AGENDA REPORT - Laserfiche WebLink

option would not alter existing or planned programming and will not alter City revenue projections. . Option 2 - Retain the current fee amounts for one year to allow the City to complete its review of other development impact and processing fees and to assess the economic recovery. At the completion of one year, the Council will reconsider a fee adjustment. This option utilizes the same perspective as Option 1 but recognizes that with an improving economy it may be appropriate to review the fee when the economy stabilizes. Inherent in this option is recognition that there is justification for a fee increase in at least a few use categories. Selecting this option will not alter existing or planned programming and will not alter City revenue projections; however, it may result in increased LIHF revenue in the future. . Option 3 —Increase the fee for single family homes by 10% and 5% for multi-family and commercial. This option could also include a fee adjustment for single family only without any other adjustments. Option 3 relies heavily on the fee analysis and financial feasibility document that reflects both nexus-based supportability for fee increases and the ability for the development community to absorb those increases. This option assumes an across the board increase for all categories including multi-family and commercial which show less tolerance for absorbing fee adjustments. As a result of that situation, these categories would have a smaller increase (5%). Further, while the Council has considerable latitude in identifying a LIHF for single family homes, the range for multi-family and commercial is more limited since the financial feasibility analysis shows negative returns for both office and R&D/light industrial uses under current market circumstances. Notwithstanding those negative returns, the Report does indicate that based on the relative minimal impact of a fee adjustment, an increase in commercial fees can be tolerated. In view of the above, should the Council select this option, staff recommends an adjustment such as 10% for all single family homes and 5% for multi-family and C/O/I. As indicated above, as a reflection of the Report's feasibility findings, this option could include an adjustment to only single family homes. Finally, while the proposed percentage increases are somewhat arbitrary, they seem to be appropriate for generating increased fee revenue and being implemented without any significant impact to new development. • Option 4 - Adjust the fee to the maximum supportable amount that is financially feasible. This option assumes that the Council's goal is to adjust fees to their maximum supportable amount based on Report's findings. Selection of this option generally Page 8of12