REPORT TO COUNCIL
SUBJECT
Title
Action on a Resolution Establishing the Average Per-Acre Land Values and Park Development Costs to be Used in Setting the Parkland In-Lieu Fees for New Residential Development for FY 2023/24
Report
COUNCIL PILLAR
Enhance Community Sports, Recreational and Arts Assets
Enhance Community Engagement and Transparency
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
Since 2014, City Code Chapter 17.35 "Park and Recreational Land" requires new residential developments to provide developed park and recreational land and/or pay a fee in-lieu of developed parkland dedication ("In-Lieu Fees") 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. The In-Lieu Fees are calculated annually and included in the Municipal Fee Schedule by a Council adopted resolution.
The calculation of the In-Lieu Fees is based on the three primary cost components for the acquisition and development of new parkland, namely (a) the average cost to purchase land for parks in Santa Clara, (b) the average cost per capita to develop the land into a useable park facility, i.e. to construct the amenities, buildings, landscaping and the equipment to service it, and (c) the cost to administer the program, including the review of residential development plans for compliance with the ordinance. The methodology for the calculation of the In-Lieu Fees is explained in the Parks & Recreation Facilities Development Impact Fee Study (Nexus Study) updated August 27, 2019 (Attachment 1).
When the In-Lieu Fee Policy is set at 100% cost recovery, the In-Lieu Fee program will recover 100% of the costs necessary to provide new residents with developed public parkland and recreational amenities at the same level of service as provided to existing residents. If fees a...
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