Infill housing is more of a trojan horse. It turns residential properties into attractive investment properties and neighbourhoods into parking lots.  It may ease the rental market marginally but due to the increased property prices not the rental prices unless of course this type of rental unit is subject to price controls.

As for permit fees of $60 grand plus for an already developed property it is bordering on obscene. If you are going to allow the development the fee should be more inline with the cost. Where the district should be recovering is making a special class of multi residential that is taxed much heavier than it currently is for the extra services the property consumes..