County staff to speed up update to employee housing impact fee; commissioners back quicker phase‑in and outreach

San Miguel County planning staff on May 14 recommended the county resume annual adjustments to its employee housing impact mitigation fee using a market‑gap methodology and asked for direction on whether to phase a catch‑up increase.

Kaye Simonson, the county planning director, explained the fee is calculated as the difference between what an average household can afford and what a market unit would cost per square foot; the formula uses a three‑year sales average to smooth volatility. Because the fee was not updated annually while litigation was pending, staff presented an updated computed mitigation rate of about $928 per square foot for 2025 — up from the 2022 figure of about $527 per square foot.

Commissioners asked for a faster ramp to catch up to the calculated rate. The board signaled support for a six‑month phase‑in that would split the difference between the existing and new rates from July 1 through December 31, 2025, with the full updated rate to take effect after that; commissioners also said they prefer to retain an annual cadence for future updates rather than moving to a biennial schedule.

Staff committed to a public engagement strategy targeted at building professionals, contractors, the real‑estate community and the public: display ads, social media, county emails and an invitation to discuss the change on county outreach channels. Staff will return with a formal adoption package and public notifications; commissioners asked staff to bring the item back for formal action at the June meeting.

Commissioners emphasized they want clear, advance notice for active projects and applicants: completed permit applications received before the effective date will be grandfathered at current rates; incomplete applications will be subject to the new phased rate schedule.