Why West Dundee could restructure business, rental property fees

In an attempt to cover the cost of inspections, West Dundee officials might restructure the yearly fees paid by owners of businesses and rental housing units.

Having a business license in West Dundee costs $35 annually, regardless of the size, number of employees or complexity of the operation, Village Manager Joe Cavallaro said. That same fee applies to the annual registration of rental properties, which vary from single-family homes to multifamily apartment complexes such as the new Springs at Canterfield development, he said.

However, village officials have found the more than decade-old fee structure to be inequitable because properties of different sizes and characteristics require varying levels of manpower and resources to inspect, Cavallaro said.

Hoping to address the issue, the village board this week indicated its desire to create a new fee structure that will help offset the cost of the village's inspection process.

Staff members initially proposed a tiered structure ranging from $50 to $200 for both programs. In that plan, a business licensing fee would be based on an establishment's square footage, while rental registration costs would be dependent on the number of units.

Instead, trustees said they believed the fees should reflect the time, money and manpower put toward performing inspections. Village officials are expected to evaluate those expenses and bring back a new proposal next month, Cavallaro said, noting the fees likely will be higher than what was originally presented.

The board also will consider implementing a fee for whenever a new tenant moves into an existing commercial space - a situation that requires fire and building inspections, even if the property is not undergoing a major renovation. "This would be a new fee to make sure our costs are covered," Community Development Director Tim Scott said.

According to village documents, West Dundee has 340 active business licenses and 229 rental properties registered this year.

Village staff members perform life safety and code compliance inspections annually for all commercial properties, Fire Prevention Officer Rick Paul said, while most multifamily rental properties are inspected every other year.

Trustee Patrick Hanley suggested the village also consider inspecting single-family rental homes to ensure the safety of both the property owner and the tenant.

Any updates to the village code likely would be up for a vote next month, Cavallaro said. The community would be notified of the changes at least 60 days before they would go into effect Jan. 1.