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City aims to balance development fee equation
April 18th, 2008
After streamlining the cumbersome development application process, the city of Sacramento now wants to untangle an unwieldy web of fees that make it almost impossible to enjoy a profit from building homes, offices and shopping centers.
Impact fees are a key part of the numerous charges levied on development for everything from roads and sewers to schools and parks. The infrastructure burden on developers, including fees, has ballooned to $70,000 to $100,000 for the average-size house in Sacramento. The fees are so nebulous that local government and property developers each employ their own consultants to calculate and compare them.
The attempted overhaul is one of the most progressive moves in the four-county region as cities and counties deal with declining revenue due to the dramatic drop in home prices that has greatly slowed development. If city staff can pull it off, it will mean less guesswork for builders in Sacramento.
