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Olivette EDC considers simplifying commercial occupancy and business license fees
Summary
At its July 29 meeting the Olivette City Economic Development Commission directed staff to model simplified business license options — including a flat fee and three-tier scenarios — to assess fiscal impact and administrative ease while seeking to remain revenue neutral.
The Olivette City Economic Development Commission on July 29 discussed options to simplify its commercial occupancy and business licensing fee structure and asked staff to produce comparative fiscal models.
Dawn Doty, the city’s senior planner, told commissioners the current system combines a base fee, square‑foot calculations and add‑ons for certain business types and employee counts and that the charter authorizes business licensing under general provisions, section 8.5. Doty said the city’s effective rate is slightly lower than many comparables and that municipalities vary in approach between per‑square‑foot rates, percentage‑of‑sales models and tiered lists.
"I would like to get direction from EDC on the way that we should pursue changes in this policy," Doty said, noting she had compiled municipal examples for comparison and that an intern in the city manager’s office would do much of the scenario modeling.
Commissioners described the existing matrix as confusing for small businesses and suggested simplification. Some members favored a single flat fee on the grounds that business license revenue is not a large driver of city finances and a flat fee would reduce administrative burden and uncertainty for businesses. Others cautioned that larger employers impose greater demands on city services and that metrics such as square footage or calls on public safety can justify differentiated fees.
Commissioner discussion also raised home‑based and gig‑economy activity: Doty said home‑based operations are currently included in the licensing population but are not broken out by a separate home‑business rate.
Commissioners asked staff to have the city manager’s intern model at least three scenarios — the current structure, a single flat fee (example: $100), and a three‑tier bucket — and return with a cost/benefit comparison showing fiscal impact and administrative implications. Commissioners emphasized a preference for simplification and for options that are financially neutral to city revenues.
The commission did not vote on policy changes at the meeting; rather, members provided direction to staff and requested data modeling for a future decision.
