With local economic conditions in serious difficulty, over 12% unemployment and housing construction depressed severely, The Alliance Board of Directors said now is not the time to impose hefty development fees on new residential, retail and commercial construction. Sacramento’s Dept. of Transportation is recommending for the first time, a Transportation Development Impact Fee (TDIF) to fund new roadway, signal, bikeway and transit construction that would add $6,251 to the cost of a single family home.
According to Willdan Financial Services, the City’s financial advisors, the fee for each multi-family residence under 10 stories would be $3,572; retail buildings would be assessed $8,427 per 1,000sf; and office buildings would have to cough up $10,213 per 1,000sf. Fees would increase on an annual basis.
“As much as we need transportation improvements to accommodate growth, let’s not fund it on the backs of an industry in serious trouble,” said Jerry Vorpahl CEO of the Alliance. “This is no time to be Hard Hearted Hanna – pouring water on a drowning man,” he said.
The Sacramento Regional Builders Exchange also opposes the TDIF and has requested Mayor Kevin Johnson to hold a meeting of all stakeholders before bringing the $710 million fee hike before City Council in October.
