红桃视频

Listen to this article

Developers may have to reach deeper into their pockets this summer as the city of Portland looks to boost costs for a range of development fees by 8 percent.

Some other fees鈥� costs, subject to City Council approval, would grow even more. The council is due to hear public testimony on the proposed fee schedule on May 15, with a vote to follow on May 22.

The fees include building permits and fees for electrical, mechanical, and plumbing work. They also include assessments for signs and awnings, noise variances and marijuana businesses.

The proposed increase is more than the Bureau of Development Services typically requests. In recent years, the bureau has often sought a 5 percent fee hike, spokesman Ken Ray said.

鈥淭his year we felt the need to go to 8 percent to cover our costs and maintain service levels,鈥� Ray said. 鈥淪o, it鈥檚 an unusual year in that regard.鈥�

For developers, the fee hike stands to add costs on top of inflation for materials and labor.

鈥淒evelopment fees in Portland are already significantly higher than most jurisdictions that we do business in,鈥� said Cathy Reines, president and CEO of Koz Development, a Washington-based developer of micro-apartments.

A 154-unit Koz building under construction on North Interstate Avenue is on track to be delivered in June, but Reines said the firm has stopped looking for new projects to build in Portland. Instead, Koz has turned to other jurisdictions in the metro area and other markets including Salem.

鈥淚t鈥檚 cost prohibitive,鈥� Reines said of building in Portland. 鈥淎n increase in those fees obviously only exponentially continues to negatively affect that decision.鈥�

The new permit fees would take effect on July 1.

A building permit for a project valued at more than $100,000 would jump from $918.35 to $992.40. An additional fee of $4.91 per additional $1,000 in value will be assessed, up from $4.54.

BDS relies on fee revenue for 97 percent of its budget, Ray said.

The proposal comes ahead of looming upheaval at the bureau. The city agency will soon be transformed into a new organization. Existing BDS staff will be joined by teams from the Parks and Recreation, Transportation, Water, and Environmental Services bureaus. The City Council approved the reorganization, intended to streamline the city鈥檚 permitting system, in August 2023.

A new name and structure for the organization will be announced in coming weeks ahead of a City Council vote on May 22. The reorganization will take effect on July 1.

鈥淏y bringing all of our development permits under one authority, we can reduce the cost and time it takes to get a project done,鈥� Commissioner Carmen Rubio said in a prepared statement Friday. 鈥淭hat鈥檚 good for Portlanders 鈥� and the economy.鈥�

Portland鈥檚 proposed fee hike comes as building fees nationwide have come under legal scrutiny. On Friday, the U.S. Supreme Court ruled in a closely watched case that even permit fees that are legislatively approved are subject to constitutional challenge. Government groups had warned the case risked upsetting their ability to levy fees.

The case arose after a Placerville, California, man was assessed a $23,420 road impact fee for installation of a manufactured home on his property. The property owner, George Sheetz, paid the fee to El Dorado County under protest and sued.

The court鈥檚 ruling Friday may open more municipal fees to court challenge under the Fifth Amendment鈥檚 takings clause. The court remanded the case to the California courts for further clarification.