Frequently asked questions about impact fees
The extensive growth of the Kansas City urban area is exerting pressure on the financial resources of the City to provide road improvements needed to serve the transportation needs generated by new developments. The spread-out nature of this growth is resulting in the leap-frogging of developments with no consistent road improvements. In an effort to address this issue, the City of Kansas City, Mo., began May 1, 2002, to charge arterial impact fees on all building permits issued in designated areas of the City.
Impact fees are charges assessed on new development to help pay for the additional roadway capacity required to accommodate the development. Essentially the impact fee requires that each new residential or commercial project pay its pro-rated share of the costs of new or widened arterial streets, parkways and boulevards that would serve the development. Arterial impact fees would supplement rather than replace the current system of developer fees. Developers could still be required to improve their arterial frontages and get credit for such improvements against their impact fees.
Impact fees collected will be deposited into eight separate accounts, one for each benefit district. The expenditure of funds and prioritization of projects will be controlled by benefit district committees consisting of nine members appointed by the Mayor [City Code, Section 39-6(i)].
The City Council on September 27, 2001, after intensive study and public hearings, established Chapter 39 of the Code of Ordinances that provides a process for charging impact fees. It also provides a schedule of fees as well. Fees for land uses and maps of the benefit districts are included in the ordinance. For more information contact Dion Waldon, Land Development Division Manager, at (816) 513-2551.
Frequently asked questions about impact fees
What are impact fees?
Impact fees are charges assessed on new development to help pay for the additional roadway capacity required to accommodate the development. Essentially the impact fee requires that each new residential or commercial project pay its pro-rated share of the costs of new or widened arterial streets, parkways and boulevards that would serve the development. The Impact Fee Ordinance (see Chapter 39, Code of Ordinances) passed by the City Council provides some useful information about impact fees.
How are impact fees calculated?
Impact fees are calculated according to the requirements defined in Chapter 39, section 39-4. The fees are calculated from the discount factor (50%). The square footage used for the calculation is from the building plans submitted for permitting. Credit can be given for prior use of an existing building or a demolished building that is being renovated if verifiable use can be provided within the last 10 years.
Who pays these fees?
The building permit applicant when getting the construction permit will pay the impact fees. The impact fee on the application will be assessed and paid separately from other fees paid to obtain a building permit.
When must the fees be paid?
The impact fee must be paid at the time of issuance of a residential building permit. The impact fee must be paid prior to any certificate of occupancy being issued for nonresidential developments.
How will the money from the fees be used?
The impact fees collected will be deposited into eight separate accounts, one for each of the benefit districts. The fees can only be spent on roadway improvements within those districts. The eligible roadway projects will include widening of or construction of arterials, parkways and boulevards on the City's major street plan. The expenditure of funds and prioritization of projects will be controlled by benefit district comm ittees consisting of nine members appointed by the Mayor.
What are benefit districts?
Benefit districts (Impact Fee Zones) are eight designated areas of the City outlined on the map below. These areas were designated as benefit areas because they are the areas experiencing the most development. Impact fees collected will be deposited in the appropriate accounts for expenditure of funds within the respective districts.
What are the benefits to the City by imposing this fee?
The extensive growth of the Kansas City urban area is exerting pressure on the financial resources of the City to provide road improvements required to serve the transportation needs generated by new developments. The spread out nature of the growth is resulting in the leap-frogging of developments with no consistent road improvements as the City relies on developers to construct the portion of roadway adjacent to their project. The impact fee will provide the City with a source of funding to make priority roadway improvements without waiting for development to occur.
The impact fee will also spread the cost of roadway improvements to all new developments, treating developers with arterial frontage the same as developers without arterial frontage.
Useful forms/documents related to impact fees
(These forms require Acrobat Reader)
