(The Center Square) – The City of Redmond is set to discuss a proposed use fee for any business utilizing space on city sidewalks, travel lanes and parking lots.
The bill would implement a $2 per square foot use fee and a monthly 75 cent per square foot fee for the private use of right-of-ways (ROW).
The city has allowed ROW to be used for the benefit of private businesses without charging a use fee or excise tax. However, those in favor of the bill say construction activity and outdoor dining on ROW limits public access to sidewalks, bike lanes, and other public-owned spaces.
According to a memorandum, the proposal creates an incentive for businesses to minimize private use of public ROW to what is necessary.
Any business that has outdoor dining will have to continue paying a flat-rate permit fee of $671 in addition to the square footage-based ROW use fee.
For example of costs to businesses using ROW, the extended closure of a 320 square foot parking area would cost the flat-rate fee of $671 plus a $640 extended ROW use fee, along with an additional 12.84% excise tax, which totals to approximately $1,394 annually for a business.
Seattle does not have a use fee, but it assesses a $1,286 permit fee and $24 in excise tax, bringing a total for a business to use a ROW to $1,310.
An example of the costs for construction activity on ROW provided on the city’s website shows a six-foot sidewalk closed for 100 linear feet for a period of three months, the extended use fee would be 600 square feet multiplied by 75 cents per square foot multiplied by three months plus a 12.84% tax. This totals approximately $1,524 per month.
The proposed ROW use fee is issued in other King County cities, including Bothell, Seattle, Bellevue, and Kirkland. Redmond’s proposed $2 fee would match the City of Bellevue’s $2 ROW fee.
The Redmond City Council will discuss the proposed legislation on Tuesday night, but no action will be taken. If passed, the fees would be implemented at the start of 2025.
