Issaquah exploring raising fees

Land use and site work permits could go up next year in Issaquah.

Land use and site work permits could go up next year in Issaquah.

Deputy city administrator Charlie Bush said revenues from permits are only covering 57 percent of the cost to issue a permit. The city administration is recommending 100 percent cost recovery.

At a council work session, both council members Tola Marts and Eileen Barber were hesitant to go to 100 percent at once for fear of “sticker shock.” For example, a preliminary plat fee would go from $16,208 to $29,730 and a lot line adjustment would jump to $7,610 from $607.80 per a fee study by accounting firm and business consultants Moss-Adams. The study also recommends a pre-application fee.

Council member Joe Forkner questioned if the fees are reasonable given the service that is provided, while council member Josh Schaer wondered at what point higher fees could be a deal-breaker sending potential business away from the city.

“At what point do you start depressing economic development?” Schaer queried. He said the 100 percent didn’t mean as much to him as encouraging the kind of development Issaquah wants to see.

Development agreements, such as the Issaquah Highlands and Talus, have typically been at 100 percent cost recovery Bush said, which were specified in the agreements. Rowley and Lakeside developments also have different fee schedules, he said.

The idea to phase in the increases over three years is what the council is thinking of proposing.

“I’m not a developer, but I work with them,” Forkner said. “A permit of $100,000 would jump to about $150,000. If we’re going to raise fees it needs to be heavily advertised.”

Forkner said anyone who is already in the door shouldn’t have fees raised on them midway through a project. He suggested waiting until July 1, 2014 to begin to raise the fees.

The issue will be reviewed and discussed at the Dec. 10 meeting of the council’s land and shore committee.