Impact Fees?

6,212 Views | 46 Replies | Last: 10 mo ago by Bob Yancy
MeKnowNot
How long do you want to ignore this user?
Bob Yancy said:

MeKnowNot said:

What percentage of College Station single family residential zoning remains undeveloped?

Would impact fee's placed on developing the remaining x% really have any significant impact on revenues raised by the City or on the cost of the remaining lots?




Residential Zoned land, not much. But there's more not currently residentially zoned than people generally believe.

Impact fees impact both. They DO raise money for infrastructure, albeit a drop in the bucket for what we have to spend. However, the disproportionate impact on a homebuyer, particularly an entry level homebuyer, is significant in my opinion, as one member of council.

But perhaps the biggest impact of impact fees is builder flight. Builders opt for jurisdictions where they don't have to pay them, like Navasota, Snook, Bryan and the county. The best policy in the world can be self-defeating. Were we a lone city in the county that'd be one thing, but we're not.

Builder flight is real.

Respectfully

Yancy '95

Perhaps residential "builder flight", and increased values, is due to a lack of property available to develop within the City of College Station and zoned CSISD rather than a function of impact fees?

Your chart shows "building permits". One high-rise building permit equals many single family building permits.




Bob Yancy
How long do you want to ignore this user?
MeKnowNot said:

Bob Yancy said:

MeKnowNot said:

What percentage of College Station single family residential zoning remains undeveloped?

Would impact fee's placed on developing the remaining x% really have any significant impact on revenues raised by the City or on the cost of the remaining lots?




Residential Zoned land, not much. But there's more not currently residentially zoned than people generally believe.

Impact fees impact both. They DO raise money for infrastructure, albeit a drop in the bucket for what we have to spend. However, the disproportionate impact on a homebuyer, particularly an entry level homebuyer, is significant in my opinion, as one member of council.

But perhaps the biggest impact of impact fees is builder flight. Builders opt for jurisdictions where they don't have to pay them, like Navasota, Snook, Bryan and the county. The best policy in the world can be self-defeating. Were we a lone city in the county that'd be one thing, but we're not.

Builder flight is real.

Respectfully

Yancy '95

Perhaps residential "builder flight", and increased values, is due to a lack of property available to develop within the City of College Station and zoned CSISD rather than a function of impact fees?

Your chart shows "building permits". One high-rise building permit equals many single family building permits.







The chart depicts single family residential only, and families can't move into student towers. There's plenty of land for development in our lifetime and then some. We could also be doing voluntary annexations via planned developments in the etj to grow our footprint where appropriate.

Respectfully

Yancy '95
My opinions are mine and should not be construed as those of city council or staff. I welcome robust debate but will cease communication on any thread in which colleagues or staff are personally criticized. I must refrain from comment on posted agenda items until after meetings are concluded. Bob Yancy 95
RafterAg223
How long do you want to ignore this user?
AG
Bob Yancy said:

MeKnowNot said:

Bob Yancy said:

MeKnowNot said:

What percentage of College Station single family residential zoning remains undeveloped?

Would impact fee's placed on developing the remaining x% really have any significant impact on revenues raised by the City or on the cost of the remaining lots?




Residential Zoned land, not much. But there's more not currently residentially zoned than people generally believe.

Impact fees impact both. They DO raise money for infrastructure, albeit a drop in the bucket for what we have to spend. However, the disproportionate impact on a homebuyer, particularly an entry level homebuyer, is significant in my opinion, as one member of council.

But perhaps the biggest impact of impact fees is builder flight. Builders opt for jurisdictions where they don't have to pay them, like Navasota, Snook, Bryan and the county. The best policy in the world can be self-defeating. Were we a lone city in the county that'd be one thing, but we're not.

Builder flight is real.

Respectfully

Yancy '95

Perhaps residential "builder flight", and increased values, is due to a lack of property available to develop within the City of College Station and zoned CSISD rather than a function of impact fees?

Your chart shows "building permits". One high-rise building permit equals many single family building permits.







The chart depicts single family residential only, and families can't move into student towers. There's plenty of land for development in our lifetime and then some. We could also be doing voluntary annexations via planned developments in the etj to grow our footprint where appropriate.

Respectfully

Yancy '95



This
Bob Yancy
How long do you want to ignore this user?
RafterAg223 said:

Bob Yancy said:

MeKnowNot said:

Bob Yancy said:

MeKnowNot said:

What percentage of College Station single family residential zoning remains undeveloped?

Would impact fee's placed on developing the remaining x% really have any significant impact on revenues raised by the City or on the cost of the remaining lots?




Residential Zoned land, not much. But there's more not currently residentially zoned than people generally believe.

Impact fees impact both. They DO raise money for infrastructure, albeit a drop in the bucket for what we have to spend. However, the disproportionate impact on a homebuyer, particularly an entry level homebuyer, is significant in my opinion, as one member of council.

But perhaps the biggest impact of impact fees is builder flight. Builders opt for jurisdictions where they don't have to pay them, like Navasota, Snook, Bryan and the county. The best policy in the world can be self-defeating. Were we a lone city in the county that'd be one thing, but we're not.

Builder flight is real.

Respectfully

Yancy '95

Perhaps residential "builder flight", and increased values, is due to a lack of property available to develop within the City of College Station and zoned CSISD rather than a function of impact fees?

Your chart shows "building permits". One high-rise building permit equals many single family building permits.







The chart depicts single family residential only, and families can't move into student towers. There's plenty of land for development in our lifetime and then some. We could also be doing voluntary annexations via planned developments in the etj to grow our footprint where appropriate.

Respectfully

Yancy '95



This



Thank you! Apparently someone agrees with me…just moments ago Rep Paul Dyson's impact fee moratorium bill, HB5489, was referred to committee. That's rarified air for a freshman to get a bill like this to committee.

Somebody is doing their research. Thank the Lord! It may not pass, but people are wondering what the heck is happening in our housing market.

https://legiscan.com/TX/bill/HB5489/2025

Respectfully,

Yancy '95
My opinions are mine and should not be construed as those of city council or staff. I welcome robust debate but will cease communication on any thread in which colleagues or staff are personally criticized. I must refrain from comment on posted agenda items until after meetings are concluded. Bob Yancy 95
GSS
How long do you want to ignore this user?
IMO, a somewhat convoluted and contradictory response by the CS city manager "chief of staff", regarding why impact fees are a good thing.
The cities (and county) encourage growth, for the additional and new tax base, but then complain the growth is so expensive that impact fees (at least in CS) are required, to "keep taxes down". Doesn't compute (unless you're in real estate, and then growth is great...).
WTAW interview Chief of Staff
TxFig
How long do you want to ignore this user?
AG
Bob Yancy - yes, I think you are WAY off on your attitude toward impact fees.

Bluntly, there are costs associated with developments and SOMEONE has to pay those costs. It is either going to be the entire tax base (property taxes) or the developers (who pass on those costs to the people buying the homes). So either you are taxing your current residents and allowing developers to live off the government tet, or you will make them pay their fair share.


Quite frankly, I chose to live in Bryan/College Station/ Brazos County BECAUSE this is not a high urban area.
I do not want more people moving here.
More people living here makes this town LESS desirable.


If an impact fee will raise the cost of new people moving here, then by all means, yes, I am for them.
And at a MUCH higher rate that what is being charged now.

Impact fees should be designed to cover the cost of widening roads (such as FM 1179).
And drilling new water wells & building new water towers.
And building new fire stations & staffing them.
And hiring new police & sheriff deputies (and the equipment they need)
And building new sewage treatment plants
and building new landfills.


For far too long, city & county politicians have been fed a crock of lies that says "development good, m'kay". Those developers donate huge sums to your political campaigns.
... or they just run themselves (can anyone say "conflict of interest"?)


Keep Brazos County Rural.
--
Chris Barnes
Retired A&M IT geek - now beekeeper
http://www.cornerstonehoneybees.com/
RafterAg223
How long do you want to ignore this user?
AG
TxFig said:

Bob Yancy - yes, I think you are WAY off on your attitude toward impact fees.

Bluntly, there are costs associated with developments and SOMEONE has to pay those costs. It is either going to be the entire tax base (property taxes) or the developers (who pass on those costs to the people buying the homes). So either you are taxing your current residents and allowing developers to live off the government tet, or you will make them pay their fair share.


Quite frankly, I chose to live in Bryan/College Station/ Brazos County BECAUSE this is not a high urban area.
I do not want more people moving here.
More people living here makes this town LESS desirable.


If an impact fee will raise the cost of new people moving here, then by all means, yes, I am for them.
And at a MUCH higher rate that what is being charged now.

Impact fees should be designed to cover the cost of widening roads (such as FM 1179).
And drilling new water wells & building new water towers.
And building new fire stations & staffing them.
And hiring new police & sheriff deputies (and the equipment they need)
And building new sewage treatment plants
and building new landfills.


For far too long, city & county politicians have been fed a crock of lies that says "development good, m'kay". Those developers donate huge sums to your political campaigns.
... or they just run themselves (can anyone say "conflict of interest"?)


Keep Brazos County Rural.
Yeah, keep all "those people" out!!! This post reeks of elitism and sheer ignorance. If the city government of College Station wouldn't keep getting themselves in to so many financial messes and outright boondoggles, they wouldn't need impact fees to build any of what you listed. I've lived here over 30 years. This place would be nothing more than a spot on a map without growth. We'd be amenity starved with absolute crap for major medical options. I've also got news for you. It's going to continue to grow. Navasota will also grow. Just looking at a map of the state of Texas should make that obvious to you. You want to live in a rural area that will always be rural? Try moving to the brush country of South Texas or the panhandle.
Bob Yancy
How long do you want to ignore this user?
TxFig said:

Bob Yancy - yes, I think you are WAY off on your attitude toward impact fees.

Bluntly, there are costs associated with developments and SOMEONE has to pay those costs. It is either going to be the entire tax base (property taxes) or the developers (who pass on those costs to the people buying the homes). So either you are taxing your current residents and allowing developers to live off the government tet, or you will make them pay their fair share.


Quite frankly, I chose to live in Bryan/College Station/ Brazos County BECAUSE this is not a high urban area.
I do not want more people moving here.
More people living here makes this town LESS desirable.


If an impact fee will raise the cost of new people moving here, then by all means, yes, I am for them.
And at a MUCH higher rate that what is being charged now.

Impact fees should be designed to cover the cost of widening roads (such as FM 1179).
And drilling new water wells & building new water towers.
And building new fire stations & staffing them.
And hiring new police & sheriff deputies (and the equipment they need)
And building new sewage treatment plants
and building new landfills.


For far too long, city & county politicians have been fed a crock of lies that says "development good, m'kay". Those developers donate huge sums to your political campaigns.
... or they just run themselves (can anyone say "conflict of interest"?)


Keep Brazos County Rural.


Thanks for your feedback. I know you're in good company with this position. But I hold that it's why we're in the mess we're in with housing.

70% of the workers in College Station don't live here. They drive our roads and go to our parks and strain our infrastructure yet pay no taxes.

Young families can't afford a home here, like you ostensibly were once able to afford, because of anti-growth policies that you've espoused above.

Your infrastructure was paid for by everyone, including you. Now that you're set, you want to penalize anyone new that might want to have their shot at growing a family in College Station, or a business.

The policies you advocate require a belief that organic growth in a community can be frozen in stasis. A longing for yesteryear. You don't want change, but change is inevitable.

If we suppress our housing market as we've done, less entry level houses are built because, while you cannot force a builder to build in College Station, you can indeed incentivize them not to, as we've done.

This drives demand and property valuations sky high. Trying to eschew growth makes everyone pay more in property taxes, even when the rate isn't raised. It's happening now. It's going to get worse.

Without young families to grow with a city, bad things begin to happen at the strategic level. Legacy residents get more and more, everyone else gets less and less. A consumerism economy takes root, where retailers and restaurants and blinking lights to attract affluent consumers come in, but high quality blue, gray and white collar jobs don't.

The economy becomes a slave to consumerism, subject to catastrophic failure in sharp downturns or pandemics or ____.

Economies of cities must be diversified, just like economies of nations. Growth must be embraced and accommodated, not choked like a command economist might do not aware of the power of the free market.

Infrastructure in older neighborhoods crumbles because a replenishment of funding goes away with fewer permanent residents left to fund the demands of more people pounding a city's pavement, than actually live within it.

More MUD districts and special districts crop up as development occurs outside a city. They become suburbs of the target city while contributing to nothing but sales taxes.

Such policies invite legislative scrutiny, just like what's happening now.

Growth is a blessing. A vibrant city with young urban professionals, young families, the working class, retirees and people from all walks of life pulling the wagon together, sharing the burden, is the way to go.

I wish I could say I agree with everyone that posts and interacts with me here. I cannot. My position on this critical, strategic policy sphere could not be more antithetical to yours.

Despite this, I respect your right to that opinion. It's just one I do not share at all.

Respectfully

Bob Yancy '95
My opinions are mine and should not be construed as those of city council or staff. I welcome robust debate but will cease communication on any thread in which colleagues or staff are personally criticized. I must refrain from comment on posted agenda items until after meetings are concluded. Bob Yancy 95
Bob Yancy
How long do you want to ignore this user?
RafterAg223 said:

TxFig said:

Bob Yancy - yes, I think you are WAY off on your attitude toward impact fees.

Bluntly, there are costs associated with developments and SOMEONE has to pay those costs. It is either going to be the entire tax base (property taxes) or the developers (who pass on those costs to the people buying the homes). So either you are taxing your current residents and allowing developers to live off the government tet, or you will make them pay their fair share.


Quite frankly, I chose to live in Bryan/College Station/ Brazos County BECAUSE this is not a high urban area.
I do not want more people moving here.
More people living here makes this town LESS desirable.


If an impact fee will raise the cost of new people moving here, then by all means, yes, I am for them.
And at a MUCH higher rate that what is being charged now.

Impact fees should be designed to cover the cost of widening roads (such as FM 1179).
And drilling new water wells & building new water towers.
And building new fire stations & staffing them.
And hiring new police & sheriff deputies (and the equipment they need)
And building new sewage treatment plants
and building new landfills.


For far too long, city & county politicians have been fed a crock of lies that says "development good, m'kay". Those developers donate huge sums to your political campaigns.
... or they just run themselves (can anyone say "conflict of interest"?)


Keep Brazos County Rural.
Yeah, keep all "those people" out!!! This post reeks of elitism and sheer ignorance. If the city government of College Station wouldn't keep getting themselves in to so many financial messes and outright boondoggles, they wouldn't need impact fees to build any of what you listed. I've lived here over 30 years. This place would be nothing more than a spot on a map without growth. We'd be amenity starved with absolute crap for major medical options. I've also got news for you. It's going to continue to grow. Navasota will also grow. Just looking at a map of the state of Texas should make that obvious to you. You want to live in a rural area that will always be rural? Try moving to the brush country of South Texas or the panhandle.


While indelicately put, you are correct that growth will continue.

Respectfully

Yancy '95
My opinions are mine and should not be construed as those of city council or staff. I welcome robust debate but will cease communication on any thread in which colleagues or staff are personally criticized. I must refrain from comment on posted agenda items until after meetings are concluded. Bob Yancy 95
woodiewood1
How long do you want to ignore this user?
Omperlodge said:


I have seen presentations from both sides. It is pretty clear that the impact of new homes city wide is offset by the increased taxes. I have asked over and over again.for the math to demonstrate the need. You can't show that the water treatment plant needs $20 million in repairs in 3 years and blame that all on new builds. Give me the data that shows that the new homes are causing an expansion, less the incremental new tax revenue, and I can understand it.

Impact fees are simply an attempt to prop up existing homes values against new construction.
Impact fees are just another way government can nickel and dime us on taxes and fees. They keep each of them low or out of the limelight so we don't realize that we are paying about 30% or more in total taxes and fees.

If a developer gets three to four $500,000 homes per acre that is an increase of about $30,000 in annual taxes collected. They also collect sales taxes on the materials used as well as the utilities on the new homeowners.

I joke, but the city should just leave it all alone. They don't need to collect taxes and fees on everything. I think of the Southside paid parking proposal last year.

Take a look at you utility bill. We pay property taxes. Why do we also have a road tax? Why?
Stucco
How long do you want to ignore this user?
Bob, your engagement here has impacted my opinion on growth. I still don't love it, but I acknowledge it will impact us whether we embrace it or not. Thank you again for your presence and candor.

It seems the issue we face is that our area is growing, and the only lever we have adjusts how much of that growth is within our city vs adjacent to it. Growth within our city strains our entire infrastructure while adding to our tax base in multiple ways. Growth adjacent to our city strains a subset of our infrastructure while adding very little to our tax base. Refusing all growth all but guarantees stagnation. Accepting all growth all but guarantees infrastructure failure. Impact fees are one mechanism driving growth outside the city. Permits and codes and red tape are others. Economic development incentives are the opposite.

We should be intentional about this. What is the target growth rate? How will reduction or elimination of impact fees alone impact our current rate? Is it enough? Too much?

Do we even have a target growth rate? If not, we should.
Then we should adjust the lever to get as close as possible to that rate, acknowledging that it is an imprecise process and will need to be revisited from time to time. We should then plan for this growth through the expansion of necessary infrastructure and funds necessary to accomplish the expansion. Proactive, not reactive.

The answer isn't infinitely more or none at all, it is somewhere between, and without a target it is impossible to "succeed."

Right now we are talking about eliminating fees without seemingly any context at all. Is the infrastructure plan sufficient to support the current growth? What additional infrastructure will be needed from the additional growth that would come from removing fees? How are the fees being spent? Where will the difference come from of the fees are eliminated? How will elimination of the fees impact growth? Is it the same answer if they are eliminated simultaneously across the state? Should we make other changes too or instead?
Bob Yancy
How long do you want to ignore this user?
Stucco said:

Bob, your engagement here has impacted my opinion on growth. I still don't love it, but I acknowledge it will impact us whether we embrace it or not. Thank you again for your presence and candor.

It seems the issue we face is that our area is growing, and the only lever we have adjusts how much of that growth is within our city vs adjacent to it. Growth within our city strains our entire infrastructure while adding to our tax base in multiple ways. Growth adjacent to our city strains a subset of our infrastructure while adding very little to our tax base. Refusing all growth all but guarantees stagnation. Accepting all growth all but guarantees infrastructure failure. Impact fees are one mechanism driving growth outside the city. Permits and codes and red tape are others. Economic development incentives are the opposite.

We should be intentional about this. What is the target growth rate? How will reduction or elimination of impact fees alone impact our current rate? Is it enough? Too much?

Do we even have a target growth rate? If not, we should.
Then we should adjust the lever to get as close as possible to that rate, acknowledging that it is an imprecise process and will need to be revisited from time to time. We should then plan for this growth through the expansion of necessary infrastructure and funds necessary to accomplish the expansion. Proactive, not reactive.

The answer isn't infinitely more or none at all, it is somewhere between, and without a target it is impossible to "succeed."

Right now we are talking about eliminating fees without seemingly any context at all. Is the infrastructure plan sufficient to support the current growth? What additional infrastructure will be needed from the additional growth that would come from removing fees? How are the fees being spent? Where will the difference come from of the fees are eliminated? How will elimination of the fees impact growth? Is it the same answer if they are eliminated simultaneously across the state? Should we make other changes too or instead?


Want to run for council? lol

I like your questions but given how many you have asked, I won't attempt to answer them all here. Arguably, your most important question is do we have a target growth rate and the answer is no, not to my knowledge.

As for how will infrastructure be paid for… we existed from 1938 to 2016 without impact fees. Likely this year, the city's overall portfolio of investments will exceed $1 billion for the first time in our history. Our bond rating is AA2 by Moody's, one click away from the highest you can have.

You are correct that it's not just about impact fees. They are simply the top of the list poster child for a lot that I contend is not right with our permitting and fee regime.

We are in this nether region where we have suppressed growth so much that the value of existing property is skyrocketing. I believe we're going on the fourth year with the tax rate having gone down or remained static yet everyone's overall property tax bill continues to go up and in some years, sharply. As a semi-retired local property investor this is actually optimal for me and my family but for many others, not at all.

I am not for unrestricted growth, but I don't focus on a target growth rate because right now, from a housing and jobs perspective, we are falling behind and fast.

We can grow. We have a total of 3400 acres zoned residential or agricultural/open that are not in the flood plane and developable. Having 70% of our workforce not living within the city limits of College Station is just flat unsustainable in my opinion. Were we in a situation where we could worry about too much growth that would be one thing, but again from a housing perspective we're on the opposite side of the seesaw and falling fast.

I can't tell you how much I appreciate your reasoned thought process, and the points that you are making. I wish I knew who you were so we could go to lunch or coffee. I believe organizations can fall victim to the rut of the status quo. You are either in a constant incremental state of improvement or you are not. I think it's fair to say right now from a housing and jobs perspective, from a growth perspective, from an occupancy pressure perspective, and on many other fronts, we are not incrementally improving ourselves.

This is not the same College Station that I raised my family and grew my business in and that's OK times change, but to completely shut off the non-consumer based growth channels in our community is fundamentally unhealthy in my book.

This debate is not going away. I believe it's the defining strategic issue of our time for the City Of College Station.

Respectfully

Bob Yancy '95
My opinions are mine and should not be construed as those of city council or staff. I welcome robust debate but will cease communication on any thread in which colleagues or staff are personally criticized. I must refrain from comment on posted agenda items until after meetings are concluded. Bob Yancy 95
Refresh
Page 2 of 2
 
×
subscribe Verify your student status
See Subscription Benefits
Trial only available to users who have never subscribed or participated in a previous trial.