The City of Sammamish was praised by builders and developers for passing an amendment to its municipal ordinance which allows more flexibility in the payment of impact fees.

At their most recent meeting on July 21, the council voted unanimously to approve the amendment which would allow developers to defer the payment of the Street impact fee and the Parks and Recreational Facilities impact fee until the properties they are building have been sold.

The amendment applies only to properties built specifically for resale, and is a direct response to a contracting economy which has seen a reduction in developer activity, and a resultant reduction in the city’s impact fee revenue.

In proposing the amendment, it was noted that a diminishing number of new residential units are being built, which adversely impacts the City’s housing stock, local economy and revenue for governmental services.

David Hoffman, speaking on behalf of the Master Builders Association, was one of a number of building industry representatives to voice their support for the amendment.

Prior to the council meeting he said that removing the need to finance impact fees at the beginning of the process would alleviate financing pressures, and encourage developers to proceed with projects in an economy in which they are hesitant to do so.

“These are interesting economic times,” he said. “This ordinance will hopefully open up a little bit of space for our members to keep building, and keep employing.”

Another building industry representative described the amendment as a “new and creative way to address these economic times.”

Although the support of builders and developers would have been nice to hear, for the city, though, the amendment is a way to keep the engines moving for its own revenue generation.

“It’s the rate at which the city grows that this money is needed for,” said councilmember Mark Cross, speaking prior to the council’s vote. He referred to the need of the city to address the impacts of increased traffic, for example.

Cross also said that it need not be a permanent measure.

“In a period of slow growth, this is a good time for us to be flexible in how we collect these fees,” he said. “But there needs to be an understanding that when the pace of growth increases, we may have to return to ways of collecting fees as in the past.”

Councilmember Fellinge echoed Cross’ comments, acknowledging the city’s unusually heavy reliance on residential construction and property tax.

“We should have growth pay for itself, rather than existing property owners, to subsidize that growth.”

The amendment includes a sunset clause, and will be up for review at the end of 2010.