Building costs may soar

Town Council to hold hearings on plans to dramatically increase water-connection fees

By Danielle Sottosanti

Oro Valley's Town Council will hold public hearings Wednesday night on its plans to dramatically increase the town's water-connection fees — one fee by as much as 26 times its current cost. Increasing those fees will make it more expensive to build a new home or business within the town — a factor that some say could hinder residential and commercial development, but others say is necessary to support the town's existing and future water needs.

The public hearings will be on two separate water-connection fees — the Potable Water System and Alternative Water Resources development impact fees — that the council will consider adopting June 20. If adopted, the fees would go into effect Sept. 19.

The Alternative Water Resources Development Impact Fee, which will pay to bring Central Arizona Project water to Oro Valley, is the most controversial of the two because of how much it would increase. If approved as proposed, it would go up from $300 to $4,982 for the most common residential connection and from $2,400 to $63,760 for a 2-inch commercial meter — a common size for Oro Valley businesses.

An increase of that size could significantly impact development in Oro Valley by pushing builders to other areas such as Marana, unincorporated Pima County or Pinal County, said Marshall Vest, an economist at the University of Arizona's Eller School of Management. Impact fees make a huge difference because they differ between jurisdictions, he said.

Representatives from stakeholder groups — such as the Southern Arizona Home Builders Association and Metropolitan Pima Alliance — spoke at a March meeting against raising the fees. SAHBA's government liaison, Alex Jácome, said the increased fees would stop construction.

FULL STORY: http://www.azstarnet.com/allheadlines/185262