Developer Fees Poised To Increase In Coachella Valley

RIVERSIDE COUNTY, CA — Riverside County supervisors Tuesday are slated to adopt a bevy of fee increases, based on inflationary pressures, that are imposed on developers in the Coachella Valley as part of a means to collect revenue that can be applied to future infrastructure improvements.

The Board of Supervisors will take up the proposed transportation uniform mitigation fee — TUMF — hikes sought by the Coachella Valley Association of Governments as part of Tuesday's policy agenda.

The increases would amount to about 3.5% in additional costs for developments in CVAG's territory, which encompasses most of eastern Riverside County, including the Interstate 10 cities of Coachella, Indio and Palm Desert.

"The TUMF program is intended to ensure that future development will contribute toward addressing the impacts of new growth on regional transportation infrastructure," according to a statement posted to the board's agenda. "Funding collected through the program is used to construct transportation improvements that will be needed to accommodate future travel demand in the Coachella Valley."

The CVAG Executive Committee proposed the hikes in April, following a review of the previous year's rise in the consumer price index for the Riverside-San Bernardino-Ontario metropolitan area, which is used as a yardstick for the entire Inland Empire.

The proposed hikes would mean a revised TUMF fee of $2,840 applied to each new single-family dwelling unit built, compared to $2,740 currently, while the present retail outlet development fee would go from $7,130 per 1,000 square feet to $7,385 per 1,000 square feet, and a hotel construction fee would climb from $4,165 per room to $4,315 per room.

The costs incurred by developers are recovered in sales and other final use revenue collection.

The fees, if approved, would take effect on Jan. 1.