Douglasville’s First Impact Fee Hearing

Published February 13th, 2007

Douglasville’s First Impact Fee Hearing

Last night was the City of Douglasville’s mandatory impact fee hearing on the possible implementation of impact fees and to gain feedback from the public. Upon entering the conference center two documents were handed out: an agenda and a list of rules. Both documents were released on the City’s website, however the proposed impact fee schedule was included at the hearing.

Promptly at 6:30 p.m. the meeting began with City Manger Bill Osborne briefly going over the agenda and list of rules. Osborne explained that approximately a month later a second hearing would be held to adopt an ordinance for impact fees, before giving a presentation on the City’s progress on impact fees since last year.

Originally there were three sections in which funding from impact fees would support: Road/Transportation, Parks and Recreation, and Public Safety (Police). A draft of the Capital Improvements Element (CIE) was submitted to the Atlanta Regional Commission and the Georgia Department of Community Affairs (GDCA) for approval. The State’s DCA questioned parts of the CIE, further delaying impact fee hearings and possible implementation.

On January 16, 2006 the City Council revised the beneficiaries of impact fees by excluding public safety due to it being the smallest of the three sections for funding. One-third of TischlerBise’s suggestion for maximum sustainable impact fees was decided upon, which would be later pointed out as still very high in the State of Georgia.

If and when impact fees would be adopted, a list of projects would then be approved by the City Council which would consist of seven road projects and some projects for the Parks and Recreations department, including a multi-purpose center or YMCA facility.

Previously talking with the City’s Parks and Recreations Director, Tracie Ivey, explained that there is room for a multi-purpose center at Hunter Memorial Park, and the State has approved the location, but the costs would exceed $1 million due to relocating closer to the park’s entrance, effectively changing much of the park’s layout. The prospect of a YMCA facility is questionable since it would be larger then the proposed multi-purpose and could not be built in the same place as the center nor throughout any part of the park. The definitive result is that impact fees could not fully fund either project.

At the conclusion of Osborne‘s presentation the floor was opened up to the public for public feedback and group presentations. First to preside was a representative from the Council for Quality Growth, an organization promoting balanced and responsible growth, who defined impact fees and stated that impact fees were designed “not to solve existing deficits and solve current transportation problems.”

Next was the Impact Fee Coalition, a local organization comprised of businessmen throughout Douglas County, explaining in detail the effect impact fees would be on the community. Robert Reynolds, Douglas County’s Director of the Development Authority, stressed that the biggest impact would be inflicted on industrial and commercial businesses because the combined revenues generated from these sectors “are more than all the other sectors all together” based on the City’s tax digest of 2005.

Reynolds offered many bar charts and data illustrating that the City’s proposed impact fee would be the 2nd largest in commercial and the 3rd largest in residential statewide. Also pointed out was that impact fees would slow down commercial growth, but would “not slow population growth”, which would further overburden a crowded school system.

The President of the Douglas County Bank went on to show that there can be great shortfalls based on impact fees. For instance, if 577 new homes were built over the period of one year along with commercial development, funding would total of $1,804,996 annually (or $9,024,980 over five years) would be collected to support Transportation, yet the City promotes a $26 million dollar need for the Transportation alone, and even over five years impact fees could not generate nearly the amounted needed.

A representative from the Tributary at New Manchester gave another example about the future progress of the mega-development in southeast Douglas County. If impact fees would be adopted, then construction delays for the Village Center and new homes would occur, a Whole Foods store would not likely be built and the quality of the overall development would have to downgrade.

A local small business owner briefly talked about how he could not afford to pay for impact fees and construction costs if he was to relocate his business into a new building elsewhere in Douglasville. This is a fundamental problem of small business owners, existing businesses and residents because if a business or resident was to build or move into a new structure, that party would have to pay the impact fee.

Alex Conroy, a long-time local developer, defended the City for possibly accepting impact fees by saying that the “City has taken on a tremendous amount of growth and has handled it well.” Conroy made the point that everyone needs to “look at the ultimate payoff” - meaning the end result and not the current problems in which impact fees could produce.

Other speakers were James Bell, from the Douglas County Tax Coalition, and James Quarterman. Bell mentioned that “impact fees would be passed down to the consumer” and that more should be down to slow growth and cut government spending. Quarterman put into question the service area, which was all of the City of Douglasville, stating that Georgia law allows separate service areas, which would have to continually be refined. The use of “impact fees can discourage growth in one area, like Chapel Hill Road, and put development in other areas”, said Quarterman.

At the conclusion of the presentation was the question-and-answer segment. One of the biggest concerns for business owners in the Downtown Douglasville area were if businesses would be subjected to impact fees based on renovations to a current structure. After some confusion on the City’s part, it was interpreted that impact fees would not be available for those renovating so as long the structure was not expanded.

Another issue concerned the expansion of church facilites, Osborne said that “Georgia law does not explicitly address churches” but the matter would be looked into and answers would be provided on the City’s website.

Osborne went on to later state that the one service area model for impact fees was based on transportation infrastructure needs. A problem with this type of single service area can lead to funded projects not benefiting a certain community. For instance, as growth of the Tributary at New Manchester continues impact fees will be collected, which allows those funds to be spent anywhere in the City, like the Bright Star Connector. The residents who live in the Tributary do indirectly benefit from the road project, but not directly in the growing community.

Afterthoughts

Impact fees are a very touchy issue for many who live in the stretching realm of Douglasville. If the City approves impact fees, it might be an indication that the County will follow suit shortly afterwards (there are many signs this will happen since the county providers the majority of public services).

However what if the City approves and the County does not, as Bell pointed out “the City of Douglasville could become an island of impact fees.” The repercussion of this affect would drive commercial and residential development into the county, moreover forcing businesses no to annex into the city while increasing growth substantially.

One question that was not asked was what will be the quality of execution and proper management of funds. This should be of concern to residents considering that some funds have been appropriated to special-interest needs and not to areas of neglect. The City does not have plans to create a community council once impact fees are adopted.

It has been almost ten years since the issue of impact fees has been discussed publicly, but not real manifestation has been generated until last year. Temporary funding options like SPLOST and impact fees do not resolve current long term infrastructure problems – as in the case of Douglas County infrastructure problems range from 5 to 20 years old.

Not clearly understanding the effects of overdevelopment can slowly erode a community from maintaining a high quality-of-life aspect. Setting objectives that dictate growth accordingly, like that of Greenville, South Carolina, can produce a community that is structured to be economically secure and benefits all of its residents without sacrificing or pressuring a community to grow haphazardly.

The problem with impact fees and SPLOST is that it has become a self-inflicted wound to the communities of Douglas County. With talks of establishing impact fees in the last few years, development has grown to a great extent in a confined period of time. This suggests that if impact fees are implemented, growth could decrease in order to balance out overdevelopment in year’s past and inadvertently defeat the purpose of impact fees.

Generating funds for infrastructures will always a predicament for local governments, however straining a communities public services and quality-of-life should not be defined as an acceptable sacrifice.


2 Responses to “Douglasville’s First Impact Fee Hearing”

  1. Fred W

    Did anyone notice that Alex Conroy (the only person to speak in favor of impact fees) is also the largest landowner on the Bright Star Connector Route, which also happens to be the #1 priority for impact fee improvements. I would bet you that he would change his tune if the Bright Star connector was removed from the list. This is another example of a money grab by the mayor. Mr. Mayor maybe it is time to spend what you earn.

  2. Wilber1

    Did anyone notice that at the meeting that the Mayor and Councilors were the biggest chickens on earth, this given that the cowards placed the city manager up as the moderator instead of engaging in leadership themselves and answering the hard questions that they were elected to answer!!! Your right on Alex Conroy, he and the mayor are in bed together no doubt about it; that is a corrupt hook up if I’ve ever seen one. Also, one resounding question for the tax payer is where will the the 17 million dollar infastructure deficit dollars come from? Growth isn’t about to stop…impact fees or not, but I can tell you most of the residents in my community will pay the fees and taxes if we can get some kind of benefit otherwise I fear this whole thing will end up in court…Yes the town will probably win, but it will delay the implementation of quality planning which Douglasville sadly needs and create a poisonous political environment…Wilbur1