Council asks staff to analyze fair-share development fees after ADU affordability concerns

Several councilmembers raised concerns that the town's recreation fair-share development fees could pose a barrier to building accessory dwelling units (ADUs). Members noted that a revaluation in the town increased the underlying land-value figure used to compute the fee, pushing a single-household/recreation fee for small units toward $5,523 in staff slides. Councillors asked for a closer look at whether the fee should be phased out for ADUs, a new lower category for one-bedroom units, or other targeted relief for homeowners pursuing ADUs.

Finance staff said the town historically projects fair-share revenue using a five-year average and that the current fund balance in the fair-share recreation fund was cited as approximately $82,000; staff also noted that fair-share funds were used previously for phase 1 of Old Mountain Field (roughly $1.1—1.2M in past phases). Council requested: (1) the revenue impact if the council adopted a third lower fee for one-bedroom ADUs; (2) a revenue estimate if the town exempted ADUs from the fair-share recreation fee; and (3) clarity on how the fees have been allocated historically and planned future allocations if balances change.

Councilmembers framed the questions around local housing policy and whether fees intended to fund recreation should be modified to support affordable housing objectives. Staff said ordinance change would be required to amend the fee schedule, but they can provide data and analysis in advance of any ordinance action. No ordinance change was proposed at the work session; staff will return with data.