Wednesday, February 8, 2023 10:14 am

[OPINION] Silencing the impact fee

silenceBy Richard Hubbard, president & CEO Valley Partnership | AZRE

(Editor’s note: Opinion pieces are published for discussions purposes only.)

In 2011, the legislature modified the development “impact” fee laws. First, a little “Impact Fees 101.”

Arizona has the policy “new growth pays for itself.” When a developer wants to build a project, the city requires that the developer pay fees for the municipal infrastructure to service the project. Infrastructure includes “hard costs,” sewer lines, water lines, streets and sidewalks. It also includes “soft costs,” infrastructure maintenance and public safety services.

The law requires a “nexus” between the fee and the project. Developer pay fees directly related to the “impact” of the project to municipality. Impact fees have been a constant issue between municipalities and developers. Valley Partnership has been very diligent in protecting commercial developers from unreasonable impact fees.

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