Hampshire lowers impact fees developers must pay
By Denise Moran For The Courier-News January 11, 2013 3:08PM
Updated: February 14, 2013 6:44AM
HAMPSHIRE — The village board on Thursday made it easier for developers to build in the village by admitting that vacant land isn’t worth as much as it used to be.
The board approved an appraisal report updating the value per acre of improved, residential real estate. That value is then used to assess how much developers have to pay in “impact fees” to the village when they build something.
“Our fees are currently some of the highest you will find in the state,” said Village President Jeff Magnussen. “We need to show developers that we are in line with today’s market values.”
Jacobsen and Associates Ltd., certified appraisers located in Sycamore, conducted the study.
A Hampshire village ordinance uses the market value of one acre of improved land as the basis for most of the impact fees assessed against new development. The current value used in the village ordinance is $131,034. The report suggested that the value of one acre of improved, residential real estate in the village is really now just $60,000.
“The result on fees is significant,” said Village Administrator Doug Maxeiner. “For a three-bedroom detached home, the total fees, excluding sewer and water connection fees, will decrease from $10,658.56 to $6,217,33. This shows a 41.7 percent decline.”
Maxeiner added that the fees established for fire, library, transportation and cemetery services are flat values and not based on the value of an acre of land.
The board decided that a land appraisal should be conducted in Hampshire every three years on an ongoing basis.