2025-05-06 CC Agenda Packet - ITEM C14 - Building Permit Fee and Development Impact Fee Deferral ProgramCITY OF
ELSEGUNDO
Building Permit Fee and
Development Impact Fee
Deferral Program
City Council Meeting
May 6, 2025
Current Economic Conditions
• Economic Uncertainty
• High lending costs
• Inflation and rising construction costs
• Supply chain disruptions
• Regulatory and Tax Burdens
ELSEGUNDO
5/6/2025 City of El Segundo 1 350 Main St. El Segundo, CA 90245 2
Background
• Development Impact Fee (DIF) Implementation -approved by
City Council on June 21, 2022
• January 2025 - amendment to Cultural Development Program
to allow deferred fees.
• February 2025 — amendment to Development Impact Fee
payment to permit deferred payment for housing projects.
• February 2025 — City Council authorization to proceed with
building permit fee deferral program.
ELSECUNDO
5/6/2025 City of El Segundo 1 350 Main St. El Segundo, CA 90245 3
Building Permit Fees
• One-time charges for new
developments or tenant
improvements, covering;
• Staff time for permit review,
processing, inspections;
• Maintenance of infrastructure
(e.g., online systems, land use
regulations). Includes state -
mandated fees for seismic
safety and ADA compliance.
Development Impact Fees (DIFs�
• One-time charges designed
to fund infrastructure and
service improvements to
address increased demand
from new developments (e.g.,
streets, sewer, parks, public
safety) .
5/6/2025 City of El Segundo 1 350 Main St. El Segundo, CA 90245 4
Building Permit Fees
• One-time charges for new
developments or tenant
improvements, covering;
• Staff time for permit review,
processing, inspections;
• Maintenance of infrastructure
(e.g., online systems, land use
regulations). Includes state -
mandated fees for seismic
safety and ADA compliance.
Development Impact Fees (DIFs)
• One-time charges designed
to fund infrastructure and
service improvements to
address increased demand
from new developments (e.g.,
streets, sewer, parks, public
safety).
5/6/2025 City of El Segundo 1 350 Main St. El Segundo, CA 90245 5
Current Fee Structure
ESMC15-32-6 stipulates that all DIFs be collected prior to
approval of a tentative or final subdivision map, parcel map,
grading permit, building permit, final inspection, or certificate of
occupancy.
No established policy or resolution differentiating when other
building permit fees can be collected.
ELSEGUNDO
5/6/2025 City of El Segundo 1 350 Main St. El Segundo, CA 90245 6
Dditications to the L
D. The director of community development or the director of public works will collect
impact fees at the following times, except as otherwise specified in Government
Code section 66007:
1. Unless authorized under separate agreement or condition of approval, impact
fees for any oenresiden development will be collected at the time the City
issues a ^Faring peFn , building permit,
eccepanGy; v�hinheveF essefs fFsf
2. Under separate aareement or condition of approval. Ffees for residential
development will be collected at the time the City approves a final inspection or
issues a certificate of occupancy for each dwelling unit in the development.
3. Under separate agreement or condition of approval. fees for non-residential
development will be collected at the time the City approves a final inspection or
issues a certificate of occupancy.
4. Notwithstanding (1),-aftd-(2), and 3 above, utility service connection fees will be
collected at the time an application for service is received.
oditications to the F
SECTION 2: Actions. The City Council:
A. Authorizes the Community Development Director to execute a Deferred Building
Permit and Development Impact Fee Agreement, in a form approved by the City
Attorney or designee in accordance with the Program; and
B. Authorizes the deferral of building permit issuance fees that are not directly tied
to immediate City services or staff processing time and development impact fees
that are typically associated with future ongoing post -construction costs, to be
paid prior to final inspection or the issuance of a Certificate of Occupancy; and
C. Updates all applicable City policies and procedures to reflect the revised fee
collection deadlines as set forth in the associated ordinance and this Resolution.
Reasons to Offer Deferred Fees
Support and
encourage
development
Improve their cash
flow during the
construction phase
City delivers
solution -oriented
customer service
Attract and facilitate
new businesses
ei.Secr�ua
5/6/2025 City of El Segundo 1 350 Main St. El Segundo, CA 90245 9
CITY OF
ELSE GUNDO
Questions?