75B - PH TEMPORARILY DEFERRING COLLECTION OF IMPACT FEES

Home Browse Search

Ordinance Temporarily Deferring Collection of Development Impact Fees November 18, 2013 Page 2 The fee deferral program has been successfully utilized by Lyon Communities as part of The Marke project, a 300 -unit residential project at the corner of Main Street and MacArthur Boulevard. There are several other sizable developments within the City that could also benefit from this program if approved. Applicable projects include large residential developments like the Met at South Coast, a 271 -unit development near Hutton Center, the 301 at City Place, a 182 - unit development, Lyon Communities at First Street and Cabrillo Park, a 256 -unit project and commercial projects such as the expansion of the Discovery Science Center and the One - Broadway Plaza office building. In previous ordinances, staff has recommended a temporary one -year deferral program as a stimulus for both residential and non - residential development. Upon further review, and after successfully working through the fee deferral process on The Marke project, it is recommended to lengthen the ordinance period from one year to three years. Increasing the effective period of the ordinance will increase flexibility for several of the upcoming development projects to take advantage of this program as they reach the permitting process. To ensure that fees are paid prior to certificate of occupancy /compliance, provisions in the draft ordinance require a developer to execute a contract to pay the fees, with interest, prior to issuance of the certificate of occupancy /compliance. This contract will be recorded with the Orange County recorder and constitute a lien for the payment of the fees. Alternatively, the obligation will be secured by an irrevocable letter of credit from the developer. So as to avoid any fiscal impact to the City, the ordinance further provides that a developer will offset the City's costs to implement and administer the fee deferral program. The ordinance will be in effect for three years, unless extended for one additional three years by further action of the City Council. FISCAL IMPACT There is no fiscal impact associated with this action. y M. Trevino Executive Director Planning and Building Agency MF:rb mNreports \Fee deferral RFCA_2013 75B -2 Edwin 'William , P.E. Interim Executive Director Public Works Agency