Long Beach City Council
November 1, 2022

CITY OF
LONG
Development Services Department
411 West Ocean Boulevard, 3'd Floor Long Beach, CA 90802 (562) 570-5237
November 1, 2022

HONORABLE MAYOR AND CITY COUNCIL
City of Long Beach
California
RECOMMENDATION:

H-25
Receive supporting documentation into the record and conclude the public hearing; Declare an Ordinance amending the Long Beach Municipal Code to establish. Chapter

18.19, establishing the Sensitive Coastal Resource Impact Fee to $0.25 fee per gross square foot for residential development and $0.25 per gross square foot for nonresidential development for certain parcels in the Mixed-Use Commercial Core and Mixed-Use Marina designations of the Southeast Area Specific Plan (SEASP) area, read the first time and laid over to the next regular meeting of the City Council for final reading; and,
Adopt a Resolution in compliance with Mitigation Fee Act, California Government Code Sections 66000 through 66025 establishing the Sensitive Coastal Resource Impact Fee to $0.25 fee per gross square foot for residential development and $0.25 per gross square foot for nonresidential development for certain parcels in the Mixed-Use Commercial Core and Mixed-Use Marina designations of the SEASP area. The fee would be applied to any development that results in a net increase in development in the area subject to the SEASP. (District 3)

DISCUSSION
On September 19, 2017, the City Council certified Environmental Impact Review 02-16, selecting the reduced intensity alternative, denied an appeal, amended the City's Local Coastal Program (LCP), amended the Long Beach Municipal Code (LBMC) to establish the Southeast Area Specific Plan (SEASP) (SP-2) and repealed the Southeast Area Development and Improvement Plan (SEADIP) (PD-1 ), and amended the Land Use District Map, in the southeastern portion of Council District 3. On October 8, 2020, the California Coastal Commission (CCC) held a hearing for the Local Coastal Program Amendment (LCPA) (LCPA No. 1-19 [LCP-5-LOB-19-0008-1 ]). The CCC recommended certification of the LCPA with 16 modifications necessary to protect coastal resources including sensitive habitat, biological resources, cultural resources, lower-cost overnight accommodations, recreational opportunities, and public coastal views. The required CCC modifications were presented and

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adopted by the City Council on July 13, 2021. On September 8, 2021, the CCC certified the SEASP.

The SEASP represents tradeoffs and compromises that are inherent in a planning process with lengthy and complex efforts to fully engage residents, businesses, and property owners. The SEASP planned for the establishment of an impact fee on new development for certain parcels with the purpose of funding the monitoring and maintenance of sensitive coastal resources, along with improved public access. A study was prepared to estimate the cost to monitor and maintain sensitive coastal resources in the area subject to the SEASP, establish the nexus between new development and resource monitoring costs, and recommend a development impact fee (Sensitive Coastal Resource Impact Fee) to pay for costs (the study) (Attachment A). The study is intended to satisfy the requirements of the Mitigation Fee Act (Government Code sections 66000 through 66008) to establish a nexus between the purpose of the fee, the types of development subject to the fee, and the amount of the fee. The Sensitive Coastal Resource Impact Fee shall cover a baseline study, monitoring, and maintenance of four (4) acres of buffer and four ( 4) acres of adjacent wetlands in the SEASP area. The proposed Sensitive Coastal Resource Impact Fee requires City Council approval to amend the LBMC by adding Chapter 18.19 to establish and implement the proposed fee.

The proposed Ordinance indicates all residential development and nonresidential square footage in the Mixed-Use Commercial Core and Mixed-Use Marina of SEASP shall be required to pay the impact fees prior to the issuance of a Certificate of Occupancy. The specific parcels to which the fee would apply are specified in the study. The Ordinance specifies that the fee is to be calculated based on an individual development project's net increase in development.

The fee shall be applied to the total amount of new construction. Table 1 shows the maximum allowed fees under the nexus study.

T. bl 1 I/Vi ti d /H b ·t t R t t' I t F, a e e an s a ta es ora ton mpac ee Land Use Metric Amount
Residential Per square foot $0.25
Nonresidential Per square foot $0.25
This Resolution proposes to establish the Sensitive Coastal Resource Impact Fee of $0.25 fee per gross square foot for residential development and $0.25 per gross square foot for nonresidential development for the identified parcels in the Mixed-Use Commercial Core and Mixed-Use Marina designations of the SEASP area. The impact fee includes an administrative fee of three percent. Adjustments to the fee will be done by Resolution of the City Council.

The Ordinance provides for the exemption of development projects that include affordable housing units.

The SEASP and 2022 Housing Element encourage the provIsIon of very low-, low-, or moderate-income and workforce housing units in accordance with State density bonus (California Government Code 65915) and the citywide approach to housing policy. As an incentive for the provision of constructing affordable housing in the SEASP, which is largely in

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the Coastal Zone, the Ordinance exempts residential units that qualify as low- and very-low income housing as defined under State law from the impact fee. Furthermore, projects utilizing a density bonus for affordable housing, consistent with State law, shall receive an impact fee credit.

In the SEASP, the City of Long Beach (City) commits to establish a Wetlands Conservation and Monitoring Fund, which will receive revenue from the Sensitive Coastal Resource Impact Fee on new development. The proposed Ordinance sets forth that the impact fees collected for projects will be deposited in the Fund for use on the above-identified restoration work.

The proposed fee will take effect 60 days after approval. Balances and uses of the collected fees shall be reported to the City Council annually in March in accordance with State law requiring this information be made available to the public within 180 days after the last day of the fiscal year. This annual report to the City Council also includes the Park and Recreation Facilities Fees, Transportation Improvement Fee, the Fire Facilities Impact Fee, and the Police Facilities Impact Fee.

In compliance with State law (Mitigation Fee Act, California Government Code Sections 66000 through 66025), the proposed Ordinance includes the requirement to make findings every five years to examine the relationship of the Sensitive Coastal Resource Impact Fee to the impact it is supposed to mitigate and to evaluate the validity of the calculations on which the fee is based.

This matter was reviewed by Deputy City Attorney Erin Weesner-McKinley on October 17, 2022 and by Revenue Management Officer Geraldine Alejo on October 12, 2022.

Public Hearing Notice
Government Code § 66018 contains the public hearing requirements for the adoption or increase of impact fees. Under Government Code § 66018, the local agency must conduct at least one regularly scheduled meeting with notice given pursuant to Government Code § 6062a, which requires publication of notice pursuant to this section shall be for 10 days in a newspaper regularly published once a week or more often. Notices of public hearing were published in the Long Beach Press-Telegram for 10 days from October 7 through October 16, 2022. Notices were mailed to all property owners and occupants in the SEASP Areas of Change subject to the proposed fee, Coastal Commission, Los Cerritos Wetlands Trust, and Los Cerritos Wetlands Authority.

TIMING CONSIDERATIONS
City Council action is requested on November 1, 2022, to ensure compliance with adoption of the CCC required modifications to SEASP.

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FISCAL IMPACT
This recommendation will establish a Sensitive Coastal Resource Impact Fee. Following implementation, the impact fee is estimated to generate a total maximum revenue amount of $670,000. Actual revenue is anticipated starting in FY 24 and will depend on square footage constructed within the SEASP mixed use areas. Impact fee revenue is intended for projects and uses that address the impacts of increased population and economic activity arising from new development in the SEASP area. Any work related to the proposed uses for impact fee revenue will only proceed at such time that the detailed scope of work has been reviewed to ensure the uses are eligible for impact fee support and appropriations have been approved by the City Council. This recommendation will have no staffing impacts beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. This includes City Council's adopted plans and policies, such as the SEASP. There is no local job impact associated with this recommendation.

SUGGESTED ACTION:

Approve recommendation.

Respectfully submitted,
~~

ACTING DIRECTOR

DEVELOPMENT SERVICES
ATTACHMENTS: ORDINANCE

RESOLUTION
APPROVED:

THOMAS 8. MODICA

CITY MANAGER

A- NEXUS STUDY FOR SENSITIVE COASTAL RESOURCE IMPACT FEE

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 W. Ocean Boulevard, 9th Floor
Long Beach, CA 90802

ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF LONG BEACH AMENDING THE LONG BEACH
MUNICIPAL CODE BY ADDING 18.19 TO ESTABLISH A

SENSITIVE COASTAL RESOURCE IMPACT FEE
The City Council of the City of Long Beach ordains as follows:

Section 1. The Long Beach Municipal Code is amended by adding Chapter

18.19 to read as follows:

Chapter 18.19

SENSITIVE COASTAL RESOURCE IMPACT FEE

18.19.010 Legislative findings.

A. The state of California, through the enactment of Government Code Sections 66001 through 66009 has authorized the City to impose development impact fees on new development for the purposes of funding the public infrastructure and services necessary to serve that new development.

B. The imposition of development impact fees is one of the preferred methods of ensuring that development bears a proportionate share of the cost of capital facilities, infrastructure, services and related costs necessary to accommodate such development. This must be done in order to promote and protect the public health, safety and welfare.

C. That the continuing increase in the development of residential and nonresidential construction in the Southeast Area Specific Plan (SEASP) (SP-2) plan area has created an urgency in that funds are needed for the increased demand for additional infrastructure and services required to protect and sustain sensitive coastal

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 W. Ocean Boulevard, 9th Floor
Long Beach, CA 90802

resources which are required to serve the increasing residential and workforce population of the SEASP plan area.

D. The fees established pursuant to this Chapter are derived from, are based upon, and do not exceed the costs of providing additional infrastructure and services required to protect and sustain sensitive coastal resources attributable to new residential or nonresidential construction, in areas designated for mixed-use, community core and mixed-use marina in the SEASP plan area. The additional infrastructure and services include a baseline study, conducted prior to new development, to document the state and function of the buffer area and adjacent wetlands; monitoring that is related to impacts of nearby development (new residents and increased business patrons) such as damage from pedestrians/hikers in the buffer and wetlands area, exposure to non-native seeds from landscaping, lighting, and increased trash and debris; periodic trash and debris removal of the buffer area and adjacent wetlands and administrative costs associated with the Sensitive Coastal Resource Impact Fee program. The activities covered by the Sensitive Coastal Resource Impact Fee are specifically targeted to address the issues of increased public use and increased litter, trash, and debris arising from new development and increased population and economic activity.

E. The fees collected pursuant to this Chapter shall be used to finance the infrastructure and services identified in Subsection D.

F. A detailed study of the nexus between anticipated new development to be located in areas designated for mixed-use, community core and mixed-use marina uses in the SEASP plan area and the additional infrastructure and services required to protect and sustain sensitive coastal resources (inclusive of wetlands, buffers, and habitat) as a result of the anticipated increase in development has been prepared. This study is entitled the "Nexus Study for Sensitive Coastal Resources Impact Fee" for the City of Long Beach dated August 31, 2022 (“the Study”) which is incorporated herein by reference as though set forth in full, word for word.

G. The fees collected shall apply to the areas designated for mixed-use,

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 W. Ocean Boulevard, 9th Floor
Long Beach, CA 90802

community core and mixed-use marina uses as shown in Figure A-1 in the Appendix to the Study and as further described in Section 6 of the Study.

H. There is a reasonable relationship between the need for the additional infrastructure and services required to protect and sustain sensitive coastal resources set forth in Subsection D and the impacts of the types of development for which the corresponding fee is charged.

I. There is a reasonable relationship between the fee's use and the type of development for which the fee is charged.

J. There is a reasonable relationship between the amount of the fee and the cost of the additional infrastructure and services or portion thereof attributable to the development on which the fee is imposed.

18.19.020 Purpose.

A Sensitive Coastal Resource Impact Fee is hereby imposed on new residential and nonresidential development for the purpose of assuring that the impacts created by said new development pay its fair share of the costs required to support needed additional infrastructure and services and related costs necessary to accommodate such development.

18.19.030 Definitions.

A. "Accessory use" is as defined in Section 21 .15.060 of this Code.

B. "Applicant" means the property owner, or duly designated agent of the property owner, for which a request for building permit is received by the City.

C. "Building permit" means the City permit required for new building construction and/or additions which add square footage pursuant to Title 18 of this Code.

Neither a grading permit nor a foundation permit shall be considered a building permit for purposes of this Chapter.

D. "Calculation" means the point in time at which the City calculates the

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 W. Ocean Boulevard, 9th Floor
Long Beach, CA 90802

Sensitive Coastal Resource Impact Fee to be paid by the applicant. Calculation will generally occur at the time of issuance of the applicable building permit but may occur earlier in the development approval process.

E. "City Manager" means the City Manager of the City of Long Beach or other municipal officials he/she may designate to carry out the administration of this Chapter.

F. "Collect”, or "collection" means the point in time at which the Sensitive Coastal Resource Impact Fees are paid by the applicant. Collection will occur on the date of final inspection or the date a certificate of occupancy or temporary certificate of occupancy, whichever occurs first.

G. "Development" means the addition of new residential square footage and/or new nonresidential square footage to an undeveloped, partially developed or redeveloped site and involving the issuance of a building permit and certificate of occupancy for such construction, reconstruction or use. Development does not include the following so long as no additional gross floor area is added:

1. a permit to operate;

2. a permit for the internal alteration, remodeling,
rehabilitation, or other improvements or modifications to an existing structure;

3. the rebuilding of a structure destroyed by an act of God or the rehabilitation or replacement of a building in order to comply with the City's seismic safety requirements;

4. parking facilities; or

5. the rehabilitation or replacement of a building
destroyed by imminent public hazard, acts of terrorism, sabotage, vandalism, warfare or civil disturbance except where said destruction was caused or in any manner accomplished, instigated, motivated, prompted, incited, induced, influenced, or participated in by any persons or their

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 W. Ocean Boulevard, 9th Floor
Long Beach, CA 90802

agents having any interest in the real or personal property at the location.

H. "Dwelling unit" or "DU" is as defined in Section 21 .1 5.910 of this Code.

I. “Fee” means a Sensitive Coastal Resource Impact Fee imposed by the City of Long Beach in accordance with this Chapter.

J. "Fee setting resolution" means and refers to the City resolution specifying the Sensitive Coastal Resource Impact Fee per net increase in gross building square footage for residential and nonresidential development, by type and by location.

The Sensitive Coastal Resource Impact Fee set forth in the fee-setting resolution may be revised pursuant to Section 18.19.140 and applicable state law.

K. "Development Services Department" means the Development Services Department of the City of Long Beach.

L. "Gross building square footage" means the total area of a residential and/or nonresidential development measured from the exterior building lines of each floor with respect to enclosed spaces but excluding parking spaces whether or not enclosed.

For purposes of this ordinance, the term "enclosed spaces" specifically includes, but is not limited to, an area available to and customarily used by the residential occupants and/or general public and all areas of business establishments generally accessible to the public such as fenced or partially fenced in areas of garden centers attached to and serving the primary structure.

M. "Mixed use" is as defined in Section 21 .15.1760 of this Code N. "Nonresidential development" means a development undertaken for the purpose of creating gross floor area, excluding dwelling units, but which includes, and is not limited to, commercial, industrial, retail, office, hotel/motel, and warehouse uses involving the issuance of a building permit for such construction, reconstruction or use.

O. 'Principal use" is as defined in Section 21 .15. 2170 of this Code.

P. "Residential development" means a development undertaken for the

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 W. Ocean Boulevard, 9th Floor
Long Beach, CA 90802

purpose of creating a new dwelling unit or units and involving the issuance of a building permit and certificate of occupancy for such construction, reconstruction or use.

18.19.040 Fund established.

A Sensitive Coastal Resource Impact Fee fund is established. The Sensitive Coastal Resource Impact Fee fund is a fund to be utilized for payment of the actual or estimated costs of additional infrastructure and services required to protect and sustain sensitive coastal resources related to new residential and nonresidential construction as described in this Chapter and shall be administered in compliance with Government Code Section 66006.

18.19.050 Sensitive Coastal Resource Impact Fee.

There is imposed a Sensitive Coastal Resource Impact Fee on all new residential and nonresidential development in the areas designated for specific parcels mixed-use community core and mixed-use marina uses shown in Figure A-1 in the Appendix to the Study as those terms are defined in this Chapter.

18.19.060 Fee imposed.

A. Any person who, after the effective date of this ordinance, seeks to engage in residential or nonresidential development as defined in this Chapter on one or more of the parcels identified in Figure A-1 in the Appendix to the Study by obtaining a building permit is required to pay a Sensitive Coastal Resource Impact Fee in the manner and amount as set forth in the then current fee-setting resolution. The Sensitive Coastal Resource Impact fee imposed pursuant to this Chapter shall not apply to those projects that have been granted a final entitlement or building permit approval by the Department of Development Services before the effective date of this Chapter..

B. No certificate of occupancy, temporary certificate of occupancy, final inspection approval, as applicable, for the activities listed in Subsection A of this Section

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 W. Ocean Boulevard, 9th Floor
Long Beach, CA 90802

shall be issued unless and until the Sensitive Coastal Resource Impact Fee required by this Chapter has been paid to the City.

18.19.070 Calculation of Sensitive Coastal Resource Impact Fee.

A. The Director of the Department of Development Services shall calculate the amount of the applicable Sensitive Coastal Resource Impact Fee due as specified in the then current fee-setting resolution.

B. The Sensitive Coastal Resources Impact Fee applies to development that results in a net increase in gross residential or nonresidential building square footage.

C. The Director of the Department of Development Services shall calculate the amount of the applicable Sensitive Coastal Resource Impact Fee due by:

1. Determining the gross building square footage for the development project and multiplying the same by the Sensitive Coastal Resource Impact Fee amount as established by the then current fee-setting resolution;

2. For a development project that would result in the
demolition or elimination of then-existing residential or nonresidential building space, the fee would be determined by calculating the gross building square footage for the new construction and multiplying the same by the Sensitive Coastal Resource Impact Fee amount as established by the then current-fee setting resolution less a credit for the reduction or eliminated residential or nonresidential gross building square footage which is calculated by multiplying the eliminated building square footage by the Sensitive Coastal Resource Impact Fee amount as established by the then current-fee setting resolution;

3. The credit for reducing or eliminating residential or nonresidential building square footage shall not exceed the amount of the

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 W. Ocean Boulevard, 9th Floor
Long Beach, CA 90802

fee required for the new construction.

18.19.080 Payment of fee.

A. The City shall collect from the applicant the Sensitive Coastal Resource Impact Fee prior to the issuance of a certificate of occupancy, temporary certificate of occupancy, final inspection, whichever occurs first.

B. Except for an administrative charge that shall be allocated to the Department of Development Services, all funds collected shall be properly identified and promptly transferred for deposit in the Sensitive Coastal Resource Impact Fee fund and used solely for the purposes specified in this Chapter.

18.19.090 Use of funds.

A. Funds collected from the Sensitive Coastal Resource Impact Fee shall be used to cover a limited set of activities as associated with an increase in population near sensitive coastal resources attributable to new residential and nonresidential construction and shall include:

1. The cost to conduct a baseline study to document the state and function of the buffer area and adjacent wetlands;

2. Monitoring that is related to impacts of nearby
development (new residents and increased business patrons) such as damage from pedestrians/hikers in the buffer and wetland areas, exposure to non-native seeds from landscaping, lighting, and increased trash and debris;

3. Periodic trash and debris removal from the buffer area and adjacent wetlands; and

4. Administrative costs associated with the Sensitive
Coastal Resource Impact Fee program.

B. In the event that bonds or similar debt instruments are issued for

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
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Long Beach, CA 90802

advanced provision of the activities for which Sensitive Coastal Resource Impact Fees may be expended, impact fees may be used to pay debt service on such bonds or similar debt instruments to the extent that the activities provided are of the type described in Subsection A of this Section
C. Funds may be used to provide refunds as described in Section

18.19.100.

18.19.100 Refund.

A. Any applicant who has paid a Sensitive Coastal Resource Impact Fee pursuant to this Chapter may apply for a full or partial refund of same, if, within one (1 ) year after collection of the Sensitive Coastal Resource Impact Fee the development project has been modified, pursuant to appropriate City ordinances and regulations, resulting in a reduction in the gross building square footage or the applicability of an exemption pursuant to Section 18.19.110 of this Chapter. The City shall retain a sum equaling twenty percent (20%) of the impact fee paid by the applicant to offset the administrative costs of refund. The applicant must submit an application for such a refund in accordance with Chapter 3.48 of this Code. In no event shall a refund exceed the amount of the Sensitive Coastal Resource Impact Fee actually paid.

B. Any funds collected pursuant to this chapter which remain unexpended or uncommitted five or more years after their deposit may be refundable pursuant to Government Code Section 66001(e) with interest accrued.

18.19.110 Exemptions and credits.

A. Exemptions. Any claim of exemption must be made no later than the time of application for a building permit. The following shall be exempted from payment of the Sensitive Coastal Resource Impact Fee:

1. Alterations or expansion of an existing residential
building where no additional gross residential square footage is added and

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 W. Ocean Boulevard, 9th Floor
Long Beach, CA 90802

where the use is not changed;

2. The replacement of a building or structure destroyed by fire, flood, earthquake or other act of God, with a new building or structure of the same size and use;

3. Nonresidential Development: Construction or
occupancy of a new nonresidential building or structure or an addition to or expansion of an existing nonresidential building or structure of three thousand (3,000) gross square feet or less;

4. Affordable Housing for Lower Income Households.

Property rented, leased, sold, conveyed or otherwise transferred, at a rental price or purchase price which does not exceed the "affordable housing cost" as defined in Section 50052.5 of the California Health and Safety Code when provided to a "lower income household" as defined in Section 50079.5 of the California Health and Safety Code or "very low income household" as defined in Section 50105 of the California Health and Safety Code. This exemption shall require the applicant to execute an agreement to guarantee that the units shall be maintained for lower and very low income households whether as units for rent or for sale or transfer, for the lesser of a period of thirty years or the actual life or existence of the structure, including any addition, renovation or remodeling thereto. The agreement shall be in the form of a deed restriction or other legally binding and enforceable document acceptable to the City Attorney and shall bind the owner and any successor-in interest to the real property being developed. The agreement shall subordinate, if required, to any state or federal program providing affordable housing to lower and very low-income households. The agreement shall be recorded with the Los Angeles County Recorder prior to the issuance of a certificate of occupancy. The City's Housing Services Bureau shall be notified of pending transfers or

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 W. Ocean Boulevard, 9th Floor
Long Beach, CA 90802

purchases and give its approval of the purchaser's qualifying income status and purchase price, prior to the close of escrow. The City's Housing Services Bureau shall be notified of pending rentals and give its approval of proposed tenant's qualifying income status and rental rate, prior to the tenant's occupancy. Applicant or any successor-in-interest shall be required to provide annually, or as requested, the names of all tenants or purchasers, current rents, and income certification to ensure compliance.

Voluntary removal of the housing restriction or violation of the restriction shall be enforced by the City's Housing Services Bureau and shall require the applicant or any successor-in-interest to pay the then applicable Sensitive Coastal Resource Impact Fee at the time of voluntary conversion or as imposed at the time of violation on the unit in violation, plus any attorneys' fees and costs of enforcement, if applicable.

5. Hospitals as that term is defined in Section 21 .15.1370 of this Code.

B. Credits. Any applicant whose development is located within a Community Facilities District (CFD), and is subject to the assessments thereof, shall receive an offset credit towards the fees established by this Chapter to the extent that the assessments fund improvements within the CFD which would otherwise be funded by the development impact fees established by this Chapter.

18.19.120 Appeals.

A. An applicant may appeal, by protest, any imposition of the Sensitive Coastal Resource Impact Fee by filing a notice of appeal with the City Clerk within ninety (90) days after the applicant pays the required fee.

B. A valid appeal by protest of the imposition of the Sensitive Coastal Resource Impact Fee shall meet all of the following requirements:

1. Tendering in advance of the appeal any required

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 W. Ocean Boulevard, 9th Floor
Long Beach, CA 90802

payment in full or providing assurance of payment satisfactory to the City Attorney;

2. Serving written notice on the City including:
a. A statement that the required payment has been
tendered under protest or that required conditions have been satisfied; b. A statement informing the City of the factual
elements of the dispute and the legal theory forming the basis of the protest;
c. The name and address of the applicant;
d. The name and address of the property owner;
e. A description and location of the property;
f. The gross building square footage, by land use
or dwelling unit type, as appropriate; and
g. The date of issuance of the building permit.

C. The City Council shall schedule a hearing and render a final decision on the applicant's appeal within sixty (60) days after the date the applicant files a valid appeal.

D. The City Council hearing shall be administrative. Evidence shall be submitted by the City and by the applicant and testimony shall be taken under oath.

E. The burden of proof shall be on the applicant to establish that the applicant is not subject to the imposition of the Sensitive Coastal Resource Impact Fee pursuant to the express terms of this Chapter and applicable state law.

F. If the Sensitive Coastal Resource Impact Fee has been paid in full or if the notice of appeal is accompanied by a cash deposit, letter of credit, bond or other surety acceptable to the City Attorney in an amount equal to the Sensitive Coastal Resource Impact Fee calculated to be due, the application for the building permit shall be processed. The filing of a notice of appeal shall not stay the imposition or the collection of the Sensitive Coastal Resource Impact Fee calculated by the City to be due unless

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 W. Ocean Boulevard, 9th Floor
Long Beach, CA 90802

sufficient and acceptable surety has been provided.

G. Any petition for judicial review of the City Council's final decision shall be made in accordance with applicable state law and pursuant to Section

18.19.130.

18.19.130 Judicial review.

A. Any judicial action or proceeding to attack, review, set aside, void or annul the ordinance codified in this Chapter, or any provision thereof, or resolution, or amendment thereto, shall be commenced within ninety (90) days of the effective date of the ordinance codified in this Chapter, resolution, or any amendment thereto.

B. Any judicial action or proceeding to attack, review, set aside or annul the imposition or collection of a Sensitive Coastal Resource Impact Fee on a development shall be preceded by a valid appeal by protest pursuant to Section

18.19.120 hereof and a final decision of the City Council pursuant thereto and shall be filed and service of process effected within ninety (90) days after the hearing on appeal regarding the imposition of a Sensitive Coastal Resource Impact Fee upon the development.

18.19.140 Reporting, Findings and amendment procedures.

A. Within 180 days after the last day of each fiscal year, the Director of the Department of Development Services shall evaluate progress in implementation of the Sensitive Coastal Resource Impact Fee Program and shall prepare a report thereon to the City Council in accordance with Government Code Section 66006 incorporating among other things:

1. The infrastructure, services, including any baseline study, commenced, purchased or completed utilizing monies from the Sensitive Coastal Resource Impact Fee fund;

2. The amount of the fees collected, and the interest

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 W. Ocean Boulevard, 9th Floor
Long Beach, CA 90802

earned;

3. The amount of Sensitive Coastal Resource Impact
Fees in the fund; and

4. Recommended changes to the Sensitive Coastal
Resource Impact Fee, including but not necessarily limited to, changes in the Sensitive Coastal Resource Impact Fee Chapter or fee-setting resolution.

B. Based upon the reports and such other factors as the City Council deems relevant and applicable, the City Council may amend the ordinance codified in this Chapter or the fee-setting resolution implementing this Chapter. Changes to the Sensitive Coastal Resource Impact Fee rates or schedules may be made by amending the fee- setting resolution. Any change which increases the amount of the Sensitive Coastal Resource Impact Fee shall be adopted by the City Council only after a noticed public hearing. Nothing herein precludes the City Council or limits its discretion to amend the ordinance codified in this Chapter or the fee-setting resolution establishing Sensitive Coastal Resource Impact Fee rates or schedules at such other times as may be deemed necessary.

C Every five years, the City Council shall evaluate the Sensitive Coastal Resource Impact Fee program. The five-year report shall include findings with respect to that portion of Sensitive Coastal Resource Impact Fee fund remaining unexpended, whether committed or uncommitted pursuant to Government Code Section 66001, subdivision (d)(1) including, but not limited to:

1. The purpose to which the Fee is to be put;

2. Demonstration of a reasonable relationship between
the fee and the purpose for which it is charged;

3. Identification of all sources and amounts of funding anticipated to complete incomplete improvements; and

4. Designation of the approximate dates on which the

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 W. Ocean Boulevard, 9th Floor
Long Beach, CA 90802

additional funds sufficient for completing the improvements are expected to be deposited in the Fund.

18.19.150 Effect of Sensitive Coastal Resource Impact Fee on zoning and subdivision regulations.

This Chapter shall not affect, in any manner, the permissible use of property, density/intensity of development, design and improvement standards and public improvement requirements or any other aspect of the development of land or construction of buildings, which may be imposed by the City pursuant to the City's zoning regulations, subdivision regulations or other ordinances or regulations of the City, which shall be operative and remain in full force and effect without limitation with respect to all residential and nonresidential development.

18.19.160 Violation--Penalty.

A violation of this Chapter shall be prosecuted in the same manner as misdemeanors are prosecuted; and upon conviction, the violator shall be punishable according to law. However, in addition to or in lieu of any criminal prosecution, the City shall have the power to sue in civil court to enforce the provisions of this Chapter.

18.19.170 Severability.

If any section, phrase, sentence, or portion of this Chapter is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portions shall be deemed a separate, distinct, and independent provision; and such holding shall not affect the validity of the remaining portions thereof.

Section 3. The City Clerk shall certify to the passage of this ordinance by the City Council and cause it to be posted in three (3) conspicuous places in the City of Long Beach, and it shall take effect on the thirty-first (31st) day after it is approved by the

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 W. Ocean Boulevard, 9th Floor
Long Beach, CA 90802

Mayor.

I hereby certify that the foregoing ordinance was adopted by the City Council of the City of Long Beach at its meeting of , 20 , by the following vote:

Ayes: Councilmembers:

Noes: Councilmembers:

Absent: Councilmembers:

Recusal(s): Councilmembers:

City Clerk
Approved:
(Date) Mayor

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OFFICE OF THE CITY ATTORNEY CHARLES PARKIN, City Attorney 411 W. Ocean Boulevard, 9th Floor Long Beach, CA 90802 RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF LONG BEACH ESTABLISHING A SENSITIVE

COASTAL RESOURCE IMPACT FEE AND ADOPTING A

COMPREHENSIVE IMPACT FEE (NEXUS) STUDY FOR

CERTAIN PARCELS WITHIN THE SOUTHEAST AREA

SPECIFIC PLAN AREA WITHIN THE CITY OF LONG
BEACH

WHEREAS, many cities and counties, including the City of Long Beach, have adopted and imposed development impact fees on new development to pay for new development's fair share of the increased demand on infrastructure and services; and WHEREAS, on November 1, 2022, the City Council of the City of Long Beach adopted Ordinance No. _______________, establishing a Sensitive Coastal Resource Impact Fee for specific parcels in the Southeast Area Specific Plan area (“the Area”) within the City of Long Beach; and
WHEREAS, the City retained the consulting firm of PlaceWorks to prepare a nexus study entitled "Nexus Study for Sensitive Coastal Resource Impact Fee" dated August 31, 2022 for the City of Long Beach (the "Study") in accordance with Government Code §§66000 et seq. The Study is attached as Exhibit “A”, and is incorporated herein by reference as though set forth in full, word for word; and WHEREAS, the Sensitive Coastal Resource Impact Fee shall apply to the areas designated for mixed-use, community core and mixed-use marina uses as shown in Figure A-1 in the Appendix to the Study and as further described in Section 6 of the Study; and
WHEREAS, the Study provided the City with information and data regarding the nexus between anticipated new development to be located in the Area and the

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OFFICE OF THE CITY ATTORNEY CHARLES PARKIN, City Attorney 411 W. Ocean Boulevard, 9th Floor Long Beach, CA 90802 additional infrastructure and services required to protect and sustain sensitive coastal resources (inclusive of wetlands, buffers, and habitat) as a result of the anticipated increase in development in the Area; and
WHEREAS, the Study provided data outlining the various necessary infrastructure and services to sustain and protect sensitive coastal resources in the Area, including but not limited to, the preparation of a Baseline Study, subsequent monitoring activities, and ongoing maintenance, including but not limited to, periodic trash and debris removal; and
WHEREAS, it is the City's policy that future new development should contribute its fair share of the increased demand to existing infrastructure and public services though the imposition of impact fees which will be used to finance, defray or reimburse the City for the appropriate portion of the cost of additional public infrastructure and services which will be necessary to serve such development in the Area; and WHEREAS, Chapter 18.19 of the Long Beach Municipal Code (Sensitive Coastal Resource Impact Fee) recognizes that residential and non-residential development on publicly and privately owned land within the Area will result in additional growth and that such growth will place additional burdens on various public infrastructure and services. Chapter 18.19 further recognizes the types of land development (both residential and non-residential) that will generate impacts necessitating the additional infrastructure and services required to protect and sustain sensitive coastal resources (inclusive of wetlands, buffers, and habitat) to meet and accommodate them; and WHEREAS, the City Council has held at least one duly noticed public hearing on the proposed development impact fees with an opportunity for the public to be heard, pursuant to the provisions of Government Code §§66016 — 66018; and WHEREAS, the Study prepared has been available for public review and comment pursuant to the provisions of Government Code §66016; and WHEREAS, pursuant to the provisions of Ordinance No. __________ , the City Council of the City of Long Beach desires to impose and adopt the Development

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OFFICE OF THE CITY ATTORNEY CHARLES PARKIN, City Attorney 411 W. Ocean Boulevard, 9th Floor Long Beach, CA 90802 Impact Fees (Sensitive Coastal Resource Impact Fee) in accordance with the nexus calculations and recommendations in the Study; and
WHEREAS, imposition of fees to finance additional public infrastructure and service improvements is necessary in order to protect and sustain sensitive coastal resources (inclusive of wetlands, buffers, and habitat) in the Area.

NOW, THEREFORE, the City Council of the City of Long Beach resolves as follows:

Section 1. The City Council of the City of Long Beach finds that the purpose of the impact fees hereby established is to prevent new development from reducing the quality and availability of public infrastructure and services in the Area by requiring new development to contribute its fair share to the additional cost to protect and sustain sensitive coastal resources (inclusive of wetlands, buffers, and habitat) from the increased number of residents and increased economic activity from the new development to which the impact fee applies.

Section 2. That the City Council of the City of Long Beach finds and determines that the "Sensitive Coastal Resource Impact Fee Study" dated August 31, 2022 prepared by PlaceWorks (the "Study") complies with California Government Code § 66001 by establishing the basis for the imposition of the fees on new development. This finding is based on the fact that the Study:

A. Identifies the purpose of the fees;
B. Identifies the use to which the fees will be put;
C. Shows a reasonable relationship between the use of the fees and the type of development project on which the fees are imposed; D. Demonstrates a reasonable relationship between the need for the public infrastructure and services and the type of development projects on which the fees are imposed; and
E. Demonstrates a reasonable relationship between the amount of the fees and the cost of the public infrastructure and services or portions thereof attributable

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OFFICE OF THE CITY ATTORNEY CHARLES PARKIN, City Attorney 411 W. Ocean Boulevard, 9th Floor Long Beach, CA 90802 to the residential and non-residential development on which the fees are imposed.

Section 3. That the City Council hereby determines that the fees collected pursuant to this Resolution shall be used to finance the public infrastructure and services described or identified in the above referenced ordinance and Study.

Section 4. That the City Council finds that the projects and fee methodology identified in the Study are consistent with the City’s General Plan, Southeast Area Specific Plan and Capital Improvement Plan.

Section 5. Based on analysis presented in the above referenced Sensitive Coastal Resource Impact Fee Study, the City Council of the City of Long Beach finds that there is a reasonable relationship between:

A. The use of the fee and the development type(s) on which it is imposed;
B. The need for the public infrastructure and services and the type(s) of development on which the fee is imposed; and
C. The amount of the fee and the cost attributable to the development project.

Section 6. The adoption of the Study and the Sensitive Coastal Resource Impact Fee are statutorily and categorically exempt from the requirements of the California Environmental Quality Act ("CEQA"), because the setting of development impact fees merely establishes a funding mechanism for the provision of future projects, and as such, the Resolution is not an essential step culminating in action which may affect the environment, and environmental review required under CEQA will be performed when projects funded by the development impact fees are chosen and defined. (Kaufman & Broad South Bay, Inc. v. Morgan Hill (1993) 9 CaLApp.4th 464).

Section 7. That the City Council adopts the Development Impact Fees as set forth in Section 5 of the Study.

Section 8. That the fees specified in Section 5 of the Study shall become effective sixty (60) days following the adoption of this Resolution by the City Council, and

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OFFICE OF THE CITY ATTORNEY CHARLES PARKIN, City Attorney 411 W. Ocean Boulevard, 9th Floor Long Beach, CA 90802 the City Clerk shall certify to the vote adopting this Resolution.

I hereby certify that the foregoing resolution was adopted by the City Council of the City of Long Beach at its meeting of , 20 , by the following vote:

Ayes: Councilmembers:

Noes: Councilmembers:

Absent: Councilmembers:

Recusal(s): Councilmembers:

City Clerk
Nexus Study for
Sensitive Coastal Resource Impact Fee
City of Long Beach
Southeast Area Specific Plan
August 31, 20 22
Exhibit A
Prepared For:

City of Long Beach
Development Services
411 W. Ocean Blvd.

Long Beach, CA 90802
562-570-5237
www.longbeach.gov/lbds/

Prepared By:

PlaceWorks
3 MacArthur Place, Suite 1100
Santa Ana, CA 92707
(714) 966-9220
www.placeworks.com

Sensitive Coastal Resources Impact Fee Nexus Study Page i Contents
Summary ....................................................................................... 1

1. Introduction .............................................................................. 2 1(A) Southeast Area Specific Plan ................................ . 2 1(B) Sensitive Coastal Resources ................................ .. 3 1(C) Los Cerritos Wetlands Final Conceptual Restoration Plan ................................ ................................ .. 5

2. Land Use and Development Projections ................................. 5 2(A) Existing Development ................................ ........... 5 2(B) Planned Development ................................ .......... 5 2(C) Location of Planned Development .......................... 6

3. Covered Activities .................................................................... 6

4. Estimated Cost of Covered Activities ..................................... 8

5. Amount of Fee .......................................................................... 8 5(A) Cost Allocation by Land Use Type .......................... 8 5(B) Amount of Impact Fee by Land Use Type ................ 9 5(C) Financial Feasibility ................................ ........... 10

6. Applicability of the Fee .......................................................... 11

7. Nexus Findings ....................................................................... 12 7(A) Purpose and Use of the Fee ................................ 13 7(B) Relationship Between the Fee and Types of
Development ................................ .................... 13

8. Appendix .............................................................................. A-1

Page ii City of Long Beach | Southeast Area Specific Plan List of Figures
Figure A-1: Sensitive Coastal Resources Impact Fee: Areas in Which the Fee Applies to New Development and Areas in
Which Impact Fee Revenue May Be Used for Covered
Activities ................................ ................................ ... A-4 Figure A-2: SEASP Areas of Land Use Change ...................... A-4

List of Tables
Table 1: Existing Development, SEASP Plan Area ..................... 5 Table 2: Net Increase in Development (SEASP Development Cap) ................................ ................................ ............ 6 Table 3: Estimated Costs for Activities Covered by the Proposed Sensitive Coastal Resources Impact Fee ............................ 8 Table 4: Cost Allocation by Type of Development ..................... 9 Table 5: Impact Fee for Residential and Nonresidential Building Space per Gross Square Foot ................................ ......... 10 Table 6: Financial Feasibility Impact of Proposed Sensitive Coastal Resources Impact Fee................................ ........ 11

Table A -1: Parcels Designated in SEASP for Mixed -use
Community Core and Mixed-use Marina Use Upon Which
Proposed Sensitive Coastal Resource Impact Applies ........ A-2 Table A -2: Parcels Desi gnated in SEASP for Coastal
Habitat/Wetlands/Recreation Use Upon Which Impact Fee
Revenues May Pay for Covered Activities ........................ A-3

Sensitive Coastal Resources Impact Fee Nexus Study Page 1 Summary
The Southeast Area Specific Plan (SEASP) represents tradeoffs and compromises that are inherent in a planning process with lengthy and complex efforts to fully engage residents, businesses, and prop- erty owners. SEASP eliminated residential and commercial devel- opment that the former Southeast Area Development Plan (SEADIP) previously authorized in areas now understood to potentially be wet- lands and/or habitat, and it authorized an increase in development density and intensity in a limited area of change, primarily along Pacific Coast Highway. SEASP also planned for the establishment of an impact fee on new development with the purpose of funding limited activities to ameliorate potential impacts on sensitive coast resources, which impacts result from residential development and increased economic activity in proximity to these resources . The covered activities are only eligible for funding in areas planned for Coastal Habitat/Wetlands/Recreation uses. The proposed fee is set at a level that would fund covered activities on approximately eight acres of sensitive coastal resources. However, the specific location and acreage will be determined by a subsequent restoration plan (not funded by the impact fee) and may occur anywhere in the area designated for Coastal Habitat/Wetlands/ Recreation uses.

This study presents the analysis for determining the amount of the impact fee, its applicability, and the types of activities that may be funded with revenue from the impact fee. The report recommends a financially feasible development impact fee of $0.25 per net in- crease in gross residential building square footage and $0.25 per net increase gross square foot for nonresidential development. The fee would apply only to new development in close proximity to sen- sitive coastal resources, namely the areas planned for Mixed -use Community Core and Mixed-use Marina uses.

1. Introduction
This study estimates the cost preserve sensitive coastal resources in the area subject to the Southeast Area Specific Plan, establishes the nexus between new development and sensitive coastal re- sources (inclusive of wetlands, buffers, and habitat) , and recom- mends a development impact fee to pay for certain costs to sustain these resources. This study is intended to satisfy the requirements of the Mitigation Fee Act (Government Code sections 66000 through 66008) to establish a nexus between the purpose of the fee and the types of development subject to and the amount of the fee.

Specifically, Section 66001(a) requires that the City do the follow- ing in order to establish a development fee:
(1) Identify the purpose of the fee.
(2) Identify the use to which the fee is to be put. If the use is financing public facilities, the facilities shall be identified.

That identification may, but need not, be made by reference to a capital improvement plan as specified in Section
65403 or 66002, may be made in applicable general or
specific plan requirements, or may be made in other public documents that identify the public facilities for which the fee is charged.
(3) Determine how there is a reasonable relationship between the fee’s use and the type of development project on which the fee is imposed.
(4) Determine how there is a reasona ble relationship between the need for the public facility and the type of development project on which the fee is imposed.
1(A) Southeast Area Specific Plan
The City of Long Beach adopted the Southeast Area Specific Plan (SEASP) in the fall of 2017, replacing the Southeast Area Develop- ment and Improvement Plan (SEADIP) adopted in 1977. Because part of the plan area lies within the coastal zone, the City has sub- mitted to the California Coastal Commission an update to its Local Coastal Program for review and certification. The review and certi- fication process was ongoing at the time this study was prepared.

Sensitive Coastal Resources Impact Fee Nexus Study Page 3 Adoption of SEASP was the culmination of two years of intensive outreach, analysis, and planning. The lengthy and comprehensive outreach involved City staff an d officials, residents, property own- ers, businesses, and environmental groups. By necessity, the re- sulting plan represents a set of interconnected compromises across these stakeholder groups.

Relevant to this study, SEASP eliminated future development that SEADIP would have allowed on parts of Los Cerritos Wetlands and adjacent buffers, and it increased the density and intensity of de- velopment allowed in areas adjacent to Pacific Coast Highway.

SEASP increased the overall density/intensity of development in these areas so that infill development and intensification would be financially feasible under current market conditions . For residents of the plan area, SEASP preserves the existing and potential wet- lands, buffers, and habitat areas, calling for a development impact fee to fund efforts to improve and maintain sensitive coastal re- sources.

The proposed impact fee would only apply to a portion of the SEASP plan area: the area designated for Mixed-use Community Core and the area designated Mixed-use Marina when the specific plan was adopted. This area is adjacent to or across the street from sensitive coastal resources, and increased activity and the potential addition of residential uses will have direct impact on the functionality and maintenance of the adjacent sensitive coastal resources.

Figure A-1 in the Appendix at the end of this report shows the plan area and planned land use and the areas in which the impact fee applies and areas in which the funds generated may be used. As noted below, funds generated by the impact fee would only be used for activities in areas designated in SEASP as Coastal Habitat/Wet- lands/Recreation.
1(B) Sensitive Coastal Resources
The specific plan designates 293 acres for use as Coastal Habi- tat/Wetlands/Recreation. Some of the properties in this area are pri- vately owned and some are owned by public agencies. Much of the area within this land use designation is included in the Los Cerritos Final Conceptual Restoration Plan (LCWC Restoration Plan), but not all. Some but not all of the area within this land use designation has delineated wetlands pursuant to the requirements of:

(1) US Army Corps of Engineers (Corps) jurisdiction pursuant to Section 404 of the Clean Water Act and Section 10 of the Rivers and Harbors Act.
(2) CDFW jurisdiction pursuant to Section 1602 of the Fish and Game Code.
(3) RWQCB jurisdiction pursuant to Section 401 of the Clean Water Act and Section 13260 of the Porter-Cologne Act.
(4) Wetlands as defined under the California Coastal Act.

A portion of the area designated for use as Coastal Habitat/Wet- lands/Recreation is owned by Synergy Oil and Gas, LLC, which is moving forward with a plan to establish a wetlands restoration bank.

Because the LCWC Restoration Plan does not yet include full wet- lands delineation and detailed restoration design plans and because the wetlands restoration bank on the Synergy Oil and Gas property have not been prepared and made public, the full extent of the in- dividual components of sensitive coastal resources (i.e., wetlands, buffers, and habitat) cannot be identified at the time of adoption of the impact fee.

For brevity, this report refers to the entire portion of the area desig- nated for use as Coastal Habitat/Wetlands/Recreation as sensitive coastal resources. The revenue generated by the sensitive coastal resources impact fee would be restricted to use for covered activities on publicly owned parcels and parcels with public easements, at the time of expenditure, within this area. The s pecific parcels in- cluded in this area are identified by Assessor Parcen Number (APN) in Table A-1 in the Appendix at the end of this report, and Figure A-1 shows the area included as sensitive coastal resources. Solely for the purpose of estimating costs and the amount of the proposed impact fee, the analysis assumes that covered activities would oc- cur on 4.0 acres of buffer and 4.0 acres wetlands. Actual activities may occur on a larger or smaller area throughout the area shown in Figure A-1, but costs exceeding revenue generated by the impact fee would be fund through additional sources.

Sensitive Coastal Resources Impact Fee Nexus Study Page 5 1(C) Los Cerritos Wetlands Final Conceptual Restoration Plan
The Los Cerritos Wetlands (LCW) complex historically covered ap- proximately 2,400 acres. Much of this area has been developed, and currently the LCW complex covers about 565 acres, about 209 acres of which are owned by public agencies. About 175 acres of the LCW complex lies within the SEASP plan area.

The Los Cerritos Wetlands Authority prepared a Conceptual Resto- ration Plan (CRP) in 2015 and is currently evaluating the environ- mental impacts of the types of restoration in the CRP.

2. Land Use and Development
Projections
This section summarizes the level of development SEASP a uthor- izes. The level of development is important to the amount of reve- nue the wetlands/habitat restoration fee will generate, and the loca- tion of the development is important in establishing the nexus be- tween development and wetlands/habitat restoration.
2(A) Existing Development
Table 1 provides measures of the level of existing development in the plan area when the specific plan was being prepared. There were 4,079 residential dwelling units—a mix of mobile homes and single-family and multifamily housing. The estimated plan -area population was 6,486 persons. There were 2.2 million square feet of nonresidential building space. The total plan -area employment at the time was estimated at 3,555.

Table 1: Existing Development, SEASP Plan Area
Total Number of Residential Units 4,079
Population 6,486
Nonresidential Building Square Footage 2,226,760
Source: City of Long Beach, SEASP Initial Study, Table 4, 2015. 2(B) Planned Development
SEASP focuses new development in concentrated infill areas, gen- erally along Pacific Coast Highway. The development capacity the plan provides would result from infill development on vacant or un- derutilized parcels and redevelopment of existing developed

properties. Because redevelopment would account for a significant amount of the development capacity, SEASP manages growth with a cap on the net increase in development. Table 2 provides the net increase in development authorized by SEASP.

Table 2: Net Increase in Development
(SEASP Development Cap)
Residential Development (dwelling units) 2,547
Commercial/Employment (sq. ft.) 307,071
Hotels (number of rooms) 0
Source: City of Long Beach, Southeast Area Specific Plan, Table 9-1, 2017.

Accordingly, the wetlands/habitat restoration impact fee will apply to development that causes a net increase in gross residential or nonresidential building square footage.
2(C) Location of Planned Development
Generally, SEASP maintains the existing land use designations from the 1977 SEADIP for a majority of the land area. However, SEASP specifically eliminated commercial and residential land use desig- nations in the Los Cerritos Wetlands and increased the commercial and residential development potential in areas adjacent to Pacific Coast Highway (PCH), areas designated as Mixed-use Community Core and Mixed-use Marina. Figure A-2 in the Appendix identifies the areas of land use change. The net increase in development identified in Table 2 is expected to occur in the areas of land use change.

The impact fee would be applied only to new development in the areas of land use change. The area to which the impact fee applies is shown with the areas in which the fee may be used on Figure A- 1 in the Appendix.

3. Covered Activities
The City of Long Beach intends to use revenue from the sensitive coastal resources impact fee to cover a limited set of activities as- sociated with an increase in population near sensitive coastal re- sources. Activities that may be funded th rough the impact fee in- clude:

Sensitive Coastal Resources Impact Fee Nexus Study Page 7 + Baseline Study. This activity is a baseline study, conducted prior to new development, to document the state and func- tion of the buffer area and adjacent wetlands.
+ Monitoring. Subsequent to restoration of the buffer and wet- lands, the area will need to be monitored to ensure that the restoration is successful and functional. The impact fee will cover that portion of the monitoring that is related to im- pacts of nearby development (new residents and increased business patrons) such as damage from pedestrian/hikers in the buffer and wetlands areas , exposure to non -native seeds from landscaping, lighting, and increased trash and debris. It is assumed that this activity would cover monthly monitoring in the first year after restoration and quarterly monitoring in years two through five following restoration.

For the purpose of this memo, it is assumed that the area to be monitored includes four acres of buffer and four acres of adjacent wetlands. A precise definition of the area in- cluded will be identified in conjunction with the preparation and/or adoption of a wetlands restoration plan for the area or part of the area covered by the impact fee.
+ Maintenance. This activity includes pe riodic trash and de- bris removal of the assumed four acres of buffer area and four acres of adjacent wetlands.

To estimate the cost for covered activities, this study is based on the eight acres that is in closest proximity to the specific plan’s areas of change (see Figure A-2). It is estimated that this would include about four acres of sensitive coastal resources in buffer areas and about four acres of sensitive coastal resources in adjacent wetlands.

Because these areas are in proximity to areas where new develop- ment will occur under the specific plan, they are the sensitive coastal resources that will be most impacted by new residents and increased business patrons. Finally, the City intends that the list of covered activities and areas may be refined in conjunction with the preparation and/or adoption of a wetlands restoration plan.

4. Estimated Cost of Covered Activities
Glen Lukos Associates Regulatory Services developed estimated costs for the covered activities. These costs are identified in Table

3. The estimated cost for the baseline study is a rough order of mag- nitude cost. The cost estimate for monitoring assumes monthly monitoring in the first year after restoration and quarterly monitoring in years two through five following r estoration. The estimate also assumes that the area to be monitored includes four acres of buffer and four acres of adjacent wetlands. The cost estimate for mainte- nance assumes twice monthly maintenance, four hours per visits, and a gross City cost of $60 per hour; the present value of 25 years of expenditures would be about $100,000 at the current prime in- terest rate.

Table 3: Estimated Costs for Activities Covered by the Proposed Sensitive Coastal Resources Impact Fee
Baseline Study $10,000
Monitoring $560,000
Maintenance $100,000
Total $670,000
Source: Glen Lukos Associates, 2022.

5. Amount of Fee
5(A) Cost Allocation by Land Use Type
The estimated cost for covered activities is allocated among land uses based on the amount of net new development authorized by the plan.

For nonresidential uses, the allocation of cost is straightforward be- cause the plan allows a net increase in nonreside ntial building square footage—307,071 sq. ft. For residential, however, the in- crease in development capacity is based on number of units.

SEASP allows for a net increase of 2,547 residential dwelling units.

Based on the weighted average of gross residentia l square footage per residential dwelling unit in city -approved residential develop- ment (excluding high -rise buildings and single -family detached housing) since 2019, new development in Long Beach averages

Sensitive Coastal Resources Impact Fee Nexus Study Page 9 971.68 gross residential square footage per dwelli ng unit. Thus, the net increase of 2,547 dwelling units can be expected to result in a net increase of 2,474,874 gross square feet of new residential development.

Table 4 allocates the estimated cost for covered activities to resi- dential and nonresidential development based on each use type’s share of the net increase in gross building space. To pay for the covered activities would require $596,000 to be generated in fees from residential development and $ 74,000 in fees from nonresi- dential development.

Table 4: Cost Allocation by Type of Development
Estimated cost of covered activities (Table 3) $ 670,000 Residential Development Share (89.0%) $ 596,000
Nonresidential Development Share (11.0%) $ 74,000
Source: PlaceWorks, 2022.
5(B) Amount of Impact Fee by Land Use Type
For individual development projects, the impact fee will be based on the project site’s increase in gross building square footage for residential and nonresidential development. In addition, the City will charge a reasonable administrative fee of 3 percent.

Table 5 provides the sensitive coastal resources impact fee. For res- idential development, the total allocated cost of covered activities, $596,000, is divided by the estimated net increase in residential square footage authorized by SEASP to determine the per square foot cost of $ 0.24. With an administrative fee of 3 percent, the sensitive coastal resources impact fee for residential development is $0.25 per gross square foot.

For nonresidential development, the total allocated cost for covered activities, $74,000, is divided by the net increase in nonresidential gross building space—307,071 square feet—to determine the per square foot cost of $0.24. With an administrative fee of 3 percent, the sensitive coastal resources fee for nonresidential development is $0.25 per gross building square foot.

Table 5: Impact Fee for Residential and Nonresidential Building Space per Gross Square Foot
Cost allocated to residential development $ 596,000
Net increase in gross residential square footage 2,474,874 Cost per gross square foot $ 0.24
Administrative fee (3%) $ 0.01
Impact fee per residential gross building sq. ft. $ 0.25 Cost allocated to nonresidential development $ 74,000
Net increase in gross nonresidential square footage 307,071 Cost per gross square foot $ 0.24
Administrative fee (3%) $ 0.01
Impact fee per nonresidential gross building sq. ft. $ 0.25 Source: PlaceWorks, 2022.
5(C) Financial Feasibility
During preparation of SEASP, a financial feasibility analysis was conducted, finding two development prototypes to be financially feasible to be developed under the proposed plan. Scenario 4, with 710 multifamily units, 109,000 square feet of ground -floor retail, and 90 hotel rooms , was the more financially challenging of the two prototypes. The proposed sensitive coastal resources impact fee required for Scenario 4 is provided in Table 6.

The financial feasibility analysis was based on the resulting residual land value. The analysis indicated that the market value of land was between $3 and $4 million, so any residual land value resulting from new development that was in this range or above would be deemed to be financially feasible.

Table 6 shows the residual land value for Scenario 4 as presented in the analysis for the specific plan, before the application of the proposed sensitive coastal resources impact fee. It also shows the residual land value after the application of the proposed fee. The fee results in a reduction in residual land value of 0.6 to 0.8 per- cent. The final residual land value is between 3 and 4 million dol- lars or higher. Thus, the proposed fee should not impact the finan- cial feasibility of new development.

Sensitive Coastal Resources Impact Fee Nexus Study Page 11 Table 6: Financial Feasibility Impact of Proposed Sensitive Coastal Resources Impact Fee
Scenario 4
Total sensitive coastal resources fee $ 350,959
Total fee per acre $ 29,120
For-sale Condominiums
Residual land value per acre before fee $ 4,927,748
Residual land value per acre w/fee $ 4,898,628
Percent reduction w/fee 0.6%
For-rent Apartments
Residual land value per acre before fee $ 3,782,739
Residual land value per acre w/fee $ 3,753,619
Percent reduction w/fee 0.8%
Source: PlaceWorks, 2022, using data from the Strategic Economics’ Memorandum on Fi- nancial Feasibility Analysis, June 2015, prepared for SEASP.

6. Applicability of the Fee
The wetlands/habitat restoration impact fee shall apply to all devel- opment in the area s of change in SEASP , specifically to the areas designated for Mixed-use Community Core and Mixed-use Marina uses at the time of SEASP adoption, as shown in Figure A-1 in the Appendix. Table A-1 in the Appendix identifies the specific parcels by APN.

For an individual development project, the sensitive coastal re- sources impact fee is intended to be applied to the net increase in development for that project. For a development project that would result in the demolition or elimination of then-existing residential or non-residential building space, the fee would be applied to the total new construction less a credit for the reduction or eliminated resi- dential or nonresidential building square footage. For example, the fee for a project that would demolish a 10,000 -square foot shop- ping center and replace it with 19,434 square feet of new residen- tial development among 20 new residential units would be $4,858 ($0.25 X 19,434 gross sq. ft. ) minus $2,500 ($0.25 X 10,000 square feet) for a total of $2,358. The credit for reducing or elimi- nating residential or nonresidential building square footage shall not exceed the amount of the fee required for the new construction. In

other words, the sensitive coastal resources impact fee shall never be less than zero.

7. Nexus Findings
SEASP represents an intentional effort, based on extensive outreach and public engagement, so shift development away from property with sensitive coastal resources to properties most suited to more intense development, to allow densities and intensities of new de- velopment that would be financially feasible, and to preserve, pro- tect, and enhance sensitive coastal resources that provide tangible benefits to residents and business patrons in close, walking prox- imity.

The future restoration of the Los Cerritos Wetlands Complex (which is separate from the activities covered by the proposed impact fee) is intended not only to restore the wetlands ’ natural hydrological function and to ameliorate sea level rise but also to facilitate passive use of the wetlands, habitat, and buffer as natural open space. As is well documented with park usage
1, the primary beneficiaries of
this open space will be nearby residents and business patrons.

However, increasing the number of residents and the amount of economic activity in proximity to the sensitive coastal resources may serve to overload these resources with public use. In addition, in- creased public passive use will result in increased litter, and the increase in population in the Mixed -use Community Core and the Mixed-use Marina areas will result in increased trash and debris being blown into the areas with sensitive coastal resources.

1 See, for example:
• In a study of 12 neighborhood parks in Los Angeles, it was found that 81 percent of park users live within one mile of the park (Cohen, Deborah, et. al. 2006, Park Use and Physical Activity in a Sample of Public Parks in the City of Los Angeles. Santa Monica: the Rand Cor- poration).
• In a survey of residents in cities in Texas, it was found that respond- ents living within .25, .5, and .75 miles of a park were significantly more likely to use parks than those residing beyond those points (Walker, Jamie Rae and Crompton, John L. (2012) “The Relationship of Household Proximity to Park Use” in The Journal of Park and Rec- reation Administration, vol. 30, no. 3, Fall 2012, pp. 52 –63. This article provides a summary of literature on park usage and proximity going back to the 1970s.

Sensitive Coastal Resources Impact Fee Nexus Study Page 13 7(A) Purpose and Use of the Fee
The purpose of the sensitive coastal resources impact fee is to pay for covered activities (described in Section 3, Covered Activities) re- sulting from the increased number of residents and increased eco- nomic activity resulting from new development to which the impact fee applies.

The activities covered by the proposed impact fee are specifically targeted to address these issues of increased public use and in- creased litter, trash, and debris, arising from new development and increased population and economic activity. The baseline study will document existing conditions in the sensitive coastal resources ar- eas nearest to the areas planned for more intense development.

This study will provide a baseline for the City to use funds generated by the sensitive coastal resources impact fee for other covered ac- tivities. Similarly, the ongoing monitoring for five years following wetlands and habitat restoration will provide a basis for evaluating the effectiveness of the covered activities for maintenance and a factual basis for future decisions by the City regarding other needed facilities and programs (funded by sources other than the impact fee) to protect and preserve the sensitive coastal resources. Finally, the covered maintenance activities, primarily periodic trash and de- bris removal, will directly address the impacts resulting from in- creased population and economic activity.
7(B) Relationship Between the Fee and Types of
Development
The fee applies to the increase in residential building square footage in the Mixed-use Community Core and the Mixed-use Marina areas.

Neither of these areas currently have residential uses. Thus, new residential development represents new residents in proximity to the sensitive coastal resources.

The fee also applies to the net increase in nonresidential building space. The net increase in nonresidential building space represents an increase in economic activity and an increase in the number of customers who will patronize businesses in proximity to the sensi- tive coastal resources.

Sensitive Coastal Resources Impact Fee Nexus Study Page A-1

8. Appendix

Page A-2 City of Long Beach | Southeast Area Specific Plan Table A-1: Parcels Designated in SEASP for Mixed-use Community Core and Mixed-use Marina Use Upon Which Proposed Sensitive Coastal Resource Impact Applies APN SEASP Land Use Designation
7237-020-022 Mixed-Use Community Core
7237-020-024 Mixed-Use Community Core
7237-020-040 Mixed-Use Community Core
7237-020-041 Mixed-Use Community Core
7237-020-050 Mixed-Use Community Core
7237-020-051 Mixed-Use Community Core
7237-020-904 Mixed-Use Community Core
7237-022-003 Mixed-Use Marina
7237-022-006 Mixed-Use Marina
7237-022-014 Mixed-Use Marina
7237-022-016 Mixed-Use Marina
7237-022-017 Mixed-Use Marina
7242-011-013 Mixed-Use Community Core
7242-011-014 Mixed-Use Community Core
7242-012-006 Mixed-Use Community Core
7242-012-007 Mixed-Use Community Core
7242-012-999 Mixed-Use Community Core
7242-021-002 Mixed-Use Community Core
7242-021-003 Mixed-Use Community Core
7242-021-004 Mixed-Use Community Core
7242-021-006 Mixed-Use Community Core
7242-021-007 Mixed-Use Community Core
7242-021-900 Mixed-Use Community Core

Sensitive Coastal Resources Impact Fee Nexus Study Page A-3 Table A-2: Parcels Designated in SEASP for Coastal Habitat/Wetlands/Recreation Use Upon Which Impact Fee Revenues May Pay for Covered Activities
APN Owner
7237020054 BRYANT DAKIN LLC
7237017019 LCW PARTNERS LLC
7237020053 BRYANT DAKIN LLC
7237017008 LOYNES AND STUDEBAKER LLC
7237017009 LOYNES AND STUDEBAKER LLC
7237017010 LCW PARTNERS LLC
7237017012 LCW PARTNERS LLC
7237017007 LOYNES AND STUDEBAKER LLC
7237017807 AES ALAMITOS LLC
7237017809 AES ALAMITOS LLC
7237017022 IN-N-OUT BURGERS INC
7237017020 IN-N-OUT BURGER
7237017018 LCW PARTNERS LLC
7237017014 LCW PARTNERS LLC
7237017011 LCW PARTNERS LLC
7237020044 LYON HOUSING PUMPKIN PATCH
7237017013 LCW PARTNERS LLC
7237018001 LOYNES AND STUDEBAKER LLC
7237020045 LYON HOUSING PUMPKIN PATCH
7237020900 LONG BEACH CITY
7237020275 L A CITY DEPT OF WATER AND POWER
7237017006 LOYNES LLC
7237022012 ALAMITOS BAY PTNSHP
7237020276 L A CITY DEPT OF WATER AND POWER
7242012008 ASN LONG BEACH LLC
7242012270 SEAL BEACH CITY
7242013004 SEAL BEACH SHORES INC
7242013002 SEAL BEACH SHORES INC
7237020021
7237020055
7237020901 LOS CERRITOS WETLANDS AUTHORITY
7237020901 LOS CERRITOS WETLANDS AUTHORITY
7237022900 LONG BEACH CITY
7237017901 L A CO FLOOD CONTROL DIST
7237022012 ALAMITOS BAY PTNSHP
7237017805 AES ALAMITOS LLC
7237017806 AES ALAMITOS LLC
7237017808 AES ALAMITOS LLC
7237017901 L A CO FLOOD CONTROL DIST
Page A-4 City of Long Beach | Southeast Area Specific Plan 7237022011 ALAMITOS BAY PARTNERSHIP
7237020901 LOS CERRITOS WETLANDS AUTHORITY
7237020276 L A CITY DEPT OF WATER AND POWER
7237020275 L A CITY DEPT OF WATER AND POWER
7237020276 L A CITY DEPT OF WATER AND POWER
7237020281

7237020280

7237020902

7237020282

7237020280 BRYANT DAKIN LLC

Wetlands Restoration Impact Fee Nexus Study Page A-5
Figure A-1: Sensitive Coastal Resources Impact Fee: Areas in Which the Fee Applies to New Development and Areas in Which Impact Fee Revenue May Be Used for Covered Activities

Page A-6 City of Long Beach | Southeast Area Specific Plan Figure A-2: SEASP Areas of Land Use Change

Source: City of Long Beach, Southeast Area Specific Plan, Figure 4.1.

Wetlands Restoration Impact Fee Nexus Study Page A-7