With the real estate market in the doldrums, developers are pressuring local government officials in California to cut impact fees. Will fee cuts spur new development? Maybe, writes Bill Fulton.
"Development projects that made economic sense a year or two ago – even with high impact fees – don't 'pencil' now because interest rates have gone up and prices have stagnated or even dropped. In many cases, the dreams of both developers and cities are now on hold.
Dreams that might move forward if fees were cut from, oh, $100,000 per unit to $80,000, or $80,000 to $40,000. At least that's what developers say, and that's what cities think. We've heard lots of rumblings around here about cities cutting fees on individual projects and considering widespread fee cuts across the board."
Thanks to Paul Shigley
FULL STORY: California Planning & Development Report
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City of Costa Mesa
Licking County
Barrett Planning Group LLC
HUD's Office of Policy Development and Research
Mpact Transit + Community
HUD's Office of Policy Development and Research
Tufts University, Department of Urban and Environmental Policy & Planning
City of Universal City TX
ULI Northwest Arkansas
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