Agmt14 Dyett & Bhatia Partnership RWC

Browse Search

_. __ _ effects of additional development density or changes of use. The manner in which the City funds infrastructure related to new development and meets other policy objectives including affordable housing, open space preservation and community amenities is an important backdrop to the consideration of the value added by increased planning entitlements such as is created by incentive zoning policies. Accordingly, EPS will document the City's current development impact fee programs, inclusionary housing policies and other mitigations as are applied to new development. One of the outcomes of the Study may be recommendations for updating or reconsidering of these programs. EPS will also prepare a set of development prototype pro forma financial analyses to show the relative economic value created by a selected range of development types and densities. These development types and densities will be defined in consultation with Staff. • Fiscal and Economic Analysis. In the economic and fiscal analysis Consultant will determine the value of benefits provided compared to the value-added by City entitlements for additional density/intensity. This will be a three-step process o Establish values; o Assess feasibility; and o Demonstrate reasonable relationships. New development in the City will generate increased economic activity and related additional revenue to the City. Economic activity includes increased business (sales) new or improved employment, and increased private investment. Increased revenues to the City are typically measured as "net fiscal flows" (increased revenues less marginal municipal service costs). Generally, development in an existing urban context can be expected to produce new City revenue and generate positive economic impacts. At the same time infrastructure capacity and service demands may be also be affected, including the need for new infrastructure, direct new service cost demands, and indirect service cost demands. EPS will build (1) a detailed City Budget-based fiscal model and (2) an economic model that, in combination, can be used to estimate fiscal and economic impacts of new development in the City. The model will be designed to be applied to single development projects, the project prototypes (see Task 4 A above) or growth scenarios as may be necessary to evaluate current conditions or the proposals for new land use regulations or related policies. The fiscal analysis will also be designed to facilitate coordination with the Countywide Nexus Study in which the City is participating and the 21 Elements evaluation of affordable housing requirements and development fees. • Best Practices and Review of Other Cities' Practices and Policies. Municipalities as diverse as Berkeley, Mammoth Lakes, Chicago, Juneau, Portland, Seattle, Tampa and Santa Monica in the US and Vancouver, Canada, have established or are considering adoption of a regulatory ATTY/AGR/2014.091/DYETT&BHATIA REV:06-05-14 VR Page 14 of 17