Public Hearing – Proposed Amendment to Schedule of Taxes, Fees & Charges to Increase RIF by 5% & Amendment to PMC 4.17 to Add New Pocket Park Classification September 22, 2014

Recommendations Find proposed amendments exempt from environmental review pursuant to State CEQA Following public hearing, adopt resolution to increase RIF by 5% Establish transition criteria to determine which projects current RIF will apply – any project which has submitted complete set of plans for building permits & paid all plan check fees prior to effective date of resolution

Recommendations Maintain current language in PMC 4.17.060 which allows RIF to be used for park acquisition, construction & installation Direct City Attorney to prepare ordinance amending 4.17 of PMC to add new pocket park classification

Recreation & Parks Commission Recommendations March 4, 2014 - Commission endorsed: 5% increase to current RIF Maintain current language in PMC 4.17.060 which allows for RIF to be used for park acquisition, construction & installation Sept 9, 2014 – Commission supported Department of Public Works recommendation: Add new park classification for pocket parks to Section 4.17 of PMC Staff asked to return with a Green Space Gaps Map showing residential development locations generating RIF.

RIF History 1988 – RIF created with fee amount $650/unit 2002 – RIF increased from $756 to $1,604/unit 2003 – RIF increased from $1,604 to $3,659/unit 2004 – RIF increased to $19,743/unit 2005 – Changed methodology to # of bedrooms $14,588 studio to $27,003 five bedrooms 1988 – 2003 fee was based on land value of RS-2 zoned property (Civil Defense Center property in Eaton Canyon). During this time it was a flat rate per unit The fee was nominal during this time period and did not generate enough revenue to build projects or address the needs of our parks 2003 increase based on an a new appraisal of the RS-2 zoned property. Also that year exempted affordable housing units from increase changed methodology from just RS-2 zoned property to land value of a variety of land sale transactions. 2004 Nexus Study. Council chose to phase it in; year one $10,977 & year two $19,743 per unit Also in 2005 fee was approved to increase annually by CIP Council appointed a six members of the community to a RIF Committee: they were to look at ways to incentivize affordable housing Laura Olhasso, Pasadena-Foothills Association of Realtors; Tim Alderson, _____; Mark Persico, Rec & Parks Commission; Joel Bryant, developer; Mildrid Hawkins, ___; Ed Eyerman, Sares Regis Group

Impact Since 2005 City collected $19.4 million RIF which has been used to make dramatic improvements in Pasadena’s park infrastructure Since 2005, nearly $19.4 million generated and we’ve been able to do some amazing things in our parks 1st Picture – Central Park Playground 2nd Picture – Brookside Park Reece’s Retreat 3rd Picture – Synthetic Turf at Robinson Park 4th Picture – Renovation of Softball field at Villa Parke

New Parks & Acreage since 2005 New Parks – Since 2005 Acres Annandale Canyon 24.30 Desiderio Park 3.80 Linda Vista School Park 2.00 Madison Elementary 1.50 Subtotal – New Parks 31.60 Added Acreage to Existing Parks – Since 2005 Acres Robinson Park 2.36 Hahamongna Watershed Park Annex 30.00 Subtotal – Existing Parks 32.36 Total – Increase Park Acreage 63.96 With the fees collected, in addition to the numerous improvements to the parks, almost 64 acres of parkland has been added. Note: RIF used to help purchase Annandale ($2 million) and rent on Linda Vista School ($60,000/year) Additional Acreage Since 2005 New Parks: Annandale Canyon Santa Monica Mountains Conservancy Grant $ 2,500,000 Benefit Assessment District $ 1,364,000 Prop A (Parks) $ 500,000 RIF $ 2,000,000 Santa Monica Conservancy $ 100,000 TOTAL = $ 6,464,000 RIF $ 270,000 on 3/24/2014 for purchase of three additional parcels Desiderio Park Public Benefit Conveyance No Charge 1/13/2013 National Park Service approved transfer of property to City Linda Vista School Park RIF $ 60,000 FY 2012 Yearly lease payment to School District for use of property General Fund $ 120,000 FY 2013 & FY 2014 Yearly lease payment to School District for use of property Madison Elementary No Charge Joint Use Agreement with school district Added Acreage to Existing Parks: Hahamongna Annex Charter Capital Fund $ 1,236,000 on 3/21/2005 - Purchased 29.481 acres from MWD Robinson Park (former Highland Plastics Property) General Fund $ 3,948,750 on 12/11/2000 - Loan was paid back with General Fund for purchase of 2.5 acres at 965 Fair Oaks Ave

Jan 2014 Nexus Study Update Specifically, consultant was asked to: Nexus study update: review & analyze existing RIF & validate or calculate fees based on current residential land values Develop & recommend a distribution methodology to balance City’s ability to fund CIP projects & acquire new parkland & open space Compare park impact fees of 12 cities As you can see, this is a major increase. It should looked at in the context of all development-related fees. We do know that at the existing levels, the RIF has not adversely impacted residential development Rather than recommend the maximum allowable amounts which represent a 41.6% increase, the City Manager would like a study done of all development fees to see the impact of totality

Jan 2014 Nexus Study Update Update calculated 41.6% RIF increase In context of all development-related fees, such an increase could negatively impact residential & economic development Economic Development Division hired outside consultant to conduct comprehensive study of all development-related fees in City Final report will be presented to Economic Development & Technology Committee Fall 2014 As you can see, this is a major increase. It should looked at in the context of all development-related fees. We do know that at the existing levels, the RIF has not adversely impacted residential development Rather than recommend the maximum allowable amounts which represent a 41.6% increase, the City Manager would like a study done of all development fees to see the impact of totality

Recommended 5% Fee Increase Bedrooms Current Fee ($) per Unit Rec. Fee ($) Studio 16,709 17,544 1 17,633 18,515 2 19,584 20,563 3 22,521 23,647 4 27,363 28,732 5 or more 30,929 32,475 Affordable housing; skilled nursing facility; student housing 866 909 Increase RIF by 5% until comprehensive study of development-related fees is completed

Pocket Park Classification Expand Section 4.17.040 of PMC to include this pocket park definition: Small urban outdoor spaces, usually less than one acre in size that are open to general public Public outdoor spaces may include amenities such as seating areas, plazas, rest areas, landmarks & public art installations Typically found in urbanized areas of City Primarily serve immediate local population

Other Recreation & Parks Commission Actions May 6, 2014 Meeting: Staff presented information to Commission on Green Space Gaps Map & location of residential development Commission requested further review of current RIF allocation & development of distribution method to provide more flexibility in spending RIF regardless of district origin July 8, 2014 Meeting: Staff recommended eliminating park district boundaries to provide most flexibility Commission voted to not support staff’s recommendation Info requested from March 4th Meeting was the Green Space Gaps Map showing residential development locations generating RIF.

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