PORT ANGELES — Port Angeles city personnel are considering increasing development fees for some types of housing for the first time in 15 years.
A local developer urged the Port Angeles City Council during a Tuesday public hearing to phase in increases so as to slow the impact on development.
The public hearing was continued until 6:30 p.m. Oct. 17 in council chambers at City Hall, 321 E. Fifth St.
Calvin Goings, assistant city manager, said fees for development services have not been adjusted in more than 15 years. The proposed increases respond to the growing costs for development-related activity and include a two-year modified fee waiver for various in-fill, multi-family households and affordable housing types, he said.
City staff recommended increasing fees by 75 percent of the cost of providing the services versus the full amount as recommended in consultant FCS’s report.
The preliminary 2024 city budget includes $849,900 in permit fee collections, which includes placeholders for budgetary increases already approved by the council and leaves $1,112,500 in the general fund that would be subsidized by tax funds instead of development fees.
Increasing fees by the recommended amount would raise $621,900 and leave $490,600 to be subsidized, according to a staff presentation.
The current development fee for a 1,500-square-foot residence is $3,572. The proposed increase would bring that to $6,601.
The average fee in cities comparable to Port Angeles in population, density and stormwater requirements is $7,699. The same fee in unincorporated Clallam County is $4,135 and in Sequim is $4,054.
The current fee for a 10-lot subdivision is $4,107, which would increase to $8,385.
The average in comparable cities is $9,695. In Clallam County, the fee is $4,870 and the city of Sequim is $5,344.
The city’s current fees are at the bottom of the list of comparable cities and the increase would put Port Angeles right in the middle.
The total development cost per lot in Port Angeles currently is $4,107 and would increase to $8,385. The average is $9,695.
A new business with an existing structure and a conditional use permit currently costs $947 and would increase to $6,300. The average is $5,048.
Kevin Russell, a Sequim resident and developer who works in Port Angeles, urged an incremental approach to raising the fees.
“I’m building a house for a young man who is a school teacher. His permit was $10,347 and that was about five months ago. Under this new system, it will be $18,135,” Russell said.
“I understand the need for the city and the need to bring it back up,” he said. “But I ask you one thing. How do you eat an elephant? One bite at a time. So, rather than try to do it all at once, please consider incremental steps.”
Port Angeles resident Kelly Johnson agreed.
“My plea is to do no harm to the housing market and homebuyers who are purchasing homes or building their own homes,” Johnson said. “Our goal should be to increase all types of housing.
“I don’t understand the rush to jump the fees so high,” she added. “I think a more incremental approach would be better.”
Dennis Yakovitch of North Pointe Construction said the city consultant’s analysis does a lot for increasing fees but not for reducing costs. There’s a huge amount of opportunity in reducing costs, so the city’s analysis is incomplete, he said.
Yakovitch also said he had seen no consideration as to whether the proposed increases would cause a reduction in the amount of development.
Russell’s idea of a phased approach caught the attention of at least two council members.
“I like the idea of phasing them in,” said council member LaTrisha Suggs.
Said Deputy Mayor Kate Dexter: “I would be interested in a couple of phased options, to see what that would look like and what it would mean for the waivers. Because I suspect that potentially could be impacted.”
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Reporter Brian Gawley can be reached at 360-452-2345, ext. 55650, or at brian.gawley@soundpublishing.com.
