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Ordinance 2007-17 ORDINANCE NO. 2007-17 AN ORDINANCE OF THE CITY OF GILROY AMENDING GILROY CITY CODE SECTION 7.4.1, MODIFYING THE BOUNDARIES OF THE ZERO FEE AREA (AS DEFINED BY EXHIBIT "A") AND PROVIDING THAT CERTAIN FEES AND COSTS CHARGED TO DEVELOPMENT PROJECTS IN THE ZERO FEE AREA ARE ELIMINATED UNTIL DECEMBER 31, 2009. 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 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 based on the Task Force recommendations eliminated application processing fees and impact fees as an interim economic stimulus measure while the Downtown Specific Plan was developed; and WHEREAS, the City Council previously enacted Section 7.4.1 of the Gilroy Code which eliminated application processing fees, development impact fees and building permit fees for development projects in the City's central business district area, 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, Section 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; and WHEREAS, the City's Zero Fee Area shall expire on December 31, 2008; and WHEREAS, the Downtown Specific Plan was adopted by the City Council on November 7, 2005 and recommends that the City provide direct or indirect financial incentives to businesses and key development projects that will create a lively downtown environment by attracting a vibrant mix of retail, restaurant, and residential uses that provide a 24-hour atmosphere and injects new life into the downtown; and -1- ILLEZOTTEI729570.4 nQ111\7J\47nfWM Ordinance No. 2007-17 WHEREAS, the Downtown Gilroy Strategic Plan recommends that the City focus financial incentives on only those uses that will help achieve the vision of the Downtown Specific Plan, such as restaurants, retail, residential and entertainment uses rather than all uses identified in the Downtown Specific Plan; and WHEREAS, consistent with the Downtown Specific Plan and the Downtown Gilroy Strategic Plan recommendations, the City Council now wishes to (a) amend the boundaries of the Zero Fee Area; (b) amend those uses eligible for the Downtown Fee Incentive Program as set forth in Exhibit "B" attached hereto and (c) amend the time period for inclusion in the elimination of fees and costs in the Zero Fee Area. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES HEREBY ORDAIN AS FOLLOWS: SECTION I Chapter 7, of the Gilroy City Code entitled "Cost Comparison System for Fee and Service Charge Revenue" is hereby amended by repealing Section 7.4.1 in its entirety and by adding a new Section 7.4.1 entitled "Elimination of development impact fees and the charging of costs reasonably borne to development projects in the Zero Fee Area" which shall read 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) The Zero Fee Area shall be redefined to be that area set forth in Exhibit "A", which limits the zero fee area along Monterey Street, to the blocks between 2nd and 10th and on Eigleberry Street between 3rd and 6th. Additionally, a portion of Railroad Street generally between Lewis Street and Old Gilroy Street shall be included in the Zero Fee Area. All other areas are excluded from the Zero Fee Area. (c) For the time period between the effective date of this ordinance and December 31,2009, 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, provided that an architectural and site review application deemed complete by the Planning Manager is received by June 30, 2008 and a building permit has been issued within one year after architectural and site approval, provided said date is on or before December 31, 2009. Provided however, that development projects which have architectural and site review applications deemed complete on the effective date of this ordinance, must obtain a building permit within one year after architectural and site approval._ 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. -2- ILLEZOTTEI729570.4 n011n7_M7nl;n1l4 Ordinance No. 2007-17 (d) This Section 7.4.1, in its entirety, shall become null and void, and have no force and effect thereafter, on December 31, 2009. (e) Except as provided herein, no other amendments, deletions or additions are made to the Gilroy City Code." 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 anyone or more sections, subsections, subdivisions, sentences, clauses or phrases be declared unconstitutional. PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF GILROY this 15th day of October, 2007, by the following vote: AYES: COUNCILMEMBERS: ARELLANO, BRACCO, CORREA, VALIQUETTE, VELASCO, and PINHEIRO GARTMAN NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: NONE / APPROVED ~~ be Pinheiro, Mayor -3- ILLEZOTTEI729570.4 no 11 1\7 J\4 7nl;nll4 Ordinance No. 2007-17 ZERO FEE AREA MAP EXHIBIT A -4- ILLEZOTTEI729570.4 n011 n7 J\4 7nl;nll4 Ordinance No. 2007-17 EXHIBI~ A ~ k~J-' tLUm [WJ~r-~---- I DJJI DJJI __ _ DJJI DJJI ~ ! 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'i:l ~~ N ~ '" ~ .~ ;;;J I:: -~ .S! ~ .... ..... = 15 ~ Q) 'tl'i:l .,.... oll"""'l ~ '" ~ Q) ~~ ~ I, SHA WNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the attached Ordinance No. 2007-17 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 15th day of October, 2007, 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 25th day of October, 2007. Ity Clerk) of the City of Gilroy (Seal)