The URL can be used to link to this page

Home My WebLink About4.10 TIF Deferral Program or 19 82 STAFF REPORT CITY CLERK ` CITY COUNCIL File #600-70 DATE: January 20, 2015 TO: Honorable Mayor and City Councilmembers FROM: Christopher L. Foss, City Manager " SUBJECT: Time Extension for the City's Traffic Impact Fee Deferral Program and the Transit District Multi-Family Residential Development Fee Deferral Program Prepared by Hazel L. Wetherford, Senior Economic Development Analyst EXECUTIVE SUMMARY: The City Council will consider extending the termination date of the City's Traffic Impact Fee Deferral Program and the Transit District Multi-Family Residential Development Fee Deferral Program from June 30, 2015 to June 30, 2020, and that the TIF fee payment date be changed to June 30, 2022 (two years following the completion of the program). FINANCIAL IMPACT: None. RECOMMENDATION: Staff recommends that the City Council adopt the Resolution Extending the Time Period for the Traffic Impact Fee Deferral Program, and adopt the Resolution Extending the Time Period for the Transit District Multi-Family Residential Development Fee Deferral Program. r . Submitted by Reviewed By Economic Development Director/ Assistant City Manager Public Information Officer 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). Page 1 of 2 ITEM NO. 4.10 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. On May 21, 2013, the City Council adopted Resolution No. 62-13, approving an extension of the program for Fiscal Years 2013-14 and 2014-15, and amended the final TIF payment date to June 30, 2017. Staff is recommending a five-year extension of the program to June 30, 2020 and that the TIF fee payment date change to June 30, 2022 (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 development 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. On May 21, 2013, the City Council adopted Resolution No. 63-13, approving an extension of the program for Fiscal Years 2013-14 and 2014-15. Staff is recommending a five-year extension of the program to June 30, 2020. NOTICING REQUIREMENTS/PUBLIC OUTREACH: None. ATTACHMENTS: 1. Proposed Resolution to Extend the Time Period for the Traffic Impact Fee Deferral Program and Amend the Traffic Impact Fee Payment Date 2. Proposed Resolution to Extend the Time Period for the Transit District Multi-Family Residential Development Fee Deferral Program Page 2 of 2 RESOLUTION NO. XX- 15 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, 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, 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 City Council adopted an Economic Development Strategy on November 67 2012, which includes the continuation of economic incentives as a strategic priority; and WHEREAS, on May 21, 2013, the City Council adopted Resolution No. 62-13 approving an extension of the Program for Fiscal Years 2013-14 and 2014-15, and amended the final TIF payment date to June 30, 2015; and WHEREAS, the Program, as adopted by Resolution No. 62-13, was to run for Fiscal Years 2013-14 and 2014-15; and WHEREAS, Staff recommends extending the Program for Fiscal Years 2015-16, 2016- 17, 2017-187 2018-19, and 2019-2020, and amend the TIF payment date from June 30, 2017 to June 30, 2022, 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 2019-20. 2. All Traffic Impact Fees deferred pursuant to the Program shall be paid no later than June 30, 2022 if said fees have not already been paid upon issuance of the first permanent utility meter for a project. PASSED, APPROVED AND ADOPTED this 20th day of January, 2015 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk RESOLUTION NO. XX- 15 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, the City Council adopted an Economic Development Strategy on November 67 2012, which includes the continuation of economic incentives as a strategic priority; and WHEREAS, the Program, as adopted by Resolution 63-13, was to run for Fiscal Years 2013-14 and 2014-15; and WHEREAS, Staff recommends extending the Program for Fiscal Years 2015-16 through 2019-2020. 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 2019-20. PASSED, APPROVED AND ADOPTED this 20th day of January, 2015 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk