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Ellsworth council signals review of impact fees and ordinances to boost development
Summary
Councilors and staff discussed reviewing long-standing impact fees and other ordinances to make the city more business friendly, tracking state legislation on impact fees and considering tax-increment financing and credit enhancement agreements as alternatives.
Ellsworth City Council members and staff said they will review the city’s impact fees and related ordinances as part of a broader effort to simplify permitting and attract investment.
The discussion followed a public comment asking about impact fees and continued in council conversation about ordinance review, parking requirements, building height limitations and planning-board processes. One councilor said developers have described the city as “not business friendly,” and council members placed ordinances and processes on a review list to analyze how they affect development timelines.
Staff warned the council that legislation at the state level addressing impact fees is under consideration; staff said bills are being tracked but that some are not yet printed. Tammy, a city staff member, provided historical context and said the city’s impact fees were put in place around 2008 to fund infrastructure to support a then-anticipated wave of commercial development. Another council member estimated that roughly $13 million in additional tax revenue in the area has flowed in since those projects, a figure referenced as part of the discussion on whether fees yielded long-term benefit.
Councilors and staff discussed alternatives and complementary tools, including tax-increment financing (TIF) districts and credit enhancement agreements to spur investment in underutilized areas such as Myrick Street and Water Street. Members said they expect ordinance review and proposals about TIF and credit-enhancement approaches to appear as part of a future agenda; one councilor said the matter will be discussed in April in connection with ordinance review.
No formal ordinance changes were proposed or voted on during the meeting. Staff said they will continue tracking state bills related to impact fees and will bring analyses and options for council review during the ordinance-review process.
