News Update

POSTED: Tuesday, Oct. 27, 2009

Eager to spur growth, Blaine eliminates impact fees on development

BLAINE - After several weeks of debate, the City Council decided to eliminate impact fees throughout Blaine, in a 4-3 vote Monday night, Oct. 26.

Council members Paul Greenough, Charlie Hawkins and Harry Robinson dissented, with others supporting the citywide elimination of fees requested by Fairhaven developer Ken Imus.

The council recently eliminated water and sewer connection fees as another concession to the developer. Imus has he would like to develop properties in Blaine.

"This is a risk by our council, and we are asking developers also to take a risk," Councilman John Liebert said. "We need to get the businesses to get the revenue stream coming into the city."

Impact fees are collected from builders to help pay for developments' impacts on parks and roads. Mayor Bonnie Onyon said the city could go about four years not collecting the fees, without having a noticeable impact on parks. She hopes by that time the fee elimination will have spurred development and provided the city with additional revenue.

No detailed studies have been done on the financial impact of removing the fees, but it's estimated the city could lose up for $1.5 million of revenue over the next 20 years, or about $75,000 a year. According to city figures, Blaine has brought in about $500,000 in traffic and park impact fees since 2004.

Blaine residents at the meeting seemed split on the idea of eliminating fees, especially with the recent announcement that the city might increase its property tax revenue by 1 percent.

"I think there isn't a single person in Blaine who doesn't want to see the city thrive," said resident Penny Senov. "It does seem a little odd to remove impact fees and ask to increase property taxes. Why does it have to be us giving it all upfront? It's a pretty hard pill to swallow."

Several local business owners spoke in favor of eliminating the fees, hoping that development could revive the struggling city.

"Blaine has been on a downhill slope for awhile now," said businessman Art Lawrenson. "We have to do something to change it. No matter which way you go on it, this will have a major impact on Blaine."

Imus, who owns Jacaranda Corp., and colleague Kathleen Hill, have applied for a permit to do work at the former Worldly Treasures Furniture store at 638 Peace Portal Drive. Because it is an existing building, that project would not have been affected by impact fees, said Michael Jones, Blaine's community development director.