On March 22, 2022, the City Council adopted the Patrick Henry Drive Specific Plan (Specific Plan) to guide the transition of an underutilized 74-acre industrial neighborhood bounded by Mission College to the south, Great America Parkway to the east, the Hetch-Hetchy right-of-way to the north, and Calabazas Creek to the west into a pedestrian-friendly, transit-oriented neighborhood. The Specific Plan contemplates two unique land use scenarios per Table 1 below related to proposed residential units and office uses. The Specific Plan also incorporates approximately 310,000 square feet of neighborhood-oriented convenience retail and up to 14 acres of open space which will include a diverse network of public parks, publicly accessible green infrastructure, and private recreational spaces.

Table 1: Patrick Henry Drive Specific Plan Land Use Plan Scenarios

Included with the Specific Plan and the accompanying Environmental Impact Report are analyses of various infrastructure impacts and requirements to support the proposed development within the Specific Plan. Based on discussions with the prospective developers and property owners of the Specific Plan, the City established a Patrick Henry Drive Specific Plan Infrastructure Impact Fee (Fee) to facilitate development. The purpose of the Fee is to create an equitable distribution of area-wide and common infrastructure costs for all developers within the Specific Plan. Infrastructure that provides common benefits to development within the Specific Plan was analyzed and calculated for probable construction costs.

The City prepared a nexus fee study for applicable infrastructure such as on-site roadway facilities (i.e. traffic signals, traffic safety devices, pavement rehabilitation), sanitary sewer facilities and structures, storm drainage facilities, potable and recycled water facilities, emergency response vehicle and tiller aerial ladder apparatus, entry monuments and signs, and the formation of a Transportation Management Association. The nexus fee study concludes that total infrastructure costs equal $105,884,201 for fiscal year 2021-2022.

As noted above, the Specific Plan includes up to 12,000 multifamily residential units as well as up to 310,000 square feet of supporting, neighborhood-serving commercial services. As the commercial development (e.g., clustered ground-floor retail) is expected to be ancillary to and supportive of the Specific Plan housing, the Fee is structured to apply only to new residential and office development. Additionally, upon further discussion with the Specific Plan developers and properties, in coordination with the Community Development Department, a determination was made to apply the total infrastructure costs to a maximum of 11,000 residential units for the purpose of calculating the Fee. This determination was based on information from the developers, property owners, and the Community Development Department that there is only interest and allowances with the Specific Plan zoning to allow for a maximum of 11,000 residential units at this time. If any additional residential units beyond 11,000 are proposed at a future date, the Fee can be modified at that time.

In summary, the total common infrastructure costs of $105,884,201 are divided by the maximum new multifamily unit count of 11,000, which equates to a Fee of $9,626 per new residential unit for fiscal year 2021-2022. For land use Scenario B, which includes residential units and office uses, the nexus study calculates a fee equivalency from residential units to office uses. The fee equivalency results in a Fee of $21.00 per square foot of new office uses for fiscal year 2021-2022. In addition, the Infrastructure Impact fee will be adjusted annually to account for inflation.

On March 22, 2022, the City Council adopted the ordinance (Ordinance No. 2046) and resolution, which included the nexus fee study. Below is a link to the City Council Agenda for this item and the Ordinance. 

For any questions or comments, please email Michael Liw, Assistant Director/City Engineer, Department of Public Works at mliw@santaclaraca.gov or call at 408-615-3002.

March 22, 2022 Public Hearing regarding the Patrick Henry Drive Specific Plan Infrastructure Impact Fee

Ordinance No. 2046