HomeMy WebLinkAboutReso 127-09 TIF Deferral ProgramRESOLUTION NO. 127- 09
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
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APPROVING THE TRAFFIC IMPACT FEE DEFERRAL PROGRAM
WHEREAS, one of the City Council's Fiscal Year 2009-2010 High Priority Goals and Objectives
is to develop an Economic Incentive Program; and
WHEREAS, in January 2009, the City Council adopted the Sales Tax Reimbursement Program as
the first of possibly many programs that the City would create to stimulate economic development
activities in the City; and
WHEREAS, after careful review of additional incentive options, Staff recommends the
establishment of the Traffic Impact Fee (TIF) Deferral Program for non-residential projects, attached as
Exhibit A to this Resolution; and
WHEREAS, the creation of the TIF Deferral Program will potentially impact the collection of
approximately $213,000 in traffic impact fees over the next two fiscal years; and
WHEREAS, the TIF Deferral Program does not adversely impact work associated with current
Capital Improvement Projects (CIP), as the active CIP projects involve the repayment of loans associated
with improvements already completed; and
WHEREAS, to the extent funds are collected on a deferred basis, timeframe for repayment of
loans will also be extended, resulting in increased interest costs to the TIF program; and
WHEREAS, notwithstanding the provisions of Resolutions 210-04, 211-04, 111-04 and 20-07,
adopting the Downtown TIF and Eastern Dublin TIF and the associated Administrative Guidelines, traffic
impact fees for non-residential projects may be deferred from payment at building permit to the issuance
of the first permanent utility meter for the development; and
WHEREAS, payment of the deferred TIF will be the amount in effect at the time of payment.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does
hereby approve the Traffic Impact Fee Deferral Program for the Fiscal Years of 2009/2010 and
2010/2011.
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PASSED, APPROVED AND ADOPTED this 1 S` day of September, 2009 by the following vote:
AYES: Councilmembers, Biddle, Hart, Hildenbrand, Scholz, and Mayor Sbranti
NOES: None
ABSENT: None
ABSTAIN: None
Mayor
ATTEST:
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City Clerk
Reso No. 127-U9, Adopted 9-1-09, Item 8.2 Page 2 Of 2
DOWNTOWN AND EASTERN DUBLIN
TRAFFIC IMPROVEMENT FEE (TIF)
DEFERRAL PROGRAM
Overview:
o Program to run for two fiscal year periods - 2009/2010 and 2010/2011.
o Program for non-residential project only.
o A fee. deferral agreement will be required. Agreement will be recorded against
the property and payment will be secured through one or more of the following
options:
o Assigned bank deposit/account
o Irrevocable letter of credit -letter shall remain valid throughout the
duration of the construction project and can only be released upon City
approval when the fees are paid.
o Surety bond
o Reservation of funds in escrow account of the senior lender, solely for the
benefit of the City to assure payment.
o Property Lien/Deed of trust (no subordination allowed; no existing liens
on the property)
o An application with a $5,000 not-to-exceed deposit will be required to participate
in the program. This amount will cover staff and legal time, as well as fixed
costs.
o City staffwould be able to defer traffic impact fees from building permit issuance
to, in most instances, prior to the first request for occupancy (see detail next).
Payment of the fee will be subject to the rate established at the time the fee is
paid.
o Trigger for payment is the issuance of a utility meter for the project. No
meter will be issued until full payment is received on all outstanding items
including all outstanding processing costs (Finance Control Number -
FCN).
o All program participants, regardless of building permit issuance date, must
pay the TIF by June 30, 2013 (two years after the program's conclusion) if
not paid for earlier prior to occupancy.
o Staff will report back to City Council at the end of the first year to determine the
program's effectiveness.
EXHIBIT A
TO
ATTACHMENT 1
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Benefits:
o Time/value of money - Allows a development project to carry the T1F costs over
several months, enabling them to package the fees into their fixed financing - as
opposed to at the time of the construction loan.
Fiscal Impact:
o Based on current projections and assuming full participation in the program, there
is potential for a defer al of approximately $213,000 in TIF.
o No significant impact on current CIl' projects. The active CIP projects involve
the repayment of loans associated with improvements already completed. To the
extent that funds are collected on a defer ed basis, it will extend the timeframe for
repayment and increase interest costs to the TIF program.
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