Authorizing Council's Committee on Rules to hold public hearings on whether and how the City could implement "impact fees" to address community infrastructure needs derived from new development.

WHEREAS, “Impact fees” are monies charged by a municipality to offset increased capital costs such as water, sewer, drainage, roadways, public safety facilities, libraries, schools and parks derived from and necessary due to new development; and

WHEREAS, Several states including Florida, California, Oregon, Colorado, Texas, Georgia, Maine, Maryland and Vermont and several municipalities including Chicago, Denver, San Francisco and Palm Beach

have assessed impact fees in an effort to recoup costs; and

WHEREAS, Most state’s and municipalities that have implemented impact fees have done so by utilizing a relatively simple formula that assesses a development’s financial impact on various services and infrastructure needs. These formulas have created uniform expectations for every development; and

WHEREAS, For the past several years, Philadelphia has enjoyed a construction boom that has brought new residents and businesses to the City. While Council welcomes and enjoys this construction, Council also recognizes that some developments have strained the City’s services and infrastructure; and

WHEREAS, Developers often negotiate with community groups and local officials in order to secure their approval and obtain the necessary zoning permits or legislation. These negotiations often concentrate on design parameters; however, at times, developers make financial contributions in order to address the community’s concerns over the impact of said development. These contributions vary in scale dependent on the neighborhood, the size of the development, the attorney, the Council district and the developer. Since negotiations are undertaken on a project-by-project basis, neither the community nor the developer has a clear set of expectations; and

WHEREAS, In order to encourage additional development while simultaneously insuring appropriate resources for every neighborhood throughout the City, developer and community expectations must be uniform; and

WHEREAS, Impact fees are one way to create uniformity. However, there is a recognition that the fees may discourage development or disenfranchise communities. In addition, if impact fees are appropriate, it is unclear which services and infrastructure needs they should address in the City or the most appropriate way to create the necessary formulas to address these needs; now, therefore be it

RESOLVED, THAT THE COUNCIL OF THE CITY OF PHILADELPHIA, Authorizes Council’s Committee on Rules to hold public hearings on whether and how the City could implement “impact fees” to address community infrastructure needs derived from new development.

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