Mundelein to formalize fee policy for nonprofit groups, churches

In a move that will codify an unwritten tradition, nonprofit groups based in Mundelein will have to pay for building permits under proposed revisions to the village's fee policy.

Conversely, churches and other religious institutions would have building permit fees waived up to $1,000 annually. However, such organizations would have to cover building-related costs incurred by the village, such as those for water and sewer service expansion fees or project reviews by independent consultants.

Government agencies would continue to have permit fees waived. Like churches, though, they would have to pay those water and sewer expansion fees and consultant fees.

The village doesn't have a written policy specifying building-permit fees for nonprofit groups, churches or other government agencies, such as the Mundelein Park District or the Fremont Public Library.

By local tradition, churches and government agencies have seen fees waived ahead of construction projects that require permits.

Charities, fraternal clubs and other nonprofit groups are asked to pay for building permits - but again, no ordinance dictates whether they should or shouldn't be charged.

"The best explanation is that it is a legacy practice of the village," Village Administrator John Lobaito said. "(I'm) not sure how or why the practice began."

Trustees voted Monday to authorize staff to create a fee policy for these three types of groups. It could be ready for a board vote in November.

Officials are formalizing the policy now because they're also drafting a plan that simplifies how all building permit fees are determined, Lobaito said. That proposal - which will assess fees based on the square footage of a project, regardless of shape or complexity - could be ready for public review and a board vote in November, too.

To come up with a recommendation on fee waivers, administrators reviewed guidelines in 10 other Lake County communities. Plans vary from town to town.

For example, Libertyville makes government agencies, churches and nonprofit groups pay for building permits. In Grayslake and Fox Lake, fees are waived for government agencies but not for nonprofits or churches.

Mundelein Park District Executive Director Margaret Resnick said it makes sense not to charge government agencies for building permits, as the money simply would go from one taxpayer-funded entity to another.

Resnick also believes it's logical for government agencies like hers to pay ancillary costs, such as sewer connection fees.

"If the park district is constructing a building and there are water (and) sewer expansion fees, it would not be fair to the village to cover those costs," Resnick said. "When we have such projects, we include these costs in our budget."