Transportation impact fee

Definition

A transportation impact fee is a charge imposed on new development projects to help fund the costs of expanding and improving transportation infrastructure needed to accommodate the increased traffic generated by those developments. This fee aims to ensure that developers contribute fairly to the public infrastructure that supports their projects, ultimately aiming for a sustainable growth of urban areas.

5 Must Know Facts For Your Next Test

1. Transportation impact fees are typically calculated based on the projected increase in traffic volume generated by a new development, considering factors like type and size of the project.
2. These fees are often used to fund specific transportation projects such as road expansions, new transit systems, or enhancements to existing infrastructure.
3. The implementation of transportation impact fees can vary significantly from one jurisdiction to another, with different methodologies and fee structures applied.
4. Impact fees are generally collected before the issuance of building permits, ensuring that funds are available when the development begins.
5. Critics argue that transportation impact fees can deter development, especially in areas where housing is already scarce, potentially leading to increased costs for consumers.

Review Questions

• How do transportation impact fees function in relation to urban development and infrastructure needs?
  • Transportation impact fees serve as a mechanism for funding necessary infrastructure improvements that arise from new developments. By charging developers based on the projected increase in traffic generated by their projects, these fees help ensure that the public infrastructure can support additional demand. This approach encourages developers to contribute to the costs associated with growth while promoting sustainable urban development practices.
• Discuss the potential benefits and drawbacks of implementing transportation impact fees in urban areas.
  • Implementing transportation impact fees can lead to improved transportation infrastructure that meets growing demand from new developments, ultimately enhancing mobility and access. However, there are drawbacks, such as potentially increasing development costs, which could lead to higher housing prices or deter new projects altogether. Striking a balance between adequate funding for infrastructure and maintaining an attractive environment for developers is crucial.
• Evaluate how transportation impact fees interact with other funding mechanisms for urban infrastructure and their overall effectiveness in managing urban growth.
  • Transportation impact fees complement other funding mechanisms like general taxation or grants by providing targeted resources specifically tied to new developments. While they can effectively manage urban growth by ensuring that developers contribute equitably, their success relies on comprehensive planning and integration with broader funding strategies. Evaluating their effectiveness involves examining whether these fees successfully address existing infrastructure deficits while also accommodating future growth without stifling development.

Related terms

development exaction: A development exaction is a requirement for developers to provide specific public improvements or services as a condition of project approval.

level of service (LOS): Level of service refers to a qualitative measure used to describe the operational conditions within a traffic stream and the perception of those conditions by motorists and passengers.

capital improvement plan (CIP): A capital improvement plan is a multi-year planning document that outlines anticipated infrastructure needs, including transportation projects, and the funding sources required to finance them.