Impact fee battle - a Mesa case study

Right now, Lehi Crossing is more than 290 acres of bare dirt being pierced by heavy machines in preparation for utilities, streets and, eventually, 914 homes. In a few months, the first moving van will arrive. The minute it does, the new residents will need police and fire protection, garbage pickup and other city services. Even before then, Mesa must install waterlines and sewerlines for the William Lyon Homes development near Val Vista Drive and Thomas Road. To put it mildly, providing those services and improvements has an impact on Mesa's bottom line. And that's where development impact fees come in. The idea is to make growth pay for itself, or to at least offset some of the costs imposed on existing residents by developers who profit from new neighborhoods. But cities say their ability to levy fees is threatened by pending Arizona legislation. Mesa approved the Lehi Crossing development in 2006, just as the housing market began to crash. The gated community will feature homes between 1,300 and 4,000 square feet, with commensurate pricing. But no matter its size and cost, each home comes with an extra $8,506 built into the price tag. At buildout that will amount to almost $7.8 million. The fees are paid either when permits are pulled or when the completed home is sold, and are funneled into various accounts to pay for specific services or infrastructure.

Click here to view this article from its source.