Payson council approves impact-fee payment plan with Payson Hospitality Group for new hotel

Payson City Council on Aug. 26, 2025 approved a resolution establishing an impact-fee payment agreement with Payson Hospitality Group for a new hotel project, staff said.

Dave, a city staff member, told the council the matter had been discussed at a prior meeting and that negotiations with the developer resulted in some fees being paid immediately and the remainder spread over three years. He said the agreement reduced an upfront charge by about $13,000, which will be paid with other fees, and that the remaining impact-fee obligation—about $154,000—will be paid in installments over three years.

Council members expressed support for moving the agreement forward so the developer could apply for permits and begin construction; staff noted the developer had hoped to obtain a permit in August. After a motion to approve the resolution, the council adopted the agreement by roll-call vote. The vote recorded Councilor Christiansen, Councilor Hulett, Councilor Eroling, Councilor Moss and Councilor Hyatt voting yes. The motion passed.

The council's action implements a negotiated payment schedule; no ordinance change was introduced at the meeting. Staff said the change reflected a follow-up to direction given at a prior meeting and was intended to allow the project to proceed.