Commerce City Council evaluates user and impact fees for development projects

During the Commerce City Council's regular study session on July 14, 2025, significant discussions centered around the city's development and impact fees, which have become a pressing concern for local developers and residents alike. The council reviewed user fees associated with land use applications and building permits, emphasizing the need for a balanced approach to ensure that the city remains competitive while adequately funding essential services.

City staff presented an overview of user fees, which are charges for services provided by the city, including land use applications such as rezoning and subdivision requests, as well as building permit fees. These fees are designed to follow a cost recovery model, ensuring that taxpayers are not subsidizing these services. The last comprehensive update to these fees occurred in 2023, following a study that compared Commerce City’s fees to those of neighboring jurisdictions.

Council members expressed concerns about the high fees in comparison to nearby cities like Brighton and Thornton, which could deter new development. Councilmember Ford highlighted the need for competitive fees to attract grocery stores and other essential services to the community, suggesting that high fees could push developers away. This sentiment was echoed by other council members who noted that the current fee structure may be contributing to a slowdown in development activity.

The discussion also turned to impact fees, which are one-time charges on new developments to help finance infrastructure improvements necessitated by growth. The council noted that these fees had not been updated for nearly two decades prior to 2023, leading to a significant increase that developers were unprepared for. The council is now considering options to adjust these fees, including implementing annual inflationary adjustments and potentially reducing certain impact fees, particularly those related to parks and government facilities.

City staff proposed a more streamlined fee structure that could simplify the application process for smaller projects, making it easier for local businesses and residents to navigate. The council is also exploring the possibility of offering fee waivers or reductions for developments that contribute to community amenities, such as parks or public facilities.

As the council moves forward, the focus will be on finding a balance between maintaining necessary funding for city services and creating an inviting environment for development. The outcomes of these discussions could significantly impact the future growth and economic vitality of Commerce City, as officials aim to enhance the quality of life for residents while fostering a thriving local economy.