Transportation SDC Update Relieves Small Restaurants

City Council approved the Ordinance Sam sponsored to adopt the Transportation System Development Charge (TSDC) updated rate study. The ordinance establishes the new fee schedule and updates the City Code. All of the changes will become effective January 1, 2008, save one - the use of the Miscellaneous Retail rate for small restaurants - which became effectively immediately.

Under the current TSDC fee schedule, there are two land-use fee categories for restaurants: Quick Service (drive-through restaurants only) and (low turnover) Restaurant. With the new fee TSDC fee schedule, a third category will be used to calculate the rate charged small restaurants: Miscellaneous Retail. Rather than wait until January 1, 2008 to apply that fee, staff began to do so immediately.

The changes to the City's TSDC program, as well as the list of improvement projects, reflects the direct involvement of several hundred stakeholders over the course of the TSDC Update study. The Citizen Advisory Committee (CAC) -- representing a broad spectrum of Portland's residents, business community and interest groups -- oversaw the project from its inception.

The Council considered the following CAC- endorsed TSDC program changes during the public hearing:

• Phase out an existing Transit-Oriented Development (TOD) discount over four years.

• Apply the principles of geographic equity - make sure projects are spread throughout the City - when determining a list of TSDC-qualified improvement projects, while also supporting projects that have identified leverage and/or are regional in nature.

• Keep TSDC rates charged to new development comparable to current 2007 rates

Council also approved a list of 43 proposed capacity-increasing transportation projects. Besides 41 projects recommended by the Citizen Advisory Committee, the project list includes a Twenties (Avenue) Bikeway project and a proposed Flanders Bike/Pedestrian Bridge to serve areas with high potential for future non-motorized trips. (The full list can be viewed on the project's web site.)

The TSDC project list was developed to maximize funding opportunities from local, state and federal sources in order to fund as many projects as possible.

Related Documents

• Citizen Advisory Committee Recommendations
• Memo to Council

Media Mentions

• Panel: Don't raise developer fees to fund transit in Portland - Daily Journal of Commerce, 5-25-07
• Portland City Council considers system development fee hike - Daily Journal of Commerce, 5-18-07

Blog

• "Join the Transportation Conversation!" February 21, 2007
• "The Committee has Spoken, Now it's Your Turn to Talk" August 23, 2007
• "Transportation SDCs Immediately Reduced for Small Restaurants" November 29, 2007

Milestones

• September 5, 2007: CAC Presents Recommendations to Council
• September 26, 2007:  TSDC Update Ordinance goes to Council
• October 3, 2007: Council Approves Update with Amendment for Immediate Implementation

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