Delay is warranted on city impact fees

Proposed increases in Rock Hill’s impact fees for developers may not be the deal-breaker some claim. But the criticism of the fees should not have caught the city by surprise.

In addition to making slight increases in utility rates, the City Council had planned to increase increase water, sewer and fire impact fees assessed on new development. The fees are designed to offset the increased burden on public services created by new developments.

The city first enacted impact fees in 2003 but has not increased the fees since. Now city officials say fee increases are needed to raise revenue to improve the city’s water treatment systems.

After 13 years of leaving the fees alone, the proposed increases are significant. For example, fire impact fees, which are used to build new fire stations and buy fire trucks and equipment, would increase from $495 to $744 for a single family home. They would increase from $132 to $369 per 1,000 square feet for manufacturing.

Water and sewer fees would vary according to the meter size. A project with a three-quarter-inch meter would be $3,180, while one with a 10-inch meter would be $397,500.

Rock Hill developer Warren Norman told the council that the proposed increases would raise total impact fees for a 2,000-square-foot restaurant from $7,521 to $26,672. For a hotel with a four-inch water line, he said, impact fees would increase from $37,608 to $122,620.

“I can’t sustain another $100,000 fee on top of a hotel,” Norman said.

We think impact fees are a legitimate cost of doing business for developers. New construction, whether residential or commercial, puts added demands on public services, and developers should help pay for that.

But the fees can’t be so high they discourage new construction altogether and send developers to other counties where the fees are lower. We wonder whether the city had adequate input from developers before proposing these changes.

The city is about to embark on significant projects involving both private and public sectors, notably the University Center project to develop the former location of the Rock Hill Printing & Finishing Co. Alienating developers at this juncture could be counterproductive.

We think the council made the right move Monday in delaying a final vote on impact fees to study the issue and get feedback from those affected. After 13 years without a change, city officials can take a while longer to ensure they get it right.

This story was originally published June 28, 2016 at 6:37 PM with the headline "Delay is warranted on city impact fees."