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Builders warn Sandy council SDC hikes threaten projects, urge phased approach or grandfathering
Summary
Developers and the Sandy Housing Alliance told the council that the city’s SDC increases — which some said rose from about $18,000 to $54,000 per unit last year — are making projects financially infeasible and urged phased implementation, exemptions for approved projects, or other mitigation; councilors balanced those appeals with concerns about shifting costs onto existing ratepayers.
Multiple developers and housing advocates testified that recent increases in system development charges (SDCs) threaten project viability and the local housing pipeline.
Mac Even, president of the Sandy Housing Alliance and a local developer, told the council that a dramatic SDC increase adopted a year earlier effectively multiplied charges per unit and that associated park SDCs and potential transportation SDC changes could push total permit costs “north of $90,000” per unit in some cases. Dave Vande Hay and other project representatives asked the council to consider phasing in higher fees or exempting projects that already have approvals to allow builders to finish ongoing projects.
Developers described a steep drop in building permits since the April 2025 increases and said high SDCs combined with higher material, labor and financing costs are stalling construction. Councilors acknowledged the burden but warned that lowering SDCs shifts costs to existing utility ratepayers and can undermine funding for necessary water and wastewater projects. Some councilors proposed alternative compromises such as revisiting park SDC schedules or targeted phasing; staff said refunds would be issued to a small set of recent permittees and that future wastewater facility plans will be considered in May/June.
