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Sedona council adopts new development impact fees, effective March 31
Summary
The Sedona City Council on Jan. 14 adopted a resolution approving a January 14, 2025 development impact fee report; fees take effect March 31, 2025. The 5–2 vote drew objections from council members who said the schedule could raise housing costs and discourage new residents.
Sedona’s City Council voted 5–2 on Jan. 14 to adopt a resolution approving the January 14, 2025 Development Impact Fee Report and set the new fees to take effect March 31, 2025.
The resolution formalizes rates and an updated consolidated fee schedule the council directed staff to prepare after prior discussions in December. Councilor Melissa moved to approve Resolution No. 2025-01.1; a second was recorded. Vice Mayor Plueg and Councilor Kathy (last name not specified on record) said they would vote against the measure during the meeting.
Supporters on the council and staff said the report reflects previously discussed direction and the formal adoption completes the last step in the noticed process. Annette (planning staff) told the council the packet had not changed since the December discussion and that staff had completed required noticing.
Opponents said the fees would make building in Sedona more expensive and could discourage people from relocating to the city. Kathy said the fees do nothing to help individual single-family homes and “send the wrong message” about affordability. Vice Mayor Plueg said he had opposed the measure from the beginning and reiterated concerns that higher fees could “make it even more expensive to build a house in this town” and deter people who want to live in Sedona.
The council’s decision may affect future development applications. Staff told the council that the city could accommodate projects offering public benefits through development agreements; in those cases the city could, by agreement, offset or pay development impact fees on behalf of a developer. Absent a development agreement or a development program explicitly approved by council, the fees will be collected as adopted.
Councilors who supported the resolution said fee adoption provides clear, objective expectations for developers and helps fund public infrastructure tied to growth.
The new fees are scheduled to appear on the city’s consolidated fee schedule and become effective March 31, 2025. The council did not change the fee report during the vote.
Details for developers and the public will be available in the updated consolidated fee schedule on the city website and through the planning department.
