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Council hears proposal for pre‑approved DADU plans and a simpler square‑footage tax; staff to pursue community engagement
Summary
Staff outlined a phased plan to offer subsidized, pre‑approved detached‑ADU and cottage housing designs and proposed simplifying Bellevue’s square‑footage tax and moving to annual business license renewals; councilmembers supported the approach but asked for guardrails on design variety, affordability and a careful small‑business outreach strategy.
Bellevue staff presented two information items on March 20 intended to lower barriers to housing and to make business taxation simpler.
Development services described a three‑phase pre‑approved plan program for detached accessory dwelling units (DADUs) and cottage housing: phase one would generate community selection criteria and run a public “hackathon” and outreach; phase two would solicit design proposals and use a volunteer community review panel to rank submissions; and phase three would fund technical review and publish a limited set of subsidized, pre‑approved plans for purchase. Staff said the launch will target a post‑May 2, 2027 publication date to align with the state’s new building‑code cycle.
Councilmembers praised the goal of reducing cost and permitting time but cautioned about design monotony, the need for flexible options for varied lot and grade conditions, privacy solutions for close‑in units, and the importance of professional guardrails in the community review process. Staff said they expect to advance roughly 8–16 plans through pre‑review and to explore mechanisms that encourage architectural variety, sustainability options and small‑business financing partnerships.
On finance, staff presented proposed simplifications to Bellevue’s square‑footage tax, currently calculated through a multi‑step, city‑specific formula. Options include moving to a single calculation (total square footage × rate) and simplifying the exemption formula to a dollar‑for‑dollar credit tied to gross‑receipts tax paid, while checking for revenue neutrality. Staff also proposed moving from a one‑time perpetual business license to an annual renewal and a tiered fee structure to improve contact information for city outreach and reduce backlogs of outdated business records. Planned outreach includes the chamber, the downtown association and the state’s minority and women business offices with recommendations expected in June.
Staff emphasized the goals are administrative simplification, higher compliance and better service, not higher tax rates. Council members asked staff to model scenarios showing impacts on small businesses and to design outreach that reaches businesses not affiliated with trade groups.
What happens next: Staff will begin community engagement and the hackathon/criteria work this year, issue a call for designs later in the year, and launch the pre‑approved plans after technical review and the May 2027 code update. Tax and licensing simplification proposals will be refined with outreach feedback and returned to council with scenarios and recommended thresholds.
