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Business

Disparities in impact fees grow wide in Tucson

By Becky Pallack
Arizona Daily Star
Tucson, Arizona | Published: 04.15.2007
Should Burger King pay for a police car?
The city of Tucson wants to charge additional one-time fees on new developments to pay for new police, fire and public facilities. More than 30 jurisdictions in Arizona already have impact fees for these areas.
A recent city study shows how existing and proposed impact fees would affect similar developments in different parts of the metro area.
Impact fees in Tucson already cover some of the cost of new city services, including roads, water and public safety
City Manager Mike Hein told a group of small-business owners Thursday that impact fees are essential to planning for long-term, sustainable growth.
Impact fees don't cover the whole cost of new services and facilities, but they ease the amount paid by all taxpayers, said Nicole Ewing Gavin, a project manager for the city's Department of Urban Planning and Design.
"We have a choice of all taxpayers paying for the services or asking new development to contribute a portion," she said. "We really see them as a true cost of doing business."
However if the costs are too high, fees could stymie growth, said Rob Caylor, owner of Robert Caylor Construction Co. and a member of the city's Small Business Commission. Businesses might go elsewhere, like north to fast-growing Pinal County or to undeveloped rural areas.
Caylor, who specializes in urban infill developments, said he recently built a Subway sandwich restaurant in Tucson, and his government fees totaled well over $10,000. He built the exact same building in Thatcher, 130 miles northeast of Tucson, and paid just $105 in fees.
"The debate everyone's going to have is: Who's paying for growth?" he said. "If you're building a small building in the middle of Tucson, should you be burdened with buying more police vehicles?"
You decide. Here's how existing and proposed fees in Tucson and other districts would affect four example business developments.