Chapter 17.01 — DEVELOPMENT IMPACT FEES

Section

17.01.010 Purpose and intent 17.01.020 Definitions 17.01.030 Applicability

17.01.040 Resolution establishing the amount of development impact fees

17.01.050 Calculation of development impact fees

17.01.060 Payment of fees for nonresidential development

17.01.070 Payment of development impact fees on residential development

17.01.080 Administration of development impact fees

17.01.090 Credits and reimbursements

17.01.110 Development impact fee nonexclusive

17.01.120 Protests, appeals and audits

This chapter establishes the program for the adoption and administration of development impact fees. It is the intent of the city to require every person who develops land to mitigate the impacts of that development on the city's public facilities. The city will therefore require developers to pay a development impact fee that will assist in meeting the demand for public facilities caused by development. The public facilities will be constructed in accordance with a capital improvement plan adopted by resolution of the City Council. The amount of the development impact fees collected pursuant to this chapter shall be limited to the cost of public facilities attributable to new development. The amount of the development impact fees collected shall not include the cost of public facilities that serve existing development.

(Ord. 2022-364, passed 11-16-2022)

Unless the context shall require otherwise, the definitions set forth in this section shall apply to the following terms as used in this chapter.

ACCESSORY STRUCTURE. Private garages, children's playhouses, antennas, windmills, silos, tank houses, workshops, barns, coops and other buildings that are accessory to a one-family or two-family dwelling. BUILDING PERMIT. The permit required for new construction and additions pursuant to this title. 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.

CAPITAL IMPROVEMENTS. Any and/or all of the public facilities and infrastructure improvements, including 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.

CAPITAL IMPROVEMENTS PROGRAM. The city's annually updated program indicating the approximate location, size, time schedule and estimates of cost for public facilities and improvements.

DEVELOPMENT or DEVELOPMENT PROJECT. Any manmade change to improved or unimproved real property, the use of any principal structure or land, or any other activity that requires issuance of a building permit. DEVELOPMENT IMPACT FEES. 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 related to the development project, subject to the exceptions set forth in Cal. Gov't Code §§ 66000 et seq.

NONRESIDENTIAL DEVELOPMENT. Any development project except for those projects or owner. The legal owner(s) of real property upon which a development project is proposed, or residential development. Any development consisting of one or more dwelling units.

(Ord. 2022-364, passed 11-16-2022)

(A) In order to implement the goals, objectives, policies and specific actions of the General Plan of the city, capital improvement plan, 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 public facilities are borne by the development projects benefitted thereby, every person constructing any new residential, commercial or industrial development shall pay to the city, the development impact fee established by resolution of the City Council.

(B) Exceptions. The following types of development projects are not subject to development impact fees:

(1) Reconstruction of a structure damaged or destroyed by fire or other natural causes, provided the structure contains the same number of dwelling units and/or the same or less gross floor area as the damaged or destroyed structure.

(2) Rehabilitation or remodeling of an existing residential structure provided no new dwelling units are added to the structure.

(3) Rehabilitation or remodeling of an existing nonresidential structure provided no additional gross floor area is added to the structure and there is no change in use that would generate more traffic.

(4) Accessory structures, as defined herein.

• (Ord. 2022-364, passed 11-16-2022)

The City Council shall by resolution establish 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 Cal. Gov't Code §§ 66000 et seq. and shall include the following:

• (A) Identify the purpose of the fee;

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

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

• (D) 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

• (E) 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. 2022-364, passed 11-16-2022)

A developer subject to the development impact fee required by this chapter shall pay the amount of the fee in effect at the time that the fee becomes due. Furthermore, any fee imposed on a development which is protected by vested rights acquired through a vesting tentative subdivision map shall pay the amount of the fee in effect at the time the rights became vested.

(Ord. 2022-364, passed 11-16-2022)

(A) A developer shall pay the development impact fee for each building in a nonresidential development or new square footage of a building in a nonresidential development, in an amount established by resolution of the City Council, prior to issuance of a building permit for that building. Construction which does not result in new square footage shall not be subject to a public facilities development impact fee.

(B) A building permit may be issued to a developer prior to payment of the development impact fee, if the developer qualifies as a nonprofit organization that is exempted from taxes by § 501 (c)(3) of the Internal Revenue Code of 1986. If, pursuant to this section, the required fee is not fully paid prior to issuance of a building permit for construction of any portion of the nonresidential development encumbered thereby, the Community Development Director may require the property owner, or lessee if the lessee's interest appears of record, as a condition of issuance of the building permit, to execute a contract to pay the fee or charge, or applicable portion thereof, upon transfer of the nonresidential development, or the applicable portion thereof, to a purchaser that does not qualify as a nonprofit organization that is exempted from taxes by § 501 (c)(3) of the Internal Revenue Code of 1986. The contract shall be recorded with the Riverside County recorder and shall constitute a lien for the payment of the fee.

(C) However, this section shall not be construed to prevent payment of the fees prior to issuance of certificate of occupancy.

(Ord. 2022-364, passed 11-16-2022)

(A) A developer shall pay a development impact fee for each building which is part of a residential development, in an amount established by resolution of the City Council, upon the issuance of a certificate of occupancy for that building.

(B) In the case of mobilehome parks, the fee for all potential units within the entire park shall be paid prior to the first mobilehome being placed within the park.

(C) For purposes of this section, CERTIFICATE OF OCCUPANCY , shall be defined as that term is defined in Cal. Gov't Code § 66007, as amended.

(D) However, this section shall not be construed to prevent payment of the fees prior to issuance of certificate of occupancy.

(Ord. 2022-364, passed 11-16-2022)

All of the fees collected pursuant to this chapter shall be deposited into separate specific accounts for public facilities of the city. These funds and any interest earnings thereon shall be used solely for the purposes specified for funds of such account and solely for the financing of such public facilities or to reimburse the city for public facilities funded or constructed in whole or in part by the city.

(Ord. 2022-364, passed 11-16-2022)

(A) If a developer constructs a capital improvement they may receive a credit against the corresponding development impact fee for the development project. The developer and the city must enter into a credit agreement prior to the issuance of a building permit for the development project for the developer to receive a credit against the applicable development impact fees. The agreement must estimate the cost of constructing the capital improvement, the schedule for the completion of the capital improvement, a requirement that the capital improvement be constructed to city standards, and such other terms and conditions as deemed necessary by the city.

(B) Reimbursements. If a developer constructs a capital improvement the city may reimburse the developer for the costs of the capital improvement in excess of what is needed to provide services to or mitigate the impacts of the development project. The developer and the city must enter into a reimbursement agreement for the owner to receive a reimbursement. The reimbursement agreement shall require the city, for a period of up to ten years, to reimburse the developer from the development impact fees collected to fund capital improvements of the same type as the capital improvement constructed by the developer. The city shall not reimburse a developer out of the city's general fund or any other city funds.

(C) Maximum credit and reimbursement. In no event shall a developer receive a credit and/or reimbursement in excess of the city's most recent estimated cost of constructing the capital improvement, or the portion of the capital improvement actually completed, by contract or by the city's own forces.

(D) Credit and reimbursement policy. The City Council may, from time to time, adopt by resolution a development impact fee credit and reimbursement policy implementing the provisions of this section.

(E) Execution of agreements. The City Manager may approve and sign any agreements authorized by division (A) or (B) of this section, provided the agreement is consistent with this section and any policy adopted by the City Council pursuant to division (D) of this section.

(Ord. 2022-364, passed 11-16-2022)

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. (Ord. 2022-364, passed 11-16-2022)

All protests, appeals, and audits shall be conducted in accordance with the procedures contained in the Mitigation Fee Act (Cal. Gov't Code §§ 66020 et seq. ).

(Ord. 2022-364, passed 11-16-2022)

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TABLE I: COUNTY ORDINANCES ADOPTED

Editor’s note:

The following list of Riverside County ordinances has been adopted by the City of Menifee for use within the city. All resolutions, rules and regulations of the county which have been applicable in the implementation of a county ordinance (including, but not limited to, the California Environmental Quality Act and those pertaining to traffic) to the extent that they applied before incorporation and were continued in effect by the city shall remain in full force and effect as resolutions, rules and regulations of the city until superseded or repealed by action of the city. These provisions are adopted by reference and incorporated as if set out in full in this code. The city has, and will continue to, rescind, supersede or amend any of the following ordinances as the need arises.

ration and were continued in effect by the city shall remain in full force and effect as resolutions, rules and regulations of the city until superseded or repealed by action of the city. These provisions are adopted by reference and incorporated as if set out in full in this code. The city has, and will continue to, rescind, supersede or amend any of the following ordinances as the need arises._

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REFERENCES TO CALIFORNIA CODES

ADMINISTRATIVE CODE

BUSINESS AND PROFESSIONS CODE

CIVIL CODE

CODE OF CIVIL PROCEDURE

Cal. Code Cite Code Section

CODE OF REGULATIONS

CORPORATIONS CODE

EDUCATION CODE

FIRE CODE

FOOD AND AGRICULTURE CODE

GOVERNMENT CODE

Code Section

Cal. Code Cite

HEALTH AND SAFETY CODE

LABOR CODE

PENAL CODE

PUBLIC CONTRACT CODE

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REVENUE AND TAXATION CODE

STREETS AND HIGHWAYS CODE

VEHICLE CODE

WATER CODE

WELFARE AND INSTITUTIONS CODE