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Ordinance Temporarily Deferring <br />Collection of Development Impact Fees <br />July 16, 2012 <br />Page 2 <br />Although the fee deferral program has not been utilized during its previous approval periods in <br />2009 and 2011, there are several sizable developments within the City that could benefit from <br />this program if approved. Applicable projects include large residential developments like Lyon <br />Homes, a 300-unit development and the Met at South Coast, a 271-unit development near <br />Hutton Center and commercial projects such as the expansion of the Discovery Science Center <br />and the One-Broadway Plaza office building. <br />A temporary one-year deferral program is recommended as a stimulus for both residential and <br />non-residential development. To ensure that fees are paid prior to certificate of <br />occupancy/compliance, provisions in the draft ordinance require a developer to execute a <br />contract to pay the fees, with interest, prior to issuance of the certificate of <br />occupancy/compliance. This contract will be recorded with the Orange County recorder and <br />constitute a lien for the payment of the fees. Alternatively, the obligation will be secured by an <br />irrevocable letter of credit from the developer. So as to avoid any fiscal impact to the City, the <br />ordinance further provides that a developer will offset the City's costs to implement and <br />administer the fee deferral program. <br />The ordinance will be in effect for one year, unless extended for one additional year by further <br />action of the City Council. <br />FISCAL IMPACT <br />There is no fiscal impact associated with this action. <br />4M. Trevino <br />Executive Director <br />Planning & Building Agency <br />MF:rb <br />mflreportsTee deferral RFCA_2012 <br />75A-2