The Auburn City Council has approved the deferral of impact fees and system development charges for residential and non-residential development to help stimulate economic development in the city.

The council’s decision on Monday was the culmination of more than six months of review and discussion. The fee deferral opportunity will take effect on April 4 and will remain in effect for two years. The council’s action allows for certain fees normally due at time of permit issuance to be paid later in the development process.

The City Council’s action allows for the voluntary deferral by permit applicants for the payment of water, sanitary sewer and storm drainage system development charges and fire impact fees, park impact fees, school impact fees and transportation impact fees.

Permit applicants that opt for the fee deferral will be required to sign and record a covenant that runs with the land to assure that the City gets paid at the appropriate time. As approved, the fee deferral opportunity would be applicable to single-family residential development, multi-family residential development, commercial retail and office development, light and heavy manufacturing and institutional uses, but would not be applicable to distribution and warehousing uses. The period of deferral ranges for the different types of fees from closing of a sale of a residential unit to issuance of certificate of occupancy for commercial buildings. In all instances, however, fees must be paid no later than eighteen months from the date of permit issuance.

The City Council’s action follows similar action by other communities in the Puget Sound and the State of Washington. However, unlike many of these communities, the City Council chose to provide fee deferrals to non-residential or commercial or industrial development. The City Council felt strongly that offering the fee deferral opportunity to both residential and non-residential development would help distinguish the City in the highly competitive regional marketplace and be an effective community marketing tool.

“Similar to other communities, Auburn has been impacted by the national economic downturn affecting housing and commercial building and development. Because of state law, the City has very few incentive tools in its economic development toolbox,” says Mayor Pete Lewis. “The Council’s decision to defer impact fees and system development charges is one tool that can effectively assist owners, developers and builders in this difficult economic climate.”

For more information on the City of Auburn’s fee deferral opportunity, please contact the City of Auburn Permit Center at 253-931-3090 or permitcenter@auburnwa.gov.