Ordinance 2011-03
ORDINANCE NO. 2011-03
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, 2013, AND AMENDING
SECTION 7.4.
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
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Ordinance No. 2011-03
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
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 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 Monter? Street, to the blocks between 2nd
and 10th and on Eigleberry Street between 3r 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.
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Ordinance No. 2011-03
(c) For the time period between the effective date of this ordinance and December
31,2013, 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, 2012 and a building permit has been issued within one year after
architectural and site approval, provided said date is on or before December 31,
2013. 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.
(d) This Section 7.4.1, in its entirety, shall become null and void, and have no force
and effect thereafter, on December 31, 2013.
(e) Except as provided herein, no other amendments, deletions or additions are made
to the Gilroy City Code."
SECTION II
Chapter 7, of the Gilroy City Code entitled "Cost Comparison System for Fee and
Service Charge Revenue" Section 7.4 is hereby amended by adding a final paragraph to read as
follows:
"All fees and charges set pursuant to this Section shall take effect after the City
Council has duly passed, by Resolution, the City of Gilroy's "Comprehensive Fee
Schedule." Said Comprehensive Fee Schedule will be adopted by the City
Council after a public hearing. The City Clerk shall cause notice to be provided as
set out in Government Code section 6062.a."
SECTION III
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.
III
III
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Ordinance No. 2011-03
SECTION IV
This Ordinance shall be in full force and effect thirty (30) days after the date of its passage and
adoption.
PASSED AND ADOPTED this 7th day of March, 2011, by the following vote:
AYES:
COUNCILMEMBERS:
ARELLANO, BRACCO, DILLON,
LEROE-MUNOZ, TUCKER
NONE
NOES:
COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
WOODWARD and PINHEIRO
APPROVED
/'
~kt--r;;:Ju
Cat ucker, Mayor Pro Tempore
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Ordinance No. 2011-03
ZERO FEE AREA MAP
EXHIBIT A
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Ordinance No. 2011-03
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I, SHA WNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the
attached Ordinance No. 2011-03 is an original ordinance, or 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 7th day of March, 20 II, at which meeting a quorum was present.
IN WIlNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of
the City of Gilroy this 9th day of March, 2011.
Snawna Freels, CMC
City Clerk of the City of Gilroy
(Seal)