Larkspur Municipal Code Ch. 3.34 Commercial Linkage Fees

Sections: 3.34.010 Purpose. 3.34.020 Definitions. 3.34.030 Fees To Be Set By Resolution. 3.34.040 Payment of Fees. 3.34.050 Exemptions.

3.34.060 Disposition and Use of Fees. 3.34.070 Enforcement.

The City Council finds and determines that to provide sufficient affordable housing to achieve the City’s goal of providing a full range of affordable housing options to residents of the City, in accordance with the standards established in the General Plan Housing Element and other applicable plans and regulations, development projects identified in Larkspur Municipal Code Section 3.34.040 shall pay a commercial linkage fee to assist with the production of new affordable housing in the City to meet the needs of worker households employed by uses created by development projects subject to the fee. Consistent with the City Council’s findings and determinations, the purposes of this chapter include the following:

A. Encourage the development and availability of housing affordable to a broad range of households with varying income levels within the City as mandated by state law, California Government Code Section 65580 and following.

B. Offset the demand for affordable housing that is created by new development and mitigate environmental and other impacts that accompany new commercial development by protecting the economic diversity of the City’s housing stock; reducing traffic, transit and related air quality impacts by allowing more residents to live near their workplace; promoting jobs/housing balance; and reducing the demands placed on transportation infrastructure in the region.

C. Promote the City’s policy to provide an adequate number of affordable housing units to the City’s housing stock in proportion to the existing or projected need in the community, as identified by the housing element.

D. Support the housing element goal of assisting in the development of new housing that is affordable at all income levels and the policies and actions that support this goal.

E. Encourage the production of the very low-, low-, and moderate-income units planned for in the housing element of the General Plan. (Ord. 1094 § 11, 2026; Ord. 1065 § 5 (Exh. A), 2023. Formerly 3.32.010)

For the purposes of this chapter, the following words and phrases shall have the meaning set forth below:

“Affordable housing agreement” means a written agreement between a builder and the City as provided by Larkspur Municipal Code Section 18.25.040(G).

“Below market rate (BMR)” means that the affordability level of an inclusionary unit is below the cost of what a current market rate unit would be and is affordable to extremely low-, very low-, low-, or moderate-income households.

“Commercial development project” shall mean development projects which result in the subdivision of land and/or the construction or conversion of structures for the purpose of conducting business, including but not limited to hotels, retail sales, restaurants, offices, gas stations, research and development uses and manufacturing.

“Commercial linkage fee” means the fee paid by applicant of commercial development projects to mitigate the impacts that such developments have on the demand for affordable housing in the City.

“First approval” means the first discretionary approval to occur with respect to a commercial development project or, for commercial projects not requiring a discretionary approval, the issuance of a building permit.

“Planning permit” means any discretionary approval of a residential or mixed use project, including but not limited to a comprehensive or specific plan adoption or amendment, rezoning, tentative map, parcel map, conditional use permit, variances, or architectural review. (Ord. 1094 § 11, 2026; Ord. 1065 § 5 (Exh. A), 2023. Formerly 3.32.020)

The amount of commercial linkage fee imposed on applicants of commercial development projects shall be determined by resolution adopted by the City Council and may be adjusted annually by the percentage change in the construction cost index for the San Francisco area published by the Engineering News Record (ENR), or by a substitute index selected by the City Manager if the construction cost index ceases to be published. Commercial linkage fees shall not exceed the cost of mitigating the impact of the commercial development projects on the availability of affordable housing in the City. (Ord. 1094 § 11, 2026; Ord. 1065 § 5 (Exh. A), 2023. Formerly 3.32.030)

A. A commercial linkage shall be applied to commercial development projects involving new construction and additional gross square footage to existing commercial buildings. If a development is exempt from the fee at initial construction, but later converts to a commercial development project, the converted square footage will be subject to the fee.

B. Any commercial linkage fee shall be paid in full prior to the issuance of the first building permit for the commercial development project subject to the fee or at a time otherwise specified by Council resolution. If no building permit is required, the fee shall be paid before a conversion of use may take place. The fee shall be calculated based on the fee schedule in effect at the time the building permit is issued as adopted by the City Council. (Ord. 1094 § 11, 2026; Ord. 1065 § 5 (Exh. A), 2023. Formerly 3.32.040)

The following commercial projects are exempt from the provisions of this chapter:

A. City buildings and facilities and those public facilities entitled to an exemption under state law.

B. Schools, places of public assembly, cultural institutions, childcare facilities, nursing homes, residential care facilities, and skilled nursing facilities.

C. Projects which replace or restore a structure damaged or destroyed by fire, flood, earthquake, or other disaster within three (3) years of the damage or demolition. (Ord. 1094 § 11, 2026; Ord. 1065 § 5 (Exh. A), 2023. Formerly 3.32.050)

Commercial linkage fees collected shall be deposited into the affordable housing fund. The fund shall be administered by the Administrative Services Director and shall be used exclusively to provide funding for the provision of affordable housing and for reasonable costs associated with the development of affordable housing, at the discretion of the City Council. (Ord. 1094 § 11, 2026; Ord. 1065 § 5 (Exh. A), 2023. Formerly 3.32.060)

A. Payment of the commercial linkage fee is the obligation of the builder of a commercial development project. The City may institute any appropriate legal actions or proceedings necessary to ensure compliance herewith, including, but not limited to, actions to revoke, deny, or suspend any permit or development approval.

B. The City Attorney and Community Development Director shall be authorized to enforce the provisions of this chapter and all affordable housing agreements, regulatory agreements by civil action and any other proceeding or method permitted by law.

C. Failure of any official or agency to fulfill the requirements of this chapter shall not excuse any builder or owner from the requirements of this chapter. No permit, license, map, or other approval or entitlement for a commercial development project shall be issued, including without limitation a final inspection or certificate of occupancy, until all applicable requirements of this chapter have been satisfied.

D. The remedies provided for in this chapter shall be cumulative and not exclusive and shall not preclude the City from any other remedy or relief to which it otherwise would be entitled under law or equity. (Ord. 1094 § 11, 2026; Ord. 1065 § 5 (Exh. A), 2023. Formerly 3.32.070)