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City adopts partial transportation impact fee exemption for early learning facilities

2146104 · January 24, 2025
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Summary

The City Council passed draft Ordinance 24-074 to grant a partial exemption from transportation impact fees for qualifying early learning facilities; the ordinance establishes a 50% reduction, includes a one-year retroactive application, and passed 6-1.

The Des Moines City Council on Jan. 23 adopted draft Ordinance 24‑074 to provide a partial exemption from transportation impact fees for qualifying early learning facilities, voting 6‑1.

The ordinance implements a reduced transportation impact fee rate for child‑care and early learning facilities as allowed by a 2021 change in state law. The draft ordinance references Des Moines Municipal Code Chapter 12.40 (the city’s impact fee chapter) and sets a 50 percent fee reduction for qualifying facilities; staff said neighboring cities had adopted reductions of up to 80 percent.

Why it matters: Transportation impact fees are charged on new development to fund transportation infrastructure; they can be a material cost for projects and can affect whether projects proceed. For early learning facilities, the state law allows a municipality to grant up to an 80 percent reduction; the council elected a 50 percent reduction.

Key details: Assistant City Attorney Matthew Hutchins and public-works staff said the current Des Moines rate for early learning facilities was $47.67 per square foot (about $190,000 for a 40,000-square-foot facility under the older rate study). The draft ordinance contains a retroactive clause applying the exemption to qualifying early learning facilities for one year prior to adoption, a provision intended to cover an active project presented during public comment.

Council action and vote: Council member Mahoney moved the ordinance; Council member Nutting seconded. During debate, Council member Harris unsuccessfully moved to postpone until after the comprehensive plan work; that motion failed. The final vote passed 6 in favor and 1 opposed (Council member Harris).

Ending: Council directed staff to implement the amendment and noted the change was intended as an incentive to encourage development of early learning facilities in the city. Staff said the city has discretion on the percentage and can revisit the level later.