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(a) All subsidies of development or construction related fees (Development Fees) must be approved by the City Council. Development Fee subsidies may only be provided for projects undertaken by non-profit organizations when those projects promote a public purpose and provide a minimum level of public benefit, as those terms are defined in this Article. Council must adopt findings, supported by specific facts, that a project for which a Development Fee subsidy is provided will promote a public purpose for the City and provide the minimum level of public benefit.
(b) As proof of their non-profit status, all non-profit organizations requesting Development Fee subsidies must provide a letter of determination by the IRS that the organization is exempt from federal income taxes under the Internal Revenue Code as an organization described in Section 501(c)(3) or other similar provision of the Internal Revenue Code.
(c) Development Fee subsidies may also be provided for public physical plant type construction projects (e.g. street resurfacing, sewers, storm drains, sidewalks, sidewalk repairs, curbs and gutters) undertaken by individuals, non- profit organizations or for-profit organizations at their own expense, in the public right-of-way, and for which no profit will be realized by such organization from the project. Such qualifying projects in the public right-of-way relieve the City of financial responsibility to undertake those public improvements, thereby providing a valuable benefit to the public, far exceeding the cost of the construction-related fees that would be subsidized. Council must adopt findings, supported by specific facts, that a public physical plant type construction project for which a Development Fee subsidy is provided will promote a public purpose for the City and provide a public benefit.
(d) Development Fee subsidies shall be limited to 50 percent of the total eligible fees, and may not exceed a total of $50,000 for any project to be built on a specific site. Further, subsidies shall be limited to one project annually, on a fiscal year basis, for any qualifying organization, including subsidiaries, affiliated or related entities.
(e) In the case of joint-use projects, the Development Fee subsidy shall be prorated for the public purpose portion of the construction project based on square footage or the percentage of the organization’s financial participation in the project, whichever is greater. A joint use project, for purposes of this Article, is a project to construct a structure in which a public purpose use (e.g. health care center, childcare center, senior citizens service center, after school programs) is operating in the structure along side a profit-making venture (e.g. leased office space, storage, mini-market, restaurant).
(f) Development Fee subsidies shall not be granted for fees imposed by the State or other government agencies including, but not limited to, fees set by the State Department of Health Services, State Department of Industrial Relations (Occupational Safety and Health Administration), South Coast Air Quality Management District, and the Los Angeles Unified School District. In addition, Quimby fees and Arts Development fees shall not qualify for subsidies.
(g) The organization receiving the benefit of the Development Fee subsidy must provide written assurances to the City’s satisfaction that the facility will be used for the stated public purpose for the expected useful life of the facility or improvement. If the use of the facility or improvement changes so that it becomes a private or religious use, then the organization must reimburse the City for the fee subsidy, on a pro-rata basis, from the date of the change in use to the end of the useful life of the building, plus applicable interest at the legal rate specified in California Civil Code Section 1916-1 or any successor provision, as amended from time to time.
(h) Organizations receiving the benefit of the Development Fee subsidy for projects that are not public physical plant type projects in the public right-of-way, must certify annually to the Chief Legislative Analyst (under penalty of perjury) for the life of the facility or improvement, that the public benefit required continues to be, and will continue to be provided for the time specified. If at any time the required annual certification is not provided when due and, after reasonable notice to cure that default is not provided, the organization must reimburse the City for the fee subsidy, on a pro-rata basis, from the date of the delinquency to the end of the useful life of the construction project, plus applicable interest at the legal rate specified in California Civil Code Section 1916-1 or any successor provision, as amended from time to time.
(i) Development Fee subsidies shall not be granted to religious organizations other than for fees that apply to construction of facilities or improvements that will be utilized exclusively for secular purposes and that meet all of the requirements of this Article.
(j) Requests for Development Fee subsidies shall be referred to the City Administrative Officer (CAO) for review and recommendation prior to consideration by the City Council. The CAO shall review the request for compliance with this Article and include a determination of the ability of the organization to fund the total cost of the project. Requests for Development Fee subsidies from non- profit organizations with an operating budget of less than $5.0 million will qualify for consideration by the City Council if all applicable requirements of this Article are met. A non-profit organization may be disqualified for consideration for a Development Fee subsidy depending on the organization’s operating budget and capital budgets, or its refusal to provide sufficient financial information to the CAO to make a determination of its financial capability.
(k) Development Fee subsidy requests must be made in writing setting forth all relevant information and demonstrating and documenting compliance with the requirements set forth in this Article. In order to be considered by the City Council, a Development Fee subsidy request must be presented by written motion by a Member of the Council. No Development Fee subsidy shall be provided for any project unless first approved by the City Council.
(l) Each action by the City Council to approve a Development Fee subsidy request must include a transfer of funds in the amount approved from the General City Purposes Fund No. 100/56, Special Fund Fee Subsidy Account, or other available source of funds, to the appropriate department fund and account.
(m) The Chief Legislative Analyst shall track the number and amount of Development Fee subsidies approved by the Council and forward that information to the CAO for inclusion in financial status reports.
(n) The Chief Legislative Analyst shall monitor Development Fee subsidy recipients for annual certification of provision of the public benefit required and to report to the Council periodically, as necessary, when organizations do not comply with the public benefit requirements.
(o) The CAO and the Chief Legislative Analyst shall review the Development Fee Subsidy Policy set forth in this Article annually, in conjunction with the annual budget deliberations, and report to the City Council on the fiscal impact on the General Fund.
(p) Development Fees shall not be waived except as expressly authorized by applicable law. Subsidies of Development Fees shall be provided only in accordance with this Article.
SECTION HISTORY
Article and Section Added by Ord. No. 179,554, Eff. 3-17-08.
(a) For purposes of the Development Fee Subsidy Policy set forth in this Article, a public purpose project is defined as a project that enhances the activities and services routinely provided by governmental entities and that will generally be open and available for use by the public. In order to approve a Development Fee subsidy request, the Council must adopt a finding, supported by specific facts, that the project will promote a public purpose for the City.
(b) For purposes of the Development Fee Subsidy Policy set forth in this Article, with regard to all construction projects, except public right-of-way infrastructure projects, the following minimum level of Public Benefit will be required to promote community and economic development:
(1) Create or retain at least one full-time equivalent, permanent job for each $10,000 of fees subsidized or portion thereof, for the expected useful life of the project for persons who qualify for one or more of the following, effective upon issuance of certificate of occupancy:
A. Aid to Families with Dependent Children (AFDC);
B. Resident of Public and Indian Housing units;
C. Has been homeless for a minimum of 30 days, at the time of hiring;
D. Low-skilled or low and moderate income persons, who will be provided advancement assistance, such as through job training; or
E. Resides within a census tract (or block group) that has at least 40 percent of its residents who are in poverty; and
(2) Provide goods or services annually to low and moderate income residents of an area, in an amount at least ten times the amount of the Development Fees subsidized.
(c) The non-profit organization must maintain adequate records to demonstrate the level of public benefit, based on the above minimum requirements, that is actually achieved following project completion, and copies of those records must be submitted in conjunction with the annual certification to the Chief Legislative Analyst.
SECTION HISTORY
Article and Section Added by Ord. No. 179,554, Eff. 3-17-08.
(a) The City Council may provide funding for Special Event Subsidies in the General City Purposes Fund No. 100/56, Council Fee Subsidy Account, with a sub-account for each Council District and a sub-account for Citywide Special Events, or in another fund and accounts and sub-accounts as it deems appropriate. The amount of funding, if any, to be appropriated in the City budget for Special Event Fee subsidies shall be in the sole discretion of the City Council and Mayor. Special Event Fee subsidies may be provided only for Non-Commercial Special Events that promote a public purpose and provide a public benefit, and shall be limited to an amount up to 50 percent of the total eligible fees and charges, including salary costs, for services, equipment and materials required for the event. Further, subsidies shall be limited to two Non-Commercial Special Events per Sponsor per fiscal year. Provided, however, that this two event limitation shall not apply to recurring Certified Farmers’ Markets Sponsored by a non-profit organization or a local government entity (state, county or district). Provided, further, that block parties shall be eligible for a subsidy of 100 percent of fees and charges, including salary costs, and that recurring Certified Farmers’ Markets Sponsored by a non-profit organization or a local government entity (state, county or district) shall be eligible for a subsidy of up to 100 percent of fees and charges, including salary costs. No Special Event Fee subsidy shall be approved or provided for any Special Event unless it is confirmed that sufficient funding authorized for the subsidy exists in the fund and account or sub-account designated for that purpose in the City Budget.
(b) Requests for Special Event Subsidies shall be made in writing and presented to the affected Council office. Upon request made in writing and supported by the necessary information and documentation to establish that the requirements of this Article are met, including proof of non-profit or charitable status, as applicable, a subsidy may be provided by the affected Council office. As proof of their non-profit status, all non-profit organizations requesting Special Event Fee subsidies must provide a letter of determination by the IRS that the organization is exempt from federal income taxes under the Internal Revenue Code as an organization described in Section 501(c)(3) or other similar provision of the Internal Revenue Code.
(c) If the affected Council office determines that the event qualifies for a fee subsidy and that there exists sufficient funding authorized for that purpose, the Council Member shall notify the City Clerk in writing of that determination, the public purpose promoted and public benefit provided by the event, the total amount of the subsidy approved to be provided for the event, and the City fund and account from which the subsidy is to be provided. The subsidy shall be documented and provided in accordance with the procedures approved by the Council for expenditure of Council District Community Services appropriations and the requirements set forth in this Code. The City Administrative Officer shall report each quarter of the fiscal year or more frequently to the Council on the amounts of the subsidies provided since the last report.
(d) The group or organization receiving the benefit of the Special Event Fee subsidy must provide written assurances to the City’s satisfaction that the event will provide the stated public purpose and public benefit.
(e) Requests for Special Event Fee subsidies shall be referred to the Chief Legislative Analyst (CLA) for review and recommendation prior to a determination by the affected Council office. The CLA shall review the request for compliance with the requirements set forth in this Article and include a determination of the ability of the organization to fund the total cost of the event. Requests for Special Event Fee subsidies from non-profit organizations with an operating budget of less than $5 million will qualify for consideration by the affected Council office if all applicable requirements of this Article are met. A non-profit organization may be disqualified for consideration for a Special Event Fee subsidy depending on the organization’s operating budget, or its refusal to provide sufficient financial information to the CLA to make a determination of its financial capability.
(f) Each action by an affected Council office to approve a Special Event Fee subsidy request must include a finding that there are sufficient funds available in the amount approved from the appropriate sub-account in the General City Purposes Fund No. 100/56, Council Fee Subsidy Account.
(g) The City Clerk shall track the number and amount of Development Fee subsidies approved by the Council and forward that information to the CAO for inclusion in financial status reports.
(h) The CAO and the Chief Legislative Analyst shall review the Special Event Fee Subsidy Policy set forth in this Article annually, in conjunction with the annual budget deliberations, and report to the City Council on the fiscal impact on the General Fund.
(i) Special Event Fees shall not be waived except as expressly authorized by applicable law. Subsidies of Special Event Fees shall be provided only in accordance with this Article.
(j) The City Clerk is authorized to prepare and execute, subject to the prior approval of the City Attorney as to form, all contracts required to accomplish the authorized subsidies of Special Events, including Citywide Special Events.
SECTION HISTORY
Article and Section Added by Ord. No. 180,881, Eff. 10-26-09.
The City Clerk shall administer the Citywide Special Events Sub-account on behalf of the City Council and process the subsidies for events designated as Citywide Special Events by the City Council in the same manner and subject to the same requirements and limitations as set forth in this Article for subsidies to other Special Events, including a determination by the affected Council office of the amount of the subsidy to be provided, up to 50 percent of the total eligible fees and charges, including salary costs, for services, equipment and materials required for each event. The prior written approval of the President of the City Council shall be obtained before processing any payment for a Citywide Special Event. Events included on the list of Citywide Special Events do not thereby automatically qualify for a subsidy. In each instance, the requirements of this Article must be met and the necessary information and documentation must be provided.
SECTION HISTORY
Article and Section Added by Ord. No. 180,881, Eff. 10-26-09.
(a) For purposes of this Article, a Special Event will be deemed to promote a public purpose if it enhances the activities and services routinely provided by governmental entities and if it will be open to the public without charge. In order to approve a Special Event Fee subsidy request, the affected Council office must make a written finding, that the project will promote a public purpose for the City and provide a public benefit.
SECTION HISTORY
Article and Section Added by Ord. No. 180,881, Eff. 10-26-09.
For purposes of this Article, the following terms and phrases shall have the meanings set forth herein:
(a) Athletic Event means an event, not involving as a primary component, Expressive Activity, as that term is defined in Los Angeles Municipal Code Section 103.111(b), in which a group of people collectively engage in a sport or form of physical exercise including, but not limited to, jogging, bicycling, walking, roller skating, or running, upon any public street, sidewalk, alley or other public place, that does not comply with normal and usual traffic regulations and controls.
(b) Certified Farmers’ Market shall have the same meaning as set forth in California Code of Regulations (Title III, Division 3, Chapter 1, Subchapter 4, Article 6.5, Direct Marketing) Section 1392.2(a) as a location approved by the County Agricultural Commissioner of that county where agricultural products are sold by producers or certified producers directly to consumers. A Certified Farmers’ Market may be operated by one or more certified producers, a non-profit organization, or a local government agency (state, county or district). For purposes of this Code, a Certified Farmers’ Market shall mean the direct marketing, as that term is used in the California Code of Regulations, of agricultural products by certified producers to consumers in accordance with the applicable provisions of the California Code of Regulations.
(c) Charitable Event means an event, or a series of related events, involving a subject matter of interest to a significant portion of the residents of the City of Los Angeles all net proceeds of which, if any, will directly benefit a charitable organization that maintains its charitable status pursuant to Internal Revenue Code Section 501(c)(3).
(d) City of Los Angeles Special Event means an event, or series of related events, involving a subject matter of interest to a significant portion of the residents of the City of Los Angeles, that is also an event officially sponsored and produced or managed using City employees and resources by the City of Los Angeles, its operating departments, boards, commissions or bureaus, and which is a Special Event and a Non-Commercial Event.
(e) Citywide Special Event means a Special Event involving a subject matter determined to be of interest to a significant number of City residents from three or more Council Districts, as evidenced from the active support or past attendance at the event of residents from those Council Districts. The Chief Legislative Analyst shall prepare a list of Citywide Special Events anticipated to occur during the ensuing fiscal year and submit it to the City Council for approval. The City Council may add or remove events from the list in its discretion. Events included on the list of Citywide Special Events do not thereby automatically qualify for issuance of a permit for the event. In each instance, a Special Event Permit Application, if applicable, must be filed with the Bureau of Street Services.
(f) Commercial Event means an event that does not qualify as a “non-commercial” event as defined herein.
(g) Community Event means an event, or a series of related events involving a subject matter of interest to a significant portion of the residents of the City of Los Angeles that promotes civic pride in the City or in a local community within the City, that is not a commercial event, all net proceeds of which, if any, will directly benefit either a charitable or non-profit organization. Community Events include Block Parties that meet these requirements.
(h) Non-Commercial Event means a Special Event that is open to the public, or in the case of block parties to all residents living within the block party area, free of charge and without restriction, sponsored and produced by a charitable or non-profit organization, and from which no individual or other entity receives any proceeds, or benefits from those proceeds either directly or indirectly, other than as compensation for goods, equipment or services provided. At such events, advertising, sponsorship, and food and merchandise sales shall be permitted, provided all net proceeds, if any, from such activities are used for the benefit of a non-profit or charitable organization or of the charitable or non-profit sponsoring organization. The Sponsor(s) of Non- commercial events must comply with all legal requirements, including all applicable requirements regarding registering with the Police Commission for charitable solicitations. Non-Commercial Events include, but are not limited to, Charitable Events, Community Events and City of Los Angeles Special Events.
(i) Special Event means an event, or series of related events, of cultural, civic, economic, social, recreational or educational nature, including Athletic Events, Sponsored by an individual or individuals, a non-profit organization or community group, charitable organization or for-profit organization or group, that is: (1) held wholly or partially on property owned or maintained by the City; or (2) held on any other property, and that requires for its successful execution, the partial or complete closure of streets or sidewalks or the provision and coordination of municipal services to a degree over and above the level that the City normally provides. Special Events also include any other organized activity that involves the use of, or has an impact on, public property or facilities or that can reasonably be foreseen to have an impact on, or to require a higher level of, public safety services or other municipal services, including advance planning services, than that normally provided by the City.
(j) Sponsor means the person(s) or entity that assumes or is charged with the responsibility for, as well as the act of, producing or managing a Special Event. The Sponsor may or may not be financially responsible for the event and may or may not be responsible for conducting or carrying out the activities of the event. For purposes of this definition, a person or entity that provides only financial or in-kind support for a Special Event and has no responsibility for producing or managing the event is not a Sponsor. The terms “sponsors”, “sponsored” and similar variations shall be given a meaning consistent with this definition.
SECTION HISTORY
Article and Section Added by Ord. No. 180,881, Eff. 10-26-09.