La Grande passes resolution for construction and development fee deferment
By Garrett Christensen on Tuesday, September 8th, 2026 in Northeastern Oregon News Northeastern Oregon Top Stories
LA GRANDE – During a regular meeting on Wednesday, September 2, the La Grande City Council approved a resolution to establish new policy for housing and commercial development fee waivers and payment deferrals. As introduced in the agenda packet for the meeting:
“The proposed Resolution establishes a policy for housing and commercial development fee waivers, reductions, and payment deferrals. The policy is intended to provide appropriate incentives for development while maintaining fiscal responsibility and protecting City revenues. If approved at the September meeting, the Resolution will take effect on December 1st, 90 days after the approval date. This 90-day period will allow time to develop and establish the necessary administrative process before the Resolution goes into effect.”
According to discussions by council members and city staff, the resolution does not eliminate fees or reduce the total amount of money owed to the city during construction but rather allows for deferment so that construction may be completed first. Theoretically, a builder has a lengthy ten-year period to pay back all associated fees after finishing construction before the city defaults on the project.
However, per the framework of the resolution, builders cannot actually sell any new builds until the deferred/waved fees are paid back. Further, after two years of deferring fees, the city will begin adding 8% interest for each additional year until defaulting at the 10-year mark.
Again, according to discussions by staff and council members, the intention is not to punish late payments, but to encourage sales of new builds, while allowing construction to begin quickly before fees and permitting are paid. Long term, it is hope this will stimulate new housing development, without shifting the burden of cost on the city or residents.
As mentioned above, this resolution goes into effect December 1st, 2026.
