Newport limits exactions on small projects in code change; council records one dissent

The council voted April 20 to adopt an ordinance amending the municipal code to reflect House Bill 2658 provisions that limit certain local government exactions for small projects. Community Development Director Derek Tokos explained the change would bar required frontage improvements for projects with construction valuation at or below $150,000 (indexed for inflation), while preserving ADA requirements, right‑of‑way dedication and system development charges.

Tokos said the policy was intended to avoid pricing out modest home improvements: “They didn't want small projects like that to have exactions that price people out from doing the small projects.” Councilors pressed the staff on whether the city could still capture sidewalk or gutter improvements through nexus and proportionality tests on larger projects. Tokos and staff said the legal standard for exactions requires a rational nexus and rough proportionality and that very small projects rarely meet that test.

One councilor voiced formal opposition before the roll call: “I am opposed.” The motion otherwise carried on voice vote. Council members asked staff to continue evaluating fee schedules, potential targeted exceptions, and the practical infrastructure impacts as part of future work.

The ordinance was presented as consistent with current practice in many cases, and staff said they would monitor whether fee schedule adjustments were advisable to address longer‑term infrastructure costs tied to increased density.