REPORT TO HOUSING AND HUMAN SERVICES COMMISSION
SUBJECT
Title
Consideration of Housing Mitigation Fee Nexus Study Findings and Alternatives
Report
REPORT IN BRIEF
In 2009 Council directed staff to study possible expansion and/or increase of the City's Housing Mitigation Fee, which is currently imposed only on certain industrial or office projects. This study, initiated originally as a study issue (Attachment 1), required the completion of a nexus study to meet legal requirements for imposition of a new development impact fee. Staff engaged a consultant to complete the nexus study and other analysis related to this project. The nexus study is provided in Attachment 2 to this report. A feasibility study is provided in Attachment 3, and a slide presentation is provided in Attachment 4, all of which are described further below.
STAFF RECOMMENDATION:
* Alternatives 1, 2 and 4: Recommend that Council consider expanding the Housing Mitigation Fee to all net new square footage of all non-residential development projects in any zone; recommend that Council consider adopting a fee of $12 per square foot for office/industrial projects ($6 per square foot for first 25,000 square feet), and $6 per square foot for retail and lodging projects, both adjusted annually for inflation as part of the annual fee schedule adoption; and recommend that Council have the new fee apply to projects where a complete planning application is submitted after the effective date of the fee. The fee would apply to net new square footage with credit for any existing square footage. This recommendation would expand the fee program to retail and lodging uses that are not currently subject to the fee. And while the rates in Alternative 2 are relatively similar to the current fee rate, most projects that are already subject to the fee would experience a significant increase in the total fee amount due, because the entire net new building square footage would be subject to the fe...
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