Those are the costs developers have to pay to mitigate their impacts on roadways and other city services. Elk Grove’s Mayor Patrick Hume says the goal is to help jumpstart new development and job growth.
“Hopefully, as we look to better economic times this does position us to where we do look a little more attractive to somebody looking to open a business and may even in fact be the fulcrum of the ability for them to open. Versus under the old fee structure maybe they might not have.”
This is the first time in Elk Grove’s nine-year history that the city council has reduced development impact fees.
Under the new fee structure, developers who build shopping centers will see their fees cut in half...from $12.99 per square foot down to $7.51.
Single-family home builders will see their fees drop by 30%. For office builders, they’ll go down by 42%.