Bothell council backs deeper affordable‑housing fee reductions and change‑of‑use exemption for transportation impact fees

Bothell — City staff and consultants presented proposed updates to Bothell’s transportation impact fee program at a study session Oct. 21, and council gave direction to pursue the more generous affordability reductions and a change‑of‑use exemption while limiting a modest transit‑area discount to multifamily development.

The updated fee study, based on a 12‑year project list tied to the 2024 comprehensive plan, calculates growth‑eligible costs and translates those into per‑trip fees. Consultant Kendra Reeland and staff explained how grants, project scopes and growth shares were used to reach proposed rates. Reeland said the city’s 2026 citywide fee ‘‘is a slight increase over your current impact fee,’’ while development within the proposed reduction areas would pay a lower rate.

The proposal includes three policy levers: a reduction zone for development within a quarter‑mile walk shed of frequent transit and designated growth centers (recommended 10% reduction there), an affordability reduction schedule for deed‑restricted units, and a change‑of‑use exemption for reuses that do not substantially increase trip generation. Under the affordability proposals staff presented two alternatives: a lower option (10% reduction for 50–80% AMI; 30% for 30–50% AMI; 50% for <30% AMI, with the multifamily tax exemption handled per state law) and a higher option (larger percentage reductions including up to 80% for the deepest affordability tier). Staff estimated remaining projected fee revenue would still fund the city’s planned projects over the 12‑year horizon in either case.

Council members pushed staff for clarity on where discounts should apply. ‘‘I would not like to incentivize single‑family homes within a quarter mile walk shed of transit,’’ Council member Kurt said; that suggestion won support during deliberations. Several council members also said drive‑through and other auto‑oriented commercial uses should not receive the transit‑area reduction.

On the change‑of‑use exemption — language modeled on neighboring jurisdictions and the city of Kirkland — staff said the exemption would apply when an existing building is reused without demolition or an increase in building area (for example, converting a low‑trip‑generating retail or hotel into housing) and would not apply to demolish‑and‑rebuild projects. Staff estimated a modest fiscal impact from exemptions based on recent local trends (two similar downtown change‑of‑use requests in the past eight years and an assumed neighborhood reuse every two years) and judged the net revenue still sufficient to deliver the listed projects.

Council direction and next steps

Council indicated clear support for the higher affordability reduction schedule and for adopting the change‑of‑use exemption. Members asked staff to limit the 10% transit‑area reduction to multifamily housing (not single‑family) and to exclude drive‑through and heavily auto‑oriented commercial uses from that transit discount. Staff agreed to model one or more illustrative scenarios requested by council — for example, conversion of an existing hotel to deeply affordable housing — and return with revised language, a projected fiscal impact, and an updated ordinance text for adoption consideration.

What remains

No final ordinance or fee schedule was adopted Oct. 21. Staff said their aim is to hold a public hearing and bring an adoption ordinance before council in December, with effect ideally by Jan. 1, 2026. The council‑directed modeling on conversions and the refined transit‑area eligibility will be incorporated into the next staff report.

Attribution

Quotes and summaries above are drawn from the Oct. 21, 2025 Bothell City Council meeting public record and staff presentation.