Oak Harbor Council Raises Park Impact Fees, Balances Growth and Affordability
Oak Harbor City Council on November 14 adopted an ordinance increasing park impact fees for new development, raising the single family fee from $669 to $1,673 and the multi family unit fee from $431 to $1,344. The interim increases reflect updated land and construction costs identified in a recent study, and matter to residents because they alter development costs, potential housing affordability, and funding available for future parks projects.
On November 14 the Oak Harbor City Council approved an ordinance implementing interim increases to park impact fees charged on new residential development. The revised schedule raises the fee for a single family residence from $669 to $1,673, and the fee for a multi family unit from $431 to $1,344. Council members described the move as a temporary midpoint, taken while staff prepares a comprehensive update to the city parks and recreation plan.
City staff presented a recent study updating the land and construction cost assumptions that underpin the impact fee calculations. Those updated inputs would have supported higher fees, but the council set the interim amounts below the study recommendations to allow more time for the broader planning process. The ordinance is explicitly framed as an interim measure pending the larger policy update.
Council discussion highlighted three central tensions for local policymakers. Members expressed concern about housing affordability as fees increase, questioned how impact fee revenue can be applied proportionately to projects, and weighed tradeoffs between encouraging development and ensuring adequate funding for parks and recreational facilities as the community grows. The council sought to strike a balance between raising revenue necessary to serve future residents and avoiding sudden cost shocks for builders and homebuyers.
For local builders and developers the new interim fees represent a sizable increase in per unit costs. The single family fee more than doubles in percentage terms, rising by roughly 150 percent, while the multi family unit fee increases by roughly 212 percent. Those changes can affect pro formas, project viability, and ultimately the price of new housing constructed within city limits.
For residents the decision has two linked impacts. First, if developers pass higher fees through to buyers or renters, affordability pressures could increase. Second, higher impact fees directly boost the pool of funds available to invest in parks and recreation infrastructure, shaping the quality and availability of community amenities over the coming years.
The council framed the interim adjustment as a measured step that preserves flexibility while staff completes the parks and recreation plan update. That forthcoming update will determine whether fees remain at the interim level, rise to the study suggested level, or are adjusted in other ways. The decision underscores how local fee setting functions as both fiscal planning and land use policy, with immediate effects on development economics and long term consequences for public facilities.
Residents and stakeholders should expect further council consideration and public discussion as the city completes its comprehensive parks planning work and moves toward a final fee schedule.
