Politics
Essendon City Council Approves Local Development Contribution Policy, Raising New Home Purchase Costs
Buyers of new homes in Essendon will pay an added fee of up to 1.5 percent of assessed value beginning with permits issued after August 1.
How we reported this
Essendon City Council passed the Local Development Contribution Policy by a 7-2 vote during its July 7 meeting. The measure requires developers of new residential projects to remit a one-time fee tied to project scale before permits are issued.
The decision follows updated population estimates released in the city's 2025 planning report, which documented a 4 percent rise in households since 2020 and corresponding pressure on existing roads and drainage systems. Council documents state the policy aims to offset infrastructure expenses without drawing from the general fund.
Added Costs for New Home Buyers
Under the policy, a resident purchasing a newly constructed single-family home will see the fee incorporated into the sale price. For a property valued at $450,000, this adds $6,750 at closing. Families planning moves to the Maple Grove or Riverside subdivisions will encounter the charge on any unit permitted after the August 1 start date. Multi-unit buildings face the same percentage calculation applied to total project valuation.
Local real estate records show 312 new housing units received permits in Essendon during the prior fiscal year. The contribution formula uses the same valuation method already applied by the county assessor for property taxes.
Projected Revenue and Next Steps
The council's 2026 budget paper estimates the policy will produce $850,000 in revenue during its first full year. Those funds are designated for resurfacing segments of Main Street and upgrades to storm drains along Elm Avenue. City staff will publish a fee calculator on the municipal website by July 22 and schedule two public briefings for September.
Developers must submit contribution payments at the time of permit approval. Projects already under review but not yet permitted will fall under the new requirement if final approval occurs after August 1. Quarterly reports on collected amounts and completed projects will be posted on the city website beginning in October.