All new development in the City of Boise is subject to the imposition of impact fees. Impact fees can represent a significant portion of the anticipated construction costs and can make or break the viability of a proposed development. The impact fees assessed by the City of Boise have remained static since 2008 but the City of Boise is now preparing to enact several changes to the impact fees it currently assesses, including the means by which impact fees are assessed and the actual impact fees which will be assessed on new development in Boise.
I. What Are Impact Fees, And How Are They Assessed?
Whenever new development occurs, public facilities and services, including fire and police services, roads and open spaces, are put under additional strain due to increased use and demand on these public facilities and services. Impact fees are intended to impose the costs of constructing, improving, expanding or enlarging new or existing public services and facilities attributable to the capacity demands generated by the new development onto the developer.
In general, impact fees are determined by: 1) calculating the anticipated cost of expanded or additional public facilities and services projected to be required as a result of anticipated future growth from future development; and 2) proportionately allocating these costs between new developments based on the new or increased demand on the public facilities and services by the new development. Consequently, new development which is expected to have a high demand on public facilities will in general pay higher fees than construction projects expected to have a low demand on public facilities.
Impact fees were introduced in Idaho in 1992 when the Idaho Legislature passed the “Idaho Development Impact Fee Act” (the “Act”). Idaho Code Title 67, Chapter 82. The Act allows certain governmental entities to adopt an impact fee ordinance and impose impact fees on developers as a condition of permitting new development to proceed. Soon thereafter, the City of Boise adopted the Boise Development Impact Fee Ordinance, which can be found under Title 4, Chapter 12 of the Boise City Code (the “Ordinance”).
II. Proposed Changes to Impact Fees
The City of Boise is proposing the following revisions to its Ordinance:
- Revision of allocation methodology to allocate the costs of expanded or additional public facilities and services based on service demand;
- Division of the existing non-residential category into a commercial category and an industrial category;
- Revision of Capital Improvement Plan which sets forth the anticipated cost of expanded or additional public facilities and services projected to be required as a result of anticipated future growth from future development; and
- Annual increases in impact fees assessed by the City of Boise following a set parameter such as the Consumer Price Index.
As would be expected, these proposed revisions to the Ordinance will result in changes to the impact fees that will be imposed on future development if the proposed revisions are adopted by the City of Boise. The following graphs from the City of Boise identify the current impact fees for new development and the anticipated impact fees under these proposed revisions:
|Fire and Police Impact Fees|
|Less than 700 sq. ft.||$515||$133||$107||$67|
|More than 3,200||$515||$633||$107||$320|
|Current Residential Categories (persons per unit)||Proposed Residential Categories (persons per unit)|
|Hotel/Motel/B&B||.68||Less than 700 sq. ft.||0.63|
|Accessory Dwelling Unit||1.00||701-1,400 sq. ft.||1.63|
|Multi-Family > 800 sq. ft.||1.45||1,401-2,500 sq. ft.||2.47|
|Multi-Family < 800 sq. ft.||2.16||2,501-3,200 sq. ft.||2.83|
|Single-Family||2.44||More than 3,200 sq. ft.||3.00|
|Regional Park Impact Fees – New Categories|
|Residential Category||Current Fee||Proposed Fee|
|Less than 700 sq. ft.||$238||$194|
|More than 3,200||$1,134||$926|
|Local Park Impact Fees|
|Residential Category||Current Fee||Central Bench Proposed Fee||Downtown Proposed Fee||North River Proposed Fee||South East-Barber Valley Proposed Fee||South West Proposed Fee||West Bench Proposed Fee|
|Less than 700 sq. ft.||$110||$63||$0||$191||$298||$190||$63|
|More than 3,200||$522||$300||$0||$910||$1,418||$904||$300|
The City of Boise is still in the process of finalizing the proposed revisions and is accepting comments from the public on the proposed revisions. Should you have any questions or comments for the City of Boise about the proposed revisions, correspondence to the City of Boise can be addressed to firstname.lastname@example.org.
If you have any questions regarding impact fees or if you are considering a new development and wish to learn how the proposed changes may affect your project, please call one of our real estate professionals.