The URL can be used to link to this page

Home My WebLink About1993-06-22 - AGENDA REPORTS - ECONOMIC WORKSHOP PERMIT FEES (2)NEW BUSINESS DATE: SUBJECT: DEPARTMENT: BACKGROUND AGENDA REPORT June 22, 1993 City Manager Approval *� Item to be presented by: Michael K. Havilandypk- Economic Recovery Workshop Recommended Policies for Development and Permit Fees Community Development The Economic Recovery Workshop convened in October, 1992 as the primary effort uniting private and public leadership for solution of economic problems in the Santa Clarita Valley. Participants formed into ad hoc committees and provided recommendations for economic recovery. As a result of these recommendations, Issues were identified and prioritized in order of importance. On April 13, 1993, the City Council took formal action to support the recommendations stemming from the workshops. Two (2) policy issues recommended by the workshop committees Include: (1) 90 -day fee guarantee for projects In the development review process; and (2) deferral of fee and/or bond requirements for non -immediate Infrastructure projects. The scope of work for this report centers on the definition of key issues, timing Issues, operational Issues and options for consideration. CONCEPTS DEFINED (1) 90 -Day Fee Guarantee:. This concept is defined as guaranteeing a set fee schedule for 90 days. A prospective developerwould request a guarantee based on the assumptions of their development proposal as submitted. The City would determine a set fee listing for a 90 -day period. Therefore, fees would remain unchanged and allow the developer to approach a lender with better certainty for their financial pro forma. (2) Deferral of fee and/or bond requirements for non -immediate City Infrastructure projects: Conceptual policy would allow for a prospective developer to delay payment of required Infrastructure fees (i.e., bridge and thoroughfare fees) until `the City commences specific Infrastructure projects, appropriates budget amounts, and earmarks funds. Any Infrastructure projects requiring Bridge.and Thoroughfare fees scheduled within a one-year period of the development project would not be applicable to this Incentive. Further, the fee deferral incentive program would not apply to residential projects, it would apply to commercial and Industrial projects only. The payment of Quimby (park) fees applies only to residential projects, and therefore, would not be eligible for fee deferral. Contin t��:...z-13�3 90 -DAY FEE GUARANTEE CONSIDERATIONS (1) From a recommendation of the Economic Recovery Workshop, the City has previously developed a comprehensive listing of all development fees and this Information Is available for Interested parties at the Community Development public counters. Pros and Cons: Advantages to offering a 90 -day fee guarantee Include the certainty for development proposal fee structure for the prospective developer. Additionally, the policy sets forth the City's responsiveness to the business and development community. Disadvantages Include the lack of flexibility should modifications occur to the proposed development. Further, this incentive would apply only to larger scale commercial and Industrial projects and would not apply to residential subdivision projects. Recommended Policy:. A. GUARANTEE OF FEE AMOUNT AFTER PLANNING COMMISSION / DIRECTOR APPROVAL OF PROJECT Should the City consider to secure fee amounts, only projects that have received Planning Commission or Director approval would qualify for a guarantee. B. OPERATIONAL CONSIDERATIONS A standard written agreement, with similar Intent to a development agreement would be the Ideal implementation tool for a 90 -day fee guarantee. Adoption of a resolution would ratify the agreement between the City and the prospective applicant. C. RESPONSIBLE AGENCY FEES The City does not have authority over development fees required by outside agencies and therefore would not be able to guarantee fees; however, the City would be able to assist the developer In estimating these fees. DEFERRAL OF FEES AND BONDS FOR NON -IMMEDIATE PROJECTS (2) Currently, no provisions exist for deferring development fees for non -immediate Infrastructure improvements: Building permits may be Issued for a project once all development fees are paid and all responsible agencies' approvals are obtained. The number of approvals required depends on the size and scope of the project. Staff's objective Is to structure an Incentive policy regarding long-term capital projects that the City has control over without Incurring additional expenses on the City. Both Community Development and Finance Department Staff are exploring options in regards to fee discounting or a deferment program for prospective developers. Pros and Cons: Advantages Include potential increase in commercial and industrial development and benefits to developers include a Increase in working capital for project commencement. Disadvantages Include the limited nature of this policy. The fee deferment policy would apply to larger scale commercial and Industrial projects offering a substantial public benefit to the City and would not apply to residential developments. Recommended Policy: A. OPERATIONAL CONSIDERATIONS A development agreement would be the operative mechanism with an insurance for adequate security In the event of default. Approval by the City Council would be required to Implement the development agreement. B. TIMING Fees and/or bonds for non -immediate Infrastructure Improvements would be considered after Planning Commission/Director approval. C. PROJECT SIZE AND TYPE The City would require a project to be a commercial or industrial use and require that the project provide a substantial public benefit for the City (minimum 25 permanent jobs to be created over a two year period, Investments over $1,000,000 in land, building, and equipment, and revenue enhancement for City). D. DEFERRAL INCENTIVE PROGRAM LIFE The program would be In place for a three-year period. After three years, the City Council would have the option to cancel or renew the incentive policy. CITY ATTORNEY REVIEW The City Attorney's Office has reviewed the Incentive policy as has approved.it as to form and concept. Adopt Resolution No. 93-88, approving policies for guaranteeing fees for 90 -days and the deferral of fees and/or bonds for non -immediate Infrastructure projects. ATTACHMENT ' Resolution No. 93-88 LMH:MH eoumzAlpo17<yddp RESOLUTION NO. 93-88 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA ADOPTING ECONOMIC DEVELOPMENT INCENTIVE POLICIES FOR DEVELOPMENT AND PERMIT FEES RELATED TO COMMERCIAL AND INDUSTRIAL PROJECTS WHEREAS, the Economic Recovery Workshop was convened In October 1992 to unite private and public leadership in an effort to solve economic problems in the Santa Clarita Valley; and WHEREAS, participants of the workshop provided recommendations for economic recovery in the Santa Clarlta Valley; and WHEREAS, the City Council took formal action on April 13, 1993, to support these recommendations; and WHEREAS, the City Attorney's Office has reviewed this Incentive policy and has approved it as to form and concept. THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA CLARITA does resolve as follows: SECTION 1. The Council does hereby adopt the following policies for a 90 -day Fee Guarantee: 1. The City and prospective applicant may enter into a written agreement to Implement a guarantee of project development fees for a 90 day period. Adoption of a City Council Resolution would ratify the agreement between the City and the applicant. 2. Only development projects that have received formal Planning Commission or Community Development Director approval shall be able to quality for a fee guarantee agreement. 3. The City does not have authority over development fees required by outside agencies and therefore, is not able to guarantee such fees. The City is able to assist the developer in estimating these fees. 4. This guarantee shall apply to larger scale commercial and Industrial projects and would not apply to residential projects. SECTION 2. The City Council does hereby adopt the following policies for the deferral of fees and bonds for non -Immediate Infrastructure projects: The City and the prospective applicant shall enter Into a development agreement with an Insurance for adequate security in the event of a default. 2. Only development projects that have received formal Planning Commission or Community Development Director approval shall be eligible for deferment of fees and/or bonds for non -immediate Infrastructure projects. Reso. 93-88 Page Two 3. Only commercial or Industrial projects which provide a substantial public benefit for the City (minimum 25 permanent jobs to be created over a two-year period, Investments of over $1,000,000 In land, building, and equipment, and revenue enhancement for the City) shall be eligible for a development agreement pursuant to this policy. SECTION 3. The resolution shall be effective for a period of three years from the date of adoption. After this period, the City Council shall have the option to cancel or renew the incentive policy. PASSED, APPROVED AND ADOPTED this day of 1993. Mayor ATTEST: City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) § CITY OF SANTA CLARITA ) I, , DO HEREBY CERTIFY that the above and foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the day of 1993 by the following vote of Council: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: City Clerk cwnnNssW-M ddp RESOLUTION NO. 93-88 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA ADOPTING AN ECONOMIC DEVELOPMENT INCENTIVE POLICY FOR A 90 -DAY FEE GUARANTEE RELATED TO COMMERCIAL AND INDUSTRIAL PROJECTS WHEREAS, the Economic Recovery Workshop was convened in October 1992 to unite private and public leadership in an effort to solve economic problems in the Santa Clarita Valley; and WHEREAS, participants of the workshop provided recommendations for economic recovery In the Santa Clarita Valley; and WHEREAS, the City Council took formal action on April 13, 1993, to support these recommendations; and _ WHEREAS, the City Attorney's Office has reviewed this incentive policy and has approved It as to form and concept. THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA CLARITA does resolve as follows: SECTION 1. The Council does hereby adopt the following policies for a 90 -day Fee Guarantee: 1. The City and prospective applicant may enter into a written agreement to implement a guarantee of project development fees for a 90 day period. Adoption of a City Council Resolution would ratify the agreement between the City and the applicant. 2. Only development projects that have received formal Planning Commission or Community Development Director approval shall be able to quality for a fee guarantee agreement. 3. The City does not have authority over development fees required by outside agencies and therefore, Is not able to guarantee such fees. The City is able to assist the developer In estimating these fees. 4. This guarantee shall apply to larger scale commercial and Industrial projects and would not apply to residential projects. SECTION 2. The resolution shall be effective for a period of three years from the date of adoption. After this period, the City Council shall have the option to cancel or renew the incentive policy. Reso. 93-88 Page Two PASSED, APPROVED AND ADOPTED this day of 1993. Mayor ATTEST: City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) § CITY OF SANTA CLARITA ) 1, . DO HEREBY CERTIFY that the above and foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the day of 1993 by the following vote of Council: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: City Clerk vwm,7VexW.M.Wp