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HomeMy WebLinkAboutDeferral of Certain Development Impact Fees for One Year - O (2) Huntington Beach Independent has been adjudged a newspaper of general circulation in Huntington Beach and Orange County by Decree of the Superior Court of Orange County, State of California, under date of Aug. 24, 1994,case A50479. PROOF OF PUBLICATION STATE OF CALIFORNIA ) ) SS. COUNTY OF ORANGE ) I am the Citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen years, and not a party to or interested.in the below entitled matter. I am a principal clerk of the HUNTINGTON BEACH INDEPENDENT, a newspaper of general circulation, printed and published in CITY OF HUNTINGTON BEACH the City of Huntington Beach, County of LEGAL NOTICE ORDINANCE NO.3879 Adopted by the City Council on MAY 3,2010 Orange, State of California, and the "AN.ORDINANCE OF THE CITY OF HUNTINGTON BEACH TEMPORARILY attached Notice Is a true and complete copy SUPERSEDING CERTAIN CITY MUNICIPAL AND ZONING CODE PROVISIONS as was printed and published on the RELATING .TO THE REQUIRED.TIME OF PAYMENT OF SPECIFIC DEVEL- OPMENT IMPACT FEES" SYNOPSIS:' following date(S): RESIDENTIAL•DEVELOPMENT THROUGHOUT THE NATION IS EXPERIENCING A SLOWDOWN. THE BUILDING' INDUSTRY ASSOCIATION, OF ORANGE COUNTY (BIAOC) IS REQUESTING THAT ORANGE COUNTY CITIES ADOPT AN"ECONOMIC STIMULUS"WHEREBY DEVELOPMENT IMPACT FEES(DIF) WOULD BE COLLECTED PRIOR TO THE FINAL`INSPECTION RATHER THAN AT A POINT PRIOR TO CONSTRUCTION. BIAOC CONTENDS THAT HOMEBUILDERS WOULD-REALIZE SIGNIFICANT BENEFITS.IF FEES ARE DEFERRED UNTIL UNITS ARE:READY FOR OCCUPANCY. IT IS THEIR ASSERTION THAT DEFERING FEES WOULD' FREE CAPITAL FOR CON- STRUCTION START-UP DURING THE CURRENT ECONOMIC DOWNTURN. THUS, DEVELOPERS WOULD BE ABLE TO PAY THE REQUISITE FEES ATTHE END OF A 'S CONSTRUCTN CYCLE I TO CASH FLOW May 13, 2010 CONSIDERATIONS PROJECT AND A POTENTIALLY STRONGER uECONOMY'LOCAL JURISDICTIONS THAT HAVE ADOPTED SIMILAR FEE DEFERRAL PROGRAMS j INCLUDE'THE;CITY OF IRVINE, THE CITY OF ORANGE, AND THE COUNTY OF ORANGE, PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting held May.3, 2010 by the following roll call . vote: AYES:Carchio,,Coerper,Hardy;Green;Bohr,,Dwyer,Hansen NOES:None declare, under penalty of perjury, that the ABSTAIN:None ABSENT:None foregoing IS true and Correct. THE,FULL TEXT OF THE ORDINANCE IS AVAILABLE IN THE CITY CLERK'S II g g OFFICE 1 This ordinance Is effective 30'dayys after adoption: III CITY OF HUNTINGTON BEACH= 2000 MAIN STREET HUNTINGTON BEACH,CA 92648, 27 Executed on May 14, 2010 Z.FLYNN-CITY Published Huntington Beach L.dePenj CITY CLERK Beachlnde endent Ma 13,2010 052-689 at Costa Mesa, California - - -- -- - - -- —__, Sig ure 11"4-� uLA 2. �NT12D�uC?70� ; vz?r � ` Council/Agency Meeting Held:_ O-10 Deferred/Continued to:>1�rJpma� 5- 1bord *Appr v* ❑ Conditionally Approved ❑ Denied Ci y I jk' Signat e Council Meeting Date: April 19, 2010 Department ID Number: PL 10-09 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Administrator PREPARED BY: Scott Hess, AICP, Director of Planning and Building Jim Engle, Director of Community Services Travis K. Hopkins, PE, Director of Public Works SUBJECT: Approve Ordinance Extending Deferral of Certain Development Impact Fees for One Year Statement of Issue: Extension of this ordinance for one year would defer the collection of payment of certain Development Impact Fees on residential developments in order to help stimulate the local building economy. Funding Source: Not applicable. However, there would be some short term revenue loss due to loss of interest from the deferral of these fees. Recommended Action: Motion to: Adopt Ordinance No. 3879, "An Ordinance of the City of Huntington Beach Temporarily Superseding Certain City Municipal and Zoning Code Provisions Relating to the Required Time of Payment of Specific Development Impact Fees" to extend Ordinance No. 3827 for one year deferring payment of certain Development Impact Fees. Alternative Action(s): "Take no action and allow Ordinance No. 3827 to expire." Item 19. - Page 1 REQUEST FOR COUNCIL ACTION MEETING DATE: 4/19/2010 DEPARTMENT ID NUMBER: PL 10-09 Analysis: The City Council adopted Ordinance No. 3827 on March 2, 2009, delaying collection of certain Development Impact Fees until final inspection. The fees affected by the Ordinance are: • Parks and Recreation • Library Enrichment • Drainage Fee • Affordable Housing in-lieu fee • Sewer (exclusive of the Orange County Sanitation District fee) The intent of this Ordinance was to assist the local building industry in the expectation that homebuilders would realize significant benefits if fees are deferred until units are ready for occupancy. The Building Industry Association of Orange County (BIAOC) asserted that deferring fees would free capital for construction start-up during the current economic downturn. Thus, developers would be able to pay the requisite fees at the end of a project's construction cycle due to cash flow considerations and a potentially stronger economy. Although there has been a recent uptick in building activity, it would be premature to state that the local building industry has recovered. However, all applicants whose projects were eligible for this program have opted not to take advantage of it and have paid their fees at the time of building permit issuance rather than final inspection. Development Impact Fees (DIF) are assessed on new projects to fairly mitigate the impacts to city infrastructure and services created by the construction of new commercial, industrial and residential projects by providing funding for both new infrastructure and improvements to existing infrastructure. These fees are established and collected pursuant to the Huntington Beach Municipal Code and Zoning and Subdivision Ordinance. As a condition of deferment, applicants for projects over 25 units would need to submit a letter of agreement secured by an irrevocable letter of credit prior to the issuance of building permits in order to guarantee payment from a third party in the event of a bankruptcy. As an alternative, the applicant could record a contract that constitutes a lien. Projects that have filed a tract map or obtained grading permits prior to this ordinance taking effect are not eligible to defer the fees. This would prevent projects that have either paid or obligated their fees from retroactively seeking deferral or even reimbursement of these monies. Environmental Status: Projects over which public agencies exercise ministerial authority are categorically exempt from the California Environmental Quality Act pursuant to Section 15300.1. Strategic Plan Goal: Enhance Economic Development Attachment(s): 1. Ordinance No. 3879 2. Ordinance No. 3827 Item 19. - Page 2 ATTACHMENT # 1 ORDINANCE NO. 3879 AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH TEMPORARILY SUPERSEDING CERTAIN CITY MUNICIPAL AND ZONING CODE PROVISIONS RELATING TO THE REQUIRED TIME OF PAYMENT OF SPECIFIC DEVELOPMENT IMPACT FEES WHEREAS, the City Council of the City of Huntington Beach has adopted certain fees and charges relating to mitigation of the impact of new residential development upon City infrastructure, such as roadways and parks, and to provide for affordable housing by the adoption of those certain ordinances hereinafter specified and enumerated in Section 2 of this ordinance (hereinafter collectively the"Development Impact Fees"); and Pursuant to the provisions of the Huntington Beach Municipal Code and the Huntington Beach Zoning and Subdivision Ordinance, said Development Impact Fees are currently required to be paid by the developers of new residential units at the time of issuance of building permits for construction of such residential units; and Due to recent changes in economic conditions relating to the housing market throughout the nation, including, in the City of Huntington Beach, construction of many residential projects heretofore approved, or in the process of being approved, by the City of Huntington Beach have been deferred by the owners and developers of such projects due to such economic conditions; and The City of Huntington Beach relies on new residential development in the City to stimulate the local economy and provide direct and indirect benefits to the City and its residents and businesses by creating construction jobs, new market-rate and affordable housing units and new tax bases and revenues to the community; and It is therefore in the public interest and to the public benefit for the City Council to stimulate and encourage new residential development in the City of Huntington Beach by the adoption of an ordinance that temporarily defers the payment of certain Development Impact Fees, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DOES HEREBY ORDAIN AS FOLLOWS: Section 1. The City Council does hereby adopt the measures hereinafter set forth in this ordinance which shall be known and referred to as the Development Impact Fee Deferral Program for New Residential Development. Section 2. Notwithstanding any provision of any other ordinance or resolution heretofore adopted to the contrary, the payment of the following specific development impact fees for construction (excluding remodels) of new residential development projects in the City of Huntington Beach shall be deferred until, and collection thereof by the responsible City agency, 1 08-1791.003/45843 Ordinance No. 3879 department, official or employee shall be made prior to final inspection for such residential units by the City of Huntington Beach: 1. Park and recreation fee required pursuant to HBZSO Section 254.08(I). 2. Library Development Fee required pursuant to HBMC Section 17.66.050. 3. Traffic Impact Fee required pursuant to HBMC Section 17.65.070. 4. Sewer Impact Fee required pursuant to HBMC Section 14.36.090. 5. Affordable housing in-lieu fee required pursuant to HBZSO 230.26.C.3. 6. Drainage Fee required pursuant to HBMC Section 14.48.050. 7. Library Enhancement Fee required pursuant to HBMC Chapter 3.40. 8. Park Acquisition and Development Fee required by Ordinance 3596 and Resolution 2002-129. Section 3. Final inspection by the City of Huntington Beach of Qualified Projects shall not occur until payment of such development impact fees are made to the City of Huntington Beach in full. The amount of the development impact fees due and payable shall be based upon the fee schedules and amounts in effect at the time said development impact fees would have been due and payable in the absence of this Ordinance. Section 4. Payment of such development impact fees shall be deemed a debt due and owning to the City of Huntington Beach at such time which debt shall only be deemed satisfied and discharged upon payment in full to the City of Huntington Beach. Section 5. The provisions of this Ordinance for deferral of payment of development impact fees shall expire one year from the date of the adoption of this Ordinance unless the City Council shall have first acted to extend or otherwise alter the provisions of this Ordinance prior to that time. Section 6. Nothing contained in this Ordinance shall be deemed to authorize or permit the deferral of payment of any fee or charge imposed upon residential development within the City of Huntington Beach except for those development impact fees expressly enumerated in Section 2 hereof. Section 7. New residential development projects that have obtained grading permits from the City or received approval of a final tract map from the City, prior to the effective date of this Ordinance shall not be eligible to defer the fees listed herein. Nothing contained in this Ordinance shall be deemed to create any new fee charge, or increase any existing fee or charge, to which the procedures specified in Section 66017 of the Government Code of the State of California would be applicable. Section 8. As a condition of the deferment of time of payment of any development impact fec(s) pursuant to this Ordinance, the City shall require the property owner, or lessee if the lessee's interest appears of record, prior to and as a condition of issuance of the building permit, to execute either a contract secured by a lien, or a letter of agreement secured by an irrevocable letter of credit. In either event, the development impact fee(s) shall be paid prior to final inspection, as set forth below. 2 08-1791.003/45843 Ordinance No. 3879 1. With regard to a contract,the obligation to pay the development impact fee(s) shall inure to the benefit of, and be enforceable by, the City regardless of whether the City is a party to the contract. The contract shall contain a legal description of the property affected, shall be recorded in the office of the county recorder of Orange County and, from the date of recordation, shall constitute a lien for the payment of the development impact fee(s) which shall be enforceable against successors in interest to the property owner or lessee at the time of issuance of the building permit. The contract shall be recorded in the grantor-grantee index in the name of the City of Huntington Beach as grantee and in the name of the property owner or lessee as grantor. The City shall record a release of the obligation,containing a legal description of the property, when the obligation is paid in full. The contract shall require*tIit property owner or lessee to provide appropriate notification of the opening of any escrow for the sale of the property for which the building permit was issued and to provide in the escrow instructions that the fee or charge be paid to the City of Huntington Beach from the sale proceeds in escrow prior to disbursing proceeds to the seller. The executed contract shall be deemed to supersede any conflicting provision contained in any applicable development agreement with regard to the time of payment of any development impact fee(s). 2. As an alternate to recording a contract that constitutes a lien, the property owner or lessee if the lessee's interest appears of record may, prior to and as a condition of issuance of the building permit, execute a letter of agreement and provide an irrevocable letter of credit pursuant to procedures established by the Director of Planning. Section 9. This ordinance shall become effective thirty(30)days after its adoption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 3rd day of May , 2010. Ma or ATTEST: INIT ED AND APPROVED: 004�)_ /541 Ci lerk Director Panning REV&' D APPROVED: APPROVED AS TO FORM: City d i istrator Attorney 411 , ,�o 3 08-1791.003/45843 Ord. No. 3879 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS: CITY OF HUNTINGI'ON BEACH ) I, JOAN L. FLYNN,the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing ordinance was read to said City Council at a regular meeting thereof held on April 19,2010,and was again read to said City Council at a regular meeting thereof held on May 3,2010, and was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council. AYES: Carchio, Coerper, Hardy, Green, Bohr, Dwyer, Hansen NOES: None ABSENT: None ABSTAIN: None I,Joan L.Flynn,CITY CLERK of the City of Huntington Beach and ex-officio Clerk of the City Council,do hereby certify that a synopsis of this ordinance has been published in the Huntington Beach Fountain Valley Independent on May 13,2010. In accordance with the City Charter of said City Joan L. Flynn,Qfty Clerk Clerk and ex-offici Jerk Senior Deputy City Clerk of the City Council of the City of Huntington Beach, California ATTAC H M E N T #2 ORDINANCE NO. 3827 AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH TEMPORARILY SUPERSEDING CERTAIN CITY MUNICIPAL AND ZONING CODE PROVISIONS RELATING TO THE REQUIRED TIME OF PAYMENT OF SPECIFIC DEVELOPMENT IMPACT FEES WHEREAS, the City Council of the City of Huntington Beach has adopted certain fees and charges relating to mitigation of the impact of new residential development upon City infrastructure, such as roadways and parks, and to provide for affordable housing by the adoption of those certain ordinances hereinafter specified and enumerated in Section 2 of this ordinance (hereinafter collectively the"Development Impact Fees"); and Pursuant to the provisions of the Huntington Beach Municipal Code and the Huntington Beach Zoning and Subdivision Ordinance, said Development Impact Fees are currently required to be paid by the developers of new residential units at the time of issuance of building permits for construction of such residential units; and Due to recent changes in economic conditions relating to the housing market throughout the nation, including, in the City of Huntington Beach, construction of many residential projects heretofore approved, or in the process of being approved, by the City of Huntington Beach have been deferred by the owners and developers of such projects due to such economic conditions; and The City of Huntington Beach relies on new residential development in the City to stimulate the local economy and provide direct and indirect benefits to the City and its residents and businesses by creating construction jobs, new market-rate and affordable housing units and new tax bases and revenues to the community; and It is therefore in the public interest and to the public benefit for the City Council to stimulate and encourage new residential development in the City of Huntington Beach by the adoption of an ordinance that temporarily defers the payment of certain Development Impact Fees, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DOES HEREBY ORDAIN AS FOLLOWS: Section 1. The City Council does hereby adopt the measures hereinafter set forth in this ordinance which shall be known and referred to as the Development Impact Fee Deferral Program for New Residential Development. Section 2. Notwithstanding any provision of any other ordinance or resolution heretofore adopted to the contrary, the payment of the following specific development impact fees for construction (excluding remodels) of new residential development projects in the City of Huntington Beach shall be deferred until, and collection thereof by the responsible City agency, department, official or employee shall be made prior to final inspection for such residential units by the City of Huntington Beach: 1. Park and recreation fee required pursuant to HBZSO Section 254.08.(1). 2. Library Development Fee required pursuant to HBMC Section 17.66.050. 08-1791.002/31029 1 vralnance No. JbZ/ 3. Traffic Impact Fee required pursuant to HBMC Section 17.65.070. 4. Sewer Impact Fee required pursuant to HBMC Section 14.36.090. 5. Affordable housing in-lieu fee required pursuant to HBZSO 230.26.C.3. 6. Drainage Fee required pursuant to HBMC Section 14.48.050. 7. Library Enhancement Fee required pursuant to HBMC Chapter 3.40. 8. Park Acquisition and Development Fee required by Ordinance 3596 and Resolution 2002-129. Section 3. Final inspection by the City of Huntington Beach of Qualified Projects shall not occur until payment of such development impact fees are made to the City of Huntington Beach in full. The amount of the development impact fees due and payable shall be based upon the fee schedules and amounts in effect at the time said development impact fees would have been due and payable in the absence of this Ordinance. Section 4. Payment of such development impact fees shall be deemed a debt due and owning to the City of Huntington Beach at such time which debt shall only be deemed satisfied and discharged upon payment in full to the City of Huntington Beach. Section 5. The provisions of this Ordinance for deferral of payment of development impact fees shall expire one year from the date of the adoption of this Ordinance unless the City Council shall have first acted to extend or otherwise alter the provisions of this Ordinance prior to that time. Section 6. Nothing contained in this Ordinance shall be deemed to authorize or permit the deferral of payment of any fee or charge imposed upon residential development within the City of Huntington Beach except for those development impact fees expressly enumerated in Section 2 hereof. Section 7. New residential development projects that have obtained grading permits from the City or received approval of a final tract map from the City, prior to the effective date of this Ordinance shall not be eligible to defer the fees listed herein. Nothing contained in this Ordinance shall be deemed to create any new fee charge, or increase any existing fee or charge, to which the procedures specified in Section 66017 of the Government Code of the State of California would be applicable_ Section 8. As a condition of the deferment of time of payment of any development impact fee(s) pursuant to this Ordinance, the City shall require the property owner, or lessee if the lessee's interest appears of record, prior to and as a condition of issuance of the building permit, to execute either a contract secured by a lien, or a letter of agreement secured by an irrevocable letter of credit. In either event, the development impact fee(s) shall be paid prior to final inspection, as set forth below. 1. With regard to a contract, the obligation to pay the development impact fee(s) shall inure to the benefit of, and be enforceable by, the City regardless of whether the City is a party to the contract. The contract shall contain a legal description of the property affected, shall be recorded in the office of the county recorder of Orange County and, from the date of recordation, shall constitute a lien for the payment of the development impact fee(s) which shall be enforceable against successors in 08-1791 002/31029 2 VI U 11talll.0 1VU- JULI interest to the property owner or lessee at the time of issuance of the building permit. The contract shall be recorded in the grantor-grantee index in the name of the City of Huntington Beach as grantee and in the name of the property owner or lessee as grantor. The City shall record a release of the obligation, containing a legal description of the property, when the obligation is paid in full. The contract shall require the property owner or lessee to provide appropriate notification of the opening of any escrow for the sale of the property for which the building permit was issued and to provide in the escrow instructions that the fee or charge be paid to the City of Huntington Beach from the sale proceeds in escrow prior to disbursing proceeds to the seller. The executed contract shall be deemed to supersede any conflicting provision contained in any applicable development agreement with regard to the time of payment of any development impact fee(s). 2. As an alternate to recording a contract that constitutes a lien, the property owner or lessee if the lessee's interest appears of record may, prior to and as a condition of issuance of the building permit, execute a letter of agreement and provide an irrevocable letter of credit pursuant to procedures established by the Director of Planning. Section 9. This ordinance shall become effective thirty(30) days after its adoption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 16th day of March , 200 9 - ATTEST: MITI D D APPROVED: City erk Direc or of lanning REVIEW D APPROVED: AP VED AS TO FORM: City i strator ty Attorney 08-1791.002131029 3 Ord. No. 3827 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) 1, JOAN L. FLYNN, the duly elected,qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing ordinance was read to said City Council at a regular meeting thereof held on March 2,2009,and was again read to said City Council at a regular meeting thereof held on March 16, 2009, and was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council. AYES: Carchio, Dwyer, Green, Bohr, Coerper, Hardy, Hansen NOES: None ABSENT: None ABSTAIN: None 1,Joan L.Flynn,CITY CLERK of the City of Huntington Beach and ex-officio Clerk of the City Council,do hereby certify that a synopsis of this ordinance has been published in the Huntington Beach Fountain Valley Independent on March 26,2009. In accordance with the City Charter of said City Joan L. Flynn, City Clerk CiU Clerk and ex-officio erk Senior Deputy Citx Clerk of the City Council of the City of Huntington Beach, California