Astoria council tables SDC increases and orders work session after heated public comment

Astoria City Councilors paused a planned phase of System Development Charge increases on Dec. 16, voting unanimously to table the resolution and schedule a work session to develop exemption options and public education. The discussion followed a staff presentation on SDC collections and a lengthy public-comment period in which builders and housing advocates warned higher SDCs could worsen a local housing shortfall.

Councilor Davis moved to table the proposed SDC changes and to schedule a work session for education and to craft an exemptions program; Councilor Hilton seconded the motion and the roll call vote was unanimous. "Increasing SDCs now without considering how to mitigate their negative impact on housing availability would be counter to the council's work plan goal of housing for all," said public commenter Van Slump. Another local developer, Kerry Johnson, told the council that high property taxes plus SDCs and current construction costs make many Astoria projects financially marginal and urged the council to hold increases until exemptions are in place.

City engineer Nathan Crater said current collections (about $110,000 to date) reflect the program's first year and that many large commercial projects were permitted before the SDC program took effect, meaning significant new collections are expected as permits are processed. Crater emphasized that some projects are in "limbo" because infrastructure capacity is a constraint and that SDCs could be used to fund improvements that enable development.

Councilors debated competing priorities: some urged moving ahead with the phased increase to build the capital fund for stormwater and wastewater upgrades, while others sought an immediate commitment to create exemption pathways for regulated affordable housing and other public-benefit development. "We need exemptions to achieve our housing goals," Councilor Adams said; Councilor Brownson urged phasing in the fees but promised the council would rapidly pursue targeted exemptions.

The council's action: table the SDC changes and schedule a work session at the next available opportunity to educate council and draft an exemptions program and implementation steps. The council asked staff to bring materials to inform a follow-up discussion on timing, likely in the new year.

Why it matters: SDCs fund critical infrastructure upgrades but increase upfront costs for developers. Astoria's choice to pause reflects concern that immediate increases could deter housing production unless paired with precise exemption policies for affordable housing or other city priorities.