Leander's council instructed staff Nov. 6 to draft amendments to Article 12A (roadway impact fees) aimed at reducing unintended impacts on tenant finish-outs and small businesses.

Director Griffin reviewed the RIF timeline: the ordinance took effect Jan. 7, 2023, and collections began in 2024 after a fee study that tied fees to projects and service areas. Staff reported collections have continued through 2024 and 2025 and identified instances where tenant finishes and change-of-tenant transactions triggered settle-up fees even though no new building was constructed.

To address those cases, staff proposed the following changes for council direction: (1) exempt tenant finish-outs, remodels and certificate-of-occupancy changes if the original permit for the building predated Jan. 7, 2023; (2) do not collect settle-up fees under $2,000; (3) adopt a small-business exemption (draft language modeled on other Texas cities) with exclusions for certain uses (for example, adult-entertainment-type uses would be ineligible); (4) update the development-hub application to automate fee calculations and eligibility checks; and (5) initiate an updated RIF study to reassess projects and fee structure.

Council members expressed support for the changes but asked staff to make the adjustments clear and to return ordinance language. One council member asked staff to make the changes retroactive to Jan. 1, 2025, if possible; staff said they can refund fees and noted 27 cases would be affected this year. Another member recommended retaining the fee schedule in ordinance while using eligibility rules or administrative waivers for borderline cases, and staff noted they will begin a formal RIF study update.

The council gave staff direction to draft ordinance amendments reflecting these points; no final ordinance was adopted Nov. 6.