Economic Development: Non-Required, Supplemental Fees and Donations

School Fees:

The improved and entitled land under Neighborhood 10A is being donated to Lucia Mar Unified School District, where PSHH will build 84 deed-restricted affordable units for district teachers and staff at no cost to the district.

With the specific approval from the Board of Supervisors, all necessary school expansion and upgrade costs are fully funded by the project. 

LMUSD Superintendent Paul Fawcett sent a letter to the Board of Supervisors saying, “The District has worked with experts and thoughtfully calculated the costs associated with this development’s projected increase in student numbers. We are committed to using high-quality modular and stick-built construction rather than temporary (portable classrooms) solutions. The cost associated with high-quality buildings and an inflation multiplier were factored into our projected costs. The locations for these new facilities have been chosen to ensure they do not impact existing playgrounds.” He notes that with the project as approved, “the mitigation agreement is expected to cover 100% of additional costs.”

The State of California sets all school fees for new developments. The Dana Reserve, per the State of California, is required to pay level 1 fees. In an effort to support growth to the District, the Dana Reserve has offered to pay level 1 fees as adjusted by the SAB, plus an additional $0.68 for every square foot built of homes in neighborhood homes 1-6 throughout the life of the project. 

In addition to level 1 fees and the separate mitigation fee, the District requested– and we have agreed– that we advance $500,000 in fees to allow the District to have increased capital to complete the planning for any necessary expansion. The District requested that we additionally pay a fixed $175,000 for improvements at pick-up and drop-off at an elementary school. We have agreed to do so.

Additionally, the Dana Reserve has agreed to complete intersection crossing improvements for area students to access Dana Elementary at Pomeroy Road and Juniper Street, where designated by the County of San Luis Obispo.

Neither the mitigation fee, the advancement of funds, the sharing costs for pick-up and drop-off improvements, the donation of land for teacher and staff housing, nor the crossing improvements are a requirement of the developer per state law, but in an effort to help the local community, we have agreed to the above.

Fire Fees:

County Fire requested a site at the Dana Reserve, and the Dana Reserve is dedicating approximately two acres of improved land to the county for the fire station.

Normally, a development such as Dana Reserve would take fee credits for this donation against their fire impact fees. We have agreed to waive the right to those fee credits.  In addition, the current County fees as stated were insufficient to fund the fair-share portion of the fire facilities. Therefore, Dana Reserve agreed to pay increased fire fees as calculated by the County.

Peoples Self-Help Housing:

We will donate entitled, improved land for People’s Self-Help Housing to build a total of 156 deed-restricted affordable units.

Cuesta College Campus:

We will donate a 4 acre improved parcel to Cuesta College. The improvements include grading, curb, gutter, sidewalk, and utilities.  The Board accepted this donation in 2021.

Quimby Fees:

We have an obligation to either provide land for a park or to pay Quimby fees to support the County’s Parks. We are doing both: Dana Reserve will dedicate land for a public park and will pay Quimby fees without reimbursement in an effort to help the community and Parks’ Development.


We will donate an improved site near neighborhood 10B and the passive park for a standalone nonprofit Early Education & Childcare Center in coordination with People’s Self Help Housing. We will also have two units modified in NBD 1 that will be reserved for in-home childcare centers, and these will be offered at 66% market rate rent.