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Norco consultant proposes updated development impact fees; average single‑family jump about 41%
Summary
A Willdan Financial Services consultant told the Norco City Council a nexus update would allow higher, per‑square‑foot impact fees — raising the typical single‑family fee from about $35,000 to roughly $49,000 for an average 2,200 sq ft home — and could generate roughly $144.6 million in developer‑funded project costs by 2050.
A consultant contracted by Norco City presented a comprehensive update to the city's development impact fee nexus study, outlining a switch to per‑square‑foot residential charges that would raise the maximum justified fee for an average 2,200‑square‑foot single‑family home from about $35,000 to roughly $49,000.
"For your average sized unit, which is about 2,200 roughly square feet, [the maximum justified fee] would be around $49,000," said Carlos Viruel of Willdan Financial Services, who led the study presentation. He explained the study establishes the maximum legally justifiable fees and that the council could adopt lower amounts as a policy choice.
Viruel detailed the study methodology: estimate demand to a 2050 planning horizon, set facility standards (for parks, circulation, water and wastewater, etc.), attribute costs between existing and new development, and calculate fees per unit of demand. He said impact fees must fund capacity‑expanding capital projects — not ongoing maintenance — and cited state requirements for transparency and a 30‑day notice period under recent law changes.
The consultant summarized projected funding: roughly $189.5 million in projects tied to growth through 2050, about $144.6 million of which could reasonably be charged to new development under the nexus approach, leaving about $44.9 million to be funded from other sources. Viruel emphasized the fees shown are the "maximum justified" amounts and that the council could remove projects or phase increases to reduce the immediate burden on developers.
The presentation concluded with a request for council feedback and staff follow‑up to refine assumptions before a near‑final study is released for public hearing and potential adoption.
