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Ordinance 2006-23ORDINANCE NO. 2006-23 AN ORDINANCE OF THE CITY OF GILROY AMENDING GILROY CITY CODE SECTION 7.4.1, PROVIDING THAT CERTAIN CHARGES TO DEVELOPMENT PROJECTS IN THE ZERO FEE AREA (AS DEFINED BY EXHIBIT "A ") ARE SET AT ZERO (0) OR FIFTY (50) PERCENT OF COST REASONABLY BORNE BY THE CITY, TO EXTEND ITS PROVISIONS UNTIL DECEMBER 31, 2008 WHEREAS, State law allows cities to charge fees for the filing, accepting, reviewing, approving or issuing of an application, permit or entitlement, so long as the amount of those fees and charges do not exceed the estimated amount required to provide the service for which the fees or charges are levied; and WHEREAS, the City is authorized to impose development impact fees pursuant to its police powers and pursuant to State law; and WHEREAS, the City Council had appointed a Downtown Task Force to study and recommend measures to improve the downtown in preparation for the adoption of a Downtown Specific Plan; and WHEREAS, the !Downtown Task Force had recommended eliminating application processing fees, development impact fees and building permit fees for development projects in the City's central business district area, and as referred to as the City's Zero Fee Area ( "Zero Fee Area "), which is more accurately described in the map attached hereto as Exhibit "A" and incorporated by this reference; and WHEREAS, Gilroy City Code Section 7.2 authorizes and directs the City Administrator to adjust fees and charges', to recover the percentage of "costs reasonably borne," as such term is defined in Section 7.3, by the City for its services and for development impact fees; and WHEREAS, Sectioon 7.4 establishes the percentage of the cost reasonably borne by the City that will be charged to applicants seeking development permit approval and for development impact fees; 'land WHEREAS, the City's Zero Fee Area shall expire on December 31, 2006; and WHEREAS, the City Council now wishes to extend the period of time during which such development impact fees and charges to applicants in the Zero Fee Area will be set at zero (0) from January 1, 2007 to December 31, 2007, and set at fifty percent (50 %) from January 1, 2008 to December 31, 2008, to allow time for the development and adoption of the Downtown Specific Plan implementation measures. 1JH1708329.4 01- 103006 - 04706084 Ordinance No. 2006 -23 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES HEREBY ORDAIN AS FOLLOWS: SECTION I Section 7.4.1 is amended to state as follows: Sec. 7.4.1 Elimination of development impact fees and the charging of costs reasonably borne to development projects in the Zero Fee Area. (a) For the purposes of this section, "development project" shall mean any project that requires a permit granting approval for construction from the City of Gilroy. (b) For the time period of January 1, 2007 until December 31, 2007, costs reasonably borne, as set forth in the table in section 7.4, shall be set at zero (0) percent and development impact fees set at zero (0) dollars for development projects in the Zero Fee Area, except direct costs shall be borne by said projects for all costs, fees and charges incurred in city review and processing that must be paid to outside consultants, city- contracted entities, and other agencies. (c) For the time period of January 1, 2008 until December 31, 2008, costs reasonably borne, as set forth in the table in section 7.4, shall be set at fifty (50) percent and development impact fees set at fifty (50) dollars for development projects in the Zero Fee Area, except direct costs shall be borne by said projects for all costs, fees and charges incurred in city review and processing that must be paid to outside consultants, city- contracted entities, and other agencies. (d) This Section 7.4.1, in its entirety, shall become null and void, and have no force and effect thereafter, on December 31, 2008. SECTION II . If any section, subsection, subdivision, sentence, clause or phrase of this Ordinance is for any reason held to be unconstitutional or otherwise void or invalid by any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each section, subsection, subdivision, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses or phrases be declared unconstitutional. 1JH1708329.4 -2- 01- 103006 - 04706084 Ordinance No. 2006 -23 PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF GILROY this 20th day of November, 2006, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS ATTES´┐Ż Rhonda Pellin, City Clerk ARELLANO, CORREA, GARTMAN, VALIQUETTE, VELASCO and PINHEIRO NONE APPROVED ert Pinheiro, Mayor 1JH1708329.4 -3- 01- 103006- 04706084 Ordinance No. 2006 -23 I, RHONDA PELLIN, City Clerk of the City of Gilroy, do hereby certify that the attached Ordinance No. 2006 -23 is an original ordinance, or a true and correct copy of a city ordinance, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council held on the 20th day of November, 2006, at which meeting a quorum was present, and has been published or posted pursuant to law. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this 1 st day of December, 2006. City Clerk of the City of Gilroy (Seal)