By Dennis Box-The Courier-Herald
After months of discussions, debates and meetings the Bonney Lake City Council passed a rebate program designed to draw businesses to Eastown and the Downtown development areas.
The Transportation Impact Fee Rebate Incentive Program passed unanimously at the Aug. 26 City Council meeting.
Councilman Dave King said the plan is a “pioneering program for Bonney Lake.”
Traffic impact fees are designed to pay for about 50 percent of the road improvements needed after a business is built.
In Eastown, the program will refund up to 50 percent of the transportation impact fee collected by the city. The business must reach at least $25,000 annual sales tax to be eligible for the program.
The program for the Downtown area allows up to 100 percent of the fees returned, depending on the amount of sales tax collected. As in Eastown, the business must collect at least $25,000 annual sales tax.
The Downtown core is a triangular area bordered by 184th Avenue East, state Route 410 and Sumner-Buckley Highway. The mixed use zone is the area surrounding the triangular core.
In the Downtown area, the ordinance reads the developer must “redevelop a portion of the Downtown Core or Downtown Mixed Use zone.” The developer must remove the old structure and build a new one 10,000 square feet or larger.
Mayor Neil Johnson said before the meeting the program was a “good starting point. We will see how the economy bears it out. It should help us.”
The rebate is designed to help Bonney Lake become more competitive with cities that have lower transportation impact fees.
The issue surfaced in December when city officials began hearing rumors that Costco was unwilling to locate in Eastown because of the high impact fees.
During a December City Council workshop, members discussed the rumor that Costco might locate in Sumner, rather than Eastown.
Traffic impact fees for a discount club store could run about $1.5 million for a 120,000-square-foot building. If the store was considered a different type of retailer it could run as high as $2.8 million.
The program is based on similar plans adopted by two Washington cities, Covington and Marysville.
City officials intended the plan to give developers in Eastown another tool to entice Costco and other businesses to the area and development in the Downtown region.
Reach Dennis Box at dbox@courierherald.com or 360-802-8209.
