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Committee recommends updated multimodal transportation impact fees, adds inflation adjuster and early‑learning credit
Summary
Staff presented a 2026 TIF update tied to the 2025 comprehensive plan: it retools trip rates using the ITE 12th edition, identifies roughly $104M of $207M in projects as TIF‑eligible, produces a per‑person trip rate around $1,770, and the committee recommended adopting new rates, an inflation adjuster, and credits including an 80% affordable‑housing credit extended to early‑learning facilities.
The Public Works & Natural Resources committee voted to recommend an ordinance that updates Bellingham’s multimodal transportation impact fees (TIFs), adds an annual inflation adjustment, and incorporates a credit for early‑learning facilities authorized by recent state law.
Tim Hollen, assistant public works director for transportation, told the committee the ordinance (1) updates TIF calculations to the 20‑year project list adopted in the 2025 comprehensive plan, (2) proposes an annual inflation adjuster, and (3) adds a transportation‑impact‑fee credit for early‑learning facilities. Dylan Casper, the city’s transportation planner, described the methodology: the update moves to the ITE 12th edition trip‑generation manual, converts vehicle trips to person trips using regional travel‑demand models, and attributes a proportional share of TIF‑eligible capital projects to projected growth.
Casper said about $104,000,000 of the $207,000,000 20‑year project list was identified as TIF‑eligible; dividing that sum by projected person‑trip growth produced a rate used in the study of roughly $1,770 per person‑trip. He said the change from the 11th to the 12th edition and the updated project list together reduced many per‑unit fees compared with prior calculations.
The presentation reviewed credits and exemptions: accessory dwelling units are charged at 50% of the principal unit by state law; mixed‑use urban villages and existing pre‑use credits apply; staff recommended extending an 80% credit (already used for income‑restricted affordable housing) to early‑learning facilities. Council members asked where the full set of 166 ITE land‑use codes are documented (staff said they are in the study exhibit and will be adopted into code) and discussed whether some credits are permissive (requiring a developer request) or mandatory; staff said developers typically request and receive credits, but the ordinance language retains a request process.
Council Member Cotton moved the committee recommendation to approve the ordinance; the committee voted by voice and Chair Liliquis said he would forward a positive recommendation to the full council.
The study and Exhibit A include the detailed rate schedule, the land‑use code table and the list of TIF‑eligible projects. Staff noted the TIF calculations rely on growth allocations and regional travel models and that planning and public works will coordinate on any future refinements, including mid‑cycle reviews of the 20‑year project list.
