Developer funds may build up city coffers
A city report reviews the fees San Francisco charges developers for park maintenance, among other things.
(Examiner file photo)
A city report reviews the fees San Francisco charges developers for park maintenance, among other things.

SAN FRANCISCO (Map, News) - Developers could be asked to pay more than $200 million in fees in the coming decades for child care sites, parks and fire services to keep up with the number of new residents projected by 2025.

A new city report reviews the fees San Francisco charges, looks at population and employment growth forecasts, and reviews fees charged in other areas.

Currently, The City requires developers to contribute to San Francisco’s below-market-rate housing stock and has wastewater impact fees for residential developments. Additionally, members of the Board of Supervisors have required developers to pay special fees for certain projects, including those in the newly approved Market-Octavia plan and for the Rincon Hill towers. Generally, commercial developments, in certain areas, pay transportation, wastewater, child care and park impact fees.

The City — which is facing a projected $338 million budget deficit for the next fiscal year — can legally increase impact fees citywide on all new developments.

Depending on the type of development and number of bedrooms, the study found The City could charge developers per unit between $1,493 to $2,272 for child care, $3,078 to $7,854 for parks and $227 to $688 for fire services.

The report projects The City will see 55,871 more residents, 24,505 more housing units and 83,807 more employees — not including developments in Mission Bay, Rincon Hill and Visitacion Valley.

Residential Builders Association President Sean Keighran, who had not seen the report, cautioned that additional fees could “kill the goose that lays the golden egg,” saying housing development brings millions annually to the operating budget through property taxes.

A study of the financial feasibility of the new fees is being conducted by the Mayor’s Office of Economic and Workforce Development, and is expected by the end of May, according to Michael Cohen, director of OEWD.

“The hard work on figuring out what is the appropriate fee package still has to come,” Cohen said, adding that “we have to be extraordinarily cautious not loading up the Christmas tree so much that projects don’t get built.”

According to the report’s projections, The City will require three additional fire stations, as well as additional engines, trucks and a medic unit to keep up with San Francisco’s growth. The estimated cost for the additional facilities is $27.4 million. Another $167.7 million is projected for park acquisitions and improvements to serve new development. Funds needed to develop new child care facilities add up to $48.9 million, according to the report.

“Developments need to recognize the impacts they have on communities” said Supervisor Sean Elsbernd, who said he had not yet seen the report.

jsabatini@examiner.com


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11:01 AM MST on Sun., Apr. 20, 2008 re: "Developer funds may build up city coffers"

Examiner Reader said:
"Additionally, members of the Board of Supervisors have required developers to pay special fees for certain projects" Any deals cut be Supervisors should be administered by City Staff, not the legislative branch. Post Audits should be the norm for how funds were used (project names, locations, fund amounts etc). I also agree with the former poster that impact fees should be earmarked for those areas most affected. The South Van Ness Mission 400' towers are so severe and inconsistent with residential density in that area. Yes everyone should walk around in that area there are residential gems tucked away in the side streets. And get this, there are children living in those houses and even outside playing ball on the sidewalk. They are entitled to sunlight, not shadow, winds and endless cars searching for parking spaces that will not exist after new towers are built without parking. Please think about it when approving towers, 400' will kill these neighborhoods.

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2:23 PM MST on Sat., Apr. 19, 2008 re: "Developer funds may build up city coffers"

Examiner Reader said:
As with anything, I feel these projects really do need a balance, as in, the fees imposed on development need to be reasonable enough so it doesn't inhibit building the project in the first place. Once in place, I hope there equity on the dispursement of those funds, particularly in high impact areas (towers) like SOMA, North Mission areas. It would've been better to see the heights reduced for the towers on the west side of Van Ness to 120' from 400' to keep the area 'medium density' and consistent with the neighborhood. And it would be nice to see incentives for offices (jobs) to come to the area as well. Got to have jobs to live in this area and reduce your commute.

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