Increased fees for new homeowners coming
gvw_gv_wire
By gvwire
Published 8 years ago on
December 15, 2016
A new home under construction in Fresno

Share

New homebuyers in Fresno will be saddled with increased fees to pay for essential city services. But some in the home developer industry are unhappy the way the city will spend money designated for new parks.

The council voted on December 8  5-2 (with councilmen Steve Brandau and Clint Olivier in opposition) to approve a new level of fees addressing everything from street to public safety. A second affirming vote is expected at the December 15 meeting.

When a new developer builds homes in Fresno, the city charges them fees to help offset the impact of new residents. New homes mean more people. More people require more services: streets, sidewalks, traffic signals, police and fire, and parks to name more than a few.

According to city staff reports, the plan is to develop 121 acres of community parks and 296 acres of neighborhood parks to help accommodate an expected increase in population. However, some of those park fees ”will be used to repay outstanding debt service attributable to future development resulting from the 2008 Lease Revenue Bond sales.”

The Building Industry Association says that means that homeowners will be paying for existing parks instead of new parks in their area, in a letter sent to council. They estimate the split of the park fees 50-50 going toward new and paying for the old.

Mike Prandini, the association’s president, expressed concerns over the park fee while speaking to council. “We have concerns about the park (fees) on how they were established and some of the assumptions that were made,” he spoke in open comment regarding the fee debate.

“If we don’t this right, every fee payer will be filing a protest. The fees that you could be getting legitimately are going to be held back until it is resolved, and refunds could be required,” the association’s Jeffrey Reed warned council.

The park costs also include something called “Quimby” fees, which the city uses to help pay for park land and maintenance. For single family homes, those combined fees will increase by $476 per home (or $3878 per home total). However, industry experts are fuming over the fact that credits homebuilders received for developing new parks previously are being taken away, driving the price up further.

One industry expert tells GV Wire that the system before these new sets of fees was “build a park or pay fees.” Now, it is “build a park and pay fees.” Before, developers received credits to build parks that would help offset some fees. Those credits are estimated to be worth $2400 each. Thus nearly $2900 could be passed on to homebuyers on park fees alone.

The complicated system of fees depends on the size of the structure (both residential and commercial are included) and the area of the new development.  In fact, some of those fees are scheduled to decrease, such as police fees for new light or heavy industrial buildings (down by 30%). However, fire facility fees are up across the board, form 41% for single-family homes to a 1% increase for light or heavy industrial.

During the December 8 meeting, Olivier attempted to delay the fees discussion because of its complex nature. That was rejected by council. An accompanying fee vote on water was delayed for 60 days.

Disclosure: Granville Homes, corporate owner of GV Wire, is in the homebuilding industry and lobbied council on this issue.

RELATED TOPICS:

DON'T MISS

23 for ’23: A Year in Photos

DON'T MISS

See How this Fresno roastery sends aid to Northern Thailand.

DON'T MISS

District Says Fresno Teachers Contract Proposal Would Bankrupt Budget Reserves by Year 3

DON'T MISS

Trump Vows to Ban Gaza Refugees, Expand Muslim Travel Ban If He Wins

DON'T MISS

The Supreme Court Orders Makers of Gun Parts to Comply with Rules on Ghost Guns

DON'T MISS

George W. Bush for Speaker? A Democratic Lawmaker Thinks It’s Possible

DON'T MISS

Former Navy IT Manager Gets Five Years for Hacking, ID Theft

DON'T MISS

Gunman Kills Two Swedes in Brussels, Prompting Terror Alert and Halt of Belgium-Sweden Soccer Match

DON'T MISS

Zakaria: The Best Response to Hamas Would Be to Keep the Saudi Deal Alive

DON'T MISS

Groundbreaking Human Brain Atlas Offers New Hope for Treating Neurological Disorders

UP NEXT

Fresno’s Famous Gourmet Hot Dog Shop Sells

UP NEXT

City of Fresno’s Israeli Flag Raising Draws Supporters and Protesters

UP NEXT

Former Fresno CC Coach Ed Madec Arrested for Allegedly Threatening to Kill Chancellor

UP NEXT

Former Navy IT Manager Gets Five Years for Hacking, ID Theft

UP NEXT

Fresno Politicians Say They Stand With Israel in Remarks at Cornerstone Church

UP NEXT

Bulldogs Get a Bye Week to Heal After Gutting Out Win at Utah State

UP NEXT

Four Missing Hells Angels Secretly Cremated at Fresno Funeral Home: Federal Prosecutors

UP NEXT

Playful ‘Pepper’ Is Ready to Add Some Spice to a Forever Family

UP NEXT

Clovis Financial Adviser Puts YouTube Trade Strategies in His Crosshairs

UP NEXT

Dairy Pushes Tulare to Top Ag County in Nation. Grapes Displace Almonds as Fresno’s Top Crop.

You May like

Trump Vows to Ban Gaza Refugees, Expand Muslim Travel Ban If He Wins

1 year ago

The Supreme Court Orders Makers of Gun Parts to Comply with Rules on Ghost Guns

1 year ago

George W. Bush for Speaker? A Democratic Lawmaker Thinks It’s Possible

1 year ago

Former Navy IT Manager Gets Five Years for Hacking, ID Theft

1 year ago

Gunman Kills Two Swedes in Brussels, Prompting Terror Alert and Halt of Belgium-Sweden Soccer Match

1 year ago

Zakaria: The Best Response to Hamas Would Be to Keep the Saudi Deal Alive

1 year ago

Groundbreaking Human Brain Atlas Offers New Hope for Treating Neurological Disorders

1 year ago

Newsom Signs Law to Slowly Raise Healthcare Minimum Wage to $25

1 year ago

Former Fresno CC Coach Ed Madec Arrested for Allegedly Threatening to Kill Chancellor

1 year ago

Jim Jordan’s Rapid Rise Cheered by Trump and Far Right. Could It Make Him Speaker?

1 year ago

HOT OFF THE PRESS

23 for ’23: A Year in Photos

1 year ago

1 year ago

Trump Vows to Ban Gaza Refugees, Expand Muslim Travel Ban If He Wins

1 year ago

The Supreme Court Orders Makers of Gun Parts to Comply with Rules on Ghost Guns

Photo of a hacker typing on a laptop

1 year ago

Former Navy IT Manager Gets Five Years for Hacking, ID Theft

1 year ago

Gunman Kills Two Swedes in Brussels, Prompting Terror Alert and Halt of Belgium-Sweden Soccer Match

1 year ago

Zakaria: The Best Response to Hamas Would Be to Keep the Saudi Deal Alive

1 year ago

Groundbreaking Human Brain Atlas Offers New Hope for Treating Neurological Disorders