Should growth pay for growth, or should business pay for growth?
A two-hour work session inside City Hall on Jan. 17 boiled down to that question when the Kalispell City Council reexamined a quandary that has existed for two years: transportation impact fees.
Developers currently have to pay for the infrastructure and road improvements necessary to handle the increased traffic that results from new growth. The fees have vexed developers since being enacted in 2009.
Longtime City Councilor Jim Atkinson summed up the city’s dilemma on Tuesday.
“Somebody has to pay for those roads. Who are we going to stick it to?” he asked. “Lets stick it to all of us as equally as we can.”
The newest member of the council, Phil Guiffrida III, who originally requested the issue be reexamined, expressed support for removing the fees altogether. He said the current scenario within the city is “out of balance” and development is being unduly paid for by businesses and is essentially being stifled.
“These fees, if they’re getting in the way of us having development, we need to stop that,” he said, adding, “From my perspective, let’s get out of the way (of business growth). Let’s reduce some fees and get business rolling.”
Other councilors contested Guiffrida’s claims.
“It’s quite disingenuous to base the fact that we have little growth on impact fees. I think that’s pretty absurd,” Councilor Randy Kenyon said. “The banks aren’t loaning money. There are lots of reasons why (growth has slowed).”
Removing the impact fees will only move the burden onto taxpayers’ backs, Kenyon said.
The city’s five-person impact fee committee unanimously recommended the continuation of the transportation impact fees.
Since being enacted, the fees have collected $140,116. If council decided to remove them, that money would be refunded to developers.
Councilor Bob Hafferman said he supported impact fees but believes they should be “reduced dramatically.”
Councilors were unable to come to a consensus but agreed to readdress the topic at the next scheduled council meeting on Jan. 23.
The city received 44 applications for the city manager position, Councilor Kari Gabriel said. A six-person selection committee will begin ranking applicants on Jan. 23. Kalispell City Attorney Charles Harball remains the acting city manager.