SEATTLE — Seattle Mayor Bruce Harrell has proposed legislation designed to unlock housing and essential development in neighborhoods that lack the utility infrastructure needed for growth.
His office says that this includes more than 25% of Seattle city blocks outside of the downtown core that lack a water, sewer, and/or stormwater mainline.
Under current City code, a developer in an area that lacks this infrastructure must cover the full cost to add it—often more than $500,000—regardless of the project’s size.
This requirement significantly increases the cost of building anything from a single accessory dwelling unit to a school.
Projects facing these costs are 30% less likely to move forward than those that don’t, Harrell’s office said.
“On average over the last 10 years, just 10% of projects funded 76% of development-related utility infrastructure costs. Under the proposed policy, those same projects would have contributed approximately 14%, reducing the financial burden on any single developer and encouraging growth. Seattle Public Utilities (SPU) would pay for the remaining portion through an increase in System Development Charges (SDC) paid by most new developments. With this change, costs for developers would be more predictable and would include an option to pay SDC over time on a schedule that better aligns with typical construction financing. The legislation would not affect utility bills paid by SPU customers,” Harrell’s office said.
To learn more about the proposal, click here.
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