Linkage Fee Nexus Study

The City of Wheat Ridge, Colorado is soliciting proposals to complete a Nexus Study for a Housing Impact (Linkage) Fee, with proposals due July 16, 2026. The study will assess the demand for affordable housing generated by residential and commercial development and develop a legally defensible fee structure to evaluate potential impacts on future development activity and economic viability.

The scope requires evaluation of linkage-fee feasibility as a secondary revenue source for the City's Housing Fund, directly supporting implementation of Wheat Ridge's Affordable Housing Strategy and Action Plan. The study responds to a prior Inclusionary Housing Zoning Feasibility Analysis, which determined that a traditional IHZ program may not be suitable for Wheat Ridge given current market constraints and rental-development density limitations. A linkage fee would apply to both residential and commercial development, distributing affordability costs more equitably across all growth types and providing greater resilience to market cycles than an IHZ-only approach.

The City estimates the Nexus Study will cost approximately $55,000. City staff projects the resulting linkage fee structure could generate approximately $6 million over ten years at an estimated rate of $4 per square foot, compared to projected revenues of $12.3 million from a traditional IHZ program or $10.7 million from a scaled-back IHZ approach. The study will directly inform City Council's decision on whether to pursue a linkage fee and whether to allocate additional Housing Fund resources beyond short-term rental revenue.

The RFP solicits proposals from qualified individuals, institutes, firms, or organizations. Detailed evaluation criteria, specific deliverables, contract term, and procurement timeline details beyond the July 16 proposal due date are not specified in the available materials.