Note: Former Ch. 3.40, Development Impact Fees, derived from Ord. 362-05; and Ord. 373-07, was repealed by Ord. 25-536, 8/5/2025.
In order to implement the goals and objectives of the General Plan of the Town and to mitigate the impacts caused by new development within the Town, certain public improvement projects must be or had to be constructed. The Town Council determines that development impact fees are needed to finance these public improvements and to pay for development's fair share of the construction costs of these improvements. In establishing development impact fees, the Town Council shall ensure they comply with all applicable laws, including, but not limited to, the Mitigation Fee Act (Government Code § 66000 et seq.).
(Ord. 25-536, 8/5/2025)
A. 
The Town Council shall impose, amend, or repeal development impact fees by resolution. Such fees shall pay for public facilities reasonably related to the impacts of new development, conversions or expansions of property within the Town.
B. 
After establishing development impact fees, the Town Council shall review them periodically as required by law. At a minimum, this includes the annual reports, five-year findings, and updated nexus studies required by the Mitigation Fee Act (Government Code § 66000 et seq.).
(Ord. 25-536, 8/5/2025)
The revenues raised by development impact fees shall be placed in separate impact fee fund accounts. Such revenues, along with any interest earnings on each separate account, shall be used solely to do the following:
A. 
Pay for the Town's future construction of public facilities to accommodate new development, conversions or expansions;
B. 
Reimburse the Town for public facilities the Town constructed to accommodate future development, conversions or expansions, and which were funded with revenues the Town advanced from other sources; or
C. 
Reimburse developers who have been required or permitted by Section 3.40.050 of this chapter to install public facilities with supplemental size, length or capacity.
(Ord. 25-536, 8/5/2025)
A. 
Development impact fees shall be paid by the legal owner, or the authorized agent of the legal owner, of the property on which new development, conversion, or expansion is to occur. The Town shall collect these fees prior to the issuance of the building or development permit(s) for such development, conversion, or expansion, whichever occurs later, unless payment at a later time is mandated by state law.
B. 
Whether a project constitutes new development, conversion, or expansion of property, the measure of the fee for that project shall be a reasonable estimate of the cost of public facilities attributable to the project. When permitted by law, this estimate may be based on a schedule of generally applicable development impact fees adopted pursuant to the Mitigation Fee Act (Government Code § 66000 et seq.).
C. 
The Public Works Director shall be responsible to calculate the amount of each development impact fee, taking into consideration the requirements of this chapter, any applicable schedule of development impact fees and the impact fee nexus study on which it is based, and any special circumstances.
(Ord. 25-536, 8/5/2025)
A. 
The Town may require or agree, as a condition of approving a subdivision, development permit, or building permit, that the developer of a project construct public facilities needed to address the project's impacts on the Town's infrastructure and services. The Town shall provide a credit to the developer against the impact fee that the Town otherwise would have charged for the project.
B. 
When such construction will ensure efficient and timely completion of public facilities, the Town may require or agree, as a condition of approving a subdivision, development permit, or building permit, that the developer of a project construct public facilities related to the developer's project, but with capacity beyond that needed to address the project's impacts on the Town's infrastructure and services. The Town shall provide a credit to the developer against the impact fee that the Town otherwise would have charged for the project. In addition, the Town shall agree to reimburse the developer for that portion of the cost of any public facility paid by the developer which exceeds the need for the public facility attributable to and reasonably related to the developer's project.
C. 
The Town and a developer may agree for the developer to construct any public facilities unrelated to the developer's project, but which the Town has identified for funding at least partially with development impact fees, in exchange for a credit against the impact fee the developer would otherwise pay for its project. This credit shall not exceed the impact fee the developer would otherwise pay for its project.
D. 
The Public Works Director shall impose the requirements or enter the agreements discussed in this section. If a developer enters into an agreement concerning any of the fees or other requirements discussed in this section, this shall constitute waiver of the appeal rights discussed in Section 3.40.060.
(Ord. 25-536, 8/5/2025)
A. 
If a developer is dissatisfied with fees or other exactions required by the Public Works Director pursuant to Section 3.40.040 or 3.40.050, he or she may appeal to the Town Council for an adjustment to or waiver of any such fee or exaction. This appeal shall be filed with the Town Clerk and shall comply with all requirements for a protest set forth in Government Code Section 66020. The appeal shall be accompanied by payment of a filing fee in an amount to be set by the Town Council. The appellant shall be liable for the Town's actual costs to process and rule on the appeal to the extent such costs exceed the filing fee. As applicable, any such costs in addition to the filing fee may be deducted from any refund found due to the appellant from the Town, or they may be added to the amount found due from the appellant to the Town.
B. 
Except as otherwise required by law, notwithstanding the filing of an appeal under this section, the developer shall pay any fees originally determined by the Town in a timely manner. Such payment shall be deemed a payment under protest pursuant to Government Code Section 66020.
C. 
The Town Council may hear the appeal itself or may appoint a neutral hearing officer to do so. In any event, the Town shall conduct a hearing on the appeal no sooner than 10 days, and no later than 60 days, after the appeal is filed with the Town Clerk. This hearing shall be informal, and the Town Council or hearing officer may consider any evidence relevant to the issues raised by the appeal. The Town Council or hearing officer shall issue a written decision on the appeal within 15 days of the hearing. This written decision shall be final and non-appealable except as provided below in Subdivision E. If the hearing is not held within 60 days after the appeal is filed, or if the Town Council or hearing officer does not issue a written decision within 15 days after the hearing, the appeal shall be deemed denied in full on the last day the Town was required to act.
D. 
The Town Council or hearing officer shall consider at least the following factors in its decision on the appeal:
1. 
The requirements for a development impact fee set forth in the Mitigation Fee Act (Government Code § 66000 et seq.).
2. 
The substance and nature of the appellant's evidence.
3. 
The facts, findings, and conclusions in the Town's nexus study, financing plans, expenditure plans, or other evidence supporting the fee or exaction in question.
E. 
The appeal set forth in this section is an administrative procedure that must be exhausted prior to the initiation of any judicial proceeding concerning the fee or exaction at issue. Any such judicial proceeding shall be filed under Code of Civil Procedure Section 1094.5 by the deadline provided in Government Code Section 66020(d).
(Ord. 25-536, 8/5/2025)
As used in this chapter:
"Building permit"
means the permit required or issued by the Town for the construction, improvement or remodeling of any structure pursuant to the Town's building codes.
"Conversion"
means converting from unusable to usable floor space, or converting the existing use to another use.
"Developer"
means any person who is the owner or authorized agent of an owner of any new development within the Town.
"Expansion"
means new building space is constructed where no structures existed as part of the existing building or an intensification of use within an existing nonresidential structure.
"New development"
means the original construction of residential, commercial, or other nonresidential buildings, or the addition of usable floor space within existing residential or nonresidential buildings, or the construction of new accessory buildings.
(Ord. 25-536, 8/5/2025)
The terms of any development approvals or building permit(s) may be negotiated as part of a development agreement which may require a developer to provide or finance any public projects deemed agreeable to both the developer and the Town. Development constructed under the terms of such a development agreement may be exempted from the payment of any development impact fees.
(Ord. 25-536, 8/5/2025)