Urban development and in-lieu fees (updated)
on the web at: https://sodacanyonroad.org/forum.php?p=1230
Bill Hocker | Jul 11, 2016

Update 8/1/16
NVR 8/1/16: Napa to seek more parking funds from downtown builders

Update 7/11/16
NVR 7/11/16 Napa to lift parking requirements on six downtown properties
$20,000/stall is the amount mentioned as an in-lieu fee. Since the cost of parking structures is $30,000/stall (the $12 mil, 400 stall structure mentioned in the article) to $50,000/stall (if undergrounded as would be required on the exempted sites) at the $20,000 rate the city and residents will end up subsidizing the profits of the developer.

Update 7/6/16
On July 7th, 2016, the Napa City Planning Commission is reviewing a proposal for a parking exempt overlay on 6 more properties downtown, similar to the Wiseman building with in-lieu fees to be paid instead. The staff letter for the proposal is here. It is highly unlikely that the city will assess the $50,000/stall needed to actually build new parking garages and the residents of the city will be expected to make up the difference, thereby subsidizing developers' profits. In reality the projects will be built now but the parking garages will only come in the distant future (if at all) and parking problems will become a major issue in the city. An exhortation from Harris Nussbaum to attend the meeting is here.

NVR 4/19/16: Napa planners to weigh downtown buildings, senior home

Re: the Wiseman building, please look at this 2009 cost estimate for a parking structure (now apparently hidden after my link to it). The estimate was $30000 per stall excluding land costs.

The cost of an underground garage was $50000 per stall. If the developer actually were required to provide the parking on the site the costs would probably be higher given the necessity to integrate it into the architecture of the building. And this is 2016. The in lieu fee, rather than $15,500/ stall, should be the actual cost of providing the parking on site.

As in all development projects, whether for industrial or commercial developments or housing projects (or wineries) developers are quite happy to pay in lieu fees because those costs are much lower than actually meeting ordinance requirements or providing mitigations. Guess who pays the cost difference: taxpayers in one form or another. Regardless of the public revenues touted at the planning commission phase, as Volker Eisele said, development never pays for itself, never. Residents are saddled forever with fee increases, tax increases and bond measures to pay for the unfunded costs of urban development. The developers take their profits, including the money saved on parking, and move on to another project - which governments are eager to approve because they need the windfall of new in-lieu fees to pay for the infrastructure needed for previous projects.

This rant is not about this specific project, which appears to be an attractive addition to the downtown. But urban development is ultimately a costly undertaking for the residents that will eventually be asked to pay more to maintain it. And we never ask ourselves, are we interested in living in a more urbanized world and willing to pay for the privilege? For me, and perhaps for others that enjoy their quasi-ruaral life in Napa, the answer is no.

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