Shoreline council revises park impact fee structure, adopts Alternative 2A and exempts adult family homes

On Monday, Jan. 27, 2025, the Shoreline City Council adopted Ordinance 1013 to modify the city’s park impact fees and the methodology used to calculate them. The ordinance sets new PIF rates effective July 1, 2025, adjusts the square‑footage rate categories, and preserves an exemption for adult family homes; council adopted a councilmember amendment (Alternative 2A) to change the square‑footage ranges used in the fee table. The ordinance passed unanimously.

City staff described the change as required and enabled by recent state law amendments and by updated parks, recreation and open space needs identified in Shoreline’s PROS and comprehensive plans. Katrina Steinle, senior management analyst in Parks, Recreation and Community Services, said park impact fees are a one‑time payment by new development to fund capital costs for parks and open space needed to serve new residents. Staff recommended a square‑footage methodology with a 25% reduction from the maximum allowable rates; the staff memo showed examples of alternate structures and reductions, and also proposed exempting adult family homes to remain consistent with the city’s transportation impact fee policy.

During council discussion, staff explained how the new state law affects additions and remodels: additions or remodels that increase finished or livable square footage can trigger PIFs under the square‑footage methodology, and fees would be calculated on the net increase by reference to the new total house size (the differential method). The city attorney confirmed the legal interpretation that square‑footage methodology requires applying fees when capacity increases, though applicants may submit independent analyses in specific cases. Council members asked for clarifications about accessory dwelling units (ADUs): staff said ADUs would be charged up to 50% of the rate that would be imposed on the principal unit on the lot, and the 25% reduction from maximum rates would generally apply before the ADU discount.

Councilmember Scholey moved and the council adopted Alternative 2A, changing the lower square‑footage bands used to calculate fees (the materials provided to council included several alternative tables; Alternative 2A was adopted by amendment). Staff noted one example shown in materials where expanding the lower range to units under 1,500 square feet would change a sample fee to $4,407 under the staff’s rate matrix; council discussed that smaller units (studios and one‑bedrooms) are common in Shoreline and that rate structure choices can shape incentives for larger family‑sized units.

The council voted unanimously to adopt Ordinance 1013 as amended. The ordinance sets the effective date of the new rates as July 1, 2025, retains the adult‑family‑home exemption in the proposed ordinance, and directs staff to implement the new rate tables and processes.

Key points: additions and remodels that increase finished square footage may trigger fees under the new square‑footage methodology; ADUs are charged at up to 50% of the principal unit’s fee after applicable reductions; the council chose the Alternative 2A square‑footage table and kept a 25% reduction from maximum rates in staff materials; adult family homes remain exempt. The council’s votes were unanimous.