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6.3.B. - Page 20 <br /> TJKM <br /> Transportation <br /> Consultants <br /> CP request from the City if a building permit is not required.To accommodate financial needs of the <br /> developers, some cities have offered a four-payment plan or other means of deferring partial <br /> payments in the future. Santa Monica, Beverly Hills and Huntington Beach allow payments over a <br /> four-year period. <br /> A one-payment option may have higher financial burden on the developer during the first year <br /> C..) <br /> — compared to a four-payment plan, under which the developer pays only 25 percent of the fees in <br /> the first year. While a multi-year payment plan is advantageous to the developer, it adds <br /> uncertainty and unnecessary administrative burden on the City staff, making it less appealing to the <br /> cities. In addition, a one-payment plan allows the cities to secure necessary funds upfront and <br /> initiate any feasibility studies, designs and implementation that will address the parking deficiencies <br /> in a timely manner. Since in-lieu fees are set below the cost of building new parking spaces, a <br /> c,), developer is already benefitting by a single payment plan. Therefore, it is not necessary to offer a <br /> deferred payment plan that will provide additional incentives to the developers with no apparent <br /> benefit and very real negatives to the City. <br /> As a balanced approach,the City may split the in-lieu payment fees into four equal installments and <br /> offer a discount if paid in one payment before the issuance of a building permit.This will require <br /> that the revised in-lieu fee per parking space is set higher than the current rate. For example, a city <br /> may set the in-lieu fee at$28,000 per space, and offer a 10 percent reduction if paid in one <br /> i,,,, installment. A developer can choose to pay$28,000 in four equal installments of$7,000 each or <br /> pay$25,200 ($28,000 minus 10 percent) in one installment. <br /> Recommendation <br /> The administrative burden of offering a multiple payment plan outweighs any potential benefits. <br /> No change to the current practice of single payment is recommended. <br /> 4. Use of Fees <br /> Issue <br /> Other than building new parking facilities, what are the alternative uses of in-lieu fee payments that <br /> will benefit transportation access and safety? <br /> Analysis <br /> The current Redwood City ordinance clearly states that the fees shall be used exclusively for <br /> providing additional public parking spaces.The original intent behind this exclusive use <br /> requirement was to assure that the fee payments are not diverted into other uses and thereby <br /> creating a perennial shortage of parking spaces in the downtown. Cumulative fees collected over <br /> the last 10 years are not enough to fund a new parking facility. Moreover, adding new parking <br /> spaces may not be the most creative solution considering the increased emphasis on use of cleaner <br /> modes of transportation,TDM strategies and new and emerging options such as car-sharing, bike- <br /> p" sharing and Transportation Network Companies (TNC)that support reduced auto ownership and <br /> reduce parking demand. <br /> Many cities have embraced the approach of utilizing in-lieu fees for broader solutions and <br /> strategies that help them achieve their goal of creating a safe and robust transportation system <br /> that offers multiple options to driving and thereby reduce auto trips and cut down GHGs.The City <br /> SA should consider expanding the toolkit for effective and timely use of in-lieu fee payments, including <br /> the following alternatives. <br /> Redwood City In-Lieu Parking Fee Study Page 113 <br />