Street Wise

Important information for anyone planning to expand or develop real estate in Downtown. The City of Spokane has invested the past year-and-a-half developing a draft ordinance for impact fees that will affect the cost of Downtown development. The fees will provide a much-needed source of funding for City-wide traffic infrastructure projects which address current traffic shortcomings.

The City selected a broad range of business and neighborhood leaders to develop a fee-structure proposal that recognized the significant need for funding, but would not become a hindrance to development activity. This working group released its proposal in October 2007 and as part of the process, the City is seeking input from businesses and individuals that would be affected by the fees.

A few points to consider as you research the issue further:

• Transportation impact fees are charges paid by new development to finance local transportation infrastructure.
• The fees are authorized by the state’s Growth Management Act to address the demand that development creates.
• The fees are proposed to be collected at the time a construction permit is issued.
• Spokane has five proposed impact fee service areas, of which Downtown is one.
• Fee rates vary by service area and as proposed Downtown’s is the lowest.
• Fees that are raised in a particular service area fund projects in that service area.
• The fees are designed to provide predictable up front project costs for developers for ease of planning as opposed to payment on a case-by-case basis. Costs vary by project size.
• Alternatives to the impact fee working group’s proposals are being considered right now that could change the final result.

Comments are currently being solicited by the City on Transportation Impact Fees. Please click here for more information or to comment.