Conroe council approves impact-fee study by Freese and Nichols after debate over cost and grandfathered developments

The Conroe City Council approved a contract with Freese and Nichols on June 26 to conduct a citywide impact-fee study, following public comment and a multi-councilmember discussion about the study’s cost and how many current development agreements would be exempt.

The study contract was approved at the June 26 council meeting at Conroe City Hall after council debate and procedural motions. Proponents said the study will help the city plan and finance infrastructure for growth; opponents and some council members pressed for more information about who would actually pay the fees and whether the study’s price could be justified.

During the meeting, Cody Miller of the Greater Houston Builders Association urged engagement between the firm and local builders, saying, “We’re not necessarily against the concept of impact fees.” He asked that Freese and Nichols and staff include builders in the advisory and stakeholder process so developers could learn about the study and provide feedback.

Resident John Sellers, who said he was not opposed to the concept of impact fees, urged caution on the city’s investment in the study. He said the projected price tag was “over half a million dollars” and warned that many existing development agreements could be exempt from future fees: “If we can’t collect broadly, we may not collect enough to even offset the cost of the study.” Sellers also said he was concerned the firm was the sole bidder on the RFQ.

Council members pressed staff for clarifications about how many current development agreements exclude future impact fees. An official identified as the assistant city administrator said, “there’s probably about 65 to 70 development agreements out there,” and added that “there’s probably 5 that have been negotiated ... that do not have provisions to ... exclude impact fees.” Later in the meeting staff said there are “north of 70 executed contracts” in the pipeline but could not give a precise count of how many would be exempt.

Council discussion included differing views on timing. One council member moved to defer the item for two weeks to obtain more precise information on which executed contracts would be grandfathered; other council members argued the study should proceed without delay because implementation would not begin immediately and could take a year or more. A council member noted that enforcement of any fee ordinance would not occur until 2027.

After debate and procedural steps, the council voted to approve the contract with Freese and Nichols to perform the impact-fee study. Council members said the firm will assemble a citizen impact advisory committee (CIAC) and hold stakeholder engagement; Miller had noted he understood the CIAC would include about 50% representation from the developer/builder community. Officials also said the council will set any fee thresholds and review adopted fees at least every five years.

Next steps outlined at the meeting: Freese and Nichols will begin the study and stakeholder outreach, the CIAC will be formed with developer representation, staff will return results and recommendations to the council, and councilmembers will decide the fee thresholds and adoption timing.

Ending: The council approved the contract to start the study; details about how many existing agreements will be grandfathered and the precise fee structure will be resolved through the study, the CIAC process and subsequent council action.