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November 23, 2010 in City
City of Spokane weighs development taxes
Latest proposal would impose fees on more types of projects
Potential taxes on new development approved two years ago would finally be collected under a proposal being considered by the Spokane City Council.
The taxes are one-time “impact fees” paid by developers of homes, businesses and other projects that are expected to generate additional traffic demands on city services. The fees would have to be paid before building permits could be issued.
Unlike an earlier version approved by the council, schools, low-income housing projects, homeless shelters, hospitals and governments would be required to pay the fees. The new proposal also lowers the proposed fees.
Money raised would be set aside to pay for projects city officials say are needed because of increasing traffic.
“There has to be an acknowledgment that development does place a burden on infrastructure,” said City Councilman Richard Rush. “It seems like this is an appropriate way to do it.”
The fee ranges significantly based on project size and location. The builder of a single-family home in northwest Spokane would have to pay $994, $1,216 in northeast Spokane, $850 on the South Hill and $314 downtown.
The builder of a 50,000-square-foot supermarket would pay $216,000 in northwest Spokane, $264,500 in northeast Spokane, $185,000 on the South Hill and $68,500 downtown.
Some officials, however, question the implementation of new taxes during a sluggish economy.
City Councilwoman Nancy McLaughlin said the city should work with county, Spokane Valley and other leaders to implement impact fees throughout the region. Otherwise, she said, business may flow outside Spokane city limits.
“If we can’t get a regional buy-in, I think it’s best that we don’t implement them, especially in this economic downturn,” she said.
The council adopted the fees in late 2008, but added an amendment that prevented them going into effect until the city created a second tax source aimed at street maintenance. That amendment was sponsored by then-City Councilman Al French, an architect and developer who recently won a seat on the county commission.
Supporters of French’s amendment questioned why the city should create fees to build new road infrastructure when it doesn’t have the revenue to properly maintain what it builds. When he served on the council, French was a strong supporter of creating utility fees for street maintenance that would be charged on city utility bills, much like sewer and trash fees. But that concept needs approval of the state Legislature, which has not acted to allow cities to enact those fees. Those who opposed French’s amendment, including Mayor Mary Verner, argued that it was simply a way to prevent impact fees from going into effect.
On Monday, the Spokane City Council voted 4-3 to delay a vote on impact fees until Jan. 18.
Some council members said they didn’t want to confuse the debate on impact fees with the shortfall in the city budget. Impact fees must be used on specific transportation projects and couldn’t be used to prevent layoffs or service cuts.
But council President Joe Shogan reacted angrily to the delay.
“We’re deferring this because we just can’t make a decision,” Shogan said. “Let’s call a spade a spade.”
Rush said he hopes the fees will be amended so that some of the fees can be spent to upgrade pedestrian and bike infrastructure.
“It’s completely vehicular oriented,” Rush said. “We need a more holistic, all-inclusive view.”
MAC faces angry crowd 
Dazzeetrader11 on November 23 at 2:05 a.m.
This was propsed 4 years ago when times were good for development. Passed in early 2008 when times were still good. To do that now would deal a crippling blow to jobs and any hope of things improving through developemnt with the jobs attached.
It figures that Verner would have the council go after it now…when she’s spent the city into near bankruptcy. RUsh, SNyder Waldref and the other greenies would like devlopment stopped. They also want tab taxes, parking lot taxes and increased utility fees and a host of other things not coming to light just yet.
Anti development, forcing the ill defined “complete streets” down the citizens throats without letting the citizenry know what’s in store ofor them…w…just a nifty greenie tern for reducing good function of a city. . Verner and her cronies have gone too far already. Now this> Please people…the Council won’t listen to the people anyway…but this is rediculous. If you go to the meeting you get cut off or threaned by Shogan or you have to listen to Rush and SNyder babble on incoherently about their own ideas…either way..nobody listens to the public.
Key is that it’s the taxpayer who these people live off of. Have your say if you dare. Verner must go. No way should RUsh be Council president and under no circumstances should Waldref, Rush or Snyder be allowed on council ever again. They simply don’t know what they’re doing. Careful developers…leave while you can but you’ll get no cooperation or support in Spokane.
oneanddone on November 23 at 4:05 a.m.
Even those of us who consider ourselves to be part of the vast right wing conspiracy are tired of hearing the same old saw about how any sort of additional cost to business will throttle the economic recovery. Bullsh_t. And developers are the absolute worst case. New development needs to pay for itself, in every way, which includes fire, police, schools, and infrastructure. All of us are just plain worn out with all the taxpayer funded business bailouts under the pretext that it’s necessary. The only reason business can thrive in this country is because of the sacrifices of Joe Schmo and it’s about time business paid for the privilege.
Scoutster on November 23 at 7:22 a.m.
oneanddone…on this we can agree.
It is difficult to imagine that 220 unit assisted living complex or new shopping center moving to Rosalia or Ritzville instead of Spokane because they wouldn’t want to pay as you go for development costs. Profits would remain the same, but the costs would be forwarded to the users. As it should be.
lewis8457 on November 23 at 7:52 a.m.
sure they can pass it on to the consumers. so how much more expense should we all put out to give the city more money to waste? this is not the time to buckle development down with taxes while more then half the construction guys are unemployed.
Traffic what a joke. No one cares when they work on 3 of the 4 main routes, making everyone sit in traffic. wasting fuel and time. Give me a break spokane cares ….sure
lewis8457 on November 23 at 7:54 a.m.
Daisy you are right going to city council meetings is a waste of time and a insult to your intelligence.
If you haven’t been to one go to just one ad then you will get a good understanding why the town is so screwed up.
okfine on November 23 at 8:28 a.m.
More bike and pedestrian paths is a GREAT IDEA because if this goes thru all the unemployed construction workers, lumber yard workers, cabinet makers, etc will be using this means of transportation. Most people purchasing a home are having trouble now finding affordable housing, adding another fee will prevent many from living the American Dream. The City council truly believes another $1000 out of your pocket is petty cash
Dazzeetrader11 on November 23 at 10:54 a.m.
One..and Scout…developers pay taxes IF the project gets built. This is nothing more than a penalty tax for actually trying to build something is this “wonderful friendly” city! lol…See how friendly? Scout’s a resentful socialist so he doesn’t think anything should be built without the government taxing and interveneing. Fact is…projects and developers DO pay for themselves AND generate tax dollars. SO you’re whininess is unwarranted. No developer needs a city punishing a project.
OKfine..funny. Yes…bike paths through spaces empty. Tree lined streets for the “complete streeters” when few care….but it gets expensive. I wonder if this ship of fools will sink while watching empty spaces filled with bike riders and saplings. I see how nicely the bike people are getting along in Spokane this month ( like now). This goes on till April. Think those lil bikers are using their bikes 5 months out of the year? Do they license their “rides” Do they even obey traffic rules? Did Verner and Rush with Snyder need to take two lanes of traffic for bikes that can’t be used 5 months of the year?
Both issues point to a fundamental misunderstanding of how things work in a city that someday might beon the move. 10 Degress there with ice and snow. Bikes? And new tax of developers as an incentive to do what exactly??? lose money? leave? Stay dormant?
Nice going Verner, Rush and Snyder! Nice going!
james_l on November 23 at 1:00 p.m.
For the 3 decades I have worked in and adjacent to the Land Development business, I have often marveled at the City’s and County’s subsidization of this business with taxpayer’s dollars.
The developers will invariably purchase cheap land (cheap because it is not connected to public services) and then get their subdivisions approved (incredibly easy in the County, with 2 of the 3 commissioners currently or previously on the BIAW payroll), only to have the public later pay to extend the appropriate services.
It is ludicrous to believe that the savings to the developers are being passed on to the purchasers. Homes sell for the going market rate, regardless of the cost to construct.
Spokane has a deserved reputation for being one of the easiest places in the US to be a developer; minimal regulations and lack of enforcement. There are nearly twice as many developers in the Spokane area as other Metropolitan Service Areas of equal size.
As for the pedestrian and bicycle infrastructure, this should only apply in the appropriate situations; where there is a demonstrated need. Much work needs to be done on these regulations.
Scoutster on November 23 at 5:20 p.m.
Daisy…
I”m quite impressed that you seem to know me so well. Just one more mistake.
I’m asking a serious question here, Daisy: If the costs of development are not folded into the development itself, who SHOULD pay?
And here’s an extra bonus point: see if you can respond without personal insult.
Spokane_Citizen on November 23 at 5:35 p.m.
Scoutster…as you once cautioned me…don’t get sucked into the pit of illogic characterizing Daisy’s inane comments. And, as you well know, the quality of her response will even further decline as she fortifies herself with whatever antifreeze further frees her mind of rationality.