Please ensure Javascript is enabled for purposes of website accessibility
Cost of a New Home Is Going up in Clovis. How Big Will Hike Be?
gvw_david_taub
By David Taub, Senior Reporter
Published 2 years ago on
June 20, 2022

Share

The cost of building — and likely the cost of new homes — will rise in Clovis.

Monday night, the city council voted 3-2 to raise development impact fees for new sewer, water lines and streets at 15%. The amount was a compromise — not the 27%-40% hike city staff recommended, but not the 9.9% the building industry suggested.

Either way, councilmembers had difficulty with the vote. They questioned the metrics used to determine the amount of the fee hike and impact it will have on new construction.

Councilmembers Uneasy

Councilwoman Lynne Ashbeck expressed frustration about the increases. She floated an idea of evaluating increases more often to lessen the sticker shock.

“I am struggling with the increase we are talking about,” she said. “How are people going to afford to go to Clovis?”

Councilmembers Jose Flores, Drew Bessinger and Bob Whalen voted yes; Ashbeck and Vong Mouanoutoua dissented for the main increase. Other increases for hourly rates for the city engineers and an update to planning division fees passed 5-0. The building industry did not object to the latter two fees.

Flores was concerned about pricing out commercial projects. City staff acknowledged “it is a big challenge.”

Mouanoutoua was concerned national builders might look elsewhere.

Clovis would have the biggest impact fees, compared to Fresno, Madera and Visalia, staff said.

Why?

“Because there is some contribution from the rate payers within Fresno that contribute to some of the big infrastructure,” city engineer Mike Harrison told GV Wire after the meeting.

Clovis has a policy of developers having to pay its own way.

“That has led to higher costs than other cities may experience,” Harrison said.

Building Industry Objected

“The proposed fee schedule runs the risk of making Clovis more uncompetitive.”John Bonadelle, Bonadelle Neighborhoods

The city says it met with “over 130 stakeholders,” including several in the development community, before putting together the proposal.

In a letter to the city, the Building Industry Association of Fresno/Madera Counties called the fee hikes “unsustainable.” The trade group is calling for a lower fee hike of 9.9%, using a different metric to evaluate costs than the city used.

Although popularly called “developer fees,” these infrastructure charges are passed on from developers to home buyers.

Several developers spoke during public comment asking for more time for the city to consider.

John Bonadelle, of Bonadelle Neighborhoods, said the fee rate — combined with higher construction costs and rising mortgage rates — will make homes less affordable.

“The proposed fee schedule runs the risk of making Clovis more uncompetitive against neighboring municipalities that compete for builders investment in housing projects. Builders will gravitate towards investing in municipalities with lower fee schedules that will allow for more competitively priced housing,” Bonadelle said in chambers.

Young Properties, Wilson Homes, Granville Homes echoed similar sentiments.

Darius Assemi, president/CEO of Granville Homes, is the publisher of GV Wire.

The city council last approved a development fee increase last year. But, that was in the 4-5%, Harrison said. The reason for the spike includes the pandemic, inflation and the Russia-Ukraine ware.

Escalating Costs Justified Increases

Citing escalating costs, the Clovis City Council approved raising developer fees on new home construction to help pay for things like sewer and water lines on Monday night.

City proposed raises of 27% to 40%, depending on the type of structure built. Staff recommended a phased implementation of the fee increases — 50% now, and the rest to be determined next year.

How much could a new home price increase? City staff provided this example: a new home selling for $375,000 would see a 2% price increase — approximately $7,500 — with the higher fees.

However, finding a new house that sells for $375,000 might be impossible in the sizzling Clovis market, where townhouses are currently about $400,000.

The new fee structure would cover increased hourly rates for city engineers, from $119 an hour to $140.

“Frequent adjustments are needed in order to attempt to keep pace with construction cost increases and fully fund the infrastructure associated with growth,” the city staff report says.

The nearly two-and-a-half hour discussion also revealed that street rates are different depending on the location in the city. City engineer Harrison says it depends on the “growth zone.”

RELATED TOPICS:

DON'T MISS

Willie Mays, Giants’ Legendary ‘Say Hey Kid,’ Dies at 93

DON'T MISS

Balderrama Applies for Texas Police Chief Job

DON'T MISS

California Fines Amazon Nearly $6M, Alleging Illegal Work Quotas at 2 Warehouses

DON'T MISS

Nvidia’s Stock Market Value Topped $3.3 Trillion. How It Became No. 1 in the S&P 500, by the Numbers

DON'T MISS

Two Fresnans Defrauded a Mentally Ill Man out of Millions. First Sentencing Comes Down.

DON'T MISS

California Governor Wants to Restrict Smartphone Usage in Schools

DON'T MISS

Fresno Trustees Prepare for Votes on $2.1 Billion Budget, $500M Bond Measure

DON'T MISS

Fresno Garbage Rate Hike Vote on Thursday. Where Does Council Stand?

DON'T MISS

Palestinian Supporters Hang ‘Stop the Genocide’ Banner on El Capitan in Yosemite Protest

DON'T MISS

California Business & Labor Hammer Out a Deal on Workplace Violation Lawsuits

UP NEXT

Balderrama Applies for Texas Police Chief Job

UP NEXT

California Fines Amazon Nearly $6M, Alleging Illegal Work Quotas at 2 Warehouses

UP NEXT

Nvidia’s Stock Market Value Topped $3.3 Trillion. How It Became No. 1 in the S&P 500, by the Numbers

UP NEXT

Two Fresnans Defrauded a Mentally Ill Man out of Millions. First Sentencing Comes Down.

UP NEXT

California Governor Wants to Restrict Smartphone Usage in Schools

UP NEXT

Fresno Trustees Prepare for Votes on $2.1 Billion Budget, $500M Bond Measure

UP NEXT

Fresno Garbage Rate Hike Vote on Thursday. Where Does Council Stand?

UP NEXT

Palestinian Supporters Hang ‘Stop the Genocide’ Banner on El Capitan in Yosemite Protest

UP NEXT

California Business & Labor Hammer Out a Deal on Workplace Violation Lawsuits

UP NEXT

How the Teamsters and a Homegrown Union Plan to Take On Amazon

David Taub,
Senior Reporter
Curiosity drives David Taub. The award-winning journalist might be shy, but feels mighty with a recorder in his hand. He doesn't see it his job to "hold public officials accountable," but does see it to provide readers (and voters) the information needed to make intelligent choices. Taub has been honored with several writing awards from the California News Publishers Association. He's just happy to have his stories read. Joining GV Wire in 2016, Taub covers politics, government and elections, mainly in the Fresno/Clovis area. He also writes columns about local eateries (Appetite for Fresno), pro wrestling (Off the Bottom Rope), and media (Media Man). Prior to joining the online news source, Taub worked as a radio producer for KMJ and PowerTalk 96.7 in Fresno. He also worked as an assignment editor for KCOY-TV in Santa Maria, California, and KSEE-TV in Fresno. He has also worked behind the scenes for several sports broadcasts, including the NCAA basketball tournament, and the Super Bowl. When not spending time with his family, Taub loves to officially score Fresno Grizzlies games. Growing up in the San Francisco Bay Area, Taub is a die-hard Giants and 49ers fan. He graduated from the University of Michigan with dual degrees in communications and political science. Go Blue! You can contact David at 559-492-4037 or at Send an Email

Nvidia’s Stock Market Value Topped $3.3 Trillion. How It Became No. 1 in the S&P 500, by the Numbers

13 hours ago

Two Fresnans Defrauded a Mentally Ill Man out of Millions. First Sentencing Comes Down.

13 hours ago

California Governor Wants to Restrict Smartphone Usage in Schools

13 hours ago

Fresno Trustees Prepare for Votes on $2.1 Billion Budget, $500M Bond Measure

13 hours ago

Fresno Garbage Rate Hike Vote on Thursday. Where Does Council Stand?

14 hours ago

Palestinian Supporters Hang ‘Stop the Genocide’ Banner on El Capitan in Yosemite Protest

14 hours ago

California Business & Labor Hammer Out a Deal on Workplace Violation Lawsuits

16 hours ago

How the Teamsters and a Homegrown Union Plan to Take On Amazon

16 hours ago

Colorado LGBTQ+ Club Shooter Pleads Guilty to 50 Federal Hate Crimes

17 hours ago

Boeing CEO Apologizes to 737 Max Crash Victims’ Families in Senate Hearing

17 hours ago

Willie Mays, Giants’ Legendary ‘Say Hey Kid,’ Dies at 93

Willie Mays, the electrifying “Say Hey Kid” whose singular combination of talent, drive and exuberance made him one of baseball’s greatest a...

10 hours ago

10 hours ago

Willie Mays, Giants’ Legendary ‘Say Hey Kid,’ Dies at 93

12 hours ago

Balderrama Applies for Texas Police Chief Job

13 hours ago

California Fines Amazon Nearly $6M, Alleging Illegal Work Quotas at 2 Warehouses

13 hours ago

Nvidia’s Stock Market Value Topped $3.3 Trillion. How It Became No. 1 in the S&P 500, by the Numbers

13 hours ago

Two Fresnans Defrauded a Mentally Ill Man out of Millions. First Sentencing Comes Down.

13 hours ago

California Governor Wants to Restrict Smartphone Usage in Schools

13 hours ago

Fresno Trustees Prepare for Votes on $2.1 Billion Budget, $500M Bond Measure

14 hours ago

Fresno Garbage Rate Hike Vote on Thursday. Where Does Council Stand?

Search

Send this to a friend