Pickerington Area Taxpayers Alliance

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Posted in: PATA
Bill would let schools collect impact fees from developers
By MARK MAJOR
As Ohio's suburban school districts take on more and more students, many find it difficult to pay for needed classrooms.
State Rep. Jon Peterson (R-Delaware) planned to introduce a bill this week that would give school districts the power to charge developers of new homes an impact fee for each property to help fund capital improvements for new students.
''They would analyze what extra burden a new development would put on the schools, then they collect that fee and apply it to the district's new buildings,'' Peterson said.
Peterson's bill also would extend the collection power to county governments and townships, he said.
That power now is used only by municipalities.
Money generated by impact fees could be used to fund ''... any capital improvement the governing body has the authority to do under current statute... ,'' including the building of roads, bridges, buildings, schools, sewer and water facilities and parks, he said.
Because impact fees would be charged to developers of new homes, rather than all district taxpayers, those who are creating the demand for additional infrastructure would be the ones to pay for it, Peterson said.
''It's a fair proposal,'' Peterson said. ''We are assessing a particular impact fee on new residents who are impacting the capital needs of an area.''
Impact fees also are more likely to be approved by voters than property taxes, Peterson said.
''When you're putting it on the ballot, it's almost always going to be approved, because the people voting on it are almost never the ones that are going to pay it,'' he said.
Olentangy Local School District board member Jim Fedako, who helped Peterson's office develop the legislation, said such measures are needed to help ease the district's growing pains.
The district brings in about 1,000 new students annually because of development and expects to build 13 school buildings within the next 10 years, officials have said.
''We heard from residents during a recent levy campaign that they believe some of the costs associated with growth should be borne by the new move-ins or the developers,'' Fedako said.
''It seems reasonable to let those people whose children will be attending those new buildings pay for a greater share than they are now.''
Fedako said developers would be responsible for paying impact fees that might run about $10,000 in some cases, although he cautioned he was only ''guesstimating'' based on a bill that might never become law.
It's tough to predict because the new students will be attending elementary, middle and high schools, he said. ''You have to craft a formula that assigns a value to the house that is equal to expenses across all those categories.''
Times-Sun continued

Although Fedako said he has heard from developers who say the proposal would slow development by increasing home prices, Fedako said that possibility doesn't worry him.
''We get 1,000 (additional) students a year,'' he said. ''If you told me this would slow down to 500, I don't think anyone would complain.
''If it slows down, great. If it stays at the same rate, great,'' Fedako said. ''Either way, it's a win for us.''
Jim Hilz, executive director of the Building Industry Association of Central Ohio, said his organization will watch the legislation closely.
As part of agreements with local governments, many home builders already provide infrastructure improvements. Hilz worries that demanding more of developers might make it difficult for developers to maintain profitability.
''Impact fees have existed in one form or another for quite a long time. We have sewer and water fees, building permit fees. There are requirements to donate parkland. In some cases the builder builds roads, sewer, adds turn lanes,'' Hilz said. ''I think this has the potential to be too much.''
Hilz also is concerned more fees could mean fewer homebuyers can afford a given house, he said.
''Any increase on the price of a house takes out a significant number of buyers for that house,'' he said.
Hilz said proponents of the measure might find it does not live up to their expectations.
''If anybody feels the impact fees from new construction will pay for a new school entirely, I don't think that's realistic,'' he said.
Hilz said he expects his organization to make its concerns known and hopes legislators will come up with a solution for all sides.
''We're looking forward to the debate.''
Peterson planned to introduce the bill Tuesday.

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