Cudahy Municipal Code Ch. 15.40 Development Impact Fees

The city council of the city finds that new development of land within the city imposes increased demands on the city’s capital improvements and operational service requirements. This chapter establishes the urban structure program for the adoption and administration of development impact fees by the city for the benefit of the citizens whereby as a condition to the issuance of a building permit by the city the property owner or land developer will be required to pay development impact fees or provide other consideration to the city for the purpose of defraying the costs of public expenditures for capital improvements and operational services which will benefit such new development. The development impact fees established herein shall be imposed in an amount based upon a unit of measurement, including, but not limited to, the gross square footage, number of acres, number of lane miles, number of residential dwelling units, or some similarly fair and reasonable basis, in order to finance such capital improvement and operational services, the demand for which is generated by new development in the city. New development impact fees shall not exceed the cost of providing capital improvements and operational services for which the need is attributable to those development projects that pay the fees. (Ord. 714 § 8, 2021).

The following words and phrases, whenever used in this chapter, shall have the meanings defined in this section unless the context clearly requires otherwise:

(1) “Accessory dwelling unit” (“ADU”) means an attached or detached dwelling unit which provides complete, independent living facilities for one or more persons, including permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family dwelling is situated, as defined in CMC 20.88.050.

(2) “Affordable housing unit” means housing that is restricted to occupancy at an affordable rent or an affordable housing cost to moderate-income households (as defined in California Health and Safety Code 50093 and its implementing regulations), low-income households (as defined in California Health and Safety Code 50079.5 and its implementing regulations) or very low-income households (as defined in California Health and Safety Code Section 50105 and its implementing regulations). The terms “affordable rent” and “affordable housing cost” shall be as defined in California Health and Safety Code Sections 50053 and 50052.5 and their implementing regulations.

(3) “Arm’s length transaction” shall mean a sale in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither of which is under any compulsion to participate in the transaction. A sale between relatives, related companies or partners, or a sale for which a significant purpose is avoiding the effect of the violations of this chapter is not an arm’s length transaction.

(4) “Building permit” means the permit required for new construction and additions pursuant to this chapter. The term “building permit,” as used herein, shall not be deemed to include permits required for remodeling, rehabilitation, or other improvements to an existing structure or rebuilding a damaged or destroyed structure, provided there is no increase in gross floor area of commercial or industrial development or in the number of dwelling units in residential developments resulting therefrom.

(5) “Capital improvements” means any and/or all of the public facilities and infrastructure improvements including the acquisition of land, design, and construction, equipping and installing, and related capital costs which are to be financed in whole or in part by the imposition of development impact fees.

(6) “Capital improvements program” means the city’s annually updated program indicating the approximate location, size, time schedule and estimates of cost for public facilities and improvements.

(7) “City” means the city of Cudahy.

(8) “Commercial development” means any development designated or intended to be occupied or used for retail commercial, nonretail commercial, general business or other commercial purposes, including sleeping rooms in hotels and motels with or without kitchens or kitchen facilities. It does not mean repair or replacement of a commercial building which has been accidentally damaged or destroyed by natural causes or human activity provided there is no increase in the floor area of the building.

(9) “Council” means the city council of the city.

(10) “Department” means the community development department of the city.

(11) “Development” or “development project” means any manmade change to improved or unimproved real property, the use of any principal structure or land, or any other activity that requires the issuance of a building permit.

(12) “Development impact fees” means any monetary exaction, other than a tax or special assessment, which is charged to an applicant in connection with approval of a development project for the purpose of defraying all or a portion of the cost of capital improvements and operational services resulting from the development project, subject to the exceptions set forth in California Government Code Section 66000 et seq.

(13) “Fee” means a monetary exaction, other than a tax or special assessment, which is charged by the city to an applicant in connection with approval of a development project for the purpose of defraying all or a portion of the cost of public facilities related to the development project, but does not include fees specified in Section 66477 of the California Government Code, fees for processing applications for governmental regulatory actions or approvals, or fees collected under development agreements adopted pursuant to Article 2.5 (commencing with Section 65864) of Chapter 4, Division 1, Title 7 of the California Government Code.

(14) “Homeless housing” means housing for homeless persons including but not limited to emergency shelters for the homeless as defined in CMC 20.88.060.

(15) “Inclusionary unit” means the number of units to be provided for a residential development project by the developer for affordable housing purposes.

(16) “Industrial development” means any development designed or intended for manufacturing, processing, research, warehousing or similar uses. It does not mean repair or replacement of an industrial building which has been accidentally damaged or destroyed by natural causes or human activity provided there is no increase in the floor area of the building.

(17) “Operational services” means public services and maintenance which are to be financed in whole or in part by the imposition of development impact fees.

(18) “Public art” means artwork consisting of original creations of art including but not limited to sculpture, murals, mosaic, and fountains in public places (any exterior area on public or private property which is accessible and visible to the general public).

(19) “Report” means the development impact fee study prepared by Willdan Financial Services dated April 7, 2021, pursuant to the provisions of California Government Code Section 66000 et seq., which report is on file with the city clerk of the city.

(20) “Residential development” means any development consisting of dwelling units as defined in CMC Title 20. It does not mean:

(a) Any addition to an existing single-family home; or

(b) Repair or replacement of a residential building which has been accidentally damaged or destroyed by natural causes or human activity provided there is no increase in the number of dwelling units; or

(c) New construction of a single-family dwelling unit on a lot or parcel of land with an area of not less than two acres which was created prior to the adoption of the ordinance codified in this chapter.

(21) “Public facilities” includes public improvements, public services, and community amenities. (Ord. 714 § 8, 2021).

In order to implement the goals, objectives, policies and specific actions of the general plan of the city, the capital improvement program and the city’s annually adopted budget; to protect the health, safety and general welfare of the city’s population; to mitigate impacts of new development on the level of service capacity in existing facilities; and to ensure that the burdens of financing capital improvements and operational services are borne by the development projects benefited thereby, and except as otherwise expressly set forth elsewhere in this municipal code, every person constructing any new residential, commercial or industrial development shall pay to the city prior to issuance by the city of a building permit the development impact fees set forth hereinbelow and such other development impact fees as the city council may adopt by resolution or ordinance as necessary and appropriate from time to time. (Ord. 714 § 8, 2021).

To mitigate the impacts of new development on traffic, a traffic facilities fee will be imposed on all new development. The traffic facilities fees shall be used to finance transportation improvements, including intersection improvements, sidewalks, and roadways. (Ord. 714 § 8, 2021).

To mitigate the impacts of new residential development on the availability of open space land and park and recreational facilities, a parks and recreation facilities fee will be imposed on all new residential development in the city. (Ord. 714 § 8, 2021).

To provide adequate public services and to support the well-being and general welfare of the city’s growing population, a general government facilities fee will be imposed on all new development in the city. The general government facilities fee shall be used to finance land acquisition, design, construction, equipping and related capital costs for government facilities. (Ord. 714 § 8, 2021).

To mitigate the impacts of new development on the availability of public parking, a parking facilities fee will be imposed on all new development in the city. (Ord. 714 § 8, 2021).

A Quimby fee will be imposed to new residential development in lieu of parkland dedication and shall only apply to development occurring in subdivisions pursuant to California Government Code Section 66477. (Ord. 714 § 8, 2021).

To mitigate the impacts of new development on the availability of public art spaces, a public arts fee will be imposed on all new residential, public and institutional buildings and all commercial, office, and industrial development projects in the city. (Ord. 714 § 8, 2021).

The city council shall by resolution establish and periodically adjust the amount of the development impact fees specified in this chapter, which resolution(s) shall be consistent with the requirements of Assembly Bill 1600 (Chapter 927 Statutes 1989) as set forth in California Government Code Section 66000 et seq. and shall include the following:

(1) Identify the purpose of the fee;

(2) Identify the use to which the fee will be put;

(3) Determine how there is a reasonable relationship between the fee’s use and the type of development project on which the fee is imposed;

(4) Determine how there is a reasonable relationship between the need for the public facility and the type of development project on which the fee is imposed; and

(5) Determine how there is a reasonable relationship between the specific amount of the fee imposed on a development project and the cost of the needed public facilities attributable to that development project. (Ord. 714 § 8, 2021).

Upon the receipt by the department of an informal request or of an application by a property owner or land developer for any development action, the department shall determine and give written notice to the property owner or land developer of the applicability of this chapter to said development, the amount, if any, of developable land to which such approval relates and the amount of the fee(s) payable pursuant to the resolution(s) adopted pursuant to CMC 15.40.200, which may be expressed in terms of a formula. The department need not give written notice to the property owner or land developer for informal requests or in the event that it determines that no fee relating to such development is payable pursuant to this chapter and the resolution(s). (Ord. 714 § 8, 2021).

After the adoption by the city council of a resolution establishing the amounts of the development impact fees, no building permit shall be issued and no development shall be permitted on any land within the city unless and until the development impact fees relating to such development and established by the resolution(s) adopted pursuant to CMC 15.40.200 have been paid unless a determination has been made by the department that no fee is payable pursuant to this chapter. Development impact fees payable in connection with mobile home park development shall be paid by the property owner or land developer prior to issuance by the city of off-site improvement permits. With respect to residential developments, the requirement that a property owner or land developer pay the development impact fees prior to the issuance of a building permit is imposed pursuant to Government Code Section 66477(b)). (Ord. 714 § 8, 2021).

If the construction of any residential, commercial or industrial development is commenced without payment of the applicable development impact fees herein set forth and without obtaining a building permit therefor, such fees shall become delinquent at the time such construction is commenced. There shall be added to such delinquent fees a penalty of 25 percent, which shall thereupon become payable. The fees and penalty shall bear interest at the rate of 0.833 percent per month or portion thereof until paid, but in no event shall such interest exceed the maximum rate of interest permitted by law. Such action shall also be subject to payment of building permit fees and penalties as established by the city council. (Ord. 714 § 8, 2021).

All of the fees collected pursuant to this chapter shall be deposited into separate specific accounts for capital improvements and operational services of the city. These funds and any interest earnings thereon shall be used solely for the purposes specified for funds of such accounts and solely for the financing of capital improvements and operational services or to reimburse the city for capital improvements and operational services funded or constructed in whole or in part by the city. (Ord. 714 § 8, 2021).

(1) Notwithstanding the provisions of CMC 15.40.030 and 15.40.210, upon application by a property owner or land developer, the city council may accept consideration in lieu of the development impact fees required pursuant to this chapter, provided:

(a) The city council, upon recommendation of the city staff, finds that the substitute consideration proposed has a value equal to or greater than such fee; and

(b) The substitute consideration is in a form acceptable to the city council.

(2) A property owner or land developer may elect to construct capital improvement(s). If the property owner or land developer elects to construct such improvement(s), the property owner or land developer must enter into an agreement with the city prior to issuance of any building permit by the city. The agreement must establish the estimated cost of the improvement(s), the schedule for initiation and completion of the improvement(s), a requirement that the improvement(s) be completed to city standards, and such other terms and conditions as deemed necessary by the city.

(3) A property owner, land developer, commercial or industrial enterprise may be entitled to a waiver, reduction, or deferral in the traffic facilities fees established in CMC 15.40.040, the parks and recreation fees established in CMC 15.40.050, the general government fees established in CMC 15.40.060, the parking facilities fees established in CMC 15.40.070, and the public arts fee established in CMC 15.40.090 if the city manager determines that a development will contribute a significant amount of sales tax to the city, will create a substantial number of jobs, or will enhance the city’s quality of life or produce other desirable benefits to the community, commercial or industrial enterprise. (Ord. 714 § 8, 2021).

The development impact fees established herein are additional and supplemental to, and not in substitution of, any other requirements imposed by the city on the development of land or the issuance of building permits. The development impact fee(s) are intended to be consistent with and to further the goals, objectives, policies and specific actions of the general plan of the city; the study; and other city policies, ordinances and resolutions by which the city seeks to ensure the provision of public facilities and services in conjunction with the development of land. In no event shall a property owner or land developer be obligated to pay for capital improvements and operational services in an amount in excess of the amount calculated pursuant to this chapter and the resolution(s) adopted pursuant to CMC 15.40.200; provided, however, a property owner or land developer may be required to pay, pursuant to city ordinances, regulations or policies for other public facilities and services, including, without limitation, subdivision improvements and other fees associated with development. (Ord. 714 § 8, 2021).

(1) Determinations made by the planning department pursuant to the provisions of this section may be appealed to the council by filing a written request with the city manager, together with a fee established by resolution of the council, within 10 calendar days of the determination of the planning department.

(2) If the city council finds and determines that the amount of the development impact fee(s) deposited exceeds the amount of the development impact fee(s) required by the development project, the difference shall be reimbursed to the property owner or the land developer.

(3) If the notice of appeal is accompanied by a cash deposit in an amount equal to the development impact fee(s) due as calculated by the department, the chief building official shall issue the building permit. The filing of an appeal shall not stay the collection of the development impact fee(s). (Ord. 714 § 8, 2021).

The provisions of this chapter and any resolution adopted hereto shall supersede any previous ordinance or resolution to the extent the same is in conflict herewith. (Ord. 714 § 8, 2021).