HomeMy WebLinkAbout1/17/2023 Item 6e, Codron - Staff Agenda CorrespondenceCity of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: January 17, 2023
TO: Mayor and Council
FROM: Michael Codron, Director of Community Development
VIA: Derek Johnson, City Manager
SUBJECT: Item #6e - 2021-22 ANNUAL REPORT ON DEVELOPMENT IMPACT
FEES UNDER ASSEMBLY BILL 1600
Staff was asked by a Council Member to provide some background and context to an
Agenda Correspondence. The concern expressed is that the City’s Development Impact
Fee (DIF) structure, especially in relation to transpo rtation, overburdens multi-family
residential development.
There are two items of clarification that staff would like to provide. First, the item tonight
is a required annual report and is not on the agenda for the purpose of evaluating the
program or adjusting any fees. Council is not expected to provide guidance to staff on
changes to the program as part of this item. However, staff is planning to update the DIF
program this calendar year as it has been five years since the current iteration of the
program has been in place.
The update process will provide many opportunities for community outreach and
engagement with the City Council. Outreach and engagement will be an important part of
the update process to ensure that the staff’s recommendations are responsive to
community concerns and consistent with policy guidance from the City Council.
Second, the concern expressed by SLO YIMBY is that the Transportation Impact Fees
(TIF) for Multi-Family Residential development are higher than for single-family residential
development. The fees are in fact lower for multi-family residential units - these fees are
based on the “average cost per auto trip per dwelling unit” for each type of housing. The
fee for an average sized single-family home is higher than the fee for average sized
apartment by the same ratio as the difference between auto trip generation rates for each
housing type. A full nexus study was prepared when this item was brought to the City
Council on April 3, 2018.
It is also worthwhile to note that the City’s TIF program includes specific policy
adjustments to incentivize smaller housing units of all types, up to a 50% reduction in the
total fee. This “policy adjustment,” in effect, resulted in a $40 Million fee reduction below
fees that otherwise would have been legally supported based on the nexus study. The
City offered these lower fees as an incentive to developers of all types of housing to build
smaller housing units.
Development Impact Fee Annual Report Agenda Correspondence Page 2
Should the City Council have any further questions on this issue, staff will be available to
address at the meeting.