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established in the General Plan. Chapter 17.40 of the PMC establishes the purpose, applicability, and requirements for use of the fee (the amount of the fee itself is to be established separately by resolution of the City Council, and subject to annual adjustment). The current Affordable Housing Fee rates were adopted on September 18, 2018. Fees for non-residential uses were determined as part of a Nonresidential Development Housing Linkage Fee Nexus Study prepared by Economic & Planning Systems, Inc. (EPS). The EPS study set the basis for the Affordable Housing Fee which is adjusted annually based on the Consumer Price Index. The Public Storage project would be classified as an industrial use, for which the current Master Fee Schedule establishes a rate of $13.02 per square-foot for industrial projects, as seen in Figure 1 below. Figure 1: Current Affordable Housing Fee (due at the bine building permit is B. Affordable Housing Fee issued) - Applicable to all new consbvcoan and non-residential additions exceeding 200 sq rt. Subject to an annual inflation adjustment on January t of each year based upon the Consoner Price Index for the San Francisco/Oakland regr`on. Residential Single-family detached(over 1,500 sq ft) $45,575.00 (per dwelling urat) Single-family detached(1.500 sq ft or less) $44,592.00 Multi-family(Apartment,Condominium) $44,592.00 Non-Residential Retail $4.70 (per square foot) Hotel/Motel $3.24 Office $7.84 Industrial $13.02 The methodology in the EPS Study is based on several data-driven assumptions, including employment density/generation for various types of uses, to establish the fee. As seen in Figure 2, below, the study assumes 400 square-feet per employee (or 250 employees per 100,000 square-feet) for the "office/light industrial/R&D" employment generation category, into which Public Storage would fall. Said another way, this metric assumes that for every 400 square-feet of new space in an industrial project, demand for one new employee would be generated. As shown in the table below, other uses such as retail, hotels/motels have different (lower) employment densities/generation rates. Page 10 of 18