Commission asks staff to recalibrate bonus formulas and pay‑in‑lieu rates

Staff told the commission the draft code currently includes several bonus mechanisms — open‑space, parking, glazing/mezzanine, assembly, adjacent right‑of‑way, and pay‑in‑lieu formulas — and that three different bonus leverage ratios had been used in the draft (examples noted as 1:3, 1:2, and 1:0.2). Mark Elvis said the differences produced inconsistent outcomes and recommended staff recalibrate the bonuses and equalize pay‑in‑lieu rates where appropriate.

“Right now, the best way is if you're gonna pay in lieu, you buy affordable housing because you get 3 feet for every $45,” Elvis told the commission and recommended making pay‑in‑lieu consistent across bonus types. Several commissioners said the parking bonus — which awards additional floors for structured parking in the TODA — should be eliminated, arguing it runs counter to transit-supportive goals. Others urged preserving or tailoring an open‑space bonus but said the 20% open‑space level in the draft was unlikely to be used.

Why it matters: Bonus structures determine the practical economics of redevelopment and affect whether developers will pursue height and density options or instead rely on pay‑in‑lieu. Commissioners asked staff to validate assumptions with the city appraiser and return with comparative examples from similar jurisdictions.

What’s next: Staff will return with recalibrated bonus language and cost/market analysis prior to the next hearing. Commissioners also indicated they want the commission to review bonuses as part of a public (commission) process rather than leaving them entirely to administrative approval.