Fort Mill impact fees passed into law on 4-3 vote

Fort Mill will begin charging impact fees Oct. 1.

Town Council voted 4-3 Monday morning to set the fees on new construction. Mayor Danny Funderburk joined Council members Tom Adams, Ronnie Helms and James Shirey in favor. Council members Larry Huntley, Lisa McCarley and Guynn Savage voted against.

The town will charge almost the full amount allowed by state law for parks and recreation, since that category only applies to residential construction. No fee will be charged for transportation, the priciest of four categories for commercial construction. Municipal and fire fees, which include residential and non-residential construction, will be charged at half the rate allowed by law.

The decision drew concern from the half dozen business leaders in attendance. The York County Regional Chamber of Commerce and its Fort Mill area board passed resolutions against any new fee on commercial construction. So did the Fort Mill School Board. Both argued impact fees could limit commercial growth.

Prior to the final vote, Huntley made a motion to charge only the parks and recreation fee. It failed 3-4. The rates passed by Council will both charge and generate less money than any prior recommendation, but will cover all new types of construction except affordable housing projects.

Council made one last push toward consensus Thursday duringa five-hour workshop. Positions hadn’t changed from the 4-3 vote on the first reading of the impact fee ordinance. Debate centered on the need and effect of impact fees. Some say the fees will keep businesses from locating with the town limits. Others say the town needs a way to pay for services as population doubles within 10 years. Impact fees are the best solution to date, they said.

Council passed a resolution Monday lobbying the state legislature to exempt schools, nonprofits and religious groups from impact fees. A proviso in the state budget means schools would be exempt for a year, but town leaders want a permanent fix. Businesses get no such reprieve.

“Had we known what state law was, it would’ve died right there,” Huntley said, having never anticipated charging business and schools when the council approved the impact fee study last year.

Savage said she sees the need for funding the effects of growth, but also recognizes the perception fees could create for future commercial projects.

“I also see their perspective, and their perspective is how it is,” Savage said. “They determine where their investment is going to go.”

Shirey said impact fees are more flexible than the town’s other options – tax increases and accompanying bonds. Council can set and then alter percentages on how much the town charges for impact fees at any time.

“This thing, you can turn it on, turn it off, turn it up, turn it down,” Shirey said. “You can’t do that with a tax.”

Funderburk said charging for parks and recreation is a start, but sees more than that department facing a funding crunch.

“How would it help with fire?” he said. “How would it help with municipal needs? Those aren’t going away.”

Adams said the decision Monday does accomplish a goal shared by Council members and constituents. It puts a charge on residential construction, helping toward the long stated goal of having growth pay for growth.

“We have to have this law on the books in order to charge residential,” Adams said. “This is the tool we’re going to use rather than a bond.”

This story was originally published August 24, 2015 at 11:38 AM with the headline "Fort Mill impact fees passed into law on 4-3 vote."