Paying for Growth: Community Approaches to Development Impact Fees

While communities across the nation share common constraints in paying for growth, the design and administration of impact fee programs vary considerably among communities that use them to generate new revenue. This article reviews how San Jose and San Diego, California, Loveland, Colorado, and Manatee County, Florida design and administer their development impact fee programs. We selected those communities for review because of their diversity and their aggressiveness in finding ways to pay for growth. San Jose's system of impact charges evolved over two decades. San Diego applies a comprehensive menu of impact fees only to planned communities outside the built-up urban area. Loveland applies a comprehensive capital facility cost recovery system citywide. Manatee County recently applied an impact fee system for the entire county, but fees vary by location within the county. We conclude with some words of wisdom for planners and local government officials who are considering impact fee programs for their communities.