metro detroit communities want funds for road improvements christy arboscello free press staff...

Metro Detroit communities want funds for road improvements

CHRISTY ARBOSCELLO

FREE PRESS STAFF WRITER March 30, 2008

DEVELOPERS VS. TAXPAYERS

http://www.freep.com/apps/pbcs.dll/article?AID=/20080330/NEWS04/803300603

Impact Fees for Developers• They were on the back burner in more prosperous times, but

now impact fees for developers -- money that pays for infrastructure upgrades such as traffic lights and road improvements in areas where big commercial projects are built -- are once again at the forefront of discussions in communities throughout metro Detroit.

• More and more, metro Detroit leaders contend that the fees, which can reach well into the millions, should be paid by developers, not taxpayers, in light of state revenue-sharing cuts and scaled-back services.

• But it's nearly impossible to get developers to pony up any money.

• “The impact that we have in the community is bringing in jobs,” said Nick Infante, senior manager of public affairs for Wal-Mart in Michigan, who called the fees an unnecessary burden for companies. "For us, it's bringing in produce and general merchandise that people want."

Approval as Leverage

• To their dismay, community leaders can't use their approval as leverage, especially when the development meets zoning regulations or gets the green light from courts.

• And many agree that developers don't owe anything more -- that they bring enough to the table already in the form of jobs, tax revenue and charitable initiatives such as the $19,500 in grants Wal-Mart gave to Sterling Heights city departments and nonprofit organizations when it opened earlier this year in the city.

• Homeowners opposed to developments say getting an unwanted neighbor stings enough, but knowing some of their taxes are used to support it is another blow.

Increased Traffic

• A Clinton Township study projects that when a Wal-Mart opens in the community next year, increased traffic will create safety hazards on the already busy Romeo Plank and Hall corner. The proposed solution: Install a $500,000 boulevard the store does not want to pay for.

• Wal-Mart's traffic study concluded the boulevard isn't necessary, Infante said.

• Township officials say taxes will now foot the work needed to improve the street.

• Partridge Creek subdivision homeowner Chris Fett, 35, said he's baffled taxes will foot the boulevard bill. "I don't see how, being a responsible developer, they wouldn't want to share the cost somehow."

Extortion?• Bob Filka, chief executive officer of the Michigan Association of

Home Builders, said of the impact fees: "I do believe that it's akin to extortion in terms of local communities looking for impact fees. I realize times are tough for local communities. Times are tough for our builders."

• But, "impact fees are certainly not the way to go," he said, adding that city leaders and developers should work with, not against, each other.

• Some communities are hashing out the dilemma on their own.In Flat Rock, for instance, officials say a new Meijer could benefit the city, but also would bring more traffic. As part of negotiations, the company has indicated it would share the $800,000 cost of a half-mile stretch of Vreeland Road that will lead to the store, said George Mans, the city's economic development director.

• "I think each situation is unique, and I think each side should have some ability to negotiate," he said.

Economics

• Who should pay for public access?

• How would you calculate an impact fee?

• If you make the new project pay the fee, who benefits? Who loses?

• If the development is legal, and properly zoned, is the fee a “taking” of property?

• If communities compete for business, who pays the fee?