Snohomish, 2 developers pick up tab for unpaid fees

SNOHOMISH — A dozen homeowners no longer face the prospect of paying the city thousands of dollars in fees when they sell or refinance their homes.

The city of Snohomish finalized documents at the end of January making it official.

“It’s good that it’s finally over,” homeowner Adam Kemper said last week. “Its nice after so long to finally be putting a close to this.”

Since December, the city of Snohomish and two developers have paid a combined $112,239 in outstanding sewer and school fees. That’s the entire amount owed in the Kendall and Denny neighborhood.

Until late last year, a dozen households in the middle-class neighborhood on the west side of town were on the hook for $3,000 to nearly $20,000 each. The homeowners had done nothing wrong. They were being asked to pay sewer- and school-impact fees the city failed to collect from developers who built their homes, starting in 2007.

Kemper and his wife, Jamie, own a house with nearly $20,000 in unpaid fees. They said the burden prevented them from refinancing last year, when interest rates hit historic lows.

It wasn’t until the spring of 2012 that the city informed any homeowners about the unpaid fees. By then, some had lived in their homes for four years. Others lived in houses that had been bought and sold multiple times.

The city administration insisted that it was legally impossible to make the fees go away. Mayor Karen Guzak and City Manager Larry Bauman said that state law prevented the city from writing off the unpaid fees, as it would have been a gift of public funds to the homeowners. Furthermore, they said, the city was unable to collect from the now-insolvent companies that built the homes.

On Dec. 3, the City Council voted unanimously to order city staff to change course and avoid making the homeowners pay. They also asked staff to look into collecting money from the builders.

At that point, sewer fees totalled $13,317 each for three houses; school-impact fees for those houses and 10 others exceeded $70,000 combined.

On Dec. 6, one of the original developers, George Fischer, paid the city more than $30,000 in school-impact fees. Another, Jeff Gray, on Dec. 16 paid more than $18,000 in school fees.

The city’s general fund is covering the more than $24,000 remaining in uncollected school fees plus nearly $40,000 in sewer fees, city planning director Owen Dennison said.

The mayor said the city faced a tough decision: Do the right thing by homeowners and break state law, or obey the law and leave the homeowners with an unfair financial burden.

“It’s one of those situations where you look at the trade-offs and there are two bad choices,” Guzak said last week. “I think that council did the right thing and I certainly support the decision that the council made.”

It took until Jan. 31 to record the final documents because the city had to coordinate the agreement with the Snohomish School District, Dennison said.

Larry and Kathryn Coyle, like the Kempers, had nearly $20,000 in unpaid fees on their house. Larry Coyle said he was grateful for the council’s action but disappointed the city only tried to resolve the situation after it hit the media.

“I didn’t see them backing down, and I thought at some point we might have to take legal action,” he said.

Public records from Snohomish city government show city leaders knew about the unpaid fees by 2008 but made no obvious attempts to collect them as houses were bought and sold.

At one point, uncollected fees approached a half-million dollars citywide.

The city now has more oversight in the building department, Guzak said. More than one employee now reviews permits to ensure fees are collected. The mayor said she does not believe any policy changes are needed to provide additional safeguards.

A police investigation initiated in 2012 looked into a forged inspection document for a house in the subdivision. Detectives found insufficient evidence to support charging anyone with a crime.

One house in the neighborhood still has outstanding fees of nearly $20,000, Dennison said. The home is in foreclosure, and the city hopes to collect the money when it sells.

Noah Haglund: 425-339-3465, nhaglund@heraldnet.com.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

Olivia Vanni / The Herald 
The Mukilteo Lighthouse. Built in 1906, it’s one of the most iconic landmarks in Snohomish County.
The Mukilteo Lighthouse. Built in 1906, it’s one of the most iconic landmarks in Snohomish County. (Olivia Vanni / The Herald)
Mukilteo mayor vetoes council-approved sales tax

The tax would have helped pay for transportation infrastructure, but was also set to give Mukilteo the highest sales tax rate in the state.

South County Fire plans push-in ceremony for newest fire engine

Anybody who attends will have the opportunity to help push the engine into the station.

Marysville Mayor Jon Nehring gives the state of the city address at the Marysville Civic Center on Wednesday, Jan. 31, 2024, in Marysville, Washington. (Ryan Berry / The Herald)
Marysville council approves interim middle housing law

The council passed the regulations to prevent a state model code from taking effect by default. It expects to approve final rules by October.

x
State audit takes issue with Edmonds COVID grant monitoring

The audit report covered 2023 and is the third since 2020 that found similar issues with COVID-19 recovery grant documentation.

Bothell
Bothell man pleads guilty to sexual abuse of Marysville middle schoolers

The man allegedly sexually assaulted three students in exchange for vapes and edibles in 2022. His sentencing is set for Aug. 29.

Larsen talks proposed Medicaid cuts during Compass Health stop in Everett

Compass Health plans to open its new behavioral health center in August. Nearly all of the nonprofit’s patients rely on Medicaid.

‘Voter friendly’ election ballots set to go out for Snohomish County voters

Materials will include some changes to make the process easier to vote in Aug. 5 primary.

Community members gather for the dedication of the Oso Landslide Memorial following the ten-year remembrance of the slide on Friday, March 22, 2024, at the Oso Landslide Memorial in Oso, Washington. (Ryan Berry / The Herald)
The Daily Herald garners 6 awards from regional journalism competition

The awards recognize the best in journalism from media outlets across Alaska, Idaho, Montana, Oregon and Washington.

Kathy Johnson walks over a tree that has been unsuccessfully chainsawed along a CERCLA road n the Mt. Baker-Snoqualmie National Forest on Thursday, July 10, 2025 in Granite Falls, Washington. (Olivia Vanni / The Herald)
How Roadless Rule repeal could affect forests like Mt. Baker-Snoqualmie

The Trump administration plans to roll back a 2001 rule protecting over 58 million acres of national forest, including areas in the Mt. Baker-Snoqualmie area.

Edmonds police officers investigate a shooting that occurred at 236/Edmonds Way Thursday in Edmonds, Washington. (Edmonds Police Department).
Jury convicts Edmonds man in fatal shooting of rideshare driver

After three hours, a 12-person jury convicted Alex Waggoner, 22, of second-degree murder for shooting Abdulkadir Shariif, 31, in January 2024.

Jake Goldstein-Street / Washington State Standard
Angelina Godoy, director of the University of Washington Center for Human Rights, speaks to reporters alongside advocates outside Boeing Field in Seattle on Tuesday.
Deportation flights at WA airport up dramatically this year, advocates say

Activists also say King County officials aren’t being transparent enough about the flights in and out of Boeing Field.

Smoke shrouds the hilltops as the Bolt Creek Fire burns through thick forest in 2022 on U.S. Highway 2 near Index. Members of the public can now view video feeds from artificial-intelligence-assisted cameras placed in 21 high-risk wildfire locations around Washington. (Ryan Berry / The Herald)
Online feeds from WA’s wildfire detection cameras are now available

Members of the public can now view video feeds from artificial-intelligence-assisted cameras… Continue reading

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.