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Murrieta adopts tiered hotel development impact fee tied to AAA diamond ratings
Summary
Council approved a resolution to reestablish a tiered development impact fee for hotels, tying DIF rates to AAA diamond ratings with lower fees for higher-rated hotels; staff said most current proposals would fall into the 3-diamond category and that reductions are expected to be recouped by hotels through increased transient occupancy and sales tax revenue.
The Murrieta City Council unanimously adopted a resolution July 15 to reestablish a tiered development impact fee (DIF) program for commercial lodging, tying rates to the AAA Auto Club's diamond ratings rather than a list of amenities.
At the staff presentation, the city explained the approach: base the hotel DIF on the city's existing commercial DIF ($13.27 per square foot) and apply percentage reductions by AAA category. Under the proposal, budget entry-level hotels (approved/budget) would pay 75% of the current DIF…
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