Impact fees get mixed reviews in Antrim
By PAT FRIDGEN Echo Pilot

The pros and cons of a transportation impact fee imposed on building projects in Antrim Township were debated at a special Board of Supervisors meeting Jan. 15. The board wanted information prior to making a decision whether to move forward or drop the idea, said township manager Ben Thomas, Jr., and so the session to learn details from others with direct experience.

Mike Christopher, Washington Township manager, was pleased with the effect on local finances since his township began charging the fee in October 2004.

"This thing works for us," he said. "We haven't scared too many people away."

The township surrounding Waynesboro charges $2714 per peak hour trip, formulated from the amount of traffic generated by a new business or residence. It applies to a service area along Rt. 16 in a concentrated growth area.

The transportation impact fee has been legal in Pennsylvania since 1990, reported Chad Dixson from Traffic Planning & Design, Harrisburg. He said it has been mainly limited to the metropolitan areas, but is starting to show up in the southern part of the state. Sixty municipalities have adopted TIFs ranging from $60 to $4000 as a way to fund road improvements to accomodate growth, he told the supervisors.

Thomas said Antrim has been considering establishing the requisite seven-square-mile service areas along the Grindstone Hill Road connector road, Rt. 16 west to Peters Township, and Antrim-wide.

"The Route 16 plan, forget it," said Christopher. "It won't work."

He referred to PennDOT criteria that allows only 50 percent of a municipality's expense on a state road to be financed through TIFs. Because most of the Rt. 16 fee would come from residences, the money would not be immediately available, since it is collected when individual building permits are issued. Fees from businesses are paid upfront to the municipality.

Christopher thought the connector road made the most sense. He doubted the fee would scare away commercial companies and there was a way to protect industry based on where it located within a tract.

Mike Ross, president of Franklin County Area Development Corporation, cautioned the use of fees for business. He said it wasn't so much an issue for homeowners, since the cost passed along to them by the builder could be incorporated into a 30-year mortgage. Commercial and industrial developers would pay but not be happy.

Ross said they would want to know specifically how their money was being spent. If several sites were generally equal, the developer would reevaluate his options and go with the one that made the most sense business wise.

"I'm not necessarily opposed, but the ordinance has to be developed judiciously, administered fairly and effectively and point to the improvement itself," said Ross.

"When does this make sense?" asked Thomas.

Dixson said the general threshold was when growth over 10 years included 150 to 200 homes per year and 250,000 to 500,000 square feet of non-residential development per year.

Supervisor Curtis Myers wondered about timing considering the depressed economy.

"It's the time to do it if you're going to do it," said Christopher. "You have time to catch your breath. You want to get ahead of when the plans come in."

Ross and Dixson agreed.

Resident Bob Schemmerling was concerned about the impact on small businesses, which he believed added much to a community.

Supervisor James Byers concurred.

"It's hard for small businesses and dreams to get going."

Since any project within the service area is required to pay the fee, supervisor Sam Miller suggested maybe small businesses could locate beyond the boundary.

Dixson said the Municipal Planning Code allows a developer to receive credits against the TIF for infrastructure put in on its own, such as a road or traffic light.

Myers thought that would be a cost-savings to the developer, since the township would have to pay prevailing wage for the construction projects.

Christopher said Washington Township has collected $450,000 in fees over the years. It cost him $80,000 to establish the TIF through studies, administrative costs, legal fees and engineering plans.

The Antrim board decided to address the issue at its Jan. 22 meeting.

The road map for TIF

Should Antrim Township adopt impact fees, the process could take 18 months to complete. The steps include:

1. Advertisement and resolutions.

2. Appointment of TIF Advisory Committee, consisting of seven to 15 members, including real estate, development, and building industry professionals.

3. Complete land use and traffic studies.

4. Funding information and agency contacts.

5. Impact fee ordinance review.

6. Advertisement of ordinance.

7. Public hearings.

8. Document reviews.

9. Action by the committee and board of supervisors.

10. Land Use Assumptions Report.

11. Roadway Sufficiency Analysis.

12. Capital Improvements Plan.

13. Transportation Impact Fee Ordinance adoption.