Police Facility Impact Fee Update 

In May 2020, the City of Reno established the Police Facility Impact Fee (PFIF) program to support funding for the new Reno Police Department Public Safety Center (PSC). As required by statute, the associated Capital Improvements Plan (CIP) and administrative manual, adopted by reference, must be reviewed at least once every three years. The most recent review of the CIP, administrative manual, and impact fee schedule was conducted by City Council in 2023. The City is now entering the next mandated review cycle and must evaluate potential adjustments to the impact fee amount and consider extending the fee collection timeline.

Staff presented four options to the development community for input.  Informational meetings on the proposed changes were held on October 15th, 16th, and 21st, 2025. View the meeting recordings below:

• Wednesday, October 15th at noon - view the meeting recording (linked)
• Thursday, October 16th at 9 a.m. - view the meeting recording (linked)
• Tuesday, October 21st at 4 p.m. - meeting was cancelled as there were no attendees

Following the input, City Council directed staff to proceed with the Business Impact Statement and Title 18 text amendment to extend the collection timeline through the year 2045 and maintain the existing fee schedule. 

In compliance with NRS 237.080, local governments are to notify chambers of commerce, trade associations or owners, and officers of businesses that are likely to be affected by the adoption of the proposed rule, so that you may submit data or arguments to the governing body, or its designee, if you believe the adoption of the referenced rule will either (a) impose a direct and significant economic burden upon business, or (b) directly restrict the formation, operation or expansion of a business.

No changes are proposed to the fee itself.  Updates to the administrative documents associated with the Police Facility Impact Fee are included for informational purposes.

• PFIF Capital Improvement Plan (CIP)
• General Administrative Manual
• Development Code Text Amendment to Section 18.04.1206
• Draft Business Impact Statement

An additional virtual engagement meeting to describe the proposed change and elicit feedback was held on December 18, 2025, at 12pm.  The recording of the presentation will be made available shortly. 

Any data or arguments must be received on or before January 9th, 2025 and directed to the address below, or emailed to Lauren Knox at knoxl@reno.gov.

Attention: Lauren Knox
Development Services
P.O. Box 1900
Reno, NV  89505

Additional Background

The impact fee is collected from new development projects at the time a building permit is issued. These fees contribute directly to funding the construction of the new Public Safety Center.  Under NRS 278B, municipalities are required to review the impact fees at least every three years. The most recent review occurred in 2023, with no changes made to the existing fee schedule. 

The total estimated cost to build the police station was $75 million, with approximately 18% or $13 million, to be funded through impact fees. To ensure adequate revenue is being generated, the fee structure must be reviewed at least once every three years.  If not enough funding is being collected, the fee amount can be increased.  

The impact fees are assessed based on the type and size of development.  A sampling of the existing impact fees is provided below:  

• Single-family home: $125 
• Apartment unit: $100 
• Industrial warehouse: $29 per 1,000 sq. ft. of gross floor area 
• Restaurant: $182 per 1,000 sq. ft. of gross floor area 
• Office: $255 per 1,000 sq. ft. of gross floor area 

During the initial years of the police impact fee collection, particularly during the COVID pandemic, large-scale developments such as student housing and industrial facilities generated significant revenue, with annual collections nearing $500,000. However, over the past three years, impact fees have steadily declined.  The decline is due to both a decrease in the number of building permits and the prevalence of smaller-scale projects, which generate less fees.  

(Chart details by Fiscal Year (FY): FY 19/20: $3,875 collected, FY 20/21: $494,816.75 collected, FY 21/22: $554,425.05 collected, FY 22/23: $429,682.69, FY 23/24: $341,408.90, FY /225: $268,874.01 collected.)

The original impact fee ordinance from 2020 included a ten-year sunset provision, anticipating that the full $13 million would be collected within that timeframe. To date, over $2 million has been collected, leaving more than $10 million to be raised in the remaining five years.  It should be noted that once the total $13 million amount is collected, the impact fee automatically goes away. 

To address this funding gap, the City is reviewing alternatives and seeking public input. These options include both raising the impact fee amounts and extending the timeline for which the impact fees can be collected, beyond the current ten-year limit. City Council was provided with a fifth option, which became the desired alternative, to not increase the rates, but increase the timeframe that the fees will be collected for 25 years, through the year 2045.

The information below describes the initial options (not including the fifth option described above) and sample impact fees by categorized use type:

Residential:

Commercial/Retail:

Office and Other Services:

Industrial