Pamplin Media Group - Forest Grove park fees double over next three years

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Councilors concerned a sharper parks fee increase might raise home prices too high

Instead of doubling deveopers' parks-related fees all at once Jan. 1, Forest Grove City Council members have decided to spread out the increase over three years.

At its Aug. 14 meeting, councilors considered a proposal to double the city's System Development Charges (SDC), which developers pay when they apply for building permits. The idea is that this money helps pay to create certain services — in this case, parks — the eventual residents of these new homes will use.

The current SDC for parks is $3,000 per unit. The new proposed rate is $6,010.

These park charges will support the city's recently revised 10-year master plan for parks and recreation, which would enhance current parks as well as offer more recreational facilities. Forest Grove is expected to welcome hundreds of new houses and apartment units and thousands of new residents in the next 10 years.

At the hearing, a few development representatives shared concerns that the $3,000 fee increase that's usually added to the cost of a home will be passed on to potential homebuyers, increasing house prices too much.

So councilors adopted a resolution that will increase the fees over a three-year period. Instead of bringing the rate from $3,000 to $6,010 starting Jan. 1, 2018, the rate will rise to only $4,000 at that time. A year later, it will be brought up to $5,000, and finally up to $6,010 in 2020.

Parks and Recreation staff will address likely inflation rates over the next three years with the council in future meetings, determining how that might affect the new charges.

Parks & Recreation Director Tom Gamble estimates the council's decision to use a phased-in approach will cost his department about $650,000 over a 10-year period. Still, the hearing led to a good discussion, Gamble said, and he respects the council's decision.

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