Group Outlines Opposition to Road Impact Fee

Citizens 4 Fayetteville Says Proposal Would Deter Local Investment

Last updated Wednesday, March 28, 2007 7:16 PM CDT in News

By Dug Begley
The Morning News

    FAYETTEVILLE -- Opponents of a proposed road impact fee said their message is simple: A road impact fee will drive business away from Fayetteville.

    "Now is not the time to deter business," said Pam Jones, chairwoman of a group committed to defeating the proposal at the ballot box.

    Citizens 4 Fayetteville, a group of local business leaders, held a news conference Wednesday afternoon to discuss their opposition to the road impact fee. The fee would apply to all new construction in the city and charge a set amount depending on whether the building is a residence, commercial space, warehouse, mobile home, hotel room or nursing home. Early voting for the April 10 election began March 26.

    Jones and others with Citizens 4 Fayetteville urged voters to just say no, calling the proposed fee double taxation for businesses.

    "We have to have growth," said Paul Pinneo, executive vice president of Marshalltown Company in Fayetteville. "Cities only have two directions to go, they grow or they die."

    Fayetteville City Council member Lioneld Jordan, a lead proponent of the road impact fee, has argued development that puts additional burdens on the city's roads needs to help fund street improvements. Developers already improve streets adjacent to their properties when required by the city, but Jordan said additional funds must be raised to help with other costs.

    Developers and local business people disagreed Wednesday.

    "With all due respect to Alderman Jordan, developers do pay their fair share," Jones told the crowd of about 25.

    Opponents of the road impact fee said Fayetteville is dependent on sales taxes paid inside the city, and should encourage development and discourage it with additional fees and taxes. Roads in Fayetteville need repair, Fayetteville Economic Development Council chairman Jeff Koenig said, but having new business bear the cost is not a solution.

    Koenig, a former Fayetteville School Board president, said the impact fee will also hurt local schools.

    "Do something to create a vibrant, growing property tax base," Koenig said. "That's where they get their money."

    Citizens 4 Fayetteville was formed last year to support Fayetteville's proposal to enact a one percent sales tax to fund road, trail and wastewater system improvements. The difference between the two proposals, Jones said, is the way it treats the business community. Members of Citizens 4 Fayetteville said they are focused on educating people about the road impact fee's implications, and encouraging voters to reject it.

    Another group has been formed to support the road impact fee proposal. Fayetteville residents Jim Bemis and Jeff Erf began Vote For Fayetteville in response to Citizens 4 Fayetteville's re-creation. Bemis said he disagrees with impact fee opponents when it comes to them paying their fair share.

    "It's not paying for itself now, so how are they paying their fair share?" Bemis asked after the Citizens 4 Fayetteville news conference.

    He said he understands the need for Fayetteville to entice business, but noted the biggest impact on the roads is created by residential development.

    "The problem is we're not collecting for that right now, and the developments just keeping going in," Bemis said.

    Reader Comments (9 comment(s))


    The following comments are provided by readers and are the sole responsibility of their authors. The Morning News does not review comments before their publication, nor do we guarantee their accuracy. By publishing a comment here you agree to abide by our comment policy. If you see a comment that violates our policy, please notify the web editor.

    Weary taxpayer wrote on Mar 28, 2007 10:26 PM:

    " It's about time that those who enjoy making the profits share in the costs. We've done more than our part. "

    Orville wrote on Mar 28, 2007 11:02 PM:

    " I always laugh when the Chamber crowd says the word "fair" or complains about "double taxation." Fayetteville residents are the ones already paying additional sales taxes on groceries to fund $68 million in bonds and subsidize the profits of developers who don't want to pay their fair share. Now the Chamber and the developers want to raise the real estate transfer death tax when we leave property in our estate to our children. "

    Concerned citizen wrote on Mar 28, 2007 11:36 PM:

    " Vote FOR Fayetteville, the group supporting the road impact fee proposal, has a website. It can be found at VoteForFayetteville.org. "

    Richard wrote on Mar 29, 2007 8:40 AM:

    " If this thing passes, guess what? Builders and developers will have to pass the extra fees on to the consumer. Let the market place grow and infrastructure will support itself. More government tax is an insult. "

    all ears wrote on Mar 29, 2007 10:46 AM:

    " You guys hear that sucking sound? That is all the business moving north. If we double tax by adding these extra impact fees, it will damage Fayettevilles ability to compete in NWA. We will have a University and thats about it. No business could afford to move here or continue to grow here. "

    Reasonable thinker wrote on Mar 29, 2007 11:24 AM:

    " Impact Fees haven't been shown to deter growth where they've been implemented, so that seems to moot the "we'll scare all the businesses off" argument. Yes, developers will likely pass those fees on to those who purchase the properties, but at least they won't get to foist them off on the rest of us who aren't enjoying the amentities, as they are being collected from all of us now with the sales tax. It's only fair. "

    Vote (For) Impact Fees wrote on Mar 29, 2007 9:34 PM:

    " Our Fayetteville community already knows that: · The "development-at-any-cost-TO-YOU" supporters of Citizens 4 Fayetteville don’t want to pay their fair share of impact fees – rather, they want each citizen to pay regressive sales taxes to subsidize their new developments. · We citizens are already paying a sales tax for $68 million in Street Bonds, which was passed by our vote less than a year ago. · Fayetteville's professional planning staff has developed a strong street improvement program -- but we lack millions of dollars for roads and streets that are URGENTLY NEEDED -- NOW. · The development and investor community (Citizens 4 Fayetteville) want to tax the sales of all of our existing homes, rather than pay fair impact fees. (But we all know that our existing homes and businesses do not create the need for new streets and infrastructure.) · Citizens 4 Fayetteville’s deep pockets are funding an ad campaign that costs tens of thousands of dollar, but grossly misrepresents the facts; whereas Fayetteville’s professional planning staff have spent ten years and hundreds of thousands of dollars to develop fair impact fees. Check out the facts on the City’s web site,or at www.VoteforFayetteville.org. "

    Realist wrote on Apr 10, 2007 8:41 AM:

    " It's about time that those who profit from the growth pay for it. Reasonable Thinker...you are so spot on! "

    Realist wrote on Apr 10, 2007 10:16 PM:

    " Ok, I must say I am quite disappointed by the small turnout of voters. People...don't you care if you end up footing the bill for new development that may not even benefit you (likely via even higher taxes)? So, so sad. What is also sad, and amazing is how many people were "impacted" by a ludicrous and high powered campaign by the developers. "


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