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2009-54 Development Impact Fee Reduction ORDINANCE NO. 2009-54 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MENIFEE AMENDING ORDINANCE NO. 2009-43 TO EXTEND THE DEVELOPMENT IMPACT FEE REDUCTION TO AREA PLAN 16 WITHIN THE CITY OF MENIFEE The City Council of the City of Menifee does ordain as follows: SECTION 1. The City Council finds as follows: 1. Menifee incorporated on October 1, 2008, and at that time adopted all County of Riverside ordinances, including Ordinance No 659 setting Development Impact Fees (DIF); subsequently, the adoption of such ordinances was extended to February, 2010. 2. Ordinance No. 659 identified Area Plans 16 and 17 which cover the area now within the City of Menifee. 3. Section 2 of Ordinance No. 659 makes a variety of findings regarding such DIF which the City Council hereby readopts in adopting this ordinance. 4. Since the DIF were determined for the areas within the City of Menifee, the economy of the state, nation and world has entered a serious recession, leading to stalled or cancelled residential and commercial development, unemployment, foreclosures and general economic malaise. 5. After investigation and discussion, the Menifee Strike Force has determined that a reduction of such fees for certain public purposes in Area 17 within the City of Menifee may stimulate development specifically within the City by reducing the cost thereof. 6. After further discussion, the City now has determined that such fee reduction should also extend to that portion of Area 16 located within the City; 7. A reduction of such fees does not change the nexus and proportionality of the fees as the need for the infrastructure funded by the fees has been reduced, rather than removed, and that such costs will be absorbed into future fee payments. 8. This action shall be exempt from CEQA pursuant to CEQA Guideline 15061(b) (3) because there is no possibility that the adoption of this ordinance shall have an effect of the environment. SECTION 2. Section 7, "Development Impact Fee," of Ordinance No. 659 is amended to read as follows: "Notwithstanding the fees set out below or any provision of this Ordinance to the contrary, for any development located within the boundaries of the City of Menifee (in Area Plan 16 and 17), on and after the effective date of this Ordinance the fees as set out in sections (b) through (i) and (k) are reduced by sixty-five percent (65 %) and the hourly rates used to calculate deposits shall be reduced by twenty percent (20%). Such Ordinance No. 2009-54 Development Impact Fees Area 16 reduction shall remain in place until June 30, 2010 or until 500 permits have been issued at this reduced rate, whichever comes first. SECTION 3. This ordinance shall take effect 60 days from the date of its adoption. PASSED, APPROVED AND ADOPTED THIS DAY OF , 2009 by the following vote: J AYES: NOES: ABSENT: ABSTAIN: Wallace W. Edgerton, Mayor ATTEST: 4&Mar Kathy Bennett, City Clerk Approved as to form: 6 . Y)qg -tp/u Elizabeth Marlyn, City Attorney 2