Building Industry Association Letter &„, The Honorable Margaret Clark
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4 ®9A• Mayor
'ocrat`q Rosemead City Hall
Southern Cattorrto
Los Angeles one Ventura 8838 Valley Blvd.
Counties Chapter
Rosemead,CA 91770
ASSOCIATION OFFICERS
Scott Ouellette,Williams Homes April 27,2015
Scott Real Estate Advisory ,
BIA/LA V President
Subject: Development Impact Fee Study
Greg Medeiros,Tejon Ranch Company
BIA/LAV Vice-President
Dear Mayor Clark,
Keith Herren,Williams Homes
B1A/LAV Treasurer
• The Building Industry Association of Southern California — Los Angeles /
Mike Nix,Toll Brothers,Inc.
BIA/LAVSecretary Ventura Chapter ("BIALAV") represents over 1,100 home building businesses
Howard Press,Watt Communities throughout Southern California and is the voice of residential building
B1A/LAV Past President development here in Rosemead. BIALAV understands the critical importance
DarrinShannon,GothicLandscape - that traffic mitigation, public safety, and parks play in developing strong and
VP of Associates vibrant communities. New residents have the same expectations as existing
BOARD OF DIRECTORS ones, and through an equitable partnership with the residential development
AleksBaharlo,KFGlnvestmentCo. community, Rosemead can ensure that all residents, current and future, enjoy .
George Dickerson,All Promotions Etc. high quality communities in which to live and thrive.
Bart Doyle,
D.Barton Doyle Attorney at Law With this in mind, BIALAV offers the following amendments to the Development
Johnny Escobedo, Impact Fee Study(Final Draft—April 21,2015):
Landscape Development,Inc.
Andy Henderson, Provide a Phased-In Approach
The Henderson Law Firm
Al Lee,Lennar The City of Rosemead has a strong reputation as smart-growth friendly, and has
Karl Mallick,Kimley-Horn&Associates served as an example to others when it comes to supporting needed residential
Ken Melvin,Standard Pacific Homes development. As such, no impact fees are currently imposed upon new housing
units. The proposed fees effectively go from zero to sixty, signaling a dramatic
Eileen Merino,CDS Insurance
shift in policy. To ensure that housing is not discouraged, the fees should come
Tom Mitchell,Newhall Land online over a five-year period. This would be achieved by increasing the amount
John Musella,The Musella Group 20%year over year, and would prevent a shock to the development community
Rogelio Navar,California Home Builders through a more gradual approach.
Henrik Nazarian,Hall&Foreman,Inc.
Nkechi Odu,Chelsea Investment Corp. Ensure Fees Serve Rosemead Residents-Remove the General Government Fee
Ben Rocca,Richmond American Homes
The General Government Fee proposes to collect between $844 and $1,013 per
Sara Soudani,Lawyers Title
new residential unit to spend on local government. BIALAV is concerned by this
RichVillasenor,KB Home proposal in that it does not seek to serve residents in a direct manner similar to
Norm Witt,Cook Hill Properties the other proposed fees. Unlike traffic mitigation, public safety, and parks, an
increase in general government funds will fail to provide similar added value.
350 South Bixel Street,Suite 100,Los Angeles,California 90017 Office:213.797.5994 www.bialay.org
"The Voice Of Residential Building And Development"
Residents will be best served by a local government that does not look to expand and increase in size merely
because development occurs, but rather by one that continually seeks to work effectively within its existing
means.
Recalculate the Park Fee to Better Reflect Existing Priority Projects
The Park Fee, as currently configured, fails to properly take into account Rosemead's Draft Parks Master Plan,
which clearly lays out the City's park priorities in the coming years. Instead,the Park Fee uses existing parks as a
baseline for the fee amount. This means that new residential housing is effectively responsible for providing
enough funds to support aquatic centers, community centers, splash zones, and gymnasiums, even though the
City has no intention of building these facilities. Rather,the Draft Parks Master Plan calls for the construction of
neighborhood parks,a skate park,and improvements to existing playground facilities.The Parks Fee should take
into account City priorities and only enough to provide for projects currently on the park wish list.
Collect Fees upon the Issuance of Certificate of Occupancy
The proposed fees are to be collected and used in order to mitigate the impact that new residents have on
existing public infrastructure. By collecting the fees at the time the certificates of occupancy ("C of Os") are
issued, rather than at the time permits are pulled,the City can ensure that they are used solely for this intended
purpose. Developers often utilize more expensive financing at the beginning of a project. As a result, fee
collection upon the issuance of C of Os will dramatically reduce their impact on a residential unit's cost. Because
higher costs result in higher product prices, the collection of fees upon the issuance of C of Os will ensure that
housing remains accessible for Rosemead residents.
Exempt Affordable Housing Units
Affordable housing units are extremely difficult for builders to pencil out. In order to encourage development,so
that all residents can afford housing, Rosemead should exempt these units from paying the proposed fees.
Failure to do so sends the message that affordable housing is not a City priority. By keeping the cost of
developing affordable housing low, Rosemead can ensure that home ownership remains an attainable goal for
all residents, regardless of income level.
Of note, the Development Impact Fee Study uses an extremely low baseline for projected growth. The Study
anticipates a mere 28 residential units coming on line year over year, while traditional rates have been more
than twice this amount.Therefore, it is likely that significantly more fees will be generated, providing Rosemead
with additional resources to provide traffic mitigation,public safety,and parks for residents.
These recommendations reflect a reasonable compromise. BIALAV is pleased to share our thoughts with
Rosemead. Together, we can ensure that new fees are appropriate, that residential development is not stifled,
and that homes remain available for all Rosemead residents.
Development Impact Fee Study-2
f '
Sincerely,
•
4;641 e-414
Tim Piasky
Chief Executive Officer
Cc: The Honorable Sandra Armenta, Mayor Pro Tern
The Honorable Bill Alarcon,Councilmember
The Honorable Polly Low,Councilmember
The Honorable Steven Ly,Councilmember
Jeff Allred, City Manager
Matthew Hawkesworth,Assistant City Manager
Sheri Bermejo, City Planner
Michelle Ramirez, Community Development Director
Development Impact Fee Study-3