Back in February, HBA testified before the Lake Oswego City Council that their new Transportation System Development Charge (SDC) methodology, meant to go into effect on July, 1 2017, should have a delayed implementation date and a phasing in of the new rate. HBA is encouraged that the City Council recently voted to incorporate these changes into their TSDC implementation.
The new TSDC methodology Lake Oswego City Council approved in February would place the City’s residential SDC at $14,760 per single family home, the maximum defensible amount in their updated methodology. HBA began reviewing the methodologies used back in November 2016 and was very engaged on this issue, including submitting testimony to Council urging them to consider phased implementation, a delayed effective date, and a lower initial fee rate. After several hours of city staff presentation, HBA member and staff testimony and council discussion, it was the impression of HBA staff at the February hearing that council did not agree with the delay of implementation or a phasing in of the rate. However, the City Council did in fact ultimately vote to phase in only the residential SDC over a two and a half year period.
On June 20, the Lake Oswego City Council voted to delay implementation of the SDC fee to January 1, 2018. This was done to give staff more time to address Council concerns about the Transportation SDC rates. As of now, the phase in dates have not yet been determined.
It would appear that the City Council, after further review of the Transportation SDC rates, were no longer comfortable with the dramatic fee increases for commercial businesses and concerned that it would deter a variety of different commercial businesses from coming to Lake Oswego.
Council will hold a study session on July 19 to further discuss the Transportation SDC implementation, what rate is most appropriate and whether or not all types of buildings will be phased in as well. HBA staff plans to attend and the study session on July 19 and sees it as an opportunity to potentially readdress the overall lowering of the TSDC rate as well.