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Planning staff recommends payment-in-lieu for large sector-plan projects with strict guardrails

Planning, Housing, and Parks Committee · December 9, 2024
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Summary

Staff recommended payment-in-lieu options for certain public-benefit categories where projects span multiple properties or where a sector plan/CIP contemplates large facilities; they proposed guardrails requiring sector-plan identification, an existing CIP to spend funds, and public-agency recipients.

Planning staff told the committee that payment-in-lieu should be available "where the sector plan contemplates the creation of larger scale facilities or amenities" or where a capital improvements project within a sector plan can use the payments. The staff presentation emphasized that payments should not simply sit in a bank account and proposed guardrails: the sector plan must identify the facility, a CIP must exist to utilize funds, and recipients should be public agencies or designated public trusts.

Staff offered examples, including large urban parks and transit station upgrades, where a single project cannot reasonably bear the full capital cost. The planning staff also noted that the practice exists in other jurisdictions and said the code language could permit payment-in-lieu for specific categories within sector plans. Committee members asked staff to compile a list of sector plans and partner CIP owners that could accept such payments.