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But rules under which developers can apply for special fee consideration sent back for more work
Construction Worker Holding Measure
Reductions in most developmental impact fees for new construction in Pinal County were approved by the Board of Supervisors at their Feb. 3 meeting. However the Board put off yet again changes in the county ordinance to allow alternative fee determination for special projects.
The new developmental impact fees are now scheduled to go into effect on May 9.
The reason given for splitting up what had been introduced at the Dec. 9 Board meeting as Resolution 120915-DF was that under Pinal County statutes changes in fees go into effect 90 days after approval while changes in statute language can become effective in 30 days. With contractors holding back requests for new construction permits until the lower fees go into effect, the Supervisors opted to approve the new fee schedule now while spending more time ironing out the wording of the alternate fee determination section of the ordinance, said Board Chairman Todd House.
The split was suggested by Himanshu Patel, director of the Pinal County Community Development Department, who reported new construction and developmental projects in the county grinding down to a crawl.
Under the new schedule, most impact fees would be lowered in Pinal County, while the fee structure for residential housing would be increased from two to four categories. Instead of separate fees for new homes under and over 1,500 sq. ft., the new categories would be under 1,000 sq. ft., 1,001 to 1,500 sq. ft., 1,501 to 2,100 sq. ft., and over 2,100 sq. ft.
In the four Pinal County Developmental districts, impact fees would rise only in the North Central District (which includes Apache Junction, San Tan Valley and Queen Creek), and not in all construction categories. For instance, in the less than 1,000 sq. ft. residential category, the fee would drop from $4,462 to $3,940 but rise in the 1,001/1,500 sq. ft. category from $4,462 to $6,532. Fees also would rise in the over 2,100-sq.-ft. residential, Institutional, Commercial and Other Services categories. In the South Central, East (including Superior, Kearny, San Manuel, Oracle and Mammoth) and West districts would see all impact lowered from current levels, with non-residential construction fees in the West District dropping by more than $7,200. An additional fee was levied on construction in the extreme northern part of the East District (including Superior) where there are no arterial roads.
Developmental impact fees are levied to take care of safety, recreational open space (parks) and roads needs resulting from development of properties to account for increased population densities or commercial/industrial uses. The new schedule bases fees on the square footage of new structures, with larger properties accessed higher fees.
But Supervisor Anthony Smith argued that square footage may not be the only indicator of a development’s ultimate use or occupancy. He cited retirement communities like SaddleBrooke, where new homes exceed 2,000 sq. ft. but are occupied by only two retired people who have most of their immediate needs served inside these communities and travel very little off premises. This would negate the need for major improvements outside the community such as widening roads, he said.
On the opposite end of the spectrum, Smith noted plans to build tiny houses (homes with square footage equivalent to efficiency apartments in urban areas) in Arizona City. A collection of homes of under 800 sq. ft. would result in a higher population density, thus having a bigger impact on the local infrastructure than larger senior housing, he noted.
As currently drafted, the alternative fee determination section of the proposed resolution defines those projects where developers can seek special consideration outside the approved impact fee structure as those differing greatly from developments in the same impact fee category. To get special fee consideration, developers must submit to the county manager an alternative development report explaining why the impact of the development would be substantially different from the norm, detailing what the actual costs and burdens would be to the county. The report can propose an alternate fee based on statistics compiled in the report. After reviewing the report, the county manager can make a determination as to the development fee to be charged. The county manager may require the applicant to pay an administrative fee to cover the actual costs of reviewing the special fee determination application.
Some developers at the meeting objected to having to bear the cost of having the county review their applications for special fees. However Cameron Carter of the Rose Law Group praised the Supervisors for allowing more flexibility in its impact fee structure and that making applicants bear the cost of reviewing their requests for special fees was right as it would help prevent frivolous appeals.
Other criticisms concerned the wording of the alternate fee determination section. Some found the wording to verbose and thus open to misinterpretation. Some changes shortening the text were proposed, along with a change that would enable developers to seek a special fee if only one of three criteria were met rather than all three.
The alternate fee determination section was sent back to committee for additional work. Board Chairman House said that wording that all parties can agree on could be ready for approval by the April Board meeting, thus enabling the revised impact fee ordinance and the already revised fee schedule to go into effect at the same time.
James J. Hodl is a career journalist who has worked for newspapers, magazines and trade journals. A graduate of Southern Illinois University with a Bachelor of Science degree in Journalism, Hodl began his career as a reporter with the Palatine (IL) Herald and the Morton Grove (IL) Review before becoming editor of the trade publication Appliance Service News. In recent years, Hodl has had articles published in Consumers Digest, Good Housekeeping, Home Remodeling, Kitchens & Baths and Salute; and has contributed to trade publications serving the home furnishings, restaurant and casino markets. A native of Chicago, Hodl relocated to San Tan Valley in 2013.
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