Nine cities and one county are currently considering street fees that will increase your cost of doing business. Newberg, Salem. Tigard, Eugene, Portland, Sherwood, Lake Oswego, Canby, Wilsonville and Clackamas County have drafted proposed street fees to raise revenue to repair and maintain local streets.

The fees may be based on a number of factors ranging from trip generation (the most common and costly) to property frontage, store size, number of parking spaces, or a flat utility fee assessed to homes and businesses. The impact to an average convenience store could be as little as $15.00 per month or higher depending on how the city determines to assess the fee. And of course there is no cap or sunset provision for the proposed fees, they can increase simply by city council action.

The grocery industry is fighting the Eugene, Salem and Tigard proposals and has advised those cities they may face legal challenges as the fees, depending on how they are used, could be legally defined as taxes, which by the cities’ charters would require a vote of the people. Eugene recently tabled the proposed ordinance and is reconsidering their options. Portland repealed their ordinance when a group of retailers referred the street fee to the ballot. Today, Portland is negotiating with retailers to find a proposal that offers parity between a business and a residence. Tigard has delayed enactment of their ordinance and has provided a period for business to comment and the city to consider the concerns of all stakeholders.

As other cities introduce similar ordinances, retailers plan to proceed with legal challenges until the issue of parity is addressed between all parties. Legislation will be introduced to develop a statewide format for imposing street fees.

For retailers, the risk is higher fees at the whim of local governments and forever paying for projects that reach beyond the scope of local road repair and maintenance.