Local developer proposes 36-unit storage facility, cites high ICC-based permit valuation

Austin, representing Olivia Storage LLC, told the committee he purchased a five-acre parcel south of Olivia and plans a 36-unit self-storage facility with completion targeted around Jan. 1. "Throughout this whole project I've been keeping the dollars local," Austin said, listing local concrete, banking and electrical vendors he hired.

Austin told the committee the building-permit fee came back at about $8,000, which he called a hardship compared with a 2017 example when a similar family storage building incurred a $600 permit fee. He said the current permit fee was calculated using an ICC (International Code Council) building-valuation calculator and the classification in his submitted plans produced a building valuation of about $830,000 even though his actual construction cost is much lower. "My cost is maybe a quarter of that," Austin said.

Committee members asked how the ICC valuation is applied. Austin explained the building inspector plugs the plan classification into the ICC calculator to produce a valuation that sets the permit-fee basis. The committee discussed the apparent jump in fees and whether the city’s inspection/valuation process should be reviewed to ensure fees reflect local conditions and not an automated national average.

Austin also explained he plans to subdivide the five-acre parcel into three lots (storage, parking/small commercial lot, and a parcel for future commercial sale) and said demand for storage is strong locally, particularly as people transition housing during the community's age-in-place and housing-succession challenges. He said the higher permit fee added financial strain to an already low-margin business model for self-storage.

No formal action was taken on the building-fee question at this meeting; the discussion identified a potential follow-up item for staff to review permit valuation practices.