HomeMy WebLinkAboutCouncil Policy No. 300-10 - Development Agreement Fees
CITY OF LAKE ELSINORE, CALIFORNIA
COUNCIL POLICY MANUAL
SUBJECT: Development Agreement Fees Policy No. 300-10
Effective Date: 7/13/04
Revised: 9/12/06
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BACKGROUND
State law and the Lake Elsinore Municipal Code permit the City to enter into
Development Agreements to vest certain development rights.
PURPOSE
The purpose of this Policy is to guide the imposition of fees to be paid in consideration of
the vested rights provided by development agreements and provide guidelines on how the
City will use such development agreement fees.
POLICY
Pursuant to California Government Code Sections 65864-65869.5 and Lake Elsinore
Municipal Code Chapter 19.12, the City enters into development agreements with
developers to vest development rights and to formalize financial and functional elements
of a development. LEMC Section 19.12.170 requires that property owners entering into
development agreements with the City must pay a fee in consideration for the benefits
and privileges accruing from the development agreement. The amount of the fee is a
negotiated term. Fees must be used for public purposes and facilities to the benefit of the
public and the residents of the City as a whole.
In considering a property owner’s request for a development agreement, the City Council
may rely on the general provisions of LEMC Section 19.12.170 or it may designate
specific projects and/or uses of the development agreement fees paid by the property
owner under the terms of the development agreement.
Scope
The development agreement fee policy applies to any development agreement fees
whether restricted or unrestricted by the development agreement.
CITY OF LAKE ELSINORE, CALIFORNIA
COUNCIL POLICY MANUAL
SUBJECT: Development Agreement Fees Policy No. 300-10
Page 2 of 2
Use of Developer Agreement Fees
Restricted Development Agreement Fees
Restricted development agreement fees must be used according to the contractual
terms of the development agreement. Staff will propose the use of those funds
through the annual budget process or anytime during the year as the need to spend
the restricted funds arise.
Unrestricted Development Agreement Fees
The use of unrestricted development agreement fees shall be recommended by staff
or City Council in a manner consistent with LEMC Section 19.12.170 as part of the
City’s annual budget process. The expenditure of such unrestricted funds shall be
determined by a majority vote of City Council. It shall be the policy of the City that
development agreement fees not be used for routine on-going operating costs.
Reporting
The current and projected development agreement fees shall be reported to City Council
as part of the annual operating and CIP budget study sessions and at adoption, at the Mid-
year budget review study session and periodically during the year on revenue budget
monitoring reports.
HISTORY
Approved by Minute Action 7/13/04
Revised by Resolution No. 2006-152 9/12/06