This monthly update is published by the City of Poulsbo Planning and Economic Development (PED) Department to highlight news and trends in planning and development. For details on these topics and the department, visit our website.

The Director's Chair

To further strengthen the department’s historic preservation efforts, the Planning and Economic Development Department applied to the Western Washington University Department of Urban Planning and Sustainable Development for assistance through its internship program. We are excited to welcome planning intern, Frankie Middelhoven, for the summer who will help advance several important preservation initiatives.

During the internship, Frankie will inventory recent and existing uses of buildings within Poulsbo's Historic Downtown, helping the City better understand how these treasured structures continue to serve the community today. This information will support future planning efforts and provide valuable insight into the evolution of our downtown over time.

Franklin will also research the requirements and benefits of becoming a Certified Local Government (CLG) through the Washington State Department of Archaeology & Historic Preservation. The CLG program recognizes communities that demonstrate a strong commitment to historic preservation and provides access to technical assistance, grant funding opportunities, specialized training, and greater participation in state and federal preservation programs. Achieving CLG status would position Poulsbo to better preserve its historic resources while leveraging additional funding and expertise to support future projects.

This internship represents an exciting opportunity to combine academic research with meaningful community service. By investing in the next generation of planning professionals while advancing our own preservation goals, the City continues its commitment to protecting the historic character that makes Poulsbo such a remarkable place to live, work, and visit. Learn more about our incredible intern below.

Where are you currently attending school, and what degree are you pursuing?

I am currently attending Western Washington University, where I am pursuing an undergraduate degree in Urban Planning and Sustainable Development and a minor in Disaster Risk Reduction.

What drew you to study planning (or your chosen field), and how does this internship fit into your academic or career goals?



Before I decided to follow planning as a field of study and a career, I knew I wanted to do something that would improve people's lives and help their communities. In high school, I worked at a Scout camp to give back and help youth in the community of scouting that I had been a part of when I was a youth. So, when thinking about potential majors or career choices, I knew I wanted to do something that helps communities. This internship not only provides me with career experience, but I saw it as an interesting opportunity to learn more and help protect the history of Poulsbo.

What are you most excited to learn or experience during your time with the PED Department?

I'm working on historic preservation, so I'm excited to learn more about the history of Poulsbo. I always find the history of places really interesting, especially the small-scale stories that happened in specific places. I also look forward to learning about the inner workings of the historic preservation process since it's a niche in planning that I haven't had the chance to learn much about in my university program.

Is there a particular area of planning, like housing, environmental policy, or urban design, that you're especially interested in exploring?

I'm a Disaster Risk Reduction minor and find anything surrounding disaster policy and hazard mitigation really interesting. I'm looking forward to exploring any crossover between hazard mitigation and historic preservation that may be happening .

Outside of school and work, what are some of your hobbies or interests?



I think my biggest hobby is watching movies. I try to watch at least two movies a week. I'm especially interested in foreign and older films. Along with that, I've been trying to get outside more this summer, especially cycling.

Embedded Planning - Come and Talk Planning, Thursday Evening, July 30 at Ty’s Wine & Brew

Embedded planning is an approach that brings planners out of City Hall and into the community, meeting people where they live, work, and gather. By holding conversations in familiar places such as coffee shops, parks, farmers markets, and community events, embedded planning helps make planning more accessible, builds relationships, and ensures that more voices are included in shaping the future of the community.

As part of our embedded planning approach, the City of Poulsbo Planning and Economic Development Department will be holding their second summer office hours, after hours at 19740 Viking Avenue, Ty’s Wine & Brew between 5-7 pm. Stop by to chat with a planner, ask questions, and learn more about projects and planning in Poulsbo.

Impact Fee Update Complete:

Preparing Poulsbo for Future Growth

After several months of analysis, public workshops, and City Council review, the City of Poulsbo has officially completed its 2026 Impact Fee Update. The project modernized the City's existing Transportation and Park Impact Fee Programs and established Poulsbo's first Fire Impact Fee Program. Together, these updates ensure the City's impact fee programs are based on current data, reflect the 2025 adopted Comprehensive Plan, and comply with Washington State law.

Impact fees are one-time charges paid by new development to help fund the public facilities needed to serve future growth. Under state law, they may only be used to construct new capital facilities or expand existing facilities needed to accommodate growth, they cannot be used to repair aging infrastructure or correct existing deficiencies. By requiring new development to contribute toward the infrastructure it creates demand for, impact fees help reduce the financial burden on existing residents while ensuring that parks, roads, and emergency services keep pace with community growth.

Transportation Impact Fees

The City's Transportation Impact Fee Program has been in place since 2011. As part of this update, staff recalibrated the fee using the recently adopted Transportation Comprehensive Plan and Capital Facilities Plan, incorporating updated traffic forecasts, revised project costs, and current funding assumptions. The analysis identified approximately $50.5 million in transportation improvements that are eligible for impact fee funding over the planning period, including roadway, intersection, complete streets, and active transportation projects. Public funding sources, such as grants and local revenues, will continue to fund approximately 41% of these eligible improvements, while impact fees will fund the remaining share attributable to new development.

Despite significant changes to the City's transportation planning documents since the last update, the recalculated fee changed very little, from $564 to $562 per average weekday trip, demonstrating that the existing program has remained well aligned with actual infrastructure costs and growth projections.

Park Impact Fees

The Park Impact Fee Program has also been in place since 2011 and were last updated in 2017. The previous update resulted in little to no change in the adopted impact fee because the cost of acquiring parkland and developing new park facilities had remained relatively stable since the prior study. Since then, however, both land acquisition and construction costs have increased substantially, prompting the need for a new analysis.

The City's adopted park level of service has not changed from 13.73 acres of parkland per 1,000 residents, meaning the City is not planning for additional park acreage beyond what has long been established. Instead, the updated study simply recalculates the cost of providing that same level of service using current land values, construction costs, population projections, and anticipated public funding sources. This ensures that new development continues to contribute its proportionate share toward maintaining the community's existing park standards as Poulsbo grows.

Using updated population forecasts from the Comprehensive Plan, the study determined that future growth will require approximately 25.96 acres of additional parkland, representing roughly $27 million in growth-related park improvements. After accounting for approximately $8.5 million in anticipated public funding, the remaining costs are allocated to new development through impact fees.

Recognizing that the updated fee represented a significant increase from the existing rate, the City Council adopted a two-phase implementation schedule, with the first phase taking effect in January 2027 and the second in January 2028. The phased approach reduces immediate impacts while continuing to ensure that future growth contributes toward the parks needed to serve new residents.

Fire Impact Fees

One of the most significant outcomes of the project was the establishment of Poulsbo's first Fire Impact Fee Program.

As the community grows, additional fire stations, emergency apparatus, and supporting facilities will be needed to maintain emergency response times and service levels. Because fire protection is provided by Kitsap County Fire District No. 18, the City worked closely with the Fire District to develop a new impact fee methodology based on emergency response demand, projected population growth, and the Fire District's Capital Facilities Plan.

The study identified approximately $12.7 million in near-term growth-related fire capital projects, including construction of Station 76, expansion of Station 77, a fleet support building, and a new aerial apparatus. After accounting for the portion of these projects benefiting existing development, approximately $3.5 million is attributable to future growth and recoverable through impact fees.

The new program establishes impact fees of:

• Single-family residential: $0.28 per square foot
• Multi-family residential: $0.23 per square foot
• Commercial: $0.61 per square foot

The Fire Impact Fee Program becomes effective January 1, 2027, following execution of an interlocal agreement between the City and Kitsap County Fire District No. 18.

A More Efficient Program

In addition to updating the technical studies, the project modernized how impact fees are administered. For both the Park and Fire Impact Fee Programs, payment has been shifted from building permit issuance to certificate of occupancy. This reduces upfront financing costs during construction while ensuring that impact fees are collected before a building is occupied.

The End Result

The completion of the 2026 Impact Fee Update provides Poulsbo with a modern, legally defensible framework for funding growth-related infrastructure. Each program is based on current construction costs, updated population and employment forecasts, adopted capital facility plans, and the City's long-term vision for growth.

As Poulsbo continues to welcome new residents, businesses, and employment opportunities, these updated impact fee programs will help ensure that investments in parks, transportation, and fire protection keep pace with development, supporting a growing community while maintaining the high quality of life that residents expect.

Welcome to Planning Poulsbo: Understanding How Development Decisions Are Made

The City of Poulsbo is growing, and we understand that the pace of new development can sometimes feel overwhelming. Along with new projects often comes questions about how development proposals are reviewed, who makes the decisions, what opportunities exist for public participation, and why projects are approved.

To help answer those questions, the Planning & Economic Development Department is launching Planning Poulsbo: Understanding How Development Decisions Are Made, a new monthly educational newsletter series designed to provide a look at the development review process.

Each month, we'll explore a different aspect of land use and development review in a clear, easy-to-understand format. Topics may include:

• Who reviews development proposals and who makes the final decision?
• Understanding permit types and review authorities?
• What SEPA is and how environmental review works?
• How and when the public can participate in the review process?
• Why Can't the City Just Say No? 
• How projects are evaluated by staff?
• What happens after a project is approved?

Our goal is to make the development review process more transparent, understandable, and accessible for everyone. Whether you're a homeowner, business owner, developer, or simply interested in what's happening in our community, we hope this series provides helpful insight into how land use decisions are made and the laws, regulations, and public processes that guide them.



We plan to publish a new issue each month for as long as there are topics to explore. We invite you to follow along as we take a closer look at the process behind the projects shaping Poulsbo's future.

When a new development is proposed in Poulsbo, it's common to wonder how the project moves from an idea on paper to a completed neighborhood, business, or apartment building. Many people are surprised to learn that there isn't a single permit, or a single decision, that authorizes a project to move forward. Instead, development proposals go through a structured review process established by state law and the Poulsbo Municipal Code (PMC) to ensure they comply with adopted land use regulations, engineering standards, building codes, and environmental requirements.

Every project begins with an idea, but before construction can begin, it must pass through several stages of review. Depending on the size and complexity of the proposal, this process can take anywhere from a few months to several years. Throughout that time, City staff coordinate across multiple departments and, often, with outside agencies to review everything from land use regulations and environmental impacts to roads, utilities, stormwater systems, and building safety.

The development review process also provides opportunities for public participation. Many projects include public notice, posting on properties and opportunities for the public, while others require public hearings before an independent Hearing Examiner. Public comments become part of the official record and are considered alongside the applicable decision criteria established by state law and the PMC.

Applying the Rules Adopted by the Community

One of the most common questions the City receives is, "Why was this project approved?" or "Why can't the City simply deny a project?" The answer is that development decisions must be based on adopted laws and regulations, not personal opinion or public popularity.

The PMC establishes standards for things like permitted land uses, building height, setbacks, parking, landscaping, environmental protection, design, and infrastructure. When a development application is submitted, City staff and the designated Review Authority evaluate the proposal against those adopted standards and the applicable decision criteria.

If a project does not comply with the PMC or fails to meet the required decision criteria, it may be revised, conditioned  to meet the code, or denied.If a project meets the standards established in the PMC and satisfies the applicable approval criteria, the project is approved. In many cases, approvals include conditions that ensure the project continues to comply throughout construction and operation.

Sometimes a project highlights a concern within the community about an issue that is not addressed by the current PMC. For example, residents may feel that additional landscaping, greater building setbacks, or different architectural standards, should be required. If the proposal complies with the City's existing regulations, those concerns generally cannot be used as a basis to deny that specific application, however, they are part of the public record, provided to the applicant in the event they want to address the specific concerns and evaluated by staff.

Those concerns may become part of a future discussion about updating the PMC. Through the City's legislative process, which includes public participation, Planning Commission review, and City Council action, the City Council can consider whether the regulations should be amended for future development proposals. Any changes adopted through that process would apply prospectively in accordance with state law.

Although every project is unique, most developments in Poulsbo follow the same four-phase process.

Step 1: Land Use Review (Planning and Economic Development Department)

The first phase focuses on determining whether a proposed project complies with the City's adopted land use regulations and whether the necessary land use approvals can be granted.

This phase typically includes:

• Pre-Application Conference. For many projects, applicants meet with City staff before submitting an application. The meeting identifies applicable regulations, required studies, and potential issues early in the process.
• Application Review. Once an application is submitted, staff first reviews it for counter completeness to ensure all required materials have been provided. The application is then reviewed for technical completeness to determine whether enough information (such as traffic and/or wetland reports)  has been submitted to begin formal review.
• Public Notice and Technical Review. After an application is determined to be technically complete, the City issues a Notice of Application, beginning the public comment period. At the same time, City departments and outside agencies review the proposal for consistency with the PMC and other applicable regulations.
• Environmental Review. Many projects also undergo review under the State Environmental Policy Act (SEPA) to evaluate potential environmental impacts and determine whether mitigation is necessary.
• Public Hearings or Administrative Review. Depending on the permit type, some projects are reviewed administratively by City staff, while others require public meetings or hearings before the Planning Commission or Hearing Examiner. We will dive deeper into the Review Authority in a future article!
• Decision. Once the review is complete, the designated Review Authority makes a decision based on the applicable approval criteria established in state law and the PMC.
• Appeal. Land use projects contain an opportunity for appeal by any person with legal standing. 

During the land use review phase, it is common for applicants to revise their plans in response to staff and public comments. These revisions help ensure the proposal complies with applicable regulations before a final decision is made.

Step 2: Site Preparation – Tree Cutting, Clearing and Grading Permits

Receiving land use approval does not mean construction can begin immediately. Before significant site work occurs, many projects require additional permits for site preparation and infrastructure construction.

Depending on the project, this phase may include:

• Tree Cutting and Clearing Permit (Planning & Economic Development Department). If a project includes tree removal or site clearing, a Tree Cutting and Clearing Permit may be required. This review ensures that tree removal, vegetation clearing, and temporary erosion and sediment control measures are consistent with the approved land use plans and applicable provisions of the Poulsbo Municipal Code.

• Grading Permit and Civil Engineering Review (Engineering Department). Most projects also require a Grading Permit. This phase focuses on the detailed engineering plans needed to construct the site's infrastructure. During this review, City engineers evaluate plans for roads, sidewalks, water and sewer utilities, stormwater management systems, grading, drainage, erosion control, and other public infrastructure improvements.

The Engineering Department also coordinates with utility providers and other agencies, as needed, to ensure the proposed infrastructure meets applicable design standards before construction begins.

Once these permits are approved, the applicant may begin site work

Step 3: Building Permit Review (Building Department)

After site preparation is complete, or in some cases concurrently with civil (grading) review, the applicant submits plans for building permits.

Building plans are reviewed for compliance with the adopted building, residential, fire, plumbing, mechanical, energy, and other applicable construction codes. This review focuses on the safety and structural integrity of the proposed buildings and ensures they meet all required construction standards before work begins.

Step 4: Construction, Inspection and Occupancy (Building Department)

During construction, City inspectors perform inspections throughout the project to verify that the work is being completed in accordance with the approved plans, adopted codes, and permit conditions.

Inspections occur at multiple stages, including infrastructure improvements, utilities, and building construction. Before a project can be occupied, all required improvements must be completed, final inspections must be approved, and any outstanding conditions of approval must be satisfied.

Once all applicable requirements have been met, the City may issue a Certificate of Occupancy, allowing the building or development to be occupied and used.

Every Project Is Different

Not every development project follows exactly the same path. A small residential addition may require only a building permit, while a new subdivision, mixed-use development, or commercial project may involve multiple land use approvals, environmental review, engineering permits, and public hearings.

Regardless of the size of the project, every development proposal is reviewed using the same guiding principle: City decisions must be based on adopted laws, regulations, and approval criteria. The goal of the development review process is to help ensure that new development is safe, complies with the Poulsbo Municipal Code, protects public health and safety, and reflects the standards adopted by the community.

Development Review at a Glance

A Pre-Application Conference is a meeting between a project team and staff conducted prior to the submission of a detailed application. Nearly all projects change after the pre-application conference and prior to application submittal. Typically, projects at this stage are very preliminary. The following pre-app conferences were held in July:

• Urdahl Cottages. 14 detached single-family dwelling lots within a Planned Residential Development, with 24 detached accessory dwelling units, private streets, common open space, recreational amenities, and associated infrastructure.

• Lilehammer Ridge. Subdivision (with Planned Residential Development) of 3.8 acres into 18 single-family lots.

In Development

The following projects are currently under construction:

Projects under construction for site work (grading, stormwater vaults, installation of sewer lines, etc.) are managed by the Engineering Department. Please contact them for questions or concerns.

Projects under construction for buildings (vertical construction) are managed by the Building Department. Please contact them for questions or concerns.

What is Being Built Behind Home Depot?

The Westry Village Townhomes ars a residential community located along Reliance Street within the Olhava Master Plan area. The project will provide 66 attached townhomes on a 7.69-acre site and is one of the first developments in Poulsbo to utilize the City's Unit Lot Subdivision regulations, allowing each townhome to be individually owned rather than operated as apartments.

The project includes 66 townhomes, each with a two-car garage and two dedicated parking spaces, along with 17 guest parking spaces distributed throughout the community. The development will also connect to existing roads, utilities, and regional stormwater facilities that were constructed as part of the Olhava Master Plan.

Westry Village is designed around a network of private streets, sidewalks, landscaped open spaces, and pedestrian connections. Residents will enjoy a variety of outdoor amenities located throughout the neighborhood, including:

• A central gazebo with picnic tables and barbecue area
• Multiple picnic and seating areas
• Bike racks throughout the site
• A series of outdoor fitness stations located along walking paths
• Landscaped gathering areas and neighborhood open spaces
• A public trail within the preserved tree buffer along the western property line that connects to the surrounding trail network.

The development also emphasizes landscaping and preservation of existing natural features. Approximately 31 percent of the site will be landscaped, while the existing 100-foot-wide tree buffer along the west property line will remain, providing visual screening between the new neighborhood and adjacent residential properties while preserving the existing public trail. Stormwater from the project will be treated and conveyed to an existing regional stormwater facility that serves the Olhava Master Plan area.

Once complete, Westry Village will expand housing choices in Poulsbo by providing 66 new fee-simple townhomes, offering opportunities for homeownership while adding new open spaces, recreational amenities, and pedestrian connections within the Olhava neighborhood.

The Many Roles of PED Staff

Did you know? On top of the larger land use applications, the PED Department staff also responds to public records requests, business license applications, sign permits, tenant improvements, deck permits, grading permits, and code enforcement requests.

For the month of June PED staff reviewed/responded to:

• 29 Business Licenses
• 4 Public Record Requests
• 6 New Single Family Residences
• 1 Administrative Determination
• 1 Zoning Verification
• 1 Neighborhood Meeting
• 2 Shoreline Exemptions

Planning Commission Calendar

See below for agenda items for Planning Commission meetings. Please note that agenda items are subject to change. Check the website for the official agenda.

• July 14 - Cancelled
• July 28 - Cedar View Prelminary Subdivision and PRD Public Meeting