Developers seek SDC buy-down for Timber Lofts; council signals $2.75 ceiling, declines permit subsidy
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Summary
A market‑rate, four‑story mixed-use proposal at Fifth and Forest requested an SDC and permit subsidy; councilors indicated support for an SDC buy‑down capped at $2.75 but declined to cover permit fees.
Developers seeking to build a four‑story mixed-use project at Fifth and Forest (market-rate apartments over ground-floor commercial) requested a subsidy package to make the proposal feasible.
Staff estimated system-development charges (SDCs) of roughly $273,000 and permit fees of about $100,000 for the project. The developer asked for up to $550,000 to cover SDCs and permits. Councilors indicated they were not comfortable funding permit fees but were willing to consider approving the city program's established SDC buy‑down at a ceiling of $2.75 per SDC unit equivalent.
Staff noted the project would add commercial floor area on the ground floor and roughly 25 on-site parking spaces plus additional shared parking through agreements. Councilors discussed the public‑benefit tradeoffs for funding market‑rate housing in downtown; some said the commercial component helps the urban renewal tax base and improves the project's fiscal case.
No binding subsidy was approved at the session. Staff said the developer will appear at the council meeting on Tuesday to request a formal SDC buy‑down consistent with the program; councilors signaled preference for the program cap and declined the permit subsidy request.