City-Wide Development Impact Fee Program

Draft Development Impact Fee Nexus Study Update

The City is in the progress of updating its development impact fees to fund city-wide infrastructure improvements that are necessary to support future development. Pursuant to the Mitigation Fee Act (AB 1600), a Draft Nexus Study Update has been prepared to establish the maximum justifiable impact fees. Two versions of the nexus study are available based on the development scenarios being considered for the update of the Ravenswood Business District/4 Corner Specific Plan: Scenario 1 for up to 2.82 million square feet of office/research and development space, and Scenario 2 for up to 3.35 million square feet of office/research and development space. A Draft Financial Feasibility Analysis has also been prepared to evaluate the effect of impact fees on project feasibility.

• Draft Development Impact Fee Nexus Study Update: Scenario 1, June 14, 2024

• Draft Development Impact Fee Nexus Study Update: Scenario 2, June 14, 2024

Draft Development Impact Fee Financial Feasibility Analysis, June 19, 2024

Please address comments or questions to Hanson Hom, Deputy City Manager, Special Projects, at hhom@cityofepa.org by July 15, 2024.

The following impact fees apply to development projects in the City of East Palo Alto:

Parks and Trails, Public Facilities, Storm Drainage and Transportation Infrastructure Impact Fees

On April 2, 2019 the City Council adopted Chapter 13.28 and an accompanying Fee Resolution to collect one-time impact fees from development projects to fund four categories of infrastructure improvements: 1) parks and trails; 2) public facilities; 3) storm drainage and 4) transportation infrastructure. The updated comprehensive fee schedule for FY23-24 is July effective 1, 2023.

These impact fees were based the Development Impact Fee Program Nexus Study (revised February 28, 2019), which assessed the fair share contribution from projected new development to fund infrastructure improvement needs in the City. The purpose of the Nexus Study is to demonstrate a reasonable and proportional relationship or nexus between the fee rate and the impact of anticipated development in compliance with the Mitigation Fee Act. In addition to the Nexus Study, an accompanying Development Impact Fee Program Financial Feasibility Study (revised February 28, 2019) was prepared to analyze the potential financial impact of the fees on development projects. The Financial Feasibility Study evaluates ten (10) residential and commercial development prototypes through pro forma analyses to determine residual land value.

A fact sheet with fee schedule for the four types of impact fees is provided below. Additionally, links to the background reports are also available.

Water Capacity Fee

A separate nexus study was prepared for water supply and system infrastructure improvements, and water capacity impact fees were adopted by the City Council in July 2018. See below for more information.

Affordable Housing Impact Fees

The City assesses affordable housing impact fees for residential and non-residential development. The most current fee table is provided below, along with the approved resolution for the residential impact fee and the ordinance for the non-residential impact fee.

Other Development Impact Fees and Requirements

The following links provide information on other impact fees and requirements that might pertain to your development project.