Surprise, other cities discuss new impact-fee limits

Surprise is not alone in its frustration and confusion about a new state law limiting what fees cities can assess builders. Representatives from cities across metropolitan Phoenix met last month at a workshop to discuss the law's impact. Many said they were unsure about how pieces would be interpreted, but all agreed the law is an albatross for cities. "You can't change the rules midstream on these communities," said Avondale City Attorney Andrew McGuire, who negotiated with lawmakers on the bill. The law, Senate Bill 1525, overhauls the types of projects paid through impact fees. Cities assess builders impact fees to fund infrastructure needed for new homes and businesses, such as roads, utilities, and police and fire stations. Some fees will be outlawed when the law takes effect in January, including those used to build government buildings such as city halls and courts. Parks bigger than 30 acres and libraries of more than 10,000 square feet are also banned. At last week's meeting, attorneys working with the League of Arizona Cities and Towns told members that a lack of clarity in the law had opened the door for potential litigation. They advised cities to interpret the law conservatively. McGuire said cities might avoid legal challenges from the homebuilding industry or further reform by implementing the law uniformly without trying to bend any rules. A group is being formed to help cities draft model ordinances.

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