Estimate of impact fees ‘staggering’
Smart Growth Coalition examines costs of development.

By DIDI TANG of the Tribune’s staff

Story ran on Friday, July 13, 2001

A coalition investigating development fees has come up with an estimate of what it might cost per home to develop new subdivisions in Boone County.

According to the Boone County Smart Growth Coalition, the cost per new home for infrastructure such as roads, schools, water and sewer service can be as high as $32,689. The Boone County Commission for five years has unsuccessfully lobbied the legislature to give it the authority to implement development fees.

Development fees, also known as impact fees, are intended to make developers pay for extended infrastructure to new subdivisions.

Southern District commissioner Karen Miller called these numbers "staggering" though she has always pushed for an authority to charge development fees.

Coalition members agreed that the number is high but said it’s only intended to educate the public about the costs of growth. Actual impact fees would likely be much less.

"A house cannot function in a vacuum," said Ben Londeree, a retired professor from the University of Missouri-Columbia. "It needs roads, water and sewer service, schools, etc."

The number is only an estimate and could change by $5,000 either way. "It is not too much off the mark," said Londeree, who has taken the lead in studying development fees for the coalition.

"The actual number is not important," Londeree said. "We just want people to know that it is huge."

The issue of tax equity has long bothered local officials. Opponents of impact fees say extra costs will be passed along to homebuyers and thus drive market prices for new homes even higher.

Steve Herigon, a local developer, said new homebuyers will end up paying in the long run. "It’s not fair for" them "to be burdened with more costs," Herigon said, noting they are already paying income and property taxes to support public infrastructure and should not be "hit twice."

The smart growth coalition, formed in March, decided to investigate actual capital costs needed to build infrastructure external to new developments.

"We welcome their contribution," said presiding commissioner Don Stamper. "But I think these numbers need additional analysis."

"It’s a delicate walk between affordable housing and how growth supports itself," Stamper said of development fees. "$30,000 - that’s a lot of money."

Both Miller and Stamper said they will seek additional opinions on the study.

Londeree said these infrastructure capital costs "don’t necessary translate into impact fees.

"Impact fees are much lower. Usually, they are about $5,000," he said.

"We want the citizens of Columbia and Boone County to be aware of the costs," Londeree said, noting his belief that Columbia and Boone County don’t charge high enough fees to recover costs.

The city of Columbia, for example, charges $355 to hook up a residential water meter while the city of Lee’s Summit charges $3,000, the coalition said.

"Some people want full cost recovery. Some people don’t want impact fees at all," Londeree said. "Somewhere between the two extremes, we hope we can come up with something workable."

Londeree said his group looked at more than 50 communities that are dealing with development fees in the nation.

Anyone interested in development fees can visit the coalition’s Web site at http://smartgrowth.missouri.org.