Auburn proposes revised transportation impact fees with downtown discounts, transit proximity reductions and new payment options

City staff presented a comprehensive update to Auburn’s transportation impact fee (TIF) program on July 28, proposing new code language and a revised fee schedule that separates downtown and non‑downtown districts, applies reduced fees in frequent‑transit areas and offers new payment and credit processes intended to increase transparency and predictability for developers. The update reflects work to align the TIF program with Auburn’s recently adopted Comprehensive Transportation Plan and new multimodal level‑of‑service standards. Staff said the plan identifies 39 capacity projects through 2044 with a total project cost of about $200 million; after allowable TIF apportionment and limits, about $81 million of that is attributable to development that can be recovered via the TIF program. James, who worked on the fee model, told the council the downtown district was carved out to reflect smaller per‑trip impacts inside the expanded downtown boundary; “when we divide the total cost over the number of trips, we are proposing a fee per trip of just over $3,800” for downtown, compared with roughly $6,000 per trip outside downtown. Staff said the downtown per‑unit examples translate into roughly 36% lower fees for a mid‑rise multifamily project in downtown compared with current citywide rates. To better support development and ridership near transit, staff proposed a transit‑proximity discount for areas with the highest transit level of service (frequent service, <15‑minute headways). The proposal retires a legacy Lakeland Hills PUD schedule and consolidates schedules into two districts; it also adds web‑based calculators, clearer published steps for businesses not listed in the fee table and an expanded five‑year window for crediting a previously existing use demolished before redevelopment. Staff also proposed flexibility measures: codified payment plans (up to 24 months at prime interest rate, current prime ~7.5%) and a deferral mechanism keyed to building permits rather than business licenses, intended to increase predictability. The proposed code adds an administrative appeal step before a hearing examiner review to speed dispute resolution. Council members asked how the transit proximity area would be revised over time; staff said it would be amended through comprehensive‑plan updates (five‑ to ten‑year cycle) and that the city will update the fee annually by construction‑cost escalation indices rather than frequent programmatic recalculation. Staff acknowledged TIFs will not fully fund growth‑related projects and outlined other funding sources—grants, TBD revenue, developer agreements and loans—to bridge the gap. City staff will bring ordinance language to council for consideration next week and return in October with the complete 2026 fee schedule and related administrative details for adoption.