Arthur C. Nelson, Ph.D., FAICP Presidential Professor and ...
It’s All About Fairness National Impact Fee Roundtable Denver – October 2005 Dr. Arthur C....
-
Upload
suzan-ferguson -
Category
Documents
-
view
217 -
download
0
description
Transcript of It’s All About Fairness National Impact Fee Roundtable Denver – October 2005 Dr. Arthur C....
It’s All About FairnessIt’s All About FairnessNational Impact Fee RoundtableNational Impact Fee Roundtable
Denver – October 2005Denver – October 2005
Dr. Arthur C. Nelson, FAICPDr. Arthur C. Nelson, FAICPProfessor & DirectorProfessor & Director
Urban Affairs & PlanningUrban Affairs & PlanningVirginia Tech – Alexandria CenterVirginia Tech – Alexandria Center
One Fee Does Not Fit AllOne Fee Does Not Fit AllFlorida County “A”Florida County “A”
School impact fee per unit = $5,443School impact fee per unit = $5,443 Assumes 0.31 students per unitAssumes 0.31 students per unit Actual apartment rate is 0.12 per unitActual apartment rate is 0.12 per unit Proportionate share should be = $2,057Proportionate share should be = $2,057 Apartments charged in excess of their Apartments charged in excess of their
proportionate shareproportionate share Public safety & parks Public safety & parks same problem same problem
fees based on 2.38 persons per unit but fees based on 2.38 persons per unit but apartments average 1.81apartments average 1.81
Proportionate ShareProportionate Share
Equal protectionEqual protection Similarly situated people must be considered Similarly situated people must be considered
similarlysimilarly Some argue that each residential unit is Some argue that each residential unit is
similar to similar to the other, hence equal impact fees the other, hence equal impact fees acceptableacceptable
Constitution addresses people not residential Constitution addresses people not residential unitsunits
If the average person is charged 3 times their If the average person is charged 3 times their school impact, equal protection may be school impact, equal protection may be
violated violated
`̀
<500500-999
1,000-1,4991,500-1,999
2,000-24992,500+
Square Feet
2.12.22.32.42.52.62.72.82.9
33.1
Per
sons
House Size
0.22 0.25 0.33 0.37 0.43 0.52Acres
2.12.22.32.42.52.62.72.82.9
33.1
Per
sons
Lot Size
1 2 3 4 5+Persons
0
0.5
1
1.5
Trip
s SF TripsMF Trips
Persons in Household
SF 4 RoomsSF 5 Rooms
SF 6 RoomsSF 7 Rooms
SF 8+ Rooms0
0.2
0.4
0.6
0.8
1
1.2
Pea
k Tr
ips
Per
Uni
tSingle Family Rooms
MF O BedsMF 1 Bed
MF 2 BedMF 3 Bed
MF 4 Bed0
0.2
0.4
0.6
0.8
1
1.2
Pea
k Tr
ips
Per
Uni
tMulti-Family Bedrooms
Density MattersDensity Matters Impacts fall when density rises for:Impacts fall when density rises for:
Public safetyPublic safety UtilitiesUtilities TransportationTransportation
Persons Per UnitPersons Per Unit
151-700701-2,000
2,001-4,0004,001-6,000
6,000+
Units Per Square Mile
0
5
10
15
20
25
30
35
Dai
ly V
MT
Per
Per
son
Units Per Square Mile
<750751-2000
2001-40004001-6000
6,000+
Units Per Square Mile
0
5
10
15
20
25
30
35
Per
cent
of
all T
rips
Transit
Walk-Bike
Nonvehicle Trips by Density
Insert ABQ waterInsert ABQ waterMean Water Consumption by Lot Size (Grouped in .05 acre increments)5 Year Average for June Water Consumption
0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50
Lot Size Increments (acres)
10.00
20.00
30.00
40.00
50.00
Mea
n W
ater
Con
sum
ptio
n
Location MattersLocation Matters Distance to public transitDistance to public transit Distance to schoolsDistance to schools Location in “fully served” versus Location in “fully served” versus
“partially “partially served” areasserved” areas Atlanta reduces road fees by 25% if Atlanta reduces road fees by 25% if
within within 1,000 feet of rail station1,000 feet of rail station DeKalb County, GA to reduce road DeKalb County, GA to reduce road
feesfees based on rail and bus accessbased on rail and bus access
Configuration MattersConfiguration Matters Integrated office, retail and Integrated office, retail and
residential residential reduces road impacts reduces road impacts by 30%+by 30%+
Connected to multi-modal can reduce Connected to multi-modal can reduce road road impacts by 50%+impacts by 50%+
Few impact fee programs recognize Few impact fee programs recognize these these reductions on fee schedules reductions on fee schedules
Assessment Base MattersAssessment Base Matters Fees usually assessed on only Fees usually assessed on only
residential:residential: Parks & recreationParks & recreation LibrariesLibraries schoolsschools
What is the source of impact?What is the source of impact? New jobs = new householdsNew jobs = new households Jobs = impactJobs = impact
FairnessFairness Broaden the base to include all developmentBroaden the base to include all development
Credits MatterCredits Matter External revenue creditsExternal revenue credits
Account for non-local government revenuesAccount for non-local government revenues ““Double-Tax” revenue creditsDouble-Tax” revenue credits
Several Florida counties give dedicated Several Florida counties give dedicated school school construction property tax credits construction property tax credits based only based only on residential share, not all on residential share, not all developmentdevelopment
At least two counties give no such creditAt least two counties give no such credit Residential pays once for impact fees and again Residential pays once for impact fees and again
for paying off bonds for schools used by existing for paying off bonds for schools used by existing residentsresidents
Parks and RecreationParks and Recreation Questionable PracticesQuestionable Practices
2 Georgia counties assess the same fee on all 2 Georgia counties assess the same fee on all residential units.residential units.
Fees on apartments 36% to 51% higher than Fees on apartments 36% to 51% higher than proportionate-shareproportionate-share
Best PracticesBest Practices Manatee County, FLManatee County, FL Fees vary by type of unit and by size of unit Fees vary by type of unit and by size of unit
based based on bedroomson bedrooms
Fire & EMSFire & EMS Questionable PracticesQuestionable Practices
1 California city and 1 Georgia county assesses 1 California city and 1 Georgia county assesses the the same fee on all residential units.same fee on all residential units.
Fees on apartments 33% to 45% higher than Fees on apartments 33% to 45% higher than proportionate-shareproportionate-share
Best PracticesBest Practices West Valley City, UT uses Functional PopulationWest Valley City, UT uses Functional Population Fees based on four residential categoriesFees based on four residential categories
AlmostAlmost Missoula, MT has density-distance- Missoula, MT has density-distance-based fees that vary from $91 to $1,354 per unitbased fees that vary from $91 to $1,354 per unit
RoadsRoads Questionable PracticesQuestionable Practices
2 California cities use same trip rate and 2 California cities use same trip rate and length to length to charge fees in all residential units. charge fees in all residential units.
1 California city gives no credit.1 California city gives no credit. Best PracticesBest Practices
Manatee County, FLManatee County, FL 4 residential categories with 3 sizes in each, and 4 residential categories with 3 sizes in each, and
different impact figures for eachdifferent impact figures for each Albuquerque, NMAlbuquerque, NM
Fees based on 7 service areas, type and size of Fees based on 7 service areas, type and size of unit unit and is $0 in several service areas and is $0 in several service areas
Water & WastewaterWater & Wastewater Questionable PracticesQuestionable Practices
Common to assess based on meter size and Common to assess based on meter size and equivalent units.equivalent units.
Emerging evidence suggests apartments Emerging evidence suggests apartments overcharge overcharge by 2 to 5 timesby 2 to 5 times
Best PracticesBest Practices Scottsdale, AZScottsdale, AZ1 du/2.5 ac = $5,4921 du/2.5 ac = $5,492 1 du/ac = 1 du/ac = $3,382$3,3822-4 uncluster = $2,2032-4 uncluster = $2,203 2-4 cluster = 2-4 cluster = $1,802$1,8024-8 du/ac =4-8 du/ac = $1,585 $1,585 9+ du/ac 9+ du/ac $1,337$1,337
Next StepsNext Steps Need to vary impact fees by type and size of Need to vary impact fees by type and size of
residential unitresidential unit Refine definitions of “proportionate share”, Refine definitions of “proportionate share”,
““pro rata” and “reasonable relationship”pro rata” and “reasonable relationship” Base size on bedrooms (census) or square Base size on bedrooms (census) or square
feet feet Encourage fee schedules to use automatic Encourage fee schedules to use automatic
impact reductions for location, configuration impact reductions for location, configuration benefitsbenefits
Adopt legislative finding that all Adopt legislative finding that all development development creates impacts on and creates impacts on and benefits from benefits from facilities facilities all all development needs to be development needs to be assessed.assessed.