A new proposal to Increase Construction Rates will be reviewed by San Diego City Council.
According to San Diego 6, fees for the construction of San Diego real estate is being raised in a controversial proposal by the city. The San Diego City Council is dated to be scrutinized November 4th. These funds will be used for affordable housing.
This new cost, entitled the linkage fee, was initially created in 1990 as a method for commercial building developers to balance the effect of their new facilities to bring more low-wage employees in San Diego real estate according to San Diego 6.
When the linkage fee was administered in 1990, commercial building developers were charged 1.5 percent more than before, but the rates were then cut in half in 1996. The proposal in question is to reestablish the original layout, according to the article.
The result of these increases in charges would impact between 377-744 percent all effecting developers of industrial, manufacturing, warehouse or storage facilities according to a report by San Diego’s Independent Budget Analyst.
The report also included charges rising in office development at 402 percent, research and development project to 418 percent, hotel construction to 639 percent and retail building to 675 percent.
Others feel that this proposal would provide new employment. “That’s the exact wrong thing that the city of San Diego should be doing,” said San Diego Councilman Kevin Faulconer to San Diego 6. Faulconer is running for mayor as well. “We should be doing everything we can to ‘incentivize,’ business and cut red tape.”
Although others have pushed heavily for the proposal like San Diego Interim Mayor Todd Gloria and Councilman David Alvarez, who is also running for mayor. Although, Alvarez is in support, he has no problem in finding other possibilities.
“We’ve got to do things like what I’ve been pushing for, along with other leaders, which is look at all of our assets in the city of San Diego” Alvarez said to San Diego 6.
“We’ve got vacant land, we’ve got buildings that are abandoned. How can we utilize those assets., lease them for a low rate to those who are committed to keeping affordable housing in the city of San Diego, reduce regulations – those are all ways to get to the problem of affordable housing. It’s not just one solution.”
As a real estate agent in San Diego I feel it is imperative that you have the opportunity to voice your opinion and I encourage you to share your feelings on this proposal in the comments section.