Over the last 20 years, the changing fiscal situation in California has steadily undercut the financial capacity of local governments to fund infrastructure. Faced with these changes, many cities have had to adopt a policy of "growth pays its own way," shifting the burden of funding infrastructure expansion onto new development. This funding shift has been accomplished primarily through the adoption of development impact fees.
- As public agencies continue
to increase development impact fees and the scope of
their capital improvement program, there continues to be
a growing overlap between what new development is
conditioned to construct and the improvements outlined
in such capital improvement program. Zimmerman Group
identifies this overlap and assists its clients in
negotiating equitable fee credit agreements with public
agencies, avoiding the developer having to pay "twice"
for an improvement (i.e., constructing the facility and
then paying an impact fee related to the same
Reimbursements - The substantial infrastructure needs in developing areas along with public agencies' inability to timely finance and construct master infrastructure has increased the circumstances in which projects are being conditioned to build oversized facilities. Such conditions should be accompanied by reimbursements for infrastructure costs in excess of the project's related fee obligation. Zimmerman Group assists developers identify, quantify, and obtain such reimbursements in the most timely manner.
Packages - Many public improvements are the subject of agreements that provide for a public agencies acquisition of the facility and/or reimbursement of the facility costs. This is especially common when a project is utilizing a public financing district such as a CFD or assessment district. Zimmerman Group helps developers compile the information required (i.e., public works documentation) to obtain reimbursement as well as make sure maximum reimbursement is received.