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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