AgdaPkt 2006-03-27 - Laserfiche WebLink

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8A Page 4 Fiscal Impact There is no impact to the General Fund. Relative to current Ordinance language, potential reduction in Transportation Impact Fee payments of up to $700,000 is estimated, as a result of fee credits that could be enacted for existing vacant buildings. However, the Redwood City Traffic Impact Mitigation Fee Study (February 2000), which provides the basis for the Ordinance, only considered expected new development in formulating the fee and projecting anticipated revenues from the program; the study did not discuss vacant buildings. Thus, the estimated $700,000 is really unanticipated revenue, not a loss of revenue, and the proposed amendment should not significantly impact the revenues originally anticipated from the fee program. The proposed amendment will also eliminate a potential financial hurdle to businesses wishing to occupy existing vacant buildings, which may lead to additional sales tax revenue for the City. In light of the emerging ramifications of the three-year vacancy limit for credits, this part of the Ordinance now appears undesirable and results in unintended consequences, which would have come under scrutiny whenever a vacant building was re.occupied. For example, existing buildings that have been vacant for over three years, which might be required to pay the full traffic fee with no credit for previous uses, include several important Downtown buildings (unless permits obtained before Downtown Traffic Engineer Manager, Engineering & Construction J e Patterson mmunity Development Services Director fl(~ Ed ~verett City Manager Attachment: Proposed Ordinance Amendment RKH:ss s/library/reports/Richard/2006lAmendment - Transportation Impact Fee_Deletion of 3-yr credit limit requirement Page 4 of 4