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Pro/Con: Should developers pay increased fees to offset the cost of growth?

By Bianca Montes
Sept. 15, 2013 at 4:15 a.m.
Updated Sept. 16, 2013 at 4:16 a.m.

The section of Ball Airport Road off Glascow Street dead-ends into a construction site that will soon become a subdivision. Victoria plans to use $2.9 million of a bond project to extend the road to meet with the section of Ball Airport Road off Northside Road where Tuscany subdivision was created. The city is considering charging developers an impact fee to help offset the cost of repaying the bond.

$9 million bond

Here is how the city plans to spend money from the bond it recently approved:

• $4.6 million to repair old residential streets

• $1.5 million for downtown streets

• $2.9 million to Ball Airport Road extension

As Victoria continues to grow, so does the need for new roads, highways and thoroughfares.

But who is going to pay for them?

The city has begun weighing the option of charging developers a fee to help pay for the new roads after a resident raised the issue at a Sept. 3 City Council meeting. At that meeting, annexing 5.61 acres of land at the request of a developer was on the agenda.

City Council has dedicated several million dollars to repair city streets for the upcoming budget year, including spending $2.9 million to extend Ball Airport Road from where it ends at Mallette Drive to Northside Road because a new subdivision is being built in the area.

The council approved a $9 million certificate obligation bond Sept. 10 to pay for the extension and repairs, set to be repaid using property tax revenue. The tax rate was set at 59.96 cents per $100 of property valuation.

The question over who should pay for expansions has been raised - the taxpayers or the developers.

Should the city charge developers an impact fee to ease the city's cost to build and connect roads near their subdivisions?

Pro: Developers should foot the bill for new roads

Con: Impact fees will push developers outside city

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