The ordinance aims to ensure that vacant commercial properties are properly maintained and secured, while also encouraging reinvestment and occupancy. Photo by pexels-pixabay

CITRUS HEIGHTS, CA (MPG) - The City of Citrus Heights addressed the growing number of vacant commercial buildings in the city by introducing its draft of a proposed commercial property re-occupancy ordinance in a public workshop Aug. 11 at City Hall.

Property owners who saw a proposed fee structure under consideration expressed concern about the likely costs involved and whether such an ordinance might deter businesses and developers from investing in the city.

Workshop attendees included representatives from the Sunrise Marketplace business improvement district, the Citrus Heights Police Department and the Citrus Heights Chamber of Commerce as well as local business owners who provided feedback about the proposal.

The ordinance stems from the city’s annual strategic planning meeting in March, where City Council identified rising vacancies in commercial properties as a concern and directed city staff to explore a vacant building ordinance that would help “encourage the upkeep and reuse of vacant properties,” according to the city’s website.

The proposed ordinance, when revised, will need to go before the City Council for approval, but a scheduled date for its consideration has yet to be determined. A full version of the draft ordinance can be viewed at: CitrusHeights.net/CPR.

The workshop presentation was led by representatives of the city’s Economic Development and Community Engagement and Community Development Department.

City Manager Ash Feeney in his opening remarks emphasized that the proposed ordinance is not intended to be “punitive” or “a money grab” but is designed to address absentee property owners who leave their properties to neglect.

Feeney said city often does not always have access to the most up-to-date contact information for many property owners.

“The general goals of the city ordinance are to provide guidelines and support for property owners to ultimately help reduce blight, prevent crime, practice proactive maintenance, and maintain properties so that they are “market ready.’”

Community Development Director Casey Kempenaar said when some properties are so neglected that their infrastructure becomes severely damaged, the buildings are no longer able to be leased out and may need to be demolished, such as with the former Marie Callender’s building, which now has city approval to be demolished and replaced by a smaller drive-thru restaurant.

“This item is a building block on a number of different blocks that we’ve been building on for a firm foundation of a clean and safe community,” Feeney said.

Economic Development and Community Engagement Director Meghan Huber said the city is concerned about the number of property owners who are not local and presented examples of properties with absentee owners which have been vacant for many years.

“All of this decline affects property values, resulting in lower marketability and rent potential, and even more importantly, it affects business neighbors,” she said.

Recent polling by the city reported some 70 percent of residents said improving the look of commercial areas is the most important step to attract desired businesses. Some 60 percent also identified abandoned or run-down commercial buildings as the top priority for improvement.

Key provisions of the draft ordinance include a requirement for property owners to register commercial buildings that have been vacant for more than 30 days. 

Under the proposal, a commercial property owner who has a vacant property can choose to self-register, or the city, if it identifies potential vacancy through inspections, code enforcement reports, utility data or complaints can send written notice to the property owner of record to do so.

The ordinance also aims to ensure that vacant commercial properties are properly maintained and secured, while also encouraging reinvestment and occupancy, according to the city.

Vacant properties would be required to display a sign with the property owner or manager’s contact information. Annual registration and monitoring fees would support the city’s enforcement efforts, though property owners may be eligible for partial fee refunds once a building is legally reoccupied and passes inspection.

In its workshop presentation, the city proposes two fees, an annual registration fee and an annual monitoring fee.

Certain exempt commercial properties would not require a registration fee but would need to have a valid building or planning permit issued or demonstrate work actively progressing within six months of permit issuance. The vacant property also would need to be free of trash, debris and graffiti.

Properties which are 75 percent occupied with no outstanding violations and partially occupied could qualify for fee relief of the annual monitoring fee for 12 months and re-apply yearly.

A proposed annual registration fee of $1,092, plus an annual monitoring fee of $1,131, would add up to $2,222 for a vacant commercial property of one acre or less in size.

The registration fee is the same for properties larger than one acre, but the monitoring fee jumps to $5,654 per year for a combined cost of $6,746.

Monitoring fees can be partially reimbursed if the property becomes occupied during the registration year, according to the city.

Feeney said that the city reviewed similar vacant property programs in multiple California cities as it considered proposed exemptions for well-maintained, or partially occupied properties and possible fee relief options for qualified owners.

“Sunrise MarketPlace (SMP) prefers a positive approach to assisting owners with challenging vacancies. A positive mutually beneficial strategy would be more productive and create a mutually beneficial partnership,” said SMP executive director Kathilynn Carpenter.

Tiffany Clement, a property management representative from Merlone Geier, which manages Sunrise Village, challenged the city’s assertion that property owners aren’t attempting to fill vacancies in a timely manner and that fees will help property owners fill vacancies faster.

Clement and Sherri Merrick, the Citrus Heights Chamber of Commerce executive director, expressed concern that if property owners are required to pay thousands of dollars in fees annually, they will pass the high costs onto their tenants, resulting in higher rental fees.

Clement, who is also chair of the Board of Directors for Sunrise Marketplace, listed all the benefits that property owners and businesses receive when paying fees to the business district, including added security personnel and extra marketing but questioned what the benefit of being required to register with the city will be.

In an email on Aug. 15, the city sent a summary of what was discussed at the workshop, stating, “Participants shared a range of ideas and perspectives that will help refine the program. The discussion concluded with alignment ensuring the program remains responsive to the business community and grounded in the needs of Citrus Heights.”