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BPAC - INFORMATION ITEM: Receive a Report Regarding Development Impact Fees Charged by the City.
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Meeting Date: March 20, 2025
Contact Person: Andrew Maximous, Mobility & Traffic Engineering Manager, Public Works Department
Phone #: (310) 253-5628
Fiscal Impact: Yes [X] No [ ] General Fund: Yes [X] No [ ]
Attachments: Yes [X] No [ ]
Public Notification: E-Mail via GovDelivery (03/14/2025): Meetings and Agendas - Mobility Subcommittee; /Notify Me - Construction, Street Maintenance and Closures; Stay Informed - Bicycle & Pedestrian / Culver CityBus / Construction, Street Maintenance and Closures
Department Approval: Yanni Demitri, Public Works Director/City Engineer (03/10/2025)
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BACKGROUND
At the January 16, 2025 meeting of the Bicycle & Pedestrian Advisory Committee (BPAC), members requested information regarding the City’s development fees, specifically what is collected and how the funds are spent. Development fees are one-time charges assessed during the planning and permitting process for new development in the City.
Staff will provide a brief report regarding the development fees and identify projects that have been or will be funded by the mobility-related fees.
DEVELOPMENT FEE DETAILS
Culver City has various fees for new development: (1) Affordable Housing Commercial Development Impact Fee; (2) Art in Public Places Program In-Lieu Fee; (3) Mobility Improvement Fee; (4) New Development Impact Fee - All Areas (1, 2, and 3); and (5) Residential Development Park Dedication and In-Lieu Parkland Fee.
Funds collected for the Mobility Improvement Fee and New Development Impact Fee are allocated for use by the Public Works Department to annually fund various mobility-related projects.
Each year, Culver City produces a Development Impact Fee Report for each fee program. Report summaries are included below. Reports for each fee program for Fiscal Years 2022-2023 and 2034-2024 are attached and include details regarding fee rates,.
Affordable Housing Commercial Development Impact Fee
The purpose of this fee is to facilitate the development and availability of affordable housing to a range of households with varying income levels within the City through creation and imposition of a fee on new commercial development, which will partially fund the need for affordable housing created by the workforce of this new commercial development. Culver City Municipal Code #15.06.600 Affordable Housing.
This fee is based on square footage and was established in January 2022. Funds are accounted for in a separate Affordable Housing Commercial Development Impact Fee Fund #439.
• In Fiscal Year 2022-2023 ending June 30, 2023, the Affordable Housing Commercial Development Impact Fee generated $0 in fees.
• In Fiscal Year 2023-2024 ending June 30, 2024, the Affordable Housing Commercial Development Impact Fee generated $878,830 in fees.
Art in Public Places Program In-Lieu Fee
The purpose of this fee is to ensure that development of cultural and artistic assets are financed by those whose development and revitalization diminishes the availability of the community's resources for those opportunities and contributes to community urbanization. Fee shall be 1% of applicable building permits. Culver City Municipal Code (CCMC) Section #15.06.100 Art in Public Places Program.
This fee was established in August 1988. Funds are accounted for in a separate Cultural Trust Fund #413.
• In Fiscal Year 2022-2023 ending June 30, 2023, the Art in Public Places Program In-Lieu Fee generated $529,314 in fees.
• In Fiscal Year 2023-2024 ending June 30, 2024, the Art in Public Places Program In-Lieu Fee generated $621,328 in fees.
Mobility Improvement Fee
The purpose of this fee is to provide a method for new development projects to pay their fair share towards the funding of the City's identified mobility infrastructure and programs, intended to reduce vehicle miles traveled and needed to support projected jobs and housing growth. Culver City Municipal Code #15.06.500 Mobility Improvement Fees.
This fee is largely based on square footage depending on the type of development. Fee was adopted June 2021 and became effective August 2021. Funds are accounted for in a separate Mobility Improvement Fund #437.
• In Fiscal Year 2022-2023 ending June 30, 2023, the Mobility Improvement Fee generated $399,052 in fees.
• In Fiscal Year 2023-2024 ending June 30, 2024, the Mobility Improvement Fee generated $2,484,387 in fees.
New Development Impact Fee - All Areas (1, 2, and 3)
The purpose of this fee is to provide a method for the financing of public works capital improvements made necessary by permitting new development for nonresidential use. Fees from each new development shall be appropriated and disbursed only for street improvements, traffic controls, and traffic management projects, which are made necessary by the development and are: (A) located within the area from which the fees were collected; or (B) located within the impact zone of the new development as determined pursuant to 15.06.040; or (C) found pursuant to 15.06.045 to benefit the new development and mitigate its traffic impact. Culver City Municipal Code Section #15.06.005 New Development Impact Fees.
This fee is based on square footage and was established in August of 1983. Funds are accounted for in a separate Community Development Fund #417.
• In Fiscal Year 2022-2023 ending June 30, 2023, the New Development Impact Fee generated $1,690 in fees.
• In Fiscal Year 2023-2024 ending June 30, 2024, the New Development Impact Fee generated $165,766 in fees.
Residential Development Park Dedication and In-Lieu Parkland Fee
The purpose of this fee is to mitigate impact of development activity and ensure that the public interest requisite of three acres of community parks or recreation facilities for each 1,000 persons within the City is maintained. The fees shall be used solely for the acquisition of new and rehabilitation of existing community parks and recreation facilities. Culver City Municipal Code Section #15.06.300 Residential Development Park Dedication and in-lieu Parkland Fees.
This fee is currently based density in dwelling unit or square footage. Fee was established in April of 1996. This fee is being revised, expected completion date May 2025. Funds are accounted for in a separate Parks Facilities Fund #419.
• In Fiscal Year 2022-2023 ending June 30, 2023, the Residential Development Park Dedication and In-Lieu Parkland Fee generated $167,242 in fees.
• In Fiscal Year 2023-2024 ending June 30, 2024, the Residential Development Park Dedication and In-Lieu Parkland Fee generated $190,679 in fees.
MOBILITY-RELATED PROJECTS
The Public Works Department allocates funds generated by the Mobility Improvement Fees and the New Development Impact Fees for various street improvement, bike and pedestrian, traffic management, and other mobility-related projects. Examples include:
• Annual Pavement Rehabilitation Program
• Neighborhood Traffic Management Program (NTMP)
• Bicycle and Pedestrian Action Plan Implementation
• Better Overland Project
ATTACHMENTS
Recent reports can be found on the City’s website: <https://www.culvercity.org/City-Hall/City-Departments/General-Info-Finance/Development-Impact-Fee-Reports>
• 2025-03-20-ATT-BPAC-Mtg-FY22-23 Affordable Housing Linkage Fee Report
• 2025-03-20-ATT-BPAC-Mtg-FY22-23 Art In Public Places Fee Report
• 2025-03-20-ATT-BPAC-Mtg-FY22-23 Mobility Improvement Fee Report
• 2025-03-20-ATT-BPAC-Mtg-FY22-23 New Development Impact Fee Report
• 2025-03-20-ATT-BPAC-Mtg-FY22-23 Park Dedication In-Lieu Fee Report
• 2025-03-20-ATT-BPAC-Mtg-FY23-24 Affordable Housing Linkage Fee Report
• 2025-03-20-ATT-BPAC-Mtg-FY23-24 Art In Public Places Fee Reportfy23-24
• 2025-03-20-ATT-BPAC-Mtg-FY23-24 Mobility Improvement Fee Report
• 2025-03-20-ATT-BPAC-Mtg-FY23-24 New Development Impact Fee Report
• 2025-03-20-ATT-BPAC-Mtg-FY23-24 Park Dedication In-Lieu Fee Report