HomeMy WebLinkAboutItem 4.02 Traffic Impact FeeG~~~ OF DU~~2
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STAFF REPORT C i T Y C L E R K
DUBLIN CITY COUNCIL File # ^~DU^-[~~
DATE: June 21, 2011
TO: Honorable Mayor and City Councilmembers
FROM: , Joni Pattillo, City Manager
SUBJECT: Time Extension for the Traffic Impact Fee Deferral Program
Prepared By.: Linda Maurer, Economic Development Director
EXECUTIVE SUMMARY:
On September 1, 2009, the City Council adopted Resolution 127-09, approved a Traffic Impact
Fee Deferral Program as one of several economic incentives to encourage development in the
City. The program is set to expire on June 30, 2011. Staff is recommending that the program
time period be extended through Fiscal Years 2011-2012 and 2012-2013 and that the TIF Fee
Payment date be changed to June 30, 2015 (two years following the completion of the
Program).
FINANCIAL IMPACT:
Based on current development projections and assuming full participation in the TIF Deferral
Program, the potential fiscal impact would be approximately $14,000 of deferred payment to the
City's Traffic Impact Fee Program.
RECOMMENDATION:
It is recommended that the City Council Adopt a Resolution Extending the Time Period for the
Traffic Impact Fee Deferral Program and Amending the Traffic Impact Fee Payment Date.
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Submitted by:
Economic Development
Director
Reviewed by:
Administrative Services
Director
Reviewed y:
Assistant City Manager
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DESCRIPTION:
On September 1, 2009, the City Council adopted Resolution 127-09, approved a Traffic Impact
Fee Deferral Program as orie of several economic incentives to encourage development in the
City.
To summarize, the TIF Deferral Program allows non-residential developers to defer powntown
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.
Earlier this year, Staff discussed the status of the Fee Deferral Program with the Economic
Development Ad-Hoc Committee, comprised of Mayor Tim Sbranti and Councilmember pon
Biddle. Staff sought their policy guidance on whether to extend the program for an additional
two fiscal years, given the slow economic recovery. The Committee provided Staff direction to
bring an extension of the time period to the City Council for consideration.
Staff is recommending that the City Council adopt a resolution extending the existing program
for Fiscal Years 2011-12 and 2012-2013 and amending the final Traffic Impact Fee payment
date from June 30, 2013 to June 30, 2015.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
Not applicable.
ATTACHMENTS:.
1657510.1
1. Resolution 127-09 - Approving the Traffic Impact Fee Program
2. Resolution Extending the Time Period for the Traffic Impact Fee
Deferral Program and Amend the Traffic Impact Fee Payment
Date
Page 2 of 2
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RESOLUTION 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 far 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, TgIEREFORE, 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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ATTACHMENT 1
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PAS5EI), APPROVED AND ADOPTEI) this lst day of September, 2009 by the following vote:
AYES: Councilmembers, Biddle, Hart, Hildenbrand, Scholz, and Mayor Sbranti
NOES: None
ABSENT: None
ABS'TAIN: None
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Mayor.
ATTEST:
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City Clerk
Reso No. 127-U9, Adopted 9-1-09, Item 8.2 ~ P1ge 2 Of 2
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DOWNTOWN AND EASTERN DUBLIN
TRAFFIC IMPRO~EMElVT FEE (TI~
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 Ietter 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 staff would be able to defer traffic impact fees from bvilding 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 Tngger 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 -
FCI~.
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
ATTACHIVIENT 1
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Benefits•
o Time/value of money - Allows a development proj ect to cany the TIE' 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 ful] participat'ion in the program, there
is potential for a defenal of approximately $213,000 in TIF.
o No significant impact on current CIP projects. The active CIP projects involve
the repaynnent of loans associated with improvements already completed. To the
extent that funds are collected on a deferred basis, it will extend the timeframe for
repayment and increase interest costs to the TIF program.
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RESOLUTION. NO. .XX- 11
A RESOLUTION OF THE CITY COUNCIL '
O~' THE CITY OF DUBLIN
X ~ X iti ]~C ~C . ~ ~C iF . ~ . .
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, in September 2009, the City Council adopted Resolution 127-09 approving the
Downtown and Eastern Dublin Traffic Impact Fee Deferral Program for non-residential projects ("the
Program"); and
WHEREAS, the Program allows non allows non-residential developers to defer powntown 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 127-09, was to run for Fiscal Years
2009/2010 and 2010/2011; and
WHEREAS, because of the slow economic recovery, the City Council's Ad-Hoc Economic
Development Committee requested that the City Council consider extending the Program far Fiscal Years
2011/2012 and 2012/2013 and amending the Traffic Impact Fee Payment Date from June 30, 2013 to June
30, 2015, 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 2012/2013
2. All Traffic Impact Fees deferred pursuant to the Program shall be paid no later than June 30,
2015 if said fees have not already been paid upon issuance of the first permanent utility meter for a
project.
PASSED, APPROVED AND ADOPTED this 21St day of June, 2011 by the following vote:
AYES:
NOES:
ABSENT:
AB~TAIN:
Mayor
ATTEST:
ATTACHMENT 2