The cost for downtown Pullman businesses to use the sidewalk is increasing following an update to city regulations for the first time in over 50 years.

During a recent meeting, Pullman City Councilmembers approved a new ordinance regarding right of way sidewalk leases and established a new fee structure. The council had previously discussed the need to update the regulations, which had not changed since 1971. It was noted that the old rules were unclear, inconsistently enforced, and raised concerns about the use of public funds, as they allowed businesses to utilize public right of way without adequate reimbursement to taxpayers.

Previously, businesses were charged a fee of 5 cents per square foot to use the sidewalk for activities such as cafés or sales. Additionally, there was no requirement for businesses to carry insurance for liability related to the use of public right of way.

Under the new proposal, businesses will be required to pay a flat annual rate of 245 dollars to use the sidewalk. Additionally, a minimum liability insurance coverage of 2 million dollars was proposed. This insurance requirement faced opposition from several downtown business owners during the council meeting, with some indicating that they do not currently carry that level of insurance and that it could significantly increase their operating costs. The 2 million dollar insurance threshold was based on recommendations from the City of Pullman’s insurance carrier. In response to the concerns raised, the council voted to reduce the insurance requirement to one million dollars, which could lower costs for businesses wishing to lease sidewalk space. Many downtown business owners indicated that they already possess a one million dollar policy.

In related news, the City of Pullman recently completed a project to rebuild Main Street downtown, costing at least 12.3 million dollars, primarily funded by federal government COVID relief spending. The project resulted in the closure of Main Street for seven and a half months, which exceeded the contractor’s initial timeline of six and a half months.