Lake Stevens developers balk at higher fees

LAKE STEVENS — City staff have proposed raising sewer connection fees for new homes from $6,300 to $8,400 per lot, which has some developers saying that could stymy development in the town.

"If this passes, we can’t afford to work in Lake Stevens," builder Ryan McDuffy said at Monday night’s City Council meeting.

The proposed sewer fee would be four times more than in many nearby communities, where the fees range from $960 to $4,386, according to the Master Builders Association of King and Snohomish Counties.

The City Council made no decision on Monday, but expects to vote on the fee increase in a few weeks.

Several builders who attended the council meeting said they agreed that several factors in Lake Stevens have contributed to higher fees, but said they wanted to see the exact numbers.

"It’s higher than anyplace we’ve looked at," said Mike Pattison, government affairs manager for Master Builders.

He said Lake Stevens has some failing infrastructure, outdated sewer lift stations, steep hills, special concerns over keeping the lake clean and mandates from the state Department of Ecology to improve its facilities.

"We respect that," Pattison said. "Development is happy to pay their fair share."

But developers don’t want to pay a larger portion than the city’s existing sewer customers to relieve them of a fee increase, he added.

Rick Vilhauer, the city’s public works director, said, "If growth doesn’t pay for its share, the rates will. That’s what we’re asking for — a fair and equitable share."

Developers said they haven’t seen the figures city staff used for its recommendation, but hope they will before the issue comes up for another vote.

Shirley Allen, vice president of Lazarus Land Corp., which has a 30-home development project pending in the Grade Road area, said the proposed increase would price her company out of Lake Stevens.

"That’s why houses are so expensive," Allen said, adding that there are numerous other fees as well.

If the council approves the increase, it would mean the fee has increased 607 percent since 1995, she said.

The council and developers also have been at odds over another issue. On Monday, the council considered a staff proposal that would leave developers subject to any fee increases that occur after their projects begin.

"That’s a huge issue," Pattison said. "It takes away all certainty on your construction costs and makes it very difficult to get a bank loan."

The Master Builders put together a task force of builders, insurance representatives and a banker, and met last week with Mayor Lynn Walty and city staff. After a discussion, the council agreed to allow developers to be locked into a fee once they receive preliminary plat approval.

"That was a problem solver," Allen said. "I was encouraged that council did listen to the concerns that the development community had regarding planning issues."

Pattison added, "The last piece of the puzzle is the fee increase itself, which we have two weeks to work out. I think we all realize there’s going to be an increase of some sort. I think the goal is to make it as painless as possible."

Reporter Cathy Logg: 425-339-3437 or logg@heraldnet.com.

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