Kane County likely to reduce fees developers must pay

A Kane County fee some critics believe impedes business growth and job creation will likely remain in place for at least the near future, though officials will offer a 10 percent discount in response to the complaints.

The county board's executive committee advanced the so-called impact fee plan forward for Wednesday. Although a final vote is needed to make it official, there was enough support Wednesday to ensure the plan's passage.

Impact fees imposed on developers were launched in Kane County in the late 1990s and early 2000s to help local roads keep pace with the additional wear and tear caused by the rampant business and residential development occurring at the time. They have been the county's way of having large development projects share in the costs of improving nearby roads used to access the development.

But the fees prompt concerns from such county board members as Becky Gillam, Kurt Kojzarek, Doug Scheflow and T.R. Smith. Members who represent districts that abut other counties tend to find the fees more problematic.

McHenry County, for example, doesn't charge impact fees. If all other facts are the same, that can give McHenry an advantage in trying to lure development projects and new business.

Scheflow said members of Elgin's Chamber of Commerce have lobbied him to oppose the fees because the amount the county charges a light manufacturing business are about three times higher than the fees imposed on building a simple warehouse. As a result, land that could be used to create jobs is being marketed for warehouse space instead, Scheflow said.

"That fee is a disincentive," Scheflow said. "And I'm not sure, as a board, we're addressing the disincentive to creating manufacturing jobs in Elgin as well as elsewhere in the county."

The majority of the board appears ready to support keeping the fees in place but at a discount from the current price.

Under the current structure, the maximum gross impact fee charged for a new supermarket in the county is $11,487 per 1,000 square feet. Under the new plan, the maximum amount would be $9,623.

Transportation committee Chairman Drew Frasz defended the fee as both necessary to fund major road and intersection improvements and to respond to a call from residents.

"When we created these fees the public was clamoring for developments to take their fair share of the costs," Frasz said. "I think we found a good balance between adjusting for economic conditions but leaving it in place and ready to go. We have a full-time person at KDOT where businesses can appeal their fee, and we've been very generous in making adjustments on a case-by-case basis."

The final vote will come next Tuesday.