Traffic-impact fees locked in on 35,000 lots
| Friday, Sep 05 2008 09:24 PM
Last Updated Friday, Mar 27 2009 02:34 PM
As homebuilders and Bakersfield city officials have hashed out details of traffic-impact fee hikes in recent months, an interesting number has surfaced on the sidelines.
About 50,000 residential lots currently have “vesting” rights in Kern, according to Raul Rojas, Bakersfield’s public works director, with roughly 35,000 of those in city limits.
That means basic building rights and — for lots on city turf — existing fee rates are locked in place for up to a decade or so.
That’s a lot of potential homes on tap at the city’s current rate, which starts at about $7,000 per house. Changes scheduled for a Bakersfield City Council vote next week would eventually hike that to $13,595 per home.
For builders, the vested lots are something of a relief. (In the county, development fees aren’t vested.)
Custom homebuilder Phil Gaskill said the vested fees will make it easier to carry on now that some short-term projects have turned into long-term endeavors.
“Usually we build houses,” Gaskill said from his cell phone Friday. “Right now, we’re fertilizing.”
Gaskill, whose homes start at about a half-million dollars, said his company has started doing its own maintenance work at model sites and tracts.
Sales are starting to pick up, he said, adding it’s important “to keep your storefront shiny” for when the market turns around.
The grandfathered fees will help drive sales as buyers return, Gaskill said.
Such fees are typically passed on to buyers, though builders must pay them up-front.
Homebuilder Matt Towery said it’s always a head-scratcher as to why fees get raised in tough markets.
The vested fees will likely have a secondary impact, he noted: reducing the appeal of raw land.
“I’m currently looking for more land,” said Towery, who builds small, customized homes with prices starting at $234,000.
Towery said he would “certainly” be buying lots with vested fees in place.
Gaskill said few builders are coming out with brand-new plans since there is so much inventory with administrative legwork finished and current fees intact.
“It’s going to take a while to work all of those (lots) off,” he said.
