San Diego
The San Diego City Council on Monday formally rescinded a schedule of controversial fees on development that were approved last month and sent the plan back to a committee for further study.
The move had been expected since Nov. 15, when the council’s Transportation and Land Use Committee retreated from the so-called “citywide impact fees.”
The fees had been expected to generate hundreds of millions of dollars for projects used by residents citywide, such as roads, public transit and parks.
On Oct. 1, the council agreed to a three-year phase-in of the fees, with the charges being discounted 75% the first year, 50% the second year and 25% the third.
The plan, which would have applied to both residential and commercial development, would have levied fees of $1,100 on single-family homes and 95 cents per square foot on industrial development in the first year. The full fees, expected to be imposed by late 1993, would have reached $4,400 and $3.95, respectively.
Council in recent months has been convinced that those fees might seriously damage San Diego’s economy by discouraging business investment.
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