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Northside mulls impact fees

by KEITH KINNAIRD
News editor | January 24, 2021 1:00 AM

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PONDERAY — The Northside Fire District is pondering the implementation of impact fees to brace for new residential and commercial growth over the next 10 years.

The district commissioned an impact fee study earlier this year under a state program which provides for an equitable way to plan for and finance public infrastructure to serve new growth and maintain the district's current level of service.

The one-time impact fee assessment would apply to new residential and commercial development in the cities of Ponderay and Kootenai, in addition to unincorporated portions of Bonner County served by the district.

"We really wanted to get the word out so that we could get some input, some feedback from the community," said Anne Wescott of Galena Consulting, the Boise company which conducted the study.

Census data puts the district's current population at 8,608 people and that figure is forecasted to increase to 11,602 by 2030, a net increase of 2,994 or 35 percent.

There were 3,587 residential units in the district in 2020 and is expected to grow to 4,834 units by 2030, a net gain of 1,248 units. The district has 3 million square feet of nonresidential space and that sum is anticipated to increase by 1 million square feet over the next decade.

Wescott said the projections are meant to be as accurate as possible. They were derived from building permit history, census data, Idaho Department of Commerce figures and growth projections for northern Idaho.

"It’s important for me not to be too conservative because if I do that we are not estimating the capital we need and we’re also dividing it among fewer people. I don’t want to be too liberal because then we’re planning for something that may or may not happen," Wescott said.

Moreover, Idaho's Impact Fee Act requires the establishment of an advisory committee, which will review the data points and projections annually for accuracy and amend the capital improvement plan if need be.

"You can contract or expand your CIP and your projections to keep track with annual growth, but you don't end up over- or under-collecting," said Wescott.

The advisory committee is scheduled to meet on Wednesday at 6 p.m. at Northside's main station in Ponderay. Wescott said a recommendation to Northside's board of commissioners could be finalized at the meeting.

The study contemplates a $4.3 million capital improvement plan, $1.4 million of which is eligible for funding via impact fees, which can only be applied to serve new growth within the district. The plan proposes a $2 million remodel and expansion of the district's main station and the acquisition of a ladder truck to serve an increasing number of structures which exceed one story.

Impact fees would only cover half of the Station 1 expansion and half of the ladder truck purchase, meaning the rest of the funding would have to come from other sources such as property taxes.

The plan also involves replacing existing apparatuses, vehicles and equipment which are ineligible for impact fee funding.

The draft impact fee is calculated at $785 per residential unit and $0.39 per square foot of nonresidential space.

By comparison, the city of Sandpoint's impact fees are $763 per residential unit and $0.94 per square foot of nonresidential space. The Middleton and Marsing fire districts impact fees for residential units are $849 and $1,285, respectively, according to the study.

Only new residential and commercial development would be subject to the fees. Landowners who build sheds or garages would not have to pay impact fees even though it is technically new construction.

The study also seeks to deflate the myth that impact fees will stifle growth by pointing to empirical data which indicates such fees are not a primary reason for a decision to build or not build in a particular area. Land price, construction costs, market demand and access to a skilled workforce all weigh more heavily in decisions to develop new homes or businesses.

"Ultimately, the impact fee, which is paid at the time of building permit, is passed along to the buyer in the purchase price or wrapped into a lease rate. Therefore, in a market with high demand for development, an impact fee higher than other jurisdictions is unlikely to slow growth," Wescott said in the study.

Wescott said finishing touches are being put on an informational campaign to advise the community of the impact fee proposal. An online survey is also being developed to gather public input.

Keith Kinnaird can be reached at kkinnaird@bonnercountydailybee.com or followed on Twitter @KeithDailyBee.