Presented by: Rick Giardina, President Rick Giardina & Associates, Inc. Impact Fee Basics: Implementation Considerations National Impact Fee Roundtable 2004

Implementation Considerations Effective Date Consistency With Existing Exactions “Phasing-in” for Developments Already in the “Pipeline” R A & G ? ? ? ?

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 R A & G ? ? ? ?

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 facilities R 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 Growth Fayetteville, AK$0 Las Vegas, NV$9,043 Fort Meyers-Cape Coral, FL$6,805 - $10,523 Bottom 3 in Growth Flint, MI$0 Youngstown-Warren, OH$0 - $2,496 Gary, IN$0 3 Most Improved Savannah, GA$1,000 Des Moines, IA$1,668 Newburgh, PA-NY$0 3 Greatest Decline Santa Cruz-Watsonville, CA$4,556 - $31,099 Boston, MA$0 Portland-Vancouver, OR-WA$5,748 - $8,888 (1)As ranked in “Best Performing Cities: Where America’s Jobs Are Created,” the Milken Institute, July (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 LocalEducationalParks and RecreationBusiness Activity TaxesInstitutionsRelated Regulations Cost-of-LivingNatural ResourcesWater and Growth and Wastewater ServicesDevelopment Policies Competition/Financial ResourcesPublic TransportationEnvironmental Business LocationRegulations GeographicPolice and FireZoning Restrictions LocationProtection WorkforceInformation CharacteristicsTechnology Services Air, Water, and LandHealth Services Transportation Access Social, Recreational,Electric Power and Cultural Amenities BusinessResourcesPublic ServicesGovernmental EnvironmentPolicies 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! R A & G

Questions and Discussion

Rick Giardina, President Rick Giardina & Associates 3300 S. Parker Road, Suite 305 Aurora, CO (303) (303) (Fax) For Additional Information Contact: