San Benito County’s Board of Supervisors recently increased traffic impact fees for developers from $20,400 per residential building permit to $23,853 – a hefty raise that should have been phased in over several years rather than dumped on builders’ laps all at once.
Supervisors increased the fees to offset costs for transportation-related projects needed with future growth. An increase was appropriate, as the county had not done so in eight years. But 17 percent in one year, during an economic crisis at that, stands to potentially deter some builders from even considering San Benito County because $3,500 per unit amounts to a significant loss no matter how you look at it.
It’s a red flag and a deal killer.
Noticing the long time between increases, though, the county had reasonably hired San Jose-based Hexagon Transportation Consultants to study a potential increase to sustain service levels. The firm’s conclusion was recommending the 17 percent hike that the board ultimately approved on a 3-2 vote, with Supervisors Margie Barrios and Anthony Botelho dissenting.
Barrios had it right when she explained how she would have considered the $3,500 increase per unit if the county’s economy was in a better condition. Outside factors – especially one on this scale – must be considered.
In approving the measure, the board as a whole failed to recognize when creative solutions are necessary – and this is, no doubt, one of those situations.
The most obvious is to take the 17 percent that Hexagon deemed necessary and gradually increase the fee over two or three years.
The other is to start at a much lower point, perhaps 8 percent the first year, and increase the rate as necessary.
For a county that often touts its friendliness toward the private sector, taking the easy road in this instance sent a resounding message to the contrary.
