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HomeMy WebLinkAbout2011/01/18 Item 3~\0~ ORDINANCE N0. 2010- ~INANCE OF THE CITY OF CHULA VISTA ~O SUSPENDING THE COLLECTION OF FEES CHARGED ~Q' PURSUANT TO CHAPTERS 3.50 (DEVELOPMENT IMPACT 0\~ FEES TO PAY FOR VARIOUS PUBLIC FACILITIES), 3.55 Q~ (WESTERN TRANSPORTATION DEVELOPMENT IMPACT o~O FEES), AND 17.10 (PARKLAND AND PUBLIC FACILITIES) OF THE CHULA VISTA MUNICIPAL CODE FOR SPECIFIED 0~~ TYPES OF DEVELOPMENT IN THE REDEVELOPMENT PROJECT AREAS, EXCLUDING THE BAYFRONT PROJECT AREA, FOR A PERIOD OF FIVE (5) YEARS WHEREAS, in August 2009, at a Joint Meeting of the Chula Vista Redevelopment Corporation ("CVRC") and the Chula Vista Redevelopment Agency ("Agency"), the CVRC was directed to explore creative options for incentivizing redevelopment; and WHEREAS, in December 2009, the City hired Economic and Planning Systems, Inc. ("EPS") to review the feasibility of infill development in western Chula Vista; and WHEREAS, in March 2010, the Memorandum entitled, "City of Chula Vista Westside Infill Mazket Review and Feasibility Analysis," was completed, describing current market conditions in western Chula Vista, analyzing the feasibility of several common development types, and revealing that none of the development types are feasible under current market and economic conditions; and WHEREAS, in August 2010, EPS presented the results of their report at a CVRC Workshop, noting that Chula Vista's relatively high residential development impact fees could be a deterrent to new development and could delay economic recovery; and WHEREAS, at the August Workshop, the CVRC directed staff to come back with a proposal for addressing certain findings in the Memorandum; and WHEREAS, on October 14, 2010, the Chula Vista Redevelopment Corporation adopted Resolution No. 2010-018 recommending that the City Council of the City of Chula Vista discontinue collecting development impact fees (Western Transportation Impact Fee ("WTDIF"), Public Facilities Financing Development Impact Fee ("PFFDIF"), and Pazk Acquisition and Development Fee ("PAD")) in the redevelopment project areas, excluding the Bayfront Project Area, for a period of five years and use tax increment to finance capital improvement projects identified in the development impact fee program(s); and WHEREAS, the Bayfront Project Area shall be excluded from this proposal due to existing and proposed development plans and agreements, which are structured on and rely upon funding from future development impact fees; and 3-1 Ordinance No. Page 2 WHEREAS, the Redevelopment Agency has entered into an agreement with the City of Chula Vista ("City") committing its revenues to ensure that the development impact fee accounts are made whole by either: 1) designing and constructing those public facilities and purchasing certain property required to support such development in the Redevelopment Areas for which fees are suspended pursuant to this ordinance or 2) paying to the City the dollar amounts of the fees suspend on or before the expiration of this ordinance at the then current rates; and WHEREAS, there will be no negative financial impact to the City of Chula Vista or the development impact funds as a result of suspension of the collection of development impact fees in the Redevelopment Project Areas; and WHEREAS, the Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because it involves administrative activities that will not result in direct or indirect physical changes to the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. NOW THEREFORE, the City of Chula Vista City Council does hereby ordain as follows: I. SUSPENSION OF FEES The collection of fees charged pursuant to Chapters 3.50 (Development Impact Fees to Pay for Various Public Facilities), 3.55 (Western Transportation Development Impact Fees), and 17.10 (Parklands and Public Facilities) of the Chula Vista Municipal Code is suspended for a period of five (5) years for (1) market rate residential development in all Redevelopment Project Areas excluding the Bayfront Project Area; (2) retail, office and industrial development in the Otay Valley Project Area; and (3) industrial development in the Southwest Redevelopment Project Area. II. EFFECTIVE DATE This Ordinance shall take effect and be in full force on the thirtieth day from and after its final adoption. Presented by Approved as to form by Gary Halbert, AICP, PE Assistant City Manager / Director of Development Services C len R. Googins ~~ 1~~ _ rney 3-2