REPORT TO COUNCIL
SUBJECT
Title
Adopt a Resolution Updating the Average Per-Acre Land Values and Park Development Costs Per Capita Used for Setting the Parkland In-Lieu Fee Schedule for New Residential Development for FY 2026/27
Report
BACKGROUND
City Code Chapter 17.35 "Park and Recreational Land" requires new residential development to provide developed park and recreational land and/or pay an in-lieu fee pursuant to the Quimby Act ("Quimby") and/or the Mitigation Fee Act ("MFA"). This enables the City to maintain its existing level of service at the same rate of 2.6 acres to 3.0 acres of parkland and recreational amenities per 1,000 residents.
Parkland in-lieu fees are reassessed as part of the annual adoption of the Municipal Fee Schedule. There are three primary cost components upon which in-lieu fees are calculated:
1. The average cost of land acquisition for parks in Santa Clara, as determined by an annual land valuation appraisal;
2. The average per capita cost to develop parkland into a usable facility, based on the 2019 Parks and Recreation Facility Condition Assessment and adjusted using the Department of General Services California Construction Cost Index (CCCI); and
3. The administrative cost of the program, including review of residential development plans for compliance with the park ordinance and tracking of in-lieu fees (currently set at 2% of total fees collected).
The methodology used to calculate the in-lieu fees is detailed in the Park & Recreation Facilities Development Impact Fee Study (Nexus Study), dated August 27, 2019 (Attachment 1).
The purpose of this report is to:
1. Present the findings of the 2025 Land Valuation Report;
2. Recommend a +3.9% adjustment to the park improvement value in accordance with the latest CCCI figures; and
3. Solicit input from the City Council and the public on the proposed adjustments to parkland in-lieu fees and consider a recommendation that the updated Quimby and MFA fees take effect on J...
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