CFF Defferals
The City of Modesto has established an
incentive policy for deferral of the Capital Facilities Fees.
There are two categories of projects which qualify for this
deferral:
- Category A: Projects, excluding industrial warehouses, where the CFF exceeds $150,000, and where there is a single owner. This may be 1 parcel or a group of contiguous parcels. For industrial warehouses, the conditions are the same except the CFF must exceed $50,000.
- Category B: Projects, excluding industrial warehouses, where the CFF is between $25,000 to $150,000, and where there is a single owner. This may be 1 parcel or a group of contiguous parcels. For industrial warehouses, the conditions are the same except the CFF must b between $25,000 to $50,000.
Other conditions include:
A lien is placed against the property where the project is proposed
An irrevocable letter of credit in an amount sufficient to secure both the prinicipal and the interest of the total CFF is due for the duration of the deferral.
- Category A: 10% of CFF to be paid when building permit is issued with the remaining 90% paid in equal installments over 10 years plus interest
- Category B: 20% of CFF to be paid when building permit is issued with the remaining 80% paid in equal installments over 5 years plus interest
Interest is based on the current prime rate according to the Wall Street Journal
An agreement is completed between the City and the owner setting forth the conditions. This agreement is prepared by the staff of the Business Development Office and the City Attorney’s office. The agreement is signed by all parties and approved by Council. Upon approval of the agreement, the building permit may be issued based on the conditions contained in the agreement.
The Finance Department is responsible for maintaining this financial agreement. The Finance Department staff will set up a payment schedule which they will monitor to ensure proper payment over the life of the loan.
This page was updated on: Wednesday, December 05, 2007 11:25:42 AM |
