Simi Valley : Waiver of Some Business Fees OKd

In an effort to make it easier for businesses to locate in the city, the Simi Valley City Council has tentatively approved a plan to waive some fees it charges commercial development.

Under the program, which will return to the council for final approval after minor changes, new businesses would be given the option of deferring payment of certain fees for 90 days or spreading payments over 24 months.

Fees covered under the program include sanitation and water connection charges and traffic-impact fees.

Mayor Greg Stratton said granting deferrals of those fees would help businesses without causing a shortfall in the city’s general fund, since the payments are routinely held for future improvements rather than day-to-day expenses.

The council in July agreed to defer the sanitation and water service fees of existing businesses that wanted to expand, so Monday’s tentative action merely offers the same benefits to new businesses and allows both new or expanding companies to defer traffic-impact fees.

Stratton said the combined fees could add up to several thousands of dollars for even a small business.

Nancy Bender, executive director of the Simi Valley Chamber of Commerce, praised the council Tuesday. “I think anything that city government can do to make it a little bit easier on businesses when they’re opening their doors is important, “ Bender said. “The cash-flow problem and the high fees (encountered) right when they open their doors are significant.”

Councilman Bill Davis said he saw the deferred payment plan as a boon to local businesses. “What we’re trying to do is build the tax base within the city, by whatever mechanism we can to entice businesses to expand and entice new businesses to come in,” Davis said.