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Strategies for Improvement-Driven Fees in National Impact Fee Roundtable

This presentation, led by Joe Colgan from Colgan Consulting Corporation, explores various methodologies for establishing improvement-driven fees within national frameworks. Held in Arlington, Virginia, on October 5, 2006, it delves into plan-based, capacity-based, and standard-based fee models, emphasizing the importance of tailored approaches for different facility types. The discussion highlights the need for diverse methods to meet evolving facility capacity and demand and addresses the relationship between development costs and community benefits.

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Strategies for Improvement-Driven Fees in National Impact Fee Roundtable

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Presentation Transcript

  1. Improvement-Driven Fees National Impact Fee Roundtable Arlington, Virginia October 5, 2006 Joe Colgan Colgan Consulting Corporation

  2. Newtonian World View • Plan-Based = Improvements-Driven • Capacity-Based = Demand Driven = Consumption-Driven • Standard-Based = Incremental Expansion (Similar to Capacity-Based) • Buy-In or Recoupment Approach Combines with Other Methods Joe Colgan/Colgan Consulting Corporation

  3. Plan-Based Fees • Typically Used for Facilities That Must Be Designed to a Plan • Requires Both a Development Plan AND a Matching Facility Master Plan • Plan Changes May Invalidate Fees • Cost of Unused Capacity May Be Covered by the Fees Joe Colgan/Colgan Consulting Corporation

  4. Capacity-Based Fees • Development Plan Not Required • Need Facility Capacity and Cost • Cost of Unused Capacity Not Covered by the Fees • Traditionally Used for Water and Wastewater Facilities – Often Used for Traffic Impact Fees Joe Colgan/Colgan Consulting Corporation

  5. Standard-Based Fees • Development Plan Not Required • Standard Translates Directly to Fee, e.g. Park Acres per Capita & Cost per Acre • Potential Benefit Nexus Issues • Appropriate for Parks, Libraries, Police, Administrative Facilities that Can be Expanded Incrementally As Required to Serve New Development Joe Colgan/Colgan Consulting Corporation

  6. Why Do We Need More Than One Method Anyway? • Relationship Between Development & Facility Needs Varies by Facility Type • Need to Fit Different Circumstances • Need to Work with Available Information • Finding Most Conservative Result • Finding Least Conservative Result Joe Colgan/Colgan Consulting Corporation

  7. Toward Relativity • Do We Really Need More Than One Method? • Within Limits, Different Methods Can Be Warped Into One Another • Should the Newtonian View of Impact Fee Methodology Become Obsolete? • Is There an Equivalent of the Space-Time Continuum for Impact Fees? Joe Colgan/Colgan Consulting Corporation

  8. Random Musings • It’s All About Determining Growth’s Share of Cost • Capacity vs. Consumption: Randy’s Example • Orange County (CA) Fire Authority Example • Indirect Impacts and Cost Shifting Joe Colgan/Colgan Consulting Corporation

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