FARMINGTON -- Impact fees for developments will be increased even as a developer warned city officials they are sending the wrong signal to companies that may want to locate here.
A new road impact fee schedule was approved Tuesday night by a 4-0 vote of the city council and is expected to raise the costs of all projects across the board. The change raises the fee for a single-family dwelling from $1,875 to $2,467 and for commercial projects from $3,482 per 1,000 square feet to $3,592. The new fees will be effective in 90 days.
"This is a bad time to send a message we're raising fees," developer Rich Haws told city officials. He said Farmington's impact fees are already high compared to Bountiful or Layton and raising them will make it more difficult to market local projects. Haws suggested a plan he is developing north of Station Park would generate as much as $2 million in impact fees, at current levels, and the changes will add another $150,000 in costs.
"How do we compete? How can we send the message to the marketplace that we really do want you here?" Haws said.
City officials admit the fees are high but suggested the city has less infrastructure in place than its neighboring cities in Davis County, and thus impact fees need to be raised to try and approximate the costs of installing that structure, as part of development.
City Attorney Todd Godfrey noted that existing guidelines require cities to try and measure the cost of development and pay for them through impact fees, or subsidize those costs through another fund. He suggested even at the old rates, city officials were subsidizing improvements and developments through some source other than impact fees.
City Manager Max Forbush said the city is already in a position where it will have to consider bonding next year to pay for a road near Station Park it does not have the funds to cover. He noted impact fees will help pay for that bond if it's approved.
Councilman Rick Dutson said the city had no choice but to raise rates.
"We're stuck. We've got to make sure we cover the costs of these improvements," Dutson said.
Councilman Sid Young said he voted for the new fees with some hesitation because "I don't see a better approach."
Comments