REPORT TO COUNCIL
SUBJECT
Title
Action on a Resolution Establishing the Average Per-Acre Land Values in order to set the Parkland In-Lieu Fees for FY2022/23 for New Residential Development
Report
COUNCIL PILLAR
Enhance Community Sports, Recreational and Arts Assets
BACKGROUND
In July 2014, the City Council adopted Ordinance No.1928 which added Chapter 17.35 "Park and Recreational Land" to the Santa Clara City Code (Code) that requires new residential developments to provide developed park and recreational land and/or pay a fee in-lieu of dedication ("In-Lieu Fees") pursuant to the Quimby Act ("Quimby") and/or the Mitigation Fee Act ("MFA"). The Code requires that land values be used in the calculation of the In-Lieu Fees. The City completes its annual land valuation study in accordance with City Code Section 17.35.040 and Supplemental Instructions approved by Council June 7, 2016. The appraisal reports have a valuation date of December 31 (full calendar year January 1 to December 31) and include the average value of an acre of land for each of the three residential ZIP Code areas of the City (95050, 95051, and 95054). The land valuation report is posted on the City website for a two-week public comment period and persons interested in this subject are notified. The purpose of this memorandum is to share the findings of the land valuation report and recommend corresponding updates to the Parkland In-Lieu Fee Schedule for FY2022/23.
DISCUSSION
In March 2022, the City of Santa Clara completed its annual land valuation study by Frank Schmidt & Associates with a valuation date of December 31, 2021 (Attachment 1). Table 1 below provides the 2021 valuation for the City's three residential zip code areas along with prior years' values for comparison.
Table 1
Average Land Value per Acre
Area
12-31-2021
12-31-2020
% Diff
12-31-2019
12-31-2017
12-31-2016
95050
$5,715,000
$4,720,000
21.0%
$4,385,000
$3,738,000
$3,315,000
95051
$6,000,000
$5,120,000
17.2%
$4,630,000
$...
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