Norco adopts developer reimbursement program to recover major-project processing costs

The Norco City Council voted unanimously to adopt Resolution 2026-67, which establishes a processing deposit and reimbursement requirement for major development projects to ensure extraordinary review costs are borne by applicants rather than the city's general fund.

City Attorney explained the rationale: major projects often require significant staff time and outside consultants for CEQA, legal and technical review. "We're not using this to make revenue. We're just using this to recover actual cost, during project review and processing," the City Attorney said, describing a system in which applicants execute reimbursement agreements, provide an initial deposit that is billed down for actual costs, and receive refunds for any unused balance. If funds are exhausted, staff will pause work until the account is replenished. The fee would not be a fixed flat fee but a mechanism to recoup actual costs; it would become effective 60 days after adoption.

Council asked whether building inspection fees are covered; building staff explained permit fees typically include inspection components and that the proposed deposit tool is intended for entitlement and processing costs (legal, consultant, staff time) rather than ongoing long-term obligations. The resolution passed on a unanimous voice vote following the public hearing.

The policy gives the city a formal legal method to require reimbursement for processing major projects, a change staff said protects general-fund resources for core services such as police and parks.