Agenda - Council - 04/25/1995 - Laserfiche WebLink

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MEMORANDUM DATE: April 25, 1995 TO: Steve FROM: Kendra RE: In, pact fees for transportation improvements I have called a ~umber of cities in the metro area to ask if any of them were charging impact fees to new developments to pay for transportation improvements. Most of them had no idea what I was talkin{~ about, and only a few do anything even remotely like impact fees. Apple Valley a~nd Eagan--I spoke to Keith Gordon from Bonestroo & Assoc. @ 953-2590. Both cities have ~mpact fees for transportation costs, but they are called a "road unit connection charge". It is d~harged with every building permit (approximately $400). The money is put into a pot to buil,i:l or improve major streets and roadways. Eagan has been doing it through an ordinance since ;1977. Apple Valley has been doing it through its development agreements since 1978. Eagan is icurrentiy being sued by a number of developers over this issue. May want to wait and see w~hat happens. Keith is trying to get some enabling legislation passed in the Legislature. He Says you may want to talk to any legislators you know. Brooklyn Parki-spoke to Gary Brown, city engineer. They do not charge impact fees, but they do ask com[mercial developments to put money in an escrow account to pay for street lights. The city require~ commercial developers to do a traffic study and then put money into escrow to pay for future costs based on the study. Maple Grove--Spoke to asst. city engineer Terry Muller. They call it an assessment, not an impact fee, but they charge $2000/residential unit for future transportation costs. They collect the money for future roadways and it goes into a pot until it is needed. Bloomington-,Lyle Berg, traffic/transportation engineer. They have a street modification agreement tha~ is used mostly with commercial developments, but has been used with residential develPpments occasionally. New businesses agree to pay for street modifications that are necessary b~ecause of their new development. The money goes into a pot if it is not needed immediately. Lakeville--TimiHanson, asst. city engineer. If the development is on a county or state aid road, the city wi!l require a balance to be put in an escrow account. The development is charged based on the amount of frontage they have on the road. The amount is prorated for the entire development. Eden Prairie--J~eff Johnson. The developer does not have to pay any impact fees, but the City may require thegn" 1o do a traffic study. The developer will pay for the cost of the study, but the City will pay fo'r any traffic improvements. Shakopee--Dave Nummer. The city is not currently using any kind of impact fees for transportation, I~ut they have been looking at Prior Lake and Savage's Collector Street Fees. The engineer has b~en talking to Ralph Keshner, Prior Lake Engineer about the success of the fees. Fax: 445-67118