The City of Roseville offers a fee deferral program through the Economic Development Department as an incentive to encourage development.  The Winding Creek Apartments project is requesting a fee deferral of certain City controlled impact fees.  The fee deferral requires City Council approval and that development impact fees are paid for prior to building permit occupancy or the issuance of a final permit, as applicable to each permit.   

The Economic Development Department received the attached request from Anthem United Homes Construction, LP. on July 24, 2023, requesting approval of a fee deferral for the Winding Creek Apartment complex (“Complex”).  The Complex is located within the Creekview Specific Plan area at 3338 Blue Oaks Boulevard.   As shown on the attached plans, the Complex proposes construction of 216 residential units within nine (9) buildings plus a club house, pool, site parking and play areas. All units will be rented at market rates.

A fee estimate has been prepared for the Complex based on the fees for Fiscal Year 2023-24. Only City controlled impact fees are eligible for deferral. The fee deferral types and amounts are identified below:

The list of fees eligible for deferral has been vetted by the applicable City departments and only those determined to have no impact to the budget have been included above. As shown above, the current total eligible fee deferral is $3,347,293. The total amount of deferrable fees could change if building permits are pulled outside of FY2023-24, however, the list of deferrable fees would not change following Council action on this item.

Pursuant to Roseville Municipal Code (RMC) Section 4.04.040, all non-residential fee deferrals greater than $100,000 dollars are required to be approved by the City Council.  The typical construction and inspection timeframe for apartment complexes is 12-24 months.  In an effort to cover lost interest resulting from the City fee deferral there is an interest charge of 1.35% that will be paid upon building permit occupancy or the issuance of a final permit.  The RMC additionally identifies an administrative processing fee of $924.90 to be charged per building permit to cover staff's time of processing requests.

The requested deferral will not result in a loss of impact fees nor earned interest income. The development impact fees are required to be paid prior to issuance of building permit occupancy/final permit.   To ensure that the City will not have any loss of interest income, the RMC requires that interest be charged on monies deferred.  Specifically, the City's Finance Department identified that the City's ten-year average pooled interest rate is approximately 1.35%.  Therefore, interest at a rate of 1.35% will be charged on the monies deferred to cover the City's cost of loss of interest income on the fee deferral.  Additionally, the RMC identifies an administrative processing fee of $924.90 to be charged to each building permit.  

The City's fee deferral program is an important economic development tool that facilitates new development that may not otherwise be financially feasible without this program.  As a result, this program has the potential to increase impact fees and investment that directly increase property values that may not otherwise occur if this program was not available. Construction of this housing development will create approximately 65-150 temporary construction jobs and approximately 4-10 permanent full and/or part time jobs.  

The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15061(c)(3) and §15378.  This fee deferral meets the above criteria and is not subject to CEQA.  No additional environmental review is required. 

Goal D - Enhance economic vitality

Goal F - Invest in well-planned infrastructure and growth

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Dominick Casey, City Manager