Chapter 3.27
TRANSFERABLE DEVELOPMENT CREDITS IN-LIEU FEE

Sections:

3.27.010    Intent and purpose.

3.27.020    Findings.

3.27.030    Definitions.

3.27.040    Applicability – Exemptions.

3.27.050    Amount of fee.

3.27.060    Time of payment.

3.27.070    Use of funds.

3.27.080    Accounting.

3.27.010 Intent and purpose.

The purpose of this chapter is to implement policies adopted in the 2003 general plan and the North Livermore urban growth boundary initiative. It is the City’s policy, expressed in these documents, that new residential development on TDC receiving areas as identified in the 2003 – 2025 general plan or any subsequent general plan amendments that allow for new residential land use designations or increases in residential density shall acquire TDCs or pay an in-lieu fee in order to construct any dwelling units beyond that which is permitted by the parcel’s baseline density identified in the general plan. (Ord. 2065 § 1(A), 2018; Ord. 1785 § 1, 2006)

3.27.020 Findings.

The City Council makes the following findings:

A. The North Livermore urban growth boundary initiative establishes the transferable development credits program. The TDC program grants development credits to properties in North Livermore. The development credits may be acquired by properties located with the City boundary and urban growth boundary and designated as TDC receiving areas in the general plan, to exceed the designated baseline density.

B. Development credits shall be provided by either directly acquiring easements from properties in North Livermore or through the payment of the in-lieu fee equal to the number of credits necessary to exceed the baseline density.

C. The in-lieu fee will fund the acquisition of easements for the permanent protection of agriculture and other open space lands in the North Livermore area. Through agreement, the City may coordinate with a land trust on the use of the fee revenues consistent with the purpose of the fee. (Ord. 2065 § 1(A), 2018; Ord. 1785 § 1, 2006)

3.27.030 Definitions.

In this chapter:

“Baseline density” means the maximum density allowed in TDC receiving areas and TDC receiving zones when property owners choose not to use the TDC option. When property owners choose to use the TDC option, baseline density shall be calculated as the maximum density allowed under the range of densities in the baseline component of the TDC receiving area general plan designation.

“North Livermore” is the area bounded by the Livermore urban growth boundary, the city of Dublin sphere of influence boundary on June 30, 2002, the Alameda-Contra Costa Counties boundary, Vasco Road, and the north and east boundary of the Vasco-Laughlin specific plan area, east of Vasco Road, on June 11, 2001.

“Transferable development credits (TDCs)” means the credits granted under the initiative that may only be used in compliance with the initiative and this chapter.

“TDC option” means the general plan designation and Livermore Development Code requirements that apply when owners of property in TDC receiving areas and TDC receiving zones apply to exceed baseline density in compliance with all requirements.

“TDC receiving area” means a general plan classification that allows baseline uses and densities when property owners choose not to use the TDC option but provides for higher than baseline density and alternative development regulations when property owners elect to use the TDC option.

“TDC receiving zone” means a zoning district that allows baseline uses and densities when property owners choose not to use the TDC option but provides for higher than baseline density and alternative development regulations when property owners elect to use the TDC option.

“TDC sending area” means the North Livermore area described in the initiative and the 2003 – 2025 general plan in which property owners can choose to record easements, create TDCs and transfer TDCs in compliance with this section. (Ord. 1901 § 3 (Exh. A § 6), 2010; Ord. 1785 § 1, 2006)

3.27.040 Applicability – Exemptions.

A. Applicability. This chapter applies to each residential development in the City located on a TDC receiving area that elects to exceed the baseline density identified in the 2003 general plan; provided, however, that the City Council may, through adoption of a specific plan and implemented consistently by development agreement, make modifications to the transferable development credits regulations to meet the specific plan’s density, design policies, and goals that are not inconsistent with the transferable development credit program established in LDC 4.02.060.

B. Exemptions. This chapter does not apply to:

1. Residential development located within the boundaries of the downtown specific plan planning area, designated as downtown area on the general plan land use map, adopted by the City Council on February 9, 2004, as amended from time to time.

2. Housing units that are covered by an affordable housing agreement with the City including, but not limited to, housing units provided under state law as implemented through LDC 6.02.030, Density bonuses for affordable and senior housing, affordable units provided consistent with other general plan policies, or units provided consistent with the City’s inclusionary housing requirements per LDC 10.06.050. (Ord. 2151 § 7(A), 2023; Ord. 2065 § 1(A), 2018; Ord. 1901 § 3 (Exh. A § 7), 2010; Ord. 1785 § 1, 2006)

3.27.050 Amount of fee.

A. Amount Set by Resolution. The amount of the TDC in-lieu fee shall be established by resolution of the City Council. Once the fee is established, it shall be reevaluated and revised, as appropriate, biannually.

B. Methodology. The City Council shall establish the amount of the in-lieu fee based on the following:

The initial fee shall be based on the following calculation:

Property valuation per TDC (Baseline)

+

Easement Prepara-tory Cost per TDC

+

Endow-ment for long-term manage-ment of easement per TDC

=

TDC In-Lieu Fee

1. The property valuation per TDC shall be determined through an analysis of recent property sales in North Livermore, or other comparable lands as appropriate, and the valuation of easement acquisitions, as available and appropriate.

2. The easement preparatory costs per TDC shall include costs associated with preparation of an easement, including, but not limited to, staff and

administrative time and materials, appraisals, preparation of baseline reports, legal descriptions, title insurance, and other required fees and taxes.

3. The endowment for long-term management of the easement per TDC includes necessary staff and administrative time and material associated with the long-term management of the easement. (Ord. 2065 § 1(A), 2018; Ord. 1785 § 1, 2006)

3.27.060 Time of payment.

A. When a final subdivision map would create an entitlement to exceed the baseline density in a TDC receiving zone, payment of the corresponding TDC in-lieu fee shall be a condition of approval placed on the tentative map. This condition shall be satisfied prior to final map approval.

B. When site plan approval would create an entitlement to exceed baseline density in a TDC receiving zone, payment of the corresponding in-lieu fee shall be a condition of approval. This condition shall be satisfied prior to issuance of building permits.

C. Deferred Fee Program. The City Council may, by resolution, adopt administrative guidelines to provide a special fee deferral program in response to unprecedented conditions such as extraordinary economic changes. (Ord. 2065 § 1(A), 2018; Ord. 1890 § 1, 2009; Ord. 1785 § 1, 2006)

3.27.070 Use of funds.

A. Revenues from TDC in-lieu fees shall be used for the acquisition of TDCs from North Livermore. TDC in-lieu fees may be used in conjunction with other funds available for acquisition and/or preservation of open space and/or agricultural lands in North Livermore. When TDC in-lieu fees are used with other preservation funds, TDC credits on the subject property shall be retired.

B. Other than TDC acquisition, revenue from TDC in-lieu fees shall only be used for costs incurred in administering the TDC program including but not necessarily limited to facilitating TDC transactions, preparing/recording TDC easements, monitoring/enforcing easements and maintaining records. TDC in-lieu fee revenues may be used to offset the administration costs incurred by the City and/or by a land trust authorized by the City to administer portions of the TDC program. (Ord. 2065 § 1(A), 2018; Ord. 1785 § 1, 2006)

3.27.080 Accounting.

The City shall deposit the in-lieu fees in a separate fund, and avoid commingling with other funds except for temporary investments. The funds shall be expended only for the purposes set forth in LMC 3.27.070. Any interest earned by moneys in the fund shall also be deposited in the fund and only used for the intended purposes. (Ord. 2065 § 1(A), 2018; Ord. 1785 § 1, 2006)