Haws Companies reimbursement OK'd

Thursday , March 06, 2014 - 10:12 AM

Staff And Correspondents

FARMINGTON -- City officials have authorized the reimbursement of $255,013 to The Haws Companies from transportation impact fees for the right of way associated with Station Park.

In action taken recently, the council voted 5-0 to authorize the reimbursement. Previously, the city had paid THC $541,493 to date, leaving the $255,013 balance on the issue.

City Manager Dave Millheim, a former developer, said the issue clears up contractual obligations the city had to the developer and said any future development fees associated with THC projects will be owed when due and not subject to credit.

Secondly, he stressed using credits can get municipalities in trouble because there is a temptation to use fees collected for other projects, ignoring earmarked funds.

He said that practice is not allowed under the impact fee act and the reimbursement was paid to remove that temptation.

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