Park Dedication and In-Lieu Fee & Park Acquisition and Improvement Fee August 18, 2026
Why are impact fees important?
New development pays for their fair share of new infrastructure without burdening existing development.
Development impact fees proportionally and equitably distribute the costs related to new infrastructure to all potential new developments.
Balances fee levels with desired economic growth.
Why are new fees being proposed?
Without collecting DIF there will be insufficient funding to support the infrastructure needed for future growth as projected by the City, General Plan and Housing Element.
Updated analyses and methodology to comply with the legal requirements of the Mitigation Fee Act (AB 1600), AB 602, and Quimby Act.
Incorporates analyses of rough proportionality and rational nexus as required by Nollan vs. California Coastal Commission and Dolan vs. City of Tigard Development Impact Fees (DIFs)
Overview
Development Impact Fees (DIFs)
Overview
Development Impact Fees (DIFs) are fees imposed by a local government on new development projects to ensure public services and infrastructure will be sufficient to serve new development.
AB 1600 – Mitigation Fee Act (GC 66000)
Fees based on new development’s fair share via rational nexus test One-time fee on new development and significant redevelopment, including expansions Can only fund capital costs — may not be utilized for existing deficiencies, maintenance, or salaries Funds must be used for their intended projects
AB 602 – Effective June of 2022
Encourages charging residential fees per square foot
Nexus Study must identify existing and proposed levels of service for each public facility, with justification for why the proposed level of service is necessary Requires the adoption of a Capital Improvement Program (CIP) as part of the Nexus Study Nexus Study must be updated at a minimum every 8 years
NEXUS STUDY PURPOSES
Updates the Park Fees for the City of Manteca by aligning with the Parks and Recreation Master Plan.
Satisfies AB 1600 Nexus requirements, AB 602 guidance, and provides the necessary technical analysis to support the adoption of the updated fees.
Satisfies Quimby Act requirements for park land dedication and in-lieu fees.
Fees are typically effective 60 days after the City’s final action establishing and authorizing the collection of the fees. Staff is recommending collection of fees starting January 1, 2027.
Updated Data: Updated infrastructure/facilities inventory, value of existing facilities and parks, land acquisition costs, facility costs, and land use data.
Updated Parks and Recreation Master Plan: The City worked with LPA Design Studios to complete the plan in January 2026, a visionary guide for the development of parks.
Methodology
Complies with the Quimby Act, Mitigation Fee Act, and AB 602 including a review of existing LOS, residential fees per sq. ft., capital improvement plan.
Took into consideration recent cases, such as Sheetz.
Essential nexus in ensuring there are adequate park facilities to serve new development Demonstrates rough proportionality to the need for new park facilities created by new development.
Methodologies are consistent with CA HCD DIF Nexus Study Template.
Coordination Meetings: Harris scheduled numerous teleconferences with the City and stakeholders to discuss park facility needs to support new development, costs, fee methodology, and key assumptions.
City of Manteca: Park Fee updates
Park fee Overview – Quimby Fee (Subdivision)
The Park Dedication and In-Lieu Fee includes:
Existing LOS standard of 5.01 acres per 1000 residents
Adjusted to the City’s adopted parkland standard 5 acres per 1000 residents Cost of land acquisition of neighborhood, community, and special-use parks required to serve new residential development.
Land Acquisition Component
Subdivision development is subject to the land component, as the non-subdivision land obligation is addressed through the Park Acquisition and Improvement Fee.
Facilities Component
Subdivision development is subject only to the land component, as the facilities obligation is addressed through the Park Acquisition and Improvement Fee .
Park fee Overview – Mitigation Fee
The Park Acquisition and Improvement Fee includes:
Existing LOS standard of 5.01 acres per 1000 residents
Adjusted to the City’s adopted parkland standard 5 acres per 1000 residents Cost of land and facilities for neighborhood, community, and special-use parks required to serve new residential development.
Land Acquisition Component
Non-subdivision development is subject to the land component, as the subdivision land obligation is addressed through the Park Dedication and In-Lieu Fee.
Facilities Component
Non-subdivision and subdivision residential development is subject to facilities component of the Park Acquisition and Improvement Fee.
Parks Costs
Neighborhood Parks
Land Acquisition for Subdivision Development (Quimby): $250,000* Land Acquisition for Non-Subdivision Development: $250,000* Design / Construction: $800,000 per acre
Total (Subdivision or Non-Subdivision): $1,050,000 per acre (including land) Community Parks
Land Acquisition: $143,500 per acre*
Design / Construction: $1,250,000 per acre
Total: $1,393,500 per acre (including land)
Special Use Parks
Land Acquisition: $250,000 per acre*
Design / Construction: $1,250,000 per acre
Total: $1,500,000 per acre (including land)
*Following consultation with City staff and the Building Industry Association, a negotiated conservative value of $250,000 per acre was used for neighborhood parks and special use parks, with community park costs based on 60 acres at $108,000 per acre and 20 acres at $250,000 per acre.
Level of Service
Fees are based on the Existing Inventory–based methodology, which has been adjusted to reflect the City’s Quimby standards and adopted level of service, rather than relying solely on the City’s existing level of service
Existing Parks
Type
2024 Acreage
2026 Acreage
Community Parks
84.79 84.79
Special Use Parks
84.12 84.12
Neighborhood Parks
273.62
291.69
Total Park Acreage
442.53
460.60
Existing Vs. Proposed Fee Comparison
Fee Summary
Fee Revenue
CAPITAL IMPROVEMENT PLAN (Required By AB 602)
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CAPITAL IMPROVEMENT PLAN (Required By AB 602)
Slide 2 of 2
July 9, 2026
30 Day Notice to
Requested Parties
August 5, 2026
Nexus Study Posted prior to Public Hearing
August 18, 2026
Public Hearing
Impact Fees
Go Into Effect
Adoption Timeline & Key Dates
Note: Effective January 1, 2025, Senate Bill 937 changes how impact fees can be collected Fees are locked in/vested at building permit issuance.
Fees cannot be collected until project completion at the time of COO Exception to utility related impact fees
Legislation creates challenges with collecting impact fees at end of project in 2-3 years July 17, 2026
2nd Notice Published
July 10, 2026
1st Notice Published
January 1, 2027
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