and vehicular traffic that are generated by the new
developments; and
WHEREAS, developers are hampered by the absence of fully
improved streets, which necessitate conditions of approval that
dictate off-site improvements to provide the second means of
dedicated and paved emergency access and to provide water and
sewer service to their developments; and
WHEREAS, the absence of a fully improved street s~stem is
an impediment to the marketing activities for the new residential
units: and
NHERF.AS, it is imperative that an acceptable plan be
adopted to provide the necessary financing to construct a
complete system of public works infrastructure in the Verdemont
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9/21/89
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FINANCI~G PLAN.
,'111)
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Area; and
WHEREAS, an Engineering Study has been prepared to
identify the required public works infrastructure improvement5
and determine the amount of fee for the development rights to
provide
the
revenue
to finance the identified
necessary
improvements.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CO~~ON
COUNCIL OF THE CITY OF SAN BERNARDINO, AS FOLLOWS:
SECTION 1.
That the Verdemont Area Public Works
Infrastructure Financing Plan, a copy of which is attached
hereto, marked Exhibit "A" and incorporated herein a fully as
though set forth at length herein, is hereby approved and
adopted.
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the Ci ty of San
Bernardino at a
meeting thereof, held on the
_day of
, 1989, by the following vote, to-wit:
AYES:
Council Members
NAYS:
ABSENT:
City Clerk
The foregoing resolution is hereby approved this
day of
, 1989.
Approved as to form
and legal content:
James F. Penman
City Attorney
w. R. Holcomb, Mayor
Ci ty of San Bernardinc
By
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EXHIBIT "A"
CITY OF SAN BERNARDINO
VERDEMONT AREA PUBLIC WORKS INFRASTRUCTURE
FINANCING PLAN
BACKGROUND --
The Verdemont Area is experiencing a rapid rate of development.
The existing public works infrastructure system was installed
many years ago to serve the small number of low density resi-
dential units in the arp.a. The existing strep.ts are not paved to
the planned ultimate width or grade, and are not improved \vi th
curbs and gutters, sidewalks, street lights, landscaping, sewer
and water service. The existing infrastructure system is deemed
not adequate to accommodate the ever increasing volumes of
pedestrian and vehicular traffic that are generated by new
developments.
Development in the Verdemont Area is hampered by the absence of a
fully improved street system, which necessitates conditions of
approval that dictate construction of off-site improvements to
provide the second means of dedicated and paved access, and to
obtain water and sewer service. Construction of an adequate
infrastructure system is deemed essential for the continuation of
orderly growth in the Verdemont Area.
DESCRIPTION OF NEEDED IMPROVEMENTS --
An Engineering Study has been conducted to identify the
improvements required to provide the desired infrastructure
system. This study has identified the sections of the major
streets (basically those on the quarter mile grid) that need to
be improved. Improvements will consist of full width paving,
curbs and gutter, sidewalks, street lights, sewer mains and watp.r
mains. Provisions have been made to complete landscaping, parks,
a fire station and improve drai:age systems in .the designated
area with any funds collected but not expended on the basic
designated infrastructure. Also, any invp.stment or interest
income earned by the development rights fund may be used for this
additional work. The Mayor and Common Council shall set thp.
priority of these items upon the final determination of the
available balance after the basic infrastructure has been com-
pleted.
The total estimated cost for these improvements is $22.9 million.
Based upon densities authorized by the General plan, it is esti-
mated that an additional 3100 equivalent dwelling units can be
constructed in the Verdemont Area. It is envisioned that the
needed improvements will necessarily be constructed in phases, as
required to serve developments.
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The sections ~ streets
shown on the map attached
in the Engineer's Report.
that are in neea' of improvements are
as Appendix "I", and further described
SALE OP DEVELOPMENT RIGHTS
In order to generate funds to "up front" the cost of constructi.
the necessary improvements, a plan to sell Development Rights
will be implemented. Under this plan, a Development Right will
have to be purchased before a building permit is issued. An
equivalent dwelling unit will be used for non-residential
developments.
There are some basic premises of this program which are as
follm'ls:
1. Future developers must expect to pay for infrastructure im-
provements in advance.
2. Construction of these iMprovements is necessary to allow for
development to continue to occur.
3. Deferring the purchase of Development Rights will only result
in substantially higher costs in the future for these
improvements.
4. Development Rights will initially be offered to property
owners, but any un-sold rights will be made available to the
general public.
5. The City of San Bernardino will be responsible for
construction of needed improvements, on the streets identi-
fied on the attached map.
6. The purchase of Development Rights will not obviate the pay-
ment of normal development fees, such as sewer plant capacity
fees, sewer connection fees, park development fees, \vater
acquisition fees, etc.
The sale of Development Rights will be limited to a total number
of 3,100, which is the theoretical number of equivalent dwelling
units allowed by the General Ple.n. Development Rights will be
limited to the number of equivalent dwelling units allowed by the
General Plan for each parcel. A refund will bG paid, at the
purchase price, for any Development Rights not actually used by a
development.
Development Rights sold to members of the general public will not
be assigned to specific parcels, but only up to the number of
8quivalent dwelling units allowed by the General Plan for this
area.
The City retains the right to recall all Development Rights sold
to members of the general public at any time. Payment will be
made to the purchaser, at the rate in effect at the tirneof re-
call. Development Rights shall be recalled starting with those
most recently sold.
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PROCEDURE TO Pr...cHASE DEVELOPMENT RIGHTS ..:..."
The procedure to purchase Development Rights shall be one of the
following:
1.
Submittal of an Application and Purchase Agreement,
check, cashier's check, or lAtter of credit, in the
the number of equivalent dwelling units times
currently in effect.
certif:.-=
amount
the rat;...
2. Submittal of an Application and Purchase Agreement, certified
check, cashier's check, or letter of credit, in the amount of
30% of the number of equivalent dwelling units times the rate
currently in effect. The balance of 70% will be paid over a
five year period, and at a 12% interest rate on the unpaid
balance as provided in the Purchase Agreement.
These items will be submitted to the Department of Public Works.
Equivalent dwelling units for non-residential developments will
be based upon the number of lots that could be created on the
parcel, with the density for adj oining parcels allowed by the
General Plan.
The City may, at its sole option, will construct or enter into an
Agreement with a developer for reimbursement of the cost incurred
for constructing improvements on the streets shown on the
attached plan as having inadequate infrastructure.
Letters of credit shall be on the attached form or approved
equal.
RATE SCHEDULE
The rate schedule for the purchase of Development Rights shall be
as follows:
Effective Date
Adoption
1-8-91
1-8-92
1-8-93
1-8-94
Rate Schedule
$ 7,369.00
8,474.00
9,745.00
10,720.00
11,792.00
The above schedule reflects an increase of approximately 15% for
the first 3 years, and approximately 10% for the next 2 years.
The sale of Development Rights will be under the policy direction
of the Mayor and Common Council, and administered by the
Department of Public Works.
Development Rights may only be resold to the City of San
Bernardino. Any holder of Development Rights may elect to resell
them at any time to the City of San Bernardino, subj ect to
approval of the Mayor and Common Council, for the rate currently
in effect.
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INCENTIVES
In order
developers
advantages
("'~'
TO D~LOPERS ,...111
to be successful, this plan must
that it provides distinct advantages.
are:
."""-'~,
demonstrate t
Some of these
1. Avoid annual escalation in cost.
2. Guaranteed availability of water and sewer mains.
3. Avoidance of need to construct transition sections on through
streets.
4. Guarantee two means of dedicated and paved access roads.
5. Improve response time for emergency vehicles.
6. Enhance marketability of new houses by improved appearance of
area.
7. Ensure continued normal processing for developments.
ANTICIPATED SCHEDULE--
The anticipated schedule for implementation of this plan is as
follows:
Activity
Date
Hold Public Hearing
11-06-89
First Reading of Ordinance
& Adoption of Resolution
11-06-89
Prepare Information Materials
& Mail Notices to Property Owners
12-04-89
Second Reading of Ordinance
12-04-89
Ordinance in Effect
01-01-90
Start Sale of Development Rights
01-08-90
SUPPORTING DOCUMENTS--
Copies of the application, purchase agreement, sample letter of
credit, assignment form, and log of purchase agreements, are
attached for reference.
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ORDINANCE NO.
2 ORDINANCE OF THE CITY OF SAN BERNARDINO ADDING CHAPTER
15.73 TO THE SAN BERNARDINO MUNICIPAL CODE TO REQUIRE THE
3 PURCHASE OF DEVELOPMENT RIGHTS AS A CONDITION FOR ISSUANCE OF A
BUILDING PERMIT IN THE VERDEMONT AREA.
4
THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO
5 DO ORDAIN AS FOLLOWS:
6
SECTION 1.
Chapter 15.73 is hereby added to the San
7 Bernardino Municipal Code to read as follows:
8 "15.73.010 Acquisition of Development Rights
9
No building permit shall be issued within the
10
Verdemont Area without the applicant first having secured a
11
Development Right for each proposed Single Family Dwelling
12
Unit and Development Rights based on Equivalent Dwelling
13
Units for Commercial or Industrial Development. A written
14
application, along with the fee(s) ~stablished by
15
resolution, shall be submitted to the Director of Public
16
Works/City Engineer, and a Purchase Agreement executed, for
17
every development proposed within the Verdemont Area.
18
15.73.020 Definitions
19
(a) Verdemont Area - The Verdemont Area is defined as that
20
area of the City of San Bernardino delineated by the
21
Verdemont Area Plan adopted by the Mayor and Common Council
22
on November 17, 1986, excepting therefrom that area
23
southwesterly of Kendall Drive, from the southerly boundary
24
of the Area Plan to Palm Avenue, and southwesterly of Route
25
1-215 Freeway, from Palm Avenue to the northerly boundary
26
of the Area Plan.
27
(b) Development - Development shall mean every project for
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October 27, 1989
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1 ORDINANCE...ADDING CHAPTER 15.73 TO THE SAN BERNARDINO MUNICIPAL
CODE TO REQUIRE THE PURCHASE OF DEVELOPMENT RIGHTS AS A CONDITION
2 FOR ISSUANCE OF A BUILDING PERMIT IN THE VERDEMONT AREA.
3 which a building permit is required, except that it shall
4
not include those projects increasing either the size or
5
value of a single family residence by 25% or less.
6
15.73.030 Vested Rights; Compliance with other laws
7
The purchase of said Development Rights shall not
8
create a vested right to develop a certain number of units
9
or to develop at all.
Nothing in this Chapter shall be
deemed to supersede or to obviate compliance with any other
statute, ordinance or regulation affecting the development,
nor with the fees adopted pursuant thereto.
Nothing in
this Chapter nor the purchase or sale of any number of
Development Rights shall preclude the City from revising
its General Plan or its zoning districts to increase or
decrease the available density.
Despite the purchase of Development Rights, the
developer shall still be responsible for any applicable
installation fes, sewer connection fees, water acquisition
charges and any on or off-site improvements as the
21
situation requires prior to the building permits being
22
issued.
23
15.73.040 Limited Number
24
The total number of Development Rights sold shall not
25
exceed 3,915.
Should the authorized density for the
26
Verdemont Area be increased or decreased, this number will
27
be changed accordingly.
28
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October 27, 1989
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1 ORDINANCE...ADDING CHAPTER 15.73 TO THE SAN BERNARDINO MUNICIPAL
CODE TO REQUIRE THE PURCHASE OF DEVELOPMENT RIGHTS AS A CONDITION
2 FOR ISSUANCE OF A BUILDING PERMIT IN THE VERDEMONT AREA.
3 15.73.050 Recall by City
4 The City retains the right to. recall any and all
5
Development Rights sold at any time.
Payment upon recall
6
will be made to the purchaser at the current rate in effect
7
at the time of recall. Development Rights will be recalled
8
starting with those most recently sold.
The Mayor and
9
Council shall by resolution establish the current rate of
10
the Development Rights.
No pro rata payment based on
11
portions of a year shall be made.
12
15.73.060 Credit against fees
13
The Development Rights shall serve to offset the cost
14
of certain infrastructure needs in the Verdemont area as
15
identified in the Engineering study on file in the office
16
of the Director of Public Works/City Engineer.
It is
17
estimated that the actual cost of such improvements would
18
meet or exceed the cost of such Development Rights. As an
19
incentive to early development of the infrastructure as
20
described in this chapter any amount of infrastructure
21
costs in excess of the current cost of the Development
22
Rights is hereby waived by the Mayor and Common Council
23
irrespective of any other provision or lack thereof, of the
24
San Bernardino Municipal Code. Any landowner or developer
25'
installing the above specified infrastructure improvements
26
after the adoption of this Chapter but prior to the
27
effective date thereof shall receive a reimbursement for
28
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October 27, 1989
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,0-3','1'",.
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1 ORDINANCE...ADDING CHAPTER 15.73 TO THE SAN BERNARDINO MUNICIPAL
CODE TO REQUIRE THE PURCHASE OF DEVELOPMENT RIGHTS AS A CONDITION
2 FOR ISSUANCE OF A BUILDING PERMIT IN THE VERDEMONT AREA.
3 the actual cost of such infrastructure up to an amount
4 equivalent to the cost of Development Rights applicable to
5
the developer. Application for such reimbursement shall be
6
made within ninety (90) days of the effective date of this
7
Chapter.
8
9
15.73.070 Payment
Payment for the Development Rights shall be pursuant
10
to a purchase agreement, by certified check, cashier's
11
check or letter of credit.
Up to 70% of the cost of the
12
Development Rights may be paid over a five year period, at
13
12% interest per annum as provided in the purchase
14
Agreement. Such amount shall be all due and payable at the
15
end of the five year period or on issuance of a Certificate
16
of Occupancy, whichever occurs first.
17
15.73.080 Equivalent Dwelling Units
18
Equivalent dwelling units for non-residential
19
developments will be based on the number of lots that could
20
be created on the parcel based on the greatest density for
21
adjoining parcels as allowed by the General Plan.
22
15.73.090 Resale
23
Development Rights may only be resold to the City of
24
San Bernardino on recall or at any time after the time of
,25
purchase at the request of the holder of the Development
26
Rights and agreement by the City.
If a development
27
application, made in good faith and in conformity with the
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October 27, 1989
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1 ORDINANCE...ADDING CHAPTER 15.73 TO THE SAN BERNARDINO MUNICIPAL
CODE TO REQUIRE THE PURCHASE OF DEVELOPMENT RIGHTS AS A CONDITION
2 FOR ISSUANCE OF A BUILDING PERMIT IN THE VERDEMONT AREA.
3 City's General Plan and Development Code, is turned down by
4 the City within five (5) years of the purchase of the
5
Development Rights, the developer may either submit new
6
applications, as allowed by law, or the City will
7
repurchase such Development Rights.
The amount paid at
8
9
resale shall be the purchase price then in effect.
15.73.100 Prepayment of Costs
This chapter provides for a prepayment of
infrastructure costs by property owners and developers.
The payments made pursuant to this chapter are not
considered by the City, and shall not be deemed, as a loan
to the City.
15.73.110 Authority
This chapter is adopted pursuant to the authority of
Sections 40(z) and 40(aa) of the Charter of the City of San
18
Bernardino.
19
15.73.120 Findings
20
The Mayor and Common Council hereby find and determine
21
as follows:
22
(a) The fees collected by the sale of Development Rights
23
as provided in this Chapter are as a credit against
24
infrastructure costs and to fund certain infrastructure
25
improvements in the Verdemont Area as identified in the
26
Engineering Study on file in the office of the Public Works
27
Director/City Engineer.
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October 27, 1989
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1 ORDINANCE...ADDING CHAPTER 15.73 TO THE SAN BE~NARDINO MUNICIPAL
CODE TO REQUIRE THE PURCHASE OF DEVELOPMENT RIGHTS AS A CONDITION
2 FOR ISSUANCE OF A BUILDING PERMIT IN THE VERDEMONT AREA.
3
( b )
The fees will be used to provide an improved
4
infrastructure system in the Verdemont Area by the
5
construction and improvement of major streets and other
6
improvements. Such improvements shall consist of full
7
width paving, curbs and gutters, sidewalks, streetlights,
8
sewer mains, water mains, landscaping, .parks and fire
9
stations.
10
(c)
The Verdemont Area is experiencing a rapid rate of
11
development.
The existing Public Works infrastructure
12
system was installed many years ago to serve the small
13
number of low density residential units then in the area.
14
The existing streets are not paved to the planned ultimate
15
width or grade, and are not fully improved with curbs and
16
gutters, sidewalks, street lights, landscaping, sewer and
17
water service or with adequate parks or fire stations.
18
The existing infrastructure system is not deemed adequate
19
to accommodate the ever increasing volumes of pedestrian
20
and vehicular traffic that are generated by the new
21
developments.
Construction of an improved infrastructure
22
system is deemed essential for the continuation of orderly
23
growth in the Verdemont Area.
24
(d)
The fees collected by the sale of Development Rights
25
as provided in this Chapter are charges by the City for the
26
purpose of obtaining funds for capital projects necessary
27
to maintain service within the Verdemont Area and thus, are
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October 27, 1989
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1 ORDINANCE...ADDING CHAPTER 15.73 TO THE SAN BERNARDINO MUNICIPAL
CODE TO REQUIRE THE PURCHASE OF DEVELOPMENT RIGHTS AS A CONDITION
2 FOR ISSUANCE OF A BUILDING PERMIT IN THE VERDEMONT AREA.
3 exempt from CEQA (California Environmental Quality Act)
4 review pursuant to Public Resources Code Section 2180(b)
5 (8).
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(e) It is the intent of the Mayor and Council to first
apply the funds obtained pursuant to this Chapter towards
the identified street improvements and then toward the
other improvements as funds are available.
15.73.130 Conflict
Should any part of this Chapter be in conflict with
the Verdemont Area Public Works Financing Plan, this
Chapter shall control.
15.73.140 Failure to Sell
If 60% of the available Development Rights are not
sold within 60 days of the effective date of this Chapter,
the City reserves the right to refund all fees paid without
interest.
Should such refund occur this Chapter shall be
without further force and effect.
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October 27, 1989
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1 ORDINANCE...ADDING CHAPTER 15.73 TO THE SAN BERNARDINO MUNICIPAL
CODE TO REQUIRE THE PURCHASE OF DEVELOPMENT RIGHTS AS A CONDITION
2 FOR ISSUANCE OF A BUILDING PERMIT IN THE VERDEMONT AREA.
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4 I HEREBY CERTIFY that the foregoing ordinance was duly
5 adopted by the Mayor and Common Council of the City of San
6 Bernardino at a meeting thereof, held on the
7 day of , 1989, by the following vote, to wit:
8 AYES: Council Members
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NAYS:
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ABSENT:
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City Clerk
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The foregoing ordinance is hereby approved this
clay
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of
, 1989.
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W.R. Holcomb, Mayor
City of San Bernardino
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Approved as to form
19 and legal content:
20 JAMES F. PENMAN,
City Attorney
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22 By:
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ORDINANCE NO.
ORDINANCE OF THE CITY OF SAN BERNARDINO ADDING CHAPTER
15.73 TO THE SAN BERNARDINO MUNICIPAL CODE TO REQUIRE THE
PURCHASE OF DEVELOPMENT RIGHTS AS A CONDITION FOR ISSUANCE OF A
BUILDING PERMIT IN THE VERDEMONT AREA.
THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO
DO ORDAIN AS FOLLOWS:
SECTION 1.
Chapter 15.73 is hereby added to the San
Bernardino Municipal Code to read as follows:
"15.73.010 Acquisition of Development Rights
No building permit shall be issued within the
Verdemont Area without the applicant first having secured a
Development Right for each proposed Single Family Dwelling
Unit and Development Rights based on Equivalent Dwelling
Units for Commercial or Industrial Development. A written
application, along with the fee(s) established by
resolution, shall be submitted to the Director of Public
Works/City Engineer, and a Purchase Agreement executed, for
every development proposed within the Verdemont Area.
15.73.020 DefinitioLs
(a) Verdemont Area - The Verdemont Area is defined as that
area of the City of San Bernardino delineated by the
Verdemont Area Plan adopted by the Mayor and Common Council
on November 17, 1986, excepting therefrom that area
southwesterly of Cable Creek, from the southerly boundary
of the Area Plan to Palm Avenue, and southwesterly of Route
1-215 Freeway, from Palm Avenue to the northerly boundary
of the Area Plan.
(b) Development - Development shall mean every project for
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ORDINANCE...ADDING CHAPTER 15.73 TO THE SAN BERNARDINO MUNICIPAL
CODE TO REQUIRE THE PURCHASE OF DEVELOPMENT RIGHTS AS A CONDITION
FOR ISSUANCB OF A BUILDING PERMIT IN THE VERDEMONT AREA.
which a building permit is required, except that it shall
not include those projects increasing either the size or
value of a single family residence by 25% or less.
15.73.030 Vested Rights: Compliance with other laws
The purchase of said Development Rights shall not
create a vested right to develop a certain number of units
or to develop at all.
Nothing in this Chapter shall be
deemed to supersede or to obviate compliance with any other
statute, ordinance or regulation affecting the development,
nor with the fees adopted pursuant thereto.
Nothing in
this Chapter nor the purchase or sale of any number of
Development Rights shall preclude the City from revising
its General Plan or its zoning districts to increase or
decrease the available density.
Despite the purchase of Development Rights, the
developer shall still be responsible for any applicable
installation fes, sewer connection fees, water acquisition
charges and any on or off-site improvements as the
situation requires prior to the building permits being
issued.
15.73.040 Limited Number
The total number of Development Rights sold shall not
exceed 3,100.
Should the authorized density for the
Verdemont Area be increased or decreased, this number will
be changed accordingly.
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1 ORDINANCE...ADDING CHAPTER 15.73 TO THE SAN BERNARDINO MUNICIPAL
CODE TO REQUIRE THE PURCHASE OF DEVELOPMENT RIGHTS AS A CONDITION
2 FOR ISSUANCE OF A BUILDING PERMIT IN THE VERDEMONT AREA.
3 15.73.050 Recall by City
4 The City retains the right to recall any and all
Development Rights sold at any time.
PaYment upon recall
will be made to the purchaser at the current rate in effect
at the time of recall. Development Rights will be recalled
starting with those most recently sold.
The Mayor and
Council shall by resolution establish the current rate of
the Development Rights.
No pro rata payment based on
portions of a year shall be made.
15.73.060 Credit against fees
The Development Rights shall serve to offset the cost
of certain infrastructure needs in the Verdemont area as
identified in the Engineering study on file in the office
of the Director of Public Works/City Engineer.
It is
estimated that the actual cost of such improvements would
meet or exceed the cost of such Development Rights. As an
incentive to early development of the infrastructure as
described in this chapter any amount of infrastructure
costs in excess of the current cost of the Development
Rights is hereby waived by the Mayor and Common Council
irrespective of any other provision or lack thereof, of the
San Bernardino Municipal Code. Any landowner or developer
installing the above specified infrastructure improvements
after the adoption of this Chapter but prior to the
effective date thereof shall receive a reimbursement for
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.""....
1 ORDINANCE...ADDING CHAPTER 15.73 TO THE SAN BERNARDINO MUNICIPAL
CODE TO REQUIRE THE PURCHASE OF DEVELOPMENT RIGHTS AS A CONDITION
2 FOR ISSUANCE OF A BUILDING PERMIT IN THE VERDEMONT AREA.
3 the actual cost of such infrastructure up to an amount
4 equivalent to the cost of Development Rights applicable to
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the developer. Application for such reimbursement shall be
made within ninety (90) days of the effective date of this
Chapter.
15.73.070 Payment
Payment for the Development Rights shall be pursuant
to a purchase agreement, by certified check, cashier's
check or letter of credit. Up to 70' of the cost of the
Development Rights may be paid over a five year period at
12' interest per annum as provided in the purchase
Agreement. Such amount shall be all due and payable at the
end of the five year period or on issuance of a Certificate
of Occupancy, whichever occurs first.
15.73.080 Equivalent Dwelling Units
Equivalent dwelling units for non-residential
developments will be based on the number of lots that could
be created on the parcel based on the greatest density for
adjoining parcels as allowed by the General Plan.
15.73.090 Resale
Development Rights may only be resold to the City of
San Bernardino on recall or at any time after the time of
purchase at the request of the holder of the Development
Rights and agreement by the City.
If a development
application, made in good faith and in conformity with the
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1 ORDINANCE...ADDING CHAPTER 15.73 TO THE SAN BERNARDINO MUNICIPAL
CODB TO RBQUIRE THE PURCHASE OF DEVELOPMENT RIGHTS AS A CONDITION
2 FOR ISSUANCB OF A BUILDING PERMIT IN THE VERDEMONT AREA.
3 City's General Plan and Development Code, is turned down by
4 the City within five (5) years of the purchase of the
5 Development Rights, the developer may either submit new
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applications, as allowed by law, or the City will
repurchase such Development Rights.
The amount paid at
resale shall be the purchase price then in effect.
15.73.100 PrepaYment of Costs
This chapter provides for a prepaYment of
infrastructure costs by property owners and developers.
The payments made pursuant to this chapter are not
considered by the City, and shall not be deemed, as a loan
to the City.
15.73.110 Authority
This chapter is adopted pursuant to the authority of
Sections 40(z) and 40(aa) of the Charter of the City of San
Bernardino.
15.73.120 Findings
The Mayor and Common Council hereby find and determine
as follows:
(a) The fees collected by the sale of Development Rights
as provided in this Chapter are as a credit against
infrastructure costs and to fund certain infrastructure
improvements in the Verdemont Area as identified in the
Engineering study on file in the office of the Public Works
Director/City Engineer.
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1 ORDINANCE...ADDING CHAPTER 15.73 TO THE SAN BERNARDINO MUNICIPAL
CODE TO REQUIRE THE PURCHASE OF DEVELOPMENT RIGHTS AS A CONDITION
2 FOR ISSUANCE OF A BUILDING PERMIT IN THE VERDEMONT AREA.
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(b)
The fees will be used to provide an improved
infrastructure system in the Verdemont Area by the
construction and improvement of major streets and other
improvements.
Such improvements shall consist of full
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width paving, curbs and gutters, sidewalks, streetlights,
sewer mains, water mains, landscaping, parks and fire
stations.
(c)
The Verdemont Area is experiencing a rapid rate of
development.
The existing Public Works infrastructure
system was installed many years ago to serve the small
number of low density residential units then in the area.
The existing streets are not paved to the planned ultimate
width or grade, and are not fully improved with curbs and
gutters, sidewalks, street lights, landscaping, sewer and
water service or with adequate parks or fire stations.
The existing infrastructure system is not deemed adequate
to accommodate the ever increasing volumes of pedestrian
and vehicular traffic that are generated by the new
developments.
Construction of an improved infrastructure
system is deemed essential for the continuation of orderly
growth in the Verdemont Area.
(d)
The fees collected by the sale of Development Rights
as provided in this Chapter are charges by the City for the
purpose of obtaining funds for capital projects necessary
to maintain service within the Verdemont Area and thus, are
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1 ORDINANCE...ADDING CHAPTER 15.73 TO THE SAN BERNARDINO MUNICIPAL
CODS TO REQUIRE THE PURCHASE OF DEVELOPMENT RIGHTS AS A CONDITION
2 FOR ISSUANCB OF A BUILDING PERMIT IN THE VERDEMONT AREA.
3 exempt from CEQA (California Environmental Quality Act)
4 review pursuant to Public Resources Code Section 2180(b)
5 (8).
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(e) It is the intent of the Mayor and Council to first
apply the funds obtained pursuant to this Chapter towards
the identified street improvements and then toward the
other improvements as funds are available.
15.73.130 Conflict
Should any part of this Chapter be in conflict with
the Verdemont Area Public Works Financing Plan, this
Chapter shall control.
15.73.140 Failure to Sell
If 60% of the available Development Rights are not
sold within 60 days of the effective date of this Chapter,
the City reserves the right to refund all fees paid without
interest. Should such refund occur this Chapter shall be
without further force and effect.
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1 ORDINANCE...ADDING CHAPTER 15.73 TO THE SAN BERNARDINO MUNICIPAL
CODE TO REQUIRE THE PURCHASE OF DEVELOPMENT RIGHTS AS A CONDITION
2 FOR ISSUANCE OF A BUILDING PERMIT IN THE VERDEMONT AREA.
3
4 I HEREBY CERTIFY that the foregoing ordinance was duly
5 adopted by the Mayor and Common Council of the City of San
6 Bernardino at a meeting thereof, held on the
7 day of , 1989, by the following vote, to wit:
8 AYES: Council Members
NAYS:
ABSENT:
City Clerk
The foregoing ordinance is hereby approved this
day
of
, 1989.
W.R. Holcomb, Mayor
City of San Bernardino
Approved as to form
19 and legal content:
21
20 JAMES F. PENMAN,
City Attorney
22 By:
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DAB/ses
November 2, 1989
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