City staff presented preliminary analysis on March 4 of possible citywide transportation-impact-fee (TIF) programs and said the council expressed interest in further study before committing to a structure.

Public Works Director Robert Blagan and staff explained an impact-fee program charges new development for its “fair share” of transportation improvements tied to projected trip generation. Using the Spokane Regional Transportation Council’s new travel-demand model, consultants produced three options for council review: (1) keep the existing TIF areas and add a single large zone for the remainder of the city; (2) create a single citywide TIF and eliminate the existing subareas; or (3) create three distinct zones and remove the older subareas. Staff said option 2 (one large citywide fee) is unlikely to be recommended because case law and fair‑share principles generally favor geographic correlation between where fees are collected and where projects are built.

The consultant provided preliminary per‑trip rate ranges derived under two scenarios: funding “all projects” in the long-range plan or funding projects limited to Tier 1 and Tier 2 priorities (the list of projects the city reasonably expects to fund in the short- to mid-term). The per‑trip rates for Tier‑1/2 projects were lower than the ‘‘all projects’’ scenario because the study excluded lower-priority, long‑horizon projects.

Staff cautioned that impact‑fee programs require a careful legal and technical analysis: fees must be based on a defensible nexus between development and identified transportation projects, the city must reasonably expect to complete the funded projects, and statutes cap timeframes for using collected fees. Staff recommended returning with a staff‑directed consultant study that uses the new regional model, a clarified project list and land‑capacity information to produce defensible rates and geographic boundaries.

Council members generally signaled support for further work on a TIF program, with several asking staff to refine boundaries, confirm realistic project lists and bring back analysis tied to the city’s upcoming comprehensive-plan land-capacity study.