Laserfiche WebLink
9.C. - Page 7 <br /> Structuring a Public Benefits Bonus Policy <br /> Public benefits bonus policies are known by a variety of names: incentive zoning, community <br /> benefits,land value recapture,and more. For clarity and consistency,this report will use the term <br /> public benefits bonus. Essentially,public benefits bonus policies allow for specific incentives or <br /> bonuses to be granted to a developer in exchange for certain benefits or amenities for the <br /> community.'While a bonus is often in the form of increased density,height, or FAR, sometimes it <br /> can include an expedited permitting process,waived impact fees,reduced parking requirements, or <br /> other types of incentives in exchange for public benefits that are important to the local community. <br /> Structuring a public benefits program can take a variety of forms,but most of them have these <br /> common elements: <br /> 1. Geographic Target. A bonus program is often targeted in specific areas of a city where <br /> increased intensity of development is desired. The targeting can happen by inserting the bonus <br /> program into a specific zone or designating neighborhoods explicitly in the ordinance language. <br /> The ordinance in downtown San Diego, for example,includes a map delineating the specific <br /> parcels eligible to participate in their bonus program. The City of Mountain View could establish <br /> the geographic target(s) through their upcoming Precise Plan updates along El Camino Real and <br /> elsewhere. <br /> 2. Public Benefits.Determining which public benefits are priorities to local residents and to the <br /> City overall is an important first step. The list of possible benefits is nearly endless: parks and <br /> open space;affordable housing;larger size homes (e.g. 3-bedroom units); street and <br /> transportation improvements; art and community facilities; educational facilities and funding for <br /> local schools;green development (e.g. LEED or eco roofs); economic opportunities (e.g. <br /> prevailing wage or first source requirements);and more. Ideally the City can engage with <br /> residents from the beginning to determine their priorities. For example,in both San Diego and <br /> Santa Monica, the list of community priorities for public benefit was developed in public <br /> meetings as a part of plan updates for a downtown Community Plan and a General Plan, <br /> respectively. The initial list created through resident participation should be evaluated by the City <br /> for appropriate city-wide and regional public benefits to be added,if necessary. For example, San <br /> Diego included the state affordable housing density program as a part of the FAR bonus <br /> program,making it easier for developers to understand and use and for staff to administer. <br /> 3. Bonus.Determine which bonuses will be offered to developers. Oftentimes,the bonus for <br /> developers will be in the form of increased intensity of use, such as an increase in the maximum <br /> FAR or height or dwelling units per acre. The City of Berkeley's bonus program includes an <br /> expedited permitting process for projects that provide certain benefits. Most importantly,the <br /> bonus offered needs to add value for the developer at the site where it will be applied. If a <br /> neighborhood already has a height or FAR limit greater than there is market interest to develop, <br /> for example, a bonus that allows for even greater development will not likely get used. It is <br /> important that the city has a clear understanding of what type and intensity of development the <br /> market can support. <br /> 1 See Stuart Meck,Editor. Growing Smart Legislative Guidebook:Model Statutes for Planning and the Management of Change. <br /> Page 2of15 <br />