San Rafael staff recommend adopting maximum allowable park impact fee; developers warn of cumulative burden

City staff and a consultant told the Finance Subcommittee on April 14 that the city’s park impact‑fee nexus study and a regional market comparison support moving forward with the maximum legally allowable park impact fee.

"Our recommendation is to implement the maximum allowable fee for the park impact fee, which would be effective 60 days after adoption," said Catherine Kufa, director of Library and Recreation. The consultant presented comparisons across Marin County and the broader Bay Area and said that at maximum levels San Rafael would be near the regional average for non‑subdivision projects and modestly above average for subdivisions (~12% higher).

Council members asked technical questions about when a developer’s pre‑application or SB 330 protections lock in fees and whether staff has discretion on payment timing. Staff said most payments are collected at building final/occupancy but acknowledged there is programmatic discretion and that, in some cases, staff negotiates payment terms or conditions of approval for specific projects.

In public comment, local developer Steve Monahan used a hypothetical 100‑unit example to illustrate the aggregate burden: "$18 a square foot times... average 850 square foot unit... $1,500,000 park fee," he said, and cautioned that when combined with other fees the total can make projects financially marginal.

Staff said the park fee is one component of a broader impact‑fee package (including possible future traffic, public safety and affordable housing fees) and recommended advancing the park fee to the full council so the city can maintain current park and recreation service levels without relying on the general fund. Staff will present the proposal to the council as part of the budget/master fee schedule process.