Water impact fees apply to any new development, as Park City Council member Jeremy Rubell explains.
“New development doesn’t necessarily mean building something new,” Rubell said. “It could also be a change in use… the trigger is someone going to the city and getting a building permit. So if you have a space that used to be an art gallery, and it’s turning into a restaurant, that would trigger an impact fee, even though the building footprint hasn’t changed.”
Park City is seeking to increase water impact fees by 51% over several years, according to information presented to the Park City Council Thursday.
The need for revenue is largely due to operations of the new 3Kings Water Treatment Plant, which is the most expensive infrastructure project in city history.
Park City recently increased residential water rates, and the raise on impact fees are seen as an equal bump for new growth. The impact fee schedule has not changed since 2014, long before the treatment plant began operating.
Consultants working with the city estimate Park City is roughly 75% built out, meaning there is plenty of room for new construction and redevelopment to bring in funding for the water department.
Impact fees are calculated by projected demand, which is measured by gallons per minute.
Park City Council member Tana Toly, who owns and operates Red Banjo Pizza on Main Street, says impact fees can be a major hurdle for entrepreneurs.
“I spoke to two business owners this week who do not want to start a business here because of the impact fees, and these are local people trying to start local businesses,” Toly said. “It’s really hard for me to hear, because that’s what we’re trying to keep here - the small, local vibe.”
The council is moving forward with the proposed 51% increase, however several members expressed support in exploring ways to reduce the burden on small, local businesses. That could be through a payment plan or some kind of grant assistance.
Before there is any official approval, the council is scheduled to hold another work session on the proposed rates. There will also be a public hearing, but the date has yet to be determined.
