Idaho Falls council debates basing residential impact fees on square footage; basements and garages draw scrutiny

City staff and consultants told the Idaho Falls City Council at a workshop that a proposed shift to charging residential development impact fees by square footage — rather than by housing type — would change how the city measures and collects fees and could affect housing affordability and the city’s ability to fund capital needs.

The discussion centered on how to define “square footage” for fee calculations: should the city count all conditioned space, only finished space as defined by MLS practice, or treat unfinished basements and garages differently? City Attorney Michael Kirkham and consultant staff presented legal and comparative examples and answered council questions; staff said an updated ordinance is intended to move through work sessions this summer with implementation planned for Jan. 1 if the council so decides.

Why it matters: Impact fees pay for growth‑related needs in transportation, parks, police and fire. How the city defines and discounts square footage will change what builders and homeowners pay and can reduce or increase projected fee revenue the city will rely on to maintain service levels.

Holly, a consultant presenting the study, told the council that the draft charges residential fees by square footage and that “the critical…