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ELF Financing Strategy San Mateo County ELF Study‐2016 February 21, 2017 Prepared by Brion Economics Team Final Report 22 While they do not specifically mention early education, the initiative could be looked at as a potential source of funding for ELFs. Chan and Zuckerberg have started The Primary School in East Palo Alto, which will serve children and families in East Palo Alto and Belle Haven with full‐time school starting at age 3. Child care service is a key component of The Primary School’s model. The approach of the school is to provide primary education, health care, and early care to improve outcomes for underserved children.22 Mechanisms for New Development Development Impact Fees While development impact fees can’t fund existing shortfalls, impact fees can be levied on new development to fund the impact of the development, as discussed above. Table 7 shows a simple calculation of the child care requirement for new residential uses between 2015 and 2025. As shown in Table 7, based on an estimated population increase in San Mateo County of 60,200 residents between 2015 and 2025, and a “persons per household” estimate of 2.77, it is likely that an additional 21,733 residential units will be developed during the same time period. New development will generate child care demand for an additional 3,192 children, of which an estimated 2,414 are expected to require licensed ELF spaces. Assuming 100 sqft per child of indoor space and 75 sqft of outdoor space per child, 241,357 sqft of building space and 181,017 sqft of outdoor space will be required to meet new demand. If a project provides child care space in lieu of the fee, it should be equivalent to 11.1 sqft of indoor space per residential unit and 8.3 sqft of outdoor space per residential unit. Based on the above assumptions, the average cost per child care center space of $40,717, and a need for 2,414 new spaces, the potential total child care cost for new residential development is $98.3 million. With an additional 3% administrative cost, the total increases to $101.2 million. Allocated evenly to the 21,733 new residential units, the implied impact fee per unit totals $4,658, as shown in Table 8. In an actual nexus study the fee would vary by type of residential unit or density and apply to commercial uses as well. This calculation is a simple average cost per dwelling unit, countywide, and excludes land costs. 22 The Primary School website, viewed January 13, 2017. https://www.theprimaryschool.org/overview/ 8.C. - Page 41