Gradual Planning Fee Increase Remains

Los Angeles City Councilman Paul Koretz withdrew a motion to eliminate an ordinance that provides a three-year phase-in for a hike in the city’s planning fees. The Valley Industry and Commerce Association joined with several other business organizations to publicly oppose the motion regarding the Cost Allocation Plan. The groups alleged in a letter to the council that the motion would damage the city’s economic recovery by imposing a significant and unexpected burden on businesses. The groups also said it would disproportionately impact homeowners, non-profit organizations and community-serving amenities. The business community agreed to support the Cost Allocation Plan last year based on the fact that it would be phased in over a three-year period, according to a letter. Koretz withdrew the motion June 15 due to its lack of support, according to VICA. “This is a huge victory for business and nonprofit organizations planning to expand their facilities or construct affordable housing,” said VICA Chair Daymond Rice. “We understand the city’s need to meet its financial obligations, but the three-year phase-in is necessary for organizations that are struggling in this difficult economy.”