Oak Ridge adjusts building permit fee calculations to ensure fairness and accuracy

The Oak Ridge City Council is taking steps to ensure fairness in its building permit fee structure, as discussed during the work session on March 19, 2025. City officials emphasized that the proposed changes are not aimed at increasing fees but rather at correcting discrepancies in how fees are calculated based on building values.

City Manager Heaman introduced the topic, explaining that the current system allows applicants to self-report the value of their construction projects, which has led to instances of underreporting. This has resulted in lower fees than what might be appropriate. To address this, the council is considering adopting a standardized approach that utilizes published building cost data from the International Code Council (ICC). This method is commonly used by surrounding jurisdictions and is expected to create a more equitable fee structure.

For example, a recent permit application for a house reported a construction value of $110,000, while the ICC's calculation suggested a value of $317,000. If the new fee structure is implemented, Oak Ridge's fees would be approximately 19% lower than the regional average, promoting a competitive environment for builders and developers.

The council's recommendation aims to align Oak Ridge's fees with those of neighboring areas while ensuring that the calculations reflect actual construction costs. This move is part of a broader effort to improve the business climate in Oak Ridge and to dispel any perceptions that the city is difficult to work with.

As the council continues to refine the fee structure, officials are committed to transparency and fairness, ensuring that all stakeholders have a voice in the process. The next steps will involve further discussions and potential implementation of the new fee calculation method, which is expected to enhance the overall efficiency of the permitting process in Oak Ridge.