New businesses in Woodland may get a reprieve from part of what they pay to build new developments as the city council passed the first reading of a two-year “holiday” from transportation impact fees.
During its June 6 meeting, the Woodland City Council voted 4-2 to approve the first reading of an ordinance establishing the fee holiday. If the final reading is approved at the council’s June 20 meeting, the ordinance would exempt the collection of transportation impact fees for commercial and industrial development projects through June 30, 2024.
The fee holiday was the culmination of work Woodland Mayor Will Finn has done with the existing business community as a way to expand the city’s commercial and industrial base, the mayor said at the meeting.
“I feel like my job is to spur development and to get folks in here to create jobs,” Finn said.
He said it’s been a project of his since he first assumed mayoral duties in 2016.
“I think we’ve finally got to a compromise,” Finn said.
Transportation impact fees are one of a variety of fees developers pay on new construction. Others include fees to offset impacts on fire protection and schools, as well as parks and recreation.
The fees are a one-time payment that have to go to specific uses. In the case of transportation impact fees, they must be used on streets and roads, according to the Municipal Research and Services Center.
The money collected from the impact fees varies based on what projects are underway. The fees paid for commercial and industrial development is based on use and square footage, according to the city fee schedule. For 2022, the city budgeted $30,000 from transportation impact fees, lower than the $75,000 budgeted in 2021, according to city budget documents.
Public Works Director Tracy Coleman said the holiday won’t have an affect on what her department has planned in the near term. Coleman said the city already has “millions of dollars” from grants coming in for those projects.
“If you’re going to do (the holiday), this would be the time,” Coleman said.
Councilor Carol Rounds was one of four to vote for the approval of the measure.
“With all the work we’ve done to try to get the port area up and running … when you get more jobs in the community, it’s a good thing,” Rounds said.
She added incentivizing more development may benefit the city’s ability to get state funding as it could make Woodland’s current traffic issues more of a priority.
“It may get a little worse before it gets better,” Rounds said.
Rounds was joined by councilors Karl Chapman, Jenn Rowland and DeeAnna Holland in supporting the measure, while councilors Melissa Doughty and J.J. Burke voted against it. Councilor Monte Smith was absent.
Burke said he isn’t in favor of skipping out on revenue that could be used for road infrastructure.
“I feel like this is going to cost us in the long run,” Burke said.
Doughty said bringing in more business to the city would bring more traffic.
“Right now, I know traffic is a huge issue,” Doughty said.
She noted it’s not only an issue at the interstate interchange but also within the city itself. She pointed to the confluence of Walmart, Woodland High School and the city’s industrial area to the south as particularly congested during peak hours.
“When (the industrial area is) getting out of work, school’s getting out and people are shopping. It’s a nightmare,” Doughty said.
