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Park Impact and Parkland Dedication Ordinances
Background

In 1988, the City Council adopted Municipal Code Chapter 19.38, the Parkland Dedication Ordinance (PDO) to help meet the demand for neighborhood and community parks generated by new residential development. In 1992, the City Council adopted Municipal Code Chapter 14.25, the Park Impact Ordinance (PIO) which applied parkland dedication requirements to new units in non-subdivided residential projects.

Pursuant to these ordinances a residential project’s parkland obligation under the PDO and PIO is equivalent in value or property to providing three acres of parkland for every 1,000 new residents added by the housing development. Residential projects can comply with this obligation by dedicating land for public parks, paying an in-lieu fee, constructing new park facilities, providing improvements to existing recreational facilities, or by providing a negotiated agreement for a combination of the these options. 

An executed Parkland Agreement that outlines how a project will comply with the PIO/PDO is required prior to the issuance of a Parcel Map or a Final [subdivision] Map. Payment of Park Impact in-lieu fees is required prior to the issuance of a Building Permit. Applicants are encouraged to meet with PRNS Planning staff at their earliest convenience to develop a program to complete the Parkland Agreement.
Park Impact In-Lieu Fees effective December 1, 2016

Any projects that: (1) have not fully paid parkland fees before December 1, 2016; or (2) have not entered into a fully executed parkland or turnkey parkland agreement before December 1, 2016, are subject to the Schedule of Parkland Fees set forth in Attachment B of Resolution 77926 which was adopted by the City Council September 20, 2016.
Private Recreation Credits
 
Projects can apply for Private Recreation Credits to receive up to 50% credit towards the required parkland obligation by providing a variety of residential building amenities within the project. Credit is given based on the of the whole project (not individual development phases), the actual square footage of the amenities, and compliance with the eligibility requirements, as outlined in City Council Resolutions #73587 and #77538 and the current adopted fees.

Required common open space areas, landscape corridors, emergency vehicle access easements, walkways, unsuitable topography areas, riparian corridors, and environmental mitigation areas stormwater low impact development areas, are not eligible for credit towards the PIO/PDO fees per City Council Resolution No. 73587 (Section 3.C). . 
Fees for Low Income Units and Secondary "Granny" Units

The park impact fees charged for qualifying low income units and secondary ["granny"] units  is set at 50% of the applicable parkland fees per SJMC Chapters 14.25 and 19.38) and pursuant to Resolution No. 75540 (adopted by Council on August 24, 2010) and Resolution 74314 (adopted by Council April 8, 2008).

Information Required by the Mitigation Fee Act
    2015-2016 Mitigation Fee Act Report
Downtown High Rise Incentive Program

The City Council voted to approve a Downtown High Rise Incentive Program on December 13, 2016 to encourage additional residential development in the downtown area. The program includes reduced parkland impact fees and some suspended building and structure construction taxes for qualifying residential projects. A project must be at least twelve stories tall and be located in the Downtown Core to qualify.

Reduced Parkland Impact Fees

Resolution No. 78039 allows qualifying downtown high rise projects to pay 50% of the applicable parkland fees due for a multi-family residential project that has five or more units located within Multiple Listing District (MLS) Zone #9 if the following criteria are met:

  • The first Building Permit is secured prior to July 1, 2018
  • The Certificate of Occupancy is issued by December 31, 2020
  • The developer of the project retains contractors licensed by the State of California
  • The developer of the project employs only construction workers who possess necessary licenses and certifications required by the State of California

The parkland fees are due and payable to the City prior to scheduling the first residential occupancy inspection for 80% of the
residential units.

Projects that qualify for this program do not qualify for Private Recreation improvement credits.

The program automatically expires on December 31, 2020. This program is not applicable towards and does not retroactively apply to any parkland agreements or parkland obligations that were entered into or satisfied prior to the effective date of the adopted resolution for the program.

Resolution No. 78039 (adopted 12/13/2016) amends Section 2 of Exhibit B of Resolution No. 73587 (as amended) pursuant to Chapters 14.25 and 19.38 of the San Jose Municipal Code.
 
Reduced Building and Structure Construction Taxes

Ordinance No. 29847 allows qualifying downtown high rise projects to suspend 50% of the Building and Structure Construction Tax (SJMC 4.46) when a building permit is issued between February 10, 2017 through July 31, 2018 provided the project meets the criteria listed in Ordinance No. 29847 (passed for publication 12/13.16, adopted 1/10/2017, effective 2/10/17 amending Chapter 4.46.036 of Chapter 4.46 of Title 4 of the San Jose Municipal Code).

Fast Facts


The City's inventory of parks, recreation, and neighborhood services is summarized on PRNS' Fast Facts document.

Contact Us


Contact Rebekah Ross by phone at (408) 535-3804 or via email at  if you would like additional information about the PIO and PDO ordinances and associated Resolutions and/or to schedule a meeting to start the Parkland Agreement process.