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Molalla City Council yesterday decided to waive system development charges on new commercial and industrial developments until the end of 2010.

Proposal creator and Molalla City Manager John Atkins Jr. pushed for the moratorium, which will be in effect from Jan. 1 to Dec. 31, 2010, or until a total of $1 million in SDC waivers has been reached.

“I don’t know that it’s necessarily going to generate millions of dollars, but I do know it will generate interest in Molalla,” Atkins said. “I am very excited.”

Molalla is hurting for new development because of increasing business closures over the last 18 months, Atkins said. The town has lost two car dealerships, a building supply company and many small businesses and storefronts in the past year and a half.

“We’re worried we’re going to lose some more,” Atkins said. “I’ll be interested to see what this moratorium leads to.”

Applicants with commercial and industrial projects wanting to take advantage of the moratorium will need to start construction within 180 days of receiving approval. Atkins said that 15 years ago, Junction City introduced a limited SDC moratorium and was successful.