Laconia Planning Board schedules public hearing on updated impact‑fee ordinance after study finds higher maximums

The Laconia Planning Board voted to schedule a second public hearing in November on a proposed rewrite of the city’s impact‑fee ordinance and the DTA‑prepared justification study, which would raise the maximum fees the city may collect for schools, roads, fire, parks and other municipal capital needs.

Planning staff presented the study and said it updates a 2009 analysis with current capital projects requested across city departments and includes provisions to collect impact fees for municipal office and public‑works facilities — categories not previously assessed by the city. Staff offered a pair of adoption options for the board’s consideration: immediately adopt either 25% or 50% of the newly calculated fees and then phase annual increases tied to the Consumer Price Index up to 100% of the study’s maximums. The study identifies a 100% maximum impact‑fee amount for a single‑family detached unit of $19,307.33 (other use categories have corresponding maximums per the study).

Board members debated whether the city should adopt the lower 25% starting point or the larger 50% starting point. Supporters of the higher option pointed to substantial capital needs across departments, the recently negotiated purchase of major equipment and the long history of undercollection relative to earlier studies. One board member said adopting the higher percentage and indexing to inflation would help the city pay for road, fire and recreation projects tied to new development. Other members cautioned that raising fees quickly might be politically difficult for city council to accept and could affect small, owner‑built homes; staff noted the study includes an exemption for 20% of units in a project that qualify as workforce housing, and exemptions for political subdivisions and New Hampshire domestic nonprofit corporations.

The board voted unanimously to place the ordinance and study on the agenda for a public hearing at the next monthly meeting in November so the public and council will have a formal chance to comment. After the second public hearing planning staff will forward a recommended ordinance to the City Council for final action; any change requires public hearings and council approval.

The presentation noted the impact fee program would also apply to approvals if a development’s approval had expired or if the project otherwise met the time‑limit criteria in the draft ordinance. The board asked staff to circulate the study and both ordinance options to council members and encouraged broad public notice ahead of the November hearing.