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City of San ,. idro Park Impact Fee Study <br />additional park and recreation facilities to maintain acceptable facilities standards and <br />accommodate new residential development. <br />Relationship Between the Amount of Park and Recreation <br />Facilities Fee Payment and the Cost of Park and Recreation Facilities <br />The fees calculated in this report are based on the estimated cost of expanding current park and <br />recreation facilities to serve the projected increase in new residents. By using average occupant <br />densities (persons per dwelling unit), the total cost of facilities required to serve new <br />development is equitably allocated to each new housing unit through the fee. <br />The fee per housing unit is no more than what will be needed to maintain existing levels of <br />service. New development is not required to provide facilities at a level above that which is <br />provided to existing development. The City's existing park and recreation facilities (including <br />parks, golf course land, and other specialty recreational facilities) were inventoried. <br />Replacement values were assigned to the facilities. The estimated total value of the facilities <br />divided by the existing service population was used to determine a per capita level of service. <br />The impact fee per housing unit is based on this per capita level of service. <br />DEVELOPMENT PROJECTIONS <br />Use of development projections from the Association of Bay Area Govenunent's (ABAG) <br />Projections '98 is unsatisfactory in the particular instance of the City of San Leandro. For <br />example, Projections '98 estimates that San Leandro will have 75,500 residents in 2020. But <br />according to the California Department of Finance's current estimates, the City already has about <br />75,400 residents. According to the City of San Leandro Planning Department and its General <br />Plan consultant, the City expects growth of about 100 housing units per year for the next 20 <br />years.3 This corresponds with a substantially higher rate of growth than ABAG's projections. <br />Reasons cited for this discrepancy include a greater rate of build-out than anticipated for certain <br />residential projects (e.g., the Roberts Landing development) and the conversion of industrial and <br />commercial parcels to residential development projects.4 City staff believe that the somewhat <br />unexpected upsurge of the residential market in the inner Bay Area, which is related to the <br />continuing strength of the economy and the scarcity of housing, is likely to continue (see Table <br />1). <br />3 July 1999 conversation with Barry Miller, consultant to the City of San Leandro on its General Plan <br />Update. <br />Ibid. <br />Hausrath Economics Group 4