Development impact fees are one-time charges levied upon new development and used by local governments to fund capital improvements required to serve this development. To meet constitutional (i.e., the Nolan and Dolan U.S. Supreme Court rulings) and statutory requirements (e.g., California’s Mitigation Fee Act, Government Code Section 66000 et seq.), the amount of a given fee must be determined by a formula that is consistently applied and based upon a proportional distribution of costs following “rational nexus” principles. Rational nexus means that a direct relationship exists between the fee charged to new development and the demonstrable need for public improvements and that the fee is proportional to benefits or impacts caused by new development.
EPS prepares rigorous technical analyses that demonstrate the required rational nexus of a proposed development impact fee and new development. The range of specific assignments includes:
- Impact fee nexus studies
- Evaluations and updates of impact fee programs
- Impact fee ordinance preparation and administration
- Regional development impact fees
- Economic effects of impact fees
- Fairfield Impact Fee Update
- San Joaquin Regional Traffic Impact Fee Study
- Milpitas Transit Area Specific Plan Area Development Impact Fee
- Santa Rosa Capital Facilities Fee Update
- Mammoth Lakes Development Impact Fee Program Review
- Sacramento City Parks Fee Update
- North Natomas Financing Plan and Nexus Study