HomeMy WebLinkAboutWRITTEN RESPONSE - Impact Zone - Madison County�n JUN -07-02 FRI 14:17 TOM KENNELLY 602 368 0523 P.01
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FAX 358-3022
June 7, 2002
MAYOR SUTHERLAND
MEMBERS OF THE CITY COUNCIL
Dear Mayor and members of the.Coun6i7-
Thomas A. Kennelly
264 Nex Porce Avonue
Rexbnrg,Idaho 83440
Tel. (208) 656.0811
Fax(208)656-9032
RE: PROPOSED RECREATIONAL FACILITY
IMPACT FEES
Since my brief presentioa on the Idaho Heritage City Program at the
last council meeting, I have had several of you ask my thoughts in
regard to the two items captioned above. Since it appears there is
general concern about these issues, =thought an open letter to the
council might be appropriate.
First, regarding impact fees --there is no 'question that impact fees are
not only appropriate but mandatory.. Except for stagnant communities, all
growing cities have grappled with this issue and almost universally impact
fees were added to the city ordinance., .When developers build subdivisions
the city must withstand the cost of street maintenance, sewers, water lines
fire and police protection for, that subdivision, and those costs come from
the city coffers. It is unfair for the citizens of a community to be called
upon to pay for all the initialcosts that developers should rightfully cover,
when they develop real estate. After 43 years of residential and commercial
lending to developers, I can state categorically there is no other profession
as lucrative as real estate development ---ilia medical profession included.
You do not need a consultant to tell you the obvious. It is a foregone
conclusion that our community will grow and more and more developers will
be coming here from all over the country. I have seen per lot costs --
impact fees ---as high as $6,000.00 per Sot and the developers willingly pay
it as their profits are still monumental. I strongly urge you to discuss
the issue, make a stand and hold to it ---now is surely the time.
The proposed recreational facility is a wonderful idea, and I see how much
it adds to Jackson as a community, however Rexburg is not Jackson. with
five grandchildren in the area I would love to see a nice facility here but
prudence may not warrant the building of an $8 million dollar facility for
several reasons. Rexburg currently has a population of approximately, 9,000
people which would equate to a per capita debt if $886:00 for every man
woman and child in .the community, .Assuming a 20 year 68 bond or mortgage
the annual debt service of $688,000.00 per year or $57,333.00 per month.
In addition to debt service, there would be the mandatory staffing, maintence
and care of the facility, which could add $3,000-5,000.00 per month..
I have attempted to calculate the mandatory usage and fees necessary to make
such a facility feasible and cannot'iake my numbers work. Even with a subsidy
by the city (which would be a'.red light at a bond election) it would still take
a huge number of people paying substantial fees to make it work. I would
suggest that before this goes too far.a.downsizing of the plans would be
appropriate.
sincerely,