Chapter 13
ENTERPRISE ZONE
Sections:
Article 1. Fees
Article 1. Fees
3-13.101 Purpose.
Applicants proposing qualifying projects (as defined) within the Watsonville Enterprise Zone may, subject to the provisions of this article, either defer for a period of up to three (3) years, or finance for a period not exceeding five (5) years the development fees, identified in Section 3-13.104.
(§ 1, Ord. 1024-97 C-M., eff. May 8, 1997)
3-13.102 Definitions.
For the purposes of this chapter, unless otherwise apparent from the context, certain words and phrases are defined as follows:
(a) “Development fees” shall mean in-lieu fees parks and recreation facilities (Section 3-6.504 of the Watsonville Municipal Code); affordable housing in-lieu fees (Section 14-46.070 of the Watsonville Municipal Code); city-wide traffic impact fees (Ordinance 986-95 (C-M)); special district traffic impact fees (Ordinance Numbers 1005-96 (C-M), 784-88 (C-M), and 653-84 (C-M)); fire impact fee (Ordinance No. 803-89 (C-M)); and public facilities impact fees (Ordinance No. 859-91 (C-M)); Sewer and Water Connection and Construction Fees (Resolution No. 214-96 (C-M)); or Storm Drain Impact and Sewer Connection Fees (Resolution No. 315-91 (C-M) as amended by 318-92 (C-M)).
(b) “Enterprise Zone” shall mean the area within the Watsonville Enterprise Zone as approved by the California Trade and Commerce Agency, and as amended from time to time.
(c) “Project” shall mean any work undertaken for the purpose of development involving the issuance of a permit for construction or reconstruction.
(§ 1, Ord. 1024-97 C-M., eff. May 8, 1997)
3-13.103 Requirements.
Only projects which meet all the following tests shall qualify for deferral or financing of fees under this article.
(a) The project creates at least five permanent, full-time equivalent new jobs within the Enterprise Zone; and
(b) The total development fees to be financed or deferred are Twenty-Five Thousand and no/100ths ($25,000.00) Dollars or more; and
(c) The applicant provides a letter of credit, escrowed, unencumbered readily available funds, and/or adequate security for repayment of the development fees pursuant to a repayment agreement acceptable to the Administrative Services Director of the City of Watsonville.
(§ 1, Ord. 1024-97 C-M., eff. May 8, 1997)
3-13.104 Terms.
Payments shall be made monthly to the Finance Department of the City of Watsonville, due on the first day of the month and delinquent if not paid by the fifth day of the month. A late payment penalty of ten (10) percent of the installment amount due and unpaid (but not less than ten ($10.00) Dollars will be imposed on each payment received after the fifth day of the month. Interest will accrue on any interest not paid when due at ten (10) percent per annum compounded monthly.
If development fees are financed, the amount financed shall be amortized into equal monthly payments payable over no more than five (5) years, at the prevailing prime interest rate published in the Wall Street Journal as determined on the date a repayment agreement is executed by the Administrative Services Director. If fees are deferred, the fees shall not bear interest, but shall be due and payable no later than the third anniversary of the date a building permit is issued for the project for which the development fees are deferred.
To qualify for deferral or financing of development fees, the repayment agreement must be in a form acceptable to the City Administrative Services Director and signed by the applicant before building permits will be issued. There shall be no retroactive financing or deferral of development fees under this program.
Any repayment agreement shall provide that in the event of default, the City shall be entitled to recover reasonable attorney’s fees and costs as additional damages. If any payment is not received by the fifteenth day of the month it is due, the City may at its option, declare the entire balance due and payable. Thereafter the entire balance shall accrue interest at ten (10) percent per annum, compounded monthly.
The City may initiate appropriate collection action against any applicant who fails to comply with any repayment agreement.
(§ 1, Ord. 1024-97 C-M, eff. May 8, 1997)
3-13.105 Effective date.
The provisions of this chapter shall only be in effect during the time that the City is under State Enterprise Zone designation.
(§ 1, Ord. 1024-97 C-M, eff. May 8, 1997)