Crown Point has approved a contract of up to $25,500 to study whether to impose an impact fee on new construction to help grow and protect the city’s park system.
The Board of Public Works and Safety recently gave the go-ahead to Lehman & Lehman Inc. of Mishawaka for the study on a Recreational Infrastructure Zone Improvement Plan. As a part of the deal, the company will create an impact fee advisory committee, establish an impact fee zone, prepare an infrastructure improvement plan, appoint an impact fee review board and determine the fee.
Crown Point Mayor David Uran said the city worked with financial adviser Greg Guerrettaz of Financial Solutions to select the firm.
“It takes a lot of experience to put this together,” Uran said. The city will use community economic development income tax revenues to pay for the study.
“This provides another source to protect our current park system,” Uran said, adding that as more people build, there must be more green space and amenities for residents to enjoy and to keep their property values up.
The general fund for park department operations is strong, Uran said. Any revenues realized from an impact fee would be used solely for capital improvement projects within the zone created.
“Several communities have this, and it works well,” Uran said.
Lehman & Lehman will use the state-established formula to set the impact fee, said Greg Falkowski, chief of staff. The formula takes into account home cost and residential growth projections, among other data. The average cost for a new home in Crown Point is between $250,000 and $255,000.
The study, which will take four to six months, will update the city’s five-year park master plan and identify a list of priorities and funding resources for the next five to 10 years. The plan must be updated every five years to keep the impact fee in place.
If city officials approve the accompanying ordinance, the city must wait six months to begin collecting the fees, according to the contract.
Board member Michael Conquest said maintaining things like parks, that impact the quality of life, is what attracts people to the city.
“While (the impact fee) only affects new growth, it is good for the community as a whole,” Conquest said.
Carrie Napoleon is a freelance reporter for the Post-Tribune.
