Street Fees
Issue
The ORA has been closely monitoring the street fees being proposed in Portland and surrounding areas. In addition to working with the commissioners we have been engaging with our Quick Service members to keep them informed and make sure their concerns (if any) are being addressed.
An original proposal showed Quick Service operators in Portland paying over $761 a month in order to fund transportation projects. ORA made it clear in response that we would not support the fees at that level. Quick Service Gas Stations and C-Stores were paying two to three times the rate of other businesses. After discussions with the transportation Department and the Small Business Advisory Committee all averages for the restaurant industry are below $300. This is in line with existing street maintenance fees in Lake Oswego, Medford, Tigard and Tualatin.
ORA also met with Transportation Commissioner Sam Adams who reported that the average for Quick Service Restaurants will be closer to $156.00 a month before discounts based on a 2000 sq ft establishment. At this point ORA is not planning to fight this fee since to date we have not received any negative calls and it seems to be in line with existing street fees.
In West Linn fees are also being proposed at a much higher rate than Portland. The average fee to fund transportation projects for Quick Service Operators in West Linn as of January 10th was $758.00 a month. ORA made it clear that they would not support fees at this level and would be working to refer the proposal. After negotiations West Linn has stated that there will be a $425.00 cap for any business and the monthly fee for restaurants (including Quick Service) will be proportionate to this cap. In addition if voters pass a proposed 5-year bond this will replace the street fee and if a gas tax is passed the street fee will be reduced to include these funds.
Canby is also in the process of passing a street fee similar to other cities around Oregon that would be based on traffic generation. However, currently the city is stating businesses would pay between $5.00 and $50.00 per month.
ORA Position
As suspected this seems to be a domino effect and we expect to see even more local governments proposing this fee. ORA will continue to track this issue and report the status and red flags as they pertain to the industry. Suggestions, concerns or comments on this issue are always welcome.