A mixed-use development project includes 8,000 sq ft of retail space and 24 residential units. The impact fee is $2.50 per sq ft for retail and $1,200 per residential unit. What is the total impact fee?
Correct Answer
C) $48,800
The calculation is: (8,000 sq ft × $2.50) + (24 units × $1,200) = $20,000 + $28,800 = $48,800. Impact fees help fund infrastructure improvements needed to support new development.
Why This Is the Correct Answer
Option C correctly calculates the total impact fee by adding both components: retail space (8,000 sq ft × $2.50 = $20,000) plus residential units (24 units × $1,200 = $28,800). The sum equals $48,800. Impact fees are calculated separately for different land uses based on their specific rates and measurements, then combined for the total development cost.
Why the Other Options Are Wrong
Option A: $28,800
$28,800 represents only the residential portion of the impact fee calculation (24 units × $1,200). This answer fails to include the retail space impact fee of $20,000, resulting in an incomplete total that's $20,000 short of the correct amount.
Option B: $40,000
$40,000 appears to be an arbitrary figure that doesn't correspond to any logical calculation using the given rates. It's neither the retail portion ($20,000), residential portion ($28,800), nor their correct sum ($48,800).
Option D: $20,000
$20,000 represents only the retail space impact fee calculation (8,000 sq ft × $2.50). This answer omits the residential unit impact fee of $28,800, providing only half of the required total impact fee calculation.
Memory Technique
Remember 'MIX and MATCH': Mixed-use developments require calculating impact fees for each use type separately, then adding them together - Match each component to its rate, then MIX the totals.
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