25A - AGMT DEVELOPMENT IMPACT FEE

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Development Impact Fee Deferral Agreement for 2110, 2114 and 2020 East First Street October 15, 2019 Page 3 Recordation of Agreement and Lien Against Property. Upon the execution, the Agreement will be recorded in the Official Records of the County of Orange and the Agreement shall contractually bind Owner to pay the development impact fees and shall constitute a lien against the Property. The intended goal of the collection of development impact fees at the time of building permit issuance is to ensure that the payment of the fees is completed prior to the vesting of development rights by a project developer. Development impact fees for development projects include customary fees to defray costs for the City to provide development services under the permit, outside agency fees as applicable, and established development impact fees. While deferral of collection of development impact fees is not a routine practice, the Owner has submitted their request under California Government Code Section 66007 and the City is required to consider their request. The collection of the development impact fees for a new residential development is to generally fund planned acquisition and development of parks and open space within the City to mitigate the impacts that new developments will have on the demand for parks and open space within the City. While the request will defer the collection of the development impact fees to a later time in the development process, it will not waive or prevent the City from collecting the fee through protections and securities provided to the City under the agreement. Furthermore, the fees will be paid prior to the actual impact as no residents will be allowed to occupy the building on the Property until payment is received by the City. STRATEGIC PLAN ALINGMENT Approval of this item supports the City's efforts to meet Goal # 5 Community Health, Livability, Engagement and Sustainability, Objective # 3 (facilitate diverse housing opportunities and support efforts to preserve and improve livability in Santa Ana neighborhoods). FISCAL IMPACT The total estimated development impact fees to be deferred for the project is estimated to be $4,121,987 as follows: Accounting Unit Fund Description Accounting Unit, Account Amount — Account # Description 31313002-53300 Residential Development District 3 District Park A & D Fees $3,058,443 12015002-53700 Fire Facilities Fund Improvement Fee $664,576 99117002-50301 Transportation System TSIA from City of Santa Ana $398,968 Improvement Authorit TOTAL $4,121,987 25A-3