Updated A.B. 1600 DIF Justification Nexus Study (September 15, 2023)

Development Impact Fees (DIFs) are a one-time charge on new development that is collected and used by the City to cover the cost of capital facilities, vehicles, and equipment that are required to serve new growth. In July 2021, the City adopted the updated July 1, 2019 Comprehensive General Plan (General Plan or 2040 General Plan) that forms the basis of the City’s current development impact fee program.

As stated in the land use chapter of the General Plan, the City’s future is tied to the type and amount of new development it can accommodate at General Plan Buildout. Projecting future Buildout capacity requires consideration of several variables and is based on assumed densities (dwelling units per acre) and intensity factors that include allowed lot coverage and floor-to-area ratios (FAR), parking requirements, etc. While some of today’s developed lands may change in use in the coming years, most of the assumed City buildout is on remaining vacant lands planned for residential and employment-generating uses.

The goal of the City is to develop a fee program that achieves the objectives laid out in the General Plan and associated master plans, balances fee levels with desired economic growth, and complies with the legal requirements of the Mitigation Fee Act (AB1600/Government Code Section 66000 et seq.) and Assembly Bill 602 (AB602). As development occurs in the City, new backbone infrastructure and capital facilities are required to mitigate the increased demand created by new residents and workers. Revenues from DIFs fund the construction of new backbone infrastructure and capital facilities as well as the related administrative costs through the City’s fee program. The proposed fee program contains separate fee categories for each type of infrastructure and capital facilities.

Incorporated in this Nexus Study are the following fees:

  • Park Facilities
  • Transportation
  • General Government Facilities
  • Fire Facilities
  • Police Facilities

This Report and posting is designed to satisfy the AB1600 Nexus requirements, AB602 requirements, and provide the necessary technical analysis to support the adoption of the updated fees. The fees will be effective 60 days after the City’s final action establishing and authorizing the collection of the fees. Staff will present this finalized Nexus Study to City Council on September 27, 2023.

2023.09.15 Final Cathedral City Nexus Study

For any questions, please contact Stone James, DPPD at sjames@cathedralcity.gov.

Dr. Stone James

View posts by Dr. Stone James
Economic Development Director City of Cathedral City 68700 Av. Lalo Guerrero, Cathedral City, CA 92234 Direct: 760-770-0336 | Mobile 760-219-7227 Office Fax: 760-321-4509 www.cathedralCity.gov sjames@cathedralcity.gov
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