AgdaPkt 2006-01-09 - Laserfiche WebLink

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~.,6 development in the Downtown an additional 18 months. Staff feels that this is a critical period of time during which Downtown needs to attract the first difficult wave of private sector development. This initial investment will result in subsequent waves of development not likely to need incentives as the economic viability of Downtown will be established. Under the original exemption, any loss of Transportation Impact Fees was offset by Redevelopment Agency funding of the pedestrian and traffic improvements currently under construction in the Downtown area. Under the proposed extension of the exemption, losses in revenue to the TIMF program will either be directly replaced from another source, or will be offset by Redevelopment Agency funding of TIMF projects listed in the original study. Staff estimates that a TIMF program revenue shortfall created by this extended exemption, if any, should not exceed $200,000. The reason that revenue shortfalls for the program will be minimal is due to the "credits" granted by the ordinance which created the fee. Not all new businesses and buildings pay the full fee, and some pay no fee. Only new buildings or businesses which are projected to generate more vehicle trips than the prior building/business on the same site must pay the fee, and in these instances they only pay for the additional trips, not all trips. The proposed Ordinance amendment would require approval of the land use by December 31,2006, and substantial construction must be undertaken by December 31, 2007, to secure the exemption. The previous exemption expired on July 1, 2005 so this amendment to extend the exemption would be made retroactive to July 1, 2005. The proposed amendment reads as follows: Section 18.253 Exemptions and Credits 18.253 A. 8. (a) Any use commenced on or after July 1, 2005, except professional, medical, business, and administrative office use, as said terms are defined below in subsection (b), within the Exempt Downtown Area (bound by Veterans Boulevard, Maple Street, EI Camino Real, and Brewster Avenue) shall not be required to pay the Impact Fee if (1) a Notice of Official Action giving approval of the use is issued by the Zoning Administrator by December 31, 2006, and (2) substantial construction pursuant to an approved building permit has been undertaken by December 31,2007. Portions of buildings or structures that do not qualify for an exemption shall be required to pay the Impact Fee in accordance with the Impact Fee Schedule. It should also be noted that revisions to the project list and the fee structure of the TIMF program are currently being developed. The new fee structure will be completed in 2006. REDEVSHARED_2006 REPORTS_O1-2006_Trans Impact Fee Extension 2