HomeMy WebLinkAboutSS5 - Development Impact Fees - PowerPointDEVELOPMENT IMPACT FEE STUDY
City Council Study session
August 27, 2024
CITY OF
NEWPORT BEACH
Development Agreements (DAs)
• Contract between City and Developer
• Vests development rights in exchange for public benefits
• Public benefits can be directed for a specific purpose
• Calculated or negotiated fees
The City currently uses DAs to offset projects' impacts on
services and infrastructure
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CITY OF
NEWPORT BEACH
Legislative Amendment (NBMC 15.45)
General Plan Amendment or Zoning Code Amendment
1. Development of 50 or more residential units;
2. Result in residential units in Mariners' Mile;
3. Result in nonresidential development in Newport Center,
North Ford Area, or Airport Area
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CITY OF
NEWPORT BEACH
LAND USE AMENDMENT ZONING OVERLAY
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• Due to the state housing mandate of RHNA (Overlay) units
• City has conducted a significant general plan amendment
• Fewer legislative amendments =Fewer DAs
• How does future growth impact the need for future facilities
DAs may be used to vest entitlements for many years.
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CITY OF
NEWPORT BEACH
WHAT ARE DEVELOPMENT IMPACT FEES?
• One-time fees
• Offset costs associated with serving new residents/workers
• Allowed under Mitigation Fee Act (GC 66000)
• Apply to new development
• Fund new or capacity enhancing facilities
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CITY OF
NEWPORT BEACH
NEXUS STUDY
• Determines the maximum fees
• City can select equal or lower fees
• Key considerations:
oNeed. Development - Need for facilities
o Benefit. Development
oRough proportionality.
share of facility costs
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CITY OF
NEWPORT BEACH
Use of revenue
Fee amount - development's
BASIC METHODOLOGY
Estimate existing
future growth
development and
Determine facility needs and costs
Allocate share to accommodate
growth
Identify alternative funding needs
1W
71
Calculate fee by allocating costs per
square foot of new development El
Assumptions for Study
• Assumes total Housing Element development potential
o Excluding pipeline projects
Residents
Dwelling Units
Employment
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CITY OF
NEWPORT BEACH
WW'
82,008
45,110
72, 776
96 107
49, 001
74,276
14,099
81741
1,500
FEE CATEGORIES STUDIED
•Recreation
•Police
• Fire
•Water
• Sewer
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CITY OF
NEWPORT BEACH
� -M
Considering future facility costs and then allocating based on
projected growth:
P'tategory
Recreation
Police
Fire
Water
Sewer
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CITY OF
NEWPORT BEACH
Mr Fee (per SF)
$1.01
$1.69
$0.90
$0.56
Total $8.86
Recreation
$ -
$ -
$ -
Police
$0.74
$1.14
$0.40
Fire
$1.77
$2.72
$0.96
Water
$0.91
$0.62
$0.77
Sewer
$0.70
$0.51
$0.49
Total
$4.12
$4.99
$2.62
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CITY OF
NEWPORT BEACH
Table 3.3: Planned Facilities
Building Square Cost per
Feet Sq. Ft. Tots I Cast
Pad Complex' s 15,000aDDD
Ocean Pier- Newport 20,000,000
Ocean Pier, Balboa
15, 000,"
Newport Theatre Arlo Center
7,950
900
7,155, DW
Community YoLdh Center (CYC) - Grant Howald
5,65$
850
4,809,300
Carrell Seek Cerrter
1,5M
1,000
1, 600, DDD
West Ncwper` Community Center
1 1,0D0
850
9, 350, DDD
Total
$
72, 814, 3DD
' Tvtal eslirreted cost of this f-oaity is $30 rdlion. $15 nillico of theme calls are essurr>,:�a to be funded by alher aourres,
&Jrce! 01.y of Nar port Beach.
Projected Recreation DIF revenue: $72,814,300
Additional funding needed: None
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CITY OF
NEWPORT BEACH
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Table 5.3: Planned Firm Facilities
Description Quantity Units Unit Cost Tel Cost
Fire Station No. 'I Replacement
Fire Station No, 3 Replacement
Fire Station No. 3 Lead Acquisition
Lifeguard HQ Replec�ernent
Total
3,423 S q, Ft.
13.000 Sq. Ft.
1 Acres
3,000 Sq. Ft.
Projected fee revenue = $27,540,000
Non -fee funding needed = $12,969,275
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CITY OF
NEWPORT BEACH
1,200
1,200
23,028,575
111200
4,107, 500
15, 600, 000
23, 026, 575
3, 60M00
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Table 4.3: Planned Police Facilities
De sc ri pti on Quantity UnNs Unit cost Total CGst
New P al is a S tati are
Total
77,000 Square Feet 1,200 $ 92,400,000
Projected fee revenue = $16,079,000
Non -fee funding needed = $76,321,000
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CITY OF
NEWPORT BEACH
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NEXUS: COST AND REVENUE PROJECTIONS
(WATER AND SEWER)
Fee
Category
ee
(per
SF0
Revenu
rojections
Water $0.90
Sewer $0.56
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CITY OF
NEWPORT BEACH
$141432,500
$9,100,600
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COMPARISON TO OTHER SERVICE PROVIDERS
Sewer
Water
229 Apartments 229 Apartments
• $685)646 (OC San) 9 $8121263 (IRWD)
• $175,486 (City) 9 $175,486 (City)
Retail/Commercial- 5,500 sf Retail/Commercial- 5,500 sf
• $8,168 (OC San) 9 $313184 (IRWD) —per acre
• $53005 (City) 9 $53005 (City)
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CITY OF
NEWPORT BEACH
COMPARISON STUDIES TO OTHER CITIES
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Child Care
General
Government
Fire
Infrastructure
Newport
Beach
$4,225
. $166
$0-
$18,054
Libraries
$1,180
$200
Parks
$16,555
$14,421
$4,968 $9,092
Police
$2,525
$362
$1,883
Recreation
$11,750
Sewer
$2,250
$2,594
$4,722
Storm drain
$60-$5,633
Water
$1,400
$2,862
$5,151
$3,156
Totals
$22,150
$24,397
$0- $24,494
$4,968 $5,747- $9,258
1fi_n54
11.3?0
COMPARISON TO OTHER CITIES - 229 APARTMENTS
City
'A
Newport Beach (DRAFT)
Huntington Beach
Laguna Beach
*San Clemente
*Irvine
*Santa Monica
Malibu
JI $1.7M
$4.5M
$2.1 M
$1.3M
$0 - $4.1 M
$1.3M
$723k
*These cities have a range of fees that are based on project location.
**Transportation, Quimby, and outside agency fees are excluded from the
comparison.
COMPARISONS TO OTHER CITIES - 5,500 SF
COMMERCIAL/RETAIL
Newport Beach (DRAFT)
Huntington Beach
Laguna Beach
*San Clemente
*Irvine
*Santa Monica
Malibu
$23k
$29k
$35k
$9k- $11k
N/A
$41 k
N/A
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*These cities have a range of fees that are based on project location.
**Transportation and outside agency fees are excluded from the comparison.
COMPARISONS TO DEVELOPMENT AGREEMENTS
Residences at 1400 Bristol (PA2022-0296) - 229 apartments
Category�
Public Safety
(Fire and Police) $232,560 $5263457
*Parks $5811247 **5813247
Recreation - $9163425
Water - $109,191
Sewer - $175,486
General Public Benefit $2.89M -
Total Fees $3.7M $2.3M
*Park fees (for rent product) only applicable in airport area. Roughly 1.8M
without waivers.
**Assumes the same density bonus incentive to waive portion of fee.
• 2007 Fee: $26,125 per unit
• 2020 Fee: $38,404 per unit
• *2024 Fee: $59,575 per unit
*Updated Appraisal
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CITY OF
NEWPORT BEACH
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Residential
Apply to New Units.
• Overlay Units (RHNA)
• Legislative Amendments
Does not apply to:
• Accessory Dwelling Units
• Room Additions
• Affordable Units
• Existing DAs
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CITY OF
NEWPORT BEACH
Non -Residential
Apply to New, Additions,
Intensification:
• Commercial - ?
• Food and Beverage
• Retail
• Hotel
• Personal Service
• Office / Medical Office
• Industrial
1. Receive direction from Council <==
2. Draft ordinance to establish fees
3. Draft resolution to provide fee amount
4. 30-days prior —public notice
• Community input and feedback
5. 60-days post adoption —effective
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CITY OF
NEWPORT BEACH
THANK YOU
Seimone Jurjis, Assistant City Manager/CDD Director
Liz Westmoreland, AICP, Senior Planner