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June 15,2010
City Offers System Fee Bargains
by Rodger Nichols of The Dalles Chronicle
Want to expand a business or start a new one? The City of The Dalles has a hot deal for you. That’s the message sent by the city council at Monday night’s city council meeting.
Councilors set in motion a plan that would result in deep discounts — from 50 percent to 100 percent off — in transportation system development charges in a yearlong sale.
System development charges (SDCs) are one-time fees, paid at the time construction permits are granted. They are designed to offset costs and stresses to the system caused by new development.
They come in five flavors: water, sewer, storm water, parks and recreation and transportation.
Transportation SDCs are calculated based on the estimated number of trips created by a change requiring a building permit. The more potential trips created, the higher the charge. Funds collected under the transportation SDC help pay for upgrades to streets needed by heavier traffic volumes.
Businesses, which create many more trips than residences, pay a lot more. Depending on the type and the size of business, SDCs can result in tens of thousands of dollars, payable up front.
A 24-hour convenience store for example, would be charged a $19,075 transportation SDC — and that’s per every thousand square feet of gross floor area.
Those fees took effect Jan. 1, 2008.
Since then, the economy has been seriously rocky, and councilors were concerned that fees were giving cold feet to potential new businesses, or those who wanted to expand existing businesses.
The committee suggested six incentives, which won council approval. Councilors directed staff to prepare ordinances to implement the incentives. Those ordinances will come before the council at its July 12 meeting for formal approval. The discount rate would only be in place for one year unless councilors voted to extend the program.
Here are the six incentives, in brief:
Re-use or re-development of an existing vacant building in the downtown commercial district would get a 100 percent discount — a full waiver of the transportation SDC.
Re-use or re-development of an existing vacant building outside the downtown commercial district: 75 percent discount.
Expansion of an existing business through new construction on the same site anywhere in the city: 50 percent discount.
Relocation of an existing business in the city to a new site with construction of new facilities anywhere in the city: 50 percent discount
Construction of a new business with 10 or fewer employees and 5,000 square feet or less in size: 75 percent discount.
Construction of a new business with 20 or fewer employees and 10,000 square feet or less in size: 50 percent discount.
Committee members said they didn’t want to defeat the whole purpose of SDCs by allowing the discounts for large businesses which would significantly drive up traffic volumes.
Mayor Jim Wilcox noted the implementation of the discounts would not require a public hearing, but did say he would allow audience comment at the meeting before the plan is adopted.
In other actions Monday, councilors passed an ordinance with an emergency clause that requires it to take effect immediately. The new ordinance creates a “no skateboarding” zone at the new roundabout. Councilors gave two reasons for the quick decision: skateboarding in the area creates a traffic hazard that could result in injury, and skateboarders would be likely to cause damage to the artwork the city plans for the site.
Meeting as an urban renewal board, the council also awarded construction of panels for the roundabout to local sculptor Jeff Stewart, for $41,600.
Also approved was a $28,000 loan to Griffith Motors to tear down the former city public works department on West Sixth where Griffith ultimately plans to move. Under the terms of Urban Renewal’s “blighted property” loans, if a new building replaces the blighted structure within three years, the loan turns into a grant.
After the vote, Griffith said he hasn’t fixed a date yet for the start of demolition, but plans on a ceremony when it happens.
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PeopleSpeak
"One of the biggest steps we can take to create jobs for Oregonians is to ensure we have 'project ready' industrial land available for business."
Govenor Ted Kulongoski
State of Oregon
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