Business Groups Express Concern over Local Development Impact Fees

The Chamber has partnered with business and building industries to caution County leaders on potential increases to Development Impact Fees (DIF) on new development in Riverside County. The Chamber stressed that the increase of fees will endanger the growth achieved so far. The County of Riverside Board of Supervisors reviewed these fees late July and the Chamber will continue to engage in this process.

In particular, the Chamber stressed that the drastic increase in DIF fees in commercial, industrial, and manufacturing sectors in the Highgrove, Northside, and University City area as well as the Woodcrest and Lake Matthews area would be detrimental to future development in those areas.

While local businesses and development have demonstrated some signs of improvement in recent years, they are still heavily impacted by factors such as fees, labor costs, and other unfavorable influences. Although the proposed increase in DIF fees would be below those collected by other surrounding counties, they do not take into account the imposition of Transportation Uniform Mitigation Fees (TUMF) which are unique to Riverside County and its incorporated communities. Imposing an increase in DIF fees would unnecessarily jeopardize the encouraging growth the region has seen to date.

The Chamber also encouraged the Board to consider an extended phase-in process to allow local businesses greater time and opportunity to adjust to these changes. While the revenue generated from these fees will assist the County in performing other critical functions in public safety and others areas, the significant and arbitrary increase of DIF fees in commercial, industrial, and manufacturing sectors seems to negatively impact sectors that need the most encouragement.

Moreover, the Chamber has been working closely with the County of Riverside and other partners to incentivize other new growth and initiatives through supporting grant applications, connecting the region to other economic partners the iHub designation and bringing economic development incentives to the region through the California Economic Development Initiative.

The Chamber will continue to work with the County of Riverside and other public partners to incentivize local development and economic growth rather than impose potentially detrimental fee increases. For more information, contact Nicholas Adcock at 951-683-7100 ext. 217.