Elk Grove to Consider Extending Developer Fee Deferral Program

July 3, 2014 | At next Wednesday's meeting, the Elk Grove City Council will consider extending a popular fee deferral program for...


July 3, 2014 |

At next Wednesday's meeting, the Elk Grove City Council will consider extending a popular fee deferral program for real estate developers.

The program was initiated in May, 2008  and allowed market-rate residential and non-residential fee deferrals on certain impact fees. Since that time, the program has issued over 250 deferrals totaling about $6 million.

The program was initiated to help stimulate Elk Grove real estate development that was affected by the housing and credit market collapse that led to the Great Recession. The program has been extended twice with its most recent expiration on June 30. 

To date, the city has collected $4.6 million in the deferrals with the balance of the payments not yet entering the repayment phase. The staff report for the request says the city has lost the opportunity to earn $67,000 in interest had the fees already been collected and incurred additional labor costs as no fees were charged for staff administrative time. 

Recent projects that have received referrals included the new Mazda car dealership, the Laguna Springs Corporate Center and The Falls Event Center. Next week's meeting starts at 6 p.m.    



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5 comments

A Fleeced Taxpayer said...

Well, the dead Falls Event Center (Promenade Junior) is chain-linked off and is overgrown with weeds and dead trees. Kiss that repayment goodbye!

Anonymous said...

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I thought the recession was over.

Why another give away to the developers in the form of interest free development fee deferrals?


Another blatant case of corporate welfare!

Who is watching out for the taxpayer's interests?


A City by the developers, of the developers and FOR the developers!


.

Can't think of another fart name said...

You right @Anon 15:31. That is why we need JeffO to run for city council, as Lyn has suggested. He can watch out for the taxpayer's interests.

Show me a filter cigarette that really delivers taste and I'll eat my hat! said...

This program needs to be killed. It may have made sense during the downturn, but do we really need to be giving out what is effectively an interest free loan? How much you wanna bet the vote will be 5-0 to continue it for another couple years?

Anonymous said...

Why does the city bother us with all this jibberish? It would be such a time saver if instead they would just publish their little "stamped & approved" items monthly and not waste all our time on something we have no say in. That's not even mentioning the cities costs in opening THEIR house to an empty room. Illegal?? Just pay the fine..Developers will most likely help you with that.

They must learn to be more conservative and face reality...the community doesn't care what they do!!!

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