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Chico City Council moves forward with proposed development impact fees

Chico, Calif.— The Chico City Council is another step closer to approving a package of development impact fees that would substantially increase the amount developers pay for new construction.

Posted: Dec 19, 2017 10:21 PM
Updated: Dec 19, 2017 10:26 PM

Chico, Calif.— The Chico City Council is another step closer to approving a package of development impact fees that would substantially increase the amount developers pay for new construction.

With every new housing development comes an increased demand on city services, from police and fire, to sewer and roads. That increased use is paid for by the impact fees paid by developers.

This proposed increase in fees now under consideration actually comes in a package of 15 subcategories of services. Prior to tonight's city council meeting, 13 of the 15 had been approved.

Tuesday night the city council added a 14th, voting 5-2 to approve the so-called Sewer-Water Pollution Control Plant and Sewer-trunk line fees.

A remaining sticking point is the so-called variable rate, meaning should a three bedroom home pay the same fee rates as mansions?
That issue will go back to the city finance committee for further consideration.

Also, discussion regarding the Urbanization and Street Facilities fee will be postponed until January in order to allow the city attorney to review legal concerns.

Even when all 15 fee categories are approved, it doesn't mean the developer fee will increase.

The city council will then proceed with considering the fee package as a whole - and then approve the actual increase.

Ultimately, the fee could go up about $5,000 which would be passed down to homebuyers.

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