System Development Charge program review
Summary
The $3,116-per-trip transportation fee was hitting small businesses with bills of $20,000 to $161,000, and owners said it was killing startups before they opened. The Council suspended the program entirely and promised to redesign it with business input.
At a glance
- Total mentions
- 6
- Last 30 days
- 0
Last discussed Jul 6, 2026.
Impact analysis
Suspension eliminates fees that had reached $161,000 for a convenience store, shifting growth-related transportation costs to existing ratepayers until a replacement is designed.
Small business owners, food carts, and entrepreneurs facing change-of-use charges.
Existing residents and businesses may ultimately bear more of the cost of growth-related road improvements.
Mentions & discussions (6)
City Council - Jul 6, 2026
The $3,116-per-trip transportation fee was hitting small businesses with bills of $20,000 to $161,000, and owners said it was killing startups before they opened. The Council suspended the program entirely and promised to redesign it with business input.
City Council - Jun 22, 2026
The council froze transportation SDCs last meeting and now plans to consider eliminating them entirely at the next meeting — a move that could lower costs for new development.
City Council - Jun 15, 2026
New and expanding businesses were facing transportation fees as high as $23,000-$344,000. The council froze the charge at $3,116 instead of the scheduled $4,674 and will spend two to three months reworking the methodology.
City Council Work Session - May 26, 2026
Councilor Mazzarella asked for a broader look at the SDC program, including possible adjustments and impacts on renovation projects. Staff suggested separating any immediate decision from a full future review.
City Council - Mar 2, 2026
Developers currently pay SDCs upfront when permits are issued, which can add serious carrying costs to projects. The council wants staff to draft an ordinance letting some developers defer payment until later milestones, likely as a two-project pilot aimed at housing, with draft language due by May 2026.
City Council - Feb 2, 2026
New development will pay the full third-phase fees for water, sewer, stormwater, transportation, and parks starting July 1, 2026. Fees scale with home size, and Council is exploring a deferral program to ease the hit on small projects.
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