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Council extends downtown high‑density incentive program through 2031 to allow fee study
Summary
Council voted unanimously to extend the downtown high‑density residential incentive program five years (through Aug. 31, 2031) while staff completes a nexus/impact‑fee study and broader community engagement. Staff said the extension will allow pending downtown projects to continue to use current incentives.
The Santa Rosa City Council unanimously approved a five‑year extension of the downtown high‑density multifamily residential incentive program to allow time for a comprehensive impact‑fee (nexus) study and further community and developer outreach.
Jessica Jones (Deputy Director of Planning) presented the item and described how the program reduces or defers capital facility fees and park fees, and allows deferred payment options for water and wastewater fees (either after 75% occupancy or on a five‑year installment plan subject to interest). She cited an illustrative 7‑story, 266‑unit project that would avoid CFF and park fees on upper floors under the current program rules and noted inclusionary requirements for on‑site affordability.
Gabe Osborne, director of planning and economic development, explained the nexus study process: it identifies the public projects the fees are intended to fund and the proportionate share new development should pay. "It's really a very lengthy review... typically supported by consultant assistance to handle the technical documents," Osborne said, adding the study can be funded with existing fee program funds and does not necessarily require general fund dollars.
Councilmembers asked whether the incentive package had demonstrably produced downtown projects. Osborne said the combination of streamlined review, predictable process and fee incentives helped attract developer interest and move projects forward, but cautioned it is difficult to isolate one single fee as the catalyst for development.
Councilmember Banuelos moved to adopt three resolutions to extend the program through Aug. 31, 2031; the motion was seconded and carried 5‑0 with two absences recorded (McDonald and Fleming). Pending projects that had already expressed interest can continue to use the current incentive package while staff prepares the impact‑fee study and a more comprehensive incentive package for later council review.
