(The Center Square) – The Seattle City Council rejected a council bill that would pave the way for the city to establish transportation impact fees to generate revenue toward infrastructure projects.
The legislation, sponsored by Seattle City Council member Alex Pedersen, would amend the Comprehensive Plan, Seattle 2035, to include a project list, proposed policies and explanatory text to support future implementation of a transportation impact fee program.
Transportation impact fees are charged to new developments to partially fund the cost of new transportation infrastructure needed to accommodate growth.
About 70 Washington state cities already have established transportation impact fees including neighboring Cities of Redmond, Bellevue, Federal Way, Lynwood, SeaTac and Kent.
If the city sets rates that are comparable to other Western Washington jurisdictions and if Seattle experiences similar growth to past years, an impact fee program could generate between $200 million and $760 million over 10 years.
Pedersen’s proposed bill also included proposed amendments that would change the transportation elements of the city’s comprehensive plan to identify deficiencies in the transportation system associated with new development; incorporate a list of transportation infrastructure projects that would address system deficiencies; and establish a policy of considering locational discounts for urban centers and villages and exemptions for low-income housing.
Projects included in the list would be eligible for future funding with revenue from a transportation impact fee program, according to Council Bill 120635.
In June 2023, a survey released by Pedersen showed that 75% of Seattle residents polled supported a 1% tax on new construction, as previously reported by The Center Square.
Anna Zivarts, director of the Disability Mobility Initiative Program, wrote to the Seattle City Council saying that the city is far behind in funding the construction of missing sidewalks and showed support for the transportation impact fees.
“We all want housing – property taxes are also a cost of housing – so the impact fee is a one-time cost, but property taxes keep going for those who are concerned about housing costs,” Pedersen said in the city council meeting on Nov. 21.
Seattle City Council member Dan Strauss said that the establishment of transportation impact fees in the city should be focused on in 2024. Fellow Council member Tammy Morales emphasized the need to further discuss the impact fee in 2024.
The bill failed by a 4-5 vote by the Seattle City Council.
