Stockton trying new economic incentive program
February 15, 2017
• Will defer impact fees on non-residential projects
• “This program will be useful to those projects where significant development fees apply”
Stockton is deferring upfront development costs for non-residential projects. It will still collect the money, but not at the beginning of a project.
The city says it thinks this will encourage develops that will mean new revenue, new businesses, and create additional jobs throughout the city.
The Stockton Economic Development Department says that rather than paying development impact fees at the time a building permit is issued, new non-residential construction projects may defer certain eligible fees, excluding certain “pass-through” fees, until construction has been completed and the building is ready to occupy.
Eligible fees can be deferred until a certificate of occupancy is issued, whether temporary or final, or for two years from the first building permit issuance, whichever is shorter.
“This program will be useful to those projects where significant development fees apply,” says Economic Development Director Micah Runner. “By deferring some fees until occupancy, a project can leverage those funds during the construction stage, which could be very beneficial for timely project completion.”
The program will become effective March 25, and is scheduled to remain in effect for a period of five years.
If a project is determined to be eligible, a request for short-term deferral of eligible fees for new non-residential construction projects must be submitted in writing to the Economic Development Department for review. An agreement must be executed between the applicant and the city, prior to the issuance of the building permit.