REPORT TO COUNCIL
SUBJECT
Title
Action to Waive Second Reading and Adopt Ordinance No. 2082 amending Chapter 17.35 (Park and Recreational Land) Section 17.35.080 (Procedure) of the Santa Clara City Code to temporarily authorize a deferral of the payment of Park In-Lieu Fees of residential developments to certificate of occupancy or final building inspection, subject to certain conditions and to bring the City Code into compliance with state law.
Report
BACKGROUND
At the November 4, 2025, Council meeting, proposed Ordinance No. 2082 was passed for the purpose of publication. Pursuant to City Charter Sections 808 and 812, a summary of proposed Ordinance No. 2082 was published in the Santa Clara Weekly on November 12, 2025, and copies were posted in three public places.
DISCUSSION
The proposed ordinance will bring the City Code into compliance with state law by clarifying that, when required by law, payment of the parks impact fee will be deferred. It also goes above and beyond state law by allowing projects that do not qualify for a fee deferral under state law that receive a building permit prior to December 31, 2027, to receive approval for a deferral, provided the City Manager finds that the deferral will not negatively affect the City's park expansion efforts. The ability to defer payment of the in-lieu fee terminates if construction of the project does not begin within five years of the date upon which the building permit is issued.
The proposed ordinance also provides that any approved deferral of Park In-Lieu Fees shall require execution of a Fee Deferral Agreement between the property owner or lessee, and the City. The standard form Park In-Lieu Fee Deferral Agreement and Notice of Lien with Power of Sale was approved by Council on November 4, 2025. The City Manager will be authorized to execute the form Fee Deferral Agreement, and modify the agreement as needed for individual projects, subject to the City Attorney's approval.
ENVIRONMENTAL REVIEW
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