Burien staff propose major transportation impact fee increase with phased rollout and targeted discounts

Burien planning staff and consultants on May 13 asked the Planning Commission to provide guidance on an update to the city's Transportation Impact Fee (TIF) program that would substantially raise the maximum allowable fee but phase the increase and allow targeted discounts.

Staff and Farron Piers consultants presented a three-part approach: a rate study, an inventory of eligible projects, and code amendments. The consultants said the total project list contains about $275,000,000 in transportation projects; after removing portions tied to existing deficiencies and external growth, the eligible TIF-funded cost is approximately $107,000,000. The rate-study work produced a theoretical maximum of $14,244 per new person trip; staff recommended capping that at 80% (roughly $11,003.95) and phasing increases over several years, beginning at 50% (~$7,000), then a step to ~65% (~$9,259), with the 80% cap reached later and adjusted thereafter by the Construction Cost Index (CCI).

Consultant Kendra Bridal summarized the fee concept succinctly: "these are 1 time charges paid by new development." She and other consultants backed the shift from vehicle-trip to person-trip calculations to better defend funding multimodal projects such as sidewalks, bike facilities and transit improvements.

The presentation included concrete numbers that framed the debate. When commissioners asked how much TIF revenue the city currently collects, Public Works Development Manager Brian Tornow said recent receipts have been small and variable: "In 2024, we received about $28,000; 2023 we had a big project and saw $250,000; 2022 about $100,000; through 02/2025 we're at about $67,000." Staff said those small recent totals are one reason the updated rates would make a meaningful difference in funding the eligible project list on the proposed 10-year encumbrance timeline.

The Commission focused on several discretionary policy choices staff wants direction on. Key questions included: - ADUs: Burien currently does not assess TIFs on accessory dwelling units. State law limits ADU TIFs to no more than 50% of the primary dwelling's fee; staff asked whether Burien should begin charging ADUs at the discounted rate or continue exemption. Commissioners noted ADUs are often smaller and exempt from parking, but also observed that the initial step increase could be a real burden to some homeowners. - MFTE and transit-area discounts: State law requires a mandatory 50% TIF reduction for multifamily tax exemption (MFTE) projects within a quarter-mile of qualifying bus rapid transit (BRT) stations. Burien staff said the city has a broader locally defined "qualified public transit stop" buffer and asked whether to apply the 50% reduction to the broader buffer or limit it to BRT stops only. Staff warned about both the equity and implementation implications of choosing a wider geography. - Low-income housing discounts: A state change allows an up-to-80% reduction for qualifying low-income projects; staff proposed using the city's existing MFTE affordability covenants (owner-occupied at 80% AMI; rental units at 60% AMI) as a way to administer that reduction.

Commissioners pressed staff on market impacts and revenue modeling. Several members suggested a more gradual initial increase to avoid surprising developers and to maintain predictability; others supported more rapid adoption to accelerate needed capital work. Staff and consultants responded that the maximum rate is a mathematical outcome based on the project list and growth assumptions, and that lower percentages would lengthen the time required to complete the projects.

Public commenters during the hearing urged careful consideration of neighborhood impacts. Resident Chesteen Edgar told commissioners the comprehensive plan contains elements that need correction and said "This needs to be cleaned up." Another online commenter, Janelle Lehi, urged caution and attention to long-term neighborhood and ecological impacts.

Next steps: staff said they will prepare draft code language and bring it back to the Planning Commission for a public hearing after Department of Commerce review and SEPA analysis; the staff schedule anticipates a Council introduction of ordinance and a fee-resolution in September so code amendments and the TIF fee schedule can proceed in tandem.

Why it matters: Updating the fee structure could provide a sustained local revenue stream for multimodal transportation projects that staff say are included in the city's capital facilities element, while the discretionary choices (ADU charges, MFTE geography, and low-income exemptions) will shape where and for whom those fees apply.

What happens next: The Planning Commission will be asked for formal recommendations on the discretionary items when draft code language returns; city staff will brief Council and the Department of Commerce as required.