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Cherry Hills Village funds nexus study as council weighs impact fees amid pending state housing bills
Summary
The City Council approved a supplemental appropriation of just over $40,000 to pay for a nexus study that will evaluate whether to keep parkland dedication and fee-in-lieu requirements or move to an impact-fee model, a review prompted by proposed Colorado legislation that could allow lot splits and large density increases.
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Cherry Hills Village’s City Council voted 6-0 on March 17 to adopt a supplemental appropriation to fund a consultant-led nexus study examining the city’s parkland dedication and fee-in-lieu policies.
The study, introduced by Community Development Director Paul Workman and consultant Carson Bise of TischlerBise, will analyze the City’s current land dedication policy, compare recent case law, assess demographics and land values, and recommend whether Cherry Hills Village should retain land dedication or transition to an impact-fee framework. The consultant estimated the analysis and stakeholder feedback process will take about three to four months.
Mayor Katy Brown flagged pending Colorado legislation that she said could force rezonings and allow lot splits, noting the possible local effect that a single R1-zoned lot now requiring 2.5 acres "could potentially accommodate 218 houses" under the proposals. Brown said those developments make the timing of a nexus study particularly relevant and asked staff about impact-fee options. Carson Bise told Council that impact fees are typically assessed based on the number of people served rather than land value, which can make them more suitable for addressing infrastructure needs in higher-density scenarios; he added that separate studies would be required for road and other infrastructure impact fees.
Finance Director Kelly Newman said the supplemental appropriation had been clarified to include both revenue and expense lines for easier tracking and noted staff anticipates some revenue from building permits that will offset the cost. On second and final reading, Council Bill 2, Series 2026 was approved with recorded votes from Heller, Eber, Hoellen, Maguire, Robinson and Fisher (6 yes, 0 no).
The study will include feedback from Council, the Planning and Zoning Commission and the Parks, Trails and Recreation Commission, and will return to Council with recommendations. Mayor Brown also said she has communicated to residents in the Village Crier that Cherry Hills Village intends to continue operating under home rule and to enforce its ordinances if state changes occur.
