Earlier this week City Council gave initial approval to a revised System Development Charge (SDC) methodology and fee schedule. This discussion and vote are the culmination of over a year of work by City staff and stakeholders to revise how SDCs are charged for residential and commercial development. Per Oregon law, cities have flexibility to choose methodology and policy approaches that reflect community values pertaining to growth.

On the residential side, fees will be assessed in tiered structure based on square footage with lower rates for smaller homes, thereby incentivizing smaller units. Multi-unit homes will be charged a per dwelling unit rate and Council opted to continue an exemption for affordable housing units.

More significant changes were adopted on the commercial side as the methodology underwent major adjustments from prior versions. Notably, categories of use were narrowed from over 60 to 23 in the new methodology, and a new integrated rate was created for multi-tenant developments. An Urban Rate was added to incentivize development in Opportunity Areas of the city (Bend Central District, KorPine, East Downtown, Inner Hwy 20/Greenwood). 

The Chamber actively participated in the process and helped shape the final proposal with amendments to phase-in the increases over a 2-to-3-year period and pause any increases to medical SDCs for further study. Further work on rate structures for medical districts throughout the city is warranted, and the Chamber will continue advocacy work for this sector.

While the new methodology reflects a path forward for our growing community, it does set up challenges for certain types of businesses and the Chamber will continue to help these businesses through deferrals or other assistance programs where applicable. For a full review of the SDC methodology process, fee schedule and other related materials, please visit the city’s SDC website.