Bonney Lake City Council members voted 5-2 to temporarily freeze Traffic Impact Fee rates at the 2008 level during their March 24 meeting.

The fee is assessed by the city on developers, based on how much additional traffic new businesses are expected to generate.

The automatic, annual TIF adjustment is based on changes to the Construction Cost Index and had increased the rate to $4,864 effective Jan. 1.

Councilman Mark Hamilton and Deputy Mayor Dan Swatman voted against the ordinance.

Hamilton openly objected to freezing the rate because he feels the city’s streets and road are neglected.

“Of all the infrastructure this city has neglected over the massive growth over the past 15 years, our roads and streets have been impacted and neglected the most,” he said.

Hamilton said he knows the city is trying to attract business, but feels there are other areas the city needs to examine. He believes the ordinance implies that traffic impact fees are causing businesses to avoid Bonney Lake.

“Yes, we do have one of the highest TIFs in the area,” said Hamilton, “but we also have an incredibly high SDC (system development charge) for sewers and an incredibly high SDC for our water. We have high fees in general.”

The SDC is the water and sewer connection charge and represents costs incurred to develop the system on the owner’s behalf. SDC revenues are used to update and expand the system.

“I don’t think we ought to start here,” Hamilton said. “If we want to attract businesses, we need to do it more in general. We need to look at reducing our fee structure overall.”

Hamilton said the council compared its fees with Tukwila and Auburn and believes those are not good comparisons. He said Puyallup would be a better example to use.

Puyallup’s traffic impact fees are $180,000, compared to Bonney Lake’s $190,600, according to Hamilton.

Hamilton also noted that Bonney Lake has much higher rates for sewer, water and stormwater than Puyallup, but Puyallup has a large number of restaurant chains near South Hill Mall.

“The cost is what the cost is,” Hamilton said. “If you want to maintain a system for the public, you have to pay those costs.”

Hamilton said he knows high traffic impact fees impact smaller business and believes the city needs to look at establishing an incentive program for them.

“We need to help those businesses,” Hamilton said.

He doesn’t think the fees would cause a large restaurant like Red Robin to shy away from Bonney Lake.

“It is all the fees in general that’s causing the problem,” Hamilton said. “What the city needs to do is look at all its fee structures.”

Hamilton said the city issues a lot of building permits, knowing the negative impact those projects have on streets.

“We need to go back and analyze what our problems are,” Hamilton concludes. “They are much bigger than what this ordinance is addressing.”

Mayor Neil Johnson agreed that the city has neglected its streets and roads for many years.

Johnson added, according to the Construction Cost Index adjustment, the ordinance reflects the current business climate.

Hamilton said some of the city’s past mayors “buried their heads in the sand” while massive growth was happening, without protecting the infrastructure.

“I agree, this is not going to solve the big issue,” Johnson said. “Overall we have to look at it to be competitive. At the same time, we need to protect our infrastructure.”

Councilman James Rackley agreed with Hamilton, but said the CCI used to calculate the TIF for 2009 was based on last year’s high oil prices and the increase is not necessary this year.

Hamilton said the CCI calculations relate not only to transportation, but to water and sewer, also.

“Why did we start with transportation?” Hamilton asked. “Why are we not doing the same thing with water and sewer. The CCI related of water, stormwater and everything else the city does.”

Swatman agreed.

“We fought hard to get a TIF in place in this city,” Swatman said. “It’s the total cost of doing business in the city. Small businesses or any business is important to the city, but it doesn’t mean all businesses are created equal.”

Swatman supports Rackley’s proposal of a target ordinance that selects businesses the city wants to pursue.

Reach Dannie Oliveaux at doliveaux@cmg-northwest2.go-vip.net/courierherald or 360-802-8209.