Chapter 16.80
TEMPORARY DEFERRAL OF DEVELOPMENT IMPACT FEES
Sections:
16.80.010 Findings and purpose.
16.80.030 Deferral of development impact fees for residential projects.
16.80.040 Deferral of development impact fees for commercial projects.
16.80.010 Findings and purpose.
The city council finds that the challenges facing the real estate industry in an unstable and fluctuating market pose a significant concern for growth and economic development within the city. The purpose of this chapter is to provide a limited duration temporary economic stimulus incentive to new development projects within the city by allowing eligible applicants to defer certain development impact fees. (Ord. 1165 § 2 (part), 2012)
16.80.020 Definitions.
The following words and phrases are defined for purposes of this chapter as follows:
“Code” means the Folsom Municipal Code.
“Commercial” means those business activities which are permitted or allowed in the appropriate zoning districts as set forth in Title 17, as well as those similar commercial zoning districts in the Folsom plan area specific plan.
“Director” means the director of the community development department of the city.
“Residential” means those activities which are permitted or allowed in the appropriate zoning districts as set forth in Title 17, as well as those similar residential zoning districts in the Folsom plan area specific plan.
“Subject property” means the real property upon which the city’s development impact fees are sought to be deferred. (Ord. 1165 § 2 (part), 2012)
16.80.030 Deferral of development impact fees for residential projects.
A. Notwithstanding any other provisions of this code, some or all of the city’s development impact fees imposed on new residential projects with subdivision maps of ten lots/units or more may, at the request of the developer or the property owner, be deferred on a case-by-case basis without incurring interest, based upon an eligibility criteria established by the director of the community development department with concurrence of the city manager, until the date of the final inspection or at the close of escrow on the affected parcel, whichever first occurs, but in no event later than twelve months from the date of issuance of the building permit.
B. No deferral shall be effective until developer and property owner execute an agreement in a form acceptable to the city attorney, approved by the city manager and recorded as a lien against the subject property, with a deed of trust in favor of the city, until all deferred impact fees are paid. Deferral agreements may defer fees for no more than fifteen units at any one time. The term of the deferral agreement may not exceed three years from the date of the recordation of the first final map or the effective date of the agreement, whichever comes first. (Ord. 1165 § 2 (part), 2012)
16.80.040 Deferral of development impact fees for commercial projects.
A. Notwithstanding any other provisions of this code, some or all of the city’s development impact fees imposed on new commercial buildings and structures with a minimum of five thousand square feet in interior space may, at the request of the developer or the property owner, be deferred on a case-by-case basis based upon an eligibility criteria established by the director of the community development department with concurrence of the city manager, until the date of the final inspection or issuance of a certificate of occupancy on the affected commercial project, whichever first occurs, but in no event later than twelve months from the date of issuance of the building permit.
B. No deferral shall be effective until developer and property owner execute an agreement in a form acceptable to the city attorney, approved by the city manager and recorded as a lien against the subject property, with a deed of trust in favor of the city, until all deferred impact fees and accrued interest are fully paid.
C. Interest on unpaid fees for commercial projects shall accrue from the date of the building permit until the deferred impact fees and all accrued interest is paid, at a rate not less than the annual rate of interest which the city earns on its investment of pooled funds. (Ord. 1224 § 2, 2015: Ord. 1165 § 2 (part), 2012)
16.80.050 Cost recovery.
All noncity costs and/or fees incurred (or that will be incurred) by the city in processing the fee deferral request shall be borne and paid for by the applicant at the time of the request. (Ord. 1165 § 2 (part), 2012)
16.80.060 Default.
Notwithstanding any provision to the contrary, should the deferred impact fees not be paid at the time when they become due and payable:
A. All remaining and unpaid impact fees shall be accelerated and become immediately due and payable; and
B. Regardless of the type of the project (residential or commercial), interest on unpaid fees subject to the fee deferral agreement shall accrue from the date of issuance of the initial building permit until the deferred impact fees and all accrued interest is paid, at the annual rate of interest which the city earns on its investment of pooled funds; and
C. An additional one thousand dollars shall be added to the unpaid amount to cover the initial administrative costs incurred in processing the fee deferral application; and
D. The city may pursue collection through all available legal and administrative means including, but shall not be limited to, judicial or nonjudicial foreclosure of the recorded lien against the subject property and/or civil judgment against the developer and/or the property owner for breach of the fee deferral agreement and/or the security provided hereunder. (Ord. 1165 § 2 (part), 2012)
16.80.070 Applicability.
This chapter and the incentives derived hereunder shall apply only to new development projects that have not obtained a building permit from the city at the time this chapter is adopted by the city council. (Ord. 1224 § 3, 2015: Ord. 1165 § 2 (part), 2012)