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Fee deferral aimed at encouraging investment
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Manteca could make it more enticing to develop new retail and employment centers by modifying a fee deferral program put in place in 2009.

Currently, city-controlled mitigation fees for everything from parks to government facilities could have them deferred up to 10 years in qualified cases providing the city was given first lien against all other encumbrances against the property.

Due to the requirement no developers opted to take advantage of the program. Firms that were looking for some help - although temporary since it still has to be paid - opted to go elsewhere.

Now staff is proposing the Manteca deferral fee program for non-residential construction mirror that of other jurisdictions. City-controlled fees under the proposal would be deferred until the certificate of occupancy is issued.

All other fees the city collects for other agencies such as the school district and county must still be paid when a building permit is used.

It isn’t unusual for the lag time between a permit being issued and a building being ready for occupancy to be six months.

The policy allows the developer to reduce upfront costs by deferring fees until the end of construction. It improves the developer’s money  flow making the project easier to build yet still makes the city whole before the demand for municipal services starts.

The City Council meets at 7 p.m. at the Civic Center, 1001 W. Center St.