The City of HerculesDevelopment Impact Fees
Presented by Revenue & Cost Specialists
Development Impact Fees (DIF) are charges imposed by local governments on new development projects to help cover the cost of public infrastructure and services made necessary by that development.
The idea is to ensure that new growth "pays its fair share" of the infrastructure it requires, rather than burdening existing taxpayers.
WHAT ARE IMPACT FEES?
HOW TO CREATE A DEVELOPMENT IMPACT FEE
Establish a Land Use Database of the City
Establish the current level of service for each infrastructure.
Determine the impact of new development on the City’s infrastructure.
Determine the projects necessary to accommodate new development.
Determine the project costs and distribute these costs across new development.
Create a Master Facilities Plan.
Current residents will need to subsidize the infrastructure required to accommodate new development.
The current Level of Service will drop for both current and future residents and businesses.
WHAT HAPPENS IF THERE ARE NO IMPACT FEES
Nollan v. California Coastal Commission
Dolan v. City of Tigard
COUNTY OF EL DORADO v. SHEETZ
This ruling clarifies that all governmental exactions, whether legislatively or administratively imposed, must meet the Nollan/Dolan standards.
Nollan v. California Coastal Commission
HOW A NEXUS IS DETERMINED & CALCULATED
LAW ENFORCEMENT
2023 Calls for Service to Detached Dwelling Units: 2,962 5,795 Existing Detached Dwelling Units
2,962 Calls for Service ÷ 5,795 Detached Units = 0.511 Call Generation Rate One Detached Dwelling Unit Created on Average 0.511 Calls for Service in 2023 40 Detached Dwelling Units are Anticipated at Build-Out 40 Detached Units × 0.511 Call Generation Rate = 20 Anticipated Calls for Service from Detached Units Total Anticipated Calls at Build-Out is 3,502
Of the 3,502 Total Calls, Detached Units Make Up 0.57% of the Total Call Volume
0.57% is Applied to the Total Project Costs Required by Law Enforcement At Build Out
0.57% ($9,376) is distributed to the Anticipated Detached Dwelling Units Resulting in a Fee of $234
NEXUS USED PER INFRASTRUCTURE
Public Safety: Calls for Service
Storm Drainage: Runoff Coefficient
General Government: Per Capita
Quality of Life: Per Capita
Dolan v. City of Tigard
City of Hercules Impact Fees
Law Enforcement
Storm Drainage
General Government
Public Use Facilities
Parkland and Open Space
RCS calculates the maximum amount of the DIF.
The City determines the appropriate amount of the DIF.
WHO DETERMINES THE DIF AMOUNT?
Land Use
Development Impact Fee
Detached Dwelling Unit
$14,101
Attached Dwelling Unit
$9,040
Commercial Lodging
$3,295
Retail/Service/Office Uses (SF)
$4.606
Industrial Uses (SF)
$1.614
Institutional Uses (SF)
$2.238
PROPOSED DEVELOPMENT IMPACT FEES
Development Impact Fees to be Updated
Land Use
Law Enforcement
General Government
Parkland
Current Fee
New Fee
Current Fee
New Fee
Current Fee
New Fee
Detached Dwelling Unit
$1,522
$234
$858
$148
$1,770
$7,706
Attached Dwelling Unit
$950
$249
$538
$148
$1,072
$4,986
Commercial Lodging Per Room
$31
$160
$28
$1,803
N/A
No Fee
Retail, Office & Service Per SF
$0.51
$2.74
$0.28
$1.02
N/A
No Fee
Industrial Uses Per SF
$0.22
$0.35
$0.49
$1.02
N/A
No Fee
Institutional Uses Per SF
N/A
$0.29
N/A
$1.02
N/A
No Fee
New Development Impact Fees
Land Use
Storm Drainage
Public Use Facilities
Detached Dwelling Unit
$504.00
$5,509.00
Attached Dwelling Unit
$93.00
$3,564.00
Commercial Lodging Per Room
$1,332.00
No Fee
Retail, Office & Service Uses Per SF
$0.85
No Fee
Industrial Uses Per SF
$0.25
No Fee
Institutional Uses Per SF
$0.93
No Fee
Unchanged Development Impact Fees
Land Use
Public Benefit for the
Fire
Transportation
Sewer
West County Sub-Regional
Bayfront Project
Facilities
Facilities
Facilities
Transportation Mitigation Fee
Single Family
$4,000.00
$1,886.00
$6,204.00
$4,857.00
$6,964.00
Multi Family
$2,350.00
Apartment:
$1,163
ADU: $881
$3,511.00
$4,857.00
$3,431.00
Hotel Per Room
$0.20
$114.00
$2,277.00
$1,878.00
$4,457.00
Commercial Retail Per SF
$0.20
$1.00
$8.00
$0.62
$8.44
Office Per SF
$0.20
$1.00
$6.00
$1.00
$11.17
Industrial Per SF
None
$1.00
$6.00
$1.00
$7.12
Any Questions?
THANK YOU!