Elgin weighs whether to charge developers more

Good news for Elgin's local governments, bad news for builders and home buyers.

City officials are considering a plan to raise developer impact fees by as much as $6,000 per home.

The fees help defray the added costs new residents place on city services, schools and parks.

Elgin now charges builders nearly $19,000 for every four-bedroom house, city spokeswoman Sue Olafson said.

Under the new plan, which hasn't been finalized, that fee would increase to more than $24,000, Olafson said.

"Right now we're soliciting public input," she said. "We've met with all developers. We need to ensure the fact that we're competitive."

Elgin officials review their impact fees every year to determine where they stack up against other communities.

The $6,000 increase would make Elgin's fees fifth-highest among area towns, Olafson said, behind Carpentersville, Algonquin, Lake in the Hills and Plainfield.

Staff members still are reviewing the fee increase before sending it to the city council, which could vote on the plan sometime before the end of the year.

Olafson said the city staff hasn't received any complaints from homebuilders.

But a representative from one homebuilders association told council members Wednesday that they shouldn't raise fees given the slow housing market.

"The developers are saying an increase in the impact fees in this market makes it more difficult for them to sell homes," council member Bob Gilliam said. "It's a matter of economics. We're trying to strike a balance so we can get what's fair to us, but not hurt our development."

City officials have said the housing market remained strong this year in Elgin.

But during recent budget discussions, they said, the market downturn may force them to cut back future spending as their permit fees and tax revenues decline.