Board denies TIF offset for Racquet Way affordable housing project, citing safety and program concerns (4‑1)

The El Dorado County Board of Supervisors on Feb. 10 declined to award the Traffic Impact Fee (TIF) offset requested for the Racquet Way Apartment project (an SB 35 ministerial project that would expand an existing development to 36 units). Planning staff had described the project history: the earlier developer was awarded TIF credits that lapsed after a change in ownership and expired permits; the new owner applied for building permits and sought a TIF offset totaling $139,098.

Staff and the TIF advisory committee recommended a 50% offset because the new owner had not demonstrated full compliance with prior TIF requirements and staff anticipated substantial county staff time to shepherd the project to permit issuance. Planning staff emphasized the project meets the program’s affordability goals (deed‑restricted units at 50–80% AMI) but noted earlier award amounts were not transferred with the sale.

Board members debated multiple issues: Supervisor Vierkamp stressed public‑safety and traffic concerns along Highway 49 and argued the board should not subsidize the project via a TIF offset; Supervisor Parlin and others questioned staff capacity and whether offsets should be withheld if applicants fail prior obligations. DOT and CAO staff explained the county’s TIF model anticipates grant backfill over the life of the fee program and that offsets are discretionary under board policy.

Supervisor Vierkamp moved that the developer proceed without any county TIF offset; after discussion the motion carried 4‑1, with Supervisor Lane registering the lone no vote. The clerk recorded the motion outcome as 4‑1. The board did not rescind the project entitlements; staff will continue permit review consistent with that decision.

Why it matters: The decision withholds a TIF subsidy designed to incentivize deed‑restricted affordable housing under the county’s offset policy. County staff said grant assumptions in the long‑term fee model are used to estimate backfill of offsets, but several supervisors and commenters said cutting offsets reduces funding available for road mitigation and may worsen local traffic problems.

What’s next: Building permits remain under review; staff will process permits without the offset. County DOT confirmed the fee program modeling assumes grant revenue over a 20‑year period to backfill such offsets.