OXNARD : Court Upholds Fee, to Builders’ Chagrin
Builders are disappointed that the state Supreme Court let stand a lower court ruling upholding a fee Oxnard charges developers to pay for public facilities.
The justices decided Thursday not to hear an appeal by the Building Industry Assn. of Southern California, a nonprofit trade group that has been fighting the city over the fee since 1981.
Oxnard has earmarked about $10 million in such fees over 20 years to pay off bonds to finance a new library, as well as other projects. The builders contended that there was no connection between their new developments and the library, and the fee was simply an unconstitutional tax.
However, the city has argued--and the appeal court agreed--that the fee is proper because new development creates growth and a need for such facilities.
“That’s wrong,” said Paul Tryon, executive officer with the building association. “We shouldn’t have to shoulder the load. It’s not an equitable tax, and it’s inappropriately applied.” He said new development didn’t create a need for a new library because the old library was already inadequate.
Tryon said he couldn’t comment on whether the association intended to pursue its fight against the fee. He said he was pleased that the high court will not publish the decision, which means it can’t be used as a precedent by other courts. Instead, it will apply only to Oxnard.
Oxnard first imposed the fee on developers for government construction in 1982. The building association successfully challenged it, and the city drafted another one in 1984. That one was upheld by Ventura County Superior Court Judge William Peck, and his ruling was subsequently upheld by the 2nd District Court of Appeal on March 23.
The fee is 73 cents per square foot for new residential development, and 38 cents per square foot for commercial or industrial developments.
For a 2,000-square-foot house, the fee amounts to $1,460. “It hits us hard on the commercial and industrial,” Tryon said. “Oxnard has the highest developer fees of anywhere in Ventura County.”
“It represents millions to the city,” said City Atty. Gary Gillig. “We can’t fund a new library without the fee.”
