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Council approves first reading of Hollow Road lot‑split agreement but asks legal questions about fee‑in‑lieu use
Summary
Council advanced a development agreement for a two‑lot split on Hollow Road that would allow the applicant to pay a fee‑in‑lieu rather than immediately building curb, gutter and sidewalk; council asked for legal clarification about whether the fee must be spent specifically on Hollow Road improvements and the timeframe for using such funds.
The council approved first reading of a development agreement that allows an exception to the city’s standard requirement for curb, gutter and sidewalk along a two‑lot split on Hollow Road (R1A). Staff and the planning commission recommended allowing a fee‑in‑lieu tied to the required improvement, citing an ombudsman correspondence that raised questions about whether requiring the improvement on both the existing and new lot would be an unlawful exaction.
Council debated whether the fee must be restricted to improvements on Hollow Road, how long the city could legally hold the fee before spending it on a project, and whether the ombudsman’s correspondence constituted binding legal direction. Several council members urged staff to seek a formal legal opinion from the city attorney and to document any constraints on fee use in the development agreement. The council approved the ordinance on first reading and asked staff to return with legal clarification before final adoption.
What happens next: staff will request a formal legal opinion and confirm whether a fee‑in‑lieu can be tied to the Hollow Road corridor and whether any time limit should be recorded in the agreement before the council considers final reading and recording.
