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REC of GFW Response to Fort Worth Transportation Impact Fees Ordinance

The Fort Worth City Council passed an ordinance last week that requires developers to pay a greater share of the cost of new roads surrounding their developments. Developers will pay 50% of road construction costs for residential developments and 40% for commercial and industrial developments beginning June 1, 2023.

The Real Estate Council of Greater Fort Worth wrote a letter of recommendation to the City of Fort Worth in September regarding Transportation Impact Fees, supporting an increase and requesting that council postpone collection of the fees and investigate the implementation of a small business exemption.

We recognize and support the City of Fort Worth's comprehensive approach to transportation needs, as well as innovative solutions that address the complexities of the challenges that affect the community as a whole.

Read our response letter below –

Dear REC of GFW Members:   On September 14, 2022, the Real Estate Council sent a letter to the City of Fort supporting 2022 Transportation Impact policies and making the following recommendations: •	An increase in the percentage of the maximum assessable impact fee charged: • From 30% to 80% for residential uses. • From 12% to 40% for non-residential uses. •	Allow the increase to be adopted, but delay collection of the increased impact fees for 6 months to allow developers to prepare for the increase. •	Explore the implementation of a small business exemption. •	REC believed continued smoothing (the averaging of fees over all service areas, keeping each service area equal) is not necessary.   After much discussion by City Council including subsequent discussions with REC, the following was adopted:  •	An increase in the percentage of the maximum assessable impact fee charged: • From 30% to 50% for residential uses. • From 12% to 40% for non-residential uses. (vs. original city    recommendation of 55%) •	Using historical data from the last 3 years REC estimates that the final adopted ordinance will save commercial developers and their tenants an estimated $140,000,000 in additional impact fees over the next 5 years vs. the original proposed ordinance. •	The residential development rate will increase by 5% every year for three years until the impact fee rate reaches 65%. •	The fee structure will go into effect on June 1, 2023. •	Small businesses will receive a 25% credit against their impact fees.   REC was able to broaden the city’s definition of a small business as to include those with annual revenue of up to $2.5 million (vs. $500,000),  include franchisees with up to five locations and include businesses over 3 years in existence. •	TX DOT road assets will be considered as adequate facilities providing for additional discounts for projects that qualify. •	The City committed to creating an Impact Fee Task Force to allow our members to participate in the studies going forward at the inception.   Members of the Board and the Government Affairs Committee worked tirelessly between September and November to assist City Council in creating a fair and equitable rate that helps build roads while encouraging sustainable development.  Your dues were put to good use by these dedicated members and we appreciate your support.    Sincerely,                                        ¬-  Bowie Holland, Chair                                                Joel Heydenburk, Chair Government Relations Committee


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