The Puget Sound Region is expected to experience significant population growth in the next 20 years. Unlike the rapid and rambling expansion of the 1980s and 1990s, future growth will focus on predominantly “urban growth areas,” like ours, designed to contain sprawl and create higher quality and more sustainable communities.

Growth and the benefits of growth – jobs, housing, schools, recreation – are coming. But there is a significant need for public infrastructure and there are limited funding sources. Where is the money going to come from given the dire conditions of federal, state and local government budgets?

A column in this paper last week unfairly criticized a new financing option for developers to pay for public improvements. Not only did that column miss the mark, but it made incorrect assertions of both the intent and structure of a financing tool intended to help our surrounding communities move forward with smart planning choices.

The tool, the Community Facilities District, provides a way for developers to use their property as collateral to support the construction of an even wider range of improvements, such as roads, storm water facilities, park improvements, traffic lights or even libraries and schools. This financing tool can only be used when 100 percent of property owners agree. It cannot be imposed on property owners against their will.

The new law does not prevent a developer from paying impact fees on a project. On the contrary, it helps to pay for the public improvements up front. These funds are often not available, especially in the current economy. The ability to finance a greater variety of infrastructure improvements will benefit growing communities across Washington state.

The new law would also create immediate jobs in southeast King County and elsewhere in the state where development projects are stalled because of a lack of financing. It’s no wonder the legislation enjoyed overwhelming support in Olympia, as well as from a variety of stakeholders. The measure was developed over the course of 20 months with input from many sides.

The legislation allows local governments to create new special purpose districts, not taxing districts. This is an important distinction because a special purpose district has narrow authority compared to a taxing district. A CFD special purpose district is formed with the sole purpose of financing specific public infrastructure paid for by property owners. All of the land owners within a CFD would have to sign a petition approving the assessments. This legislation resolves confrontations of the past, when a minority of property owners would disagree with building a facility, but be forced to pay an assessment anyway.

This is one of the benefits of hindsight. State and local leaders are using lessons learned to guide new development. Communities, now more than ever, are being planned with smart growth and steady expansion in mind. This includes building public infrastructure and facilities before the need for them overwhelms any neighborhood, rather than waiting for mitigation fees that take years to collect and might not actually fund infrastructure improvements as needed.

Smart growth should be the standard. Community leaders encourage it. Residents expect it. And developers, like YarrowBay, have pledged to provide it.

The concerns raised in last week’s column were fully addressed by the Legislature. The work of a large group of stakeholders and legislators in Olympia produced a law that will benefit this area. Specifically, the Legislature chose an approach that requires 100 percent approval by property owners, uses a special purpose district instead of a taxing district, and supports a broader range of infrastructure improvements than previously allowed. YarrowBay is committed to ensuring that new development in Black Diamond is supported with facilities, schools, roads and all other benefits of public infrastructure that will make it a great place to raise a family and operate a business.

If you have any questions about the new Community Facilities District law, please feel free to give us a call.

Brian Ross is CEO of YarrowBay and can be reached at 425-898-2100.