Development Staff Report
To: Mayor and City Council
Through City Manager, Manuel Esquibel
Prepared By: Marv Falconburg, Assistant City Manager for Development
Date Prepared: December 1, 2014
Requested Action: Approve a Resolution extending a deferment program for certain development impact fees associated with the issuance of new residential building permits.
PURPOSE:
Request to consider extension of the temporary deferrals for an additional one year time frame.
SUMMARY:
Due to economic conditions, City Council approved certain temporary reductions and deferrals to encourage new residential building permits effective December 1, 2009. This time frame was extended for three additional years and has come to an end at year end 2014. This year so far, we have issued 172 new residential building permits and approximately 23% have utilized the fee deferral program. We have noticed that the program is being used consistently by the smaller local builders. Prospective developers of new multi-family projects have indicated that the fee deferral will be a major factor in their decision to move forward with their projects. Based on amendments made last year the action includes only the fee deferral and excludes any fee waivers or reductions.
The following fee estimates are for new residential construction with a $250,000 valuation:
Fee Description |
Amount |
Reduction |
Deferred |
Due at Permit Issuance |
Total Due prior to CO |
|
|
|
|
|
|
Permit Fee |
$1,743 |
0% |
|
$1,743 |
|
Plan Review |
$1,133 |
0% |
|
$1,133 |
|
Use Tax |
$4,688 |
0% |
|
$4,688 |
|
RDS Processing Fee |
$50 |
0% |
|
$50 |
|
|
|
|
|
|
|
Development Impact Fees |
|
|
|
|
|
|
|
|
|
|
|
Drainage Impact |
$3,685 |
0% |
$3,685 |
|
$3,685 |
Water Plant Investment |
$8,900 |
0% |
$8,900 |
|
$8,900 |
Water Resource |
$7,600 |
0% |
$7,600 |
|
$7,600 |
Sewer Plant Investment |
$5,070 |
0% |
$5,070 |
|
$5,070 |
Traffic Impact |
$1,700 |
0% |
$1,700 |
|
$1,700 |
Community Park Impact |
$720 |
0% |
$720 |
|
$720 |
Neighborhood Park Impact |
$1,700 |
0% |
$1,700 |
|
$1,700 |
Crossing (Bridge Impact) |
$700 |
0% |
$700 |
|
$700 |
|
|
|
|
|
|
Totals |
$37,689 |
|
|
$7,614 |
$30,075 |
The builder will experience savings from the benefit of not having the initial out-of-pocket expense for the payment of development impact fees; rather, these fees will be collected when the new residential real property sale is closed and the Certificate of Occupancy is issued, and the development fees are collected from the builder at that time.
Under this program we can defer all applicable development impact fees (with the exception of Metro and Lochbuie pass through wastewater fees) to the end of the construction process, being due prior to the issuance of a Certificate of Occupancy (CO) for all new residential construction permits.