Downtown Expansion Plan Development Impact Fee and Nexus Study

Project Overview

The City of Santa Cruz (“City”) requests proposals from qualified consultants to prepare a Nexus Study for development impact fees in compliance with the requirements of the Mitigation Fee Act (also known as “AB 1600,” California Government Code Sections 66000 – 66025) for the Downtown Plan Expansion area.

The City of Santa Cruz adopted the Downtown Plan Expansion in May 2025. The goal of this project is to provide documentation which demonstrates the nexus between the Downtown Plan Expansion developments and their impact on city infrastructure, and to justify the appropriate rates for a new impact fee.

The Downtown Plan Expansion has adopted buildout assumptions, and order-of-magnitude infrastructure cost estimates for elements included in the adopted policy documents. These buildout assumptions and cost estimates will be provided to the selected consultant. These inputs shall be reviewed, validated, and updated as necessary to support the Development Impact Fee and Nexus Study.

The City of Santa Cruz was incorporated in 1866 and formed its current charter in 1948. It is governed under a Council/Manager form of government. A Mayor and six Council members set policy for the City and a City Manager serves as chief administrator of those policies. The City is located on the coast, 75 miles south of San Francisco on the northern edge of the Monterey Bay. It encompasses 15.8 square miles with cultural and ethnic diversity among its population of 65,000. Santa Cruz is part of the National Marine Sanctuary and is a popular tourist destination owing to its beaches, surf culture, and historical landmarks.

The City provides a full range of municipal services and facilities including a recreational wharf, public golf course, over thirteen hundred acres of open space, full beach services, refuse management, law enforcement, fire protection, and water and wastewater utilities. The City is also host to University of California Santa Cruz, the Santa Cruz Harbor, and the Santa Cruz Beach Boardwalk amusement park.

The City of Santa Cruz requests proposals from qualified firms for services to develop a new Development Impact Fee and Nexus study for the Downtown Plan Expansion area. A successful proposer will have the ability to utilize the adopted plan and associated buildout assumptions and infrastructure plan to develop a new Development Impact Fee in compliance with the Mitigation Fee Act. This fee should support the planned land use and transportation elements of the Downtown Expansion Plan.