Bend advisory board recommends no Phase 2 transportation-fee discounts for childcare or affordable housing for now

Members of the Bend Economic Development Advisory Board on Feb. 3 recommended that the city not adopt discounts or exemptions for childcare facilities or multiunit affordable housing when it implements Phase 2 of the transportation fee.

The recommendation followed a staff presentation from Sarah Hudson, who outlined the project timeline, data limitations and preliminary revenue impacts if the board chose to exempt those categories. Hudson said the presentation aimed to supply a “decision point recommendation around exemption, or discount options.”

Why it matters: Council directed staff to analyze whether particular nonresidential uses should receive reduced charges. The board’s recommendation will be provided to city council as the staff and elected officials finalize the Phase 2 approach and schedule for adoption.

Key details

- Staff data caveats: Hudson and other staff emphasized imperfect datasets. The transportation fee’s Phase 2 relies on business-registration NAICS data cross‑walked to ITE trip-generation categories; staff said roughly 60% of accounts currently have sufficient data. Hudson said the estimates are preliminary and account-level detail may change the picture.

- Revenue-impact estimates: For standalone childcare facilities, staff estimated the average Phase 1 annual fee at about $450 per facility and the City’s current Phase‑1 revenue collected from standalone nonresidential childcare at about $4,700. Extrapolating across standalone and partial childcare accounts, staff estimated that a 100% exemption for childcare could reduce transportation-fee revenue by roughly $25,000–$35,000 annually. For multiunit affordable housing, staff estimated current Phase‑1 revenue collected from affordable multifamily could be roughly $135,000–$150,000 and that a 100% exemption could reduce Phase‑2 revenue by about $275,000–$300,000 annually.

- Policy context and alternatives: Hudson noted the city already offers System Development Charge (SDC) exemptions for childcare and some affordable housing incentives (including a Parks SDC exemption with an annual cap). The board discussed alternatives beyond a blanket Phase‑2 exemption, including a 50% discount (similar to the city’s existing utility-billing assistance approach), an opt‑in application for operators, moving certain small standalone child-care uses into a lower trip‑generation bin, or addressing affordability via expanded utility-billing assistance rather than a nonresidential fee waiver.

Discussion highlights

- Several board members said the transportation fee is a relatively small ongoing cost compared with other development or operating costs and that SDCs and other capital incentives more directly affect project feasibility. As Brianna (outgoing chair) said during deliberations, “I'm leaning towards no discount just to get that conversation started.”

- Board member Mark said he preferred not to grant a blanket exemption immediately and instead favored returning to the question with more data or targeted assistance: “I would rather have the opportunity to go back and visit that than just, you know, throw a blanket over these exemptions today.”

- Several members proposed pairing any future assistance with the city’s utility-billing assistance program so help reaches end users, and asked staff to explore expanding that program or creating a streamlined opt-in for eligible operators.

Board action

The advisory board voted to recommend that the Phase 2 transportation fee not be discounted for childcare facilities or multiunit affordable housing at this time, and to request that staff (1) continue data modeling required to set Phase 2 rates, (2) report on plans to modernize and expand the utility-billing assistance program, and (3) return to the board with updated numbers and options for review. The motion passed in board vote; staff will forward the recommendation to council as part of the Phase 2 process.

What staff will do next

Hudson said staff plan to present detailed rate scenarios, sample bills and reworked bins at the board’s March meetings (the presentation will include options for handling mixed‑use accounts and accounts with missing business-registration data). Staff also announced outreach to encourage business-registration compliance and said an April informational session for the business community is planned if the council schedule allows.

Public comment

Todd Dow, speaking for High Desert Frameworks in downtown Bend, urged the board to consider downtown-specific retail distinctions and how different retail types (small specialty shops versus larger stores) affect trip generation. He described his storefront’s location and short-term parking situation during public comment. Staff acknowledged downtown mixed-use classification is on the March agenda for more detail and alternatives.

Ending

The board’s recommendation is advisory; final decisions about exemptions, discounts or caps sit with city council after staff completes Phase 2 modeling. Staff indicated the city will continue refining datasets and will present granular rate and bucket options in March to allow the board and council to make a revenue-sensitive decision.