Chapter 3.43
DEFERRED PAYMENT OF DEVELOPMENT IMPACT FEES

Sections:

3.43.010    Findings and intent.

3.43.020    Eligibility for the deferred payment of development impact fees.

3.43.030    Application for the deferred payment of development impact fees.

3.43.040    Security for payment of development impact fees.

3.43.010 Findings and intent.

The City Council finds and determines that numerous social services of benefit to the community are provided by tax-exempt organizations that develop nonresidential buildings and structures within the City. The City Council further finds and determines that the implementation of policies and procedures that authorize qualified tax-exempt organizations to defer the payment of development impact fees required under Chapters 3.38 and 3.40 PMC will have the salutary effect of expediting the construction of new nonresidential developments that will be used, in whole or in part, to provide social services for the benefit of residents of this community. (Ord. 1187 § 3, 2001)

3.43.020 Eligibility for the deferred payment of development impact fees.

(A) The payment of development impact fees required under Chapters 3.38 and 3.40 PMC for nonresidential developments may be deferred for a period not to exceed five years from the date that they would otherwise be payable if the developer meets the following requirements:

(1) The developer is a tax-exempt organization duly qualified as such by the Internal Revenue Service and by the California Franchise Tax Board.

(2) The developer will, upon completion and occupancy of the proposed nonresidential development, use buildings or structures within that development for the purpose of providing to residents of the City, on a nondiscriminatory basis, social services that fall within one or more of the following categories:

(a) Health care services;

(b) Parenting services;

(c) Marriage counseling services;

(d) Substance abuse counseling and services;

(e) Pre-school or day-care services;

(f) Programs and services benefiting the economically disadvantaged;

(g) Youth services and activities;

(h) Senior services and activities.

(3) The developer submits to the City Manager an application for the deferred payment of development impact fees that contains, at a minimum, the information specified below in PMC 3.43.030, and complies with all other applicable requirements of this chapter.

(B) The City Manager is authorized to determine the eligibility of any tax-exempt organization for the deferred payment of development impact fees as provided for in this chapter; provided, however, that the City Manager’s determination of ineligibility will be subject to appeal to the City Council by the applicant. (Ord. 1187 § 3, 2001)

3.43.030 Application for the deferred payment of development impact fees.

(A) A developer meeting the threshold requirements of PMC 3.43.020 may submit to the City Manager, on a form to be provided by the City, an application for the deferred payment of development impact fees. This application, at a minimum, will require the following information:

(1) The full legal name, address and employer identification number of the tax-exempt organization that is the developer of the proposed nonresidential development;

(2) The name, address, and telephone number of the principal representative of the tax-exempt organization;

(3) The names, addresses, and titles of the officers, directors, trustees, etc., of the tax-exempt organization;

(4) A description of the proposed nonresidential development, the nature and amount of development impact fees that are requested to be deferred, and the requested deferral period, not to exceed five years;

(5) Documents that evidence the formation of the tax-exempt organization and its status as a corporation, partnership, trust, limited liability company, unincorporated association, or other form of entity;

(6) Copies of exempt organization determination letters issued by the Internal Revenue Service and by the California Franchise Tax Board;

(7) A detailed narrative description of the current activities and programs of the tax-exempt organization, as well as the social service programs or activities that will be provided to residents of the City following completion and occupancy of the proposed nonresidential development. With regard to such proposed social service programs or activities, the following additional information should be provided:

(a) The hours, financial resources, personnel and space that will be allocated to these programs or activities;

(b) The manner in which the exempt purpose of the tax-exempt organization will be served by these programs or activities;

(c) The manner in which the availability of these programs or activities will be brought to the attention of the residents of the City;

(d) A statement that describes any limitations or restrictions on participation in these programs or activities by residents of the City and, if so, how participants will be selected;

(e) Whether participants in these programs or activities will be required to pay a fee or charge and, if so, how these fees or charges will be determined and in what amounts;

(8) A statement that the applicant will submit annually to the City, on a form to be provided by the City, a report confirming that the social service programs or activities described in the original application are being provided and, if modified, a description of those modifications;

(9) A statement that the applicant will, as a condition of the deferred payment of development impact fees, enter into an agreement with the City that sets forth the respective rights and obligations of the parties relating to the deferred payment of those fees, including the applicant’s obligation to provide to the City adequate security for payment, as required by the provisions of PMC 3.43.040;

(10) The application must be signed under penalty of perjury by an officer, employee, or authorized agent of the tax-exempt organization.

(B) Within 30 days after the submission of an application containing the information specified in subsection (A) of this section, the City Manager will make a determination whether to authorize the deferred payment of development impact fees as requested by the applicant. If such authorization is granted, it will become effective on the date specified in the agreement between the City and the applicant that sets forth the respective rights and obligations of the parties relating to the deferred payment of the development impact fees. (Ord. 1187 § 3, 2001)

3.43.040 Security for payment of development impact fees.

(A) No authorization by the City Manager of the deferred payment of development impact fees under the provisions of this chapter will become effective until the City has received from the applicant adequate security for the ultimate payment of those deferred fees.

(B) The form of security for ultimate payment of deferred development impact fees by a qualified tax-exempt organization will be specified in the agreement between the City and the tax-exempt organization and may consist of any one or a combination of the following, as may be determined by the City Attorney after consultation with the applicant’s principal representative:

(1) A payment bond, issued by an admitted surety insurer as defined in Section 995.120 of the California Code of Civil Procedure, in a principal sum up to the full amount of the deferred development impact fees.

(2) A deposit with the City of negotiable bonds or an irrevocable letter of credit.

(3) A promissory note secured by a deed of trust on the property owned by the applicant where the proposed development is to be located.

(4) A personal guarantee of payment by one or more individuals who are determined to have the financial capability to satisfy such a guarantee.

(5) Such additional form of security for payment as will adequately protect the interests of the City in collecting the full amount of the deferred development impact fees. (Ord. 1187 § 3, 2001)