[bouldercouncilhotline] Hotline: Commercial linkage fees for affordable housing

[cmosupport at bouldercolorado.gov]

Sender: Weaver, Sam

Fellow Council Members and HOTLINE followers,

As you all are aware, we are considering commercial linkage fees tonight, and I feel like we may miss an important opportunity to establish new affordable housing linkage fees for commercial development.  I am hopeful that we will reflect on the national situation after the November election as well as the magnitude of the moves that peer cities are taking on similar subjects as we finalize our ordinances on the linkage fees.  While we had a local alliance between the Chamber and affordable housing providers make a suggestion for a linkage fee amount that was lower than what staff provided, I did not see any analysis for that lower figure, simply a counter-offer that is supportive of commercial development, and provides less funding to affordable housing.

If the Boulder affordable housing situation is the community's #1 priority, we need to do more for funding our local programs, particularly as the damage that the presidential administration and the current House and Senate will do to Federal housing programs and funding becomes clear.  I support the staff recommendation of $15/sq-ft for the development of commercial Class A office space to be provided for affordable housing programs.

However, if that is not a place we can arrive with a majority of Council, I would encourage us to look at a tiered fee.  One of the concerns I hear about linkage fees, is that the cost will be passed on as higher rents, and there is also an affordability concern for small businesses.  This concern is not the whole picture (decreased land prices is another expected result of linkage fees), but I do share the concern to the extent that I am interested in re-considering a tiered fee based on building size.  Something along the lines of lower fees (say $10/sq-ft) for (re)development of buildings under 25,000 square feet, and $15/sq-ft for larger buildings.  This will have the effect of mitigating rent impacts for smaller spaces typically occupied by small businesses, while mitigating the affordable housing impacts of larger buildings typically occupied by larger regional and national businesses with more employees.

I hope we can have a productive discussion this evening.  We will have this one chance to make adjustments to our linkage fees that are related to the nexus study that was just completed.  I think we owe it to ourselves and our community to take the time we need to craft the most thoughtful program for our businesses and our residents who are in need of housing support.

All the best,

Sam Weaver
Member of Boulder City Council
weavers at bouldercolorado.gov<mailto:weavers at bouldercolorado.gov>
Phone: 303-416-6130