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Ordinance Temporarily Deferring <br />Collection of Development Impact Fees <br />February 7, 2011 <br />Page 2 <br />Although the fee deferral program was not utilized during its original approval period from 2008 to <br />2009, there are several sizable developments proposed within the City that could benefit from this <br />program if approved. Applicable projects include residential developments like Lyon Homes, a 300- <br />unit development near Hutton Center, TAVA Homes, a new single-family development in the Portola <br />Park neighborhood and commercial projects such as a new 15,000 square foot Rite Aid near Harbor <br />Boulevard and First Street, the expansion of the Discovery Science Center and the One-Broadway <br />Plaza office building. <br />A temporary one-year deferral program is recommended as a stimulus for both residential and non- <br />residential development. To ensure that fees are paid prior to certificate of occupancy/compliance, <br />provisions in the draft ordinance require a developer to execute a contract to pay the fees, with <br />interest, prior to issuance of the certificate of occupancy/compliance. This contract will be recorded <br />with the Orange County recorder and constitute a lien for the payment of the fees. Alternatively, the <br />obligation will be secured by an irrevocable letter of credit from the developer. So as to avoid any <br />fiscal impact to the City, the ordinance further provides that a developer will offset the City's costs to <br />implement and administer the fee deferral program. <br />The ordinance will be in effect for one year, unless extended for one additional year by further action <br />of the City Council. <br />FISCAL IMPACT <br />There is no fiscal impact associated with this action <br />J ?Trev <br />i <br />no <br />Executive Director <br />Planning & Building Agency <br />MF:rb <br />mflreportsTee deferral RFCA <br />75C-2