Sandpoint Imposes Development Fee Any New Building Permit To Include $372 Per Dwelling Unit For Parks, Recreation

Anyone building a new home in Sandpoint will now have to ante up $372 to pay for expansion of the city’s parks and recreation programs.

The City Council approved its first development impact fee Wednesday night with little fanfare and no objections. Only one person spoke at the public hearing - to clarify that the fee only applies to new homes and not existing residents.

“We did a lot of work on this, and the only real concern we have heard is the impact it will have on affordable housing,” said Mayor David Sawyer.

The impact fee will be collected on any new building permits that are issued. The set fee is $372 per dwelling unit, meaning an apartment complex would be charged the fee for each unit.

The city expects to earn about $20,000 a year from the fee - not exactly a windfall of cash, Sawyer said.

An average of 50 building permits are issued each year. Much of the city is already built out, leaving little room for new growth.

Money raised from the impact fee will go into a special account for developing or expanding the city’s parks, which are over-used and usually crowded. The fee will help place parks in new subdivisions and make newcomers foot the bill instead of taxing existing residents.

Sawyer said the fee wasn’t controversial because it was drafted with input from local contractors and real estate agents.

More than a year ago, impact fees were the focus of several legal battles in Coeur d’Alene and Sandpoint.

Sandpoint called its charge to developers a “park land dedication” fee. It basically forced contractors and new homeowners to pay the city 3 percent of the market value of their land. The fee could be as much as $1,000.

The city repealed the park fee after lawmakers clarified legislation for impact fees. “I think the contractors and Realtors were happy to see something with consistency, and we wanted something defensible,” Sawyer said.

“We are not really talking about a lot of money, but it will help out the city and be a benefit to residents.”

, DataTimes