Impact fee meets with newfound approval

Erin Neff

Friday, April 6, 2001 | 11 a.m.

CARSON CITY -- The Southern Nevada Home Builders Association came to a legislative hearing this morning to testify on another impact fee proposal.

But this time, the association's executive director, Irene Porter, requested the bill, and the measure cleared the Assembly's Government Affairs Committee with no opposition.

"What a difference two years makes," said Dan Musgrove, a lobbyist for the city of Las Vegas.

In 1999, Las Vegas was shot down when it requested a bill to allow local governments to impose impact fees to pay for parks and fire stations, because the city had a deficit of fire stations at the time.

This morning, Assembly Bill 458 -- sponsored by David Parks, D-Las Vegas -- cleared the committee to allow governments to impose impact fees for construction of fire and police stations and parks.

"We hope this will end discussions on this issue," Porter said. "This evens the playing field."

Prior to this legislative session, Las Vegas Mayor Oscar Goodman said he wanted the Legislature to allow governments to impose the fees on new development to pay for parks in older areas.

Assemblyman John Lee, D-Las Vegas, asked whether that was possible.

Porter said courts nationwide have ruled such transfer of money from those who actually pay for the facility is not allowed.

"It would be unfair now," Porter said.

Musgrove said Goodman -- an attorney -- supports AB458 even though he doesn't believe the legal argument that the money cannot be transferred.

The state's current impact fee law, enacted in 1989, allows local governments to impose the fees for drainage, sewage, water or street projects. Reno and Washoe County are the only local governments statewide that impose the fee. That impact fee is used for streets.

In Southern Nevada, local governments do impose a residential construction tax for parks, but have not imposed a separate impact fee.

AB458 expands the 1989 law to include fire stations, police stations and parks. An amendment approved this morning allows the parks to be up to 50 acres and include amateur sports facilities, trail segments and other typical amenities.

Parks that will be funded with the fees collected from new development cannot include golf courses, swimming pools, bandstands, arenas or zoos.

The fees also cannot be used to pay for vehicles or apparatus to be used in connection with the fire or police station.

"Cities will have to use other general fund money to get the equipment into the stations," Porter said.

The committee was also scheduled to hear testimony this morning on a bill that would allow governments to tax nonresidential construction to pay for neighborhood parks. Assemblyman Tom Collins, D-North Las Vegas, sponsors that bill, AB462.