The City Council has directed staff to prepare a ballot measure for the November 4, 2014 election making Emeryville a Charter City, as most of our neighbors already are. Only charter cities can increase their Property Transfer Tax. As a general law city, we are restricted to follow state guidelines for how to organize and run our city. A charter city has greater autonomy, in that we can set our own guidelines through charter amendments passed by the electorate. More info on the city website here.
Because redevelopment went away two years ago, Emeryville has had to adapt, as 95% of our city was inside a redevelopment area, and we received significant funding for our budget and capital improvements from redevelopment as a result. Today, the council is looking at ways our neighboring cities have traditionally paid for these things, and one of those tools is the Property Transfer Tax. The Property Transfer Tax is a fee paid at the time of a property sale or transfer. Our current fee, which is the maximum allowed under general law, is about 5% of what Alameda collects and about 4% of what both Berkeley and Oakland collect. If we become a charter city and increase this tax, we have a lot of room to gain funds for critical capital improvements, and will still be competitive compared to our immediate neighbors.
The Property Transfer Tax is not going to be a consistent source of funds for the city, as it depends on how many parcels change hands year to year, and on what those parcels' value is according to the market. Looking back over the past several years, if we had had in place Alameda's higher rates, Emeryville could have collected between $800,000 - $13 million/year, instead of the current $38,000 - $600,000/year. These fees are paid when a property is sold, and are often split by the seller and buyer as closing costs.
March 18: City Council directed staff to bring back a charter city ballot measure. Staff report is here.
April 22: City Council approved the "narrow" or limited charter city idea, and directed staff to engage a consultant to poll on this ballot measure, along with the range of Property Transfer Tax we would consider. Staff report is here.
I hope you will support the charter city measure and the property transfer tax to help Emeryville find new funds to continue to improve our city.
Sunday, May 4, 2014
Impact Fees: Transportation, Housing and Parks
The City Council is considering Impact Fees to help Emeryville maintain and improve roads, parks and create affordable housing. These fees would be levied on any new residential or commercial developments in town.
These three fees will help to replace some of the redevelopment funds that we no longer have. There are three types of fees we are considering, and all funds that come in are designated to each type of improvement, as their adoption is based on studies that show how new development in town needs to pay for the impacts associated with that development. All studies we conducted justify the maximum fees that could be collected. What the staff is recommending is something far below that cap. Finding the right mix of fees so that we are not discouraging development is important.
Transportation Impact Fees
We have had a Traffic Impact Fee in place since the 1990s. This means that what we are doing is updating the reasonable amount that can be collected on each unit or by square footage (for non-residential). It also means that we have a new list of projects that can be funded through this fee. Most of the projects are improvements for bicycles and pedestrians. Car infrastructure improvements have been the focus in the past, and now we need to encourage fewer cars and more alternative transportation modes to reduce the traffic in town.
Affordable Housing Impact Fees
Every new development, even market rate developments, directly create an increased need for affordable housing in our region. A new unit brings people who will buy groceries, eat out, shop at clothing stores, use housecleaners -- and all of these actions require staff who are not paid adequately to live in the expensive Bay Area. As housing costs go up (and they are doing so in Emeryville), we have to make sure there is good affordable housing. I think this is critical, and one of my biggest jobs as a leader here.
These fees will help, but will not cover the cost of adequate affordable housing. We will continue to find other sources of funds to ensure we are creating a "just" Emeryville where all incomes are welcome.
Parks and Recreation Impact Fees
Emeryville is a dense 1.2 square mile urban village, and we need open space to make it a desirable place to live and play! Particularly for families, but for all residents and employees, we need more open space. These new fees cannot pay to remedy the historic lack of open space, but can pay for more parks that are required to support new development. Building parks in infill locations is very expensive, as it can mean relocating tenants and tearing down buildings. But look at how many people were enjoying the Movie in the Park at Doyle Hollis on Friday night! This is a critical need as well, and we must have a way to pay for new parks.
Please see additional information in the staff report from the April 1 study session (special city council meeting). This will be coming back to council at the May 20 or June 3, 2014 meeting. The impact fees have gone to various committees in April for input.
These three fees will help to replace some of the redevelopment funds that we no longer have. There are three types of fees we are considering, and all funds that come in are designated to each type of improvement, as their adoption is based on studies that show how new development in town needs to pay for the impacts associated with that development. All studies we conducted justify the maximum fees that could be collected. What the staff is recommending is something far below that cap. Finding the right mix of fees so that we are not discouraging development is important.
Transportation Impact Fees
We have had a Traffic Impact Fee in place since the 1990s. This means that what we are doing is updating the reasonable amount that can be collected on each unit or by square footage (for non-residential). It also means that we have a new list of projects that can be funded through this fee. Most of the projects are improvements for bicycles and pedestrians. Car infrastructure improvements have been the focus in the past, and now we need to encourage fewer cars and more alternative transportation modes to reduce the traffic in town.
Affordable Housing Impact Fees
Every new development, even market rate developments, directly create an increased need for affordable housing in our region. A new unit brings people who will buy groceries, eat out, shop at clothing stores, use housecleaners -- and all of these actions require staff who are not paid adequately to live in the expensive Bay Area. As housing costs go up (and they are doing so in Emeryville), we have to make sure there is good affordable housing. I think this is critical, and one of my biggest jobs as a leader here.
These fees will help, but will not cover the cost of adequate affordable housing. We will continue to find other sources of funds to ensure we are creating a "just" Emeryville where all incomes are welcome.
Parks and Recreation Impact Fees
Emeryville is a dense 1.2 square mile urban village, and we need open space to make it a desirable place to live and play! Particularly for families, but for all residents and employees, we need more open space. These new fees cannot pay to remedy the historic lack of open space, but can pay for more parks that are required to support new development. Building parks in infill locations is very expensive, as it can mean relocating tenants and tearing down buildings. But look at how many people were enjoying the Movie in the Park at Doyle Hollis on Friday night! This is a critical need as well, and we must have a way to pay for new parks.
Please see additional information in the staff report from the April 1 study session (special city council meeting). This will be coming back to council at the May 20 or June 3, 2014 meeting. The impact fees have gone to various committees in April for input.
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