PITTSBURG -- The city has taken another step to try to light a fire under the stalled construction industry by delaying the collection of developer fees.
Homebuilders in Pittsburg have been paying fees for such things as transportation projects and water and sewer connections that usually total tens of thousands of dollars at the time they take out construction permits.
Under the plan, developers can defer the payment of fees to the time of the final property inspection or for 12 months after the builder pulls a permit, whichever comes first.
The program will last two years, and the city will charge developers an administration fee of 1 percent of the fee amount.
The City Council approved the change in a 5-0 vote Monday evening.
Developers benefit through lower carrying costs on the project while it is under construction, said assistant city manager Joe Sbranti.
The program is for home developers only and does not apply to commercial or industrial projects.
Planning department fees and fees for schools and fire protection are not included, and developers who owe the city money are excluded.
Pittsburg's decision follows similar steps taken by Contra Costa County, Brentwood, Oakley, Livermore and Pleasanton in the East Bay.
"We've been kicking around the idea for some time, and the timing was right to go ahead and make the change to catch up," Sbranti said.
Former Councilman Michael Kee, who in September was the only council member to vote against a proposal to lower some transportation-related fees for developers, endorsed the proposal before he left office earlier this month.
"It doesn't matter too much as long as we get the money," Kee said. "We're just taking the fees and putting them on the back end instead of the front end."
Pittsburg charges transportation-mitigation fees of $7,123 for construction of a single-family home, as well as fees to bring sewer and water service into the development of $4,330 to $11,250, respectively, per unit.
The deferral also includes fees to pay for roads and public transit.
The city in September reduced those fees from $17,795 to $15,795 for a single-family home and from $10,924 to $9,700 for a unit in a multifamily project, with similar reductions for commercial, office and industrial projects.
East Bay housing starts fell from 10,204 in 2006 to 2,914 in 2009, according to California Building Industry Association figures.
Pittsburg is also petitioning the Contra Costa Local Agency Formation Commission, which decides government boundaries, to allow it to annex 607 acres in the city's southwest hills owned by West Coast Builders, an affiliate of Concord-based A.D. Seeno Construction.
Annexation would smooth the way for construction of homes and infrastructure.
Contact Rick Radin at 925-779-7166.
