8.1 - Scape
Downtown High-Rise Tax/Fee Waiver
October 25, 2022
City of San Jose
Office of Economic Development
and Cultural Affairs
Nanci Klein, Director
Jerad Ferguson, Housing Catalyst
Current 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 Inclusionary Housing Ordinance (IHO) In-Lieu Fee
Scape
3 • 23-Story high-rise located at 10 East Reed Street
• 336 market-rate rental units
• 5,323 sq. ft. of ground floor retail
Summary of Tax and Fee Waiver
4 50% Reduction of CRMP & B&S $1,012,585
Inclusionary Housing (IHO) In Lieu
Fee $8,844,000
Total Value of Tax & IHO Reduction $9,856,585
Estimated One-Time Revenue:
5 • Construction Taxes: $1,116,355
• Parkland In Lieu Fees: $4,905,600
• School District Fees: $197,292
Total one-time City revenue: $6,021,955
Total one-time revenue $6,219,247
Estimated Recurring Annual Revenue:
6 Total City recurring revenue: $365,384
Total recurring revenue: $1,397,684
• City Property Tax: $ 233,100
• City Utility User Tax: $119,225
• City Business Tax: $7,736
• City Sales and Transaction Tax: $5,323
• County Property Tax: $299,700
• School District Property Tax: $732,600
8.1 - Scape
Downtown High-Rise Tax/Fee Waiver
October 25, 2022
City of San Jose
Office of Economic Development
and Cultural Affairs
Nanci Klein, Director
Jerad Ferguson, Housing Catalyst