Impact Fees - Now What?

Most of you already know that impact fees passed City Council this past Tuesday night with Mayor Cook breaking a 4-4 split vote.

Already, builders are suggesting that homebuyers will absorb the costs (as opposed to everyone else prior to the decision).

We do know that there is some disgruntlement within the El Paso business community. There are fears that the City Council will turn increasingly anti-business now that the election is over. One business person even asked, "Why is Susie Byrd so anti-business?"

In response, Representative Byrd wrote the following in an email to me:

"I'm pro-District 2. I'm pro-El Paso. I'm pro-El Paso businesses.

I want a city where folks can depend on a good wage for a hard day's work, where they can live in a great safe neighborhood that makes them proud of the place they call home, where they can start a business and flourish and thrive and where they know they are getting value and services for the taxes they give to the City.

This year, ratepayers paid about $100, or 20% of their water bills, for new development. They receive little or no value for that investment in new development. We voted to shift those costs to the developers and to the users who receive the full value of that investment. That was the right decision for District 2 residents and the right decision for El Pasoans.

For too long, the prevailing business model depended on influencing government and little or no competition. Look where that got us. We are now seeing many business and civic leaders step up and speak out against that business model, demanding real competition and investment in our community that will create jobs and make El Paso shine. We need to put that era behind us and look for solutions that serve the community and serve business."

Hopefully, now that there will be impact fees, the City will be able to manage sprawl much better than before. According to a 2003 Maryland study, impact fees can direct growth to targeted areas and protect open space.