Sugar Grove to continue breaks on fees to housing builders

Sugar Grove will continue offering a break on impact fees to builders of houses, the village board decided Tuesday.

The amount charged will be capped at $16,500 per house, for the first 35 building permits issued beginning Oct. 31.

The program began in 2009, and it's the sixth year the village has done this to spur construction.

During the late 1990s and early 2000s, companies built as many as 377 homes a year in Sugar Grove; for four straight years, more than 1,000 people moved into town. But the real estate market began crashing in late 2006, and during the 2008-09 fiscal year the town issued only five residential permits.

Last year it saw a significant upswing, issuing 35 permits, according to Village President Sean Michels. So far this fiscal year, since May 1, it has issued 21 such permits.

Impact fees are meant to pay for capital items that might be needed due to increased population growth. For example, some of the money has been used to buy two buildings for extra village administrative office space and police department expansion. Impact fees are also devoted to water, road and storm sewer repairs and expansions.

There are about 300 improved lots and almost 3,500 unimproved lots in the village. Improved lots are graded. They may also have utilities and basic roads in place.

The board also discussed not charging some of the residential development fees for a potential 69-unit assisted-living development. The units would not have kitchens, and so are not considered individual residences under village code, according to Walter Magdiarz, the village's community development director.

Trustee Kevin Geary asked if other entities, including Kane County and the Fox Metro sanitary-sewer district, were willing to also cut their tap-on and transit-impact fees. "It seems to me it is always the village that is giving, to secure the growth," Geary said. He mentioned a lack, several years ago, of money set aside for capital improvements in the water and sewer funds. "I'm just trying to watch out for our future."

Michels said the developer hasn't submitted a formal request yet, so village officials haven't talked about the matter with county or Fox Metro officials. He said he doubts Fox Metro would agree to cut its fees.

Trustees Sean Herron and Robert Bohler said rather than eliminating the village's development fees entirely, they would favor negotiating a discount should the assisted-living development be built.