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Development services reports slowdown in new applications, highlights expedited permitting pilot for affordable housing
Summary
Rebecca Horner, director of Development Services, told the Planning Commission that new construction applications have slowed, that the city expects to draw on reserves, and that an affordable‑housing expedited permitting and reimbursement pilot cut permitting timelines roughly in half for one project.
Rebecca Horner, director of Development Services, reported a slowdown in new development applications during the Planning Commission retreat and described how staff is managing the pipeline, permitting timelines and pilot programs.
Horner said the slowdown reflects current market uncertainty—higher interest rates, employer decisions and applicants choosing to hold entitlements—but emphasized that internal review timelines have shortened and that some applications and construction remain active. “What we are seeing right now is a decrease in activity,” Horner said, adding that permit review capacity and inspection demand remain significant because many projects are completing construction.
Horner described an existing building permit extension process (used to preserve vesting under prior codes) and an affordable housing expedited permitting and reimbursement pilot that staff found produced about a 50% reduction in permitting timelines for a recent project. The pilot was initially funded at roughly $300,000 and staff said the new budget would increase that to $600,000; Horner said the council will consider the budget extension and related program vote next week.
Staff summarized major projects: roughly 21 downtown projects were in active review (about 6,000 residential units and about 2,000,000 square feet of office space represented across projects), with a number of Bel‑Red and downtown mixed‑use towers noted (Pinnacle North, Park Row, Main Street Place among the items referenced). Horner said some office districts (notably one Eastgate area example) face high vacancy and that some sites are being repositioned for other uses, including housing—subject to deed restrictions and other constraints.
Why it matters: the slowdown in new filings will affect the city’s revenue and permit‑fee recovery; Horner warned the department expects to dip into reserves and said staff is prioritizing process improvements, training and stakeholder engagement to maintain service levels.
Next steps: staff will continue quarterly developer‑community meetings, adjust process improvements into the work program where code updates are required, and bring the permitting program reimbursement extension to council for a vote.
