Astoria to pursue system development charges

Published 11:45 am Friday, July 28, 2023

System development charges could help finance infrastructure improvements in areas such as wastewater treatment.

An ordinance creating a system development charge program in Astoria is expected to go before the City Council this fall.

A system development charge is a one-time fee assessed on 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 incremental growth without burdening existing development and utility ratepayers.

Last summer, the city hired FCS Group to come up with a system development charge program and ordinance governing the program. The consulting company has assisted the city with utility rate studies in the past.

During a City Council work session on Thursday, John Ghilarducci, the FCS Group’s president, noted that Astoria is one of the few cities in the state — especially of its size — that does not administer charges.

“This is the state’s mechanism for growth paying for growth, or at least for a part of growth’s impacts,” he said.

The revenue generated from a system development charge could be used for adding storm drainage infrastructure, wastewater treatment plant improvements and projects included in the city’s transportation system plan.

Ghilarducci presented fee options that would put Astoria near the front of the pack and also in the middle for system development charges compared to other parts of the state.

Seaside, Warrenton and Cannon Beach were among the cities with the lowest fees presented.

Ghilarducci said that while the fees may seem expensive, “generally, development around the state is accustomed to paying charges like this up front for the privilege of developing.”

City Councilor Andy Davis asked if the city could require a lower fee for development of lower-income housing, which Ghilarducci indicated would be possible.

City Councilor Tom Hilton said he was in favor of moving forward.

“This is something that I’ve always thought that our city has needed, especially when we have new developments coming in and we already have a very taxed system,” he said, adding that the burden has fallen on residents.

The City Council is expected to hold a public hearing on the ordinance in October.

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