Concord Planning Board proposes significant impact fee increases for transportation and recreation

During the City Council meeting held on June 9, 2025, in Concord, New Hampshire, discussions centered around the city's impact fee ordinance, which is crucial for funding capital improvement projects related to municipal infrastructure. The ordinance, established in 2001, mandates annual reviews and periodic amendments to ensure it meets the evolving needs of the community.

Impact fees are designed to offset the costs associated with new developments, specifically for projects that expand municipal capacity. However, they cannot be used for existing infrastructure unless it results in increased capacity. Currently, Concord charges impact fees for transportation and recreational facilities, primarily affecting new residential developments. Notably, the city has not adjusted these fees since 2014, prompting concerns about their alignment with inflation.

The planning board recently reviewed the impact fees and proposed two options for the City Council's consideration. The first option suggests a modest increase of 1.9% for transportation fees and 4.97% for recreational fees, merely reflecting year-over-year inflation. The second option recommends a more substantial adjustment of 26.11% for transportation fees and 33.72% for recreational fees, which would bring them in line with inflation since the last adjustment. The planning board also proposed reinstating transportation impact fees for non-residential developments, which had been waived since 2017.

Additionally, the board suggested engaging a consultant to explore potential new categories for impact fees, such as those related to water, sewer, police, and fire services. This recommendation aligns with a broader goal of ensuring that the city’s infrastructure can adequately support ongoing growth.

Council members expressed concerns about how these fees might affect housing costs, with developers likely passing on the expenses to buyers or tenants. The discussion highlighted the importance of balancing the need for infrastructure funding with the potential impact on housing affordability.

As the council deliberates on these recommendations, they will need to provide direction for preparing ordinance amendments for future public hearings. The outcome of these discussions will significantly influence Concord's approach to managing growth and infrastructure development in the coming years.