Recession-gripped developers battle city fees

AMERICAN FORK (Daily Herald) -- The recession's grapple-hold is emboldening some struggling developers to be more aggressive in fighting city fees.
American Fork charges between $16,000 and $22,000 for each residential building permit, depending on the lot and home size. In a recent meeting, a developer decried those fees, but found little sympathy.
"As it is now, it costs more in fees than for framing and lumber for the house," said Bill Perry of Temple Ridge Estates, a 15-acre subdivision on premium property near the Mount Timpanogos Temple. "We would ask you to lower them."
In developing his land before the real estate bubble burst, Perry requested a higher-than-normal number of building lots in exchange for private open space, an amenity that once was considered attractive to home buyers. But this also meant that under agreement with the city as requested by Perry, the area has a mandatory homeowners association with its attendant monthly fees. In today's economy, those fees, coupled with the city's impact fees, makes it difficult to attract buyers.
American Fork's fees are "35 percent more expensive" than those required by other cities, Perry said. "We thought this was beyond the realm of reasonableness."
"We are aware we are higher," said Councilwoman Heidi Rodeback. "We have studied it thoroughly and we believe ours is airtight, and I believe that when other communities go to do the same studies, theirs will be higher, too."
"I don't want to be rude, but the reality is that these are too expensive," Perry said.
Impact fees are not something people "ever see or feel," he continued, noting he believes home buyers are far more interested in granite countertops than city parks. "They are not measuring who has the best parks. They are going to buy the home that has the best value. I've never heard anyone say, 'As an upgrade I'd like to increase my impact fee and get more water.' Cities are always working to get impact fees higher, and I know I am stepping on hallowed ground. I don't mean to be too offensive about it, but I think you have misjudged."
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