SANDPOINT — The Sandpoint City Council will hear public feedback before deciding when to enact the city’s new development impact fees.

The council has consistently been split on the issue, with each vote requiring a tiebreaking vote from Mayor Jeremy Grimm. Under the proposed ordinance, the development impact fees would be implemented Oct. 3 at their maximum recommended amount, which can be as much as a 100% increase. 

“If we can all agree that this is the correct amount where growth pays for growth, it seems to me that going directly to the full amount is the correct conclusion,” Councilor Kyle Schreiber said at the July 17 council meeting. “Otherwise, we are going to be subsidizing new growth with the existing residents.” 

While the maximum recommended fee increases were adopted into the city’s 2026 fee schedule, in a 4-3 split vote, the council does have the option to delay the implementation of the fees to a later date. Moving the date of the implementation might be explored after the revelation made by Averill Hospitality at the council’s Aug. 20 meeting. 

Where company representative Ben McGrann said its current plan for the 56 Bridge Street hotel could not survive the increased fees. This sparked concern from the council, especially from councilors Rick Howarth and Joel Aispuro. 

“I understand the necessity of the impact fee increases ... that is a project that I think we all want to see come to fruition,” Howarth said at the meeting. “I cannot in good conscience approve the implementation of those fees, without understanding there wouldn’t be a negative impact." 

Before the council makes its decision, members of the public will be able to speak during a public hearing to voice their opinions on the implementation of the impact fees. 

Sandpoint City Planner Bill Dean said at the Aug. 20 meeting that he’d recommend the council pick a date as close to the current target as possible, floating the idea of a Jan. 31 implementation to accommodate Averill Hospitality. Grimm suggested the company reach out to the Sandpoint Urban Renewal Agency to see if the agency would be willing to shoulder some of the cost for the fees.  

Development impact fees are charged to developers and reflect the amount that the city needs to continue its services at the current level. The fees are paid by the developers at the time building permits are issued. 

Sandpoint city staff estimates the fees will generate $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.  

These projects are based off needs identified in the city’s comprehensive plan that was adopted in 2024. According to Nicholas Huff of TischlerBise, all projects outside of the roadway improvements are on an “incremental expansion approach,” meaning the city is not obligated to complete the projects listed. 

Members of the public will have the ability to comment during the public hearing portion of the city council’s Sept. 3 meeting. That meeting will begin at 5:30 p.m. in the council chambers at City Hall.