Grand Terrace City Council
January 13, 2026

Chapter 4 Street Improvements
City of Grand Terrace 2025–26 Development Impact Fee Calculation and Nexus Report Separately, the City currently holds a Street Improvements fund balance of $805,390. This fund balance represents prior fee collections and interest available to help �inance growth-related improvements. When combined, the City’s total existing Street Improvements resources equal $326,471,777, consisting of $325,666,387 in existing capital assets and $805,390 in existing fund balance. The fund balance is treated as a credit in the fee calculation, reducing the amount to be recovered from new development in this update cycle, but it does not change the underlying replacement-cost value of the existing street system reported above.

These �igures illustrate the scale of the community’s existing contribution to the street network. The purpose of the Street Improvements fee is not to retroactively charge existing development, but to ensure that new development contributes its fair, proportionate share toward planning and, when programmed in future cycles, capacity and operational improvements needed to preserve mobility and safety standards as growth occurs.

Level of Service: For purposes of this program, street service is de�ined in terms of trip demand generated by land uses, rather than the traditional Highway Capacity Manual (HCM) letter-grade framework. HCM LOS is valuable for diagnosing operational performance at speci�ic locations (e.g., whether an intersection requires improvement based on delay or volume-to-capacity), but it does not apportion how much of that need is caused by each land use. A fee program must trace impacts back to growth in a measurable way, so this study uses a demand metric that attributes system use to development types and supports proportional cost allocation.

This study measures demand by calculating trip-miles generated by new development. Each land use produces trip-ends that are multiplied by average trip length to determine daily trip-miles attributable to that use. Trip-miles serve as the quantitative denominator for assigning a proportionate share of system improvement costs to new development, while recognizing the substantial �inancial investment already made by existing residents and businesses.

By de�ining the level of service for fee purposes in terms of trip demand (trip-miles) rather than HCM letter grades, the methodology grounds fees in measurable impacts and links the calculation directly to the additional demand created by growth. This approach provides a clear and defensible basis for allocating costs in compliance with the Mitigation Fee Act and AB-602.

The speci�ic inputs to this methodology, including trip-generation rates, trip lengths, and any land use adjustments, are based on standard industry sources and regional travel-behavior studies. These details, along with the full fee calculation, are presented later in this chapter.

Growth and Demand
Growth Inputs: The demand for street improvements in Grand Terrace is driven by the scale and pattern of development anticipated over the planning horizon. This chapter uses the City’s adopted planning assumptions to de�ine the magnitude of new residential and business development expected during the study period. These inputs provide the basis for estimating the additional travel activity generated by growth and, in turn, the capacity that must be planned for within the street system.
36

Chapter 4 Street Improvements
City of Grand Terrace 2025–26 Development Impact Fee Calculation and Nexus Report Residential growth is measured in dwelling units by the adopted land use categories. Nonresidential growth is measured in �loor area (square feet). These measures align with Assembly Bill 602 (AB602) fee presentation requirements and maintain consistency across chapters.

Each growth input translates into trip-ends that generate additional miles of travel on the City’s street network. The linkage between new development, trip generation, and resulting trip-miles forms the foundation of proportional cost allocation in this program. The speci�ic trip rates, average trip lengths, and any adjustments by use are presented in the methodology section that follows; the key point is that the scale of growth directly drives the scale of new demand on Grand Terrace’s street system.

Method: This program establishes transportation demand using a trip-based methodology that combines standard trip-generation rates with regional travel behavior data. The framework ensures that development impact fees are allocated in proportion to the transportation demand created by new growth.

Trip Generation
Trip-ends are established using accepted trip-generation rates by land use. Residential rates are expressed per dwelling unit; nonresidential rates are expressed per 1,000 square feet. These rates yield gross daily trip-ends for each use.

Trip Length
Gross trip-ends are converted to trip-miles by applying average trip-length factors derived from the San Diego Association of Governments (SANDAG) regional travel behavior data. These factors are used here as the most applicable regional source for Southern California travel distances and are applied to re�lect local conditions.

Adjustments for Trip Type
To isolate net new demand, trip-miles are adjusted for primary, diverted, and pass-by components.

Primary trips are fully counted; diverted trips are partially counted; pass-by trips receive the lowest weighting. These adjustments prevent over-attribution to uses that attract passing traf�ic.

Trip-Miles as the Demand Metric
Trip-miles—calculated as trip-ends × average trip length × adjustment factors—serve as the common denominator for measuring demand, capturing both the frequency of trips and the distance they travel within the City’s network.

Translation to Fees
Because nonresidential trip rates are developed per 1,000 square feet, analytical calculations use KSF internally. For presentation, quantities are shown in square feet and, consistent with AB-602, maximum justi�ied fees are expressed per square foot. Residential fees are also presented per square foot.
37

Chapter 4 Street Improvements
City of Grand Terrace 2025–26 Development Impact Fee Calculation and Nexus Report Compliance and Detailed Methodology
This methodology allocates costs in proportion to measurable, growth-related demand, consistent with the Mitigation Fee Act. The speci�ic inputs, trip-generation rates, SANDAG trip-length factors, and trip-type adjustments, together with the equations used to compute Trip-Ends and Trip-Miles, are documented in the methodology appendix and model tables.

Scope of Included Demand Metric: This program measures the transportation demand of new development in terms of vehicular trips that affect the City’s street system. Other modes, walking, bicycling, and transit, are not included for fee calculation purposes because they do not generate the same capital facility costs that this program is designed to fund.

Demand is organized into two groups, using the City’s adopted land use categories:
• Residential Development: Single Family Detached, Multi-Family Attached, and Manufactured/Mobile Homes.
• Business Development: General Commercial, Of�ice Commercial, and Industrial.

The common metric is trip-miles, combining (a) the number of trips generated by each land use with (b) the average distance traveled. This captures the burden placed on the street system by considering both trip frequency and travel distance, rather than relying solely on household counts or square footage.

The scope de�ined here establishes the framework for the calculations that follow. Table 4-1 presents the trip-generation rates, average trip lengths, and resulting trip-miles for each land use category, which together provide the technical basis for understanding how demand for street improvements is distributed across development types.

Table 4-1
Existing Land Use Total Trip-Miles
Land Use Developed
Acres Units/SF Trip-End and Length Factor
Total Existing
Trip-Miles
Single Family Detached 1,000 3,325 4.095 13,616
Multi-Family Attached 180 1,996 1.638 3,269
Manufactured/Mobile Homes 32 269 1.808 486
General Commercial 153 2,361,605 15.089 35,634
Office Commercial 35 544,282 4.529 2,465
Industrial 238 3,103,650 2.514 7,803
Total 1,636 - - 63,273
38

Chapter 4 Street Improvements
City of Grand Terrace 2025–26 Development Impact Fee Calculation and Nexus Report Note: For nonresidential categories, trip-generation rates are expressed per 1,000 SF (KSF); quantities are shown as total SF. Final fees are presented per SF.

Resulting Service Demand: The methodology converts projected development into trip-miles by applying trip-generation and trip-length factors to each land use category. The resulting growthrelated trip-miles and shares (to be presented in Table 4-2) are:
• Single Family Detached: 13,247 trip-miles (21%)
• Multi-Family Attached: 6,226 trip-miles (10%)
• Manufactured/Mobile Homes: 13 trip-miles (0%)
• General Commercial: 38,015 trip-miles (59%)
• Of�ice Commercial: 2,203 trip-miles (3%)
• Industrial: 4,833 trip-miles (7%)
• Total: 64,537 trip-miles (100%)
These values quantify the incremental burden that new development places on the street system by capturing both trip frequency and travel distance. They provide the technical basis for allocating Street Improvements costs to each land use in direct proportion to its share of total trip-miles.

Consistent with AB-602 presentation standards, �inal fees will be shown per square foot for all categories.

Table 4-2
Potential Land Use Total Trip-Miles
Land Use Potential
Acres Units/SF Trip-End and Length Factor
Total Potential
Trip-Miles
Single Family Detached 1,024 3,235 4.095 13,247
Multi-Family Attached 207 3,801 1.638 6,226
Manufactured/Mobile Homes 1 7 1.808 13
General Commercial 165 2,519,401 15.089 38,015
Office Commercial 32 486,499 4.529 2,203
Industrial 147 1,922,303 2.514 4,833
Total 1,576 - - 64,537
Note: For nonresidential categories, trip-generation rates are expressed per 1,000 SF (KSF); quantities are shown as total SF. Final fees are presented per SF. 39

Chapter 4 Street Improvements
City of Grand Terrace 2025–26 Development Impact Fee Calculation and Nexus Report Capacity Implications: Table 4-2 shows that potential new development in Grand Terrace will generate 64,537 additional trip-miles on the City’s street system. This increase represents the measurable incremental demand attributable to growth beyond the existing baseline, summarized in Table 4-1.

As these additional trip-miles are introduced into the network, roadway and intersection performance will experience higher loading—manifesting as longer travel times, recurring congestion windows, and reduced ef�iciency at critical locations. While operational measures can mitigate some effects, sustained growth-related demand ultimately necessitates planning and, when programmed, targeted capital improvements to preserve adopted service standards.

In this cycle, the Street Improvements program funds circulation planning to identify, prioritize, and phase the growth-related responses indicated by the 64,537 trip-mile burden. If the City subsequently programs eligible capacity projects (e.g., corridor widenings, intersection modi�ications, new signals, and related street improvements), those projects will be proportionally sized to the documented demand in Table 4-2, and program costs will be allocated to land uses in direct proportion to each category’s share of total trip-miles. Final fees are presented per square foot for all categories.

Allocation by Land Use: The cost of Street Improvements is distributed across land uses in direct proportion to their contribution to the 64,537 growth-related trip-miles identi�ied in Table 4-2. This approach ensures that each category of new development is assigned responsibility only for the share of system capacity it requires.

Residential development contributes to trip demand through daily household travel associated with Single Family Detached, Multi-Family Attached, and Manufactured/Mobile Homes. Business development contributes through customer, employee, visitor, and goods-movement trips generated by General Commercial, Of�ice Commercial, and Industrial uses. By quantifying demand in trip-miles, the methodology captures both the frequency and distance of travel, providing a clear and equitable basis for cost allocation.

Although this cycle of the Street Improvements program funds primarily planning activities rather than physical capacity projects, the allocation remains based on the trip-mile methodology. This metric provides a reasonable and equitable measure of system use across land uses, re�lecting how each category of new development contributes to future travel demand on the City’s street network.

Using trip-miles as the allocation basis keeps fee responsibility proportional to growth-related impacts and consistent with the principles of the Mitigation Fee Act and AB-602.

While the principle of proportional allocation is established here, the detailed calculation of each land use’s percentage share, together with the derivation of maximum justi�ied fees, is presented later in this chapter under Derivation of Maximum Justi�ied Fees.

Capacity Sizing and Capital Program: The demand generated by new development, as documented in Table 4-2, requires the City to plan for targeted improvements that preserve the performance of Grand Terrace’s street system. The City’s adopted planning documents provide the framework for 40

Chapter 4 Street Improvements
City of Grand Terrace 2025–26 Development Impact Fee Calculation and Nexus Report identifying where roadway capacity, intersection performance, and signalization should be evaluated and, when warranted, programmed to accommodate projected growth.

Capacity sizing in this program is based on proportionality. Using the trip-mile methodology, each prospective improvement is evaluated to determine the extent to which it mitigates growth-related demand relative to any existing or regional needs. Improvements primarily triggered by growth (for example, a new traf�ic signal at an unsignalized intersection once warrants are met) would assign a higher cost share to new development, while improvements with substantial existing or regional bene�it (for example, corridor widenings or interchange-related work) would assign a larger share to the existing community. This approach ensures that each improvement is scaled to the demand it mitigates and that cost responsibility remains equitable and defensible.

For this update cycle, the Street Improvements program consists of planning activities rather than a physical construction list. The program funds preparation of the Circulation Master Plan, which will re�ine network priorities, con�irm warrants and corridor needs, and establish a transparent, projectlevel basis for future programming consistent with the methodology above. The Master Plan cost is allocated 50% to existing development and 50% to new development, re�lecting the plan’s systemwide bene�it and its role in guiding growth-related capacity. If, in a future cycle, the City adds eligible capital projects, those projects will be proportionally sized to the growth-related trip-mile demand documented in Table 4-2, and costs will be allocated to land uses in direct proportion to each category’s share of total trip-miles.

Street Improvements Project
Project ID: ST-001
Project Title: Circulation Master Plan
Description: Preparation of a comprehensive Circulation Master Plan to evaluate existing network conditions, identify growth-related capacity needs, establish citywide mobility standards, and de�ine the future capital improvement framework for Grand Terrace. The plan will integrate trip-generation and trip-mile data, model future system performance, and identify prioritized roadway and intersection projects consistent with the City’s General Plan.

Size/Scope: Citywide planning document covering all arterial and collector corridors, intersection control, and multimodal coordination elements.

Location: Citywide
New Development Share: 50% – $1,250,000 (to be funded through Street Improvements Impact Fees)
Existing Community Share: 50% – $1,250,000 (not eligible for impact fee funding) 41

Chapter 4 Street Improvements
City of Grand Terrace 2025–26 Development Impact Fee Calculation and Nexus Report Total Cost: $2,500,000
Timing: 2026–2036
Allocation of Project Costs
This section assigns, for the City of Grand Terrace, the proportion of each Street Improvements item attributable to new development versus the existing community. For this update cycle, the program consists of a single planning item—the Circulation Master Plan (ST-001). Because the Master Plan both (1) maintains mobility standards for current users and (2) establishes the technical foundation for programming growth-related capacity, its cost is allocated 50% to existing development and 50% to new development. With a total cost of $2,500,000, the growth-eligible share carried forward into the fee calculation is $1,250,000, and the remaining $1,250,000 is the responsibility of the existing community (to be funded from non-fee sources).

New development pays only its proportionate share. The 50/50 split re�lects the plan’s systemwide nature in Grand Terrace: it updates network models, con�irms warrants and corridor needs, and sequences future projects that will ultimately address growth-related demand. In subsequent cycles—if the City adds eligible capital projects—each project will be evaluated using the same proportional framework, with higher new-development shares for improvements primarily triggered by growth (e.g., new signals once warrants are met) and lower shares where substantial existing or regional bene�its are present (e.g., corridor widenings or interchange-related work). The $1,250,000 growth-eligible total from this section is distributed across Grand Terrace’s adopted land use categories in proportion to each category’s share of growth-related trip-miles as shown in Table 4-2.

Derivation of Maximum Justi�ied Fees
The total cost allocated to new development within the Street Improvements program provides the basis for calculating maximum justi�ied fees. For this update, the growth-eligible cost equals $1,250,000 (50% of the $2,500,000 Circulation Master Plan). The City will apply an existing Street Improvements fund balance of $805,390 as a credit toward this growth-eligible share. Accordingly, the net cost to be recovered from new development through this fee update is $444,610. That net recovery amount is distributed across land use categories in direct proportion to each category’s share of growth-related demand, measured in trip-miles as established earlier in this chapter.

Allocating the net fee-recovery amount by each land use’s percentage of total trip-miles maintains proportionality and equity and is consistent with the Mitigation Fee Act and AB-602. Resulting fees are presented per square foot for all land uses, consistent with this report’s adopted presentation standards.

Table 4-3 allocates the program’s $444,610 net fee-recovery amount to land uses in proportion to their shares of total growth trip-miles shown in Table 4-2. The subsection that follows presents the existing community’s funding commitment for the remaining share. 42

Chapter 4 Street Improvements
City of Grand Terrace 2025–26 Development Impact Fee Calculation and Nexus Report Table 4-3
Allocation of Development Cost per Land Use
Land Use Units/SF
Percentage of
Additional
Trip-Miles
Allocation of
Expansion
Costs
Development
Impact Fee Per
SF/Room
Single Family Detached 3,235 21% $91,264 $0.015/SF
Multi-Family Attached 3,801 10% $42,893 $0.014/SF
Manufactured/Mobile
Homes 7 0% $87 $0.011/SF
General Commercial 2,519,401 59% $261,894 $0.104/SF
Office Commercial 486,499 3% $15,177 $0.031/SF
Industrial 1,922,303 7% $33,296 $0.017/SF
Total 100% $444,610 -
Existing Community Financial Commitment Comparison
The Mitigation Fee Act requires that new development pay no more than its fair share of the cost of public facilities needed to serve growth. To demonstrate compliance, this chapter documents the �inancial commitment already made by the existing community and contrasts it with the costs allocated to new development within the Street Improvements program.

City records indicate that Grand Terrace’s total existing Street Improvements resources equal $326,471,777, consisting of $325,666,387 in existing capital street assets (at 2025 replacement cost) and $805,390 in existing Street Improvements fund balance. These �igures re�lect the existing community’s contribution to establishing and maintaining the baseline capacity of the street network.

By comparison, this update identi�ies $1,250,000 in growth-eligible Street Improvements costs for new development (50% of the $2,500,000 Circulation Master Plan). The City applies the existing $805,390 fund balance as a credit toward this growth-eligible share, leaving $444,610 in net growthrelated costs to be recovered through the Street Improvements development impact fee. Table 4-3 allocates this net fee-recovery amount across Grand Terrace’s adopted land use categories in proportion to each category’s share of total growth trip-miles, and the resulting maximum justi�ied fees are presented per square foot consistent with AB-602.

This comparison con�irms that new development is assigned only its fair, proportionate share of Street Improvements costs relative to the substantial investments already made by the existing 43

Chapter 4 Street Improvements
City of Grand Terrace 2025–26 Development Impact Fee Calculation and Nexus Report community, and that fee levels do not exceed the cost of facilities reasonably attributable to projected growth.

Table 4-4
Allocation of Existing Community Financial Commitment
Land Use Units/SF
Percentage
of Existing
Trip-Miles
Allocation of
Existing Costs
Existing
Financial
Commitment
Per SF/Room
Single Family Detached 3,325 22% $70,254,923 $12.14/SF
Multi-Family Attached 1,996 5% $16,867,167 $10.48/SF
Manufactured/Mobile Homes 269 1% $2,507,630 $7.82/SF
General Commercial 2,361,605 56% $183,861,921 $77.84/SF Office Commercial 544,282 4% $12,718,741 $23.60/SF
Industrial 3,103,650 12% $40,261,395 $12.97/SF
Total 100% $326,471,777 -
Fee Schedule and Summary
The maximum justi�ied fees are derived from the $1,250,000 growth-eligible share of the Circulation Master Plan, allocated to land uses in proportion to each category’s share of total growth trip-miles (see Table 4-2). The City applies $805,390 in existing Street Improvements fund balance as a credit toward this growth-eligible share, so this fee update recovers $444,610 in net growth-related costs from new development. The resulting fee levels represent the cost responsibility of new development to fund the planning work required to accommodate projected growth while maintaining the City’s adopted mobility standards.

Consistent with this chapter’s methodology and presentation standards under AB-602, fees are presented per square foot for all land uses: Single Family Detached, Multi-Family Attached, Manufactured/Mobile Homes, General Commercial, Of�ice Commercial, and Industrial. This schedule provides a transparent distribution of costs across land uses and ties fee obligations directly to measurable demand.
44

Chapter 4 Street Improvements
City of Grand Terrace 2025–26 Development Impact Fee Calculation and Nexus Report Table 4-5 presents the maximum justi�ied Street Improvements impact fees by land use. The City may adopt any amount at or below the maximum justi�ied levels and may implement annual indexing and related administrative provisions consistent with the Mitigation Fee Act and AB-602.

Table 4-5
Summary of Proposed Development Impact Fees
Land Use Per SF/Room
Single Family Detached $0.015/SF
Multi-Family Attached $0.014/SF
Manufactured/Mobile Homes $0.011/SF
General Commercial $0.104/SF
Office Commercial $0.031/SF
Industrial $0.017/SF
Current Street Improvements Fee
Grand Terrace’s current fee schedule lists two transportation impact fee lines—Traf�ic Signal Improvement and Arterial Improvement—which together function as the street-system charge on new development. Municipal Code Chapter 4.104 also establishes an Operational Improvement component. The posted residential rates are $238.53 per Single Family Detached (SFD) dwelling unit and $145.57 per Multi-Family Attached (MFA) dwelling unit for Traf�ic Signal, and $4,063.36 per SFD and $2,479.85 per MFA for Arterial. This study presents a single Street Improvements fee that uni�ies all three components for this planning-only cycle.

In the City’s audited �inancials, street-related impact fee receipts are accounted for in a single Street Improvement special revenue fund, with project spending occurring via transfers to the capital projects fund when work is delivered. The current Street Improvement fund balance is $805,390.

Consistent with Chapter 2 and AB-602, this report presents the recalculated Street Improvements maximum justi�ied fees per square foot for residential and nonresidential land uses. Any policy recommendation to consolidate the two schedule lines into one fee and deposit all receipts into a single Street Improvement fund is addressed in the chapter’s Implementation and Compliance Notes section.
45

Chapter 4 Street Improvements
City of Grand Terrace 2025–26 Development Impact Fee Calculation and Nexus Report Five Findings

1. Purpose of the Fee
The purpose of the Street Improvements development impact fee is to fund the planning activities—and, when programmed in future cycles, capacity and operational improvements to streets, intersections, and signals—necessary to mitigate the impacts of new development on the City’s street network. The fee ensures that growth contributes its fair, proportionate share toward maintaining adopted mobility standards, consistent with the Mitigation Fee Act and AB-602.

2. Use of the Fee
Fee revenues are used exclusively to prepare and update the City’s Circulation Master Plan and related technical analyses in this cycle, and, when programmed in future cycles, to design and construct eligible street and intersection capacity/operations improvements identi�ied through those plans. Operations and routine maintenance are not funded by this fee. When programmed in future cycles, eligible capital work may include corridor capacity, intersection control/signalization, access/egress improvements, and operational improvements formerly administered under the Operational Improvement component

3. Relationship Between the Fee’s Use and the Type of Development All new development increases travel demand on the street system. The uses of the fee, planning the network, and, when applicable, constructing growth-related street and intersection improvements, directly serve that added demand. Accordingly, there is a reasonable relationship between the use of the fee and the impacts of the development on which the fee is imposed.

4. Relationship Between the Need for Facilities and the Type of Development The need for Street Improvements arises from the incremental trip demand generated by new development. Without targeted planning and, when programmed, capacity/operations projects (e.g., intersection control upgrades, corridor improvements), the system would degrade below adopted performance standards. Each development category contributes to this demand, establishing a reasonable relationship between new development and the need for the identi�ied improvements.

5. Relationship Between the Amount of the Fee and the Cost Attributable to Development Project and program costs are allocated between new development and the existing community using a proportional methodology grounded in measured trip-mile demand. For this cycle, the growth-eligible share of the Circulation Master Plan totals $1,250,000. The City applies $805,390 in existing Street Improvements fund balance as a credit toward this growth-eligible share, so this fee update recovers $444,610 in net growth-related costs from new development. The net fee-recovery amount is distributed across land uses in proportion 46

Chapter 4 Street Improvements
City of Grand Terrace 2025–26 Development Impact Fee Calculation and Nexus Report to each category’s share of total growth trip-miles, and maximum justi�ied fees are presented per square foot consistent with AB-602. The resulting fee for each land use does not exceed the cost of facilities reasonably attributable to that development category.

Implementation and Compliance Notes
Adoption and Program Structure: The Street Improvements development impact fee shall be adopted by ordinance or resolution of the Grand Terrace City Council. Upon adoption, the City will discontinue the separate Arterial Improvement, Traf�ic Signal Improvement, and Operational Improvement components on the fee schedule and replace them with a single Street Improvements Impact Fee. This re�lects the City’s current accounting structure, where all street-related impact fee receipts are already deposited into the Street Improvement Fund.

Fund Accounting and Reporting: All Street Improvements revenues shall continue to be deposited into the Street Improvement Fund, with interest earnings retained in-fund. The City will maintain project-level tracking for revenue, expenditure, and interest activity and report annually under Gov.

Code § 66006.

Eligible Uses: For this update cycle, eligible uses are limited to Circulation Master Plan preparation and updates, traf�ic/operational studies, network modeling, and related planning/engineering that identify, phase, and justify growth-related improvements. Operations and routine maintenance are not eligible. In future cycles—when programmed through Council action—eligible uses may include design and construction of street and intersection capacity/operations projects identi�ied in the Master Plan.

Timing of Collection: Fees shall be collected at building permit issuance, unless otherwise directed by City ordinance or development agreement.

Indexing: The Street Improvements fee schedule will be indexed annually using a construction cost index approved by the City Council to maintain purchasing power.

Credits and Reimbursements: Developers who construct eligible, growth-related Street Improvements or dedicate right-of-way consistent with the program may receive credits against Street Improvements fees otherwise due. Where eligible improvements exceed the fee obligation, the City may enter into a reimbursement agreement, subject to Council approval and program requirements.

AB-1600 Reporting: The City will comply with annual reporting requirements (collections, interest, expenditures, and balances). For any unexpended funds held �ive years or more, the City Council will make the �indings required by Gov. Code § 66001(d). This chapter provides the technical basis to support those �indings.

Program Applicability: The Street Improvements program applies citywide. Funds may be expended on any eligible Street Improvements activity consistent with the nexus established in this chapter and in a manner that maintains consistency with the City’s General Plan and Circulation/Mobility Element.
47

Chapter 4 Street Improvements
City of Grand Terrace 2025–26 Development Impact Fee Calculation and Nexus Report Transition Clari�ication: No interfund transfer or consolidation is required because Arterial, Traf�ic Signal, and Operational fee receipts are already accounted for within the existing Street Improvement Fund. The City’s next AB-1600 report will note that the legacy fee lines have been administratively replaced by the uni�ied Street Improvements Impact Fee.

References
Institute of Transportation Engineers. (2021). Trip Generation Manual - 11th Edition. Washington DC: Institute of Transportation Engineers.

San Diego Association of Governments. (2002). Not So Brief Guide of Vehicular Traffic Generation Rates for the San Diego Region. San Diego: California Department of Transportation.

End of Chapter
48

Chapter 5
General City Facilities
Purpose and Scope
Purpose: The purpose of the General City Facilities Fee Program is to ensure that new development in the City of Grand Terrace contributes its fair share toward the cost of providing civic and administrative facilities required to serve growth. The City’s general city facilities, including City Hall and other City-owned administrative and support buildings, house essential functions that serve residents, businesses, and visitors citywide. As Grand Terrace grows, these facilities must be expanded, recon�igured, or replaced to maintain the City’s capacity to deliver public services at existing levels. The fee program provides a legally defensible mechanism under the Mitigation Fee Act (Gov. Code §66000 et seq.) and Assembly Bill 602 (AB-602) to allocate the growth share of these capital costs to new development.

Scope of Improvements: The General City Facilities Impact Fee will fund the cost of providing civic and administrative facilities necessary to maintain service levels as Grand Terrace grows. Eligible improvements include four categories of capital projects: (1) City Hall expansion to add or recon�igure administrative of�ice and public-service space; (2) general city vehicle expansion to provide additional pool and support vehicles needed for citywide administrative and support functions; (3) City Yard expansion to increase operations and storage capacity for public works and general government support activities; and (4) general city equipment expansion to furnish and equip these facilities so they can operate at the City’s established level of service. The scope of improvements is limited to capital facilities and related vehicles and equipment that add capacity; operational expenses, staf�ing, and routine maintenance are excluded.

Scope of Bene�iciaries: The bene�iciaries of the General City Facilities Impact Fee include all development within the City of Grand Terrace, encompassing both residential and nonresidential uses. General City facilities provide citywide administrative, legislative, and support services that are essential to the community. Residents rely on City Hall and related administrative facilities to access services such as planning, permitting, code enforcement, �inancial administration, and governance through the City Council. Employees and businesses likewise depend on these facilities for critical administrative services, including land use approvals, business licensing, and regulatory oversight.

Visitors bene�it indirectly, as these facilities enable the City to administer the public services that support a safe and functional civic environment, although the responsibility for funding facility expansions is assigned to development located within the City.

Both existing and future residents and businesses are bene�iciaries of the program. Existing development is currently served by the City’s inventory of general city facilities, while future development will generate additional demand as the community continues to grow. The purpose of the impact fee is to ensure that new development funds only its fair share of the costs required to accommodate this additional demand. This structure prevents existing residents and businesses from being required to subsidize growth and helps preserve the current level of service provided by the 49

Chapter 5 General City Facilities
City of Grand Terrace 2025-26 Development Impact Fee Calculation and Nexus Report City. In this way, the fee program treats existing and future development equitably and complies with the proportionality requirements of the Mitigation Fee Act and Assembly Bill 602 (AB-602).

Scope of the Nexus: The nexus for the General City Facilities Impact Fee is established through the relationship between growth in the City’s service population and the demand for civic and administrative facilities. Service population is a standard measure in development impact fee studies that combines both residents and employment into a single metric, re�lecting the fact that City Hall, general city vehicle �leets, City Yard operations, and shared administrative equipment support not only the people who live in Grand Terrace but also those who work in the City each day. As new development occurs, both residents and employees contribute to the overall demand for these facilities and the support systems they rely on.

The fee program �irst determines the growth-related share of General City Facilities costs by applying the service population growth share to the City’s existing facilities inventory. The resulting growthsized costs are then allocated between existing development and new development based on their respective shares of existing and potential land uses within the City. Existing residents and businesses are already served by the City’s current inventory of civic and administrative facilities, while new residents and businesses generated by development will create additional demand in the future.

This chapter describes the methodology used to determine the appropriate share of costs to be assigned to new development, with detailed calculations provided in the following sections.

Existing System
Assets and Infrastructure: The City of Grand Terrace maintains a system of General City facilities and assets that provide the administrative, legislative, and operational backbone for public service delivery. Together, these facilities and resources house the City’s executive of�ices, administrative departments, public works operations, and shared support functions that serve residents and businesses citywide.
• City Hall – Serves as the primary administrative center, housing executive management, �inance, planning, permitting, and other core administrative functions, as well as public counters and meeting spaces used by the community. For planning purposes in this study, City Hall is treated as providing approximately 16,700 square feet of general city administrative space, consistent with the City’s 2005–2006 development impact fee nexus study for general city facilities.
• General City Vehicles – Consist of a pooled general city �leet used by administrative and support staff to perform inspections, �ield visits, interdepartmental travel, and other citywide service activities that support Grand Terrace’s general government functions. The current general city �leet includes 9 vehicles (pickup trucks, sedans, a hybrid, and a van), with a total replacement cost of $334,500 based on the City’s General City Assets Worksheet for vehicles. 50

Chapter 5 General City Facilities
City of Grand Terrace 2025-26 Development Impact Fee Calculation and Nexus Report • City Yard Facilities – Provide operations, storage, and staging space for public works and general government support activities, including storage of materials, equipment, and vehicles needed to maintain City infrastructure and support �ield operations. • General City Equipment – Includes shared furniture, �ixtures, technology, and other equipment necessary for City Hall and City Yard functions to operate effectively and to support internal services such as �inance, human resources, information technology, and records management.

These facilities and assets together comprise the City’s General City Facilities system and form the physical base of service that supports both existing and future development.

Existing Financial Commitment: The City’s current General City Facilities system represents a substantial �inancial investment that has been borne by existing residents and businesses. Based on the City’s asset records and planning-level replacement cost estimates in 2025 dollars, the replacement value of existing General City Facilities is as follows:
• City Hall: $9,250,490
• General City Vehicles: $334,500
• City Yard Facilities: $1,503,900
• General City Equipment: $462,525
Total existing facilities replacement value: $11,551,415 These �igures represent the existing community’s �inancial commitment to City Hall, the general city �leet, City Yard facilities, and shared equipment that support general city services citywide. Under the Mitigation Fee Act (Government Code §§66000–66025), new development is not required to buy into this existing investment, but must fund its proportional share of the additional facilities, vehicles, yard capacity, and equipment needed to accommodate growth. Calculations are performed at full precision in the model; values are displayed to whole dollars for publication.

In addition to these physical assets, the City maintains a restricted General City Facilities development impact fee fund with an available balance of $194,105. This balance re�lects prior contributions from new development and will be applied as an offset to the new-development share of the General City Facilities capital program in the fee calculation, ensuring that new development is not overcharged for needs that have already been partially funded.

Level of Service: The level of service for General City Facilities is expressed in terms of the civic and administrative facilities available to the community relative to the City’s service population. Service population combines residents and employment into a single measure of the people who rely on the City’s administrative system for day-to-day services, regulatory functions, and governance.

The General City Facilities system, consisting of City Hall, the general city vehicle �leet, City Yard facilities, and shared general city equipment, provides the administrative capacity necessary to serve this service population. City Hall contributes approximately 16,700 square feet of administrative space, and, together with the City Yard, vehicles, and equipment, represents an existing facilities 51

Chapter 5 General City Facilities
City of Grand Terrace 2025-26 Development Impact Fee Calculation and Nexus Report replacement value of $11,551,415 in 2025 dollars. These facilities and assets de�ine the current level of service that the City provides to its residents and businesses.

As Grand Terrace grows, the service population is projected to increase, creating additional demand on City Hall, the general city �leet, City Yard operations, and associated equipment. The General City Facilities Impact Fee is structured so that new development funds its fair share of the additional facilities, vehicles, yard capacity, and equipment needed to maintain the City’s established relationship between General City Facilities and service population. This approach aligns with the requirements of the Mitigation Fee Act and Assembly Bill 602 (AB-602), ensuring that facility expansion keeps pace with growth without shifting the cost of serving new development onto existing residents and businesses.

Growth and Demand
Growth Inputs: Growth in the demand for General City Facilities is measured using service population, which combines residents and jobs into a single metric. This re�lects the fact that civic and administrative functions serve both people who live in Grand Terrace and those who work in the City.

Existing residents total 13,069, and the corrected growth in residents at buildout is 18,931.33, resulting in buildout residents of 32,000.33. Existing employment is 3,453 jobs, and buildout employment is estimated at approximately 6,285 jobs based on the ratio of buildout to existing nonresidential �loor area.

For General City Facilities, each job is weighted as one-half of a resident, so service population is calculated as residents plus 0.5 times jobs. On this basis, the existing service population is 14,795.50, and the buildout service population is 35,142.83, resulting in an increase of 20,347.33 service population units at buildout.

The resulting service population growth share — the ratio of growth (20,347.33) to buildout service population (35,142.83) — is 57.90% (0.579). This growth share is used to size the General City Facilities capital program so that only the portion of costs attributable to growth is carried forward into the allocation of project costs and fee calculation.

Method: The General City Facilities impact fee is calculated using the City’s service population framework and a three-step process.

First, the capital program is sized to growth. Service population is de�ined as residents plus 0.5 times jobs, re�lecting the fact that General City Facilities support both households and employment. Using existing and buildout residents and jobs, the City’s existing service population is 14,795.50, and the buildout service population is 35,142.83, with growth of 20,347.33 service population units. This yields a service population growth share of 57.90% (0.579). Each General City Facilities project—City Hall Expansion, General City Vehicle Expansion, City Yard Expansion, and General City Equipment Expansion—is multiplied by this 57.90% growth share to establish its growth-sized cost. The remaining share of each project is attributed to existing development and is expected to be funded 52

Chapter 5 General City Facilities
City of Grand Terrace 2025-26 Development Impact Fee Calculation and Nexus Report from non-impact fee sources. Before allocating costs to land uses, the available General City Facilities development impact fee fund balance of $194,105 is applied as an offset to the growth-sized capital program so that new development is not charged for needs that have already been partially funded.

Second, the growth-sized costs are allocated between new and existing development. Consistent with the City’s land use distribution for this program, 49.0638% of the growth-sized costs are assigned to new development and 50.9362% are assigned to existing development. Only the portion allocated to new development is used to calculate the fee.

Finally, the portion of costs assigned to new development is translated into fee levels by land use.

Growth-related costs are distributed across residential and nonresidential land use categories in proportion to each category’s share of service population at buildout. For residential uses, the resulting burden is �irst expressed on a per dwelling unit basis using persons-per-household factors, then converted into a per square foot fee by applying average dwelling unit sizes in accordance with Assembly Bill 602 (AB-602). For nonresidential development, the service population-based allocation is converted into a cost per square foot of new �loor area using employment density factors.

All calculations are performed using unrounded �igures, with rounding applied only when presenting the fee schedule for adoption, ensuring that the General City Facilities fee is technically sound, equitable, and compliant with state law.

Capital Programs
The City has identi�ied a set of General City Facilities projects that provide the administrative and civic capacity needed to serve the community. These include expansion of City Hall, expansion of the general city vehicle �leet, expansion of City Yard facilities, and expansion of shared general city equipment. Each of these elements represents a major capital investment and will require additional capacity in order to maintain the current level of service as Grand Terrace grows.

The purpose of the capital program is not to introduce new services or higher standards, but to ensure that the City has suf�icient administrative and operational capacity to serve a larger community at the same level of service that is available today. The projects included in the program are drawn from the City’s General City Facilities planning data and expressed in 2025 dollars. Together, they establish the �inancial basis for allocating a fair share of costs to new development based on growth in service population.

The General City Facilities capital program is de�ined as follows:
• City Hall Expansion – additional administrative space to support executive management, �inance, planning, permitting, and other core general city functions. • General City Vehicle Expansion – additions to the general city �leet required to support inspections, �ield visits, interdepartmental travel, and other citywide service activities. • City Yard Expansion – additional yard, storage, and operations space needed to support public works and general government activities.
53

Chapter 5 General City Facilities
City of Grand Terrace 2025-26 Development Impact Fee Calculation and Nexus Report • General City Equipment Expansion – furnishings, �ixtures, technology, and related equipment required to place expanded City Hall and City Yard capacity into service.

Together, these projects represent the capital program for General City Facilities. The cost of providing this program is sized to growth using the service population method described earlier and then allocated to new development based on its share of potential land uses within the City. The growth-related share assigned to new development is subsequently distributed across land use categories in proportion to each category’s share of service population at buildout.

The following section outlines the individual capital projects that comprise the City’s General City Facilities program. Each project corresponds to one of the City’s major administrative or operational needs and is presented with a project identi�ier, title, description, and key details. These descriptions are intentionally high-level to provide �lexibility in implementation, focusing on the function of the improvement rather than prescriptive design features. All project costs are stated in 2025 dollars, with timing assumed to fall within the 2026–2036 planning horizon.

General City Facilities Projects
Project ID: GG-001
Project Title: City Hall Expansion/Modernization
Project Description: Remodel and expand City Hall to increase administrative capacity and ensure the building can accommodate a larger service population. Improvements may include recon�iguring of�ice and meeting space, upgrading technology systems to support digital permitting and �inancial operations, enhancing public counters to serve more customers, and modernizing core building systems such as HVAC, communications, and energy ef�iciency. The project is intended to maintain the City’s established level of General City Facilities service as Grand Terrace grows, rather than to introduce a higher standard.

Size: To be determined based on �inal space planning and design.

Location: City Hall
Total Cost: $5,356,034
New Development Share (49.06%): $2,627,876
Existing Development Share (50.94%): $2,728,158
Timing: 2026–2036
54

Chapter 5 General City Facilities
City of Grand Terrace 2025-26 Development Impact Fee Calculation and Nexus Report Project ID: GG-002
Project Title: General City Vehicle Expansion
Project Description: This project expands the City’s general-purpose administrative and support vehicle �leet to maintain the established level of service as Grand Terrace’s service population grows.

General City vehicles support a wide range of activities, including inspections, interdepartmental travel, site visits, community response, internal logistics, and citywide operational support. Growth in residential and nonresidential development increases the workload for administrative and �ield personnel, requiring additional vehicles to sustain current service levels. The project provides for the acquisition of new vehicles sized to the City’s projected service population growth.

Size: TBD
Location: Citywide
Total Cost: $193,676
New Development Share (49.06%): $95,025
Existing Development Share (50.94%): $98,651
Timing: 2026–2036
Project ID: GG-003
Project Title: City Yard Expansion
Project Description: This project expands City Yard facilities to maintain operational and storage capacity as Grand Terrace’s service population grows. The City Yard supports public works and general government activities, including materials storage, equipment and vehicle staging, and �ield operations support. As development adds residents and employment, demand increases for inspections, maintenance, and other �ield services, which in turn requires additional yard space to sustain the established level of service. Improvements may include expanded covered and uncovered yard areas, additional storage, circulation and access improvements, and related site work.

Size: Additional yard and storage area sized to service population growth (to be determined at design).

Location: City Yard Facilities
Total Cost: $870,758
New Development Share (49.06%): $427,227
Existing Development Share (50.94%): $443,531
Timing: 2026–2036
55

Chapter 5 General City Facilities
City of Grand Terrace 2025-26 Development Impact Fee Calculation and Nexus Report Project ID: GG-004
Project Title: General City Equipment Expansion
Project Description: This project provides additional general city equipment to support expanded administrative and operational capacity as the community grows. General City equipment includes shared furnishings, �ixtures, information technology, communications hardware, and other of�ice and operational equipment necessary to place expanded City Hall and City Yard capacity into service. As new development increases the City’s service population, additional workstations, meeting spaces, technology, and related equipment are needed to maintain the City’s current level of administrative and operational service.

Size: Additional equipment and furnishings sized to service population growth (to be determined at implementation).

Location: City Hall, City Yard, and other general city administrative and operational locations.

Total Cost: $267,802
New Development Share (49.06%): $131,394
Existing Development Share (50.94%): $136,408
Timing: 2026–2036
Capital Program Summary: Together, the projects described above represent the City’s General City Facilities capital program. These improvements provide for the proportional expansion and modernization of the City Hall facility, the general city vehicle �leet, the City Yard, and the shared general city equipment necessary to accommodate a larger service population. The program is designed to maintain—not enhance—the City’s existing level of administrative and operational service as Grand Terrace grows.

Each project is sized to growth using the City’s service population methodology, ensuring that only the growth-related share of costs is carried forward. That growth-related share is then allocated between existing and new development based on their respective shares of existing and potential land uses, so new development funds only its proportional share while the existing community remains responsible for the balance.

Allocation of Project Costs
The cost of the General City Facilities capital program is allocated between existing and new development based on the City’s adopted land use distribution. As described in the Method section, the overall size of the program is �irst determined by applying the service population growth share to the City’s existing General City Facilities inventory. Using the corrected service population totals, 56

Chapter 5 General City Facilities
City of Grand Terrace 2025-26 Development Impact Fee Calculation and Nexus Report the growth share is 57.90% (0.579). Each project is multiplied by this growth share to establish its growth-sized cost.

The resulting growth-sized costs are then allocated between new and existing development using the land use split for this program. Consistent with Grand Terrace’s existing and potential land use distribution, 49.06% of growth-sized costs are assigned to new development and 50.94% are assigned to existing development. This approach recognizes that while the program is sized for growth using the service population, the fair-share division of that growth-related cost re�lects the proportional shares of existing and potential land uses in the City.

Applying these proportions to the estimated cost of each project yields the following allocations (2025 dollars, rounded to whole dollars for presentation):
• City Hall Expansion/Modernization has a total growth-sized cost of $5,356,034, of which $2,627,876 is allocated to new development and $2,728,158 to existing development. • General City Vehicle Expansion has a total growth-sized cost of $193,676, with $95,025 allocated to new development and $98,651 to existing development. • City Yard Expansion has a total growth-sized cost of $870,758, with $427,227 allocated to new development and $443,531 to existing development.
• General City Equipment Expansion has a total growth-sized cost of $267,802, with $131,394 allocated to new development and $136,408 to existing development.

In total, the growth-sized General City Facilities capital program amounts to $6,688,269 in 2025 dollars. Of this amount, $3,281,522 is attributable to new development, while $3,406,747 is assigned to the existing community. Before fees are calculated, the existing General City Facilities development impact fee fund balance of $194,105 is applied as an offset to the new-development share of the program. Accordingly, the net cost to be recovered from new development through this fee update is $3,087,417.

This allocation ensures that new development contributes only its proportionate share of the cost of expanding General City Facilities, consistent with the Mitigation Fee Act and Assembly Bill 602 (AB602), while existing residents and businesses continue to support the costs associated with their current use of these facilities.

Derivation of Maximum Justi�ied Fees
The maximum justi�ied General City Facilities fees are derived by starting with the growth-related share of the capital program and then translating that cost into fee levels by land use. As described in the Allocation of Project Costs section, each General City Facilities project—City Hall Expansion, General City Vehicle Expansion, City Yard Expansion, and General City Equipment Expansion—is �irst sized to growth using the service population method and then split between new and existing development using the adopted land use distribution (49.06% to new development and 50.94% to existing development). Summing across the four projects produces the total General City Facilities 57

Chapter 5 General City Facilities
City of Grand Terrace 2025-26 Development Impact Fee Calculation and Nexus Report capital program attributable to new development. Before calculating fees, the existing General City Facilities development impact fee fund balance of $194,105 is applied as an offset to this total, reducing the amount that must be recovered from future development. The resulting net newdevelopment cost, expressed in 2025 dollars, represents the total capital burden that the fee program is designed to recover from new growth.

Once the net new-development cost is established, it is allocated across land use categories in proportion to each category’s share of the City’s service population at buildout. Service population, de�ined as residents plus 0.5 times jobs, captures the way General City Facilities serve both households and employment. Residential land uses receive a share of the net new-development cost based on their contribution to total service population, and nonresidential land uses receive a corresponding share based on the service population associated with employment in those categories. This ensures that each land use is responsible for only the portion of the capital program that is reasonably related to the administrative and civic demand it creates.

For residential development, each land use category’s allocated cost is then converted into a fee by dividing the allocated cost by the projected net increase in dwelling units and subsequently converting the result into a per–square foot fee using the City’s adopted average dwelling sizes, consistent with Assembly Bill 602 (AB-602), which requires residential development impact fees to be stated on a per–square foot basis. For nonresidential development, each category’s allocated cost is divided by the projected net increase in nonresidential �loor area to produce a fee stated in dollars per square foot of new building space. All calculations are performed using full-precision values in the model, with rounding applied only when presenting the fee schedule for adoption. In this way, the General City Facilities fees are derived directly from the growth-related capital costs, allocated in proportion to service population, and expressed in fee units that are consistent with state law and the City’s land use data, without introducing intermediate fee-per-service-population metrics that are not used in the actual calculations.
[This space left blank to fit the following table on one page.] 58

Chapter 5 General City Facilities
City of Grand Terrace 2025-26 Development Impact Fee Calculation and Nexus Report Table 5-1
Allocation of Development Cost Per Land Use
Land Use
General City
Service
Demand by
Acre
Maximum Justified
Fee
Single Family Detached 1,023.56 $0.321/SF
Multi-Family Attached 207.40 $0.132/SF
Manufactured/Mobile Homes 1.00 $0.248/SF
General Commercial 165.25 $0.128/SF
Office Commercial 31.91 $0.128/SF
Industrial 147.10 $0.150/SF
Existing Community Financial Commitment Comparison
The City of Grand Terrace has already made substantial �inancial commitments toward its General City Facilities system. These commitments are re�lected in the existing replacement values for City Hall, the general city vehicle �leet, City Yard facilities, and shared general city equipment, which together represent an estimated $11,551,415 in 2025 replacement cost. This amount captures the value of the current portfolio of administrative and operational assets that serve today’s residents and businesses.

By comparison, based on the corrected service population growth share, the growth-sized General City Facilities capital program totals $6,688,269. Of this amount, $3,281,522 is allocated to new development based on the City’s potential land-use share. After applying the existing General City Facilities development impact fee fund balance of $194,105 as a credit, the net share of the capital program to be funded by new development is $3,087,417, which represents 46.162% of the growthsized capital program.

This comparison demonstrates that the existing community has funded the majority of the General City Facilities system, and that new development is being asked to contribute only a proportional share necessary to accommodate its fair impact. The City’s approach avoids shifting existing de�iciencies onto new development while ensuring that future residents and employees will continue to receive the same standard of administrative and civic service as today’s community. 59

Chapter 5 General City Facilities
City of Grand Terrace 2025-26 Development Impact Fee Calculation and Nexus Report Table 5-2
Allocation of Existing Cost per Land Use
Land Use
General City
Service
Demand by
Acre
Existing Financial
Commitment Per SF
Single Family Detached 999.56 $1.240/SF
Multi-Family Attached 180.18 $0.804/SF
Manufactured/Mobile Homes 31.57 $0.707/SF
General Commercial 152.85 $0.465/SF
Office Commercial 34.71 $0.458/SF
Industrial 237.50 $0.549/SF
Fee Schedule and Summary
Based on the cost of the growth-sized General City Facilities capital program and the allocation of those costs to new development, the City has determined the maximum justi�ied General City Facilities impact fee for each land use category. The fee is structured to ensure that new development contributes a fair and proportionate share of the costs associated with expanding City Hall, the general city vehicle �leet, City Yard facilities, and shared general city equipment so that the existing level of administrative and civic service is maintained as the community grows. Consistent with the requirements of Assembly Bill 602 (AB-602), residential fees are presented on a per–square foot basis, derived from per–dwelling unit calculations using the City’s adopted average dwelling sizes.

Nonresidential fees are also stated on a per–square foot basis, re�lecting the broad, shared manner in which General City Facilities support commercial and employment activity across all nonresidential land uses.

The resulting fee schedule applies the same underlying methodology described in this chapter, translating each land use’s allocated share of the net new-development cost into a fee per unit of development that is reasonably related to the demand it creates. The following table presents the maximum justi�ied General City Facilities impact fees by land use category. The City Council may adopt fees up to these amounts; adopting fees below the maximum justi�ied levels is a policy choice and would result in less than full cost recovery of the new development share of General City Facilities.
60

Chapter 5 General City Facilities
City of Grand Terrace 2025-26 Development Impact Fee Calculation and Nexus Report Table 5-3
Summary of Proposed Development Impact Fees
Land Use Per SF
Single Family Detached $0.321/SF
Multi-Family Attached $0.132/SF
Manufactured/Mobile Homes $0.248/SF
General Commercial $0.128/SF
Office Commercial $0.128/SF
Industrial $0.150/SF
Current General City Facilities Development Impact Fees The City of Grand Terrace currently imposes a General City Facilities development impact fee only on residential development. As shown in the City’s adopted residential fee schedule, the existing General City Facilities fee is charged at a �lat rate of $1,102 per dwelling unit, applied equally to both detached and attached residential units. No General City Facilities impact fee is presently charged on nonresidential development.

The City accounts for these revenues in the Facilities Development special revenue fund. According to the City’s most recent Annual Comprehensive Financial Report (ACFR) for the �iscal year ended June 30, 2024, this fund reported an ending restricted fund balance of $194,105. This balance represents prior contributions from new residential development that are available to support eligible General City Facilities capital projects.

This nexus study updates and expands the program so that General City Facilities costs are allocated across both residential and nonresidential land uses in proportion to their service population. The resulting fee schedule replaces the existing residential-only structure with a set of maximum justi�ied fees by land use category, while recognizing the current Facilities Development fund balance as an offset to the new-development share of the capital program.

Five Findings

1. Purpose of the Fee
The purpose of the fee is to fund the expansion and modernization of General City Facilities— including City Hall, the general city vehicle �leet, City Yard facilities, and shared general city 61

Chapter 5 General City Facilities
City of Grand Terrace 2025-26 Development Impact Fee Calculation and Nexus Report equipment—necessary to maintain the City’s established level of administrative and civic service as new development increases the service population.

2. Use of the Fee
Fee revenues will be used to �inance the General City Facilities capital projects identi�ied in this study. Eligible uses include remodeling and expanding City Hall, adding general city vehicles to support administrative and �ield operations, expanding City Yard capacity, and acquiring the equipment and technology needed to place this expanded capacity into service.

All expenditures are limited to growth-related capital costs and may not be used for operations or routine maintenance.

3. Relationship Between Fee’s Use and Type of Development New development generates an increase in service population—through added residents and employment—which in turn increases the demand placed on the City’s General City Facilities.

Fee revenues will be used to expand General City Facilities capacity so that administrative and civic services remain available at the existing standard as the community grows. In this way, the use of the fee is directly related to the impacts of the development on the City’s general government system.

4. Relationship Between the Need for Facilities and the Type of Development The need for expanded General City Facilities arises directly from growth in residents and jobs. As the service population increases, additional administrative space, vehicles, yard capacity, and general city equipment are required to continue delivering existing levels of service. By allocating the growth-related portion of the General City Facilities capital program in proportion to each land use category’s share of service population at buildout, the fee ensures that each type of development contributes in accordance with the demand it creates.

5. Relationship Between Amount of the Fee and Cost Attributable to Development The amount of the fee is calculated by dividing each land use category’s allocated share of the net new-development cost of the General City Facilities capital program by the corresponding measure of new development (dwelling units and residential square footage for residential uses, and building square footage for nonresidential uses). Residential fees are expressed on a per–square foot basis consistent with Assembly Bill 602 (AB-602), and nonresidential fees are expressed on a per–square foot basis as well. This structure ensures that no land use is charged more than its proportional share of the cost of facilities needed to serve growth.

Implementation and Compliance Notes
Adoption and Program Structure: The City will update and readopt the General City Facilities development impact fee (DIF) by Council action upon adoption of this nexus study. The City will continue to impose, collect, and administer the fee as an existing component of its development impact fee program. Fee revenues remain restricted to eligible General City Facilities improvements 62

Chapter 5 General City Facilities
City of Grand Terrace 2025-26 Development Impact Fee Calculation and Nexus Report identi�ied in this study, including the expansion, remodel, or modernization of City Hall, the general city vehicle �leet, City Yard facilities, and general city equipment required to maintain service levels for the growing community.

Fund Accounting and Reporting: The City will continue to maintain the existing General City Facilities DIF fund/account. All fee revenues (and interest) will remain deposited into this account and expended only for the purposes identi�ied in this study. The City will continue publishing the annual AB-1600 report (Gov. Code §66006) and making the required �ive-year �indings for any unexpended balance (Gov. Code §66001(d)). If the City cannot make the required �ive-year �indings, any remaining balances must be refunded as provided by law.

Administration and Schedule Management: Fees are due at the time of building permit issuance.

The fee schedule shall be indexed annually to an appropriate construction-cost index, such as the Engineering News-Record (ENR) Building Cost Index. The City will maintain a public, up-to-date fee schedule and post the nexus study and schedule on its website for transparency.

Use of Funds (Eligibility): Expenditures are limited to the growth-related share of projects that add General City Facilities capacity. Eligible uses include planning, land acquisition (if needed), design, permitting, construction, remodel, and expansion of City Hall and City Yard facilities, acquisition of additional general city vehicles, and the purchase of furnishings, equipment, and technology systems directly tied to growth. Expenditures for like-for-like replacements that do not add capacity, as well as staf�ing, operations, or general government service costs, are not eligible.

Program Applicability: Fees apply to net new development (additions minus removals) as de�ined in this study. The City may program General City Facilities DIF revenues anywhere in the city where a listed project maintains the established level of administrative and civic service for the community.

End of Chapter
63

Chapter 6
Public Use (Community Centers) Facilities
Purpose and Scope
Purpose: This chapter establishes the Public Use Facilities development impact fee so that new residential development contributes its fair, proportional share of the capital facilities needed to serve additional residents. The program maintains the City’s existing level of service for public use facilities and multi-purpose recreation space by funding the construction and expansion of community center building space and the on-site improvements necessary to place that space into service. Revenues are deposited in a dedicated account and used solely for eligible Community Center capital facilities, consistent with the Mitigation Fee Act and AB-602. In accordance with AB-602, residential fees are expressed on a per square foot basis to re�lect proportional demand by unit size.

Scope of Improvements: Public Use Facilities include the construction, expansion, or relocation of community centers, meeting halls, and other public buildings that provide civic and recreational gathering space for residents. Eligible improvements include new or expanded community center buildings, core building systems, interior build-out, and related on-site improvements required to put those buildings into service (such as utility connections, access and circulation improvements, and code-triggered upgrades associated with expansions or renovations). Land acquisition associated with community center facilities is eligible when it is required to deliver the building program.

This program also includes the relocation and construction of a new Library facility, intended to provide dedicated space for Library functions currently housed within City Hall. For Library facilities, the City owns the building space while the County operates Library services. Impact fee revenues may be used only for capital building improvements and required site work (e.g., acquisition, construction, expansion, core systems, interior build-out, and necessary utility and access improvements) and may not be used for operations, programming, staf�ing, collections/materials, or other non-capital costs.

The Public Use Facilities program does not fund operations, routine maintenance, stand-alone repairs unrelated to growth, movable equipment, or non-community-center facilities. Park and outdoor recreation facilities are addressed separately under the City’s Parks Development Impact Fee.

Scope of Bene�iciaries: This fee applies to residential development only. Demand for Public Use Facilities (community centers and the relocated Library) is population-based, arising from household growth measured by persons-per-household (PPH) and translated into a square-feet-per-resident service standard. A defensible, proportional linkage to nonresidential �loor area is not established for this facility type, so nonresidential development is excluded.

Limiting the fee to residential development narrowly tailors the charge to demonstrated demand and maintains proportionality. The program is calibrated so that growth funds only its share of facilities required to serve new residents, thereby maintaining the City’s established level of service for both new and existing residents. Existing development is not charged for existing de�iciencies or past shortfalls.
64

Chapter 6 Public Use Facilities
City of Grand Terrace 2025-26 Development Impact Fee Calculation and Nexus Report Credits or reimbursements are available where an applicant constructs eligible Public Use Facilities improvements or dedicates eligible land accepted by the City, consistent with this chapter.

Scope of Nexus: New residential development increases population, which in turn increases demand for multi-purpose public meeting space and Library services. The program measures that demand using the City’s existing service standard expressed in square feet per resident and sizes the growth share as the additional building area required to maintain that standard as development occurs.

The use of fee revenues is limited to capital facilities that add or expand Community Center and Library building space to serve residents; the fee is not used to rehabilitate or replace existing facilities without capacity expansion. Because the City’s empirical demand evidence is residentbased, the fee applies to residential development only.

The amount of the fee bears a reasonable relationship to development’s share of cost. The study converts the service standard into a cost per person by applying unit costs per building square foot (construction and land), then translates that to a per-residential-square-foot schedule and allocates by housing type to re�lect proportional demand. All calculations are performed at full precision in the model; values displayed in this chapter may be rounded for readability (e.g., currency to whole dollars).

Existing System
Assets and Infrastructure: Grand Terrace’s Public Use Facilities consist of indoor civic buildings that host public meetings, youth and senior programming, classes, cultural events, and drop-in recreation.

These facilities are purpose-built, climate-controlled spaces—multi-purpose rooms, classrooms, support areas, restrooms, storage, and administrative space—paired with the on-site improvements necessary to place them into service (e.g., access/circulation and utility connections). Unlike park acreage or library collections, Public Use Facilities are measured by building square footage because the service being delivered is fundamentally usable space capacity for people and programs.

Given the City’s smaller system, facilities are limited in number and program mix; the inventory nonetheless provides essential community meeting capacity and establishes the level of service (LOS) used in this chapter. The total existing building inventory is 36,575 square feet. The detailed facility inventory—including community center space and the City-owned Library building space—is presented in Table 6-1, which serves as the audit trail for the LOS calculation (square feet per resident) used later in this chapter. For readability, square footage values in Table 6-1 may be shown as whole numbers; any minor differences are due solely to display rounding. [This space left blank to fit the following table on one page.] 65

Chapter 6 Public Use Facilities
City of Grand Terrace 2025-26 Development Impact Fee Calculation and Nexus Report Table 6-1
Public Use Facilities Existing
Land Use Square Feet
Lions Club Community Center 21,985
Blue Mountain Vill Community Center 11,290
Library 3,300
Total 36,575
Existing Financial Commitment: To illustrate the scale of the City’s prior investment in Public Use Facilities, the planning-level replacement value of the current building inventory is estimated as follows.

This estimate represents what it would cost to replace the existing facilities in their current form and does not indicate a funding obligation or form part of the fee calculation basis.

A. Construction Component
• Inventory for replacement-value analysis: 36,575 SF
• Replacement construction cost per building SF: $450.00 • Estimated replacement construction value: $16,458,750 (calculation: 36,575 SF × $450/SF = $16,458,750)
B. Land Component
• Land cost per building SF (based on $1,235,565 per acre @ 0.33 FAR): $85.95 • Estimated land value for existing sites: $3,143,621
(calculation: 36,575 SF × $85.95/SF = $3,143,621)
C. Total Planning-Level Replacement Value
• Combined construction + land value: $19,602,371
(calculation: $16,458,750 + $3,143,621 = $19,602,371)
This replacement-value estimate provides context for the magnitude of the existing system; it does not create an obligation to replace existing facilities with fee revenues. New development pays only its proportional share to maintain the current service standard as growth occurs. Credits or reimbursements are available where an applicant constructs eligible Public Use Facilities improvements or dedicates eligible land accepted by the City, ensuring payers are not charged twice. 66

Chapter 6 Public Use Facilities
City of Grand Terrace 2025-26 Development Impact Fee Calculation and Nexus Report Growth and Demand
Method: The program maintains the City’s existing public meeting/Library building space per resident standard. The service standard used in the model is 2.799 square feet per resident, derived from the documented inventory (36,575 SF) and current resident population (13,069). This LOS is held constant for growth, so new residential development funds the additional building area required to preserve today’s service level for both new and existing residents. In the model, required new space is calculated as net-new residents × 2.799 SF per resident, and is priced using the unit cost components established elsewhere in this chapter.

Cost Basis: The cost of Public Use Facilities building space is priced per building square foot and consists of construction and land components. Calculations are performed at full precision in the model; values are displayed to 3 decimals for publication.

A) Construction Cost (2025 dollars): $450 per building SF Origin. The City’s prior public building construction basis, from the 2005–2006 Grand Terrace Development Impact Fee Nexus Study, was $250 per SF.

Escalation Method (ENR BCI). The historical basis is escalated to 2025 using the Engineering NewsRecord (ENR) Building Cost Index (BCI):
• Base construction cost (2005–2006): $250/SF
• ENR BCI (2025): 13,914
• ENR BCI (2005–2006): 7,722
• Escalation factor: 1.802 (= 13,914 ÷ 7,722)
• Resulting 2025 planning value: $450/SF (= 250 × 1.802, rounded) Formula. 2025 construction cost = 2005–2006 construction cost × (ENR BCI 2025 ÷ ENR BCI 2005– 2006).

B) Land Cost (2025 dollars): $85.95 per building SF
Approach. The City developed a Grand Terrace–speci�ic land basis using local market evidence suitable for civic use (recent listings/offerings and market indications). Candidate sites were screened to re�lect market-rate transactions between independent parties and to exclude internal transfers, distressed or subsidized sales, atypical encumbrances, speculative assemblages, or other non-market conditions. Each candidate was normalized to dollars per acre, converted to dollars per square foot of land, and then to dollars per square foot of building using a 0.33 �loor area ratio (FAR) appropriate for single-story/low-rise civic buildings with parking and circulation.

Planning value and conversion.
• Adopted land cost per acre: $1,235,565 per acre
67

Chapter 6 Public Use Facilities
City of Grand Terrace 2025-26 Development Impact Fee Calculation and Nexus Report • Per land SF: $1,235,565 ÷ 43,560 = $28.36 per land SF • Per building SF (at FAR 0.33): $28.36 ÷ 0.33 ≈ $85.95 per building SF FAR Source. The 0.33 FAR assumption is consistent with the City’s 2005–2006 Nexus Study treatment for community center sites.

Documentation. The detailed comparable set, screening notes, and conversions are provided in Appendix H.

C) Total Unit Cost (2025 dollars): $535.95 per building SF • Construction: $450/SF
• Land: $85.95/SF
• Total: $535.95/SF
Calculation Framework

1. Convert units to residents. Net-new dwelling units are converted to net-new residents using the City’s persons-per-household by housing type.

2. Size required building area. Required space for growth is calculated as net-new residents ×

2.799 SF per resident (the City’s service standard).

3. Price the requirement. The required space is priced at $535.95 per building SF. Equivalently, the cost per additional resident is 2.799 × $535.95 = $1,500.13 (display value).

4. Express fees. Residential fees are expressed per residential square foot by housing type; the resulting schedule and revenue projection are presented in later sections.

Calculations are performed at full precision in the model; values are displayed at 3 decimals for publication (LOS shown as 2.799).

Required Building Area: To maintain the City’s service standard for Public Use Facilities, the required building area for growth is calculated as (net-new residents × service standard). • Growth population (net-new residents): 18,931.33
• Service standard (SF per resident): 2.799
• Required building area: 18,931.33 × 2.799 = 52,988.79 SF This �igure represents the additional building space needed to serve growth while preserving the existing level of service. Cost applications (construction and land) are addressed separately and are not included here.
68

Chapter 6 Public Use Facilities
City of Grand Terrace 2025-26 Development Impact Fee Calculation and Nexus Report Fee Nexus and Allocation
Basis of Proportionality: New residential development adds population that uses Public Use Facilities. To maintain the City’s 2.799 square feet per resident standard, the number of net-new residents is multiplied by 2.799 to determine the required building space, which is then priced using the unit costs set out in this chapter. Fees are expressed per residential square foot so that larger homes (greater �loor area/occupancy) pay proportionally more. The fee applies to residential development only; a defensible proportional linkage to nonresidential �loor area is not established for this facility type.

Allocation by Housing Type: Fees are calibrated by housing type using the City’s persons-perhousehold and average unit size inputs, aligning payments with the relative demand each housing type places on Public Use Facilities while maintaining the same service standard for both new and existing residents.

Residential Fee Schedule (per square foot of unit �loor area): Fees are charged per residential square foot at building permit. Rates re�lect the established 2.799 SF per resident standard and the cost basis de�ined in this chapter. The fee applies to residential development only.

Table 6-2
Summary of Proposed Development Impact Fees
Land Use Fee Per SF
Single Family Detached $2.426/SF
Multi-Family Attached $4.286/SF
Manufactured/Mobile Homes $3.764/SF
Revenue Projection
Using the adopted per-residential-square-foot schedule and the model’s growth residential �loor area, the maximum Public Use Facilities fee revenue at buildout is:
• Single Family Detached: 3,235 units × $4,680.42 (model) $15,141,152 • Multi-Family Attached: 3,801 units × $3,480.31 (model) $13,228,661 • Manufactured/Mobile Homes: 7 units × $4,245.38 (model) $29,718 Total (to the dollar): $28,399,531
Calculations are performed at full precision in the model; values are displayed to whole dollars for publication. Minor rounding differences may occur—the total controls. 69

Chapter 6 Public Use Facilities
City of Grand Terrace 2025-26 Development Impact Fee Calculation and Nexus Report Capital Program and Use of Funds
Impact fee revenues are restricted to capital improvements that add building capacity for Public Use Facilities. Eligible uses include planning, design, permitting, construction, interior build-out, and onsite improvements necessary to place new or expanded space into service (e.g., access/circulation and utility connections). Land acquisition is eligible when required to deliver the building program.

Fees may not be used for operations, routine maintenance, or like-for-like replacements that do not increase capacity. Funds may be programmed citywide wherever projects maintain the established service standard for residents. Credits or reimbursements will be provided where an applicant constructs eligible improvements or dedicates eligible land accepted by the City.

This program also includes Library building space. The City owns Library building facilities while County staff operate Library services; impact fee revenues may be used only for Library building capital (e.g., construction or relocation of a dedicated Library facility and required site work), not for operational services or materials.

To translate the growth requirement into deliverable capital work, the program identi�ies a scoped, fundable capital action as the vehicle for adding building square footage. The growth-related space may be implemented through additions at existing centers and/or a new multi-purpose facility, and may include the relocation and construction of a dedicated Library building. Final siting, phasing, and packaging will be determined during capital planning to maintain the City’s established level of service.

Public Use Facilities Projects
Project ID: PF-001
Project Title: Public Use Space Expansion
Description: This project expands Public Use building space to accommodate additional residents and maintain the City’s service standard of 2.799 square feet per resident. The scope includes planning, design, permitting, construction, interior build-out, and the on-site improvements necessary to place the space into service (e.g., access/circulation and utility connections). The expansion may be delivered through additions at existing centers and/or construction of a new multipurpose facility. The project provides 52,989 square feet of new building capacity identi�ied in the growth analysis, ensuring that the City’s level of service is maintained as development occurs.

Size: 52,989 square feet (growth-related building expansion) Location: To be determined
New Development Share: 100% – $28,399,531 (funded with Public Use Facilities Impact Fees) Existing Community Share: 0% – $0 (non-growth cost, funded from other sources) 70

Chapter 6 Public Use Facilities
City of Grand Terrace 2025-26 Development Impact Fee Calculation and Nexus Report Total Cost: $28,399,531
Timing: 2026-2036
Current Public Use Facilities Development Impact Fee
The City of Grand Terrace currently levies a Public Use Facilities development impact fee only on residential development. As shown in the City’s adopted residential development impact fee schedule, the existing Public Use Facilities fee is set at $674 per detached dwelling unit and $422 per attached dwelling unit. No Public Use Facilities impact fee is imposed on nonresidential development, and this nexus study maintains the existing policy that Public Use Facilities fees apply only to residential development.

Public Use Facilities fee revenues are presently recorded within the City’s Facilities Development special revenue fund, which also serves as the accounting home for General City Facilities development impact fees. Historically, the City has pooled facilities-related impact fee revenues into this single fund rather than maintaining separate fund balances by program. As a result, the current Public Use Facilities balance is held within the broader Facilities Development (General City Facilities) fund rather than being tracked as a standalone Public Use Facilities balance.

As part of this nexus study, RCS recommends that the City discontinue commingling Public Use Facilities and General City Facilities fee revenues within a single fund balance. To strengthen compliance with the Mitigation Fee Act—including the Act’s requirements for clear identi�ication of each fee program’s revenues, expenditures, and fund balances—it is further recommended that the City establish and maintain separate restricted funds or restricted accounts for each program.

Separating these balances will improve transparency and help ensure that each program’s revenues are used solely for the eligible capital improvements identi�ied for that speci�ic program in this study.

Administrative Provisions
Applicability and Collection: The Public Use Facilities fee applies to net-new residential �loor area.

Fees are calculated using the per-residential-square-foot schedule by housing type and collected at building permit (or as otherwise speci�ied by City ordinance). Additions are charged on the incremental square footage; demolitions and removals are credited, so applicants are charged only for net increases. Change-of-use situations are addressed by applying the schedule to the net change in residential �loor area.

Indexing and Price Date: Published rates re�lect 2025. Following adoption, the fee is indexed annually to preserve purchasing power. The construction component is adjusted using the City’s adopted Engineering News-Record (ENR) Building Cost Index (BCI) or successor index. The land component is not indexed by ENR; updates to land cost rely on current appraisals and documented comparable acquisitions/listings accepted by the City. Published rates re�lect the current index year; the City’s model retains full-precision calculations.
71

Chapter 6 Public Use Facilities
City of Grand Terrace 2025-26 Development Impact Fee Calculation and Nexus Report Use of Funds: Revenues are restricted to capital improvements that add building capacity, including planning, design, permitting, construction, interior build-out, and on-site improvements required to place space into service (e.g., access/circulation and utility connections). Land acquisition is eligible when required to deliver the building program. This program also includes Library building space; the City owns Library building facilities while County staff operate Library services. Fee revenues may be used only for Library building capital (e.g., construction or relocation of a dedicated Library facility and required site work), not for operational services or materials. Funds may be programmed citywide where projects maintain the established service standard.

Credits and Reimbursements: Where an applicant constructs eligible Public Use Facilities improvements or dedicates eligible land accepted by the City, the applicant is entitled to a credit or reimbursement up to the lesser of: (a) the actual, documented cost of the eligible improvement/land, or (b) the value recognized by this program for the same scope. Credits require a written agreement, apply only to the same project and program, and may not exceed the fee otherwise due. The City may require plans, invoices, appraisals, and other documentation to substantiate eligibility and value.

Adjustments and Appeals: An applicant may request an individualized fee adjustment by submitting substantial evidence (e.g., an independent fee study, current appraisal for land, or other technical documentation) demonstrating that the development’s demand or characteristics differ materially from the assumptions used in this chapter. The City will review the submission and may approve an adjustment to ensure the fee remains proportional.

Fund Accounting and Reporting: All revenues and expenditures are tracked in a separate account for Public Use Facilities. The City will complete required annual and periodic �indings and reporting for impact fees, including identifying balances, interest earnings, commitments, and project expenditures, and will make the �indings available consistent with applicable law.

Effective Date and Transition: The fee applies to projects deemed complete (or receiving building permits) on or after the effective date of the adopting ordinance, subject to any City-adopted transition provisions. Previously paid fees, credits, or development agreements remain in effect pursuant to their terms.

Rounding and Precision: Calculations are performed at full precision in the City’s model. For publication, all currency values are displayed to whole dollars, per-residential-square-foot rates are displayed to three decimals per SF, and the level of service is shown as 2.799 SF per resident. Any minor differences are solely due to display rounding — the total controls.

Five Findings

1. Purpose of the Fee
The purpose of the fee is to fund the expansion of Public Use Facilities building space (community centers and City-owned Library building space) necessary to maintain the 72

Chapter 6 Public Use Facilities
City of Grand Terrace 2025-26 Development Impact Fee Calculation and Nexus Report City’s established level of service as new residential development adds population that uses public meeting and Library space.

2. Use of the Fee
Fee revenues will be used to �inance capital building improvements that add capacity, including planning, design, permitting, construction, interior build-out, and on-site improvements required to place space into service (e.g., access/circulation and utility connections). Land acquisition is eligible when required to deliver the building program.

Funds are not used for operations or routine maintenance.

3. Relationship Between Fee’s Use and Type of Development New residential development increases population, which increases demand for Public Use Facilities. Fee revenues will be used to add building capacity that serves those residents.

Because the empirical demand is resident-based, the fee applies to residential development only; a proportional linkage to nonresidential �loor area is not established for this facility type.

4. Relationship Between Need and Type of Development
The need for expanded facilities arises directly from new residents. The City’s service standard is 2.799 square feet per resident. Applying this standard to the net-new population of 18,931 results in 52,989 square feet of required building area to maintain the existing level of service as development occurs.

5. Relationship Between Amount of Fee and Cost Attributable to Development The fee amount is derived by applying the unit cost of $535.95 per building square foot (construction plus land) to the 52,988.79 square feet of growth-required Public Use Facilities space, yielding a total growth cost of $28,399,531. This cost is then apportioned to residential development in proportion to demand by housing type, using persons-perhousehold and average residential unit size to translate the 2.799 square feet per resident service standard into a per-residential-square-foot schedule. Expressed as rates to three decimals, the resulting schedule is $2.426/SF for Single Family Detached, $4.286/SF for Multi-Family Attached, and $3.764/SF for Manufactured/Mobile Homes. This structure ensures that each housing type pays no more than the cost reasonably attributable to the demand it generates to maintain the City’s established level of service.

End of Chapter
73

Chapter 7
Parkland Acquisition and Park Facilities
Purpose and Scope
Purpose: The purpose of this chapter is to update and revalidate the City’s existing Parks Development Impact Fee (DIF) so that new residential development funds its fair, proportional share of parkland acquisition and park facility improvements required to maintain the City’s established level of park service as population grows. This update aligns the fee with current requirements of Assembly Bill 602 (AB-602) and the Mitigation Fee Act (Government Code § 66000 et seq.), ensuring that future development contributes appropriately to the park system’s capacity to serve residents.

Requirements under the Quimby Act (Government Code § 66477) for residential subdivisions remain in effect and are administered separately from this AB-1600 fee.

Scope of Improvements:

Parks improvements funded by the Parks Development Impact Fee include parkland acquisition and capacity-adding park projects that expand the system’s ability to serve residents. Eligible capital uses include parkland acquisition and capacity-adding park improvements, including planning, design, permitting, site preparation, and construction. Improvements may include multi-purpose turf and hardscape areas, courts and �ields, destination playgrounds, restrooms and support buildings, lighting and fencing, internal paths/trailheads within park sites, and on-site accessibility upgrades necessary to place new or expanded park capacity into service. Land acquisition is eligible when required to deliver the park program. Funds may not be used for operations, routine maintenance, or like-for-like replacements that do not increase capacity.

For residential subdivisions, the City administers parkland dedication and/or in-lieu fees under the Quimby Act (Government Code § 66477). Quimby resources may be used to acquire or develop parkland and neighborhood or community park facilities that will serve the subdivision. Use of Quimby for rehabilitation of existing parks is limited to circumstances allowed by statute, including �indings regarding de�iciency within the receiving area, foreseeable use by future subdivision residents, consistency with adopted plans, and an appropriate service radius after a public hearing.

Quimby is administered separately from the non-subdivision Parks Development Impact Fee; credit order and eligible-cost rules are structured to avoid double-counting, with credits provided only by written agreement and not to exceed the fee otherwise due.

Scope of Bene�iciaries: This program is resident-based and applies to residential development citywide. Fees are assessed per square foot of residential �loor area consistent with AB-602. For mixed-use projects, assessments are applied by category, and only the residential component is subject to the Parks fee. Residential categories include Single Family Detached, Multi-Family Attached, and Manufactured/Mobile Homes. Because Parks facilities function as a citywide system, the improvements funded by this program primarily bene�it residents in both new and existing development, maintaining a consistent level of service across all neighborhoods. 74

Chapter 7 Parkland Acquisition and Park Facilities
City of Grand Terrace 2025-26 Development Impact Fee Calculation and Nexus Report Scope of Nexus: For Parks, the nexus is resident-based. New dwelling units generate net-new residents, and those additional residents require park capacity to maintain the City’s established level of service (LOS). Net-new residents are calculated by multiplying new dwelling units by the applicable persons-per-household (PPH) for Single Family Detached, Multi-Family Attached, and Manufactured/Mobile Homes. Required park acreage is then determined by applying the City’s adopted acres-per-1,000-residents standard to the net-new resident total. That acreage is priced using the City’s unit costs per acre for land and park improvements to produce a cost per resident.

The result is translated to a cost per unit using PPH and then to a cost per residential square foot (three decimals) by dividing by the average dwelling square footage for each housing type, consistent with AB-602. For mixed-use development, the calculation applies only to the residential component.

Existing System
This section establishes the baseline park system used to evaluate the level of service and to derive the fee. It documents current inventories, states how LOS is measured, and explains how existing capacity represented by fund balances is treated in the calculations.

Park Inventory: This section establishes the baseline park system used for level of service and fee calculations. The City-owned parkland inventory is presented in Table 7-1, which lists each park by name and acreage and identi�ies the total park capacity used for the level-of-service calculation. The total parkland acreage shown in Table 7-1 re�lects the City’s current holdings and serves as the benchmark that new development must maintain under this program.

Table 7-1
Total Park Inventory
Park Name Acres
Grand Terrace Dog Park 0.62
Griffin Park 1.73
Richard Rollins Park 9.92
Veterans Freedom Park 4.31
TJ Austin Park 1.36
Susan Petta Park 2.30
Equivalent Capacity from Fee Fund Balance1 0.026
Total 20.28 Acres
Treatment of Existing Capacity and Fund Balances: This section explains how existing Parks impact fee resources are treated so that growth pays only its proportional share. Any existing Parks impact fee fund balance is taken from the City’s audited annual �inancial reports (ACFRs) and 1 Footnote: The capacity-equivalent acreage is derived from legacy Parks DIF subledgers using the study’s combined $/acre; calculation and reconciliation are provided in Appendix H. 75

Chapter 7 Parkland Acquisition and Park Facilities
City of Grand Terrace 2025-26 Development Impact Fee Calculation and Nexus Report converted to capacity-equivalent park acres using the combined per-acre cost (fair-market land value plus capacity-adding park improvements) established in this chapter’s cost basis. The resulting capacity is considered already in hand and is netted before allocating remaining costs to new development. Balances are tracked within the City’s accounting system and reconciled to the audited �inancials to maintain a clear audit trail. This treatment ensures new development is not charged for capacity that has already been funded.

Current Level of Service: LOS is measured as acres per one thousand residents. Using the current resident population shown in the study tables, the totals above yield the City’s baseline LOS for the City’s Parks. The fee program is designed to maintain these existing service levels as growth occurs, consistent with the standards adopted in this chapter.

Existing Financial Commitment
This section provides a planning-level indication of the scale of the City’s prior investment in its park system. Because Parks are measured in acres, the replacement-value context is expressed in two components: (1) land value per acre applied to the City’s total parkland, and (2) capacity-adding park improvements per acre applied to developed park acres. This estimate is for context only; it does not create a funding obligation and is not used to derive the fee.

This estimate represents what it would cost to replace the existing facilities in their current form and does not indicate a funding obligation or form part of the fee calculation basis.

A. Land Component
• Total parkland acreage: 20.277 acres (display)
• Land value per acre: $1,100,000
• Estimated land value: $22,304,543
(calculation: 20.277 acres × $1,100,000/acre = $22,304,543) B. Park Improvement Component
• Developed park acres: 20.277 acres
• Park improvements cost per acre: $599,660
• Estimated improvements value: $12,159,220 (model, full precision) • (calculation: 20.277 acres × $599,660/acre = $12,159,220) C. Total Planning-Level Replacement Value
• Combined land and improvements value: $34,463,763
(calculation: $22,304,543 + $12,159,220 = $34,463,763)
76

Chapter 7 Parkland Acquisition and Park Facilities
City of Grand Terrace 2025-26 Development Impact Fee Calculation and Nexus Report Calculations are performed at full precision in the City’s model; acreage is displayed to three decimals and currency to whole dollars, so minor differences may occur if recomputed from displayed �igures — the totals control.

Fund Balance Recognition: Any Parks impact fee fund balance reported in the City’s audited �inancial statements is converted to capacity-equivalent park acres using this chapter’s per-acre land and per-acre improvements costs and recognized as capacity already in hand before allocating remaining costs to growth. For the study year, the equivalent capacity re�lected by the current balance is 0.026 acres (display basis), which is netted prior to assigning new development’s share.

Standards & Application
The City uses two complementary tracks for Parks. For non-subdivision development, the Parks Development Impact Fee (DIF) is applied under the Mitigation Fee Act and expressed per residential square foot consistent with AB-602. For subdivisions, the City administers Quimby parkland dedication and/or in-lieu fees separately. The two tracks are coordinated to maintain the City’s adopted level of park service while avoiding double-counting.

Parks standard — Non-Subdivision (AB-1600 Fee): The non-subdivision Parks DIF maintains the City’s level of service by translating net-new residents into required park acres using the adopted standard of 1.552 acres per 1,000 residents. Required acres are then costed using the study’s peracre land and park improvement unit costs to derive a cost per resident. That cost is converted to a cost per dwelling unit using persons-per-household for Single Family Detached, Multi-Family Attached, and Manufactured/Mobile Homes, and expressed per residential square foot by dividing by the average unit size for each housing type, consistent with AB-602.

Parks standard — Subdivision (Quimby Dedication/Fee): For residential subdivisions, the City may require parkland dedication and/or in-lieu fees under the Quimby Act (Gov. Code § 66477).

Quimby requirements are administered separately from the non-subdivision Parks DIF and rely on the City’s Quimby standard to determine dedication or equivalent in-lieu value. Where statutory conditions are met, Quimby resources may be used to acquire or develop parkland and neighborhood/community park facilities that will serve the subdivision. Quimby credits are sequenced and applied under City rules to ensure the Parks DIF does not double-charge for the same capacity.

Application Rules: For non-subdivision projects, fees are assessed per residential square foot at building permit and calibrated by housing type using the study’s PPH and average unit size inputs.

Mixed-use projects are assessed by category; only the residential component is subject to the Parks DIF. Change-of-use and additions are assessed on the net increase in impact. Quimby applies only to subdivisions and is administered separately from the Parks DIF, with clearly de�ined crediting to prevent double-counting.
77

Chapter 7 Parkland Acquisition and Park Facilities
City of Grand Terrace 2025-26 Development Impact Fee Calculation and Nexus Report Growth and Demand
This section quanti�ies the additional Parks system capacity required to maintain the City’s adopted level of service as development occurs. The calculation applies the study’s standards to net-new residents and identi�ies the resulting park acres required to serve growth.

Parks: Based on net-new residents of 18,931.33, applying the 1.552 acres per 1,000 residents standard yields 29.38 acres of additional park capacity required to maintain the existing level of service. Any Parks impact fee fund balance reported in the City’s audited �inancial statements is converted to capacity-equivalent acres using this chapter’s per-acre costs and recognized as capacity already in hand before allocating remaining costs to new development.

Cost Basis
Unit costs are stated in current study-year dollars. Parkland acquisition is based on local fair-market value evidence suitable for park use. Park improvements are based on the City’s historical per-acre park development baseline escalated to the study year using the Engineering News-Record (ENR) Building Cost Index (BCI). These unit costs price the incremental park acres required by the level-ofservice standard.

Parkland Acquisition (Fair-Market Value per acre): The study adopts $1,100,000 per acre as the planning fair-market value for park-suitable sites in Grand Terrace. The value is supported by local evidence, screened for market-rate conditions and park feasibility (frontage, utilities, typical shape/size), and normalized to dollars per acre. The full comparable set, screening notes, and arithmetic are provided in Appendix H (Parks Quality of Life Infrastructure Cost Basis).

Park Improvements (Capacity-Adding Construction per acre): The City’s historical turn-key park development baseline (2005–2006 dollars) is escalated to the study year using ENR BCI. The calculation follows the standard formula:

Study-year park improvements ($/acre) = 2005–2006 baseline ($/acre) × (ENR BCI – study year ÷ ENR BCI – 2005–2006)
This escalation method is consistent with the approach applied in the Public Use Facilities chapter, using the same ENR BCI framework and study-year adjustment. The resulting study-year planning value is used throughout this chapter’s calculations.

Use in Calculations: For Parks, the combined per-acre cost equals (parkland $/acre) + (park improvements $/acre). Required acres are computed from the adopted 1.552 acres per 1,000 residents standard applied to net-new residents. The product yields total growth cost, which is translated to cost per resident, then cost per dwelling unit using persons-per-household for Single Family Detached, Multi-Family Attached, and Manufactured/Mobile Homes, and then expressed per residential square foot (three decimals) by dividing by the average unit size for each housing type, consistent with AB-602.
78

Chapter 7 Parkland Acquisition and Park Facilities
City of Grand Terrace 2025-26 Development Impact Fee Calculation and Nexus Report Calculations are performed at full precision in the City’s model; currency values shown in this section are displayed to whole dollars for publication.

Derivation of Maximum Justi�ied Fees
Fees are derived and expressed in accordance with AB-602 so that results are stated per square foot.

For Parks, the calculation is resident-based and applies to residential development. All steps use the study-year costs in the Cost Basis section and the service standards in the Standards and Application section.

Residential — Parks (Non-Subdivision): Required park acreage is determined by applying the Parks standard of 1.552 acres per 1,000 residents to net-new residents. The resulting acres are priced using the combined per-acre park cost to determine a cost per resident, translated to a cost per unit using persons-per-household for Single Family Detached, Multi-Family Attached, and Manufactured/Mobile Homes, and then to a cost per square foot by dividing by the average dwelling square footage for each housing type. For mixed-use development, only the residential component is subject to the Parks fee.

Subdivision — Parks (Quimby): For subdivisions, the City administers Quimby requirements as parkland dedication, in-lieu fee, or a combination, using a standard of 3.000 acres per 1,000 residents as authorized by Gov. Code §66477 (Quimby Act). This Quimby standard is distinct from the Mitigation Fee Act framework that governs the non-subdivision Parks impact fee. Dedicated land is valued at the current fair market value and must meet this chapter’s eligibility, and in-lieu fees are programmed consistent with statutory geographic and timing requirements. To prevent doublecounting where both mechanisms apply, the City recognizes Quimby contributions �irst for their eligible purpose and then assesses the non-subdivision Parks impact fee only for remaining, nonduplicative, growth-related costs.

Mixed-Use, Change of Use, and Additions: Mixed-use projects are assessed by category, with only the residential portion subject to the Parks residential fee. Changes of use and additions are assessed on the net increase in impact relative to the prior legal use.

Capital Program and Eligibility
The capital program identi�ies the growth-eligible projects and de�ines what costs qualify for Parks.

Projects are selected to maintain the City’s adopted service standards as development occurs, and each appropriation will be documented elsewhere in this chapter to preserve a clear audit trail under the Mitigation Fee Act.

Eligibility Test — Parks: Parks funds may be used for parkland acquisition and for capital improvements that add usable recreation capacity to the City’s park system. Eligible work includes site acquisition; site preparation and utility extensions; multi-purpose turf and hardscape areas; �ields and courts; destination playgrounds; restrooms and support buildings; lighting and fencing; 79

Chapter 7 Parkland Acquisition and Park Facilities
City of Grand Terrace 2025-26 Development Impact Fee Calculation and Nexus Report internal paths and trailheads; irrigation; and accessibility features necessary to place new capacity into service. Planning, environmental review, design, permitting, construction management, and prudent contingencies are eligible when they are capitalized to deliver new capacity. Operations and routine maintenance, programming, rolling stock, and like-for-like replacements that do not add capacity are not eligible.

Quimby Interface — Eligible Uses and Coordination: Quimby requirements may be satis�ied through parkland dedication, in-lieu fees, or a combination. Quimby contributions may be used to acquire or develop neighborhood or community park and recreation facilities that will serve the subdivision, and—where statutory conditions and �indings are met—to rehabilitate existing park facilities. This chapter coordinates Quimby with the non-subdivision Parks impact fee by recognizing Quimby contributions �irst for their eligible purpose and then applying the Parks impact fee only to remaining, non-duplicative, growth-related costs. The City will make any required geographic and service �indings at appropriation to ensure compliance with the Subdivision Map Act.

Land Dedication and Site Control: Where a development dedicates parkland that meets the eligibility criteria of this chapter, the land is credited at fair market value and can be incorporated into the capital program. For City acquisitions, fee revenues may be combined with grants or other sources to assemble sites of suf�icient size and con�iguration to function as neighborhood or community parks.

Soft Costs and Delivery: Capital soft costs that are integral to delivering new capacity are allowable within the Parks improvements cost basis, including planning, environmental clearance, design, permitting, construction management, and prudent contingencies. These costs are tracked by project to support clear crediting and reimbursement.

Replacement and Rehabilitation: Replacement or rehabilitation projects are eligible only when they create additional usable recreation capacity, such as converting underutilized space to multi-use courts or expanding a facility’s functional area. Work that merely restores existing capacity without expansion is not eligible under this fee.

Joint and Partnership Projects: Projects delivered with schools, other public agencies, or nonpro�its are eligible where they add recreation capacity that is available to City residents under enforceable joint-use or access agreements. The fee contribution is limited to the proportional share of capacity made available to the public consistent with this chapter.

Project List: This subsection presents the growth-eligible capital program for Parks as programlevel, citywide entries. For Parks, the program aggregates all AB-1600 receipts to acquire new parkland and construct capacity-adding park facilities needed to maintain the adopted level of service. Each entry is formatted using the standard headings used throughout this study so the scope, size, cost, and timing are clear and auditable.

The project entry that follows establishes the citywide Parks program and prices the growth-related capacity at the study-year unit costs. Subsequent entries can be added in the same format as additional program or site needs are identi�ied.
80

Chapter 7 Parkland Acquisition and Park Facilities
City of Grand Terrace 2025-26 Development Impact Fee Calculation and Nexus Report Parkland Acquisition and Park Facilities Projects
Project ID: PK-001
Project Title: Parkland Acquisition & Facilities Improvements – Citywide Program Description: This program explicitly authorizes the acquisition of new parkland and the construction of capacity-adding park improvements to maintain the adopted level of service as development occurs. Eligible work includes land acquisition and construction of new or expanded park facilities that increase usable recreation capacity (for example, multi-purpose turf and hardscape areas, �ields and courts, destination playgrounds, restrooms and support buildings, lighting and fencing, internal paths and trailheads, irrigation, and accessibility features). Operations and maintenance, programming, rolling stock, and like-for-like replacements that do not add capacity are excluded.

Size (Gross Program): 29.38 acres (growth-related parkland acquisition and development) Location: Citywide
New Development Share: 100% — $49,938,431 (funded with Parkland Acquisition and Park Facilities Impact Fees)
Existing Community Share: 0% — $0
Total: $49,938,431
Timing: 2026–2036
Credits, Reimbursements, and In-Lieu
This section establishes how development-provided parkland and park improvements are recognized, how reimbursements may be issued when a project delivers more than its fee obligation, and how Quimby subdivision obligations are coordinated so costs are not duplicated. Credits apply only to eligible, capacity-adding parkland or park improvements under the Parks component and are calculated using the valuation methods in this chapter. Credits do not fund operations, maintenance, or like-for-like replacements that do not increase usable capacity.

Land Dedication Credits: Where a development dedicates parkland that meets this chapter’s eligibility, the City grants a credit valued at current fair-market value for park-suitable sites. Eligibility includes appropriate size, con�iguration, and characteristics to function as a neighborhood or community park consistent with the level-of-service standard. The City may require an appraisal or other accepted valuation evidence and may adjust the credit to re�lect encumbrances, unusable areas, or conditions that limit recreation capacity.

Construction Credits: Where a development constructs eligible, capacity-adding park improvements, the City grants a credit for the documented, eligible construction cost. Valuation relies 81

Chapter 7 Parkland Acquisition and Park Facilities
City of Grand Terrace 2025-26 Development Impact Fee Calculation and Nexus Report on approved engineers’ estimates, awarded bids, or veri�ied costs for the eligible scope.

Improvements must add usable recreation capacity; like-for-like replacements, cosmetic upgrades, and routine maintenance do not qualify.

Application and Limits: Credits are applied to the corresponding Parks fee at permit issuance or at another de�ined milestone consistent with City procedures. Credits may not exceed the fee otherwise due for the same project and component unless the City enters into a reimbursement agreement.

Credits are recorded to preserve the audit trail required by the Mitigation Fee Act and are applied before calculating any residual fee for the same component and project phase.

Reimbursements: When a developer delivers eligible park capacity that exceeds the project’s creditable obligation and the improvement or acquisition appears on, or is added to, the capital program for this chapter, the City may enter into a reimbursement agreement. Reimbursements are paid when funds are available and in accordance with City priorities. Agreements identify the eligible scope, the documented cost basis, and the terms that govern reimbursement without doublecounting.

Quimby Coordination: Quimby obligations for residential subdivisions are administered under the Subdivision Map Act and are separate from this impact fee. Where both mechanisms apply to the same project, the City recognizes Quimby parkland dedication or in-lieu fees �irst for their eligible purpose, then applies the non-subdivision Parks impact fee only to remaining, non-duplicative, growth-related costs. This sequencing ensures the Parks fee does not duplicate capacity already provided under Quimby.

Documentation: Each credit or reimbursement is memorialized in a written instrument that describes the facility or land, the eligible scope, the valuation method used, and the fee component to which the credit applies. The City maintains records suf�icient to demonstrate that credited or reimbursed items add usable recreation capacity, align with this chapter’s eligibility, and remain consistent with the level-of-service standards used to derive the fees.

Summary of Development Impact Fees
Proposed Parks Fees (AB-1600 — Table 7-2): The table below summarizes the study-year Parks Development Impact Fees expressed per square foot under AB-602, derived from the 1.552 acresper-1,000 residents standard and this chapter’s cost basis. Use Table 7-2 as the of�icial schedule for residential projects outside the subdivision process.
[This space left blank to fit the following table on one page.] 82

Chapter 7 Parkland Acquisition and Park Facilities
City of Grand Terrace 2025-26 Development Impact Fee Calculation and Nexus Report Table 7-2
Proposed AB-1600 Park Development Impact Fees
Land Use Impact Fee per SF
Single Family Detached $4.267/SF
Multi-Family Attached $7.537/SF
Manufactured/Mobile Homes $6.618/SF
Quimby Park Fees (Subdivision — Table 7-3): The following table summarizes Quimby subdivision obligations—parkland dedication, in-lieu fee, or a combination—based on the City’s adopted standard. Quimby is administered separately from the AB-1600 fee; contributions in Table 7-3 are recognized �irst to avoid double-counting.

Table 7-3
Proposed Quimby Park Fees
Land Use Impact Fee per SF
Single Family Residential $8.247/SF
Multiple-Family Residential $14.569/SF
Mobile Home Dwelling Units $12.793/SF
Current Park Development Impact Fees
The City of Grand Terrace currently levies a Parks-related development impact fee on residential development under the “Parkland and Open Space Acquisition Fund” line in the adopted Residential Permit & Impact Fees schedule. The existing fees are set at $7,241 per detached dwelling unit and $4,534 per attached dwelling unit. No Parks impact fee is imposed on nonresidential development at this time, and this nexus study maintains the existing policy that Parks fees apply solely to residential development.

Parks fee revenues are recorded within the City’s Park Development special revenue fund. In the City’s most recent Annual Comprehensive Financial Report (ACFR) for the �iscal year ended June 30, 2024, the Park Development fund reports a restricted ending fund balance of $43,698. This balance represents accumulated Parks impact fee revenues available for eligible parkland acquisition and capacity-adding park improvements consistent with this chapter.

Although the current schedule presents Parks charges as a per-dwelling-unit fee, this nexus study converts the Parks Development Impact Fee to a per residential square foot schedule consistent with Assembly Bill 602 (AB-602). This conversion improves proportionality by aligning payments with residential �loor area, preserves the City’s adopted level of park service as new residential development adds population, and supports compliance with the Mitigation Fee Act by clearly identifying the fee’s use, cost basis, and fund accounting treatment. 83

Chapter 7 Parkland Acquisition and Park Facilities
City of Grand Terrace 2025-26 Development Impact Fee Calculation and Nexus Report Administrative Provisions
This section sets the rules for how fees are calculated, collected, indexed, documented, and administered so the program remains consistent, auditable, and simple to apply in day-to-day permitting.

Adoption and Effective Date: Fees are established by ordinance and become effective as provided by law. Applications that are vested or deemed complete before the effective date are processed under the prior rules; all others use this chapter. Subdivision Park requirements are administered separately under the Subdivision Map Act.

Point of Collection: For development subject to this chapter, fees are calculated using the schedules in effect on the date of permit issuance and are collected at building permit issuance unless City procedures specify an earlier milestone. For phased projects, fees are calculated and collected by phase based on the �loor area or units permitted in each phase. Payment timing conforms to Government Code § 66007; fees are due at building permit unless otherwise provided by ordinance or agreement, and the City may allow collection at �inal inspection/certi�icate of occupancy or earlier by agreement.

Calculation Inputs: Applicants must provide residential �loor area by housing type so the City can apply the per-square-foot schedules. Persons-per-household and average dwelling square footage are the study inputs used to translate the level-of-service standard to per-square-foot rates.

Mixed-Use, Change of Use, and Additions: For mixed-use projects, only the residential component is subject to the Parks fee. Change-of-use and additions are assessed on the net increase in impact based on the incremental residential �loor area.

Indexing: Fee schedules are updated annually using the City’s adopted construction cost index. For Parks, the improvements component is indexed annually using the City’s adopted ENR Building Cost Index (or successor). The land component is not indexed by ENR and is recalibrated during formal study updates using current appraisals and documented local market evidence.

Rounding and Publication: All computations use full precision in the City’s model. For publication, per-square-foot rates are shown to three decimals ($0.001), and totals are shown to whole dollars.

Any per-unit amounts shown for reference are rounded to the nearest dollar. The City will publish the schedules and a plain-language guide showing how to read and apply them.

Administrative Adjustments and Appeals: If an applicant believes a fee has been misapplied under this chapter (for example, an incorrect housing type classi�ication or �loor-area measurement), the City may process an administrative adjustment based on substantial evidence submitted by the applicant. Requests for adjustment must be made before fee payment. Appeals follow the procedures set out in the adopting ordinance and applicable law.

Severability and Interpretation: If any provision of this chapter is held invalid, the remaining provisions remain in effect. Terms are interpreted to further the purpose of maintaining adopted levels of park service and funding growth-related capacity consistent with this study. 84

Chapter 7 Parkland Acquisition and Park Facilities
City of Grand Terrace 2025-26 Development Impact Fee Calculation and Nexus Report Five Findings

1. Purpose of the Fee
The purpose of the fee is to fund the expansion of park capacity required to maintain the City’s established level of park service as new residential development adds population. The fee ensures that growth contributes its fair, proportional share toward acquiring parkland and delivering capacity-adding park improvements needed to serve new residents.

2. Use of the Fee
Fee revenues will be used to �inance parkland acquisition and capacity-adding park improvements necessary to place new park capacity into service. Eligible improvements include planning, design, permitting, site preparation, multi-purpose turf and hardscape areas, �ields and courts, destination playgrounds, restrooms and support buildings, lighting and fencing, internal paths and trailheads within park sites, irrigation, and accessibility features. Operations and maintenance, programming, landscaping or aesthetic work that does not add capacity, rolling stock, and like-for-like replacements are not funded. Quimby subdivision obligations are administered separately.

3. Relationship Between the Fee’s Use and the Type of Development New residential development increases population, which increases demand for parkland and park facilities. The fee applies to residential development (non-subdivision) and funds park capacity that serves those residents. For mixed-use projects, only the residential component is subject to the Parks fee. Fee uses therefore match the type of development that creates the need.

4. Relationship Between the Need for Facilities and the Type of Development The City’s park standard is 1.552 acres per 1,000 residents. Applying this standard to the net-new residential population of 18,931.33 results in 29.38 acres of additional park capacity required to maintain the existing level of service. Any Parks impact fee fund balance reported in the City’s audited financial statements is converted to capacityequivalent acres using this chapter’s per-acre costs and recognized as capacity already in hand before allocating remaining costs to new development.

5. Relationship Between the Amount of the Fee and the Cost Attributable to Development The fee amount is derived by pricing the required park acres using study-year unit costs per acre for land and capacity-adding park improvements. The resulting growth cost is translated to a cost per resident, then to a cost per dwelling unit by housing type using persons-perhousehold for Single Family Detached, Multi-Family Attached, and Manufactured/Mobile Homes, and then expressed per residential square foot by dividing by the average dwelling size for each housing type, consistent with AB-602. Published per-square-foot rates are 85

Chapter 7 Parkland Acquisition and Park Facilities
City of Grand Terrace 2025-26 Development Impact Fee Calculation and Nexus Report shown to three decimals; no housing type is charged more than the cost reasonably attributable to the demand it generates to maintain the City’s adopted level of service.

End of Chapter
86

APPENDIX A

MASTER DEVELOPMENT IMPACT FEE SCHEDULE
87

Land Use Cost Basis
Law Enforcement
Facilities
Street
Improvement
General City
Facilities
Public Use Facilities
Parkland
Acquisition and
Park Facilities
Single Family Detached Per Square Foot $0.058 $0.015 $0.321 $2.426 $4.267 Multi-Family Attached Per Square Foot $0.155 $0.014 $0.132 $4.286 $7.537 Manufactured/Mobile Homes Per Square Foot $0.069 $0.011 $0.248 $3.764 $6.618 General Commercial Per Square Foot $0.154 $0.104 $0.128 n/a n/a Office Commercial Per Square Foot $0.109 $0.031 $0.128 n/a n/a Industrial Per Square Foot $0.052 $0.017 $0.150 n/a n/a Land Use Cost Basis Total DIF
Single Family Detached Per Square Foot $7.087
Multi-Family Attached Per Square Foot $12.123
Manufactured/Mobile Homes Per Square Foot $10.710
General Commercial Per Square Foot $0.386
Office Commercial Per Square Foot $0.268
Industrial Per Square Foot $0.219
City of Grand Terrace Development Impact Fee Master Fee Schedule Development Impact Fee Per Infrastructure
Development Impact Fee Per Land Use Total
88

APPENDIX B

GRAND TERRACE LAND USE CROSSWALK
89

Appendix B: Grand Terrace Land Use Crosswalk
Purpose: Align Grand Terrace General Plan land use designations and Housing Element categories to the standardized Nexus Study land use categories for use in the Access Study and Development Impact Fee program.

General Plan
Designation
Housing Element /
Overlay Nexus Category Notes
Hillside Low Density
Residential
N/A Single-Family Detached Low intensity hillside
areas.

Low Density Residential RHNA SFR Sites Single-Family Detached Conventional SFR
neighborhoods.

Medium Density
Residential RHNA Mixed Density Single-Family Detached / Multi-Family Attached Depends on product
type.

Medium High Density
Residential
Higher-Density RHNA
Sites
Multi-Family Attached Townhomes,
apartments, condos.

General Commercial Commercial Corridors General Commercial Retail, service, dining, commercial pads.

Office Commercial Medical/Office Sites Office Commercial Professional/office uses.

Light Industrial Employment Areas Industrial Light manufacturing, warehousing.

Floodplain Industrial Employment Areas (FP) Industrial
Industrial uses with FP
constraints.

Mixed Use MU Overlays Split by entitlement
Residential = SFD/MFA;
Nonres =
Commercial/Office.

Manufactured Housing
Areas
Mobile Home Parks
Manufactured/Mobile
Homes
Per Housing Element
inventory.

Public Schools / Civic Excluded
Government, civic,
educational; excluded
from fees.

Hillside Open Space Open Space Excluded Permanent open space.

Streets / R/W N/A Excluded
Non-developable public
right-of-way.
90

APPENDIX C

PERSONS-PER-HOUSEHOLD (PPH) METHODOLOGY
91

Appendix C: Persons-Per-Household (PPH) Methodology
Purpose
This appendix documents the derivation and application of persons-per-household (PPH) factors used to translate population impacts into dwelling-unit equivalents for fee allocation.

It supplements Chapter 2 with full methods, category definitions, quality assurance (QA), and a worked application pattern. The approach is designed to meet transparency and proportionality standards under the Mitigation Fee Act (Gov. Code §§66000 et seq.) and AB602.

Data Sources & Fixed Household Structure Approach
Primary data are the U.S. Census Bureau American Community Survey (ACS) 2019–2023 fiveyear estimates for the City of Grand Terrace. Households by structure type and tenure are taken from ACS Table B25032 (Tenure by Units in Structure). Population by structure type and tenure is taken from ACS Table B25033 (Total Population in Occupied Housing Units by Tenure by Units in Structure). The analysis applies the Fixed Household Structure Method, pooling owner-occupied and renter-occupied households into three residential categories aligned with this Nexus Study’s adopted land use structure.

Category Definitions (“Buckets”)
For Grand Terrace, the adopted residential categories are:
• Single Family Detached: 3.12 persons per household
• Multi-Family Attached: 2.32 persons per household
• Manufactured/Mobile Homes: 2.83 persons per household Note on numerical presentation: All calculations are performed at full precision in the underlying model. For readability and consistency with Chapter 2, persons-per-household (PPH) factors are displayed to two decimals in this appendix.

Calculation Method
For each residential category (c), persons per household (PPH) are calculated as: PPHc = Populationc ÷ Householdsc. Household totals by structure type are taken from ACS Table B25032 for both owner-occupied and renter-occupied units. Population totals by structure type are taken from ACS Table B25033. Because ACS Table B25033 provides a combined population total for “1, detached or attached,” population within that group is allocated between detached and attached structures proportionally to their respective household shares from ACS Table B25032. Owner and renter results are then pooled to yield the final PPH factors by category.
92

Grand Terrace — Step-by-Step (from ACS B25032/B25033)
Structure Type Owner Units Renter Units
1, detached 2,287 426
1, attached 192 116
Two or more units (all
attached types)
85 1,129
Mobile home 205 103
Structure Type Owner Population Renter Population
1, detached or attached
(combined) 7,375 2,098
2 to 4 units 219 1,043
5 or more units 44 1,212
Mobile home 662 211
Population is split based on detached vs. attached household shares within the 1-unit category for each tenure group, using B25032 household counts.

Residential
Category Population Households Persons per Household (PPH) Single-Family
Detached
8,452.088 2,713 3.12
Multi-Family
Attached
3,539.819 1,522 2.32
Manufactured/Mobile
Homes
873 308 2.83
93

Results — Adopted PPH Factors (ACS 2019–2023, Grand Terrace) Application of the Fixed Household Structure Method to Grand Terrace’s ACS data yields the following persons-per-household (PPH) factors by residential category:
• Single Family Detached: 3.12 persons per household
• Multi-Family Attached: 2.32 persons per household
• Manufactured/Mobile Homes: 2.83 persons per household These PPH assumptions are applied consistently throughout the Grand Terrace Development Impact Fee Nexus Study to project population growth attributable to new residential development and to allocate capital facility costs proportionally.

Application in the Fee Program
PPH factors convert new housing units into the number of new residents added to the City.

That projected population growth defines the service population basis for facilities such as Law Enforcement, Street Improvements, General City Facilities, Public Use Facilities, and Parks. By translating dwelling units into residents consistently by residential category, the study ensures that growth-related capital costs are distributed proportionally across land uses.

Sensitivity, Reasonableness & Quality Assurance (QA)
Five-year ACS data are used for city-level stability and reproducibility. The use of ACS Tables B25032 and B25033 provides a transparent link between households and population by structure type and tenure. QA steps confirm that household totals reconcile to ACS totals by tenure, that allocated 1-unit population fully reconciles to the combined B25033 totals, and that pooled PPH factors match those used in Chapter 2 and throughout the fee model. 94

APPENDIX D

AVERAGE RESIDENTIAL UNIT SIZE
95

Appendix D: Average Residential Unit Size (ARUS)
Purpose
This appendix documents the adopted Average Residential Unit Sizes (ARUS) used in the Grand Terrace Development Impact Fee Study. These values are required to convert between dollars per dwelling unit ($/DU) and dollars per square foot ($/SF) and to support transparent, replicable fee calculations consistent with the Mitigation Fee Act (Gov. Code §§ 66000 et seq.) and AB‑602. The methodology mirrors the adopted Hemet ARUS approach, expanded to incorporate empirical market observations for Grand Terrace, consistent with consultant practice for cities without adopted unit‑size standards.

Scope
Applies to the Grand Terrace residential land use categories documented in Chapter 2:

Single‑Family Detached, Multi‑Family Attached, and Manufactured/Mobile Homes. Accessory Dwelling Units (ADUs) are addressed separately.

Method & Justification
Grand Terrace does not adopt minimum or typical residential unit sizes in its General Plan or Zoning Code. Therefore, an empirically derived ARUS method is used, relying on reproducible observations from local listings, apartment floorplans, and manufactured home listings within the City of Grand Terrace. These sources provide transparent, documentable square‑footage data sufficient to support legally defensible ARUS assumptions under AB‑602.

All observations were captured November 2025 and are reproducible from public listing platforms and property‑manager floorplan pages.

Public Data Sources
The ARUS values for Grand Terrace rely on the following public sources:
• Highlands at Grand Terrace — Floorplans (Greystar): 668 sq ft (1×1), 861 sq ft (2×1), 884 sq ft (2×2).
• Heights at Grand Terrace — Floorplans (Harbor Group): 750 sq ft (1 BR), 1,000 sq ft (2 BR).

These values were used to compute the 1BR and 2BR means and the equal‑weight multi‑family average.
• Grand Terrace single‑family listings (Redfin) with explicit living‑area values, including:
1,485 sq ft (Vivienda Ave), 1,515 sq ft (Miriam Way), 1,780 sq ft (Eton Dr), 1,916 sq ft (sample listing), 1,955 sq ft (Miriam Way), 1,991 sq ft (Lark St), 2,061 sq ft (Robin Way), 2,284 sq ft (Lark St). Median derived from the observed set.
• Manufactured/Mobile homes in Grand Terrace (Realtor.com): observed sizes included 690, 701, 940, 1,128, 1,288, 1,344, and 1,440 sq ft. Median used for ARUS. 96

Calculation Notes
Each ARUS value is derived using a category‑appropriate method. Multi‑family averages were calculated using a two‑step process: (1) calculate 1BR and 2BR mean unit sizes using the site floorplans; and (2) take the equal‑weight average of those two means. SFR used the median of observed Grand Terrace listings. Manufactured/Mobile Homes used the median of all observed listings with explicit size values. All ARUS values are rounded to whole square feet for publication, with full precision maintained internally.

Adopted Average Unit Sizes
Residential Category Adopted ARUS (SF/Unit) Use in Fee Program Single‑Family Detached 1,916 Convert $/DU ↔ $/SF;
residential fee calculations
Multi‑Family Attached 812 Convert $/DU ↔ $/SF;
residential fee calculations
Manufactured/Mobile
Homes
1,128 Convert $/DU ↔ $/SF;
residential fee calculations
Examples
• A multi‑family fee of $10,000 per dwelling unit equals $10,000 ÷ 812 = $12.32 per square foot.
• A single‑family fee of $14 per square foot equals 1,916 × $14 = $26,824 per dwelling unit. 97

APPENDIX E

NET NEW FEE APPLICATION
98

Appendix E: Net New Fee Application
Purpose
This appendix documents the City of Grand Terrace’s net new Development Impact Fee (DIF) calculation method. The calculation ensures that only the net new development impact is subject to DIFs, with credits for existing legal uses and fees applied solely to incremental increases. This approach is consistent with the Mitigation Fee Act (Government Code §§66000–66025), Assembly Bill 602 (AB-602), and prevailing case law requiring that impact fees reflect the additional burden created by development rather than the full replacement value of demolished structures.

Applicability (Programs & Units)
This method applies to the City of Grand Terrace’s adopted Development Impact Fee programs assessed on a per-square-foot ($/SF) basis. The examples below use the combined recommended maximum DIF rates from Chapter 2 (Table 2-4) as a uniform demonstration across land uses.

Applicable land uses and reference rates:
• Single Family Detached – $6.708/SF
• Multi-Family Attached – $14.785/SF
• Manufactured/Mobile Homes – $10.841/SF
• General Commercial – $0.397/SF
• Office Commercial – $0.280/SF
• Industrial – $0.232/SF
Calculation Rules (Net New)
• Establish Existing Legal Use — Determine the fee credit from the existing legal use based on its current floor area and the applicable rate at the time of permit. Credits apply only to permitted, legal existing development.
• Establish Proposed Use — Calculate the proposed fee using the adopted rate and the new floor area.
• Compute Net New — Net New DIF = Proposed DIF − Existing DIF (minimum zero). Fees are applied only to the incremental increase in impact. • Change of Use — Existing credits are based on prior legal uses verified by permits or other City records (e.g., certificates of occupancy, assessor data, or utility records). • Mixed-Use Sites — Apply the method by component (e.g., residential, commercial, industrial) and sum the net new fees across all components. • Partial Demolition/Additions — Fee credits are proportional to the remaining existing area. Demolished floor area does not receive a fee credit beyond the documented existing legal use.
99

Worked Examples (Using Combined DIF Demonstration Rates) Example A — Commercial Rebuild (General Commercial → General Commercial):

Demolish 5,000 SF of General Commercial space and construct 7,000 SF of new General Commercial space on the same site. General Commercial rate = $0.397/SF.

Existing Credit = 5,000 × $0.397 = $1,985
Proposed Fee = 7,000 × $0.397 = $2,779
Net New DIF = (7,000 − 5,000) × $0.397 = $794
Example B — Change of Use (Industrial → General Commercial):

Convert 10,000 SF of Industrial space to 10,000 SF of General Commercial space. Industrial rate = $0.232/SF; General Commercial rate = $0.397/SF.

Existing Credit = 10,000 × $0.232 = $2,320
Proposed Fee = 10,000 × $0.397 = $3,970
Net New DIF = 10,000 × ($0.397 − $0.232) = $1,650
Example C — Residential Addition (Single Family Detached → Single Family Detached):

Add 700 SF to an existing 1,800 SF Single Family Detached dwelling unit. Single Family Detached rate = $6.708/SF.

Existing Credit = 1,800 × $6.708 = $12,074.40 (rounded to $12,074) Proposed Fee = 2,500 × $6.708 = $16,770.00 (rounded to $16,770) Net New DIF = (2,500 − 1,800) × $6.708 = $4,695.60 (rounded to $4,696) Example D — Mixed-Use Redevelopment (General Commercial + Multi-Family Attached):

Demolish 2,000 SF of General Commercial space and construct 3,000 SF of General Commercial space plus 5,000 SF of Multi-Family Attached residential units. General Commercial rate = $0.397/SF; Multi-Family Attached rate = $14.785/SF.

General Commercial Credit = 2,000 × $0.397 = $794
100

General Commercial Fee = 3,000 × $0.397 = $1,191
Net General Commercial DIF = $1,191 − $794 = $397
Multi-Family Fee = 5,000 × $14.785 = $73,925
Total Net New DIF = $397 + $73,925 = $74,322
Example E — Industrial Expansion (Industrial → Industrial):

Expand an Industrial building from 20,000 SF to 25,000 SF. Industrial rate = $0.232/SF.

Existing Credit = 20,000 × $0.232 = $4,640
Proposed Fee = 25,000 × $0.232 = $5,800
Net New DIF = (25,000 − 20,000) × $0.232 = $1,160
Submittal Requirements
To apply the net new fee method consistently, applicants must provide the following at the time of building permit or fee calculation:
• Site plan and floor area summary showing existing and proposed building areas by land use category.
• Documentation of prior legal use (e.g., building permits, certificates of occupancy, assessor records, or utility records) sufficient for the City to verify the existing credit. • Identification of any phased demolition or additions so that existing credits can be applied proportionally.
• Completed calculation worksheet or City-approved form demonstrating the net new fee computation.

Administrative Notes
• Negative results (Proposed DIF − Existing DIF < 0) yield a $0 net new fee. • Totals are rounded to the nearest whole dollar for billing and collection; intermediate calculations maintain full precision in the City’s model. • Updated rates apply if the City’s adopted Development Impact Fee schedule changes before permit issuance; the applicable schedule is the one in effect at the time the fee obligation is fixed.
• Separate utility or district connection fees, where applicable, follow their own schedules but use the same net new principle for redevelopment and expansions unless superseded by specific district policy or agreement.
101

APPENDIX F

ACCESSORY DWELLING UNIT (ADU) IMPACT FEE

APPLICATION
102

Appendix F: Accessory Dwelling Unit (ADU) Impact Fee Application Purpose & Legal Framework
This appendix explains how the City of Grand Terrace applies Development Impact Fees (DIFs) to Accessory Dwelling Units (ADUs). State law (Government Code §65852.2(f)(3)(A)) prohibits DIFs on ADUs smaller than 750 square feet. For ADUs 750 square feet or larger, DIFs must be proportional to the size of the primary dwelling. Grand Terrace uses a per‑square‑foot DIF structure, which directly satisfies proportionality requirements under §65852.2 and the Mitigation Fee Act (Government Code §§66000–66025).

Proportionality Requirement Under State Law
Government Code §65852.2(f)(3)(A) establishes two mandatory rules: (1) ADUs under 750 square feet are exempt from all impact fees; and (2) ADUs 750 square feet or larger may be assessed impact fees only if those fees are imposed proportionately relative to the square footage of the primary dwelling unit. This proportionality requirement protects smaller ADUs from disproportionate fee burdens and ensures that larger ADUs are charged only for the impacts they actually create.

Two calculation methods satisfy this requirement. The first is the statutory proportionality formula: ADU Fee = (ADU SF ÷ Primary SF) × Primary Fee. This guarantees that the ADU is never charged more per square foot than the primary residence. The second method, used by the City of Grand Terrace, is the per‑square‑foot DIF method. When both the primary dwelling and the ADU are charged the same Single‑Family Residential rate per square foot, proportionality is achieved automatically. This is because ADU SF × Rate = (ADU SF ÷ Primary SF) × (Primary SF × Rate). Thus, both approaches yield identical results and fully comply with §65852.2 and AB‑602.

ADU Fee Structure in Grand Terrace
Grand Terrace applies residential DIFs on a per‑square‑foot basis across all residential development types, including ADUs where applicable. The Street Improvement DIF program is used as the demonstration program for this appendix.

Street Improvement Single‑Family Residential Rate: $0.01462 per square foot.

Rules for Applying DIFs to ADUs
ADUs under 750 square feet are exempt from DIFs.

ADUs 750 square feet or larger may be charged DIFs at the Single‑Family Residential $/SF rate.

Fees are calculated only on the ADU’s square footage.

Per‑square‑foot DIF methodology satisfies the proportionality requirement in state law. 103

Net‑new credits apply if the ADU replaces existing legal floor area.

Totals are rounded to whole dollars for billing; internal calculations maintain full precision.

Examples (Using Street Improvement Rate)
Example 1 — 700 SF ADU (Exempt): Under 750 SF → No DIF may be charged.

Example 2 — 850 SF ADU: 850 × $0.01462 = $12.43 → $12
Example 3 — 1,100 SF ADU: 1,100 × $0.01462 = $16.09 → $16 Submittal Requirements
Scaled floor plan identifying ADU square footage.

Primary dwelling square footage for proportionality verification.

Documentation of any demolished or replaced floor area (for net‑new calculations).

Completed City DIF calculation worksheet showing ADU fee computation. 104

APPENDIX G

PUBLIC SAFETY BUILDING MODEL
105

Appendix G: Public Safety Building Model for Sheriffs Station Model Project Used: 2,240 SF Police Station
Target Total Cost Basis: $530 per SF (No Land)
Total Building Cost: 2,240 SF × $530 = $1,187,200
Cost Breakdown (Per Station):

Component Basis Cost per SF Amount ($)
2,240 SF × $30 $30 $67,200
Police Station
Building 2,240 SF × $275 $275 $616,000
Direct Construction
Subtotal Site Work + Building $305 $683,200
General Conditions
(12 months)
≈8% of Direct
Subtotal $25 $56,000
Construction
Contingency
≈20% of Direct
Subtotal $60 $134,400
Escalation to
Midpoint of
Construction
≈7.5% of Prior
Subtotal $30 $67,200
Construction
Subtotal (No Soft
Costs)
Direct + GC +
Contingency +
Escalation
$420 $940,800
Estimated Soft Costs
Design/PM, CA, CM,
permitting, testing,
bidding, utilities
$110 $246,400
Total — Station
Construction (No
Land)
2,240 SF × $530 $530 $1,187,200
106

APPENDIX H

PARKS QUALITY OF LIFE INFRASTRUCTURE COST
BASIS
107

Appendix H: Quality of Life Cost Basis
Purpose
This appendix documents the land acquisition and construction cost bases used to develop the City of Grand Terrace’s quality of life development impact fees. It consolidates the inputs for both of the City’s quality of life programs: the Parks Development Impact Fee, which funds parkland acquisition and park improvements, and the Public Use Facilities Development Impact Fee, which funds community centers, public meeting space, and the Library building program.

Parkland Acquisition Cost Basis
The adopted 2025 planning value for parkland acquisition in Grand Terrace is $1,100,000 per acre. This value is derived from publicly available listings within the Grand Terrace trade area and represents fair‑market pricing suitable for neighborhood and community park sites.

Key comparable listings used for the valuation include:
21911 De Berry St — 4.65 acres listed at $4,608,000 = $990,967.74 per acre 70,001 SF lot (1.606 ac) listed at $1,750,000 = $1,088,984.44 per acre Colton Center St — $2,178,000 per acre (upper‑bound context only) These data points establish a defendable planning band for park‑suitable land between approximately $0.99M and approximately $1.09M per acre. The City adopts a midpoint rounded to $1,100,000 per acre to reflect local conditions, allow for parcel variability, and maintain conservative funding adequacy while excluding industrial and frontage premiums.

Park Improvements (Construction Cost Basis)
The City’s park improvement cost basis is $599,660 per acre. This value reflects the escalated 2005–2006 Grand Terrace park development baseline updated to the study year using the Engineering News‑Record (ENR) Building Cost Index (BCI).

This per‑acre improvement value represents turn‑key construction of park facilities, including turf and hardscape areas, courts and fields, destination playgrounds, lighting, restrooms, support buildings, internal paths, irrigation, and accessibility features. 108

Combined Park Cost Basis
Category Unit Planning Value
Parkland Acquisition $/acre $1,100,000
Park Improvements $/acre $599,660
Combined Park Cost Basis $/acre $1,699,660
Application to the Parks Development Impact Fee
The combined per‑acre cost of $1,699,660 is applied to the additional acreage required to maintain the City’s adopted level of service of 1.552 acres per 1,000 residents. Using the net‑new population forecast of 20,293 residents, the required new park capacity is 31.495 acres. This required acreage is priced using the unit cost basis documented above.

Public Use Facilities Cost Basis (Community Centers and Library Building Space) Construction Cost Basis
The Public Use Facilities program prices building construction on a per‑square‑foot basis using a study‑year planning value of $450 per building square foot. The City’s prior public building construction basis from the 2005–2006 Grand Terrace Development Impact Fee Nexus Study was $250 per square foot. This historical basis is escalated to 2025 using the Engineering News‑Record (ENR) Building Cost Index (BCI): ENR BCI 2025 (13,914) divided by ENR BCI 2005–2006 (7,722) yields an escalation factor of 1.802, which applied to the $250 per square foot basis produces a 2025 planning value of $450 per square foot (rounded).

This $450 per square foot planning value reflects full building construction costs for multi‑purpose community center facilities, including core building systems, interior build‑out, and code‑triggered improvements necessary to place Public Use space into service.

Land Cost Basis
Public Use land is priced on a per‑building‑square‑foot basis using an underlying civic‑appropriate land value of $1,235,565 per acre at an assumed floor area ratio (FAR) of

0.33. This converts to a land cost of $85.95 per building square foot. Applied to the existing 36,575 square feet of Public Use Facilities inventory, this yields an estimated land value of $3,143,621 (36,575 square feet times $85.95 per square foot).

The City developed this basis from local market evidence suitable for civic and assembly use within the Grand Terrace trade area, consistent with the land research used for the parkland acquisition basis.

Combined Public Use Facilities Cost Basis
For planning and fee‑calculation purposes, the combined Public Use Facilities cost basis per building square foot is: $450.00 per building square foot for construction plus $85.95 per building square foot for land, for a combined construction and land cost of $535.95 per building square foot.
109

Application to the Public Use Facilities Development Impact Fee The Public Use Facilities program maintains the City’s existing service standard of 2.799 square feet per resident, derived from the documented inventory of 36,575 square feet and the current resident population of 13,069. The net‑new growth population of 20,293 residents, multiplied by the 2.799 square feet per resident standard, yields 56,801 square feet of required new Public Use space. This required building area is priced using the construction and land unit costs documented above, and the resulting per‑person and per‑residential‑square‑foot costs are allocated by housing type to produce the Public Use Facilities fee schedule presented in the main report.

Summary
Grand Terrace’s quality of life development impact fees use study‑year planning values derived from local market land data and escalated public facility construction costs. For Parks, the combined parkland and improvement cost basis is $1,699,660 per acre, applied to the additional acreage needed to maintain the City’s adopted park service standard. For Public Use Facilities, the combined construction and land cost basis is $535.95 per building square foot, applied to the additional 56,800 square feet of building space required to serve growth at the existing 2.799 square feet per resident standard. All inputs are consistent with AB‑602 transparency requirements and the Mitigation Fee Act’s reasonable‑relationship standard, ensuring that new residential development pays only its fair, proportional share of the capital improvements necessary to maintain Grand Terrace’s quality of life as growth occurs.
110

DEVELOPMENT IMPACT FEE CAPITAL IMPROVEMENT
PLAN
111

APPENDIX I

Appendix I: Capital Improvement Plan (CIP) Introduction Purpose and Scope:

This appendix presents the Capital Improvement Plan (CIP) that supports the City of Grand Terrace’s Development Impact Fee (DIF) program. It compiles the growth-related capital projects necessary to maintain the City’s established levels of service (LOS) as development occurs. The CIP includes only capital projects that add system capacity—such as facilities, equipment, and infrastructure improvements that directly serve new residents and development.

The CIP excludes operations and maintenance, repair and replacement, and any remediation of existing deficiencies. Each project is presented with its Total Cost, the percentage of that cost attributable to new development, and the resulting Cost to New Development. This structure provides a transparent, auditable basis for calculating maximum justified DIFs under the Mitigation Fee Act and AB-602.

Legal Authority and AB-602 Compliance:

The Mitigation Fee Act (Government Code §66000 et seq.) requires an essential nexus between new development and the need for capital improvements, and proportionality between the fee amount and the share of costs attributable to new development. Public noticing, segregated accounting, and periodic reporting are also required.

Assembly Bill 602 (AB-602) requires residential impact fees to be expressed on a per-squarefoot basis, a documented existing level of service (LOS) for each fee program, and a Capital Improvement Plan (CIP) adopted as part of the nexus study. This appendix satisfies these requirements by identifying the capacity-adding projects for each program and allocating only the growth share of costs to new development.

How This Appendix Satisfies the Law:

Each project includes a justification describing how the improvement maintains LOS for a larger future service population. Only the growth-related share of each project’s cost is assigned to DIFs. Eligible capital uses include land, design, engineering, environmental review, permitting, construction, contingency, and capital-eligible equipment. Existing deficiencies and ongoing O&M are not funded with DIFs. Project tables clearly show Total Cost, Percent to New Development, Cost to New Development, and Estimated Time of Availability, ensuring a fully auditable chain into fee calculations.

Programs Included in This CIP:
• Law Enforcement Facilities
• Circulation / Street Improvements
• General City Facilities
112

• Public Use / Community Centers
• Parks Development
Each program’s CIP table contains: Project Number, Project Title, Department/Category, Location/Scope, Total Cost, Percent of Cost Attributable to New Development, Cost to New Development, and Estimated Availability Window. A brief Description and Justification/Need accompany each project.

How to Read the Tables:

The CIP tables link individual project data to final fee schedule calculations. For each project, Total Cost reflects full capitalized cost; Percent to New Development reflects the portion required to maintain LOS; Cost to New Development forms the fee-eligible contribution; and Estimated Availability shows timing of improvements needed to serve growth. This ensures clear traceability from projects to maximum justified fees.

Summary:

This CIP provides the growth-related capital framework required under the Mitigation Fee Act and AB-602. It identifies improvements necessary to maintain Grand Terrace’s LOS standards and assigns only the growth share of cost to new development. The resulting CIP tables form the foundation for calculating maximum justified Development Impact Fees. 113

Project Number Project Title Department Category Location Size/Scope Total Cost % of Cost to New Dev. Cost to New Dev. Est. Availability LE-001 Sheriff Station Space
Expansion
Law
Enforcement
Law
Enforcement
Facilities
TBD 2,611 SF $1,383,830 100% $1,383,830 2036
Narrative Project Details
Project Number LE-001
Brief Description This project expands City-owned law enforcement building space to accommodate the growth-related calls-for-service generated by new development in Grand Terrace. The scope includes planning, design, permitting, and construction or reconfiguration of interior space within City Hall or another City-owned facility to increase the area dedicated to law enforcement functions.

Justification/Need This project is necessary to provide the additional 2,611 square feet of law enforcement building capacity required to accommodate growth-related increases in calls-for-service and maintain the City’s established level of service as new development occurs.

City of Grand Terrace AB-1600 Capital Improvement Plan
2026-2036
Law Enforcement Facilities
114

Project Number Project Title Department Category Location Size/Scope Total Cost % of Cost to New Dev. Cost to New Dev. Est. Availability ST-001
Circulation Master
Plan
Public Works
Street
Improvements Citywide
Citywide
planning effort
covering all
arterial and
collector
corridors,
intersections,
multimodal
connections, and
network-level
mobility
standards
$2,500,000 50% $1,250,000.00 2036
Narrative Project Details
Project Number ST-001
Brief Description Preparation of a citywide Circulation Master Plan to evaluate existing street and intersection performance, integrate trip-generation and trip-mile data, and identify and prioritize future roadway and intersection improvements consistent with the City’s General Plan.

Justification/Need The Circulation Master Plan is needed to provide a coordinated, data-driven capital improvement framework that addresses both existing system constraints and growth-related capacity needs, ensuring that future Street Improvements Impact Fees are based on a clear, defensible program of projects.

City of Grand Terrace AB-1600 Capital Improvement Plan
2026-2036
Street Improvements
115

Project Number Project Title Department Category Location Size/Scope Total Cost % of Cost to New Dev. Cost to New Dev. Est. Availability GG-001 City Hall
Expansion/Modernization
City
Administration/
City Manager's
Office
General City
Facilities City Hall TBD $5,356,034 49% $2,627,876 2036 GG-002 General City Vehicle
Expansion
City
Administration/
City Manager's
Office
General City
Facilities Citywide TBD $193,676 49% $95,025 2036
GG-003
City
Administration/
City Manager's
Office
General City
Facilities City Yard Facilities
TBD
$870,758 49% $427,227 2036
GG-004 General City Equipment
Expansion
City
Administration/
City Manager's
Office
General City
Facilities
City Hall, City Yard,
and other general
city administrative
and operational
facilities
TBD $267,802 49% $131,394 2036
Narrative Project Details
Project Number GG-001
Brief Description Remodel and expand City Hall to increase administrative and customer-service capacity, including reconfigured office and meeting areas, upgraded technology systems, improved public counters, and modernization of core building systems needed to support a larger service population.

Justification/Need This project is necessary to provide sufficient General City Facilities capacity to serve growth and maintain the City’s established level of service, ensuring that administrative, permitting, financial, and public-facing functions can continue operating effectively as Grand Terrace’s population and service demands increase.

Project Number GG-002
Brief Description Acquisition of additional general-purpose administrative and support vehicles to serve citywide inspections, site visits, interdepartmental travel, and operational support as Grand Terrace’s service population grows.

Justification/Need This project is needed to expand the City’s general vehicle fleet in proportion to growth so that General City Facilities services can maintain the City’s established level of service, with the growthrelated share funded through the General City Facilities impact fee program.

Project Number GG-003
Brief Description Expansion of City Yard facilities to provide additional storage, staging, and operational space to support public works and general government field activities as Grand Terrace’s service population grows.

Justification/Need This project is necessary to increase City Yard capacity in proportion to service population growth so that inspections, maintenance, materials storage, and other field operations can maintain the City’s established level of service as new development adds residents and employment.

Project Number GG-004
Brief Description Acquisition of additional general city equipment—including shared furnishings, fixtures, information technology, communications hardware, and operational equipment—to support expanded administrative and field capacity as Grand Terrace’s service population grows.

Justification/Need This project is needed to provide the additional equipment required to place expanded City Hall and City Yard capacity into service and to maintain the City’s established level of administrative and operational service as new development increases staffing and workload.

City of Grand Terrace AB-1600 Capital Improvement Plan
2026-2036
General City Facilities
116

Project Number Project Title Department Category Location Size/Scope Total Cost % of Cost to New Dev. Cost to New Dev. Est. Availability PF-001
Parks and
Recreation
Public Use
Facilities
TBD 52,989 SF $28,399,531 100% $28,399,531.00 2036
Narrative Project Details
Project Number PF-001
Brief Description Construction and expansion of Public Use building space, including planning, design, permitting, construction, interior build-out, and related on-site improvements, to add 52,989 square feet of multi-purpose community facility capacity for Grand Terrace residents.

Justification/Need This project is necessary to provide 52,989 square feet of additional Public Use building capacity identified in the growth analysis so the City can maintain its established service standard of 2.799 square feet per resident as new development increases the service population.

City of Grand Terrace AB-1600 Capital Improvement Plan
2026-2036
Public Use Facilities
117 Page 234 of 244
Project Number Project Title Department Category Location Size/Scope Total Cost % of Cost to New Dev. Cost to New Dev. Est. Availability PK-001
Parkland Acquisition &
Facilities Improvements –
Citywide Program
Parks and
Recreation Citywide 29.38 Acres $49,938,461 100% $49,938,461 2036 Narrative Project Details
Project Number PK-001
Brief Description
Citywide program to acquire approximately 29.38 acres of new parkland and construct capacity-adding park improvements—including new or expanded fields, courts, multi-purpose turf and hardscape areas, playgrounds, restrooms and support buildings, lighting, paths and trailheads, irrigation, and accessibility features—to serve a growing community.

Justification/Need This program is necessary to provide growth-related parkland and facility capacity so the City can maintain its adopted parks level of service as new residential and nonresidential development increases the service population.

City of Grand Terrace AB-1600 Capital Improvement Plan
2026-2036
Parkland Acquistion and Park Facilities
118

APPENDIX J

DEVELOPMENT FEASIBILITY ANALYSIS
119

Appendix J: Development Feasibility Analysis
Purpose and Scope
This appendix evaluates the financial feasibility implications of the City of Grand Terrace’s Development Impact Fee (DIF) program. Assembly Bill 602 (AB-602) requires local agencies to consider the relationship between residential impact fees and the cost of housing construction. Although AB-602 focuses on residential development, best practice and recent case law support evaluating commercial feasibility as well. This appendix therefore examines residential and nonresidential development prototypes commonly built in the Inland Empire and evaluates whether the proposed DIF schedule would materially affect development feasibility.

The analysis uses a prototype-based feasibility framework consistent with industry practice and RCS standards. It incorporates market rents, vacancy and operating expense assumptions, construction cost benchmarks, land cost expectations, and financing parameters to estimate return-on-cost (ROC). The appendix compares feasibility outcomes with and without the adopted DIF levels to determine whether the fees represent a binding constraint on new development in Grand Terrace.

Regulatory Context
The Mitigation Fee Act (Government Code §66000 et seq.) requires that development impact fees be reasonably related to the need for public facilities created by new development and be proportionate to the cost of the infrastructure attributable to that development. Agencies must also demonstrate that fee adoption will not be confiscatory and will not impede development to such an extent that fees lose their rational nexus to facility demand.

Assembly Bill 602 (AB-602) requires nexus studies to clearly document how residential fees relate to housing feasibility. While the statute centers on residential affordability, it does not prohibit feasibility evaluations for nonresidential uses; in fact, many jurisdictions now conduct such analyses to maintain defensibility and avoid claims that fees materially suppress commercial investment.

This appendix fulfills these expectations by providing a transparent evaluation of how the proposed fee levels interact with typical project economics across all major land uses in Grand Terrace.

Methodology Overview
The feasibility analysis relies on a standardized return-on-cost (ROC) approach, which compares annual net operating income (NOI) to total development cost. Prototypes were selected to reflect typical product types in the Inland Empire market:
• Single-Family Detached (SFD) residential;
• Multi-Family Attached (MF) garden-style residential;
• General Commercial (Retail);
120

• Office / Medical Office;
• Industrial / Warehouse.

Key inputs include market rents derived from published Inland Empire datasets, construction cost ranges reflecting RSMeans 2025 benchmarks calibrated to Inland Empire conditions, operating assumptions including vacancy and expense ratios, and total development cost per square foot inclusive of the applicable DIF. ROC is computed for each prototype under two conditions: (1) with DIFs included in total development cost and (2) without DIFs, removing only the fee component. This isolates the incremental impact of DIFs on feasibility while holding all other variables constant.

Development Prototypes and Market Inputs
Residential Prototypes:

Single-Family Detached (SFD): A representative new SFD home in Grand Terrace is modeled at 1,916 square feet, consistent with the adopted Average Residential Unit Size (ARUS). Based on recent Grand Terrace housing trends and regional comparables, a realistic newconstruction price assumption is approximately $390 per square foot, or roughly $747,000 per home.

Multi-Family (MF): Garden-style apartment prototypes reflect unit sizes of approximately 850 square feet, aligning with local projects such as The Heights and The Highlands at Grand Terrace. Market rents for modern Inland Empire apartments indicate a central rent anchor of approximately $2.60 per square foot per month, yielding annual effective NOI of approximately $19.27 per square foot after vacancy and operating costs.

Nonresidential Prototypes:

Retail: Neighborhood-serving retail in the Inland Empire rents for approximately $1.72 per square foot per month. A 10,000-square-foot retail shell building is used as the prototype.

Office: Small-scale office and medical office spaces in the Inland Empire typically achieve approximately $2.15 per square foot per month on a full-service basis. A 10,000-square-foot office prototype is used for testing.

Industrial: Modern tilt-up industrial buildings in the region achieve approximately $1.45 per square foot per month. A 50,000-square-foot warehouse prototype is selected to match market norms.

Development Cost Assumptions
Construction cost ranges were selected to align with RSMeans 2025 benchmarks for the Inland Empire. These ranges include hard costs, soft costs, land, professional fees, and contingency, and are applied to each prototype as follows:
121

• Retail: $275–$375 per square foot;
• Office / Medical Office: $300–$450 per square foot;
• Industrial tilt-up warehouse: $125–$200 per square foot; • Garden-style multi-family: $250–$325 per square foot.

Single-family feasibility is assessed primarily relative to sale price rather than ROC because SFD projects are typically financed and evaluated on a for-sale basis. For SFD, the analysis focuses on the share of total home value represented by DIFs and the approximate impact on a conventional 30-year mortgage.

Fee Load and Cost Impact
Using the adopted Grand Terrace DIF schedule, the analysis calculates total fee loads per unit for residential prototypes and per square foot for nonresidential prototypes. These fee loads are compared to total development costs and sale prices.

Residential Fee Loads:

For Single-Family Detached, the DIF rate is approximately $6.71 per square foot. Applying this rate to the 1,916-square-foot ARUS yields a total DIF load of approximately $12,852 per new SFD home. At a $747,000 home value, this equates to roughly 1.7% of the home price and adds about $85 per month to a 30-year mortgage at 7% interest.

For Multi-Family, the DIF rate is approximately $14.78 per square foot. Applied to an 850- square-foot unit, this results in a total DIF of approximately $12,567 per unit. Across typical MF development cost ranges ($250–$325 per square foot), this fee represents roughly 4.5%– 6% of total development cost.

Nonresidential Fee Loads:

For a 10,000-square-foot General Commercial (retail) prototype, the combined DIF burden is approximately $0.40 per square foot, or $3,974 per building. Across total development cost ranges of $275–$375 per square foot, this represents approximately 0.11%–0.14% of total development cost.

For a 10,000-square-foot Office prototype, the DIF rate of approximately $0.28 per square foot results in a total fee burden of about $2,796 per building. This represents roughly 0.06%–

0.09% of total development cost across the $300–$450 per square foot range.

For a 50,000-square-foot Industrial prototype, the DIF rate of approximately $0.23 per square foot results in a total fee burden of about $11,620 per building. This represents approximately 0.12%–0.19% of total development cost across the $125–$200 per square foot range.

Feasibility Results: Return-on-Cost (ROC)
Return-on-cost (ROC) is calculated as annual net operating income divided by total development cost. The feasibility analysis compares ROC outcomes with DIFs included in 122

total development cost and with DIFs removed, in order to isolate the incremental effect of fees.

Single-Family Detached:

For SFD, DIFs are evaluated as a share of total home value and as an incremental mortgage cost. With a total fee load of approximately $12,852 per home, DIFs account for roughly 1.7% of a $747,000 home and do not constitute a binding constraint on new home construction.

Multi-Family Residential:

For the multi-family prototype, annual NOI per square foot is derived from market rents of approximately $2.60 per square foot per month, a 5% vacancy allowance, and operating expenses of about 35% of effective gross income. Across development cost ranges of $250– $325 per square foot, ROC remains within commonly acceptable Inland Empire underwriting thresholds even with DIFs included. Removing DIFs increases ROC by approximately 0.3–0.5 percentage points, indicating that construction costs, financing conditions, and land pricing— not DIFs—are the primary feasibility drivers.

Retail, Office, and Industrial:

For retail, office, and industrial prototypes, the DIF share of total development cost is well below 1%, and the effect on ROC is negligible. For neighborhood retail, the change in ROC from removing DIFs is less than 0.01 percentage points. For office, ROC changes by roughly

0.005 percentage points. For industrial, ROC changes by less than 0.02 percentage points. In each case, project feasibility is overwhelmingly driven by rents, land values, and construction costs rather than by the DIF schedule.

Findings and Conclusions
• Residential DIFs are modest relative to total project costs. For SFD, fees equal approximately 1.7% of a new home price. For MF, fees represent approximately 4.5%– 6% of total development cost.
• ROC impacts are minimal across all prototypes. Multi-family ROC reduction is less than

0.5 percentage points; commercial ROC reductions are less than 0.02 percentage points. • Commercial fee burdens are low relative to total development cost. Across retail, office, and industrial prototypes, DIFs consistently comprise less than 0.2% of total development cost.
• Primary feasibility drivers are external to DIFs. Construction costs, land pricing, and financing terms exert far more influence on development viability than the adopted DIF schedule.
123

• The DIF program complies with AB-602 and the Mitigation Fee Act. The fees maintain proportionality, remain modest relative to development economics, and do not inhibit feasible project delivery in Grand Terrace.

Based on this analysis, the proposed maximum justified Development Impact Fees are not a binding constraint on new development in Grand Terrace. They remain consistent with AB602, the Mitigation Fee Act, and widely accepted feasibility standards.

Market Data Sources and Assumptions
This section documents the market data sources and supporting references used to develop the Development Feasibility Analysis. The information below summarizes publicly available sources that inform revenue assumptions, construction cost ranges, operating cost estimates, and rental and pricing benchmarks for the development prototypes evaluated in this appendix.

Residential Market Data Sources:
• Redfin – Grand Terrace median sale price trends, price per square foot, and recent transaction summaries.
• Zillow – Local home value index, recent sale listings, and price per square foot indicators. • Realtor.com – Listing prices, price per square foot, and 92313-submarket housing statistics.
• ATTOM Data Solutions – City-level home price and sales activity summaries. • ApartmentHomeLiving – Published rent ranges and unit sizes for local multi-family properties.

These sources were used to establish typical unit sizes and realistic modern market rents for new or recently built multi-family projects, as well as representative sale price assumptions for new single-family homes in Grand Terrace.

Commercial and Industrial Market Data Sources:
• Kidder Mathews – Inland Empire Retail, Office, and Industrial market reports. • Cushman & Wakefield – Inland Empire MarketBeat reports for Office and Industrial. • CommercialEdge – Regional industrial and multi-family rent analytics. • NAI and similar brokerage reports – Southern California industrial and logistics market conditions.
• Local retail and office listings in the Grand Terrace / Colton / Loma Linda trade areas.

These reports support modeled rental rates of approximately $1.72 per square foot per month for retail, approximately $2.15 per square foot per month for office, and approximately $1.45 per square foot per month for industrial space, consistent with Inland Empire market conditions.
124

Construction Cost Data Sources:

Construction cost assumptions were derived from RSMeans 2025 category benchmarks and adjusted for Inland Empire regional cost factors. While proprietary RSMeans values are not reproduced directly, the feasibility model reflects cost ranges consistent with Inland Empire market construction pricing, including the ranges listed in Section 5 of this appendix.

Operating and Financial Assumptions:
• Vacancy rate: generally 5% across residential and commercial prototypes. • Operating expense ratios: approximately 35% for retail and office, and approximately 25% for industrial.
• Return-on-cost thresholds: consistent with Inland Empire underwriting standards for each product type.
• Financing parameters: industry-standard loan-to-cost ratios, interest assumptions, and capitalization rates.

All market assumptions used in this feasibility analysis are derived from publicly available, industry-standard sources. Detailed workpapers, internal calculation files, and underlying market data excerpts may be made available to the City for audit or validation purposes.

These sources collectively provide a transparent, objective foundation for the feasibility modeling in this appendix.
125

End of Report

Land Use Cost Basis
Law Enforcement
Facilities
Street
Improvement
General City
Facilities
Public Use Facilities
Parkland
Acquisition and
Park Facilities
Single Family Detached Per Square Foot $0.058 $0.015 $0.349 $2.279 $4.007 Multi-Family Attached Per Square Foot $0.155 $0.014 $0.143 $5.247 $9.226 Manufactured/Mobile Homes Per Square Foot $0.069 $0.011 $0.270 $3.804 $6.688 General Commercial Per Square Foot $0.154 $0.104 $0.140 n/a n/a Office Commercial Per Square Foot $0.109 $0.031 $0.140 n/a n/a Industrial Per Square Foot $0.052 $0.017 $0.163 n/a n/a Land Use Cost Basis Total DIF
Single Family Detached Per Square Foot $6.708
Multi-Family Attached Per Square Foot $14.785
Manufactured/Mobile Homes Per Square Foot $10.841
General Commercial Per Square Foot $0.397
Office Commercial Per Square Foot $0.280
Industrial Per Square Foot $0.232
City of Grand Terrace Development Impact Fee Master Fee Schedule Development Impact Fee Per Infrastructure
Development Impact Fee Per Land Use Total