Fort Mill residents say impact fees are anti-business; No action taken on measure

The Fort Mill impact fee debate got down to business last week.

Small business, new business, expanded business — all areas of concern for about 60 people who turned out to have their say. The July 27 meeting brought the first of two required public hearings on proposed impact fees, or charges on new development in town.

Fort Mill Town Council listened, but took no vote.

Of the 14 people who spoke, nine urged Council not to charge the fees, at least on commercial development. Two supported the fees, while two more called for a building moratorium or regional council to manage growth.

Adam Ferrara is a small business developer behind the recent storefront on Clebourne Street, which includes a Subway restaurant. Ferrara isn’t sure that project would happen, he said, if impact fees like the ones proposed were in place.

State Rep. Ralph Norman, a Rock Hill-based developer, said he might still put the Hampton Inn his company just opened in Fort Mill, but with fewer upgraded features.

“I could not do the improvements I would want to do because of the impact fees,” he said.

Former town attorney Bayles Mack, who owns property along Main Street, said the town gets into dangerous territory if impact fees hurt its ability to attract new business.

“Our government in Fort Mill has always been a business-friendly government,” Mack said. “There’s a perception out there that creates an anti-business (perception).”

Mack suggested a deep discount, perhaps charging incoming business no more than 10 percent of what impact fee laws allow for five years or so, if any fee at all.

“If we don’t discount it deeply, and continue to be a business-friendly community still, we’ll lose commercial (growth),” he said.

Property owner Scott Couchenour said his tax rate in Fort Mill already is far higher than it would be just outside town limits. While also concerned with the impact to school or church construction, Couchenour sees the five-figure tax rate on his commercial property as a problem impact fees would only worsen.

“From a small commercial property owner, I feel like we are paying our fair share,” Couchenour said.

Not all residents took the same opinion. Randy Wilke said he lived in other places that charged impact fees, and saw none of the doom and gloom described by business leaders here. Impact fees would put the price tag on community growth to that new growth, he said, rather than existing residents.

“From a consumer standpoint, I think impact fees are the way to go,” Wilke said.

Businesses that want to locate in Fort Mill still will, he said.

“We look at impact fees as an investment in the community that good corporate partners should be making,” he said.

Lori Christison said Fort Mill expects amenities, strong schools and other perks that define the community. Impact fees are a way, she said, to continue paying for those services.

“I feel like impact fees are necessary to maintain that standard that the community has come to expect,” Christison said.

Many of those on hand Friday came with the York County Regional Chamber of Commerce, a group that formally opposes the fees.

Geri Rucker, a senior vice president with Founders Federal Credit Union and Chamber board member, said impact fees may work for fast-growing communities near the coast. Here, where 80 percent of companies have 20 or fewer employees, the situation is different.

“The fees don’t seem right for this town at this time,” Rucker said.

The main non-business concern during months of impact fees discussion has been school construction, which could be included. The Fort Mill School Board also formally opposes impact fees, related to schools and commercial building.

School board member Michele Branning said the district understands there are funding concerns for the town, but believes a fee that charges new schools is not the way to go.

“We believe that there are other methods,” Branning said.

The proposed impact fee ordinance still needs another public hearing and two positive votes from Council to proceed. The proposal would charge fees for municipal use, fire protection, transportation and parks and recreation. The parks and recreation fee would apply only to new residential construction, while the other three would charge all new construction.

This story was originally published July 28, 2015 at 5:29 PM with the headline "Fort Mill residents say impact fees are anti-business; No action taken on measure."