Critics of the city’s proposed new development impact fees say the increases are excessive and the revisions illegally allocate spending in the wrong places.
Tucson currently collects impact fees on all new development, but it will be forced to stop on Aug. 1 after failing to meet the deadline for adopting a state-mandated update on how it charges and spends the money.
On Monday, the City Council held its first public hearing on the new fee proposal, which it hopes to have in place by the end of the year. The city stands to lose about $3.2 million over the four months it will take to get the new fees in place.
Homebuilder groups said the city’s proposed changes need more work.
Among the biggest problems is where the city plans on spending the money it collects, said Carter Froelich, managing principal at DPFG, a Phoenix-based consulting firm hired by the Southern Arizona Home Builders Association.