Metro Detroit communities want funds for road improvements

1
Metro Detroit communities want funds for road
improvements
DEVELOPERS VS. TAXPAYERS

• CHRISTY ARBOSCELLO
• FREE PRESS STAFF WRITER March 30, 2008

http//www.freep.com/apps/pbcs.dll/article?AID/20
080330/NEWS04/803300603
2
Impact Fees for Developers

• They were on the back burner in more prosperous
  times, but now impact fees for developers --
  money that pays for infrastructure upgrades such
  as traffic lights and road improvements in areas
  where big commercial projects are built -- are
  once again at the forefront of discussions in
  communities throughout metro Detroit.
• More and more, metro Detroit leaders contend that
  the fees, which can reach well into the millions,
  should be paid by developers, not taxpayers, in
  light of state revenue-sharing cuts and
  scaled-back services.
• But it's nearly impossible to get developers to
  pony up any money.
• The impact that we have in the community is
  bringing in jobs, said Nick Infante, senior
  manager of public affairs for Wal-Mart in
  Michigan, who called the fees an unnecessary
  burden for companies. "For us, it's bringing in
  produce and general merchandise that people want."

3
Approval as Leverage

• To their dismay, community leaders can't use
  their approval as leverage, especially when the
  development meets zoning regulations or gets the
  green light from courts.
• And many agree that developers don't owe anything
  more -- that they bring enough to the table
  already in the form of jobs, tax revenue and
  charitable initiatives such as the 19,500 in
  grants Wal-Mart gave to Sterling Heights city
  departments and nonprofit organizations when it
  opened earlier this year in the city.
• Homeowners opposed to developments say getting an
  unwanted neighbor stings enough, but knowing some
  of their taxes are used to support it is another
  blow.

4
Increased Traffic

• A Clinton Township study projects that when a
  Wal-Mart opens in the community next year,
  increased traffic will create safety hazards on
  the already busy Romeo Plank and Hall corner. The
  proposed solution Install a 500,000 boulevard
  the store does not want to pay for.
• Wal-Mart's traffic study concluded the boulevard
  isn't necessary, Infante said.
• Township officials say taxes will now foot the
  work needed to improve the street.
• Partridge Creek subdivision homeowner Chris Fett,
  35, said he's baffled taxes will foot the
  boulevard bill. "I don't see how, being a
  responsible developer, they wouldn't want to
  share the cost somehow."

5
Extortion?

• Bob Filka, chief executive officer of the
  Michigan Association of Home Builders, said of
  the impact fees "I do believe that it's akin to
  extortion in terms of local communities looking
  for impact fees. I realize times are tough for
  local communities. Times are tough for our
  builders."
• But, "impact fees are certainly not the way to
  go," he said, adding that city leaders and
  developers should work with, not against, each
  other.
• Some communities are hashing out the dilemma on
  their own.In Flat Rock, for instance, officials
  say a new Meijer could benefit the city, but also
  would bring more traffic. As part of
  negotiations, the company has indicated it would
  share the 800,000 cost of a half-mile stretch of
  Vreeland Road that will lead to the store, said
  George Mans, the city's economic development
  director.
• "I think each situation is unique, and I think
  each side should have some ability to negotiate,"
  he said.

6
Economics

• Who should pay for public access?
• How would you calculate an impact fee?
• If you make the new project pay the fee, who
  benefits? Who loses?
• If the development is legal, and properly zoned,
  is the fee a taking of property?
• If communities compete for business, who pays the
  fee?