HomeMy WebLinkAbout8.1 Transit District Fee~~~~ Off' nU~~~
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DATE:
TO:
FROM:
STAFF REPORT
CITY COUNCIL
CITY CLERK
File #470-50
December 20, 2011
Honorable Mayor and City Councilmembers
~~
Joni Pattillo, City Manager ° ~'
SUBJECT: Adoption of Transit District Fee Deferral Program for Multifamily Residential
Prepared by Linda Smith, Economic Development Director and Public Information
Officer
EXECUTIVE SUMMARY:
Staff is seeking City Council authorization to implement atwo-year fee deferral program for
multi-family residential developments of twenty units or more within the designated Transit
Districts at the East Dublin BART Station and the new West Dublin BART Station are part of the
City's continued efforts to support economic development activities in Dublin.
FINANCIAL IMPACT:
If adopted, the program would permit developers of certain residential projects to defer payment
of certain development impact fees until just prior to installation of the first City-released utility
meter for the project. Where a project consists of multiple structures, the developer would be
permitted to pay only the impact fees attributable to individual structures upon installation of the
first City-released utility meter for that structure. Developers would be required to pay the
amount of the fee in effect at the time of payment. The Developer will be required to pay a
deposit to cover the City's costs of administering the program. Therefore, the program is
expected to have no net financial impact on the City.
RECOMMENDATION:
Staff recommends that the City Council adopt the resolution establishing the Transit District
Multi-Family Residential Development Fee Deferral Program.
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Submitted By
Economic Development Director
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Reviewed By
Assistant City Manager
Page 1 of 3 ITEM NO. 8.1
DESCRIPTION:
On September 1, 2009, as part of its efforts to develop an Economic Incentive Program, the City
Council adopted a two-year "Downtown and Eastern Dublin Traffic Impact Fee Deferral
Program" that permitted developers of commercial projects to defer payment of the Downtown
and Eastern Dublin Traffic Impact Fees. These fees are normally due upon issuance of building
permits. The program permits developers to defer payment of the fees until installation of the
first permanent utility meter for the project (just prior to authorization of building occupancy). On
June 21, 2011, the City Council extended that program for an additional two years.
Staff has developed a similar program that would apply to developments within the Transit
District Priority Development Areas of Dublin -East and West Dublin BART stations -involving
multi-family residential projects of twenty or more units. The purpose of limiting the program to
the Transit Districts is to encourage higher-density residential development projects in these
areas. In doing so, Staff believes that this will encourage other commercial development
activities, particularly in the Downtown Specific Plan area where new development would benefit
from a residential population nearby.
Under the program, developers would be permitted to defer certain fees until just prior to
installation of the first City-released utility meter for the project. Where a project consists of
multiple structures, the developer would be permitted to pay only the impact fees attributable to
individual structures upon installation of the first City-released utility meter for that structure.
Developers would be allowed to defer payment of the following fees: the Eastern Dublin Traffic
Impact Fee, the Downtown Traffic Impact Fee, the Public Facilities Fee and the Fire Facilities
Fee. To be eligible for the program, a developer must either have an unexpired site
development review approval at the time of the adoption of the program, or must obtain site
development review approval within one year of the adoption of the program.
Applicants would be required enter into a "Program Agreement" with the City. This Agreement
would include the following provisions: 1) the applicant would commit to paying the unpaid fees
prior to installation of the first City-released utility meter for the project, except that where a
project consists of multiple structures, the developer would be permitted to pay only the impact
fees attributable to individual structures upon installation of the first City-released utility meter for
that structure; 2) the applicant would be required to pay the amount of the fees in effect at the
time of payment; 3) the applicant would be required to notify the City upon the opening of
escrow for the property, and to ensure that escrow instructions for such a sale require that the
City be paid all amounts owed to it under the Program prior to disbursement of sale proceeds to
the seller; and 4) the Agreement would be recorded against the property, and the amount owed
to the City would be made a lien upon the property.
Applicants would also be required to make an initial deposit payment of $5,000 to the City to be
used to pay for the City's costs associated with processing the application and developing the
Program Agreement, unless a flat fee is adopted as part of the City's Fee Study that is currently
underway. In the event that the City's actual costs either exceed, or are less than, $5,000 the
developer would either be required to make an additional payment or the City would return the
unspent portion of the deposit.
Staff presented this program to the Economic Development Ad-Hoc Committee on November
28, 2011. This program falls under the Committee's purview to explore new incentives to
promote the City's economic development efforts. The Committee is recommending the
program and is requesting that the full City Council consider the new program for adoption.
Page 2 of 3
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
None
ATTACHMENTS: 1. Resolution Adopting a Transit District Multi-Family Residential
Development Fee Deferral Program
2. Transit District Fee Deferral Program
Page 3 of 3
Exhibit A
Transit District Multi-Family Residential Development Fee Deferral Program
1) Irrterrt. This Transit District Multi-Fainil~- Residential De~-elopment Fee Deferral Pro~,nain
("the Pro~,nain") is uitended to gi~-e de~-elopers of eligible residential projects the ability- to defer
pa~nnent of certaui fees, described ui Section 3 bolo«-, until the tune of appro~-al b~- the City- of
Dublii Builcluig Di~-ision for uistallation of the first City--released utility- meter (electric meter or
gas meter, ~`-hiche~-er is first) for eligible projects.
?) Elr,ble Projects. Eli~rible projects are lunited to multi-fainil~- residential de~-elopment projects
of ?0 units or more located ui the East and «'est Dublii Transit Districts as sho«-n ui the map
attached hereto as Exhibit 1, and for «-hich either (a) site de~-elopment re~-ie~`- appro~-al has
pre~-iousl~- been appro~-ed and has not expired at the tune of appro~-al of the Pro~,nain or (b) site
de~-ek>pment re~-ie~`- is obtauied «-ithu~ one rear of the appro~-al of the Program. "~Iitlti-fainil~-"
for the purposes of this program means attached residential units. ~Iised-use projects ~`-ith a
multi-family residential component that would be eligible for the Program ma~~ participate u~ the
Program with respect to the Impact Fees applicable to that multi-family residential component
only-. In no e~-ent shall participation ui this Pro~,nain permit the deferral of any- Impact Fees
charged on a suigle-fainil~- residential or non-residential component of and- project.
3) Fees tlirrt llcr~~ Be Dcfrrz:<1. Upon satisfaction of all the requirements of this Pro~,nain, eli~rible
projects may- defer pa~nnent of the follo«-uig fees until the dine described hereui:
a) Eastern Dublin Traffic Impact Fee
b) Downtown Traffic Impact Fee
c) Public Facilities Fee
d) Fire Facilities Fee
(These fees are collecti~-el~- referred to hereui as the "Impact Fees." Participation ui this
program would not affect the unposition of any other fees flat may be unposed and/or
collected b~- the City- of Dublii, such as the Tri-~-alle~- Transportation De~-elopment Fee;
Pleasanton~Interchange Fee; Zone 7 Iinper~-ious Surface Fee, etc.)
-~) _~pplicants to the Pro~,nain shall be required to make an uiitial deposit of ~:i,0()(l. Said deposit
shall be used to pay- for the Cit~-'s costs, uicluduig filed costs, staff tune and legal expenses,
associated ~`-ith processuig the application and de~-elopuig a Pro~,nain _~~,neement for the project.
In the event that the City's act<ial costs emceed ~~,O~0, the applicant shall be required to make an
additional deposit. In the e~-ent that the Cit~-'s act<ial costs are less than ~:i,()U(l, the City- shall
ret<irn the difference to the deg eloper upon deg eloper's pa~nnent of all amounts owed under the
Program _~~,neement. Ho~ve~-er, if the City- adopts a flat fee as part of the Cit~-'s most recent Fee
St<id~- fuxluigs, the flat fee «-i11 be the collected amount.
:i) Upon application for participation ui the Pro~,nam, the de~-ek>pers of eligible projects shall be
required to enter uito a fee deferral a~,neeinent ("Program _~greement") drafted b~- the City-. The
Program _~~,neement shall uiclude, but not be lunited to, the folk>«-uig pro~-isions:
Exhibit A
a) I~a~'lnellt Of ally' Impact I'eeS deferred llllder the l~rO~raln lnllst be made l~rlor t0
installation of the first (~it~--released utility- meter for the project. ~tllere a project consists of
multiple stnict<ires, the de~-eloper may- pa~-~onl~- the Impact Fees attributable to a ~;i~-en stnichire
prior to installation of the first Citt--released utilitt- meter for that stnict<ire. The City- shall be
authorized to ~~ithhold authorization to install such utilite meters ul~til such tune as all deferred
Impact Fees relatil~; to the stnlct<lre sel-~-ed b~- the utilit~-~meter are paid.
b) The amount o~~ed be the deg eloper shall be the amoul~t of the deferred Impact Fees
it effect at the time of pa~nnent b~- the de~-eloper.
c) The Pro~,naln _~~,neement, identif~-i1~; the filancial terms and the debt o«-ed to the City-
thereunder, «-i11 be recorded a~ailst, and constit<lte a Bell on, the property-.
d) The de~-eloper «-i11 be required to notify- the City- upon the openil~; of escro~`- for the
sale of the property-. The de~-eloper shall be required to ensure that the escro~`- ilstnlctions for
any- such sale mandate that the City- be paid all amounts o«-ed to it under the Pro~,naln
_~~;reelnent prior to disbursement of and- proceeds to seller. This subsection (d) is not intended
to be applicable to sales or transfers to affiliated entities of the de~-eloper.
160 i66.8
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