Irvine Housing Fee Plan Is Called Too Expensive

"This (proposed) law sends a clear message that the long-term interests of my company are outside of the city. I can't compete if I have a government that is loading up on me and making the costs of doing business higher and higher."

"A committee appointed to study the issue recommended to the council that developers be charged $5.50 per square foot for office space, $5 per square foot for research and development facilities, $3.50 per square foot for hotel and retail buildings and $3 per square foot for manufacturing plants and warehouses."

"The fees stem from the council's decision last year to require that 12.5% of all future housing in the city be built for low-income residents. At the same time, the council directed a blue-ribbon committee to look into linkage fees to be imposed on businesses and developers, to establish a fund that would help finance affordable housing."

The City Council considered a plan to charge developers fees based on commercial property type to fund affordable housing projects. A committee recommended fees ranging from $3 to $5.50 per square foot depending on development category, with residential development exempt. Developers opposed the proposal, with some requesting significantly lower fees and others arguing any fees would be detrimental. One developer stated the suggested $250,000 fee would eliminate profits on his planned project. The council postponed voting on the fee schedule. The fees were designed to support a requirement that 12.5% of future housing be built for low-income residents.

Read at Los Angeles Times