1. Residential Impact Fee - Nexus Study Update City of Pasadena Conclusions & Findings Prepared by Brion & Associates In association with Nilsson Consulting September 22, 2014

2. Overview » Update to the 2005 RIF nexus study ˃RIF raised $19.4 million and $2 million in interest » Nexus study based on General Plan and MFA: ˃Fee funded facility must relate to the project paying fee ˃Fees must be reasonable cost of the project’s proportionate share. » Fee can’t fund existing development needs, or normal operations, or on-going maintenance costs » Capital replacement costs are allowed

3. Nexus Studies Requirements: » The purpose of the fee; » The specific use of the fee; » The reasonable relationship between the facility and development charged the fee; » The need for the facility related to development; and » The proportionality of the cost specifically attributable to new development.

4. Current Conditions » The City currently has ˃30 parks with 373 acres ˃260 acres of open space » Since 2005, the City acquired 4 new parks ˃Totaling 32 acres ˃Expanded two existing parks by 32 acres ˃For a total of 64 new acres of parkland

5. Demographics & Growth » Dwelling Units: 60,500 » Household population: 137,000 » New Growth to 2035: ˃12,900 dwelling units ˃24,700 new residents » Multi-family and condominiums will dominate growth » New population is 15.2% of total at 2035

6. Park Data » 4.62 park acres per 1,000 population ˃Includes parkland and open space » Current Park CIP costs for 2014-2018 total $124 million » City’s share is $105 million » New population’s share is $19 million (15.2%)

7. Park and Recreation Standards & Costs » New development requires ˃67.2 acres of new parkland ˃46.6 acres of open space » Average parkland price: $3.8 million per acre » Average open space price: $244,500 per acre Total park and open space costs: $302.7 million

8. Allowable Fee Per Nexus Study » Current RIF fee: » About $16,600 to $30,800 per unit » Allowable RIF fee: » Ranges from about $23,500 to $43,600 per unit » Average fee is $28,486 per unit » RIF fees could increase by 42%

10. Fee Comparison » What do other cities charge new development for parks? ˃Fees vary greatly ˃Fees based on market land values are higher and more comparable ˃Higher fees have the potential to provide new parkland in a reasonable time frame. » How do other cities spend revenues from park fee programs? ˃Spent on: +Capital improvements +Land purchases +Physical development of parkland » How successful are other park fee programs? ˃Cities that responded found their fees were successful or very successful. ˃Cities receiving large revenues from their park fees are able to upgrade parks and recreational facilities and acquire additional parkland

12. Fixed Spending Ratio » Flexibility is key in fee programs » Land acquisition opportunities are few and far between – can tie up monies longer than 5 years » Fees need to be used to leverage other grants and matching funds » City should target fees to districts but not restrict them » Capital replacement enhances existing parks to serve new development