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Page 2 of 4 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org <br />Redwood City previously authorized fee deferrals through uncodified Ordinance No. 2477. However, this <br />ordinance does not provide the level of procedural clarity or statutory alignment now required under SB <br />937. As a result, staff prepared Municipal Code amendments to: <br />(1) Repeal Ordinance No. 2477, <br />(2) Add a new Article XVII (Development Fee Deferrals) to Chapter 18 (Land Development and <br />Planning), and <br />(3) Amend Section 18.258.C (Imposition and Payment of Parks Impact Fee) to ensure consistency <br />across related code sections and align with State law. <br />These updates will ensure that the City’s procedures are consistent with State law and that both staff and <br />applicants have clear guidance regarding the deferral of development impact fees. The proposed <br />amendments are administrative in nature. <br />ANALYSIS <br />The proposed Municipal Code Amendments are intended to bring Redwood City’s local ordinances into <br />alignment with recent changes in state law, specifically Senate Bill 937, which mandates new procedures <br />related to the timing of impact fee payments for qualifying residential development projects. SB 937 seeks <br />to reduce upfront financial barriers to housing development by allowing developers to defer payment of <br />certain fees, thereby facilitating the production of new housing—particularly in high-need areas. <br />The City’s existing framework for fee deferrals is established under uncodified Ordinance No. 2477. While <br />this ordinance authorized the deferral of development-related fees, it does not reflect the new state <br />requirements and lacks codified administrative clarity. In response, staff recommends repealing <br />Ordinance No. 2477 and codifying the deferral process within the Redwood City Municipal Code by adding <br />Chapter 18, Article XVII (Development Fee Deferrals). These additions provide a clear, accessible, and <br />standard procedure for applicants to request and execute fee deferrals in a manner consistent with SB <br />937. Staff also propose City Council adoption of a template fee deferral agreement to streamline <br />administration and ensure legal and procedural consistency. <br />Additionally, to maintain internal consistency within the Municipal Code, staff recommends amending <br />Section 18.258.C (Imposition and Payment of Parks Impact Fee). This amendment ensures that park- <br />related fees are subject to the same deferral provisions and procedural framework as other applicable <br />development fees, eliminating any ambiguity or potential conflict between sections. <br />By codifying a fee deferral process that complies with state law and providing procedural clarity for <br />applicants and staff, these Municipal Code Amendments promote responsible governance, administrative <br />efficiency, and the City’s broader goals of supporting housing development while maintaining fiscal <br />accountability. <br />6.L. - Page 2 of 20 <br />380