Council Delays Developer Fees Until Construction Is Underway

Commercial developers in eastern Ventura received a break this week from the City Council, which voted to delay charging builders for infrastructure improvements until they actually start construction.

And after hearing testimony from landowners and developers, the council voted to take another look at such fees--for property near where Saticoy Avenue and Wells Road meet Telegraph Road--before charging more than $20 million in future fees.

Until now, city staff has required developers to pay infrastructure fees when they filed maps with the city. Commercial developers argued that this was unfair because the development might never take place.

Developers generally pay for road and sewer improvements on the land they own. But in the 1970s Ventura came up with a complicated formula to charge developers for infrastructure improvements they might eventually use beyond that which is on their property. These fees may also include money to pay for improvements to parks and air quality.

City planners don’t think residential developments place as much strain on a community’s roads and sewers as commercial ones. To date, most building in the east county has been residential, so developers have accepted the relatively lower fees.

But such infrastructure fees can be high for commercial developers, who argue that it raises land costs and eventually rents.

The city, which has already pledged $5.5 million for the needed improvements, expects to charge developers a total of $20.5 million. Individual developers will pay $32,000 to $1.9 million, depending on the size of their property.

“Why should I have to drive to midtown to go to a fast-food restaurant?” asked Councilman Jim Friedman, who supported delaying the fees. “I don’t think the city should be in the business of battling developers.”

Councilman Gary Tuttle, who voted against the changes, said after the meeting: “There’s a love fest going on between the developers and the City Council over the last year that hasn’t been seen since the mid-1980s in this city.”