Tucson Council discusses new development impact fees and ADU affordability strategies

In a recent Tucson City Council meeting, significant discussions centered around the city's development impact fee program, which aims to fund essential infrastructure improvements necessitated by future growth. The proposed fees, which are one-time payments from developers, are designed to ensure that new developments contribute to the costs of expanding city services, including police, fire, streets, and parks.

The interim director of planning and development services, Corin Manning, outlined the structure of the impact fees, which vary based on the type of development and its size. For residential properties, the fees range from approximately $3,906 for smaller homes to $12,869 for larger units, reflecting a 40% increase from previous calculations. Non-residential fees also saw adjustments, with commercial developments facing the highest charges due to their greater demand for city services.

Council members raised concerns about the implications of these fees on affordable housing, particularly Accessory Dwelling Units (ADUs). Vice Mayor Santa Cruz highlighted the need to ensure that impact fees do not become a barrier to building affordable housing options. The city is exploring potential fee reductions for ADUs that qualify as affordable housing, aiming to support the development of smaller, more cost-effective living spaces.

Another point of discussion involved the fees charged to hotels, which some council members felt were too low given the demand for parks and recreational facilities generated by tourists. The council is considering whether to adjust these fees, although any changes would require careful justification to avoid legal scrutiny.

The timeline for implementing the new impact fees includes a public hearing scheduled for April 22, with final adoption expected on June 3. If approved, the fees will take effect on August 18, 2025, aligning with the city's fiscal year.

As Tucson continues to grow, the council's decisions on development impact fees will play a crucial role in shaping the city's infrastructure and ensuring that it meets the needs of both current residents and future developments. The discussions reflect a broader commitment to balancing growth with community needs, particularly in the realm of affordable housing and public services.