B uilding Industry Association of the Greater Valley
1701 W. March Lane, Ste. F
Stockton, CA 95207
(209) 235-
7831 • (209) 235-7837 Fax
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FFICERS
Casey Goulart
Fitzpatrick Homes
-UC Construction
Ryan Gerding
Raymus Homes
Brad Slinkard
Meritage Homes
Dave Best
Shea Homes
BOARD OF DIRECTORS
Greg Armbruster
Barbosa Cabinets, Inc.
Rey Chavez
Dunn-Edwards Paints
Reggie Conley
The Contractors Resource
Zac Crawford
Engeo
Garrett Drebert
Legacy Homes/MHP Builders
Ben Farris
2-10 Home Buyers Warranty
Ginger Gaddi
KB Home
James Jimison
AG Spanos Companies
Brett Jolley
McKinley, Conger, Jolley
& Galarneau
Keith Jones
Goodfellow Bros.
Adam Lind
D.R. Horton
Gabriel Martinez
Woodside Homes
John Pronoitis
Florsheim Homes
Rob Toste
The Grupe Company
LIFETIME DIRECTORS
John Anderson
Matt Arnaiz
Ramon Batista
Randy Bling
Dennis Bennett
Tom Doucette
Bill Filios
Dennis Fitzpatrick
Pam Franco
Cathy Ghan
Mike Hakeem
Steve Herum
Wayne LeBaron
John Looper
Terry Miles
George Petrulakis
Toni Raymus
Keith Schneider
Bob Taylor
Dennis Wann
Jeremy White
August 8, 2025
V
IA E-MAIL
M
ayor Fugazi
City of Stockton
425 N. El Dorado St.
Stockton, CA 95202
M
ayor Fugazi and City Council:
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n behalf of the members of BIA we appreciate the efforts of city staff to work with the Stockton Industry Working Group on winding down the SESP in an orderly and well-reasoned manner. Although the ordinance calls for the SESP to remain in full effect until new nexus studies are adopted to replace all of the impact fees, this approach would result in a very abrupt end to the SESP at a point in the future that is very difficult for both the city and the development industry to adequately plan for.
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dopting a plan to create certainty as to which projects are subject to which fees and when, will allow the businesses that have already taken a risk, and have made an investment in Stockton, to finish their projects as planned. Therefore, we fully embrace and support Option #2 “Amend SESP-Grandfathered & Phased” as the best approach for the city and the business operating in Stockton.
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o put this matter in context we gathered data of home sales in Stockton and our neighboring cities of Manteca and Lodi so you can see how the SESP kept Stockton competitive with these cities. In the attached graph you will see from 2007 through 2014 all three cities saw a significant drop in home production.
Manteca rebounded first due to its proximity to the Altamont corridor. From 2015 through 2017 Lodi surpassed Stockton in the number of new housing units built, something that had never before occurred. From 2017 through 2022 with the SESP fully operational Stockton home production boomed. The last few years saw mortgage interest rates rise very quickly and new home builders have had to adjust and start offering incentives and interest rate buy-downs. That leads us to where we are today with Lodi production going back down but due to the SESP Stockton is still seeing strong home production and nearly keeping pace with Manteca. This data shows the SESP did what it was intended to do.
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he second attachment we have for you is a look inside the operational costs of producing a home. The first section shows the costs of taking a raw piece of land and transforming it into a finished lot. This is a very lengthy and time-consuming process involving many public hearings, environmental reviews, multiple meetings
ATTACHMENT F
ATTACHMENT F
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2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 New Single Family Home Production by Year / City
New Single Family Homes Stockton New Single Family Homes Manteca New Single Family Homes Lodi
ATTACHMENT F
CURRENT CURRENT CURRENT W/O SESP W/O SESP W/O SESP
Stockton Home Production Costs Range from low to high Max Low End Max High End AVERAGE Max Low End Max High End AVERAGE Square Foot of House 2,000 sq. ft. 2,000 sq. ft 2,000 sq. ft 2,000 sq. ft. 2,000 sq. ft 2,000 sq. ft Land cost per lot 20K to 30K $20,000 $30,000 $25,000 $20,000 $30,000 $25,000 Mapping 9.5K to 45K $9,500 $45,000 $27,250 $9,500 $45,000 $27,250 Engineering 5K to 9.6K $5,000 $9,600 $7,300 $5,000 $9,600 $7,300 Utilities Dry and Wet and curb gutter sidewalks 73K to 75K $73,000 $75,000 $74,000 $73,000 $75,000 $74,000 Roads, streets and connectors 17K to 65K $17,000 $65,000 $41,000 $17,000 $65,000 $41,000 Inspections and approals 5K to 14K $5,000 $14,000 $9,500 $5,000 $14,000 $9,500 Cost of capital / carrying costs 8.5K to 24K $8,500 $24,000 $16,250 $8,500 $24,000 $16,250 Land Developer Costs $138,000 $262,600 $200,300 $138,000 $262,600 $200,300 Construction $110 to $154 per Sq. Ft. $220,000 $308,000 $264,000 $220,000 $308,000 $264,000 Overhead costs 10K to 24K $10,000 $24,000 $17,000 $10,000 $24,000 $17,000 Fees City and County 42K to 47K $42,000 $47,000 $44,500 $62,000 $67,000 $64,500 School Fees $5.17 per sq. ft $10,340 $10,340 $10,340 $10,340 $10,340 $10,340 Other agency Fees 9.5K $9,500 $9,500 $9,500 $9,500 $9,500 $9,500 Mortgage rate buy down and other purchaser incentives 25K to 70K $25,000 $70,000 $47,500 $25,000 $70,000 $47,500 Home Builder Production Costs $316,840 $468,840 $392,840 $336,840 $488,840 $412,840 TOTALS $454,840 $731,440 $593,140 $474,840 $751,440 $613,140 Last 12 months of new homes sales median price $599,500 $599,500 $599,500 $599,500 $599,500 $599,500 Potential for profit split between developer and builder - EACH $72,330 ($65,970) $3,180 $62,330 ($75,970) ($6,820)
ATTACHMENT F