La Verne board considers lowering road impact fees to 70% to attract retail development

Board members and city staff debated a proposed amendment to the La Verne fee schedule to lower road impact fees at the Jan. 30 workshop, with several aldermen and staff expressing support for reducing rates to roughly 70% of current levels to remain competitive with neighboring municipalities.

Bruce (city staff) and Tom Broker (city staff) reviewed background from an impact-fee study and comparisons with Brentwood, Smyrna, Nolensville, Spring Hill and Murfreesboro. Staff noted that the city’s current road impact fee for retail and commercial development was $7,421 per unit (as presented in the packet) and that surrounding communities’ fees are lower. "If you compare that… on a 30,000-square-foot commercial building, Smyrna, Nolensville, Spring Hill and Murfreesboro are all lower than us by anywhere from $57,000 to $154,000," one staff member said in the presentation.

Staff described the policy argument that a lower, one-time impact fee can make La Verne more attractive to developers, who then generate ongoing property and sales tax revenue. Several aldermen and staff discussed whether to lower the fee across all categories (residential, commercial, industrial) or only for commercial/retail; staff warned that selectively lowering fees could trigger additional administrative steps and estimated that changing select categories could require further study and cost (board referenced an $80,000 study figure in the discussion).

Mayor and several aldermen said they were inclined toward a 70% target and asked staff to prepare an ordinance amendment reflecting that figure. Staff said the change would require two ordinance readings and, if adopted on the discussed timeline, could take effect about April 1. No formal vote or ordinance adoption occurred at the workshop; staff said legal review and final ordinance language would be prepared for the upcoming regular meeting.