Would redevelopment pay a fee?
Since Street Impact Fees are traffic-dependent, a redevelopment project that generates more traffic than the existing development would be subject to a Street Impact Fee. However, that fee would be based only on the traffic generated in excess of what was being generated by the previous development. If the new development generates an equal or lesser amount of traffic when compared to the previous development, it would not be subject to a fee.
Do roadway impact fees only apply in city limits?
Yes.
What happens in the Extraterritorial Jurisdiction (ETJ)?
Roadway impact fees are not applicable in the ETJ. If a property is annexed, there could be a requirement to update the impact fee with annexation.
What happens if the land-use changes after the initial building permit?
A: Roadway Impact Fees are based on the amount of traffic generated. If the traffic increases, the net increase of traffic could be charged a fee. Several cities set a policy to not charge a change of use impact fee unless the traffic increase a designated number of times.
For “shell buildings,” developers do not always know the tenants until after the building is complete. In these cases, the most common land uses are typically utilized (office, industrial, retail). If the build-out permit is more intense, the delta is charged.
Is there grandfathering of current developments?
State law requires a one-year grace period for previously platted properties. A property that does not have to plat would likely receive a one-year grace period as well. After that period of time, the development would be subject to a fee. This will be considered further in the ordinance development of the roadway impact fee.
Are the roadway impact fees the same for multifamily and single-family homes?
No, rates are different because they produce different amounts of trips. Multi-family would pay a different rate.
How are TxDOT roads accounted for?
The study currently assumes a 20 percent City contribution to the cost of TxDOT facilities.
How are County roads accounted for?
County roads are typically in the ETJ and not city limits. As a result, County roads are not in this study.
How do impact fees interact with MUDs, TIRZ, and other development agreements? (from Sept. 30, 2020, Chamber Georgetown Development Alliance meeting)
Offset agreements can be developed for any previous contributions eligible towards impact fees otherwise due.
Are all the projects in the CIP scaled appropriately? Are any of the projects “over built,” calling for a larger improvement than necessary during the 10-year period? For example, is there a project calling for a six-lane road, when a four-lane road is sufficient to accommodate growth over the next decade? (Home Builders Association questions submitted via email)
Yes, projects are scaled to fit the anticipated 10-year time frame. Westinghouse Road in Service Areas E & F in the 10-year Transportation Impact Fee (TIF) CIP transitions from a projected six-lane arterial on the west side of FM 1460 (Projects E-19 thru E-24) to a four-lane arterial on the east side of FM 1460 (Project E-25) that acknowledges the full six lanes are not necessary in the 10-year window.
Furthermore, the recoverable costs of projects are capped by the 10-year growth, and thus the proportion of costs for all the projects in a given service area that are beyond the 10-year growth needs (established in the Land Use Assumptions) is not included in the resulting maximum fees per service area.
Do any of the projects call for the replacement of existing lanes/roadway capacity? (Home Builders Association questions submitted via email)
Yes. Implicitly widening projects include replacement of existing lanes being used today. The cost of replacing capacity for existing demand is accounted for in the maximum fee calculation based on traffic counts collected in 2019 for this project on roadway project alignments. The recoverable cost used to calculate the maximum assessable fee does not include this portion of the cost.
Will the City be able to build out all of the projects in the CIP? If not, the projects should be prioritized and the number of projects reduced, resulting in a lower impact fee. (Home Builders Association questions submitted via email)
Inherent in the impact fee program is that development will build some of the projects in the CIP and get offsets for fees otherwise due, rather than paying the fee for the City to complete projects. It is not anticipated that the City will build all the projects in the CIP, but rather the projects in the CIP that are included are anticipated to be needed to serve development during the next 10 years. Further, the recoverable cost of the CIP that is used to calculate the maximum assessable fee is limited by the anticipated growth in the Land Use Assumptions over the 10-year period. Therefore, reducing the projects would not accurately reflect the needed capacity and is not recommended.
What if a development constructs an improvement not on Impact Fee CIP map used to develop impact fee, does that count toward impact fee credit?
If it’s a local road or site-specific road, no. However, if it’s a collector or arterial system facility that can be amended to the Overall Transportation Plan, yes.
