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<br />9¿!-1 <br /> <br />REPORT <br /> <br /> <br />January 9, 2006 <br /> <br />Subject <br />Extension of Downtown exemption to Transportation Impact Mitigation Fee (TIMF) for <br />new projects. <br /> <br />Recommendation <br />Approve the recommended amendment to Section 18.253 A8 of the City Code, which <br />would extend the TIMF exemption for projects in the Downtown area as an incentive for <br />development for 18 months or until a revised program is adopted. <br /> <br />Background <br />In April of 2000, the City Council approved Article XV, Transportation Impact Fee, of <br />the Municipal Code to provide for the financing of street, mass transit, and pedestrian <br />improvements throughout Redwood City, with the exception of Redwood Shores. A <br />study was prepared that detailed projects, financing, and related fee calculations based <br />on PM peak hour trips. <br /> <br />In January of 2003 an amendment to the ordinance was adopted which created an <br />exemption from this fee for the Downtown area. This exemption expired on July 1 of <br />this year. Then, as is the case now, the revitalization of the Downtown was a high <br />priority for the City Council. There were concerns that the TIMF would discourage new <br />development Downtown during a period of economic downturn and the construction of <br />the "On Broadway" retail/cinema project. All new uses (except offices) were exempted <br />from paying the TIMF. The area of exemption is bounded by Veterans Boulevard, <br />Maple Street, EI Camino Real, and Brewster Avenue. <br /> <br />This ordinance amendment currently under consideration would extend the exemption <br />to reflect the fact the Peninsula economy has still not fully recovered from the downturn <br />and that the Redevelopment projects have taken longer to complete than originally <br />expected. The recommended amendment would extend the exemption by 18 months. <br /> <br />The Downtown Precise Plan currently being developed will focus heavily on the <br />creation of housing and an enhanced retail environment in the Downtown area. <br />Redevelopment projects such as the On Broadway retail/cinema project, Courthouse <br />Square, and streetscape improvements are being undertaken in large part to stimulate <br />new private sector investment in Downtown. The proposed extension of the TIMF <br />exemption supports these objectives by extending the incentive for private sector <br /> <br />REDEVSHARED_2006 REPORTS_O1-2006_Trans Impact Fee Extension <br /> <br />1 <br />