Catoosa Vision

Impact Fees

Questions are being raised regarding negative consequences IMPACT FEES could have on economic development -- recruitment and retention. The County's Consultant says no (or at least said no at a public worksession of the County Commission).

I'm researching this issue... but what I've seen thus far concerns me to the extent that the impact fee structure could significantly impact the costs of new development. This at a time when other counties in the region (Murray, Gordon, etc.) are kicking our Economic Development butt because they appear to offer more competitive and attractive amenities and costs to developers.

Now, when I say "developers," I'm referring to businesses... not residential developers. We frequently take issue with the housing developers because they are building moderately priced homes which attracts more and more families (and their children) to move to Catoosa County, while mostly working in another county (or state). We all know the speech about how houses cost the county money, while businesses generate revenues.

But, insofar as development is concerned, an impact fee on business expansion and/or new placement certainly would influence the businesses' decision. Simply put: if the costs of building or expanding is higher in one county versus another, that's a signficant factor impacting the decision to move forward or not.

As far as new development goes, Catoosa County is clearly competitive in the low-, to moderate priced housing market. Those developers see great opportunity here: there's demand; there's cheap land; there are few costs associated with developing the land; and the county provides high services to the home buyers. Where Catoosa County struggles in competitiveness is with businesses... and if the cost of bringing business to Catoosa County goes up, our relative competitiveness goes down.

The Commission will hold two public hearings in November and December to further explore this issue and receive public input.

I suggest any and all business owners review their near-term expansion plans and figure out what the impact fee would do to their business plan.

The Impact Fee system might just be a wolf in sheep's clothing.

posted by Chris Casey @ 9:20 AM