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Rocklin council declines to set temporary in‑lieu fee after heated hearing
Summary
After hours of staff presentation, developer testimony and council debate, a motion to adopt a temporary $3 per square foot in‑lieu fee for the city’s inclusionary housing ordinance failed 2–3, leaving no interim fee in place while a consultant completes a full feasibility study.
The Rocklin City Council heard more than two hours of testimony and staff briefings Wednesday before rejecting a proposal to set a temporary in‑lieu fee for its recently adopted inclusionary housing ordinance.
Assistant to the city manager Elizabeth Sorg told the council the ordinance (chapter 17.95) requires large residential developments to include a share of affordable units or choose one of several alternatives, including paying an in‑lieu fee. Staff’s interim recommendation used preliminary work from consultant Kaiser Marston Associates and set a temporary fee at $10 per square foot while the firm completes a full feasibility study and returns to the city in the spring.
Developers and industry representatives urged a much lower interim number. Jeff Short of the North State Building Industry Association said $10 would be “not feasible” in the region and pointed to commonly adopted figures of roughly $2.50 to $3.50 per square foot. Martin Novinski, land and title manager for Toll Brothers, told the council a $10/SF fee could add “$36,000 to $48,000 a unit” for his firm’s near‑entitled project, and urged the council to wait for the consultant’s final recommendations.
Councilmembers split on how to balance policy certainty and developer feasibility. Some members argued that adopting an interim fee would prevent projects from being trapped in limbo while the study is finished; others said setting any number before the full KMA report risked legal, financial and political problems and preferred to wait.
A motion to adopt a temporary $3/SF fee was moved and seconded. The council’s roll call vote recorded Council member Janda — No; Vice Mayor Holden — Yes; Mayor Bass — No; Council member Gallardo — Yes; Council member Broadway — No. With two votes in favor and three opposed, the motion failed and the resolution setting a fee did not pass.
City Attorney Matthew McConvert read the ordinance’s exemptions aloud and confirmed that projects deemed complete by staff or vested under state rules such as Senate Bill 330 generally remain unaffected by subsequent ordinance changes. Staff also noted that fees are typically calculated at time of building permit issuance and that SB 330 preliminary applications can lock fees and standards in place.
The council closed the public hearing without adopting a fee. Staff said Kaiser Marston will present a full, data‑driven feasibility analysis to the planning commission in February and hopes to return to council in March with recommendations.
