1 David Yakobson
From: Sam Shapiro-Kline <[email protected]>
Sent: Monday, January 12, 2026 1:34 PM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; Oliver Chi
Subject: 4.B Development Impact Fees
EXTERNAL
Mayor & Councilmembers,
The staff report for Item 4.B demonstrates the minimal amounts collected from Development Impact Fees in FY2024-25. These fees constitute a tax on new housing which the city needs desperately.
Meanwhile - because new development is not financially feasible in Santa Monica, in large part due to fees and other taxes like our Affordable Housing Product Program, the fees do not generate funds for the city.
The best path for the city now is to suspend development impact fees for a reasonable period such as for 12 months while development feasibility remains poor. This way, the city will expand its revenues through new property and sales taxes generated by new residents, and will be able to fund the programs which the development fees would otherwise support.
Additionally, I would note the absurdity of spending money on a "[contract] with Economic & Planning Systems, Inc. (EPS) to update our child care nexus study," when the Child Care Linkage fee generated only $1,167 in FY2024-25. This situation shows the waste that occurs by excessively studying and seeking to tax housing.
Best,
Sam Shapiro-Kline
Item 4-B
January 13, 2026
Item 4-B
January 13, 2026