The unanimous decision means developers will now have to pay $5,817 for each new apartment unit. Since 2000, the fee has been $2,886 per unit. For single family homes, the fee was raised from $4,082 to $8,228.

In addition to parks, system development fees are charged to developers for new street, sewer and water facilities. The city says the increased fee means the city will now be able to recover the full cost of maintaining the quality of life for its residents.

The Home Builders Association of Metropolitan Portland opposed the fee increase. "It's OK to ask new development to pay for additional infrastructure capacity to serve the direct needs created by a growing population," says Kelly Ross, the association's vice president for public affairs, in a recent letter to the city. "However, the charges can't be used to backfill needs and deficiencies that already existed before growth occurs or to fund a higher level of service than exists prior to growth."

Ed Cebron and Courtney Black of Redmond, Wash.-based Financial Consulting Solutions Group assisted the city in figuring its new system development charge for parks. They reportedly used the same method for computing the charge adopted by the City Council in November 2000.

Continue Reading for Free

Register and gain access to:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.