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Council reviews University of Oregon study on development fees and options for SDCs
Summary
City staff reviewed a University of Oregon assessment of Baker City’s development fees, highlighting developer concerns about transparency and rigidity and asking council whether to pursue System Development Charges (SDCs) or alternative approaches.
City staff presented a University of Oregon Institute for Policy Research Engagement study on Oct. 14 that analyzed Baker City’s existing development‑fee mechanisms and compared them with peer Eastern Oregon communities.
Staff explained SDC basics: an improvement fee to recover future capital improvement costs, and a reimbursement fee to recover costs already constructed. The study found Baker City does not currently impose SDCs; instead, developers sometimes face charges and unclear processes that can appear rigid. Staff said the study’s interviews with local developers raised two consistent issues: lack of transparency in fee calculations and perceived rigidity in administrative processes.
Staff outlined pros (equitable funding aligned with growth, reduced reliance on general tax revenues, support for long‑term planning) and cons (risk of deterring development if fees are too high, administrative overhead, potential developer/resident pushback). Staff emphasized flexibility in implementation — SDCs could be phased in for water or wastewater only, or for selected infrastructure categories — and requested direction from council to prepare a formal decision and possible implementation plan.
Council members asked for clearer documentation and options that preserve fairness for small projects; staff agreed to investigate alternative cost‑sharing mechanisms, better transparency and potential ordinance language changes to simplify processes for applicants.
