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from 8,000 square-feet per employee to 20,000 square-feet per employee. A number of nexus studies reviewed by staff utilized the rate established by the San Diego Association of Governments (SANDAG) (i.e., 15,000 square-feet/employee), and this number appears to be the most widely used in traffic studies and other analyses prepared by local governments. On this basis, while the proposed reduction is not dramatically different from the other studies reviewed, the 98.8 percent requested reduction, equivalent to 1 employee per -33,000 square-feet, is on the low end.5 If the SANDAG ratio (i.e., 15,000 square-feet/employee) were applied to the subject project, 11 employees would be generated (165,660 square-feet divided by 15,000) which would be 2.7 percent of the assumed employees (11 divided by 414). As described, there is also some historical precedent for reducing the Affordable Housing Fee for similar storage projects. The two examples with approved fee reductions cited above also generated far fewer employees than assumed (i.e., 1.65 percent and 1.29 percent). Both of those projects received fee reductions for the storage portion of the projects but not for the office nor manager's unit portions of the projects. The reduction in fees for the storage component alone was 78 percent and 77 percent, although it is unclear from reviewing the minutes and resolutions of the past approvals, exactly how these past reductions were established. ALTERNATIVES Based on the project-specific information, including an employee rate significantly below that assumed in the Nexus Study to develop the current fee and design of the storage buildings, staff believes the criteria to grant the reduction would be met, and provides a sufficient basis to support the requested fee reduction. Nonetheless, it is acknowledged that there is discretion available to the Council in granting the request, and the Council could consider other options with respect to this request (including no reduction). Staff suggests the following options (please note, all dollar amounts are based on current fee rates, and rounded to the nearest dollar; actual amounts would vary based on fee in place at time of building permit issuance, but would reflect the proposed percentage reductions): 1. Option 1. No fee reduction: Reduction of 0 percent for entire project. Total fee would be $2,156,893. 2. Option 2. Reduce the fee, in a manner consistent with past practice: Reduction of 0 percent for the office and manager's unit and reduction of 77 percent (the lower of the two most recent fee requests that have been granted) for the storage. The total fee would be $516,878. 5 Studies reviewed include the San Diego Association of Governments(SANDAG)Traffic Generators Report;2007 Snohomish County Employee Density Study;and a March 2010 study Logistics Trends and Specific Industries that Will Drive Warehouse and Distribution Growth and Demand for Space prepared for the NAIOP:Commercial Real Estate Development Association. Page 14 of 18