HomeMy WebLinkAboutStaff Report 4.D 04/18/2011�ALU
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DATE:: April 18,1011
REVISED
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: ' Scott Duiven, Senior Planner
Bonne Gaebler,. Housing Administrator �p�1
SUBJECT: Introduction (FirstlReading) of an Ordinance Amending Chapter 17.35, Sections
17.35:030 and 17 of the City of Petaluma,Municipal Code Regarding the
a Commercial Linkage Fee for Nonresidential Development.
RECOMMENDATION
It is recommended that the City Council introduce the attached Ordinance Amending Chapter
17.3 5, Sections 17.3 5.03 and 173'5:040 of the City of Petaluma Municipal Code Regarding the
Commercial Linkage Fee for Nonresidential Development.
BACKGROUND
In December 2003 the City Council adopted the Commercial Linkage Fee to increase funding for
workforce housing through a fee'linked to the creation of jobs. The.fee is the nonresidential
equivalent of the iri -lieu fee assessed on market -rate residential projects and is' geared toward
workforce housing. In addition to City Council support; the Commercial Linkage Fee was
supported by a wide range .ofinterests including the - .Chamber of Commerce, labor groups, and
nonprofits. Since the fee became;, effective in January 2004 it. has generated approximately
$680 0 in revenues for workforce housing which have been used to support Petaluma's first -
time homebuyer program.
DISCJSSION
Since adoption of .the Commercial Linkage Fee, challenges have `been encountered in ;its
implementation, particularly with.respect to existing .nonresidential buildings seeking new
tenants or performing tenant; 'improvements. The fee language' currently states "The fee
q pp develop
,pent, involving the construction of
re uirement shall be a lied to nonresidential develo
a new building, construction of additional gross square footage to existing nonresidential
buildings, interior renigdels of existing nonresidential or a change in nonresidential
use or a change froin'residential to nonresidential use in an existing building that increases the
number of em610yees" Because there no quantitative thresholds for new employees before
p . is
the fee is `Itriggered, interior iin rovements to an existing- building which result ,in one or more
new employees requires payment, of the Commercial Linkage ° Fee based on the gross square
footage of the 'improu
Agenda Review:
City Attorney Finance Director City Manager
i,
The current office, industrial, and retail vacancy rates are 40 %, 19 %, and 13 %, respectively.
Staff has been advised that the Commercial Linkage Fee is a disincentive to filling existing
vacant office, industrial and retail space. Currently, staff is informed that. a large and growing
employer in Petaluma is considering relocation to a site in another Sonoma County city, which
recently;repealed its Commercial Linkage Fee. This employer is also considering moving to an
existing vacant Petaluma office building. Based on the existing fee ordinance, this employer
would be required to pay the fee because it would be constructing interior tenant improvements.
In contrast, another growing local employer moved to an existing space and was determined to
be exempt from the fee because it had fewer employees than the prior use even though it
required tenant improvements.
The City's recently adopted Economic Development Strategy highlights the need to address the
existing office, commercial and industrial vacancies as one of its highest priorities. The 2010-
2011 City of Petaluma: -Local Economic Report prepared by the Sonoma County Economic
Development Board in September 2010 ( "Report") describes total employment in Petaluma as of
March, 2010, as the lowest level in ten years, 28,200 jobs, down 9.74% from its peak in October,
2007. At the same time, the Report states that the median home price in Petaluma as of 2009 had
declined by 26% since 2005, to $397,000 and average „rental rates have remained stable (City
survey October 2010).
Because economic conditions have affected City priorities for economic development, Staff
recommends a change in the Commercial Linkage Fee language that would limit application of
the fee to new nonresidential construction only. This would help incentivize re- tenanting of
existing buildings while continuing to provide a moderate amount of revenue for workforce
housing., Petaluma's housing success has been a result of mixing and matching those sources and
leveraging our local dollars with outside revenues. Our current stock includes 1,924 units of
which 614 are designed workforce housing. Although most of the usual potential revenue
source§lor affordable housing have been eliminated, decreased, or put on hold, the City has been
able to be creative in financing the following projects which address the City's two fastest
growing, demographics: seniors and the community's workforce:
Vintage Chateau II Senior Housing Construction Anticipated for Summer 2011
Logan Place Workforce Housing Construction Anticipated for Fall 2011
Ke.l_lgren Apartments Senior Housing Construction Anticipated in 2013
The ordinance change would,also clarify implementation by limiting its applicability to new
square footage; as the sole basis for the fee calculation. The ordinance would also remove the set
amount'of the fee previously adopted and provide that the fee will be set from time to time by
resolution of the City Council, so that future changes will not require amendment to the
Municipal Code by ordinance. A provision has been added providing for automatic annual
adjustment based on increases or decreases in the Engineering News Record Construction Cost
Index.A resolution setting the fee at its existing level will be separately presented as an action
item at the subsequent Council meeting for ordinance adoption, if the amendments are approved
by the Council.
Staff, as well as some members of the council, have discussed the Commercial Linkage Fee with
a local nonresidential property owner who expressed concerns that the fee may impact the
2
expansion plans of a growing local employer. An alternative to the staff recommendation,
proposed by `a councilmember, would provide relief to both new construction and previously
built space and includes: reducing or eliminating the fee altogether, modifying the payment
schedule for the fee so that it could be paid over a period of up to five years, providing relief
based on a showing that the actual wages paid by the proposed use are higher than assumed in
the original Sonoma County Workforce Housing Linkage Fee Study, or some combination
thereof.", above approaches proaches are more complicated than the approach recommended by staff,
primarily because providing relief based on wages is difficult to monitor and enforce as changes
in the number of employees and wages can move in either direction at' any time. As well, staff
has focused its approach in away that supports the need identified in the Economic Development
Strategy to address existing high vacancies in nonresidential uses. That approach provides an
incentive to re- occupying existing space, and continues to collect fees from new construction to
ensure , a moderate level. of revenue to meet the City's goals for workforce housing associated
with future employment growth. `The councilmember's alternative is provided for the council's
consideration as an alternative to the recommended action.
Staff further recommends that the City, should continue; to evaluate, economic conditions; the
recovery since 2007 in jobs; household income and housing prices; the City's workforce housing
stock; existing commercial vacancies; collection of fees pursuant to the ordinance; and any
further modifications needed for administration of the commercial linkage fee and the City's
provision of affordable housing and recommend desirable changesto Chapter 17.35 based on its
findings.
FINANCIAL. IMPACTS
The original staff report for the ,Commercial Linkage Fee, anticipated that the linkage fee could
generate - approximately $10,920,000 over a 10 -year period. The proposed text changes to the
Commercial Linkage Fee may result'in a reduction in fees collected for workforce housing from
existingAnonresidential buildings depending on the nature of future - development. However,
over the term, based on future nonresidential development potential in the General Plan
2025, the Commercial Linkage Fee could generate close to $18,000,000.
The Housing Division historically leverages City housing funds at.a ratio of $10 -12 outside
dollars for every local dollar. , Currently entitled but not yet constructed nonresidential projects
and future nonresidential projects which add square footage in new or remodeled structures
" would still be required to pay the Commercial Linkage Fee.
The City's General Plan 2009 "201`4 Housing Element was updated in 2009 and identifies
adequate land within the City "for affordable housing development and programs and policies
designed to encourage affordable housing. Based on these factors, and the economic information
on jobs and current ;property vacancies in the City contained in the Report, staff believes that the
proposed amendment, does'not impair the City's affordable housing efforts. The current balance
in the Commercial Linkage Fee account is approximately $334,000.
ATTACHMENTS
1. Draft Ordinance Amending the Text of Chapter 17.35, Sections 17.35.030 and 17.35.040
2. ''Ordinance No. 2171 N.C.S.
3
ATTACHMENT 1
Ordinance No. N.C.S.
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETALUMA
AMENDING CHAPTER 17.35, SECTIONS 17.35.030 AND 17.35.040 OF
` THE CITY OF.PETALUMA MUNICIPAL CODE REGARDING THE
COMMERCIAL. ,LINKAGE FEE FOR NONRESIDENTIAL
DEVELOPMENT
WHEREAS, on December 15, 2003, -the City Council adopted Ordinance No. 2171 N.C.S.
Implementing a Commercial Linkage Fee for Nonresidential. Development in the City of
Petaluma; and
WHEREAS, in. September, 2010, the Sonoma County Economic Development Board published
a report„entitled "2010 -11 City of Petaluma; Local Economic Report" ( "Report)" and;
WHEREAS', the Report identifies total employment in Petaluma at 28,200 jobs as of March,
2010, the lowest level in ten years and down 9.74% o from its peak in October, 2007; and
WHEREAS, the Report finds that in the past decade, the percentage of households making less
than $50,000 in Petaluma wasi reduced from 38 %o to '25 %0 of'local earners; and
WHEREAS, the Report. concludes that the percentage of expected household income in all
categories lower than $75,000 per year will remain lower than 2000 levels through 2014; and
WHEREAS, according to the Report, the median home price in Petaluma as of 2009 had
declined'by 26% since 2005; and
WHEREAS, the current HUD income guidelines for Petaluma: for the categories defined as low
and moderate income in the 'fee ordinance range from $45,00 - $56,300 for a, single person
household to $74,600- $83,970 for a:family of six; and
WHEREAS,,, the Report determined' that office, industrial, and commercial vacancies in the City
of Petaluma as of the first quarter of 2010 were 39.6% o, 18.7% and 12.8 %, respectively; and
WHEREAS, based on future nonresidential development provided,forin the General Plan 2025,
the Commercial Linkage Fee could generate close to $48,000,00:0 over the buildout horizon of
the General Plan, more than the $10,920,000 envisioned at the time of adoption of the
Commercial Linkage Fee in 2003; and
M
WHEREAS; the City's current affordable housing stock includes 1,924 units of which 614 are
designed as workforce housing; and
WHEREAS, the City of Petaluma Housing Division histori "cally leverages housing funds at a
ratio of $10-12 outside dollars for every local dollar and' has a record of successful leveraged
projects; and
WHEREAS, affordable projects currently approved or in the pipeline include Logan Place, 66
units of workforce housing, construction anticipated Fal1 1 . 11 Vintage Chateau II, 67 senior
apartments, construction anticipated Summer 2011'; and Ke
1'lgren Apartments, senior housing,
construction anticipated in. 2013.; and
WHEREAS, the City's 2009 -20 Housing Element was updated in 2009 and continues to
identify ,adequate land within the City for affordable housing development and programs and
policies'.designed to encourage affordable housing; and
WHEREAS, on November 15, 2010, the .City Council accepted the Petaluma Economic
Development Strategy; and
WHEREAS, the; Economic Development Strategy calls for filling existing nonresidential
vacancies as one of its highest priorities; and
WHEREAS, the current Commercial .Linkage Fee may serve as a disincentive to filling certain
existing°nonresidential vacancies; and
WHEREAS, the Commercial Linkage Fee program as herein amended will continue to make an
adequate financial contribution from nonresidential development and expanded nonresidential
development to the City's affordable housing programs; and
WHERJ�AS, the City Council considered the modification limiting the types of nonresidential
development projects subject to the Commercial Linkage Fee adopted hereby at a noticed public
meeting on April '18, 2011.
NOW, THEREFORE,.BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
PETALQ MA AS FOLLOWS:
Sectioni' L The City Council adopts the above recitals as true and .correct and further finds
that thisFordinance'is consistent with the, City of Petaluma General Plan 2025 and that the City
has duly `considered the effects of this ordinance with respect , to the housing needs of the city and
the region in which the city is situated.
Section92. Chapter 17.35, Section 17.35.030 of the Petaluma Municipal Code entitled
"Definitions" is hereby amended to read in full as follows:
E
17.35.030 DEFINITIONS.
As used in this Chapter:
A. Addition :shall mean adding gross square feet to an existing development project or
building subject to this ordinance.
B. , Affordable housing shall' mean the total cost of monthly housing payments does not
exceed thirty (3 0) percent of gross household income.
C. City Manager shall mean the City Manager of the City of Petaluma or his /her designee.
D. Director of Community Development shall mean the Director of Community
Development for the City of Petaluma, his or her designee, or such person as the City
,Manager may designate.
E. ,Expanded Nonresidential Development or Expanded Nonresidential Development Project
shall mean construction that results in a net increase in the gross square footage of an
existing nonresidential space or any conversion of residential space to nonresidential
space.
F. Gross square feet or gross square 'footage shall mean the area included within the
surrounding walls of a nonresidential development., This area does not include enclosed
parking for vehicles.
Q. :Low and moderate - income shall mean a household with total, annual income between 80
percent and 100 percent of the area median . income,, adjusted for family size, and in
,accordance with the Area Median Income Schedule .as published annually by the U.S.
Department of Housing and Urban Development for `the Santa Rosa MSA.
H. Nexus Study shall `mean the Sonoma County Workforce Housing Linkage .Fee Study
mi
published b y Econo i ; s and Planning Systems, ..Inc:. 'in December 2001, as may .be
. amended from time to time.
I Nonresidenti ,
' al Development or development project for purposes of this Chapter shall
mean any project resulting in new or expanded-nonresidential gross square footage.
Section.3. Chapter .17.35, Section 17.35.040 of the Petaluma Municipal Code entitled
"Application of Fee" is hereby amended to read in' full as follows:
17.35.040 APPLICATION AND CALCULATION OYFEE.
2
A. Payment y of Fees Required... Every person constructing or causing; to be,,. constructed within
the city nonresidential development projects and /or expanded nonresidential development
,projects as defined in this Chapter shall pay to the city a..fee computed as set out in this
chapter.
B. Determination of LandH Uses. For the purposes of this chapter, nonresidential land uses
D, be divided into three (3) classifications: commercial,, retail., and industrial. When
;necessary, the Director of Community Development or 'such other person as may be
designated by the City 'Manager shall determine the 'land use classification that most
accurately describes the, nonresidential development, or in the case. of Mixed Use
- developments, the portion thereof, forthe purposes of determining the fee to be imposed.
C. Computation of Fees. The fee charged for residential and nonresidential development
Shall be established` -from :time to time by resolution of the city council and adjusted
consistent with the provisions ,of such resolution and this chapter.
D. !Adjustment of Fee. The fees specified.heren shall increase or decrease annually by the
!same percentage. as" the latest "Engineering Newsy Record Construction Cost Index — 20
:City Average" ("Index") annually increases or decreases. The adjustment shall be based
'on a comparison of the most recent Index to'the Index in the month of the adoption of the
fee, or the Index used for the prior adjustment of the fee., The Finance Director shall
compute the increase or decrease in,'such'. fee. The' first adjustment shall take place on
July 1, .2012 and each following July Ist.
E 'Time of Collection. Such fees shall be due and payable prior to issuance of a building
permits or if no permit is to 'be issued by the city, at-'the time a new business license is
issued.
r .
F. Application of Fee in Redevelopment. Project Areas. Any nonresidential development or
expanded nonresidential' development located within 'the adopted boundaries of a 'City of
Petaluma Community Development. Commission redevelopment project area shall pay a
fee equal to one -half the amount established pursuant to Section 17:35.040.C.
S'ec'tion! 4 Except as amended pursuant to this ordinance, Chapter- 17.35 of the Petaluma
Municipal Code remains unchanged and in full force and effect.
Section �5 . If any section, subsection, sentence, clause or phrase or word of this ordinance is
for any reason held to be unconstitutional, unlawful or otherwise 'invalid by a court of competent
jurisdiction 'such decision not affect,the validity of the remaining portions of this
ordinance. The City Council of the City of Petaluma hereby declares that it would have passed
and adopted this ordinance and each and every provision thereof regardless of the 'fact that any
one or more of provisio
said ns be declared unconstitutional, :unlawful . or otherwise invalid..
7
Section 6. The City Council finds that this ordinance is not subject to the California
Environmental Quality Act ( "CEQA ") pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment) and
15060(c)(3) (the activity is not a project as defined in Section 1.5.378) of the CEQA Guidelines
because it has no potential for resulting in physical change to the environment, directly or
indirectly.
Section 7. The City Clerk is hereby directed to post and /or publish this ordinance or a
synopsis of this ordinance for the period and in the manner required by the City Charter.
8
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ORDINANCE NO. 2171 N.C.S..
Introduced 'by
Seconded by
ATTACHMENT-2
Council Member Canevaro, council Member Torliatt
I
IMPLEMENTING A COMMERC LI NXAGE: FEE
FOR NO . RESIDENTIAL DEVELOPMENT IN THE CITY OF PETALUMA
WHEREAS, the City of Pelalomc along with all other cities in Sonoma County and
the C" unty of i . Sonoma p6 rtido a in the Qr6
p a ,(?tibn • of - a, study to establish a link
between the continued gr6w1h, of employment and the, need' for affordable housing;
and,
� I I considered the findings and
'WHEREAS, the City Co6ncil, has r eviewed and �co
conc . lu
sions of the Sonoma County Workforce Housing Linkage Fee Study on which this
ordinance is based; and,
IWOERW, the City Council held„a duly; noticed public' hearing on said fee on
0- 27, 2003 and Dec'e ml'berl,, 2003.
NOW, THEREFORE, BE]T ORDAINED BYTHE�COUNCII OF THE CITY OF PETALUMA AS
FOLLOWS:
,Section 1. The I Petaluma !Municipal Code is; hereby amended to add Chapter
1 1 7 " Commercial Linkage Fee" to read as'follows'.
Chdpter 17.35 * . .
CommerciaLLInkage Fee
17;35 010 PURPOSE.,
Mitigation of Affordable Housing _1Mpqcts Linked to Nonresidential
pur pose f ""is (f'k
evel6prrjenf. h chap is f 1 ,
, Q im. plemeht the ;goals 'and objectives
of the" G eHerdl , Plan H'ousing Element of the City, of Petaluma; (2): mitigate the housing
impd4s caused by new, changed andl expanded nonresidential sidential development in the
'City of, Petaluma;, (3) provide housing affordableto persons who earn, bet. w,6en 80-100%
of , the median .income. The City ;Cbundl- has determined that affordable housing
require ar,e..needed, has following requirements to be corisist t with ifs
Genera Plan and, pursuant to. Governrnent Code S 65913.2, has considered the
effects of the fee with respect to the City's housing needs as established in the City's
Housin Ele.rnent, as amended from time to time pursuant to state law.
Qriginal Store.0 at Th&CIty 61 Peta(uma
6`rAhap N0.101'N.C.S. Page
1 17.35020 FINDINGS.
2
3 a. Need for Affordable Housing. The City Council has found that persons of low -
4 and moderate- income are experiencing increasing difficulty in locating and
5 maintaining adequate, safe and sanitary affordable housing.
6
7 b. Housing Needs and Impacts Created by Nonresidential Development.
s Pursuant to the Sonoma County Workforce Housing Linkage Fee Study published by
9 Economic and Planning Systems Inc. in December 2001, the City Council finds that the
10 construction or expansion of nonresidential development is a major factor in attracting
11 new employees to the City of Petaluma and the County of Sonoma. A substantial
12 number of these new employees and their families seek residence in the City and
13 County and place a greater strain on an already 'impac'ted housing stock. Current and
14 new employees who are unable to find affordable housing in the jurisdictions in which
15 they work are forced to commute long distances. This situation adversely affects their
16 quality of life, consumes limited energy resources, `increases traffic congestion and has
17 a negative impact on air quality. Employers have or will have problems attracting a
Is labor force because of the shortage of housing affordable to many workers.
19
20 c. Means of Meeting Affordable Housing Demand. Increasing the production
21 and availability of affordable housing is problematic. "Prices and rents for affordable
22 housing remain below the Level needed to attract new construction. At the same time,
23 escalating land costs and rapidly diminishing amounts of land available for
24 development hinder the provision of affordable housing units solely through private
25 action: Federal and State housing finances and subsidy programs are not sufficient by
26 themselves to satisfy the affordable housing needs associated with employment
27 resulting from nonresidential development. Programs and activities to expand
28 affordable housing opportunities can be accomplished through public /private
29 partnership action. It is the purpose of this chapter, to establish a feasible means by
30 which developers of nonresidential. development projects assist in (1) increasing the
31 supply of low- and moderate - income housing and (2) increasing the supply of housing
32 in proximity to employment centers.
33
34 d. Imposing Housing Requirement on Developers Whose Projects Create the
35 Need. It is appropriate to impose some of the cost of the increased burden of providing
36 housing for low- and moderate income people necessitated by such development
37 directly upon the sponsors of a development, and indirectly upon the occupiers. The
38 imposition of a commercial linkage fee requirement is, appropriate means to
39 accomplish the: purpose of this chapter. In calculating the commercial linkage fee
4o requirement, the City Council has taken into account other factors in addition to the
41 simple calcul'ati'on of contribution. These include impact on construction costs, special
42 factors. and hardships associated with certain types of development, and. legal issues.
43
44 e. Rational Relationship Between Affordable Housing Need Created and Fee
45 Requirement. The unit requirements and housing fees .contained in this chapter are
46 designed to create a rational relationship between the amount of housing need
47 created by the land use and the size of the fee, taking into account the effect of such
48 fee requirement on providing affordable housing opportunities and the economic
COPY - Original Stared at The City of Petaluma
:Ordinance No. 2171 N.C.S. Page Vo
1 feasibility of imposing such requirements.
2
3 17.35.030 DEFINITIONS.
4
5 As used in this section:
6
7 Addition shall mean adding gross square feet to an existing development project or
8 building subject to this ordinance.
9
10 Affordable housing ,shall mean the total cost of monthly housing payments does not
11 exceed thirty (30) percent of gross household income.
12
13 Changed Nonresidential Development shall mean the transition of existing
14 nonresidential space from one type of nonresidential use to another or a change from
15 residential to nonresidential.
16 I
17 City Manager shall mean the City Manager of the City of Petaluma or his /her
18 designee.
19
20 Development or development project for purposes of this Chapter shall mean any
21 projeot resulting in new, expanded, remodeled, or changed nonresidential
22 development.
23
24 Director of Community. Development shall mean the Director of Community
25 Development for the City of Petaluma or his /her designee.
26
27 Expanded Nonresidential Development shall mean construction that results in a net
28 increase in the gross..square footage of an existing nonresidential space.
29
30 Gross square feet or gross square footage shall mean the area included within the
31 surrounding walls of a nonresidential development. This area does not include enclosed
32 parking for vehicles.
33
34 Low- and moderate - income shall mean a household with total annual income
35 between 80 - 100 percent of the area median income, adjusted for family size:, and in
36 accordance' with the Area Median Income Schedule as published annually by the U.S.
37 Department of Housing and Urban Development for the Santa Rosa MSA.
M
39 Nexus Study shall mean the Sonoma County Workforce Housing Linkage Fee Study
49 published by Economic and Planning Systems, Inc. in December 2001 as may be
41 amended from time to time.
42
43 Remodeled Nonresidential Development shall mean all interior tenant or owner
44 improvements to existing nonresidential space.
45
46 17.35.040 APPLICATION OF FEE.
47
48 a. Determination of Development Projects. The fee requirement shall be applied to
COPY - Origin,11 Stored at The City of P'etallurna
Ordinance No. 2171 N.C.S. Page ��
I nonresidential development projects involving the construction of a new building,
2 construction of additional gross square footage to existing nonresidential buildings,
3 interior remodels of existing nonresidential buildings, or a change in nonresidential use
4 or a change from residential to nonresidential use in an existing building that increases
5 the number of employees.
6
7 b. ;Determination of Land Uses. For the purposes of, this ordinance, nonresidential
8 Land uses shall be divided into three (3) classifications: commercial, retail, and industrial.
9 Wher'e' necessary, the Director of Community Development shall determine the land
10 use classification that best describes the nonresidential development, or portion thereof
11 in the;case of "Mixed Use" developments, for the purposes of assigning the fee to be
12 chargied.
13 j
14 c.'Application of Fee. The fee shall be applied as provided in Sections 17.35.040 (a)
15 and (b) commencing on January 1, 2005 and shall automatically increase on January
16 1, 2006 and on January 1 ', 2007, as follows:
17
Effective Date
Commercial Fee
Retail Fee
Industrial Fee
January 1, 2005
$0.69 /square foot
$1.19 /square: foot
$0.71 /square foot
January l; 2006
$1.38 /square foot
$2.38 /square foot
$1 .42 /square foot'
January 1, 2007
$2.08 /square foot
$3.59 /square foot
$2.15 /square foot
18
19 The fee shall be applied to all building or other applicable permits issued on or after the
20 applicable effective date. For any "changed nonresidential use" that does not require
21 a building or other applicable permit, the fee shall be applied at the time a new
22 business license is issued.
23
24 d. Application of Fee in Redevelopment Project Areas. Any nonresidential
25 development as provided in Sections 17.35.040 (a) and (b) located within the adopted
26 boundaries of a City of Petaluma Community Development Commission
27 redevelopment project area shall pay a fee equal to one -.half the amount established
28 by the table in Section 17.35.040 (c) or, after January 1, 2007, as may be adjusted from
29 time I to time.
30
31 17.35.050 FEE CREDITOR REFUND.
32
33 a; Fee Credit` A "develope,r of any project subject to the fee requirement may apply
34 to receive a credit against the total amount of fees due, or a portion thereof, if said
35 developer provides affordable housing through some other means agreeable to the
36 City of Petaluma.
37
38 b. Refund of Fee. If the affordable housing fee is paid and the building permit is later
39 canceled or voided, or the permit which triggers the application of the fee. fails to vest
40 within the terms of said permit, the Director of Community Development may, upon
41 written request of the developer, order return of the fee if (l)' the fees paid have not
42 been committed, and (2) work on the private development project has not progressed
43 to a point that would permit commencement of a new, changed, or expanded use for
COPY - Original Stored at The City of Petaluma
Ordinance No. 2171 N.C.S. Page
I which a fee would be payable.
3 17.35.060 USE OF FEES.
4
5 a. Use and Disbursement of Monies in the Fund: Monies collected pursuant to this
6 Chapter shall be used in accordance with and in support of activities to implement the
7 City's, 'adopted Housing Element, Consolidated Plan, and Implementation Plan.
8 Activities shall be limited to direct expenditure for the development of affordable
9 housing as defined herein or incidental non - capital expenditures related to such
io projects, including but not limited to land acquisition, applicable pre - development
11 costs,, construction, rehabilitation, subsidization, counseling or assistance to other
12 governmental entities, private organizations or individuals to expand affordable housing
13 opportunities to low- and moderate - income households: Monies in the. fund may be
14 disbursed,' hypothecated, collateralized, or otherwise employed for these purposes
15 from time to time as the City Council so determines is appropriate to acc'omplish''. the
16 purposes of the affordable housing fund. These uses include, but are not limited to,
17 assistance to housing development corporations, equity participation loans, grants,
1'8 predevelopment loan funds, participation leases, loans to .develop affordable housing
19 or other public /private partnership arrangements. The affordable housing funds may be
20 expended for the benefit of both rental and owner - occupied housing..
21
22 b. Accounting of Fees. All fees shall be deposited into a segregated account and all
23 expenditures of funds from the same shall be documented and available for public
24 inspection during regular business hours.
25
26 17.35.070 EXEMPTIONS.
27
28 a. 'Public facilities, public and private schools; and churches are exempt from the
29 provisions of this section.
30
34 17.35.0$0 FEE ESCALATORS.
32
33 a. . After January 1, 2007, this fee shall be annually increased to reflect the
34; percentage increase in the cost of construction or public improvements as reported in.
35 the Engineering News Record- Construction Price Index for the San Francisco Bay Area.
36
37 b. This fee, may be adjusted from time to time, based upon amendments or updates
38 to the Nexus Study, or based on any other data and analysis which the 'City Council
39 determines to be applicable to the continued establishment of this fee.
40
41 i Section 2 . All code provisions, ordinances, and parts of ordinances in conflict
42 with the provisions of this ordinance are repealed. The provisions of this ordinance,
43 insofar !as they are substantially the same as existing code provisions relating to the
44 same subject matter shall be construed as restatements and continuations thereof and
45 not as new enactments. With respect, however, to violations, rights accrued, liabilities
46 accrued, or appeals taken, prior to the effective date of this ordinance, under any
47 chapter, ordinance, or part of an ordinance shall be deemed to remain in full force for
48 the purpose of sustaining any proper suit, action, or other proceedings, with respect to
COPY m Original Stared at The Cite of Petaluma
Ordinance No. 2171 N.C.S. Page i
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any such violation, right, liability or appeal.
Section 3 . The City Clerk is hereby directed to post /publish this ordinance for the
period and in the manner required by the City Charter.
i Section 4 . This ordinance shall take effect thirty (30) days after its passage.
INTRODUCED and ordered posted /published this 1 It day of December 2003.
ADOPTED this 15!h day of December 2003 by the following vote;
AYES: ` Canevaro, Mayor Glass, Harris, Healy, Vice Mayor O'Brien, Torliatt
NOESt Moynihan
ABSEN None
avid Glass, M or
ATTEST'.
&4,, G
�.
G yle Pet rsen, City Clerk
APPROVED AS TO FORM:
Ric d R. Rudna sky, City Attorney
COPY a Original Stored at The City of Petaluma
Ordinance No. 2171 N.C.S. Page