Beverly Hills Changes Fee Formula for $1 Billion Projects

Beverly Hills is changing how it charges for building review on projects valued above $1 billion, giving its building official room to calculate fees from the work a project actually requires rather than relying only on its price tag.

The City Council took up the resolution on its Sept. 22, 2026 consent calendar. Under the existing schedule, plan check and permit fees rise at the same linear rate once a project's valuation exceeds $500,000. City staff says that can overstate the cost of reviewing an exceptionally expensive development: a higher construction value does not necessarily mean proportionately more hours of plan review or inspections. The new authority applies only above the $1 billion threshold.

Councilmember Rebecca Pynoos read the resolution into the consent motion, describing it as:

"authorizing the building official to determine appropriate building plan check and permit fees"

Under the city's staff report, the official must document anticipated staff time, outside consultants and other direct and indirect costs for a qualifying project. The calculation can be revised as the project progresses, but it cannot exceed the fee produced by the usual valuation schedule. Staff says the goal is to recover the full cost of city services without a General Fund subsidy.

That change can mean a lower bill for a developer when the formula would charge more than the city's reasonable costs. It also puts more importance on the city's project-by-project estimates and later adjustments. The report gives no example calculation, identifies no project expected to qualify and offers no estimate of the difference between the old formula and a future charge. A reader therefore cannot determine from this vote how much any particular developer might save.

The item received no separate discussion at the evening meeting. The practical test will come when the city documents fees for its first qualifying project: those records will show how the new discretion is applied and whether the cost-recovery promise is met.