3.54.160 Procedure for fee modification or reduction.
A. Any Developer who, because of the nature or type of uses proposed for a Development Project, contends that application of this Fee is unconstitutional or unrelated to mitigation of the impacts of the Development may apply to the City Manager, in writing, for a modification or reduction of the Fee. The application shall state in detail the factual basis for the claim of modification or reduction. The City Manager shall issue a decision within 10 business days of receipt of the application for Fee modification or reduction. The decision of the City Manager may be appealed to the City Council. Unless the requirement for timely filing is waived by the City, the appeal shall be made in writing and filed with the City Clerk not later than 10 business days after issuance of the City Manager’s decision. The appeal shall state in detail the factual basis for the claim of modification or reduction. The City Council shall consider the application at a public hearing on same, notice of which need not be published other than by description on the agenda of the meeting at which the public hearing is held. The City Council shall make reasonable efforts to hold the public hearing within 60 days of the filing of the appeal. The decision of the City Council shall be final. If a reduction or modification is granted, any change in use within the Development Project shall subject the Developer to payment of the Fee for the new use. The procedure provided by this section is additional to any other procedure authorized by law for protesting or challenging the Fee imposed by this chapter.
B. A Development Project which is designated and intended as a temporary use (10 years or less) and which is conducted in facilities which are, by their nature, short-term interim facilities such as a portable or modular building (including mobile homes, trailers, etc.) may qualify for a waiver or reduction, as determined by the City Manager or designee. The City Manager’s or designee’s determination may be appealed to the City Council pursuant to subsection (A) of this section.
C. A deferral of the Fee may be granted on the basis of Developer’s demonstrated economic hardship as determined at the sole discretion of the City Manager or designee, on the condition that the amount deferred bears interest at a fair market rate so as to constitute an approximate value equivalent to a cash payment and that the amount deferred is adequately secured by agreement with the applicant, the terms of which shall be subject to approval of the City Attorney and the City Manager.
D. A deferral of the fee may be granted on the basis that the Development Project offers a significant public benefit as determined at the sole discretion of the City Manager or designee, on the condition that the amount deferred bears interest at a fair market rate so as to constitute an approximate value equivalent to a cash payment and that the amount deferred is adequately secured by agreement with the applicant, the terms of which shall be subject to approval of the City Attorney and the City Manager.
E. At a minimum, deferral agreements pursuant to subsections (C) and (D) of this section shall require the following:
1. The Fee obligation be secured through a promissory note and a recorded lien, deed of trust, or other security instrument acceptable to the City Manager or designee in real property of at least equivalent value to the Fees due pursuant to CVMC 3.54.090, to be located within the City of Chula Vista.
2. The outstanding deferred balance shall become due and payable if the Developer transfers the Development Project property to any other party without the reasonable advance approval of the City Manager or designee and the acceptance of the other party of the obligation to pay the outstanding balance of the deferred Fees as provided herein, including, without limitation, the provision of appropriate security acceptable by the City Manager or designee.
F. Any Developer who proposes the construction of a new hotel/motel, which does not otherwise receive an economic subsidy from the City, may apply to the City for a deferral and/or reduction of the Fee based on the nature of hotel/motel.
1. A deferral pursuant to this section may be granted for a period of up to four years from the certificate of occupancy for the Development Project. The deferral period shall begin upon the issuance of a temporary certificate of occupancy, as applicable. The total amount deferred shall be secured through an agreement between the City and the Developer, the terms of which shall be subject to approval of the City Attorney and the City Manager. At a minimum, the agreement shall require the following:
a. The Fee obligation be secured through a promissory note and a recorded lien, deed of trust, or other security instrument acceptable to the City Manager or designee in real property of at least equivalent value to the Fees due pursuant to CVMC 3.54.090, to be located within the City of Chula Vista.
b. Any sale or transfer of the hotel/motel property shall require the new owner to assume all obligations of the transferring party, including full responsibility for the outstanding deferred balance. The City of Chula Vista shall be provided with notice of the transfer and documentation satisfactory to the City Manager or designee demonstrating that the new owner has fully assumed all obligations of the transferring party. Failure to provide such notice and documentation shall cause the outstanding deferred balance to become due and payable.
c. The City’s final determination of the Fees to be imposed on the hotel/motel will be based on a traffic study to be paid for by the Developer and prepared and submitted for approval by the City’s Director of Development Services within the fourth year of operation of the fully developed hotel/motel. The Fees shall be assessed based upon the rates in effect at the time of payment. Should the Developer fail to submit such traffic study and obtain the City’s approval thereof prior to the expiration of the deferral period, the entire Fee imposed pursuant to this chapter shall be immediately due and payable. (Ord. 3440 § 1, 2018).