Development Impact Fees Strike Home
June 2004

This year, Tucson’s Mayor and City Council intend to adopt new development impact fees for all new residential, and commercial/retail development in the city. The impact fees will be used to help pay for road and park capital improvements necessary to support new development.

The proposed road and park impact fees will be “progressive,” increasing with unit size—the larger the area, the higher the fees. Residential development will be assessed both road and park impact fees, while commercial development will be assessed only road impact fees. All impact fees will be paid at the time a building permit is issued.

Residential impact fees (road and part) will depend on the location of the development and the size of the homes. Residential impact fees for new “central core” development (as defined by the General Plan) will be 23 percent less than for the rest of the city, based on a determination that central core residents make shorter trips and walk or use public transit more frequently than residents outside the central core. As proposed, residential impact fees will range from a low of $4,625 for a single-family home of less than 1,000 square feet located in the “central core” area and $5,497 for the same size house located elsewhere in the city, to a high of $8,145 for a single-family home with 4,000 or more square feet located in the central core and $9,544 for the same size house elsewhere in the city. Multi-family, mobile home/RV park and hospitality residential development will also pay impact fees. 

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