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Page 2 of 6 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org <br />California cities’ fiscal situations, such as Proposition 13, have gone into effect, and local infrastructure or <br />resources not covered by enterprise fees have been consistently underfunded. Examples of local <br />infrastructure and resources not covered by enterprise fees include transportation (roadways, sidewalks, <br />signals, etc.), parkland and related facilities, schools, and housing. <br />In response to the limited funds available for infrastructure and other resources, the California legislature <br />passed the Mitigation Fee Act in 1987. The Mitigation Fee Act allows newly created commercial or <br />residential developments to pay for expanded infrastructure or resources. A nexus study analyzes the <br />connection between new development and its impact on city infrastructure, providing a frame of <br />reference for the establishment of fee levels. <br />In establishing an impact fee requirement, cities must adopt local ordinances or resolutions in order to <br />collect specific mitigation fees, which are also known as development impact fees (“impact fees”). <br />Redwood City’s ordinances establish that impact fees generally are required to be paid prior to the <br />issuance of a building permit for residential and/or commercial construction. However, the City Council <br />adopted an ordinance on June 11, 2018, granting the City the ability to defer certain development-related <br />fees, such as impact or enterprise fees, to a later specified time. <br />The Mitigation Fee Act requires cities to segregate impact fee revenues from the General Fund to account <br />for them in special revenue funds or accounts and to provide a public report on impact fee revenues <br />collected and expended within 180 days after the last day of each fiscal year. As described below, a report <br />on impact fee revenues collected and expended was posted on the City’s website within this timeframe. <br />More information about specific capital projects, including project purpose, timeline and funding sources <br />(as many projects are funded by sources other than impact fees), is provided with the Five-Year Capital <br />Improvement Program (CIP) available here. <br />ANALYSIS <br />This report addresses impact fees, in-lieu fees, and capacity fees. <br /> <br />Description of Impact Fee Programs <br /> <br />The City has three development impact fee programs. Per City policy, the Parks Impact Fee and Affordable <br />Housing Impact Fee are charged to new residential and nonresidential developments that meet certain <br />criteria, while the Transportation Impact Fee is charged to all new development. <br />1.Transportation Impact Fee The transportation impact fee is a one-time charge that the City <br />charges on new residential and nonresidential development to fund a proportionate share of the <br />cost of transportation improvement projects and transportation system improvements necessary <br />to mitigate the transportation impacts of new development within Redwood City. Improvements <br />include construction of traffic and multi-modal transportation improvements and traffic reduction <br />measures. The Program provides an equitable method for allocating the cost of reasonable and <br />necessary transportation improvements between the public and private sector, in accordance <br />8.A. - Page 2 of 55 <br />13