CARLSBAD — Although City Council voted April 8 to increase traffic impact fees on new city developments, two weeks later, members appeared to have a change of heart.
Facing stiff opposition from developers April 22, City Council agreed to a last-minute change to reduce the proposed 207 percent increase on fees for new developments to a 109 percent increase.
Scott Molloy from the San Diego Builders Industry Association said that with the slow economy, the larger increase may have led builders to take their projects elsewhere, noting that the housing recessions is one of the worst in recent history.
“The timing is certainty not the best,” Molloy said.
Voters approved a half-cent sales tax extension in 2004, and in order to receive that money from Transnet, Carlsbad must raise its traffic impact fees by July 1.
Carlsbad currently has one of the lowest traffic impact fees in the county, at $1,150 per new house. The new fees will be $2,000 per house.
The fees, first enforced in 1991, are designed to offset the increase in traffic the new developments would bring, by making improvements such as widening roads and adding intersections.
City planners said they expect approximately 4,600 new units to be built over the next several years, and that the fees will be used to deal with the increase by making necessary improvements.
With several projects currently in the works, such as Bressi Ranch, city officials are still working on the details of the increase, including which projects will be allowed to finish building under the current fee.
Jeff Williams of LNR Properties, builders of Bressi Ranch, said the new fee would add $800,000 to the company’s project.
City Council plans to revisit the issue again at the next regular council meeting May 6.

