Central City Impact Fee

Transcription

1 Central City Impact Fee Fee Breakdown For Projects Currently In The Area Subject To The Downtown Transportation Impact Fee Net Increase Residential (per unit) Retail (per bldg. sqft) Office (per bldg. sqft) Hotel (per room) $1,915 $1.54 $3.05 $819 Central City Impact Fee Total Cost Residential (per unit) Retail (per bldg. sqft) Office (per bldg. sqft) Hotel (per room) $2,968 $3.76 $5.08 $1,347 Key Dates Public Workshop December 19 th (12pm-1:30pm) 300 Richards Blvd. Room 221 Planning and Design Commission Review and Comment January 25 th Planning and Design Commission Hearing February 8 th City Council Hearing February 27 th 1

2 Truxel Rd El Camino Ave 5 Garden Hwy Northgate Blvd Del Paso Blvd American River 160 Richards Blvd River District Specific Plan Path: U:\GIS\GIS\Projects\15xxxx\D150842_CityofSacramentoDowntownSpecificPlan\03_Projects\Fig2-2_CentralCityPlanArea.mxd, FEP 11/28/2017 WEST SACRAMENTO 50 N Sacramento 5 Sacramento County Yolo County River 3rd St I St 4th St 5th St 6th St Q St R St S St 0 3,000 Feet Railyards Blvd Railyards Specific Plan Riverside Dr Broadway Land Park Dr 7th St 9th St 10th St P St N St L St 12th St W St X St SACRAMENTO Freeport Blvd 13th St E St F St G St H St I St J St K St 14th St 15th St 16th St CCSP Area 21st St 19th St C St 24th St Capitol Ave T St 99 29th St Broadway Alhambra Blvd C St E St H St J St Folsom Blvd 50 Stockton Blvd 80 Central City Specific Plan Area SOURCE: USDA, 2016;, 2016; ESA, 2017 Central City Specific Plan Figure 1 Central City Specific Plan Area 2

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4 Central City Impact Fee Key Benefits of the Central City Specific Plan & Environmental Impact Report - Cost savings with the certainty the Environmental Impact Report provides: o Potential for more than 10 months of time savings, by a project not needing to prepare separate environmental documents. o Depending on ownership, option on property, equity investment, and assumed savings from circumventing an extended CEQA review and litigation, the risk reduction and time savings can equate to hundreds of thousands of dollars. - Increased heights: o In the Commercial (C-2) zone; from 65 feet to 85 feet. o In the Office (OB) zone; from 35 to 65 feet. o In the Residential (RMX) zone; from 45 to 65 feet. - The maximum density in the Office (OB) zone is increased from 36 units an acre, to 65 units an acre. - Planning & Design Commission review is not required for exceeding 60 feet in height, in the C-3 zone. - Updated Central City Design Guidelines to reflect the latest infill development practices. - Opportunity Sites analysis that screens historic resources and includes a phase I environmental analysis. - Reduced private open space requirements: o In Central Business District, no private open space is required. Key Benefits of the Central City Impact Fee - Mechanism for developers to be reimbursed for eligible utility costs. - Inclusion of Grid 3.0 funding for various modes of transportation: o Makes the plan area more attractive to current and future residents. o Provides bike, pedestrian, and transit infrastructure necessary for mobility of existing and new residents. o Reduces parking demand. - Inclusion of Police and Fire funding for enhanced public safety facilities. Benefits to the Plan Area That Have Already Been Implemented: - Streamlined Entitlement Process - Reduced Park Impact Fee for the Central City. - Reduced Transportation Development Impact Fee for the Central City. - Reduced Quimby park requirement from 5 to 1.75 acres per 1,000 residents. - Fee Deferral Ordinance - Statewide Community Infrastructure Program (SCIP) 4

5 Table 1 Projected Future Land Uses Total CCSP [1] Units/ Bldg. Square Feet Persons Sq. Ft./ Persons per per Employee Employees Served Land Use Hotel Rooms Household/ [2] Residents [3] [4] units Residential 13, , ,710 Nonresidential Commercial bldg. sq. ft. Retail 1,073, ,146 1,073 Service 769, ,563 1,282 Subtotal Commercial 1,842, ,709 2,355 Office 1,518, ,421 2,711 Medical Office 314, , Government [5] Subtotal Nonresidential 3,674, ,177 5,590 hotel rooms Hotel [3] Total 21,710 11,737 27,580 Source: DKS; ESA; EPS. lu summ [1] Excludes River District and Railyards. [2] Square feet per employee assumptions provided by DKS. [3] Hotel rooms and employment provided by ESA. [4] Persons served is defined as residents plus 50% of total employees. [5] Office and Government uses are combined for the purposes of this analysis. Prepared by EPS 11/27/2017 P:\152000\ Downtown Specific Plan\Models\ m8 5

6 Table 2 Estimated Project Requirements and Funding at Buildout (2017$) Estimated Project Requirements and Funding Plan Area- Based Funding Other Funding Sources Private Estimated Central City Existing City and Other Subarea Developer Improvement Impact Fee Other Agency Funding Program Utility Rate Funding/ Item Costs (2017$) Program Fee Programs [1] Contributions [2] Revenue [3] Other [4] Construction Infrastructure Improvements Transportation Grid 3.0 [5] [6] $160,237,000 $26,678,227 $4,500,000 $900,000 - $128,158,773 - Freeways [7] $21,508,000 - $21,508, Total Transportation $181,745,000 $26,678,227 $26,008,000 $900,000 - $128,158,773 - Combined Sewer System (CSS) $115,509,600 $11,678,600 $10,350,000 - $93,481, Separated Storm Drainage $62,039, $62,039, Water $33,018,000 $13,436, $19,582, Total Infrastructure Improvements $392,311,600 $51,792,827 $36,358,000 $62,939,000 $113,063,000 $128,158,773 - Public Facility Improvements Street Lighting $31,110, $20,700,000 $10,410,000 Library [8] $9,663, $9,663,000 - Parks and Open Space [7] $20,186,000 - $20,186, Schools [7] $42,914,000 - $42,914, Police [8] $7,861, $7,861,000 - Fire [8] $6,456, $6,456,000 - Total Public Facility Improvements $118,190,000 - $63,100, $44,680,000 $10,410,000 Total Infrastructure and Public Facilities $510,501,600 TRUE $51,792,827 $99,458,000 $62,939,000 $113,063,000 $172,838,773 $10,410,000 su summ Source: ; NV5; DKS Associates; Mark Thomas & Co.; EPS. [1] Includes the following development impact fee programs: Park Impact Fees, Combined Sewer System Fee, Transportation Development Impact Fee, and Water Fee. Includes the following Other Agency development impact fee programs: Voluntary I-5 Subregional Corridor Mitigation Program and Sacramento City Unified School District SB 50 Fee. [2] Includes Existing Downtown Transportation Impact Fee Balance and Basin 52 Subarea Funding. [3] Includes utility rate revenues for CSS and Water. Utility rate revenue to be used for standard repair and replacement of facilities not needed to accommodate new development. In certain cases, utility repair and replacement needs may overlap with utility line upsizing needed to accommodate new development. The City may consider approaches to strategically prioritize repair and replacement needs in concert with utility upsizing and funding the costs that would otherwise be standard repair and replacement via utility rate revenues. [4] "Other" funding may include grant funding, or other sources of revenue such as capital campaigns by user groups. [5] The Grid 3.0 costs allocated to new CCSP development reflect the justifiable allocation of costs to new CCSP development. CCSP development will be eligible for a credit against the TDIF for Grid 3.0 costs also included in the TDIF. [6] Assumes the TDIF will fund new citywide development share of the Grid 3.0 Projects, per the TDIF Nexus Study. The TDIF Nexus Study includes $16.5 million in Grid 3.0 improvements, however the City adopted the TDIF with exemptions or incentives for certain types of development or thresholds of development (e.g., Transit Center development; Housing Incentive area development; first 5,000 sq. ft. of nonresidential development projects). The City estimates the actual revenue produced by the TDIF will be approximately 27 percent of the total costs included in the TDIF, therefore the TDIF is expected to generate approximately $4.5 million (2017$) in Grid 3.0 improvements [7] Assumes cost is equal to fee revenue generated by Central City Specific Plan development. [8] Equal to the costs associated with providing current facility level of service for new Central City Specific Plan development. Prepared by EPS 11/27/2017 P:\152000\ Downtown Specific Plan\Models\ m8 6

7 Table 3 Summary of Central City Impact Fee - Maximum Justified Fee Central City Impact Fee: Maximum Justified Fee CCSP Land Uses Item Residential Retail [1] Office [2] Hotel Central City Impact Fee Component per unit per bldg. sq. ft per room Transportation $1,292 $2.04 $2.82 $596 Sewer $771 $0.28 $0.28 $421 Water $608 $1.17 $1.61 $243 Subtotal (Transportation, Sewer, Water) $2,672 $3.49 $4.71 $1,260 Police $462 $0.36 $0.50 $106 Fire $379 $0.30 $0.41 $87 Subtotal (Police, Fire) $841 $0.66 $0.92 $194 Total All Components $3,513 $4.15 $5.62 $1,453 Plus 3% Administration $105 $0.12 $0.17 $44 Total Including Administration $3,618 $4.27 $5.79 $1,497 Source: Public Review Draft Report Downtown Specific Plan Public Facilties Finance Plan, October 2, sum alloc max [1] Includes Retail and Service land uses. [2] Includes Office and Medical Office land uses. Prepared by EPS 11/27/2017 P:\152000\ Downtown Specific Plan\Models\ m8

8 Table 4 Summary of Central City Impact Fee - Proposed Fee Central City Impact Fee: Proposed Fee CCSP Land Uses Item Residential Retail [1] Office [2] Hotel Central City Impact Fee Component per unit per bldg. sq. ft per room Transportation $1,292 $2.04 $2.82 $596 Sewer $771 $0.28 $0.28 $421 Water $608 $1.17 $1.61 $243 Subtotal (Transportation, Sewer, Water) $2,672 $3.49 $4.71 $1,260 Police [3] $115 $0.09 $0.13 $27 Fire [3] $95 $0.07 $0.10 $22 Subtotal (Police, Fire) $210 $0.17 $0.23 $48 Total All Components $2,882 $3.65 $4.94 $1,308 Plus 3% Administration $86 $0.11 $0.15 $39 Total Including Administration $2,968 $3.76 $5.08 $1,347 Source: Public Review Draft Report Downtown Specific Plan Public Facilties Finance Plan, October 2, sum alloc prop [1] Includes Retail and Service land uses. [2] Includes Office and Medical Office land uses. [3] Reflects 25 percent of maximum justifiable fee. See Table 3 for maximum justifiable fee amount. Prepared by EPS 11/27/2017 P:\152000\ Downtown Specific Plan\Models\ m8

9 Table 5 Net Impact of Proposed Central City Impact Fees Land Use Category Proposed Central City Impact Fee [1] Transportation Impact Fee District [3] Downtown Transportation Impact Fee Change TDIF Change (Assumes Incentive Rate) [2] Within Current Downtown Net Increase CCSP Remainder Downtown TDIF Change Transportation (Assumes Impact Fee Incentive Rate) [2] Change Net Increase per unit Residential $2,968 ($27) ($1,026) $1,915 ($69) NA $2,899 Nonresidential Retail [4] $3.76 ($0.07) ($2.15) per bldg. sq. ft. $1.54 ($0.18) NA $3.58 Office [5] $5.08 ($0.08) ($1.96) $3.05 ($0.18) NA $4.90 Hotel $1,347 ($20) ($509) $819 ($50) NA $1,297 per room Source: ; EPS. net change [1] See Table 4. [2] Central City Impact Fee based on maximum allocation of Grid 3.0 costs to Central City development. Central City development would therefore receive a credit against the TDIF for that portion of the TDIF that also funds Grid 3.0 costs. [3] Defined by the "downtown benefit district area" as provided in the Railyards/Richards/Downtown Nexus Study dated September 17, The downtown benefit district area is generally bounded by the Sacramento River to the west, S Street to the south, 17th Street to the east, and the Railyards Specific Plan to the north. The downtown benefit district area already receives credit for overlapping facilities. This table reflects the net change once the Central City Impact Fee replaces the current Downtown Transportation Impact Fee. [4] Includes Retail and Service land uses. [5] Includes Office and Medical Office land uses. Prepared by EPS 11/28/2017 P:\152000\ Downtown Specific Plan\Models\ m8 9

10 Figure 1 Citywide Development Impact Fee Updates Infrastructure Cost Burden Comparison for Single-Family Residential 2,000 Sq. Ft. Home, 3 Bedrooms, 8.0 Units/Acre Single-Family Residential $90,000 $80,000 $70,000 Estimated Fee Burden and Bond Debt per Unit $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 Sacramento Sacramento Sacramento Sacramento Sacramento Sacramento Sacramento Sacramento Elk Grove Elk Grove Folsom Folsom Rancho Cordova Rancho Cordova Rancho Cordova Rancho Cordova Unincorp. Sac. County Unincorp. Sac. County Rocklin Roseville Woodland Central City Specific Plan [1] South Sacramento Jacinto Creek North Natomas Greenbriar River District [2] 65th Street [2] Delta Shores Franklin Crossing Laguna Ridge Empire Ranch Folsom Plan Area Anatolia III Capital Village SunRidge Park (Phase 2) Villages of Zinfandel N. Vineyard Station Vineyard Whitney Ranch Fiddyment Ranch Springlake City/County Fees/Other Agency Fees (Includes School Mitigation) Bond Debt Plan Area Fees Proposed Central City Impact Fee Net Increase [3] [1] Assumes within ROMA fee area (Downtown portion). sfr chart [2] Plan Area Fees for the River District and 65th Street include economic development incentives in the form of reduced fees during the first years of development. This analysis assumes the full fee rates as indicated in the Plan Areas' respective Finance Plans. [3] Reflects the net increase between the existing Downtown/Railyards/River District Transportation Impact Fee and the proposed Central City Impact Fee Program. NOTE: With the exception of the TDIF, PIF, River District Fee, 65th Street Fee, and proposed Central City Impact Fee, the fees in this analysis reflect fees current as of June Prepared by EPS 11/29/2017 P:\152000\ Downtown Specific Plan\Models\Fee Comps\ Outreach Fee Comp m1 10

11 Figure 2 Infrastructure Burden Comparison for Multifamily Building 2 Acre, 200 Unit Complex (900 Sq. Ft. Per Unit) $45,000 Multifamily $40,000 Total Estimated Fee Burden and Bond Debt per Unit $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 Sacramento Sacramento Sacramento Sacramento West Sacramento West Sacramento Central City Specific Plan [1] Railyards Specific Plan [2] River District [3] 65th Street [3] Bridge District Specific Plan Tier 1 [4] Bridge District Specific Plan Tier 2 [4] City/County/Other Agency Fees (Includes School Mitigation) Bond Debt Plan Area Fees Proposed Central City Impact Fee Net Increase [5] [1] Assumes within ROMA fee area (Downtown portion). [2] Railyards plan area fee reflects the cost allocations from the November 2016 Railyards Specific Plan Public Facilities Finance Plan. A nexus study for the Railyards Plan Area Fee Program has not yet been approved. [3] Plan Area fees for the River District and 65th Street include economic development incentives in the form of reduced fees during the first years of development. This analysis assumes the full fee rates as indicated in the Plan Areas' respective Finance Plans. [4] The Bridge District One Time Special Tax (Plan Area Fee) is tiered to provide lower fee burdens to the earlier phases of development. Tier 1 is applied to the first 1 million square feet of Bridge District new development. Tier 2 is charged to new development between 1 million and 6 million building square feet. As of November 2017, development is still charged the Tier 1 rate. [5] Reflects the net increase between the existing Downtown/Railyards/River District Transportation Impact Fee and the proposed Central City Impact Fee Program. mfr chart Fees Current as of November Prepared by EPS 11/29/2017 P:\152000\ Downtown Specific Plan\Models\Fee Comps\ Outreach Fee 11Comp m1

12 Figure 3 Infrastructure Cost Burden for Office Building 75,000-Sq.-Ft. Building, 5-Acre Site Office Building $40 $35 Total Estimated Fee Burden and Debt per Bldg. Sq. Ft. $30 $25 $20 $15 $10 $5 $0 Sacramento Sacramento Sacramento Sacramento Sacramento Elk Grove Folsom Rancho Cordova Unincorp. Sac. County Roseville Davis Central City Specific Plan [1] Railyards Specific Plan [2] River District [3] Granite Park North Natomas Laguna Ridge Broadstone Unit 3 Infill N. Vineyard Station [4] Highland Reserve E. Davis/ Mace City/County/Other Agency Fees (Includes School Mitigation) Bond Debt Plan Area Fees Proposed Central City Impact Fee Net Increase [5] [1] Assumes within ROMA fee area (Downtown portion). [2] Railyards plan area fee reflects the cost allocations from the November 2016 Railyards Specific Plan Public Facilities Finance Plan. A nexus study for the Railyards Plan Area Fee Program has not yet been approved. [3] Plan Area fees for the River District include economic development incentives in the form of reduced fees during the first years of development. This analysis assumes the full fee rates as indicated in the River District Finance Plan. [4] CFD proceeds are not included in this analysis because bond proceeds primarily pay for fee-funded infrastructure. [5] Reflects the net increase between the existing Downtown/Railyards/River District Transportation Impact Fee and the proposed Central City Impact Fee Program. office chart NOTE: With the exception of the TDIF, PIF, River District Fee, and proposed Central City Impact Fee, the fees reflected in this analysis reflect fees current as of May Prepared by EPS 12/15/2017 P:\152000\ Downtown Specific Plan\Models\Fee Comps\ Outreach Fee Comp m1 12

13 Figure 4 Infrastructure Cost Burden for Retail Building 10-Acre Site, 100,000-Sq.-Ft. Project Retail Building $60 Total Estimated Fee Burden and Bond Debt per Bldg. Sq. Ft. $50 $40 $30 $20 $10 $0 Sacramento Sacramento Sacramento Sacramento Sacramento Elk Grove Folsom Rancho Cordova Central City Specific Plan [1] River District [2] Jacinto Creek North Natomas Delta Shores Laguna Ridge Broadstone Unit 3 Infill Rancho Cordova Sunridge Anatolia I [3] Unincorp. Sac. County N. Vineyard Station [3] Unincorp. Sac. County Vineyard Roseville North Central West Sacramento Southport City/County/Other Agency Fees (Includes School Mitigation) Bond Debt Plan Area Fees Proposed Central City Impact Fee Net Increase [4] [1] Assumes within ROMA fee area (Downtown portion). [2] Plan Area fees for the River District include economic development incentives in the form of reduced fees during the first years of development. This analysis assumes the full fee rates as indicated in the River District Finance Plan. [3] CFD proceeds are not included in this analysis because bond proceeds primarily pay for fee-funded infrastructure. [4] Reflects the net increase between the existing Downtown/Railyards/River District Transportation Impact Fee and the proposed Central City Impact Fee Program. retail chart NOTE: With the exception of the TDIF, PIF, River District Fee, and proposed Central City Impact Fee, the fees reflected in this analysis reflect fees current as of May Prepared by EPS 12/15/2017 P:\152000\ Downtown Specific Plan\Models\Fee Comps\ Outreach Fee Comp m1 13

14 Table 1 Summary of CCSP Prototype Feasibility Indicators Item Prototype #1: MFR Rental Prototype #2: MFR Ownership Condominium Prototype #3: Mid-Rise Office Building With Ground Floor Retail Prototype #4: Hotel Description 5-Story Apartment Building with Structured Parking 5-Story Condominium Building with Structured Parking 5-Story Mixed Use Office Building with Ground Floor Retail 7-Story Hotel Project per unit per unit per 1k gross bldg. sq. ft. per room Estimated Value [1] $372,000 $552,000 $324,000 $248,000 Development Characteristics Mo. Lease Rate/Sales Price/ADR $2,295/unit/mo. $552,000/unit $3.00/sq.ft./mo. $185 ADR/room Cap Rate 5.50% % 8.00% Site Acres Density (DU per Acre or FAR) DU/Acre 94.0 DU/Acre 2.75 FAR 5.00 FAR Gross Building Area 70,785 70,785 59, ,900 Number of Units/Rooms Average Square Feet per Unit/Room 850 1, Parking Assumptions (Structured Parking) 1.00/unit 1.50/unit 1.00/1,000 sq. ft. 0.50/room FEASIBILITY FINDINGS Current Fees With Proposed Central City Impact Fee [1] Rounded to the nearest $1,000. indicator Prepared by EPS 11/27/2017 P:\152000\ Downtown Specific Plan\Models\ Feasibility 14 m1

15 Table 2 Summary of CCSP Prototype Feasibility Analysis Page 1 of 2 Prototype #2: MFR Ownership Prototype #1: MFR Rental Condominium With Proposed With Proposed Current Central City Current Central City Item Assumptions Fees Impact Fee Assumptions Fees Impact Fee Development Characteristics Site Acres Site Sq. Ft. 21,780 21,780 Leasable/Saleable Area [1] 56,628 56,628 Gross Building Area 70,785 70,785 Number of Units/Rooms Average Square Feet per Unit/Room 850 1,200 Total Parking Spaces (Structured) per unit per unit Capitalized Value/Sales Price [2] $371,808 $371,808 $551,591 $551,591 Development Costs Direct Construction Costs [3] $220,988 $220,988 $313,514 $313,514 Other Soft Costs $44,198 $44,198 $62,703 $62,703 Current Fees & Permits $15,183 $15,183 $18,085 $18,085 Construction Financing [4] $10,794 $10,908 $15,181 $15,295 Builder Fee [4] $34,939 $35,309 $49,138 $49,508 Subtotal Development Costs $326,102 $326,586 $458,621 $459,105 Proposed Central City Impact Fee $0 $2,968 $0 $2,968 Total Development Costs $326,102 $329,554 $458,621 $462,073 Infrastructure Cost Burden $15,183 $18,152 $18,085 $21,053 Infrastructure Cost Burden as a % of Value/Price 4.1% 4.9% 3.3% 3.8% Infrastructure Cost Burden as a % of Development Costs 4.7% 5.6% 3.9% 4.6% Residual Land Value Per Unit/1,000 Bldg. Sq. Ft./Room $45,706 $42,254 $92,971 $89,518 Per Land Sq. Ft. Target: $139 $128 $201 $193 Residual Land Value as a % of Value/Price 10% or higher 12.3% 11.4% 16.9% 16.2% Feasibility Finding [1] Prototype #3: Includes 10,000 square feet of retail. [2] Includes capitalized value of structured parking. [3] Includes site work and structured parking construction costs. [4] Analysis assumes construction financing and builder fee increases when Central City Impact Fee is included. Prepared by EPS 11/27/2017 P:\152000\ Downtown Specific Plan\Models\ Feasibility m1

16 Table 2 Summary of CCSP Prototype Feasibility Analysis Page 2 of 2 Item Prototype #3: Mid-Rise Office Building With Ground Floor Retail Prototype #4: Hotel With Proposed With Proposed Current Central City Current Central City Assumptions Fees Impact Fee Assumptions Fees Impact Fee Development Characteristics Site Acres Site Sq. Ft. Leasable/Saleable Area [1] Gross Building Area Number of Units/Rooms Average Square Feet per Unit/Room Total Parking Spaces (Structured) ,780 21,780 50,911 54,450 59, , Capitalized Value/Sales Price [2] Development Costs Direct Construction Costs [3] Other Soft Costs Current Fees & Permits Construction Financing [4] Builder Fee [4] Subtotal Development Costs Proposed Central City Impact Fee Total Development Costs per 1,000 gross bldg. sq. ft. per room $324,002 $324,002 $247,631 $247,631 $223,636 $223,636 $149,992 $149,992 $44,727 $44,727 $29,998 $29,998 $13,866 $13,866 $8,528 $8,528 $10,866 $11,053 $7,258 $7,310 $35,171 $35,778 $23,493 $23,661 $328,267 $329,061 $219,270 $219,490 $0 $4,864 $0 $1,347 $328,267 $333,924 $219,270 $220,837 Infrastructure Cost Burden Infrastructure Cost Burden as a % of Value/Price Infrastructure Cost Burden as a % of Development Costs $13,866 $18,730 $8,528 $9, % 5.8% 3.4% 4.0% 4.2% 5.7% 3.9% 4.5% Residual Land Value Per Unit/1,000 Bldg. Sq. Ft./Room Per Land Sq. Ft. Residual Land Value as a % of Value/Price Target: 10% or higher ($4,266) ($9,923) $28,361 $26,794 ($12) ($27) $202 $191 (1.3%) (3.1%) 11.5% 10.8% Feasibility Finding [1] Prototype #3: Includes 10,000 square feet of retail. [2] Includes capitalized value of structured parking. [3] Includes site work and structured parking construction costs. [4] Analysis assumes construction financing and builder fee increases when Central City Impact Fee is included. summ feas Prepared by EPS 11/27/2017 P:\152000\ Downtown Specific Plan\Models\ Feasibility m1

17 Table 3 Central City Impact Fee Credit for Existing Uses - Examples Item Formula Office to Condominium Reuse Example Reuse Prototypes Office to Hotel Reuse Hotel Expansion New Use Residential Hotel Hotel Fee per Unit/Room A $2,968 $1,347 $1,347 Number of Units/Rooms B Total Fee Revenue C=A*B $83,114 $134,720 $336,799 Existing Use Credit [1] Office Office Hotel Fee per Bldg. Sq. Ft./Room D $5.08 $5.08 $1,347 Bldg. Sq. Ft./Rooms E 40,000 60, Total Fee Credit F=D*E $203,390 $305,085 $269,439 Net Fee Payment/Credit [2] G=C-F $0 $0 $67,360 Source: EPS. ccsp credit [1] Buildings demolished within 3 years are eligible for preexisting use credit. [2] If credit for existing use exceeds fee for new use, payment is equal to $0. Prepared by EPS 11/27/2017 P:\152000\ Downtown Specific Plan\Models\ Feasibility 17 m1