City of Culver City, California
City Council Agenda Item Report
RECOMMENDATION:
Staff recommends the City Council receive the report on development related taxes
and impact fees and direct staff as deemed appropriate.
BACKGROUND:
On May 19, 2008, City Council directed staff to return with information on
development taxes and impact fees currently assessed by the City. Subsequently,
staff researched and gathered information on the City’s current impact fees and tax
rates, the last time that the fee or rate was changed, and if the fee or tax is subject to
Proposition 218 (i.e. if an increase to the fee/tax requires approval by the voters).
An informational memo containing this information was provided to City Council on
June 5, 2008.
On June 23, 2008, City Council directed staff to agendize a discussion item related
to development taxes and impact fees.
DISCUSSION:
In order to distinguish the different types of taxes and fees in the Culver City
Municipal Code that developers may be subject to, staff has grouped them into four
distinct categories:
1. Development Taxes – Taxes on new development which can be used just like
any other general purpose tax (e.g. property and sales tax) to pay any lawful
Meeting Date: 09/08/08 Item Number: A-4
AGENDA ITEM: Discussion of Various Development Related Taxes and Impact
Fees in the Culver City Municipal Code.
Contact Person/Dept.: Nick Kimball, Sr.
Management Analyst
Phone Number: 310-253-6013
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [X] Attachments: [X]
Public Notification:
Culver City Chamber of Commerce and Master E-Mail Notification List (09/03/08)
Department Approval:
Sol Blumenfeld (09/02/08)
City Attorney Approval:
Carol Schwab (by H. Baker) (09/02/08)
Chief Financial Officer Approval:
Jeff Muir (by M. Noller) (09/03/08)
City Manager Approval:
Jerry B. Fulwood (09/03/08) City of Culver City, California
City Council Agenda Item Report
expenditure of the City, including public safety services, infrastructure
maintenance, City administration, etc. Culver City’s development taxes are:
a. Commercial & Industrial Development Tax
b. Condominium Tax
2. Development Impact Fees – Impact fees are imposed specifically to mitigate an
impact on the community that will result from the development. The amount of
the fee is related to the magnitude and cost of the impact. Culver City’s
development impact fee is:
a. New Development Impact Fee
3. Development In-lieu Fees – Development In-Lieu Fees are imposed to preserve
specific characteristic and quality of life issues in a community. A community
may establish special requirements that must be met by developers in order to
maintain a certain community characteristic or quality of life. With these fees, the
developer is typically given the option to meet the requirements within the scope
of the development, or to pay an in-lieu fee into a special fund controlled by the
City that can only be used for specific purposes. The amount of this in-lieu fee is
directly related to the cost of providing or preserving the required element.
Culver City currently has the following in-lieu fees:
a. Art in Public Places Program
b. Parkland In-Lieu Fees (aka Quimby fees)
c. Solar Photovoltaic In-Lieu Fee
4. User Fees – User Fees are charged by the City to recover the cost of providing
certain services that are used by a smaller portion of the community and do not
necessarily impact the community as a whole. The amount that can be charged
as a user fee is no more than what is directly related to the City’s cost for
providing the particular service (per Proposition 218). Information on user fees
and charges was considered and adopted by City Council separately as part of
the annual budget process and is not included as part of this agenda report.
The following sections provide basic information about each tax or impact fee,
including the CCMC section authorizing the tax/fee, when the tax/fee was
established, how the tax/fee is calculated, and whether increasing the tax/fee is
subject to voter approval per Proposition 218.
In addition to the taxes and impact fees described herein, developers are also
subject to any number of specific project mitigation measures as part of the City of Culver City, California
City Council Agenda Item Report
conditions of approval. These are typically project specific and vary based on the
project’s use, density, location, height, etc. Examples of these mitigation measures,
which shift the cost to the developer, include required infrastructure improvements,
specific traffic mitigating measures, and/or community benefits.
Development Taxes
The City’s Commercial & Industrial Tax (CCMC §3.08.800 et seq.) was
established in 1990 and is imposed on the development, construction,
reconstruction, or remodeling of all commercial and industrial structures or
properties in the City. If the total building valuation, as determined by the Building
Official, is less than $250,000, then the tax is $25. If the total building valuation, as
determined by the Building Official, is $250,000 or more, then the tax is $25 for the
first $250,000 in valuation plus 1.5% of the portion of the building valuation in excess
of $250,000.
For example, if a building valuation is determined by the Building Official to be
$1,000,000, then the Commercial & Industrial Tax due would be $25 for the first
$250,000 plus 1.5% of $750,000 (i.e. $11,250), for a total tax of $11,275. No tax is
imposed for reconstruction or remodeling of a building in connection with earthquake
rehabilitation.
This tax is subject to Proposition 218, which means that any increase to any portion
of the tax rate (i.e. the $25 flat rate or the % of valuation) requires approval by a
majority of voters at a general municipal election.
The City’s Condominium Tax (CCMC § 3.08.600, et seq.) was established in 1973
and is imposed on the development and construction of all condominium units,
whether new construction or conversion of an existing building. The current tax rate
is $1,000 per planned saleable unit.
As staff researched the condominium tax, it was discovered that this tax has not
been applied since the mid-1980’s. Staff has been unable to find specific
documentation explaining why the City discontinued charging this tax. However,
records indicate different condominium conversions which took place during that
time period (e.g. Heather Village and Raintree) requested, and were granted, relief
from paying this tax.
Staff believes that one possible reason that the condominium tax has not been
applied is because one justification for the need for the Condominium Tax is to
provide open space. As is explained in more detail in later sections, the City also
imposes a Parkland fee to provide park and open space. It may have been the
desire of a previous Council not to impose both the Condominium Tax and the City of Culver City, California
City Council Agenda Item Report
Parkland Fee. However, one fundamental difference between the two is that the
Condominium Tax is a general purpose tax and can be used for all City services,
including infrastructure maintenance, public safety, and open space. The Parkland
fees are an impact fee that can only be used for park land acquisition and capital
improvements to maintain City parks.
Since records from the mid-1980’s are incomplete and difficult to find, and there are
very few staff members with adequate institutional memory, this is staff’s best guess
as to the reasoning for not imposing the Condominium Tax. Despite the fact that the
City has not been collecting the tax, it is within the City’s authority to resume
collecting this tax again, effective immediately, upon Council’s direction to do so.
This tax is subject to Proposition 218, which means that any increase to the tax rate
above $1,000 per saleable unit requires approval by a majority of voters at a general
municipal election.
Impact Fees
The City charges a New Development Impact Fee (CCMC § 15.06.005 et seq.),
established in 1983, to provide a method for financing necessary traffic-related
public works capital improvements. The fee is $1.00 per square foot of non-
residential new development in excess of 5,000 square feet. Fees are deposited
into the New Development Impact Fund and may only be used only for street
improvements, traffic controls and traffic management projects which are made
necessary by the development.
However, the following exceptions are provided for in the CCMC and are therefore
exempt from paying the fee:
• Reconstruction of any building destroyed or damaged by fire, explosion, natural
catastrophe or Act of God to the extent that the reconstruction does not add to
the floor area of the structure which existed prior to its being damaged or
destroyed, or where such additional floor area is less than 5,000 sf; or
• Construction of parking structures, parking facilities and parking areas, but not
including vehicle display, repair or inventory storage space within a building; or
• Construction of mechanical equipment penthouses and structures; or
• Any development which is the subject of an Owner Participation Agreement
(OPA) or Disposition and Development Agreement (DDA) within the Culver City
Redevelopment Agency wherein there is established an alternative method for City of Culver City, California
City Council Agenda Item Report
mitigating the contemplated or calculated traffic impacts of the new
development.|1010|
This fee is not subject to Proposition 218. The fee amount has not been increased
since 1983. It is possible to increase this fee based upon the Consumer Price Index
(CPI), or some other relevant cost index, since 1983; or a more accurate cost study
could be performed by a consultant (see fiscal analysis section for an illustration of
the fee if it were to be increased by CPI).
In-Lieu Fees:
The City established an Art in Public Places Program (APPP) (CCMC § 15.06.100
et seq.) in 1988 to preserve and enhance the artistic character of the community.
The APPP is imposed on all new residential development of more than four units
and all commercial, industrial and public building development projects with a
building valuation exceeding $500,000. Additionally, interior and exterior
modifications and additions, remodeling of existing residential buildings of more than
four units, and all remodeling of existing commercial, industrial and public buildings
when the remodeling has a valuation exceeding $250,000, is subject to the APPP.
Earthquake rehabilitation required by the CCMC for seismic safety and residential
units covenanted for low-mod income households or for senior citizens are excluded
from paying the fee.
The APPP requires that the applicant provide approved art work with a cost equal to
1% percent of the total building valuation, excluding land acquisition and off-site
improvement costs. In-lieu of placement of an approved Art Work, the applicant may
choose pay to the City Art Fund an amount equal to the required allocation (i.e. 1%).
This fund is not subject to Proposition 218. To increase the 1% fee, a study should
be conducted to show the need to increase the fund to mitigate the funds’ purposes
stated in CCMC §15.06.100. Use of funds paid into the Art Fund are restricted by
CCMC §15.06.110.
The City has also established Parkland In-Lieu fees that require residential
developers (not required for commercial/industrial developers) to either provide
dedicated park open space or pay an in-lieu fee equal to the cost of providing the
required amount of park open space. The amount of required park open space is
determined using the project’s “density factor,” which is calculated using the most
recent federal census and is equal to the average number of persons per household
|1010| Most new large developments in the City are within the Redevelopment Project Areas. Therefore, traffic mitigation or
street improvements are covered by the OPA’s and DDA’s. City of Culver City, California
City Council Agenda Item Report
depending upon the type of construction: Single-family detached unit; Single-family
attached dwelling unit; Multi-family residential development with four or fewer units;
Multi-family residential developed with more than four units; or Mobile homes. The
stated goal for Culver City is three acres of park area for every one thousand
residents.
There are two different versions of the parkland requirement, one for new residential
developments of more than one unit that does not require a subdivision (CCMC §
15.06.300 et seq. established in 1973) and one for new residential developments or
conversions that require subdividing land (CCMC § 15.10.600, et seq. established in
1969). There are slightly different requirements depending on the size of the project
and whether or not a subdivision is required; however, the basic principals are
similar in both versions.
When a fee is paid in lieu of or in addition to providing the required amount of
parkland, the amount of the fee is the fair market value of the amount of land that is
required. The fair market value is determined by a written appraisal report provided
by and paid for by the applicant and prepared by an appraiser approved by the City.
Parkland In-lieu fees are deposited into the Park Facilities Fund and may be used
solely for the acquisition of new parkland and rehabilitation of existing community
parks and recreational facilities. Funds cannot be used for normal park maintenance
or personnel costs.
As part of the City’s Parks Master Plan Update, the Parkland requirement and in-lieu
will be reviewed by the consultant currently working with PRCS staff, which may
include possible recommendations to update, expand or improve the parkland
ordinance.
This fee is not subject to Proposition 218 and residential developments and
subdivisions containing units covenanted for low-mod income households or senior
citizens are exempt from the parkland requirement.
Recently, the City adopted a Solar Photovoltaic In-Lieu Fee (CCMC § 15.02.100,
et seq.). The Solar Photovoltaic Ordinance requires all new buildings, additions, and
major renovations to existing buildings (where such renovation is equal to 50% of
the valuation of the existing building) of 10,000 sf or more of gross floor area be
equipped with a 1kw solar photovoltaic system for each 10,000 sf of gross floor area,
or fraction thereof. An applicant unable to install the required solar photovoltaic
system must pay an in-lieu fee in an amount equal to the cost of a system installed
in a comparable project. These fees are deposited into a Solar Photovoltaic Fund
and appropriated and disbursed only for solar photovoltaic designs and installations
on City buildings or facilities. City of Culver City, California
City Council Agenda Item Report
This requirement does not apply to one- and two- family residences, parking
structures, garages and renovations or additions to existing buildings and is not
subject to Proposition 218.
Looking forward, the Community Development, Public Works, and Transportation
Departments are working on developing and implementing a Regional Trip
Mitigation Fee that would apply to qualifying new development and would be based
upon Los Angeles County’s Congestion Management Program. The purpose of the
regional trip mitigation fee is to fund regional traffic improvements within the sub-
region encompassing the Westside Los Angeles Council District Office and the
County. The development of this fee is still in the concept phase. City Council will
receive more information as it is developed with the cooperation of affected agencies
and jurisdictions.
Attachment 1 provides City Council with a summary comparison of a few
surrounding cities that have Impact and In-Lieu fees contained in their municipal
codes. Attachment 2 provides the same information in more detail. The summary
shows that Culver City is, for the most part, on par with the comparison cities as it
relates to number, type and amount of taxes and impact fees that developers are
subject to.
As previously mentioned, increases in the Commercial & Industrial Tax or
Condominium Tax would require voter approval at the next general municipal
election (April 2010). Increases in the Impact or In-Lieu fees could be approved by
the Council with further study.
FISCAL ANALYSIS:
The table below shows a 5-year history of actual receipts for each tax/fee and
current receipts (through May 31, 2008).
Fiscal Year Receipts -- 5-year History
As of
5/31/08
Description 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Commercial Industrial
Develop Tax* $283,380 $120,242 $225,140 $1,528,241 $558,648 $2,162,725
Condominium Tax n/a n/a n/a n/a n/a n/a
New Development Impact
Fee $4,217 $43,508 $1,950 $3,958 $1,950 $250,002
City of Culver City, California
City Council Agenda Item Report
Art in Public Places In-Lieu
Fee $166,623 $154,507 $107,648 $53,135 $307,342 $24,010
Parkland In-Lieu Fee $52,910 $41,153 $45,812 $4,215 $63,152 $92,403
Solar Photovoltaic In-Lieu
Fee n/a n/a n/a n/a n/a n/a
Total $507,130 $359,410 $380,550 $1,589,549 $931,092 $2,529,140
*The large spikes in FY 2005-06 and 2007-08 revenues are related to Symantec and
Westfield Mall expansion, respectively.
Additionally, the following calculation shows the New Development Impact Fee if it
were to be adjusted annually since its inception in 1983 by the Consumer Price
Index – All Urban Consumers (CPI-U) for the Los Angeles-Riverside-Orange County
area.
CPI-U Adjusted fee = $1.00 per sf * 226.7 (Index as of May 2008) = $2.28 per sf
99.1 (Index as of Dec. 1983)
If the New Development Impact Fee were to be adjusted by inflation, then the new
fee would be increased from $1.00 per square foot to $2.28 per square foot of non-
residential development over 5,000 square feet. The City of Pasadena is the only
other comparison city with a New Development Impact Fee similar to Culver City’s.
Pasadena has a tiered charge based on the type of use ranging from $3.10 per
square foot for a new industrial use to $8.62 per square foot for a new retail use (see
Attachment 2 for more detail). Adjusting the New Development Impact Fee by
inflation would bring Culver City more into line with Pasadena.
If the City Council directs staff to pursue a consultant to study any of the City’s
Impact and In-Lieu fees, there would be a cost associated with hiring a consultant to
conduct such a specialized study. Although an Impact/In-Lieu fee study is
fundamentally different than the user fee study conducted in 2007, staff estimates
that the cost for such a study would be approximately $50,000 based on the cost to
conduct the user fee study.
To add a new tax or increase any of the existing development related taxes requires
approval by Culver City voters at a General Municipal Election. Adding an item to a
ballot has associated staff cost and translation and printing cost which vary
depending on the length and complexity of the ordinance being voted on.
City of Culver City, California
City Council Agenda Item Report
ATTACHMENTS:
1. Summary Comparison of Development Taxes and Impact fees
2. Detailed Comparison of Development Taxes and Impact fees
MOTION:
That the City Council:
Receive and file the report and direct staff as deemed appropriate.
MEETING DATE: September 08, 2008
AGENDA ITEM : Discussion of Various Development Related Taxes and
Impact Fees in the Municipal Code.
ATTACHMENTS
Pages
1. Summary Comparison of Development Taxes and Impact fees 1 – 2
2. Detailed Comparison of Development Taxes and Impact fees 3 – 6
Attachment 1:
Development Taxes and Impact Fees
Survey Summary
Description Culver City Beverly Hills
Hermosa
Beach Inglewood Los Angeles
Manhattan
Beach Pasadena
Santa
Monica Torrance
Commercial Industrial
Development Tax
1.5% of bldg
value
n/a n/a
1 % of bldg
value
n/a n/a
1.5% of bldg
value
n/a 1.5% of bldg value
Condominium Tax
$1,000 per unit
min $3,700 per
unit converted
only
n/a
$600 per unit
converted only
n/a n/a n/a
$1,000 per
unit
n/a
Dwelling Unit Construction
Tax
n/a
$600 per new
dwelling unit
n/a No $200 per du
$700 per
dwelling unit
n/a $1,000 per sfr
$550 per dwelling
unit
Residential Development Tax
n/a n/a n/a n/a $300 per du n/a n/a n/a n/a
Parks and Recreational
Facilities Tax
n/a $3.75 per sq. ft. Fee set by reso min. $175 per du n/a n/a n/a $200 per du $550 per du
New Development Impact Fee
$1 per sq ft n/a n/a n/a n/a n/a
min $3.10
per sq ft
n/a n/a
Art in Public Places In-Lieu Fee 1% of bldg
value
1% of bldg value n/a n/a
min $0.39 per
sq ft
1% of bldg
value
n/a n/a n/a
Parkland In-Lieu Fee
market value of
park reqrmnt
n/a
market value of
park reqrmnt
n/a n/a n/a
Fee set by
resolution
n/a n/a
Solar Photovoltaic In-Lieu Fee
market value or
solar reqrmnt
n/a n/a n/a n/a n/a n/a n/a n/a
Affordable Housing Mitigation
Fee
n/a n/a n/a n/a
Considering:
either max $5
per sq ft; or
3.5% of bldg
value
n/a n/a n/a n/a
Page 1 of 6Attachment 1:
Development Taxes and Impact Fees
Survey Summary
Description Culver City Beverly Hills
Hermosa
Beach Inglewood Los Angeles
Manhattan
Beach Pasadena
Santa
Monica Torrance
Transportation Impact Fee
n/a n/a n/a n/a n/a n/a n/a n/a
Utility Undergrounding
Impact Fee
n/a n/a n/a n/a n/a n/a n/a n/a
Sewer Impact Fee n/a n/a n/a n/a n/a n/a n/a n/a
Fire Facilities Impact Fee n/a n/a n/a n/a n/a n/a n/a n/a
Police Facilities Impact Fee
n/a n/a n/a n/a n/a n/a n/a n/a
Residential
SFR - Exempt
MFR/Other - $1,537 per
unit
Non Residential
Commercial
Local - $5,158 per 1k sf
General - $4,669 per 1k sf
Center - $1,305 per 1k sf
Industrial
Light - $918 per 1k sf
Heavy - $1,162 per 1k sf
Bus. park - $1,441 per 1k
sf
Page 2 of 6Attachment 2:
Comparison of Development Taxes and Impact Fees
Description Culver City Beverly Hills Hermosa Beach Inglewood Los Angeles
Commercial Industrial
Development Tax
Tax on remodel or new commercial
construction = $25 for first $250k of
total building value plus 1.5% of the
building valuation in excess of
$250k.
N/A N/A Nonresidential Construction Tax
Tax on all nonresidential construction
= 1% of the total value of
construction.
N/A
Condominium Tax
Tax on new condominium
construction OR buildings being
converted to condominiums = $1,000
per dwelling unit being sold or
converted.
Tax only on buildings being
converted to condominiums =
$3,750 per dwelling unit being
converted. Newly constructed
condos subject to Dwelling Unit
tax below.
N/A Tax only on buildings being converted
to condominiums = $600 per
dwelling unit being converted.
Newly constructed condos subject to
Dwelling Unit tax below.
N/A
Dwelling Unit Construction Tax
N/A Tax on new residential
construction = $596.85 per
dwelling unit plus $119.38 for
ea. bedroom in dwelling unit.
N/A Every dwelling unit constructed, enlarged
or remodeled in the City of Los Angeles
pays $200.00 for each dwelling unit.
Residential Development Tax
N/A N/A N/A N/A Every dwelling unit constructed, enlarged
or remodeled in the City of Los Angeles
pays $300.00 for each dwelling unit.
Parks and Recreational Facilities
Tax
N/A Tax on any new building,
rebuild, or remodel = $3.75 per
sq. ft. floor area. Used only for
park facility improvements.
Requires every person constructing a
new dwelling unit to pay an amount
set by resolution of the city
council, with the amount of the tax
adjusted on an annual basis using
CPI.
Tax on new residential construction =
$175 per dwelling unit of one (1)
bedroom or less plus $50 for ea.
bedroom in dwelling unit. Used for
Park facility improvements.
N/A
New Development Impact Fee
Impact fee on nonresidential new
development = $1 per sq. ft. Used
for traffic related capital
improvements
N/A N/A N/A N/A
Art in Public Places In-Lieu Fee
Requires public art component for all
new residential bldgs more than 4
units and new commercial
construction over $500k = 1% of
total bldg valuation.
Requires public art component
on new construction = 1% of
construction cost for bldgs
$500k to $1M. 1.5% of
construction cost for bldgs
over $1M. Can pay in-lieu fee
of 90% of required value.
N/A N/A The owner of a development project for a
commercial or industrial building is
required to pay an arts fee as follows:
1. Office or R&D bldg = $1.57 per sf
2. Retail bldg = $1.31 per sf
3. Manufacturing bldg = $0.51 per sf
4. Warehouse bldg = $0.39 per sf
5. Hotel bldg = $0.52 per sf
In no event shall the required arts fee
exceed either $1.57 per gross sf of any
structure.
Page 3 of 6Attachment 2:
Comparison of Development Taxes and Impact Fees
Description Culver City Beverly Hills Hermosa Beach Inglewood Los Angeles
Parkland In-Lieu Fee
Requires all new residential
development and subdivisions of
more than one unit to provide a set
amount of parkland based on density
factor of development or pay an in
lieu fee = market value of parkland
requirement as determined by a
qualified real estate appraiser
approved by the City. Use only for
park facility improvements
N/A Requires all new residential
development and subdivisions of
more than one unit to provide a set
amount of parkland based on density
factor of development or pay an in
lieu fee = market value of parkland
requirement as determined by a
qualified real estate appraiser
approved by the City. Use only for
park facility improvements
N/A N/A
Solar Photovoltaic In-Lieu Fee
Requires all new bldgs and major
renovations over 10,000 sf to have
1kw solar voltaic system per 10,000
sf of gross floor area or pay in-lieu
fee equal to the cost of installing
the system in comparable project.
N/A N/A N/A N/A
Transportation Impact Fee
Utility Undergrounding Impact
Fee
Storm Drain Impact Fee
Sewer Impact Fee
Fire Facilities Impact Fee
Police Facilities Impact Fee
N/A N/A N/A N/A N/A
Affordable Housing Mitigation
Fee
N/A N/A N/A N/A Placeholder for potential Affordable
Housing Mitigation Fee Ordinance not yet
in effect. If such an ordinance is adopted
in the future, the required fee shall not
exceed either $5.00 per sq ft or 3.5
percent of the valuation of the project ,
as determined by the Department of
Building and Safety, whichever is lower.
This fee shall be used to mitigate any
affordable housing needs created by the
project.
Page 4 of 6Attachment 2:
Comparison of Development Taxes and Impact Fees
Description
Commercial Industrial
Development Tax
Condominium Tax
Dwelling Unit Construction Tax
Residential Development Tax
Parks and Recreational Facilities
Tax
New Development Impact Fee
Art in Public Places In-Lieu Fee
Manhattan Beach Pasadena Santa Monica Torrance
N/A Constuction Tax:
Every building, swimming pool or similar permit issued
by the planning, housing and development services
department shall be subject to a construction tax at the
rate of 1.5% of the value of the structures included
in said permits, or as may be subsequently adjusted
by permit modifications.
N/A Construction Tax:
Imposed on every person who constructs or alters any
building or structure, excluding a dwelling unit or addition or
accessory structure thereto, at the rate of 1.5% of the total
value of all construction work for which the building
official requires a permit. The tax rate shall be 1% for any
building or structure which is exempt from taxation as a
low-income property or is constructed by a charitable
organization as a 170(C)(2) in the IRS Code.
N/A N/A Tax on new condominium
construction OR buildings being
converted to condominiums =
$1,000 per dwelling unit being
sold or converted.
N/A
Every person constructing any
new dwelling unit in the City
shall pay to the City the sum of
$700.00 for each dwelling
unit.
N/A Residential Dwelling Tax
Tax on new single family unit
construction = $1,000 per
planned salable single family
unit.
Every dwelling unit constructed, enlarged or remodeled in
the City of Torrance pays $750.00 for each dwelling unit.
The tax shall be adjusted in relation to the change, if any, in
the Consumer Price Index, All Urban Consumers.
N/A N/A N/A N/A
N/A N/A Tax on any new dwelling unit =
$200 per dwelling unit. Used
only for park facility
improvements.
Imposed on every person constructing any new dwelling unit
in the City pays $550 for each dwelling unit. Used only for
Park facility improvements.
N/A Traffic Reduction and Transportation Improvement
Fund:
Impact fee on all new development for traffic related
improvements as follows:
1. New industrial use: $3.10 per square foot.
2. New office use: $3.72 per square foot.
3. New retail use: $8.62 per square foot.
4. New residential use: $2,480 per new unit.
Increased annually by CPI
N/A N/A
Requires public art component
for all new residential bldgs
more than 4 units and new
commercial construction over
$500k = 1% of total bldg
valuation.
N/A N/A N/A
Page 5 of 6Attachment 2:
Comparison of Development Taxes and Impact Fees
Description
Parkland In-Lieu Fee
Solar Photovoltaic In-Lieu Fee
Transportation Impact Fee
Utility Undergrounding Impact
Fee
Storm Drain Impact Fee
Sewer Impact Fee
Fire Facilities Impact Fee
Police Facilities Impact Fee
Affordable Housing Mitigation
Fee
Manhattan Beach Pasadena Santa Monica Torrance
N/A Residential Impact Fee:
Requires all new residential development and
subdivisions to provide parkland based on number of
bedrooms in residence. Fee is set by resolution. Use
only for park facility improvements.
N/A N/A
N/A N/A N/A N/A
N/A N/A N/A New residential and non-residential development in the City
of Torrance are required to pay an impact fee for residential
and non-residential buildings in an amount established by
resolution of the City Council as follows:
Residential
SFR - Exempt
MFR/Other - $1,537 per unit
Non Residential
Commercial
Local - $5,158 per 1,000 sf
General - $4,669 per 1,000 sf
Center - $1,305 per 1,000 sf
Industrial
Light - $918 per 1,000 sf
Heavy - $1,162 per 1,000 sf
Bus. park - $1,441 per 1,000 sf
N/A N/A N/A N/A
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