Charges slashed to spur development

While other cities reduce or defer developer fees, Molalla considers waiving them for a year.

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In an effort to attract new developments, the Molalla City Council is considering waiving its system development charges for a year.

It’s a telling indication of how far Oregon cities and counties – many of which have reduced or deferred SDCs – are willing to go in order to encourage investment and development.

Molalla City Manager John Atkins first considered proposing a deferral or reduction of Molalla’s SDCs to attract developers. But after polling other cities that have either deferred or reduced SDCs, Atkins believes a moratorium would be a bolder gesture.

“The feedback is that partial discounts and deferrals on SDCs haven’t had any impact on development,” Atkins said. “I think a moratorium would be more attractive. Anytime you can completely forgive a fee that is a significant percentage of a project budget, you have made it that much more attractive to a developer.”

Read the full story at the Daily Journal of Commerce.

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