REPORT TO COUNCIL
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, a slide presentation is provided in Attachment 4, and a comparison of several fee alternatives is provided in Attachment 5. Background on the City's past and projected uses of the Housing Mitigation fees is provided in Attachment 6, and the commissions' meeting minutes are provided in Attachments 7 and 8.
Staff recommends that Council adopt Alternatives 1, 2 and 4:
1. Direct staff to prepare an ordinance to expand the Housing Mitigation Fee to all net new square footage of all office/R&D, industrial, retail, and lodging development projects in any zone;
2. Set the initial fee rate in the draft ordinance at $12 per square foot for office/R&D/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
4. Clarify that the new fee rates shall apply to all covered projects for which a complete planning application is submitted on or after the effective date of the ordinance.
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. While the ...
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