The Fort Worth City Council received an update on the proposed transportation impact fee collection rates from Planning and Development Director Randle Harwood. This is a one-time fee charged to new development projects and will help fund transportation improvements that will be needed as development occurs in Fort Worth. Transportation impact fees are applied to individual building permits and collected prior to issuance of the building permit.
Under the new proposed rate, for example, a single family home would increase to an average of $3,750. Other rates would be $2,119 for an apartment unit, $23,808 for a 3,000 square-foot restaurant, $32,340 for a 10,000 square-foot office, $164,750 for a 50,000 square-foot retail establishment, and $225,000 for a 300,000 square-foot warehouse.
Possible discounts include:
*Land use/transportation connection reduction, 15 percent.
*Adequate facilities reduction/stand alone developments that pay impact fee, up to 50 percent.
*Extraordinary investment reduction (jobs, dollar investments, etc.), up to 50 percent.
*Non-residential, policy set to 25 percent less than residential.
District 4 Council Member Cary Moon, along with District 7 Council Member Dennis Shingleton, spoke of staggered rates. Moon, in fact, suggested some alteration, such as an increase in apartment rates and warehouses, and a decrease for restaurants.
“I’ll just do the math later,” he said.
Harwood said this adjustment would put Fort Worth in the middle of Metroplex cities’ rates, but at the highest rate in Tarrant County.
“To me there needs to be a better formula that factors in sales tax, factors in jobs,” Moon said.
Harwood said fees can be adjusted during a five-year period.
Harwood recommended keeping the current rate for the rest of the year, with the proposed new rate, if passed, to become effective for collection on Jan. 1, 2019.
“This would allow the development community to adopt their performances to what the new rates will be next year,” he said.
Harwood said among five groups given presentations on the proposed new rates, the Fort Worth Builders Association and Fort Worth Real Estate Council opposed the fee increase. However, the Fort Worth Builders Association would support a delay of implementation to Jan. 1.
“No one wants change. We have to stay competitive,” Mayor Betsy Price said. “I don’t think these are real onerous.”
Price also agreed to the idea of implementing the new rates Jan. 1.
Harwood recommended bringing a proposal to the Council for a vote at its March 20 meeting.
