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Shoreline council to consider reinstating business exemptions for transportation impact fees, directs five-year sunset and data collection
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Summary
Council discussed Ordinance 10-56 to reinstate prior business exemptions from transportation impact fees. Staff recommended adoption; council directed staff to add a five-year sunset, collect data on permit applicants to measure TIF influence, and return the ordinance for action March 23.
Councilmembers signaled support Monday for reinstating business exemptions from Shoreline's transportation impact fees, but directed staff to add a five-year sunset and to collect data on permit applicants before final adoption.
Transportation Manager Kendra Dodinsky told the council the proposed ordinance (10-56) would reinstate exemptions that expired on Dec. 31, 2025 and reminded the council that the city's current TIF model carries payback responsibilities; "Since 2016, approximately $3,200,000 in payback responsibility has accrued," she said, adding that recent land-use data show business exemptions totaling about $870,000 for 2024–2025.
The proposal would reapply previous business exemptions while excluding car-oriented uses such as drive-throughs. Dodinsky said the ordinance does not include an expiration date because the city's current model is more flexible and represents less financial risk than earlier frameworks, but it does not attempt to quantify exactly how many businesses the exemptions would attract: "There's not a way to know that, unfortunately," she said, explaining the permitting process has not historically collected data on whether TIF influenced a business's decision to locate in Shoreline.
Several councilmembers pressed for better evidence of effectiveness. "Is there any way we can look at because I'm looking at this...we're not even keeping record of what has happened in the past," Councilmember Povey said, urging staff to track applicants. Councilmember Scully likewise urged adding a question to permit applications to gauge whether TIF affects siting decisions and said she would support the ordinance with a staff data-collection plan.
Councilmember Roberts proposed a formal review mechanism. "I would support an amendment with a five-year sunset date," Roberts said, arguing a forced review would give future councils an opportunity to reassess categories and effectiveness.
City staff agreed to return the ordinance on March 23 as an action item with a five-year sunset included and with direction to develop a feasible plan to collect data on permit applicants so the council can evaluate outcomes.
What happens next: staff will draft the ordinance with the sunset language and a proposal for data collection and return it for council action on March 23. The council did not take a formal vote Monday; the conversation concluded with consensus direction to staff.
