SAN JUAN CAPISTRANO : District to Boost Development Fees

Under the authority of a brand-new state law, the Capistrano Unified School District Board of Trustees has approved higher residential development fees to help pay for future school construction.

After a brief public hearing, trustees voted Monday to increase the fee, on new residential construction projects involving more than 500 square feet, from $1.65 to $2.65 per square foot. The fee for commercial and industrial development will remain at 27 cents per square foot.

The new fee, effective this week, does not affect homes within existing Mello-Roos tax districts, which are special districts in which homeowners pay an annual tax to help finance school construction.

There was no opposition during the hearing.

District officials expect to collect about $16 million in development fees during the next 18 months--if the economy picks up and planned development occurs.

Although $16 million is substantial, district officials say it’s a relatively small amount of money compared to what it costs to build schools, particularly in South County where land costs range from $600,000 to $700,000 per acre.

For example, Aliso Niguel High School, which is under construction, carries a $50-million price tag. A typical elementary school costs between $10 million to $12 million.

Since the state Legislature authorized development fees to help build schools in 1987, Capistrano Unified School District has collected about $30 million.

Under a new state law effective Jan. 1, school districts can increase development fees by $1 per square foot on new residential developments. Money raised through the fee can only be used to build and remodel schools needed to serve students who move into new homes and neighborhoods.