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Park Fees Update 2 May 24, 2005 Due to the significant increase in land values in San Leandro and the Bay Area, it is necessary to adjust the Park Facilities Development Impact Fee to reflect the current land values. By adjusting the Park Facilities Development Impact Fee, the City can ensure that the current standard for park facilities of 4.86 acres per 1,000 population be maintained with the expected increase in population as a result of future development. Anal sis Attachment 2 provides a summary of land sales in and around San Leandro. Based on the recent real estate transaction data, staff estimates that the current value of land in San Leandro is between $20.00 to $25.00 per square foot. Attachment 3 is a summary of City Park Improvement Projects. Based on these recent projects, the current cost for park development is approximately $143,700. Using the lower range of value of $20.00 per square foot, or $871,200 per acre, and estimated park development costs of $143,700 per acre, the total value of park land is estimated as $1,014,900 per acre. As was contemplated in the year 2000, implementation of the updated Park Impact Fee, the per capita cost of improvement is translated to a per-unit fee by multiplying by the housing unit occupancy factor. The most current data on housing unit occupancy is provided by the California Department of Finance (DOF). DOF Report E-5 (1/1/OS) estimates a City of San Leandro household population of 80,615 in 31,842 housing units. The housing units can be further divided between 21,443 single units and 10,399 multiple units. The fee is also adjusted to reflect different occupancy factors for single-family and multi-family housing units. Updating from 1990 to 2000 Census data for owner-occupied and renter-occupied units average household size as proxies for single-family and multi-family occupancy respectively, asingle-family occupancy to multi-family occupancy ratio can be estimated. Using this ratio and the DOF 2000 housing units and population data it is estimated that there are 2.64 persons per single-family unit and 2.31 persons per multi-family unit in 2000. To provide for the increased development of secondary units and more accurately account for their occupancy rate, a special occupancy rate is to be provided that assumes half the occupancy rate of amulti-family unit fora 1.15 person per special-unit occupancy rate. In the previous analysis the occupancy factors were adjusted to 2020 occupancy factors based on Association of Bay Area Government (ABAG) Projection '98 estimates, assuming an approximately 3.3 percent decline in average household size. Use of this development projection from the ABAG Projection is unsatisfactory for the City of San Leandro. As an example the DOF persons per household count has increased from 2.523 to 2.589; a 2.6% increase from 2000 to 2005. Additionally, it is unreasonable to believe that this fee would be realistic for a twenty year period given the rapidly changing value of land. Therefore, the fee will be based on the current year and adjustments will be made annually if necessary to reflect inflation, and on a periodic basis such as this to address large structural changes. The Park Facilities Development Impact Fee Calculations using the current Park Facilities value and occupancy rates are shown in Table 1 with the detail calculation in Attachment 4: