8.4 - The Carlysle
Downtown High-Rise Tax/Fee Waiver
February 15, 2022
City of San Jose
Office of Economic Development
and Cultural Affairs
Nanci Klein, Director
Jerad Ferguson, Housing Catalyst
Downtown Residential High-Rise Program
2 • Approved November 2019 by City Council
• Followed receipt of analysis that demonstrated a typical high-rise residential development in Downtown was not financially feasible. • Fifty percent (50%) reduction in the Building and Structure Construction Tax (B&S) and the Commercial-Residential-Mobile Home-Park Building Tax (CRMP)
• Reduction to $0 the Affordable Housing Impact Fee (AHIF) or the Inclusionary Housing Ordinance (IHO) In-Lieu Fee
The Carlysle
3 • 21-Story located at 51 Notre Dame Street
• 290 market-rate rental units
• 123,479 sq. ft. of office space
Summary of Tax and Fee Waiver
4 50% Reduction of CRMP & B&S $715,427
AHIF $3,675,172
Total Value of Tax & AHIF Reduction $4,390,599
Estimated one-time revenue:
5 • Construction Taxes: $1,901,825
• Parkland In-Lieu Fees: $4,234,000
• Commercial Linkage Fee: $1,481,748
• School District Development Fees: $917,993
Total City one-time revenue: $7,617,573
Total one-time revenue: $8,535,566
Estimated recurring annual revenue:
6 Total City recurring revenue: $568,209
Total recurring revenue: $2,031,409
• City Property Tax: $330,400
• City Utility User Tax: $186,053
• City Business Tax: $44,153
• City Sales and Transaction Tax: $7,603
• County Property Tax: $424,800
• School District Property Tax: $1,038,400
8.4 - The Carlysle
Downtown High-Rise Tax/Fee Waiver
February 15, 2022
City of San Jose
Office of Economic Development
and Cultural Affairs
Nanci Klein, Director
Jerad Ferguson, Housing Catalyst