NORTHWEST EXPLORER: Weds, February 18, 2009

Fee debate could pit OV against city

By Patrick McNamara

 

Tucson considers waiving impact fees to draw more development

Lawmakers in Tucson recently debated the idea of suspending development impact fees as a way to spur the local economy.  At a Tucson City Council meeting last week, Ward 2 Councilman Rodney Glassman introduced the idea that he said could inspire local residential and commercial builders to start new projects and put people to work in the waning construction trades.

Glassman said getting the building sector back to work was important because of the number of jobs at stake.  The move stands in stark contrast with the actions of Oro Valley where impact fees have been increased twice since 2007.

“One of the things you have to consider when you do have impact fees is competing against other communities,” Oro Valley Mayor Paul Loomis said.

Town leaders last September voted to increase development impact fees. The new charges total nearly $14,000 for each new home, making the town arguably the most expensive jurisdiction in Southern Arizona to build in. 

“By having high impact fees, Oro Valley is driving the development somewhere else,” Loomis said.

Oro Valley charges impact fees for parks, police, libraries, transportation and general government functions. In addition, there is a 4% tax on construction materials.

Here’s how much money the fees earned in recent years:
2005............$3.9 million
2006............$5 million
2007............$4.8 million
2008............$5.9 million
2009............$4.5 million*
* Projected

FULL STORY:   http://www.explorernews.com/articles/2009/02/22/news/
doc499b517063ca3047029434.txt