The May increase in fees has meant developers must now pay $5,817 for each new apartment unit instead of $2,886, the rate that had been in effect since 2000. 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 lawsuit was brought by Matrix Development Corp. of Tigard, Stone Castle Homes Inc. of West Linn and the Home Builders Association of Metropolitan Portland. Specifically, the suit alleges the city did not correctly inventory its parkland. The City denies the allegation.
"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, vice president for public affairs for the Home Builder's Association, in a letter to the city sent prior to the lawsuit. "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. In computing the charge, the group reportedly used the same method adopted by the City Council in November 2000.
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