HomeMy WebLinkAboutCC RES 08-72RESOLUTION NO. 08-72
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUSTIN CREATING AN ECONOMIC STIMULUS PROGRAM
FOR NEW RESIDENTIAL DEVELOPMENT BY
TEMPORARILY SUPERSEDING THE PROVISIONS OF
VARIOUS ORDINANCES HERETOFORE ADOPTED
RELATING TO THE REQUIRED TIME OF PAYMENT OF
SPECIFIC DEVELOPMENT IMPACT FEES
The City Council does hereby resolve as follows:
The City Council finds and determines as follows:
A. That the City Council of the City of Tustin has adopted certain fees and charges
relating to mitigation of the impact of new residential development upon City
municipal services and infrastructure such as roadways, parks, and other public
facilities (hereinafter collectively the "Development Impact Fees");
B. That pursuant to the provisions of the Tustin Municipal Code 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 or priorto recordation
of final tract map for construction of such residential units;
C. That due to recent changes in economic conditions relating to the housing
market throughout the nation, including in the City of Tustin, construction of
many residential projects heretofore approved, or in the process of being
approved, by the City of Tustin have slowed down due to such economic
conditions;
D. That the City of Tustin 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;
E. That 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
Tustin by the adoption a resolution creating Economic Stimulus Program for
Residential Development.
II. The City Council hereby adopts the measures hereinafter set forth which shall be
known and referred to as the Economic Stimulus Program for New Residential
Development.
III. Notwithstanding any provision of any other ordinance or resolution heretofore
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adopted to the contrary, the payment of the following specific Development Impact
Fees for construction of new residential units in the City of Tustin shall be deferred
until, and collection thereof by the responsible City agency, department, official or
employee shall be made prior to final inspection or issuance of a Certificate of
Occupancy for such residential units by the City of Tustin, whichever occurs earlier,
or such other time as expressly hereinafter provided:
1. New Construction Tax required pursuant to Section 2601 of the Tustin City
Code.
2. Parkland Dedication in lieu Fees required pursuant to Section 9331 d3 of the
Tustin City Code.
3. Sanitation Districts Fees, School Fees, and Transportation System
Improvement Program (TSIP) Fees if authorized by the respective agencies.
III. Final inspection of construction shall not occur, and no certificate of occupancy for
any new residential units shall be issued by the City of Tustin, until payment of such
Development Impact Fees are made to the City of Tustin 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 resolution.
IV. Payment of such Development Impact Fees shall be deemed a debt due and
owning to the City of Tustin at such time which debt shall only be deemed satisfied
and discharged upon payment in full to the City of Tustin.
V. The provisions of this resolution for deferral of payment of Development Impact
Fees shall expire one year from the date of the adoption of this resolution unless
the City Council shall have first acted to extend or otherwise alter the provisions of
this resolution prior to that time.
VI. Nothing contained in this resolution shall be deemed to authorize or permit the
deferral of payment of any fee or charge imposed upon residential development
within the City of Tustin except for those Development Impact Fees expressly
enumerated in Section II hereof.
VII. Nothing contained in this resolution 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.
VIII. As a condition of the deferment of time of payment of any Development Impact
Fee(s) pursuant to this resolution, 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 a irrevocable letter of credit and/or bond. In either
event, the Development Impact Fee(s) shall be paid prior to final inspection or
issuance of a Certificate of Occupancy, whichever occurs earlier, asset forth below.
(a) With regard to a contract, the obligation to pay the Development Impact
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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 Tustin 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 Tustin 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).
(b) 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 letterof credit and/or bond pursuant
to procedures established by the Director of Community Development.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Tustin, held on the 7~' day of October, 2008.
PAMELA STOKER,
City Clerk
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF TUSTIN )
I, Pamela Stoker, City Clerk and ex-officio Clerk of the City Council of the City of Tustin,
California, do hereby certify that the whole number of the members of the City Council of
the City of Tustin is five; that the above and foregoing Resolution No. 08-72 was duly
passed and adopted at a regular meeting of the Tustin City Council, held on the 7~' day of
October, 2008, by the following vote:
COUNCILMEMBER AYES: Amante, Davert, Bone, Kawashima, Palmer (5)
COUNCILMEMBER NOES: None (0)
COUNCILMEMBER ABSTAINED: None (0)
COUNCILMEMBER ABSENT: None (0)
PAMELA STOKER
City Clerk
Resolution No. 08-72
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