Ordinance 2018-521 - Laserfiche WebLink

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2007 2007-292 $72,000 I $33.05 I 44% 2009 NA 2011 NA 2013 NA CITY DID NOT'INCREASE BONUS VALUE . 2015 2015-470 $100,000 $45.91 42% 2018 PROPOSED $200,000 $91.82 . 100% As indicated above, a price increment did not occur during several years due to the latest economic recession, which had a negative impact on the bonus participation value. Since these bonuses are directly link with the increase in land value together with the costs of CIPs over the,next five fiscal year,the raise of CIP costs is intrinsically related to the need to increased values. • As an example,we can take the Education and Cultural infrastructure bonus,a developer can increase up to 0.20 of Floor Area Ratio(FAR) if he/she participates in this FAR bonus with the assumption of owning an acre of land.The potential increase of development rights is 8,712 square feet of FAR which will require a payment of$400,000 for this bonus on the acre of land. Meaning, each additional square foot from the Education and Cultural infrastructure bonus will cost $45.91. As shown in the table above, the proposed increase will yield to an increase of$45.91 per square feet of FAR bonus and a required total payment increase of$800,000 for the 8,712 square feet of FAR. Based on the analysis provided in this memorandum, an increase in the price of the participating unit under the bonus program is warranted. The value of the bonus participation unit is still far less than the current market value on a per square foot basis of the market costs for condominium unit on a per square foot basis. According to the Real Estate sales in the City(2017-2018),the cost per square foot in condo market varies from$700 to$2,200 per square feet.As such,I believe we should recommend an increase in the price of the participating unit based on the costs analysis that City has followed since the creation of the bonus system. ATTACHMENTS: Description Ordinance (Revised 4/19/18) Item Number: 9.A.