Building Industry Association
of San Diego

The Finance Team Sandstrom, Davidson & Winckel

Last evening, well over 400 members and guests came out to celebrate the industry and its new Board leadership at the La Jolla Marriott.  The well-attended and sold out event was made possible through underwriting provided by at least eight financial institutions.  The membership was treated to a delightful skit produced and directed by Dawn Davidson of Design Line Interiors.

In addition, twelve prominent builders and developers made a brief appearance on stage and provided an up beat market assessment for 2011.  Many members commented afterwards that the event was one of BIA’s best in years.  A big thank you to staff and our volunteers for making this a most memorable evening.  Watch for more reviews in the upcoming days.

Councilman Todd Gloria Seeks Development Fee Increase

The City of San Diego Land Use and Housing Committee released its findings on a nexus study that will be used to determine the fee charged to non-residential development to help pay for affordable housing.  The Jobs Housing Nexus Study, prepared by Keyser Marston, alleges that retail development could be charged a fee up to $115.55 per square foot for housing and put office development impacts at $78.08 per square foot. There are several other categories with fees ranging from $81.00 to $13.00 per square foot.

Keyser Marston was quick to point out that the city should charge nowhere near those fees and recommended fees ranging from $2.00 – $4.00 per square foot.  They also recommended that the fees not be increased until the economy improves and suggested that the council consider a trigger mechanism.

The Committee also released a report on Best Management Practices for managing affordable housing that compares San Diego to other cities in the hopes of improving the process.  Despite earlier assurances that both the fee and BMPs would be reviewed concurrently, Committee Chair, Todd Gloria said he did not want the fee increase proposal to ‘be held hostage’  to a review of best management practices and will pursue the fee increase ahead of the BMP analysis.

The BIA and a host of business groups strongly oppose any increase in the fees and have challenged the council for even considering what is being called a  ‘Jobs Tax’ in the midst of the worst recession in generations.

The report moves to a stakeholders committee for review and comment before returning to the full council for consideration.

Read the 4 page Land Use and Housing Report.