The Zev, the infamous planned 13-story residential tower at SW Fourth Street and Washington Avenue, just got its SDC fee bill, and it comes out to just shy of $5 million bucks.
The development will include 262 apartments, ground-floor commercial space, and amenities ranging from a rooftop pool to a basketball court and theater.
The project recently secured $94.8 million in construction financing. Now, the newly issued building permit documents reveal another figure associated with the development. $4,988,788.71 in System Development Charges assessed by the City.
(Photo: The Zev Rendering from ARRIS Studio Architects)
SDCs have become a contentious subject. If you have been following the controversy over transportation fees assessed against food trucks and food-cart pods, with some operators facing charges of approximately $15,000 per truck.
This newly released fee shows an interesting comparison to what larger developments, like the Zev, must pay.
According to the SDC calculation accompanying building permit BLD26-00171, issued in early October, the largest assessment is $2,204,148 for sewer infrastructure, followed by $1,885,727.26 for parks. Water system charges total $607,860.50, while transportation charges account for another $291,052.95.
Together, sewer and parks fees account for approximately 82% of the project’s total SDC assessment.
(Photo: System Develpment Fee Charge breakdown for The Zev)
System Development Charges are one-time fees charged by the city that are intended to help fund the public infrastructure required to serve a new development.
Different types of infrastructure use different calculations. How these calculations are made for small businesses has been the main concern for Common Fields and other food truck operators in town.
We’ll go out on a limb and say there probably won’t be a public outcry for The Zev’s SDC fee calculations.
The City’s calculation also offers a financial incentive for paying up front. Under the lien option, the full assessment is $4,988,788.71. The cash payment option provides a 3% discount and a savings of $149,663.66.
$5 million weighs about 551 lbs. in $20 bills. Getting through the picket lines outside City Hall with that kind of cash might not be worth the savings, though.
Spread across the development’s planned 262 apartments, the full assessment works out to $19,041 per apartment. It’s not a perfect comparison as that does not account for the building’s commercial space. But you get the idea.
A $5 million assessment illustrates the scale of infrastructure charges associated with major development. This particular charge for the Zev also provides an interesting comparison with the ongoing food-truck SDC controversy.
The purpose of SDCs is to have new developments contribute toward the infrastructure needed to support growth, rather than placing those costs on existing residents and utility customers.
How those charges are calculated, how they affect small businesses, and how they affect projects of dramatically different sizes will remain part of a larger conversation.
The City publishes its current rates, calculation methodologies, and other information on its System Development Charges webpage.
This article was written by Jackson Hayes, a contributor to The Corvallis Inquirer. Feel free to send us your stories or articles to publish at: editor@corvallisnow.com
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