Chapter 15.06

PUBLIC FACILITIES DEVELOPMENT IMPACT FEE

• A. The city council finds that Temecula is a rapidly growing city. The city's population has the potential to grow from a current population of about forty thousand to over two hundred thousand at build out. This increase in population is reasonably expected to create a substantial increase in the demand placed upon public facilities. The city's existing public facilities will soon become inadequate to handle the projected population growth at existing levels of service. In order to serve the projected population growth, public facilities must be expanded.

• B. 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 public facilities 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.

• C. The amount of the public facilities 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 public facilities development impact fees collected shall not include the cost of public facilities that serve existing development.

• (Ord. 97-09 § 1; Ord. 97-14 § 1)

• A. Except as provided in Sections 15.06.040 and 15.06.050, a developer shall pay a public facilities development impact fee for each building which is part of a residential development, in an amount established by resolution of the city council, upon final inspection for that building, or the date the certificate of occupancy is issued for that building, whichever occurs first, or 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; provided, however, that if a residential development contains more than one dwelling, the director of community development may determine whether the fees or charges shall be paid on a pro rata basis for each dwelling when it receives its final inspection or certificate of occupancy, whichever occurs first, or in the case of a mobilehome park when the unit is placed within the park; on a pro rata basis when a certain percentage of the dwellings have received their final inspection or certificate of occupancy, whichever occurs first; or on a lump-sum basis when the first dwelling in the development receives its final inspection or certificate of occupancy, whichever occurs first. If the required fee is not fully paid prior to issuance of a building permit for construction of any portion of the residential development encumbered thereby, the director of community development 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, within the time specified above. The contract shall be recorded with the Riverside County recorder and shall constitute a lien for the payment of the fee.

• B. For purposes of this section, "final inspection" or "certificate of occupancy," shall be defined as that term is defined in Government Code Section 66007, as amended.

• (Ord. 97-09 § 1; Ord. 97-14 § 1; Ord. 98-05 § 2)

• A. Except as provided in Sections 15.06.040 and 15.06.050, a developer shall pay a public facilities 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. Notwithstanding subsection A of this section, a building permit may be issued to a developer prior to payment of a public facilities development fee, if the developer qualifies as a nonprofit organization that is exempted from taxes by Section 501(c)(3) of the Internal Revenue Code of 1986. If, pursuant to this subsection B, 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 director of community development 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 Section 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.

• (Ord. 97-09 § 1; Ord. 97-14 § 1)

• A. A developer shall be entitled to a reduction in the amount of the component of public facilities development impact fee required by Sections 15.06.020 and 15.06.030, if the developer constructs public facilities relating to that component pursuant to the city's capital improvement plan and the public facilities constructed are those for which the capital improvement plan designates development impact fees as the funding source. The specific component of the public facilities development impact fee which would have funded the improvement when installed shall be reduced by the amount of engineering and construction costs that would be reasonably incurred by the city in building those same public facilities. The amount of the reduction in the public facilities development impact fee component shall be subject to approval by the director of community development prior to construction of the development.

• B. If a developer constructs public facilities pursuant to the city's capital improvement plan, and if the city's engineering and construction costs to construct those same public facilities would have been more than the public facilities development impact fee assessed to that developer pursuant to Sections 15.06.020 and 15.06,030, then nothing in this section shall prevent the city from entering into a reimbursement agreement with that developer, subject to the availability of funds.

• (Ord. 97-09 § 1; Ord. 97-14 § 1)

• A. Application for Fee Reduction.

1. Any developer whose development is subject to the public facilities development impact fee required by this chapter may apply to the director of community development for a reduction in that fee based upon the demonstrable absence of a reasonable relationship between the impact of that development on the city's public facilities and either the amount of public facilities development impact fee charged, or the type of public facilities improvements to be constructed and/or purchased. The application shall be made in writing and filed with the director of community development no later than ninety days after approval of the development. If no application for discretionary review is required for the development, then the application shall be made in writing and filed within ninety days after the city issues a building permit for the development. The application shall state in detail the factual basis for the request for reduction. Failure to file a timely application for reduction deprives the director of jurisdiction to consider the application. The director shall make a decision on the application for reduction within thirty calendar days after the application has been filed. Notice of the director's decision shall be mailed to the applicant, postage paid.

2. Any developer whose development is subject to the public facilities development impact fee required by this chapter, including a developer who, in connection with the development, has constructed or financed regional or regionally significant public facilities substantially similar to those facilities that are listed or otherwise identified in the city's capital improvement plan, either through participation in a special district (e.g., a community facilities district or a special assessment district) or as a result of conditions of approval for the development, may apply to the director of community development for a reduction in that fee. The application shall be made in writing and filed with the director of community development no later than ninety days after the effective date of this section (the effective date of this section when originally enacted by Ordinance No. 97-09 was June 26, 1997), or ninety days after the city issues a building permit for the development, whichever is later. The application shall state in detail the factual basis for the request for reduction. The city shall consider entering into an agreement, or modifying an existing agreement, with any developer applying for a reduction pursuant to this subsection (A)(2).

3. Any developer of nonresidential property whose development is subject to the public facilities development impact fee required by this chapter may apply to the director for a full or partial reduction of that fee based upon significant financial and economic benefit to the city of the proposed development. In determining the significant financial and economic benefit to the city of the proposed development, the council shall consider the following factors: jobs created by the development; average annual salary of jobs created; multiplier effect of jobs created; tax revenue to the city or the city's redevelopment agency generated by the development; effect of the development upon the economic development of the city; and infrastructure needs generated by the development. The council shall in its sole discretion determine, by resolution of the council, whether to grant a reduction in development impact fees based upon the significant financial and economic benefit to the city of the development and the council's decision shall be final and conclusive. The application for such a reduction in fees shall be filed with the director of community development no later than July 1, 1998 or ninety days following issuance of a building permit for the development, whichever is later. The application shall be on a form approved by the director of community development and shall contain such information as required by the

   • director. The director shall schedule the application to be heard by the city council at a public hearing within forty-five calendar days of filing. Subsections B and C of this section shall not apply to applications for fee reductions under this subsection. If the development impact fees have been paid prior to council action reducing the fees, the council may order a refund in accordance with its action.

• B.

Appeal From Director's Decision.

1. Any decision of the director of community development under Section 15.06.050(A) may be appealed to the planning commission by filing an application for appeal with the director of community development. The application must be filed within fifteen calendar days after notice of the director's decision has been mailed to the applicant; provided, however, that if the fifteen days expire on a day when Temecula City Hall is not open for business, then the appeal period shall be extended to the next business day.

2. Failure to file a timely appeal application deprives the planning commission of jurisdiction to hear the appeal.

3. The planning commission shall consider the appeal at a public hearing to be held within forty-five calendar days after the appeal application is filed.

• C.

  • Appeal From Commission's Decision.

  1. The decision of the planning commission pursuant to Section 15.06.050(B) may be appealed to the city council by filing an application for appeal with the city clerk. The application must be filed within fifteen calendar days after the commission has made a final decision on the appeal; provided, however, that if the fifteen days expire on a day when Temecula City Hall is not open for business, then the appeal period shall be extended to the next business day.

  2. Failure to file a timely appeal application deprives the city council of jurisdiction to hear the appeal.

  3. The city council shall consider the appeal at a public hearing to be held within fortyfive calendar days after the appeal application is filed. The decision of the city council shall be final.

• D. Allocation of Fee Reductions or Credits. Any fee reduction or fee credit granted pursuant to this chapter shall be applied only to that component of the public facilities development impact fee which would have funded the improvement upon which the reduction or credit is based or for which a fee reduction was granted pursuant to Section 15.06.050(A)(1).

• E. Processing of Protests. The procedure set forth in this section shall implement Government Code Section 66020, or its successor, and shall serve as the city's method for processing protests filed pursuant to that section. Prior to the effective date of the approval of the development, or, if no discretionary approval is required, prior to the issuance of a building permit, a developer that is subject to this chapter shall sign a statement acknowledging the imposition of a public facilities development impact fee upon that developer's development. Such acknowledgment shall not be deemed a waiver of the developer's right to protest the imposition and to request a fee adjustment pursuant to this section.

• (Ord. 97-09 § 1; Ord. 97-14 § 1; Ord. 98-05 § 3; Ord. 19-02 § 7)

The city shall establish separate accounts for each category of development impact fee established by the city council and deposit development impact fees collected into the appropriate account. The money deposited into these accounts, and any interest earnings thereon, shall be used solely for the public improvements, public services, and community amenities for which the development impact fees were imposed. Development impact fees may be used to pay the principal, interest and other costs of bonds, notes and other obligations issued or undertaken by or on behalf of the city to finance such improvements, services and amenities. (Ord. 97-09 § 1; Ord. 97-14 § 1; Ord. 22-01 § 19)

A developer subject to the public facilities development impact fee required by Sections 15.06.020 and 15.06.030 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 plus any adjustment for inflation made between that date and the date the fee becomes due.

(Ord. 97-09 § 1; Ord. 97-14 § 1)