Seattle City Council — narrowly — rejected a proposal that would have imposed “transportation impact fees” on local builders and developers. The tally was five to four.
If passed, developers in the Seattle area could have faced fees that would have offset the cost of new transportation projects related to new development, according to the Federal Highway Administration.
Opponents of the bid maintained that such fees would disincentivize development and drive up the cost of housing amid an ongoing affordability crisis.
“To be clear, we believe transportation impact fees can be a helpful tool for suburban and rural jurisdictions to pay for infrastructure needs from new development, when there’s no conflict with other critical public goals. That is not the case in Seattle,” Alex Brennan and Patience Malaba said last week in an opinion piece for The Stranger.
“Building homes close to jobs, amenities and services reduces people’s need to drive long distances. It allows more people to get around by walking, transit or cycling,” they continued. “Transportation impact fees risk displacing growth to outlying areas with fewer transportation options, increasing reliance on cars, adding to traffic congestion and forcing our region to spend millions more in road and highway infrastructure to compensate.”
Meanwhile, supporters of the fees argued they posed an alternative to increasing property taxes.
“We all want more housing,” said departing Councilmemebr Alex Pedersen, one of the bid’s biggest supporters. “Property taxes are also a cost of housing for multifamily housing and for seniors on fixed income.”
While the bid was rejected, this wasn’t the first time Seattle City Council has considered imposing transportation impact fees. The concept has been reintroduced on the Council multiple times since 2014, so it’s likely to return again.
If Seattle ever were to impose these fees on developers, the city could raise up to $750 million in a decade, according to the Seattle Times. However, it’s likely the city would also consider exemptions and lower rates for certain projects, including affordable housing developments.
However, the Seattle City Council’s comprehensive plan can only be amended twice a year — so impact fees won’t be put to a vote again for at least six months.