City Celebrates First Development to Be Built UtilizingInnovative Building Incentive Stimulus Program
Lancaster, CA. February 26, 2010 – The City of Lancaster today gathered with representatives of KB Home in west Lancaster to celebrate the first development constructed utilizing the City’s new Building Incentive Stimulus Program (BISP). The BISP was established in an effort to create jobs and encourage developers to continue building in Lancaster in spite of the current economic situation. “Our goal with this innovative program is two-fold: to stimulate the local job market by providing new employment opportunities to the 17% of Antelope Valley residents who are currently unemployed,
and to promote further development so that Lancaster has the resources its businesses and residents need when the next wave of economic prosperity comes,” said MayorR. Rex Parris. “Developments such as this one are accomplishing precisely that.”
The BISP provides a 30% reduction in development impact fees for development within the Lancaster Boulevard Downtown (LBD) District and a 20% reduction in fees for development outside this district. The incentive is valid through Dec. 31st, 2010.
“The strength of our community depends on the financial health of individuals and families,” added Parris. “If we ensure that existing jobs in our area are sustained and new jobs are added, our region’s economy will prosper. More importantly, homeownership will increase, our neighborhoods will continue to become safer and stronger, and the overall quality of life in our community will improve.”
“Each local job we save or create doesn’t just represent an individual, but an
entire Lancaster family,” added Vice Mayor Ron Smith. “The jobs involved with this
development are of vital importance because they represent the well-being of many people in our community.”
The new KB Home development will create 80 new single-family residences in west Lancaster. KB Home officials expect the development to generate 10-20 new jobs in the region, in addition to assisting in the sustenance of jobs in more than 40 different trades which are required to complete such a housing development.
“This program has allowed KB Home to open the door on some new land deals that weren’t quite feasible prior to this new stimulus plan,” said Tom DiPrima, Executive Vice President for KB Home in Southern California. “We’re grateful to the City for being so proactive and trying to find new ways to bring in jobs and construction. Governor Schwarzenegger has stated that the primary priorities for the State of California are job creation and housing. Through this program, the City of Lancaster is accomplishing both of these goals.”
Prior to passage of the BISP, development impact fees were approximately $11,412 for a new, single-family residence. From now through Dec. 31st, fees within the LBD District have been reduced by 30%, for a savings of approximately $3,424 per structure. The LBD District encompasses the area between 10th Street West, Sierra Highway, Kettering Street, Milling Street and Newgrove Street. For development in Lancaster outside this district, including the KB Home development, fees have been reduced by 20%, for a savings of approximately $2,283 per structure.
“Because of the slowdown in the economy and the difficulty in obtaining credit resulting from the recession, many businesses have been forced to reassess the feasibility of their projects,” added Smith. “We have no intention of allowing progress in Lancaster to grind to a halt because of these difficult times. This is why we have taken such an aggressive stance in terms of stimulating both jobs and our local economy.”
Construction on the new KB Home development is scheduled to be completed by mid-2011.
To take advantage of the BISP, all fees must be paid at the time the permit is issued. Developers may prepay development impact fees for an entire project at the reduced rates, provided all impact fees are paid when the first permit is issued, and a minimum of 10% of the buildings are completed within 12 months of approval by the City Council.
Mayor R. Rex Parris 