Chapter 11.45
DEFERRAL OF DEVELOPMENT IMPACT FEES
Sections:
11.45.025 Fee deferral program.
11.45.030 Approval of deferred fees.
11.45.035 Program application.
11.45.050 Administration charge.
11.45.005 Title.
This chapter shall be known and cited as the “Deferral of Development Impact Fees.” [Ord. 417 § 3, 2019]
11.45.010 Purpose.
The city council of the city of Biggs desires to encourage the construction of residential and nonresidential development projects within the city. The city council finds that the existing requirements for payment of certain development impact fees for new development create a barrier to such development by requiring developers to retain a significant amount of cash or in-kind funds to pay certain development impact fees upon issuance of a building permit. Pursuant to the foregoing, the city council desires, by the adoption of this chapter, to ease this barrier by deferring the payment of certain development impact fees. [Ord. 417 § 3, 2019]
11.45.015 Deferred fees.
(1) The city may defer up to 90 percent of any or all of the following development impact fees pursuant to the provisions of this chapter:
(a) Police services and facilities;
(b) Water facilities;
(c) Parks and recreation facilities;
(d) Wastewater facilities;
(e) Electrical facilities;
(f) General government facilities and services;
(g) Fire protection services and facilities;
(h) Storm drainage facilities;
(i) Street facilities.
(2) This section provides the exclusive list of fees which may be deferred pursuant to this chapter. Any fees not provided in this section shall be paid pursuant to applicable federal, state or local regulations including, without limitation, fees related to the California Environmental Quality Act. [Ord. 417 § 3, 2019]
11.45.020 Definitions.
(1) “Applicant” means the owner or owners of record for the real property on which an approved development project is to be located.
(2) “Approved development project” means a development project that has received final discretionary action by the city and which is in compliance with all federal, state and local requirements including, without limitation, environmental requirements due prior to issuance of a building permit.
(3) “Deferred fees” means any development impact fees, as set forth in BMC 11.45.015, that the city has agreed to defer pursuant to a fee deferral agreement. “Deferred fees” shall include any accrued interest, if applicable.
(4) “Fee deferral agreement” means a standardized agreement satisfactory to the city and approved by the city attorney, executed by and between the applicant and the city for the purpose of approving the deferral of certain deferred fees. The fee deferral agreement shall require the applicant to indemnify, defend and hold harmless the city and its officials, officers, agents and employees for any claims, causes of action or damages/cost arising from the city’s temporary deferral of the deferred fees. A fee deferral agreement is specific to an approved development project and is nontransferable to another applicant or another approved development project.
(5) “Maximum deferral period” means the 12-month period from the date of issuance of the building permit in which any deferred fees may remain unpaid for any development. The maximum deferral period for any building permit may be extended at the discretion of the city council prior to the expiration of the nonresidential maximum deferral period. [Ord. 417 § 3, 2019]
11.45.025 Fee deferral program.
(1) Residential Development.
(a) An applicant must enter into a fee deferral agreement to qualify for a deferral of development impact fees for residential development. The fee deferral agreement shall explicitly provide for the recordation of a lien against the real property on which the approved development project is to be located, which shall be removed upon payment in full of all deferred fees. All costs assessed by the county for the recordation of the documents set forth herein shall be paid by the applicant at the time of execution of the fee deferral agreement.
(b) Deferred fees for a single-family residential development shall be due and payable in full for each individual lot within the approved development project upon the earlier of: (i) a request for final inspection under a building permit; or (ii) the close of the maximum deferral period for the applicable building permit.
(c) Deferred fees for a multifamily market-rate residential development shall be due and payable in full for each building within the approved development project upon the earlier of: (i) a request for final inspection under a building permit; or (ii) the close of the maximum deferral period for the applicable building permit.
(d) If any deferred fees are not paid within the maximum deferral period, interest shall accrue on any unpaid balance pursuant to BMC 11.45.040, final inspection and issuance of a certificate of occupancy shall not occur, and payment of the deferred fees shall be undertaken pursuant to the provisions set forth in the fee deferral agreement.
(2) Nonresidential Development.
(a) An applicant must enter into a fee deferral agreement to qualify for a deferral of development impact fees for a nonresidential development. The fee deferral agreement shall explicitly provide for the recordation of a security instrument, to be mutually agreed upon by the applicant and the city, against the real property on which the approved development project is to be located, which shall be removed upon payment in full of all deferred fees, including interest, as specified in BMC 11.45.040. All costs assessed by the county for the recordation of the documents set forth herein shall be paid by the applicant at the time of execution of the fee deferral agreement.
(b) Deferred fees for nonresidential developments shall be due and payable in full upon the earliest of: (i) the date set forth in the fee deferral agreement entered into for the subject property; (ii) a request for final inspection under a building permit and/or a certificate of occupancy; or (iii) the close of the maximum deferral period for the applicable building permit.
(c) If any deferred fees are not paid within the nonresidential maximum fee deferral period, interest shall accrue on any unpaid balance pursuant to BMC 11.45.040, final inspection and issuance of a certificate of occupancy shall not occur, and payment of the deferred fees shall be undertaken pursuant to the provisions set forth in the fee deferral agreement. [Ord. 417 § 3, 2019]
11.45.030 Approval of deferred fees.
(1) No project shall be eligible for execution of a fee deferral agreement unless all of the following conditions are met:
(a) The project shall be located on property within the city of Biggs.
(b) The project shall have received the final discretionary approval by the city council and/or staff as deemed appropriate.
(c) The project shall have undergone all required environmental review and shall be in compliance with all requirements established by the environmental document prepared for the project.
(d) All conditions of approval, as applicable at the time of permit issuance, shall have been met.
(e) All payments of taxes and assessments on the property on which the project is located shall be current.
(f) The applicant shall have no unpaid balances due to the city for the project or any other project or purpose.
(g) The applicant and/or his, her, or its partners and affiliates on the project shall have been deemed by the city to present a low risk of nonpayment of fees, if the city opts to conduct a risk assessment, which may include meeting the following criteria and any others the city deems necessary:
(i) The applicant and/or his, her, or its partners and affiliates on the project have not had a foreclosure on any of its or their properties in the last four years.
(ii) The applicant and/or his, her, or its partners and affiliates on the project, and any companies in which any such person has held a controlling interest, have not filed for bankruptcy within the past four years.
(iii) The applicant and/or his, her, or its partners and affiliates on the project have no outstanding civil judgments.
(h) All fees imposed by a government agency other than the city either shall have been paid or shall have been the subject of a fee deferral agreement between the applicant and the agency imposing the fees.
(2) The fee deferral agreement shall be approved and executed by the city administrator or designee. All such approvals shall be based on the criteria in subsection (1) of this section, and may be withheld if the approval criteria are not met, or if the approval criteria are met and if the city administrator finds that it is not in the city’s interest to approve a fee deferral agreement.
(3) Upon execution of a fee deferral agreement, the city shall record the fee deferral agreement and any related security documents, if applicable, against the real property subject to the fee deferral agreement in the amount of the deferred fees. Upon payment in full of the deferred fees, the city shall remove the lien from the subject property. [Ord. 417 § 3, 2019]
11.45.035 Program application.
An application for deferral of development impact fees may be submitted concurrently with or in advance of any application for building permits for the approved development project. Notwithstanding any other provision of this code, in no event shall a building permit be issued until either of the following occurs:
(1) Payment of all applicable fees due; or
(2) Execution of a fee deferral agreement and payment of all nondeferred applicable development fees. [Ord. 417 § 3, 2019]
11.45.040 Interest.
For all residential and nonresidential approved development projects for which a fee deferral agreement has been approved and executed, no interest shall accrue during the maximum fee deferral period. However, in the event deferred fees are not paid within the maximum fee deferral period, a penalty equal to the annual rate of interest earned by the city of Biggs on the investment of pooled funds, computed on the unpaid amount from the date of execution of the fee deferral agreement to time of payment, shall be due and payable. [Ord. 417 § 3, 2019]
11.45.045 Fee adjustments.
Deferred fees shall be paid at the rate or rates applicable at the time of issuance of the building permit. [Ord. 417 § 3, 2019]
11.45.050 Administration charge.
The city council may, by resolution, establish a processing and administration fee to cover the reasonable costs of administering the fee deferral program established by this chapter. This processing and administration fee shall be placed in the general fund and shall provide a revenue source to cover the costs of preparing the fee deferral agreement and tracking the deferred fees. [Ord. 417 § 3, 2019]