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Financial Plan ' Subregional Impact Fees There is general consensus at TVTC that unbuilt development should pay its fair share to mitigate the impacts of traffic generated by that development. Construction of the major regional improvement pro;,.~ts listed in Table 8-3 is estimated to cost close to $1 billion, and constitutes the reg~;.nal improvement program needed to serve existing and planned development in the Tri-Valley and surrounding region. Roughly 70 percent of the total project cost is expected to be funded through local, state, and federal sources over the next 20 years. The remaining 30 percent is unfunded. TVTC wishes to explore the possibility of generating revenues for this ~_mfunded pertion through implementation of a subregional transportation impact fee. For illustrative purposes, a fee amount was estimated assuming that at the need for new transportation facilities will be generated equally by residential and commercial growth, and that funding responsibility would be equally divided among these two types of development. Furthermore, the fee calculation uses a trip-based methodology, which means that the amount of the fee would depend upon the number of peak-hour trips generated by each new development project. Finally, it was assumed that the total unfunded amount shown in Table 8-3 would be paid for through the subregional transportation impact fee. This final assumption is subject to change, given that the estimates for future public funding of $694 million is tenuous at best, and that the nexus relationship between traffic impacts generated by new development, and project needs, would need to be fully evaluated before a fee could be adopted. Also a number of procedural and administrative hurdles would need to be cleared in order to adopt such a fee. The results of the trip-based fee calculation was translated into equivalent dwelling units for residential development, and square footage for non-residential development. The fee amount for new residential development would be approximately $2,800 per dwelling unit. The amount for office, commercial, or industrial use would be approxi- mately $6 per square foot. This discussion is preliminary in nature. The project list, cost estimates, and possible fees are subject to change pending further discussion at the TVTC and evaluation of the nexus relationship between new development and its impact on traffic. TVTC recognizes that imposition of $6 per square foot fee on non-residential develop- ment could have a negative impact on the economic development of the Tri-Valley area. Accordingly, TVTC will explore in greater detail the fee calculation methodology, and approaches to reducing the f~:.~ burden on projects that could significantly support continued economic growth in Tn-~:alley. At a minimum, further study will be needed to determine the following: 1. The extent to which traffic generated by commercial development uses the freeway facilities identified in Table 8-3; and Barton-Aschman Associates, Inc. 153