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Posted: 3:27 p.m. Monday, Dec. 10, 2012
LAS CRUCES, N.M. —
The Las Cruces Homebuilders Association presented Las Cruces City Council Monday with reasons to delay impact fees that are supposed to go into effect Jan. 1.
City Council approved the impact fees in August 2011. They would go toward new roads and arroyo crossings that are a direct result of the new development moving into the area.
"Right now is not the time for those fees to be imposed," said Steve Chavira, managing director of the Las Cruces Homebuilders Association. "Our economy is still in a tenuous situation and it's a tough time to be putting in new fees."
Chavira told KFOX14 he worries the impact fees would stand in the way of new construction projects because many new builders just can't afford the added cost.
Chavira said the group is proposing delaying the implementation of impact fees until around 2015 or 2016.
"Without those impact fees, more projects will have the opportunity to get started," Chavira said.
"We wanted to make sure that we could build a full road all at one time and have it there for development," Las Cruces Public Works Director Loretta Reyes said.
Reyes said the major road fee comes at a cost of $1,056 per rooftop and the drainage fee is $438 per rooftop.
Commercial buildings would have additional fees.
Reyes said the impact fees would mean the cost is covered by the builders and not the general public in the form of a new tax such as a property tax.
"It is the fairest option because it makes it fair that all developers pay for the roads and those that use the roads are paying for that road," Reyes said.
But Chavira argued there's another alternative: having builders include the cost for the roads in the project budget as opposed to paying a lump sum up front.
"Our developers are willing to work to put some of that infrastructure in place but not have it all be up front and in a huge chunk of money," Chavira said.
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