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Parkland Dedication and Development Impact Park Fee Requirements for New Residential Projects

The Department of Parks, Recreation and Neighborhood Services strives to provide all residents in San Jose access to a park or public space within a 10-minute walk of their home.

The Park Impact Ordinance (SJMC 14.25 PIO) and the Parkland Dedication Ordinance (SJMC 19.38 - PDO) help to meet this goal by requiring new residential development to:

  • Dedicate new parkland (equal to three acres of parkland for each 1,000 new residents) or,
  • Complete improvements to existing recreational facilities or design and construct new facilities (including improving community centers and trail systems) or,
  • Pay a park impact in-lieu fee (equal to the dollar value of the required land dedication) or,
  • A combination of these options

A Parkland Agreement that outlines how a project will comply our ordinances is required prior to the issuance of a Parcel Map or a Final Subdivision Map. Payment of park impact fees is required prior to the issuance of Building Permits. For administrative Parkland Agreements (e.g. payment of fees only), the Department of Public Works project engineers work directly with project applicants to complete the process.

Applicants are encouraged to meet with PRNS Planning staff as soon as possible to discuss the Parkland Agreement. 

For more information, contact: parksplanning@sanjoseca.gov.

We are completing a study of our Development Impact Parkland Program in preparation for an update. For more information, check out our Fees That Support Parkland Development webpage.

PARKLAND OBLIGATIOn ^

The primary goal of the Parkland Dedication and Park Impact Program is the acquisition of new land for public recreational purposes (i.e., parks, trails, and community centers). New residential housing construction projects are obligated to address the impact residents will have on existing park facilities and provide new facilities to future residents. This is referred to as a ‘parkland obligation.’ The Parkland Obligation is calculated by using the estimated occupancy per housing unit (based on U.S. Census housing types/data), the number of new units, and the obligation to dedicate three acres of land for every 1,000 new residents.

 

Formula used to calculate the amount of required parkland
Minimum acreage dedication = .003 acres × Number of dwelling units × Average number of persons per dwelling unit.

Park Impact Fees ^

The Parkland Obligation can be converted to an in-lieu Park Impact Development Fee.

Park Impact In-Lieu Fee Schedule
Effective August 7th, 2018, the Schedule of Park Impact Development Fees is listed in Exhibit A of   (adopted 8/7/2018.)

The Park Impact In-Lieu Fee is calculated by identifying the Real Estate Multiple Listing Service (MLS) area the project is in, the per unit fee associated with the housing type, and multiplying the two. For example, a 100 multi-family unit project in the Downtown would be $22,600 x 100 = $2,260,000 (MLS fee per unit × number of units.)

The housing type is classified per U.S. Census definitions of housing characteristics*.
*Note: Unit interpretations across departments (i.e., PRNS, PBCE, PW) can differ.

See the Schedule of Park Impact Development Fees listed below in Exhibit A of Resolution #78733 (adopted 8/7/2018) and housing type examples below.

Fee Schedule

Parkland credits^

Projects may apply for credits to lower the amount of fees that are due. Potential credits are listed below.

Private Recreation Credits 
Projects may lower their parkland obligation by providing a variety of public and private on-site recreational amenities as part of the project. Amenities can include children play lots, picnic areas, hard game courts, turf playing fields, publicly accessible plazas and gardens, pet yards, swimming pools, community, and recreational rooms.  A complete list of qualifying amenities and restrictions is included in Resolution #73587.

Credit is provided for the square footage of the amenities. Projects can receive up to 50% credit towards the required parkland obligation by providing these amenities.

To apply for Private Recreation Credits, applicants must submit detailed exhibits that outline the amenities that are proposed for credit. Staff work with the developer to ensure that the amenities align with the resolution before approving the application. To receive credit, finalized exhibits must be completed prior the execution of a parkland agreement. The review process typically takes anywhere between two and six weeks. Applicants are encouraged to contact PRNS early in the development process to coordinate the application process.

You can refer to the following links for guidance on how to develop an application and design amenities to meet resolution requirements:

Affordable Housing Credit
Per Resolution No. 75540, as may be amended, all deed-restricted affordable units for low income households provided to meet Inclusionary Housing Ordinance (IHO), qualify for a 50% per unit fee reduction toward the payment of park impact in-lieu fees. 

To qualify for this credit, applicants are required to meet the City’s affordable housing guidelines and submit an Affordable Housing Compliance Plan with the Housing Department.

Existing Residential Units 
Any existing residential units that will be demolished or retained as part of the project qualify for a credit toward the parkland obligation.

SB 937 - Park Fee Deferral
Pursuant to California Senate Bill 937 (SB 937), effective January 1, 2025, the timing of payment of park fees is shifted from building permit issuance to certificate of occupancy for “designated residential development projects”. SB 937 defines “designated residential development” projects as:

  • 100% affordable housing;
  • SB 35/SB 423 State Streamlined Housing Projects;
  • Projects approved through AB 2011;
  • Low barrier navigation centers;
  • Projects approved through the provisions of SB 4 that allow for affordable housing on the lands of faith-based uses or certain public universities;
  • Project is eligible for state density bonus law; or
  • Project includes 10 or fewer units.

For qualifying SB 937 projects, here is a link to a Parkland Agreement template for deferral of park fees.  

Note: The Parkland Agreement will be completed in coordination with City staff.  

Parkland Agreements ^

The City of San José requires new residential developments to contribute to supporting and improving the city's parks system under the Parkland Dedication Ordinance (PDO) and Park Impact Ordinance (PIO). Developers can meet this requirement through one of the following:

  • Land Dedication (Turnkey Park)
  • In-Lieu Fee Payment (Administrative Agreement)
  • Combination of Both
Based on the number and type of residential units, city staff calculate the required land or in-lieu fee contribution. Developers are encouraged to engage with the Parks, Recreation, and Neighborhood Services (PRNS) early in the planning stages. This helps determine which parkland obligation method—dedication, in-lieu fees, or both—is most appropriate. For more detailed information or assistance, developers can reach out to PRNS Planning staff at parkplanning@sanjoseca.gov.

There are two types of Parkland Agreements: Administrative and Turnkey.

Administrative Parkland Agreement (Application of Credits/Payment of In-Lieu Fees/Simple Land Dedication)

For projects opting to fulfill their parkland obligation through paying in-lieu fees rather than land dedication or construction, the process is streamlined:

If no parkland is being dedicated or built, developers enter into an administrative agreement. The Developer and the City sign the agreement and the Developer pays the required fee.
Payment is typically due prior to issuance of building permits. This option occurs typically when:

  • The development is small or urban infill (where land dedication isn’t practical)
  • The in-lieu fee amount is more feasible than building a park or dedicating land
  • The City prefers to collect funds to improve or build parks elsewhere
Credits that lower the projects Parkland Obligation, such as Private Recreation and Affordable Housing Units, are also considered in an Administrative Parkland Agreement.

The Department of Public Works collaborates directly with project applicants and PRNS to complete the administrative parkland agreement.

Here is the template language for Administrative Parkland Agreements:

Turnkey Parkland Agreement

A Turnkey Parkland Agreement allows a developer to satisfy their parkland obligation by dedicating land and constructing a public park (or other publicly beneficial recreational improvements - like fixing a broken play structure), rather than paying in-lieu fees. Once the park is built to City standards, it's "turned over" (hence "turnkey") to the City for public use and long-term maintenance.

This process typically applies to:
  • Larger developments
  • Master-planned communities
  • Areas where the City identifies a need for a park and land contributions
  • Areas with unbuilt trail segments
  • Community Centers on Chartered Parkland that need recreational improvements

The benefits of a Turnkey Agreement include on-site community benefit, residents of the new development—and surrounding neighborhoods—get direct access to a new park. Turnkey parks enhance quality of life, community identity, and create neighborhood cohesion. Turnkey parks offer potential cost efficiencies. Depending on land value and construction costs, building a park might be less expensive than paying the full in-lieu fees—especially on large or multi-phase projects.

Developers may have more control over budgeting and project phasing and can align construction schedules. Turnkey parks add value to the development and surrounding area. A well-designed park can significantly increase property values and make the development more attractive to buyers or renters. Instead of waiting for the City to collect enough funds to schedule a future project, the park is built during development—so it's available when residents move in. Projects that provide public parks may be more favorably viewed during community outreach and also demonstrate a developer’s commitment to community investment.

The Turnkey Parkland Agreement process typically involves several stages, and the overall timeline can vary based on the complexity of the development and the scope of the park. However, a general timeline for completing a Turnkey Parkland Agreement usually spans 12 to 24 months, depending on the project. Developer should meet with PRNS (Parks, Recreation, and Neighborhood Services), PBCE Planning, and Public Works to discuss the potential for a turnkey park.

Below is an overview of the Turnkey Parkland Agreement process. This process typically takes 9 – 12 months to complete. It is imperative developers work with staff to start this process as early in the entitlement process as possible to ensure there are no delays issuing Final Maps or Building Permits.

The process begins when a rezoning or development permit is filed:

  • PRNS reviews proposed project and determines preferred method of complying with the parkland obligation.
  • If a project will comply with our parkland ordinances by designing and constructing or improving existing facilities, a Turnkey Parkland Agreement is needed.
    • The size, configuration, and location of the future park site (or other improvement) should be included within the rezoning/development permit plan set.
    • The design and programming of the park will occur in a separate three stage community engagement process (see below for more information). 
    • Typically, the Developer’s Landscape Architect team acts as the design and construction consultant during the Master Planning process. 
The PRNS Planning Team serves as the lead/Project Manager for the development of the Parkland Agreement.
  • Contract/terms and conditions
  • Total fees and credits
  • Park Master Plan and Naming
  • Cost Estimate to design and construct park
  • Timeline to design, build, opening date of the new park
  • Surety Bonds

The Public Park Master Planning and Naming process requires three community meetings lead by the City and supported by the project’s landscape architecture team. It is highly recommended these meetings be included with the public development review meetings when feasible.

  • Community Meeting #1 – Presentation of site constraints and opportunities, open first community feedback and naming survey. 
  • Community Meeting #2 - Presentation of design alternatives, share results of first survey, open second community feedback and naming survey. 
  • Community Meeting #3 - Present final proposed design and results of survey, open third survey if needed.

Check out the PRNS Park Design Guidelines (Draft) for information regarding the design standards and best practices for the development of a turnkey park, the renovation of existing facilities, and design of park like amenities.

Once the community meetings are complete, key next steps include:

  • Developer creates cost estimate based on 35% construction drawings. The City reviews the estimate and design.  
  • The Parks and Recreation Commission reviews the Master Plan and proposed park name. The Commission makes a recommendation to the City Council.
  • The City Council considers adoption of the Turnkey Parkland Agreement, the Master Plan, and Name.

PARKS AND COMMUNITY FACILITIES DEVELOPMENT CAPITAL IMPROVEMENT PROGRAM STATUS REPORT ^

The Parks and Community Facilities Development Capital Improvement Program is the five-year program that supports planning, rehabilitation, and construction of new parks, trails, community centers, and a wide range of recreational facilities.  

Funding sources include the Construction and Conveyance Tax Fund, Park Trust Fund, miscellaneous grants and Measure P Bond. This annual report reviews the program, including various funding sources dedicated to parks purposes, significant projects and strategic planning efforts.

The following reports provide more information:

Downtown High Rise Incentive Program ^

The Downtown High-Rise Incentive Program aims to boost High Rise development in San José’s downtown and address housing shortages. The staff report outlines the details of the program extension, including the criteria for eligibility, the incentives offered, and the expected outcomes. It also provides background information on the program's history and previous extensions.

North San José Multifamily Fee Cuts ^

In December 2024, the San José City Council approved reduced park in-lieu fees for multi-family projects that have five or more units in North San Jose (MSL zone 7B). This was done concurrently with the adoption of the Multifamily Housing Incentive Program. This is is a strategic initiative aimed at stimulating the construction of multifamily housing units by reducing certain costs the City controls.

TRAIL DEVELOPMENT ^

Key Trail Development Tools

Planning Guidance - Inventory of Future Projects

Design Guidance

Current Status

Policies & Procedures

Operational Guidance

Annual Reports

Historical Status (per fiscal year)

Trail Count Research Fact Sheets Case Studies Other Tools

Determine how much carbon dioxide can be removed via landscaped trail: Carbon Dioxide Calculator.

Park Design Guidelines

The Park Design Guidelines are intended for staff from the Department of Parks, Recreation and Neighborhood Services and Public Works to reference when studying, planning and designing projects. The guidelines are intended as a flexible resource document detailing the preferred approaches for park development to support sustainability, functionality and affordability. The guidelines have been drafted in an accessible manner to be accessible to the community, City Council and other stakeholders of the Park System.