Astoria approves phase 2 system development charges, commits to housing assistance timeline

The Astoria City Council on April 21 adopted a resolution implementing phase 2 of the city’s system development charges for water, wastewater, storm drainage, transportation and parks, conducted the first reading of an updated SDC ordinance, and voted to pursue an SDC assistance program for housing with a target timeline of "by February" (year not specified).

City Manager Scott Spence told the council the charges are intended to ensure growth pays for impacts to existing utility systems: "system development charges are supposed to pay for the impacts to our current utility systems, which is typically related to growth." Spence said the ordinance also formalizes a 10-year credit for preexisting uses when a new tenant moves into an existing building.

Councilors debated the tradeoff between raising SDCs and the city’s stated goal of increasing affordable housing. "SDCs allow us to compensate for that by asking the people who are doing the new development to pay upfront for the cost of that expansion," Councilor Tyler Davis said, describing SDCs as an equity measure to make developers pay for the capacity they trigger. Councilor Andrea Lunt (mover of the resolution) said she supported the increase because infrastructure needs demand funding but pushed for a formal housing affordability offset, asking the council to commit to a deferral or exemption program by fall 2025; other councilors proposed different timelines during discussion.

After debate, the council voted to adopt the phase 2 resolution and to hold the first reading of the ordinance. Councilor Lunt moved the resolution and Councilor Davis seconded; the roll call recorded Aye votes from Councilor Davis, Councilor Mozzarella, Councilor Adams, Councilor Lunt and Mayor Mary Fitzpatrick. Councilor Davis moved to hold the public hearing and conduct the first reading of the revised SDC ordinance; the motion was seconded and carried by roll call.

Separately, during new business Councilor Lunt moved that the council "commit to launching an SDC assistance program for housing projects by February" (no year specified). The motion was seconded and passed with one abstention. Councilors noted staff and finance time would be required to draft program details and recommended a work session or retreat discussion to define whether the assistance would take the form of deferrals, credits, income-targeted exemptions or other mechanisms. Councilor Davis reiterated the original phasing plan and said he hoped phase 3 implementation could still proceed on the previously discussed December schedule.

Clarifying details recorded in the meeting packet and discussion: the contract/ordinance work on SDCs began after the council formally adopted an initial SDC program in December 2023; consultants from FCS presented background at a March 31 work session; staff recommended a 3‑phase implementation with phase 3 proposed for December 2025; the ordinance includes a 10‑year credit for preexisting uses (example given: a new restaurant occupying a former bank would receive credit for the prior bank trips). The council asked staff to return with detailed options for an affordability program and suggested scheduling the first policy review after the June budget work is complete.

The council’s actions will affect developers and housing projects that would be subject to increased SDCs; councilors emphasized that any assistance program should be explicit about which housing types or income bands are eligible.

Votes at a glance - Resolution adopting phase 2 SDC charges (water, wastewater, storm drainage, transportation, parks): Mover Councilor Andrea Lunt; Second Councilor Tyler Davis; Vote: Davis — Aye, Mozzarella — Aye, Adams — Aye, Lunt — Aye, Mayor Fitzpatrick — Aye; Outcome: Approved. - First reading of revised SDC ordinance (public hearing conducted): Mover Councilor Tyler Davis; Second Councilor Andrea Lunt; Vote: roll call Aye; Outcome: First reading held. - Council commitment to launch SDC assistance program for housing "by February": Mover Councilor Andrea Lunt; Second: not specified in transcript; Vote: Aye (majority), Abstain 1 (name not specified in transcript); Outcome: Approved.

Next steps: staff will return with proposed program options, likely after the June budget cycle, and councilors signaled a need for a work session or retreat item to define eligibility and mechanics for an assistance program.