Morgan Hill Approves Incentive Program for New Industrial & Commercial Development

By John Lang

On February 21, 2018,  the City approved a Development Impact Fee Freeze Program with the intention to incentivize commercial and industrial development within the next three years. The Development Impact Fee Freeze Program offers new commercial and industrial projects a fee reduction by using the 2016/2017 fee schedule for approved projects that construct in a period of three years. With construction and labor costs continuing to escalate in one of the longest economic expansions in Silicon Valley, Morgan Hill is enticing new commercial development by locking in impact fees at the 2016/17 rate and exempting them from the cost of living and other infrastructure cost adjustments which occur annually. “We are trying to be very strategic and intentional about the type of development we want to attract to Morgan Hill. This Impact Fee Freeze Incentive Program provides certainty to both businesses and developers who are trying to construct commercial projects in a market that is challenged by the rising construction costs” states Edith Ramirez, Economic Development Director.

The program is a product of our Economic Blueprint that was approved by the City Council in 2017 that identifies four key industries for Morgan Hill. With a clear vision for development, the City recently approved a Zoning Code to make it one of the most progressive and business-friendly zoning codes that streamlines permitting for: innovation and advanced manufacturing, retail, tourism and healthcare industries.

Contact our Team if you would like to learn more about the program or enter into an Agreement with the City.

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