By Linda Taaffe

New construction in Los Altos will come with a higher price tag in upcoming weeks when a new program intended to curb the impact of future traffic goes into effect.

The Los Altos City Council last week approved the city’s first Traffic Impact Fee program to provide funding for traffic-calming projects citywide.

The impact fee will add $4,764 to the cost of building a new home and $8,726 to every 1,000 square feet of new commercial space. TJKM Transportation Consultants estimates that the program will bring in $1 million from developers over the next 20 years essentially by asking those responsible for new developments that generate more traffic to pay the cost associated with growth. That amount is based on figures in the city’s 2003 General Plan that anticipated the construction of 361 new housing units and the addition of 142,000 square feet of nonresidential development over a 20-year period.

The fee would impact only new residential construction and commercial properties. Remodels and teardowns would be exempt because the replacement of an existing home would generate a bigger living space, not more traffic, according to a city report. The city would have to spend the money within a five-year period or return it to the developer.

New development is expected to generate 21,669 new daily car trips through Los Altos, according to the study issued by TJKM.

While that amount could seem staggering for a city with few dollars for traffic improvements, Councilman Curtis Cole warned residents that the city is prohibited from using the money collected to correct existing deficiencies. The money can be pooled with other collected resources for projects elsewhere in town identified in the study as potential problem areas due to future growth. Fremont and Miramonte avenues and El Monte, Grant and San Antonio roads are among the areas identified in the report.

“The money raised will get us exactly where we are today,” Cole said. “We need another mechanism if we want to raise money to get something else.”

Local developer Abigail Aherns, who spoke on behalf of the Silicon Valley Association of Realtors, said the tax was inequitable and could discourage development.

“The impact is tremendous,” Aherns said. “New residences already pay higher taxes, plan check fees … construction taxes. It costs $35,000 for the privilege to build a new 3,000-square-foot home in Los Altos. This fee has a layering impact that will get added to everything else.”

Ahrens suggested setting a smaller fee for all construction prorated from remodeling to new homes instead of singling out one group.

“Normally when you have a traffic problem, you come in and widen the street. Here in Los Altos, it’s totally different,” said Consultant Chris Kinzel.