Troy schools asked to lower impact fees

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Updated: March 27, 2012 8:06AM

JOLIET — Shorewood Mayor Richard Chapman is hopeful that reducing impact fees will stimulate the local economy.

Chapman recently asked the Troy School Board to consider lowering the school district’s portion of the impact fees for new homes.

In response, the board directed the administration to gather information for its review of the matter. Business manager Diane Cooper said they are in the process of gathering that data.

“My whole objective is to put construction people back to work. I have no hidden agenda,” Chapman said. “I’m seeing a lot of people out of work. They are hurting.”

According to Chapman, there were more than 500 housing starts at the top of the housing bubble in 2006. Last year, Shorewood had 80 building permits applied for, and only 55 starts are projected for this year.

Chapman noted that if no homes are built there are no impact fees, but there also is no added employment.

He said many are affected by the housing slump — carpenters, plumbers, electricians, concrete finishers, interior decorators, landscapers and even lawyers.

“We need to do something to help these people out,” he said.

In 2004, the village of Shorewood established a policy on the imposition of a school facilities “impact fee” as a condition of annexation. The purpose of the impact fee was for schools to be able to offset the costs of new school buildings, additions, improvements and related infrastructure.

Cooper said the village collects fees on the school district’s behalf and distributes the money once a year to the school district. Troy received $580,473 in impact fees since 2004.

It has not received any impact fees since August, 2008.

According to Cooper, fees were permitted to increase 4 percent per year for the period July 1, 2005, to June 30, 2009.

Fees have not increased since July 1, 2009. Fees payable to the school district are $320 for a two-bedroom, single-family home, $1,473 for a three-bedroom home and $1,988 for a four-bedroom home.

Attached single-family homes, including townhomes and condominiums, pay $380 for a two-bedroom, $577 for a three-bedroom, and $1,019 for a four-bedroom.

“I hope you take my request as serious as I’m taking it,” Chapman said. “A town of 15,000 isn’t going to turn around the economy, but if 15,000 towns make changes we can make a huge difference.”