Fort Mill impact fees on new building move forward 4-3

The Fort Mill Town Council has set a framework for new impact fees.

The council voted 4-3 Monday night to set fees for new construction in town, with the money funding improvements for fire service, transportation, municipal use and parks and recreation. The council didn’t settle on what those final fee rates will be.

A second successful vote is needed to begin charging the fees.

Mayor Danny Funderburk joined council members Tom Adams, Ronnie Helms and James Shirey to vote in favor of the fees. Council members Larry Huntley, Lisa McCarley and Guynn Savage voted against.

The vote followed nearly two hours of discussion, including a public hearing where nine of 10 speakers asked the council not to pass the fees. The main concern was how the fees will affect businesses, which will pay the highest fees based on how many vehicles they put on the road or increased public services they require.

Funderburk said he personally spoke in recent weeks with officials from other municipalities in South Carolina that have fees, and found a consensus as to whether impact fees will deter new business growth.

“Every person I spoke to stated, unequivocally, that impact fees have had no noticeable effect on their communities’ growth,” he said.

The council plans to settle on rates by second reading. The rates proposed by the town planning commission would lead to an estimated $8.32 million during the next five years, and $18.1 million the next 10. A capital needs list, required by state law for starting impact fees, has $38.3 million worth of needs the next five years.

Members in favor of fees pointed to the amount they would generate, saying the council would have to raise taxes 25 percent for two decades to bring in the same figure from existing residents.

“If it doesn’t come from impact fees, where does this pool of money come from?” said Adams. “It has to come from the people.”

Other members say a strong, pro-business stance outweighs what would come in from fees. New business is needed, they argued, to supply long-term funding for the town.

“I want good relationships with businesses that spend their money in Fort Mill,” Savage said. “There are great risks if we move forward.”

Huntley cited a comment he came across from a planner in the Lowcountry – where most impact fees are charged in South Carolina – calling impact fees a difficult and cumbersome route.

“It’s not really right to say these impact fees have no detrimental effect, because they do,” Huntley said.

Huntley said he knows of four businesses that have plans on hold in Fort Mill as the council resolves the impact fee question, something he sees as proof they will impact new business.

“It’s not hearsay,” Huntley said.

A contentious point in discussion surrounded the capital needs list. Impact fee opponents say they never approved the list and that some items may be wishes rather than needs. Savage believes the council can, as it has in the past, look at needs as they come and prioritize the most pressing items.

“We would never entertain this list if impact fees were not on the table,” she said.

The list includes items like new recreation facilities to replace those the town leases now, fire and police stations or substations, a new town hall and other additions. Adams said some may not be immediate needs, but enough are that looking for a funding source makes sense.

“There’s no question that we need a fire station,” he said. “There’s no question that our police station is absolutely crammed.”

Dennis Pieper, town manager, said the issue of a wish list versus a needs list is a matter of perspective.

“It is a needs list,” Pieper said. “I think where the confusion comes in is, it’s a long projection.”

A date for second and final reading hasn’t been set. The public hearing last Monday night was the second of two required before the fees begin.

This story was originally published August 11, 2015 at 7:41 AM with the headline "Fort Mill impact fees on new building move forward 4-3."