Report to Mayor and City Council
Tuesday, May 03, 2022
Discussion
SUBJECT:
Title
CONSIDER APPROVING RESOLUTION NO. 22-084 REJECTING THE PROTEST OF PAYMENT OF INTERIM DEVELOPMENT IMPACT FEES BY BRANDYWINE HOMES FOR THE "CARSON LANDING" DEVELOPMENT PROJECT (CITY COUNCIL)
Body
I. SUMMARY
Brandywine Homes ("Brandywine") is protesting the Interim Development Impact Fees ("IDIF") imposed on their Carson Landing 175 residential unit development at the northeast corner of S. Central Avenue and E. Victoria Street. Specifically, the amount under dispute is the annual IDIF adjustment that takes into effect every July 1. Brandywine is asserting that the Carson Landing's IDIF rate is fixed at $14,000 per unit as referenced in their Planning Commission conditions of approval for their vesting tentative tract map.
The City's Interim Development Impact Fee Ordinance ("IDIF Ordinance" or "CMC Section 11100 et. seq.") (Exhibit No. 1) states that IDIF shall be calculated and paid prior to issuance of building permit. Brandywine paid their IDIF during FY 21-22. The IDIF for residential developments (all other category) for FY 21-22 is $15,087.23 per unit. Therefore, the IDIF amount currently under dispute is $1,087.23 per unit or $70,669.95 for the first sixty-five units of IDIF paid by Brandywine. At project completion, however, Carson Landing will have a total of 175 units, or 110 additional units. Brandywine's Protest Notice (Exhibit No. 2) stated that disputed adjustment amounts would carry over to all IDIF payments, which would include the remaining 110 units. This could be a reduction of an additional $120,000 to $150,000 in IDIF revenue depending on when IDIF payments are actually made by Brandywine at the time or prior to issuance of building permits. Therefore, the total potential IDIF amount under dispute is approximately $200,000.
IDIF Ordinance Section 11902 (also same as CMC 11902) provides a process for a developer to submit fees under protest to allow for an ...
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