Martinez Council Charts a New Course on Development Fees to Attract Builders

The Martinez City Council used a wide-ranging workshop to send a clear signal: the city is ready to lower the cost of building. In a study session devoted entirely to development impact fees, all five council members coalesced around keeping fees in the low-to-middle range compared to peer cities, waiving fees for accessory dwelling units, and exploring deeper incentives for affordable housing — a package of directions that could reshape the economics of every housing project in town.

• Council directs staff to set development impact fees in the low-to-middle range versus Benicia, Hercules, and Concord, stepping back from full cost recovery
• Impact fees for ADUs over 750 square feet to be waived, with broader waivers for duplexes, triplexes, and affordable projects under discussion
• Childcare facility fee eliminated — only $8,000 left in the fund — but council insists on continued support for working families through other channels
• Cultural facilities fee expanded to include public art, creating the city's first dedicated funding stream for art installations
• New state law AB 179 creates fresh incentive for cities to waive fees on affordable housing projects seeking competitive grants

The evening's central question was straightforward: How much should Martinez charge developers to build? The answer will go a long way toward determining whether the city can attract the housing production it needs to meet its 1,345-unit housing element target by 2031.