Robert Thomas, owner of Prairie Avenue Mini Storage in Post Falls, Idaho, is expanding his storage facilities. For months on end, all of his units have been full and he has had to turn away new customers. But every time he goes into the Building and Planning Commission, the impact fees that he is charged doubles in amount.
When he first applied for a building permit for a 7,200 square-foot building, the permit cost $4,000. Now, the permit cost has increased to $14,000. These fees equal 20 percent of the total cost of the project. He has had to ask the bank for an additional $10,000 on his loan.
This increase in fees is impacting his expansion plans and the financial base of his business. Thomas eliminated a new covered parking lot from his plans because he can't afford it now. He feels that if fees continue to increase, it could force him out of business. Tomas said that the fees make it difficult for middle class people to build.
County Commissioner Todd Tondee said that without charging impact fees to new builders, property taxes would have to be raised. He said that builders can file for a waiver of the fees but the county commissioners would look very carefully at these waivers. If the waiver was approved, the fees would be paid out of the county general fund.
Impact fees have been a source of concern and discussion for the Kootenai county commissioners for years. Concerns have centered around who will collect the fees, how the collection will be monitored, and how the monies will be used. For now, the county can collect in unincorporated areas of the county. If districts what to charge developers who start new development projects within city limits, that city must agree to collect them.
Commissioners feel that they are starting to make progress with collecting the fees for special districts. The fire and highway districts have signed an agreement with the county allowing the county to collect fees from developers. These fees are only charged to developers of new structures.
Because there is less federal funding, the districts have less revenue coming in. This means that there is less money to upgrade equipment or to take on and complete improvement projects.
Commissioner Larry Clark said, "We've got fire engines 18 to 20 years old. We need to have some revenue coming, or it will start impeding our service to the public."
Sources Used:
"Business owner balks at increase." Coeur D'Alene Press; 14 September 2011.
"County ready to collect impact fees." Coeur D'Alene Press; 5 August 2011.