System Development Charges (SDCs)

The City of La Grande currently has one (1) SDC for Park and Recreation Improvements, which is levied at $525.00 per new dwelling unit.  This SDC is charged prior to the issuance of zoning approval and building permits for the construction any new residential dwelling unit within the City of La Grande City limits and Urban Growth Boundary.  As the City’s population grows, this SDC is essential for supporting growth-related capital improvements that are vital to maintaining the City’s level of service in Parks and Recreation facilities.

Methodology:

The charges levied were based on the following methodology, which are outlined in the Land Development Code Ordinance, Section 7.1.004:

  1. Determining the value or cost of development park infrastructure, using the current dollar value (i.e., replacement cost) of land acquisition, design, site preparation, landscaping and construction of parks and recreation facilities.
  2. Determining the per capita capital investment cost, which is based value of the existing parking and recreation improvements divided by the population of the City of La Grande according to the most recent State Governors’ Office of Administration population estimate for the City.

[Value of Existing Park Improvements] / [City’s Population] = [Per Capita Investment Cost]

  1. The per capita investment cost is then multiplied by the average number of persons that occupy a residential dwelling according to the US Census, to yield the SDC Charge per dwelling unit.

[Per Capita Investment Cost] X [Persons Per Dwelling Unit] = SDC Charge

Land Development Code Ordinance, Section 7.1.004, established a maximum SDC charge that shall not exceed fifty percent (50%) of the standard cost per dwelling unit as calculated in step C above, and shall not exceed $1,000 for any dwelling unit.

The above analysis was conducted in 1999 with the standard cost per dwelling unit in step C calculated at $1,050 per dwelling unit.  Through the passage of Resolution _____, Series _____, the City established an SDC at fifty percent (50%) of the standard costs per dwelling unit, which amounted to $525 for each dwelling unit.

Capital Improvement Projects:

The SDCs levied by the City of La Grande are required to be allocated toward capital improvement projects for the City’s parks and recreation facilities.  The City does not currently have an adopted list of planned capital improvement projects and therefore is currently reserving the SDCs collected to fund the future expansion or construction of new parks and recreation facilities.

Questions:

For more information regarding the Park and Recreation Improvements SDC, please contact:

Michael Boquist, Community Development Director, (541) 962-1307
Stu Spence, Parks and Recreation Director, (541) 962-1352