Snohomish developer fees issue finishes up
SNOHOMISH - The debacle over unpaid development fees in the Denny and Kendall plats appears to be over.
The city and two developers have paid off the unpaid developer fees due on the Denny and Kendall neighborhood plats and homeowners are now completely off the hook for paying the fees.
The city made it official at the end of last month after two developers and the city cumulatively have paid off $112,239 in sewer and school mitigation fees, the Herald reported Feb. 10. The money accounts for permit fees owed for most of the homes in the Kendall and Denny neighborhood plats that should have been paid before homeowners were allowed to move in.
On Dec. 6, developer George Fischer paid $30,120 to fulfill school impact fees on five houses in the Denny plat. That made the Denny plat all paid up, senior planner Owen Dennison said in December.
Later on Dec. 16, developer Jeff Gray paid more than $18,000 in school mitigation fees for some homes in both parcels, the Herald reported.
Gray and Fischer were in business together and constructed the homes as the Everett-based company Dynasty Homes. The company is now defunct and city leaders said previously it would be difficult to recoup money from the company.
Until changing its focus, the city began insisting in 2012 that the homeowners were on the hook for fees that the city neglected to collect from the developers. The unpaid utility and school impact fees, which ranged from $3,000 to $20,000 per household, have been coming up as a delinquencies any time the residents wanted to sell, refinance or access the equity on their homes.
In December, the City Council instructed the city to release the homeowners from any obligation to repay the city for the fees.
“It was the right thing to do,” Councilman Tom Hamilton said about his vote.
Public records from 2008 showed that the city knew it had allowed permit fees go unpaid citywide but made no clear attempt to recoup the money.
One resident said he put up $6,024 in school impact fees in order to sell his house in Kendall Court. In December, City Manager Larry Bauman said that he welcomes the resident to make a claim to the city.
“We’ll be asking him to make a claim to the city and support the fact with documentation that he was the one who made the payment,” Bauman said. “We intend to and have given direction for staff to reimburse his personal costs.”
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