City Council Raised New Commercial Building Fees

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(Sacramento, CA)
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.