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Elmhurst raises subdivision impact fees for Nitti Development

Published: Wednesday, June 18, 2014 3:18 p.m. CDT

ELMHURST – Nitti Development will have to pay Elmhurst $130,000 more than was previously required for impact fees.

The City Council approvedMonday the increased impact fees as part of a subdivision land improvement agreement with the developer.

Finance, Council Affairs and Administrative Services Chairman and Fourth Ward Alderman Kevin York explained to the council that if District 205 and Nitti Development had agreed upon a fee, the city could have used it in the agreement.

Since District 205 did not negotiate with the developer, the city needed to use fees that could be defended in court. York said the finance committee used a formula that has been tested in court before and used by Naperville.

"We did what we had to as a committee," York said.

City attorney Nick Peppers clarified that impact fees are not meant to cover school district operating costs or be used as a lag fee between when a student moves into a home and the school district receives property taxes.

The existing $6,500 fee that benefits District 205 will be increased by $1,900 to $8,400 per home. This would yield District 205 a total impact fee of $470,400.

The committee noted that in addition to the impact fee, the redevelopment of the former hospital property is anticipated to provide about $15,867,000 in new equalized assessed value growth that will generate an estimated $837,000 in annual property tax revenue to District 205 when fully built out and occupied.

The current $1,250 impact fee paid to the Elmhurst Park District was also increased by $450 to $1,700 per home. As a result, the Nitti development will generate $95,200 in impact fees for the Elmhurst Park District.

Other portions of the agreement had previously been voted on at the council level, including vacating Avon Road and a variance reducing the right-of-way for the subdivision's proposed U-shaped street.

The committee plans to revisit the city's existing fees and apply the formula for all dwelling types, including apartments and condos.

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