04/21/26 Item 4.0
City Council Meeting
Adopt a Resolution Updating the
Average Per-Acre Land Values and
Park Development Costs Per Capita
Used for Setting the Parkland In-Lieu
1852 Fee Schedule for New Residential
THE MISSION CITY Development for FY 2026/27
April 21, 2026
1 City of
Santa Clara
The Conter of What's Postible
Background
• City Code Chapter 17.35 "Park and Recreational Land" requires new residential developments to provide developed park and recreational land and/or pay a fee in-lieu of developed parkland dedication ("In-Lieu Fees") pursuant to the Quimby Act ("Quimby") and/or the Mitigation Fee Act ("MFA").
• City Code Section 17•35.040 requires Council to review and establish the fair market value of land. This is based on an average per acre land value determined through an appraisal review of land values & sale records in each of the three existing Zip Codes. By resolution, Council shall review and set the amount of fees to be paid in lieu of park dedication annually.
Park in-lieu fees are reviewed annually and brought forward as part of the Municipal Fee Schedule update.
2 POST MEETING MATERIAL
1 04/21/26 Item 4.0
City of
Santa Clara
The Conter of What!: Porcible
Mitigation Fee Act
• Applies to: Non-subdivision residential development (i.e., rental apartment projects) • Park Standard: Set at existing service levels, currently 2.6 acres per 1000 residents (2018) • Use of fees: Park acquisition and development across the city - Can fund improvements to existing parks
- More flexible geographically than Quimby
- Cannot be used for routine maintenance
• Nexus: Based on overall growth impacts to the community-wide park system • Parkland Dedication: Construction costs are the developer's responsibility (no reimbursement)
3 City of
Santa Clara
The Center of Whate Possible
Quimby Act
• Applies to: Residential subdivisions (i.e., for sale condominium projects) Park Standard: set at 3 acres per 1000 residents (between 3 & 5 acres per 1000) Use of Fees: Park acquisition and development, or rehabilitation of existing parks & recreational facilities
- Can be used for improrements to existing parks to improve/expand park capacity or add new amenities - Cannot be used for routine maintenance
Nexus: Directly tied to the subdivision's impact or use of park amenities Parkland Dedication: If a developer builds and dedicates a park, the City must reimburse eligible construction costs 4
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04/21/26 Item 4.0
City of
Santa Clara
The Center of What's Possible
In-Lieu Fee Calculation Components
• Average cost of land acquisition for parks in the City's three residential Zip Codes, as determined by an annual land valuation appraisal.
Average per capita cost to develop parkland into a usable facility, based on the 2019 Parks and Recreation Facility Condition Assessment and adjusted using the Department of General Services California Construction Cost Index (CCCI).
• Administrative cost of the program, including review of residential development plans for compliance with the park ordinance and tracking of in-lieu fees (currently set at 2% of total fees collected)
The methodology used to calculate in-lieu fees is detailed in the Park & Recreation Facilities Development Impact Fee pdate Study (Nexus Study), dated Auguste 27, 2019. The City is in the process of updating the Nexus Study and plan ) review/update it everv five vears to reflect evolving resident service needs and housing market condition 5 5 City of
Santa Clara
The Center of What's Postible
Land Valuation Appraisal
• Prepared by licensed appraisal firm The Dore Group
• Determines Fair Market Value for each of the City's three Zip Codes • Valuation date: December 31, 2025:
- Based on City Code Section 17.35.040 - formula for calculation of fee in lieu of land dedication
- Conforms to Uniform Standards of Professional Appraisal Practice (USPAP) - Adheres to the City's Supplemental Instructions
3 04/21/26 Item 4.0
City of
Santa Clara
The Cunter of Whats Possible
City Council Authority
Per City Code Section 17•35.040(b)(1):
• Council reviews and sets the fair market land values at least annually, by resolution.
• Based on those values, Council sets park in-lieu fees by resolution. 7 City of
Santa Clara
The Coster of What's Postible
Park Improvement Cost
• The cost to construct the park improvements (landscape, furnishings, buildings, etc.) based on an average cost per capita for the City's existing park system improvements.
The park improvement value developed in 2017 was not indexed to keep up with construction costs.
In 2023, Council approved the use of the California Construction Cost Index (CCCI) to adjust improvement values, with annual updates tied to the Index and capped at 10%. 8 4
04/21/26 Item 4.0
City of
Santa Clara
The Curler of Whar's Possible
Land Valuations
Zip Code Trend Analysis: 95051 trends above 95050, while 95054 trends below 95050 Average Land Value per Acre for the City's Three Zip Codes Area 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 % Change 95050 $5.715M $5.500M $5.455M $5.180M $5.359M +3.50%
95051 $6.00M $5.840M $5.650M $5.340M $5.573M +4.40%
95054 $5.495M $5.240M $5.255M $5.000M $5.037M +0.01%
9 City of
Santa Clara
The Center of What's Pos ille
Park Improvement Costs
Park Improvement Value (Cost per Capita) Construction Cost Escalation California Cost Construction Index (CCCI)
Year 2024 FY 2025/26 2025 FY 2026/27
Park Improvement Value Park Improvement Value
CCCI 2.30% 3.90%
$4,273 $4,440
Park Improvement Value $4,177 $4,273
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5 04/21/26 Item 4.0
City of
Santa Clara
The Conter of Whats Possible
In-Lieu Fee Calculations Example for 95050
PARKLAND COST PER CAPITA Calculation MFA Quimby
Parkland Investment (per acre by Zip Code) A $5,359,000 $5,359,000 Level of Service (park acres per 1,000 residents) B 2.6 3 Total Cost per 1,000 Capita C= Ax B $13,933,400 $16,077,000 Cost per Capita D = C/1,000 $13,933 $16,077
TOTAL COST PER DWELLING UNIT Single Family Multi-Family Land Value Cost per Capita x Density (Census) D x 2.84 D x 1.92 Improvement Value (IV) Cost per Capita x Density IV x 2.84 IV × 1.92 Admin Charge - 2% of Land & Improvement Values 2% 2%
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City of
Santa Clara
The Corker of What's Possible
In-Lieu Fee Calculations
Total Cost per Dwelling Unit - Example for 95050
Calculation MFA Quimby
Parkland Investment (per acre by Zip Code) $5,359,000 $5,359,000 Level of Service (park acres per 1,000 resident) B 2.6 3 Total Cost per 1,000 CapIta C=Ax B $13,933,400 $16,077,000 Cost per Capita D = C/1,000 $13,933 $16,077
Land Value Cost per Capita x SF Density (Census) D x 2.84 $39,570 $45,659 Improvement Value Cost per Capita x SF Density (Census) $4,440 x 2.84 $12,610 $12,610 Admin Charge - 2% of Land & Improvement Values 0.02 $1,044 $1,165 Total Single Family (SF) Dwelling Fee $53,224 $59,434
Land Value Cost per Capita x MF Density (Census) D x 1.92 $26,751 $30,868 Improvement Value Cost per Capita x MF Density (Census) $4,440 x 1.92 $8,525 $8,525 Admin Charge - 2% of Land & Improvement Values 0.02 $706 $788 $40,181 12
Total Multi Family (MF) Dwelling Fee $35,982
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04/21/26 Item 4.0
City of
Santa Clara
The Center of Whats Possible
Proposed Fees for FY 2026/27
Single Family and Multi-Family Dwelling Unit Fee by Zip Code Quimby FY2025/26 FY2026/27 Change
95050 Single Family $57,394 $59,434 +$2,040
Multi Family $38,802 $40,181 +$1,379
95051 Single Family $58,785 $61,294 +$2,509
Multi Family $39,741 $41,438 +$1,697
95054 Single Family $55,830 $56,635 +$805
Multi Family $37,744 $38,289 +$545
Mitigation Fee Act (MFA) FY2025/26 FY2026/27 Change
95050 Single Family $51,392 $53,224 +$1,832
Multi Family $34,744 $35,982 +$1,238
95051 Single Family $52,597 $54,837 +$2,240
Multi Family $35,558 $37,073 +$1,515
95054 Single Family $50,036 $50,799 +$763
Multi Family $33,827 $34,342 +$515
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City of
Santa Clara
The Center of What's Possible
Recommendation
Adopt a resolution, in accordance with City Code Chapter 17.35, establishing average per-acre land values and park development costs used for calculating parkland in-lieu fees for residential development for FY 2026/27 and updating the Municipal Fee Schedule. 14 14
7 04/21/26 Item 4.0
City of
Santa Clara
The Center of Wiet: Pouribk:
Backup Slides Follow
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City of
Santa Clara
The Center of Whats Pursible
Council Fee Policy - Direction & Effects
• Council Ordinance 1937 - Removed park dedication prerequisite for credit Council Resolution No. 19-8749 (August 2019)
- Parkland Cost Recorery: maintained 2017 land valuation, rather than updates in 2018 & 2019 - Parkland Improvement Cost Recovery: increased the 2014 value per capita of $807 to the 2018 value of $3,471 • Council Resolution No. 19-8769 (October 2019) - Net increase of $2,664 phased in over a 4-year period Policy effects on fees collected 2018-2021 - Net loss of $4,582,800 (based on actual project fees) Year 2018 2019 2020 2021 2022
Cost Recovery Amount $3,471 $3,471 $3,471 $3.471 $3.471 Per Capita Amount Applied $807 $1,473 $2,139 $2,805 $3,471 Difference $2,664 $1.998 $1,332 $666 $0
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04/21/26 Item 4.0
City of
Santa Clara
The Conterol Whats Possible
Sample Fee Calculation for Zip Code 95050
Zip Code Trend Analysis: 95051 trends above 95050, while 95054 trends below 95050 Table A
Proposed Parkland Dedication In Lieu Fee Schedule - FY 2026-27 95050
Applicable Fee Type Calculation MIFA Quimby
S:Acre (valuation date 12-31-2025) $5.359.000 $5.359,000 Cost Components
Park Acres: 1000 Pop. LOS Standard 2,6
Total Cost per 1.000 C = 4x B S13.933.100 $16.077.000
Land Value per Capita Cost per Capita D = C:1000 $13.933 $16.077 Denty Sungle Family (Census) D I :88 $39.570 $15.659
Improvement Value (2025: $4.273 - 3.9%) S,+80 r 2.84 $12.610 $12.610 Admin Charge 2% of Admin Charge 0.02 $1.041 $1.165
Land & Improvement Total Single Family (SE) Drelling Fee S53,22 S59,434 Ensity Multi Famuly (Censu D. 1.92 520,751 $30.868
sprovement value (2015: 54,273 - 39%) S4.410 + 1. $8.525 $8.525 Admin Charge S706 S7SS
Total Mutti Family (MIE) Duelling Fee 535.982 S40.181
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