Chapter 16.74
DEVELOPMENT IMPACT FEES

Sections:

16.74.010    Purpose and intent.

16.74.020    Definitions.

16.74.030    Development impact fees.

16.74.040    Traffic infrastructure fee.

16.74.042    City Hall and public works facilities fee.

16.74.044    Community center facilities fee.

16.74.046    Lakeside facilities fee.

16.74.048    Animal shelter facilities fee.

16.74.049    Fire facilities fee.

16.74.060    Resolution establishing the amount of development impact fees.

16.74.070    Determination of development impact fees.

16.74.080    Payment of fees for nonresidential development.

16.74.090    Payment of development impact fees on residential development.

16.74.100    Delinquency, penalty and interest.

16.74.110    Administration of development impact fees.

16.74.120    Consideration in lieu of fee – Credits.

16.74.130    Development impact fee nonexclusive.

16.74.140    Determination of development impact fees – Appeals.

16.74.010 Purpose and intent.

The City Council finds that Lake Elsinore is a rapidly growing City. The City’s population has the potential to grow from a current population of about 34,000 to approximately 80,000 at year 2025. As a result, new development of land within the City imposes increased demands on the City’s capital improvements and operational services. This chapter establishes the program for the adoption and administration of development impact fees by the City for the benefit of the citizens whereby as a condition to the issuance of a building permit or certificate of occupancy by the City the property owner or land developer will be required to pay development impact fees or provide other consideration to the City for the purpose of defraying the costs of public expenditures for capital improvements (and operational services to the extent allowed by law) which will benefit such new development. The development impact fees established herein shall be imposed in an amount based upon a unit of measurement, including, but not limited to, the gross square footage, number of acres, number of lane miles, number of residential dwelling units, or some similarly fair and reasonable basis in order to finance the above-referenced capital improvement and operational services, the demand for which is generated by new development in the City. [Ord. 1081 § 1, 2002].

16.74.020 Definitions.

Unless the context shall require otherwise, the definitions set forth in this section shall apply to the following terms as used in this chapter:

“Accessory structure” means private garages, children’s playhouses, antennas, windmills, silos, tank houses, workshops, barns, coops and other buildings that are accessory to a one-family or two-family dwelling.

“Animal shelter facilities” means animal shelter facilities that will primarily serve residents in the City by providing animal control and adoption services, including planning, preliminary engineering, engineering design studies, land surveys, issuance of permits, and construction of animal shelter facilities construction projects.

“Building permit” means the permit required for new construction and additions pursuant to this title. The term “building permit,” as used herein, shall not be deemed to include permits required for remodeling, rehabilitation, or other improvements to an existing structure or rebuilding a damaged or destroyed structure, provided there is no increase in gross floor area of commercial or industrial development or in the number of dwelling units in residential developments resulting therefrom.

“Capital improvements” means any and/or all of the public facilities and infrastructure improvements, including acquisition of land, design and construction, equipping and installing, and related capital costs which are to be financed in whole or in part by the imposition of development impact fees.

“Capital improvements program” means the City’s annually updated program indicating the approximate location, size, time schedule and estimates of cost for public facilities and improvements.

“City” means the City of Lake Elsinore, a municipal corporation.

“City Council” means the City Council of the City.

“City Hall and public works facilities” means the City Hall and public works facilities that serve both homes and businesses Citywide, including planning, preliminary engineering, engineering design studies, land surveys, issuance of permits, and construction of City Hall and public works facilities construction projects.

“Commercial development” means any development designated or intended to be occupied or used for retail commercial, nonretail commercial, general business or other commercial purposes, including sleeping rooms in hotels and motels with or without kitchens or kitchen facilities. It does not mean repair or replacement of a commercial building which has been accidentally damaged or destroyed by natural causes or human activity provided there is no increase in the floor area of the building.

“Community center facilities” means community center facilities that will primarily serve residents in the City by providing space and facilities for recreation and similar programs, including planning, preliminary engineering, engineering design studies, land surveys, issuance of permits, and construction of community center facilities construction projects.

“Department” means the Community Development Department of the City.

“Development” or “development project” means any manmade change to improved or unimproved real property, the use of any principal structure or land, or any other activity that requires issuance of a development permit.

“Development impact fees” means any monetary exaction, other than a tax or special assessment, which is charged to an applicant in connection with approval of a development project for the purpose of defraying all or a portion of the cost of capital improvements and operational services related to the development project, subject to the exceptions set forth in California Government Code Section 66000 et seq.

“Development permit” means any permit or approval from the City of Lake Elsinore including, but not limited to, a General Plan amendment, zoning or rezoning of property, a conditional use permit, subdivision map, revised final planned development, building permit or other permit for construction or reconstruction, and certificates of occupancies.

“Fire facilities” means fire stations and similar public safety facilities that will primarily serve residents in the City by providing the physical facilities necessary to support fire, paramedic and emergency response programs, including the cost of planning, preliminary engineering, engineering design studies, land surveys, issuance of permits, and construction of such facilities construction projects.

“General Plan” means the City of Lake Elsinore General Plan.

“Industrial development” means any development designed or intended for manufacturing, processing, research, warehousing or similar uses. It does not mean repair or replacement of an industrial building which has been accidentally damaged or destroyed by natural causes or human activity provided there is no increase in the floor area of the building.

“Lakeside facilities” means lakeside facilities that will primarily serve residents in the City by providing recreation at the lake, including planning, preliminary engineering, engineering design studies, land surveys, issuance of permits, and construction of lakeside facilities construction projects.

“Nonresidential development” means any development project except for those projects or portion of the project that contains residential development.

“Operational services” means public services and maintenance which are to be financed in whole or in part by the imposition of development impact fees, subject to the restrictions set forth in Government Code Section 65913.8 and any other applicable law.

“Residential development” means any development consisting of one or more dwelling units. For purposes of this chapter, residential development does not mean:

1. Any addition to an existing single-family home or accessory structures; or

2. Repair or replacement of a residential building which has been accidentally damaged or destroyed by natural causes or human activity provided there is no increase in the number of dwelling units.

“Traffic infrastructure” means transportation planning, preliminary engineering, engineering design studies, land surveys, issuance of permits, and construction of any street and traffic construction project. [Ord. 1181 § 1, 2006; Ord. 1153 § 1, 2005; Ord. 1081 § 1, 2002].

16.74.030 Development impact fees.

In order to implement the goals, objectives, policies and specific actions of the General Plan of the City, the capital improvement program and the City’s annually adopted budget; to protect the health, safety and general welfare of the City’s population; to mitigate impacts of new development on the level of service capacity in existing facilities; and to ensure that the burdens of financing capital improvements and operational services are borne by the development projects benefited thereby, every person constructing any new residential, commercial or industrial development shall pay to the City prior to issuance by the City of the appropriate development permit, the development impact fee set forth hereinbelow and such other development impact fees as the City Council may adopt by resolution or ordinance as necessary and appropriate from time to time. [Ord. 1081 § 1, 2002].

16.74.040 Traffic infrastructure fee.

To mitigate the additional traffic burdens created by new development to the City’s arterial and collector street system, a development impact fee identified as the traffic infrastructure fee will be imposed on all new development in the City to finance the costs of traffic infrastructure.1 [Ord. 1081 § 1, 2002].

16.74.042 City Hall and public works facilities fee.

To mitigate the additional burdens created by new development for City Hall and public works facilities, a development impact fee identified as the City Hall and public works facilities fee will be imposed on all new development in the City to finance the costs of City Hall and public works facilities. [Ord. 1153 § 2, 2005].

16.74.044 Community center facilities fee.

To mitigate the additional burdens created by new development for community center facilities, a development impact fee identified as the community center facilities fee will be imposed on all new development in the City to finance the costs of community center facilities. [Ord. 1153 § 3, 2005].

16.74.046 Lakeside facilities fee.

To mitigate the additional burdens created by new development for lakeside facilities, a development impact fee identified as the lakeside facilities fee will be imposed on all new development in the City to finance the costs of lakeside facilities. [Ord. 1153 § 4, 2005].

16.74.048 Animal shelter facilities fee.

To mitigate the additional burdens created by new development for animal facilities, a development impact fee identified as the animal shelter facilities fee will be imposed on all new development in the City to finance the costs of animal facilities. [Ord. 1153 § 5, 2005].

16.74.049 Fire facilities fee.

To mitigate the additional burdens created by new development for City fire facilities, a development impact fee identified as the fire facilities fee will be imposed on all new development in the City to finance the costs of fire facilities. [Ord. 1181 § 2, 2006].

16.74.060 Resolution establishing the amount of development impact fees.

The City Council shall by resolution establish the amount of the development impact fees specified in this chapter, which resolution(s) shall be consistent with the requirements of Assembly Bill 1600 (Chapter 927 Statutes 1989) as set forth in California Government Code Section 66000 et seq. and shall include the following:

A. Identify the purpose of the fee;

B. Identify the use to which the fee will be put;

C. Determine how there is a reasonable relationship between the fee’s use and the type of development project on which the fee is imposed;

D. Determine how there is a reasonable relationship between the need for the public facility and the type of development project on which the fee is imposed; and

E. Determine how there is a reasonable relationship between the specific amount of the fee imposed on a development project and the cost of the needed public facilities attributable to that development project. [Ord. 1081 § 1, 2002].

16.74.070 Determination of development impact fees.

Upon the receipt by the Department of an informal request or of an application by a property owner or land developer for any development action, the Department shall determine and give written notice to the property owner or land developer of the applicability of this chapter to the development, the amount, if any, of developable land to which such approval relates and the amount of the fee(s) payable pursuant to the resolution(s) adopted pursuant to LEMC 16.74.060, which may be expressed in terms of a formula. The Department need not give written notice to the property owner or land developer for informal requests or in the event that it determines that no fee relating to such development is payable pursuant to this chapter and the resolution(s). [Ord. 1081 § 1, 2002].

16.74.080 Payment of fees for nonresidential development.

After the adoption by the Council of a resolution establishing the amounts of the development impact fees, no building permit shall be issued and no development shall be permitted on any nonresidential land within the City unless and until the development impact fees relating to such development and established by the resolution(s) adopted pursuant to LEMC 16.74.060 has been paid unless a determination has been made by the Department that no fee is payable pursuant to this chapter. [Ord. 1081 § 1, 2002].

16.74.090 Payment of development impact fees on residential development.

After the adoption by the Council of a resolution establishing the amounts of the development impact fees, no certificate of occupancy shall be issued and no occupancy shall be permitted on any residential land within the City unless and until the development impact fees relating to such development and established by the resolution(s) adopted pursuant to this chapter has been paid unless a determination has been made by the Department that no fee is payable pursuant to this chapter. For residential development containing more than one dwelling, the development fees for the entire development shall be payable on a lump sum basis prior to the first dwelling unit in the development receiving a certificate of occupancy. If the development impact fee specified herein is not fully paid at the time of issuance of a building permit for any portion of the development, the Department may require the property owner or land developer, as a condition of issuing the building permit, to execute a contract to pay the development impact fee, or applicable portion thereof, within the time specified herein and take such other steps to secure such obligation as allowed under Government Code Section 66007(c). [Ord. 1081 § 1, 2002].

16.74.100 Delinquency, penalty and interest.

If construction of any residential, commercial or industrial development is commenced without payment of the applicable development impact fees herein set forth and without obtaining a building permit therefor, such fees shall become delinquent at the time such construction is commenced. There shall be added to such delinquent fees a penalty of 10 percent, which shall thereupon become payable. The fees and penalty shall bear interest at the rate of 0.833 percent per month or portion thereof until paid, but in no event shall such interest exceed the maximum rate of interest permitted by law. Such action shall also be subject to payment of building permit fees and penalties as established by the City Council. [Ord. 1081 § 1, 2002].

16.74.110 Administration of development impact fees.

All of the fees collected pursuant to this chapter shall be deposited into separate specific amounts for capital improvements and operational services of the City. These funds and any interest earnings thereon shall be used solely for the purposes specified for funds of such account and solely for the financing of capital improvements and operational services or to reimburse the City for capital improvements and operational services funded or constructed in whole or in part by the City. [Ord. 1081 § 1, 2002].

16.74.120 Consideration in lieu of fee – Credits.

A. Notwithstanding the provision of LEMC 16.74.030 and 16.74.070, upon application by a property owner or land developer, the City Council may accept consideration in lieu of the development impact fees required pursuant to this chapter, provided:

1. The City Council, upon recommendation of the City staff, finds that the substitute consideration proposed has a value equal to or greater than such fee; and

2. The substitute consideration is in a form acceptable to the City Council.

B. A property owner or land developer may elect to construct capital improvement(s). If the property owner or land developer elects to construct such improvement(s), the property owner or land developer must enter into an agreement with the City prior to issuance of any building permit by the City or, alternatively, complete such capital improvement(s) prior to the issuance of the certificate of occupancy. To the extent that the Department determines that an agreement is necessary, the agreement must establish the estimated cost of the improvement(s), the schedule for initiation and completion of the improvement(s), a requirement that the improvement(s) be completed to City standards, and such other terms and conditions as deemed necessary by the City.

C. A developer of a commercial or industrial enterprise may be entitled to a reduction deferral in development impact fees if the City Council determines by resolution that such types of development will contribute a significant amount of sales tax to the City, will create a substantial number of jobs, or will enhance the City’s quality of life or produce other desirable benefits to the community, commercial or industrial enterprise. [Ord. 1081 § 1, 2002].

16.74.130 Development impact fee nonexclusive.

The development impact fees established herein are additional and supplemental to, and not in substitution of, any other requirements imposed by the City on the development of land or the issuance of building permits. The development impact fee(s) are intended to be consistent with and to further the goals, objectives, policies and specific actions of the General Plan of the City; the report; and other City policies, ordinances and resolutions by which the City seeks to ensure the provision of public facilities and services in conjunction with the development of land. In no event shall a property owner or land developer be obligated to pay for capital improvements and operational services in an amount in excess of the amount calculated pursuant to this chapter and the resolution(s) adopted pursuant to LEMC 16.74.060; provided, however, a property owner or land developer may be required to pay, pursuant to City ordinances, regulations or policies for other public facilities and services, including, without limitation, subdivision improvements and other fees associated with development. [Ord. 1081 § 1, 2002].

16.74.140 Determination of development impact fees – Appeals.

A. If the property owner or land developer for any development project feels that the development impact fee(s) assessed to his or her development do not accurately reflect the project’s fiscal impacts, the property owner or land developer may, at his or her own expense, undertake an independent financial analysis of the development project, per the requirements of the “Guidelines for Independent Analysis” contained within the report. Such financial analysis shall be submitted to the Department for review. The Department may recommend the original development impact fee(s), as derived by the urban structure program model established by the report, is accurate and will apply to the project; the independent analysis and estimate of the development impact fee(s) are accurate and will apply to the project; a negotiated estimate of the development impact fee(s) is agreed upon to apply to the project; or that additional information and further study is required from the property owner or land developer. Any property owner or land developer aggrieved by the determinations of the department hereunder may appeal said determinations pursuant to the uniform appeal procedure set forth in Chapter 2.44 LEMC.

B. If the City Council finds and determines that the amount of the development impact fee(s) deposited exceeds the amount of the development impact fee(s) required by the development project, the difference shall be reimbursed to the property owner or the land developer.

C. If the notice of appeal is accompanied by a cash deposit in an amount equal to the development impact fee(s) due as calculated by the Department, the Chief Building Official shall issue the building permit. The filing of an appeal shall not stay the collection of the development impact fee(s). [Ord. 1081 § 1, 2002].

EXHIBIT A

CITY OF LAKE ELSINORE TRAFFIC INFRASTRUCTURE FEE

Single-Family Residential

$1,197 per unit

Multifamily Residential

$838.00 per unit

Commercial Building

$3.35 per square foot

Office Building

$1.25 per square foot

Industrial Building

$0.71 per square foot


1

Editor’s Note: Traffic infrastructure fees may be found at the end of this chapter as Exhibit A.