Gig Harbor Traffic Impact Fees

Gig Harbor, WA October 24 — The Gig Harbor Chamber of Commerce addressed the GH City Council Members on Monday, October 22, inviting them to make a responsible decision when considering additional increases to the Cities Traffic Impact Fees. Allen Woodard, Chamber Treasurer, spoke on behalf of the Chamber asking the Council Members to “think about the human impacts of an onerous increase.” He emphasized that “New homes and commercial buildings won’t pay the higher fee. People—homebuyers and business owners of all sizes—will pay it, this is not an abstract exercise.”

The most concerning element of the proposed maximum TIF is the overall impact it will have on the community. At the maximum rate, a new homebuyer could pay more than $9,000 on top of the current TIF rate—excessive city-imposed artificial inflation added to natural market inflation. Business owners would fair even worse, as they may pay 115% of the baseline TIF for every 1000 square feet of new office space.

If the TIF is too high shoppers may not benefit from new retail and grocery store choices. The city will miss out on millions of one-time and ongoing sales tax revenues, and higher property tax revenues. Developers will cancel community-benefitting plans because they simply won’t pencil out.

Homebuyers, shoppers and small business owners will be collateral damage. And that’s not fair. Will the City say to new homebuyers: “this is how we’re making homes less affordable”? Will the City say to businesses: “this is how much we added to the cost of growing your business”?

Allen reminded the Council that they can choose to approve a rate lower than the proposed maximum—that the door is open to set a reasonable, common sense rate. “We recommend this course of action and endorse Option 1: Auto Capacity Projects Only and we encourage you and your fellow Council members to explore any and all options that would result in a new TIF rate in the $3,500 to $4,500 range—above the peer average and double the current rate. Such exploration could include eliminating 12-year transportation projects that are unrealistic or effectively unrelated to new growth.”

The Council is expected to make a decision before the end of 2018.