How developer fees contribute to delays on infrastructure improvements San Jose needs

HOUSING AND BUSINESS developers in San Jose avoid building public improvements by paying fees to the city, but this often leads to infrastructure projects slowing to a crawl.

Developers are typically responsible for building necessary infrastructure as part of residential and commercial projects, such as underground utilities, street improvements, traffic signals and more. To get around the responsibility of these additional requirements as market conditions raise the cost of construction in Silicon Valley unprecedented rates, many developers agree to pay “in-lieu” fees. This pushes the infrastructure improvements onto the city, causing delays and increased costs leading to a backlog, as work can’t begin until sufficient funds are available.