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7.A. - Page 6 <br /> projects versus mixed use with ground-floor retail. A fee of $5/square foot would <br /> be less than one percent of total development costs and one of the lowest of <br /> neighboring jurisdictions with Menlo Park at $8/square foot, Sunnyvale at <br /> $7.50/square foot, and Mountain View at $2.50/square foot. <br /> • Hotel— Generally, hotels require the greatest return on cost (due to high risk) and <br /> were the most sensitive to any fee level. The study found that a fee of $5/square <br /> foot would bring the project below the target return of 7 percent, but is generally <br /> in line with other cities' hotel fees and would be considered viable. This fee is <br /> lower than Menlo Park at $8/square foot, Sunnyvale at $7.50/square foot and <br /> Palo Alto at $19/square foot, while higher than Mountain View at $2.50/square <br /> foot. <br /> Residential Impact Fee: Single-family detached homes, townhomes, condominiums and <br /> apartments were evaluated for the residential study. These uses were converted into <br /> prototypes with generalized unit sizes and construction type. Many of the recently <br /> completed projects consisted of single-family homes and apartments, with fewer <br /> examples of condominiums and townhomes. The steep increase in prices and supply <br /> over the last several years made studying feasibility challenging, as sales figures and <br /> initial analysis was from projects sold or rented in Summer 2014 or earlier, prior to <br /> recent rent increases and completion of pipeline projects. In particular, examples of <br /> condominium sales were limited to the One Marina project. The condominium analysis <br /> was augmented by sales prices in similar nearby communities, to ensure a more <br /> accurate analysis. <br /> • Single Family — In the current market, single-family homes have the highest <br /> return on cost and the highest resulting threshold for financial feasibility with up <br /> to $25/square foot. For this use type, consideration of nearby cities' fees is a <br /> critical concern. Fees range from $15/square foot in Cupertino to up to <br /> $44/square foot in San Carlos. <br /> • Townhouse — This use type, smaller than single-family homes and larger than <br /> condos or apartments, also typically includes attached garages and three floors. <br /> Primarily built outside the downtown area, this use also has high value and <br /> supports a higher fee level of $25/square foot. Fees for townhouse range from <br /> $18/square foot (Daly City) to $23/square foot (East Palo Alto) and $21- <br /> $42/square foot (San Carlos). <br /> • Condominiums and Apartments — Condominiums and apartments share similar <br /> characteristics in size and parking. These unit types also have the widest range <br /> of value, as projects in the Downtown can be at higher density (and <br /> development value) than projects along El Camino Real or Veterans Boulevard. <br /> The study recommended a fee range from $15-$25/square foot, in line with <br /> Mountain View, Sunnyvale and San Jose and Cupertino. <br /> Proposed Redwood City Program - To implement this program, both an ordinance and <br /> resolution are proposed (Attachments 1 and 2). The ordinance lays out the requirement <br /> for the fee, alternatives to payment, and the use of the fees. The resolution establishes <br />