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Berkeley officials say the city is owed less than originally estimated from property fees and assessments they say were inadvertently not billed to several buildings in the city. 

The new total is close to $250,000, some $19,000 less than originally estimated by the city manager’s office. 

But City Finance Director Fran David told Berkeley City Council Tuesday night that while the city is still investigating to see if any more properties have been accidentally dropped from the tax rolls, the total “escaped revenue” sums are expected to top out at between $500,000 and $600,000. David indicated that this figure “is much smaller than defined in media.” 

David said in a later interview that she was referring to estimated reports “in the media” that fees and assessments for two million square feet of property had been missed by the City of Berkeley. David said she could not recall which media this estimate appeared in. The Daily Planet has never included such an estimated figure in any of its stories on the “escaped taxes” issue. 

The “escaped taxes” controversy has been growing in Berkeley in recent weeks after a citizen complaint and a follow-up Daily Planet story revealed that several recent property developments had not been billed city fees and assessments. 

Two weeks ago, at Mayor Tom Bates’ request, City Manager Phil Kamlarz released a preliminary list of seven properties owing such back taxes over the past four years. David’s report was intended as a follow-up to Kamlarz’ list. 

Meanwhile, in response to the controversy, Councilmember Dona Spring has called for a full investigation of the taxes billed and paid, fee waivers, and local and federal legal compliance of three of the developments on Kamlarz’ list—the Berkeleyan and the Gaia Building, built by developer Patrick Kennedy, and Oak Court, built by developer Avi Nevo. 

Tuesday night, at the request of Councilmember Betty Olds, Council expanded the investigation to include all city development projects approved since 1997. Kamlarz said he would report back to Council with results of that investigation in two months. 

Assessments were not levied on three of the properties on the list—the Gaia Building, Oak Court, and Acton Courtyard—because the buildings were still operating under temporary certificates of occupancy, in accordance with what was then city policy. 

In her report to Council, Finance Director David said city policy has now been changed so that occupied buildings with temporary permits will be automatically added to the city’s tax rolls. 

David reported that her office has dropped two of the properties from Kamlarz’ “escaped taxes” report. She gave a few more details on two more, and removed more than $19,000 in missed taxes from another. 

David said city staff research showed that the more than $19,000 originally believed to be owed by the Bank of America on its 1536 Shattuck Ave. branch was in error, and that no taxes were owed. A Daily Planet check of records at the Alameda County assessor’s office disclosed that the property is listed under several different adjacent addresses, at least one of which is being billed for Berkeley fees and assessments. 

David also said that the Redwood Gardens senior housing development at 2951 Derby St. was tax-exempt because of nonprofit status, and had been erroneously included in the original list. 

She said the 9,500-square-foot EIDS Electronics Building at 2508 Channing Way, owned by Highway 61 Property Management Company, and the 22,000-square-foot Body Time products and Wilderness Travel warehouse and office complex at 1101 8th St. had not been assessed, and would be billed by the city for back fees and assessments for an amount yet to be calculated. David said in a later interview that staff was still investigating why the city had failed to tax these two buildings.