At its Dec. 7 meeting, the City Council was scheduled to hold second and final readings of two ordinances that would impose impact fees to pay for parks and transportation.

The Council adopted school impact fees, which went into effect Oct. 16, after collaborating with the district and consultants. But discussion on the other two was more complicated, with consideration paid to affordable housing exemptions and the effect on small businesses.

The Mercer Island Chamber of Commerce sent a letter to the City Council before the Dec. 7 meeting outlining concerns with the fees.

“The need for the impact fees is understood but the chart comparing transportation impact fees in other jurisdictions leaves one wondering how Mercer Island can be compared to Redmond, Issaquah Kirkland and Bellevue,” the letter states. “Asking a small business or restaurant to pay park impact fees is questionable. Employees of the businesses on Mercer Island (with the exception of Farmers New World Life) do not use any parks unless they are residents.”

The Chamber argues that the fee may drive restaurants away, to cities with lower rates for similar sized establishments. Mercer Island may charge $91,441 for a restaurant the size of The Islander, while Sammamish charges $45,332, according to the Chamber letter.

During the Town Center visioning process, “restaurants were highest on the wish list” for businesses that Islanders wish to attract to their downtown area.

“Adding $91,000 to the cost of opening a restaurant would have the opposite effect and be detrimental to attracting new business,” according to the letter.

Some councilmembers shared these concerns, including Deputy Mayor Dan Grausz.

Also on Dec. 7, Monica Wallace of Wallace Properties addressed the Council. She said that she is planning retail for the new Hadley building, and that higher fees may preclude certain businesses from coming to the Island.

New Councilmember Jeff Sanderson, who used to run Stopsky’s Delicatessen on the Island, said there could be advantages to having a restaurant exception in the transportation impact fee ordinance.

“Traffic is bad and we want to stay on the Island and support Island businesses, not cause them not to come here,” he said.

The Chamber urged the Council to “re-consider the proposed impact fees, research the fees in towns more similar to Mercer Island and consider an amount that better reflects the business climate of Mercer Island.”

The Council sent staff “back to the drawing board” on restaurants, retail and commercial in general, but passed the parks impact fee unanimously.