Network hospitality Denver’s development fee was informed by best practice research, a number one industry consultant, and several weeks of diverse local stakeholder input.
We used an RFP tactic to hire a across the country-respected consultant, David Rosen & Associates, employing their tested methodology that pulls the "nexus" from development to jobs to housing need.
We considered the perspectives of residential and commercial technical advisory groups of well-respected developers to assist inform the nexus study.
The research identified “legally justified maximum fees” varying from $28.51 to $119.29 per sq . ft . for commercial development and $9.60 to $23.66 per sq . ft . on residential development.
We further decreased the charge ceiling with a practicality study that is built to show at what threshold a charge would tip a task right into a financially infeasible position with different Return on Equity analysis.
We decreased the ceiling much more based on additional input and analysis, including comparison to development charges for reasonable housing in peer metropolitan areas:
North Park
$.80 to $2.12 per sq . ft .
Sacramento*
$.50 to $2.58 per sq . ft .
Boston
$8.34 per sq . ft .
Boulder
$.09 to $9.53 per sq . ft .
San antonio
$5.00 to 17.50 per sq . ft .
Bay Area
$16.01 to $24.03 per sq . ft .
* Sacramento may be the only city above which includes new residential development in the fee. The remainder don’t.
Development charges really are a common income for jurisdictions over the Denver metro area, funding public investments for example affordable housing, transportation, parks and public schools:
Meanwhile, Denver’s property tax minute rates are competitive when compared with other metro area jurisdictions.
Resourse: https://denvergov.org/content/denvergov/en/denver-office-of-economic-development/housing-neighborhoods/
