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Hayward council advances study of a public-art development impact fee; staff to seek funds for nexus study
Summary
Councilors expressed support June 17 for moving forward on a public-art development impact fee but asked staff to return with a formal nexus study and an art master plan; staff expects to request roughly $100,000 in August to pay consultants and temporary help.
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Hayward City staff presented initial findings on June 17 about creating a public-art development impact fee intended to expand the city's art-and-mural program, increase maintenance funding and stimulate economic activity.
Zach Ibadi, community partnership manager, told the council that staff reviewed Bay Area programs and found 17 of 32 cities studied have public-art fees. Staff modeled a 1% fee on construction valuation and estimated it would have produced about $314,000 for fiscal 2023–24 if applied to projects that year. Ibadi said the fee would require a nexus study under the Mitigation Fee Act and recommended also creating a public-art master plan to set standards and selection processes.
Council members broadly supported moving forward. Members asked that the master plan include clear, competitive selection processes and strong community involvement, and they urged early outreach to the development community so builders know expectations in advance. Council members also asked staff to explore interim uses of existing program funds — such as murals on utility boxes and crosswalk art — while the nexus study is completed.
Staff proposed a next step: return after council recess with a consent item asking for about $100,000 to pay for the nexus study and temporary staff that would assist development of a public-art master plan. Ibadi estimated the nexus study would take six to nine months. He said the fee design could include an in-lieu option allowing developers to provide on-site art instead of paying a fee.
Council members emphasized balancing costs and benefits, and several said they favored a small, early investment in a study to create a sustainable funding mechanism that could eventually fund a full-time manager for the art fund without tapping the general fund.
Ending: Staff will return in August with a funding request for the nexus study and work with community stakeholders and the development community on a public-art master plan.

