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<br />l <br />I <br /> <br />A. John Szerlag <br />January 16,2007 <br />Page 2 <br /> <br />Current Status <br /> <br />With reference to payments of TDR's and bonuses, we currently employ a "Use it or lose it" <br />philosophy unless a developer can show good cause for extending time-frames. Allow me to <br />explain by example. Let's say we have a high-rise condominium project (call it Oui) that <br />generated the following slate of fees: <br /> <br /> Paid at Development Approval Paid at permit <br />Site plan development fee $10,000 - 0 - <br />Bonuses - 0 - $1,155,700 <br />TDR - 0 - $3,749,268 <br />10% ofTDR amount $374,926 (374,926) <br />Building Permit - 0 - $ 650,000 <br />Impact fees - 0 - $ 415,000 <br />Total $384,968 $5,595,042 <br /> <br />The amount to be paid within three days of site plan approval by City Commission is $374,926. <br />The developer in our example has two years from City Council approval to pull a building permit <br />and pay the balance ofTDR's, bonuses and fees. This amount comes to $5,595,042. <br /> <br />Now, if the developer can show "good cause", the City Commission may grant an extension for <br />the developer to remit the balance of bonuses and TDR's. There are a number of reasons for <br />good cause; labor and/or material shortage, litigation, acts of nature. However, economics is not <br />a good cause. Thus a developer cannot get a time extension from the City Commission if the sole <br />argument is predicated on poor market conditions and/or inability to obtain financing. See <br />attached memorandum from City Attorney Hans Ottinot. <br /> <br />So, what options does a developer currently have if economics are the only reason for wanting a <br />time extension? <br /> <br />Using the above example, the developer has two options: walk away from his initial deposit <br />which means that site plan approval expires, or pay the balance of fees due the City. Please <br /> <br />Commission - Policy Voluntary Time Extensions High Rise Cond. D('''-'- "emo <br />25 <br />