COST SHARING for QUALITY ROADS
P. BOX 8163, COLUMBIA, MISSOURI 65205
PROPOSITION 2 - Final Ballot Language
Shall the City of Columbia, Missouri replace the current development charge for construction of collector and arterial streets of $.50 per square foot of total floor area of new construction with a development charge for construction of collector and arterial streets as follows:
Resid
ential - Maximum of $1.00 per square foot of total floor area of new construction; and
Non-Residential Low Impact - Maximum of $1.50 per square foot of total floor area of new construction; and
Non-Residential High Impact - Maximum of $2.00 per square foot of total floor area of new construction.
“Non-Residential Low Impact” shall be defined as a trip generation rate of less than 3 trips per 1,000 square feet based on the weekday p.m. peak hour for non-residential land uses as set forth in the most recent edition of Trip Generation, a manual published by the Institute of Transportation Engineers;
“Non-Residential High Impact” shall be defined as a trip generation rate of 3 trips or more per 1,000 square feet based on the weekday p.m. peak hour for non-residential land uses as set forth in the most recent edition of Trip Generation, a manual published by the Institute of Transportation Engineers. The increase shall be phased in over three (3) years. KEY TALKING POINTS & FREQUENTLY ASKED QUESTIONS
Key Points:
This change in development charges for construction of new roads will:
• Generate $3.5 million much needed developer provided funds for offsite road construction associated with new development
• Be fairer to the taxpayers by increasing the % paid by developers and decreasing the % paid from public taxation
• Assess higher charges for developments that create more traffic
Frequently Asked Questions:
Q: Is this development charge a tax? A: No, it is a one time charge that developers would pay on new construction projects. Q: Does this charge apply to existing homes or businesses? A: No, it applies only to new construction. Q: Why do we need this charge? A: To finance the new roads that are needed to handle the increased traffic that serve new developments. Columbia has grown rapidly in the last decade, and sales tax revenue has been hurt by tax free online shopping, so it has become increasingly difficult to pay for new road construction. Q: How do we pay for these new roads now? A: The responsibility for paying for new roads is shared between developers and the public. Currently, development fees pay ~$1.5 million, or ~15% of the cost of arterial and collector streets associated with new development, while the public pays ~85% through sales tax and other revenues. These new charges will change this to ~35% paid by developers and ~65% by the public. Q: Why are there three different levels of charges? A: Since the funds will be used for street construction, the charges are related to the amount of traffic generated by the new project. The charge is lowest for residences because they create low traffic generation, higher for businesses that generate more traffic (for example, office buildings), and highest for businesses that generate the most traffic (for example, convenience stores). Q: Why does it say “maximum of”? A: The stated amounts are the maximum that can be charged. This provides flexibility to lower the charges for specific uses such as churches, libraries and affordable housing. Q: Don't developers already pay for street construction? A: Developers are required to provide the streets within new developments. This charge would be used to fund part of the cost of building the arterial and connector streets that serve the new developments. Q: Why is the increase so modest? A: While the increase in the charge may seem small, it is the largest amount that a majority of the council could support. Q: Will this modest development charge jeopardize future economic development? A: No, new and expanded road building is essential for economic development and equitably sharing the public / private infrastructure costs are key. Q: Will this modest development charge “drive” development into the County? A: No, the County requires ALL of the infrastructure (road, sewer, water, etc.) to be paid by the developers prior to development. Q: What if the new development charge is not approved by the voters? A: If additional funding is not provided for new and expanded roads, more traffic congestion will occur and that will jeopardize economic development in access deficient areas.
