July 14, 2025

Coronado City Council to Discuss Housing In-Lieu Fees

News Summary

The Coronado City Council will meet to deliberate on the city’s housing in-lieu fees affecting subdivision projects. Recent approval of a fee hike from $7,000 per unit to $59 per square foot has raised concerns about its impact on development. Additionally, a proposal for fencing at the Cays Park dog run will be addressed. Public attendance is encouraged as decisions on housing affordability and community amenities are set to unfold.

Coronado – The Coronado City Council is set to meet at 4 p.m. on July 15 in the City Council Chamber located at 1825 Strand Way. The meeting will be available for live viewing and a recorded version will be posted for later access. Among the key items on the agenda is a critical discussion regarding the city’s housing in-lieu fees as they relate to subdivision projects.

The housing in-lieu fee is a financial option for developers working on subdivisions with two or more units. Under this system, developers are given the choice to either provide affordable housing units within their projects or pay a fee that supports other affordable housing initiatives in the city. This fee serves as a financial mechanism to bolster affordable housing resources throughout Coronado.

In April, the City Council approved a significant increase in the in-lieu fee for the first time in three decades, raising it from $7,000 per unit to $59 per square foot. This new fee sets a record as the highest in the region. However, the steep increase has raised concerns among both developers and residents, leading to a reconsideration of the fee during the upcoming council meeting. For the time being, the old fee of $7,000 per unit remains in effect while the council deliberates on its future.

Developers have expressed worries that such a high fee may become a barrier to investment in Coronado, potentially resulting in a shift towards the construction of more single-family homes, which do not incur the in-lieu fee. Recent projects, such as a 12-unit development on Orange Avenue, exemplify this concern, as this particular project includes no designated affordable housing units. Had the previous fee schedule been applied, the project would have been charged $84,000, whereas the new fee would escalate the cost to $1.3 million.

During the meeting, the City Council may explore several options concerning the in-lieu fee. These may include reducing the fee, initiating a phased increase, or possibly broadening the program to encompass multi-family rental properties. Additionally, there will be discussions on the formulation of the fee, specifically whether to include non-livable square footage—such as balconies and garages—in the total calculations.

Another significant item on the agenda revolves around the proposal to install a fence around the dog run at Cays Park, which represents one of the city’s two designated off-leash dog areas. The council’s decision regarding the dog run will be preliminary; should it gain approval, city staff will then construct designs and obtain cost estimates for further consideration.

Currently, the dog run spans 1.5 acres and stretches approximately 800 feet. The council will engage in discussions about several fencing aspects, including enclosure options for various dog sizes, type and height of the fencing materials, incorporation of natural plant life, access gates, and potential new amenities for enhancing the dog park experience.

Commissioner Frank Urtasun from the Port of San Diego will also provide insights relevant to Coronado during the meeting, contributing additional context to the discussions at hand. The public is encouraged to attend the meeting, either in person or online, to stay informed about the decisions that will affect housing and community facilities in Coronado.

The upcoming City Council meeting promises to address pivotal issues impacting development and community resources in Coronado, emphasizing the need for effective policies that balance both housing affordability and community amenities.

Deeper Dive: News & Info About This Topic

HERE Resources

Coronado City Council Meeting Highlights Housing and Budget Updates
Coronado City Council Approves Bonfire Boundary Changes
Coronado City Council Faces Backlash Over Housing Fees
Coronado City Council Meeting Set for Key Discussions
Coronado City Council Reviews Community Initiatives
Coronado City Council Approves Fee Increases for Housing and Transportation

Additional Resources

Author: STAFF HERE CORONADO

The Coronado Staff Writer represents the experienced team at HERECoronado.com, your go-to source for actionable local news and information in Coronado, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Coronado Island Film Festival, productions at Lamb’s Players Theatre, community workshops at John D. Spreckels Center, and iconic celebrations at Hotel del Coronado. Our coverage extends to key organizations like the Coronado Chamber of Commerce and Visit Coronado, plus leading businesses in hospitality, dining, and tourism that drive the local economy. As part of the broader HERE network, including HERESanDiego.com, HEREHuntingtonBeach.com, HERELongBeach.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.

STAFF HERE CORONADO

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