HomeMy WebLinkAboutReso 2008-058 - Construction Incentives
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RESOLUTION NO. 2008 - 58
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
REDDING ESTABLISHING INCENTIVES TO STIMULATE
RESIDENTIAL CONSTRUCTION ACTIVITY
WHEREAS, on May 6, 2008, the City Council considered a report issued by the City Manager
detailing the significant decrease in development activity in the City of Redding (and throughout the State of
California) due to the weak economy; and
WHEREAS, the decrease in residential construction activity has resulted in the loss of hundreds of
construction-related jobs in the local economy; and
WHEREAS, at the public meeting on May 6,2008, the City Council also considered several concepts
proposed by the City Manager to create incentives to stimulate residential construction activity; and
WHEREAS, believing it to be in the best interests of the citizens of the City of Redding, the City
Council directed the City Manager to return to the City Council with a specific proposal for implementing the
concepts presented at the May 6, 2008, meeting;
NOW, THEREFORE, IT IS RESOLVED by the City Council ofthe City of Redding that the City
of Redding hereby establishes the following short-term incentives as a means to stimulate residential
construction activity in the City of Redding:
1. Reduction in Building Permit Processing Fees
The cost of certain building fees for remodels, additions, and utility-system upgrades in existing homes, as
well as permits for new single-family homes, will be reduced by 50 percent from the current fee schedule for
the period of time from July I, 2008, through October 31, 2008. The reduction will be applied to all
residential construction permits that are issued during the incentive "window." The work authorized by the
permit would need to be completed prior to the expiration of the permit, which would include any permit
extensions that are allowed by the Building Code. If the work is not completed, the balance of fees shall be
due and payable. The fees that will be reduced during this period will include the building permit, electric
permit, plumbing permit, mechanical permit, manufactured home permit, and plan check fees.
2. Deferral of Impact Fee Collections for New Homes
The City shall defer the collection of development impact fees for new residential unit construction until a
point just prior to final inspection. The permittee will enter into a legally binding agreement with the City
prior to issuance of the building permit, and the agreement will establish the deferral as a financial obligation
that must be satisfied prior to the granting of a final inspection. Following the final inspection, if all
requirements are met and the fees are paid, a certificate of occupancy will be provided to the homebuilder.
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This incentive shall apply to residential permits issued for new homes between July 1,2008, and October 31,
2008. Construction ofthe home would need to be started and completed prior to the expiration of the building
permit, including any extensions that are allowed by the Building Code. Payment of the fees would be due
immediately upon expiration of a permit if construction of the home has commenced but the work has not
been completed. The fees which are eligible for deferral are the park improvement fee, traffic impact fee, fire
facilities fee, and water and wastewater impact fees.
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3. Electric Utility Rebates
Increases in rebates of up to 50 percent shall be provided as a part of the Redding Electric Utility's (REV)
Rebate Program for installation of new or replacement residential air conditioners and installation of
residential insulation. The permit for the work would have to be issued between July 1,2008, and October 3 I,
2008, and completed within the term of the permit in order to qualifY for the rebate.
4. Homeowner Rehabilitation Loans
The interest rate for the City of Redding's Homeowner Rehabilitation Loan Program will be reduced from
5 percent to 0 percent for loans where a complete loan application is received between July 1, 2008, and
October 31, 2008.
S. Annual Traffic Impact Fee Inflation Adjustment
The scheduled inflation adjustment to the traffic impact fees scheduled for July 2008 will be delayed until
January 2009. The adjustment in January 2009 would reflect the change in the Construction Cost Index
(CCI) over an 18-month period (as opposed to the typical12-month period).
I HEREBY CERTIFY that the foregoing resolution was introduced, read, and adopted at a regular
meeting of the City Council on the 3rd day of June, 2008, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
Bosetti, Dickerson, Jones, Murray, and Stegall
None
None
None
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TEGALL, Mayo
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ATTEST: ! ".
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CONNIE STROH~1..\" ~ City Clerk
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FORM APPROVED: