Urban Fold

The Link Between Impact Fees And Growth

The city of Tuscon, Arizona is considering adding new impact fees to cover the cost of municipal services, but the new fees might stymie growth and encourage sprawl.

"Should Burger King pay for a police car?"

That's what leaders in Tucson are asking as they consider raising fees.

"Impact fees in Tucson already cover some of the cost of new city services, including roads, water and public safety."

"However if the costs are too high, fees could stymie growth, said Rob Caylor, owner of Robert Caylor Construction Co. and a member of the city's Small Business Commission. Businesses might go elsewhere, like north to fast-growing Pinal County or to undeveloped rural areas."

"Caylor, who specializes in urban infill developments, said he recently built a Subway sandwich restaurant in Tucson, and his government fees totaled well over $10,000. He built the exact same building in Thatcher, 130 miles northeast of Tucson, and paid just $105 in fees."

Full Story: Disparities in impact fees grow wide in Tucson


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