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Consultation has concluded
Project Overview
Redmond is considering implementing a fee system for the extended closure of public right of way (ROW) by private businesses beginning in January 2025. Public right of way includes sidewalks, bike lanes, vehicle lanes, and parking spaces.
Outdoor dining and construction activities are common examples of extended ROW closures for private use. These closures partially or completely block residents from accessing and enjoying the use of taxpayer-funded right of way or require them to be paying customers of a private business to access public ROW. The proposed fees are meant to incentivize construction companies to limit the duration of closures and to recoup some of the cost to the public of losing access to taxpayer-funded ROW. The City is trying to balance these private uses with the community's need to access their right of way.
The proposed use fees are based on research, align with surrounding agencies, and are right-sized for Redmond. The fee will apply to closing any portion of the ROW for private use for periods over two weeks.
Proposed Outdoor Dining Use Fee:
An annual fee of $2.00 per square foot of closed ROW, plus a flat-rate permit fee of $671 (2024).
For Construction Activity:
A monthly fee of $0.75 per square foot of closed ROW for construction activity.
In addition to collecting these use fees, the City is required to collect a leasehold excise tax to be remitted to Washington State per (RCW 82.29A.030). The leasehold excise tax is 12.84% of the use fee for the closed ROW.
How would this new fee work?
When a construction business submits a traffic control plan that includes ROW closures, the appropriate ROW use fee will be assessed.
When a business applies for or renews an outdoor dining permit, the appropriate ROW use fee will be assessed.
Project Overview
Redmond is considering implementing a fee system for the extended closure of public right of way (ROW) by private businesses beginning in January 2025. Public right of way includes sidewalks, bike lanes, vehicle lanes, and parking spaces.
Outdoor dining and construction activities are common examples of extended ROW closures for private use. These closures partially or completely block residents from accessing and enjoying the use of taxpayer-funded right of way or require them to be paying customers of a private business to access public ROW. The proposed fees are meant to incentivize construction companies to limit the duration of closures and to recoup some of the cost to the public of losing access to taxpayer-funded ROW. The City is trying to balance these private uses with the community's need to access their right of way.
The proposed use fees are based on research, align with surrounding agencies, and are right-sized for Redmond. The fee will apply to closing any portion of the ROW for private use for periods over two weeks.
Proposed Outdoor Dining Use Fee:
An annual fee of $2.00 per square foot of closed ROW, plus a flat-rate permit fee of $671 (2024).
For Construction Activity:
A monthly fee of $0.75 per square foot of closed ROW for construction activity.
In addition to collecting these use fees, the City is required to collect a leasehold excise tax to be remitted to Washington State per (RCW 82.29A.030). The leasehold excise tax is 12.84% of the use fee for the closed ROW.
How would this new fee work?
When a construction business submits a traffic control plan that includes ROW closures, the appropriate ROW use fee will be assessed.
When a business applies for or renews an outdoor dining permit, the appropriate ROW use fee will be assessed.
Ask your questions in the space provided, and we will answer them here.
Share Small businesses often operate on smaller margins and lack the financial ability to absorb these costs compared to large chains. What do plan to do to alleviate this for small businesses to make Redmond more welcoming for small businesses? on FacebookShare Small businesses often operate on smaller margins and lack the financial ability to absorb these costs compared to large chains. What do plan to do to alleviate this for small businesses to make Redmond more welcoming for small businesses? on TwitterShare Small businesses often operate on smaller margins and lack the financial ability to absorb these costs compared to large chains. What do plan to do to alleviate this for small businesses to make Redmond more welcoming for small businesses? on LinkedinEmail Small businesses often operate on smaller margins and lack the financial ability to absorb these costs compared to large chains. What do plan to do to alleviate this for small businesses to make Redmond more welcoming for small businesses? link
Small businesses often operate on smaller margins and lack the financial ability to absorb these costs compared to large chains. What do plan to do to alleviate this for small businesses to make Redmond more welcoming for small businesses?
Sayna
asked
9 months ago
Redmond values the role small businesses play in our community and we recognize that smaller businesses may face more narrow margins than larger ones. This fee is required when a business is in need of utilizing an area that is owned by the City and needs to be accessible to the general public at all times. One of the goals of this outreach effort is to right-size the fee structure so that it is not overly burdensome to businesses, including small businesses, while also addressing the community’s need to access its sidewalks. The Right-of-Way Team has researched other cities’ fee structures and is following a similar fee structure.
Share How much will an outdoor dining area cost a business? on FacebookShare How much will an outdoor dining area cost a business? on TwitterShare How much will an outdoor dining area cost a business? on LinkedinEmail How much will an outdoor dining area cost a business? link
How much will an outdoor dining area cost a business?
9 months ago
For outdoor dining, a flat-rate permit fee of $671 will still be required for each permit in addition to the square footage-based right-of-way use fee. For example, the extended closure of an eight by forty-foot (320 square foot) parking area would cost $671 (2024 flat-rate fee), plus a $640 extended ROW use fee, plus 12.84% excise tax, which totals to approximately $1394 annually.
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How much will it cost for closures for construction?
9 months ago
For construction activity, the extended use fee will be for the square footage of the closed area of ROW. For example, if a 6-foot sidewalk is closed for 100 linear feet for a period of three months, the extended use fee would be 600 square feet times $0.75 per square foot times three months plus 12.84% tax. This totals approximately $1524 monthly.
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Is the use fee in addition to the permit fee?
9 months ago
Yes, the use fee, permit fee, and excise tax would all be applied to outdoor dining applications. The permit fee does not apply to construction closures.
Share How does this compare to other nearby cities? on FacebookShare How does this compare to other nearby cities? on TwitterShare How does this compare to other nearby cities? on LinkedinEmail How does this compare to other nearby cities? link
How does this compare to other nearby cities?
9 months ago
For closure of 180 square feet of sidewalk, an outdoor dining space in Redmond would cost $1,077, compared to $969 for an equal-sized space in Bellevue and $1,286 in Seattle.
For a 4,800-square-foot sidewalk, bike lane, and vehicle lane closure, the fee is $4,057 per month in Redmond compared to $2,448 in Seattle or $9,737 in Bellevue. Seattle's fee includes an escalating rate, so a one-year closure of the same space in Seattle would cost $276,624 versus $48,685 in Redmond.
Share How does this policy affect businesses that only offer outdoor dining for a part of the year? Do they still pay the fee at the full annual rate? on FacebookShare How does this policy affect businesses that only offer outdoor dining for a part of the year? Do they still pay the fee at the full annual rate? on TwitterShare How does this policy affect businesses that only offer outdoor dining for a part of the year? Do they still pay the fee at the full annual rate? on LinkedinEmail How does this policy affect businesses that only offer outdoor dining for a part of the year? Do they still pay the fee at the full annual rate? link
How does this policy affect businesses that only offer outdoor dining for a part of the year? Do they still pay the fee at the full annual rate?
9 months ago
That part of the policy has not been determined yet.
