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Home My WebLink About4.6 Deferral Programs Extension STAFF REPORT CITY CLERK File #470-50 CITY COUNCIL DATE:May 21, 2013 TO: Honorable Mayor and City Councilmembers FROM: Joni Pattillo, City Manager SUBJECT: Time Extension for the Traffic Impact Fee Deferral Program and the Transit District Multi-Family Residential Development Fee Deferral Program Prepared by Hazel L. Wetherford, Economic Development Analyst EXECUTIVE SUMMARY: On September 1, 2009, the City Council adopted Resolution No. 127-09, approving a Traffic Impact Fee (TIF) Deferral Program for non-residential uses as one of several economic incentives to encourage development in the City. On December 20, 2011, the City Council adopted Resolution No. 215-11, approving a Transit District Multi-Family Residential Development Fee Deferral Program. Both programs are set to expire on June 30, 2013. Staff is recommending two-year extensions for both programs of June 30, 2015 and that the TIF fee payment date be changed to June 30, 2017 (two years following the completion of the program). FINANCIAL IMPACT: The fiscal impact associated with the extension of these programs is directly tied to participation. Based on current development projections and assuming full participation in the two programs, the potential fiscal impact would be approximately $3.7 million of deferred payment to the City’s Traffic Impact Fee Program. RECOMMENDATION: Staff recommends that the City Council adopt: 1) a Resolution Extending the Time Period for the Traffic Impact Fee Deferral Program, and 2) a Resolution Extending the Time Period for the Transit District Multi-Family Residential Development Fee Deferral Program. Submitted By Reviewed By Economic Development Director Assistant City Manager ITEM NO. 4.6 Page 1 of 3 DESCRIPTION: Non-Residential Traffic Impact Fee Deferral Program On September 1, 2009, the City Council adopted Resolution No. 127-09, approving a Traffic Impact Fee (TIF) Deferral Program as one of several economic incentives to encourage development in the City. To summarize, the TIF Deferral Program allows non-residential developers to defer Downtown and Eastern Dublin Traffic Impact Fees from building permit issuance to the issuance of the first permanent utility meter for the project (this step is just prior to taking occupancy of the building). The deferral in payment of the fees enables, in most cases, the project developer to shift the financing of the fees from the construction loan into the fixed financing for the project. Staff proposed, and the City Council approved, the program for Fiscal Years 2009-2010 and 2010- 2011. On June 21, 2011, the City Council adopted Resolution No. 95-11, approving an extension of the program for Fiscal Years 2011-12 and 2012-13, and amended the final TIF payment date to June 30, 2015. Staff presented the extension request to the Standing Economic Development Committee on February 11, 2013 and they were supportive of the request. This request falls under the Committee’s purview to provide policy guidance and direction on economic development incentives. The Committee is requesting that the full City Council consider the request. Staff is recommending a two-year extension of the program to June 30, 2015 and that the TIF fee payment date change to June 30, 2017 (two years following the completion of the program). Transit District Multi-Family Residential Development Fee Deferral Program On December 20, 2011, the City Council adopted Resolution No. 215-11 approving a Transit District Multi-Family Residential Development Fee Deferral Program as one of the economic incentives to encourage development in the City. To summarize, the Transit District Multi-Family Residential Development Fee Deferral Program allows developers to defer certain fees until just prior to installation of the first City-released utility meter for developments within the Transit District areas of Dublin – East and West Dublin BART stations – involving multi-family residential projects of 20 or more units. To date, only one developer, Avalon Dublin Station II, L.P. has participated in the program for a 255-apartment building project located at 5200 Iron Horse Parkway (East Dublin Transit District) where the developer deferred the Public Facilities Fee and the Fire Facilities Fee for an approximate total of $2.1 million. Staff presented the extension request to the Standing Economic Development Committee on February 11, 2013 and they were supportive of the request. This request falls under the Committee’s purview to provide policy guidance and direction on economic development incentives. The Committee is requesting that the full City Council consider the request. Staff is recommending a two-year extension of the program to June 30, 2015. NOTICING REQUIREMENTS/PUBLIC OUTREACH: None. Page 2 of 3 ATTACHMENTS: 1. Resolution to Extend the Time Period for the Traffic Impact Fee Deferral Program and Amend the Traffic Impact Fee Payment Date 2. Resolution to Extend the Time Period for the Transit District Multi- Family Residential Development Fee Deferral Program Page 3 of 3 RESOLUTION NO. XX- 13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ********* EXTENDING THE TIME PERIOD FOR THE TRAFFIC IMPACT FEE DEFERRAL PROGRAM AND AMENDING THE TRAFFIC IMPACT FEE PAYMENT DATE WHEREAS, one of the City Council’s Fiscal Year 2009/2010 High Priority Goals and Objectives was to develop an Economic Incentive Program; and WHEREAS, on September 1, 2009, the City Council adopted Resolution No. 127-09 approving the Downtown and Eastern Dublin Traffic Impact Fee (TIF) Deferral Program for non- residential projects (“the Program”); and WHEREAS, on June 21, 2011, the City Council adopted Resolution No. 95-11 approving an extension of the Program for Fiscal Years 2011-12 and 2012-13, and amended the final TIF payment date to June 30, 2015; and WHEREAS, the Program allows non-residential developers to defer Downtown and Eastern Dublin Traffic Impact Fees from building permit issuance to the issuance of the first permanent utility meter for the project; and WHEREAS, the Program, as adopted by Resolution No. 95-11, was to run for Fiscal Years 2011-12 and 2012-13; and WHEREAS, because of the slow economic recovery, the City Council’s Standing Economic Development Committee requested that the City Council consider extending the Program for Fiscal Years 2013-14 and 2014-15, and amend the TIF payment date from June 30, 2015 to June 30, 2017, two years following the completion of the extended Program. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby amend the Program as follows: 1. The program shall run through the end of Fiscal Year 2014-15. 2. All Traffic Impact Fees deferred pursuant to the Program shall be paid no later than June 30, 2017 if said fees have not already been paid upon issuance of the first permanent utility meter for a project. st PASSED, APPROVED AND ADOPTED this 21 day of May, 2013 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ___________________________________ Mayor ATTEST: _______________________________________ City Clerk RESOLUTION NO. XX- 13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ********* EXTENDING THE TIME PERIOD FOR THE TRANSIT DISTRICT MULTI-FAMILY RESIDENTIAL DEVELOPMENT FEE DEFERRAL PROGRAM WHEREAS, on December 20, 2011, the City Council adopted Resolution No. 215-11 approving the Transit District Multi-Family Residential Development Fee Deferral Program (“the Program”); and WHEREAS, the Program allows developers to defer certain fees until just prior to installation of the first City-released utility meter for developments within the Transit District areas of Dublin – East and West Dublin BART stations – involving multi-family residential projects of 20 or more units; and WHEREAS, the Program, as adopted by Resolution No. 215-11, was to run for Fiscal Years 2011-12 and 2012-13; and WHEREAS, because of the slow economic recovery, the City Council’s Standing Economic Development Committee requested that the City Council consider extending the Program for Fiscal Years 2013-14 and 2014-15. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby amend the Program to run through the end of Fiscal Year 2014-15. st PASSED, APPROVED AND ADOPTED this 21 day of May, 2013 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ___________________________________ Mayor ATTEST: _______________________________________ City Clerk