presented by: rick giardina, president rick giardina & associates, inc
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National Impact Fee Roundtable 2004. Impact Fee Basics: Implementation Considerations. Presented by: Rick Giardina, President Rick Giardina & Associates, Inc. R. G. A. &. Implementation Considerations. ?. ?. ?. ?. Effective Date Consistency With Existing Exactions - PowerPoint PPT PresentationTRANSCRIPT
Presented by:
Rick Giardina, President Rick Giardina & Associates, Inc.
Impact Fee Basics: Implementation Considerations
National Impact Fee National Impact Fee Roundtable 2004Roundtable 2004
Implementation Considerations
Effective Date Consistency With
Existing Exactions “Phasing-in” for
Developments Already in the “Pipeline”
RA&G
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Implementation Considerations (continued)
Defining Service Areas
City-wide
Segment Areas, e.g., Industrial Park, by Traffic Zone
Fee Waiver or Rebate
Impact Fees and Annexations
Updating Fees Periodically
RA&G
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Phase-In Plan For Projects Already In The “Pipeline”
If By (a specific date) a Development: Has Pulled a Permit Owns/Has An Option To Purchase Land Has Secured Financing Has Entered Into A Written Agreement
With City Providing For: Payment of fees Dedication of land Construction of planned facilitiesR
A&G
Impact Fees – Myths, Half-Truths and Other Fairy Tales??
Impact Fees fully cover the cost of new development A “properly” designed fee may
come close How do you define growth? Does not cover O&M costs
Additional police officers, fire fighters, etc.
Impact Fees – Myths, Half-Truths and Other Fairy Tales??
Impact Fees are “anti-growth” and will dry up development Impact fees ensure that
services are available Impact fees maintain
community standards Impact fees help make a
development “marketable” Impact fees may be a catalyst
for growth
Growth Happens With of Without Impact Fees
Top 3 in GrowthFayetteville, AK $0Las Vegas, NV $9,043Fort Meyers-Cape Coral, FL $6,805 - $10,523Bottom 3 in GrowthFlint, MI $0Youngstown-Warren, OH $0 - $2,496Gary, IN $03 Most ImprovedSavannah, GA $1,000Des Moines, IA $1,668Newburgh, PA-NY $03 Greatest DeclineSanta Cruz-Watsonville, CA $4,556 - $31,099Boston, MA $0Portland-Vancouver, OR-WA $5,748 - $8,888
(1) As ranked in “Best Performing Cities: Where America’s Jobs Are Created,” the Milken Institute, July 2003.
(2) Fees for parks and recreation, water, sewer, roads, and schools as tabulated by RGA.
Category of Growth (1) Fees (2)
Considerations in Choosing a Locality
State and Local Educational Parks and Recreation Business ActivityTaxes Institutions Related Regulations
Cost-of-Living Natural Resources Water and Growth andWastewater Services
Development Policies
Competition/ Financial Resources Public TransportationEnvironmentalBusiness Location Regulations
Geographic Police and Fire Zoning RestrictionsLocation Protection
Workforce InformationCharacteristics Technology Services
Air, Water, and Land Health ServicesTransportation Access
Social, Recreational, Electric Powerand Cultural Amenities
Business Resources Public Services GovernmentalEnvironment Policies and Regulation
Impact Fees – Myths, Half-Truths and Other Fairy Tales??
Impact Fees drive up home costs and prevent ownership for 1st time buyers, but:
Credits for affordable housing can mitigate impact
Fee not always passed-on in the price of the home; can be absorbed by others in the “food chain” depending on market conditions:
Land owner Developer Homebuilder Home owner
Impact Fees – Myths, Half-Truths and Other Fairy Tales?? Development more than pays
for itself through job creation, incremental property and sales taxes, etc. True for some types of
development but not all Retail
Residential
Impact Fees – Myths, Half-Truths and Other Fairy Tales?? Our city can’t compete if we
implement impact fees True, if your fees are “out of line” with
the area False, if others in the area have fees
and yours are “reasonable” – where else is development going to go?
Absent fees, development costs don’t go away - they are just recovered via other sources
Key Considerations Public Input Process Sound Basis for Cost
Estimates “Linkage” Capacity to Provide
Service Upon Request Ability to Execute Projects/
Spend the Money!
RA&G
Questions and Discussion
Rick Giardina, President
Rick Giardina & Associates
3300 S. Parker Road, Suite 305
Aurora, CO 80014
(303) 369-3535
(303) 369-3540 (Fax)
www.rgiardinaassoc.com
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