City Council Raised New Commercial Building Fees
The Sacramento City Council has imposed a huge fee hike on downtown commercial development.
Wednesday, November 3, 2004
Notifying few if any downtown builders beforehand, the City Council has raised its fees on new commercial building throughout the city by 81%, starting in December. The fee goes into the Housing Trust Fund. This fee hike, the first in 12 years, would add about $400,000 to the development cost of a sizeable new hotel or office building. City officials say the extra $800,000 raised each year through the fee hike would be used to building more affordable housing. Builders say it’s a serious new burden, especially on projects downtown. City officials have agreed to consider scaling it back for what are called infill projects – new constructionn in areas previously developed.