- Q: What
are impact fees?
A: Impact fees are charges assessed against
newly-developing property that attempt to recover the cost incurred
by a local government in providing the public facilities required
to serve the new development. 1.
Q:
Who pays impact fees?
A: The
developer of a proposed development pays the impact fee, although
the developer will, as a practical matter, pass the costs of
these fees onto the purchasers of the developed property. The
local government examines the proposed development, determines
what facilities will be required to sustain the desired level
of service, and charges the developer a fee to cover a portion
of the cost of the needed system improvements. 1.
Q:
What kinds of public facilities does new development impact?
A: Schools,
roads, fire & police protection, emergency services, water
and sewer service, parks and recreation facilities, public transportation
to name a few.
Q: Will
the new development pay the total cost of the required infrastructure?
A: Local
governments have the option of levying impact fees on either
all or part of the full cost of new infrastructure.
Q: Won't
Impact Fees raise the cost of homes and price lower income folks
out of the market??
A: "Although
impact fees do not alter total costs, they do affect the distribution
of costs, or who pays for the facilities. The developer is likely
to pass these costs on to the home buyer." 1.
"There are two principal
ways to mitigate the effect of impact fees on housing affordability.
One is to waive impact fees or to have the local government pay
the fees for qualified
affordable housing projects from another funding source. The
other method is to design
the fees so that they are lower for smaller, more affordable
units (sometimes referred to
as "variable-rate" impact fees)." 2.
Most importantly, in Rutherford
County, there are thousands of existing homes on
the market which are not affected by impact fees at all. It is
only newly built homes that create an additional impact on the
county.
Q: What
is the effect of impact fees on general business activity?
A: "All
things being equal, businesses may choose to locate in a community
without impact fees in preference to one that has impact fees.
However, there are many other factors in a location decision.
For instance, some cities attribute their success in attracting
major new employers to the quality of services and amenities
which they offer, such as an open space system. Some companies
choose to locate in an area with these extra amenities in spite
of greater incentives, tax breaks, and lower fees offered by
competing cities." 1.
An example of the
appeal of Rutherford County to businesses:
Byron Hensley, Staff Reporter
of The Daily News Journal, reported on the County approving
the Asurion contract on Friday, October 10, 2003:
Following the vote, Joe Rando,
senior vice president of operations for Asurion, said the company's
current presence in the area was why it chose to build its new
center here.
"One reason is that we're
already here, and wanting to stay," he said. "One advantage
is to not relocate our entire work force."
The area's proximity to the
Nashville airport, as well as within much of the U.S. population
was another factor, as was the potential for finding qualified
employees here.
"We can draw from technical
schools here in Murfreesboro, MTSU and out of Nashville,"
he said.
... MORE TO COME
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