Stanwood hopes to tempt small businesses by waiving fees

STANWOOD — Hair salons, day-care centers and bistros line downtown streets. Old rundown buildings are restored and transformed into new businesses. Unique shops and small offices fill Stanwood’s downtown corridor.

In pursuit of this vision, the Stanwood City Council passed an ordinance Thursday that would make it easier and cheaper for small businesses to renovate old buildings and move downtown.

The council unanimously voted to waive some transportation impact fees for projects less than 10,000 square feet that involve the renovation of downtown buildings built before 1980.

The fees vary widely and are based on the amount of traffic each business is expected to generate. While the fees may be just $2,000 for a company that doesn’t have a lot of patrons dropping by, they can add up to tens of thousands of dollars for businesses such as day-care centers that have a lot of people coming and going during the day.

For some would-be business owners, the fees could be the difference between locating downtown or somewhere cheaper, said Kathy Ready, owner of Ready Mortgage.

Last year, she was one of a handful of developers to benefit from a temporary transportation impact fee waiver. She transformed an old Victorian home with hardwood floors and foundation problems into a cozy office with a wraparound porch and carpet.

If the city had charged her a transportation impact fee, she said, she may not have built downtown.

“If you’re talking about $5,000 or $6,000, I probably would have turned around and sold this building and let someone else deal with that,” she said. “When you’re an individual with a small business and you’re renovating … it would be prohibitive.”

The move is part of a larger economic development plan that has been in the works since 2005, when Stanwood residents banded together to oppose a proposed Wal-Mart. When the chain didn’t build in Stanwood, business and civic leaders began focusing on creating a quaint, touristy downtown modeled after La Conner.

Although a few new businesses have moved in, downtown Stanwood is still a hodgepodge of homes, offices, restaurants, thrift stores and abandoned storefronts.

Mayor Dianne White is hopeful that the waiver will prompt some business owners to reconsider moving downtown.

“Hopefully we can emphasize that this is something new,” she said. “Take another look at us.”

Stanwood Community Development Director Stephanie Hansen estimates the city will lose around $40,000 a year for public projects because of the waiver. She hopes to make up the difference through grants and other avenues.

Dale Burt, co-owner of Mad Dawg Paintball, is glad the council decided to waive the fees, but thinks the city should be doing more to get businesses and shoppers downtown. Burt would like the city to adopt a Scandinavian theme and do away with two-hour parking limits.

“Anything to get small businesses into Stanwood would be very advantageous to the town,” the downtown businessman said. “Small businesses are being hurt by the big dogs coming in.”

Kaitlin Manry: 425-339-3292 or kmanry@heraldnet.com.

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