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Developers pivot to fee‑in‑lieu for affordable housing; on‑site affordable units not proposed
Summary
The applicant told the commission it will pay the city's fee in lieu rather than deliver on‑site covenant restricted affordable units, citing financing and incentive shortfalls. Staff said the fee is calculated at roughly $4.72–$4.73 per square foot and that council makes the final determination.
During the public hearing, applicant representatives said they had originally considered on‑site affordable units but pivoted to pursuing the inclusionary housing fee in lieu. Hunter Floyd (on the phone) said incentives and financing constraints, including the availability of tax credits and other grants, made on‑site affordable units infeasible for this private‑market developer.
Staff explained the mechanics: under current policy the fee is calculated per square foot (Matt Post said the fee was $4.72 per square foot when presented, and noted a city action that raised it to $4.73 after a council first reading). Commissioners and the applicant agreed the final decision on accepting fee in lieu or requiring on‑site units rests with City Council. Commissioner questions sought clarity on the equivalent number of units: staff and applicants noted that 12% of 135 would equal 12 on‑site inclusionary units if council required on‑site compliance.
