Mission Valley Land Group Freed From Developer Fees

Major landowners in Mission Valley, saying they have already committed to pay millions for public improvements, received a break Tuesday when the San Diego City Council voted to excuse them from paying proposed developer fees intended to finance such public amenities as schools and parks.

Council members voted to exempt the so-called North Side development, 241 acres immediately west of San Diego Jack Murphy Stadium, and four other landowners in the First San Diego River Improvement Project from the proposed fees. Landowners in that group are Sammis Properties, CalMat Properties, Crow-Hazard properties and C. Dennis Marteeny.

Mayor Maureen O’Connor’s was the only vote against the exemption.

Councilman Ed Struiksma, whose district includes Mission Valley, asked his colleagues for the exemption because the landowners have already signed agreements with the city to channelize the San Diego River, put in roads and help with mass transit construction.

After the agreements were signed, the council decided to impose developer fees on all built-up neighborhoods of San Diego, where growth is straining streets, schools and sewers. Developer fees have long been in effect in the suburban communities as a way to finance those services.

The Mission Valley landowners objected to the new fees, saying they had already done their share to finance public improvements. An attorney for the four landowners said the group has agreed to underwrite a $26-million bond issue for river channelization, as well as $16 million in other off-site improvements. If the council imposed additional fees, that would add $30 million--a load that would make some of the proposed commercial projects on the land infeasible, the attorney said.

Responding to those complaints, the council voted Tuesday to exempt the landowners from developer fees for commercial and industrial projects. Council members also voted to exempt commercial and industrial projects in enterprise zones and most redevelopment areas.

Similar projects in the Southeast San Diego redevelopment area will not be given automatic exemption but will be considered on a case-by-case basis.

The exemptions were granted despite the fact that council members won’t determine what fees to impose on other commercial and industrial projects until Sept. 14.

Also Tuesday, council members voted to wait before imposing residential fees in Mission Valley until a public hearing can be held. The city manager’s staff had recommended a fee of $4,430 per unit.