Prescott committee expands draft workforce-housing incentives, asks staff to add fee-in-lieu and payment options

At a recent Prescott City Workforce Housing Committee meeting, members debated changes to a draft workforce-housing policy that would expand how developers can qualify for density bonuses, allow the city to pay all or part of impact fees, and add enforcement tools tying incentives to delivery of workforce units.

The committee focused on ways to create buildable density that still addresses neighborhood concerns about open space and compatibility. Randy, a committee member who identified himself as a builder, said, “I don't see how we're going to accomplish density to attract a builder … and yet have the open space that I heard about last time.” He proposed allowing developers to “contribute to an open space program somewhere else in the city” as a way to retain density at a specific site while preserving parkland elsewhere.

Chelsea, a Community Development staff member, told the committee she could add “fee in lieu of” language to the list of considerations for council. “I think what I'm hearing you say, Randy, is that you're essentially asking for a fee in lieu of providing certain areas,” she said, and added that whether a fee would be used would depend on the specifics of each project and negotiation with counsel.

Why it matters: Committee members said the policy must both make workforce housing financially feasible for builders and preserve local standards—particularly in historic neighborhoods. The committee framed its work as recommendations to city council that should provide clearer, reusable guidance to developers while leaving certain discretionary decisions to elected officials.

Key changes and staff direction

- Broaden density-bon…