New home construction in Cathedral City just got more expensive. This summer saw two fee studies pass through the ranks of the city administration and City Council. The first study was for land use and regulatory fees. Fees were to increase on a previously approved step of basically a third. Additionally, they were also increased by a Consumers Price Index of 8.7%. Combined this is not insignificant amount.
The city has also submitted a development impact fee study. These mitigation fees for streets, police, fire, and other government facilities have increased 498% over the existing fees. The good news is that these fees will not increase until January 1, 2024.
The Desert Valleys Builders Association has contested several aspects of these proposed fees. In the end we still believe that the existing population owes a share of the administration fee as several studies/plans are driven by existing population needs. Then the city is also charging new construction more than double the cost for parkland facilities. At $750,000 per acre this cost adds up quickly.
Should an applicant builder or new resident filing after Janauary1, 2024, wish to challenge any of these fees the DVBA is readily willing to assist in providing the facts.
By: James Brownyard, VP Legislative & Government Affairs/DVBA