Builders on Phoenix fringes may pay 400% more for roads, utilities, parks

[Source: Casey Newton, Arizona Business Gazette] — The cost of building a home in undeveloped parts of Phoenix may soon go up, and the cost could be passed along to home buyers.  Phoenix has convened a panel to advise the City Council on a staff proposal to increase impact fees, a series of charges the city makes to home builders for such items as roads, sewer hookups, parks, and libraries.  The staff proposal calls for some fees in northeast Phoenix to be raised by nearly 400%, a consequence of soaring construction costs and the fact that the fees have not been adjusted in several years.  The city uses the fees to pay for new roads and libraries and to hook up new developments to the city’s water and sewer systems.  Only projects in areas that have yet to be developed are charged the fees.

Desert View is the name planners have given to a swath of northeast Phoenix that includes most of the city northeast of Loop 101 and Interstate 17.  The impact fee for streets in Desert View could rise from $2,176 per dwelling unit, to $10,818.  The per-unit fee for parks would also rise, to $4,145, from $2,910.  In past years, developers have pressured the council to delay increases to the fees, saying they would discourage development of new homes.  Those delays have led to this year’s proposals.  [Note: To read the full article, click here.]

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