Lake Stevens City Zoning Code
CHAPTER 14
112 TRAFFIC IMPACT MITIGATION FEES
[1]
Code reviser's note: Ordinance 955 establishes a temporary traffic impact fee adjustment to stimulate growth of new retail businesses within established subareas, pursuant to Section 14.112.080(d). The ordinance is effective from August 31, 2016, to August 22, 2019, unless extended by ordinance.
Editor's Note: Ordinance 955 is included as an attachment to this title.
§ 14.112.010 Purpose.
The purpose of this chapter is to implement the Capital Facilities Element of the Lake Stevens Comprehensive Plan and the Growth Management Act by:
(a)
Ensuring adequate transportation facilities are available to serve multimodal trips from new development.
(b)
Ensuring adequate transportation facilities are available to serve growth and maintain established levels of service for present businesses and residents.
(c)
Establishing procedures to impose fees for new development to pay a proportionate share of the costs of transportation facility improvements, reasonably related to the new development. This reduces transaction costs for both the City and developer, ensuring new developments do not pay arbitrary or duplicative fees.
(Ord. 876, Sec. 6 (Exh. 4), 2012; Ord. 1212, 12/9/2025)
§ 14.112.020 Authority.
(a)
This chapter is adopted under Chapter 82.02 RCW, which authorizes cities planning under the Growth Management Act, Chapter 36.70A RCW, to impose, collect, and use traffic impact fees to help finance public facilities and system improvements needed to accommodate growth and development.
(b)
The Directors of Planning and Community Development and Public Works, or designees shall have the authority to administer the city's traffic impact fee mitigation program as defined in this chapter, including approving modifications for unusual circumstances and authorizing offsets and credits.
(c)
The City will collect traffic impact mitigation fees for development activities approved by the County, when the subject property has been annexed to the City.
(Ord. 876, Sec. 6 (Exh. 4), 2012; Ord. 1212, 12/9/2025)
§ 14.112.030 Applicability and Exemptions.
This chapter applies to all new development activities, except for those exempted by the concurrency management system described in LSMC §§ 14.110.030(a) and (b).
(Ord. 876, Sec. 6 (Exh. 4), 2012; Ord. 1212, 12/9/2025)
§ 14.112.040 Service Areas.
(a)
The City has established service areas referred to as traffic impact zones (TIZ), as defined in the Traffic Impact Fee Cost Basis for the City of Lake Stevens, to help prioritize capital improvements throughout the City and assess appropriate traffic impact fees.
(b)
The exterior TIZ boundaries follow the City limits. Properties within the Urban Growth Area (UGA), annexed into the City, shall automatically be assigned the same TIZ (service area) as City properties directly contiguous to the annexation, unless an independent TIZ is established per the Traffic Impact Fee Cost Basis for the City of Lake Stevens.
(Formerly 14.112.050; Ord. 876, Sec. 6 (Exh. 4), 2012; Ord. 1123, Sec. 2 (Exh. A), 2021; Ord. 1212, 12/9/2025)
§ 14.112.050 Mitigation of Traffic Impacts Required.
Any new development activity shall mitigate identified impacts to the City's transportation facilities either by payment of an amount calculated pursuant to Section 14.112.070, dedicating land pursuant to Section 14.112.080, constructing off-site transportation facility improvements pursuant to Section 14.112.080, or as otherwise provided in Section 14.112.070.
(Formerly 14.112.060; Ord. 876, Sec. 6 (Exh. 4), 2012; Ord. 1212, 12/9/2025)
§ 14.112.060 Relationship to the State Environmental Policy Act (SEPA).
This chapter establishes minimum traffic impact fees, applied to all developments. These fees are presumed to mitigate traffic demand on the capacity of the City's transportation facilities. However, each non-exempt development activity shall be subject to the substantive authority of SEPA (LSMC § 16.04.105) to mitigate potential adverse impacts on transportation facilities not mitigated by this fee.
(Formerly 14.112.070; Ord. 876, Sec. 6 (Exh. 4), 2012; Ord. 1212, 12/9/2025)
§ 14.112.070 Calculation of Traffic Impact Fees.
(a)
The traffic impact fees will be collected and spent for system improvements to transportation facilities as identified in the City's adopted Capital Facilities Plan, in accordance with RCW 82.02.050.
(1)
Impact fees shall only be imposed for system improvements reasonably related to new development impacts.
(2)
Impact fees shall not exceed a proportionate share of the costs of the identified system improvements.
(3)
Impact fees shall be used for system improvements that will reasonably benefit the new development.
(4)
Impact fees may only be collected and spent on system improvements, included in the capital facilities element of the Comprehensive Land Use Plan, identifying:
(i)
Deficiencies in public facilities serving existing development and how existing deficiencies will be eliminated within a reasonable period of time;
(ii)
Additional demands placed on existing public facilities by new developments; and
(iii)
Additional public facility improvements required to serve new development;
(b)
The traffic impact fee cost basis is established in the Traffic Impact Fee Cost Basis for the City of Lake Stevens, or as amended, based on methodology consistent with the requirements of RCW 82.02.050 through 82.02.100.
(c)
A development shall mitigate its traffic impact by paying an impact fee proportionately related to the impact of the development activity on transportation facilities in the same traffic impact zone. A development's traffic impact fee will equal the number of new average weekday afternoon (PM) peak-hour trips generated by the development as identified in the currently adopted fees resolution, for the type and location of the development, except that the following adjustments may be made:
(1)
In accordance with RCW 82.02.060(6), the City shall have the authority to adjust the amount of the impact fee to consider unusual circumstances in specific cases, based on analysis of specific trip generating characteristics of the development (e.g., mixed-use characteristics, ridesharing programs, transit availability, etc.), to ensure that traffic impact fees are fairly imposed; and
(2)
In accordance with RCW 82.02.060(7), the City have the authority to adjust the amount of the impact fee to be imposed on a particular development to reflect local information when available, including studies and data submitted by the developer.
(3)
Cost Indexing. The City may adjust the traffic impact fees annually considering the Consumer Price Index (CPI) for the most recent 12-month period as guide for adjusting fees.
(d)
The City Council shall have the authority to adjust the amount of traffic impact fees pursuant to RCW 82.02.060(2) through (4) for development activities with defined broad public purposes in accordance with specific programs as determined and adopted by the City Council. The City Council shall identify the public funding source other than impact fees collected to compensate for any reductions in impact fees pursuant to this provision.
(e)
Pursuant to RCW 82.02.060, the Planning and Community Development Director or designee may exempt affordable housing units from traffic impact fees if the household's adjusted income is at or below 80 percent of the current median family income for Snohomish County, adjusted for family size. The exemption is subject to the following conditions:
(1)
The applicant shall apply for the exemption at the same time as submitting a land use or building permit, as applicable;
(2)
The applicant is responsible for providing documentation that the affordable units qualify for the exemption under this section. The applicant must explain how the project meets affordability requirements, demonstrate the public benefit of the exemption, describe the financial hardship to the project and show consistency with adopted city plans and policies related to affordable housing; and
(3)
As a condition of the exemption, the owner must execute and record a covenant against the property stating the units will remain affordable and continue to serve eligible households as defined in this section. The covenant must include price restrictions and household income limits and require the property owner to pay applicable impact fees in effect at the time of any conversion if the units are no longer used for affordable housing.
(Formerly 14.112.080; Ord. 876, Sec. 6 (Exh. 4), 2012; Ord. 922, Sec. 1, 2014; Ord. 1212, 12/9/2025)
§ 14.112.080 Offsets and Credits.
(a)
The City shall reduce required traffic impact fees or provide a credit for payment for transportation facility improvements previously made for the development as a condition of approval or under voluntary agreements with the City entered into after the effective date of the ordinance.
(b)
The City shall reduce required traffic impact fees or provide a credit whenever a development has agreed to, pursuant to the terms of a voluntary agreement with the City, or is granted approval subject to a condition that the developer provide right-of-way for or construct off-site transportation facility improvements that are identified in the Traffic Impact Fee Cost Basis for the City of Lake Stevens, as amended, as being part of the traffic impact fee cost basis, up to the value of land or up to the actual cost of construction against the impact fee assessed under Section 14.112.050.
(c)
The City shall reduce required traffic impact fees or provide a credit for the value of any dedication of land for, improvement to, or new construction of any system improvements provided by the developer, to facilities that are identified in the six-year capital facilities plan and that are required a condition of approving the development activity.
(d)
The amount of the offset or credit for a development activity shall not exceed the amount of the impact fee the development is required to pay.
(1)
The land value or cost of construction shall be estimated at the time of approval and shall be based on acceptable evidence and documentation provided by the developer. The evidence and documentation shall be reviewed and, if acceptable, approved by the Directors of Planning and Community Development and Public Works, or their designees.
(2)
When land is proposed for dedication, the person required to pay traffic impact fees shall present either a Member of the Appraisal Institute (MAI) appraisal or evidence of the assessed value as determined by the County Assessor's Office.
(3)
If construction costs are estimated, the estimate must be provided by a professional engineer or use construction values established by the City and the documentation shall be confirmed after the construction is completed to ensure that an accurate offset amount is provided.
(4)
If the land value or construction cost is less than the calculated fee amount, the difference remaining shall be chargeable as an impact fee.
(e)
Any claim for offset should be made at least 30 days prior to application for a building permit to eliminate or minimize any delays in issuance of a permit.
(Formerly 14.112.090; Ord. 876, Sec. 6 (Exh. 4), 2012; Ord. 1212, 12/9/2025)
§ 14.112.090 Collection of Impact Fees.
Impact fees for each development shall be assessed and collected at the time of issuance of a building permit, unless deferred pursuant to Chapter 14.124. Where no building permit will be associated with the development, such as a development requiring a conditional use permit, payment is required as a precondition to approval.
(Formerly 14.112.100; Ord. 876, Sec. 6 (Exh. 4), 2012; Ord. 970, Sec. 5, 2016; Ord. 1212, 12/9/2025)
§ 14.112.100 Uses of Traffic Impact Fee Revenues.
(a)
Traffic impact fee revenue will be used for capital improvements to transportation facilities, not operating or maintenance expenses.
(b)
Traffic impact fees shall be used for costs associated with City transportation facility improvements, including, but not limited to, planning, design, engineering, right-of-way acquisition, financing, project administration, construction, and/or construction engineering.
(c)
If bonds or similar debt instruments are issued for the advanced provision of system improvements, for which impact fees may be expended and where consistent with provisions of the bond covenants, impact fees may be used to pay debt service on such bonds or similar debt instruments to the extent that facilities or improvements provided are consistent with the requirements of this section.
(d)
Traffic impact fees are collected and spent on system improvements as opposed to project improvements, as defined in RCW 82.02.090.
(Formerly 14.112.110; Ord. 876, Sec. 6 (Exh. 4), 2012; Ord. 1212, 12/9/2025)
§ 14.112.110 Expenditure Requirements for Impact Fees.
Traffic impact fees not expended or encumbered within 10 years may be refunded, pursuant to RCW 82.02.070 and 82.02.080 and Section 14.112.120; unless the City Council makes written findings that there exists an extraordinary and compelling reason for fees to be held longer than 10 years. To verify these two requirements, impact fee revenues must be deposited into separate accounts of the City, and annual reports must describe revenue and expenditures.
(Formerly 14.112.120; Ord. 876, Sec. 6 (Exh. 4), 2012; Ord. 1212, 12/9/2025)
§ 14.112.120 Refund of Fees Paid.
(a)
Traffic impact fees collected pursuant to this chapter shall be deposited into an interest-bearing account established for the City.
(b)
If a development approval expires without commencement of construction, the developer shall be entitled to a refund of traffic impact fees paid, with interest. The developer must submit a written refund request to the Finance Director within 30 days prior to the expiration of the permit. By resolution, the City Council may adopt fees to offset administrative costs of collecting and refunding mitigation fees.
(c)
Any funds not expended or encumbered by the end of 10 years from the date the fee was paid shall be returned to the developer/owner with interest; provided, that the developer/owner submits a written refund request to the Finance Director within one year of the expiration of the 10-year period.
(d)
Impact fees that are not expended or encumbered within these time limitations, and for which no written refund request has been made in accordance with this section, shall be retained and expended on transportation facilities.
(e)
Interest due upon the refund of traffic impact fees shall be calculated according to the average rate received by the City on invested funds throughout the period during which the fees were retained.
(Formerly 14.112.130; Ord. 876, Sec. 6 (Exh. 4), 2012; Ord. 1212, 12/9/2025)
§ 14.112.130 Appeals.
A developer may appeal the amount of an impact fee determined, following the appeal process for the underlying development approval, pursuant to LSMC § 14.16A.265. The developer shall bear the burden of proving:
(a)
The City erred in its impact fee assessment of the developer's proportionate share, as determined by an individual fee calculation or as set forth in the fee schedule, or in granting a credit or offset.
(b)
The impact fee assessed on the development activity was based upon incorrect data.
(Ord. 1212, 12/9/2025)
