Impact Fees

[SecretarytoBraveDave]

Any way around impact fees?

[RWSmith]

I have seen a couple of instances where impact fees have been lowered. The fees were lowered because the location had a business which paid the fees but they vacated the building. Basically the laundry obtained a credit in impact fees from the old business.
I have also seen the fees waived in "enterprise zones". The fees were waived in hopes that the new laundry would help revitalize the area.
I think the biggest problem with the fees is that there are so many different entities to deal with and the lack of consistency between them. It is hard to fight them as a group so you have to work with them individually.
Good- Luck

[SecretarytoBraveDave]

Hey Reynolds,

Your one that may have the answers to these questions? Why do cities place impact fees for new contruction? In order to fight the issue, we'll need to understand why the
fees had been put in place don't you think? Of course the fees are great for the grandfathered businesses already in place, but when municipalities place this type of fee into there structure do they have laundromats and car washes in mind to reduce their presences? Isn't it possible towns that have these impact fees could actually be damaging the area mat users a disservice by limiting the competition or even potential competition?

[aromaz]

Impack fees are a quick and dirty way for the local or county governments to raise capitol. Supposedly to make repairs and improvements. It's easier than asking current residents for property tax increases. I've heard of places that charge impact fees with every change of business. Try to find a location that had a business with a !.5 inch or higher line. Such as a closed laundromat, restaurant etc.

[RWSmith]

Impact fees are put in place by cities to pay for the future growth of utility plants and infastructure. In the old days (pre impact fees) cities would pay for the utility plants by raising property taxes and user fees. Cities do not like to raise taxes or rates when they can tap into a new source of revenue who don't yet live in the area.
Cities hire consultants to look at how to pay for new treatment plants or expansions.
The consultants I have spoken to are not aware of the problems impact fees cause coin laundries. I think the same is true of commisioners who approve of the rates.

I have seen towns discontinue impact fees because it has slowed growth of homes and is not seen as business friendly.

Kitty, you make a good point about limiting competition by imposing impact fees.

The best way to fight impact fees is during the workshops that are held between the cities, consultants, and public.

Aromaz is right about impact fees being another tax. City staff have told us this off the record.
Good-Luck

[SecretarytoBraveDave]

Reynolds,

I would guess most operators love the fact there are impact fees in place as it does limit competition, and I would tend to agree. However, looking at this at a different angle, the impact fees could cause a lack in services in a community and cause the patrons that use a coin laundry little choices, and inconveinces if the market is not being adequately served by the current stores in operation. How many laundromat customers know that the reason there is little to no choices in a laundromat in their area is because their town makes it too costly for a business person to open a mat? I wonder if it is possible to fight the fee?

[RWSmith]

On a local level I think you have to stop the impact fees before they are implemented. The fees can also be changed when the local utilities are contemplating raising their fees or rate structure.
I would also like to see the state legislatures enact a law that make the impact fees transferable within the utility authorities boundries. This would be similar to how liquor licenses are bought and sold in Florida.
Fighting impact fees would take a lot of time, money, and patience.