Astoria adopts system development charges
Published 10:00 am Wednesday, October 25, 2023
- Developer Walt Postlewait expects the northeast building at NorthPost Apartments to be completed in March, and the entire project to be done in July.
Astoria has adopted a system development charge program, with final implementation and approval of rates expected in the coming months.
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The City Council on Monday unanimously supported the framework for assessing one-time fees for new development and some types of redevelopment. The fee is intended to get developers to pay their fair share for costs associated with expanding public infrastructure to accommodate growth without burdening existing development and utility ratepayers.
A resolution establishing the charges, along with a phasing schedule, is expected to go before the City Council before the end of the year.
City Manager Scott Spence recognized the concerns raised by some developers about the new charges. He said the proposal seeks to address the impact by choosing fees that are lower than what is statutorily defensible and by phasing in the fee over three years.
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“The more input and feedback that we receive from the development community, as well as property owners, would be helpful,” he said.
Astoria, which is one of the few cities in the state that does not administer the fees, hired FCS Group as consultants last year to help create a system development charge program and an ordinance governing the program.
The revenue generated from system development charges could be used for adding storm drainage infrastructure, wastewater treatment plant improvements and projects included in the city’s transportation system plan.
During a City Council meeting earlier this month, Spence outlined the potential fees.
He said that while the fee for a single-family home could be as high as $37,000, the city is looking at a fee closer to $21,000 given market realities and the fees in neighboring cities.
The fee is more than double than Seaside and more than quadruple than Warrenton, but is closer in line with other cities of Astoria’s size in the state.
The fee would be about $426,000 for a 66-unit apartment complex, more than $300,000 for a commercial redevelopment project of more than 9,000 square feet and about $466,000 for a new 90-room hotel.
City staff recommends a three-year phase-in for the fee, in which the full amount would not be administered until 2026. Staff also recommends scaling fees for single-family homes based on square footage.