November 18, 2024 www.cityofpaloalto.org
Development
Impact Fees
1 Summary
• Development impact fees address the impacts caused by new development • Nexus and feasibility studies last prepared in 2020
• fees last updated in 2021, previously set in 2001
• June 2022 Council direction to convert existing park, community center, library fees from per unit to per square foot
• Work started February 2024
• Task limited to conversion of existing fee only
• Future study/action anticipated in 2025/26
Development Impact Fee Conversion
2 Development Impact Fee Conversion
3 Proposed Action
• Converts existing per unit fees to per square foot using distinct fee structure Development Impact Fee Conversion
Distinct Fee Structure
• Sufficient building data
• Reflects size and impact based on land use type
• Proportional to size/impact of development
Consolidated Fee Structure
• Fewer building permit records
• Not able to project future development type
• Consolidates all residential types to one fee
4 Public Comments
• Summarized in staff report
• Subsequent letters from Acclaim Companies and Hengehold Trucks Upcoming Work
• Housing Element Program 3.1B: Prepare economic feasibility study to analyze and adjust development impact fees as necessary
• Timeline:
• Professional services contract in first quarter 2025
• Complete study by end of 2025
• Amend fee schedule by September 2026
Development Impact Fee Conversion
Jonathan Lait
Director
[email protected]
650 329-2679