Los Angeles Business Journal

Transit Agency Drops Plan for Congestion Fee

By Howard Fine Friday, June 28, 2013

The Los Angeles County Metropolitan Transportation Authority on Thursday killed a controversial plan to impose massive fees on developers to pay for transit projects.

The agency’s board voted instead to direct staff to work with state legislators to seek alternatives to the state-mandated congestion fees, which would have been nearly $1,900 for each single family home developed and roughly $29,000 for a new grocery store the size of a Trader Joe’s.

The board had been set to approve the congestion fees in May, but opposition from developers and business groups forced the agency first to postpone consideration until last week and then ultimately to kill the plan.

In an emailed note late Thursday to members of the Los Angeles County Business Federation, or BizFed, Tracy Rafter, the group’s chief executive, thanked the members for voicing their opposition to the plan.

“Thank you to the broad and diverse coalition of 54 business organizations that joined together to…write letters and emails, make calls, and talk to the media – all of which led to development of a proposed solution and today’s responsible decision by the Metro board,” Rafter said in the note.

For previous Business Journal coverage of the plan, see “Business Holds Up ‘Congestion Fees’” in the May 20 issue.