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HomeMy WebLinkAboutCD Commercial Linkage Fees PPTCOMMERCIAL LINKAGE FEES San Rafael City Council June 20, 2023 Commercial Linkage Fee New Commercial Space New Workers Affordable Workforce Housing San Rafael City Council June 20, 2023 A type of impact fee that charges new commercial development for its role in creating new demand for affordable housing San Rafael City Council June 20, 2023 San Rafael’s Current Commercial Linkage Fees Development Type Number of new very low-, low- and moderate-income units (per 1,000 sq ft of gross floor area) Office or Research and Development 0.03 Retail, Restaurant or Personal Service 0.0225 Manufacturing or Light Industrial 0.01625 Warehouse 0.00875 Hotel or motel 0.0075 Nexus Study San Rafael City Council June 20, 2023 Three categories of use: •Office / R&D •Retail / restaurant / services •Hotel Addresses two main areas of analysis: 1.the linkage between new jobs and the needed affordable housing, and 2.the affordability gap between what employee households can afford and what new housing costs to build. Study Considerations •Best practices •Varying market patterns in the County •Financial feasibility of fees •Stakeholder feedback •Legal requirements San Rafael City Council June 20, 2023 San Rafael City Council June 20, 2023 San Rafael’s Current Fee Levels (per equivalent square foot) Development Type Number of new very low-, low- and moderate-income units (per 1,000 sq ft of gross floor area) Equivalent fee per square foot Office or Research and Development 0.03 $10.32 Retail, Restaurant or Personal Service 0.0225 $7.74 Manufacturing or Light Industrial 0.01625 Not included in study Warehouse 0.00875 Not included in study Hotel or motel 0.0075 $2.58 Stakeholder Engagement •Market rate housing developers •Affordable housing developers •Commercial developers San Rafael City Council June 20, 2023 City Council Options 1.Accept the informational report. 2.Direct staff to provide additional information. 3.Take no action. San Rafael City Council June 20, 2023 COMMERCIAL LINKAGE FEES San Rafael City Council June 20, 2023