Economic & Planning Systems, Inc.
T h e E c o n o m i c s o f L a n d U s e
455 Capitol Mall, Suite 701 n Sacramento, CA 95814
916.649.8010 n www.epsys.com
CITY OF FRESNO
2022 DEVELOPMENT
IMPACT FEE UPDATES
Presented by City of Fresno &
Economic & Planning Systems, Inc.
(EPS)
Economic & Planning Systems, Inc. (EPS) 2022 Development Impact Fee Updates | 1
CITY DEVELOPMENT IMPACT FEE PROGRAMS
▪ Police Facilities Impact Fee Program
▪ Fire Facilities Impact Fee Program
▪ Park Impact Fee Program
▪ Major Streets Impact Fee Program
▪ Traffic Signal Mitigation Impact Fee Program
2022 FEE PROGRAM UPDATES
Economic & Planning Systems, Inc. (EPS) 2022 Development Impact Fee Updates | 2
DEVELOPMENT IMPACT FEE UPDATE
▪ Fee charged on new development to mitigate its impact on the need for new facilities
– Provides funding for public infrastructure and/or facilities needed to serve new residents and employees
▪ Must be legally defensible and conform to the requirements established in the Mitigation Fee Act
(CA Government Code Section 66000 et seq.)
WHAT IS A DEVELOPMENT IMPACT FEE?
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DEVELOPMENT IMPACT FEE UPDATE
▪ Identify the purpose of the fee.
▪ Identify how the fee is to be used.
▪ Determine how a reasonable relationship exists between the fee’s use and the type of development project on which the fee is imposed.
▪ Determine how a reasonable relationship exists between the need for the public facility and the type of development project on which the fee is imposed.
▪ Demonstrate a reasonable relationship between the amount of the fee and the cost of public facility or portion of public facility attributable to development on which the fee is imposed.
MITIGATION FEE ACT LEGAL REQUIREMENTS
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DEVELOPMENT IMPACT FEE UPDATE
ELIGIBLE COSTS FOR IMPACT FEE FUNDING
Eligible Costs Ineligible Costs
New Improvements Required to
Serve New Development
Improvements Required to
Serve Existing Development
(Existing Deficiencies)
Buy-In to Existing Facilities by
New Development
Operations and Maintenance
Debt Service for New and
Oversized Facilities
Fee Program Administration
Economic & Planning Systems, Inc. (EPS) 2022 Development Impact Fee Updates | 5
DEVELOPMENT IMPACT FEE UPDATE
▪ Demographic and Land Use Analysis
▪ Capital Facilities Analysis
▪ Project List and Cost Estimates
▪ Cost Allocation
▪ Fee Calculation
▪ Technical Report Establishing Legal Nexus between New Development and the Proposed Fees
FEE UPDATE PROCESS AND METHODOLOGY
Economic & Planning Systems, Inc. (EPS) 2022 Development Impact Fee Updates | 6
POLICE FEES
FEE COMPARISON
Item
Proposed
Fee
Existing
Fee Difference
Percent
Difference
Residential
Single-Family $948 $673 $275 41%
Multifamily $723 $507 $216 43%
Nonresidential
Retail $886 $717 $169 24%
Office $844 $682 $162 24%
Industrial $422 $340 $82 24%
Police Fee
per dwelling unit
per 1,000 bldg. sq. ft.
Economic & Planning Systems, Inc. (EPS) 2022 Development Impact Fee Updates | 7
POLICE FEES
▪ Greater percentage increase for residential fees vs. commercial fees – Higher persons per household factors than in 2016.
– Greater percentage of residential service calls vs. commercial service calls. ▪ Major reasons for fee increases across land uses
– Change in land acquisition cost structure and addition of site improvement and parking costs:
2016: $265,000 per acre for land acquisition
2022: $210,000 per acre for land acquisition
$332,000 per acre for site improvement and parking
$542,000 per acre total
– Increase in planned police headquarters size:
2016: 60,000 square feet
2022: 125,000 square feet
FEE ADJUSTMENT SUMMARY
Economic & Planning Systems, Inc. (EPS) 2022 Development Impact Fee Updates | 8
FIRE FEES
FEE COMPARISON
Proposed
Fee
Existing
Fee Difference
Percentage
Difference
Residential
Single-Family $2,285 $2,061 $224 11%
Multifamily $1,743 $1,556 $187 12%
Nonresidential
Retail $602 $721 ($119) (17%)
Office $688 $824 ($136) (17%)
Industrial $344 $413 ($69) (17%)
per dwelling unit
per 1,000 bldg. sq. ft.
Economic & Planning Systems, Inc. (EPS) 2022 Development Impact Fee Updates | 9
FIRE FEES
▪ Increase for residential fees and decrease for commercial fees – Higher persons per household factors than in 2016.
– Greater percentage of residential service calls vs. commercial service calls. ▪ Fire fees updated in 2019
– Lower percentage fee changes than for other improvement types.
FEE ADJUSTMENT SUMMARY
Economic & Planning Systems, Inc. (EPS) 2022 Development Impact Fee Updates | 10
MAJOR STREET FEE PROGRAM
FEE PROGRAMS
Development Area Citywide Fee New Growth Fee
Regional Streets New Growth Area Streets
Infill Area ✓
New Growth Area ✓ ✓
Major Street Fee Program
Economic & Planning Systems, Inc. (EPS) 2022 Development Impact Fee Updates | 11
MAJOR STREET FEES
Land Use Proposed Fee Existing Fee Difference
Percentage
Difference
(2022 $) (FY 2021-22)
Residential
Residential Low - Medium $8,783 $8,752 $31 0%
Residential Medium/High - High $17,054 $16,993 $61 0%
Nonresidential
Retail $15,769 $15,475 $294 2%
Office $16,517 $16,390 $127 1%
Light Industrial $4,728 $4,661 $67 1%
Heavy Industrial $2,874 $2,865 $9 0%
Residential
Residential Low - Medium $27,490 $24,090 $3,400 14%
Residential Medium/High - High $53,424 $46,816 $6,608 14% Nonresidential
Retail $50,710 $43,487 $7,223 17%
Office $47,189 $41,162 $6,027 15%
Light Industrial $15,396 $13,281 $2,115 16%
Heavy Industrial $9,196 $8,058 $1,138 14%
Residential
Residential Low - Medium $36,273 $32,842 $3,431 10%
Residential Medium/High - High $70,478 $63,809 $6,669 10% Nonresidential
Retail $66,479 $58,962 $7,517 13%
Office $63,706 $57,552 $6,154 11%
Light Industrial $20,124 $17,942 $2,182 12%
Heavy Industrial $12,070 $10,923 $1,147 11%
fee comp
Source: City of Fresno; Kittelson & Associates; Fresno COG; EPS. [1] Includes 2% administration component.
Total New Growth Area Street Fees
(Sum of Citywide Fee and New Growth Fee)
Major Street Fees Comparison [1]
(per adjusted gross acre, excluding area of major streets) Citywide Fee
New Growth Fee
FEE COMPARISON
Economic & Planning Systems, Inc. (EPS) 2022 Development Impact Fee Updates | 12
MAJOR STREET FEES
▪ Updated development projections for 2022 through buildout in Infill and New Growth Areas.
▪ City updated Roads CIP for Regional and Growth Area Streets. ▪ City updated deficiency analysis to estimate impact fee contribution. ▪ Preliminary results.
FEE ADJUSTMENT SUMMARY
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TRAFFIC SIGNAL IMPACT FEES
FEE COMPARISON
per dwelling unit
per 1,000 bldg. sq. ft.
1 = As published in the Master Fee Schedule - 2016 fee adjusted annually based on the 20-City Construction Cost Index as report in the Engineering News Record (ENR) for the 12-month period ending in May of the year of the adjustment.
Economic & Planning Systems, Inc. (EPS) 2022 Development Impact Fee Updates | 14
REGIONAL IMPACT FEE COMPARISON
SINGLE FAMILY FEES PER DWELLING UNIT - POLICE
Economic & Planning Systems, Inc. (EPS) 2022 Development Impact Fee Updates | 15
REGIONAL IMPACT FEE COMPARISON
SINGLE FAMILY FEES PER DWELLING UNIT - FIRE
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REGIONAL IMPACT FEE COMPARISON
SINGLE FAMILY FEES PER DWELLING UNIT - TRANSPORTATION
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REGIONAL IMPACT FEE COMPARISON
RETAIL FEES PER 1,000 BLDG. SQ. FT. - POLICE
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REGIONAL IMPACT FEE COMPARISON
RETAIL FEES PER 1,000 BLDG. SQ. FT. - FIRE
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REGIONAL IMPACT FEE COMPARISON
RETAIL FEES PER 1,000 BLDG. SQ. FT. - TRANSPORTATION
Economic & Planning Systems, Inc. (EPS) 2022 Development Impact Fee Updates | 20
REGIONAL IMPACT FEE COMPARISON
INDUSTRIAL FEES PER 1,000 BLDG. SQ. FT. - POLICE
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REGIONAL IMPACT FEE COMPARISON
INDUSTRIAL FEES PER 1,000 BLDG. SQ. FT. - FIRE
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REGIONAL IMPACT FEE COMPARISON
INDUSTRIAL FEES PER 1,000 BLDG. SQ. FT. - TRANSPORTATION
Economic & Planning Systems, Inc. (EPS) 2022 Development Impact Fee Updates | 23
CONTACT INFORMATION
Scott Mozier
Public Works Director
City of Fresno
[email protected]
Andrew Benelli
Asst. Public Works Director/City Engineer
City of Fresno
[email protected]
Jamie Gomes
Managing Principal
Economic & Planning Systems, Inc. (EPS)
[email protected]
Allison Shaffer
Senior Technical Associate
Economic & Planning Systems, Inc. (EPS)
[email protected]
KEY CITY AND EPS STAFF