Purpose

The purpose of the City's fee deferral policy is to provide an incentive, on a case-by-case basis, to reduce the up-front cost of development for businesses that foster beneficial economic development in Escondido.

Who Is Eligible

To be eligible, you must have a business that is either expanding it's floor area or constructing a new building within the Escondido city limits. In addition, you must demonstrate that the business is of significant benefit to the local economy. For the purpose of this policy, a significant benefit is defined as an employer that creates local jobs and/or produces revenues greater than the cost of providing city services.

Businesses locating in targeted areas or those businesses providing a significant community benefit other than jobs or revenue may also be candidates for a fee deferral at the discretion of the Staff Economic Development Committee. Residential projects are ineligible for fee deferral. However, mixed-use projects meeting the eligibility criteria could be considered.

The Staff Economic Development Committee will make the final decision as to whether a fee deferral is an appropriate incentive for a particular business, based on its benefit to Escondido and its impact on city services and infrastructure.

How To Apply

1. Complete the fee deferral application and return it to the Economic Development Manager in the City Manager's Office.
2. Attach a current preliminary title report (no more than 6 months old) for the property on which the construction will take place; this is to verify property ownership. If the property is leased, a copy of the lease will be required before a fee deferral is granted.
3. At a minimum, provide floor plans for the project. These plans are needed to calculate a fee estimate. Final fees cannot be calculated until construction plans are submitted to the Building Department for permits.

Fees Eligible For Deferral Consideration, Minimum & Maximum Amounts

1. Connection fees: sewer and water and Drainage Facilities fees.
2. Development fees: public facility, park, and traffic.
3. Generally, to be eligible for consideration the project's connection and/or development fees must be $50,000 or more.

Note:

1. Project processing, permit and inspection fees, and pass-through fees, are not eligible for deferral.
2. The Public Art fee may be deferred by a separate bond process.
3. Final project fees are those fees in effect at the time of permit issuance; if fees should increase or decrease during the deferral period, no adjustment will be made.
4. Determination of which fees will be deferred will be made on a case-by-case basis by the Staff Economic Development Committee.

Fee Deferral Period

Fees may be deferred until construction is complete, but fees must be paid before a certificate of occupancy is issued. In certain cases, fees may be deferred for a longer period of time at the discretion of the Staff Economic Development Committee. But in any case, the deferral period is not to exceed a period of three (3) years. Fees may be paid sooner than the time period agreed upon, without penalty.

Interest, Security & Written Agreement

1. All deferred fees will have an interest rate not less than the city's investment fund rate.
2. Deferred fees will be secured by a letter of credit. In certain cases the Staff Economic Development Committee may consider other forms of financial security.

Failure To Pay

In the event that deferred fees are not paid on or before the time agreed upon or the business leaves Escondido, the fees will be due and payable in full, less any prior payments. If the fees are not paid as specified, steps will be taken to collect against the security posted.

Processing

When an application for fee deferral is received, the request will be reviewed by the Staff Economic Development Committee to determine eligibility. They will also make a determination as to which connection and development fees may be deferred, based on the project's impacts to city services and infrastructure. After receipt of a complete application, a meeting with the applicant may be required to obtain more detail about the project before a decision can be made.

The applicant will be advised within ten (10) working days, after sufficient information has been provided, as to whether their project appears to be eligible. The actual fee deferral will not take place until the project has received the necessary approvals, reviews, and plan checks.

The project must obtain building permits within one (1) year of the Staff Economic Development Committee's determination of eligibility for fee deferral. The actual fees to be paid are calculated based on the rates in effect at the time permits are obtained. No adjustments will be made after the final fees are calculated and permits are issued, regardless if fees have increased or decreased. However, the amount of the fees may change from any fee estimates prepared earlier for discussion purposes. If permits have not been obtained at the end of one (1) year, the applicant may request an extension of time in writing. The Staff Economic Development Committee will determine if an extension of time is to be granted.

For further information, contact:

Jo Ann Case, Economic Development Manager
Economic Development Division
201 North Broadway
Escondido, CA 92025

Phone (760) 839-4563
Fax (760) 739-7004