Chapter 15.74 — TRANSPORTATION AND CAPITAL IMPROVEMENTS IMPACT FEES

The purpose of this Chapter is to establish Citywide transportation and capital improvements impact fees in the City of Oakland to assure that Development Projects pay their fair share to compensate for the increased demand for transportation and capital improvements infrastructure generated by such Development Projects within the City of Oakland.

(Ord. No. 13853, § 2(Exh. C), 7-15-2025; Ord. No. 13366, § 4, 5-3-2016)

A.

New development generally increases the demand for transportation and capital improvements infrastructure and affects the quality of the community's infrastructure.

B.

The City of Oakland conducted a nexus study in March 2016 that recognizes that development within Oakland will result in further growth, and that such growth will place additional burdens on transportation and capital improvements infrastructure in the City. The nexus study further recognizes the locations and types of development that will generate those impacts, necessitating the construction of facilities and improvements, and/or the expansion of services and infrastructure needed to meet and accommodate development. The City of Oakland updated the nexus study in December 2021 in preparation for proposed refinements to the City's impact fee program.

C.

The nexus study established factors that reasonably estimate the level of impacts on transportation and capital improvements infrastructure from new development based on the type of development project, and thus determined that there is a reasonable relationship between the type of development project paying the fees and the need for transportation and capital improvements infrastructure.

D.

The nexus study established eligible uses of revenues from the transportation and capital improvements fees as further detailed in Subsections 15.74.100(A) and 15.74.110(A) of this Chapter, based on the types of impacts from development projects, and thus determined that there is a reasonable relationship between the type of development project paying the fees and the use of fee revenues.

E.

The nexus study applied factors that reasonably estimate the level of impacts on transportation and capital improvements infrastructure per unit of development and that vary by the type of development project, to calculate the fee on a development project, and thus determined that there is a reasonable relationship

between the amount of the fee and the cost of the transportation and capital improvements infrastructure attributable to the development project on which the fee is imposed.

F.

Through the payment of the fee, developers of benefitting land uses will address at least a portion of the impact of their developments on transportation and capital improvements infrastructure and mitigate all of their cumulative transportation impacts as required by the California Environmental Quality Act.

G.

The Transportation and Capital Improvements Impact Fees as well as the Transportation and Capital Improvements Funds created by this ordinance serve the public interest and are necessary to protect the health, safety, and/or welfare of the citizens of Oakland, and are enacted pursuant to Article XI, Section 7, of the California Constitution, Government Code Sections 66000—66025 (Mitigation Fee Act; AB 1600), Section 106 of the Charter of the City of Oakland and the City's General Plan, specific plans and other land use plans.

(Ord. No. 13853, § 2(Exh. C), 7-15-2025; Ord. No. 13366, § 4, 5-3-2016)

As used in this Chapter, the following terms have the following meanings, and to the extent a Planning Code and/or Municipal Code Chapter and/or Section is referenced herein, such reference shall also include future amendments, if any:

"Additional Housing Units" means the net increase in the number of housing units on a parcel of real property. Additional housing units equal the number of new housing units proposed to be developed on the parcel of real property by issuance of a building permit, less the number of housing units (a) legally removed from the same parcel of real property by authorized remodeling, demolition or relocation to another parcel of real property, or by accidental destruction or natural disaster, during the five-year period preceding the owner's filing for the building permit or (b) authorized to be removed prior to or during the construction for which the building permit is requested.

"Additional Residential Square Footage" means the increase in Residential Square Footage as a result of the Development Project which creates Additional Housing Units. Additional Residential Square Footage equals the difference between the Residential Square Footage proposed to be developed on the parcel of real property by issuance of a building permit and the total Residential Square Footage (a) legally removed from the same parcel of real property by authorized remodeling, demolition, or relocation to another parcel of real property, or by accidental destruction or natural disaster, during the five-year period preceding the owner's filing for the building permit or (b) authorized to be removed prior to or during the construction for which the building permit is requested.

"Additional Square Feet" means the net increase in square feet of building floor area, as defined in the California Building Standards Code, on a parcel of real property. Additional square feet equals the number of new building square feet proposed to be established on the parcel of real property by issuance of a building permit, less the number of building square feet (a) legally removed from the same parcel of real property by authorized remodeling, demolition or relocation to another parcel of real property, or by

accidental destruction or natural disaster, during the year preceding the owner's filing for the building permit or (b) authorized to be removed prior to or during the construction for which the building permit is requested.

"Affordable Housing" means each unit of housing that is restricted to occupancy at an affordable rent or an affordable housing cost to moderate-income households, low-income households or very low-income households. The terms "Affordable Rent" and "Affordable Housing Cost" shall be as defined in California Health and Safety Code Sections 50053 and 50052.5 and their implementing regulations.

"Affordable Housing Project" means a residential Development Project where one hundred percent (100%) of the housing units, other than manager's units, are restricted to very low-, low-, and moderate-income households.

"Applicant" means any individual, person, firm, partnership, association, joint venture, corporation, limited liability company, entity, combination of entities or authorized representative thereof, who undertakes, proposes or applies to the City for any Development Project.

"Building Official" shall be as defined in Section 15.04.085 of the Oakland Municipal Code.

"City" means the City of Oakland.

"City Administrator" means the City Administrator of the City of Oakland or their designee(s).

"Change and Intensification of Use" means a nonresidential project that will change the use of building floor area, as defined in the California Building Standards Code, from one use fee category to a higher use fee category.

"Changed and Intensified Square Feet" means the square feet of building floor area, as defined in the California Building Standards Code, of an existing building involved in a change and intensification of use project.

"Complete Building Permit Application" means an application for a building permit for vertical construction that is submitted after all necessary planning and zoning permits and approvals under Title 17 of the Oakland Planning Code are issued for the project and that contains all the application submittal materials required on the City's submittal checklist.

"Development Project" means any activity for new construction, any change and intensification of use of an existing building, or any additional housing units in a new or existing building requiring the issuance of a building permit by the City.

"Fee Per Square Foot" means the impact fee per square foot of floor area applicable to the Development Project imposed under this Chapter as contained in the City's Master Fee Schedule.

"Hotel/Motel" means those uses that fall under any of the following use activity types as defined in Chapter 17.10 of the Oakland Planning Code:

Transient habitation commercial activities.

"Impact Fee" means the transportation impact fee or capital improvements impact fee imposed under this Chapter as set forth in the City's Master Fee Schedule, as the transportation or capital improvements impact fee may be adjusted for inflation pursuant to Section 15.72.050.

"Industrial" means those uses that fall under any of the following use activity or facility types as defined in Chapters 17.10, 17.73 and 17.101E of the Oakland Planning Code:

Custom manufacturing industrial activities;

Light manufacturing industrial activities;

General manufacturing industrial activities;

Heavy/high impact manufacturing industrial activities;

Research and development industrial activities;

Construction operations industrial activities;

Regional freight transportation industrial activities;

Trucking and truck-related industrial activities;

Recycling and waste-relate industrial activities;

Hazardous materials production, storage, and waste management industrial activities;

General description of agricultural and extractive activities;

Plant nursery agricultural activities;

Limited agricultural activities;

Extensive agricultural activities;

Mining and quarrying extractive activities;

Work/live unit (as defined in Subsection 17.73.040.B.); or

Work/live nonresidential facilities (as defined in Chapter 17.101E in a D-CE-5 Zone).

"Institutional" means those uses that fall under any of the following use activity or facility types as defined in Chapter 17.10 of the Oakland Planning Code:

Essential service civic activities;

Limited child care civic activities;

Community assembly civic activities;

Recreational assembly civic activities;

Community education civic activities;

Nonassembly cultural civic activities;

Administrative civic activities;

Health care civic activities;

Special health care civic activities;

Utility and vehicular civic activities;

Extensive impact civic activities;

Rooming house residential facilities that are part of an institutional dormitory or are one of the following activities:

Residential care residential activities;

Supportive housing residential activities;

Transitional housing residential activities;

Emergency shelter residential activities; or

Semi-transient residential activities.

"Multi-Family Housing" means those uses that fall under any of the following use facility types as defined in Chapters 17.10, 17.65, 17.101C, 17.101E and 17.102 of the Oakland Planning Code:

Multifamily dwelling residential facilities, except facilities that meet the definition of townhome housing;

Rooming house residential facilities, except facilities that meet the definition of institutional;

Live/work residential facilities (as defined in Chapters 17.65 and 17.101E);

Work/live nonresidential facilities (as defined in Chapters 17.65 and 17.101E in a D-CE-3 or D-CE-4 Zone);

Micro living quarters facilities (as defined in Chapter 17.101C);

Joint living and work quarters (as defined in Section 17.102.190); or

Residentially-oriented joint living and working quarters (as defined in Section 17.102.195).

"Nonresidential Project" means a Development Project involving the following use fee categories: Hotel/motel, industrial, institutional, office, retail freestanding, retail ground floor or warehouse/distribution.

"Office" means those uses that fall under any of the following use activity types as defined in Chapter 17.10 of the Oakland Planning Code:

Medical service commercial activities;

Consumer service commercial activities;

Consultative and financial service commercial activities;

Administrative commercial activities;

Business, communication, and media service commercial activities; or

Research service commercial activities.

"Residential Project" means a Development Project involving the following use fee categories: Multi-family housing, single-family housing, or townhome housing.

"Residential Square Footage" means the floor area of usable and finished space within a residential unit enclosed by the inside surface of walls, windows, doors, and partitions, excluding balconies, garages, and, as defined in Section 17.09.040, the term "Unfinished understories, attics and basements."

"Retail, Freestanding" means those uses that are not part of a mixed use building that fall under any of the following use activity types as defined in Chapter 17.10 of the Oakland Planning Code:

General food sales commercial activities;

Full service restaurant commercial activities;

Limited service restaurant commercial activities;

Fast-food restaurant commercial activities;

Convenience market commercial activities;

Alcoholic beverage sales commercial activities;

General retail sales commercial activities;

Large-scale combined retail and grocery sales commercial activities;

Check cashier and check cashing activity;

Consumer cleaning and repair service commercial activities;

Consumer dry cleaning plant commercial activities;

Group assembly commercial activities;

Personal instruction and improvement services commercial activities;

Broadcasting and recording service commercial activities;

General wholesale sales commercial activities;

Building material sales commercial activities;

Automotive and other light vehicle sales and rental commercial activities;

Automotive and other light vehicle gas station and servicing commercial activities;

Automotive and other light vehicle repair and cleaning commercial activities;

Taxi and light fleet-based service commercial activities;

Automotive fee parking commercial activities;

Animal boarding commercial activities;

Animal care commercial activities; or

Undertaking service commercial activities.

"Retail, Ground Floor" means those uses that are located on the ground floor or second floor or in the basement of a multi-story mixed use building that are not designated at the time of building permit application or that fall under any of the following use activity types as defined in Chapter 17.10 of the Oakland Planning Code:

General food sales commercial activities;

Full service restaurant commercial activities;

Limited service restaurant commercial activities;

Fast-food restaurant commercial activities;

Convenience market commercial activities;

Alcoholic beverage sales commercial activities;

General retail sales commercial activities;

Large-scale combined retail and grocery sales commercial activities;

Check cashier and check cashing activity;

Consumer cleaning and repair service commercial activities;

Consumer dry cleaning plant commercial activities;

Group assembly commercial activities;

Personal instruction and improvement services commercial activities;

Broadcasting and recording service commercial activities;

General wholesale sales commercial activities;

Building material sales commercial activities;

Automotive and other light vehicle sales and rental commercial activities;

Automotive and other light vehicle gas station and servicing commercial activities;

Automotive and other light vehicle repair and cleaning commercial activities;

Taxi and light fleet-based service commercial activities;

Automotive fee parking commercial activities;

Animal boarding commercial activities;

Animal care commercial activities; or

Undertaking service commercial activities.

"Single-Family Housing" means those uses that fall under any of the following use facility types as defined in Chapter 17.10 of the Oakland Planning Code:

One-Family Dwelling residential facilities consisting of individual, detached housing units (as defined in Section 17.10.640).

"Townhome Housing" means Residential facilities consisting of multiple attached housing units with abutting sidewalls in a horizontal row.

"Use Fee Category" means hotel/motel, industrial, institutional, multi-family housing, office, retail freestanding, retail ground floor, single-family housing, townhome housing or warehouse/distribution.

"Warehouse/Distribution" means those uses that fall under any of the following use activity types as defined in Chapter 17.10 of the Oakland Planning Code:

Warehousing, storage, and distribution industrial activities.

(Ord. No. 13853, § 2(Exh. C), 7-15-2025; Ord. No. 13666, § 5(Exh. C), 11-16-2021; Ord. No. 13366, § 4, 5- 3-2016)

The regulations, requirements and provisions of this Chapter shall apply to any Development Project, unless exempt from this Chapter. The Applicant for any Development Project, unless exempt from this Chapter, as a condition of the building permit, must pay to the City the required impact fees, or comply with the requirements for developer constructed facilities as set forth in Section 15.74.120.

A.

Effective Date. Any applicant for a Development Project who submits a complete building permit application on or after September 1, 2016, must pay the impact fee that is in effect at the time of building permit submittal. Whenever a new building permit application is required, the impact fees will be assessed based on the submittal date of the new building permit application. If more than five (5) years pass between the issuance of the building permit and the first major inspection (foundation, underfloor, frame) then the

impact fee will be reassessed, and the applicant must pay the impact fee that was in effect at the time of the first major inspection.

B.

Exemptions Based on Submittal Date. Any Development Project for which a complete building permit application is submitted prior to September 1, 2016, shall be exempt from this Chapter if all of the following criteria are met:

The building permit is issued within one (1) year of submittal of the complete building permit application;

The Development Project is diligently pursued toward completion, as reasonably determined by the Building Official or designee;

The building permit does not expire, although it may be extended for up to one (1) year; and

A certificate of occupancy or temporary certificate of occupancy is issued within three (3) years of the building permit being issued.

In addition, Development Projects that obtain a vested right, as defined by California law, no later than sixty (60) days after the adoption of this Chapter are not subject to the impact fee.

C.

Exemptions Based on Project Type. The following shall be exempt from this Chapter if any of the following are met:

Development Projects involving less than five thousand (5,000) square feet of building floor area occupied by institutional uses;

Nonresidential projects involving less than five thousand (5,000) square feet of changed and intensified square feet;

Accessory Dwelling Units or ADUs, as defined in Section 17.09.040 of the Oakland Planning Code;

Vehicular residential facilities, as defined in Section 17.10.700 of the Oakland Planning Code; or

Affordable Housing units and Affordable Housing Projects, as defined in Chapter 15.72 and 15.74 of the Oakland Municipal Code are exempt from the capital improvements impact fee but not exempt from the transportation impact fee.

D.

Other Requirements. Nothing in this Chapter shall be construed as waiving, reducing or modifying any other requirements for issuance of any permit, variance, approval or other entitlement by the City under any other law. The impact fee and requirements authorized by this Chapter are in addition to any other fees or mitigation measures otherwise authorized by law.

(Ord. No. 13853, § 2(Exh. C), 7-15-2025; Ord. No. 13666, § 5(Exh. C), 11-16-2021; Ord. No. 13366, § 4, 5- 3-2016)

The impact fees shall be calculated for each Development Project as follows, pursuant to the impact fee amounts as stated in the Master Fee Schedule in effect at the time of the submittal of the Effective Date as specified in Section 15.74.040.A:

A.

Nonresidential Projects Involving New Construction:

Impact Fee = Fee Per Square Foot x Additional Square Feet

B.

Nonresidential Projects Involving Existing Buildings:

Impact Fee = (Fee Per Square Foot of New Use Fee Category - Fee Per Square Foot of Previous Use Fee Category) x Changed and Intensified Square Feet

C.

Residential Projects:

Impact Fee = Fees Per Square Foot x Additional Residential Square Footage

For Subsections A., B., and C., the impact fee amount shall automatically be adjusted annually for inflation on July 1st beginning on July 1, 2021, by the City Administrator in accordance with the percentage increase or decrease from January to January in the building cost index published by Marshall and Swift, or if such index ceases to be published, by an equivalent index chosen by the City Administrator, with appropriate adjustments for regional and local construction costs as necessary. The adjustment shall be automatically effective whether or not the Master Fee Schedule has been amended to reflect the adjustment.

Prior to the effective date of the ordinance which added this paragraph to this Chapter, the impact fee was calculated using a formula based on additional housing units rather than additional residential square footage. Where impact fees were calculated and assessed prior to this modification, the prior calculation shall remain in effect unless reassessment is required pursuant to Section 15.74.040.A and where no vested rights have been obtained. The City shall not grant any refund requests based on changes incorporated by the ordinance which added this paragraph to this Chapter.

(Ord. No. 13853, § 2(Exh. C), 7-15-2025; Ord. No. 13366, § 4, 5-3-2016)

For residential projects, the impact fee amount shall be based upon the impact fee zone in which the Development Project is located as contained within the Master Fee Schedule and as set forth in the maps included in Section 15.74.150 of this Chapter.

(Ord. No. 13853, § 2(Exh. C), 7-15-2025; Ord. No. 13366, § 4, 5-3-2016)

Payment of the impact fees shall be due in one (1) installment prior to the issuance of a temporary certificate of occupancy or certificate of occupancy, whichever occurs first for all or any portion of the Development Project associated with the building permit, and shall be in the amount of one hundred percent (100%) of the impact fee.

Except as provided elsewhere in this Chapter, no building permit may be issued for any Development Project subject to this Chapter unless the impact fee is paid to the City. The City shall deposit the impact fee in the Transportation Impact Fee Fund or the Capital Improvements Impact Fund, whichever is applicable.

As an alternative to payment of the impact fee set forth in this Chapter, an applicant for a Development Project subject to the impact fee may comply with the requirements for the developer constructed facilities as set forth in Section 15.74.120 of this Chapter.

(Ord. No. 13853, § 2(Exh. C), 7-15-2025; Ord. No. 13366, § 4, 5-3-2016)

A.

Appeals to Seek a Reduction in or Waiver from the Impact Fees. An appeal of the impact fees may be submitted by the applicant of the Development Project for purposes of seeking a reduction in the amount or waiver from the impact fees. Such appeals may be granted by the City Administrator to a Development Project under any one (1) of the following scenarios:

The Development Project is rendered infeasible by imposition of all or a portion of the impact fee because there are demonstrated special circumstances unique to the financing or economics of the Development Project and not generally applicable to other projects of similar type and size, and no feasible alternative

means of compliance are available which would be more effective in attaining the purposes of this Chapter than the relief requested. For purposes of this paragraph, "infeasible" means incapable of being accomplished in a successful manner within a reasonable period of time, taking into account economic, environmental, legal, social and technological factors;

The Development Project will not generate any need for transportation or capital improvements infrastructure, or the increase in such need will be limited so as to justify a reduced impact fee;

The Development Project is subject to a higher impact fee than what would otherwise apply under normal circumstances solely and exclusively due to unusual delays, beyond the reasonable control of the applicant, related to an appeal, litigation and/or other similar circumstances;

The requirements of this Chapter have been incorrectly applied to a Development Project; and/or

That application of the requirements of this Chapter to a Development Project is unlawful under and/or conflict with federal, State, or local law and/or regulation, including constituting an unlawful taking of property without just compensation.

B.

Applications for Appeals. Application for appeals to reduce or waive the impact fee must be made no later than ninety (90) days from the date of application for the building permit for the Development Project on a form provided by the City, and shall include payment of processing fees as established in the Master Fee Schedule. The burden of establishing by satisfactory factual proof the applicability and elements of this Section shall be on the applicant. The applicant must submit full information in support of their submittal as requested by the City Administrator. Failure to raise each and every issue that is contested in the application and provide appropriate supporting evidence will be grounds to deny the application and will also preclude the applicant from raising such issues in court. Failure to submit such an application shall preclude such person from challenging the impact fees in court. The City Administrator may require, at the expense of the applicant, review of the submitted materials by a third party.

C.

The City Administrator shall deliver to the applicant a final, written determination on the appeal. The City Administrator's decision is final and not administratively appealable.

(Ord. No. 13853, § 2(Exh. C), 7-15-2025; Ord. No. 13366, § 4, 5-3-2016)

Editor's note— Ord. No. 13853, § 2(Exh. C), adopted July 15, 2025, amended the title of § 15.74.080 to read as herein set out. The former § 15.74.080 title pertained to reductions, waivers, and appeals.

A.

Failure to comply with any of the provisions of this Chapter is declared to be prima facie evidence of an existing major violation and shall be abated by the City Administrator in accordance with the provisions of this Chapter. Any person in violation will be subject to civil penalties, civil action and/or other legal remedies.

B.

If the applicant fails to comply with any provisions of this Chapter including failure to timely pay the impact fee, the City may take any of the following actions:

Withhold issuance of the building-related permits;

Record a special assessment or other lien or liens against the real property which is the subject of the Development Project for the amount of the impact fee;

Revoke or suspend the temporary certificate of occupancy and/or certificate of occupancy for the Development Project;

Take any other action necessary and appropriate to secure payment, with interest accruing from the date of nonpayment; and/or

Assess civil penalties against an applicant and/or associated parcel owner who fails to comply with this Chapter, including failure to pay the impact fees, pursuant to Chapter 1.08 of this Code.

Violations of this Chapter are considered to be "major" pursuant to Subsection 1.08.040D of this Code. The daily civil penalties described in Subsection 5. above shall continue until the violations are cured, including payment of the impact fee with accrued interest. Civil penalties established in this Chapter are in addition to any other administrative or legal remedy which may be pursued by the City to address violations identified in this Chapter.

(Ord. No. 13853, § 2(Exh. C), 7-15-2025; Ord. No. 13366, § 4, 5-3-2016)