Officials widely credit the fee waivers for igniting a
resurgence of development
Gilroy – Developers hoping to build downtown projects without paying thousands of dollars in up-front fees must submit building applications by the end of the year, when the city’s fee-waiver program is set to expire.
Projects involving new construction or external modifications should be submitted two months ahead of the Dec. 31 deadline, officials say, in order to give city planners ample time to review designs.
Officials widely credit the fee waivers, which drastically reduce the up-front costs involved in construction, for igniting a resurgence of development in the downtown area. Typically, developers must pay the city tens of thousands of dollars in “impact fees” to compensate for the increased burden on public safety and other city services resulting from new construction.
Two years ago, city councilmen agreed to waive those fees in an effort to spur renewed interest in the downtown area.
The decision was based on the recommendation of the Downtown Specific Plan Task Force, a group of city staff, developers and local residents crafting new development guidelines for the area.
“When council originally put (the fee waivers) in place it was their intent to include it until the specific plan was approved or until the end of this year,” City Planning Manager Bill Faus said. “It has already served its purpose quite well. We currently have 22 active projects downtown, and nine being discussed.
“What it has done is stimulate activity,” Faus added. “Certainly when you drop permit fees, you’re talking about a significant (savings) for getting projects started. This has jump-started this whole specific plan process.”
The “zero fee” area encompasses all properties zoned Central District Commercial (C2), which includes both sides of Monterey Street from St. Mary’s Church to Tenth Street. The area also covers both sides of Eigleberry Street between Third and Seventh streets.
To qualify for the fee waivers, officials recommend submitting a completed building permit application to the Building Department before the beginning of December.
Any questions regarding the application should be directed to the Building Department at 846-0430; questions on which property or businesses qualify should be directed to the Planning Division at 846-0440.
