In a move anticipated by a court decision ruling housing "linkage" fees illegal, the Ketchum City Council has taken the first step toward refunding about $50,000 in fees collected from prospective home builders to offset workforce housing requirements.
After a public hearing with only one person in attendance, the council on Monday, Sept. 17, passed the first reading of an ordinance rescinding an earlier ordinance that authorized collection of the fees.
In a June ruling in a case involving the city of Sun Valley, 5th District Judge Robert Elgee ordered that city to refund almost $12,000 in fees collected from prospective home builders in connection with the city's "linkage" ordinance. Elgee ruled that the fees constitute a tax, and state law does not allow a city to levy a tax without approval of the Idaho Legislature.
Ketchum's ordinance allows home builders to pay the fees instead of providing actual affordable housing units in connection with their projects. Workforce housing linkage ordinances are designed to provide affordable housing for those of low and middle income who typically fill resort area jobs.
Ketchum apparently saw the legal writing on the wall in deciding to rescind its ordinance and refund the fees collected.
"When the court decided the case, the council asked (City Attorney Ben Worst) for advice and that's Ben's advice," City Administrator Ron LeBlanc said, in an interview.
The ordinance repealing the linkage ordinance requires two more readings before it becomes law.
In other discussions on Monday, the council:
· Noted that the Ketchum Community Development Corporation is actively recruiting an executive director and a development chairperson.
· Heard a suggestion by Councilman Baird Gourlay that the noon council meetings on alternate Mondays, which were recently added, should be for policy matters and not leftover items from night council meetings.
