Elmhurst Weighs Increasing Impact Fees for New Subdivision

The question is, how much would city charge in impact fees to Nitti Development when new development breaks ground on former hospital site in fall 2014.

For the first time since 2006 and before the residential housing market went bust, the city is considering increasing impact fees for residential housing construction currently under consideration on the former Elmhurst Memorial Hospital site on Berteau Avenue.

According to a press release from the city, the present rates have been in place since 2006. For new single family housing, Elmhurst School Dist. 205 receives $6.500 per unit and the Elmhurst Park District receives $1,500.

Some Elmhurst elected officials, including Mayor Steve Morley, Alderman Jim Kennedy (6th Ward) and Alderman Dannee Polomsky (3rd Ward) have requested that a referral be sent to the city council’s Finance, Council Affairs and Administrative Services Committee asking for a review of the current impact fees, the city’s website said.

Glendale Heights-based Nitti Development purchased the 11-acre property from Elmhurst Memorial Hospital in January for a housing development. The anticipated housing load on the site is about 50 homes.

The mayor and aldermen believe that the impact fees should be increased to meet market expectations and adhere to current Elmhurst codes.

Construction on the former hospital site is expected to begin this fall, calling for a prompt review of the subdivision impact fees.

While it is estimated that the redevelopment of the Berteau property will not begin until fall of 2014, the referral calls for a prompt review of the subdivision impact fee.

The purpose of the impact fee is to offset the one-time property tax gap created when new additional dwellings are added to the community. These fees only apply to additional housing added to the community and do not apply to housing that is replaced, city officials have stated.

The measure is the result of ongoing meetings with the mayor’s communications committee, which includes Ald. Kennedy and Polomsky, along with representatives from Elmhurst School Dist. 205 and the Elmhurst Park District.

All have been working together cooperatively flood mitigation projects and other shared areas of interest, the city said in a written statement.

The city projects a surplus of $190,000 in TIF 1, will be declared in 2014. The city also projects that a surplus of $1.826 million will be declared for 2015.

At a November 2013 board meeting, D205 officials stated that the burden of a new Berteau subdivision would be greatest on one or two schools, and certainly more than the current impact fee of $6,200.

“The impact on us is significantly higher than the impact fee in the existing ordinance. This is an opportunity to put the facts out there and start a discussion with our City partners,” the school board’s finance committee chair Chris Blum said. “The impact could be anywhere from $50,000 to $95,000 per home, upwards of $2.5M in total. We would not receive as much tax income from these new homes as we would have to spend at $12,000+ per student, per year on their education.”

The impact fee referral is expected to be on the Elmhurst City Council’s agenda on April 7.

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Sleeping Bear March 27, 2014 at 09:45 AM
After reading the documents for the meeting tonight (thur the 27) I notice that the city is vacating (giving away ) 59 feet of avon road which runs through the development from Nrth to South. Are we giving away what he is using to create 8 lots? Go to the meeting tonight and ask that question.
Elmhurst Reader March 27, 2014 at 01:23 PM
Meeting cancelled for tonight. Next meeting 4/10.
WLA March 27, 2014 at 03:52 PM
It has been a long Elmhurst added so many new houses in one location at one time and we have one chance to get this right. While the tax revenues generated from the new homes will benefit the city as a whole, it is primarily Field School and to a lesser degree Sandburg that will shoulder the burden of the influx of students. I appreciate my alderwoman's forward thinking on this matter. Where her kid's go to school or how much her tax bill none of my business. Her job is to look out for the best interests of her constituents.
Mike W March 30, 2014 at 10:25 AM
Total funding for this project and apartments on Hahn Street should support another elementary school or significant expansion of Hawthorne, Field, and Sandburg. No portable classrooms! Total funding being from impact fees, continuing property taxes, state funding etc...blinders can't be keep on and forget the magnitude of what's going on at Hahn Street. Tie this up by oversizing impact fees on Hospital Project ($25k per lot minimum) until funding from both Hospital and Hahn Street figured out. Make the Hospital impact fee carry over to the Hahn Street project until the matter is resolved and school funding sorted out.
Dan March 30, 2014 at 11:15 AM
New house construction has been a cash cow for the city over the past decade. It replaced the tax revenues that the car sales use to generate to the city. The cost of building permits is substantially higher then the actual cost to approve and inspect the homes being built. The new construction doesn't just bring in new tax revenue from the homes built but also increases the value and in turn the tax revenue for all the homes in Elmhurst. If it is okay to charge an impact fee by guessing on the number of students these new homes will generate why not charge an impact fee on the actual homes that have children in the school system? We need to stop using our home values as an ATM to fund our schools. Illinois is dead last in funding schools from the state. They provide less than 8% of the school budget or about $3.25 per day per child to district 205 while most of the funding comes from property taxes. The average school district in Illinois receives about 28% of their budget from Springfield. The 20% under funding our school district is burdened with equals tens of millions of dollars a year. It is time for property owners to stand up and say we already are paying way more than our fair share.


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