SANDPOINT — The Sandpoint City Council will host an open public forum about a potential increase in development impact fees during its Wednesday meeting.

Sandpoint Mayor Jeremy Grimm is a proponent of raising development impact fees to help fund growth related capital improvement projects in the city. Grimm says the city’s ability to generate revenue has been limited by the passing of House Bill 389, which established budget caps and limits for local governments.  

These fees would be paid by developers in Sandpoint when building permits are approved and can only be used for capital improvement projects. 

The city of Sandpoint hired TischlerBise, a Boise-based consulting firm, to update the city’s existing development impact fee program according to the city’s 10-year projected growth. TischlerBise previously consulted with Sandpoint on its fee program in 2011. 

TischlerBise presented the company's findings to the Sandpoint City Council on June 25, in which all four attending councilors voted to hold a town hall on the plan. 

“Making sure that we have an updated development impact fee study is critical to ensuring the city can recover the cost of growth,” Grimm said at the meeting. “Proper impact fees ensure that those investing in our community are going to have a pretty strong assurance that we are going to be able to maintain the level of service that attracted them to our community.” 

If approved, fees would generate revenue for already outlined capital improvement plans in five chosen categories. In the staff report, fees generated over the next 10 years would provide an estimated: $7.4 million for the Parks and Recreation Department, $1.4 million for expanding non-motorized pathways, $5 million for roadway improvements, $551,000 for expansion of the police station and $908,000 for expansion of the fire station. 

TischlerBise proposed multiple changes to the program, with the most significant being a proposed change in the fee methodology for new residences from a per-bedroom to a per-square foot approach, which should curb developers’ ability to work around the fee amount. 

In that meeting, TischlerBise offered several approaches to fee increases. A phased approach to the implementation beginning in fiscal year 2026 and reaching the maximum supportable fees by fiscal year 2028 gained the most support from the council. 

“I think that the three-year phasing is probably appropriate,” City Council President Deb Ruehle said at the June 25 meeting. 

The town hall will be held during the next City Council meeting that starts at 5:30 p.m. on Wednesday, July 16 at Sandpoint City Hall in the council chambers. More information on the fee increases and the city’s planned capital improvement plans can be found at bit.ly/40kythU.