Document text
The numbers added up and up A Medford CPA says the cost of his remodel shows the city's development fees formula for small projects is unfair By MELISSA MARTIN Mail Tribune Val Bubb knew the Jackson Street home built from local sugar pine in 1910 was just right for his thriving accounting business. So the Medford CPA invested about $220,000 to purchase and remodel the Craftsman-style structure next door to the house his staff had outgrown. Now, five years later, his growing, five-employee firm needs more space to package tax return packets for 700 clients. But Bubb encountered a roadblock to the 682-foot addition to his business - city fees that added 17 percent to the cost of the $35,000 project. After taking his case to the City Council in October and meeting several times with city staff, Bubb gave up and delivered a $5,879 check to City Hall on Monday. But it doesn't mean he's waving the white flag. Bubb still believes the city's formula for calculating development fees for small projects is not fair. "The city wants to make the formula extremely simple so they don't have to make a judgment call on whether the assessment is reasonable or not," said Bubb, a Medford accountant since 1965. A remodel of a historic house for office use doesn't work with a one-size-fits-all formula for city fees, said builder Pat Henderson of Trend Design. When Henderson remodeled the home in 1996, he turned the attic into office space, building a four-foot-wide staircase to reach it. He created office space downstairs, too, preserving historic elephantine columns, glass bookcases and a coffered ceiling. "We tried to save as much of the exterior and interior flavor and still squeeze in everything Val needed for his office to function properly," Henderson said. In the new remodel, he's building an upstairs bathroom in the former library, an emergency staircase required by city code, a room for a copy machine, work table and files and a 250-square-foot office for a new employee. The city calculates development fees based on statistics that show the amount of traffic generated by new employees. Bubb's complaint with the city's formula is that his one new employee occupying 250 square feet won't generate as much vehicle traffic as the city predicts. "It's a high price to pay for one new staff member," Bubb said. "There are inequities involved in using a formula that doesn't allow for judgment." But city staff said it would be unfair to make discretionary decisions when calculating development fees. "People are always asking for breaks or saying, 'I can't afford it,' or 'I need it right away,' " said Robert Janssen, city administrative engineer. "But we need to make sure we treat everybody equally. We could get accused of favoritism, of being unfair. It may seem awfully rigid, but I think being consistent with applications is where your credibility lies." The city development fees that were implemented in 1991 doubled in 2001. It was the Medford City Council's way of paying for 17 priority street projects. The fee spike proved costly for the Medford accountant. If he would have filed his application before the increase, he would have paid $2,172 in fees and building permits, compared to the $5,879 he paid Monday. The increase includes a new fee for the south Medford freeway interchange, which totaled $1,587 for Bubb's project. While it didn't bring about a change in his costs, Bubb said he hopes his brief battle with the city will help folks in the future. "If I can do something to change what I see is an inequitable situation, I hope it will help other businesses, whether I get a refund or not." Reach reporter Melissa Martin at 776-4497, or e-mail [email protected] Mail Tribune Home | Ottaway Newspapers, Inc. | Dow Jones & Co., Inc. | Privacy | Contact Us Copyright � 2001 Mail Tribune, Inc.