Chapter 3.7
LOANING OR TRANSFER OF DEVELOPMENT FEE UNIT CREDITS
Sections:
3.7.04 Loaning or Transfer of Development Fee Unit Credits Authorized.
3.7.01 Title.
This chapter shall be known as the Loaning or Transfer of Development Fee Unit Credits. Although this chapter regulates the payment of fees prescribed by the Zoning Ordinance of the City of Clovis, it shall not be deemed a part thereof. (98-11, Added, 07/13/1998, Effective August 13, 1998)
3.7.02 Purpose.
The development of real property within the City creates demands on existing municipal facilities, improvements, and services. Various development fees and charges are imposed upon new development in order to mitigate such demands. The Sewer and Water Major Facilities Fees are development impact fees based on a unit calculation and paid with the issuance of development entitlements. Once paid, these unit fees are associated with that particular parcel and, providing the unit obligation of the parcel has been met in accordance with the current code, are considered paid into perpetuity. Should the existing structure be demolished, abandoned, or the use changed the current units would remain with the parcel. This may result in units previously paid not being utilized. This has been the case with properties owned by the City of Clovis. The City of Clovis has accrued a number of development fee unit credits from various projects where existing structures connected to Sewer and Water services were demolished either by the City or other public agency. These unit credits have been established in a banking system to be held for future use. The purpose of this ordinance is to allow the City to loan or transfer these existing banked units to developing parcels within the City of Clovis, to minimize the development fee costs due at the time of the issuance of the building permits, to minimize initial cost of development and provide for future payment at a time when development funds may be more readily available to the developer. This loan or transfer shall facilitate and encourage business to develop in the City of Clovis offering employment opportunities and sales tax revenue to the City and to residents of the City. (98-11, Added, 07/13/1998, Effective August 13, 1998)
3.7.03 Definitions.
Unless the particular provision or the context otherwise requires, the definitions and provisions contained in this section shall govern the construction, meaning, and application of words and phrases used in this article. The definition of each word or phrase shall constitute, to the extent applicable, the definition of each word or phrase which is derivative from it, or from which it is a derivative, as the case may be.
(a) “Banked Unit Credit” shall mean units previously paid and removed from private ownership and usage by virtue of acquisition of the property by the City and/or by another public agency. The removal from private use and ownership disassociates Units previously paid for the property from the property and allows for such units to be banked.
(b) “Banked Unit Credit Committee” shall mean the Assistant City Manager, City Engineer, Director of Planning and Development Services, the Finance Director and the Director of Public Utilities.
(c) “City” shall mean the City of Clovis, the Clovis Community Development Agency, the Clovis Municipal Development Corporation and any other not for profit or governmental entity wholly and completely founded, organized and controlled solely by the City of Clovis.
(d) “Development Entitlement” shall mean a general plan amendment, specific plan amendment, zone district amendment, conditional use permit, site plan, tentative tract map, tentative parcel map, building permit, initiation of water or sewer service, or other permit or entitlement authorizing the development of real property or the construction of a structure thereon.
(e) “Development Fee” shall mean a charge or fee imposed by this code or by council resolution as a condition of the approval or issuance of a development entitlement or the right to connect property to the City water or sewer system, the proceeds of which fee or charge are to be utilized for the acquisition or construction of capital facilities.
(f) “Owner/developer” shall mean any person shown as the owner of land on the last equalized assessment roll or any person entitled to be shown as owner of land on the next assessment roll and/or the authorized representative of the owner of land.
(g) “Unit” shall mean a room or suite of rooms which is occupied by one family for living and sleeping purposes, including a single-family residence, mobile home, apartment, townhouse, flat, or condominium.
For commercial industrial, professional, institutional, or similar uses, a unit shall be rounded to the nearest tenth (0.1) of a unit and shall be defined as 9,680 square feet of gross lot acreage or fraction thereof.
For hotels, motels and assisted living facilities, a unit shall be rounded to the nearest tenth (0.1) of a unit and shall be defined as each 1,500 square feet, or fraction thereof, of gross building area.
For public schools, a “unit” shall be rounded to the nearest tenth (0.1) of a unit and shall be defined as 1,500 square feet or fraction thereof of the total gross building area of the buildings at the school. (98-11, Added, 07/13/1998, Effective August 13, 1998)
3.7.04 Loaning or Transfer of Development Fee Unit Credits Authorized.
Whenever a provision of this code or council resolution authorizes the loaning or transfer of development fee unit credits pursuant to this section, the Banked Unit Credit Committee may elect to loan or transfer development fee unit credits for sewer and water major facilities to commercial, industrial, professional, or institutional development by requiring the Owner to enter into an agreement with the City as follows:
(a) The loaning or transfer of units and the amount of units to be loaned or transferred shall be determined in the manner consistent with the adopted Banked Unit Credits Policy. The Banked Unit Credit Committee shall consider the City’s debt obligations in making the decision to loan or transfer units.
(b) The unit fees shall be charged at the rate in effect at the time of the date of the agreement.
(c) Repayment of loaned unit credits shall be as determined by the Banked Unit Credit Committee.
(d) The agreement authorizing loan or transfer of development fee units shall be in a form approved by the Banked Unit Credit Committee and signed on behalf of the City by the Finance Director.
(e) The agreement shall be signed by all persons having a record interest in the real property for which the unit credits are being loaned or transferred and shall include a legal description of that property.
(f) The agreement shall provide that the whole or any part of the balance of the charges due may be accelerated and paid at any time at the option of the payer.
(g) The agreement shall constitute a covenant running with the land, establish a lien on the property in favor of the City in the amount of the loaned or transferred unit charges, and be recorded in the office of the Fresno County Recorder.
(h) The lien for said fee shall be enforceable by the City in any manner available at law or in equity, including but not limited to private foreclosure and sale of the property in the manner provided in Section 2924 of the California Civil Code.
(i) The Agreement shall be subject to a preparation and processing fee established by the City.
(j) The Developer shall be required to execute a Deed of Trust and Promissory Note in the total amount of the loaned or transferred units as well as to provide a promissory note in the same amount. This document shall be recorded in the office of the Fresno County Recorder. (98-11, Added, 07/13/1998, Effective August 14, 1998)