By KAREN VELIE The city of Pismo Beach was ordered Monday to repay the developer of a storage facility more than $1 million for overcharging development impact fees, along with court costs, accordi…
The city of Pismo Beach was ordered Monday to repay the developer of a storage facility more than $1 million for overcharging development impact fees, along with court costs, according to a Second Appellate District ruling.
Judge Tana Coates agreed, and in 2020, she ordered the city to refund Kendall a payment of $889,254 plus at least $160,021 in interest. Judge Coates’ ruling also invalidated a city ordinance establishing self-storage development impact fees, which she argued violated state law. In 2008, the Pismo Beach Planning Commission approved Kendall’s project. But shortly afterwards, Kendall put the project on hold for a few years because of the economic downturn.
In 2017, city staff reclassified the project as retail and increased the fee total to about $2.45 million. Later that year, staffers reclassified the project again as office space with an estimated fee total of $1.87 million.
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